2020 is a tough year for all industrial sectors, including the cement industry. The condition of the national economy which was deteriorated due to the impact of the Covid-19 pandemic also greatly affected the cement industry sector, where the national economy experienced a decline of minus 2.07 percent compared to 2019.
As a result of the absence of movement in the construction sector due to the pandemic, many of the Government’s infrastructure development projects throughout 2020 have been suspended temporarily and this has also happened to private projects.
National cement consumption in 2020 has decreased very significantly when compared to 2019, which is minus 10.7 percent with a volume reaching 62.5 million tons.
Almost all regions experienced a decline, Sumatra minus 4.1 percent, Java minus 13.6 percent, Kalimantan minus 10.8 percent, Sulawesi minus 11.8 percent, Bali Nusa Tenggara minus 13.7 percent. Only Papua has experienced a growth of 9.6 percent.
However, the Indonesian cement industry still recorded a very good export sales in 2020, namely with a total volume of 9.2 million tons successfully delivered to several main destination countries for Indonesian cement products, such as Australia, Bangladesh, Sri Lanka, Timor Leste and even China.
The growth of clinker and cement exports from Indonesia in 2020 reached 41.7 percent, where most of the exports were in the form of clinker products and a small portion of cement.
In 2019, Indonesian cement industry has succeeded in reducing CO2 emissions by 10.97% or an absolute amount of 5.88 million tons of CO2 at that year. The CO2 emission reduction target originating from the IPPU source by reducing the clinker factor to 75% by 2030 as mentioned in the Indonesian NDC document has also been exceeded to 72% in 2019. Meanwhile, in 2020, the cement industry has succeeded in reducing CO2 emissions by 11.6% or an absolute amount of 6 million tons of CO2.
The national cement industry is still optimistic that in 2021 the industry will experience growth of around 3.0 percent where it is estimated that this year some infrastructure projects will be continued soon and the national situation will gradually recover.
Jakarta, April 2021
Asosiasi Semen Indonesia.