INDONESIA CEMENT
INDUSTRY UPDATES
    2020-2021
        JUNE 21st 2021,
   ASOSIASI SEMEN INDONESIA
      WIDODO SANTOSO
                              1
2
 INDONESIA GENERAL ECONOMY 2020
• The economic situation which was deteriorated due to the impact of the
  Covid-19 pandemic also greatly affected the all sector, whereas declining
  of minus 2,07% compare 2019.
• Inflations rate was 1.23 %.
• Inline with National Economy Growth, Non Oil & Gas Industry Sector was
  declining to minus 2.2%.
                                                                              3
 CEMENT INDUSTRY 2020
• National cement consumption was decreased very significantly when
  compared to the 2019, which minus 10,7% when the total volume
  reached 62,5 million tons. Almost of all regions experienced decline, Java
  -13,6%, Sumatra -4,1%, Kalimantan -10,8%, Sulawesi -11,8%, and Bali-
  Nusa Tenggara -13,7%. Only Maluku-Papua has experienced a growth of
  9,6%.
• The Indonesian cement industry still recorded a very good export sales in
  2020, total volume of 9.2 million tons successfully delivered to several
  main destination countries such as Australia, Bangladesh, Srilanka and
  even China. Growth of total cement and clinker exports from Indonesia in
  2020 reached 41,7%.
                                                                               4
Note: total capacity are included 2 new plants in Central and East Java
                                                                          5
DESIGN CAPACITY
           COMPANY                 2019         2020         2021
PT Semen Padang                    8.900.000    8.900.000    8.900.000
PT Semen Gresik                   19.200.000   19.200.000   19.200.000
PT Semen Tonasa                    7.400.000    7.400.000    7.400.000
PT Solusi Bangun Indonesia        15.531.480   15.531.480   15.531.480
PT Indocement Tunggal Prakarsa    25.500.000   25.500.000   25.500.000
PT Semen Baturaja                  3.850.000    3.850.000    3.850.000
PT Semen Kupang                     400.000      400.000      400.000
PT Semen Bosowa Maros              7.400.000    7.400.000    7.400.000
PT Cemindo Gemilang                7.690.000    8.020.000    8.020.000
PT Jui Shin Indonesia              1.800.000    1.800.000    1.800.000
PT Sinar Tambang Arthalestari      1.800.000    1.800.000    1.800.000
PT Semen Jawa                      1.800.000    1.800.000    1.800.000
PT Conch Cement Indonesia          8.700.000    8.700.000    8.700.000
PT Hong Shi Cement                              3.000.000    3.000.000
                                           -
                                                                         New cement plant
PT Semen Grobogan                              3.000.000   3.000.000
                                           -
       TOTAL KAPASITAS           109.971.480 116.301.480 116.301.480
                                                                                    6
  DOMESTIC CEMENT CONSUMPTION
  BY REGION - 2020
  TOTAL VOLUME 62,727,591 TONNES
                   MALPAPUA
       BALNUSTRA      3%
                                     REGION          2019         2020        GROWTH
          6%                                        (tons)       (tons)         (%)
                                     SUMATRA        14.373.133   13.816.459     -3,9
KALIMANTAN
    6%
                                     JAVA           39.109.878   33.990.991    -13,1
SULAWESI                             KALIMANTAN      4.454.888    3.973.954    -10,8
   9%
                              JAWA   SULAWESI        6.089.271    5.369.305    -11,8
                               54%
                                     BALI-NUSTRA     4.144.481    3.577.447    -13,7
  SUMATERA
    22%                              MALUKU-PAPUA    1.824.872    1.999.436     9,6
                                            TOTAL   69.996.523   62.727.591    -10,4
                                                                               7
    CEMENT CONSUMPTION IN JAVA
    2016-2020
DESIGN CAPACITY : 72.347.000 tons                          Volume (000 tons)
                                        40.000                                                      15
                                        39.000                12,0
                                                                                                    10
                                        38.000
                                        37.000
                                                                                                    5
                                                                         4,1
                                        36.000
                                        35.000                                     0,3              0
                                        34.000      -2,9
                                                                                                    -5
                                        33.000
                                        32.000
                                                                                                    -10
                                        31.000
       Year 2020 declined -13,6%,                                                           -13,6
       Total volume : 33,803,949 tons   30.000                                                      -15
                                                 2016      2017      2018      2019      2020
                                                           Consumption         Growth
                                                                                                        8
 CEMENT CONSUMPTION IN SUMATRA
 2016-2020
DESIGN CAPACITY : 16.124.480 tons
                                                               Volume (000 tons)
                                             16.000                                                 8
                                             15.500                                                 6
                                                                             5,9
                                                                   4,9
                                             15.000
                                                                                                    4
                                                         3,6
                                             14.500
                                                                                                    2
                                             14.000
                                                                                                    0
                                             13.500
                                                                                                    -2
                                             13.000
                                             12.500                                                 -4
                                                                                     -4,3    -4,1
                                             12.000                                                 -6
            Year 2020 declined -4,1%,                 2016     2017      2018       2019    2020
            Total volume : 13,788,192 tons
                                                               Consumption         Growth
                                                                                                        9
CEMENT CONSUMPTION IN KALIMANTAN
2016-2020
DESIGN CAPACITY : 5.800.000 tons                        Volume (000 tons)
                                     4.500                                                     10
                                     4.400                            7,2
                                                                                               5
                                     4.300
                                     4.200                                      0,8
                                                                                               0
                                                           -1,8
                                     4.100
                                                                                               -5
                                     4.000
                                     3.900
                                                                                               -10
                                     3.800      -12,3                                  -10,8
                                     3.700                                                     -15
      Year 2020 declined -10,8%              2016       2017      2018      2019      2020
      Total volume : 3,971,863 ton                      Consumption         Growth
                                                                                                   1
                                                                                                   0
CEMENT CONSUMPTION IN SULAWESI
2016-2020
DESIGN CAPACITY : 13.800.000 tons                   Volume (000 tons)
                                     6.000                                                    15
                                                13,2
                                     5.800                                                    10
                                                                               8,0
                                                                     6,0
                                     5.600                                                    5
                                     5.400                                                    0
                                                          -2,2
                                     5.200                                                    -5
                                     5.000                                                    -10
                                                                                      -11,8
                                     4.800                                                    -15
     Year 2020 declined -11,8%
                                             2016      2017      2018      2019      2020
     Total volume : 5,369,305 tons
                                                       Consumption         Growth
                                                                                              11
CEMENT CONSUMPTION IN BALI-NUSATENGGARA
2016-2020
                                                         Volume (000 tons)
DESIGN CAPACITY : 400.000 tons
                                        4.000                                                     10
                                                                                 7,5
                                        3.900
                                                            5,5                                   5
                                        3.800                          3,3
                                                   1,0
                                                                                                  0
                                        3.700
                                        3.600
                                                                                                  -5
                                        3.500
                                                                                                  -10
                                        3.400
        Year 2020 declined -13,7%
        Total volume : 3,577,447 tons                                                     -13,7
                                        3.300                                                     -15
                                                2016     2017     2018       2019      2020
                                                         Consumption         Growth
                                                                                                       12
CEMENT CONSUMPTION IN MALUKU-PAPUA
2016-2020
                                                    Volume (000 tons)
DESIGN CAPACITY : 1.500.000 Ton    2.000                                                   16
                                   1.800                                    14,5
                                                                                           14
                                   1.600
                                                                                           12
                                   1.400
                                                                                     9,6
                                                                                           10
                                   1.200
                                   1.000                                                   8
                                    800
                                              6,0                                          6
                                    600                          4,7
                                                                                           4
                                    400                2,9
                                                                                           2
                                    200
        Year 2020 increased 9,6%
        Volume : 1,999,436 ton        0                                                    0
                                           2016     2017     2018       2019       2020
                                                    Consmption         Growth
                                                                                           13
               FIGURES OF BAG AND BULK CEMENT
               2016-2020
                         BAG CEMENT                                                      BULK CEMENT                                       BAG & BULK
               52                                     8                        20                                   15                    YEAR 2020 (%)
                                                                                             12,7
               51                                     6                        18                   9,7             10
                               5,5
                                                                               16                                   5
               50                                     4                                2,0
                                                                               14                         0,9       0
                                     2,7
               49                                     2                        12                                   (5)                  23%
Million tons
                                            0,6                 Million tons
               48                                     0                        10                                   (10)
                                                            %
                                                                                                                           %
               47
                       (1,4)
                                                      (2)                      8                                    (15)
                                                                               6                                    (20)
               46                                     (4)
                                                                               4                                    (25)                             77%
               45                                     (6)                      2                                    (30)
                                              (5,9)
                                                                                                           (30,3)
               44                                     (8)                      0                                    (35)
                    2016 2017 2018 2019 2020                                        2016 2017 2018 2019 2020
                         Volume            Growth                                        Volume           Growth                               Bag   Bulk
                                                                                                                               Year 2020 total volume :
                                                                                                                                                            14
                          CEMENT AND CLINKER EXPORTS
                                    2020
                           Malaysia   Others
              Mauritius      1%        5%
                2%
       Taiwan                                          Total volume of exports cement and
         3%                                            clinker
Timor Leste                                            was 9,2 million tons with growth 41.7%
   4%
                                                       The biggest cement importers countries
                                                       from Indonesia in 2020 are China,
         Philippines
             6%                                        Bangladesh and Australia.
                                               China
                                               40%
         Australia
           9%
                            Bangladesh
                               30%
                                                                                     15
16
 DOMESTIC CEMENT CONSUMPTION
 YEAR 2021
       JAN – MAY 2021
TOTAL VOLUME : 23,448,821 tons         6.500.000
                 MALUKU-PAPUA
                                       6.000.000
     BALI-NUSTRA      4%
          5%
 KALIMANTAN                            5.500.000
      6%
                                       5.000.000
     SULAWESI
                                       4.500.000
       10%                      JAVA
                                 53%
                                       4.000.000
      SUMATRA                                                                                                                               3.685.415
                                       3.500.000
        22%
                                                                                    3.091.748
                                       3.000.000
                                                                                                AUG
                                                                                                                  NOV
                                                                           MAY'20
                                                                                                                                                      MAY'21
                                                   JAN
                                                                                                                              JAN
                                                                     APR
                                                                                                                                                APR
                                                               MAR
                                                                                                                                          MAR
                                                                                                                        DEC
                                                         FEB
                                                                                                                                    FEB
                                                                                                      SEP
                                                                                                            OCT
                                                                                    JUN
                                                                                          JUL
                                                                                                                                                17
CEMENT AND CLINKER EXPORTS
January to May 2021
 EKSPOR : 4,596,600 ton
                             Peru
                                                                 Exports Volume (000 tons)
        Timor                 1%                   1.400
        Leste Fiji
                     Malta   USA
         1% 1%
                      1%     1%     South Africa   1.200
     Mauritius                          1%
       2%
Brunei
                               Australia           1.000
  2%
                                 8%
 Srilanka                                           800
    3%
            Taiwan
              8%                                    600
            Philippines             Bangladesh      400
                8%                     50%
                  China                             200
                   13%
                                                      0
                                                           Jan        Feb          Mar     Apr   May
                                                                            2020    2021
                                                                                                 18
CONCLUSIONS
• In 2021, cement domestic demand will not be as strong as in 2019, but
  it will be better than 2020. Cement domestic demand is estimated that
  by the end of 2021 will grow by 6-8% compare to 2020.
• Export demand in 2021 is expected to reach 10 million tons.
• Currently, the condition of oversupply in the country is still happening
  and it is estimated until 2026 when cement domestic demand is
  approximately 3-5% growth.
• If the COVID-19 pandemic can be controlled, it will most likely have a
  major impact on the country’s economic growth and also to the cement
  industry so that demand will back to normal.
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