ONESTONE CONSULTING S.L.

Indonesia at the crossroads

Indonesia’s cement growth rate cooled down to just 5.5 % last year after double-digit growth rates for the two previous years. Now for the next few years a 6 % annual increase in the demand for cement is projected. With this reduced expectation plans for new plants to increase cement capacity have been adjusted. In this article the latest projections are given.

1 Introduction

After the presidential election in July this year, there are high expectations that Joko Widobo, Indonesia’s most popular politician and his Democratic Party of Struggle (PDI-P) in coalition with the People’s Conscience Party (Hanura), National Democratic Party and National Awakening Party will be able to bring the country back to sustainable growth. At the end of the second term of former president Susilo Bambang Yudhoyono, who had been in power since 2004, Indonesia’s economic growth had flagged, investments decreased, inflation and current account deficit increased and a lack...

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