Unlimited growth potential in Indonesia

Indonesia is experiencing not only a boom in cement consumption but can also expect a rapid expansion of production capacities, particularly in the years following 2015. This market survey analyzes the cement industry of the country with the fourth largest population in the world and ascertains whether the new cement production capacities are actually needed.

1 Introduction

With its estimated 241 million inhabitants, Indonesia has the fourth largest population in the world. A master plan for accelerating the country’s economic growth recently adopted by the Indonesian government contains an enormous growth potential. Over a 15-year period, it foresees an approx. six-fold growth in gross national product (GNP) from 700 billion US$ in 2010 to 4000–4500 billion US$ in 2025 (Fig. 1) [1]. By 2045, i.e. in the following 20 years, the GNP is expected to grow to 15 000 to 17 500 billion US$. The annual per-capita income is forecast to increase from 3000 US$...

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