Indonesian cement exports rise in 2025, offsetting weak local demand

Indonesia's cement and clinker exports climbed significantly in 2025, partly offsetting weak domestic demand, an official from the Association of Cement Companies of All Indonesia (Asperssi) told Platts, part of S&P Global Energy, Feb. 5.

Asperssi was previously known as the Indonesian Cement Association (ASI) and comprises 16 integrated cement producers operating across Indonesia.

Indonesia's cement exports rose 32.2% year over year to 1.32 million metric tons in 2025, compared with 0.99 million mt in 2024, as producers increasingly turned to overseas markets amid a weak domestic sales environment, Asperssi said in a statement published on its website Feb. 1.

Cement was primarily shipped to Timor Leste, which accounted for around 39% of total volumes, followed by Australia (27%), the Maldives (14%), Papua New Guinea (12%) and the Philippines (8%), Asperssi data showed.

Clinker outflows also strengthened during the year, rising 12.8% year over year to 12.3 million mt, compared with 10.9 million mt in 2024, the data showed. Bangladesh remained the largest destination, receiving about 73% of Indonesian clinker exports, while other key markets included Taiwan (17%), Australia (7%), Sri Lanka (2%) and Mozambique (1%).

Total clinker production edged up marginally by 0.2% year over year to 57.3 million mt in 2025, according to Asperssi data.

The increase in export volumes came amid a contracting domestic market, Asperssi said.

National cement production fell 4.5% year over year to 64.7 million mt in 2025, while domestic cement sales declined 1.5% year over year to 63.9 million mt. Retail demand continued to dominate domestic consumption, accounting for about 71% of total sales, Asperssi data showed.

Looking ahead, Asperssi expects export markets to remain a key outlet for Indonesian producers in 2026. Overseas shipments could expand further if logistics efficiency improves, costs are optimized and access to new markets is developed, the association said.

However, producers remain cautious about risks tied to household purchasing power recovery, as well as global uncertainties related to interest rates, geopolitical developments and commodity price volatility, according to Asperssi.