Indonesia's Cement Industry Not Yet Optimal, Government Prepares Import Brakes

JAKARTA - Indonesia’s national cement industry is facing pressure from two sides: low utilisation rates and the potential influx of imports from abroad, particularly China.

Head of the Industrial Service Standards and Policy Agency at the Ministry of Industry (Kemenperin), Emmy Suryandari, revealed that the current utilisation rate of the cement industry in Indonesia is only around 53 per cent.

“Utilisation data for 2025 is 53 per cent, and if we compare it with other Southeast Asian countries, it is indeed at a similar level,” said Emmy after opening INTERCEM Asia 2026 at The Ritz-Carlton Jakarta on Wednesday (15/4/2026).

For this reason, the national cement industry is expected to remain the main supplier to meet domestic needs.

Emmy emphasised the importance of safeguarding the domestic market amid global oversupply conditions.

She highlighted China, which has experienced a cement surplus in recent years, potentially diverting exports to Southeast Asian countries, including Indonesia.

According to Emmy, Indonesia is an attractive market due to its large population and ongoing infrastructure development projects, one of which is the 3 million housing programme.

This situation is seen as potentially triggering the entry of imported cement products if not anticipated properly.

The government is relying on instruments such as import bans and restrictions (lartas) as well as technical consideration mechanisms before import permits are granted.

In addition, to prevent a flood of imports, Kemenperin is tightening the implementation of mandatory Indonesian National Standards (SNI) for cement products entering the domestic market.

“If they want to enter the Indonesian market, they must meet SNI. That becomes one of the tools to ensure we can control imports,” she said.

Amid these pressures, the government remains optimistic that the cement industry can meet growth targets, in line with ongoing national development programmes.