Cement, Stone and Ceramic

Products in Indonesia: ISIC 269

Euromonitor International
July 2022
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport i

LIST OF CONTENTS AND TABLES

HEADLINES ................................................................................................................................. 1
INDUSTRY OVERVIEW ............................................................................................................... 1
PRODUCTION SCORECARD ..................................................................................................... 2
Summary 1 Scorecard of Production Pillar 2021 ............................................................. 2
Chart 1 Production Value Regional Comparison 2021 .............................................. 3
Chart 2 Production Value per Capita Regional Comparison 2021 ............................ 3
Chart 3 Production Value Growth Regional Comparison 2016-2026 ........................ 3
Chart 4 Future and Absolute Growth of Production Value Regional
Comparison 2021-2026................................................................................ 4
Chart 5 Production Value 2016-2026 ........................................................................ 4
Chart 6 Production Value by Category 2016-2021.................................................... 5
Chart 7 Production Value by Category 2021-2026.................................................... 5
Chart 8 Production Value per Employee 2016-2021 ................................................. 6
Chart 9 Exports 2016-2021 ....................................................................................... 6
Chart 10 Exports Regional Comparison 2021 ............................................................. 7
COST STRUCTURE .................................................................................................................... 7
Chart 11 Cost Structure 2016-2021 ............................................................................ 7
Chart 12 Profit and Profit Margin 2016-2021............................................................... 8
Chart 13 Average Salary 2016-2021........................................................................... 9
Chart 14 Labour Costs and Employee Productivity Comparison 2016-2021 .............. 9
FIRMOGRAPHICS ....................................................................................................................... 9
Chart 15 Number of Companies by Size 2016/2021 ................................................... 9
Chart 16 Competitive Landscape Structure by Company Size 2016/2021 ............... 10
Chart 17 Top Companies’ Ranking 2016-2021 and % of Production Value 2021 ..... 10
MARKET OVERVIEW ................................................................................................................ 11
CONSUMPTION SCORECARD ................................................................................................. 11
Summary 2 Scorecard of Consumption 2021 ................................................................ 11
Chart 18 Market Size Regional Comparison 2021 .................................................... 12
Chart 19 Market Size per Capita Regional Comparison 2021................................... 12
Chart 20 Market Size Growth Regional Comparison 2016-2021 .............................. 13
Chart 21 Market Size Absolute and Average Historic Growth Regional
Comparison 2016-2021.............................................................................. 13
Chart 22 Market Structure by Buyer 2016-2021........................................................ 13
Chart 23 Market Structure 2016-2021....................................................................... 14
Chart 24 Market Structure by Category 2016-2021 .................................................. 14
Chart 25 Imports 2016-2021 ..................................................................................... 15
Chart 26 Imports Regional Comparison 2021 ........................................................... 15
ATTRACTIVENESS INDEX ....................................................................................................... 16
Chart 27 Attractiveness Index in Selected Industries 2021 ....................................... 16
ECONOMIC CONTEXT AND LABOUR MARKET ..................................................................... 16
Summary 3 Economic Context and Labour Market 2021 .............................................. 16

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 1

CEMENT, STONE AND CERAMIC

PRODUCTS IN INDONESIA: ISIC 269
In 2021, Indonesia’s cement, stone and ceramic products industry grew by 9% and was the
fifth largest regionally in terms of production value. The industry’s turnover is forecast to grow at
a CAGR of 7.8% over 2021-2026. This industry report provides comprehensive data on
production, consumption, imports, exports, the industry’s costs, the industry’s profitability and
the competitive landscape. Key indicators are benchmarked against other regional countries.

HEADLINES
▪ With production value of USD13.0 billion, Indonesia accounts for 0.8% of the Asia Pacific total
in 2021
▪ The industry’s profitability increases and stands at 21.7% of production value in 2021, the
highest regionally
▪ The costs of the industry increase by 8.2% in 2021, largely driven by rising B2B costs
▪ The total number of companies increases in 2021, to 209,446 units
▪ The industry is fragmented, with the top five companies generating 37.8% of total production
value in 2021
▪ Semen Indonesia (Persero) Tbk Pt is the largest company in Indonesia, generating 14.3% of
the industry’s total production value in 2021
▪ Indonesia has the fifth largest market size for cement, stone and ceramic products regionally,
with demand reaching USD17.4 billion in 2021
▪ B2B drives market demand, with B2B spending representing 92.5% of total demand in 2021
▪ The market is dominated by domestic suppliers, as imports account for 9.8% of total market
size in 2021

INDUSTRY OVERVIEW
Cement, stone and ceramic products industry turnover in Indonesia ranks fifth in the Asia
Pacific region. The industry’s growth accelerated over 2021 and the industry is forecast to rank
sixth in 2026. In terms of absolute industry turnover growth, Indonesia is projected to rank fifth in
the Asia Pacific region. This indicates weaker B2B demand potential from the cement, stone
and ceramic products industry in Indonesia in comparison to other regional countries.
The cement, stone and ceramic products industry is mainly dependent on demand growth in
the domestic markets, as exports accounted for 4.6% of total production output in 2021.
Indonesia ranks 10th in the Asia Pacific region in terms of exports share.
Industry costs increased by 8.2% in 2021. The change was largely impacted by B2B costs,
which represented 82.3% of total industry expenditure. In addition, average salary in cement,
stone and ceramic products grew by 9.7% over 2021. Meanwhile, turnover per employee
increased by 11.3% over the year.
The industry’s profitability increased and reached 21.7% in 2021. Indonesia ranks first in the
Asia Pacific region in terms of the cement, stone and ceramic products industry’s profitability.
The total number of companies operating in the industry started to recover in 2021, to
209,446 companies. The industry can be considered fragmented, as the five largest companies
accounted for 37.8% of production value in 2021. The industry’s concentration decreased over
the year. Semen Indonesia (Persero) Tbk Pt remained the leading company in Indonesia’s

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 2

cement, stone and ceramic products industry, and accounted for 14.3% of production value in
2021.

PRODUCTION SCORECARD
The Production Scorecard is a benchmarking tool to evaluate the industry’s performance
within the region. The scorecard considers indicators in seven key pillars that are at the core of
the industry’s competitiveness. The scorecard is built by ranking countries in the regional
context and helps to quickly identify country-specific opportunities. Unless otherwise noted, all
values expressed in this report are in US dollar terms, using y-o-y exchange rates. Data for
2022-2026 period are forecasts. All forecast data are expressed in current terms.

Summary 1 Scorecard of Production Pillar 2021

Indicator Regional Ranking (out of 19)

Production value, 2021 5

Historic production value growth, % CAGR 11

2016-2021

Future absolute production value growth, 5

2021-2026

Future production value growth, % CAGR 6

2021-2026

Profitability, 2021 1

Exports share of total production, 2021 10

Exports value growth, % CAGR 2016-2021 7

Source: Euromonitor International from official statistics, trade associations

The production value indicator helps to evaluate the industry’s size, supply chain network and
B2B demand. Higher production value levels indicate greater potential B2B demand from the
industry and a stronger supply network, which supports production.
Historic production value growth indicates the industry’s average annual production value
growth over the period 2016-2021. The historic growth rate indicates whether the industry is
mature or in the developing stage.
Future absolute production value growth indicates the industry’s absolute production value
growth in nominal terms over the period 2021-2026. High future absolute value growth indicates
expanding production output of the industry and increasing B2B demand potential from the
industry.
The future production value growth indicates the industry’s average annual production value
growth over the period 2021-2026. The indicator helps to evaluate the industry’s future growth
potential. A high average future growth rate indicates that the industry is in the development
stage, with untapped B2B demand potential from the industry.
Profitability indicates the industry’s profits relative to total production value in 2021. The
indicator helps to evaluate the industry’s financial stability, cost base and regional
competitiveness. High profitability indicates a strong financial position for the industry, lower
operating costs in the country and the industry’s competitive advantage over rival industry in
other countries.

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 3

Exports share of total production indicates the industry’s export value relative to total
production value in 2021. The indicator helps to evaluate the industry’s competitiveness in the
global market and the diversification of sales channels. A high exports share indicates that the
industry is competitive globally and has a diversified sales network.
Exports value growth indicates the industry’s average annual exports value growth over the
period 2016-2021. The indicator helps to evaluate the industry’s competitiveness in the global
market. High average growth in exports indicates that the industry remains competitive in the
global market and/or has gained greater market share in the global market.

Chart 1 Production Value Regional Comparison 2021

Source: Euromonitor International from official statistics, trade associations

Note: Turnover shows total revenue (including export revenue) generated by all locally registered companies,
the core activities of which fall under the industry definition range. Measured at basic prices/MSP. Also
called turnover or turnover of local producers.

Chart 2 Production Value per Capita Regional Comparison 2021

Source: Euromonitor International from official statistics, trade associations

Chart 3 Production Value Growth Regional Comparison 2016-2026

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 4

Source: Euromonitor International from official statistics, trade associations

Chart 4 Future and Absolute Growth of Production Value Regional Comparison 2021-
2026

Source: Euromonitor International from official statistics, trade associations

Note: Top right quadrant of the chart indicates the best performing industries that will show above average
annual future growth and high absolute production value growth over the period 2021-2026.
Bottom right quadrant of the chart indicates mature industries that will show below average annual future growth but
high absolute production value growth over the period 2021-2026.
Top left quadrant of the chart indicates emerging industries that will show above average annual future growth but
small absolute production value growth over the period 2021-2026.
Bottom left quadrant of the chart indicates underperforming industries that will show below average annual future
growth and small absolute production value growth over the period 2021-2026.

Chart 5 Production Value 2016-2026

Turnover in 2021 – USD13.0 billion

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 5

Source: Euromonitor International from official statistics, trade associations, trade press, company research

Chart 6 Production Value by Category 2016-2021

Source: Euromonitor International from official statistics, trade associations, trade press, company research

Chart 7 Production Value by Category 2021-2026

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 6

Source: Euromonitor International from official statistics, trade associations, trade press, company research

Chart 8 Production Value per Employee 2016-2021

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Production value per employee dynamics help to evaluate the productivity of the industry. Expanding
production value per employee indicates increasing productivity levels and higher future turnover growth
potential for the industry.

Chart 9 Exports 2016-2021

Export value in 2021 – USD764 million

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 7

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Exports show the value of goods exported to foreign countries, including all production and other costs
incurred up until the goods are placed on board the international carrier for export, but excluding
international insurance and further transportation costs.

Chart 10 Exports Regional Comparison 2021

Source: Euromonitor International from official statistics, trade associations, trade press, company research

COST STRUCTURE
Chart 11 Cost Structure 2016-2021

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 8

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Total costs equal production value less profits.
B2B costs show the total value of the goods and services consumed as inputs for a process
of production of goods and/or provision of services. The goods and services may be either
transformed or used up by the production process. Intra-industry trade, which is also included
(the industry itself is among its major buyers), refers to the exchange of products within the
same industry definition range.
Labour costs are defined as the total remuneration, in cash or in kind, payable by an
enterprise to an employee in return for work done. No labour costs are payable in respect of
unpaid work undertaken voluntarily, including the work done by members of a household within
an unincorporated enterprise owned by the same household.
Taxes less subsidies refers to taxes less subsidies on production and includes production
taxes paid by the industry or subsidies received by the industry. Excluded are specific taxes on
products such as VAT, petrol tax, tobacco tax and alcohol tax.

Chart 12 Profit and Profit Margin 2016-2021

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Profits are calculated as the difference between production and total costs (B2B costs, labour costs,
taxes less subsidies). The profit margin is calculated as profits divided by production value, and is
measured as a percentage.
Profit and profit margin dynamics help to evaluate the financial stability and competitiveness of the industry. Stable
profitability of the industry indicates that the industry is capable of maintaining its financial stability and
competitiveness, indicating a stable future outlook in terms of B2B demand potential.

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 9

Chart 13 Average Salary 2016-2021

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Average salary shows labour costs divided by number of employees.

Chart 14 Labour Costs and Employee Productivity Comparison 2016-2021

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Average salary and turnover per employee dynamics help to evaluate the industry’s competitiveness.
Faster growth in turnover per employee in comparison to average salary growth indicates that the
industry is capable of maintaining its competitiveness and can compensate for cost increases through
increased production output.

FIRMOGRAPHICS
Chart 15 Number of Companies by Size 2016/2021

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 10

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Number of companies shows the number of locally registered enterprises (regardless of capital origin),
the core activities of which fall under the industry definition range. An enterprise is an institutional unit in
its capacity as a producer of goods and services; an enterprise may be a corporation, a quasi-
corporation, a non-profit institution, or an unincorporated enterprise. Also includes zero employee firms
(sole traders) and the self-employed. Also called number of enterprises.

Chart 16 Competitive Landscape Structure by Company Size 2016/2021

Source: Euromonitor International from official statistics, trade associations, trade press, company research

Chart 17 Top Companies’ Ranking 2016-2021 and % of Production Value 2021

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 11

Source: Euromonitor International from official statistics, trade associations, trade press, company research

MARKET OVERVIEW
The cement, stone and ceramic products market in Indonesia ranks fifth in the Asia Pacific
region. In terms of absolute market size growth, Indonesia ranks 11th in the Asia Pacific region.
The cement, stone and ceramic products market in Indonesia was highly affected by the
COVID-19 outbreak but started to recover and expanded by 8.7% in 2021, reaching USD17.4
billion.
Demand for cement, stone and ceramic products is largely driven by B2B demand, which
generated 92.5% of total demand in 2021. Over the year, B2B demand for cement, stone and
ceramic products increased by 8.8%.
The cement, stone and ceramic products market in Indonesia is dominated by domestic
companies, as imports represented 9.8% of the total market size in 2021. The share of domestic
companies increased from 7.2% in 2016.

CONSUMPTION SCORECARD
The Consumption Scorecard is a benchmarking tool to evaluate the market’s performance
within the region. The scorecard considers indicators in five key pillars that are at the core of the
market’s competitiveness. The scorecard is built by ranking countries in the regional context and
helps to quickly identify country-specific opportunities.

Summary 2 Scorecard of Consumption 2021

Indicator Regional Ranking (out of 19)

Market size, 2021 5

Market size absolute value growth 2016-2021 11

Market size historic growth rate, % CAGR 12

2016-2021

Imports share in total market, 2021 16

Imports value growth, % CAGR 2016-2021 5

Source: Euromonitor International from official statistics, trade associations, trade press, company research

Market size value indicates the total demand potential for specific goods or services. Higher
market size indicates higher demand potential from households, B2B and government buyers
within the country.

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 12

Market size absolute value growth indicates absolute demand potential growth in nominal
terms over the period 2016-2021. High absolute demand growth indicates expanding domestic
demand for specific goods or services.
Market size historic growth rate indicates the market’s average annual value growth over the
period 2016-2021. A high average market growth rate indicates that the market is in
development stage with untapped future demand potential for specific goods or services.
Imports share in total market indicates import value relative to total market size in 2021. The
indicator helps to evaluate demand and sales potential of foreign goods. A high import share
indicates high demand potential and sales potential for foreign goods in the country.
Imports value growth indicates average annual imports value growth over the period 2016-
2021. The indicator helps to evaluate demand and sales potential of foreign goods. High
average growth of imports indicates that the market remains open to foreign goods, and total
sales potential is expanding.

Chart 18 Market Size Regional Comparison 2021

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Market size shows the total value of industry-specific goods and/or services, whether produced
domestically or imported, that are sold in a country’s market. Measured at purchaser price/RSP.

Chart 19 Market Size per Capita Regional Comparison 2021

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 13

Source: Euromonitor International from official statistics, trade associations, trade press, company research

Chart 20 Market Size Growth Regional Comparison 2016-2021

Source: Euromonitor International from official statistics, trade associations, trade press, company research

Chart 21 Market Size Absolute and Average Historic Growth Regional Comparison 2016-
2021

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Top right quadrant of the chart indicates the best performing markets with above average annual market
growth rate and high absolute market value growth over the period 2016-2021.
Bottom right quadrant of the chart indicates mature markets with below average annual market growth rate but high
absolute market value growth over the period 2016-2021.
Top left quadrant of the chart indicates emerging markets with above average annual market growth rate but small
absolute market value growth over the period 2016-2021.
Bottom left quadrant of the chart indicates underperforming markets with below average annual market growth rate
and small absolute market value growth over the period 2016-2021.

Chart 22 Market Structure by Buyer 2016-2021

Market value in 2021 – USD17.4 billion

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 14

Source: Euromonitor International from official statistics, trade associations, trade press, company research

Chart 23 Market Structure 2016-2021

Source: Euromonitor International from official statistics, trade associations, trade press, company research

Chart 24 Market Structure by Category 2016-2021

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 15

Source: Euromonitor International from official statistics, trade associations, trade press, company research

Chart 25 Imports 2016-2021

Import value in 2021 – USD1.4 billion

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Imports show value of goods delivered at the frontier of the importing country, including any freight,
insurance and other costs incurred during transportation of goods from the port of origin, but before the
payment of any import duties or other taxes within the country. Includes re-exports.

Chart 26 Imports Regional Comparison 2021

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 16

Source: Euromonitor International from official statistics, trade associations, trade press, company research

ATTRACTIVENESS INDEX
Chart 27 Attractiveness Index in Selected Industries 2021

Source: Euromonitor International

Note: Attractiveness index (AI) is a derivative variable, which gives a quick understanding of how the selected
industry performs in comparison with other industries in an economy. IA is based on a set of variables.
For each variable, all industries in the economy are ranked and get a corresponding rate from 1 at the
very bottom to 177 at the very top. When all ranks are available, a weighted average is calculated and
the corresponding percentile is assigned. The higher the IA, the better industry performance is.

ECONOMIC CONTEXT AND LABOUR MARKET

Summary 3 Economic Context and Labour Market 2021
Economic Context

Global ranking

Index of Economic Freedom Ranking 56

Networked Readiness Ranking 66

© Euromonitor International
CEMENT, STONE AND CERAMIC PRODUCTS IN INDONESIA: ISIC 269 Passport 17

Labour Market

Economically Active Population, ‘000 140,507

Employment Rate 65.2%

Wage per Hour, USD 1.1

Wage per Hour in Manufacturing, USD 1.0

Average Salary, USD per annum 11,313

Source: Euromonitor International from official statistics, trade associations, trade press, company research

© Euromonitor International