Indonesian Cement Industry Poised for Recovery in 2026

Current Market Conditions

The Indonesian cement industry continues to face challenges as of late 2025, though signs point to a potential recovery in 2026. In November 2025, the national cement volume reached 6 million tons, showing a stable year-on-year performance but a 3% decline from the previous month. This monthly decrease is attributed to typical end-of-year seasonal patterns, according to Jovent Muliadi, Equity Research Analyst at Indo Premier Sekuritas.

Market Performance Analysis

The cement sector has experienced a challenging year, with volume growth remaining stagnant. However, industry observers are optimistic about a rebound in the coming year. The November figure, while down 3% month-on-month, represents a stable base from which growth can potentially emerge in 2026.

Outlook for Major Players

Key players in the Indonesian cement market, such as SMGR and INTP, are expected to benefit from the anticipated industry recovery. As the overall market improves, these companies are likely to see enhanced performance and potentially improved market positioning.

Conclusion

While the cement industry faces near-term challenges, the outlook for 2026 appears more promising. With stable year-on-year volumes and historical seasonal patterns suggesting a potential uptick, industry stakeholders remain cautiously optimistic about the future.