New boost to Indonesian aggregates demand

Aggregates demand in Indonesia is set to rise after the country's government announced 89 new national strategic infrastructure projects worth a combined IDR 1,422tn (US$101.5bn). All the projects are earmarked to be delivered over the next four years.
June 9, 2020
By Guy Woodford
Indonesian aggregates demand is set to rise after the announcement of 89 new national strategic infrastructure projects. Pictured is Ampera Bridge in the city of Palembang, South Sumatra. Pic - Nikol Senkyrikova ID 139186647 Dreamstime.com

The Jakarta Post newspaper reports Airlangga Hartarto, Indonesia's Coordinating Economic Affairs Minister, saying that the works will include six clean water projects, six railway projects, five seaports, five airports, three technology projects, five industrial zones, one seawall, three smelters, one waste management project and one land acquisition project in Central Kalimantan. The remaining new projects consist of 13 border infrastructure projects, 13 dams and irrigation systems, 12 energy projects as well as 15 road and bridge and projects.

The wide array of additional national strategic infrastructure projects will further boost aggregates and other building materials demand, already strong thanks to 223 previously announced national strategic projects worth some IDR 4,200tn (US$277.13bn). While 144 infrastructure projects were targeted for completion in the 2016-2019 period by the Committee for Acceleration of Priority Infrastructure Delivery (KPPIP), The Jakarta Post reports that only 92 were finished by the start of 2020.

Basuki Hadimuljono, Indonesia's Minister of Public Works and Housing, said 2020 would see the groundbreaking of a number of national toll road projects, including the Balikpapan-Samarinda toll road's 33km sections I and V, the Banda Aceh-Sigli toll road's 14km section 4, and the 131km Pekanbaru-Dumai toll road.