PT Indocement Tunggal Prakarsa Tbk (IDX: INTP) looking Southeast Asian and other markets to increases the sales volume - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian cement producer, PT Indocement Tunggal Prakarsa Tbk (IDX: INTP) looking Southeast Asian and other markets to increases the sales volume. The Salim Group’ company plans to open a new export destination such as the Philippines, Brunei Darussalam, Malaysia and other neighboring countries.

The spokesman, Antonius Marcos, stated in an official statement released today, the issuer is targeting the sales growth by 4 percent in 2021. According to him, the development in the region will move faster this year after the COVID-19 pandemic.

He also believed that the sovereign wealth fund formed by the government would be a positive catalyst for the infrastructure industry, including cement producers. Indocement now prepared the factories and terminals to support the targets.

Last year, the manufacturer booked a sales volume around 16.5 million tones (MT) of cement or down 8 percent from 2019. However, the realization of the cement sales volume higher than the 10 percent dropped in the industry’ average sales volume.

For this year, Indocement sees the national cement industry able to grow 5 percent in 2021 from this year contraction around 9 – 11 percent. The “Tiga Roda” producer is on alert to seize the market to improve the depressed performance during of last year.

“We made this [estimate] because we saw the infrastructure budget figure rises from Rp280 trillion (US$20.0 billion) in this year to Rp414 trillion next year,” said the president director, Christian Kartawijaya.

He also sees positive sentiment in the cement consumption from the ratification of the Omnibus Law for Job Creation. With the enactment of the bill, its estimated that more factories will be reallocated to industrial estates in Indonesia.

Currently, he said, several factories have started moving their factory locations to industrial areas in the Cikampek areas in West Java. In the first nine month of 2020, Indocement reported net profit amounting to Rp1.11 trillion or decreased by 5.02 percent from the previous year Rp1.17 trillion.

On Jan. 21, Indonesian Cement Association reported the national cement sales dropped more than 10 percent throughout 2020 from 70 MT of cement to 62.7 MT of cement. This was the lowest growth in a decade based on the official data.

Earlier, the organization was estimated the domestic cement sales could grow by 7 percent in 2020. In December, the domestic cement sales contracted by 6.0 percent compared to the previous month to 5.7 million tones and contracted by 12.1 percent on an annual basis.

The highest number of domestic cement sales in 2020 occurred in October, amounted to 6.2 million tones and the lowest sales occurred in May at 3.2 million tones. Cement exports also experienced a decline, contracted by 1.6 percent in a monthly basis to 670,000 in December 2020.

Compared to the previous year, the cement exports rose 142.8 percent. In 12 months of 2020, cement export grew 48.2 percent to 9.3 million tones. The export market only contributed 12.9 percent compared to the total domestic production.

US$1: Rp14,000

Written by Editorial Staff, Email: theinsiderstories@gmail.com