PT Semen Indonesia Tbk (IDX: SMGR), a state-owned cement producer, reported in the first quarter (1Q) of 2020, the sales reached 7.9 million tones (MT) of cement, an increase of 4.7 percent compared to the 1Q of last year, said the company today (05/08) - Photo by the Company

JAKARTA (TheInsiderStories) – PT Semen Indonesia Tbk (IDX: SMGR), a state-owned cement producer, reported in the first quarter (1Q) of 2020, the sales reached 7.9 million tones (MT) of cement, an increase of 4.7 percent compared to the 1Q of last year, said the company today (05/08). In the same quarter, national cement consumption was recorded at 14.9 MT of cement or dropped by 4.9 percent compared to the same period of 2019.

According to finance director, Doddy Sulasmono Diniawan, the producer has taken various strategies to maintain its performance amid the current epidemic by divert the domestic sales to export market. In the 1Q 0f 2020, the company exports reached 1.0 MT of cement, or grew 23.2 percent compared to last year.

Semen Indonesia sees the national cement sales only grow by 5 percent in this year caused of the over supply in the market. Last year, installed cement production capacity recorded 113 MT of cement per annum and will increase to 118 MT of cement in 2020 with the entry of new players.

Even, cement association sees, the installed capacity is expected to grow 4.27 percent in 2021 from this year, while the market demand is only at 70 million tons per year. With this condition, the cement players boost their exports to curb the declining of domestic cement sales.

In 2019, the company has completed the acquisition 80 percent of PT Solusi Bangun Indonesia Tbk (IDX: SMCB), a new brand of PT Holcim Indonesia Tbk, from Netherland’ Holdervin B.V. After the acquisition Semen Indonesia Group targeting to export 4 million tones of cement in this year from previously about 3 MT of cement.

The state-owned firm was established in 1957 in Gresik, Indonesia. In 1995, the company consolidated with PT Semen Padang and PT Semen Tonasa and was known as Semen Gresik Group.

In 2013, the Group changed its name to be Semen Indonesia as strategic holding company that owns PT Semen Gresik, PT Semen Padang, PT Semen Tonasa, and Thang Long Cement JSC. Semen Indonesia become a publicly listed in 1991. 51 percent of the company shares hold by the government and the remaining by public.

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