PT Indocement - July 2018

PT Indocement has said that it expects to see sales volume growth of 5-6 per cent in 2018, according to Indonesian press reports. The news comes on the back of a 0.5 per cent YoY increase in cement consumption in the country in the second quarter of this year to 14.3Mt. Infrastructure projects remain the main driver of demand, which can be seen from the 19.7 per cent rise in bulk cement sales volumes.

With the second half of the year historically more buoyant due to longer working days and higher activity in the construction sector, PT Indocement has reportedly introduced a number of marketing programmes designed to encourage consumer loyalty. However, a squeeze on margins is expected to continue as high fuel prices and production costs persist.