Semen Indonesia anticipates double-digit 2014 sales increase

Semen Indonesia expects an 11 per cent sales increase this year as the country’s leading producer enhances its distribution network to better serve expected increases in demand.

The company said in a statement that sales might reach 31Mt this year, compared to 27.9Mt in 2013.

Dwi Soetjipto, Semen Indonesia president director, said that the company is establishing its packing plants closer to customers to reduce costs and expand its sales network. In addition to 21 packing plants, the company owns 11 seaports. A packing plant in Banjarmasin, South Kalimantan, will go on line next week, after start-up was postponed from last November. “The packing plants and special ports are very helpful in boosting efficiency in term of transport cost and distribution,” Dwi told the Jakarta Post.

Dwi added that cement sales in the domestic market will remain strong, growing at six per cent in 2014 and providing demand for the company’s cement products.

He also said the company aims to maintain its market share with the introduction of new cement varieties to meet customers’ demand, as well as by improving its existing packing plants with new equipment. Semen Indonesia has also teamed up with state-owned steelmaker Krakatau Steel to use blast furnace slag for blended cements.