Indonesia: Semen Indonesia looks to international markets

Amid prospects of disappointing revenue growth in the domestic market, Semen Indonesia is looking offshore to expand its sales figures.

Newly appointed head of PT Semen Indonesia, Rizkan Chandra has said that he wants to raise the company’s sales outside of Indonesia from 5.2 per cent of revenue in 2015 to 10-15 per cent over the next three years. In an interview Mr Chandra said operations may expand into Bangladesh, Sri Lanka and the Maldives, with operations already present in Vietnam.  As well as South Asia, Semen is considering its options in countries such as Australia, Ethiopia, Kenya and Somalia, according to Chandra.

The entrance of PT Cemindo Gemiland and China’s Anhui Conch Cement Co into the Indonesian market has led to overcapacity. Simultaneously, economic growth has slowed and the government’s attempts to speed up infrastructure development have not been sufficient to absorb the surplus.