PT Indocement Tunggal TBK will cease operations at two production lines at its Citeureup plant due to the national cement excess, resulting in a 1Mta drop in output levels.
The fall in cement sales in the country resulted in Indocement seeing its domestic sales volume drop 3.7 per cent to 7.9Mt QoQ in 2Q16. However, exports for the company increased by 190,000t when compared to the same period last year. President Director of Indocement, Christian Kartawijaya, said, “we supply a lot of product to Bangladesh, Australia, Malaysia [and] Taiwan.”
Despite growth in exports, the total volume of sales in 2Q16 fell 2.3 per cent to 8.1Mt QoQ. As a result Indocement’s net income fell by 12.8 per cent in 2Q16 to IDR7.74trn (US$590.4m), compared to IDR8.87trn (US$676.6m) in 2Q15.
