Holcim Indonesia half-year sales decline 10% YoY

Holcim Indonesia reported a 10 per cent decline in sales to IDR4288bn in the first half of 2017 due to “tough market conditions exacerbated by the timing of Ramadan,” the company said in a statement.

The subdued domestic economy and oversupplied market environment continued to suppress prices. However, the cost of sales was down by nearly two per cent reflecting the implementation of cost efficiency programmes by the company.

Domestic cement consumption over the first six months of 2017 declined by 1.2 per cent YoY to 29Mt, with the slowing housing sector depressing demand. “We expect an improvement in the second half of the year as construction projects materialse, supported by positive sentiment from both the government and private sector,” Holcim Indonesia said.

Meanwhile, the company has company recently signed a groundbreaking MoU concerning a municipal waste management facility for refuse-derived fuel located in Cilacap, Central Java. The project is
expected to serve as a role model for managing municipal waste while improving the environment in
Indonesia.