Indocement sees 3% rise in profit in 2022

PT Indocement Tunggal Prakarsa Tbk (INTP), part of Heidelberg Materials, reported a profit of IDR1.84trn (US$123.2m), up three per cent YoY, in 2022. Net revenue was up 10.5 per cent to IDR16.32trn when compared with 2021, when net revenue reached IDR14.77trn.

INTP’s cement sales to third parties in 2022 saw a 9.9 per cent YoY increase to IDR14.75trn, while ready-mixed concrete sales advanced 20.9 per cent YoY to IDR1.29trn. However, aggregate sales were down 48 per cent YoY to IDR19.71trn in 2022. In addition, the company sold IDR246.7bn of cement to related parties, up 14.3 per cent YoY, in 2022.

Oversupply
The Indonesian cement industry saw an oversupply of up to 54Mt in 2022, according to INTP President Director, Christian Kartawijaya. This lead to the stoppage of 45 per cent of plant production, he said.

INTP is addressing the issue by digitising its supply chain. Consumers can monitor orders from loyal supplies purchased online or offline. The company’s production is also being automated and digitised. Every cement mill system at the Tarjun grinding plant on South Kalimantan, can be run without operators. INTP has also expanded its network of cement terminals to reduce logistics costs.

Going forward INTP plans to replace coal with alternative fuel sources. In 2021 the company’s thermal substitution rate (TSR) reached 12.2 per cent, increasing this to 18 per cent in 2022. By 2023 it hopes to achieve a TSR of 22-23 per cent.