Indonesian cement consumption increased 4.4 per cent YoY and 2.7 per cent MoM to 6.12Mt in October 2023, as infrastructure projects in Sumatra were completed and work progressed on the Indonesian National Capital (IKN) project in Kalimantan, according to the Indonesian Cement Association (ASI). In the first nine months of 2023, demand reached 45.3Mt.

PT Semen Indonesia Tbk and Indocement Tunggal Prakarsa Tbk increased their market shares to 52.2 and 27.7 per cent, respectively.

Semen Indonesia reported a 5.9 per cent advance in total sales volume and a four per cent rise in revenues in the January-September 2023 period due to higher sales in the company’s bulk and export segments. Semen Indonesia’s domestic sales volume saw a 0.7 per cent uptick YoY. Bagged cement sales increased by by 6.6 per cent YoY while bulk sales were up by 9.6 per cent. Exports were up 51.9 per cent YoY.

Semen Indonesia’s Corporate Secretary, Vita Mahreyni, said that the increase in sales volume pushed revenue to grow four per cent to IDR27.7trn (US$1.76bn) in the 9M. "The cost of revenue was recorded at IDR20.22trn in line with the increase in sales volume," said Ms Mahreyni.

Profits for the current period attributable to owners increased 1.8 per cent to IDR1.71trn in the 3Q23. Ms Mahreyni said that this positive record shows the success of the business strategy implemented by the company, enabling it to maintain profitability in times of intense industrial competition.