Companies Post Mixed Financial Results in Indonesia's Cement Sector
Although the combined performance of the four listed Indonesian cement companies in the first six months of 2013 is good with net profit rising 13.7 percent from the same period in 2012, the individual companies posted mixed results. Net profit of Semen Indonesia, Indonesia's largest cement producer, rose 22.9 percent, while net profit of Indocement Tunggal Prakarsa, the country's second-largest cement producer, rose 11.8 percent. The other two cement producers, Holcim Indonesia and Semen Baturaja, posted a decline in net profit.
Net Income Semester I-2013:
| IDR Trillion |
Growth YoY |
|
| Semen Indonesia | 2.58 | 22.9% |
| Indocement Tunggal P. | 2.42 | 11.8% |
| Holcim Indonesia | 0.47 | -7.4% |
| Semen Baturaja | 0.12 | -17.9% |
| Total | 5.59 | 13.7% |
Cement consumption in Indonesia, which has grown rapidly in recent years, has slowed down. In May 2013, domestic cement consumption grew 2.1 percent only, one of the lowest growth rates in recent years. Between January and April 2013, cement consumption had still grown at a pace of 8.6 percent (YoY). The lower growth rate reflects a slowing down in pace of infrastructure and real estate projects.
| 2010 | 2011 | 2012 | 2013 | |
| Cement Production in million tons |
37.8 | 52.0 | 60.6 | 65.0¹ |
| Cement Consumption in million tons |
40.8 | 48.0 | 55.0 | 61.0¹ |
¹ indicates a forecast
Source: Indonesian Cement Association