JAKARTA (TheInsiderStories) - Sales volume of cement producers in Indonesia showed an improvement in the first quarter (1Q) of 2021. PT Semen Indonesia Tbk (IDX: SMGR) reported that the sales volume increased by 2.1 percent to 9.69 million tones (MT) of cement from the same period last year of 9.49 MT of cement.
its unit, PT Solusi Bangun Indonesia Tbk (IDX: SMCB)’ sales also rose 10.97 percent percent from 2.84 MT of cement to 3.15 MT of cement and slag in the same quarter of this year. Other state-owned producer, PT Semen Baturaja Tbk (IDX: SMBR) also announced the sales volume grew 22 percent in annual basis and targeting to sell 2.18 MT of cement in this year, an increased of 11 percent from 2020, which amounted to 1.9 MT of cement.
Their competitor, PT Indocement Tunggal Perkasa Tbk (IDX: INTP) sales volume also improved to 4 MT of cement during the first quarter of 2021 from a year ag0 3.9 MT of cement, or up 2.36 percent in annual basis. Last year, chairman of the cement association, Widodo, sees the domestic cement consumption in this year will increase by 8 percent to 67.1 MT of cement after fell more than 10 percent in 2020.
However, this figure is still below the 2019 consumption performance of 69.9 MT of cement. He estimating that infrastructure projects will contribute 20 – 25 percent of the total consumption. Then, toll road construction around 15 – 20 percent, and housing around 55 – 65 percent. Early 2021, the domestic cement consumption still in downward trend, dropped 5.8 percent compared to the same month in 2020.
The official data showed the cement consumption across the country moves in the red zone, except in Sumatra island, grew around 2.9 percent in annual basis to 1.10 MT of cement. While, in Java the consumption fell by 4.2 percent to 2.72 MT of cement. However, export volumes grew 71.3 percent to 117,968 MT of cement from a year ago.
The realization of clinker exports reached 799,720 MT of cement or rose 160.2 percent from 2020. In total, the export volume of the national cement industry rose by 143.94 percent to 917,688 MT of cement, he adds.
“The cement industry has succeeded in increasing exports more than twofold, bringing total sales to 5.82 million tones or an increase of 4.3 percent,” according to the chairman, by adding the main driver of domestic demand in 2021 is the COVID-19 vaccine program.
In an official statement released on Wednesday, CEO of Semen Indonesia, Hendi Prior Santoso, stated that until March, despite lower domestic sales volume, the company was able to increase regional sales by 58.1 percent to 2.37 MT of cement in the 1Q of 2021. Until March, the net profit of the manufacturer rose 0.87 percent to Rp450.36 billion (US$31.75 million) compared to last year of Rp446.46 billion.
While the revenues dropped by 5.8 percent to Rp8.07 trillion from Rp. 8.58 trillion. President director of Solusi Bangun, Aulia Mulki Oemar, added the increase in sales volume contributed to their revenue to Rp2.56 trillion or rose by 4.02 percent compared to the same period last year worth of Rp2.46 trillion and the net profit jumped 129.41 percent to Rp156 billion compared to the same period last year.
While, the net profit of Indocement decreased 12.31 percent to Rp351.1 billion in the 1Q of 2021 from 2020 worth of Rp400.43 billion due to the decline in the revenues from Rp3.36 trillion to Rp3.43 trillion. President director of the company, Christian Kartawijaya, from the supply side, the national cement capacity reached 115 MT of cement in 2020, far above the consumption which reaches 62.5 MT of cement.
US$1: Rp14,400
Written by Editorial Staff, Email: theinsiderstories@gmail.com
