SEMARANG. Cement company PT Semen Indonesia Tbk is still able to record an increase of up to 10 percent in sales in the midst of current tight competition and growth of infrastructure projects which has not been as expected.
"Sales in the period from January to May 2017 were up 10 percent from last year," the company's head of communication bureau, Sigit Wahono, said here on Friday.
He said sales in May were recorded at 2.9 million tons to make the total in the first five months of this year to reach 11.5 million tons.
He admitted that although the cement market has been over supplied due to the increasing number of players including foreign industries, Semen Indonesia is still able to record significant growth.
Regarding Semen Indonesia's control of around 43 percent market share, he said that it has been relatively the same in the past five years.
On market absorption, Sigit said that in general it was still the same as last year which was dominated by retail (bag) sales for household market segment and housing development.
"In the first semester you see there were not many big projects nationwide including from the government. So sales are still dominated by retail sales," he said.
Regarding the cement factory in Rembang, Central Java, whose progress is still hampered, Sigit said that it did not affect much as it was not included in the Cost Budget and Work Plan.
He said however that Semen Indonesia has set a target of contribution from the factory at 1.1 million tons out of its capacity which is up to 1.5 million tons.
"Indeed the factory in Rembang has not been included in the production or sales plan. However, we are optimistic it will contribute 1.1 million tons as its capacity is 1.5 million tons. That will be the target for the second semester this year," he said.
Sigit said Semen Indonesia would abide by the decision by not conducting development in the factory area pending the result of the second round of environmental study.
Editor: Yudho Winarto