JAKARTA. Pemeringkat Efek Indonesia (Pefindo) has revised the prospect of PT Semen Indonesia (Persero) Tbk (SMGR) to “positive” from the initial “stable.”

Previously, Pefindo had granted an “idAA+” rating for SMGR and several of its issued bonds. “We revise the prospect of the company to “positive” from “stable” as a reflection of the trend that has been visible for the past three years, especially related to the conservative fiscal policy of the company,” Pefindo mentioned in the official statement.

The fiscal policy as the driver for SMGR’s rating upgrade, Pefindo said, is reflected from the decreased leverage. In addition, SMGR’s position in the cement industry is deemed quite solid amidst the tense market competition.

“The rating could be upgraded if SMGR’s financial profile improves, which is reflected from its ever-decreasing leverage,” Pefindo said.

For the record, SMGR is the biggest cement manufacturer in Indonesia, with a domestic capacity of 52.7 million tons as of June 30, 2022. As of now, it controls 48% of domestic market. It is also worth mentioning that 51.2% of SMGR is under the control of Indonesian government. (KR/ZH)