JAKARTA – PT Indocement Tunggal Prakarsa Tbk (INTP) recorded an 84% year-on-year (yoy) growth in sales volume in 2024, despite the Indonesian cement industry experiencing a 0.4% drop in sales volume.

“Our sales volume grew significantly, partly due to the acquisition of Semen Grobogan,” said INTP President Director Christian Kartawijaya during the “Meet The CEO” programme, a special interview series by IDNFinancials.com in collaboration with Suara.com on Wednesday (12/3).

Christian was interviewed by Mohamad Teguh, Chief Editor of IDNFinancials.com, and Suwarjono, Chief Editor of Suara.com.

According to Christian, the Indonesian cement industry continues to face significant challenges due to an oversupply of 55 million tonnes. However, despite these challenges, INTP managed to maintain an EBITDA margin of around 19% up to the third quarter (Q3) of 2024.

“We are optimistic that the fourth quarter of 2024 will show better results as sales volume continues to rise,” he added.

Christian explained that the oversupply issue in Indonesia’s cement industry is not a new problem, as it has persisted since 2014, driven by the establishment of new factories by both local and foreign players.

“At that time, many companies originally in other sectors, such as textiles and palm oil, shifted their businesses to the cement industry, leading to an oversupply of up to 50%,” Christian said.

Currently, cement plant utilisation rates in Indonesia remain low, around 55%. Christian believes that consolidation in the cement industry is the key strategy to maintain competitiveness and industry health.

“We have consolidated with Semen Grobogan in Central Java and Bosowa in South Sulawesi. In addition, Semen Gresik has also acquired Oism Semen and Semen Baturaja, showing an increasing trend of consolidation,” Christian concluded. (DK/ZH/KR)