JAKARTA – PT Indocement Tunggal Prakarsa Tbk (INTP), one of Indonesia’s largest cement producers, is optimistic about a projected market growth of up to 2% in 2025.

Christian Kartawijaya, INTP’s President Director, explained that the company faced weak cement demand due to the rainy season and Ramadan at the start of the year.

However, INTP remains optimistic about a 1%-2% market growth projection, supported by ongoing government infrastructure projects, including new and existing projects from the commercial and industrial sectors.

Additionally, government programmes such as the extension of the VAT discount for new home ownership, the three million homes per year programme, and school renovations are expected to positively boost cement demand.

INTP also begins to focus on efficiency. Christian added that increased use of alternative fuels is one of INTP’s main initiatives in 2025.

"This policy not only benefits the environment but is also economically advantageous," said Christian during the Public Expose on Tuesday (25/3).

Internally, INTP plans to reduce expenses by identifying areas where costs can be lowered without sacrificing quality and service.

"We are also implementing more aggressive cost control measures and optimising production at the Grobogan Plant and the leased plant in Maros," he explained.

Previously, INTP recorded solid performance throughout 2024, posting a net profit of IDR 2 trillion, up 3.0% compared to the previous year.

Despite a 0.4% decline in the domestic cement market, INTP maintained positive growth thanks to operational expansion and effective cost efficiency strategies.

In 2024, INTP recorded domestic sales volume (cement and clinker) of 20.496 million tonnes, up 5.9% from the previous year, mainly due to the integration of the Grobogan Cement Plant. Meanwhile, total exports amounted to 317,000 tonnes, a 45.3% decrease. (EF/ZH)