Many New Cement Plants, Semen Indonesia Stay Optimistic Able To Be Market Leaders

By : Hariyanto And Aldi Firhand. A | Friday, June 01 2018 - 20:26 IWST

PT Semen Indonesia Tbk (SMGR) (indonesianindustry)
PT Semen Indonesia Tbk (SMGR) (indonesianindustry)

INDUSTRY.co.id - Semarang - In the midst of a new cement factory built by foreign investors, PT Semen Indonesia (Persero) Tbk is optimistic to be a market leader in the building materials sector in Indonesia.

"You see, in terms of domestic consumption for industries in Indonesia there is an increase of 6.6 percent, we only increased 1.3 percent," said Secretary of Semen Indonesia Company Agung Wiharto in Semarang, Thursday (5/31/2018) night.

He considered, the market share of Cement Indonesia has decreased to the level of 39%, but still higher than the market cement production industry competitors.

According to him, Semen Indonesia must raise the price slightly from its competitor products, such as in East Java, the price difference between Semen Gresik can be up to Rp10 thousand more expensive than Semen Conch.

"With Heidelberg Cement the difference is between Rp2,000-3,000, while with Holcim the difference is up to Rp5.000, but we still control almost 70 percent in East Java," he said.

He explained that the ideal market is at 37 percent level, while Semen Indonesia has a market share above that level which is likely to be supported by a strategic factory location.

"For example, Semen Padang controls Sumatra, then Gresik, Rembang, Tuban can control Java, while Sulawesi has Semen Tonasa We also have a strong market in Bali and Nusa Tenggara," he said.

In fact, the market in Papua has also been dominated by Semen Indonesia although cement consumption in the region has been only one percent of the total cement consumption nationally. Regarding the current ongoing infrastructure projects, Agung said, it does require a lot of cement consumption, such as the construction of toll roads, airports, ports and dams.

"But let's calculate, for example, Suramadu Bridge built for five years with a cement demand of about 450 thousand tons, only our cement sales in 1.5 days," he said.

That is, he said, the infrastructure is not too much to contribute to the needs of cement, but rather the impact of the infrastructure project after so in the years to come.

"Once the toll road is completed, for example, there are many retail-grown there, built hospitals, housing, restaurants, etc. Infrastructure is good for future development growth," he said.

Moreover, Agung added that the construction of infrastructure is not too fanatical with brands, but rather based on competitive prices as long as it meets the specified standards and specifications.

"The more profitable the brand is the retail share, because brands are interested because they are willing to buy Rp2,000-3000 more because they believe our product is better," he said. (ant)

News Comment

Today's Industry

The President Director of PT Indo Premier Sekuritas, Moleonoto

Minggu, 13 Juni 2021 - 11:33 WIB

Promote Exchange Traded Fund, Indo Premier Holds ETFest 2021

The optimism of Indonesian capital market investors continues to squirm during the Covid-19 pandemic, despite the JCI has been under selling pressure in recent weeks. This optimism is reflected…

President Jokowi on Thursday (10/06) inspected mass COVID-19 vaccination at Kampung Rambutan Bus Station, Jakarta. Photo by: BPMI of Presidential Secretariat/ Muchlis Jr

Kamis, 10 Juni 2021 - 22:15 WIB

President Jokowi Inspects Mass COVID-19 Vaccination at Kampung Rambutan Bus Station

President Joko “Jokowi” Widodo on Thursday (10/06) inspected mass COVID-19 vaccination at Kampung Rambutan Bus Station, Jakarta.

President Joko Widodo

Kamis, 10 Juni 2021 - 21:00 WIB

President Jokowi: Limited Face-to-Face Learning Will Be Done With Extra Caution

The Government has announced plan to allow face-to-face learning at schools in the new academic year in the upcoming July. Related to this plan, President Joko “Jokowi” Widodo has ordered…

President Jokowi inspects mass vaccination at Indoor Stadium of KElapa Dua Sport Center in Tangerang regency, Banten province, Wednesday (09/06/2021). (Photo: Bureau of Press, Media, and Information of Presidential Secretariat/Muchlis Jr)

Kamis, 10 Juni 2021 - 20:00 WIB

Gov’t Aims for One Million Vaccinations Per Day in July

The Government has announced target to give 700,000 jabs of vaccine per day in June and one million jabs per day in July. During inspection at mass COVID-19 vaccination site on Wednesday (09/06)…

President Jokowi inspects mass COVID-19 vaccination at RSUI Depok, West Java, Wednesday (9/6). (Photo by: BPMI/Muchlis Jr)

Kamis, 10 Juni 2021 - 19:00 WIB

President Jokowi Inspects Mass COVID-19 Vaccination at Universitas Indonesia Hospital in W. Java

President Joko “Jokowi” Widodo, on Wednesday (9/6), inspected mass COVID-19 vaccination at Universitas Indonesia Hospital (RSUI), Depok, West Java.