Semen Indonesia Expands Market Share, Acquisition of Holcim
IdNasional. PT Semen Indonesia (Persero) Tbk took over 80.6 percent of PT Holcim Indonesia Tbk. With this ownership, Semen Indonesia will be able to expand its cement plant network domestically, expanding the diversification of the types of products offered.
Provisional Person in Charge of the Head of Communication Department PT Semen Indonesia (Persero) Tbk. Sigit Wahono said the acquisition would strengthen the broader sales and production network. In addition, increasing the ability to offer increasingly diverse products for customers and offering better opportunities for employees, suppliers, partners and corporate stakeholders.
This acquisition will make Semen Indonesia Group the largest cement company in the Southeast Asia region with a capacity of 53 million tons of cement per year. At present, there are 15 cement companies in Indonesia with an installed capacity of around 107 million tons per year, of which 63 percent of the capacity (capacity share) is controlled by the private sector and foreign (global) players.
While the need for cement in the country is based on data from the Indonesian Cement Association in 2017 as much as 54.2 million tons and in 2018 (to October) 56.5 million tons or experienced a 5.1 percent growth, which means "only" 66.3 percent of production or experiencing oversupply of 33.7 percent.
Therefore, SI Group, according to Sigit, seeks to enlarge the export market. The SI Group's exports in 2017 were only 860,060 tons, in 2018 (to October) it increased to a total of 2.3 million tons, consisting of 1.25 million tons of cement and 1.1 million tons of cement (semi-finished cement).
In addition, the South Asian market, especially Bangladesh and Sri Lanka, has also begun to enter SI Group's cement production of 3.2 million tons, of which 2.5 million tons are directly from SI Group's factories in the country and 0.7 million tons in including those supplied from SI subsidiaries in Vietnam.
"SI Group's exports are only 10 percent of total sales, because we are trying to increase the export market. South Asia is a promising market because many global players are retreating," he said.
Cement consumption in the country is still dominated by Java, for 2017 it recorded 30.7 million tons and in 2018 (until October) it increased 4.4 percent to 32.055 million tons. But PT Semen Indonesia (Persero) Tbk. recorded positive growth in cement sales in the Kalimantan region during the period January-November 2018 with an increase of around four percent.
According to Sigit Wahono, total sales in the Kalimantan region for 11 months this year were 1,662,660 tons, while total sales in the Kalimantan region in 2017 were 1,553,857 tons.
Of the total sales, the largest contribution from East Kalimantan Province was 520,696 tons, followed by Central Kalimantan with 365,617 tons, West Kalimantan 317,798 tons, South Kalimantan 305,462 tons, and North Kalimantan 113,086 tons.
"Sales in East Kalimantan, Central Kalimantan and South Kalimantan have grown positively, while sales in the West Kalimantan and Central Kalimantan regions have decreased considerably," said Sigit Wahono.
Kalimantan is an important market for the sale of PT Semen Indonesia products, as many infrastructure projects are built on the island of Borneo. As in the province of East Kalimantan, in the province there is a work on the Balikpapan-Samarinda toll road project with a length of around 99 kilometers with construction using concrete.
In Kalimantan, PT Semen Indonesia has two 'packing plants', namely in Banjarmasin and Balikpapan (Kaltim). The existence of a cement packing plant is to accelerate sales distribution, while strengthening the market.
Provisional Person in Charge of the Head of Communication Department PT Semen Indonesia (Persero) Tbk. Sigit Wahono said the acquisition would strengthen the broader sales and production network. In addition, increasing the ability to offer increasingly diverse products for customers and offering better opportunities for employees, suppliers, partners and corporate stakeholders.
This acquisition will make Semen Indonesia Group the largest cement company in the Southeast Asia region with a capacity of 53 million tons of cement per year. At present, there are 15 cement companies in Indonesia with an installed capacity of around 107 million tons per year, of which 63 percent of the capacity (capacity share) is controlled by the private sector and foreign (global) players.
While the need for cement in the country is based on data from the Indonesian Cement Association in 2017 as much as 54.2 million tons and in 2018 (to October) 56.5 million tons or experienced a 5.1 percent growth, which means "only" 66.3 percent of production or experiencing oversupply of 33.7 percent.
Therefore, SI Group, according to Sigit, seeks to enlarge the export market. The SI Group's exports in 2017 were only 860,060 tons, in 2018 (to October) it increased to a total of 2.3 million tons, consisting of 1.25 million tons of cement and 1.1 million tons of cement (semi-finished cement).
In addition, the South Asian market, especially Bangladesh and Sri Lanka, has also begun to enter SI Group's cement production of 3.2 million tons, of which 2.5 million tons are directly from SI Group's factories in the country and 0.7 million tons in including those supplied from SI subsidiaries in Vietnam.
"SI Group's exports are only 10 percent of total sales, because we are trying to increase the export market. South Asia is a promising market because many global players are retreating," he said.
Cement consumption in the country is still dominated by Java, for 2017 it recorded 30.7 million tons and in 2018 (until October) it increased 4.4 percent to 32.055 million tons. But PT Semen Indonesia (Persero) Tbk. recorded positive growth in cement sales in the Kalimantan region during the period January-November 2018 with an increase of around four percent.
According to Sigit Wahono, total sales in the Kalimantan region for 11 months this year were 1,662,660 tons, while total sales in the Kalimantan region in 2017 were 1,553,857 tons.
Of the total sales, the largest contribution from East Kalimantan Province was 520,696 tons, followed by Central Kalimantan with 365,617 tons, West Kalimantan 317,798 tons, South Kalimantan 305,462 tons, and North Kalimantan 113,086 tons.
"Sales in East Kalimantan, Central Kalimantan and South Kalimantan have grown positively, while sales in the West Kalimantan and Central Kalimantan regions have decreased considerably," said Sigit Wahono.
Kalimantan is an important market for the sale of PT Semen Indonesia products, as many infrastructure projects are built on the island of Borneo. As in the province of East Kalimantan, in the province there is a work on the Balikpapan-Samarinda toll road project with a length of around 99 kilometers with construction using concrete.
In Kalimantan, PT Semen Indonesia has two 'packing plants', namely in Banjarmasin and Balikpapan (Kaltim). The existence of a cement packing plant is to accelerate sales distribution, while strengthening the market.
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