Semen Indonesia optimistic cement market would improve in 2016

id pt semen indonesia, bambang joko

...But the slump would not last long. Demand would rise in 2016," he added...
Bandung (ANTARA Lampung) - The country's largest cement producer PT Semen Indonesia said it is optimistic cement market would improve  in 2016 despite tight competition.

Bambang Joko, head of the sales department of the state company, said here on Thursday that this year cement consumption declined on economic slowdown. "But the slump would not last long. Demand would rise in 2016," he added.

Almost all cement producers suffered a decline in sales in the first half of this year  because of the delay in the implementation of the country's infrastructure projects.

In the second half of the year, especially in the fourth quarter, there would be an increase in cement consumption as the government has started disbursement of budget fund for infrastructure projects.

Sales by  Semen Gresik, a subsidiary of Semen Indonesia,  in West Java fell 5.7 percent  to 915,828 tons in the first half of the year  from 970,833 tons  in the same period in 2014, he cited.

"The decline followed shrinking consumption  8.3 percent in West Java  from 4,377 million tons  in the fist six months of 2014 to 4,010 tons in the same period this year," he said.

Semen Gresik has a 22.8 percent share of cement market in West Java , he said.

Marketing Director of  Semen Gresik Muhammad Saefudin said cement consumption is expected to increase in the second half of the year, but competition is sharpers with a number of new factories are coming on stream including domestic and foreign cement factories.

"However, we are optimistic our market prospects are still encouraging," Saefuddin said.

He said many brands are competing in the market in quality and in price.  He said the company will continue to expand its capacity by building new factories .

In addition to Semen Gresik, Semen Indonesia has other subsidiaries in the country including Semen Padang and Semen Tonasa. It also has unit in Vietnam.(Ant)