Semen Indonesia Explains This Step To Maintain Performance In 2025

Photo: Doc. Cement Indonesia Group (SIG)

JAKARTA - PT Semen Indonesia (Persero) Tbk (SMGR) or SIG assessed that the prospect of the national cement industry this year is still full of challenges even though signs of improvement are starting to appear.

Deputy President Director of SIG Andriano Hosny Panangian said that national demand for cement had decreased in the first semester of 2025. However, according to him, indications of demand growth began to appear since the middle of the year.

"In general, we do see that in the first semester there is still a contraction in terms of national demand. However, starting in July, August, yesterday we saw a trajectory of increasing growth in terms of demand," Hosny said in the Public Expose Live 2025, Friday, September 12.

Hosny said the trend is expected to continue, especially because there is a boost from government spending and support for domestic consumption. This condition makes the company optimistic about facing the second semester of this year.

According to him, the demand for national cement until the end of 2025 will not be much different from last year.

"So, our national expectations will be relatively flat, compared to last year. Of course, our performance target in 2025 is better than last year," he said.

On this occasion, Hosny revealed a number of strategic steps that the company will take. The goal is to maintain profitability in the midst of market conditions that have not fully recovered.

The main strategy carried out is fundamental changes to the retail business structure, considering that the segment accounts for 70 percent of the company's total revenue. He said retail businesses are an important part that affects the company's profitability.

Several concrete steps that are being carried out include structuring distribution channels (channels), optimizing logistics and supply chains (supply chain) and ensuring the availability of products in the market.

GIS also strengthens the involvement of retail markets, both in marketplaces and building shops throughout Indonesia. This step was taken so that the company could monitor in more detail the conditions of the retail market on a daily basis.

In addition, the effectiveness of promotion to end consumers is also the main focus. GIS seeks to promote more structuredly in order to increase product attractiveness at the end user level.

In terms of operations, said Hosny, GIS continues to optimize production, improve inter-factories logistics management (inter-plan logistics) and perform energy cost efficiency.

"The most important thing is to optimize the cement derivative products we already have so we can push in the market in order to increase the overall potential for revenue for the SIG Group," he concluded.