Strengthening Capabilities to Sustain Growth

July 2022

SECTOR UPDATE

  • COMPANY PROFILE

CEMENT SECTOR UPDATE

Industry supply & demand will be driven by potential growth of retail and infrastructure projects

Domestic cement capacity vs demand

(MT)

150,0

127,1

119,1

18.1 MT

100,0

53.8 MT

2031F Gap

109

2021 Gap

50,0

65,2

▲ 4.3%

~5%

Actual FY21

Estimated FY22-26

Industry demand growth

Industry demand growth

-

2017

2018

2019

2020

2021

2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 2031F

Capacity

Demand

Cement Demand Drivers

FY20 Market

FY21 Market

FY21 Capacity

Share

Share

Share

Semen Indonesia

51,1%

49,3%

42,2%

Indocement

25,9%

25,4%

20,9%

Conch

6,1%

7,3%

7,3%

Merah Putih

4,4%

6,2%

8,9%

Semen Bosowa

3,4%

3,0%

5,2%

Semen Baturaja

3,1%

3,0%

3,2%

Jui Shin

2,0%

2,0%

1,5%

Semen Jawa (SCG)

1,9%

1,8%

1,5%

Semen Bima (STAR)

1,6%

1,8%

1,5%

Semen Kupang

0,4%

0,3%

0,3%

Semen Grobogan

N/A

N/A

2,5%

Singa Merah

N/A

N/A

2,5%

Semen Serang

N/A

N/A

1,0%

Semen Jakarta

N/A

N/A

0,8%

Hippo

N/A

N/A

0,4%

14

Competitors in National cement market

Economic players

15-35% cheaper pricing

High Budget Allocation for

Bag

~1%

Bulk

21 million ton

Infrastructure up to 2024

Property &

Estimated annual pop.

Housing Payment Liquidity

Infrastructure

Based on National Dev.

Potential Cement Demand for

Housing

growth from 270

Facility (FLPP)

developments

Plan 2020-24

New Capital

developments

million Indonesia pop.

(K unit)

200

Cement Needs

in 2021

179

Indonesia Government

Infrastructure Budget

for New Capital

(Trillion IDR)

(Million Ton)

12.75 million units

109

410

415

423

417

7,5

401

58

78

385

5,9

Backlog national

290 317

housing construction

4,0

2,2

per 2022

1,6

2018

2019

2020

2021

2022

2015 2016 2017 2018 2019 2020

2021 2022

2022-242025-292030-342034-392040-45

2

Source: Demand data up to 2021 from Indonesia Cement Association. Demand forecast from Indonesia Cement Association and SIG calculations (~5% CAGR). New Capital investment from E-Monitoring PUPR, Jan-2022,Web-based demand estimation, UU RI No.3 2022.

INDUSTRY UPDATE

National demand showed a decrease in July

Industry

SIG

Domestic Sales Volume

Java and Outer Java

Domestic Sales Volume

(thousand tons)

Domestic Sales Volume

(thousand tons)

(thousand tons)

-7.3%

-2.8%

-1.6%

-6.9%

27.018

25.050

16.0%

18.319

17.804

6.7%

16.189

15.936

7.490

8.691

13.220 12.313

4.051

3.795

Bag

Bulk

Java

Outer Java

Bag

Bulk

YTD Jul 21

YTD Jul 22

YTD Jul 21

YTD Jul 22

YTD Jul 21

YTD Jul 22

▼ 2.2%

▼ 3.8%

Java growth contribute more to

Contraction in national demand

Contraction in SIG demand growth

growth, mainly from bag demand

industry demand contraction

Demand Proportion

Domestic Sales Volume July

Domestic Volume Proportion

120%

(thousand tons)

120%

100%

-13.0%

100%

80%

78%

80%

60%

74%

4.238

3.689

10.0%

60%

78%

75%

40%

22%

26%

1.269

1.397

40%

20%

20%

22%

25%

0%

0%

Bag

Bulk

Bag

Bulk

Bag

Bulk

YTD Jul 21

YTD Jul 22

Jul 2021

Jul 2022

YTD Jul 21

YTD Jul 22

Decrease in bag cement proportion, aligned

▼ 7.7%

Increase in bulk cement proportion,

Decrease in July demand

aligned with the increase in bulk volume

with the decrease in bag demand

Source: Demand data up to June 2022 from Indonesia Cement Association (excluding Singa Merah). Singa Merah sales volume July 2022: 157,6 thousand tons, up to July 2022: 864,3 thousand tons

3

Company Profile

#1

Largest cement

producer in Indonesia

Company

Milestones

2019

Acquired PT Holcim Indonesia to solidify market dominance, renamed as Solusi Bangun Indonesia

Lines of Business

52.6 MT p.a.

Largest designed

cement production

capacity in Indonesia

~47%

Largest domestic

market share

Green

PROPER rating by

Indonesia Ministry of

SIG

Environment & Forestry

Shareholders

51% 19%30%

Government of Indonesia

National Public

Foreign Public

2013

Transformation to strategic holding, renamed as Semen

Indonesia

2012

Acquired Thang Long Cement Company from Vietnam for global reach

1995

Consolidated with PT Semen Padang & PT Semen Tonasa, became largest National cement producer

1991

First SOE to be listed in

Jakarta Stock Exchange

1957

Established as PT Semen

Gresik

Cement

Manufacturing

  • 5+1 Brands, Strong presence in Indonesia
  • Multipurpose Cement
  • Special Application Cement

Green Label certification from Green Product Council Indonesia (GPCI)

Cement

Downstream

Businesses

  • Readymix Concrete
  • Mortar
  • Precast

Self-Declaration of EcoLabel from Ministry of Environment & Forestry

End-to-end

Businesses

  • Mining
  • Packaging
  • Waste Management
  • Logistic
  • IT Services
  • Industrial Estate

Sustainable production process from Ministry of Industry

4

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PT Semen Indonesia Persero Tbk published this content on 14 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2022 09:19:02 UTC.