Semen Indonesia to invest US$2.2bn over next five years

Semen Indonesia to invest US$2.2bn over next five years

Semen Indonesia President Director, Rizkan Chandra, has announced that his company is to invest IDR30tn (US$2.2bn) over the next five years. The funding will be split between existing operations, entry into new markets and downstream acquisitions.

According to reports on Deal Street Asia, Semen Indonesia is looking to acquire majority interests in ready-mix and precast businesses. The firm is also planning to expand further afield and is considering its options in four countries, including Australia and Bangladesh.

In 1Q2016 Semen Indonesia’s revenue was down five per cent YoY to IDR6tn (US$451m) due to a combination of lower volume and price. Net income after minority interest was down 13.2 per cent to IDR1bn (US$75,000).

In the same period, sales volumes were 6.53Mt, a fall of 1.3 per cent YoY. EBITDA was down nine per cent YoY at IDR1.68bn (US$126,000).

The Jakarta Post also reports that Semen Indonesia will convert old factories in Gresik, East Java, into a museum and an education park.