PT Semen Padang, part of the Semen Indonesia group of companies, reported a 6.8 per cent decrease in sales volumes in the first quarter of this year to 1.5Mt.
"The poor sales of cement were attributed to the sluggish domestic demand," said Semen Padang president director Benny Wendry told local press on Monday.
However, the company does not intend to rein in production levels and maintains its target of 7.6Mt, according to Wendry. It plans to offset the slump in domestic sales by stepping up exports, "which will be more beneficial allowing for the dollar exchange rate position," he explained.
Latest figures by the Indonesia Cement Association show that cement consumption declined by 3.2 per cent to 13.6Mt in the first quarter of 2015 from 14.1Mt a year earlier.
In its largest market of Sumatera, Semen Padang's sales declined by 1.1 per cent in 1Q15. However, its market share improved from 42.35 per cent last year to 43.59 per cent early this year, Wendry highlighted.

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