PT Semen Indonesia receives 9M19 profit decline

Cement producer PT Semen Indonesia received a profit decline in 9M19 on the back of surging finance costs. Although Semen Indonesia earned IDR1.3trn (US$92.85m) in net profit from January to September, the profit was a 38 per cent down from 9M18 due to increasing finance costs, which jumped 235.33 per cent YoY.

According to the company's financial report released on 31 October, revenue increased 31 per cent YoY to INR28.12trn in the nine-month period thanks to additional contributions from its newly-acquired subsidiary, publicly-listed PT Solusi Bangun Indonesia (SBI), which joined the group in February.

Domestic cement sales as of September outside of SBI, meanwhile, declined 4.9 per cent from the same period last year, as national cement demand slumped YoY per cent YoY. However, export sales volume rose seven per cent to 2.9Mt during the period.

Company spokesperson Sigit Wahono said the company would work with its subsidiaries to increase profitability. "We will promote cost efficiency through various cost transformations and develop the building material business that has added value to our company," Mr Wahono said.