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Cement producers see dim outlook for 2017
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A worker of state-owned cement producer Semen Indonesia (SI) poses near the company’s truck in an SI cement manufacturing facility. (Tempo/-)
D
espite sluggish growth in the housing market, local cement manufacturers still can expect to book profits next year, mainly driven by the government’s massive infrastructure projects, an analyst has suggested.
“They [cement producers] will still be able to survive and generate profits although their [sales] growth will likely slow down,” Satrio Utomo, the head of research at Universal Broker Indonesia, said as quoted by kontan.co.id on Monday evening.
The expected increase in oil prices will be another risk, as it will affect the price of electricity, which is a vital factor in the cement-making process, Satrio said.
(Read also: Waiting for better days for cement producers)
In the first 10 months of 2016, state-run cement maker Semen Indonesia recorded 21.2 million tons of sales, only 1.3 percent higher than the same period last year.
Meanwhile, publicly-listed cement producer Indocement Tunggal Prakarsa saw its sales drop by 3.6 percent to 13.2 million tons. Holcim Indonesia’s sales also decreased by 10.6 percent to 6.2 million tons. (win/hwa)
