PT Indocement Tunggal Prakarsa Tbk (Indocement) is Indonesia's second largest cement producer in terms of market share. Operations of Indocement are spread across factories in West Java and South Kalimantan, comprising a total of 12 plants. The Citeureup factory in Bogor (West Java) is currently one of the largest cement factories in the world and operates nine plants with an annual installed design capacity of 11.9 million tons of cement. On 9 October 2013, Indocement started the development of Plant 14 in Citeureup (with installed design capacity of 4.4 million tons of cement per year). At the start of 2014, Indocement’s total installed design capacity was 18.6 million tons of cement per year, 4.4 million cubic meters of ready-mix concrete (RMC), with 40 batching plants and 648 mixer trucks, as well as 2.5 million tons of aggregates reserves. The company's market share in terms of cement sales in Indonesia is about 32 percent.
Indocement produces cement products marketed under the brand name "Tiga Roda". In 2001, German based HeidelbergCement Group became Indocement’s majority shareholder. The HeidelbergCement Group is a world-class player in the field of cement, ready-mix concrete, aggregates and other downstream activities in more than 40 countries.
|Industry Sector||Basic Industry and Chemicals|
|Industry Sub Sector||Cement|
|Established||16 January 1985|
|Listed||5 December 1989|
|Listed Company Code||INTP|
|Major Shareholders (>5%)||Birchwood Omnia Limited (51.00%)
Mekar Perkasa (13.03%)
|Key Subsidiaries||Pionirbeton Industri
Mandiri Sejahtera Sentra
Mineral Industri Sukabumi
Sahabat Mulia Sakti
Multi Bangun Galaxy
Stock Quote Indocement Tunggal Prakarsa - INTP:
Indocement offers a diversified range of cement products which are sold under the “Tiga Roda” brand. These include Portland Composite Cement (PCC), Ordinary Portland Cement (Type I, Type II and Type V), Oil Well Cement, White Cement and White Mortar TR30. Indocement is Indonesia’s only producer of White Cement. PCC, which was introduced in 2005, currently accounts for the majority of the company’s sales volume. This cement uses a lower ratio of clinker substituting alternative materials, which helps to enhance durability and resistance to weather and chemical erosion. The use of alternative materials also lowers energy requirements and CO2 emissions.
Indocement has become a leading provider of bulk cement and Ready-Mix Concrete (RMC). This business line is promoted through the Indocement subsidiary Pionirbeton Industri, which also uses the “Tiga Roda” brand.
Indocement Tunggal Prakarsa's Operational Highlights:
in million tons
in million tons
in million tons
Source: Indocement Tunggal Prakarsa
Export volumes - traditionally a small portion of cement production - declined significantly in recent years as Indocement is more focused on meeting high domestic demand. To offset surges in production costs (in particular energy costs) the company has managed to gradually increase domestic selling prices. Domestic sales are dominated by bagged cement, which constitutes around 83 percent of total domestic sales volume, while the remaining 17 percent comes from sales of bulk cement.
By around 90 percent, cement sales are the largest contributor towards Indocement's revenues. The remainder comes from the RMC and aggregates businesses.
Indocement Tunggal Prakarsa's Financial Highlights:
in million IDR (rupiah), unless stated otherwise
¹ in IDR (rupiah)
Source: Indocement Tunggal Prakarsa, Annual Report 2014
Due to the promising perspectives of the Indonesian cement sector, Indocement is currently investing in the construction of additional new cement mills in West Java, Central Java and one outside Java. The new cement plant in Citeureup (West Java), which will have a total production capacity of 4.4 million tons, is expected to be operational in the third quarter of 2015. The company is also preparing a feasibility study for two additional (greenfield) plants, one in Pati (Central Java) and another outside of Java. Each of these greenfield projects is designed to have an annual production capacity of 2.5 million tons. Taken together, it will push Indocement’s total annual production capacity to about 28 million tons from 18.6 million tons at end 2013. Indocement’s plants run at a utilization level of 97 percent.
Future Prospects of the Indonesian Cement Sector
Indonesia's cement sector has shown a steep increase in domestic cement production and consumption. This trend is estimated to continue for a number of reasons:
• Indonesia's current low per capita cement consumption (229 kg per capita in 2013).
• The government's intention to ramp up much-needed infrastructure development.
• An expanding middle class that gives rise to to new housing and real estate development.
• Solid national economic conditions with annual GDP growth of plus 5 percent.
What are issues that negatively affect the Indonesian cement sector:
• Infrastructure development is not reaching its full potential due to red tape, a weak legal system, and a lack of public and private funds.
• International financial turmoil (USA and Europe) can influence Indonesia's economic growth, thus affecting domestic cement demand.
• Recent central bank monetary tightening led to a cooling property market.
Wisma Indocement, 8th Floor
Jalan Jenderal Sudirman Kav. 70-71
Jakarta - 12910
Phone: +62 21 251 2121
Fax: +62 21 251 0066