Industry Sector Basic Industry and Chemicals
Industry Sub Sector Cement
Established 16 January 1985
Listed 5 December 1989
Listed Company Code INTP
Listed Shares 3,681,231,699
Dividend Yes
Major Shareholders (>5%) Birchwood Omnia Limited (51.00%)
Key Subsidiaries Pionirbeton Industri
Mandiri Sejahtera Sentra
Bahana Indonor
Mineral Industri Sukabumi
Sahabat Mulia Sakti
Multi Bangun Galaxy

Stock Quote Indocement Tunggal Prakarsa - INTP:

Business Summary

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.

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.

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 2018, Indocement’s total installed design capacity was 24.9 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 Tunggal Prakarsa's Operational Highlights:

  2014 2015 2016 2017 2018
Cement Production
 in million tons
18.5 17.3 16.4 17.1
Cement Sales
in million tons
18.7 17.1 16.4
Cement Export
in million tons
0.08 0.11 0.72


  2009 2010 2011 2012 2013
Cement Production
 in million tons
11.8 12.9 15.4 18.0 17.8
Cement Sales
in million tons
      18.0 18.2
Cement Export
in million tons
 1.6  1.0  0.6  0.1

Source: Indocement Tunggal Prakarsa Annual Report 2016

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.

Financial Highlights Indocement Tunggal Prakarsa:

    2015   2016   2017   2018
Net Revenue 17,798 15,362 24,431
Gross Profit
 7,909  6,331  5,008
Operating Income  5,057  3,645  1,875
Net Income
 4,357  3,870  1,860
Total Assets
27,638 30,151 28,864
Total Liabilities  3,772  4,012  4,307
Earnings per
 1,183  1,051   505
Dividend per
  415   929


    2010   2011   2012
  2013   2014
Net Revenue 11,138 13,888 17,290 18,691 19,996
Gross Profit
 5,541  6,414  8,270  8,654  9,106
Operating Income  4,061  4,418  5,877  6,064  6,001
EBITDA  4,683  5,082  6,650
Net Income
 3,225  3,602  4,763  5,012  5,293
Total Assets
15,346 18,151 22,755 26,607 28,885
Total Liabilities  2,246  2,418  3,336  3,630  4,308
Earnings per
  876   977  1,293  1,361  1,437
Dividend per
  225   263   450  1,350   415

in million IDR (rupiah), unless stated otherwise
¹ in IDR (rupiah)
Source: Indocement Tunggal Prakarsa, Annual Report 2017

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
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

Indocement Tunggal Prakarsa, Semen Indonesia, and Holcim Indonesia dominate Indonesia's cement sector. Click here for a detailed analysis of Indonesia's cement industry and market.

Projection Indocement Tunggal Prakarsa's Future Corporate Earnings:

   2018  2019 2020F 2021F 2022F
Net Revenue 15,190 15,939 14,196 15,031 16,913
EBITDA  2,006  3,198  2,519  2,878  3,422
Net Profit  1,146  1,835  1,312  1,536  2,110
P/E Ratio (x)   37.9   23.7   33.1   28.3   20.6
P/BV (x)    1.8    1.9    1.9    1.9    1.9
ROAA (%)    4.1    6.6    4.8    5.6    7.5

in billion IDR, unless otherwise stated
Source: Danareksa Sekuritas (25.09.2020)


Detail Kontak

Wisma Indocement, 8th Floor
Jalan Jenderal Sudirman Kav. 70-71
Jakarta - 12910
Phone: +62 21 251 2121
Fax: +62 21 251 0066