Cement Demand Yet to Recover Since Pandemic, SMGR Revenue Declines

PT Semen Indonesia Tbk (SMGR) recorded a cement sales volume throughout 2025 of 37.8 million tonnes per year, a 0.6% decrease compared to 38.3 million tonnes in 2024. This sales volume affected the revenue for the full year 2025, which fell 2.6% compared to 2024. Additionally, the revenue decline was also influenced by selling price pressures due to weakening cement demand, particularly for project cement. “Because the volume was lower and prices in the first semester were also lower. In the first semester, we recorded revenue of Rp15.6 trillion, in the second semester it grew to Rp19.6 trillion,” said SMGR President Director Indrieffouny Indra during a meeting with Commission VI at the DPR RI building in Jakarta on Wednesday (1/4/2026). He explained that the performance decline was also influenced by oversupply conditions in the cement industry market and weakening demand for cement products. “Previously 63%, now only 52%. The cause is that since 2019, cement demand has not increased,” he stated. In addition, factory utilisation up to now has also continued to decline since 2019. “Meanwhile, production capacity has increased. From 111 million tonnes, it is now 122 million tonnes,” he added. He hopes that the government’s 3 million housing programme can increase domestic cement demand. “Approximately, these 3 million houses will require about 9 million tonnes of cement or 3% of the market share capacity,” he concluded.