Cement Issuers' Prospects in 2026 Remain Challenging, SMGR and INTP Deemed Most Resilient
JAKARTA. The growth space for the performance of cement producer issuers is expected to be somewhat limited after the first quarter of 2026. This is in line with the continued strong structural pressures looming over the national cement industry, from overcapacity to tight price competition.
Nevertheless, several cement issuers were still able to record performance improvements in early 2026 through efficiency strategies, average selling price enhancements, and optimisation of export markets and infrastructure projects.
PT Semen Indonesia Tbk (SMGR), for example, succeeded in booking a year-on-year (yoy) revenue increase of 8.37% to Rp 8.29 trillion in the first quarter of 2026. Net profit attributable to the parent entity’s owners also surged 88.68% yoy to Rp 80.34 billion.
Semen Indonesia’s Corporate Secretary Vita Mahreyni stated that this achievement is proof that the company’s transformation strategy is able to maintain business resilience while strengthening the foundation for long-term growth.
SMGR is currently continuing to strengthen export market penetration as a strategic step to increase factory utilisation. In addition, the company is expanding market opportunities for value-added derivative products to create new, more sustainable growth sources.
Positive performance was also recorded by SMGR’s subsidiary, PT Solusi Bangun Indonesia Tbk (SMCB). In the first quarter of 2026, SMCB booked a yoy revenue increase of 3.64% to Rp 2.56 trillion. SMCB’s net profit for the year even rose 111.30% yoy to Rp 101.89 billion.
Meanwhile, PT Cemindo Gemilang Tbk (CMNT) recorded a yoy revenue growth of 7.77% to Rp 2.08 trillion. CMNT also succeeded in reducing net losses attributable to the parent entity’s owners by 69.59% yoy to Rp 88.12 billion.
On the other hand, PT Indocement Tunggal Prakarsa Tbk (INTP) experienced a yoy revenue decline of 3.52% to Rp 3.84 trillion in the first quarter of 2026. Nevertheless, net profit attributable to the parent entity’s owners still grew 2.14% yoy to Rp 215.19 billion.
Meanwhile, PT Semen Baturaja Tbk (SMBR), which is SMGR’s subsidiary in southern Sumatra, recorded a yoy revenue decline of 16.75% to Rp 439.40 billion. SMBR’s net profit also fell 64.62% yoy to Rp 17.32 billion.
“For CMNT, the narrowing loss is more due to restructuring and efficiency rather than strong demand factors,” he said on Friday (8/5/2026).
According to Wafi, weakening sales volume and tight price competition remain the main challenges burdening INTP and SMBR’s performance.
He added that the prospects for the national cement industry remain quite challenging even though market conditions are beginning to show signs of stabilisation. The issue of overcapacity in the cement industry is still seen as the main obstacle, so the room for profit margin improvements is relatively limited.
A similar view was expressed by Senior Market Analyst at Mirae Asset Sekuritas, Nafan Aji Gusta. He assessed that cement sector growth will still be limited as long as demand has not recovered consistently and industry production capacity remains excessive.
According to Nafan, the cement sector has the potential to grow more significantly if there is an increase in cement needs from infrastructure projects or more aggressive monetary easing.
“Monetary easing will spur property sector growth, which is one of the main pillars of cement sales,” he added on Friday (8/5/2026).
Therefore, issuers are deemed to need to continue strengthening energy efficiency and optimising the use of alternative energy sources. Strengthening capital structure, distribution, and marketing area diversification also become important strategies to maintain sales performance amid a still sluggish market.
Wafi assessed that cement issuers with better survival chances are companies with large business scales, strong distribution networks, high energy efficiency, and exposure to strategic infrastructure projects and premium markets.
In the current conditions, SMGR and INTP are still considered relatively superior due to their large market shares and solid financial balance sheets.
“The main key for cement issuers now is not high growth, but the ability to maintain margins and factory utilisation,” he said.
For investment recommendations, Wafi considers SMGR and INTP shares still worth considering by investors. He set a target price for SMGR at Rp 5,500 per share and INTP at Rp 8,500 per share.