Cibinong's H1 loss narrows

Cibinong's H1 loss narrows

JAKARTA: PT Semen Cibinong, Indonesian unit of the world's second-biggest cement maker, Holcim Ltd., said its first-half loss narrowed as sales rose, bolstered by higher construction demand.

The net loss at Indonesia's third-largest cement maker by volume narrowed to Rp 217.6 billion (US$21 million) in the six months ended June 30, from Rp 509.5 billion in the year-earlier period, the company said in a statement published on Saturday. Sales rose 21 percent to Rp 1.4 trillion.

Cement sales in Indonesia rose in the first half as faster economic growth and the lowest interest rates in seven years encouraged consumer spending and construction of homes and retail space in the nation of 238 million people. Indonesia's $258 billion economy, Southeast Asia biggest, expanded 5.1 percent last year and is forecast by the government to accelerate 6 percent this year and 6.2 percent next year, the fastest since 1996.

PT Semen Gresik, Indonesia's biggest cement maker, on July 30 said first-half profit increased 74 percent. Still, domestic cement sales growth may slow to "well below" 8 percent in 2005, after rising 9 percent in the first half of the year, PT Indocement Tunggal Prakarsa, the nation's second-biggest cement maker, said on Aug. 4. -- Bloomberg