Efficiency Drives Indocement's Profit Up 12 Percent in 2025
PT Indocement Tunggal Prakarsa Tbk (INTP) recorded a decline in sales volume throughout 2025, yet achieved growth in net profit for the period.
“Total cement and clinker sales volume reached 19,941 thousand tonnes in 2025. This figure is down 2.7% from 2024. The decline was mainly caused by weakening domestic sales by 3.9%. Nevertheless, we remain resilient thanks to several strategies implemented,” said Indocement’s President Director Christian Kartawijaya in Jakarta on Thursday (2/3).
From a financial performance perspective, the company’s net revenue was recorded at Rp17.73 trillion in 2025, down 4.4% from Rp18.55 trillion in 2024. The majority of INTP’s net revenue in 2025 came from the cement sales segment at Rp16.83 trillion. This was followed by revenue from the ready-mix concrete sales segment at Rp1.52 trillion and the aggregate mining segment at Rp252.28 billion. The total net revenue was then reduced by eliminations of Rp873.06 billion.
Meanwhile, the cost of goods sold decreased by 4.2% to Rp11.96 trillion compared to the previous year of Rp12.49 trillion. This resulted in a gross profit of Rp5.77 trillion with a margin of 32.5% against net revenue.
“Operational efficiency also supported performance. Operating expenses were reduced by 1.1% to Rp3.68 trillion. In addition, the company recorded a gain from divestment of Rp670 billion from the formation of a joint venture with PT Cipta Mortar Utama,” he explained.
Meanwhile, other net operating expenses fell 186.7% to minus Rp49.9 billion, mainly due to foreign exchange losses throughout the year. Overall, the operating profit margin was 15.3% and the EBITDA margin 24.1% in 2025.
“Net financial income declined 91.1% to Rp6.7 billion, driven by higher interest income in line with larger cash balances in 2025. The share of net profit from associates decreased 74.6% to Rp37.0 billion due to high profits in 2024 related to land sales,” he stated.
Additionally, net income tax expense was Rp487.6 billion, down 7.1%. Ultimately, the 2025 net profit for the year reached Rp2.2 trillion, up 12%.
He assessed that the impact of the rainy season and Eid al-Fitr holidays on the decline in cement demand is expected to only affect performance in the first quarter of 2026.
“It is estimated that starting from the second quarter of 2026, dry season factors and increased construction spending will boost and support growth in cement demand volume. However, geopolitical uncertainty remains a risk, particularly regarding rises in energy costs such as coal and fuel, so discipline in cost control and the use of alternative fuels will again be key for cement producers to maintain their performance,” he emphasised.