Examining Cement Issuers' Performance Amid Surge in Construction Credit
Construction credit within the property group grew by 49.5% year-on-year in August 2026. According to Bank Indonesia (BI), the position reached Rp585.3 trillion, compared to Rp391.4 trillion in August last year. Within a year, the outstanding credit value increased by Rp193.9 trillion.
This increase could potentially draw the attention of cement producers. Physical construction of the Merah Putih Village/Sub-district Cooperative includes warehouses and outlets, while the government is also undertaking the construction of People’s Schools (Sekolah Rakyat).
However, BI reports do not specify which projects are receiving construction credit. Therefore, the increase in credit cannot be directly linked to these two programmes or the sales of specific issuers.
Construction Credit
Monthly changes are calculated from the difference between two published credit positions, rounded to one decimal place. This figure represents the change in the credit balance, not new credit disbursements during the month in question.
The largest increase occurred in December 2025, amounting to Rp73.8 trillion from the previous month. March 2026 followed with an addition of Rp54.4 trillion. Conversely, the credit position decreased by Rp1.2 trillion in April 2026. After June, monthly increases were much smaller: Rp1.7 trillion each in July and August.
This sequence provides context for the 49.5% YoY growth figure. Most of the increase over the year had already occurred before August 2026. In fact, the annual growth rate for August was slightly lower than July, which reached 49.7%. Thus, the latest data shows a credit position that continues to rise, but with more limited monthly additions.
So, how has the performance of cement producers been? The first-half reports of 2026 serve as the available comparison to examine their sales and profits. This financial reporting period ended in June, so it has not yet captured the potential impact of construction activities in July and August.
Overall Revenue
Semen Indonesia (Persero) Tbk (SMGR) recorded the largest revenue and a nominal increase of approximately Rp2.04 trillion compared to the first half of 2025. Cemindo Gemilang Tbk (CMNT) and Solusi Bangun Indonesia Tbk (SMCB) also booked double-digit growth, while Indocement Tunggal Prakarsa Tbk (INTP) rose by 5.2%. Semen Baturaja Tbk (SMBR) moved in the opposite direction: its overall revenue fell by 12.2%.
These figures encompass all revenue sources for each company. To view the development of their core business more specifically, cement revenue needs to be isolated.
Cement Revenue
Cement revenue for SMGR increased by approximately Rp2.15 trillion, or 118.1% YoY—the highest rate among the five issuers. SMCB grew by 12.0%, CMNT by 8.5%, and INTP by 5.7%. Meanwhile, SMBR’s cement revenue fell by approximately Rp132.62 billion.
This uneven performance is important to note when reading the surge in construction credit. The material requirements of a project are only reflected in producer revenue when purchases occur. Each issuer’s results are also influenced by sales regions, pricing, and product mix.
Net Profit
SMGR’s profit rose sharply from a relatively low base in the first half of last year. INTP also recorded a profit increase of 19.2%. SMCB still recorded profit growth, but at a rate of 4.3%, which was slower than its cement revenue growth.
On the other hand, SMBR’s profit shrank to Rp21.21 billion. CMNT showed the clearest contrast between sales and final results: both overall and cement revenues rose, but the loss attributable to the owners of the parent entity widened to Rp254.89 billion.
Consequently, the growth in construction credit serves as a signal of financing activity, while the benefits for cement issuers must still be proven through sales and profits in the next reports.
Credit figures cannot be used in isolation to confirm that specific government projects are the cause of the increase, nor to determine which issuer stands to benefit the most.