Navigating Overcapacity: SIG's Transformation Strategy to Tackle Business Challenges
PT Semen Indonesia (Persero) Tbk (SIG) continues to accelerate performance growth through a business transformation initiated on 1 July 2025. This move is designed to address the challenges facing the national cement industry, which is currently grappling with overcapacity and stagnant industry growth.
“We are undertaking this transformation to overcome challenges and increase the company’s profitability,” stated the President Director of SIG, Indrieffouny Indra, during Manufacture Check, CNBC Indonesia, on Wednesday (10/6/2026).
Indrieffouny explained that this business transformation comprises three main strategies: enhancing operational excellence for operational efficiency and cost control; increasing focus on retail sales, which contribute 70% of the company’s revenue; and expanding markets through exports and the introduction of various derivative products, including ready-mix concrete and integrated construction solutions.
“With these three strategies, we can increase sales and revenue while ensuring efficiency to boost profitability,” she explained.
SIG’s performance improvement aligns with the commitment of the Ministry of SOEs and Danantara to ensure that SOE transformations are increasingly measurable, transparent, and results-oriented. SIG’s sales volume grew by 1.7% in the first quarter of 2026, with the largest contribution coming from the domestic market, which rose by 5.4% year-on-year (yoy), primarily driven by the bagged cement segment, which saw a significant increase of 11% yoy.
Financially, revenue increased by 8.3% yoy to Rp 8.3 trillion. In terms of market share, there was an increase of 0.2%, rising from 46.1% to 46.3%.
“The disciplined application of cost leadership has contributed to an increase in profit attributable to the owners of the parent entity by 88%, or Rp 80 billion,” she stated.
Furthermore, the challenge of domestic cement overcapacity has prompted SIG to seek market expansion opportunities abroad, ranging from Africa to the Americas, in addition to its existing markets in Bangladesh, Taiwan, the Philippines, and Australia.
Additionally, SIG is targeting opportunities in the European market. According to Indrieffouny, Europe has a significant demand for cement, with requirements recorded at approximately 327 million tonnes in 2025 and projected to reach 436 million tonnes by 2034.
“This represents a substantial opportunity for SIG, as there is an increase in construction activities, infrastructure development, and government investment programmes in Europe, among others,” she explained.