Sales Decline, Yet Indocement (INTP) Reports 12% Increase in 2025 Net Profit
JAKARTA, KOMPAS.com - PT Indocement Tunggal Prakarsa Tbk (INTP) recorded a decline in sales volume throughout 2025, yet still posted growth in net profit for the period.
Indocement’s President Director, Christian Kartawijaya, stated that the total volume of cement and clinker sales reached 19,941 tonnes in 2025, a 2.7% decrease compared to 2024.
The decline was mainly due to weakening domestic sales by 3.9%, although exports surged by 73.9%.
“Indocement remains resilient amid challenges through several strategies we have implemented,” Christian said during a press conference in Central Jakarta on Wednesday (1/4/2026).
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 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.
The company’s cost of goods sold fell 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.
Nevertheless, Christian noted that operational efficiencies also supported performance. Operating expenses were reduced by 1.1% to Rp3.68 trillion. Additionally, the company recorded a gain from divestment of Rp670 billion from forming a joint venture with PT Cipta Mortar Utama.
Other net operating expenses dropped 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. Net share of profit from associates fell 74.6% to Rp37.0 billion due to high profits in 2024 (related to land sales),” he explained.
Anticipating Demand Growth with a Cautious Approach to Costs
Christian explained that the impact of the rainy season and Eid al-Fitr holidays on declining cement demand is expected to affect performance only in Q1 2026.
He predicts that starting from Q2 2026, dry season factors and increased construction spending will lift and support growth in cement demand volume.
However, geopolitical uncertainties remain a risk, particularly regarding rises in energy costs for coal and fuel, so cost control discipline and the use of alternative fuels will again be key for cement producers to maintain their performance.