Semen Indonesia (SMGR): New Product Innovations Contribute 11 Percent to Construction Material Costs
JAKARTA - The building materials industry is seen as having significant opportunities in product development and supply chain enhancement.
PT Semen Indonesia (Persero) Tbk or SIG (SMGR) is tackling the building materials industry through innovations in derivative or spin-off products to create sustainable growth.
Deputy Director of Semen Indonesia (SIG), Andriano Hosny Panangian, stated that building materials have a highly potential market in Indonesia.
As an industry leader, SIG continues to enhance its capabilities by introducing a variety of building material product innovations and optimising its extensive operational network to support construction needs across Indonesia and even regionally.
He explained that the building materials industry in Indonesia has a very large ecosystem. For instance, the cement industry only contributes around 11 percent to the total cost of building construction materials. In other words, there remains 89 percent potential from other building materials that can be developed.
“SIG has the largest and strongest distribution capability and network in this industry. Therefore, SIG is moving towards a more customer-centric and value-driven business by continuously innovating to introduce derivative products,” said Andriano in a written statement on Wednesday (22/4/2026).
Andriano also highlighted initiatives to improve energy efficiency to be more adaptive to business dynamics. According to him, SIG places sustainability principles as the foundation in its operations, including optimising digitalisation and expanding collaborations for a sustainable supply chain.
Furthermore, at the “Leading Sustainable Building Solution for a Resilient Future” conference as part of INTERCEM Asia 2026, Semen Indonesia rolled out the red carpet to expand global collaborations in developing building material innovations and sustainable supply chains.
This step is part of SIG’s transformation towards a more customer-centric business with high added value.
Andriano added that INTERCEM Asia opens opportunities to expand collaborations with industry stakeholders, from producers, suppliers, to technology providers, to support the company’s transformation efforts.
In 2025, this sector recorded growth of 6.16 percent with investment value reaching Rp 25 trillion, export value of US$1.79 billion, and absorbing more than 900,000 workers.
“Indonesia is open to strengthening collaborations with global partners in pushing a more resilient, efficient, and sustainable cement industry. Therefore, INTERCEM Asia 2026 is not only a forum for exchanging knowledge and best practices, but also a strategic platform to deepen partnerships and accelerate innovation and industry resilience in the future,” concluded Emmy.