Semen Indonesia (SMGR) Optimistic About Cement Industry Prospects Until 2027
PT Semen Indonesia Tbk (SMGR) has expressed optimism regarding the prospects of the cement industry up to the year 2027.
SMGR President Director, Indrieffouny Indra, stated that the company believes the industry will maintain a positive trajectory, supported by government programmes that act as drivers for cement demand. Ongoing initiatives include the 3-million-house programme, the development of the Merah Putih Village Cooperatives, Merah Putih Fishing Villages, and People’s Schools, alongside national and regional infrastructure projects. Additionally, the construction of the Giant Sea Wall is set to commence this year.
“Furthermore, this is supported by industrial investment, downstreaming, and private sector developments, including high-rise residential buildings, commercial areas, and data centres,” she said during SMGR’s Public Expose Live on Tuesday (8/9/2026).
As a corporation specialising in building material solutions, SMGR also offers innovative products to meet various construction needs. The company’s operations are supported by an extensive production and distribution network across Indonesia, reaching even remote areas.
SMGR Deputy President Director, Andriano Hosny Panangian, outlined several strategies aimed at business improvement and revenue maintenance. First, SMGR is enhancing channel management and working methods to engage more closely with retail stores, such as building material shops, and the ecosystems of builders and contractors, which are the primary drivers of cement consumption, particularly in the retail segment.
“Regarding the restructuring of supply chain and logistics management, we aim to optimise and streamline the delivery of our cement products to the retail segment. Third, we are strengthening our non-cement product portfolio, including ready-mix, precision interlocking bricks, and other derivative products,” he explained.
Andriano noted that once business restructuring is completed to achieve a healthier revenue profile, SMGR will focus on cost optimisation and efficiency. This involves controlling costs within both COGS and overheads, which has successfully maintained financial margins and profitability, as evidenced by SIG’s EBITDA and bottom-line achievements up to the first semester of 2026.
Under these conditions, Semen Indonesia is also pushing for the strengthening of its organisational structure and governance through the streamlining and restructuring of its subsidiaries. “We are conducting restructuring and several consolidations and mergers at the subsidiary level to ensure optimisation in supporting our business penetration within the building materials industry,” he added.