SIG's Three Transformation Strategies to Tackle Cement Industry Overcapacity

Amid the challenges facing the national cement industry, which is grappling with an overcapacity market and stagnant growth, PT Semen Indonesia (Persero) Tbk (SIG) is accelerating its business transformation, which commenced on 1 July 2025. SIG President Director Indrieffouny Indra stated that the company’s business transformation is part of a strategy to address these business challenges and enhance profitability. SIG has three main strategies in its business transformation. The first is retail sales, focusing on the retail segment to penetrate the end-to-end market. The second strategy is operational excellence to reduce production costs and increase competitiveness. The third involves developing non-cement businesses into derivative products, including ready-mix concrete, precast concrete, mortar or instant cement, and green cement. These measures can increase revenue through higher sales and lower production costs, thereby maintaining profitability.