Indonesia's biggest cement firm looks offshore amid glut

Jakarta

INDONESIA'S biggest cement producer is looking offshore as a supply glut damps profits at home, says the company's new president director.

Rizkan Chandra, 47, who took over as head of PT Semen Indonesia in May, said that he wants to raise sales outside of Indonesia to 10 to 15 per cent of revenue over the next three years from 5.2 per cent in 2015. The state-controlled company, which already has operations in Vietnam, may expand into Bangladesh, Sri Lanka and the Maldives, he said.

The entrance of China's Anhui Conch Cement Co and PT Cemindo Gemilang into the Indonesian market in recent years has led to overcapacity, while economic growth has slowed and the government's attempts to speed up infrastructure development haven't been sufficient to absorb the extra supply. Indonesian cement sales volumes should rise at least 5 per cent this year, but revenue growth will probably be flat, said Mr …