{"id":16905,"date":"2025-07-18T22:22:05","date_gmt":"2025-07-18T15:22:05","guid":{"rendered":"https:\/\/search.web.id\/digest\/intp\/"},"modified":"2025-07-18T22:34:02","modified_gmt":"2025-07-18T15:34:02","slug":"intp-and-indonesian-cement-sector-faces-deepening-downturn-in-1h25","status":"publish","type":"post","link":"https:\/\/search.web.id\/digest\/intp-and-indonesian-cement-sector-faces-deepening-downturn-in-1h25\/","title":{"rendered":"INTP and Indonesian Cement Sector Faces Deepening Downturn in 1H25"},"content":{"rendered":"

Indonesia’s cement industry faces a challenging period, as evidenced by a significant contraction in sales volumes during the first half of 2025. Data from Indocement Tunggal Prakarsa (INTP)<\/a> reveals a notable 7.3% year-on-year (YoY) decline in June 2025 industrial sales volume<\/strong>, culminating in a 3.1% YoY drop for the entire first half of 2025. This sharp reversal from the 2.2% YoY growth seen in 1H24 marks the third consecutive first-half downturn for the sector, signalling deeper structural headwinds.<\/strong><\/p>\n

Industry Downturn Deepens: A Three-Year Slump<\/h2>\n

The latest figures paint a stark picture: excluding the 2024 contribution from Semen Grobogan, which partially masked earlier trends, the first half of 2024 itself saw a 0.9% YoY contraction. This extended period of decline suggests that the Indonesian cement market is grappling with more than just cyclical fluctuations; it indicates a persistent softness in demand that requires close attention from investors and policymakers alike. The industry, often a bellwether for construction and infrastructure activity, is clearly under pressure.<\/p>\n

Segmented Slump: Bulk vs. Bagged Dynamics<\/h2>\n

A deeper dive into the sales composition reveals a divergent performance between bulk and bagged cement, illuminating key demand drivers and competitive dynamics.<\/p>\n

Bulk Cement: The IKN Impact and Shifting Sands<\/h3>\n

The industrial volume of bulk cement plummeted by 10% YoY, consequently reducing its contribution to total sales to 28% from 30.2% in 1H24. This decline is largely attributable to a slowdown in demand from large-scale infrastructure projects, most notably the Nusantara Capital City (IKN) initiative. Kalimantan, the region central to the IKN development, experienced a significant 20% YoY contraction in sales volume during 1H25, a dramatic reversal from the robust 22% YoY growth recorded in 1H24. This sharp deceleration underscores the volatility associated with mega-project timelines and the broader economic ripple effects.<\/strong><\/strong><\/p>\n

Bagged Cement: A Foundation of Stability Amidst Erosion<\/h3>\n

In contrast, bagged cement sales volumes remained relatively stagnant YoY in 1H25. This segment’s resilience saw its contribution to total sales rise to 72% from 69.8% in 1H24, reflecting the more stable demand from retail and smaller-scale construction. Interestingly, INTP<\/a>‘s management highlighted that their selling prices for bagged cement held firm as of June 2025. However, this stability exists against a backdrop where some competitors have begun offering discounts and promotions in regions experiencing heightened market contraction, hinting at potential future price pressures across the industry.<\/strong><\/p>\n

Giants Under Pressure: INTP<\/a> & SMGR<\/a><\/h2>\n

The industry-wide sales decline inevitably impacted its two dominant players: Indocement Tunggal Prakarsa (INTP)<\/a> and Semen Indonesia (SMGR)<\/a>. INTP<\/a> recorded a 2.8% YoY decline in cement sales volume for 1H25, a significant shift from the 10% YoY growth seen in 1H24 (which included Semen Grobogan). Similarly, SMGR<\/a>‘s sales volume fell by 2.2% YoY, worsening from its 1.1% YoY decline in 1H24.<\/strong><\/strong><\/p>\n

Market Share Realignments: A Shifting Duopoly<\/h3>\n

The combined market share of INTP<\/a> and SMGR<\/a>, which historically hovered around 79% in 2023-2024, contracted to 77.1% in 1H25 (from 79.4% in 1H24 and 77.2% in 1Q25). This erosion primarily stemmed from SMGR<\/a>, whose market share dwindled to 47.6% in 1H25 (down from 50% in 1H24 and 47.1% in 1Q25). This decline reflects SMGR<\/a>‘s domestic sales falling more steeply than the overall industry. Conversely, INTP<\/a> managed a slight market share gain, reaching 29.5% in 1H25 (a marginal increase from 29.4% in 1H24, though a slight dip from 30.1% in 1Q25), suggesting a more resilient strategy or regional demand. This subtle shift underscores the intense competition within a contracting market, where every percentage point of market share becomes a fiercely contested battleground.<\/strong><\/strong><\/strong><\/p>\n

<\/strong>INTP<\/a> <\/div>\n","protected":false},"excerpt":{"rendered":"

Indonesia’s cement industry faces a challenging period, as evidenced by a significant contraction in sales volumes during the first half of 2025. Data from Indocement Tunggal Prakarsa (INTP) reveals a notable 7.3% year-on-year (YoY) decline in June 2025 industrial sales volume, culminating in a 3.1% YoY drop for the entire first half of 2025. This […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[985],"tags":[257],"class_list":["post-16905","post","type-post","status-publish","format-standard","hentry","category-economy","tag-intp"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/posts\/16905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/comments?post=16905"}],"version-history":[{"count":1,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/posts\/16905\/revisions"}],"predecessor-version":[{"id":16915,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/posts\/16905\/revisions\/16915"}],"wp:attachment":[{"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/media?parent=16905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/categories?post=16905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/tags?post=16905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}