INTP - A Potential for higher cement sales due to IKN project

INTP - A Potential for higher cement sales due to IKN project Indocement Tunggal Prakarsa (INTP) expects the positive impact from IKN project on INTP's performance will be felt when the private sectors involvement increases. INTP has also prepared Samarinda Cement Terminal, in order to supply the needs of the IKN project. INTP is also ready to send cement from its Tarjun Plant Complex in Kotabaru, South Kalimantan, and the Maros Plant Complex in South Sulawesi, which it has leased from Semen Bosowa. Moreover, based on Indonesian Cement Asociation (ASI) that the domestic cement sales volume grew 1.6% yoy at 6 mn tons in 8M23 with a 27% yoy higher cement sales in Kalimantan. Note that, currently, the projects in IKN Nusantara is still at early stage handled by state-owned enterprises (SOE) and have not yet significantly impacted the cement sales, especially in Kalimantan. Yet, INTP remains optimistic for 2023 and expects a 2% yoy growth in Indonesia' cement sales on the back of a more favorable weather conditions and the IKN project. In 8M23, INTP reported a 7.8% yoy growth in cement sales volume, mainly from outside of Java. Meanwhile, Semen Indonesia (SMGR) plans to establish a consortium with several other SOEs, in order to participate in the IKN Nusantara projects, East Kalimantan. SMGR targets to optimize its participation in the development of IKN Nusantara projects, which could drive cement consumption in the region. (Source: Bisnis Indonesia)