The Light rail transit (LRT) Project in Jakarta has become a positive sentiment for the movement of shares of PT Semen Indonesia Tbk (SMGR) and PT Semen Baturaja Tbk (SMBR), both major suppliers of cement and ready mix for the LRT project. The ground breaking will take place on June 22, 2016.
SMGR maintains its dominance with a market share of 40%, with the total cement sales volume in May 2016 reaching 2.11 million tons, a 7% increase from the same period last year. Semen Indonesia’s subsidiary, PT SGG Prima, supplies ready mix concrete for the project along the 42.1 km LRT by PT Adhi Karya Tbk (ADHI). Meanwhile, Semen Baturaja’s sales volume of 133,000 tons is absorbed by the LRT project. Its total cement sales volume in May 2016 reached 133 024 tonnes, a 6.6% rise yoy.
Indonesian Cement Association (ASI) reported that domestic cement sales volume in January-May 2016 reached 24.1 million tons, higher by 3.9% over the same period last year. As of May 2016, domestic cement sales volume growth on a monthly basis stands at 12.6% to 5.13 million, sales volume of cement from PT Indocement Tunggal Tbk (INTP) dropped 5.2% yoy to 1.36 million tones, and PT Holcim Indonesia Tbk (SMCB) also recorded a decrease in cement sales volume by 6% yoy to 650,000 tonnes. (*)
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