Indonesian Cement Sector Faces Continued Pressure

Mixed Q3 2025 Financial Results

The Indonesian cement industry experienced mixed financial performance in Q3 2025, with major players reporting varying degrees of success amid challenging market conditions. PT Semen Indonesia (SMGR), the largest cement producer in Indonesia, saw its revenue decline by 3.76% year-on-year to Rp 25.30 trillion. The company's net profit experienced a significant drop of 84.04% to Rp 114.83 billion.

Revenue and Profitability Trends

Other major cement companies showed different performance metrics. PT Indocement Tunggal Prakarsa (INTP) reported a revenue decrease of 3.07% to Rp 12.91 trillion, but managed to achieve a marginal net profit growth of 0.95% to Rp 1.06 trillion. In contrast, PT Cemindo Gemilang (CMNT) saw its revenue decline by 1.07% to Rp 6.42 trillion, while its net loss widened by 5.72% to Rp 186.82 billion.

Market Challenges and Outlook

The cement sector continues to face significant challenges primarily due to subdued domestic demand. The lack of recovery in domestic consumption has put pressure on major producers, potentially setting the stage for a challenging year ahead. Industry analysts are closely monitoring whether the current trends will persist and how companies might adapt their strategies to mitigate the impact of weak demand.