Semen Indonesia's Financial Performance Declines Amid Weakening Demand

Revenue and Profit Decline

PT Semen Indonesia (Persero) Tbk (SMGR) has reported a decline in its financial performance for the period of January-September 2025. The company recorded a revenue of Rp 25.30 trillion, representing a 3.76% year-on-year decrease ¹

. More significantly, the company's net profit plummeted by 84.04% year-on-year to Rp 114.83 billion.

Demand Trends

The decline in SMGR's performance is largely attributed to weakening demand for cement. According to Eka Rahmawati, Analis Binaartha Sekuritas, domestic cement demand decreased by 3.8% year-on-year to 6.08 million tons in October 2025 ¹

. The demand for packaged cement in Java saw a marginal increase of 0.5% yoy, while demand outside Java weakened by 2.1% yoy. The bulk cement segment experienced even sharper declines, with sales dropping by 8.7% yoy in Java and 13.2% yoy outside Java.

Outlook for 2026

Despite the current challenges, analysts are projecting a gradual recovery for SMGR in early 2026. Abida Massi Armand, Analis BRI Danareksa Sekuritas, noted that the recovery is expected to be driven by the acceleration of fiscal disbursements and government budget realization ²

. Infrastructure projects are likely to play a crucial role in boosting cement demand and supporting SMGR's performance.