Indonesian government’s cement price cut hits firms’ share prices

Indonesian cement makers Semen Indonesia and Holcim Indonesia have seen their share prices decline by a minimum of 14% from their July 2014 peak after the country’s president, Joko Widodo, announced that state-run cement makers will reduce their prices. The government instructed state-run cement makers to reduce their prices by IDR 3,000 (€0.20 US$ 0.23) a bag on 16 January 2015. The duration of the reduction or details of the method are still to be revealed. The share price of Indocement Tunggal Perkasa al
February 23, 2015 Read time: 1 min

RSSIndonesian cement makers 7818 Semen Indonesia and 680 Holcim Indonesia have seen their share prices decline by a minimum of 14% from their July 2014 peak after the country’s president, Joko Widodo, announced that state-run cement makers will reduce their prices.

The government instructed state-run cement makers to reduce their prices by IDR 3,000 (€0.20 US$ 0.23) a bag on 16 January 2015. The duration of the reduction or details of the method are still to be revealed.

The share price of Indocement Tunggal Perkasa also decreased by 8% in January 2015 following Widodo’s announcement. Holcim Indonesia saw its shares fall by 10%, while share price of Semen Indonesia also dropped by 10%.

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Semen Baturaja, Indonesia, raises revenue by 6.5% in 2013

In 2013, Indonesian state-owned cement producer Semen Baturaja has recorded a revenue of IDR 1.16 trillion (€73.7 million/US4101.84 million), up by 6.5% on-year.

Meanwhile, the company’snet profit rose by 4.6% to IDR 312.1 billion.

In terms of sales, Semen Baturaja has sold 1.26 million tonnes of cement in 2013, a hike by 2% on a year earlier.

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