Following a decline in cement sales, the second-biggest cement producer in Indonesia, Indocement Tunggal Prakarsa, has reduced its 2015 capital expenditure by 30% from IDR 5 trillion (€337.85 million/US$371.06 million) to IDR 3.5 trillion.
According to the Indonesia Cement Association, domestic sales of cement for the first half of 2015 dropped year-on-year by 4.3% to 27.7 million tonnes.
Within the same period, Indocement's cement sales fell 11.7% year-on-year from 9.4 million tonnes to 8.3 million tonnes, causing a net income decline of 8% to IDR 2.5 trillion and a fall in turnover tof 6.3% to IDR 8.8 trillion.
Production at three of the company's most expensive facilities are said to have been suspended to save costs due to the fall in sales, while the company will turn to the export market to make up for the shortfall in local sales. Additionally, Indocement will delay its investment in new andesite rock reserves.
