TEMPO.CO, Padang - State cement producer PT Semen Padang saw a steep decline in sales in the first quarter of the year, with a 6.8 percent decrease or 1.61 million tons last year to 1.50 million tons in the year's outset.

“The poor sales of cement were attributed to the sluggish domestic demand,” said Semen Padang president director Benny Wendry on Monday, April 13, 2015.

Benny, however, said his company would not rein in its production and maintain its target this year at 7.6 million tons.

Benny explained his company would boost exports to deal with the slumping sales. “We will not trim our production. The measure is to step up exports, which will be more beneficial allowing for the dollar exchange rate position,” he said.

He added the exports were aimed at securing growth in sales and would be carried out when domestic demand for cement had been met.

According to Benny, the subsidiary of the country’s largest cement maker PT Semen Gresik will keep catering to its regular markets, which comprised nations in the South Asia region. In the year’s first quarter, Indonesia’s oldest cement producer’s exports had doubled to 80,724 tons.

The national demand for the company’s cement, meanwhile, dipped by 3.3 percent, which Benny said partly ensued from the tight competition in the Java market.

PT Semen Padang also saw lower sales by 1.1 percent in Sumatera, which thus far has become its largest market. “Our sales dropped, but our market share in Sumatra is in fact climbing from 42.35 percent last year to 43.59 percent early this year.

ANDRI EL FARUQI