Semen Indonesia Revenues Up By 11 Percent

TEMPO.CO, Jakarta - State-owned cement company Semen Indonesia has listed an increase in its revenues during the third quarter of 2014 by 11.2 percent, or Rp 19.3 trillion, compared to the same period in 2013. Semen Indonesia CEO, Dwi Soetjipto, said that the increase was due to a 10.6 percent rise in sales, amounting to Rp 18.65 trillion. "Our cement sales to third-party customers rose by 13.7 percent," said Dwi, in a written report to the Indonesia Stock Exchange (BEI), on Thursday, Ocotber 30, 2014.

From January to September 2014, Semen Indonesia registered a sales volume of 19.1 million tons, equals to 3.3 percent rise. The company announced a rise in their prices, following a rise in the price of electricity back in May as well as the higher price of diesel fuel.

But the increase in revenues has yet to cover the company's operational and financial burden, so that gross profits in the third quarter grew only by 7.8 percent or Rp 8.45 trillion, while net profit grew by 4.6 percent or Rp 4.08 trillion. "This is normal, given the rise in operational costs," commented Investa Saran Mandiri analyst, Kiswoyo Adi Joe, yesterday. He predicted Semen Indonesia’s revenues will go up by 15 percent next year, as the government will have constructed better infrastructure.

FAIZ NASHRILLAH l GANGSAR PARIKESIT l ABDUL MALIK