JAKARTA. PT Indocement Tunggal Prakarsa Tbk (INTP) believes that the demand for cement in Java will increase, because the consumption growth there is stronger than in other regions.
Mimi Halimin, an analyst of Mirae Asset Sekuritas, said that after holding talks with INTP management earlier this week. Halimin admitted that consumption growth in Java was only around 1% Year on Year (YoY) in 9M 2019. Meanwhile, the consumption decline outside Java was 2% YoY in the same period.
"The management is quite excited because they believe the demand is shifting back to Java," Halimin said through an official statement on Thursday (14/11) today.
Until the end of this year, Halimin estimates that the cement industry in Indonesia can produce 114.8 million tons of cement. While inventory in the market is estimated to be still higher, compared to the level of consumption. (KR/AR)