INTP - PT. Indocement Tunggal Prakarsa Tbk

Rp 7.225

-100 (-1,00%)

JAKARTA - PT Indocement Tunggal Prakarsa Tbk (INTP) is optimistic about increasing the production volume of PT Semen Grobogan (SGB) to 2.9 million tons of cement after its acquisition. The transaction to acquire all SGB shares will be completed by the end of November 2023.

Christian Kartawijaya, President Director of PT Indocement Tunggal Prakarsa Tbk (INTP) said that the company was able to reach cement needs on the island of Java after acquiring SGB. "This SGB location, its production can supply the western part of East Java. In the eastern part of East Java, we can supply it from the factory unit in Banyuwangi," he said when met by IDNFinancials, Monday (13/11).

According to him, the company will more efficiently distribute cement to Central Java by acquiring the SGB factory. So far, INTP's distribution has been very efficient in West Java and DKI Jakarta because it has factories in Citeureup and Cirebon, West Java and Cigading Terminal, Banten.

Kartawijaya stated that INTP's market share in Central Java is 33%, which is distributed from the Citeureup Factory by rail transport. Distribution costs from the Citeureup and Cibinong factories are respectively IDR 150 thousand per ton and IDR 120 thousand per ton to Central Java. With the factory in Grobogan, transportation costs and fuel consumption will be saved.

"Later, we will utilize it up to 100%. The current production capacity is 2.5 million tons, it could increase to 2.9 million tons because it doesn't use alternative raw materials and fuels. So if Indocement comes in, it will be another saving because there will be efficiency," he said.

According to him, INTP will release three brands of cement from the SGB factory, including maintaining the SGB brand because it already has its own consumers. (LK/LM)