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Please be careful of recruitment scam being carried out under Indocement or subsidiaries of Indocement...Valid information about recruitment in Indocement only provide at Indocement official website (www.indocement.co.id)...Indocement shares (INTP.JK) were closed (27/03) at Rp21,400, increase Rp375 (1.78%)    Friday, 27 March 2015   
  
  

 
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Sales and Marketing

Cement

In 2013, total cement production by the Company reached 17.8 million tons, a decline of 1.1% from 18.0 million tons in 2012. Meanwhile, the capacity utilization has reached 96.6%.

In 2013, the Company's cement domestic sales volume amounted to 18.0 million tons, an increase of 0.5% compared to 17.9 million tons in 2012. The Company imported cement for its RMC business that grew rapidly for the first time in 2013. With this additional volume, the domestic sales volume of the Company increased by 1.7% in 2013.

Meanwhile, the volume of cement export sales increased from 95 thousand tons in 2012 to 217 thousand tons in 2013. In 2013, main focus of the Company was to control production cost. This was in line with the Company's policy to maintain its operating margin, rather than reducing selling price, which resulted in the decline of Indocement's market share from 32.0% to 30.4%. Taking into account the above import volume, Indocement's market share was 30.7%.

Nevertheless, the Company was able to use the strong momentum of the market to increase the average domestic selling price of its cement by 5.0%, which contributed to the increase in the Company's net revenues.

Ready-Mix Concrete

Rapid growth of the ready-mix concrete (RMC) business segment enables Indocement to become the undisputed leader in RMC sector. The increasing growth of infrastructure development impacted the increasing consumption of RMC and ultimately has driven the revenue contribution from this segment, increasing significantly by 41.6% from IDR1,933.7 billion in 2012 to IDR2,738.6 billion in 2013.

One of the major challenges faced by the business segment of RMC in 2013 was the aggregates supply. A moratorium (temporary ban of opening new mines) issued to limit the aggregate mining activities has became one of the main factors. To address this issue, the Company has acquired an aggregates mining company, PT Tarabatuh Manunggal.

Other efforts conducted by the Company are expansion projects and locating batching plants in more strategic locations to support the distribution of RMC.

In 2013, the Company has allocated investment amounting to IDR89.3 billion mostly for additional batching plants and mixer trucks. By the end of 2013, Indocement has 40 batching plants and 648 mixer trucks with total production capacity of 4.4 million cubic meters.

Aggregates

To support the growth of the RMC business segment, the Company also focused on the development of the aggregates business. One of the challenges faced by the aggregates business segment in 2013 was the aggregates moratorium. On this basis, the focus for the aggregates business development for the coming years lies in increasing capacity.

In 2013, aggregates production volume amounted to 2.5 million tons growing by 41.6% compared to 1.7 million tons in 2012.