Semen Indonesia Performs Well Despite Rupiah Fall

Jakarta, July 16 (Antara) - State-owned cement company PT Semen Indonesia Tbk (SMGR) said the falling value of rupiah lately has no significant effect on its performance. "The impact of rupiah fall is only on imports of some of its basic materials, while it gains from exports," Dwi Soetjipto, president of the country`s largest cement maker, said. The company`s cement and clinker will have greater competitive edge in export market as a result of the weak rupiah, Dwi said here on Tuesday. "We will earn from exports more dollar, which is higher in value," he pointed out. The company, however, has no plan to increase its portion of exports to protect stability in supply on the domestic market, he said, adding demand for cement has remained strong on the domestic market. He said this year the company set sales target at more than 28 million tons on the domestic market including 2.3 million tons from its subsidiary Thang Long Cement Joint Stock Company (TLCC)in Vietnam. Last year, its sales on the domestic market totaled 24 million tons . "In 2013, we hope to chalk up a 20 percent increase in income from Rp19.6 trillion in 2012," Dwi said. The company sets aside Rp3 trillion for capital spending this year including operating cost, land clearing for a new factory in Rembang and Padang and for advance payment of a production machine. The company already has a big cement producing unit in Padang, West Sumatra, under its subsidiary PT Semen Padang.