Cemindo Gemilang Projects Up to 7% Growth in Cement Sales for 2024

Cemindo Gemilang (CMNT) anticipates a sales growth of up to 7% in 2024, driven by Indonesia's economic recovery trends and several positive market sentiments.

Cemindo Gemilang Projects Up to 7% Growth in Cement Sales for 2024
Photo: Cemindo Gemilang

Cemindo Gemilang, under the direction of Director Ameesh Anand, projects an optimistic outlook for the cement industry in 2024, expecting sales growth of up to 7%. This positive forecast is supported by several key factors contributing to the demand for cement in Indonesia. Firstly, the industry's resurgence is buoyed by the expected normalization of commodity prices, such as coal, which is anticipated to continue into the year. A decline in coal prices is likely to reduce CMNT's production costs, enhancing profitability.

Secondly, the acceleration of the Nusantara Capital City (IKN) development in East Kalimantan and more evenly distributed infrastructure projects across Indonesia are set to positively impact CMNT. The construction of IKN and its facilities is also seen as a buffer against potential economic slowdowns, supporting Indonesia's economy.

Lastly, potential interest rate decreases, controlled inflation targets, and tax incentives for purchasing homes priced below 2 billion IDR are expected to positively influence the property sector, further boosting cement demand.

These factors collectively present a favorable environment for Cemindo Gemilang's growth in the coming year, reflecting the company's strategic positioning to capitalize on Indonesia's economic recovery and infrastructure development initiatives.

Source: Kontan