PT Mirae Asset Sekuritas Indonesia views the positive outlook of the infrastructure industry, including cement, as a support for Indonesia's solid economic resilience leading up to the 2024 political year and amidst global interest rate fluctuations. According to Senior Economist Mirae Asset’s statement, that the government has increased the budget for infrastructure development for IDR 26.2 trillion compared to 2022. The budget is focused on basic services such as housing, schools, water supply, as well as connectivity including roads and toll roads. However, the realization of infrastructure spending was Rp 59.7 trillion until April (equivalent to 15.2% of the total budget for 2023). The realization of infrastructure spending needs to be accelerated to support economic growth in both the short and long term, also in order to increase the demand for cement.

On the other hand, Research Analyst Mirae Asset, added that the performance of the two cement giants listed on the stock exchange, namely PT Semen Indonesia Tbk (SMGR) and PT Indocement Tunggal Prakarsa Tbk (INTP), showed positive results since the beginning of the year, especially for the first quarter of 2023. The performance of both cement producers in the first quarter of 2023 showed significant growth compared to the same quarter last year (YoY). However, with high global uncertainties, declining commodity prices, and the continued impact of monetary tightening, resulting a potential for slowdown in the coming quarters, and the acceleration of infrastructure development is expected to support the economy from the possibility of a slowdown.

Source:
https://www.medcom.id/amp/PNgyBdok-prospek-industri-semen-positif-dukung-ketahanan-ekonomi-indonesia