REPUBLIKA.CO.ID, JAKARTA -- Indonesia's largest cement producer PT Semen Indonesia Tbk (SMGR) reported a net profit of Rp5.37 trillion in 2013, or a 10.8 percent increase on-year.

President of the state owned company Dwi Soetjipto said in a statement the increase in net profit was attributable mainly to 25 percent rise in income to Rp24.5 trillion.

A strong growth of 27 percent in sales to 27.81 million tons pushed up the income in 2013, Dwi said here on Sunday.

He said sales on the domestic market totaled 25.4 million tons or an increase of 13.2 percent far outpacing the country's average manufacturing growth rate of 5.5 percent in 2013.

Exports contributed only a small portion to its total sales.

"The company's market share on the domestic market rose to 44 percent in 2013 from 41 percent in 2012, strengthening its leading position among cement producers in the country," he said.

He said the company has performed well pointing out it still managed to post an increase in profit despite rising cost with the energy price hike including oil fuel and electricity.

The company did not raise its selling price despite the rising production cost , but strong growth in sales more than offset the decline in profit margin, he said.

"The increase in the spending by the company was partly caused by an increase in the fixed assets of Semen Tonasa V and the construction of a number of packing plants in 2013 such as one in Sorong and rupiah depreciation," he said.

Semen Tonasa in South Sulawesi is one of two big subsidiaries of Semen Indonesia in the regions with the other one Semen Padang in West Sumatra.

The operation of new packing plants has reduced packaging cost from Rp33,078 per ton of cement to Rp29,420, allowing the company to maintain competitiveness in price.

Currently the company has 22 packing plants all over the country with 11 special ports and 365 main distributors.

In 2014, the company plans to expand its production capacity by 1.8 million tons to 31.8 million tons a year.

The capacity is to be expanded further to 40 million tons in 2017 by building more factories, Dwi said.

"The company will focus expansion in the region with support from its subsidiaries that include those operating in cement industry and transport sector," he said.

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