CLSA Indonesia - July cement volume - slowing

* total domestic cement volume growth slowed to 6.5% YoY to 3.7m tonnes, while YTD growth stands at 10.7%

* Holcim is the fastest growing by volume, with output up 14% YoY for July and 18% YoY YTD

* Semen Gresik volume growth remains anemic at < 4% YTD and is likely to remain the case until 2012 when new capacity is operational

* The 3Q is historically the best for cement demand; poor govt fiscal allocation of the budget and unseasonal rain is likely to have affected demand

* Prices have not increased now for 18 consecutive months; recent electricity price hikes might change that situation

* USD-based costs account for 30-50% of COGS and a higher currency will help keep costs down and margins steady.

* INTP and SMCB remain our conviction calls; we have an U/P on SMGR