CEO Speech

Semen Baturaja becomes more optimistic to face the competition of the cement industry in the future, with the presence of Baturaja II Factory with the capacity of 1,85 million tons per year.Thus, the total production capacity increases to 3.85 million tons of cement per year.

In achieving the future challenges, the Company also prepared the three initiatives, known as the “Three Elephants Initiative”, consist of Cost Leadership, Market Expansion and Streamlining Business Process.

Leadership Cost

Efficiency through the various steps such as reducing the clinker factor, energy savings through the use of coal with lower calories (4.500 and 5.500 kcal / kg), long term coal procurement contracts until 2020 and use of cheaper I4 electricity tariff.

Efficiency is also done by the distribution and logistics costs. Finally, on Monday (31 July 2017), the Company has conducted a railway cooperation with PT KALOG (Railway Logistics) for Three Elephant Station (Baturaja) flight to Tegineneng Station (Lampung) as far as 191 km and Pidada Station (Lampung) as far as 227 km.

There will also be prepared a buffer stock warehouse as a hub of cement distribution in Tegineneng Station. In addition to these routes, the Company has previously established a transportation with a cooperation for the routes to Palembang and Lubuk Linggau.

Market Expansion

In the initiative market expansion, the Company is incorporated in new markets such as in Jambi and Bengkulu. Until June 2017, sales figures in Jambi and Bengkulu have grown to 20.338 tons and 15.338 tons.

Business Process Streamlines

The last initiative is Business Process Streamlining Active to Accelerate Process. Until the end of the year, it is Increased by IDR 780 billion, grew 38% compared to 2016.

Silvikutur Technology

Along with the aggressive efforts to respond the market needs, Semen Baturaja is also the first cement producer with an environmental perspective. In collaboration with the Faculty of Forestry Universitas Gadjah Mada Yogyakarta, Silvikutur development technology use to restore soil fertility around the factory area.

May this website useful as a source of information to add insights and inspirations. Let us all rise together for our country.

Rahmad Pribadi
CEO PT Semen Baturaja (Persero) Tbk