PT Semen Baturaja (Persero) was established on 14 November, 2017, with the shares 55% of PT Semen Indonesia and 45% of PT Semen Gresik.
The Company carries out the business ventures, specifically in the production of Terak, based in Baturaja, South Sumatra. While the process of cement grinding and packaging is carried out at Baturaja Factory, Palembang Factory and Panjang Factory, which then distributed to the market areas of the Company.
The raw materials of limestone and clay are obtained from the Company’s limestone and clay mining sites located approximately 1.2 km from Baturaja Factory.
Other supporting materials, such as silica sand, are obtained from partners around Baturaja area. Iron sand is obtained from partners in Lampung, Gypsum from Petro Chemical Gersik or imported from Thailand, and the packaging bags are obtained from domestic bag manufacturers.
The company changed its status from Domestic Investment (PMDN) to Persero with 88& share composition owned by Indonesian Government, PT Semen Padang at 7% and PT Semen Gresik at 5%.
The Indonesian Government took over all the shares ownership.
The Company refined its existing equipment to achieve an installed capacity target of 50.000 tons of cement per year. The Company implemented the Optimization Project I (OPT I), between 1992-1994 with the installed capacity increased to 550.000 tons of cement per year.
The Optimization Project II (OPT II) began in 1996 to increase the capacity to 1.250.000 tons of cement per year. Project OPT II was completed in 2001 and is actively producing until now.
In 2011, the Company was involved with the construction of Cement Mill and Packer projects with the capacity of 750.000 tons of cement per year. The project increases the cement capacity to 2 million tons of cement per year and operates commercially in July 2013.
The Company’s plan to continue expanding its business and adding the funding sources for expansion continues to be pursued. Therefore, the Company conducted its Initial Public Offering (IPO) on 28 June 2013 with the release of 23,76% or 2.337.678.500 shares to the public. The fund is intended for the construction of the Baturaja II plant with the capacity of 1,85 million tons of cement per year.
PT Semen Baturaja (Persero) has changed its status to an open company and renamed to PT Semen Baturaja (Persero) Tbk.
Today, the Company has expanded its main markets to South Sumatra and Lampung as well as Indonesia’s regions which are having the good and stable economic growth. Target market area is also a step to increase sales and reach out the installed capacity.
Meanwhile, to distribute each product, the Company uses distributors whose the networks spread throughout South Sumatera, Lampung, Jambi and Bengkulu.
The presence of the Company in the middle of the community is believed to be able to provide benefits to the Central and Regional Government in the form of taxes and retributions. As well as to shareholders in the form of dividends distribution, also dividends for the surrounding community through the absorption of local labor, and also in the form of partnership and community development for the community around the factory.