SMBR Optimizes 2019 Rebound Performance

In 2019, SMBR will continue to strive to maintain sales volume growth above 20%, which this year is targeted to reach 2.75 million tons or grow 26% compared to 2018 of 2.18 million tons.

In line with the election in 2019, SMBR is optimistic that it can maintain sales volume growth in line with the size of the market share cake in the Company. “Demand for our marketing areas in South Sumatra, Lampung, Jambi, Bengkulu and Bangka Belitung in 2018 reached 6.9 million tons (growing 9% compared to 2017) so we are optimistic the target of 2.75 million tons can be achieved,” said Jobi, President Director of SMBR.

SMBR is optimistic that the prospect of cement demand in the Southern Sumatra region will continue to increase along with the operation of the Trans Sumatra toll road from Bakauheni to Palembang which is scheduled to be operational in April 2019.

“We expect a multiplier effect from government infrastructure development which is expected to bring new economic centers along the toll road which will boost cement consumption. We are also still waiting for the next toll road projects such as Palembang-Bengkulu and Palembang-Jambi,” said Jobi.

On the operational side, SMBR currently has two factories in Baturaja with production capacity of 3.85 million tons / year. Meeting the needs of the cement transportation fleet was also fulfilled in November 2018 which added to management’s optimism to reach this year’s target.

In terms of financial performance, SMBR targets net profit growth after previously consolidated net income in the last three years. “For the bottom line, this year is a momentum for SMBR to rebound after the previous years have been depressed due to the operation of the Baturaja II Factory,” Jobi concluded.