Official! The Government Transfers 75.51% of Semen Baturaja Shares to SIG

JAKARTA – The Government of Indonesia officially inbreng shares by transferring the shares of the Republic of Indonesia (“Negara RI”) in the amount of 7,499,999,999 Series B shares with a total value of IDR 2,848,672,369,646 or representing 75.51% of the entire issued and fully paid capital in Semen Baturaja into SIG shares, as a continuation of the Cement Sub Cluster SOE Integration Program through the Pre-emptive Rights (HMETD) process.

The signing of the Inbreng Deed was carried out by the Deputy Minister of BUMN II, Kartika Wirjoatmodjo and the Main Director of SIG, Donny Arsal, at the Office of the Ministry of BUMN, Jakarta, Monday (19/12/2022). This share inbreng transaction does not change the portion of ownership by the Republic of Indonesia on controlling shares in SIG. The Republic of Indonesia also still owns 1 Series A Dwiwarna share in Semen Baturaja.

The Main Director of SIG, Donny Arsal said, the integration of Semen Baturaja into SIG is a big step to strengthen the position of the SOE Cement Sub Cluster in facing competitive market challenges. Until now, SIG has been proven to be able to create value from the synergy of various entities within the group so that it becomes a competitive advantage in the competition in the cement industry.
“Semen Baturaja is a force in Southern Sumatra.
The integration of Semen Baturaja into SIG has enormous potential for synergy to support the position and complement the footprint of the Cement Sub-Cluster SOEs, especially in the Sumatra region which is the second largest domestic market, win fierce competition and provide maximum benefits for the community and the State, as well as solidify steps SIG to become a leading provider of building materials solutions in the region,” said Donny Arsal.

Meanwhile, Deputy Minister of BUMN II, Kartika Wirjoatmodjo said, today we completed one of the important milestones of the entire BUMN transformation plan for streamlining and clustering of the cement sub-cluster. As a strategic sector, we want to encourage SOEs in the Cement Sub Cluster as a driver of a sustainable cement industry through optimizing distribution, marketing and production efficiency that is coordinated regionally and nationally.

“Indonesia has the healthiest economic growth projection for 2023 in the range of 4.5-5%, where in the fourth quarter of this year people’s purchasing power is running quite fast. In 2023 it will also be a moment of realization of the development of IKN as an infrastructure and property catalyst, as well as contributing to economic recovery. We hope that within two to three years, the cement industry will soon recover through innovation, optimization and efficiency to overcome cost burdens, maintain cost structure and EBITDA consistency,” said Kartika Wirjoatmodjo.{}