Growing 6.3%, Semen Baturaja Books Profit of IDR 129.25 Billion in 2024

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BATURAJA – Amidst market conditions that are experiencing correction and oversupply pressure, PT Semen Baturaja Tbk (SMBR) as a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG) has managed to record positive performance in 2024.

SMBR Vice President of Corporate Secretary Hari Liandu said that in 2024, SMBR managed to record revenue of IDR 2.09 trillion or an increase of 2.5% compared to the previous year of IDR 2.04 trillion. Although the domestic market experienced a correction, SMBR was able to increase cement sales volume by 2.23 million tons or grow 3.4% compared to the previous year of 2.16 million tons.

Revenue was supported by sales to related parties of IDR 2.00 trillion. Then also obtained from sales to third parties of IDR 62.56 billion and followed by sales of non-cement business segments or product diversification worth IDR 18.88 billion. In addition, SMBR also managed to cut sales expenses by 19.5% to IDR161.3 billion from IDR200.4 billion compared to the previous year’s period. Likewise, general and administrative expenses fell 11.9% to IDR203.3 billion from IDR230.8 billion compared to the previous year’s period. Financial expenses also experienced a significant decrease of 20% to IDR78.85 billion from IDR98.60 billion compared to the previous year’s period.

“As a result, SMBR was able to pocket a current year profit of IDR129.25 billion, this figure increased by 6.3% compared to net profit in 2023 which was IDR121.57 billion,” said Hari.

“This achievement was driven by a cost leadership strategy through operational excellence, which includes improving equipment performance, optimizing the supply chain, and efficiency across all operational lines. In addition, we also continue to develop new sources of income and strengthen synergies with SIG as the parent company,” he said.

In addition to business performance growth, SMBR continues to strengthen its commitment to sustainability. SMBR recorded a significant achievement by successfully reducing carbon emissions to 561.5 kg CO2/Ton Cement Equivalent (Cem) from the previous 577.4 kg CO2/Ton Cem in 2023. This emission reduction was supported by an increase in the use of alternative fuels (Alternative Fuel & Raw Material/AFR), which reached 9,401 tons or grew 41% compared to 2023 which was 6,661 tons, as well as a decrease in the total clinker factor to 67.2% from the previous 68.6%.

Thanks to these efforts, SMBR succeeded in achieving the 2024 Green PROPER from the Ministry of Environment and Forestry (KLHK) of the Republic of Indonesia.

More than just an environmental achievement, SMBR’s success in reducing carbon emissions and increasing energy efficiency also brings financial benefits to the company. As a recipient of the Sustainability-Linked Loan (SLL) syndicated credit facility, SMBR received incentives in the form of a potential reduction in bank loan interest expenses. In this scheme, achieving sustainability targets, such as reducing carbon emissions and increasing the use of alternative energy, contributes to lowering credit interest rates, thereby helping the company’s financial cost efficiency.

“This reduction in carbon emissions cannot be separated from SMBR’s strategy in increasing the use of alternative fuels and reducing clinker factors, which contribute significantly to energy efficiency and reducing environmental impacts. This effort is in line with SMBR’s commitment to implementing ESG, where we continue to innovate in environmentally friendly technology and encourage the use of renewable energy to support the creation of a sustainable cement industry. In addition to environmental benefits, this strategy also has a positive impact on cost efficiency and strengthening SMBR’s financial structure,” said Hari.

Hari added that currently, SMBR is planning to build a precision interlock brick production facility as part of the green cement innovation. This step is the company’s effort to present environmentally friendly products to support sustainable infrastructure development.

“With continued growth in performance and an adaptive business strategy, SMBR is optimistic that it can continue to create added value for shareholders and contribute to the national cement industry in a sustainable manner,” he concluded. (*)

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Semen Baturaja Spreads Ramadan Kindness, Distributes Aid to Orphans, TPA, and Mosques Around the Company

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BATURAJA – Ramadan is a special moment to share and spread happiness. PT Semen Baturaja Tbk (SMBR) as a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG), continues to show its commitment to supporting the surrounding community by distributing aid to orphans, Al-Quran Education Parks (TPA), and mosques in the company’s operational area in Baturaja, Ogan Komering Ulu Regency (OKU), South Sumatra.

As part of the Social and Environmental Responsibility (TJSL) program, SMBR distributed 100 school equipment packages for orphans in three orphanages, namely Mustika Orphanage, An Nur Muhammadiyah Orphanage, and Ashifa Orphanage. The aid consisted of school bags, notebooks, pens, pencils, colored crayons, erasers, and pencil sharpeners. The aid was handed over on Friday (21/3) to the management of the local orphanage and was enthusiastically welcomed by the beneficiary children.

In addition, SMBR also distributed aid in the form of 46 rehal, 46 Al-Quran mushaf, and 230 Iqra books to 31 TPA ​​and 16 mosques in the area around the company. This aid aims to support religious education and improve community worship facilities.

Senior Manager of Corporate Social Responsibility SMBR, Kristan Teguh, said that this activity is a form of the company’s concern for the surrounding community and SMBR’s commitment to providing sustainable benefits.

“We hope that this aid can provide new enthusiasm for orphans in pursuing education and support religious learning for students at TPA and mosque congregations. Ramadan is a moment full of blessings, and we want to share happiness by providing support to those in need,” said Kristan.

The distribution of this aid is also in line with the Asta Cita program of the Prabowo-Gibran government, especially the eighth point which emphasizes the importance of balance between the environment, culture, and religious life in realizing a just and prosperous society.

One of the aid recipients, Halisa Armita from the An Nur Muhammadiyah Orphanage, expressed her happiness at receiving new school equipment. “Thank you Semen Baturaja, I am happy to get a new bag and books. So I am more enthusiastic about studying to achieve my dreams,” she said enthusiastically.

Meanwhile, Sandra Yulita, administrator of the Nurul Falah Sukajadi Mosque, expressed her appreciation for the assistance provided. “This is a very positive initiative, especially in this blessed month. Hopefully, this kind of concern will continue and more parties will be moved to share in this holy month,” she said.

SMBR is committed to continuing to spread benefits to the community through various sustainable social programs, in line with the company’s values ​​in building harmonious relationships with the surrounding environment. Hopefully, this spirit of sharing will bring blessings to all parties involved. (*)

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Sharing Blessings in the Month of Ramadan, Semen Baturaja Distributes Hundreds of Takjil in 27 OKU Mosques

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BATURAJA – In the spirit of sharing in the holy month of Ramadan 1446 H, PT Semen Baturaja Tbk (SMBR) as a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG), held a ‘Sharing Takjil’ activity for 27 mosques in the Baturaja area, Ogan Komering Ulu Regency (OKU), South Sumatra. This activity took place from March 3-21, 2025 and collaborated with the SMBR Sports and Arts Development Agency (Baporkes).

A total of 100 portions of free takjil were distributed to each mosque to help the congregation break their fast. In addition, SMBR also distributed takjil to drivers and the community around the company’s operational area. The distribution was carried out at several strategic points, such as main road intersections and areas around the factory.

Senior Manager of Corporate Social Responsibility SMBR Kristan Teguh emphasized that this takjil sharing program is a form of the company’s commitment to supporting the community and strengthening existing relationships. “Ramadan is a month full of blessings, and SMBR wants to share happiness with the surrounding community. We hope that this initiative can provide real benefits for the congregation and drivers who are fasting,” said Teguh.

Not only that, this activity involved direct participation from SMBR employees who voluntarily went directly to the streets and mosques to distribute takjil. The Baturaja community welcomed it enthusiastically, as evidenced by the positive response given.

One of the residents, Agus expressed his gratitude. “This takjil is very helpful, especially for us who are still on the road when the Maghrib call to prayer sounds,” he said. The same thing was also conveyed by Herman, the Administrator of the Ajrul Amilin Mosque in Laya Village, who appreciated SMBR’s concern for the congregation during the month of Ramadan. He hopes that this activity can continue in the years to come.

Through this program, SMBR continues to strive to provide a positive impact on the surrounding community as part of the Corporate Social Responsibility Program (TJSL). This takjil sharing activity is one of the real forms of SMBR’s concern for the surrounding environment. (*)

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Evidence of Implementation of Excellent Governance, Semen Baturaja Wins ‘Very Good’ ACGS 2024 Predicate

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BATURAJA – PT Semen Baturaja Tbk (SMBR) as a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG) has again recorded positive achievements in the implementation of Good Corporate Governance (GCG), where since 2023 the Corporate Governance Assessment of SMBR has been based on ASEAN standards, namely the ASEAN Corporate Governance Scorecard (ACGS).

Based on the results of the 2024 ACGS assessment, SMBR scored 92.84 points with the predicate “Very Good” (Level 4). This achievement has increased significantly compared to 2023, where SMBR scored 88.51 points with the predicate “Good” (Level 3). The 2024 assessment has used the 2023 version of the assessment standard, while the previous assessment still referred to the 2017 version.

The results of this assessment show a significant increase compared to the previous year. The assessment was conducted by the Indonesian Institute for Corporate Directorship (IICD), which measures various aspects of corporate governance based on international standards. This achievement indicates that SMBR’s corporate governance implementation has complied with all international requirements in accordance with the ACGS standards.

Referring to the assessment results at ACGS 2023 as a comparison, the total score obtained by SMBR is above the average score for issuers or public companies (Tbk) included in the Big Cap category (100 companies with the largest market capitalization on the stock exchange) which is worth 82.94.

SMBR Vice President of Corporate Secretary Hari Liandu expressed his pride in this achievement. “Achieving the “Very Good” predicate is real evidence of SMBR’s commitment to implementing the principles of Good Corporate Governance, especially in the aspects of sustainability and Risk Management. Our score is also above the average of other issuers in the Big Cap category, which shows SMBR’s competitiveness and commitment to maintaining superior corporate governance standards. We will continue to improve Good Corporate Governance practices so that they are in line with international standards and provide added value to all stakeholders,” said Hari.

The current ACGS assessment covers a variety of material topics, including Environmental, Social, and Governance (ESG) aspects, climate change issues, and management of climate-related risks and opportunities. In addition, the assessment also considers stakeholder engagement, the effectiveness of ESG-related communication channels, the supervisory role of the Board of Directors and Board of Commissioners in sustainability, and the existence of a special management unit responsible for sustainability aspects at SMBR. The quality of the company’s sustainability report is also one of the aspects assessed in this assessment.

With this achievement, SMBR has further strengthened its position as a company committed to good corporate governance and responsible sustainability practices. Going forward, SMBR will continue to innovate and improve the implementation of Good Corporate Governance for all activities at SMBR to ensure sustainable business growth and provide long-term benefits for all stakeholders. (*)

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Semen Baturaja Encourages New Renewable Energy Transition Through Utilization of AFR

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BATURAJA – PT Semen Baturaja Tbk (SMBR) as a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG) continues to demonstrate its commitment to supporting the transition to New and Renewable Energy (EBT) through the utilization of Alternative Fuel & Raw Material (AFR).

Alternative fuels and raw materials utilized by SMBR include sludge oil, spent bleaching earth, used oil, used majun, used diapers, and used insulation. “Utilization of this material not only contributes to reducing industrial waste and environmental impacts, but also increases energy efficiency in the cement production process,” said SMBR Vice President of Corporate Secretary Hari Liandu.

Throughout 2024, SMBR managed to utilize 9,401 tons of AFR, an increase of 41% compared to 2023 which reached 6,661 tons. With this effort, SMBR has succeeded in increasing the Thermal Substitution Rate (TSR) value to 3.18%, exceeding the company’s target of 2.63%. This achievement confirms SMBR’s commitment to reducing dependence on fossil fuels while supporting the decarbonization target of the cement industry in Indonesia.

“We continue to develop innovations in the use of alternative fuels to reduce carbon emissions and support the national energy transition program,” he added.

SMBR’s steps in utilizing AFR are in line with government policies in accelerating the energy transition and supporting the achievement of Net Zero Emission (NZE) by 2060, and in line with the Sustainable Development Goals (SDGs), especially in terms of clean and affordable energy, responsible consumption and production, and action on climate change.

In addition, this effort is also part of the company’s strategy in reducing dependence on fossil fuels while accelerating the use of more environmentally friendly energy.

“The transition to clean energy is not only an industrial need, but also a shared responsibility in preserving the environment,” he added.

In the future, SMBR will also utilize biomass as an alternative energy source. One of the initiatives is planting red calliandra trees which will later be managed into wood pellets as a source of green energy for the cement industry. “Currently, the company has planted 1,500 red calliandra trees as an initial step in implementing green energy,” Hari concluded. (*)

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