JAKARTA – The Company of Semen Baturaja has just organized the Annual General Meeting of Stakeholders of 2020 in Wisma Antara, Central Jakarta, on Thursday, 27 May 2021.

The stakeholders were attending the gathering either in person or virtually due to the health protocol restricting the amount of participants allowed in the event. Lead by the Main Commissioner of Semen Baturaja himself, Franky Sibarani, the gathering event proceeded well from start until end.

During this gathering, the stakeholders have firmly established agreements to 8 segments of the event, some of which included the agreement of annual report and audited financial statement of Semen Baturaja for year 2020; including the ratification of financial report of partnership and community development program of 2020 and also the changes included in its article of association.

The gathering has also issued a change in the company’s management structure. This change was proposed by the A-series Dwiwarna stakeholder with the agreement in accordance to the future needs of the company. Semen Baturaja has expressed deep gratitude and appreciation over the contribution of its management team in maintaining the financial and operational performance of Semen Baturaja.

Changes were made in the structure of the company’s management with the advent of Independent Commissioner of Semen Baturaja, Chowadja Sanova. Henceforth, the new structure for the company’s management team decreed by the Annual Stakeholder Gathering is comprised as follows:

Main Commissioner : Franky Sibarani
Commissioner : Oke Nurwan
Independent Commissioner : Darusman Mawardi
Independent Commissioner : Endang Tirtana
Independent Commissioner : Chowadja Sanova
Main Director : Jobi Triananda Hasjim
Director of Production and Development : Daconi
Director of Financial and Management Risk : M. Jamil
General and Human Resources Director : Amrullah
Marketing Director : Mukhamad Saifudin

The gathering has also decided agreement on a report concerning Semen Baturaja’s work performance during 2020. The report stated by the company’s Main Director, Jobi Triananda Hasjim, listed that the company was able to hold a positive performance record by maximizing revenue achieving 1,72 trillion rupiah while also improving EBITDA into 416,4 billion rupiah; a 2% increase when compared to 2019.

“This positive performance is the result from several strategic initiatives done by the management team in pushing the effort of increasing revenue. Through cost and business efficiency, fixing distribution system and organizing distributors, it was made possible to significantly hold back the cost of goods sold’, as stated by the Main Director.

The company managed to push the effort in raising income with a sales record of cement numbering 1,93 million ton and other non-cement products sales such as white clay, mortar, porous concrete, and various others. The highest sold product is still withheld by cement sacks distributed around the marketing areas of Semen Baturaja.

The same strategic initiative is being adopted again by the company in 2021, and it managed to make record in the raise of income during first quarter of 2021 numbering 20% yoy and gaining 394 billion rupiah. The continuation of cost efficiency has also managed to lower the cost of goods sold by 21% in comparison to the same period during 2020 until first quarter of 2021, with a positive net income of 17,9 billion rupiah.

As one of the State-owned Business Enterprises in Sumatra, Semen Baturaja was able to maintain its sales growth in order to fulfill demand in South Sumatra, Jambi, Lampung, Bengkulu, and Bangka Belitung. The region of Sumatra has a positive cement growth in part due to amount of demand helping in improving sales volume during the first quarter of 2021 by 22% into 452.931 ton.

There were various strategies implemented to improve the company’s performance, such as: the policy of product quality adjusting with the consumers’ needs, the policy of supply continuity exemplified by the readiness of logistics squads, to buffer stock in strategic sales regions, and also selling derivative products, such as white clay, mortar, porous concrete, and others.

The company is confident that it will be able to reach sales target in 2021 due to the increase in state revenue budget of 2021 for infrastructure by 47,3% becoming 414 trillion and the growth of national economy that is estimated to rise by 4-5%.

“The government has started to work on its strategic projects and Semen Baturaja has also participated within its projects that provide them the opportunity to boost sales volume and handling over supply of cement”, Jobi added.

The Annual Gathering of Stakeholders has also agreed upon some proposals of which includes the arrangement of performance incentive for the Commissioner Board and Directors for fiscal year of 2020 and earnings of Commissioner Board and Directors for fiscal year of 2021. Next is the appointment of public accountant office to audit consolidated financial report and the financial report of partnership and community development of the company’s fiscal year of 2021 within the scope of work that includes the company’s performance evaluation report, performance indicator evaluation report, and intern handling and law adherence reports.

Also included are confirming the implementation of 5 (five) ministry regulations of State-owned Business Enterprise (Badan Usaha Milik Negara in Indonesian, or BUMN) involving the management contract and annual management contract of Directors of BUMN, the ministry regulation of BUMN concerning the procedures for proposal, reporting, observance, and change in utilization of state capital inclusion addition to BUMN and limited company, the ministry regulation of BUMN relating to procedures of writing-off and transfer of fixed assets of BUMN, the ministry regulation about the Social and Community Responsibility of BUMN program, and lastly the ministry regulation pertaining to partnership procedure of BUMN.{}

PALEMBANG – The Company of Semen Baturaja is supplying the strategic projects in South Sumatra. One of which includes becoming supplier for the strategic project of Sumsel 8 Steam Based Electricity Generator construction in Muara Enim, South Sumatra.

The construction of the Generator has been supplied by Semen Baturaja with the estimated cost of 130.000 ton cement. The project that has been started since 2019 is predicted to finish in 2021. The Sumsel 8 Generator project will have become one of the Steam Based Electricity Generator in South Sumatra with the capacity of 2×620 megawatt (MW).

Aside of that, Semen Baturaja has also fulfilled the cement needs for the construction of toll road of Ruas Indralaya – Prabumulih; an extension of the Palembang – Indralaya toll road. The toll road project with the length of 64,7 km serves as an extension to the main Trans Sumatra Toll, which covers Indralaya – Muara Enim with 119 kilometer. The project is estimated to end on upcoming 2022.

In 2021, the Government has raised its Infrastructural state revenue budget from pushing strategic projects which got delayed in 2020 due to Covid-19 pandemic. Budget numbering 417,4 trillion rupiah was allocated for infrastructure sector in order to continue its development through the strengthening of digital infrastructure and push for logistics and connectivity efficiency.

The government of South Sumatra province ensured that in 2021 they will be focusing in building irrigation system and other supporting infrastructures. The budget will be directed towards labor-intensive work that supports the Industrial and Tourism sector.

The Indonesia Cement Association has stated that infrastructural construction works and strategic projects within the field of property have started during the end of first quarter of 2021. The consumption of cement has risen in almost all regions. South Sumatra is noted to have the highest increase of 20,2 % yoy in March 2021.

“This has turned out to be a positive growth for the cement industry. Semen Baturaja has also contributed in government’s project to bolster infrastructural goals in the region of South Sumatra”, said by the Marketing Director, Mukhamad Saifudin.

The beginning of 2021 has given opportunity for the company to improve sales volume after having faced many challenges in 2020. Semen Baturaja has also involved itself within strategic projects, such as: the construction of Supply of Ready Mixed Concrete from Oki Pulp & Paper Mill, construction of Water Based Electricity Generator in Kerinci with capacity of 350 MW, and construction project of Microhydro Based Electricity Generator in Lebong.

Not only that, Semen Baturaja has also provided supplies in various private strategic projects in regions of Bandar Lampung, Jambi, South Lampung city, Lubuklinggau and its surrounding area. Some of the projects include the construction of Regional Hospital of Sekayu, electricity-related construction projects, concrete train railing project in Musi, roads and bridges preservation, and many more private projects in South Sumatra.

To commemorate the rise of activities in the strategic projects of South Sumatra, the company also did revitalization of Baturaja Plant I, improvement of quality control, preparing squads that will help push distribution and other supporting facilities in order to support product availability with guaranteed quality and supply continuity for consumers.

Other than that, the company has also continuously implemented efficiency in production and fixed and variable cost to improve the competitive quality of Semen Baturaja.

“We are confident that we are able reach our target in 2021 through the cooperation and synergy between government, society, and especially creative State-owned Enterprises to push for infrastructure development in Indonesia”, he lastly added.{}

PALEMBANG – The Company of Semen Baturaja has coordinated the sustainable implementation of Corporate Social Responsibility (CSR) program in the regions around their operational plants, South Sumatra, and Lampung as proof of its social commitment and contribution.

Throughout year 2020, Semen Baturaja has distributed fund for TJSL program amounting to 3,9 billion rupiah and a number of 6,7 billion rupiah was also distributed through the Partnership and Community Development Program with largest sum of portions went to programs supporting the improvement of healthcare, education, and training as well as distribution of Partnership Program Funding for Small and Medium Enterprises.

The realization of the program in 2020 has reached 47% compared to 2019. All of the company’s social responsibilities that have been done so far include: natural disaster relief, education and training, healthcare improvement, facilities and infrastructures, religious facilities and nature’s conservation, and also contributions for Small and Medium Enterprises. 

Semen Baturaja also took its own initiative to provide positive contributions towards society, such as the improvement of economic, social, and environmental aspect. It did so in accordance to the company’s CSR vision of becoming a flexible company that is capable of maintaining good relation with stakeholders and society while also shaping itself as a community-centric company which continuous social empowerment.

During the ongoing pandemic of Covid-19 in 2020, every sector of society and industry has been impacted by economic depression. Semen Baturaja has responded by distributing food supplies and medical equipments and tools for medics along with people affected by the Covid-19 so as to ease their burden caused by this pandemic.

Furthermore, Semen Baturaja also coordinated with the TJSL Forum of Palembang city to distribute medical tools for the Task Force for Covid-19 Handling Acceleration of Palembang. The donations consisted of 1.250 pieces of medical mask, 50 pieces of APD, 5000 handscoons, google glasses, hand sanitizers, cloth mask, and food supplies.

As a token of concern of the company towards the medical workers who have been working tirelessly in handling the spread of Covid-19 virus, Semen Baturaja has redistributed some more medical necessities to the task force responsible in handling Covid-19 pandemic in the region of Ogan Komering Ulu (OKU).

In appreciation of Semen Baturaja’s supportive attitude towards medical workers, the company has received the “Initiative Urgent Response to Covid-19” award from Iconomics CSR Award 2020 as a form of medical Healthcare support within the cement industry category in December 2020.{}

PALEMBANG – The Cement Association of Indonesia has stated that the construction work of infrastructure and other strategic projects under the field of property have started to be worked within the new normal trend, the growth of cement demand in 2021has also shown a trend in raise. During the first quarter of 2021, domestic demand has seen a growth of 2,2%. With a positive performance achievement in 2020, the morale of the company’s management is soaring high come 2021. This is evidently shown from the growth volume achieved by the company of 21,5% during the first quarter of the year in comparison with the same period of last year.

The company of Semen Baturaja has consistently attempted to elevate financial performance by enacting efficiency program, such as: the optimizing of low calorie coal use, utilization of plant waste as a raw material substitute, optimizing of Baturaja II plant operation and efficiency of business cost. Other than that, the fixing of sewage and distribution system and also the strengthening of marketing information system all will push to increase the company’s sales volume.

With the implementation of these strategic initiatives, the company is able to make improvement upon its financial performance during the first quarter of 2021 with a raise of 20% in revenue when compared to last year. The continuation of strategic initiative on cost efficiency has also allowed reduction of the cost of goods sold by 21%, in comparison with last year’s of the same period until quarter one of 2021. Lastly, the net profit of the company has reached a positive 17,9 billion rupiah. The state of quarter one of 2021 is a direct contrast compared to the first quarter of 2020 where the company had financial loss. On another note, the company’s net cash flow remained stable with a value of 86,4 billion rupiah.

“The region of Sumatra has a positive cement growth with continuously improving demand in each month. Semen Baturaja as a cement manufacturer in Sumatra will continue to put effort in maintaining its sales growth in order to fulfill demands in South Sumatra, Jambi, Lampung, Bengkulu, and Bangka Belitung”, as stated by Semen Baturaja’s Marketing Director, Mukhamad Saifudin.

The company is confident that they will be able to reach sales target in this year of 2021. With the addition of strategic projects and ongoing infrastructure projects, Semen Baturaja is ready to provide high-quality cement products for the better of this country.{}

PALEMBANG – Indonesia Cement Association (Asosiasi Semen Indonesian in Indonesian, or ASI) has projected that in 2021 the domestic cement consumption will increase around 7-8%. It is also estimated that the clinker and cement export will also rise by 10%. The primary reason is suspected to be due to 47,3% increase of state revenue budget in 2021 for infrastructure amounting to 414 trillion rupiah and the growth of domestic economy is estimated to increase by 4-5%.

The sales volume of domestic cement throughout 2020 is listed as 62,5 million ton. In reference to ASI data, this economic realization declined by 10,7% yoy and it’s noted to be the lowest growth within the last 10 years.

When Covid-19 virus had spread globally, including in Indonesia, the country’s economic performance had declined and so did its economic growth. Until the end of 2020, the Covid-19 pandemic had caused Indonesia’s economic growth to decline by -2,07%.

“There were a lot of government projects that got delayed due to Covid-19 pandemic. Even so, there are still ongoing projects such as the construction of Indralaya – Prabumilih toll road, the Muara Enim – Lubuklinggau – Bengkulu toll road, and other projects that are being worked on can affect the cement consumption in Sumatra region” as explained by the Main Director of Semen Baturaja, Jobi Triananda Hasjim.

Facing such pressing situation, the company of Semen Baturaja was still able to make positive performance record throughout the year of 2020. The company maintained it performance through various strategic initiatives, some of which are: efficiency of business and production costs, fixing distribution system and organizing distributor. The company has pushed further to improve revenue through white clay sales. As a result, Semen Baturaja was able to significantly suppress cost of goods sold while also maximizing income with the record of 1,72 trillion rupiah and also improving EBITDA into 216,4 billion rupiah; an increase of 2% compared to 2019.

Other than that, the company has had diligently managed its cash flow while also setting priority of capital expenditure so it can successfully recorded Cash From Operation (CFO) of 393 billion rupiah at the end of 2020 and able EBITDA margin of 24%, far higher than the accomplishment in 2019 of 20%.

“Semen Baturaja is able to show its responsibility as a State-owned Business Enterprise by maximizing income amidst the middle of Covid-19 pandemic. We have a more optimistic view of year 2021 thanks to the acceleration effort to recover domestic economy which is hoped to be able to push for the infrastructural sector growth that will serve as the main sector of cement industry”, he lastly added.{}

PALEMBANG – The Company of Semen Baturaja has collaborated with the company of Huadian Bukit Asam Power (HBAP) in the utilization of Limestone, Gypsum, Fly Ash, and Bottom Ash. The signing of the Memorandum of Understanding was done by the Marketing Director of Semen Baturaja, Mukhamad Saifudin, and the Vice Director of Huadian Bukit Asam Power, Dody Arsadian, situated in the main branch office of Semen Baturaja Manufactory in Palembang on Tuesday, 16 March.

The signing of the memorandum between the State-owned Business Enterprise with the mutual company of China Huadian Hongkong Co Ltd (CHDHK) and Bukit Asam Tbk (PTBA) was done as one of the parties affiliated in the utilization of Gypsum, Fly Ash, and Bottom Ash as a potential product of the development of Mulut Tambang’s Steam-based Electricity Generator of South Sumatra-8 with the capacity of 2×600 MW in Muara Enim regency.

“This collaboration is a synergistic form of both companies to improve competitive quality that is crucially required in order to face the ever competitive industrial environment through the opportunity of creating new revenue stream or cost transformation. Semen Baturaja will make use of Fly Ash and Bottom Ash for cement production process generated by the South Sumatra-8 Steam Based Electricity Generator” as stated by Saifudin. The memorandum will last for two years starting from 2 March 2021 until 1 March 2023. During the partnership, Semen Baturaja will provide limestone to HBAP to be used as a necessary material for the Flue Gas Desulfurization (FGD) process.

“The company of Huadian Bukit Asam Power will also provide Gypsum required as a raw material for manufacturing process in Semen Baturaja. This cooperation is mutually beneficial for both parties, particularly in terms of maximizing the potential of both companies” he added.

Fly Ash and Bottom Ash can be properly processed during the production Portland cement naturally by improving its quality and durability. Ever since 2019, Semen Baturaja had already synergized with PUSRI in utilizing Fly Ash and Bottom Ash. Regarding the collaborative usage of Limestone, the company has stated that they will be ready to supply the Limestone demand of HBAP, citing that SMBR has the capability of producing Limestone qualifying the required standard of specification of HBAP’s processing operation.{}

LAMPUNG – The Faculty of Engineering of Lampung University (UNILA) has signed off Memorandum of Understanding (MoU) with the company of Semen Baturaja concerning collaborative research and development within the field of engineering in Lampung University on Thursday, 4 March. The Memorandum was signed by the Production and Development Director of Semen Baturaja, Daconi ST., MM., together with the Dean of Faculty of Engineering of Lamoung University, Prof. Drs. Ir. Suharno, Ph.D., IPU., ASEAN Eng. The event was also attended by the Vice Rector IV of Planning, Organizing, and Technology, Information, and Communication, Prof. Suharso, S.Si, Ph. D., Vice President of Research and Development of Semen Baturaja, M. Beni, along with the entire board of leaders of the University’s Engineering Faculty.

“This agreement is a form of synergy between Semen Baturaja and UNILA in working together to do research within cement industry in South Sumatra and its surrounding region” as stated by Daconi.

The research served as an evidence of Semen Baturaja’s commitment in improving the development of Human Resources. Amidst the current global competition, it is imperative to prepare and improve upon our Human Resources..

Daconi also taught public lecture about the introduction of cement industry and its development through zoom meeting webinar that was being participated by the students of UNILA and also other universities. The lessons presented consisted about the technology of cement manufacturing process, the role of engineering graduates within the cement industry, and various kinds of development for cement and its derivative products.

“Semen Baturaja is a local company situated in South Sumatra that will gladly provide support (for noble cause). Hopefully, through this collaboration, it will bring about positive benefits for both UNILA and Semen Baturaja”, Suharso added.

Semen Baturaja has attempted to mold and prepare competitive engineering graduates from UNILA and other universities in Lampung, doing collaborative researches and shaping a vision of expanding the cement industry of Indonesia towards global competition.{}

PALEMBANG – The Company of Semen Baturaja has settled their twelfth main and interest acquittal under the obligation of medium term notes (MTN) I amounting to 400 billion rupiah. The Financial Director of Semen Baturaja, M Jamil, noted that the payment has been completed on 23 February, 2021 with the recording date of 17 February 2021.

Previously during 16 February 2021, Semen Baturaja had acquired syndicate loan of 400 billion rupiah from Bank Mega, Bank Mega Syariah, and Bank Jawa Barat. This funding is what was being used to settle for the MTN I Semen Baturaja year 2018.

The payment of the debt security was settled earlier from its due date. Semen Baturaja had published the MTN on 2018 which amounts to 400 billion rupiah. Cooperating with Bank Negara Indonesia (BNI), also acting as the monitoring agent for the MTN publishing, Semen Baturaja had acquired a rather low annual interest of 9% for 3 years.

The performance of Semen Baturaja is regarded to be improving as with the development of the national economy. This is evidenced through their sales record of 1,93 Millions ton of cement and 34.000 ton of white clay during the entirety of 2020.

This January, Semen Baturaja has managed to achieve transactions record of 155.119 ton of cement, 2.265 ton of white clay, and 1,28 ton of mortar. Currently, the company is prepared to further develop its production and fulfill the cement demand in the market of South Sumatra and surrounding area.{}

LUBUK LINGGAU – PT Semen Baturaja (Persero) Tbk along with the government of Lubuk linggau signed the first construction of distribution center development and agreement of cooperation in the city of Lubuk Linggau (19/02).

This agreement of cooperation with the government is a follow-up to government desire in development of industrial and commercial regions in the Lubuk linggau city.

The agreement was signed by the Director of general affairs and Human resources of PT. Semen Baturaja (Persero) Tbk (Amrullah), and the Mayor of Lubuk linggau city (SN Prana Putra Sohe), and also attended by the Vice president of Marketing in PT. Semen Baturaja (Persero) Tbk (Tarida Tambunan), Vice president of Sales in PT. Semen Baturaja (Persero) Tbk (Kartha Kurniadi), and Head of Lubuk Linggau DPMPTPS (Hendra Gunawan).

Amrullah said. “Semen Baturaja be the initiation for the construction of the cement warehouse or we call Distribution center in the city of Lubuk Linggau. This is a support for the smooth supply of cement here.”

The construction of this Distribution center will be the first in Lubuk linggau. It will be a strategic point of the cement supply chainfor the western southern Sumatera region (Lubuk linggau, Muratara, etc.), Curup, Bengkulu and Sarolangun.

With the signing of the cooperation agreement, it began the development project of Distribution Center in Lubuklinggau City. Semen Baturaja hopes that through this construction, the cement supply in Lubuk linggau City will be well preserved.{}

JAKARTA – On Tuesday (16/02), PT Semen Baturaja (Persero) Tbk has return to signed the first amendment of credit agreement and line facility agreement for the fulfillment of syndicated credit at Graha BNI Building, Jakarta.

This signing is a step to fulfill the total syndicated credit for Semen Baturaja with a value of Rp 1.7 Trillion. Last week, Semen Baturaja together with Bank Sumsel Babel signed a credit facility worth Rp. 80 billion in order to meet tranche 1 syndicated credit with a total value of Rp 1.3 Trillion. As of today, some banking provides Semen Baturaja a credit facilities worth Rp 400 Billion.

“We have previously performed the signing syndicated of tranche 1 credit in August 2020 at Rp 1.22 trillion. On February 9, 2021, we also gained an additional Rp 80 billion and closed the 1 tranche with a total of Rp 1.3 trillion. “Says jobi triananda hasjim.

PT Bank Mega Tbk gave worth Rp 100 billion in credit, PT Bank Mega Syariah Rp 200 Billion and PT Bank Pembangunan Daerah Jawa Barat and Banten Tbk (BJB) add a credit worth Rp 100 Billion. Thus,  the three banks into the banking that fills the tranche 2 of the syndicated loan of this. PT Bank negara Indonesia (Persero) Tbk (BNI) as a mandated lead arranger (MLA) managed to give a full syndicated loan to the Semen Baturaja.

The agreement was signed by the Director of Semen Baturaja Jobi Triananda Hasjim, the Head of the Bank Mega Widjaja Hendra, the Head of the Business Bank Mega Syariah Denny S. Karim, and the Leader of the Division of Corporate & Commercial BJB Dicky Syahbandinata.

The event was also attended by President Commissioner of Semen Baturaja Franciscus M A Sibarani, Finance Director of Semen Baturaja M. Jamil, Division Leader of BNI Rudy Sihombing, Head of BSB Credit Division, Marketing Director of Bank Maluku Malut Jetty Likur, and President Director of Bengkulu Development Bank Agusalim.

The credit of the syndication will give a relaxation to the financial system of Semen Baturaja’s cash flow so that, it will be better prepared for the next company’s development.

‘We are grateful to the creditors who have cooperated so that the syndicated credit can be carried out. Semen Baturaja optimistic to increase sales in 2021 in line with the increase in demand of cement.’ He added.

The synergy between Semen Baturaja with BNI is proved that as State-Owned Enterprises should help each other to the progress of the company. Banking has been providing syndicated credit also gives confidence to the Semen Baturaja to develop their business.

Banking sees the prospects of the cement industry in the future will be increasingly improved with the increasing development project by the government. The hope is not only in the infrastructure industry but also in the entire economy in Indonesia will see growth so that the economy will grow and Indonesia will rise again.