PALEMBANG – The Company of Semen Baturaja (SMBR) has recently started prime shipping its cement products to Pontianak. The product was transported from Boom Baru port on Palembang, to Pontianak on Wednesday, 10 June 2020. The Director of SMBR Marketing, Dede Pasarade, explained that the delivering of the product to Pontianak is a continuity from the market trial that has been done since 2019 then. A total of 750 tons of cement was transported in the prime shipping. Dede also explained that during this month of July, there will be two shipping with a capacity total of 2750 ton. “Should the prime shipping went well, SMBR is ready for a long-term contract with local distributor,” he said.

The primes shipping was done by collaborating with the Tanjung Priok harbor officials, which is a subsidiary company of Pelindo II, whose role is a loading and unloading services company that is appointed by SMBR for its handling service. Dede mentioned that SMBR’s expansion into the cement market in Pontianak was one of the company’s strategic steps to improve the utilization of their existing plants. Furthermore, he added, the company perceived that the cement market in Kalimantan (Pontianak in particular) to be still very prospective for development, regardless of the national cement industry oversupply. “We are confident that our company will be able to attain 5% of the market’s segment in Pontianak for the entirety of 2020”, he said.

Dede further explained that other than the focus on cement sales in South Sumatra market, SMBR will also continue to try expanding its market in the future despite the oversupply condition of the national cement industry and the negative inclination of its growth due to the impact of Covid-19 pandemic. “With the addition of SMBR cement product in Pontianak, we wanted to prove that SMBR is capable of expanding its territory outside of Sumatra,” he said again. Other than Pontianak, SMBR has also prepared several new potential market places outside of Sumatra that are ready to be worked on to reach the company’s target in 2020. “Even right now, we are already looking into possibility in cement exporting and clinker bricks,” he lastly added.

BATURAJA – The Coronavirus (Covid-19) pandemic has spread in more than 282 cities in Indonesia. This number keeps on increasing, despite the lowering curve on positive cases and the increase of cases of recovering from Covid-19. As per 26 April 2020, it has been listed that there are 129 positive cases of Covid-19 in the province of South Sumatra spread in different regions of the province.

In the attempt to prevent the Covid-19 infection, PT Semen Baturaja (SMBR) has distributed a number of relief supports in the form of medical equipment to the Task Force for Handling Covid-19 Disaster of Ogan, Komering, Ulu (OKU) Region on Monday, 27 April. The relief support was directly given by the Vice President Operation I of Semen Baturaja, Eko David Irawan, to the Head of OKU region, Kuryana Aziz, on the latter’s house.

Semen Baturaja, who has been appointed as the coordinator of the Task Force for Covid-19 Disaster of OKU, has distributed relief in the form of 100 pieces of medical protective equipment, 2500 pieces of medical face masks, 10.000 pieces of handscoon, 100 liter of hand sanitizer, and 1000 pieces of cloth face masks, “We, alongside all of the State-Owned Business Enterprises in South Sumatra, are working together with each other and gave our full support especially to the government in their many efforts to prevent the spread of Coronavirus, mainly in the OKU region,” said Eko David Irawan.

Other than the company’s CSR, the medical equipment donations also came from the Semen Baturaja Employee Union and Bayt al-Mal of Semen Baturaja Employee. “It is a form of consideration from the employees of Semen Baturaja who have donated in order to help preventing the spread of Covid-19,” he added. Going further, Eko David hoped that the donated relief support to be immediately distributed, especially for medical workers or people of OKU region.

Previously, Semen Baturaja along with other 46 State-Owned Business Enterprises had provided relief support to help manage Covid-19 in the form of medical equipments to the government of South Sumatra province. Other than the donation, Semen Baturaja has also directly contributed to the preventive measure against Covid-19 through disinfectant spraying on several public areas in OKU region back then on 26 March. “We even deployed teams from Semen Baturaja to help doing tracing and spraying disinfectant on the houses of both people and patients under Covid-19 surveillance in OKU region,” as Eko David mentioned.

Applying the Various Preventive Measures in Accordance with the Protocol Standard set by the Central Government

PALEMBANG – The current spreading of Coronaviruse Disease 2019 (Covid-19) has worsened. As of 5 April 2020, a number of 2273 positive infection case has been listed in Indonesia. Currently, there are at least 44 patients under surveillance that are undergoing treatment with 16 of them declared infected in South Sumatra. The government continues to warn its people to always be cautious with Covid-19 transmission by reducing group activities and maintaining cleanliness and health. In the attempt to hasten the handling of Covid-19, the government has also set up a large-scale social distancing measure.

PT Semen Baturaja (SMBR) is one of the State-Owned Business Enterprises operating on South Sumatra which has had taken several measures to prevent the spread of Covid-19 as per the protocol standard set by the Central Government, such as:

  1. Organizing socialization to educate about the transmission and prevention of Covid-19 to employees of SMBR that were being directly taught by the Boards of Direction and Management and the Management of Siloam Sriwijaya Hospital who collaborated with SMBR.
  2. Organizing another Covid-19 handling socialization to employees of SMBR and external party through various contents in social media, banner, poster, and flyer scattered around the work area of SMBR.
  3. Publishing the SOP of vigilance in treating Covid-19 infection for employees of SMBR and their family.
  4. Mandating the body temperature measuring and sterilization within the sterilization chamber for employees and guests entering the area inside the office and plant of SMBR.
  5. Providing necessities that help to maintain cleanliness and health in company’s environment such as hand sanitizer for every employee while also placing it in public area, distributing face mask, and forming Hotline Centre along with unit rooms for medical purpose in each site for employees who need treatment.
  6. Sterilization of work area by periodic disinfectant spraying.
  7. Applying the Work From Home (WFH) policy for employees whose age are over 50 years old and mothers with pregnancy. Those who are included in the WFH category are perceived to be more vulnerable to Covid-19 compared.
  8. Applying the Physical Distancing policy on all work activities by restricting activities that require the gathering of mass of people, such as ceremony, morning exercise, and meetings, to only include up to ten people at maximum.
  9. Optimizing the usage of Video Conference as a mean of communication and coordination meeting between site in order to minimize the need of work trip,
  10. Limiting the number of external party or guest visiting SMBR.
  11. The accepting and distributing of document or letter work will be required to be in the form of softcopy and sent through email.

SMBR is also part of and playing an active role within the Task Force of Covid-19 Handling both in the province of South Sumatra and the Ministry of State-Owned Business Enterprise. SMBR also supports the government in managing the spreading of Covid-19 to prevent it from proliferating any further.

As an example, SMBR together with the Regional Government of OKU have done disinfectant spraying on many public areas in OKU region starting from 26 March then. “Other than that, we are also currently have coordinated with the other State-Owned Business Enterprises in supplying the numerous necessities like protective equipment for medical workers, face masks and hand sanitizers for people who need it,” as stated.

The steps and policies that have been utilized by the company under the preventive measure of Covid-19 were done with the aim to ensure the well being of every employee, and protecting them from the risk of COvid-19 infection while also allow them to still work safely and comfortably. “We are predicting that there would be a 20% decrease in cement sale throughout Semester I-2020 due to Covid-19,” as noted.

It’s noticeable on February where the sales number of SMBR has been reconciliated by 14% in conjunction with the 12% reconciliation of the cement demand in South Sumatra. Even so, companies remain confident that there would be growth in sales during the entirety of 2020 through reinforcement in the growth of property and infrastructure sectors that has become the main sector of cement manufacturing.

In the attempt to alleviate the decrease of demand for cement that is being exacerbated by Covid-19 pandemic, SMBR has prepared several strategies to push for its productivity in 2020, such as: the diversification of underlying cement product, doing cost efficiency in several product lineups, and also by applying marketing strategies focusing on the sale of cement in SMBR-based markets.

SMBR is also hoping for a growth on cement demand within the retail sector in relation with the potential stimulus or incentive from housing provided by government, in following what had once been stated by the minister of Ministry of Public Works and Public Housing of Republic of Indonesia, Basuki Hadimuljono. In addition, it is also hoped that the first phase of village fund distribution on May could further push the sales number of SMBR cement.

PALEMBANG – PT Semen Baturaja (Persero) Tbk (SMBR) still continues to make positive performance at the beginning of 2019. It can be seen from the revenue performance up to February 2019 which reached Rp266.54 billion or grew 2% from the same period in the previous year. The President Director of SMBR, Jobi Triananda Hasjim stated that the largest portion of the increase in SMBR’s income was supported by the retail segment which had grown by 14% in February.

Jobi added, in February 2019 the demand in the SMBR marketing area dropped by 14.3%. But SMBR is still able to increase its market share by 2% in the marketing area of ​​SMBR. “Of course, the highest portion is 61% for the South Sumatra region as the main market,” continued Jobi.

Jobi also revealed that SMBR will continue to work on developing the market and the company’s performance earlier this year. “One of them is by boosting the retail sector which is projected to grow significantly as a domino effect with the completion of various infrastructure projects.” Close Jobi.

Digitizing Business Processes Working together with PT Telkom Indonesia.

Baturaja – On the second day of 2019, PT Semen Baturaja (Persero) Tbk (SMBR) began implementing a leading Enterprise Resource Planning (ERP) system based on System Application and Product In Data Processing (SAP).

This was stated by the President Director of SMBR, Jobi Triananda Hasjim in Baturaja, Wednesday, January 2, 2019. Jobi said that the system used by the State-Owned Enterprises (BUMN) he led was also widely applied by leading companies in the world.

“So it’s not excessive if I say SMBR is ready to face the industrial revolution 4.0 and towards world-class companies,” he said.

Jobi said the SAP-based ERP implementation project at SMBR was called GADING Project, which stands for Great Achievement, Absolute Team Work & Respect, Do your Best, Integration All, Never Give Up, Go Success. SAP-based ERP is implemented in order to make data / information management becomes more integrated and organized.

For this reason, Jobi added that SMBR cooperated with PT Telkom Indonesia as one of the forms of Synergy between State-Owned Enterprises (BUMN) in implementing SAP-based ERP systems at SMBR.

“The kick off of the project itself was held on February 12, 2018, and this project became one of the projects on schedule because it was successfully completed in just 10 (ten) months” he said

According to Jobi, previously SMBR had also implemented an ERP system which was also quite widely used by large companies.

However, Jobi said that after doing more in-depth research, the BUMN he led needed an ERP system that was able to integrate increasingly complex corporate business processes.

“So it needs to be handled with the help of information technology (IT) that is more adequate, integrated and up-to-date,” he said.

Therefore, according to Jobi, the management of SMBR finally decided to find a new solution that could integrate business processes from upstream to downstream. Jobi asserted if management wanted to have an information system that could be used to support operational, tactical and even strategic aspects.

Jobi added that the system must also be able to create convenience, speed and comfort for the business chain in the company’s environment. Both suppliers, customers, work units within the SMBR environment, and other stakeholders.

“For this reason, SAP-based ERP is chosen which is considered capable of accommodating those needs,” he said.

Jobi assessed that SAP-based ERP is a world-class application system that has a “best practice” business process standard that can be adopted. So in the future, SMBR become a company that can compete in global business. Also, SAP based ERP according to Jobi has good governance.

“At the same time meeting the company’s compliance standards,” he said

Currently, several SAP modules that have been implemented include Finance, Controlling, Fund Management, Budget Planning & Consolidation (Planning), Sales & Distribution, Material Management, Production Planning & Quality Management, Plant Maintenance, Human Capital Management (Payroll). {}.

PALEMBANG – PT Semen Baturaja (Persero) Tbk in January 2019 recorded revenue of Rp.150.2 billion or grew by 6% compared to the same period last year of Rp.141.8 billion. although the company’s cement sales volume fell slightly by 1% from the previous year.

President Director of SMBR, Jobi Triananda Hasjim said that the correction of cement sales volume was due to slowing cement demand in early 2019. Based on data from the Indonesian Cement Association (ASI) in January 2019, national cement demand fell by 1.3% compared to the same period in 2018.

Similarly, cement demand in Sumatra also fell by 2.7% from the previous year. This is influenced by conditions of relatively high rainfall and the number of infrastructure development projects that have not started at the beginning of the year.

Meanwhile, regarding the investment plan of SMBR, at a meeting with the Sarolangun District Government which was held on Monday (25/02), the Regent of Sarolangun, Jambi, H Cek Endra issued a location permit for the construction of the Semen Baturaja Factory which was submitted directly to the Director of SMBR, Jobi Triananda Hasjim as regional government support for the acceleration of the red plate cement producer project.

Jobi added that with the issuance of the location construction permit the plant greatly helped the progress of the acceleration of the construction of the plant in Sarolangun District which was one of the strategic projects in Jambi Province.

The construction of the SMBR factory in Sarolangun will have a broad impact on improving the economy of the community, increasing regional income and coupled with an increase in employment and supporting cement requirements for government and private infrastructure projects.

During 2018, SMBR recorded sales volume of 2,178,188 tons or grew by 24% compared to the same period last year of 1,762,137 tons. The Director of SMBR, Jobi Triananda Hasjim said that the growth of SMBR’s sales volume was far above the industry which only grew by around 5% this year. “SMBR’s sales volume growth this year is one of the highest in the industry,” said Jobi, (Monday 7/1).

In December 2018, cement sales volume of SMBR was recorded at 220,737 tons, up 22% compared to December last year, until the last 12 months the sales volume of SMBR was able to grow double digit.

Based on data from the Indonesian Cement Association (ASI), as of November 2018, SMBR’s market share has increased throughout the Company’s marketing areas and is still the leader in market share in South Sumatra and Lampung with 54% and 26% respectively. In other marketing areas, there is also an increase in market share, such as in Jambi which has reached 14%, Bengkulu at 8% and Bangka Belitung at 5%. “The growth in sales volume has exceeded demand growth in all of the Company’s marketing areas,” he explained

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.

Jakarta, 27 August 2018

SMBR has booked cement sales in July 2018 with a total of 189,701 tons or an increase of 82% compared to last year of 104,314 tons. National cement sales in July increased by 12% compared to last year due to July last year there was an Eid al-Fitr holiday so that the increase in July this year was a reflection of the normalization of sales from the previous month which was hampered by many holidays. In total sales in June and July this year, SMBR’s cement sales grew 43% to 293,176 tons compared to June and July sales of 204,335 tons while national cement sales (June and July 2018) only rose 3.16% to 9,666 .289 tons.

Cumulatively, until July 2018 SMBR’s cement sales reached 1,058,231 tons or grew 36% on an annual basis. The Company’s market share has increased in all marketing areas such as in South Sumatra by 53.3% from the previous 48.9%. In Lampung, the Company has become the market leader for the first time in the last five years with a market share of 24.4% while market share in Jambi has doubled to 12.1% compared to last year of 6.9%. In Bengkulu, There was also a market share increased to 6.1% from the previous 4.5%. Since the end of 2017, SMBR has also entered a new marketing area in Bangka Belitung and currently the market share has reached 5.6%. “The growth of SMBR sales volume up to July 2018 (36%) is the best among other listed cement company” said Rahmad Pribadi, President Director of the Company. The growth of SMBR’s sales volume will continue to go hand in hand with the increasing number of truck fleets and additional cement shipping quota by train with the opening of the Baturaja-Panjang route to support sales in Lampung province in the second semester of this year.

First Semester Performance 2018

In the first six months of this 2018, SMBR has managed to record revenues of Rp.783.5 billion, a 25% growth compared to last year’s Rp.627.4 billion. In the midst of increasing coal price conditions, the Company was able to perform efficiency through the cost leadership initiative program such as reducing the clinker factor and optimizing the energy efficient Baturaja II Plant which made COGS / ton cement of the Company fell 6% compared to last year.

The efficiency of the Company in the first semester of this year has an impact on the improvement in profit margins and being the highest in the industry. The Company’s gross profit grew 25.2% to Rp.237.5 billion with Gross Profit Margin of 30.3% while the average GPM industry was 28.3%. In EBITDA, the Company posted an increase of 38.4% to Rp. 173.9 billion with EBITDA Margin of 22.2% while the industry’s EBITDA Margin average was 16.6%.

SMBR currently has a cement production capacity of 3.85 million tons / year after the operation of the Baturaja II Plant which has a cement production capacity of 1.85 million tons / year in September last year. With the new plant, the Company targets to continue to increase sales volume to increase plant utilization which is targeted to reach 60-65% of the Company’s total cement production capacity this year.