At the time of its establishment on November 14, 1974, the Company was born under the name of PT Semen Baturaja (Persero) with 45% ownership by PT Semen Gresik and PT Semen Padang by 55%. Five years later, on November 9, 1979, the Company changed its status from Domestic Investment (PMDN) to Persero with 88 percent shares owned by the Government of Indonesia, PT Semen Padang at 7 percent and PT Semen Gresik at 5 percent. A few years later in 1991, the Company’s shares were fully taken over by the Government of the Republic of Indonesia. Furthermore, the Company continued to develop so that on March 14, 2013 PT Semen Baturaja (Persero) changed its status to become an open company and changed its name to PT Semen Baturaja (Persero) Tbk.
Development of Cement Products of the Company
The Company runs a business wheel specifically in the production of Terak with its production center located in Baturaja, South Sumatra. While the process of milling and cement bagging is carried out at Baturaja Factory, Palembang Plant and Long Factory which are then distributed to the marketing areas of the Company. The raw material of the Company’s cement products is limestone and clay obtained from the Company’s limestone and clay mining sites located approximately 1.2 km from the factory in Baturaja. Other supporting materials such as silica sand are obtained from partners around Baturaja area; iron sand obtained from partners in Lampung province; Gypsum is obtained from Petro Chemical Ginsik or import from Thailand; while the bag of cement is obtained from the producers of the finished bag sold domestically. In order to develop its business, the Company refined its existing equipment to achieve an installed capacity target of 50,000 tons of cement per year as well as an effort to increase installed capacity. To that end, PT Semen Baturaja (Persero) Tbk is implementing the Optimization Project I (OPT I). The project then began in 1992 and completed construction in 1994 with an installed capacity increasing to 550,000 tons of cement per year.
Furthermore, the Company followed up on OPT I project, by starting the Optimization II (OPT II) project in 1996 to increase its capacity to 1,250,000 tons of cement per year. Project OPT II was completed in 2001 and has been completed and actively producing until now. The Company is continuously working to expand its business which requires long-term investment financing and funding sources. As an application, the Company issues bonds I worth Rp200 billion in which the bond issuance is a continuation of the financial restructuring program to increase the Company’s profitability and liquidity. The Company then performed its obligations by repaying the first bond loan in June 2010. In its work to produce cement products, the Company continued to improve the quality of its products until it was able to reliably handle prestigious projects. In 2011, the Company was involved in the construction of the Cement Mill and Packer project with a capacity of 750,000 tons of cement per year which has been successfully commercially operated in July 2013. At that time, the Company’s capacity has increased to 2,000,000 tons of cement per year. The Company’s plan to continue expanding its business and adding funding sources for expansion continues to be pursued. Therefore, the Company conducted its Initial Public Offering (IPO) offering on June 28, 2013 with the release of 23.76% or 2,337,678,500 shares to the public. The fund is intended to finance the construction of the Baturaja II plant with a capacity of 1.85 million tons of cement per year. Today, the Company has expanded its main markets around South Sumatra and Lampung as well as Indonesia’s regions which are enjoying good and stable economic growth. The target of this marketing area is also a step up.
Sales as well as reach installed capacity. Meanwhile, to distribute each product, the Company uses distributors with networks spread throughout South Sumatera, Lampung, Jambi and Bengkulu. The presence of the Company in the midst of the community is believed to be able to provide benefits to the Central and Regional Government in the form of taxes and levies, as well as to shareholders through the distribution of dividends, dividends and to the surrounding community through the absorption of local labor, as well as in the form of partnership and community development for the community around the factory.
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(62) – 711 – 511261