Held AGMS, Semen Baturaja Distributes Dividend of 20.48 Percent of Net Profit in 2019

JAKARTA – PT Semen Baturaja (Persero) Tbk (SMBR) one of the state-owned companies in South Sumatra engaged in the cement industry has just held the Annual General Meeting of Shareholders (AGMS) for Fiscal Year 2019 at Sari Pacific Hotel Jakarta, August 5, 2020 led directly by the Company’s Independent Commissioner, Darusman Mawardi.

At the AGMS, SMBR net profit was agreed in fiscal year 2019 amounting to Rp.30,072 billion, set dividend payout ratio of 20.48 percent with a total cash dividend value of Rp.6,158 billion. The remaining Rp.23,913 billion is set as other reserves.

The AGMS also approved changes in the composition of the company’s management. The change in the composition of the company’s management is based on the need to face challenges against SOEs in the future. The Company would like to express its gratitude and appreciation for the contribution of the company’s management who were replaced in maintaining SMBR’S financial and operational performance.

Changes in the Composition of the Company’s Management are as follows:

1. Dede Parasade who previously served as Marketing Director was replaced by Mukhamad Saifudin.
2. Harjanto who previously served as President Commissioner was replaced by Franky Sibarani.
3. Dewi Yustisiana who previously served as an independent Commissioner was replaced by Endang Tirtana
4. Dismissal of Kiki Rizki Yoctavian as Commissioner due to the end of her term/term of office.

Therefore, the composition of the new Management of the Company based on the resolution of the AGMS for Fiscal Year 2019:

President Commissioner                                 : Franky Sibarani

Commissioner                                                 : Oke Nurwan

Independent Commissioner                            : Darusman Mawardi

Independent Commissioner                            : Endang Tirtana

President Director                                           : Jobi Triananda Hasjim

Director of Production & Development         : Daconi

Finance Director                                            : M. Jamil

General Director & SDM                               : Amrullah

Marketing Director                                         : Mukhamad Saifudin

In addition to approving the amount of dividend distribution and changes in the composition of the company’s management, the AGMS also approved a report on the state and course of the company during the fiscal year 2019. In a report submitted by SMBR President Director Jobi Triananda Hasjim, the company reported relatively stable sales performance amid a decline in national cement demand throughout 2019. The Company managed to record sales volume of 2,119,772 tons almost the same as in 2018 amidst the condition of the cement industry which is still oversupply and slowing cement demand growth in South Sumatra (Sumbagsel)

“SMBR sales performance is still better than the total consumption (demand) of cement in Sumbagsel based on data from the Indonesian Cement Association (ICA) down to 9.3% throughout 2019 which became the main market of SMBR”  Jobi.added.

Supported by an effective marketing strategy, SMBR throughout 2019 was also able to increase the market share in Sumbagsel region by 2% to 35% from the previous year. With the largest market share contribution in South Sumatra reached 63% and Lampung 21%, followed by Jambi 15%, Bengkulu 10% and Bangka Belitung 4%.

SMBR also managed to record revenue throughout 2019 of Rp. 2.0 Trillion or grew 1% compared to revenue in 2018 of Rp. 1,996 Triliyun.

With various efficiency programs implemented, SMBR during 2019 managed to reduce COGS by 12% so that SMBR’S gross profit also increased 24% to Rp.875 billion from Rp.707 billion in 2019. SMBR also managed to maintain operating profit of Rp. 234 billion in 2019.

However, SMBR’s net profit in 2019 decreased to Rp. 30 billion due to increased financial expenses due to interest expense on baturaja II factory investment credit of Rp.100 billion and MTN loan interest of Rp.25 billion. SMBR’S current ratio and Debt to Equity Ratio (DER) are still at safe levels of 229% and 60%.

The AGMS also approved several other proposals on the agenda of the meeting including: Report on the Implementation of Supervisory Duties of the Board of Commissioners during Fiscal Year 2019 and Ratification of Financial Statements for Fiscal Year 2019. As well as granting full repayment and release of responsibility (volledig acquit et de charge) to the Board of Directors and Board of Commissioners of the Company for management and supervision actions that have been carried out during fiscal year 2019;

Ratification of the financial statements of partnership and community development programs in fiscal year 2019, including the provision of repayment and release of responsibility (acquit et de charge) to the Board of Directors and Board of Commissioners of the Company for the management and supervision of the Partnership and Community Development Program that has been implemented during Fiscal Year 2019;

Determination of tantiem for the company’s board of directors and board of commissioners for fiscal year 2019 and earnings of directors and board of commissioners for fiscal year 2020;

Appointment of a public accounting firm to audit the Company’s Financial Statements and Financial Statements of the Partnership and Community Development Program for fiscal year 2020.