Pefindo Raises Semen Baturaja Rating, Supported by Strong Synergy with SIG and Solid Fundamentals

BATURAJA – PT Pemeringkat Efek Indonesia (Pefindo) has again raised the rating of PT Semen Baturaja Tbk (IDX: SMBR) as a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG) (IDX: SMGR) to “IdAA-” with a stable outlook, from the previous “idA+” stable. This latest rating determination is based on the audited financial report as of December 31, 2024, and strengthens confidence in SMBR’s strategic role in the SIG Group and its future growth potential.

Pefindo stated that the stable “IdAA-” rating reflects the strong level of support from SIG as a parent company that has a stable “IdAAA” rating, SMBR’s strong market position in the Southern Sumatra (Sumbagsel) region, and a strong capital structure. Stable operational performance and strategic relationships with SIG are also the mainstays of this assessment.

SMBR Vice President of Corporate Secretary Hari Liandu welcomed this rating increase. According to him, this reflects market confidence in SMBR’s business direction and fundamental strength.

“This rating increase is a form of recognition of solid business fundamentals, promising long-term prospects, and synergies that continue to be strengthened with SIG. We are also committed to continuing to maintain healthy financial performance amidst the dynamics of the industry,” said Hari.

Furthermore, SMBR will continue to focus on strengthening market share, increasing operational efficiency, and optimizing factory utilization to create sustainable profitability. Optimizing cash flow management and capital structure to ensure healthy liquidity conditions and maintained solvency levels.

Throughout 2024, SMBR recorded positive financial performance, with revenue reaching IDR2.09 trillion, growing 2.5% compared to the previous year of IDR2.04 trillion. Operational cost efficiency also contributed to this achievement, including a 19.5% decrease in selling expenses to IDR161.3 billion, general and administrative expenses decreasing 11.9% to IDR203.3 billion, and financial expenses decreasing 20% ​​to IDR78.85 billion. As a result, profit for the year increased 6.3% to IDR129.25 billion.

“SMBR will continue to maintain positive growth momentum to meet long-term financial obligations, while creating sustainable added value for all stakeholders,” Hari concluded. (*)