Strengthening Market Share in Sumbagsel, Semen Baturaja Aims for Positive Growth in 2023

PALEMBANG – The current condition of the national cement industry is increasingly competitive and competition is getting tougher due to excess supply coupled with weak demand, as well as high energy costs. This continues to overshadow the performance of companies engaged in this industry. However, opportunities are still open by strengthening strategies that are right on target.

After the integration with SIG on December 19, 2022, PT Semen Baturaja Tbk (SMBR) continues to make efforts to strengthen the domestic market, especially in the South Sumatra region which is SMBR’s base market. Throughout 2022, SMBR is able to increase SMBR’s market share in Sumbagsel to 34%. To maintain this market dominance, SMBR has prepared a supply chain management strategy by optimizing its distribution network with a consolidated business model.

Main Director of SMBR Daconi Khotob explained, SMBR also implemented a consolidated business model to improve the company’s performance from smooth supply, speed of delivery to suppliers, customers and distributors. This business model also provides more flexible distribution cost efficiency and increased factory utilization.

“This has had a big impact on SMBR and has been able to increase sales volume and increase SMBR’s market share in the South Sumatra region.” Daconi said.

Daconi also revealed that throughout 2022 SMBR’s performance had improved from the previous year. SMBR recorded a total cement sales volume of 2 million tonnes, up 4% from the previous year. He is optimistic that after joining SIG, this year the company’s performance will increase significantly.

In addition, SMBR has prepared several strategies to improve company performance and face business challenges in 2023, namely creating an AKHLAK cultured environment that reaches up to the company’s main business chain through developing superior and competitive human resources, becoming the best player in order to increase added value and competitive advantage. , being at the forefront of supporting the creation of an environmentally friendly cement industry, creating a digital mindset in order to support an innovative and adaptive work environment, as well as developing integrated GCG infrastructure and supporting company development.