Semen Baturaja becomes more optimistic to face the competition of the cement industry in the future, with the presence of Baturaja II Factory with the capacity of 1,85 million tons per year.Thus, the total production capacity increases to 3.85 million tons of cement per year.

In achieving the future challenges, the Company also prepared the three initiatives, known as the “Three Elephants Initiative”, consist of Cost Leadership, Market Expansion and Streamlining Business Process.

Cost Leadership Initiative

In cost leadership initiatives, the Company implements cost efficiency in various fields, both in the operational, administrative and general sectors as well as in the sales sector, such as reducing the clinker factor by optimizing the utilization of B3 waste, using cheaper energy sources, tightening budget usage regulations, and reducing costs general and administrative as well as sales costs. This has an impact on the low cost of production of cement so that the Company is able to compete with competitors that apply Predatory Pricing practices. In addition, the Company can also obtain a higher profit margin.

Business Process Streamlining

The business process streamlining initiative includes efforts to improve business processes in order to accelerate decision and policy making through an integrated system, one of which is through the implementation of SAP’s Enterprise Resource Planning (ERP), which will be very useful in managing the Company both in the current year and in the following year. will come. Management also gets accurate and fast information in order to optimize the entire supply chain and improve the overall distribution flow.

Market Expansion Initiative

On the market development side, market expansion initiatives aim to increase sales and market share through strengthening the logistics distribution network and expansion to secondary market areas in the form of a program to increase cement production and sales, a distribution facility development program, and a marketing channel digitization program. Furthermore, as an effort to improve the Company’s performance in dealing with oversupply of cement capacity, the Company also took the initiative to create cement derivative products so that cement absorption was more optimal.

Silvikutur Technology

Along with the aggressive efforts to respond the market needs, Semen Baturaja is also the first cement producer with an environmental perspective. In collaboration with the Faculty of Forestry Universitas Gadjah Mada Yogyakarta, Silvikutur development technology use to restore soil fertility around the factory area.

May this website useful as a source of information to add insights and inspirations. Let us all rise together for our country.

Jobi Triananda Hasjim
President Director of PT Semen Baturaja (Persero) Tbk