Semen Baturaja’s Board of Directors Reveals Key Strategies Behind Positive Performance in the First Half of 2025

BATURAJA – PT Semen Baturaja Tbk (SMBR) announced its first-half 2025 performance during its Public Expose (Pubex) Live 2025, held online on Monday (September 29). During the event, SMBR management outlined the key factors underlying the company’s impressive performance throughout the first half of the year.

SMBR recorded positive growth, with sales volume increasing 21% and net profit soaring 952% compared to the same period last year. This growth was supported by an 8% increase in cement demand in the Southern Sumatra (Sumbagsel) region, although the national cement industry is still experiencing a demand contraction of around 2% due to oversupply, which is projected to persist until 2030.

SMBR President Director, Suherman Yahya, stated that the South Sumatra region is SMBR’s primary market base, with growth supported by government programs in the infrastructure and housing sectors, ongoing private projects, and significant contributions from the retail sector.

“Although national demand has fallen by 2%, the SMBR market in South Sumatra is actually growing. This is momentum for us to continue increasing growth by capitalizing on the potential of the South Sumatra market, which is a growth center,” said Suherman.

Meanwhile, SMBR’s Director of Finance & Human Resources, Rahmat Hidayat, emphasized that this impressive achievement is a combination of internal efficiency strategies and synergy with SIG, the state-owned cement holding company.

“Internally, SMBR is reducing production costs to achieve more efficient cost pricing, optimizing distribution channels to key markets, and strengthening market consolidation. Through synergy with SIG, SMBR is gaining greater economies of scale and broad supply chain support, thus strengthening market access. These two factors are the dominant factors in SMBR’s increased sales volume and net profit in the first half of 2025,” explained Rahmat.

Meanwhile, SMBR Operations Director Taufik emphasized that efficiency is also supported by the implementation of a cost leadership strategy through technology and production process innovation.

“Currently, Semen Baturaja is implementing a cost leadership strategy by reducing production costs through energy efficiency, such as reducing the clinker factor and using more economical alternative raw materials. We are also adopting plant automation technology with the Intelligence Process Control System (IPCS), a predictive model-based system that optimizes production operations in real time. This system is able to automatically calculate fuel requirements, temperature, and oxygen levels, making the production process more stable, energy efficient, environmentally friendly, and ensuring product quality,” Taufik explained.

With these positive achievements, SMBR is optimistic about closing 2025 with solid performance while strengthening the company’s contribution to GIS and infrastructure development in Indonesia. (*)