Semen Baturaja’s Focus on Product Development to Pursue Target in Semester II/2020

The Strategy was Informed to Public Expose Live 2020 that was Held by IDX in Collaboration with OJK, KPEI, & KSEI

The Management Team Keeps on Pushing for the Sales of Mortar and Developing White Clay-producing Facility

JAKARTA – Semen Baturaja has become the first Open Company in Public Expose Live 2020 that was held by Indonesia Stock Exchange on Monday, 24 August, through interactive internet-based Zoom Meeting application.

Presentations regarding the company’s achievement during the entirety of Semester I/2020 and future planning in Semester II/2020 were being directly delivered by the Main Director, Jobi Triananda Hasjim, accompanied by Financial Director, M. Jamil and Vice President Corporate Secretary, Basthony Santri.

With the drop in demand for national cement products during the entire Semester I/2020, the company of Semen Baturaja (SMBR) as one of the State-owned Business Enterprises within cement industry has already prepared several strategic measures to reach target in Semester II/2020.

A glance at SMBR’s achievement in Semester I/2020 has shown a less than desirable result. The Main Director Jobi Triananda Hasjim has stated that the company will focus to improve the sales performance in order to reach target in Semester II/2020.

One of the strategic measures prepared by SMBR is to improve the sales of its newest product variations, such as Mortar and White Clay.

“This Semester II/2020, our Mortar, under the brand Baturaja Mortar, will be released and sold in mass production after several previous months of market trial in Bandar Lampung region” Jobi said.

Baturaja Mortar features 5 (five) variants, which are: Acian Mortar, Pairs of Lightweight Concretes, Ceramic Adhesive, Pairs of Concrete and Plastering, and White Acian. SMBR has prepared two production units with the capacity of 1,5 and 6 tons per days which are located in Panjang Plant in Lampung to supply Mortar.

Other than that, in order to support the sales of White Clay product which contributes largely to SMBR’s performance, the company has also been developing White Clay production facility to help achieve the 50.000 ton target in accordance with the sales contract that SMBR has signed with the company of Pusri, a subsidiary of Indonesia’s Fertilizer Manufactory.

Through Semester I/2020, the realization of White Clay sales have reached 15.282 ton or 7% higher from the initial target within said period.

“Our company is confident that the sales target of White Clay in 2020 will be reached over time as its production facility become more accessible” Jobi added.

Through its subsidiary company, Baturaja Multi Usaha (BMU), Semen Baturaja has also expanded into the business of Lightweight Concrete while also preparing other derivative products, such as Fiber Cement Board (FCB) and Porous Concrete that are still undergoing testing phase.

Other than developing its product variants, SMBR is also focused on improving the sales of cement particularly on its home base in South Sumatra. SMBR has also readies some anticipative measures to reach target in Semester II/2020 such as market expansion outside of South Sumatra. The prime shipping of cement products to Pontianak, West Kalimantan amounting of 2.250 ton as per July 2020 has become the entry point of the company to enter the market inside Kalimantan. Further, SMBR has actually also been preparing to expand its market into the province of Riau in the near future.

The management team of SMBR has also been taking measures of raw materials and energy efficiency, strengthening cash flow through doing investment credit repackaging, and postponing several capital expenditure budgets to improve the company’s performance in 2020.

Throughout Semester I/2020, SMBR has recorded its cement sales volume to be 746.612 ton, or reaching 84% in comparison with last year’s same period. The achievement of this sales volume is considered to be well enough if taking into account the impact of Covid-19 pandemic that has caused the significant decline of cement demand within the entire region under the company’s sales territory.

The management team has also become more confident that SMBR’s performance in Semester II/2020 can be improved in conjunction with the release of National Economic Recovery program by the government which is hoped to be able to help push the growth of property sector, who is a main attractor of cement industry.