Success in Exceeding the Target, SMBR Integration Receives Praise from the Ministry of BUMN

BATURAJA – A big step in the world of cement industry has been achieved successfully. PT Semen Baturaja Tbk (SMBR) has officially become a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG) on December 19, 2022 to strengthen the position of the SOE Cement Sub Cluster in facing an increasingly competitive market.

On Thursday (24/8) in Baturaja, Ogan Komering Ulu Regency, South Sumatra, SMBR received a visit from the Assistant Deputy for Infrastructure Services at the Indonesian Ministry of BUMN Hendrika Nora Osloi Sinaga in the framework of monitoring and evaluating the Key Performance Indicator (KPI) achievements of State Capital Investment ( PMN) Fiscal Year 2022. This visit aims to review the results of the integration of SMBR into SIG.

During the visit, Hendrika Osloi Sinaga was accompanied by the Directors of SMBR including Main Director Daconi Khotob, Director (Finance & HR Function) Rahmat Hidayat and Director (Operation Function) Suherman Yahya and SIG Directors namely Operations Director Reni Wulandari.

Hendrika Nora Osloi Sinaga said that his party reviewed the results of the integration of SMBR into SIG, “The Ministry of BUMN greatly appreciates the positive results that have been achieved through the integration of SMBR into SIG. This integration has had a significant impact in improving financial performance, distribution channels and strengthening the cement market position, especially in the South Sumatra region which has become the marketing base for SMBR,” said Hendrika Nora Osloi Sinaga.

The Main Director of SMBR Daconi Khotob in his presentation explained the achievement of the realization of the creation of integrated value or value creation as of July had exceeded the target or Rp. 217.3 billion (157% of the target of Rp. 138.4 billion or 78% of the FY2023 target of Rp. 279 Rp. 198.6 billion, consisting of Realization of Initiative Value Creation according to the Joint Review Document of Rp. 198.6 billion and Realization of New Initiative Value Creation of Rp. 18.7 billion.

“Several new initiatives that are capable of contributing to the creation of integrated value include implementation of optimizing factory maintenance, efficiency in the value of spare part inventory, reprofiling of syndicated loans, cost efficiency of joint insurance tenders,” he said.

He added that the achievement of this integration value was also driven by an increase in employee productivity, this is because around 87 percent of the majority of SMBR employees are millennials. meaning, they are ready to collaborate for the betterment of the company and the holding, and are ready to innovate and adapt to the changes that occur.

This successful integration strengthens SIG’s position as a key player in the cement industry, with SMBR now solidly an integral part. This achievement not only strengthens the position of the SOE Cement Sub Cluster, but also creates positive momentum to face competitive market challenges in the future. (*)