The Company realizes that 2021 will be a challenging and dynamic year. The COVID-19 pandemic still has a significant impact on the sustainability of the Company. The economic sector of the community is affected which ultimately affects people’s purchasing power, especially consumption of cement commodities. In addition, oversupply and the highly competitive cement industry has pushed prices to become even tighter. Nevertheless, we continue to make every effort to improve economic performance so that the Company continues to provide great benefits for the Company and all
stakeholders. 

To that end, the Company undertakes various policies and appropriate business strategies. Various efforts have been prepared, including increasing market share by improving distribution channels, carrying out production and operating costs efficiency, repackaging investment loans, and increasing cement and non-cement revenues. We also continue to innovate digitally through BUILD ID which has various features such as building material e-commerce shop, handyman services, architect consulting services, property, to home financing solutions.

In addition, to support economic performance, the Company has an integrated factory from mining to packaging in Baturaja. We also encourage various product innovations including OPC Type I, II, V and PCC Cement, as well as producing various types of cement mortar.

With these various innovations, policies or strategic programs, the Company will still be able to maintain a positive operational performance in 2021.

ENVIRONMENTALLY FRIENDLY PRODUCTS

As a company engaged in the cement industry, the Company realizes that the products it produces will certainly have an impact on the environment. In line with the Government’s efforts to reduce greenhouse gases, we carry out various research and product development steps to ensure that the Company’s products are the best products that are environmentally friendly.

The Company strives to prioritize environmentally friendly aspects by using material substitution in operational activities. The various types of substitute materials that have been used by the Company can be further seen in the Environmentally Responsible Chapter.

DISTRIBUTION CHANNEL

For the Company, strengthening the customer base is one of the important efforts to improve the sustainability of economic performance. For this reason, we regularly establish good relations and conduct socialization related to product information to increase product sales.

The distribution channel applied by the company is sales through distributors. Even in the midst of a pandemic, the Company continues to strive to raise enthusiasm and induce loyalty of distributors and stores with promotional activities to improve sales performance. Through brand awareness activities both through outdoor media and advertisements with companies & agencies, participating in exhibition activities, sponsorship activities with high exposure to the public, the Company selectively plays an active role as aneffort to strengthen the brand in the South Sumatra market area. In addition, the Company continues to run technical service programs such as concrete compression strength tests, hammer tests, aggregate analysis and assistance in making job-mix formulas for free as well as assisting customers (batching plants) for trial mix activities at plant locations. 

PRODUCT SAFETY AND RESPONSIBILITY

As a form of the Company’s responsibility towards consumers and all stakeholders, the Company ensures to comply with regulations and standards relevant to the cement industry, namely Law No. 8 of 1999 concerning Consumer Protection. We periodically carry out a process of assessing the health and safety impact of our products. We continuously conduct joint research with the best institutions and universities to conduct product research and trial and technology development to ensure the best products. Furthermore, we disseminate the results of the research to all customers and the public.

As an implementation guideline to ensure customer satisfaction with products, the Company implements the ISO 9001:2015 Quality Management System for its various services, the ISO/IEC 17025:2017 Laboratory Management System, and the Indonesian National Standard Certification (SNI). SNI certification has been listed on the packaging of Semen Baturaja products, followed by instructions for use and composition of raw materials.

CUSTOMER SATISFACTION

As an effort of the Company to improve service to customers, we routinely conduct surveys/measurements of customer satisfaction. This survey aims to maintain the company’s performance and get feedback from customers for the services that have been provided. Customer
satisfaction surveys are conducted semi-annually by an independent institution. From the survey results, customers highly appreciate the Company’s performance through surveys measured in terms of quality, quantity, continuity, distribution, price and service.