SMBR and SIG Integration Strengthen the Sumbagsel Domestic Market

PALEMBANG – The end of 2022 was closed with positive news for PT Semen Baturaja (Persero) Tbk (SMBR). After the official signing of the inbreng deed on Monday (19/12) between the Deputy Minister of BUMN II, Kartika Wirjoatmodjo and the Main Director of SIG, Donny Arsal, SMBR has officially joined the Semen Indonesia Group.

The Main Director of SMBR Daconi Khotob sees the value creation that is obtained through integration with SIG. The existence of SMBR is felt to be able to strengthen and fill the market in the South Sumatra region.

“The company’s proximity to this market area creates efficiency, so we are ready together with SIG to achieve future targets.” he said.

This integration also creates efficiency in the procurement system in the cement industry. This is because the equipment used for most cement factories resemble one another. So that the unification in the order system will provide a better bargaining position as a group.

From the production side, SMBR and SIG can benchmark to optimize less and more effective clinker. This also has a positive impact on both parties. Cement production volume can be increased while still implementing efficiency.

Through integration between SMBR and SIG it has a positive impact on both. This big step strengthens the position of the BUMN Sub Cluster of Cement to face a competitive market. SMBR’s strength in the Sumbagsel market is a huge potential to strengthen control of the second largest domestic market in the Sumatra region.

“In addition, the potential for value creation in the field of HR development will of course also boost the performance growth of SMBR and the group,” he added.

SMBR recorded an increase in revenue up 9% yoy, followed by the Company’s net profit increasing 160% up to Q3 2022 compared to Q3 2021. This proves that SMBR still shows positive performance in 2022, amid the conditions in the cement industry which are still accompanied by an increase in coal and an increase in costs logistics which has the impact of increasing the company’s operating costs.

The company is optimistic that it can close 2022 with positive performance. This cannot be separated from the cooperation and hard work of all levels of management and employees who have done their best.

Another exciting news in 2022, SMBR received the Public Information Disclosure Award organized by the Central Information Commission, where SMBR has achieved results as a company in the “Informative” category. This is an extraordinary achievement with Informative’s highest award along with 19 other SOEs in the 2022 Public Information Disclosure Monev evaluation.

“Company transformation needs to be done. We are optimistic that in 2023 we will be able to achieve targets that exceed this year’s targets with cooperation and smart work from management and employees. Together with SIG, SMBR is ready to act differently and exceed its reach,” he concluded.