Strengthening Market Share in Sumbagsel, Semen Baturaja Aims for Positive Growth in 2023

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PALEMBANG – The current condition of the national cement industry is increasingly competitive and competition is getting tougher due to excess supply coupled with weak demand, as well as high energy costs. This continues to overshadow the performance of companies engaged in this industry. However, opportunities are still open by strengthening strategies that are right on target.

After the integration with SIG on December 19, 2022, PT Semen Baturaja Tbk (SMBR) continues to make efforts to strengthen the domestic market, especially in the South Sumatra region which is SMBR’s base market. Throughout 2022, SMBR is able to increase SMBR’s market share in Sumbagsel to 34%. To maintain this market dominance, SMBR has prepared a supply chain management strategy by optimizing its distribution network with a consolidated business model.

Main Director of SMBR Daconi Khotob explained, SMBR also implemented a consolidated business model to improve the company’s performance from smooth supply, speed of delivery to suppliers, customers and distributors. This business model also provides more flexible distribution cost efficiency and increased factory utilization.

“This has had a big impact on SMBR and has been able to increase sales volume and increase SMBR’s market share in the South Sumatra region.” Daconi said.

Daconi also revealed that throughout 2022 SMBR’s performance had improved from the previous year. SMBR recorded a total cement sales volume of 2 million tonnes, up 4% from the previous year. He is optimistic that after joining SIG, this year the company’s performance will increase significantly.

In addition, SMBR has prepared several strategies to improve company performance and face business challenges in 2023, namely creating an AKHLAK cultured environment that reaches up to the company’s main business chain through developing superior and competitive human resources, becoming the best player in order to increase added value and competitive advantage. , being at the forefront of supporting the creation of an environmentally friendly cement industry, creating a digital mindset in order to support an innovative and adaptive work environment, as well as developing integrated GCG infrastructure and supporting company development.

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SIG Together with Semen Baturaja, Held Construction Expert Training in Palembang City

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PALEMBANG – To improve the competence and skills of construction workers, PT Semen Indonesia (Persero) Tbk (SIG) together with PT Semen Baturaja Tbk (SMBR) held a Construction Expert Program or abbreviated SIG SIG. This program is one of the training programs from GIS for construction workers. The training was held on 13-14 February 2023 at the Jakabaring Athlete’s House, Palembang City, South Sumatra.

The AKSI SIG skills and competence improvement program was attended by 3,915 construction workers from various regions in East Java, West Java to Sumatra, one of which was held in Palembang City, South Sumatra. In the city of Palembang itself, 160 construction workers participated.

This training covers basic construction practices including the installation of red bricks, wall surface finishing, and plastering to smooth the results of wall plaster. In addition, they are given knowledge of Occupational Safety and Health (K3) procedures, effective and efficient construction methods, the concept of healthy homes built with sustainable construction principles, as well as an introduction to GIS products and the cement production process.

One of the SIG SIG participants, Suprapto, said “I am very grateful to SIG and SMBR for providing this training, this has added value for us because they are equipped with insights about construction and cement,” he said.

The Main Director of SMBR, Daconi Khotob, represented by the Senior Manager of Sales for Sub Area 1.1 SMBR Yantasman said “This training is an effort to strengthen synergy and collaboration with construction workers to improve the quality of human resources so that they have competitiveness in the construction services sector.” he said.

“Construction workers who participate will get various benefits including certificates, pocket money, T-shirts and PPE during training,” he said.

SIG’s Business and Marketing Director, Aulia Mulki Oemar said, construction workers also need to equip themselves with knowledge through direct training and practice, which will help improve skills and competencies to be competitive. This competitiveness will boost the productivity and welfare level of the construction workers.

“Besides training, SIG also contributes to building public facilities in the form of park benches. 110 park benches were built in Malang Raya and 10 park benches each in Palembang City, Bandar Lampung City, Bandung City and Yogyakarta City,” said Aulia Mulki Oemar.{}

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Strengthen Strategic Partnership with Stakeholders, Directors of Semen Baturaja Audience with the Governor of South Sumatra

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Palembang – Maintaining strategic partnerships with stakeholders, the Directors of PT Semen Baturaja Tbk (SMBR) held an audience with the Governor of South Sumatra (Sumsel) H. Herman Deru on Wednesday (1/2) which took place in the Guest Room of the Governor’s Office, Palembang City.

Attended by SMBR Main Director Daconi Khotob together with SMBR Director Suherman Yahya and accompanied by SMBR VP Corporate Secretary Doddy Irawan and SMBR Secretarial & Stakeholder M. Mu’ammar Syah Reza. In addition, Assistant II of the South Sumatra Provincial Government for Economics, Finance and Development, Dharma Budhy, was also present. Daconi Khotob explained that this hearing was in the context of friendship after the integration of SMBR into GIS.

The Governor of South Sumatra H. Herman Deru said that a harmonious synergy between the provincial government and SOEs is needed so that the development and improvement of people’s welfare is well maintained and remains a source of pride for the people of South Sumatra. I also appreciate and thank you for the contributions that have been made by SMBR so far,” explained the Governor of South Sumatra.

Furthermore, Daconi Khotob said that SMBR officially joined SIG which was marked by the signing of the Inbreng Deed on December 19, 2022 and reported the results of the EGMS on January 24, 2023. This integration strengthens the position of the state-owned cement industry in the Southern Sumatra (Sumbagsel) region.

Daconi Khotob also revealed that throughout 2022, Semen Baturaja’s performance will increase from the previous year. This is due to the support from the local government in development and permits for companies. We hope that this collaboration can continue for the future development of South Sumatra.” he said.

The Governor of South Sumatra, Herman Deru said he would continue to support the development of SMBR. This is because the company is the pride of the people of OKU Raya (OKU, OKU East and OKU South) and South Sumatra in general.

“This is very historic, so we must continue to support it so that SMBR becomes a pride company for the people of South Sumatra and we don’t want the Semen Baturaja brand to disappear,” said the Governor of South Sumatra.

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Dozens of Product Types from 14 Semen Baturaja-assisted MSMEs Enliven the MSME Bazaar for Indonesia 2023

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Jakarta – PT Semen Baturaja Tbk (SMBR) participated in the MSME Bazaar for Indonesia 2023 which was organized by the Ministry of BUMN on January 26-29 2023 at the Sarinah Building, Jakarta, by presenting 32 types of products from 14 MSMEs developing businesses in the culinary field, craft, to fashion and beauty.

SMBR CSR Senior Manager, Gili Aprial Braja said the 32 types of MSME products presented were produced by UMKM assisted by Rumah BUMN Baturaja. Not only do they meet the criteria, all of these products have also successfully passed strict curation, both in terms of quality and packaging.

“As of May 2022, Rumah BUMN Baturaja already has 261 assisted MSMEs from OKU Regency,” added Gili.

Apart from that, there are also Beeyond Honey products managed by Rumah BUMN Baturaja. Beeyond Honey is produced by Trigona bees. This type of bee is a primitive species that only produces a little honey but the quality is the best because it contains the highest bee pollen. This honey cultivation is carried out on SMBR’s post-mining reclamation land, which is managed by assisted MSMEs.

At Rumah BUMN Baturaja, MSME actors are not only given funding assistance, but also receive assistance in the licensing process, various training according to their respective fields, product packaging and marketing, to the latest is assistance for halal certification.

“As proof of our alignment with the development of MSMEs, the Baturaja BUMN House won the Inspiring BUMN House award at the 2018 BUMN Award,” concluded Gili.

“We are pleased to be collaborating with SIG in making the MSME Bazaar for Indonesia 2023 successful, which was organized by the Ministry of BUMN. This is our commitment and effort to encourage the assisted MSMEs to develop and continue to grow,” concluded Gili.{}

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SMBR Holds EGMS Early 2023, New Chapter After Integration with SIG

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Jakarta, 24 January 2023 – Implementation of the Extraordinary General Meeting of Shareholders (EGMS) of PT Semen Baturaja (Persero) Tbk (SMBR) which was held at the Sari Pacific Hotel Jakarta (24/01).

The meeting was held face to face at the Sari Pacific Hotel Ballroom Palace and electronically using KSEI’s Electronic General Meeting System facility (KSEI’s eASY system). At the EGMS, 2 (two) main agenda items were scheduled, namely changes to the Company’s Articles of Association and Changes to the Company’s Management.

The EGMS which began at 14.35 WIB was attended by majority and minority shareholders. The event was opened by President Commissioner Franky Sibarani and continued with the discussion of the first item on the agenda, changes to the Company’s Articles of Association.

The changes to the Company’s Articles of Association are based on the joining of SMBR with PT Semen Indonesia (Persero) Tbk (SIG) in holding the cement sub-cluster. The end of 2022 was a historic milestone for SMBR, in which the integration process of SMBR into SIG was successfully completed and has completed all stages of establishing the cement sub-cluster SOE holding which was marked by the signing of the Deed of Share Transfer Agreement on December 19, 2022 between the Republic of Indonesia and SIG. Where as many as 7,499,999,999 (seven billion four hundred ninety nine million nine hundred ninety nine thousand nine hundred ninety nine) RI State-owned Series B shares in SMBR changed their ownership to SIG, so that SMBR’s status changed to Non-Persero and became one of a SIG subsidiary.

The Republic of Indonesia still holds 1 (one) Series A Dwiwarna share, SIG owns 7,499,999,999 Series B shares and the Public owns 2,432,534,336 Series B shares. In addition to the name change, the EGMS also decided to amend several articles in the Company’s articles of association, including other matters relating to capital, shares, duties, powers and obligations of the directors, board of directors meetings, annual work plans and budgets, and other articles governing the articles of association.

In the second agenda item there is a change in the composition of the Company’s Management. Respectfully dismissed members of the Board of Commissioners, namely Independent Commissioner Darusman Mawardi and Commissioner Oke Nurwan and appointed Hadi Daryanto as Commissioner of the Company.

In addition, the EGMS also honorably dismissed members of the SMBR Board of Directors, namely the Director of Marketing, Mukhamad Saifudin and the Director of General Affairs & HR, Gatot Mardiana. Furthermore, there was a change in the nomenclature of the Director of Finance and Risk Management to become a Director (Finance and HR Function), the Director of Production and Development to a Director (Company Operations Function), so that the management composition changed to the following:

The following is the latest composition of the SMBR Board of Commissioners:
Main Commissioner : Franciscus M.A Sibarani
Independent Commissioner : Chowadja Sanova
Commissioner : Hadi Daryanto

The following is the current composition of the Board of Directors of Semen Baturaja:
Main Director : Daconi Khotob
Director (Financial Function and HR of the Company): Tubagus Muhammad Dharury
Director (Company Operations Function): Suherman Yahya

It briefly describes performance in 2022, amidst declining demand in the Sumatra region, especially Southern Sumatra (Sumbagsel) which is the base market area, SMBR was able to increase cement sales volume by 4% so that SMBR’s market share in Sumbagsel became 34% or grew 3%. This performance growth is inseparable from the consistency of SMBR Management in implementing strategic initiatives such as strengthening market position, cost leadership through the SMBRGO45 program and efforts to increase employee competency.

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Official! The Government Transfers 75.51% of Semen Baturaja Shares to SIG

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JAKARTA – The Government of Indonesia officially inbreng shares by transferring the shares of the Republic of Indonesia (“Negara RI”) in the amount of 7,499,999,999 Series B shares with a total value of IDR 2,848,672,369,646 or representing 75.51% of the entire issued and fully paid capital in Semen Baturaja into SIG shares, as a continuation of the Cement Sub Cluster SOE Integration Program through the Pre-emptive Rights (HMETD) process.

The signing of the Inbreng Deed was carried out by the Deputy Minister of BUMN II, Kartika Wirjoatmodjo and the Main Director of SIG, Donny Arsal, at the Office of the Ministry of BUMN, Jakarta, Monday (19/12/2022). This share inbreng transaction does not change the portion of ownership by the Republic of Indonesia on controlling shares in SIG. The Republic of Indonesia also still owns 1 Series A Dwiwarna share in Semen Baturaja.

The Main Director of SIG, Donny Arsal said, the integration of Semen Baturaja into SIG is a big step to strengthen the position of the SOE Cement Sub Cluster in facing competitive market challenges. Until now, SIG has been proven to be able to create value from the synergy of various entities within the group so that it becomes a competitive advantage in the competition in the cement industry.
“Semen Baturaja is a force in Southern Sumatra.
The integration of Semen Baturaja into SIG has enormous potential for synergy to support the position and complement the footprint of the Cement Sub-Cluster SOEs, especially in the Sumatra region which is the second largest domestic market, win fierce competition and provide maximum benefits for the community and the State, as well as solidify steps SIG to become a leading provider of building materials solutions in the region,” said Donny Arsal.

Meanwhile, Deputy Minister of BUMN II, Kartika Wirjoatmodjo said, today we completed one of the important milestones of the entire BUMN transformation plan for streamlining and clustering of the cement sub-cluster. As a strategic sector, we want to encourage SOEs in the Cement Sub Cluster as a driver of a sustainable cement industry through optimizing distribution, marketing and production efficiency that is coordinated regionally and nationally.

“Indonesia has the healthiest economic growth projection for 2023 in the range of 4.5-5%, where in the fourth quarter of this year people’s purchasing power is running quite fast. In 2023 it will also be a moment of realization of the development of IKN as an infrastructure and property catalyst, as well as contributing to economic recovery. We hope that within two to three years, the cement industry will soon recover through innovation, optimization and efficiency to overcome cost burdens, maintain cost structure and EBITDA consistency,” said Kartika Wirjoatmodjo.{}

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Semen Baturaja Wins Informative Award in 2022 Public Agency KIP Monev Award

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JAKARTA – The 2022 Public Information Disclosure Monitoring and Evaluation Assessment has been announced. PT Semen Baturaja (Persero) Tbk succeeded in achieving “Informative” results which were announced at the 2022 Public Agency (BP) Monitoring and Evaluation Award (Monev) by the Central Information Commission (Central KI)

President Director of PT Semen Baturaja (Persero) Tbk Daconi Khotob, was present in person to receive the Informative Public Agency award with a score of 91.70. The award was given directly by Samrotujannah Ismail Commissioner Chair of Advocacy, Socialization and Education of the Indonesian Central Information Commission at the Atria Gading Hotel Serpong Tangerang, Wednesday (14/12/2022).

“This appreciation is given to the SMBR PPID team who have made outstanding achievements with the highest Informative award in this year’s Public Information Openness Monev Evaluation.” Daconi said.

PT Semen Baturaja (Persero) Tbk in 2020 has started an Information Disclosure Monev evaluation initiated by the Central Information Commission. The results of the assessment are not informative with a value of 28.35. In 2021 the Company started making changes and evaluations, but it’s still unfortunate, SMBR got Less Informative results with a score of 58.87.

This year, Management focuses on applying public information service standards in accordance with Law No. 14 of 2008 concerning Public Information Disclosure. There are 5 (five) levels of KIP Monev results, including Informative, Towards Informative, Quite Informative, Less Informative and Not Informative.

With maximum effort and giving trust to stakeholders and the community to become an Open Public Agency, SMBR has successfully upgraded to become an Informative Public Agency with 19 other SOEs at that level.

“This is our commitment as a company to provide information and documentation services in accordance with public information service standards.” he added.

The person in charge (PJ) for Monev KI Handoko Agung Saputro said that there had been a significant increase in the implementation of the 2022 Monev Award, because 122 BP had succeeded in becoming Informative from the seven BP categories. “The achievement of one hundred and twenty-two Informative BPs has exceeded the target of the national medium-term development plan from Bappenas, which is ninety-eight Informative BPs,” he explained.

Based on the 2022 Monev assessment there are still Public Bodies that do not achieve the informative title, namely 29 Public Bodies Less Informative, 24 Public Bodies ‘Quite Informative’, and 39 Public Bodies ‘Towards Informative’.

For recipients of the Best Informative Public Agency in each category, the award was given directly by the Coordinating Minister for Political, Legal and Security Affairs Mahfud MD representing Indonesian Vice President Ma’ruf Amin, namely the Central Java Provincial Government, the General Election Commission (KPU), the Ministry of Agriculture, the Finance and Development Supervisory Agency (BPKP), PT. Indonesian Railways (KAI) and State University of Malang.

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Disaster Response – Semen Baturaja, Provides Assistance for Cianjur Earthquake Victims

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CIANJUR – The PT Semen Baturaja (Persero) Tbk Disaster Response Team distributed aid to earthquake victims at one of the Islamic boarding schools in the Cianjur area, West Java (24/11). Representatives from the Company, Fandi Mardianto and Radityo, donated directly to disaster victims in Cianjur, West Java.

The company expresses its deep concern and condolences to all people affected by the earthquake in the Cianjur area. The disaster caused damage to buildings and caused casualties and injuries.

“On behalf of all Semen Baturaja people, we are sorry for what the people of Cianjur have experienced.” said Vice President of PT Semen Baturaja (Persero) Tbk Doddy Irawan in a press statement, Thursday (24/11).

The assistance provided by the Company is a form of social care for victims through the Social and Environmental Responsibility Program (TJSL) of PT Semen Baturaja (Persero) Tbk.

Post-disaster conditions were quite severe with buildings collapsing and leaving grief. Many families had to be evacuated in order to maintain safety and overcome the trauma of the disaster that occurred. Health posts are also on standby to look after and treat the affected victims.

Semen Baturaja hopes that the impact of the disaster can be resolved soon, so that the victims can return to their normal activities as soon as possible.

“Thank you for the assistance provided by Semen Baturaja. We greatly appreciate the assistance provided at this time.” said Choirul Anam to the management representative.{}

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Distributing Aid to the OKU Regency Government, Semen Baturaja is Ready to Support the Community Through the CSR Program

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BATURAJA – PT Semen Baturaja (Persero) Tbk has just handed over 2 (two) units of garbage motorbikes to the Ogan Komering Ulu Regency Environmental Service at the PT Semen Baturaja (Persero) Tbk anniversary event, Monday (11/14) in the Wisma Ganesha Factory Hall King stone.

The commissioner of PT Semen Baturaja (Persero) Tbk, Ok Nurwan, symbolically handed over the handover to the OKU Regent, represented by OKU Regional Secretary Dr. H. Ahmad Tarmizi was accompanied by the Board of Directors of PT Semen Baturaja (Persero) Tbk.

This assistance is used to transport household waste that cannot be reached by garbage dump trucks, so that the cleanliness of the environment in the Ogan Komering Ulu area is maintained.

At the anniversary celebration, PT Semen Baturaja (Persero) Tbk also handed over aid for the revitalization of the Ogan I Bridge in the Center of Baturaja City. The assistance was given directly by the Main Director of PT Semen Baturaja (Persero) Tbk Daconi Khotob to the Secretary of OKU Dr. H. Ahmad Tarmizi.

The Ogan I Bridge is an important and historic icon for Baturaja City which is also the logo of the OKU Regency government which crosses over the Ogan River. This bridge was built during the Dutch Colonial period and is still functioning well today.

This CSR assistance aims to help regional progress and social empowerment. In addition, SMBR provides real support for the planning for the arrangement of the Baturaja urban area so that it remains in accordance with laws and regulations and does not conflict with applicable regulations and in accordance with company policies.

“Thank you for the assistance provided by Semen Baturaja. We hope that SMBR will always be victorious and bigger.” said Ahmad Tarmizi.

PT Semen Baturaja (Persero) Tbk has a sustainability strategy to provide positive benefits for the country, especially in the economic, social and environmental fields.

The Company contributes to society through the Social and Environmental Responsibility (TJSL) program. Collaboration with the OKU Regency Government and the Baturaja City Government as well as the Ring I community has also been well established.

“SMBR’s CSR continues to run, both in Baturaja, Palembang and Lampung. Currently, we always carry out social responsibility in accordance with existing regulations.” said Daconi Khotob when met on the sidelines of the event.

The program that has been running is not only providing assistance, but there are also training activities carried out together with Rumah BUMN Baturaja to increase productivity and the selling rate of UMK products, by increasing people’s skills.

The activities that have been carried out include coaching UMK Class Up with Coffee Roasting Training, Halal Certification Technical Guidance Program, Product Photo Training, and so on.

Semen Baturaja CSR also has a Disaster Response program, to ease the burden on residents who have been hit by a disaster. The Company also cares about improving public health through supporting Posyandu activities in Palembang City. This activity is carried out routinely to overcome child malnutrition.

“CSR Semen Baturaja will continue to develop and prosper the surrounding community as our social responsibility as a state-owned company in the Southern Sumatra region.” concluded Daconi.{}

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PT Semen Baturaja (Persero) Tbk Promotes the Spirit of Energy on its 48th Anniversary

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BATURAJA – Commemorating the 48th anniversary of PT Semen Baturaja (Persero) Tbk, the Company held a Setia Karya Ceremony and an offline Friendly event on Monday (14/11) at the Baturaja Factory and online through a zoom meeting.
The Setia Karya ceremony is an event for giving service marks and awards for the work period of employees. This year there were 63 people consisting of 35 people from the Palembang site, 19 people from the Baturaja site and 9 people from the Lampung site.

At the social event, SMBR invited several invited guests such as the OKU Regent, the Head of the Police, the Dandim, the OKU DPRD and the OKU District Attorney. The employees/IT at the Baturaja site also took part in enlivening the event which could finally be held offline.

Main Director of SMBR Daconi Khotob said that the anniversary celebration this time was the first celebration in 2022 which was held offline and had been eagerly awaited since the Covid-19 pandemic.

“We want this year’s employees to be able to enjoy the hospitality in person. Even though we haven’t been able to completely escape the Covid-19 pandemic and still have to comply with health protocols, we are happy to see our employees excited about celebrating this day.” he said.

“48 years is a ripe age for the company. This year, we are all historical actors in the integration process of Semen Baturaja and Semen Indonesia. This integration brings positive things for both parties.” he added.

SMBR itself has proven its performance until September 2022 by recording cement revenue which grew by 9% and net profit which was recorded to have increased by 160% (yoy).

The company continues to run efficiency programs to maintain company productivity and increase competitiveness. Management also has a commitment to implementing sustainability programs such as using waste as an alternative fuel, reducing carbon energy consumption, and biodiversity conservation programs in the mining area.

The Friendly Event is carried out in an orderly manner. Employees/it get enthusiasm and positive energy through the remarks of the President Director, the remarks of the Board of Commissioners and the Speech of the OKU Regent.
In his remarks, the OKU Regent represented by the OKU Regional Secretary, Dr. H. Ahmad Tarmizi prayed that production capacity could increase with the quality of the cement products produced being more competitive.

With the trust of management, employees and stakeholders, the Company believes that this year’s target can be achieved.{}

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