Increasing Product and Service Diversification Development, SIG Strengthens Its Position As The Largest Building Material Solutions Provider in the Re

PT Semen Indonesia (Persero) Tbk (SIG) continues to strive to improve its capabilities to continue to grow amidst hypercompetitive market conditions and the still looming pandemic condition. The Company focuses on developing innovations to answer the challenges that exist in the field of building materials and provide solutions to all stakeholders.

GIS Director of Finance and Risk Management, Andriano Hosny Panangian said, in the midst of hypercompetitive market conditions, the Company continues to create opportunities through the development of diversified products and services in order to strengthen its position as a provider of sustainable building material solutions.

“GIS is a leading building material solutions company in Indonesia. In addition to controlling the largest domestic cement market share, SIG now has a variety of cement derivative products that have a complete range of specifications and support service solutions, to meet building conditions requirements according to customer needs wherever they are, "said Andriano Hosny Panangian.

Currently, SIG has five strong cement brands and are market leaders in their respective regions, including Semen Gresik, Semen Padang, Semen Tonasa, Dynamix and Semen Andalas. In addition, SIG has integrated cement factories in eight locations, packaging factories in 26 locations, six cement mills and seven ports. Meanwhile, the distribution channel is strengthened by 306 distributors both in Indonesia and in Vietnam (TLCC), as well as 70,000 retail stores in Indonesia.

Andriano Hosny Panangian added, SIG offers multipurpose bagged cement products to cement products for special applications that are more economical, as well as various types of bulk cement according to the characteristics of each type of project so that it is more efficient and effective. Marketing of GIS products is getting stronger with the presence of three digital platforms, namely SobatBangun, AccessToko and GIS online store that make it easier for customers to get services in terms of development.

GIS also features concrete solutions that have been developed, such as SpeedCrete for high-performance, early-strength road repairs that dry in hours. Then there is ThruCrete, a highly absorbent concrete product to minimize waterlogging. SIG has also launched the first HE type hydraulic cement product innovation in Indonesia which has passed the test at the Product Certification Institute (LSPro) of the Center for Materials and Technical Goods (B4T) of the Ministry of Industry.

“The products produced by GIS have been recognized as environmentally friendly products with the achievement of Green Label Certification from the Green Product Council Indonesia (GPCI). Obtained a Self-Declaration Ecolabel certificate from KLHK and became the first in Indonesia, as well as a Level 5 Green Industry award from the Ministry of Industry. GIS presents solutions that not only meet stakeholder expectations, but become a driving force in the growth of the building material industry that pays attention to sustainability,” explained Andriano Hosny Panangian.

Furthermore, Andriano Hosny Panangian said, during the first semester of 2022, the Company managed to record a positive performance in the midst of various tough challenges faced by the domestic cement industry. The Company managed to increase revenue from the domestic market by 1.8%. The Company was also able to maintain EBITDA of Rp3.53 trillion with an EBITDA margin that increased 0.4% to 22.3%. Net profit for the year attributable to owners of the parent company increased 4.4% to Rp829 billion and net profit margin increased 0.3% to 5.2% compared to last year.

"The company takes strategic steps to maintain positive performance that contributes to controlling the cost of revenue, including through securing the supply of coal at DMO prices, as well as reducing operating expenses and financial burdens," said Andriano Hosny Panangian.

In addition to a positive note in business processes, the Company also succeeded in reducing carbon emissions by 2.5% or equivalent to 15 kg CO2/ton of cement, which was contributed by a 0.8% decrease in clinker factor, and an increase in Thermal Substitution Rate (TSR) of 1.7%. GIS proves resilience not only from business achievements, but also sustainable operations which are the competitiveness of the Company.