PT Semen Indonesia (Persero) Tbk (SMI) continues to strengthen steps to achieve sustainable business growth.Group of companies consisting of Semen Padang, Semen Tonasa, Semen Gresik, and Thang Long Cement, has set up an integrated strategy to strengthen its performance.readmore...
" With a number of strategies that have been and will be run, we want to ensure the sustainability of business growth acceleration.The Company remains optimistic that appear as a market leader in the national cement industry, even developing overseas markets, "said Dwi Soetjipto President Director of Semen Indonesia, in Jakarta , Wednesday (7/5).
Until the first quarter of this year, Semen Indonesia lead market share amounted to 43.8 percent of national cement with record sales of 6.2 million tons.The sales, increased 3.5 percent over the same period last year of 5.9 million tons.Revenue reach Rp 6.2 trillion, or an increase of 11.4 percent over the same period the previous year amounting to Rp 5,5 trillion.Net profit reach Rp1,3 trillion, or an increase of 5.3 percent over the same period last year amounted to Rp1,2 trillion.
President Director explain, the cement market in the future will continue to grow.Assuming a growth of 6 per cent per year, cement consumption in 2017, is predicted to penetrate the 73.55 million tons compared to the position in 2013 in the range of 58 million tons." If there is no capacity addition, concerns have been shortage of cement in the future that would hamper national development.With such a prospect, the cement industry occupies a strategic position, and the company anticipates this opportunity by applying a mix of strategies ranging from upstream to downstream, " he said.
One of the main strategies is, the increase in capacity with the addition of capacity (upgrading) on plants that have been operating (existing plant) and construction of new plants.Currently the Company is building a new plant in Central Java and West Sumatra, each with a capacity of 3 million tons.
Other strategies, performed by acquiring cement companies and exploring potential partnerships through the establishment of a joint venture (JV).With a mix of the strategy, the company is targeting a production capacity of 40.8 million tons in 2017.
The Company also inflame innovations that can improve efficiency, including energy security needs by conducting a long-term contract coal and coal mine land management autonomously through its subsidiaries PT Prima Energy SGG.
" At each new plant will be equipped with the power plant , so that it can efficiently and can reduce energy costs.For example, at the factory Tonasa V in South Sulawesi power plant is equipped with 2 x 35 MW, the largest power plant ever built is integrated with the cement industry, " he explained.
Aligning the Company's long-term development strategy implementation in the short-term activities, the management focus through four strategies, such as revenue management, cost management, capacity management, and increasing competitive advantage ;to support accelerated growth.
Convincing Financial Performance
In first quarter the Company's performance is increase.EBITDA reached Rp 1.95 trillion, an increase of the same period last year of Rp 1.86 trillion.EBITDA margin of 31.61 percent.The net income margin of 21.1 percent, indicating the consistency of the company in creating optimal profitability amid tighter competition and increased operating expenses.The Company also recorded, return on assets is still quite high, amounting to 17.4 per cent, showed the ability to maintain profitability.
Going forward, the strategy and financial policies as well as scalable capital structure, the company believes expansion can balance between the need to meet the needs of the cement market and cash flow remains healthy.
" The financial policy combined with the strategy of increasing production capacity, network expansion, product innovation, and efficiency to maintain the maximum level of margin, so that the Company will be growing into the leading cement company in the region, " he said.
PT Semen Indonesia (Persero) Tbk is an Indonesia-based multinational building materials solutions company. The Company provides a range of product and service variants according to the level of development needs from simple renovations, property development projects, public facilities, infrastructure to other large-scale projects. The Company has two segments: cement production and non-cement production. Cement production segment produces and markets cement products in Indonesia, Vietnam, as well as various export destination countries. In addition to production facilities, the Company has also developed various supporting facilities, such as packaging factories, ports, and other distribution support networks spread across all provinces in Indonesia and parts of Vietnam. Non-cement production segment consists of mining limestone and clay, manufacturing packaging bags, developing industrial estates, finished and ready-to-use concrete, information system services, logistics and trading.
PT SEMEN INDONESIA (PERSERO) TBK 
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