Market Prospects Are Assessed As Strengthening, Pefindo Raises GIS Ranking To Positive IdAA+

Photo: Doc. SIG

JAKARTA - PT Pemeringkat Efek Indonesia (Pefindo) ranked PT Semen Indonesia (Persero) Tbk (SIG) to be idAA+ Positive from the previous IdAA+ Stable. The increase in the rating reflects the company's strong market position, well-verified production and logistics facilities, and healthy financial profiles.

In addition to ranking the Company, Pefindo also assigns IdAA+ rankings for Shelf-Registered Bonds II, as well as Shelf-Registered Bonds I Phase II Series A and Series B Year 2019 and Shelf-Registered Bonds II Phase I Series A and Series B Year 2022 issued by the Company. The rating shows the strong ability of issuers coded SMGR shares to fulfill long-term financial commitments to debt securities, compared to other issuers in Indonesia.

SIG Corporate Secretary, Vita Mahreyni said, The Company positively welcomed Pefindo's decision to raise SMGR's rating to positive idAA+. In the midst of competitive domestic cement market conditions, this rating increase is an acknowledgment of the company's ability to maintain performance to remain positive as well as the ability to fulfill long-term financial commitments.

Positive idAA+ embedding is a motivation for us to improve our ability as leaders in the country's building materials industry, through providing quality service and product innovations for various development needs. We are also ready to maintain positive performance by securing the sales and revenue sector, encouraging efficiency through increased operational excellence, to good financial management," said Vita Mahreyni, in her statement, Friday, August 18.

In 2022, SMGR managed to record a profit increase of 15.5 percent to IDR 2.365 trillion compared to the same period in 2021 of IDR 2.047 trillion. This positive performance record continued until the first semester of 2023, where the company managed to record a profit increase of 3.1 percent to IDR866 billion.

"This positive trend makes us even more optimistic that we can maintain a positive performance in the second semester of 2023," said Vita Mahreyni.

Currently, GIS is the leader of the national cement industry by controlling more than 50 percent of the market share. In running its business, SIG is supported by an integrated cement factory in 9 locations, a packaging plant in 26 locations, 8 cement milling factories, 7 ports, 385 distributors and more than 70,000 retail stores.