Build A Synergy-Based Ecosystem, SIG Creates Opportunities For Growth And Expansion Of Business

JAKARTA - Oversupply conditions that are a challenge to the cement industry are not merely pressure, but also opportunities. In the meeting analysis in Jakarta, June 4, 2024, PT Semen Indonesia (Persero) Tbk (SIG) conveyed the Company's strategy and concrete steps to capture and create growth opportunities through market and price management strategies, product diversification, production and distribution network optimization, application of sustainability principles, as well as building strategic synergies and partnerships to build a sustainable business ecosystem.

Recently, GIS initiated the supply path for building materials solutions including cement-based products, green cement products, cement derivative products and building materials that will be used to support IKN development projects until 2045, through the signing of a collaboration between SIG and PT Bina Karya (Persero) carried out by the President Director of SIG, Donny Arsal and the President Director of Bina Karya, Boyke Prasetyanto at The East Tower, Jakarta, on Thursday, May 30, 2024. The signing of this collaboration was also witnessed by the Deputy Minister of the Ministry of SOEs, Kartika Wirjoatmodjo and the Secretary General of the Ministry of PUPR, Mohammad Zainal Fatah.

GIS President Director, Donny Arsal said that in addition to supplying green cement and other sustainable solutions, the synergy between SIG and Bina Karya is also targeted to increase capacity utilization and existing resources to support supply chain management according to IKN development needs.

"SIG is more than ready to meet development needs with a sustainable concept as will be realized by the Government in IKN. Therefore, we really appreciate the affirmation of support from the Government represented by the Ministry of SOEs and the Ministry of PUPR in this synergy. The success of IKN as a sustainable city will be a model for other regions in Indonesia to also carry out environmentally friendly development," said Donny Arsal, in his statement, Wednesday, June 12.

Not only for IKN, Donny Arsal also revealed that SIG has an extensive production and distribution network advantage, as well as diversification of low-carbon products to meet various development needs in various regions in Indonesia. This synergy is targeted to be the beginning of the establishment of a business ecosystem to ensure the realization of sustainable development in Indonesia, as well as channeling production capacity in the midst of oversupply conditions in the cement industry.

Until 2045, the IKN project is also expected to be a driving force for industrial capacity absorption with various needs for building materials such as cement, concrete, aggregates and sand. In addition to being able to supply various needs of these building materials, SIG specifically also has a solution to overcome soft soil conditions to be more efficient in the use of cement through soil stabilization, which is one of the realizations of cooperation between GIS and its strategic partner, Taiheiyo Cement Corporation (TCC) for the development of sustainable solutions.

"TCC really appreciates the collaboration with GIS since 2021. We want to collaborate with GIS to provide environmentally friendly products and solutions such as green products, technology stabilization soup, and other high-performance building materials to support IKN development projects with technology and experience from TCC and SIG," said Shinji Fukami, TCC Senior Executive Officer & Senior General Manager of International Business Division.

Strategic cooperation between SIG and TCC is targeted to create growth opportunities that include the development of environmentally friendly products and solutions, increasing the company's capabilities in creating business models that can build changes in the national and global cement industries, expanding the export market, and optimizing the use of alternative fuels from the use of industrial waste and urban waste to support the achievement of SDGs (Sustainable Development Goals).

In addition to meeting domestic market needs, SIG is also building a special type cement production pier development project in Tuban, East Java, to meet the export market needs in America of up to 1 million tons of cement through strategic cooperation with TCC.