Semen Baturaja Pede Performs Positively Until The End Of 2024

JAKARTA - PT Semen Baturaja Tbk (SMBR) is optimistic that it can end 2024 with a positive performance in competitive market conditions.

President Director of SMBR Suherman Yahya in Baturaja, Ogan Komering Ulu (OKU) Regency, South Sumatra said that until the third quarter of 2024, SMBR managed to record an increase in sales volume by 1 percent compared to the previous year.

Although demand for cement in the South Sumatra region (Sumbagsel) has decreased by 1.4 percent YoY, especially in the markets of South Sumatra and Lampung, SMBR continues to maintain its sales stability.

Suherman revealed that although competition challenges in the market were getting tighter, the company managed to maintain a positive sales volume until the third quarter of 2024.

"We see the potential for an increase in cement sales volume in the fourth quarter of 2024, especially before the Christmas and New Year 2025 holidays driven by a strengthened demand cycle," Suherman said, quoting Antara.

At the national level, demand for cement is expected to grow 1 percent with an industry utilization rate of 1 percent compared to 2023.

Although utilization is still below the projected level in 2019, outlook for 2025 shows a positive recovery outlook in the sector, based on 2025 breastfeeding Outlook data.

Suherman also added that facing 2025, the cement industry will still face challenges due to oversupply market conditions.

However, SMBR remains optimistic about taking advantage of opportunities that come through government programs that focus on infrastructure development.

"Infrastructure programs, including the construction of 3 million houses and the release of BPHTB for certain categories, will be the main driver of cement demand by 2025," he said.

Selain itu, SMBR berencana untuk terus memperkuat kontribusi produk non-semen seperti whiteclay dan limbestone guna mendukung pertumbuhan berlanjutan perusahaan.

With these strategic steps, SMBR believes it can continue to record positive performance despite the challenges that exist.

As part of the commitment to sustainability, SMBR currently produces Cement PCC (Portland Composite Cement), a low-carbon cement that has been certified as Green Label from the Green Product Council Indonesia.

This product is produced using environmentally friendly materials with a process that reduces carbon emissions by 38 percent compared to conventional cement (OPC).

Cement products have also obtained SNI certification and have a Domestic Component Level (TKDN) of 89.34 percent which goes far beyond the minimum limit set in the Minister of PUPR Regulation Number 21 of 2021, which is 40 percent.

With these various efforts, SMBR is confident that it can continue to contribute in supporting national development and is committed to reducing environmental impacts, while ensuring that the company's performance remains positive going forward.