Soaring 372 Percent, Net Profit Of SOE Semen Baturaja Reaches IDR 51 Billion In 2021

Semen Baturaja employee. (Photo: Doc. Antara)

JAKARTA - The oversupply of the national cement industry and the COVID-19 pandemic, do not necessarily put pressure on the business of PT Semen Baturaja (Persero) Tbk (SMBR). In fact, this BUMN based in South Sumatra actually recorded an increase in net profit.

Until the end of 2021, Semen Baturaja's net profit shot up 372 percent. Its value reached IDR 51.82 billion.

Director of Finance and Risk Management SMBR M Jamil said this achievement was driven by increased demand amid the improvement in the national economy.

"This positive performance is thanks to the company's various strategic initiatives in facing various business challenges in 2021," he said, quoted by Antara, Tuesday, March 8.

He said the performance of Semen Baturaja could not be separated from the improvement in the national economy in 2021 as seen from the economic growth rate which reached 3.69 percent and the construction sector growth of 2.81 percent.

This economic growth encourages an increase in cement demand in Sumatra, which is the SMBR market area by 2.5 percent throughout 2021.

The positive impact was that the company was able to record an increase in sales volume of one percent and revenue of IDR 1.75 trillion, an increase of two percent from revenue in 2020.

The company also managed to reduce the cost per tonne in 2021 by four percent compared to the previous year.

According to him, the success of the cost leadership program implemented by the company in 2021 is one of the main keys to increasing EBITDA by seven percent with a value of IDR 446 billion from the previous year.

“The cost leadership strategy has a positive impact on the company. We have succeeded in carrying out this cost leadership by making efficiency and optimizing factories to produce products at an efficient cost," he said.

Thanks to this effort, Semen Baturaja's financial burden has also decreased to IDR 180.4 billion.