Semen Indonesia Sales Increase 10 Percent To 40.62 Million Tons In 2023

Photo: Doc. Cement Indonesia Group (SIG)

JAKARTA - PT Semen Indonesia (Persero) Tbk (SIG) announced consolidated financial performance in 2023. GIS recorded sales volume of 40.62 million tons, an increase of 10 percent compared to the 2022 period. This increase in volume is mainly from sales growth in the bulk and export segments.

From these sales, GIS recorded revenue of IDR 38.65 trillion in 2023, an increase of 6.2 percent. In 2023, GIS's cost of revenue was recorded at IDR 28.47 trillion.

"EBITDA was recorded at IDR 7.79 trillion. Pre-tax profit was IDR 3.30 trillion. Profit for the year attributable to owners of the parent entity amounted to IDR 2.17 trillion," said SIG Corporate Secretary Vita Mahreyni, in a written statement, Wednesday, March 13.

Vita said GIS managed to record performance growth in 2023. This was marked by an increase in sales volume, income and profit before tax. Throughout 2023, GIS managed to record sales of 40.62 million tons, an increase of 10 percent compared to the previous period. This increase was driven by sales of domestic bulk cement which rose 17.3 percent and exports rose 42 percent.

GIS domestic sales in 2023 grew above domestic demand growth, especially in the bulk segment.

"SIG involvement in various National Strategic Projects (PSN), such as the development of the Nusantara IKN infrastructure and the Trans Sumatra Toll Road, as well as other national strategic projects are the driving factor for increasing domestic sales volume, especially in the bulk segment. As the increase in sales volume, SIG managed to record an increase in revenue of 6.2 percent from IDR 36.38 trillion in 2022 to IDR 38.65 trillion in 2023," said Vita.

On the other hand, despite the increase in several cost accounts due to the impact of rising fuel oil (fuel) and inflation costs, but through operational optimization initiatives carried out throughout 2023, SIG was able to reduce Total Cost/tonnes. SIG has also succeeded in reducing interest-bearing debt and reducing financial expenses that contributed to an increase in profit before tax recorded rose to IDR 3.30 trillion.

"In 2022, there will be a decrease in the resilience tax burden which is a one time event' impact of the company's internal restructuring so that it contributes to higher net profit. So that if the impact of the decrease in the resilience tax burden is issued, in 2023 GIS will record an increase in net profit of 5.9 percent compared to 2022," explained Vita.

Furthermore, Vita Mahreyni said, in addition to the cost efficiency initiative, optimal cash and capital flow management continues to be carried out so that the company's liquidity is maintained very strongly with better solvency than the previous year.

In 2023, GIS received a positive idAA+ credit rating from PT Pemeringkat Efek Indonesia (Pefindo) or up from the previous IdAA+ Stable. This increase reflects the company's strong market position, well-versified production and logistics facilities, and healthy financial profiles.

In addition to growth in business performance, GIS has also managed to record proud achievements in environmental and social aspects. The focus of GIS in reducing greenhouse gas (GHG) emissions continues to show significant results. Through various efforts, ranging from the decline in the peak factor, the use of alternative fuels to the use of solar energy, has helped SIG reduce 17.37 percent of the GHG emission intensity coverage 1 (from operations) compared to the 2010 baseline. Meanwhile, coverage of 2 (indirect emissions from electrical energy) was successfully reduced by 5.22 percent.

Meanwhile, on the social aspect, SIG contributes to efforts to improve the quality of life of the community through health programs to reduce stunting and community-based economic empowerment. Several GIS social innovation programs such as Bilih fish conservation, which is an endemic endangered species in Lake Singkarak, West Sumatra, as well as post-mining land management in Tuban, East Java, have become ecoparks for agricultural education and community development, successfully bringing SIG to the 2023 Golden PROPER from the Ministry of Environment and Forestry.

"The advantages in economic, environmental and social aspects, have led SIG to win the best ESG Rating ranking in the category of construction materials in Southeast Asia, through the achievement of the Medium Risk predicate with a score of 22.9 in environmental, social and environmental and governance performance assessments., Social, Governance (ESG) Rating by international rating institutions, Sustainalytics," explained Vita.

GIS also won the 2024 Domestic Product Use Award (P3DN) as the Best Domestic Product User in the State-Owned Enterprises (BUMN) category from the Ministry of Industry. This achievement made GIS a BUMN that won P3DN for two consecutive years, after winning an award in the same category in 2023.

In 2023, GIS and its subsidiaries recorded a realization of domestic product spending of IDR 23.74 trillion or 92.92 percent of total goods and services expenditures of IDR 25.55 trillion. This achievement increased 6.4 percent from the realization of spending in the same post in 2022 of IDR 22.32 trillion.