SIG Performs Expansion At IKN With 20.9 Percent Share Ownership Of PT Karya Logistik Nusantara

GIS President Director Donny Arsal gave a speech at the signing of the Amendment and Re Statement of the Agreement between KLN Shareholders. (Photo: Doc. SIG)

JAKARTA - IKN development, which has a large portion of construction, is the target of PT Semen Indonesia (Persero) Tbk (SIG) to expand its business. The volume of cement needs and other construction raw materials is very high, making GIS not only cooperate by supplying construction contractors, but also included in the consortium of PT Karya Logistik Nusantara (KLN) which is a consortium of BUMN Karya which will supply concrete, all raw materials and logistics management in IKN development.

The expansion carried out by SIG through the KLN consortium was carried out with a capital participation of Rp. 22.5 billion to PT Karya Logistik Nusantara (KLN) through a rights issue scheme carried out by KLN. Thus, GIS is included in the ranks of KLN shareholders with a share ownership portion of 20.9 percent and strengthens the company's position to supply building materials and sustainable solutions for development projects at IKN.

IKN which supports the construction of environmentally friendly construction is a challenge as well as an opportunity for GIS, especially for the application of a portfolio of GIS products that are designed to be lower in carbon so that they are environmentally friendly. Thus, projects in IKN will be a place for GIS to show leadership in the field of environmentally friendly construction products.

SIG's investment in KLN was marked by the signing of the amendments and the Re Statement of the KLN Shareholders Agreement by the President Director of SIG, Donny Arsal and the President Director of KLN, Fery Hendriyanto, along with six KLN shareholders, namely the President Director of PT Hutama Karya (Persero), Budi Harto; President Director of PT Wijaya Karya (Persero) Tbk, Agung Budi Waskito; President Director of PT Adhi Karya (Persero) Tbk, Entus Asnawi Mukhson; President Director of PT Housing Development (Persero) Tbk, Novel Arsyad; President Director of PT Brantas Abipraya (Persero), Sugeng Rochadi; and President Director of PT Nindya Karya, Moeharmein Zein Chaniago, at Habitart Hotel Rasuna, Jakarta, on Thursday 27 June.

The representative of KLN shareholders, President Director of PT Hutama Karya (Persero), Budi Harto welcomed the joining of SIG which is expected to strengthen KLN's capabilities in carrying out development at IKN.

KLN has a focus on meeting the needs of Government projects, including consolidation of all raw materials and logistics management that support supply chain efficiency. The joining of SIG will support KLN to contribute significantly to IKN development," said Budi Harto.

GIS President Director, Donny Arsal said, GIS' participation in the right issue is a follow-up to efforts to build a synergy-based ecosystem for a sustainable business. Through share ownership in KLN, SIG strengthens its position to supply building materials and sustainable solutions in IKN development.

"This is a manifestation of SIG's strong commitment to encourage the realization of sustainable construction through product applications and environmentally friendly solutions, such as the concept carried by the Government in the development of IKN which will be a pilot for sustainable cities in Indonesia. GIS has environmentally friendly building materials and innovative solutions that are suitable for building resilient and low-carbon emissions," said Donny Arsal.

The entry of SIG to KLN is a continuation of GIS' efforts to support IKN after previously collaborating with PT Bina Karya (Persero) in providing building materials solutions including cement-based products, green cements, cement derivative products and building materials 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.

"SIG will continue to collaborate with the main stakeholders of IKN development to encourage various low-carbon building materials and solutions, including optimizing the advantages of extensive GIS production and distribution networks that are able to meet development needs throughout Indonesia. So, in addition to quality and low-carbon products, SIG also provides added value efficiency for guaranteeing timely supply and delivery availability," said Donny Arsal.