Maintain Positive Performance In Semester I 2024, GIS Focuses On Creating Opportunities From Cement Green And Sustainable Solutions

The house for example MBR T36 at the installation of the SIG Technology Example Building in IKN which was built using an environmentally friendly interlocked brick solution. (Photo: Doc. SIG)

JAKARTA - In the midst of competitive industrial conditions due to oversupply conditions and existing competition challenges, PT Semen Indonesia (Persero) Tbk (SIG) was able to maintain positive profitability performance achievements throughout the first half of this year. The company reported its consolidated (unudited) financial performance in the first semester of 2024 by posting:

Revenue amounting to IDR 16.41 trillion.Based on the cost of revenue of IDR 12.55 trillion. Good luck with EBITDA amounting to IDR 2.88 trillion. Profit for the current period is IDR 503.49 billion.

In addition to maintaining positive profitability achievements, throughout the first half of 2024, GIS was also able to maintain financial resilience by recording cash flow from positive operations, so as to continue to lower debt balances and maintain a healthy solvency ratio. In the first semester, the Company has paid off Shelf-Registered Bonds I Phase II which was issued in 2019, worth IDR 3.36 trillion.

The bond repayment resulted in a decrease in liabilities resulting in GIS interest and a decrease in financial expenses, thus supporting positive profitability achievements. This healthy financial posture is also reflected in the idAA+/positive rating from PT Pemeringkat Efek Indonesia (Pefindo), so that SIG shares (SMGR code) are now listed on the list of Pefindo i-Grade constituents.

"In the midst of the challenging industrial situation in recent years, in addition to continuing to maintain fundamental performance to remain strong, SIG is also continuing to focus on building a business ecosystem as a new catalyst that will support optimizing the use of green cement and sustainable solutions. Because in the future, not only industries will move towards the green industry, but the way we build must also begin to change so that they are adaptive to climate change and maintain the needs of future generations," said SIG Corporate Secretary Vita Mahreyni, in a written statement, Thursday, August 1.

In line with the government's efforts to create a sustainable economy and reduce the rate of climate change, GIS continues to innovate by providing low-carbon building materials and sustainable solutions, which result from innovation and an environmentally friendly production process, to support low-carbon development and support the Government to achieve the Net Zero Emission target by 2050. This increase in capability is contained in the 2030 GIS Sustainability Roadmap (Sustainability Roadmap).

"SIG is more than ready to meet development needs in various regions in Indonesia. One of the efforts we are making to encourage the optimization of the use of environmentally friendly materials is in development projects at IKN that carry the concept of sustainable and smart city, and will serve as a model for other regions in Indonesia to also carry out environmentally friendly development," added Vita Mahreyni.

Currently, GIS has also completed the construction of the SIG Technology Example Building installation at IKN. This installation shows green cement applications and derivative products in model houses for Low-Income Communities (MBR) and innovative concrete applications that can be used to support the construction of landed housing, flat housing, supporting infrastructure, as well as various other development needs at IKN.

For this reason, SIG builds a synergy-based business ecosystem in collaboration with PT Bina Karya (Persero) and share ownership in PT Karya Logistik Nusantara to supply green cement and sustainable solutions at IKN, as well as create business growth opportunities and expand the positive benefits of environmentally friendly development for the community.

Vita Mahreyni explained that efforts to target Blue Ocean with sustainable solutions have become part of the Road Map SIG in the long term. In addition to presenting green cement and its derivative products, SIG also continues to encourage increased operational excellence, market and price management, optimization of production and distribution networks, sustainable development, and financial management through cost efficiency and delivery programs.

In addition to growth opportunities in the domestic market, SIG is also targeting an increase in exports through a jetty development project and special type cement production facility in Tuban, East Java, which is planned for operations in 2025. The project, which is one of the realizations of SIG's strategic cooperation through its subsidiary, PT Solusi Bangun Indonesia Tbk with Taiheiyo Cement Corporation, is intended to meet export needs of a minimum of 500 thousand tons per year in the United States market.

In terms of sustainable development, until the end of the first semester of 2024, the Company continues to increase its hot energy substitution (TSR) and energy consumption efficiency so that the Intensity of Greenhouse Gas Emissions continues to decline by 19.21 percent from the 2010 baseline.

This achievement was obtained from the development of more environmentally friendly cement production (green cement), through the use of alternative fuels, digitization for resource efficiency and production optimization, and utilization of new and renewable energy (EBT).