SIG Siasati's Strategic Steps In Tight Competition For The National Cement Industry

Deputy President Director of SIG, Andriano Hosny Panangian gave a presentation at the Public Expose Live 2025, Friday, September 12. (Photo: Doc. SIG)

JAKARTA - Demand for domestic cement which has been contracting since 2024 encourages the cement industry including PT Semen Indonesia (Persero) Tbk (SIG) to take strategic steps to capture new opportunities. In Public Exposure on Friday, September 12, Deputy President Director of SIG, Andriano Hosny Panangian said that the company with the issuer code SMGR is currently focusing on three main strategies, namely increasing micro market management, cost efficiency, and optimizing cement derivative products and portfolios.

By implementing these three main strategies, SIG comes closer to understanding the needs and characteristics of customers in each region, as well as improving supply chain governance to be more effective and efficient, and contributing to increasing Company profitability.

"SIG is optimistic that the national cement industry has positive prospects, following the need for cement for 3 million houses and infrastructure development programs which are part of the government's focus. As a state-owned company, SIG is ready to make development successful in Indonesia with various innovative building materials and quality services, as well as support for a broad production and distribution network," said Andriano Hosny Panangian.

Currently, GIS has eight strong cement brands and has become market leaders in various regions in Indonesia and the region, including Semen Gresik, Semen Padang, Semen Tonasa, Dynamix, Semen Andalas, Semen Baturaja, Semen Merdeka, and Thang Long Cement. For products marketed in Indonesia, in addition to being certified by SNI and containing more than 90 percent of the domestic component (TKDN), GIS products have also obtained Green Label certificates from the Green Product Council Indonesia.

This is inseparable from the commitment to implementing sustainability principles in business and production processes, so that cement products and SIG cement derivatives such as ready-to-use concrete and precision interlock bricks have up to 38% lower carbon emissions than conventional products.

The GIS operation, which is supported by an integrated cement factory in 9 locations, a packaging plant in 27 locations, 7 cement milling factories, and 7 ports, is also strengthened by more than 350 distributors both in Indonesia and in Vietnam (TLC), as well as more than 63,000 retail stores in Indonesia. With a wide operating network, GIS optimizes digitalization and artificial intelligence (AI) in managing supply chains (supply chain management), to maintain smooth distribution and ensure the availability of building material products throughout Indonesia and the region. regional is more measurable and effective on a massive scale.

In addition to targeting increased domestic sales, SIG is also targeting the export market to optimize utilization. In the first semester of 2025, GIS managed to record a significant increase in export sales by 24.9 percent. GIS' efforts to maximize the export market will be even stronger with the support of the dock and production facilities at the Tuban Factory, East Java, whose development has entered the trial stage which will take place in March November 2025.

During the period 3 March August 14, 2025, GIS through its subsidiary, PT Solusi Bangun Indonesia Tbk (SBI), which operates the factory and dock, has successfully conducted the first phase of testing with a volume of 350 tons, as well as a trial of the second shipment of 27,415 tons to Packing Plant in Lampung and Belawan. The cement delivery test to the two packaging plant facilities was carried out using 4 ships.

The development of the dock and production facilities in Tuban is part of the collaboration between PT Solusi Bangun Indonesia Tbk and Taiheiyo Cement Corporation which aims to meet export market demand in the United States. With the ability to serve export capacity of up to 1 million tons of cement per year, this project will be an important milestone not only in strengthening distribution capacity, but also contributing to export market competitiveness and strengthening the Company's global distribution network.

Andriano Hosny Panangian added that recently PT Pemeringkat Efek Indonesia (Pefindo) emphasized that the idAAA rating was stable for GIS and Shelf-Registered Bonds I and II.

"This ranking reflects SIG's important role in the State development agenda, a strong market position from the availability of well-verified production and logistics facilities, as well as conservative financial profiles to support the Company's move to strengthen dominance in the building materials industry in Indonesia," said Andriano Hosny Panangian.