The Company has established a business strategy that focuses on four pillars, namely Operational Excellence, Process & Asset Optimization, Sustainable Development, and People & Leaders. The implementation of this business strategy and its achievements in 2024 include the following:

Operational Excellence

With its four plants, the Company has the advantage of maintaining production efficiency and effectiveness, enabling it to achieve the best cost-to-serve. In 2024, the Company successfully met its targets for reducing the clinker factor, electricity and thermal energy consumption, as well as other efficiency improvements, which were continuously enhanced through TPM (Total Productivity Maintenance) activities and Industry 4.0 technological innovation.

The Company has been exporting clinker since 2020 through Tuban Jetty, with the highest loading rate reaching 15.7 thousand tons per day, and Cilacap Port, with the highest loading rate of 15.8 thousand tons per day. With the growing demand for clinker in export markets, SBI has the opportunity to increase export revenue.

Process & Asset Optimization

In 2024, the Company successfully increased profitability in its non-cement business segments through the sale of readymix concrete, aggregates and raw materials for the mineral business, while also advancing digitalization in business process.

The synergy between SBI and SIG maintained our strategic role in a competitive market by supplying bulk cement for several National Strategic Projects (PSN), including Cileunyi-Sumedang-Dawuan Toll Road and Phase 2 of the Jakarta MRT project. Additionally, the Company was involved in supplying ready-mix concrete for Summarecon’s residential projects in West Java.

Sustainable Development

Sustainability has become a core value and priority for the Company, reflecting its responsibility toward the future of the environment. The Company continues to innovate by introducing new initiatives and solutions focused on operational excellence while accelerating the transition to a green industry capable of meeting the challenges of a low-carbon economy. This has established the Company’s competitive advantage in both domestic and international markets.

In recognition of the Company’s commitment to driving the cement industry’s transition toward greater sustainability, in September 2024, the Company’s Tuban Plant became the only cement company to receive the Green Industry Award from Indonesia’s Ministry of Industry in the category of Industrial Companies with the Best Efficiency Initiatives in Green Industry Implementation.

People & Leaders

Human resources (HR) management at the Company focuses on developing agile, adaptive and innovative talents through various training and talent development programs, as well as increasing exposure through assignments in the Company's strategic projects.

Employee training covers key topics, such as corporate knowledge, functional expertise, leadership and other relevant areas. The training programs include Individual Development Program (IDP), mandatory certification, corporate programs, talent management and digital training through DiMEx Project. Through LinkedIn Learning, employees have access to training anytime and anywhere, delivered by world-class experts.

Indonesia successfully navigated 2024 with strong economic growth, supported by continued structural reforms and financial sector stability. Entering 2025, the World Bank projects Indonesia’s economic growth to reach 5.1%, up from 5.03% in 2024. Indonesia’s financial prospects remain promising, driven by economic policy reforms, digital adoption and investments in strategic sectors.

Currently, considering the high level of market competition, the Company has not yet able to disclose its financial and operational targets to the public. The Company remains committed to maintaining consistent positive performance year over year by focusing on operational efficiency, technological innovation and business diversification. In 2024, the Company managed to achieve positive results despite major challenges, including intensified competition due to overcapacity in the cement industry, fluctuations in energy and raw material prices, as well as regulatory changes. Strategic investments such as the development of jetty and production facilities as well as installation of solar panels continue to progress, while non-cement businesses such as ready-mix concrete and aggregates have shown increased profitability, with aggregates sales experiencing significant growth.

The Board of Directors, the Board of Commissioners and all elements of the Company are committed to implementing the best governance principles as a foundation for creating sustainable added value for shareholders, society at large and various other stakeholders (employees, consumers, regulators, business partners and so on) in both the short and long terms.

The Company’s commitment to consistently applying good corporate governance (GCG) is demonstrated through various corporate actions and activities that are always based on GCG principles. The Company established ethical guidelines for all personnel, outlined in the Code of Conduct. This Code of Conduct serves as a commitment to influence, shape, regulate and align behavior based on the principles of ethical sensibility, ethical reasoning and ethical conduct, ensuring consistent outcomes aligned with the corporate work culture in achieving its vision and missions.

Each year, the Company conducts GCG implementation assessment to enhance its governance standard. The evaluation criteria follow the ASEAN Corporate Governance Scorecard (ACGS), developed based on corporate governance principles issued by the OECD and the International Corporate Governance Network (ICGN). The 2024 GCG assessment, conducted by an external evaluation team from the Indonesian Institute for Corporate Directorship (IICD), resulted in a score of 89.73 points with a “Good” interpretation, an improvement from the 2023 GCG assessment score of 88.76. The assessment was based on public information disclosure, particularly in 2023 Annual Report and the Company’s website.

On November 25, 2024, the Company received “Top 50 Mid Capitalization Public Listed Company” award in the “Best Responsibility of the Board Mid Cap” category at the 15th Indonesian Institute for Corporate Directorship (IICD) Corporate Governance Conference and Award. This award recognizes the Company’s implementation of best corporate governance practices. It evaluates transparency, accountability, responsibility, independence and fairness in corporate management, as well as the Board of Directors’ role in creating sustainable value for all stakeholders.