Jakarta, July 31, 2024 – Amid the industry challenges throughout the first half of 2024, PT Solusi Bangun Indonesia Tbk (SBI) has undertaken efforts to strengthen its fundamentals and deliver value to shareholders and stakeholders. These efforts include dividend distribution, several initiatives to enhance operational excellence, and synergy with its parent company, PT Semen Indonesia (Persero) Tbk (SIG), in providing innovative and eco-friendly building materials for various infrastructure and housing projects in Indonesia.
SBI’s commitment to delivering value to shareholders was realized through a cash dividend payment of IDR 268.3 billion to its shareholders (ticker SMCB) on Thursday, June 27, 2024. This amount represents a 6.59% increase compared to the previous year, which was IDR 251.7 billion. The dividend distribution was approved by shareholders at the Annual General Meeting of Shareholders (AGMS) of SBI on Friday, May 31, 2024.
SBI’s President Director, Asri Mukhtar, stated that the company was able to navigate the first half of this year due to successful implementation of various efficiency programs in operational and financial management. “Despite facing significant challenges, the company successfully maintained positive profits through efficiency efforts, innovation, and strengthened synergy with SIG as the parent company, as well as Taiheiyo Cement Corporation, our strategic partner,” said Asri Mukhtar.
In addition to oversupply conditions and global geopolitical situations affecting commodity prices and inflation, the domestic cement industry challenges in the first half of this year were also influenced by the rainy season in the first quarter and many holidays in the second quarter, which shaped the financial performance targets for this period. The company reported its unaudited consolidated financial performance for the first half of 2024, summarized as follows:
- Total sales volume reached 6.3 million tons.
- Revenue amounted to IDR 5.42 trillion.
- Cost of revenue amounted to IDR 4.46 trillion.
- Gross profit amounted to IDR 961.8 billion.
- EBITDA amounted to IDR 793.7 billion.
- Profit for the period amounted to IDR 163.5 billion.
Asri Mukhtar mentioned that historically, market demand in the second half of the year is higher than in the first half, primarily due to the dry season, which is ideal for construction or repair projects. Therefore, SBI is optimistic about maintaining positive performance in the second half of 2024.
While pursuing domestic growth, SBI is also completing a jetty development project with advanced loading facilities and production facilities in Tuban, East Java, to meet an estimated stable export demand of up to 1 million tons of special-type cement, with favorable prices from the U.S. market through strategic cooperation with Taiheiyo Cement Corporation. This facility, projected to begin operations in 2025, is expected to support the company’s export growth amid the domestic cement industry’s oversupply situation.
In terms of sustainability, SBI is striving to increase the use of alternative fuels as a substitute for coal in cement production. To date, SBI has collaborated with several regions in utilizing refuse-derived fuel (RDF) from urban waste, including Cilacap and Banyumas in Central Java, Jakarta, Sleman in Yogyakarta, and waste managers in Denpasar, Bali. Meanwhile, other regions in the MoU stage include Temanggung, Magelang, and Wonosobo in Central Java, Bantul and Yogyakarta City, and Jembrana in Bali.
This collaboration supports SBI in increasing the utilization of RDF as an alternative fuel to meet the company’s carbon emissions reduction targets, while also contributing to sustainable development through the circular economy, in addition to using industrial waste and biomass.
Apart from RDF collaboration, SBI also partners with various parties, such as DKI Jakarta’s Public Works Department, for repairing major road sections and sidewalk construction projects in Jakarta, as well as highway repairs in Surabaya, using rapid-setting solutions SpeedCrete and SupeCrete, which are fast-drying, environmentally friendly concrete applications.
To further decarbonization initiatives through renewable energy sources, SBI has also initiated the use of solar panels with an installed capacity of 6.39 MWp at the Tuban Plant. This project is a large-scale rooftop solar panel pilot project implemented in a SIG subsidiary.
“This initiative not only reaffirms our commitment to the 2030 Sustainability Road Map set by the company but also serves as a concrete step in supporting the Indonesian government’s target to achieve Net Zero Emission by 2050,” explained Asri Mukhtar.
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