{"id":457,"date":"2025-03-05T05:43:18","date_gmt":"2025-03-04T22:43:18","guid":{"rendered":"https:\/\/solusibangunindonesia.com\/?page_id=457"},"modified":"2026-01-22T11:10:51","modified_gmt":"2026-01-22T04:10:51","slug":"directors-report","status":"publish","type":"page","link":"https:\/\/solusibangunindonesia.com\/en\/directors-report\/","title":{"rendered":"Report of the President Director"},"content":{"rendered":"
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Report of the President Director<\/p>\n<\/div><\/div>\n\n

Despite facing significant global and domestic challenges, Indonesia's economy maintained stable growth throughout 2024. The Statistics Indonesia announced that Indonesia\u2019s economic growth for 2024 was 5.03%, slightly below 2023 achievement of 5.05% and lower than 2024 state budget target of 5.2%.<\/p>\n

The national cement industry continued to face various challenges. Intense competition in the domestic market, high rainfall at the beginning of the year, a slowdown in retail market demand and delays in the realization of construction projects due to numerous holidays and shifting consumer spending priorities; all contributed to the industry\u2019s struggles. In addition to domestic market challenges, the cement industry also faced uncertainty stemming from escalating geopolitical tensions, which influenced commodity prices.<\/p>\n<\/div><\/div>\n<\/div>\n\n

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Performance Journey<\/h5>

The high surplus supply condition also remained a major challenge. Currently, the installed capacity of the national cement industry stands at 119.9 million tons per year. However, since 2017, cement plant utilization has never reached 70%. In 2024, industry utilization reached 56.5%, slightly higher than in 2023 but still lower than the pre-pandemic utilization rate of around 65% in 2019.<\/p>\n

Domestic cement sales volume in 2024 reached 64.9 million tons, decreased 0.9% compared to 65.5 million tons in 2023. The key factors influencing cement sales included weakened consumer purchasing power, a slowdown in government infrastructure development both in Java and other regions, including the IKN project in East Kalimantan, as well as the property sector demand that had not yet fully recovered.<\/p>\n<\/div><\/div>\n\n

Business Strategy Initiative<\/h5>

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:<\/p>\n

Operational Excellence<\/em><\/p>\n

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. <\/p>\n

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.<\/p>\n

Process & Asset Optimization<\/em><\/p>\n

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.<\/p>\n

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\u2019s residential projects in West Java.<\/p>\n

Sustainable Development <\/em><\/p>\n

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\u2019s competitive advantage in both domestic and international markets.<\/p>\n

In recognition of the Company\u2019s commitment to driving the cement industry\u2019s transition toward greater sustainability, in September 2024, the Company\u2019s Tuban Plant became the only cement company to receive the Green Industry Award from Indonesia\u2019s Ministry of Industry in the category of Industrial Companies with the Best Efficiency Initiatives in Green Industry Implementation.<\/p>\n

People & Leaders <\/em><\/p>\n

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.<\/p>\n

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.<\/p>\n<\/div><\/div>\n\n

Prospects and Innovations in Facing Business Challenges<\/h5>

Indonesia successfully navigated 2024 with strong economic growth, supported by continued structural reforms and financial sector stability. Entering 2025, the World Bank projects Indonesia\u2019s economic growth to reach 5.1%, up from 5.03% in 2024. Indonesia\u2019s financial prospects remain promising, driven by economic policy reforms, digital adoption and investments in strategic sectors.<\/p>\n

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.<\/p>\n<\/div><\/div>\n\n

Application of GCG Principles in Every Business Operation<\/h5>

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.<\/p>\n

The Company\u2019s 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.<\/p>\n

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 \u201cGood\u201d 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\u2019s website.<\/p>\n

On November 25, 2024, the Company received \u201cTop 50 Mid Capitalization Public Listed Company\u201d award in the \u201cBest Responsibility of the Board Mid Cap\u201d category at the 15th Indonesian Institute for Corporate Directorship (IICD) Corporate Governance Conference and Award. This award recognizes the Company\u2019s implementation of best corporate governance practices. It evaluates transparency, accountability, responsibility, independence and fairness in corporate management, as well as the Board of Directors\u2019 role in creating sustainable value for all stakeholders.<\/p>\n<\/div><\/div>\n\n

Changes in the Composition of the Board of Directors<\/h5>
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Based on the decision of the AGM on Dec 5, 2025, regarding changes to the Company's management as follows:<\/p>\n

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  1. Confirming Ainul Yaqin's resignation, effective December 1, 2025.<\/li>\n
  2. Appointing Rizki Kresno Edhie Hambali as President Director of PT Solusi Bangun Indonesia Tbk.<\/li>\n<\/ol>\n

    Maka komposisi Direksi Perseroan pada 5 Desember 2025 adalah sebagai berikut:<\/p>\n