Encouraging Innovation and Efficiency, SBI Maintains Positive Performance Amidst Inflation

Jakarta, March 9, 2024 – PT Solusi Bangun Indonesia Tbk (SBI) announced its audited 2023 Financial Report with the following summary:

Performance in 2023

Despite operating in a market affected by geopolitical situations and inflation causing price increases in 2023, SBI managed to maintain positive performance thanks to synergy with its parent company, PT Semen Indonesia (Persero) Tbk (SIG), recording a 3.66% increase in cement and clinker sales volume to 13.86 million tons compared to 2022.

To navigate the challenges in a competitive market and cost pressures due to rising raw material and energy prices, various innovation, efficiency programs, and synergies with SIG were implemented by SBI, allowing the company to maintain positive performance with a 6.67% increase in Net Income to Rp895 billion compared to 2022.

SBI President Director, Lilik Unggul Raharjo, said, “The 3.5% increase in domestic cement demand in 2023 indicates growth opportunities for the cement industry in 2024. To seize these opportunities, SBI will continue to focus on strengthening synergies with SIG and Taiheiyo Cement Corporation (TCC) as our strategic partner, as well as encouraging more innovation for efficiency and agility.”

Strategic steps taken by SBI for decarbonization include producing low-carbon cement, increasing the consumption of alternative fuels, installing solar panels and hydrogen injection, and implementing advanced process control (APC) for resource optimization and efficiency in cement plant operations.

“There is no other way but to keep innovating, especially regarding energy which is not only expensive but also affects the sustainability of resources on this planet. While achieving more efficient operations, these initiatives contribute to the decarbonization we have outlined in our sustainability road map to support collective efforts to reduce the impact of global warming,” emphasized Lilik.

Business Projections for 2024

Although global economic growth is still on a slowing trend due to uncertainties from geopolitical situations and commodity price volatility, Indonesia’s economic growth projection for 2024 remains strong at around 5% and is expected to drive industrial growth, including building materials, as seen in 2023.

Lilik Unggul Raharjo believes that if challenges are inevitable, SBI chooses to create opportunities. “Indonesia still has 12.7 million units of housing backlog that have not been met. Policies or stimuli from the government can make it easier for people to own homes and help absorb the production capacity of building materials better. However, it doesn’t stop there; we also need government support so that construction can be carried out sustainably. How can people use more environmentally friendly products, and infrastructure construction and supporting facilities can also be built more environmentally friendly. At SBI, we strengthen innovation based on sustainability principles, to create resilient and environmentally friendly building solutions. Resilience is not only a benefit for business but also an added value for society,” said Lilik.

In addition to sustainable solutions, SBI also strives to create opportunities through the development of docks and cement production facilities in Tuban, which is one of the realizations of strategic cooperation between SBI and TCC. To optimize the operational performance of the Tuban plant, TCC has secured a new market of 1 million tons of clinker from its global network. The planned dock development project, which is expected to meet and attract export market demand of up to one million tons of cement per year, will enhance the company’s ability to expand export market reach in synergy with SIG and TCC.