Jakarta (April 30) – PT Solusi Bangun Indonesia Tbk (“SBI” or “the Company”) reported its financial performance for the first quarter of 2023 with the following comparative summary:

High inflation, driven by global recession and resulting in commodity price increases, affected a contraction of -6.5% in domestic cement market demand compared to the first quarter of 2022. The Company’s sales volume of cement and clinker also decreased by 8% to 3.1 million tons. The ready-mixed concrete business saw a significant increase in sales volume by 92% to 542 thousand m3, and aggregates rose by 32% to 203 thousand tons, driven by government-led strategic construction projects at the beginning of 2023, albeit disrupted by high rainfall.

Despite the domestic market contraction, collaborative market and pricing management with SIG as the parent company helped SBI maintain profitability and achieve an increase in revenue to Rp2.92 trillion. The increase in cost of sales, still impacted by high energy costs, especially coal, and rising fuel prices for distribution, contributed to a 16% decrease in current period profit to Rp149 billion.

Commenting on the first quarter performance, Lilik Unggul Raharjo, President Director, mentioned that despite operating in an environment of market overcapacity and high energy and distribution costs, SBI has profitability potential through efficient operations, lower interest from converting conventional debt to sustainability-linked loans, and innovation bringing innovative solutions to various customer development needs.

“The high energy costs and challenges in reducing carbon emissions can be opportunities for the cement industry to move towards more sustainable development. Government support for optimizing the use of environmentally friendly building materials will facilitate changes in how we build. Increased utilization of raw materials and alternative fuels, and the use of local components in building material production processes, to innovations in final products and services oriented towards sustainable construction. More environmentally friendly, more efficient in the long term,” he emphasized.

In executing efficient and environmentally friendly operations, SBI has implemented several decarbonization programs. In addition to using alternative fuels including refuse-derived fuel (RDF) to reduce fossil fuel use and carbon emissions in production processes, SBI is also developing a solar energy facility of up to 7Mwh with an on-grid system for factory, office, and supporting facilities operations in Tuban, East Java.

SBI also continues to be trusted by local governments for the TransJakarta bus corridor 1-14 road improvement projects, using SpeedCrete application, a rapid-setting concrete that allows roads to be reopened in just 8 hours after application. The superiority of this solution helps reduce carbon emissions caused by traffic congestion due to road closures for repairs.

In addition to sustainable solutions, SBI is also creating opportunities through the development of dock facilities and cement production facilities in Tuban, a realization of strategic cooperation between SBI and Taiheiyo Cement Corporation (TCC). The planned dock development project, capable of meeting demand for special type cement exports of around 500 thousand tons per year, will complement the Company’s ability to expand its export market reach in synergy with SIG and TCC, alongside other partnership synergies.

Tentang PT Solusi Bangun Indonesia Tbk

PT Solusi Bangun Indonesia Tbk adalah sebuah perseroan terbuka yang mayoritas sahamnya (83,52%) dimiliki dan dikelola oleh PT Semen Indonesia Industri Bangunan (SIIB) – bagian dari PT Semen Indonesia (Persero) Tbk atau SIG. Perseroan menjalankan usaha yang terintegrasi dari semen, beton siap pakai, agregat dan layanan pengelolaan limbah yang mengoperasikan empat pabrik semen di Narogong (Jawa Barat), Cilacap (Jawa Tengah), Tuban (Jawa Timur), dan Lhoknga (Aceh), dengan total kapasitas 14,8 juta ton semen per tahun, dan mempekerjakan lebih dari 2.000 orang.