Jakarta, April 30, 2024 – PT Solusi Bangun Indonesia Tbk (“SBI”) announced the company’s financial report for the performance of Q1/2024.

Summary of Q1/2024 financial performance comparison (unaudited):

SBI President Director, Lilik Unggul Raharjo, stated that significant challenges still loom over the cement industry’s performance. Among them are the tight competition in the domestic cement market, high rainfall, a slowdown in retail market demand, and the pace of realization of construction projects, influenced by the number of holidays and the shift in public spending priorities in the first quarter of 2024.

Responding to the Q1/2024 performance, Lilik Unggul Raharjo mentioned that SBI will continue to focus on strengthening its business foundation and synergy with SIG and Taiheiyo Cement Corporation (TCC) to enhance operations and financial performance in the subsequent periods. “SBI will maintain its fundamentals and profitability through efficiency and innovation in all business processes, to support sustainable growth and provide added value to all customers and stakeholders,” emphasized Lilik Unggul Raharjo.

Apart from the domestic market challenges, the cement industry also faces uncertainties from the escalated geopolitical situation affecting commodity prices. Nonetheless, based on the growth realization in 2023, the company is optimistic that domestic market growth can reach around 3% yoy.

Lilik Unggul Raharjo stated that the second quarter is expected to be a rebound momentum from the realization of government construction projects to support PSN including IKN, which has the potential to absorb cement needs, and an increase in home ownership from the existing 12.7 million unit housing backlog supported by stimuli such as housing sector policies. This year, SBI will also complete the development project of the wharf and production facilities in Tuban, East Java, which will have potential benefits in meeting the demand for special type cement exports up to 1 million tons per year through strategic cooperation with TCC.

SBI Promotes Involvement in National Strategic Projects

In synergy with SIG, SBI has successfully maintained a strategic role in the competitive market by supplying bulk cement for several National Strategic Projects, including the Cileunyi-Sumedang-Dawuan Toll Road and Jakarta MRT Phase 2. Additionally, SBI is involved in providing ready mix concrete for Summarecon housing projects in West Java.

Recently, SBI also inaugurated a ready mix concrete facility in Subang, West Java, as an effort to expand the network of ready mix concrete product providers to support retail needs and infrastructure development by the government and private sectors in Subang and surrounding areas.

SBI’s Commitment to Promoting Sustainable Development

In terms of sustainability, SBI strengthens its commitment to sustainable development through various innovation programs, digitization, the use of alternative fuels and raw materials, and synergy with SIG.

Until Q1/2024, SBI has expanded its waste management cooperation network with various regions that are already operational, such as Cilacap Regency, Banyumas, DKI Jakarta, Sleman, and waste managers in Bali. Additionally, several other regions are still in the MoU stage, such as Aceh Province, Temanggung Regency, Magelang, Bantul, Wonosobo, and Yogyakarta City.
             This cooperation also helps SBI increase the utilization of RDF as an alternative fuel to achieve the company’s carbon emission reduction targets and contributes to sustainable development through a circular economy, such as utilizing industrial waste and biomass as alternative fuels.

Apart from active roles in development agendas, SBI maintains consistency in technology innovation, which is one of the company’s advantages to achieve efficiency and sustainable production processes, through the implementation of hydrogen injection technology in the Narogong 1 (NAR1) kiln operations and the application of advanced process control (APC) in all SBI cement plants. The implementation of these two technologies utilizes hydrogen gas, which not only increases combustion speed but also reduces waste and combustion emissions, making fuel consumption more efficient and reducing CO2 emissions. These various initiatives support the company’s efforts to present sustainable product and service solutions, one of which is eco-friendly cement (Non-OPC) that is lower in carbon to replace OPC cement, especially in large constructions and infrastructure. In 2023, SBI recorded 42.2% revenue from eco-friendly products and sustainable solutions, up 1.4% from 2022.”This step not only demonstrates our commitment to the 2030 Sustainability Road Map set by the company but also concrete efforts in supporting the Indonesian Government’s target to achieve Net Zero Emission by 2050,” said Lilik Unggul Raharjo.