The company moved swiftly to addressing some fundamental problems, increase consolidated internal and synergy between and also improve the excellence strategic for sustainability overcome business conditions 2015 which developing the dynamic and filled with challenge, so that register performance can strengthen the the growth of the company in the future. For that reason we are optimistic the efforts has been delivered it will improve the ability the company in welcoming growth opportunities which promises and give the best performance sustainable in the future.
In 2015 all industries cement entering the era of thight competition with marked have the operation production facilities the players new resulted in the increasingly of its installed capacity national. The company also observe a result of the shift consumption patterns in line with the improvement infrastructure development national .Sales growth cement of it increases 9% of last year, while sales cement packaging down 1 percent. Now composition consumption cement of to the total consumption cement to 24% or jumped 2% compared to last year. The rise in public consumption cement of has been anticipated by the company from the initiative strategic with build a distribution scattered dititik-titik national infrastructure development. Now the company has having facility distribution of packing plant and port spread across 26 location start Lhokseumawe until Sorong. Although happened retarding the rate cement domestic consumption in the middle intensity with the increasing competition , the company capable of register sales in the domestic market 2015 of 26,0 million tons. Thus, the company able to survive as market leader of the market by 43% in the domestic market, to the total income the company in 2015 is of Rp26.948 billion .
Various endeavors to the application of the initiative cost management managed to control increased costs production per ton, that even though there was an increase in tariff electricity an average of 15% , basic burden income in 2015 only increased by 5.8% .
Picture 1. Company Performance Table
Retain Optimize Performance Excellence
Macro conditions and situations competition that rises s leaving the company move quickly, with trying to addressing some fundamental problems, increase consolidated internal and synergy between and also improve the excellence strategic owned the company. The company puts forward strategy “cost leadership” by putting forward focus “cost management” through of the restraints production costs and distribution the increasing through the application of various the result of developing innovation. One inisitaif strategic the company, “Move Closer to Customer” of more close to customer is the application of “Supply Chain Management (SCM)”.
In applying SCM, the company integrating a series of business activity in along the chain of supply to create additional value for customers in the form of both products or service with used available resources in a chain the supply. The implementation of scm intended to increase income and or reduces the operational to increase the competitiveness of the company. The company tries to improve efficiency operational down intensity the use of energy, reduces the energy, reduce the cost of maintenance, optimization discharging packaging and improve the efficiency the cost of distributing to reduce its operating costs per ton to overcome slack demand and increase the competitiveness of. The company also apply conservation programs energy to more to the energy, that constitutes the principal component in production process cement. A reduction in the cost energy done to maximize were work unit “Waste Heat Recovery Power Generator (WHRPG)” in the, maximize operational power plant in tonasa and intensify the use of biomass energy and coal calories lower in producing slag. Improving the company exercise a competitive advantage to increase customer loyalty in order memitigasi competition cement maker that rises. The targets were maintain domination market to ensure sustainable growth in the long run.As part of the application of this strategy, the company trying to maximize excellence from the unit spread in three areas of strategic indonesia and possession of three brand products have rooted in the market. The prominence in market is also encouraged by the addition of facilities in the form of grinding plant and packing plant in 2015 covering Dumai, Lampung, Balikpapan, and Pontianak to meet the needs of infrastructure projects. Market share this is far above capacity share the company in 2015 at 38 % of the total national capacity. This shows that the company able to maintain competitiveness in the domestic market.
Next, consistency the application of focus strategy revenue management with an effort to obtain optimize revenue done with focus sales in areas the main market, market development potential and synergy group. However , the company still consider their market and fill market in other areas to maintain the presence of brand the company. The company also attempted to optimize income from land management former mining raw materials cement which has been developed to become an industrial area, besides optimize competence in producing bags of cement .Optimalisiasi excellence in the field of the non-semen contribute income that rises, of of Rp651,7 billion in 2014 the size of Rp793,0 billion in 2015, growing 21.7%.
Business Development to Strengthen Performance Sustainable
Taking into account various competence that had been owned so far and growing a chance, the company intensify competence efforts to use the realize line non-semen business development. The company an effort to develop some business line non-cement who still have links with cement industry, to ensure market products the company in the future. As part of efforts to the business development of this, in 2015 the company acquire 36,67% of share of PT Varia Usaha Beton (VUB) over the son business PT SGG Prima Beton (SGG PB).
SGG PB is the company controlled directly by the company. The company has targeted SGG PB can continue to grow being firm concrete leading in indonesia, good for products readymix and concrete in (precast). The action of the company aims to anticipate shift behavior consumption cement in the future. The company expect a rise in nonsemen contribution in the future along with the realization of various business development plan.
Strengthening the Sustainable Growth
The company continuing strategic many initiatives to strengthen the basis business growth sustainable.
Strategic measures central be implemented and prepared, includes:
Production capacity building: the construction of the unit new factory in the Rembang-Jawa Central and the West Sumatra which currently progress the physical development in March 2016 their respective has reached 88,34% and 86,49%.
Strengthening factors supporting: the construction cement mill, re upgrading and expansion of quarry.
Finish the packing plant in three areas marketing potential.
Melanjutkan pembangunan WHRPG di Tuban berkapasitas 30,6 MW dan meningkatkan penggunaan Alternative Fuel and Raw material (AFR).
Continue building WHRPG in Tuban with capacity us $ 30.6 MW and increase the use of an Alternative Fuel and Raw Material (AFR).
Increase the competency resources and finish ICT.
Continue programs after transformation as strategic holding.
After transformation corporate as a continuation the formation of Semen Indonesia the Center of the CHAMPS (SICC) the company trying to sharpen function pilar-pilarnya, covering dynamic learning, build center of engineering, center of research and then form International University of Sement Indonesia. The company tries to improve a key role sicc as a center excellence namely by prepared resources incompetent or best people as well as increase performance superior (excellent performance) and strengthening structure industry. To prepare best people the company forms the container of institutions development in SICC, for his center of engineering, center of research, the center of dynamic learning, and the center of knowledge management. While the pillar sicc oriented out embodied through the implementation training and consulting services and the realization the establishment of University International Semen Indonesia (UISI).
Meanwhile, in order to prepare for competence human capital to be able to actively involved in various regional and global, the company proceed with the realization various strategic initiative on the management of human resources depending competence owned. The company intensify program knowledge management through various events knowledge sharing, the innovation and the like. The company also initialize the formation of talent pool and realize training programs candidates executive the future both through learning focused in at home or delivery study duty abroad. In addition, the company trying to form culture CHAMPS to 6 mandatory values as a character everyone Semen Indonesia to conduct their their duties and obligations. The goal is to capitalize all competence the in designed wake up and innovative ability in the field of cement and activities in other related as excellence the company in developing commerce in the future by putting forward integrity as distinguishing.
A culture of innovation that has become a part of the entire activity of the company’s employees will continue to be encouraged to become one of the backbone for the improvement of the competitiveness of the company. Semen Indonesia Award on Innovation that has lasted since the year 2009 will continue to be developed so that it becomes a container that is optimal for the innovator company. The potential for innovation that reaches hundreds of milir each year will continue to be encouraged in order to be able to be implemented properly so that it can improve the efficiency and competitiveness of the company.
The company showed a commitment high to improve the quality of the application of best practice GCG with complete all softstructure and infrastructure for the implementation Governance which quality. The company will also finish on various the rules of like in accordance with the sea corporate occurring. Several programs that had been imposed to improve the quality of the application of GCG in 2015 include: the implementation of guidelines systems reporting a (Whistleblowing System Manual) recent, the Implementation of Integrated Governance, Risk & Compliance ( GRC integrated ), the completion of the preparation of the board manual the application of ethics and socialization Guidelines Current Company.
Prospects and Strategy in 2016
Economic conditions 2016 predicted to is better than in 2015. Indicators of the economy Indonesia still growing above average, and inflation awake on a low rate only 3,35% from the previous year 8,36%, has led to Bank Indonesia early this year 2016 for to drive down interest rates Bank Indonesia as many as three (3) times that is January 2016 of 7.50% to 7,25%, February 2016 dropped by 0.25% to 7,00% and March 2016 dropped by 0.25% to 6.75%.
To improve the performance of better economic, the Government has issued a package that includes deregulation and cutting bureaucracy, tax incentives, the opening some sectors to foreign investment, simplification and the investment licenses, the effectiveness of the logistics, certainty trying, and infrastructure development.
On 2016 the Government makes policy direction the acceleration of infrastructure in an effective and efficient way to support the activities of strategic sectors of economic, such as road construction, the construction of a railroad track, improvement of irrigation, and other infrastructure. Another thing that makes optimism increases is an effort to improve the investment climate that consistently implemented and monitored her an update, use of reference with investment climate state the region and developed countries as a reference. The projected economic growth of the, already sure give goods the prospect of better for persemenan industry , in the form of increasing market demand expected to grow 5%-7%. Amid forecasts still high over supply of the company must remain vigilant to maintain its performance in managing the costs and maintain operational efficiency. The company now been in a condition that was much ready to fulfil an increase in demand market. Completion of up-grading program and infrastructure development distribution including additional packing plant is expected to make competitiveness the company increased, so as to give the company a chance to win over the competition and fill opportunities growth.
The performance of the company would strongly on various and the centre of the region. Market contribution domestic cement was expected to reach 75%, while the contribution of diversification and product hilirisasi will reach 10% as well as the contribution of the export market will reach 15%. The factory excellence in the field and that is reaching aceh main market in asean and southern asia, will be utilized provides the backbone of the for the export market. A policy change the australian government in future that will close of cement factory in the country, becomes an opportunity for the company, particularly those related to the the establishment of a plant in NTT. To ensure the success of strategy in international market, so the company is preparing the establishment of the company trading international, so that it will creating balance between the fulfillment of domestic and international market .It will driven the company with four (4) market strategist: 1. The domestic market at the time of the demand side in the country very large and capacity that is entirely employed in the domestic market, 2. Domestic to International on when the current market domestic was out and there is a chance on the international market while production capacity in domestic excess, 3. International to domestic if of its installed capacity cement maker domestic not able to fulfill demand the country, 4. International to international if the situation the international market advantageous and the country is also profitable, so that the company tap the resources of trading cement of its source in foreign to sell to the international market .
Various strategy and development the company above , then PT Sement Indonesia (Persero) Tbk. will continue to grow sustainable not only dominant in the domestic market , but also on the regional market.