Facing Industrial Competition, Semen Baturaja Prepares 'Three Elephants Initiative

By : Hariyanto And Aldi Firhand. A | Sunday, September 03 2017 - 21:55 IWST

Illustration of cement industry. (Merdeka / Dwi Narwoko)
Illustration of cement industry. (Merdeka / Dwi Narwoko)

INDUSTRY.co.id - Palembang - President Director of PT Semen Baturaja (Persero) Tbk, Rahmad Pribadi said that business competition in the cement industry in the future is growing. Thus, the company needs a creative and innovative breakthrough in the face of such competition. Therefore, the company prepares three initiatives known as the 'Three Elephants Initiative'.

According to Rahmad, the strategy consists of cost leadership, Market Expansion and Business Process Streamlining. With the first initiative, cost leadership, the company targets the value of efficiency by the end of this year to reach Rp70 billion to Rp100 billion.

"We want the company not burdened so that it can push the company's performance as targeted until the end of the year," said Rahmad, Thursday (8/31/2017).

Rahmad added, efficiency is done through various steps, such as reducing clinker factor, energy savings through the use of coal with lower calories, such as 4,500-5,500 kcal per kg.

In addition, long-term coal procurement contracts until 2020 and the use of cheaper electricity tariffs.

In fact, he said, the company will also perform efficiency on distribution and logistic costs by cooperating with PT Kereta Api Logistik (KALOG) to rutek Tiga Gajah (Baturaja) station to Tegineneng Station, Lampung as far as 191 km and Pidada station, Lampung as far as 227 km.

Rahmad revealed that in Tegineneng will be prepared buffer stock warehouse, as a hub of cement distribution and the company also prepares cooperation with transportation for Palembang route and Lubuk Linggau.

Secondly, the market expansion added that the company targets the opening of new markets, such as in Jambi and Bengkulu, as sales in June are quite good, Jambi is 20,338 tons while Bengkulu 15,338 tons.

Rahmad said the third initiative is business process streamilining which aims to accelerate the decision making process.

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