Semen Baturaja Targets Rp 1.83 Trillion Revenue

By : Hariyanto And Aldi Firhand. A | Wednesday, August 09 2017 - 15:30 IWST

Baturaja Cement

INDUSTRY.co.id - Jakarta - PT Semen Baturaja Tbk targets revenues of Rp 1.83 trillion, an increase of 20% over the previous year of Rp1.52 trillion.

"A number of strategic projects such as the light rail transit (LRT) in Palembang, which is part of the 2018 Asian Games project will be one of the factors supporting the company's target," said President Director of Semen Baturaja Tbk Rahmad Pribadi in Jakarta, Tuesday (8/8 / 2017).

He said that the company also targets an increase in sales volume this year to increase by 23% to 2,011,198 tons, compared to last year's 1,631,864 tons.

In order to face future sales challenges, the company prepares initiatives consisting of Cost Leadership, Market Expansion, and Business Process Streamlining.

Rahmad revealed that at the Cost Leadership initiative, the company targets the efficiency of the end of the year to reach Rp70 to Rp100 billion by reducing clinker factor, energy savings through low-calorie coal use, long-term coal procurement contracts until 2020, and cheaper use of electricity tariffs. "Efficiency is also done on distribution and logistics costs," he said.

Rahmad said that the company has conducted railway transportation with PT KALOG (Railway Logistics) to route Tiga Gajah Station (Baturaja) to Tegineneng (Lampung) Station as far as 191 Km, Pidada (Lampung) as far as 227 Km and Lubuklinggau (South Sumatra) As far as 322 Km.

"In Tegineneng and Lubuklinggau will also be prepared warehouse 'buffer stock' as distribution hub cement," he said.

While the Market Expansion initiative, Rahmad added, the company is targeting the opening of new markets such as in Jambi den Bengkulu. As of June this year, sales in Jambi and Bengkulu have grown by 54% and 29%.

While the Business Process Streamlining initiative aims to accelerate decision-making. Semen Baturaja is optimistic that the performance will improve in line with the presence of Baturaja II Factory with a production capacity of 1.85 million tons per year and the company's total cement production capacity to increase to 3.85 million tons of cement per year.