Three Years of SOE Transformation: SIG Continues Transformation from Cement Producer to Solution Provider for Building Materials the Pride of the Nati

The Ministry of State-Owned Enterprises (BUMN) encourages BUMN companies to transform so that they can carry out their roles as value creators and development agents, as well as provide real benefits for the state and society.

At the State Owned Enterprises (SOE) International Conference at the Bali Nusa Dua Convention Center (17-18/10), SOE Minister Erick Thohir said that since 2019 the Ministry of SOEs has continued to carry out a comprehensive SOE transformation. According to him, the current state-owned transformation has only reached 80 percent and is targeted to be completed in the next year and a half.

"Of course we will continue to carry out this transformation so that SOEs can increasingly provide maximum contributions to Indonesia and become global players," said Erick Thohir.

As one of the leading state-owned companies in Indonesia, PT Semen Indonesia (Persero) Tbk (SIG) has evolved from a cement company to a provider of building materials solutions. The transformation was marked by the change in the corporate brand and logo of Semen Indonesia to become a GIS on February 11, 2020. This transformation is in line with the spirit carried out by the Ministry of SOEs, to make BUMN companies more professional, transparent, and accountable.

The President Director of SIG, Donny Arsal said, SIG is committed to continuing its transformation with a focus on developing innovations to answer challenges in the building material field and provide solutions to all stakeholders. GIS wants to be a pioneer in the building materials industry that is able to improve people's living standards, always prioritizing sustainability strategies in every aspect of its operations, including the effective and efficient use of building materials.

Through the transformation carried out, in 2021, SIG managed to record a net profit of Rp2.021 trillion. Based on the determination of the net profit, as much as 50.66% or Rp 1.024 trillion is designated as cash dividends and 49.34% or Rp 997.190 billion is designated as other reserves. For this distribution, SIG also succeeded in being included in the top 10 state-owned companies that contributed 51.01% share dividends to the State or Rp 522.34 billion.

In addition, in August 2021, SIG has established a strategic partnership with Taiheiyo Cement Corporation (TCC). The partnership with a leading cement producer from Japan is one of the milestones in the transformation of GIS that will increase value and capability, as well as strengthen GIS' position in the competition for the building materials industry in the region.

"Every achievement is a tangible proof of us to present solutions that support the transformation process for customers, business partners, communities and countries to build sustainable lives for future generations," said Donny Arsal.

In addition to achievements in financial performance, GIS has also recorded positive results from efforts to carry out the sustainability initiatives that have been set by the Company, particularly related to decarbonization efforts. This is evidenced by the success of GIS in reducing carbon emissions. In the first semester of 2022, SIG succeeded in reducing carbon emissions by up to 592 kg CO2/ton of cement or a decrease of 2.5% (equivalent to 15 kg CO2/ton of cement) which was contributed by a decrease in clinker factor by 0.8% to 69.4% and an increase in Thermal The substitution rate (TSR) was 1.7% to 6.8%.

SIG has also released the Sustainability Framework as a step to support the Company's vision and sustainability strategy with a focus on reducing carbon emissions gradually with a target of 520 kg CO2/ton cement and a stretch target of 493 kg CO2/ton cement by 2032. This is in line with the Sustainable Development Goals. (Sustainable Development Goals/SDGs 2030) proclaimed by the government.

On the other hand, in applying the principles of ESG (environmental, social, governance), GIS has proven itself as a company that runs an inclusive business by providing benefits to the wider community. Until 2021, there are 7 million beneficiaries recorded through education, health, community empowerment, environmental, and social and economic programs.