Semen Indonesia – The largest cement producer in Southeast Asia


( Semen Indonesia, annually producing 53 million tons of cement, becomes Southeast Asia's largest producer after signing a Conditional Sales and Purchase Agreement to Holcim Indonesia.

Semen Indonesia is an Indonesian cement company established in 1957 in Gresik, with the name NV Semen Gresik. In 1991, PT Semen Gresik was the first state-owned company to go public on the Indonesia Stock Exchange. Furthermore, in 1995, PT Semen Gresik (Persero) Tbk consolidated with PT Semen Padang and PT Semen Tonasa which became known as Semen Gresik Group. On January 7, 2013, PT Semen Gresik (Persero) Tbk transformed into PT Semen Indonesia (Persero) Tbk, and acted as a strategic holding company that oversees PT Semen Gresik, PT Semen Padang, PT Semen Tonasa, and Thang Long Cement Company.

Semen Indonesia becomes Southeast Asia's largest producer after signing a Conditional Sales and Purchase Agreement to acquire 6,179,612,820 shares, or 80.6 percent of PT Holcim Indonesia's share ownership. The legally binding sales and purchase agreement worth US$917 million was signed by PT Semen Indonesia Industri Bangunan, which is a subsidiary of Semen Indonesia, on December 11, 2018.


Taking into account the increasingly competitive scenario in the national cement industry, the collaboration between Semen Indonesia and Holcim Indonesia will create a bigger and stronger footprint. Holcim Indonesia is the third-largest cement producer company in Indonesia, with four plants having an annual capacity of 14.8 million tons and 30 ready-mix facilities. The acquisition of Holcim Indonesia`s shares is viewed to help further strengthen Semen Indonesia`s position in the domestic market.


Of the annual capacity of 53 million tons of cement, the Semen Indonesia Group produces 38.2 million tons, while Holcim manufactures 14.8 million tons per year, both being the leaders in cement production in Southeast Asia.


With the Conditional Sales and Purchase Agreement, Semen Indonesia will expand its domestic network; increase product diversification; and boost efficiency, especially distribution in costs and raw materials use, while strengthening its business position with a variety of products. Semen Indonesia also provides solutions that can increase the added value of products for stakeholders.


This takeover of shares will provide additional capacity and a wider geographical range for the Semen Indonesia Group to seize opportunities in the domestic cement industry. The business scheme also strengthens the resilience of the state-owned cement industry in Indonesia.


On the other hand, the South Asian market, especially Bangladesh and Sri Lanka, had absorbed 3.2 million tons of cement of the Semen Indonesia Group, of which 2.5 million tons were directly exported from the Semen Indonesia Group factory in Indonesia and 0.7 million tons were supplied from the Semen Indonesia subsidiary in Vietnam.



Letitia Nguyen (collect and edit, source: Internet)


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