JAKARTA. Donny Arsal, President Director of PT Semen Indonesia Group Tbk (SIG) (Ticker Code: SMGR) won the Best CEO in Construction Materials (The Largest Market Share) from Tempo.co and IDNFinancials. The event, which took place last Friday (1/12) at Sofitel Hotel, Nusa Dua, Bali was attended by no less than 100 CEOs of public companies.

 

Donny was granted this award due to his leadership, which enables SIG to dominate more than 50% of the market share in Indonesia in Q3 2023. The company has the largest and most extensive cement production and distribution facilities in Indonesia, including integrated cement factories in 9 locations, packaging factories in 26 locations, 8 cement grinding factories, 7 ports, 385 distributors and more than 70,000 retail stores.

"So, we can say that the Company has a very extensive distribution network for building materials to be able to reach all regions in Indonesia, faster than competitor, and with the most efficient costs. This is a competitive advantage that we will leverage to maintain or expand market share and promote business sustainability as the largest building materials solutions provider in Indonesia," said Donny in a written answer to IDNFinancials a couple of weeks ago.

With this advantage in the distribution network, SIG will also be the best alternative to form a partner with, for global building material companies or technology companies that aim to expand  their markets in Indonesia.

Although the Company's performance appears to be recovering, growth in revenue is relatively slow and cannot yet match the revenue obtained before the pandemic. SMGR's total revenue in 2019 reached IDR 40.37 trillion, and in December 2022, the total revenue reached IDR 36.38 trillion. Meanwhile, net profit in 2022 has nearly matched the position before the pandemic, amounting to IDR 2.36 trillion, compared to IDR 2.39 trillion. This slow growth is in line with the condition of the cement market in Indonesia, which is currently over-supplied.

From a sustainability perspective, Donny emphasized that SIG supports the concept of sustainable finance, which not only pursues economic profits but also pays attention to social aspects and environmental sustainability or ESG (Environmental, Social, Governance). "This support is reflected in the Company's 3 pillars of sustainability, consisting of encouraging sustainable solutions and innovation, protecting the environment, and creating value for employees and the community," said Donny in a written answer to IDNFinancials.com recently.

To realize the second pillar, environmental protection, SIG has established a number of strategies which include: reducing greenhouse gas (CO2) emissions, utilizing renewable resources (based on waste) as alternative raw materials and fuel, significantly reducing air emissions (dust emissions), continuous monitoring, increasing water efficiency by reducing water withdrawals, and protecting biodiversity in operational areas.

Due to its commitment in ESG, SIG received a syndicated Sustainability Linked Loan (SLL) credit from 12 (twelve) banks as creditors on December 19, 2022. The SLL is intended for refinancing existing syndicate loan and does not increase debt. Apart from being SIG's commitment to decarbonization initiatives, SLL also provides the benefit of reducing interest margins compared to existing syndicate loan with better terms. SLL's syndicate loan itself is part of the Sustainability Framework series, which was released by SIG on October 14, 2022.

Arsal further explained that SLL become one of several vital aspects in demonstrating its commitment in ESG issues, allowing SIG to increase its ESG Score and investor trust and exposure. SLL is also a SIG initiative within the framework of the decarbonization program, especially to mitigate Transition Risk in the TCFD.

SIG has also established a Sustainability Road Map, one of the focuses of which is on gradually reducing carbon emissions with a target of 515 kg CO2/ton of equivalent cement in 2030. The target for reducing carbon emissions is determined by reducing clinker factor, increasing heat substitution from alternative fuels, and optimisation of specific thermal energy consumption.

These various initiatives not only contribute to reducing carbon emissions, but also create positive impact on cost efficiency and increase the Company's profitability.

Arsal further said that the cement industry will be increasingly difficult in the future. However, companies should not just stay in the red ocean by relying on cement, but rather move towards the blue ocean.

"We must dominate the red ocean, develop the blue ocean business, strengthen operational excellence , as well as carrying out integration and synergy across all company lines, down to the subsidiary level," he stressed. Companies also need to seek innovative and massive diversification of solutions, opening new markets in order to keep up with the intense competition in the cement industry.

Within the group, Donny also emphasised the importance of cooperation or collaboration between work units, between holdings and subsidiaries, as well as fellow subsidiaries, to jointly increase EBITDA contribution and create opportunities that contribute to the company's growth.

Due to a number of his achievements, it is only fitting to see Donny Arsal winning the prestigious award for his achievements and success in leading the company in the financial aspect and impact on the environment (social impact).

This appreciation is carried out following meticulous data collection and research, including data in the financial and sustainability report, as well as virtual and face-to-face meeting with nominated CEOs.

This award also includes a talk show titled Towards Indonesia Emas 2045, featuring 4 CEOs of renowned companies, as speakers. They are Irfan Setiaputra, CEO of PT Garuda Indonesia Tbk; David Hidayat, CEO of PT Industri Jamu dan Farmasi Sido Muncul Tbk; Christian Kartawijaya, CEO of PT Indocement Tunggal Prakarsa Tbk; and Nicolas D. Kanter, CEO of PT Aneka Tambang Tbk. (AM/ZH)

Donny Arsal won The Best CEO In Construction Materials, The Largest Market Share

JAKARTA. Donny Arsal, President Director of PT Semen Indonesia Group Tbk (SIG) (Ticker Code: SMGR) won the Best CEO in Construction Materials (The Largest Market Share) from Tempo.co and IDNFinancials. The event, which took place last Friday (1/12) at Sofitel Hotel, Nusa Dua, Bali was attended by no less than 100 CEOs of public companies.

Donny was granted this award due to his leadership, which enables SIG to dominate more than 50% of the market share in Indonesia in Q3 2023. The company has the largest and most extensive cement production and distribution facilities in Indonesia, including integrated cement factories in 9 locations, packaging factories in 26 locations, 8 cement grinding factories, 7 ports, 385 distributors and more than 70,000 retail stores.

"So, we can say that the Company has a very extensive distribution network for building materials to be able to reach all regions in Indonesia, faster than competitor, and with the most efficient costs. This is a competitive advantage that we will leverage to maintain or expand market share and promote business sustainability as the largest building materials solutions provider in Indonesia," said Donny in a written answer to IDNFinancials a couple of weeks ago.

With this advantage in the distribution network, SIG will also be the best alternative to form a partner with, for global building material companies or technology companies that aim to expand  their markets in Indonesia.

Although the Company's performance appears to be recovering, growth in revenue is relatively slow and cannot yet match the revenue obtained before the pandemic. SMGR's total revenue in 2019 reached IDR 40.37 trillion, and in December 2022, the total revenue reached IDR 36.38 trillion. Meanwhile, net profit in 2022 has nearly matched the position before the pandemic, amounting to IDR 2.36 trillion, compared to IDR 2.39 trillion. This slow growth is in line with the condition of the cement market in Indonesia, which is currently over-supplied.

From a sustainability perspective, Donny emphasized that SIG supports the concept of sustainable finance, which not only pursues economic profits but also pays attention to social aspects and environmental sustainability or ESG (Environmental, Social, Governance). "This support is reflected in the Company's 3 pillars of sustainability, consisting of encouraging sustainable solutions and innovation, protecting the environment, and creating value for employees and the community," said Donny in a written answer to IDNFinancials.com recently.

To realize the second pillar, environmental protection, SIG has established a number of strategies which include: reducing greenhouse gas (CO2) emissions, utilizing renewable resources (based on waste) as alternative raw materials and fuel, significantly reducing air emissions (dust emissions), continuous monitoring, increasing water efficiency by reducing water withdrawals, and protecting biodiversity in operational areas.

Due to its commitment in ESG, SIG received a syndicated Sustainability Linked Loan (SLL) credit from 12 (twelve) banks as creditors on December 19, 2022. The SLL is intended for refinancing existing syndicate loan and does not increase debt. Apart from being SIG's commitment to decarbonization initiatives, SLL also provides the benefit of reducing interest margins compared to existing syndicate loan with better terms. SLL's syndicate loan itself is part of the Sustainability Framework series, which was released by SIG on October 14, 2022.

Arsal further explained that SLL become one of several vital aspects in demonstrating its commitment in ESG issues, allowing SIG to increase its ESG Score and investor trust and exposure. SLL is also a SIG initiative within the framework of the decarbonization program, especially to mitigate Transition Risk in the TCFD.

SIG has also established a Sustainability Road Map, one of the focuses of which is on gradually reducing carbon emissions with a target of 515 kg CO2/ton of equivalent cement in 2030. The target for reducing carbon emissions is determined by reducing clinker factor, increasing heat substitution from alternative fuels, and optimisation of specific thermal energy consumption.

These various initiatives not only contribute to reducing carbon emissions, but also create positive impact on cost efficiency and increase the Company's profitability.

Arsal further said that the cement industry will be increasingly difficult in the future. However, companies should not just stay in the red ocean by relying on cement, but rather move towards the blue ocean.

"We must dominate the red ocean, develop the blue ocean business, strengthen operational excellence , as well as carrying out integration and synergy across all company lines, down to the subsidiary level," he stressed. Companies also need to seek innovative and massive diversification of solutions, opening new markets in order to keep up with the intense competition in the cement industry.

Within the group, Donny also emphasised the importance of cooperation or collaboration between work units, between holdings and subsidiaries, as well as fellow subsidiaries, to jointly increase EBITDA contribution and create opportunities that contribute to the company's growth.

Due to a number of his achievements, it is only fitting to see Donny Arsal winning the prestigious award for his achievements and success in leading the company in the financial aspect and impact on the environment (social impact).

This appreciation is carried out following meticulous data collection and research, including data in the financial and sustainability report, as well as virtual and face-to-face meeting with nominated CEOs.

This award also includes a talk show titled Towards Indonesia Emas 2045, featuring 4 CEOs of renowned companies, as speakers. They are Irfan Setiaputra, CEO of PT Garuda Indonesia Tbk; David Hidayat, CEO of PT Industri Jamu dan Farmasi Sido Muncul Tbk; Christian Kartawijaya, CEO of PT Indocement Tunggal Prakarsa Tbk; and Nicolas D. Kanter, CEO of PT Aneka Tambang Tbk. (AM/ZH)