Cement producer PT Semen Baturaja (SMBR), a subsidiary of PT Semen Indonesia (SIG), managed to record positive performance in 2024 − securing Rp2.09 trillion (US$127.4 billion) in revenue, a 2.5-percent increase from the previous year (yoy) − despite pressure on domestic cement market amidst market corrections and oversupply.

SMBR Vice President of Corporate Secretary, Hari Liandu, revealed that this revenue growth was driven by an increase in cement sales volume of 2.23 million tons, growing 3.4 percent compared to the previous year which was recorded at 2.16 million tons.

Most of the revenue came from sales to related parties of Rp2 trillion (US$121 billion), while revenue from third parties was Rp62.56 billion (US$3.8 million) and revenue from non-cement product diversification was Rp18.88 billion (US$1.51 million).

Not only did SMBR record an increase in revenue, it also managed to reduce a number of operational expenses, including a reduced sales expenses by 19.5 percent from Rp200.4 billion (US$12.2 million) to Rp161.3 billion (US$9.82 million)

In addition, general and administrative expenses fell by 11.9 percent to Rp203.3 billion (US$12.3 million) from Rp230.8 billion (US$14 million), while financial expenses down by 20 percent from Rp98.6 billion (US$6 million) to Rp78.85 billion (US$4.8 million).

"The results of this efficiency strategy made SMBR record a net profit of Rp129.25 billion (US$7.8 million), up 6.3 percent compared to the previous year which was Rp121.57 billion (US$7.38 million)," Hari said in a statement as quoted on Thursday, March 27, 2025.

He cited that SMBR's positive performance was supported by a cost leadership strategy through operational excellence, which includes improving equipment performance, optimizing the supply chain, and efficiency across all operational lines.

In addition, SMBR also continues to develop new sources of income and strengthen synergies with SIG as the parent company.

On the sustainability side, SMBR has recorded an important achievement in reducing carbon emissions, which fell to 561.5 kg CO2 per ton cement equivalent (Cem) from the previous 577.4 kg CO2 per ton Cem in 2023.

SMBR's achievements in reducing carbon emissions and increasing energy efficiency also have a positive financial impact. As a recipient of the Sustainability-Linked Loan (SLL) facility, SMBR has the opportunity to get a reduction in credit interest rates from banks, thereby reducing loan interest burdens.

"Sustainability efforts not only have an impact on the environment, but also provide cost efficiency and strengthen SMBR's financial structure. We continue to innovate in environmentally friendly technology and encourage the use of renewable energy to create a sustainable cement industry," Hari said.

Currently, SMBR is planning to build a precision interlock brick production facility, as part of the green cement innovation. This measure aims to present environmentally friendly products to support sustainable infrastructure development.