Semen Baturaja eyes US$128 million sales in 2016 in Indonesia
Indonesian cement company Semen Baturaja is targeting a 16 percent sales increase this year to Rp 1.7 trillion (US$128 million) from Rp 1.46 trillion in 2015. Semen Baturaja corporate secretary Zulkifli Subli said the company expected to see its sales volume grow 13.8 percent to 1.75 million tons this year, up from 1.54 million tons last year. (Reported by thejakartapost.com)
“At this [growth] rate, the company will achieve this year’s revenue target,” he said after an annual shareholders meeting in Jakarta on Monday. The company booked sales of 317,166 tons of cement in the first quarter of the year, a 5 percent year-on-year increase from 302,031 tons in 2015, he continued. Focusing its business in South Sumatra, Semen Baturaja has signed contracts with several companies to build a new plant called Baturaja II in anticipation of increasing construction projects in the province.
Project developments and construction in South Sumatra continue to increase ahead of the 2018 Asian Games, including a light rail transit project, overpasses, sports facilities and hotels. Zulkifli explained that the plant construction would cost Rp 3.3 trillion, Rp 1.5 trillion of which would be borrowed from state-owned banks. The new plant is expected to begin operation in the first half of 2017, with an annual production capacity of 1.85 million tons.
To meet local demand, Semen Baturaja has signed an agreement with Kereta Api Logistics (Kalog) – a subsidiary of state-owned railway operator Kereta Api Indonesia (KAI) — to increase its cement distribution from 280 tons per day to 800 tons. (sha/ags)