Three Years of Operation in Rembang, Semen Gresik Promotes Local Economy

Rembang, August 11, 2020 - The presence of PT Semen Gresik has brought positive impacts to the economy and other sectors in Rembang Regency. The contribution derives from taxes that go to the local revenue or PAD, funds for Corporate Social Responsibility (CSR) programs have lead to a domino effect, along with the activities of a leading cement company, which started to operate three years ago, exactly in mid-2017.

The Head of Leader Protocol and Communication of the Rembang Provincial Secretary, Arief Dwi Sulistya, explains that Semen Gresik’s contributions to driving various sectors in Rembang are considered significant. The unemployment rate also declines due to local labor absorption.

The community's economy grows rapidly. Various sectors of the community's businesses in the form of goods and services, both small and large scales, keep emerging. It was caused by the high mobility of various elements coupled with the growing adequacy of road infrastructure as the leading cement company operated in Rembang. Various businesses, such as food stalls, boarding houses to gas stations, appeared in Rembang–Blora highway, which leads to the PT Semen Gresik area.

Villages around Semen Gresik also feel the positive impacts through the Civil Society Forum programs which Semen Gresik allocated budget up to hundreds of millions rupiahs annually. Issues related to public facilities in the villages around the company, such as lack of adequate clean water to road infrastructure, were assisted through this program. Semen Gresik also promoted Village-Owned Enterprises or BUMDes around the company through a superior local potential empowerment program.

In addition, the poverty rate also decreased as the CSR programs of PT Semen Gresik targeted underprivileged families, such as through the house renovation program.

“Rembang Regency Government to Village Governments and the community feel the positive impacts of the domino effects of the Semen Gresik operation. Formal and informal sectors move together, thus developing the local economy,” said Arief Dwi Sulistya, on Monday (8/10/2020).

The Head of Revenue Division of Rembang Office for Management of Regional Revenue, Finance, and Asset or BPPKAD, Romli, appreciates the presence of PT Semen Gresik because Rembang Government receives a relatively high local tax from this company. Local tax is one of the pillars to finance various development in Rembang.

 

In 2019, the tax paid by Semen Gresik reached IDR26.34 billion. Despite the Covid-19 pandemic, Rembang BPPKAD estimates that Semen Gresik's contribution for this year would be the same as the previous year.

“Semen Gresik contribution reached 26.16% compared with the total local tax in 2019. The amount reached IDR100.69 billion,” said Romli.

Semen Gresik has allocated budget for CSR programs amounting to IDR51.5 billion in 2017-2019. And this year, Semen Gresik allocates IDR14.2 billion for the program. The PT Semen Gresik CSR Programs is optimized for various sectors, such as education, health, infrastructure to community empowerment.

The Head of Communication Unit and CSR Program of PT Semen Gresik, Dharma Sunyata, says that Semen Gresik would continually be committed to grow and develop with the community, as well as contribute positively to the local progress. To achieve maximum results, various programs carried out by Semen Gresik are always in synergy with the local government policies.

“The presence of Semen Gresik should bring positive impacts felt by the community and the local government," Dharma Sunyata concluded.