Semen Gresik Records Positive Performance in 2020
Rembang, March 17, 2021- Confronting challenging economic and business conditions in addition to declining demand for cement in the domestic market, PT Semen Gresik has managed to record a positive net profit throughout 2020. The positive performance was only corrected by 1.7% compared to the previous year.
Although the Company's revenue decreased compared to the previous year, the net profit margin of this subsidiary of PT Semen Indonesia Tbk actually increased from 10.21% to 11.66% in 2020. It indicates that the Company's operational excellence is getting better and more efficient amid the declining trend of cement consumption in the domestic market due to the Covid-19 pandemic.
The Head of the Communication and Law Department of Semen Gresik, Gatot Mardiana, explained that the decline in demand for cement products due to the Covid-19 pandemic was the major challenge that PT Semen Gresik (hereinafter referred to as SG) faced in 2020. Nevertheless, SG has improved its operational excellence, among others, by implementing cost leadership. This way, the Company was able to increase its net profit margin.
Various steps, Mardiana said, had been taken to realize the Company's operational excellence. Since 2020, the Company has started to implement a plant expert system in cement mills and raw mills to implement the Industrial Revolution 4.0 that relies on advanced technology.
''This fully automated system allows remote operation. This system also has a significant impact on production cost efficiency," said Mardiana in his release, Wednesday (03/17).
Aiming to realize cost leadership, in 2020, the Company also selectively implemented policies related to spending or budget expenditures to generate capital that increased fixed assets and inventory. Any expenditure to increase assets was only allocated for mandatory and urgent operational interests of the Company.
In 2021, Mardiana continued, SG is optimistic about being able to compete in meeting and adapting to the global demands and trends of the cement industry with the provision of comparative advantages, namely innovative concepts, technological sophistication, and proper operations in environmental sustainability to meet the demand for green-labeled or environmentally-friendly cement.
"Environmentally friendly and efficient products are some of the Company's strategy to win the competition," he said.
According to him, the Company will relentlessly implement strategic steps to make the cost, quality, capacity, and reliability the main references in performing the Company's operational excellence to overcome the upcoming challenges in 2021.
