JAKARTA - PT Semen Indonesia (Persero) Tbk (SMGR) is making efforts to reduce its cost of goods sold after the acquisition of HYPERLINK "https://www.idnfinancials.com/smcb/pt-solusi-bangun-indonesia-tbk" PT Solusi Bangun Indonesia Tbk (SMCB) through market integration and operational efficiency this year.
Semen Indonesia Marketing GM Johanna Daunan said that the company reduced logistics expenses by acquiring cement from the plant in Narogong, West Java. "After the acquisition, we stopped delivering cement from our East Java plant to market in West Java. It is more efficient to acquire cement from our own plant in West Java as the region is one of Indonesia's largest markets for cement utility," she said.
In addition, the company has pocketed Rp 9.3 trillion from loan facility in order to repay its debt and issue bonds worth Rp 4.9 trillion. "This has lowered our interest expenses by more than 1%. With a Rp 13 trillion loan, the interest expenses can be lowered," added Ms. Daunan. (LK/W)