new go beyond expectations - sig · 2020. 5. 29. · the public 35%. in 15 september 1995, pt semen...

Annual Report

PT Semen Indonesia (Persero) Tbk 2019

GO BEYOND EXPECTATIONS

This Annual Report includes statement of financial positions, results of

operations, projections, plans, strategies, policies, and objectives of the

Company, which are classified as forward-looking statements in terms of

implementation of prevailing laws, except for historical matters. These

statements contain the prospect of risks, uncertainties and may resulted

in actual development materially different from what has been reported.

Prospective statements in this Annual Report are based on various

assumptions of the current state and the Company’s condition in the

future, including the business environment in which the Company

operates its business activities. The Company does not guarantee that

these valid documents will deliver results in accordance with current

expectations.

This Annual Report refers to PT Semen Indonesia (Persero) Tbk as "the

Company", "SIG" and "Semen Indonesia", carrying out business activities

in the cement industry. This Report also contains the word "Group", which

represents the Company's performance on a consolidated basis. The unit

currency denomination of "Rupiah", "Rp", and "IDR" refers to the official

currency of the Republic of Indonesia, while "US Dollar" or "USD" refers

to the official currency of the United States. All financial information is

presented in Rupiah.

Disclaimer and Limitation of Liability

This Report is presented in two languages, Indonesian and English, which

are published separately. Both books are printed using easily readable font

and sizes, and made of good quality. This Annual Report is also available

in and can be downloaded from the official website of Semen Indonesia,

www.SIG.id.

SIG understands that we must be flexible, agile, and brave enough to adapt to

market changes and remain one step ahead in facing a more competitive market.

We are currently transforming from a cement producer into the largest building

material solution provider in the region. This epic move requires stronger synergy

and consolidation with our subsidiaries. We believe that this is the right strategy

to strengthen the Company's fundamentals, to be the best market leader and

contribute to the nation’s economic development.

Go Beyond Expectations

2019 Highlights

In 2019 we completed the acquisition process of PT Holcim Indonesia Tbk to strengthen our new Vision

Installed Capacity

53 millionTons/Year

Integrated Cement Plants

Ports

Locations

Grinding Plants

Packing Plants

8

632

9

7

SIG Vision:

Leading Building Material Solution Provider in the Region 1

53.4%

Cement Producer inSoutheast Asia

Indonesian Market Share

#

Global Cement Manufacturers(Production Capacity)

20Top #

6Cement Brands• Semen Gresik• Semen Padang• Semen Tonasa• Dynamix• Semen Andalas• Thang Long Cement

Concrete Product Innovation & Solutions

10 Business Support Services

• Logistics

• Readymix Concrete Manufacture

• Building Material Trading

• Mining Services

• Packaging Manufacture

• Industrial Estate

• Property

• Information Technology

• Waste Management

• International Trading

ThruCrete

SpeedCrete

DecoCrete

2019 Highlights

Social and Sustainability

kgCO2/tons of cement equivalent

634

39,578 Fostered Partners

72,620 Beneficiaries

Waste reused as alternative raw materials and fuels

Million Tons1.8

Reduce to

Decrease 10% from

708 kg CO2/tons

cement equivalent

(2010 baseline)

Increase

63% from

1.1 million tons

(2010 baseline)

Semen Indonesia at a Glance

PT Semen Indonesia (Persero) Tbk,

previously named PT Semen Gresik

(Persero) Tbk, is a company engaged

in the cement industry. Inaugurated

in Gresik in 7 August 1957 by the first

President of the Republic of Indonesia

with an installed capacity of 250,000

tons of cement per year.

In 17 September 1998, the Government sold its stake in the

Company by 14% through an open tender won by Cemex SA

de CV, a global cement company based in Mexico. The share

ownership composition changed into: the Government of Indonesia

51%, Public 35% and Cemex 14%. Then in 30 September 1999, the

share ownership composition changed again into: the Government

of Indonesia 51.01%, Public 23.46% and Cemex 25.53%.

At the end of March 2010, Blue Valley

Holdings PTE Ltd. sold all of its shares

through a private placement. The

Company’s shareholders composition

changed into: Government of Indonesia

51.01% and public 48.99%. In April 2012,

the Company successfully completed

the construction of Tuban IV Plant

with a capacity of 2.5 million tons.

After commissioning, the plant was

handed over from project on July 2012,

followed by the commercial operations

inauguration in October 2012.

Furthermore, in the

third quarter of 2012,

the Company also

successfully completed

the construction of Tonasa

V plant in Sulawesi. The

commissioning of the new

plant with capacity of 2.5

million tons was carried

out since September 2012

and began the commercial

operation in the first

quarter of 2013.

In 18 December 2012 the

Company officially took

over 70% shares of Thang

Long Cement Joint Stock

Company (TLCC) from Hanoi

General Export-Import Joint

Stock Company (Geleximco)

in Vietnam, with a capacity

of 2.3 million tons. This

corporate action has made

the Company the first

multinational SoE public

company in Indonesia.

On 31 January 2019, the Company officially took over

80.6% shares of PT Holcim Indonesia Tbk (Holcim) from

LafargeHolcim Ltd. Through this acquisition, the Company

became one of the largest cement producers in Southeast

Asia with an installed capacity of 53 million tons per year.

The Company also changed the name of PT Holcim

Indonesia Tbk to be PT Solusi Bangun Indonesia Tbk (SBI)

and changed its brand from Holcim to Dynamix

In 27 July 2006 the shares of

Cemex Asia Holdings Ltd. Was

sold to Blue Valley Holdings PTE

Ltd., thus the share ownership

composition changed into:

Government of Indonesia 51.01%,

Blue Valley Holdings PTE Ltd.

24.90% and Public 24.09%.

In 8 July 1991, Semen Gresik was listed in the

Jakarta Stock Exchange and Surabaya Stock

Exchange (now the Indonesia Stock Exchange) and

became the the first SOE to go public by releasing

its 40 million shares to the public. The shareholders

composition changed to: Government of Indonesia

73% and the public 27%.

In September 1995, the Company conducted the

first Right Issue, which altered the share ownership

composition to: Government of Indonesia 65% and

the public 35%. In 15 September 1995, PT Semen

Gresik consolidate with PT Semen Padang and

PT Semen Tonasa. The total installed capacity of the

Company at that time amounted to 8.5 million tons

of cement per year.

On 20 December 2013,

the Company signed the

deed of establishment of

Joint Venture Company

named PT Krakatau

Semen Indonesia (KSI)

which will build waste

management plant to

produce slag powder

as the alternative raw

material for cement

manufacturing.

On 24 December

2013, the Company

continued

the corporate

transformation

process and

strengthen the role

of Strategic Holding

function through the

establishment of a

new subsidiary,

PT Semen Gresik.

Starting in 2014, the Company

built two new plants in Padang

and Rembang, which then

followed by a decision to

realize the construction of

a new plant in Aceh. The

Company also build the

Ground Granulated

Blast Furnace Slag Plant in

Cigading through PT Krakatau

Semen Indonesia.

In 2016, the Company established

PT Semen Indonesia International

(SII), PT Semen Indonesia Aceh (SIA)

and PT Semen Kupang Indonesia

(SKI), as well as changed the name

of PT SGG Prima Beton to PT Semen

Indonesia Beton (SIB) as part of the

expansion plans in cement and non-

cement sector.

In 2017, the Company established a joint venture company

in building material sector named PT Semen Indonesia

Industri Bangunan (SIIB). This company is a form of effort

to capture growth opportunities of the building materials

industry, which can be a new source of growth while

improving the synergies among subsidiaries. In addition,

the Company's two new plants, the Rembang Plant in

Central Java and the Indarung VI Plant in West Sumatra,

started their commercial operation with 3 million tons of

capacity per year for each plant.

On 20 December

2012, the Company

was officially act as

Strategic Holding

Company and at the

same time change its

name from PT Semen

Gresik (Persero) Tbk to

PT Semen Indonesia

(Persero) Tbk. The date

of 7 January 2013 was

marked as the date of

the establishment of

the Company.

Milestones

1999

Cemex became a strategic

partner with share

ownership of 14.0%. The

share ownership structure

of the Company changed

to:

• Government of

Indonesia: 51%

• Public: 23.5%

• Cemex: 25.5%

The market capitalization

value reached Rp6.6

trillion.

2006

Blue Valley Holdings

acquired SMGR shares

from Cemex, the

capitalization value:

Rp21.5 trillion.

Shareholders:

• Government of

Indonesia: 51%

• Public: 24.1%

• Blue Valley: 24.9%

2010

Blue Valley Holding

sold its entire shares

of SMGR. The market

value in April, 2019

amounted to Rp72.31

trillion. Shareholders:

• Government of

Indonesia: 51%

• Public: 49%

2012

Capitalization of

Rp94 trillion as of

31 December 2012,

installed production

capacity of 28.5 tons

per year.

Completion of the

construction of 2

cement plant units.

Acquisition of Thang

Long Cement Joint

Stock Company (TLCC)

in Vietnam.

Becoming a Strategic

Holding Company and

changed its name to

PT Semen Indonesia

(Persero) Tbk.

2013

Established PT Krakatau

Semen Indonesia, a

waste management Joint

Venture Company to

produce slag powder as

raw material for cement

production. Followed

by the establishment

of PT Semen Gresik

as the next step in the

process of corporate

transformation.

2014

Initiated construction phase of a

new plant’s in Rembang and Padang

(Indarung VI).

Established PT Sinergi Informatika

Semen Indonesia (SISI)

2016

Established PT Semen

Indonesia International (SII),

PT Semen Indonesia Aceh

(SIA) and PT Semen Kupang

Indonesia (SKI) and changed

the name of PT SGG Prima

Beton to PT Semen Indonesia

Beton (SIB) as part of the

expansion plans in the field of

cement and non-cement.

1957

Inauguration year of

the Company has a

production facility

with a capacity of

250,000 tons per

year (designated

capacity).

1991

The Company’s Initial

Public Offering (IPO),

market capitalization

value: Rp0.63 trillion.

The Company’s

ownership structure:

• Government of

Indonesia: 73%

• Public: 27%

1995

The acquisition of

domestic cement

companies, PT Semen

Padang (Persero) and

PT Semen Tonasa

(Persero).

1998

Cemex become a strategic

partner with share ownership

of 14.0%. The share

ownership structure of the

Company changed to:

• Government of Indonesia:

51%

• Public: 35%

• Cemex: 14.0%

The market capitalization

value reached Rp4.9 trillion.

2017

Established a joint venture in the building

material sector, PT Semen Indonesia

Industri Bangunan (SIIB), to capture

growth opportunities in the building

materials industry as a new source

of growth and increase the synergy

between subsidiaries.

Commercial operations of Rembang

Plant in Central Java and Indarung VI

Plant in West Sumatra with the capacity

of 3 million tons per year for each plant.

2019

Acquired 80.64% shares of PT Holcim Indonesia Tbk owned

by Holdervin B.V. on 31 January 2019 through its subsidiary,

PT Semen Indonesia Industri Bangunan, and became the

majority shareholder of PT Holcim Indonesia Tbk.

Changed the name of PT Holcim Indonesia Tbk to

PT Solusi Bangun Indonesia Tbk (SBI).

Conducted a Mandatory Tender Offer, thus the share

ownership of PT Solusi Bangun Indonesia Tbk (SBI)

increased to 98.3%.

Changed Holcim brand to Dynamix.

Logo Interpretation

In early 2020, Semen Indonesia carried out a corporate rebranding.

As a part of it, the Company also changed its logo.

In accordance with the Company’s

new vision "Leading Building Material

Solution Provider in the Region",

the Company decided to undertake a

rebranding after several considerations,

among others

• an increasingly competitive business

environment

• the Company's stakeholders image and

perception of the Company

• to establish and reinforce the vision,

mission and new values of the brand

in order to represents the Company's

growing services or products.

Rebranding was conducted to change the

brand positioning and reaffirms the new

vision of Semen Indonesia. Historically,

Semen Indonesia was the backbone of the

national development and has a reputation

as a leader of the cement industry in

Indonesia. Currently, Semen Indonesia is

continuing its steps to become a company

that inspires our stakeholders to create

sustainable living or a better life in the

future, and transformed into SIG.

SIG wants to realize its vision to be

the leading building material solution

provider in the region by providing a

variety of products with complete service

and quality. Aligned with this vision, SIG’s

corporate brand represents several points

the Company wants to achieved:

• SIG wants to be a leader (trendsetter) in

the building materials industry.

• SIG wants to be a leader in providing

innovative, advance and value-added

building materials solutions.

• SIG wants to be a recognized brand

and sought after by all stakeholders for

its good quality and values.

GoBeyondNe t

Introducing the New Face and Spirit:

Brand Identity

The concept of our corporate identity (logo) derives from the triangleshape with 45o angle and the strong base, represents a sharp focus and

orientation towards advancement with strong foundation.The logo is formed by 9 straight lines, as the number 9 represents

the best number.

Black Color

As the strongest neutral color, black isa symbol of elegant strength.

Black also represents an absolute willpower.

Red Color

Represents courage and leadership, red is a symbol of determination, passion, and real action. Red also represents the important color for Indonesians.

Upward Direction:Represents growth & continuous improvement

Sharp Angle (On Top):Represents SIG’s focus on detailed approach.

The Edge of the Arrow:Represents SIG whose always

moving forward

Wide Base:Represents a foundation which

provide protection and attention to the Company

Philosophy of the Company’s Logo and Name

8 2

7 3

6

5

19

4450

3Company

Profile

TABLE OF CONTENTS

Management Discussion and

Analysis

2

4

Management Report

20 Financial Highlights

22 Operational Highlights

23 Share Highlights

23 Quarterly Share Performance

23 SMGR Share Price and Volume Compared to JCI at IDX

23 Shareholders Composition

23 Share Trading Sanctions

23 Corporate Actions

24 Event Highlights

33 Report from the Board of Commissioners

36 The Board of Commissioners

39 Report from the Board of Directors

42 Directors

46 Company Identity

47 Line of Business

48 Products and Services

52 Operational Areas

54 Vision and Mission

55 Corporate Culture

56 Organization Structure

58 The Board of Commissioners’

Profile

62 The Board of Directors’ Profile

67 Shareholders’ Structure and

Composition

68 Controlling Shareholders’

Profile

69 Chronology of Issuance and/or

Listing of Shares

70 Chronology of Issuance and/or

Listing of Other Securities

72 Subsidiaries

74 Corporate Group Structure

76 Supporting Institutions and

Professionals

78 Company Website Information

80 Awards and Certifications

84 Human Resources

96 Economy and Industrial Overview

99 Operational Overview

111 Financial Overview

1Financial and

Operational Highlights

5

6

7

Corporate Social

Responsibility

Consolidated Financial

Statements

256 Commitment of Corporate

Social Responsibility

Implementation

257 Vision and Mission of Semen

Indonesia’s CSR

258 2024 Commitment to

Sustainability

260 Environmental Conservation

Responsibility

266 Social Responsibility for Labour

and Occupational Health &

Safety

270 Social Responsibility for

Community Development

275 Product and Customer

Responsibility

280 2019 Annual Reporting Liability

285 Consolidated Financial Statements

381 Cross References

Good Corporate Governance

144 The Company’s Commitment

and Policy on Corporate

Governance Implementation

and The Results

146 Quality Improvement of

the Corporate Governance

Implementation

149 Corporate Governance Structure

and Mechanism

151 General Meeting of Shareholders

163 The Board of Commissioners

170 Independent Commissioners

172 The Board of Directors

184 Performance Assessment of the

Board of Commissioners and

Directors

187 Policy on Diversity of the Board

of Commissioners and Directors

190 Policy on Remuneration of the

Board of Commissioners and

Directors

192 Meetings of the Board of

Commissioners and Directors

202 Supporting Organs of the Board

of Commissioners

202 Audit Committee

208 Nomination & Remuneration and

CSR Committee

214 Strategy, Risk Management and

Investment Committee

219 Secretary of the Board of

Commissioners

222 Corporate Secretary

228 Internal Audit Unit

231 Internal Audit Group Authority

232 Scope of Internal Audit Group

235 Public Accountants

237 Risk Management

244 Internal Control Systems

244 Legal Cases of the Company,

Subsidiaries, the Board of


245 Administrative Sanctions of the

Company

245 Access to Company Information

and Data

246 Code of Conduct

248 Strengthening Corporate Culture

248 Gratification and Anti-Corruption

Control

249 Disclosure of the Company's

Financial and Non-Financial

Statements

250 Provision of Funds for Social

and Political Activities

250 Provision of Funds to Related

Parties

250 Prevention of Insider Transaction

251 Whistleblowing System

We continue our business strategy and restructure our business processes in accordance with the changes in the business model we are currently implementing, so as to deliver total solution services that provides additional values to our customers.

Go BeyondService Excellence

FINANCIAL AND OPERATIONAL HIGHLIGHTS

1

20 Annual Report 2019 PT Semen Indonesia (Persero) Tbk

Financial and Operational Highlights Management Report Company Profile

Financial Highlightsin million Rupiah

Description 2019 2018 b) 2017 a)

Consolidated Statements of Financial Position

Current Assets 16,658,531 16,091,024 13,801,819Investments in Associates Entities 89,001 85,638 83,665Fixed Assets 56,601,702 32,391,950 32,523,310Goodwill and Intangible Assets 4,260,059 1,084,687 1,269,644Other Non-Current Assets 2,197,774 1,130,537 1,390,212Total Assets 79,807,067 50,783,836 49,068,650Current Liabilities 12,240,252 8,179,819 8,803,577Non-Current Liabilities 31,674,891 9,988,702 10,219,041Total Liabilities 43,915,143 18,168,521 19,022,618Temporary Syirkah Funds 2,000,000 - -Total Equity 33,891,924 32,615,315 30,046,032Capital Expenditure 1,629,496 1,796,158 3,504,826Net Working Capital 4,418,279 7,911,205 4,998,242Consolidated Statements of Profit or Loss and Other Comprehensive Income

Revenues 40,368,107 30,687,626 27,813,664Gross Profit 12,713,983 9,330,530 7,959,599Operating Income 6,185,043 4,880,639 2,851,306Income for the Year 2,371,233 3,085,704 1,650,006Total Comprehensive Income for the Year 2,268,151 3,517,374 1,314,574Profit for the Year Attributable to the Owners of Parent Entity 2,392,151 3,079,115 1,620,995Profit for the Year Attributable to the Non-Controlling Interests (20,918) 6,589 29,011Total 2,371,233 3,085,704 1,650,006Comprehensive Income Attributable to Owners of Parent Entity 2,316,376 3,475,788 1,295,418Comprehensive Income Attributable to Non-Controlling Interests (48,225) 41,585 19,156Total 2,268,151 3,517,373 1,314,574EBITDA 8,699,497 6,576,705 4,904,308Market Capitalization 71,178,240 68,212,480 58,722,048Weighted Average of Outstanding Shares (in Thousands) 5,931,520 5,931,520 5,931,250Earnings Per Share (Full Amount) 403 519 273Financial Ratios

Gross Profit Margin (%) 31.50 30.40 28.60Operating Margin (%) 15.32 15.90 10.25Net Profit Margin (%) 5.93 10.03 5.83EBITDA Margin (%) 21.55 21.43 17.63EBITDA to Interest (X) 2.71 6.86 6.48Return on Equity (%) c) 7.41 9.87 5.68Return on Asset (%) 3.00 6.06 3.30Current Ratio (%) 136.10 196.72 156.78Return on Investments (%) 19.16 15.65 10.00Debt to Equity Ratio (%) d) 93.08 30.79 35.13Debt to Asset Ratio (%) e) 37.64 18.91 20.42Debt to Capital Ratio (%) 46.99 22.75 25.01

Information :a) As restatedb) As reclassifiedc) Equity attributable to the owners of parent entityd) Total interest bearing debt, temporary syirkah funds, and equity attributable to the owners of parent entitye) Total interest bearing debt and temporary syirkah funds

21Annual Report 2019 PT Semen Indonesia (Persero) Tbk

Management Discussion and Analysis Consolidated Financial StatementsGood Corporate Governance Corporate Social Responsibility

2019 2018 2017

2019 2018 2017

2,3

92

3,0

79

1,62

1

79,8

07

50

,78

4

49

,06

9

40

,36

8

30

,68

8

27,

814

EBITDA(Rp billion)

2019 2018 2017

Total Assets(Rp billion)

Revenues(Rp billion)

2019 2018 2017

Return on Assets/ROA(%)

Profit for the Year Attributable to the Owners of Parent Entity(Rp billion)

Return on Equity/ROE(%)

2019 20192018 20182017 2017

8,6

99

6,5

77

4,9

04

7.4

1

9.8

7

5.6

8

3.0

0

6.0

6

3.3

0



Operational Highlights

* Including grinding plants** Excluding domestic clinkers

Industry Unit 2019 2018 2017

Cement

Total Production Capacity* Thousand Tons 52,600 37,800 35,800Domestic Production Thousand Tons 38,280 28,566 28,658Regional Production Thousand Tons 1,430 1,994 2,133Total Production Thousand Tons 39,710 30,560 30,791Domestic Sales** Thousand Tons 36,341 27,421 27,094Regional Sales Thousand Tons 6,271 5,750 4,255Domestic Clinker Thousand Tons 668 213 259Total Sales Thousand Tons 43,280 33,384 31,608Packaging IndustryPasted Woven Production Sheet 18,175,486 10,012,808 3,595,598Sewn Woven Production Sheet 7,829,585 12,393,648 25,802,930Pasted Kraft Production Sheet 221,396,257 228,858,880 233,864,679Total Packaging Production Sheet 247,401,328 251,265,336 263,263,207Industrial Real EstateSales Volume Industrial Land Sales M² 20,400 4,349 20,577Rental Volume Land Rent M² 41,005 44,353 43,849BPSP Rent Units 13 13 15Warehouse Rent Units 83 84 67Office Rent Units - - 1Shophouse Rent Units 13 13 13House Rent Units 2 3 3MiningMining Services Limestone Tons 17,570,468 17,298,592 14,666,153Clay Tons 2,957,301 3,531,226 3,768,303Surface Miner Tons 936,681 1,220,348 1,478,785Sub-Total Tons 21,464,450 22,050,166 19,913,241Other Mining Services BCM Unit BCM 503,346 775,027 813,599Meter Unit Meter 306,924 239,637 193,220Ton Unit Tons 8,487,944 15,792,285 11,193,280Hour Unit Hour 20,906 31,172 31,321Lumpsum Unit Lumpsum 554 38 392Percentage Unit Percentage - - 213M3 Unit M³ - - 49,507Package Unit Package - - 1Ea Unit Ea - - 77Ha Unit Ha - 25 10Sub-Total 9,319,673 16,838,183 12,281,620Total Mining BCM 503,346 775,027 813,599Total Mining Meter 306,924 239,637 193,220Total Mining Ton 29,952,394 37,842,451 31,106,521Total Mining Hour 20,906 31,172 31,321Total Mining Lumpsump 554 38 392Total Mining Percentage - - 213Total Mining Ha - 25 10Total Mining M³ - - 49,507Total Mining Package - - 1Total Mining Ea - - 77



2019Stock Price (Rp)

Total Shares VolumeMarket

CapitalizationOpening Highest Lowest Closing

1st Quarter 11,475 13,950 11,200 13,875 5,931,520,000 327,151,600 82,745

2nd Quarter 13,800 14,300 10,475 11,575 5,931,520,000 498,787,900 68,657

3rd Quarter 12,475 13,450 11,550 11,550 5,931,520,000 420,872,000 68,509

4th Quarter 11,200 13,325 10,825 12,000 5,931,520,000 328,980,300 71,178

2018Stock Price (Rp)

Total Shares VolumeMarket

CapitalizationOpening Highest Lowest Closing

1st Quarter 9,900 11,750 9,650 10,350 5,931,520,000 323,670,000 61,391

2nd Quarter 10,350 11,000 7,075 7,125 5,931,520,000 311,470,000 42,262

3rd Quarter 7,125 9,925 6,725 9,925 5,931,520,000 314,330,000 58,870

4th Quarter 9,925 12,025 8,600 11,500 5,931,520,000 452,670,000 68,212

Quarterly Share Performance

Share Highlights

In 2019, there was no temporary suspension and/or

delisting of shares sanctioned to PT Semen Indonesia

(Persero) Tbk.

Share Trade Sanctions

Corporate Actions

In 2019, Semen Indonesia did not held any corporate

action related to stock split, reverse stock, bonus

shares nor changes in the nominal value of shares.

ShareholdersComposition

Share Price and Volume of SMGRCompared to JCI in IDX

Shareholders Total Shares %

Government of Indonesia 3,025,406,000 51.01%

Foreign Institutions 2,089,937,204 35.23%

Foreign Individuals 399,700 0.01%

Domestic Individuals 42,583,992 0.72%

Domestic Institutions 773,193,104 13.03%

Total 5,931,520,000 100.00%

0.01%

51.01%

35.23%

13.03%0.72%

Volume SMGR JCI

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

600,000,000

500,000,000

400,000,000

300,000,000

200,000,000

100,000,000

0

Q1 Q1Q2 Q2Q3 Q3Q4 Q4

327,151,600

323,670,000

6,469 6,1896,359 6,1695,977

6,299 6,194

12,000 11,50011,550

9,92511,575

5,799

13,950

10,350

498,787,900

311,470,000

420,872,000

314,340,000

328,980,300

452,670,000

7,125

2019 2018



Event Highlights

31 January 2019

Semen Indonesia finalized acquisition of

shares ownership of PT Holcim Indonesia

Tbk. The closing of stock purchase from

Holderfin B.V. took place on Thursday

(31/01/2019). The acquisition was conducted

by the Company's subsidiary, PT Semen

Indonesia Industri Bangunan (SIIB). Semen

Indonesia purchased 6,179,612,820 shares

at a price of Rp2,097 per share. Thus, total

purchase price of the 80.64% share was

amounted to Rp12.9 trillion.

11 February 2019

The Extraordinary General Meeting of

Shareholders (EGMS) of PT Holcim Indonesia

Tbk in Jakarta approved the change of the

Company’s name into PT Solusi Bangun

Indonesia Tbk (SBI). Additionally, two SBI’s

subsidiaries also changed their names.

PT Holcim Beton becomes PT Solusi Bangun

Beton, and PT Lafarge Cement Indonesia

becomes PT Solusi Bangun Andalas. The

EGMS also approved changes to SBI’s

Board of Directors, which appointed Aulia

Mulki Oemar as President Director, Agung

Wiharto as Director and Lilik Unggul Raharjo

as Independent Director.

22 May 2019

`

The Annual General Meeting of Shareholders (AGMS) of PT Semen Indonesia (Persero)

Tbk in Jakarta changed the composition of the Board of Commissioners and Directors.

The AGMS approved the resignation of Sutiyoso and Wahyu Hidayat from the Board of

Commissioners, as well as Agung Yunanto from the Board of Directors. Soekarwo replaced

Sutiyoso’s position and Lydia Silvanna Djaman to replace Wahyu Hidayat. Meanwhile, Tina

T. Kemala Intan was appointed as the Director of HR and Legal to replace Agung Yunanto.

23 April 2019

PT Semen Indonesia (Persero) Tbk held

BUMN Goes To Campus (BGTC) at the

University of Bung Hatta Bypass Aia Pacah

Padang in West Sumatra (23/4). The event is

part of the 21th Anniversary Celebration of

the Ministry of SOEs. Padang City was one

of the hosting places for BGTC, which was

carried out in eight cities including Medan,

Riau, Bengkulu, Palembang, Majalengka,

Karawang, Tasikmalaya and Sukabumi.

30 May 2019

Semen Indonesia held another SOEs Collective Homecoming (Mudik Bareng BUMN) by

despatching of 5,000 travelers from West Sumatra, Jakarta, West Java, Central Java, East

Java and South Sulawesi, to various destinations in Indonesia. This year the despatch of

travelers was carried out by the Minister of SOEs Rini Soemarno at Bung Karno Stadium,

Jakarta.



14 August 2019

As part of the 74th Anniversary of the

Independence of the Republic of Indonesia,

Semen Indonesia carried out SOEs for the

Nation (BUMN Hadir Untuk Negeri/BHUN)

Program through the Introducing the Nation

to Students (Siswa Mengenal Nusantara/

SMN) event. The program was initiated by

the Ministry of SOEs with aim to instill a sense

of pride and love for the nation to teenagers

at senior high schools (SMA/SMK/SLB). The

student participants of SMN consisted of 24

representatives from South Sulawesi district/

city, 3 students with disability, 2 teachers and

1 representative from the Education Office

of South Sulawesi Provincial Government.

Meanwhile, through its subsidiary, PT Semen

Padang, the Company will soon dispatch 23

outstanding students from West Sumatra to

visit South Kalimantan.

17 August 2019

To commemorate the 74th Anniversary

of the Republic of Indonesia, PT

Semen Indonesia (Persero) Tbk and

PT Industri Kapal Indonesia (Persero) as

well as PT Perkebunan Nusantara XIV

provided assistance to the community in

Selayar, South Sulawesi, through staple

foods donation worth of Rp1,725 billion.

Another assistance, which is a part of

the BHUN Program, was given through

renovation of 10 houses, electrification of

50 home, water supply system installation

in two locations and construction of public

toilets in 50 locations.

27 August 2019

Two SOEs, Semen Indonesia and PT Pelindo

III, began a collaboration in three areas of

logistics, energy and port. Cooperation

Agreement for the Millenium Challenge

Corporation (MCC) was signed by Semen

Indonesia’s President Director Hendi Prio

Santoso and Pelindo III’s President Director

Doso Agung in Jakarta, Tuesday (27/8).

In this partnership, Pelindo III will provide

shore connection facility (electrical energy

source for docked ships at the pier) which

can be used as energy supply for onboard

loading and unloading cranes (cargo carrier

owned by Semen Indonesia) to improve

operational cost efficiency.

29 August 2019

Through its subsidiary, PT Mitra Kiara Indonesia (MKI), PT Semen Indonesia (Persero) Tbk

started the construction of a dry mortar plant with a capacity of 375 thousand tons per year in

Narogong, Gunung Putri, West Java. The Plant’s Ground Breaking Ceremony was attended

by Semen Indonesia’ President Director Hendi Prio Santoso and Director of ICM, Mirza

Whibowo Soenarto.



25 September 2019

PT Semen Indonesia (Persero) Tbk,

continues to actualize its pace into the

largest building materials provider in the

region. As a follow-up to transformation

action in the financial sector, the Company

established a cooperation agreement

(PKS) with PT Bank Negara Indonesia

(BNI) (Persero) Tbk for the National Polling

service.

Signed in Jakarta on Wednesday

(25/9), Director of Business Strategy &

Development Fadjar Judisiawan stated that

this cooperation is one of the Company's

efforts in realizing financial structure

improvement and is part of the Company's

strategic priorities. Such cooperation will

reinforce synergy between SOEs and

provides added values for both companies.

30 August 2019

PT Semen Indonesia (Persero) Tbk. signed

a Syndicated Loan Agreement amounting

to Rp2,350 trillion with BRI Syariah, Mandiri

Syariah, and CIMB Niaga Syariah in the East

Tower, Jakarta, Friday (30/8).

During the event, Semen Indonesia’s

Director of Finance Doddy Sulasmono

explained that this syndicated loan will be

used to refinance some of loan terms that

will be matured soon and loan needs for

the shareholders of some subsidiaries. The

Company is bound by the terms of the loan

agreement, one of which is having a tenor

of up to 7 years since it was signed.

26 September 2019

Three innovation teams of Semen

Indonesia Group who competed in the 2019

International Convention on Quality Control

Circle (ICQCC) at the Keio Plaza Hotel in

Tokyo, Japan, on 23-26 September, came

home proudly. They have returned with two

Gold and one Silver Awards.

Two Gold Awards were received by

Extrill Team and Piston Team from Semen

Padang. Meanwhile, the Progressive

Building Materials Team from Semen

Indonesia received the Silver Award for

their innovation, the Interlocking Brick Wall

Development. The interlocking brick, or the

lego brick, is better than the conventional

brick as it made building walls resistant to

tremors.

27 September 2019

PT Solusi Bangun Indonesia Tbk (SBI) officially changed its cement brand from Holcim

to Dynamix. Announcement of the rebranding was done through an Internal Launch at

the Intercontinental Hotel, Jakarta. SBI’s President Director Aulia Oemar Mulki said the

rebranding is part of the Company’s transformation process, as well as the continuation of

the integration process that was carried out by PT Semen Indonesia after the acquisition of

SBI in early 2019.



16 October 2019

It was a prideful achievement for Semen

Indonesia Group when its 10 teams competed

in the Asia Pacific Quality Organization

(APQO) during the 25th International

Conference in Bali, 14-16 October 2019. In the

event, which involved 700 participants from

more than 300 companies in 19 countries, all

teams of SMI Group won 3 Stars, which is the

highest award.

Of the 10 teams, two teams represent Semen

Indonesia Holding, two teams from Semen

Gresik, two teams from Semen Tonasa, and

4 other teams were from Semen Padang.

Another achievement received by the

Rembang Bangkit Team for their innovation,

the 'Semen Gresik Community Challenge

(SGCC)'. In addition to the 3 Stars Award,

they also won the title of Best of the Best

Award as the Most Favorite Team.

28 October 2019

Semen Indonesia made a history in the

global cement industry after deciding to

join the World Cement Association (WCA).

WCA is an international cement association

established in 2016, consists of cement

manufacturers from various countries.

28 November 2019

Unwilling to stay in a comfort zone, Semen

Indonesia Group continues its efforts to foster

a culture of innovation in every activity of the

Company. One of them by holding Semen

Indonesia Innovation Awards 2019. The

awards were held at the Function Hall of South

Quarter, A Tower, South Jakarta, on Thursday

(28/11) to appreciate outstanding innovators

within the Semen Indonesia Group. The event

was aimed to motivate and inspire employees

in the Company as well as their business

performance improvement, in a bid to meet

future business challenges.

The Company's priority programs are aimed at providing total solution services through increased synergy, consolidation, and operational efficiency in order to promote organic growth and win the market competition.

Go Beyond Market Competition

MANAGEMENT REPORT

2

32


Annual Report 2019 PT Semen Indonesia (Persero) Tbk

SoekarwoPresident Commissioner

33



We sent our highest praise and gratitude

towards God Almighty for all His blessings

and grace given to all of us, so that PT Semen

Indonesia (Persero) Tbk was able to achieve

good performance in 2019. The Board of

Commissioners acknowledges achievements

recorded by the Company during the fiscal

year of 2019, including the completion of the

acquisition of PT Holcim Indonesia Tbk.

The Board has also conducted our supervisory

function towards the management of the

Company as mandated by the Shareholders.

Evaluation of the Company's performance was

carried out with consideration towards a variety

of targets set in the early year of operation, and

set forth in the Company’s Business Plan, such

as the achievement of the Company’s targets,

as well as various other operational aspects,

including the quality of corporate governance

implementation and the Company's financial

performance improvement.

Evaluation of the Company’s Performance Achievement The cement industry condition in 2019 remained

challenging. Demands for cement was relatively

stagnant compared to the previous year. The

election, which included the election of the

national leaders in April 2019, made a lot of

businesses took a stand in order to wait for the

process outcome. In addition, there were many

infrastructure projects that had been completed

in 2018, while the new project initiatives were

waiting for the election results. Thus, the first

half of 2019 experienced a significant decline of

cement demands.

The cement market remained oversupply of

almost 40 million tons. As a result, the level of

competition became increasingly fierce and put

pressure on cement price. In such condition, the

Board of Commissioners appreciates strategic

initiatives taken by the Board of Directors to

maintain the Company’s performance. On

the acquisition, which was taken in 2019, the

necessary steps have been taken, including

changing the Company's name and brand.

PT Holcim Indonesia Tbk was renamed as PT

Solusi Bangun Indonesia Tbk (SBI) and the

Holcim brand was rebranded as Dynamix.

This was an appropriate step, not only to

strengthen the market share, but also to

Dear Respected Shareholders and Stakeholders,

Report of the Board of Commissioners

The Board of Commissioners continues to promote the continuity of the transformation program to enhance our competitiveness, as well as carving the milestone in achieving the vision and mission of the Company that has been officially renewed in 2019.

34



strengthen the Company

as a group. The integration

of SBI would strengthen

the synergy among

existing business units.

On the other side, the

Board of Commissioners

continues to promote

the continuity of the

transformation program

to enhance our

competitiveness, as well

as carving the milestone

in achieving the vision and

mission of the Company that has been officially

renewed in 2019.

In 2019, the Company conducted a

groundbreaking for building a mortar cement

plant in Narogong, West Java. The initiative

was in line with the Company’s new vision and

mission, especially since mortar cement has

a huge potential for growth in the Indonesian

market.

On the financial aspect, the Board of

Commissioners appreciates the Company’s

achievements. The Company was able to

increase the EBITDA margin. The achievement

shows that the strategy carried out by the

Company’s Board of Directors in managing the

market and applying an integrated marketing

strategy was appropriate.

Business Prospects of the CompanyThe economic challenges during 2020 is

expected to be fiercer. The outbreak of the

COVID-19 pandemic would put severe pressure

to the global economy, which has been

predicted to experience a slowdown.

The same pandemic is also spreading in

Indonesia, which will greatly affect the economic

growth in 2020. Bank Indonesia has revised the

2020 economic growth forecast for Indonesia

to be around 2.3%.

In the midst of such condition, the Company

seeks to explore its potential. The continuous

infrastructure development programs carried

out by the government remain one of the

foundations for our business growth. In addition,

the Company is also seeking to optimize any

potential of value-added products.

In 2020, the Company is focusing to carry out

various variety programs: continue integrating

and streamlining the operational functions;

develop building material products and services;

manage the shareholders’ and stakeholders’

expectations; and transform the corporate

culture. Implementation of all priority programs

is aimed to improve operational efficiency of

the Company, strengthen product portfolio,

maintain good relationships with stakeholders,

and increase employee engagement, as well as

fostering a new paradigm that is more oriented

towards the market.

The Board of Commissioner continues to advise

the Board of Directors to conduct business

development by prioritizing the principle of

prudence and committed in implementing good

corporate governance principles.

Corporate Governance Implementation In carrying out the stakeholders’ mandate,

the Board of Commissioners is committed

to implement good corporate governance,

including within the Board of Commissioners

and our supporting functions, as well as the

Board of Directors and their staffs.

The Company is committed to achieving the

Sustainable Development Goals (SDGs) in

Indonesia, which is in line with the commitment

of the Indonesian government on sustainability.

As a cement company with a global mindset,

Semen Indonesia must demonstrate leadership

in implementing such resolution from the United

Nations.

The Board of Commissioners believes that in

order to achieve a sustainable development, it

is absolutely necessary to maintain the balance

between economy, social and environment. This

is aligned with Semen Indonesia's commitment

in ensuring its business activities would bring

long-term positive impacts to the stakeholders.

The Company

is committed

to achieving

the Sustainable

Development Goals

(SDGs) in Indonesia,

which is in line with

the commitment

of the Indonesian

government on

sustainability.

35



The Company shows leadership in carrying

out various initiatives beneficial for social and

environment, such as: reducing fossil fuel

consumption through implementation of the

latest technology. The Company also pioneered

the usage of industrial waste, such as fly ash and

municipal waste as an alternative raw material

or fuel. Detailed description of our various

initiatives is available in this Annual Report and

the Sustainability Report of the Company.

Changes to the BOC CompositionBased on the decision of the Annual General

Meeting of Shareholders on Wednesday,

22 May 2019, the Shareholders honorably

discharged Mr. Sutiyoso and Mr. Wahyu Hidayat

as the members of the Board of Commissioners,

and appointed Mr. Soekarwo and Mrs. Lydia

Silvanna Djaman as the new Commissioners.

The Board of Commissioners conveys its thanks

to Mr. Sutiyoso and Mr. Wahyu Hidayat for their

contribution to the Company during their term

of service.

Appreciation and Closing Remarks The Board of Commissioners would like to

express our appreciation and gratitude to the

Board of Directors and all employees for their

hard work and contribution in ensuring the

Company’s sustainability and improvements.

We would also like to convey our highest

appreciation to our shareholders and

stakeholders for their trust and support. We

strongly believe that the Company's new vision

and direction will provide sustainable values

and a new direction for our transformation in

becoming a capable global organization in

supporting the national development.

Jakarta, 31 March 2020



Annual Report 2019 36

The Board of Commissioners

Left to Right

Nasaruddin UmarIndependent Commissioner

Hendrika Nora Osloi SinagaCommissioner

Astera Primanto BhaktiCommissioner


Mochamad CholiqIndependent Commissioner

Lydia Silvanna DjamanCommissioner

Sony SubrataCommissioner



Annual Report 2019 PT Semen Indonesia (Persero) Tbk 37Laporan Tahunan 2019 PT Semen Indonesia (Persero) TbkAnnual Report 2019 PT Semen Indonesia (Persero) Tbk

38



Hendi Prio Santoso President Director

39



Report of the Board of Directors

We sent our highest praise and gratitude

towards God Almighty for all the favors,

gifts, and opportunities given to PT Semen

Indonesia (Persero) Tbk throughout 2019.

Despite the challenging conditions of the

cement industry in 2019, Semen Indonesia

managed to prove its capability in carrying

out its commitment to achieve the Company’s

vision and mission.

To Be A Building Materials and Solutions ProviderThe Indonesian cement industry is facing

challenging competition. The significant

addition of numbers of players and capacity

in the industry has put pressure to the

cement price during 2015-2017. Currently,

the competition remains challenging with

persistent oversupply of nearly 40 million tons.

However, the Company was able to adapt

to the situation and bring back the cement

price to a healthier level. The Company also

noticed a further opportunity in downstream

business, which led the Company to renew

its vision to be the leader of Building Material

Solution Provider in the Region. As one of

the milestones towards achieving the vision,

the Company has completed its corporate

rebranding in 11 February 2020.

One of the strategic actions being taken in

such fierce competition was to acquire PT

Holcim Indonesia Tbk in 2019. This acquisition

has further strengthened the position of Semen

Indonesia in the national cement industry,

especially in Java and the surrounding market.

The Company's presence became more solid

in terms of supply chain, production, and

marketing, both domestically and regionally.

Semen Indonesia also took the opportunity

to diversify its products and downstream

business such as ready mixed concrete

business development, mortar, cement and

other derivative products. Having 53 million

tons of cement capacity, allowing Semen

Indonesia to strengthen the resilience of

state-owned cement companies in Indonesia

to ensure its continuous support for the

national infrastructure development, while

solidifying the Company as a leading cement

company in Asia Pacific region.

2019 PerformanceIn 2019, the Company recorded operational

and financial performance that Go Beyond

Expectations. Revenue in 2019 grew by 31.5%

to Rp40,368 billion, resulted from increased

sales volume and optimized management

2019 achievements were the results of the Company's efforts in carrying out integration and consolidation, as well as maintaining financial performance, thus became the solid foundation towards becoming the leader of building material solutions provider in the region.

Dear Respected Shareholders,

The Company will remain

focused on improving

synergy among units

and subsidiaries, in

order to create new

opportunities aligned

with the Company’s

new vision. Semen

Indonesia believes that

the level of competition

in the cement industry

will remain high, but

the synergy between

the work units and

subsidiaries will bring

greater competitive

advantage for the

Company compared to

other players.

40



through multi brand

marketing strategy.

As one of real actions

toward our new vision

to be the leader in the

region, the Company

managed to increase

regional sales by 9.1%

in 2019.

The Company was

also able to manage

the incremental of cost

of revenue resulting

in lower growth

compared to revenue

growth, which in turn

contributed to higher

EBITDA of Rp8,699

billion in 2019, or

grew 32.3% with a

maintained EBITDA

margin.

In terms of profit for the year attributable to

owners of the Company, the Company recorded

a profit of Rp2,392 billion, which has taken into

account the increased finance cost related to

the acquisition of PT Holcim Indonesia Tbk at

the end of January 2019. Some finance cost

efficiency programs have been taken during

2019, such as cash flow management, which

enable the Company to reduce the outstanding

debt of around Rp1.4 trillion in 2019. The

refinancing programs conducted last year also

helped reduce the interest rate to lower the

finance cost.

The strategic initiatives taken, including

cost leadership through cost transformation,

integration of strategic functions within the

group, and synergy with PT Holcim Indonesia

Tbk or PT Solusi Bangun Indonesia Tbk have

enabled Semen Indonesia to achieve stronger

operational and financial performance last year.

Business ProspectsThe global economic condition in 2020 is

severely impacted by the COVID-19 pandemic,

which has been spread worldwide. The

International Monetary Fund (IMF) predicts the

global economic growth to be negative in 2020.

Bank Indonesia expectation for Indonesia

economic growth this year to be 2.3% or far

lower compared to previous expectations.

In responding to the current situation, during

the first quarter of 2020, Bank Indonesia

has cut BI 7 Days Repo Rate twice of 25 bps

each time, which bring the current 7 Days

Repo Rate to be 4.50%. At the same time, the

Financial Service Authority (OJK) has issued

OJK Regulation (POJK) No.11/POJK.03/2020

concerning the National Economic Stimulus as

the Countercyclical Policy on the Impact of the

Spread of Coronavirus Disease in 2019. These

policies are intended to boost economic growth

amid the Covid-19 outbreak.

The Company believes that the economic

condition will recover when the Indonesian

government is able to cope with the Covid-19

outbreak. The national strategic projects will be

rolled back and the private sector will resume its

expansion efforts. The Company will continue

to support the government program of Nawa

Cita, especially in infrastructure development.

The Company will remain focused on improving

synergy among units and subsidiaries, in order

to create new opportunities aligned with the

Company’s new vision. Semen Indonesia

believes that the level of competition in the

cement industry will remain high, but the synergy

between the work units and subsidiaries will

bring greater competitive advantage for the

Company compared to other players. The

Company will also maximize portfolio of

subsidiaries in order to further contribute to the

Company’s increased profitability.

Corporate Governance Implementation The Company's commitment in implementing

good corporate governance continues heading

to a better level. Applied centralization and

digitization have been proven to be effective

generally in the Company’s governance quality.

This is evidenced from GCG score achievement

in 2019, which increased to 94.54 compared to

the previous year, the highest achievements of

the Company so far. GCG assessment in 2019

41



was carried out by PT Sinergi Daya Prima using

the same assessment method and criteria as

the previous year.

Commitment to SustainabilityAs the leading cement company in Southeast

Asia, highest commitment to sustainability

aspect is a must. The Company understands

that the impact of operational activities on the

environment, both from the use of energy as

the main factor of production and manufacture

discharges in the form of emissions (greenhouse

gases/GHGs, air pollutants, and dust

emissions), as well as waste (solid and liquid).

Company policy emphasizes the importance

of environmental management to achieve

energy efficiency, emissions control, and waste

reduction and utilization of hazardous and/or

non-hazardous waste.

In 2019, emission intensity or CO2 per product

decreased to 634 kg CO2/ton cement equivalent,

consistent with the Sustainability Development

Goals (SDGs), which become the focus of the

Company, especially goals number 6, 7, and 9.

We also have launched innovative eco-friendly

products such as ThruCrete, with a very good

ability to absorb surface water.

On the social side, the local community

becomes the integral part of the Company

as a social entity. The existence of local

communities impacting the operational security

and licensing. On the other hand, the Company

presence through its cement business units

and subsidiaries have an indirect impact to the

improvement of the community welfare, job

opportunities, and development of the region.

The local government and community put high

expectation towards the Company as a state-

owned company. Through the Partnership

program, Semen Indonesia registered 37

thousand fostered partners with 72 thousand

beneficiaries. Thus, the Company presence

has given the real multiplier effect on Semen

Indonesia areas of operation.

Changes to the BOD CompositionOn 22 May 2019, the Annual General Meeting of

Shareholders honorably discharged Mr. Agung

Yunanto as Director of HR and Legal, and

appointed Mrs. Tina T. Kemala Intan as the new

Director of HR and Legal. The Board of Directors

conveys its thanks to Mr. Agung Yunanto for his

contribution to the Company during his term of

service.

Appreciation and Closing Remarks2019 achievements were the results of the

Company's efforts in carrying out integration and

consolidation, as well as maintaining financial

performance, thus became the solid foundation

towards becoming the leader of building

material solutions provider in the region.

On behalf of the Board of Directors, I would like

to thank and express my profuse appreciation

to all stakeholders, especially management

and employees as our greatest assets, for their

dedication in helping Semen Indonesia to be

the leader of building material solution provider

in Southeast Asia.


Hendi Prio Santoso

President Director

279Laporan Tahunan 2019 PT Semen Indonesia (Persero) Tbk

Analisis dan Diskusi Manajemen Laporan Keuangan KonsolidasiTata Kelola Perusahaan yang Baik Tanggung Jawab Sosial Perusahaan

Kami yang bertanda tangan di bawah ini menyatakan bahwa semua informasi dalam Laporan

Tahunan PT Semen Indonesia (Persero) Tbk tahun buku 2019 telah dimuat secara lengkap dan

kami bertanggung jawab penuh atas kebenaran isi Laporan Tahunan dan Laporan Keuangan

Konsolidasian Perusahaan. Demikian pernyataan ini dibuat dengan sebenarnya.

Jakarta, 31 Maret 2020

Direksi

Hendi Prio SantosoDirektur Utama

Doddy Sulasmono DiniawanDirektur Keuangan

Tina T. Kemala IntanDirektur SDM & Hukum

Tri AbdisatrijoDirektur Enjiniring & Proyek

Benny WendryDirektur Produksi

Adi MunandirDirektur Pemasaran & Supply Chain

Fadjar JudisiawanDirektur Strategi Bisnis &

Pengembangan Usaha

Surat Pernyataan Anggota Direksi Tentang Tanggung Jawab Atas Laporan Tahunan 2019 PT Semen Indonesia (Persero) Tbk


Annual Report 2019 42

Directors

Left to Right

Fadjar JudisiawanDirector of Business Strategy &

Development

Doddy Sulasmono DiniawanDirector of Finance

Tri AbdisatrijoDirector of Engineering &

Projects

Hendi Prio SantosoPresident Director

Tina T. Kemala IntanDirector of Human Resources &

Legal

Benny WendryDirector of Production

Adi MunandirDirector of Marketing &

Supply Chain


43


Annual Report 2019 PT Semen Indonesia (Persero) TbkAnnual Report 2019 PT Semen Indonesia (Persero) Tbk

COMPANY PROFILE

3

Tuban Plant East Java

46



Company Identity

Head Office Address

South Quarter, Tower A, 19th-20th Floor

Jl. R.A. Kartini Kav.8 Cilandak Barat

South Jakarta 12430, Indonesia

Tel. + 62-21-5261174-5

Fax. + 62-21-5261176

E-mail: [email protected]

website: www.SIG.id

Company Name

PT Semen Indonesia (Persero) Tbk

Previous Company Name

PT Semen Gresik (Persero) Tbk

Line of Business

Cement Industry

Establishment

7 August 1957

Legal Basis of Establishment

Indonesian Government

Regulation No. 132 of 1961 on the

Establishment of the State-Owned

Enterprise of Semen Gresik

Stock Listing Date

8 July 1991

Stock Exchange

Indonesia Stock Exchange

Share Code

SMGR

Corporate Secretary

Vita Mahreyni

Ownership

• Republic of Indonesia

51.01%

• Public 48.99%

Authorized Capital

Rp2,000,000,000,000

Issued and Fully Paid Capital

Rp593,152,000,000

Contact

@semenindonesia

@semenindonesiagroup

@semenku

@semenindonesia

pt-semen-indonesia

0 800 - 188888

47



Line of Business

Introduction of Cement Production Process

In accordance with the latest Articles of Association, the purpose and objective of the Company is to

engage in the cement sector, covering activities of production and distribution of cement products

as well as downstream products. Along with the development of its business, the Company is

currently entering various other businesses that are primarily associated with cement sector and

other supporting businesses.

Roller Press

Clinker

Preheat

Coal

Rotary Klin

Cement

Clinker

BlendingRaw

Cement

CementCement

Cement

Transporting

48



Products and Services

With a long experience as a cement manufacturer, the Company has produced various types of

cement that has been widely used by the general public or infrastructure projects both domestically

and abroad.

Special Cement

To meet the demand for specialized cement

according to its use, SIG also produces Special

Blended Cement (SBC) which can be used in mega

projects, such as Suramadu Bridge, and other

special cements including:

• Super Masonry Cement (SMC)

• Oil Well Cement (OWC)

Mortar

The Company’s products for wall construction

in the form of brick install, plaster and filler.

• Brick Install Mortar

• Plaster Mortar

• Filler Mortar

Portland Cement Type I-V

Cement product differentiated according to its use (general use and specific construction) and the

type of the area its being applied to (land, sea, swamp, underground, underwater)

Concrete

• Ready Mix (RMX)

49



Non-Cement Services

• Logistics

• Ready-Mix Concrete

• Building Materials Trading

• Mining Services

Concrete Innovation and Solutions

SpeedCrete : Concrete solution for road renovation, quick dry in a short time

ThruCrete : Concrete solution to minimize puddles on the surface of the concrete with quick absorbent

capability to absorb rainwater from the surface of roads, parking lot, garage and sidewalks

into the soil or water reservoir.

DekoCrete : Innovative and aesthetic concrete for parks, sidewalks, parking areas and roads.

ApexCrete : Concrete solution for large application on warehouse floor.

• Cement Packaging

Production

• Industrial Estate

• Property

• Information System

• Waste Management

(Nathabumi)

• International Trading

Nathabumi is the Company’s

Innovation and Solutions for

waste management services that

are safe, reliable and guaranteed

for the entire industrial waste.

50



Lhoknga Plant

Tuban - SI Plant

Narogong Plant

Tonasa Plant

Indarung Plant

Rembang Plant

Tuban-SBI Plant

Cilacap Plant

Grinding Plant Thang Long

51



Integrated Cement Plant

SEMEN PADANG

Operates five cement plants with

installed capacity of 8.5 million tons of

cement per year, located in Indarung,

West Sumatra. Semen Padang also

has ports in Teluk Bayur and Dumai, a

grinding plant in Dumai, and packing

plants in Teluk Bayur, Belawan,

Batam, Tanjung Priok, Ciwandan,

Malahayati, Lhokseumawe, Bengkulu

and Lampung.

THANG LONG CEMENT

Operates one integrated cement plant

in Quang Ninh Province, Vietnam and

one grinding plant in Ho Chi Minh,

Vietnam, with a total installed capacity

of 2.3 million tons of cement per year.

Thang Long has its own port.

SEMEN TONASA

Operates four cement plants with

installed capacity of 7.4 million tons of

cement per year, located in Pangkep,

South Sulawesi. Semen Tonasa also

has a port in Biringkassi and packing

plants in Biringkassi, Makassar,

Mamuju, Sofifi, Palu, Bitung, Kendari,

Samarinda, Ambon, and Celukan

Bawang Bali.

SOLUSI BANGUN INDONESIA

Operates six cement plants with installed

capacity of 14.8 million tons of cement per

year, located in Lhoknga-Aceh, Narogong-

West Java, Cilacap-Central Java, and

Tuban-East Java. SBI has two ports in

Tuban and Lhoknga, as well as grinding

plants in Kuala Indah and Ciwandan.

Solusi Bangun Indonesia operates packing

plants in Lhokseumawe, Belawan, Dumai,

Perawang, Batam, Palembang, Pontianak

and Lampung.

SEMEN GRESIK

Operates five cement plants with

installed capacity of 17.5 million

tons of cement per year in Tuban-

East Java and Rembang-Central

Java. Semen Gresik also has two

ports, Semen Gresik Special Port in

Tuban and Gresik, and operates a

grinding plant in Gresik and packing

plants in Ciwandan, Banyuwangi,

Sorong, Balikpapan, Pontianak and

Banjarmasin.

52



Operational Area

Bengkulu

Lampung

West Kalimantan

East Kalimantan

Aceh

West Sumatra

North Sumatra

West Java

Vietnam

53



Quang Ninh Plant - Vietnam

Capacity: 2.3 MT/Year

Lhoknga Plant


Indarung Plant


Narogong Plant

Capacity: 6 MT/Year

Rembang Plant

Capacity: 3 MT/Year

Cilacap Plant


Tuban Plant

Capacity SI: 14.7 MT/Year

Capacity SBI: 3.6 MT/Year

Pangkep Plant


North Sulawesi

Papua

South Sulawesi

Central Java

Integrated Cement Plants Packing Plants

Grinding Plants

Ports

East Java

Central Sulawesi

Sulawesi Tenggara

Maluku

Thang Long Port

Lhoknga

Dumai

Teluk Bayur

Tuban

Gresik

Biringkasi

Ho Chi Minh

Kuala Indah

Dumai

Cigading

Ciwandan

Gresik

Lhokseumawe

Malahayati

Belawan

Dumai

Batam

Teluk Bayur

Bengkulu

Palembang

Lampung

Ciwandan

Tanjung Priok

Banyuwangi

Pontianak

Banjarmasin

Balikpapan

Samarinda

Makassar

Mamuju

Palu

Biringkassi

Kendari

Bitung

Celukan Bawang

Maluku Utara

Ambon

Sorong

54



Go Beyond NextSIG is undergoing a transformation

in order to build sustainable living

for future generations. Go Beyond

Next represents our courage to

act one step ahead and always Go

Beyond Next.

OUR PASSION

Vision and Mission

Vision Mission

Leading Building

Material Solution

Provider in the

Region

1. Being customer satisfaction-

oriented in every business

initiative.

2. Applying the best standards to

guarantee the quality.

3. Focusing on the environmental

preservation and sustainable social

responsibility.

4. Providing the best added values for

all stakeholders.

5. Focusing on human capital as

the center of the Company’s

development.

New Vision and Mission

In 2019, the Company renew its

Vision and Mission. It was deemed as

necessary to accommodate changes in

the industry, anticipate challenges, and

adjust the Company's direction. The new

Vision and Mission has been officially

renewed on 13 May 2019.

55



Corporate Culture

Corporate Culture

out the supporting function, and currently changed

into the Company’s business strategic function,

which means that HC management strategies

should be aligned with the business strategy of the

Company.

The strategy adopted to achieve such objective and

realize strategic changes, is through improvement of

the entire HC management system, which consists

of five groups of systems:

1. High performing human capital management

system

2. Leadership capability enhancement

3. Technical capability enhancement

4. Knowledge enterprise enablement

5. CHAMPS culture crystallization

The whole series of paradigm shift, whether the

strategies, initiatives and objectives of management

of the Company’s HC is depicted in the chart below:

The Company continues to strive to improve

understanding of the corporate culture, that

has been established as the cornerstone of the

Company’s business. With the same corporate

culture, it is expected that the Company’s steps can

be more synergistic in moving together to achieve

the vision that has been set. One of these efforts is

by enhancing the CHAMPS culture.

CHAMPS culture continues to be enhanced

towards all employees as the Company’s employee

identity. The corporate culture is a synergy from

existing corporate culture within the Company

and subsidiaries. The corporate culture formation

process begins with an awareness that the Company

needs a bonding element to unite the entire Group.

The enhancement of culture through culture

internalization, is part of a paradigm shift in the

management of Human Capital (HC), which was

previouslyemphasizing more on success in carrying

The initiatives and objectives of managing the Company's Human Capital are a series of strategies in

achieving SIG success as a "Holding" company supported by a strong corporate culture which inherent

in all employees.

Internalization of the Corporate Culture

CHAMPSBelief

3 Values

7 Key Behaviors

• Diligent and flexible for the best

result

• Always implement new and better

work procedure

• Provide best services and value

added to internal and external

customers

• Act according to

agreement and promises

• Honest, sincere and

responsible

• Open minded and acting first in

the interest of Semen Indonesia

Group

• Positive and responsible

cooperation to maximally

achieve the Company’s

objectives

INTEGRITYSYNERGY MILITANCE

“We Are The CHAMPS!”

56



Organization Structure

* Temporary concurrence** Temporary appointment

Directorate of Business

Strategy & Development

Fadjar Judisiawan

Directorate of Production

Benny Wendry

Directorate of Engineering

& Projects

Tri Abdisatrijo

Corporate Planning Group

HeadAntonius Ardian Bermana (Pgs)**

Business Development, Systems & Corporate

Risk Group HeadAntonius Ardian Bermana*

SCM Infrastructure Management Group

HeadHeru Indrawidjajanto

(Pgs)**

Department of Corporate

Planning

Department of Business

Development

Department of Production Management

Department of OHS

Management

Department of SCM 1

Infrastructure Management

Department of Research & Development

Department of Design

Engineering

Department of Project

Management

Department of Portfolio

Management

Department of Management

Department of Enterprise Risk Management

Department of Quality Assurance

Management

Department of SCM 2

Infrastructure Management

Corporate Secretary

Vita Mahreyni

Department of Institutional Relationship

Department of CSR


Office

Department of Business Process

Development

President Director

Hendi Prio Santoso

Internal AuditDaniel

WirjawanDharmanta

Business Incubation

Team


57



Directorate of Marketing &

Supply Chain

Adi Munandir

Directorate of HR & Legal

Tina T. Kemala Intan

Directorate of Finance

Doddy Sulasmono

Diniawan

SMO & Communications

Group HeadAmi Tantri

Sales Group HeadRahman Kurniawan

Supply Chain Group Head

Wahyu Purnomo

HR Group HeadTigor Pangaribuan

Procurement Group Head

Hadi Setiadi

Finance Group HeadAndriano Hosny P

Department of Investor Relations

Department of Regional 1

Sales

Department of Transport Management

Department of HR Planning &

Policy

Department of Legal

Department of Strategic

Procurement

Department of Financial Planning

& Analysis


Sales

Department of Distribution Management

Department of ICT

Department of Operations Procurement

Department of Accounting

Department of Operations HR

Department of Finance


Sales


Sales

Department of Channel

& Salesforce Procurement

Group of Corporate

Sales

Department of Infrastructure

Sales

Department of Industrial Sales

Department of SOE Sales

Department of Technical Sales

Department of Ready Mix (RMX)

& Concrete

Department of Marketing

Department of Training & Development

Strategic Management

Office


Communications


58



The Board of Commissioners’ Profile

Soekarwo

President Commissioner

Age: 69 years old

Citizenship: Indonesia

Domicile: Surabaya

Educational Background:• Doctorate degree from the Diponegoro University,

Semarang• Master degree in Law from the University of Surabaya,

Surabaya• Bachelor degree in Law from the Airlangga University,

Surabaya

Work Experiences:• East Java Governor (2014-2019)• East Java Governor (2009-2014)

• President Commissioner of Bank Jatim (2005-2009)

Concurrent Positions:

None

Legal Base of Appointment:

Appointed as President Commissioner by the AGMS on

22 May 2019 with terms of office until 2024

Share Ownership: None

Affiliations:

Does not affiliated with members of the Board of

Commissioners, members of the Board of Directors and

Shareholders

Terms of Office: 2019-2024

59



Nasaruddin Umar

Independent Commissioner

Age: 60 years old


Domicile: Jakarta

Educational Background:• Doctorate degree from the Syarif Hidayatullah State

Islamic University, Jakarta (1999)• Master degree from the Syarif Hidayatullah State

Islamic University, Jakarta (1992)• Bachelor degree in Sharia from the Alauddin Islamic

State University, Ujung Pandang (1984)

Work Experiences:

• Vice Minister of Religious Affairs (2012-2014)• Director General of Islamic Community Guidance of

the Ministry of Religious Affairs (2006-2012)


• Great Imam of the State Mosque of Istiqlal

• Professor of the Syarif Hidayatullah State Islamic

University


Appointed as Independent Commissioner by the AGMS

on 31 March 2017 with terms of office until 2022


Affiliations:



Shareholders



Age: 67 years old


Domicile: Jakarta

Educational Background:• Master degree in Management from the Prasetiya

Mulya Business School, Jakarta (1997)• Bachelor degree in Engineering from the Sepuluh

Nopember Institute of Technology, Surabaya (1979)

Work Experiences:• President Director of PT Waskita Karya (Persero) Tbk

(2008 - 2018)• Director of PT Adhi Karya (Persero) (2001-2006)

Concurrent Positions

None


Appointed as Independent Commissioner by the AGMS

on 31 March 2018 with terms of office until 2023


Affiliations:



Shareholders


60




Age: 52 years old


Domicile: Jakarta

Educational Background:

• Master degree in Taxation from the University of Denver, Denver, USA (1997)

• Bachelor of Economics in Management from the

Jenderal Soedirman University, Purwokerto (1990)

Work Experiences:

• Head of Financial Education and Training Agency of the Ministry of Finance (2017-June 2018)

• Advisor of the Minister of Finance for State Revenue Policy Sector (2015-2017)

• Advisor of the Minister of Finance for State Revenue Sector (2015)

• Head of the Center of State Revenue Policy - Fiscal Policy Agency (2012-2015)

Concurrent Positions:Director General of Fiscal Balance of the Ministry of Finance

Legal Base of Appointment:Appointed as Commissioner by the AGMS on 31 March 2017 with terms of office until 2022


Affiliations:Does not affiliated with members of the Board of Commissioners, members of the Board of Directors and Shareholders



Age: 54 years old


Domicile: Jakarta

Educational Background:• Bachelor of Commerce in Marketing from The

University of New South Wales, Sydney, Australia (1988)

Work Experiences:

• Independent Commissioner of PT Ciputra Surya Tbk (1999-2003)

• Chairman of the Bangsa Foundation (1997-1999)

• President Director of PT Adiriasindo (1995)


• Commissioner of PT Tridaya Nusantara International

• Commissioner of PT Brata Nusa Pratama

Legal Base of Appointment:Appointed as Commissioner by the EGMS on 23 January 2015 with terms of office until 2020




61




Age: 51 years old


Domicile: Jakarta

Educational Background :• Master degree in Law from the Law School of University

of Technology, Sydney, Australia (1998)• Bachelor degree in Law from the Sebelas Maret

University, Solo (1992)

Work Experiences:

• Deputy Assistant for Economic Affairs of the Ministry of

State Secretariat (2015-2018)

• Deputy Assistant for Economic Law of the Ministry of

State Secretariat (2012-2018)

• Expert Staff of the Minister of State Secretary for Law

and Human Rights at the Ministry of State Secretariat

(July-October 2012)

Concurrent Positions Deputy of Law and Regulations of the Ministry of State Secretariat

Legal Base of Appointment:Appointed as Commissioner by the AGMS on 22 May 2019 with terms of office until 2024

Terms of Office 2019 - 2024

Affiliations:Does not have any affiliation with the members of the Board Commissioners, members of the Board of Directors and Shareholders



Age: 49 years old


Domicile: Jakarta


• Master degree in Management from the Post-Graduate Program of the Faculty of Economics of the University of Indonesia, Depok (2003)

• Bachelor degree in Chemical Engineering from the

Faculty of Industrial Technology of the Bandung

Institute of Technology, Bandung (1994)

Work Experiences:• Commissioner of PT Perusahaan Gas Negara (Persero)

Tbk (2016-2018)• Commissioner of PT Perusahaan Pengelola Aset

(Persero) (2014-2016)• Commissioner of PT BTDC (Persero) (2011-2014)• Commissioner of PT Timah Investasi Mineral (2008-

2011)• Commissioners of PT Batubara Bukit Kendi (1999-

2008)

Concurrent Positions:Deputy Assistant for Construction, Facilities and Transportation Infrastructure (KSPP) III of the Ministry of SOEs

Legal Base of Appointment: Appointed as Commissioner by the AGMS on 31 March 2018 with terms of office until 2023




62



The Board of Directors’ Profile

Hendi Prio Santoso

President Director

Age: 53 years old


Domicile: Jakarta

Educational Background:• Bachelor of Business Administration (BBA) in

Finance and Economics (double majors) from the University of Houston, Texas, USA (1990)

• Master degree in Economics from the Department of Economics of the University of Texas, Texas, USA (1988)

Work Experiences:• President Director of PT Perusahaan Gas Negara

(Persero) Tbk (2008-4 May 2017)• Finance Director of PT Perusahaan Gas Negara

(Persero) Tbk (2007-2008)

• Investment Banking Director of PT JP Morgan

Securities Indonesia (2001-2007)


• President Commissioner of PT Semen Gresik

(2018-2023)

• Commissioner of PT Semen Indonesia International

(2018-2021)


Appointed as President Director by the EGMS on 15

September 2017 with terms of office until 2022


Affiliations:

Does not affiliated with members of the Board of Commissioners, members of the Board of Directors

and Shareholders


63



Doddy Sulasmono DiniawanDirector of Finance

Age: 53 years old


Domicile: Jakarta

Educational Background:• Master degree in Financial Management from the

Padjadjaran University, Bandung (2005)• Bachelor degree in Economics and Management

from the Parahyangan Catholic University, Bandung (1990)

Work Experiences:• Finance & HR Director of PT Engineering Industries

(April 2016-2017)• Executive Vice President-CEO for Jakarta Kota

Regional Office of PT Bank Negara Indonesia (Persero) Tbk (January-March 2016)

• Executive Vice President-Division Head of Corporate Business Risk of PT Bank Negara Indonesia (Persero) Tbk (June-December 2015)

Concurrent Positions:• President Commissioner of PT Semen Indonesia

Logistik (2019-2024)• President Commissioner of PT Semen Indonesia

Beton (2019-2024)

Legal Base of Appointment:Appointed as Director by the EGMS on 15 September 2017 with terms of office until 2022




Benny Wendry

Director of Production

Age: 50 years old


Domicile: Jakarta

Educational Background:• Master degree in Management from the Gadjah

Mada University, Yogyakarta (2001).• Bachelor degree in Chemical Engineering from the

Bandung Institute of Technology, Bandung (1994)

Work Experiences:• President Director of PT Semen Padang (November

2014-2017)• Finance Director of PT Semen Padang (July

2014-October 2014)• Commercial Director of PT Semen Padang (June

2011-2014)

Concurrent Positions:• President Commissioner of PT United Tractors

Semen Gresik (2019-2022)• President Commissioner of PT Semen Tonasa

(2018-2023)

Legal Base of Appointment: Appointed as Director by the EGMS on 15 September 2017 with terms of office until 2022

Share Ownerships: None



64



Tri Abdisatrijo

Director of Engineering & Projects

Age: 52 years old


Domicile: Jakarta

Educational Background:• Degree in Chemical Engineering from the Sepuluh


Work Experiences:• Commercial Director of PT Semen Tonasa (August

2014- 2017)• General Manager of Energy, Materials and

Environment of PT Semen Indonesia (Persero) Tbk (2014)

• General Manager of OOTC Project Specialist of PT Semen Indonesia (Persero) Tbk (2013-2014)• General Manager of Technical Planning of PT Semen

Tonasa (2012-2013)

Concurrent Positions:• President Commissioner of PT Semen Padang (2019-2024)• President Commissioner of PT Semen Indonesia

Aceh (2018-2023)• (Acting) President Director of PT Semen Indonesia

Aceh (2018-Present)





Fadjar Judisiawan

Director of Business Strategy & Development

Age: 48 years old


Domicile: Jakarta

Educational Background:• Master degree in Management from the Gadjah Mada

University, Yogyakarta (2002)• Bachelor degree in Engineering from the Sepuluh


Work Experiences:• Acting Deputy of Construction Business and

Transportation Infrastructure and Facilities Sector of the Ministry of SOEs (2017)

• Assistant to Deputy of Construction Business and Transportation Infrastructure and Facilities Sector of the Ministry of SOEs (2015-2017)

• Assistant to Deputy of Construction Services Business Sector of the Ministry for SOEs (2014-2015)

• Assistant to Deputy of Research and Information Sector of the Ministry of SOEs (2013-2014)

Concurrent Positions:• President Commissioner of PT Solusi Bangun

Indonesia Tbk (2019-2021)• President Commissioner of PT Sinergi Mitra Investama

(2019-2024)





65



Tina T. Kemala Intan

Director of Human Resources & Legal

Age: 60 years old


Domicile: Jakarta

Educational Background:• Bachelor degree in Psychology from the Padjadjaran

University, Bandung (1985)

Work Experiences:• Director of Human Resources, General Affairs and IT

PT Angkasa Pura II(2017-2019)• HR Expert, GIZ (2015-2016)

Concurrent Positions:• President Commissioner of PT Sinergi Informatika

Semen Indonesia (2019-2024)• President Commissioner of PT Industri Kemasan

Semen Gresik (2019-2024)

Legal Base of Appointment:Appointed as Director by the AGMS on 22 May 2019 with terms of office until 2024




Adi Munandir

Director of Marketing & Supply Chai

Age: 38 years old


Domicile: Jakarta

Educational Background:• Master degree in Management Science from the

University of Indonesia, Depok (2013)• Bachelor degree in Electrical Engineering from the

University of Indonesia, Depok (2003)

Work Experiences:• Group Head of Marketing of PT Perusahaan Gas

Negara (Persero) Tbk (2016-2018)• Commissioner of PT Nusantara Energy Solutions

(2017-2018)• Head of Strategic Management Division of PT

Perusahaan Gas Negara (Persero) Tbk (2015-2016)• Executive Officer – Strategic Management Office of

PT Perusahaan Gas Negara (Persero) Tbk (2013-2015)

Concurrent Positions:• President Commissioner of PT Semen Kupang

Indonesia (2019-2024)• Commissioner of PT Solusi Bangun Indonesia Tbk

(2019-2021)

Legal Base of Appointment:Appointed as Director by the AGMS on 30 April 2018 with terms of office until 2023




66



Indarung Plan

67



Shareholders’ Structure and Composition

51.01% 48.99%

The shareholders’ composition of PT Semen Indonesia (Persero)

Tbk as of end of 2019 is as follows:

Shareholders Total Shares Percentage of Share Ownership

Shareholders with 5% or More Shares

Republic of Indonesia

C/Q Minister of SOEs of the Republic of Indonesia3,025,406,000 51.01

Members of the Board of Directors and Commissioners as Shareholders

The Board of Commissioners 0 0

The Board of Directors 0 0

Public Shareholders Group with Less Than 5% of Shares

Public (less than 5%) 2,906,114,000 48.99

Total 5,931,520,000 100.00

Government of IndonesiaC/Q The Ministry of SOEs

Public

Controlling ShareholdersNon-Controlling Shareholders

68



The Ministry of SOEs

Controlling Shareholders’ Profile

The Ministry of SOEs has duties and functions to

fostering state companies (SOEs) in Indonesia.

The Ministry of SOEs has been around since

1973, which was originally a part of the work unit

within the Ministry of Finance. Furthermore, the

organization has experienced several changes and

developments.

As the role, functions and contribution of SOEs to

state finance are very significant, in

1998 the Indonesian government changed the

SOEs organization’s foster and manager to be

at the ministerial level. The initial changes from

organization into ministry occurred during the reign

of the 6th Development Cabinet, under a new

name of the State Minister of Investment and SOEs

Development/Head of SOEs Development Agency.

In 2009, following the nomenclature changes

across ministries, this ministry also changed its

nomenclature to become the Ministry of SOEs.

Shareholders’ Composition Based on Classification

Type Number of Shareholders Total Shares Composition (%)

Local Investors

Republic of Indonesia 1 3,025,406,000 51.00558Indonesian Individuals 5,677 42,583,992 0.71793Employees 32 122,000 0.00206Cooperatives 8 409,800 0.00691Foundations 8 5,704,100 0.09677Pension Funds 128 116,189,900 1.95886Insurance 86 193,978,567 3.27030Banks 2 35,390 0.00060Public Companies 57 248,706,618 4.19297Associations 1 5,000 0.00008Other Business Entities 18 84,000 0.00142Mutual Funds 280 207,921,729 3.50537Sub-Total 6,298 3,841,183,096 64.75885

Type Number of Shareholders Total Shares Composition (%)

Foreign Investors

Foreign Individuals 56 399,700 0.00674Foreign institutions 923 2,089,937,204 35.23443Sub-Total 979 2,090,336,904 35.24117Total 7,277 5,931,520,000 100.00000

69



Composition of Officials

Minister : Erick Thohir

Vice Minister : Budi Gunadi Sadikin

Kartika Wirjoatmodjo

Secretary : Susyanto

Address : Jl. Medan Merdeka Selatan No.13

Jakarta 10110 Indonesia

Tel. +62-21 29935678

Fax. +62-21 29935740

Chronology of Issuance and/or Listing of Shares

The Company initially listed its shares through

Initial Public Offering (IPO) or ‘Go Public’ in Jakarta

Stock Exchange (now IDX) on 8 July 1991. Since the

IPO upto reporting year 2014, the Company has

exercised 3 corporate actions that changed the

volume of outstanding shares, which are:

• Rights Issue on 2 June 1995, which changed

total shares from 148,288,000 to 593,152,000,

accompanied by changes in the value of

authorized capital and paid-up capital.

• Stock Split 1:10 on 7 August 2007, which increased

total shares to 5,931,520,000.

• Shares buy-back and sellback between 13

October 2008 to 9 January 2009 (buyback) and

6-7 October 2009 (sellback), which eventually

did not affect the volume of outstanding shares.

Date DescriptionNominal of

Shares (Rp)Total Shares

Total

Outstanding

Shares

Stock Exchange

17 May 1991 IPO 7,000 40,000,000 40,000,000 JSX

4 July 1991 Company Listing 40,000,000 70,000,000 JSX

30 May 1995 Company Listing 78,288,000 148,288,000 JSX

2 June 1995 Rights Issue 444,864,000 593,152,000 JSX

7 August 2007 Stock Split 1:10 5,000 5,338,368,000 5,931,520,000 IDX

13 October 2008

- 9 January 2009Buyback Shares 2,919 68,032,000 5,863,488,000 IDX

6-7 October 2009 Sell back Shares 6,075 68,032,000 5,931,520,000 IDX

70



Chronology of Issuance and/or Listing of Other Securities

SecuritiesStock

Exchange

Date of

Issuance

Tenor

(Years)Currency

Value

(billion)

Maturity

Date

Interest

Rate

Share GradeTrustee

2019 2018

Semen

Indonesian

Bond I

Phase I Year

2017

IDX20 June

20175 Rupiah 3,000

20 June

20228.6% AA AA+

PT Bank

Tabungan

Negara

(Persero) Tbk

Semen

Indonesian

Bond I

Phase II Year

2019 A Series

IDX28 May

20195 Rupiah 3,364

28 May

20249% AA

PT Bank

Tabungan

Negara

(Persero) Tbk

Semen

Indonesian

Bond I

Phase II Year

2019 B Series

IDX28 May

20197 Rupiah 714

28 May

20269.1% AA

PT Bank

Tabungan

Negara

(Persero) Tbk

Cement WarehouseNarogong Plant

71



Loading and unloading cement activityat Tuban port

72



Subsidiaries

The Company has subsidiaries engaged in cement-related businesses, from cement production,

distribution, cement product utilization and other supporting srvices.

NameLine of

Business

Share

Ownership

(%)

Year of

Operations

Total Assets

in 2019

(Rp million)

Address

PT Semen Padang Cement

Production

99.99% 1913 9,914,107 Indarung, Padang 25237,

Sumatera Barat

Tel. : +62-751-815250

Fax : +62-751-815590

Email : [email protected]

www.semenpadang.co.id

PT Semen Gresik Cement

Production

99.96% 2017 5,713,277 Jl. Veteran Gresik 61122

Jawa Timur, Indonesia

Tel. : +62-31-3981732

Fax : +62-31-3983209

PT Semen Tonasa Cement

Production

99.99% 1968 8,059,432 Kantor Pusat

Desa Bantoa,

Kec. Minasate’ne, Kab. Pangkep,

Sulawesi Selatan 90651

Tel. : +62-410-312345

Fax : +62-410-310113


www. sementonasa.co.id

PT Thang Long

Cement Company

(TLCC)

Cement

Production

70.00% 2008 2,212,022 Le Loi Commune – Hoanh Bo District –

Quang Ninh, Vietnam

Tel. : +84-03-33691325

Fax : +84-03-33691326

Email : www.thanglongcement.com.vn

www.thanglongcement.com.vn

PT Sinergi Mitra

Investama (SMI)

Building Rent 97.00% 2012 44,010 Perumdin PT Semen Indonesia

(Persero) Tbk.

Jl. Awikoen Blok A-7 Segunting,

Gresik 61122

Tel. : +62-31 3970374

Fax : +62-31 3972263

PT Semen

Indonesia Beton

(SIB)

RMX

Production

99.99% 2012 1,955,369 Jl. Tebet Timur Dalam VIII X/15 Jakarta

Selatan 12820

Tel. : +62-21-8295327

Fax : +62-21-29222849

Email: info@semenindonesiabeton.

com www.semenindonesiabeton.com

73



NameLine of

Business

Share

Ownership

(%)

Year of

Operations

Total Assets

in 2019

(Rp million)

Address

PT United Tractors

Semen Gresik

(UTSG)

Limestone and

clay mining

services

55.00% 1992 544,900 Desa Sumberarum, Kec Kerek,

Kab. Tuban

PT Industri

Kemasan Semen

Gresik (IKSG)

Cement

Packaging

Production

60.00% 1994 405,019 Desa Socorejo, Kec. Jenu,

Tuban-Jawa Timur 62352

Tel. : +62-356-491200

Fax : +62-356-491234


www.iksg.co.id

PT Kawasan

Industri Gresik

(KIG)

Industrial

Regional

Development

65.00% 1991 396,560 Jl. Tridharma No.3 Gresik 61121

Tel. : +62-31-3984707

Fax : +62-31-3984472


www.kig.co.id

PT Semen Kupang

Indonesia

Cement

Distribution

99.48% 2019 204,843 Jl. Yos Sudarso, Alak, Tenau, Kupang,

NTT

PT Semen

Indonesia Industri

Bangunan* (SIIB)

Building

Materials

100% - 32,471,647 Jakarta

PT Semen

Indonesia Aceh

(SIA)

Cement

Production

52.28% - 569,861 Jl. Banda Aceh – Medan KM 107

No.100,

Gampong, Kampong Baro, Kec. Pidie,

Kab. Pidie 24151

PT Sinergi

Informatika Semen

Indonesia (SISI)

Information

System

100% 2014 113,264 Graha Irama (Indorama) Building

lantai 6, Jl. HR Rasuna Said kav. 1-2,

Jakarta 12950

Tel. : +62-21-5213711

Fax : +62-21-5261176


www.sisi.id

PT Semen

Indonesia

Internasional (SII)

Trading,

services,

logistic

management

and investment

100% 2016 517,328 Menara Anugrah,

Kantor Taman E.3.3, No.22F

Jl. Mega Kuningan Lot 8.6-8,7,

Jakarta12950

Tel. : +62-21-57853977

Fax. : +62-21-57942294

www.semenindonesiainternational.com

PT Semen

Indonesia Logistik

(SILOG)

Trading,

transportation,

loading

services and

construction

73.65% 1974 2,243,388 Jl. Veteran No.129, Gresik-

Jawa Timur 61122

Tel. : +62-31-3981463

Fax : +62-31-3982304


www.silog.co.id

Note: (*) SIIB is a parent company of PT Solusi Bangun Indonesia Tbk.

74



Corporate Group Structure

PT Semen Gresik

99.96%

PT Semen Kupang Indonesia

99.48%

SBI(Via SIIB)

98.31%

PT Semen Indonesia Aceh

52.28%

TLCC

70%

PT Semen Tonasa

99.99%

PT Semen Indonesia

Industri Bangunan

100%

PT Semen Padang

99.99%

75



PT Semen Indonesia Logistic

73.65%

PT Kawasan Industri Gresik

65%

Industri Kemasan Semen Gresik

60%

PT Semen Indonesia Beton

99.99%

United Tractor Semen Gresik

55%

PT Sinergi Informatika

Semen Indonesia

100%

PT Semen Indonesia International

100%

PT Sinergi Mitra Investama

97%

76



Supporting Institutions and Professionals

Certified Public

Accountant

Securities Rating

Agency

Securities Administration

Bureau

Name of Institution/Profession KAP Tanudiredja, Wibisana, Rintis & Rekan

(A member of PwC network of firms)

Business License Number: KEP-241/KM.1/2015

Address World Trade Canter 3, Jl. Jend. Sudirman Kav. 29-31

Jakarta 12920 - INDONESIA

Tel. : +62-21-50992901

Fax : +62-21-52905555/52905050

website : www.pwc.com/id

Services Provided Public audit service for Consolidated Financial

Statements for the fiscal year ended 31 December, 2019

Assignment Period July 2019-April 2020

Cost Rp6,477,250,000

Name of Institution/Profession PT Pemeringkat Efek Indonesia

Address Panin Tower Senayan City

Lt. 17 Jl. Asia Afrika Lot. 19 Jakarta 10270 Indonesia

Tel. : +62-21-72782380

Fax : +62-21-72782370

Website : www.pefindo.com

Services Provided Services Provided Annual monitoring service for

sustainable bonds owned by Semen Indonesia and its

subsidiaries

Assignment Period 10 March 2019-10 March 2020

Cost Rp155,000,000

Name of Institution/Profession PT Datindo Entrycom

Address Jalan Hayam Wuruk No. 28 Jakarta 10120

Tel. : +62-21-3508077 (hunting)

Fax : +62-21-3508078

Website : www.datindo.com

Services Provided Services Provided Stock administration services,

dividend administration, RUPS securities administration

Assignment Period January-December 2019

Cost Rp241,686,000

Public Notary

Name of Institution/Profession Leolin Jayayanti, SH

Address Jl. Pulo Raya VI/I, Keb. Baru – Jakarta 12170

Tel. : +62-21-72787232-33

Fax : +62-21-7234607

Services Provided Services Provided GMS Notarial Services

Assignment Period 2019

Cost Rp57,500,000

77



78



Company Website Information

79



Semen Indonesia’s website consists of 5 channels with the following contents:

SIG’s commitment to continue to improve the

implementation of the principle of transparency

as mandated by Law No. 8 of 1995 on Capital

Markets and to improve the implementation of

good corporate governance (GCG), in particular

to shareholders, customers, communities,

governments, and other stakeholders is through the

presentation of information on the main website:

www.SIG.id.

Channel Name Sub Themes

Home

About Us

Products & Solutions • Residential

• Commercial

• Concrete

• Energy

• Airport & Port

• Road

• Services

• Other Building Materials

News & Articles News

Career Working at SIG

Investor • Prospectus Public Offering

• Annual & Sustainability Reports

• Financial Information & Highlights

• Shareholder Information

• Bond & Sukuk Information

• Business Related News

• AGMS-EGMS

• Sales Reports

• Corporate Presentations

In accordance with Article 6 of Regulation

of Financial Services Authority (POJK)

No. 8/POJK.4/2015 on Public Company’s website, it

is regulated that a public company shall submit the

following information:

1. General Information about Issuer or a Public

Company

2. Information for and about investors

3. Corporate Governance information

4. Corporate Social Responsibility information

80



Indonesia Original Brands (IOB) Awards2019

Awards and Certifications

Awards

Date : 17 January

Award Sector : CSR

Institute : Regional Government of Tuban

Award Scale : Regional

Date : 31 July

Award Sector : Marketing

institute : SWA Magazine and Business Digest

Award Scale : National

Date : 5 August


Institute : Mark Plus


Date : 28 March

Award Sector : Communications

Institute : PR Indonesia


Date : 23 April

Award Sector : Mining

Institute : Ministry of Environment and Forestry


Date : 24 April


Institute : Mark Plus


Most Optimum Company for UPZ

Go ASEAN Champion 2019

PR Indonesia Awards (PRIA)

SOEs/Private Enterprises as Inspiring Borrow-to-Use Permit Holders (IPPKH) for Forest Reclamation

SOE Marketers Award

81



Date : 14 August

Award Sector : Innovation

Institute : IDX Channel


Date : 29 August

Award Sector : Environment

Institute : Economic News


Indonesia Stock Exchange (IDX) Channel Innovation Award 2019

Top 5 Social Business Innovation Company 2019 for Cement Category

Date : 30 August

Award Sector : Communications

Institute : PR Indonesia


PR Indonesia Award for Most Popular Online Media Category

Date : 26 September


Institute : RRI


RRI’s SOE Award

Date : 17 September

Award Sector : Investors Relations

Institute : Alpha South East Asia

Award Scale : International

Annual Institutional Investor Awards for Corporations

Date : 14 October

Award Sector : GCG

Institute : Indonesian Institute for Corporate Directorship (IICD)


Date : 13 December

Award Sector : Mining

Institute : ASEAN Minerals

Award Scale : International

Best Right Shareholders Big Cap Company

Best Practices in Sustainable Mineral Development (Non-Metallic Mineral Mining)

82



Certifications

Name of

CertificateValid Term Scope of Certificate Description Institution Scale

ISO

50001 : 2011

23 May 2019

–

20 August 2021

Manufacture of

Cement Plant 4

& 5 and Power

Generation Facilities

Unit C & D, PT Semen

Tonasa

Manufacture of Cement

Plant 4 & 5 and Power

Generation Facilities

Unit C & D, PT Semen

Tonasa

Sucofindo Regional

ISO

50001 : 2018

17 June 2019

–

17 June 2022

Manufacture of

Cement and Clinker

Energy Management

System

SGS International

ISO

9001 : 2015

20 October 2018

–

20 October 2021

Management of

Business Development,

Research &

Development,

Manufacturing,

Supply Chain,

Procurement &

Marketing for Cement

& Building Materials

and Manufacture of

Cement at Grinding

Plants (Slag Portland

Cement, OPC, PPC,

PCC)

The quality

management

standard system

designed to help

organizations

ensuring their

capability to meet

The needs of their

customers &

stakeholders

and comply with

Prevailing laws

and regulations

Related to their

products or services

SGS Regional &

International

ISO 14001 14 October 2018

–

202 October 14

Management of

Business Development,

Research &

Development,

Manufacturing,

Supply Chain,

Procurement &

Marketing for Cement

& Building Materials

and Manufacture of

Cement at Grinding

Plants (Slag Portland

Cemnet, OPC, PPC,

PCC)

International standards

which determine

requirements for

structured management

approach for

environmental

protection

SGS International

83



Name of

CertificateValid Term Scope of Certificate Description Institution Scale

ISO

17025 : 2017

24 April 2019

–

23 April 2024

Testing Laboratory The quality standards

made for testing

laboratories and

calibration, which

divided into two main

parts: Management

Requirements and

Technical Requirements

The National

Accreditation

Committee

(KAN)

International

Product

Certificate

for SNI Logo

Usage (SPPT)

9 October 2019

–

8 October 2023

ISO 8363: 2017

Portland Slag Cement

Product Certification for

SNI logo for Portland

Slag Cement under the

trademark Max Strength

Cement

Grand

Central for

Technical

Materials

and Products

(B4T)

National

SMK3/

OHSAS 18001

Cement Producer International

standards for

Occupational Health

and Safety

Management System

The Ministry

of Labor of

the Republic

of Indonesia

National

84



Human Resources

In response to these changes, the role of human

resources management must change as well. The

Company introduced a new paradigm that is more

in line with the changing business condition and

targets. The most fundamental change is to change

the mindset of human resources management from

Human Resource (HR) into Human Capital (HC).

This change is not just a terminology change. More

than that, just like the "capital", then its value must

The Company sees Human Resources (HR) as a very valuable asset in which the process of achieving the vision,

mission and objectives of the Company will not be successful without the support of excellent and high quality

human resources. On this basis, the Company puts HR as a valuable asset to maintained and developed in

order to sustain their support towards the Company's growth. Therefore, the Company is fully committed to run

a professional HR management, improve their competence on a regular basis, assess their performance based

on a fair assessment system, as well as provide career paths and remuneration package in accordance with their

performance and competence.

A Paradigm Shift

Along with the development of the increasingly

dynamic cement industry, the Company's

organization is also changing. Currently, the

Company becomes a Strategic Company Holding,

which oversees several Operating Company

(OpCo). The changing of the Company's business

orientation from cement producer to building

materials and solutions provider also changed the

Company’s entire components.

85



Competence Development

The Company is always working to improve the

knowledge and skills of all employees, both in

order to support work quality improvement as well

as the development of the employee’s potential and

career. The Company also encourages employees

to be more open and positive and equip them with

trainings to help them at work.

As a major asset, the Company is committed to

continuously develop our human resources. The

Balance between Quality and Quantity

The basic philosophy of management and human resources development of Semen Indonesia is to support the organization's strategies and objectives. Therefore, management strategies and human resources development should be aligned with the Company’s strategy and objectives.

In short, strategy for human resources management and development in Semen Indonesia is by maintaining a balance between the quality and quantity of the

human resources. The existence of employees with reliable capacity and competence is the key factor that determines the success of the Company. However, the Company must also considers the adequate number of employees so as not to burden the Company.

Based on this philosophy, in 2019 the Company has issued a circular letter to all subsidiaries to perform coordination for employee recruitment. This was conducted in oerder to achieve the Company's objective to become an agile organization.

Company is actively organizing various trainings

and education for employees in order to help the

Company to stay advance when facing a dynamic

business development.

Semen Indonesia continuous to conduct competence

development on various aspects, ranging from tools

used, the program prepared and given training

materials. There are five aspects of investment

related to human resources development of the

increased, especially in terms of skills, knowledge

and behavior of our employees.

Aligned with those changes, another paradigm

that should also change for each HC staff, is the

mindset to see and realize the importance of

synergy between the Operating Companies (OpCo)

in developing the Company's in order to ensure

long-term business growth. Thus, every individual

of the Company should be able to work anywhere

within the OpCos with high militance and integrity.

The same mindset change is also needed in terms

of business process, from focusing on the cement

production process to understand and meet

the demands of our customers in terms of the

availability of building materials (including cement

and derivatives cement products) to support a rapid,

precise and economical physical development.

With this new paradigm, the Human Capital

management is no longer functioning as a

supporting unit, but as the Company’s strategic

partner to help achieve its objectives. Therefore,

the HC management strategy should be aligned

with the Company’s business strategy. One of

the examples that have been implemented is

the Corporate University (Corpu), which altered

its function from learning center for employee

competence development into a business solution

provider.

To ensure a paradigm shift implementation, the

Company through its Directorate of Human Capital

has identified and scheduled changes in three

strategic areas of HR management:

1. Human Capital mindset transformation in carrying

out the business processes;

2. Reviewing and improving Human Capital Master

Plan by improving HC Management System;

3. Improving Development Pattern for HC

Competence.

86



employee development in the future, as well

as those from performance issues like failure in

achieving work unit targets, and business issues

faced by the Company.

As part of the implementation of the HR

management paradigm change, the Company

implemented changes to the policy learning

method of training materials. Initially, the Company

was limited to carrying out learning using the In-

class method, currently the Company applies the

Blended Learning method. This method is also

called Method 70:20:10, where number 10 shows

a 10% portion of learning time in class with the

guidance of the Steering Committee. Number 20

shows a portion of 20% of the time needed to

conduct social interaction, where the trainees carry

out activities outside the classroom in the form

of meetings, form networks, share experiences,

including coaching and mentoring activities. While

number 70, shows the allocation of 70% of the time

used by participants in carrying out daily activities,

especially in the office environment, in applying all

the knowledge gained in the training class.

In addition, the learning programs are grouped

into three major groups, namely: Personal Mastery,

Leadership Mastery, and Business Mastery.

a. Personal Mastery

Personal Mastery is a learning group with themes

related to individual competency development

programs to strengthen the character and corporate

culture. Programs such as CHAMPS Strengthening,

strengthening integrity and national insight are the

examples of programs within this group.

Held together with the National Resilience Institute

of The Republic of Indonesia (Lemhannas RI),

the strengthening of national insight program is

conducted for the Board of Directors and Echelon

1 Officials. As part of the effort to achieve the

paradigm shift, the Company is increasing the

content of training materials on the character and

corporate culture.

b. Leadership Mastery

Leadership Mastery is a learning group associated

with leadership development at all levels. The

Company believes that the working climate is

determined by the leader of a work unit, therefore

Company: the Leader as Teacher and Retired Faculty

(via CDL - Corpu), Predicting Future Capability

(through training), Institute for Professional

Certification/LSP (Professional Certification Institute,

Knowledge Management Strategy & Innovation, as

well as Assessment Center & Counseling.

1. Center of Dynamic Learning Semen Indonesia Corporate UniversityIn 2014, the Company formed a Corporate

University, named as The Center of Dynamic

Learning Semen Indonesia Corporate University

(CDL-SI Corpu) designed to be a learning center

for solutions provision, with capability to provide

solutions on issues faced by the Company’s

business. Establishment of this institution is

aligned with the Company’s transformation as a

Strategic Holding Company with more focus on

business development and regional expansion,

thus requiring CDL- SI Corpu to be more proactive

in responding to business issues.

CDL-SI Corpu also responsible for the provision of

business solutions for the Company’s employee

competence development, its subsidiaries in the

Group and its Partners in the Company’s business

chain, proactively responding to the needs of

current and future competencies, by changing its

learning orientation.

In organizing the program, the learning programs

are designed based on learning focus, which is

grouped into 8 academies, namely:

1) Production & Research Academy;

2) Marketing & Distribution Academy;

3) Engineering & Project Academy;

4) Business Development Academy;

5) Finance & Operational Academy;

6) Leadership Academy;

7) Corporate Culture school; and

8) Customer & Stakeholder Center.

2. Training (Learning & Development) ProgramFurthermore, the Company made material

adjustments in the preparation of the Company’s

learning plan based on the Learning Need

Diagnosis (LND) approach. This approach is

carried out to answer the problems of learning

needs that originate from employee competency

gaps in carrying out their current work and

87



leadership development becomes one of the

focus of the development programs:

• Global Leadership Development Program for

Echelon 1,

• Transformational Leadership Development

Program for Echelon 2,

• Operational Leadership Development Program

for Echelon 3, and

• Emerging Leadership Development Program

for Echelon 4 are continuously implemented

and enhanced in order to ensure the availability

of qualified leaders at the Company.

c. Business Mastery

Business mastery is a group of competency

development programs, primarily technical

competency functions in the Company, ranging

from production, R&D, engineering, project,

marketing, distribution, logistics, finance, HC,

business development and other operational

functions. Development in the business mastery

is complemented by an assessment and

certification program to ensure that the employee

is competent in their work unit.

3. Professional Certification AgencySince 2015, the Company has established

a Professional Certification Institute (LSP) in

cooperation with the National Professional

Certification Board (BNSP). LPS as the center of

the implementation of competency certification in

the Company and Subsidiaries has the following

tasks:

i Prepares and develops certification scheme,

ii Prepares assessment and competency test

tools,

iii Provides assessors,

iv Performs certification,

v Performs certification maintenance

surveillance,

vi Determines requirements, verifications and

competency test site (TUK),

vii Maintains the performance of assessors and

TUK, and

viii Develop certification services. Currently,

LPS has 51 types of certifications to improve

employees’ competence in regional level.

4. Knowledge ManagementThe Company believes that Knowledge

Management is a pillar for the creation of

learning organization. Therefore, Knowledge

Management is defined as one of the areas of

SICC, under the name of Center of Knowledge

Management (CKM). The CKM’s is established

to support the Company in managing the

knowledge and use it to face intense competition

in the future.

Development Program

The Semen Indonesia leadership development program is divided into:

Soft : Focused on improving soft skills, so that each employee has an API character

Basic : Focused on basic skills in managerial and communication (including presentations)

Hard : Focused on technical capabilities tailored to the needs of the Company

This development program is also adjusted to the development program of each echelon, both Regular and Talent.

Soft Basic Hard Reguler Talent

Agile

Persistent

Innovative

Problem solving & Decision

Impactful Communication

making

Negotiation

How to lead meeting

Leader as coach

Customer service & commercial

Understanding Business Line &

Product SMI

CMO

CFO

Logistik

GLDP

TLDP

OLDP

ELDP

ICDP

Solid kontributor

TTDP

STDP

MTDP

ETDP

BTDP

Sleeping tiger

Rotasi di fungsi yang berbeda

Program pengembangan

kompetensi

Promotable Top Talent

Rotasi (promosi)

CoachingMentoringCounseling

Job AsignmentJob Shadowing

Echelon 1

Echelon 2

Echelon 3

Echelon 4

Echelon 5

88



Organization’s knowledge is managed under 9

competencies, in which, the first six competencies

is related to knowledge sharing, while the

remaining 3 competencies are the provision of

supporting infrastructure, structured policies

and commitment of the leaders in knowledge

management. The 9 competencies are:

1. Expert Locator

2. Communities of Interest

3. Peer Assist

4. Shared Learning

5. Project Retrospectives

6. Community of Practice

7. Technology

8. Change Management

9. Strategy

The Company has designed and implemented

knowledge management programs as follows:

• Leader Cafe

Leader Cafe is consistently and sustainably

conducted as a means of sharing knowledge

and experience from senior leaders to other

leaders, usually by the Board of Directors,

Commissioners, or external figures qualified in

certain competency aspect. This concept is an

implementation of Shared Learning activities in

Large Scale, involving future leader candidates,

namely the work unit leaders, as participants.

With the concept of such a cafe, participants

are expected to enjoy the process of sharing

knowledge provided by the resource person.

• SMI D'Forum

SMI D’Forum is a learn-and-share activity, which

is a channel to share experience and discussions,

hosted by external speakers and internal experts

as resource persons.

Discussions with experts and cross-department

or cross-corporate teams involving hot topics

from certain fields, relevant to the Company’s

business strategy in accordance with the critical

knowledge required.

89



Electronic Learning (E-Learning)The Company has a complete e-learning facility as an

online learning portal. E-learning is a breakthrough

in delivery method to boost cost efficiency for

learning in accordance with the function of the

features in it, such as:

• Learners has access freedom to online learning

materials, regardless of time and place. The

online learning materials provided are varied,

from e-books, online article links, as well as

materials designed for specific learnings.

• Learners can also do virtual classroom learning

simultaneously using video conference with

facilitators from various operational locations

of the Company, as well as online discussion

forums, both through video conferences and chat

rooms.

AcademyIn addition to learning with online method, the

Company also developed the learning academy

method, however the academy approach conducted

by the Company is not entirely done in class, but in

a mix of classroom and field practice approach with

bigger weight on the practical session.

The Company currently has 8 academies:

1. Production & Research Academy

2. Marketing & Distribution Academy

3. Engineering & Project Academy

4. Business Development Academy

5. Finance & Operational Academy

6. Leadership Academy

7. Corporate Culture School

8. Customer & Stakeholder Center

Quality Improvement in the Implementation of Human Resources Operational ActivitiesThe HC Directorate of the Company has several

important aspects to be improved, such as the

simplification of SPPD (Business Travel Warrant) &

Service Desk, and the SAP HCM’s Reblueprint as

the main aspect that must be corrected.

1. SPPD & Service Desk Simplification

In order to strengthen internal communication,

a service desk is provided that can be used by

employees as a forum to find out information related

to HR management and development. In addition,

Supporting Facilities for Human Resources Development

HC also developed the SPPD Simplification program

to facilitate employees in conducting the SPPD

process and bypassing the SPPD bureaucracy to

make the process faster.

2. Reblueprint of SAP HCM and Human Resources

Information System Refreshment

In order to support the operations of human

resources management, the Company integrates

the HC management with SAP based information

technology. There are ten (10) Human Resource

Information Systems (HRIS) that have been

implemented in the Company, such as Organization

Management, Personnel Administration, Payroll,

Time Management, Travel Management, People

Development, Learning Solution, Performance

Management System, Appraisal Management,

Compensation Management.

Human Resource Information System is continuously

reviewed, with the objective of continuously

improving the implemented modules, as well as

to implement new modules needed to improve

employee management standards. Changes in

business conditions and orientation, made the

Company develop a new business model through

the development of downstream cement business

units and cement related businesses, this has an

impact on the necessity to integrate all the systems

available on the existing Operating Companies.

The Company also conducts SAP HCM Blueprint

redesign especially in the Talent Management

System module.

90



The Company seeks to build a harmonious industrial

relations with employees through mutual respect

and obey the rights and obligations of each party.

The Company welcomes the existence of Trade

Union organizations within the Company. Trade

Union Organizations are the Company's partners in

matters related to employment.

Meanwhile, as part of the company’s commitment

to fostering a dignified working relationship with

all employees, the Company has renewed the

Collective Labor Agreement document as a result

of discussions with the Semen Indonesia Trade

Union. The Company ensures the rights of all SIG

employees are guaranteed in the agreement.

In 2019, CLA points in each public entity are

standardized in accordance with HR systems and

policy guidance.

Industrial Relations

91



Employee Demography (The Company and Subsidiaries from Cement Business)

In 2019, the number of employees of the Company

has increased quite high, from 5,448 people by the

end of 2018 to 7,769 people at the end of 2019. This

increase resulted from the acquisition of Holcim

Indonesia.

Employees Based on Employment StatusStatus 2019 2018 2017 2016

Permanent Employees 7,644 5,403 5,465 5,145Internship Employees 0 0 1 10Contract Employees 125 45 87 89Total 7,769 5,448 5,553 5,244

Employees Based on Position LevelPosition Level 2019 2018 2017 2016

Echelon 1 115 116 164 151Echelon 2 327 323 359 315Echelon 3 1,110 685 776 674Echelon 4 3,372 1,835 2,037 1,825Echelon 5 2,769 2,489 2,217 2,279Total 7,769 5,448 5,553 5,244

Employees Based on AgeAge 2019 2018 2017 2016

<25 years 139 175 190 29726-30 years 1,214 1,145 1,092 1,04131-35 years 1,432 979 763 70136-40 years 885 541 580 59841-45 years 1,554 1,221 1,377 1,17046-50 years 1,645 908 941 747> 50 years 875 479 610 690Total 7,769 5,448 5,553 5,244

Employees Based on SexSex 2019 2018 2017 2016

Male 6,990 4,910 5,111 4,812Female 779 538 442 432Total 7,769 5,448 5,553 5,244

Employees Based on EducationEducation Level 2019 2018 2017 2016

Postgraduate 277 181 187 176Bachelor 2,643 1,752 1,704 1,443Diploma 1,061 636 617 702Senior High School & Equivalent

3,788 2,879 3,045 2,923

Total 7,769 5,448 5,553 5,244

The Total Solution Services also affect our efforts in maintaining business sustainability, such as through the implementation of digital reporting system and integrated management information to improve our transparency, including in disseminating information on various initiatives undertaken in environmental and social sectors.

Go Beyond Best Practices

MANAGEMENT DISCUSSION AND ANALYSIS

4

96



Economy and Industrial Overview

Overview of the National Economy

Amidst of global economic turmoil, Indonesia’s

strong economic fundamental allowed the country

to have a good economic growth. Based on data

from the Central Statistics Agency, Indonesia's

economic growth in 2019 grew by 5.02%. Although

lower than the previous year’s economic growth of

5.17%, such economic growth was one of the highest

achievements among the G20 member countries.

Sustained economic growth was supported by strong

household consumption aligned with maintained

inflation at a low level of 2.72%, a decrease compared

to 2018, which was 3.13%. A stable inflation rate was

driven by controlled price of staple foods aligned with

maintained domestic productivity and distribution of

staple foods in the country.

Controlled inflation was also supported by the

government's strong commitment to maintain

the inflation of the government-regulated price

of goods, such as fuel and energy. Proactive

roles of the Government and Bank Indonesia (BI)

in coordinating with the Local Governments to

maintain inflation has also been improved.

Overview of the Global Economy

The global economy dynamics in 2019 is greatly

affected by the increasing tension of trade relations

between the United States (US) and China. The

economic growth realization throughout 2019

showed a downward trending, both from developed

and developing countries.

US economic growth realization in 2019 was 2.3%,

lower than the previous year's growth of 2.9%.

Likewise, China was also decreased from 6.6%

in 2018 to only 6.1% in 2019. It is also the lowest

economic growth for China for the last 29 years.

Commodity prices were pressured aligned with

decreased demands. in 2019, average daily oil price

for Brent decreased to USD64.2 per barrel, from

USD71.1 per barrel. Likewise, coal and palm oil as

the main commodities in Indonesia. Average daily

price for coal and palm oil declined to respectively

USD524.7 and USD77.0 per metric ton, from

previously USD559.5 and USD107.2 per metric ton

in 2018. This decline is impacting the economy of

commodity-producer countries such as Indonesia.

Responding to the global economic slowdown,

central banks around the world are doing fiscal

stimulus and monetary easing policy, including

lowering their interest rates. Throughout 2019, the

Federal Reserve (US Central Bank) was recorded

of cutting their interest rate twice for the Federal

Funds Rate (FFR), from 2.50% to 1.75%. in addition

to lower interest rate, the Fed also implemented

an accommodative policy through the purchase of

securities to cope with tightened liquidity in the US

financial system.

The policies adopted by the Fed are influencing the

capital flows to emerging markets, such as China,

India, Brazil, Thailand, and the Philippines, as well

as Indonesia. Based on data from the Institute for

International Finance (IIF), total foreign capital

flows into emerging markets throughout 2019, both

in the stock market and bond market, reached

USD78 billion, after the previous year’s flow of

foreign capitals of only USD9, 9 billion. This also

gives space for some central banks in developing

countries to reduce their interest rates. Such policy

of interest rates reduction is expected to bring a

positive impact on the global economic growth in

2020.

97



Indonesian economic stability was also reflected in

Rupiah movement, which was appreciated against

the US Dollar with lower volatility compared to

2018 performance. Additionally, indicators of trade

balance and current account balance in 2019 was

also better than the previous year. Although deficit

remains, but the trade balance deficit in 2019, which

was amounted to USD3.2 billion or Rp43.8 trillion, is

far smaller compared to the previous year’s USD8.7

billion or Rp119.2 trillion.

Indonesia's success in maintaining economic

growth could not be separated from policies issued

by the government and the Bank Indonesia (BI).

in 2019, Bank Indonesia has recorded four times,

lowered the BI reference rate for 7 Days Reverse

Repo Rate, each by 25 basis points (bps) to 5.0%.

This policy is expected to bring loan rates to a

lower level, so that business players can intensify

their investments or business expansion to boost

production. Additionally, declined loan interest

rates is expected to provide stimulus to the public

to maintain their consumption.

In addition to lower interest rates, macroprudential

policies were also taken to encourage bank credit

growth by loosening the provisions for the LTV/

FTV (Loan to Value/Financing to Value) ratio for an

average of 5-10% for home and vehicle ownership,

loosening the provisions for Ratio Macroprudential

Intermediation (RIM) to 84-94% from previously

80-92%, as well as expanding banking funding

including prudent foreign loans of more than 1 (one)

year.

Overview of the National Cement Industry

Challenge in the Indonesian cement industry

continues. Demand for cement in 2019, based on

data from the Indonesian Cement Association (ASI),

only grew under 1%.

The national cement sales in 2019 reached 76.1

million tons. of that number, 69.8 million tons were

from domestic sales and the rest of the sales, or

as much as 6.3 million tons, were from the export

market.

Based on the data from ASI, cement sales in

domestic market only grew 0.34% in 2019. in fact,

domestic cement sales have already dropped by

2% during the first half of 2019. Growth of cement

demand decreased compared to the previous

year due to the national election agendas. Many

infrastructure projects have been completed in

2018, while the new project initiative were delayed

to post-formation of the new ministerial cabinet.

Additionally, the property industry did not show

any improvement that can boost the growth of

domestic cement demand. Meanwhile, from supply

chain perspective, domestic capacity remained

excessive by 37 million tons. With declined growth

of the national cement demand and overcapacity

of cement supplies, the national cement plant

utilization only reached 67.4% in 2019.

Total of capacity development, domestic cement demand and average utilization in 2018-2019

Information Unit 2019 2018

Installed Capacity Million Tons 113 111

Domestic Demand Million Tons 69.8 69.5

Export Sales Million Tons 6.3 5.6

Total National Cement

Industry SalesMillion Tons 76.1 75.1

Utilization % 67.4% 67.6%

98



Semen Indonesia’s Position in the National Cement Industry

Semen Indonesia is the largest player in the national

cement industry. Moreover, after a corporate

action was conducted on early 2019, in which

the Company acquired PT Holcim Indonesia Tbk,

Semen Indonesia is currently the largest player in

the cement industry in Southeast Asia.

Today, the Company owns production facilities in

many Indonesian regions as well as Vietnam, with

total installed production capacity of 53 million tons

per year. Not just the largest in terms of production

capacity, the Company is also the biggest player

with a market share of 53.4% in Indonesia. This

is made possible by the Company’s five brands

dominating each region, including Semen Gresik,

Semen Padang, Semen Tonasa, Semen Andalas

and Dynamix. in addition to strong brands, the

Company also owns distribution facilities in many

regions in Indonesia, which becomes one of the

Company’s advantages that enable us to maintain

our domination in the national cement market,

as distribution of production across the nation,

especially for bulk cements, is one of the biggest

challenges of cement producers in Indonesia due

to the country’s vast archipelago region.

Sumatera

SIG

62.14%20.58%

total national demand

27.15%total national

demandSIG

59.53%

15.06%total national

demand 13.53%total national

demand

SIG

38.47%

5.95%total national

demand

SIG MS

46.38%

6.38%total national

demand

SIG

57.56%

8.74%total national

demand

Jawa BaratDKI Jakarta

Banten

Jawa

Kalimantan (Borneo)

Sulawesi

Bali Sumbawa

Lombok

Flores

Timor Leste

Pulau Banda

Market Share SIG

National Cement Demands Jawa Tengah& DI Jogjakarta

Jawa Timur

SIG

78.46%

SIG

46.21%

2.60%total national

demand

SIG

35.56%

99



Operational Overview

Business Development Strategy

To deal with challenging business dynamics,

particularly the oversupply condition and limited

growth of demand, the Company is addressing

them by changing our business model, optimizing

the Company’s advantages, and encouraging

innovation both in business products and processes.

in 2019, the Company focuses on four strategic

priorities:

1. Cost Leadership through Centralized Strategy

and Integrated Operation

The Company focuses on cost efficiency

to improve competitiveness by optimizing

integrated operations towards all business lines

including subsidiaries. Such integration enables

shared resources and complement one’s

weakness with other’s strength.

2. Differentiation through Product Development

and Optimization of Product Portfolio with

Excellence Services

The Company creates differentiation through

actions aligned with the Company’s long-term

strategy to be the biggest building materials

and solutions provider in the region. This step is

conducted by providing a complete high quality

products according to customer requirements,

with reliable services. Product and service

development initiatives were carried out to

create distinctive competitive advantages.

3. Proactive Stakeholder Management and

Sustainable Partnership Oriented

Proactive synergized management with wider

stakeholderss in relation to supplies, market

and the surrounding environment, in order

to create a conducive situation and support

business enhancement and development. The

management is carried out with orientation

towards sustainable partnerships based of

mutual and beneficial sharing of added-values.

4. Culture Transformation towards One Firm

Mentality

Upon the realization that Semen Indonesia

Group has grown bigger and stronger due to

our union, the cultural transformation is carried

out in order to strengthen the mindset as one

united Group. There is no separation between

subsidiaries. Programs throughout the business

lines are directed towards the mental building as

one united group with common shared vision

and mission.

Internal Strengths and Weaknesses

External Opportunities and Threats

Roadmap Towards Leader of Diversified Building Material

Differentiation

through product

development and

optimization of

product portfolio

with excellent

services

Proactive

stakeholderss

management

and sustainable-

oriented

partnership

Culture

transformation

towards one

firm mentality

Cost

leadership

through

centralized

strategy and

integrated

operations

100



Marketing Aspects

The yeear 2019 is a very challenging year for the

national cement industry. Growth in domestic

demand was below 1%, while the national cement

industry remains oversupplied aligned with

continuous development for cement capacity

building, particularly from the new players.

Strategic Marketing InitiativesAmidst a challenging market condition, the Company

has taken a number of strategic initiatives, especially

in marketing areas, such as:

Rebranding Dynamix

In 2019, the Company took a bold step to rebrand

the Holcim brand as Dynamix. Dynamix rebranding is

part of the transformation process carried out by the

Company after the acquisition of PT Solusi Bangun

Indonesia Tbk. The rebranding reflects the new spirit

of the Company, 'Dare to Change to be Better', to win

the competition amidst an increasingly competitive

national market.

As part of the transformation process of the Company,

Dynamix is expected to provide added values to

meet the customers’ needs for innovation-oriented

building materials for the future.

Premium Brand Strategy

The cement industry has an interesting characteristic.

Cement brand is usually a heritaged brand which

has a fairly strong presence in the area where the

plant is located. Based on this fact, in 2019 the

Company created an integrated marketing function

by implementing a premium brand strategy.

The Company currently has five different cement

brands. Each brand has different characteristics and

strengths as well. in 2019, the Company enhanced

the cement brands with strong presence as

premium brands in their respective region, instead

of introducing encourage more brands in the region.

The presence of other brands is only necessary

when there is a "disruption" from competitors that

threatens the presence of our premium brand.

By implementing this strategy, there are at least

two benefits for the Company: a better profit level

and a more cost-efficient marketing and distribution

process.

Provides Solutions, Not Just Products

Semen Indonesia Group has a very diversed line of

products. in 2019, these advantages were optimized

by carrying out an integrated marketing program. The

Company not only focus in marketing the products,

but also providing solutions that consist of several

products and services.

By implementing this strategy, the Company creates

a very clear differentiation from our competitors.

Additionally, this strategy is also very effective to

open new markets amidst oversupplied cement

market.

Strengthen the Export Market

Furthermore, the Company is strengthening its

position as the largest cement industry player in

Southeast Asia and continues to boost overseas

markets. This approach is taken to ensure and

maintain the Company’s high sales volume, thus the

utilization of production facilities could be maintained

in a bid to implement the capacity management

strategy.

Although domestic market remains as the Company’s

main market, the Company is also expanding our

export markets as their potentials are not to be

ignored, as long as the transport cost is affordable.

Export market development is carried out by

PT Semen Indonesia International (SII), whose

responsible to maintain the Company’s cement sales

volume stability. Through SII, the Company will also

be able to optimize export market potentials for our

cement and clinker products when domestic demand

fall, and vice versa, to meet domestic demands when

it rises.

Customer Focus

The Company changed its sales paradigm from

production focus to customer focus. With this

approach, the Company established direct interaction

with our customers, both retail and corporate.

For retail customers, the Company enhanced

distributors’ active role in production distribution.

As for corporate customers, the Company has the

Corporate Marketing Unit focusing in bulk and bag

cement demands, either the huge demand from

101



companies or from real estates, contractors, industry

and many others, including implementing the synergy

concept among SOEs to market our products.

The Corporate Marketing Unit will continue its

competence development in the future, so that it

will be able to market related products of building

materials through product and service solutions, as

well as collaborate and synergize with the Company’s

subsidiaries.

Role Optimization of Distributors

Distributors have a very important role in the

marketing chain of cement products. Hence, the

Company seeks to continue to optimize the role

of distributors, not just as functions act as traders.

Distributors are also required develop store networks

while continue to improve engagement with their

existing store network.

Amidst oversupplied market condition and rampant

cement products with cheaper price, distributors

are expected to play a bigger role in protecting the

Company’s product positioning from competitors.

Marketing CommunicationsIn 2019, the Company carried out a huge change

in terms of marketing communications. By

implementing an integrated marketing strategy, the

Company did not have to force ourselves to run a

national marketing communications. Marketing

communications programs can be done locally to

strengthen our brand positioning.

Marketing communications programs play a role in

ensuring the interaction between the principal and

customers in an effort to establish, expand, and

increase awareness. Included also as the beginning

of an effort to maintain and increase customer

satisfaction and loyalty.

Since 2018 the Company has utilized digital

technology with the use of online applications

and digital in the marketing communication more

touching customers immediately in order to maintain

customer engagement. Various online and digital

programs that have been implemented include:

• Digitization program for each customer segment

the Company has developed a digital program

for each customer segment in order to improve

engagement and customer loyalty. These

programs are Business Sturdy (program for shop),

Family Sturdy (program for End Users), and Jago

Building (program for Artisan)

• Program Customer Care "Connect-SI" program

customer service company by integrating several

existing programs, such as call center, email, live

chat, social media (twitter, facebook), as a medium

to improve the quality of customer service, after-

sales service , complaint, as well as information

and assistance.

• Development online communication channels:

corporate websites, social media (twitter,

facebook, instagram, etc.) with associated

content konten- latest company news, product

information, and so on.

• impressions important events company digitally

in social media, online communities, online news

portals, and so on.

• Implementation activities to raise public

engagement, Such as exhibitions and

competition-competition online.

• Publications We-Green Industry as

environmentally conscious community portal

established by the Semen Indonesia.

Rebranding SIGOn the beginning of 2020 the Company made a

corporate rebranding with a new logo into a SIG. This

rebranding is marked by changes in the Company

logo that no longer contain the word "Cement" in it.

Aligned with the Company's new vision of "Leading

Building Material Solutions Provider in the Region",

the word "Cement" in the Company’s brand became

irrelevant. Even the word "Cement" seems to limit

the Company’s scope of business.

Additionally, the Company’s old logo is still

veryidentical to one of the brands owned by the

Company, while the Company currently own six

different brands and has become the biggest player

in the Southeast Asia region.

Rebranding done to change the brand positioning

and reaffirmed new visions Semen Indonesia.

Historically, the Semen Indonesia has been the

backbone of the national development and has

a reputation as a leader of the cement industry in

Indonesia. Today, Semen Indonesia is continuing its

102



Market Share

transformation stage to be a company that inspires

stakeholderss in creating sustainable living or a

better life in the future, and transformed into a SIG.

SIG wants to realize its vision to become the largest

building materials solutions provider in the region by

providing various products and a complete service

and quality. in harmony with this vision, corporate

brand SIG represents several things to be achieved

by the Company:

• SIG wants to be a leader (trendsetters) in the

building material industry

• SIG wants to be the leader in building materials

and solutions provider in the region, and the

latest value-added

• SIG would like to become a brand that is

recognized and soughtby stakeholderss for

quality and good value.

Year 2019, the Company was able to maintain its

leadership in the national cement market. Especially

with the acquisitions made against Holcim, market

share The Company is getting stronger. Based on

data from ASI, in 2019, the Company controls 53.4%

of the national cement market (including SBI sales

in January 2019 of 904.7 thousand tons), increased

from 39.4% of the previous year.

Domestic sales comparisonin Java and outside Java

Outside Java Java Growth Source: Indonesian Cement Association

2010 2011

20.0%

15.0%

10.0%

5.0%

0.0%

-5.0%

2012 2013 2014 2015 2016 2017 2018 2019

21.5

26.5

18.9

21.9

24.6

30.3

25.3

32.6

26.2

33.7

27.5

34.5

28.2

33.4

28.9

37.4

30.5

39.0

30.9

38.9

80.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

-

Year 2019, the demand for cement in the domestic

market limited growth of 0.3% over the previous

year, reaching 69.8 million tons. The national

cement market is still dominated by sales the island

of Java, which controls 55.7% of the total national

cement sales. However, cement sales outside Java

also showed excellent growth in 2019.

103



Per Segment Overview of Operations

Cement Business Segment

Cement business segment is still an effortprimary

for the Company. This segment contributes to 73.9%

of total consolidated revenues before elimination of

the Company. Production of cement produced by

the Company and its subsidiaries five enterprises

with majority ownership, either directly or indirectly,

PT Semen Gresik, PT Semen Padang, PT Semen

Tonasa, Thang Long Cement Joint Stock Company

and PT Solusi Bangun Indonesia Tbk.

The Company’s cement production marketed under

the brand Semen Gresik, Semen Padang, Semen

Tonasa, Thang Long Cement and Dynamix.

Production performance

In line with the Company’s strategic priority program

in 2019, which supports the pattern of centralized

and integrated operations for all lines with the

main purpose of the creation of cost-efficiency that

improve the competitiveness of the Company, the

management capacity or utilization of production

facilities and maintenance management is the

primary focus of the Company.

To improve efficiency in the supply chain process

both inbound and outbound plant operations,

implementation of information technology is the

key to success, from planning, implementation,

monitoring and evaluation.

In 2019, accordance with its acquisition of PT Holcim

Indonesia Tbk (now PT Solusi Bangun Indonesia

Tbk) the Company’s installed capacity of cement in

Indonesia has increased to 52.6 million tons, from

37.8 million tons from the previous year. Accordingly,

the Company’s installed capacity of cement is

equivalent to 44.4% of the national installed capacity

in 2019 amounted to 113.1 million tons.

Here is an overview of the performance of the

cement productionThe Company as a result of the

implementation of capacity optimization strategies

that are executed during 2019.

Semen IndonesiaOther players

60.6%39.4%53.4%

46.6%

Corresponding Articles of Association, the Company

engaged in the cement industry. for the purposes

of management evaluation, and in accordance with

the provisions of SFAS 5 (Revised 2015) presents the

report of the Semen Indonesia business segments

into two major groups, namely business segments

of cement and non-cement.

104



Information2019* 2018 Growth

1 2 1:2

Clinker Production

Domestic 31,988,817 24,279,631 32%

Regional 1,900,107 2,024,572 (6%)

Total 33,888,924 26,304,204 29%

Cement Production

Domestic 38,279,602 28,565,618 34%

Regional 1,429,597 1,994,351 (28%)

Total 39,709,199 30,559,969 30%

Installed Capacity

Domestic 50,300,000 35,500,000 41%

Regional 2,300,000 2,300,000 0%

Total 52,600,000 37,800,000 39%

Utilization

Domestic 76% 80% (4%)

Regional 62% 87% (25%)

Total 76% 81% (5%)

(*) Including SBI production in January 2019 prior to the acquisition, amounted to 774,636 tons of clinker and 867,873 tons of cement.

Domestic Clinker(Tons)

2017 2018 2019

Regional Clinker(Tons)

2017 2018 2019

Total Clinker(Tons)

2017 2018 2019

Domestic Cement(Tons)

2017 2018 2019

Regional Cement(Tons)

2017 2018 2019

Total Cement(Tons)

2017 2018 2019

23

,83

0,9

29

31,

98

8,8

17

1,9

00

,107

33

,88

8,9

24

38

,279

,60

2

1,4

29

,59

7

39

,70

9,19

9

2,0

00

,66

8

25

,83

1,5

79

28

,68

4,5

77 2,13

3,19

0

30

,817

,76

7

24

,279

,63

1

2,0

24

,572

26

,30

4,2

04

28

,56

5,6

18

1,9

94

,35

1

30

,55

9,9

69

in Tons

105



Realization of domestic cement real production

company in 2019 reached 38,279,602 tons, an

increase of 34% over the previous year amounted

to 28,565,618 tons. Such increase resulted from

the consolidation of PT Solusi Bangun Indonesia

Tbk. While TLCC production in 2019 decreased

28% to 1,429,597 tons of 1,994,351 tons in 2018,

resulting in total production volume of 39,709,199

tons in 2019, increased by 30% from the total

production volume in 2018, which was amounted

to 30,559,969 tons. Increased cement production

company in 2019, mainly from the acquisition of

PT Holcim Indonesia Tbk.

Sales performanceThe Company sales its products in Indonesia as

well as regional market. In 2019, domestic demand

growth was stagnant. At the same time, competition

became increasingly fierceful, in which the national

installed cement capacity increased from 2 million

tons to 113 million tons.

In such situations, implementation of various strategies

above had enable the Company to successfully sell

36.3 million tons of cement (excluding SBI's January

2019 sales of 904.7 thousand tons) in the domestic

market, increased by 32.5% from the 2018 sales of

27.4 million tons. The significant increase was due

to the consolidation of PT Solusi Bangun Indonesia

Tbk by the Company. Domestic clinker sales of the

Company in 2019 reached 667.7 thousand tons, an

increase of 213.2% from the year 2018 amounted to

213.2 thousand tons.

Such achievement of the Company’s sales

performance in 2019 was considered a very good

result, since the national cement market situation was

still experiencing an overcapacity of 37 million tons.

The growth ofCement Sales Volume - Domestic Market- Semen Indonesia, 2018-2019

Note: Excluding domestic clinker and white cement sales (ASI data)

No RegionSemen Indonesia Sales Growth

2019 2018 2019:2018

1 Sumatera 8,671,688 6,276,950 38.2%

2 Jawa 19,791,871 14,064,118 40.7%

3 Kalimantan 2,040,959 1,757,274 16.1%

4 Sulawesi 3,503,490 3,329,827 5.2%

5Bali Nusa

Tenggara1,585,519 1,246,955 27.2%

6 Eastern Indonesia 747,306 746,376 0.1%

Total 36,340,833 27,421,500 32.5%

106



The Growth of Cement and Clinker Sales - Regional Market (Export) - Semen Indonesia 2018-2019

Destination Country 2019 2018 2019 Growth

Australia 1,507,375 827,718 82.1%Bangladesh 1,213,126 878,610 38.1%Cina 603,790 140,085 331.0%Srilangka 304,085 896,298 (66.1%)Timor Leste 149,342 130,100 14.8%Others 278,366 301,915 22.0%Total Export 4,056,083 3,174,726 27.8%

The non-cement segment consists of limestone

and clay mining, cement bag production, industrial

estate development, logistics, trade in building

materials and ready-made concrete. Activities of

these segments including:

• Limestone and clay mining aim to meet the

Company’s needs for raw materials.

• Cement bag production aims to meet the needs

for cement packaging.

• Industrial area construction, including the

management of ex-mining area of raw materials

into area for commercial purposes as well as

public facilities.

• Ready-mix concrete production aims to meet the

needs of construction projects.

• Logistics and raw material trades services.

• Other business activities.

The Company generated a number of non-cement

revenues from these business activities. Aligned with

the Company’s business paradigm shift to develop

non-cement downstream products,

Non-Cement Segment

In 2019, the Company’s cement sales remains

dominant in Java, which reached 54.5% of the total

domestic sales.

In addition to cement supplies to the Indonesian

market, the Company also conducts export sales of

cement and clinker to Australia, Bangladesh, China,

Sri Lanka, Timor Leste and other countries. The

total volume of sales to the export market in 2019

reached 4.06 million tons, an increase of 27.8%

compared to 2018.

Meanwhile the TLCC, a subsidiary in Vietnam, was

able to sell cement and clinker up to 1,355,784

tons in the Vietnamese market and export market

amounted to 859,575 tons. Total sales recorded

by TLCC in Vietnam market in 2019 reached

2,215,359 tons, down to 14% compared to the

previous year which amounted to 2,574,924 tons,

primarily due to the implementation of Safeguard

Duty of Imported Cement by the Philippines Tariff

Commission, which is one of the largest export

market for TLCC after China.

Thus, the Company’s total sales volume in domestic

and regional market in 2019 reached 43,279,972

tons, an increase of 29.6% from the total sales

volume in 2018, which was 33,384,310 tons.

Financial PerformanceIn 2019, the Company’s cement business segment

recorded sales (before elimination) of Rp35,480

billion, up to 32.6% from the previous year’s of

Rp26,759 billion. Of the total sales, an amount of

Rp29,876 billion represent sales to third parties

and related parties. The number increased by

33.6% from the previous year’s amount of Rp22,363

billion. Meanwhile, inter-segment sales in 2019 was

amounted to Rp5,604 billion, an increase of 27.5%

from the previous year’s of Rp4,397 billion.

107



Non-Cement Business Segment Performance Aligned with the new vision of the Company,

revenue contribution from non-cement business

segment will continue to be improved. The

Company seeks to optimize subsidiaries’

performance through innovation to produce

new products and improve customer services in

order to deliver better performance than the non-

cement business segment.

The Company also seeks to create synergy

among its subsidiaries to optimize each entity’s

potentials and performance.

SIB, formerly PT SGG Prima Beton (SGG-PB), was

established on 11 April 2012 and located in Gresik.

SIB started its first commercial operation in January

2013. the Company owns 99.99% of SIB shares

while Koperasi Warga Semen Gresik owns 0.01%.

In 2016 SIB acquired the shares of PT Varia Usaha

Beton (VUB), with 50.9% ownership at VUB.

SIB is a manufacturer of ready-mix concrete (RMX)

and a wide variety of precast concrete components

and composites, as well as developing raw materials

for concrete production, concentrating in areas

where it operates, the western part of Java and

western Indonesian.

PT Varia Usaha Beton (VUB) as a subsidiary of SIB is

concentrating its operations in central and eastern

Java as well as eastern Indonesia. VUB shares are

owned by SIB by 50.90% and SILOG by 49.10%.

PT Semen Indonesia Beton (SIB)

in billion Rupiah

Description 2019 2018

Income 1,860 2,251

Net Profit (Loss) (161.8) (19.8)

Non-Cement Revenue Contribution Before Elimination(Rp billion)

201720182019

12,5

22

10,7

40

9,4

37

108



SMI was established on 29 December 2011

under the former name of PT SGG Energi Prima

(SGGEP) and located in Gresik. The name change

to SMI occurred on 23 July 2018 along with the

transformation of SMI business from coal trading

to the management of non-productive assets of

PT Semen Indonesia (Persero) Tbk.

The main activity of SMI is to manage and optimize

the assets of PT Semen Indonesia (Persero)

Tbk. SMI acts in a professional manner with a

commitment to environment conservation and

contributions. A number of assets managed by

SMI, including the Ngipik Lake, Hollywood Hills,

Dowo Lake, Lepit Mountain, Semen Gresik’s plant

area, housing near the RSSG, housing of the Board

of Directors, A. Yani Guest House, and others. SMI

is open to various forms of cooperation in asset

optimization sector.

SMI shares owned by the Company of 97% and

Cooperation Citizens Semen Gresik (KWSG) of

3%. The main activity of the SMI is prioritized to

support the Company’s activities, especially in the

management of non-productive assets owned by

the Company.

PT Sinergi Mitra Investama (SMI)

in billion Rupiah

* As restated

Description 2019 2018*

Income 16.3 30.9

Net Profit (Loss) (28.3) (44.6)

SISI was established on 9 June 2014, located

in Jakarta. The Company owns 85% of its share

composition, while the rest of shares are owned by

PT Semen Gresik, PT Semen Padang and PT Semen

Tonasa with 5% of shares respectively.

The success of SISI can be measured by its ability to

provide ICT services to the Company with controlled

costs and adding values for the Company.

SIDE acts as a one stop solutions provider, in which

ICT services including operational support, business

solutions delivery, to ICT governance, all of those

are provided by SISI as service packages to meet

the needs the customers.

PT Sinergi Informatika Semen Indonesia (SISI)

in billion Rupiah


Income 143,7 83,2

Net Profit (Loss) 10,0 (31,6)

109



On 1 November 2016, the Company acquired an

ownership of shares representing 48.7% of the

total issued and paid-up capital of PT Varia Usaha

(VU) owned by the Dana Pensiun Semen Gresik

(DPSG), so that the shareholders composition of

the VU including 73.65% owned by the Company

and 26.35% owned by the Koperasi Warga Semen

Gresik. Furthermore, on 13 February 2017, VU

changed its name to PT Semen Indonesia Logistik

(SILOG).

SILOG is a subsidiary of the Company that located

in Gresik, East Java, which engages in businesses

of general transportation and expedition services,

building materials trading, agency, cement

distributor, industrial development, and mining.

SILOG has several subsidiaries to anticipate

tremendous business opportunities in logistics.

They are of:

a. PT Semen Indonesia Distribusi (formerly PT Waru

Abadi), which engages in building materials

trading, particularly retails.

b. PT Varia Usaha Bahari, which engages in loading

services at the port.

c. PT Varia Usaha Dharma Segara, which engages

is in transportation management services

(International Freight Forwarder).

d. PT Varia Usaha Lintas Segara, which engages in

shipping and ship agency services.

e. PT Varia Usaha Fabrikasi, which engages in labor

provision.

PT Semen Indonesia Logistik (SILOG)


Income 4,841.1 4,922.1

Net Profit (Loss) 9.4 31.2

in billion Rupiah

Located in Gresik, East Java, KIG engages in industrial

area operations, including acquisition, development,

industrial land sales and leasing, warehouse, shops

as well as Ready-to-Use Plant Buildings (BPSP)

inside and outside the area, including construction

for public facilities development such as roads,

water pipelines, electricity and others. Its shares are

owned by the Company by 65% and PT Petrokimia

Gresik (Persero) by 35%.

PT Kawasan Industri Gresik (KIG)


Income 79.1 59.9


in billion Rupiah

110



PT Industri Kemasan Semen Gresik (IKSG)

IKSG engages in packaging production, or

the packaging industry, trade and services.

Based in Tuban, East Java, its shareholders

composition including the Company with 60%

of shares, PT Fajar Mas Murni by 30%, and

PT Newlong Indonesia by 10%. Most IKSG

products are manufactured to meet the needs

of the Company’s cement bags, thus most

of the sales results are considered inter-

company sales and will be eliminated in Semen

Indonesia’s consolidated report notes.

PT United Tractors Semen Gresik (UTSG)

UTSG is located in Tuban, East Java, and engages

in mining, trade and other services. UTSG shares

are owned by the Company by 55% and PT United

Tractors Tbk by 45%.

UTSG’s main activities are prioritizing to support the

Company’s production activities, particularly in terms

of services for the cement raw materials mining

process.

UTSG revenues are generally derived from the mining

equipment rental services of cement raw materials,

rock blasting services, mining transportation services,

heavy equipment rental and sale of clay. UTSG’s

profitability is measured by its ability to provide raw

material mining equipment costs to the Company in

the most efficient manner and the ability to utilize

its competencies in the mining sector as well as the

management of its fleet of heavy equipment and

transportation equipment.

in billion Rupiah


Income 576.4 663.2


in billion Rupiah


Income 313.9 518.2


111



Financial Overview

This financial information is summarized from the

consolidated financial statements for the year

ended 31 December 2019, which has been audited

by KAP Tanudiredja, Wibisana, Rintis & Rekan (A

member of PwC network of firms), with an

opinion of fair without exception.

Consolidated Statements of Financial Position

AssetOn 31 December 2019, total assets of the Group

was recorded at Rp79,807 billion, increased by

57.1% compared to the previous year’s amount of

Rp50,784 billion. The increase in total assets was

mainly due to increased non-current assets by 82%

from 2018, as a result of the acquisition of PT Solusi

Bangun Tbk.

The composition of the Group's assets in 2019

was dominated by non-current asset of Rp63,149

billion or 79.1% of the total assets. Total non-current

assets in 2019 increased by 82.0% compared to

the previous year’s amount of Rp34,693 billion due

to growth in fixed assets. Meanwhile, total current

assets in 2019 reached Rp16,658 billion or 20.9%

from total assets. Total current assets rose 3.5%

from the previous year’s amount of Rp16,091billion.

in billion Rupiah

Financial Position 2019 2018Growth

2019:2018

Current Assets 16,658 16,091 3.5%

Non-Current Assets 63,149 34,693 82.0%

Total Assets 79,807 50,784 57.1%

Short-Term Liabilities 12,240 8,180 49.6%

Long-Term Liabilities 31,675 9,989 217.1%

Total Liabilities 43,915 18,169 141.7%Temporary Syirkah Funds 2,000 - 100.0%Equity Attributable to:

- The Owner of the Parent Entity 32,277 31,192 3.5%

- Non-Controlling Interests 1,615 1,423 13.5%

Total Equity 33,892 32,615 3.9%Total Liabilities, Temporary

Syirkah Funds And Equity79,807 50,784 57.1%

112



Total current assets of the Company in 2019

amounted to Rp16,658 billion, up to 3.5% compared

to the previous year’s Rp16,091 billion. The increase

was mainly due to increased trade receivables

and inventories in line with SBI consolidation

(formerly PT Holcim Indonesia (Persero) Tbk)

into the Company, thus increased the Company’s

production and sales volume.

Cash and cash equivalentsThe Company operates a prudent management

of cash and cash equivalents through optimized

management, while established a sound portfolio

management on excess cash to manage risks and

returns to ensure optimum benefits.

The Company continues to apply financing scheme

for distributors to maintain cash availability. Through

this scheme, distributors who require a longer due

of payment to the Company can use bank funds to

cover the payment in accordance with time period

set by the Company to ensure on time payments.

This facility provides flexible cash flows with

competitive cost of finance for distributors.

As of 31 December 2019, total cash and cash

equivalents was at Rp3,950 billion, down by 24.7%

compared to the end of previous year’s amount of

Rp5,246 billion. That was caused by distributors

who utilized the bank funds to submit their payment

on time to the Company in accordance with the

Company’s time period, as they required a longer

payment due. This provides the flexibility of cash

flow for the distributors with competitive financial

burden.

Almost all of the Company’s cash and cash

equivalents are in Rupiah, aligned with the

Company’s payments that are mostly in Rupiah. The

Company’s cash and cash equivalents consists of

several currencies, this As part of the Company’s

mitigation towards changes to the currencies’

values for capital expenditure in accordance with

the Company’s business development strategy.

Details of the Company’s cash and cash equivalents

based on currencies are as follows:

Current Assetsin billion Rupiah

Current Assets 2019 2018Growth

2019:2018

Cash and Cash Equivalents 3,950 5,246 (24.7%)

Trade Receivables 6,490 5,786 12.2%

Other Receivables 370 174 113.9%

Short-Term Investments 67 8 737.5%

Inventories 4,641 3,544 31.0%

Advances 136 163 (16.6%)

Prepaid Expenses 216 176 22.7%

Prepaid Taxes 764 986 (22.5%)

Other Current Assets 24 8 200.0%

Total Current Assets 16,658 16,091 3.5%

113



Cash and Cash Equivalents in billion Rupiah

Cash and Cash Equivalents

per Currency2019 2018

Growth

2019:2018

Total Cash and Cash Equivalents

Rupiah 3,255 4,654 (30.06%)

US Dollars 668 557 19.9%

Euro 11 26 (57.7%)Vietnamese Dong 16 9 77.8%

Total 3,950 5,246 (24.7%)

The main currency composition of cash and cash

equivalents is in Rupiah, with 82.4% of the total

cash and cash equivalent balance. Cash and cash

equivalents in 2019 decreased 24.7% to Rp3,950

billion mainly due to the Company's efforts to

reduce the principal outstanding and interest

expenses, which increased significantly in 2019 due

to the acquisition of PT Holcim Indonesia Tbk. The

biggest cash portion after Rupiah is denominated in

US Dollars.

Company places its cash and cash equivalents

predominantly denominated in Rupiah, to support

working capital needs, both dalamrangka purchase

of raw materials and ingredients. Others include

other operating needs to be done in the rupiah

currency. This is done to improve the readiness of

the plant operations in anticipation of increased

demandcement in the domestic market in the future.

The balance of cash and cash equivalents majority

placed on deposit with the bank with good health,

among others: PT Bank Mandiri (Persero) Tbk, PT

Bank Rakyat Indonesia (Persero) Tbk, PT Bank

Negara Indonesia (Persero) Tbk, PT Bank National

savings (Persero) Tbk, PT Bank Bukopin Tbk, and

other banks.

The above funds, the Company is interest income to

the interest rate for rupiah deposits of 3.4% -80% for

balance in Rupiah and 2.50% -3.00% in US Dollars.

Trade Receivables in billion Rupiah

Trade Receivables 2019 2018Growth

2019:2018

Current 5,229 3,972 31.6%

Overdue

1-45 Days 335 720 (53.5%)

46-135 Days 293 393 (25.4%)

136-365 Days 343 445 (23.1%)

More than 365 Days 677 396 71.0%

Total 6,877 5,926 16.0%

Allowance for Impairment Losses (387) (140) 176.4%

Trade Receivables 6,490 5,786 12.2%

Income 40,368 30,688 31.5%

Trade Receivables/Income 16,1% 18,9% (2.8%)

114



Total accounts receivable of the Company at the

end of 2019 reached Rp6,490 billion, up 12.2% over

the previous year amounting to Rp5,786 billion.

This increase is mainly related to the an increase

in revenues of the Company after the acquisition

of PT Solusi Bangun Indonesia Tbk (d/h PT Holcim

Indonesia Tbk) there by increasing sales volume as

well as the Company’s accounts receivable.

The Company’s net inventories at the end of 2019

amounted to Rp4,641 billion, an increase of 31%

over the previous year. Spare part inventories

increased by Rp627 billion, or up to 55.2%, raw and

indirect materials increased by Rp336 billion or up

to 28% compared to last year, while finished goods

increased by Rp179 billion or 30% of the year 2018.

The increase in inventories in line with the 31.5%

increase in revenue, cost of revenue 29.6% and the

volume of clinker and cement production increased

29% and 30%, respectively, compared to 2018.

Inventoriesin billion Rupiah

Inventories 2019 2018Growth

2019:2018

Finished Goods 776 597 30.0%

Goods in Process 693 689 0.4%

Raw & Indirect Materials 1,536 1,200 28.0%

Goods in Transit 110 84 31.0%

Spare Parts 1,762 1,135 55.2%

Total 4,877 3,705 31.6%

Allowance (236) (161) 46.0%

Inventories - Net 4,641 3,544 31.0%

As of 31 December 2019, the total of non-current

assets of the Company reached Rp63,149 billion, an

increase of 82.0% over the previous year’s amount

of Rp34,693 bilion in 2018.

Non-Current Assetsin billion Rupiah

Non-Current Assets 2019 2018Growth

2019:2018

Restricted Cash 58 31 83.9%

Deferred Tax Assets 658 563 16.9%

Investments in Associate Entities 89 86 3.5%

Investments in Joint Ventures 52 56 (7.1%)

Investment Property 120 132 (9.1%)

Fixed Assets 56,602 32,392 74.7%

Goodwill and Intangible Assets 4,260 1,084 292.6%

Tax Refund Claims 443 0 0.0%

Other Non-Current Assets 867 349 148.4%

Total Non-Current Assets 63,149 34,693 82.0%

115



Fixed Assetsin billion Rupiah

Fixed Assets 2019 2018Growth

2019:2018

Direct Acquisition 86,727 48,669 78.2%

Finance Leased Assets 244 682 (64.3%)

Total 86,971 49,351 76.2%

Accumulated Depreciation (30,369) (16,959) 79.1%

Total Fixed Assets 56,602 32,392 74.7%

Company's fixed assets are grouped into two

categories: direct ownership assets by the Company

and leased assets. Total (net) value of fixed assets

of the Company in 2019 was amounted to Rp56,602

billion, increased by 74.7% from the previous year’s

amount of Rp32,392 billion. Such increase in fixed

assets is mainly due to SBI consolidation into the

Company, thus the Company included SBI’s fixed

assets. Additionally, the acquisition of SBI also

involving the Purchase Price Allocation to allocate

the transactional purchase price to SBI’s assets

and liabilities based on the fair value of assets and

liabilities at the date of acquisition.

in billion Rupiah

Goodwill and Intangible Assets 2019 2018Growth

2019:2018

Licenses 2,195 798 175.1%

Trademark 1,047 181 478.5%

Computer Softwares 225 180 25.0%

Land Rights Renewal 25 12 108.3%

Total 3,492 1,171 198.2%

Accumulated Amortization (583) (420) 38.8%

Total Intangible Assets 2,909 751 287.3%

Goodwill 1,351 333 305.7%

Goodwill and Intangible Assets 4,260 1,084 292.6%

Goodwill and Intangible Assets

Total goodwill and intangible assets of the Company

by the end of 2019 reached Rp4,260 billion, rose

significantly by 292.6% compared to the previous

year’s amount of Rp1,084 billion from the process

of purchase price allocation of SBI acquisition, into

SBI’s assets and liabilities based on the fair value

during the date of acquisition.

116



The amount of deferred tax assets of Semen

Indonesia in 2019 was recorded of Rp658 billion,

increased by 16.9% compared to the previous year’s

amount of Rp563 billion, mainly due to additional

accumulation of fiscal loss from subsidiaries by

Rp101 billion.

LiabilitiesAs of 31 December 2019, the Company’s total

liabilities amounted to Rp43,915 billion, increased

by 141.7% compared to the previous year’s amount

of Rp18,169 billion. The increase in total liabilities

was primarily due to the Company’s increased

borrowing, which amounted to Rp18,439 billion

compared to 2018.

Composition of the Company’s liabilities in 2019 was

dominated by long-term liabilities, which amounted

to Rp31,675 billion, or 72.1% of total liabilities.

Total long-term liabilities in 2019 increased by

217.1% compared to the previous year’s amount of

Rp9,989 billion. Meanwhile, the number of short-

term liabilities in 2019 reached Rp12,240 billion or

27.9% of total liabilities. Total short-term liabilities

rose by 49.6% from the previous year’s amount of

Rp8,180 billion. The increase was primarily caused

by increased long-term loans that will reach maturity

within one year.

Deferred Tax Assetsin billion Rupiah

Deferred Tax Assets 2019 2018Growth

2019:2018

Holding 503 504 (0.2%)

Subsidiaries 155 59 162.7%

Total Deferred Tax Assets 658 563 16.9%

On 31 December 2019, total of short-term liabilities of

Semen Indonesia was recorded of Rp12,240 billion,

increased by 49.6% compared to the previous year’s

Rp8,180 billion. The increase in short-term liabilities

is due to increased current maturities of long-term

liabilities by Rp1,942 billion. Additionally, trade

payables also increased by Rp1,194 billion or uo to

26.7% compared to the year 2018, aligned with the

increase in cost of revenue and production volume

due to the SBI consolidation into the Company.

Short-Term Liabilitiesin billion Rupiah

Short-Term Liabilities 2019 2018Growth

2019:2018

Short-Term Borrowings 1,212 1,552 (21.9%)

Trade Payables 5,670 4,476 26.7%

Other Payables 575 319 80.3%

Accrual 1,222 901 35.6%

Tax Payables 626 363 72.5%Short-Term Employee Benefits

Liabilities735 393 87.5%

Sales Advances 120 38 215.8%

Current Maturities of Long-Term

Liabilities2,080 138 1,407.2%

Total Short-Term Liabilities 12,240 8,180 49.6%

117



Total of the Company’s trade payables at the end

of 2019 reached Rp5,670 billion, an increase of

26.7% over the same period in the previous year

of Rp4,476 billion, the increase is aligned with

increased cost of revenue of 29.5% and increased

production volume of clinker and cement by 29%

and 30%, respectively, compared to 2018 due to

consolidation of SBI into the Company. From the

total value of trade payables in 2019, an amount of

Rp4,931 billion or 87% are trade payables in Rupiah,

while the rest are in foreign currencies.

Trade Payablesin billion Rupiah

Trade Payables 2019 2018Growth

2019:2018

Rupiah 4,931 3,943 25.1%

US Dollar 200 77 159.7%

Vietnamese Dong 463 331 39.9%

Euro 73 121 (38.8%)

Other foreign currencies 3 4 25%

Total Trade Payables 5,670 4,476 26.7%

In order to maintain relationship with our suppliers, the

Company provides financing facilities for suppliers

with competitive financial fee in cooperation with

banks. This facility enables suppliers to receive early

payment according to the needs of each supplier

without affecting the Company’s repayment period.

The Company relies on supports from information

technology, that continues to be developed, to

verify documents and implementing e-procurement

to obtain goods and services with standardized

quality and competitive price.

Short-Term Employee Benefits Liabilities

Total short-term employee benefits liabilities in

2019 increased by 87.0% to Rp735 billion, from

the previous year’s Rp393 billion. This was due to

increased reserve for incentives.

in billion Rupiah

Short-Term Employee Benefits

Liabilities2019 2018

Growth

2019:2018

Productivity Allowance, Incentives,

the Board of Directors’ and

Commissioners’ Tantiem

712 300 137.3%

Other Employee Benefits 23 93 (75.3%)

Total Short-Term Employee Benefits

Liabilities735 393 87.0%

118



Total of the Company’s accrual in 2019 was Rp1,222

billion, rose by 35.7% compared to the previous

year’s amount of Rp901 billion. This came primarily

from operating and financial expenses, as well as

increased sales promotions and transportation. The

increase was mostly due to SBI’s consolidation in

the Company’s financial statements, thus increased

the Company’s operating and financial expenses

from increased loans.

Accrualin billion Rupiah

Accrual 2019 2018Growth

2019:2018

Transport 223 181 23.2%

Maintenance 177 159 11.3%

Operating Costs 113 28 303.6%

Sales Promotions 108 58 86.2%

Professional Services 81 163 (50.3%)

Financial Expenses 76 21 261.9%

Insurance, Rent and Expedition 74 39 89.7%

Packing Fees 50 40 25.0%

Mining Retribution 31 5 520.0%

Electricity 10 8 25.0%

Others 279 199 39.5%

Total Accrual 1,222 901 35.7%

in billion Rupiah

Current Maturities of Long-Term


Growth

2019:2018

Bank Loans 2,052 50 4,004.0%

Finance Lease Liabilities 28 88 (68.2%)

Total Current Maturities of Long-Term

Liabilities2,080 138 1,407.2%

The total of current maturities of long-term liabilities

increased by 1,407.2% to Rp2,080 billion from 2018

which amounted to Rp138 billion. This increase

was mainly due to an increase in long-term bank

loans by 319.9% or Rp15,018 billion in 2019 from the

previous year. The addition of long-term loans is

mainly due to the acquisition and consolidation of

SBI into the Company.

Current Maturities of Long-Term Liabilities

119



During 2019, short-term liabilities denominated in

Rupiah decreased by 21.0% from 2018 of Rp1,495

billion to Rp1,180 billion, as well as loans in Dong

which fell by 43.9% after being converted into

Rupiah, from Rp57 billion to Rp32 billion. Therefore,

the Company's total short-term liabilities decreased

by 21.9% to Rp1,212 billion from 2018.

in billion Rupiah

Short-Term Liabilities 2019 2018Growth

2019:2018

Rupiah 1,180 1,495 (21.0%)

Vietnamese Dong 32 57 (43.9%)

Short-Term Liabilities 1,212 1,552 (21.9%)

Non-Current Liabilitiesin billion Rupiah

Non-Current Liabilities 2019 2018Growth

2019:2018

Deferred Tax Liabilities 3,839 207 1,754.6%

Long-Term Employee Benefits

Liabilities2,236 1,433 56.0%

Long-Term Liabilities Net of Current

Maturities24,749 7,913 212.8%

Long-Term Provisions 265 228 16.2%

Other Non-Current Liabilities 586 208 181.7%

Total Non-Current Liabilities 31,675 9,989 217.1%

The increase in the number of long-term liabilities

and deferred tax liabilities made the Company's

total non-current liabilities increase significantly,

from Rp9,989 billion in 2018 to Rp31,675 billion in

2019. The increase in non-current bank loans in

2019 reached 319.9% or Rp15,018 billion from 2018.

Additionally, deferred tax liabilities also increased

by Rp3,632 billion in 2019 to Rp3,839 billion. The

increase in long-term liabilities and deferred tax

liabilities were in line with the consolidation of SBI

into the Company since 1 February 2019.

Short-Term Liabilities

120



Long-Term Employee Benefits Liabilities

The Company's long-term employee benefits

liabilities in 2019 increased by 56.0% to Rp2,236

billion, from Rp1,433 billion a year earlier. This

increase was mainly due to the consolidation of

SBI in January 2019.

The Company's non-current liabilities in 2019

increased significantly to Rp26.829 billion from

Rp8,051 billion in 2018. Long-term loans after

deducting the current maturities of long-term

liabilities increased from Rp16,836 to Rp24,749

billion. This increase is in line with SBI consolidation

into the Company since 1 February 2019.

in billion Rupiah



Growth

2019:2018

Pension Benefits Liabilities 649 531 22.2%

Other Employee Benefits Liabilities 533 391 35.7%

Other Post Employment Benefit

Liabilities1,054 511 106.3%


Liabilities2,236 1,433 56.0%

in billion Rupiah

Long-Term Loans 2019 2018

Growth

2019:2018

Bank Loan 19,712 4,694 319.9%

Bonds Debt 7,065 2,995 135.9%

Lease Financing Liabilities 52 362 (85.6%)

Total Long-Term Liabilities Less

Current Portion of Liabilities26,829 8,051 233.3%

Long-Term Loans

in billion Rupiah

Temporary Syirkah Funds 2019 2018

Growth

2019:2018

Temporary Syirkah Funds 2,000 0 100%

Temporary Syirkah Funds

Temporary syirkah funds represent funds received

by the Company based on financing facilities of

the musharaka agreement with Islamic banking,

with a profit sharing ratio paid monthly.

121



In 2019, the Company's long-term provisions

increased by 16.2% from 2018 to Rp265 billion. This

was mainly due to the increased cost of ex-mining

land restoration.

Long-Term Provisionsin billion Rupiah

Long-Term Provisions 2019 2018Growth

2019:2018

Rehabilitation and Restoration of

Mining Areas135 109 23.9%

Estimated Cost of Fixed Asset

Disassembly130 119 9.2%

Total Long-Term Provisions 265 228 16.2%

The total equity of the Company as of 31 December

2019 was recorded at Rp33,892 billion, an increase

of 3.9% from the previous year of Rp32,615 billion.

the increase was primarily derived from an increase

in retained earnings attributable to owners of

the parent entity of Rp1,161 billion, in line with the

Company's profit achievement in 2019.

in billion Rupiah

Equity 2019 2018Growth

2019:2018

Share Capital 593 593 0.0%

Additional Paid-In Capital 1,459 1,459 0.0%

Difference in Value of Equity

Transaction with Non-Controlling

Interests

29 29 0.0%

Other Equity Components 422 498 (15.3%)Retained Earnings: Appropriated 253 253 0.0%

Unappropriated 29,521 28,360 4.1%

Total Equity Attributable to the Owners

of the Parent Entity32,277 31,192 3.5%

Non-Controlling Interests 1,615 1,423 13.5%Total Equity 33,892 32,615 3.9%

Equity

122



Consolidated Statements of Profit or Lossin billion Rupiah

Equity 2019 2018Growth

2019:2018

Revenue 40,368 30,688 31.5%

Cost of Revenue (27,654) (21,357) 29.5%

Gross Profit 12,714 9,331 36.3%

Operating Expenses (6,529) (4,450) 46.7%

Profit 3,196 4,105 (22.1%)

Profit for the Year Attributable To:

Owners of the Parent Entity 2,392 3,079 (22.3%)

Non-Controlling Interests (21) 7 (400%)EBITDA 8,699 6,577 32.3%Total Weighted Average of

Outstanding Shares (in Thousands)5,931,520 5,931,520 0%

Basic Earnings per Share (Rupiah) 403 519 (22.4%)

The Company recorded a significant increase

in revenue and expenses in 2019 due to the

consolidation of SBI into the Company, in which the

sales volume increased by 29.6% and clinker and

cement production volumes increased by 29% and

30% respectively from 2018. The Company was

able to achieve a higher revenue growth than the

cost of revenue, in which the gross profit margin

increased by 1.1% to 31.5% in 2019 from 30.4% in

2018. EBITDA of the Company in 2019 was recorded

at Rp8,699 billion or an increase of Rp2,122 billion

from 2018. EBITDA margin increased by 0.2% to

21.6% compared to 21.4% in 2018. Improvement in

the Company's operational performance, which

occurred amid a very low growth of cement industry

combined with a very high market competition, was

the result of various strategic initiatives undertaken

by the Company.

Net income attributable to owners of the parent

company was recorded down by 22.3% in 2019

from the same period in 2018. The decrease in net

income was due to increased financial burden during

SBI’s acquisition process. The Company has taken

various steps to improve financial cost efficiency,

including by making payments or repaying loans of

Rp1.4 trillion during 2019. Additionally, the Company

has also refinanced its loans in 2019, so as to obtain

a more competitive interest rate. The Company's

steps are expected to reduce the financial burden

for the coming years.

123



Revenue

As of 31 December 2019, the Company recorded a

revenue of Rp40,368 billion, up to 31.5% from the

previous year of Rp30,688 billion. The increase

in revenue was mainly due to an increase in the

revenue of cement business segment, which in

2019 increased by 30.6% to Rp36,224 billion from

Rp27,729 billion in 2018.

Additionally, revenue from the non-cement

segment in 2019 also increased to Rp4,144 billion

from Rp2,959 billion in 2019. The largest contributor

to the non-cement business segment came from

ready-mix concrete which in 2019 recorded a

revenue of Rp3,121 billion, an increase of 39.0% from

the previous year of Rp2,246 billion. Revenue from

ready-mix concrete contributed up to 75.3% of the

total revenue of the non-cement business segment.

in billion Rupiah

Revenue 2019 2018Growth

2019:2018

Cement* 36,224 27,729 30.6%

Non-Cement 4,144 2,959 40.0%

Total 40,368 30,688 31.5%

* Including the sale of clinker

in billion Rupiah

Revenue of Non-Cement 2019 2018Growth

2019:2018

Ready-Mix Concrete 3,121 2,246 39.0%

Gypsum 228 74 208.1%

Cement bags 67 93 (28.0%)

Land Leasing 40 34 17.6%

Land Leasing for Industrial Estates 24 12 100.0%

Mining services 23 111 (79.3%)

Others 641 389 64.8%

Total Non-Cement 4,144 2,959 40.0%

During 2019, the revenue booked by the Company

from the non-cement segment increased by 40.0%

to Rp4,144 billion from Rp2,959 billion a year earlier.

The increase was mainly derived from increased

revenue from the sale of ready-mix concrete,

which in 2019 increased by 39.0% to Rp3,121 billion.

Additionally, the Company also received a surge in

sales of gypsum to Rp228 billion from the previous

year which amounted to Rp74 billion.

Cost of RevenueEnergy and distribution expenses constitute the

largest component of the Company's cost of

revenue. Therefore, the Company seeks to improve

efficiency in energy use and distribution processes.

Efficiency is also carried out on other components,

such as cost of raw materials, maintenance, and

other operating expenses.

In the year of 2019, the Company has successfully

restrained the cost of revenue. One of the

efforts undertaken by the Company was cost

transformation, a part of the implementation of

Cost Leadership through Centralized Strategies

and Integrated Operations strategic initiative. The

following table mentioned the implementation of

124



in billion Rupiah

Cost of Revenue 2019 2018Growth

2019:2018

Energy 8,996 7,349 22.4%

Distribution 3,204 2,376 34.8%

Raw materials 1,874 1,876 (0.1%)

Depreciation 1,956 1,523 28.4%

Labor 2,254 1,223 84.3%

Manufacturing Overhead 9,370 7,010 33.7%

Total 27,654 21,357 29.5%

Total cost of revenue for 2019 was recorded at

Rp27,654 billion, an increase of 29.5% from the

previous year of Rp21,357 billion. This increase

was in line with the increase in sales volume by

29.6%, revenue by 31.5%, and clinker and cement

production volumes of 29% and 30% respectively

from 2018, which was mainly due to the acquisition

and consolidation of SBI into the Company.

The Company is able to maintain the growth rate of cost

of revenue so that it is lower than the revenue growth.

This achievement was a success for the Company, as

several cost components experienced an increase in

line with the inflation rate in 2019 by 2.72%.

This success was increasingly evidence from the

ratio of COGS in 2019, which decreased to 68.5%

from 69.6% of the previous year. The following

is an explanation of efforts undertook by the

Company to manage cost of revenue as part of the

implementation of cost transformation.

Energy Costs Absolute energy costs in 2019 was amounted

to Rp8,996 billion, up to 22.4% from 2018 which

amounted to Rp7,349 billion. This increase is in line

with the increase in production volume in 2019.

However, energy cost per ton was reduced due

to decreasing coal price, as well as various cost

transformation efforts undertaken to save energy

costs, including:

• Managing the consumption figure/coal usage

index and fuel consumption index at the plant

while maintaining the best performance.

• Evaluating coal purchases by prioritizing large

party purchase contracts and considering the

distance of the mine site from the production

facility so as to get the best price and the most

efficient freight. The aim is to reduce energy cost

of clinker per ton.

• Optimizing and centralizing the fuel purchases

from the head office to get competitive prices.

• Optimizing plant’s electricity consumption index,

especially for equipment that uses large power

or kWh, by maintaining the best performance of

each tool.

• Optimizing the utilization of operating power

plants and WHRPG facilities.

Distribution Costs Distribution costs in 2019 was amounted to Rp3,204

billion, up to 34.8% from 2018 which amounted

to Rp2,376 billion, in line with the increase in

the Company's sales and production volume in

2019. Management and implementation of cost

transformation for distribution costs, including:

• Maximizing supply chain management by

integrating SBI's distribution facilities into the

Company's distribution system.

• Integrating procurement contracts for distribution,

transportation and renegotiation.

• Evaluating contracts for freighters to get optimum

routes and transportation costs.

• Optimizing ship utilization through synergy to

improve transportation cost efficiency.

• Optimizing land transportation modes through

the selection of transportation types and

distribution patterns.

these strategic initiatives, as well as their impact

on several expenditure records in the Company's

consolidated financial statements.

125



in billion Rupiah

Gross Profit 2019 2018Growth

2019:2018

Gross profit 12,714 9,331 36.3%Gross Profit Margin (%) 31.5% 30.4% 1.1%

Gross Profit

The Company's gross profit in 2019 increased by

36.3% from Rp9,331 billion in 2018 to Rp12,714 billion

in 2019. The increase in gross profit, in addition

to the alignment of SBI consolidation into the

Company, was the result of the Company's efforts

to encouraging growth income as well as reducing

the growth rate of cost of revenue below revenue

growth with various initiatives as described above.

Operating Expensesin billion Rupiah

Operating Expenses 2019 2018Growth

2019:2018

Sales Expenses 3,084 2,237 37.9%General & Administrative Expenses 3,537 2,320 52.5%Other Operating Income (92) (107) 14.9%Total 6,529 4,450 46.7%Operating Expenses/Income 16.20% 14.50% 1.7%

Raw Material Costs Raw material costs in 2019 was recorded at Rp1,874

billion, did not increased from 2018 which amounted to

Rp1,876 billion. Some of the raw material management

initiatives undertaken by the Company are:

• Optimizing the acquisition of raw materials from

the most efficient sources.

• Optimizing the most efficient use of materials and

compositions.

• Optimizing and utilizing recycled materials.

• Optimizing the use of waste products from other

industries.

Other Manufacturing Costs Other manufacturing costs in 2019 was amounted

to Rp9,370 billion, up to 33.7% from 2018 of Rp7,010

billion. Costs included in other manufacturing

costs, are packaging costs, maintenance costs,

general and administrative costs, as well as

tax and insurance costs. The increase of other

manufacturing costs was mainly due to the impact

of SBI’s consolidation carried out since February

2019. Several attempts were made to reduce the

growth of other manufacturing costs, such as the

following:

• Improving efficiency index of maintenance costs

and reducing patch jobs.

• Centralizing the outsourcing and material

management.

• Optimizing the procurement of heavy equipment

with more effective and efficient methods.

• Improving the usage composition of the local

and alternative spare parts, as well as substitute

lubricants with a more competitive one.

• Standardizing and centralizing material needs for

spare parts to get competitive prices.

The Company's total operating expenses in

2019 reached Rp6,529 billion, an increase of

46.7% compared to the previous year of Rp4,450

billion. The increase occurred both in general and

administrative expenses as well as sales expenses.

126



Selling Expensesin billion Rupiah

Selling expenses 2019 2018Growth

2019:2018

Transportation and loading 2,387 1,769 34.9%Promotion 191 154 24.0%Salaries, Wages and Benefits 339 216 56.9%Other Selling Expenses 167 98 70.4%Total 3,084 2,237 37.9%

Total selling expenses in 2019 was amounted to

Rp3,084 billion, increased by 37.9% compared to

2018 which was Rp2,237 billion. This increase was

mainly due to SBI consolidation into the Company, in

which the selling expenses of SBI was consolidated

into the Company's selling expenses.

in billion Rupiah

General and Administrative

Expenses2019 2018

Growth

2019:2018

Salaries, wages, employee benefits,

and Bonus for the BOD and BOC1,573 1,103 42.6%

Professional services 199 264 (24.6%)Office supplies 296 114 159.6%Maintenance 158 161 (1.9%)Taxes, Insurance and Leasing 229 137 67.2%Depreciation, Amortization and

Depletion547 162 237.7%

Other General and Administrative

Expenses535 379 41.2%

Total 3,537 2,320 52.5%

General and Administrative Expenses

The general and administrative expenses of Semen

Indonesia in 2019 reached Rp3,537 billion, an

increase of 52.5% from 2018 which amounted to

Rp2,320 billion. This increase was mainly due to the

consolidation of SBI into the Company, including:

a. Depreciation, amortization and depletion

increased by Rp385 billion as a result of the

Purchase Price Allocation process for the

allocation of purchase price transactions for SBI’s

assets and liabilities, which is based on the fair

value of those assets and liabilities during the

acquisition date.

b. Office requirements increased by Rp182 billion

due to the allocation of IT and service system

costs mentioned in the Transitional Services and

License Agreement (TSLA) between SBI and

Holcim Technology for the period of 1 February

2019 to 31 January 2020, which was amounted

of USD16.7 million. This service fee was charged

proportionately for 11 months in 2019.

c. The increase in impairment receivables and

others was recorded at Rp162 billion due to an

increase in the allowance for the Company's

trade receivables in 2019.

127



Operating Profit and EBITDA

The Company's operating profit in 2019 increased

by 26.7%, from Rp4,880 billion in 2018 to Rp6,185

billion in 2019, although operating profit margin

decreased by 0.6% from 2018. Furthermore, the

Company's EBITDA increased both in terms of

absolute and margin. Absolute EBITDA increased

by 32.3% in 2019 from 2018, while EBITDA margin

increased by 0.1% in 2019 to 21.5% from 21.4% in

2018, due to several increases in cost of revenue

and operating expenses originating from non-cash

expenses.

in billion Rupiah

Operating Profit 2019 2018Growth

2019:2018

Operating Profit 6,185 4,880 26.7%

Operating Profit Margin (%) 15.3% 15.9% (0.6%)

EBITDA 8,699 6,577 32.3%

EBITDA Margin 21.6% 21.4% 0.2%

Other Income (Expenses)in billion Rupiah

Other Income (Expenses) 2019 2018Growth

2019:2018

Financial income 218 182 19.8%

Financial Expenses (3,205) (959) 234.2%

Share of Result of Associates and Joint

Venture(2) 2 (200.0%)

Other Income (Expenses) - Net (2,989) (775) 285.7%

The Company recorded other expenses in 2019 of

Rp2,989 billion, increased 285.7% compared to the

previous year's of Rp775 billion. This increase is

aligned with the increase in financial expenses due

to increased interest loans and temporary syirkah

funds by Rp20,439 billion in 2019. The Company

has taken various steps to improve financial cost

efficiency, among others, by optimizing working

capital facilities, reprofiling existing loans and loans

related to Holcim acquisition at a more competitive

interest rate. The Company's efforts are expected to

reduce financial burden going forward.

Current Year’s Profit Attributable to Owner of The Parent Entityin billion Rupiah

Current Year’s Profit Attributable to

Owner of The Parent Entity 2019 2018

Growth

2019:2018

Net Profit for the Year 2,371 3,086 (23.2%)

Profit for the year attributable to:

Owner of the parent entity 2,392 3,079 (22.3%)

Non-controlling interests (21) 7 (400.0%)

Number of Shares (thousand shares) 5,931,520 5,931,520 -

Earnings per share 403 519 (22.4%)

128



In 2019, the Company recorded a profit for the year

attributable to the owners of the parent entity of

Rp2,392 billion, down by 22.3% from the previous

year’s amount of Rp3,079 billion. This decrease

was due to increased financial burden in the Holcim

acquisition process.

Profitability and Marginin billion Rupiah

Profitability and Margin 2019 2018Growth

2019:2018

Gross Profit 12,714 9,331 36.3%Gross Profit Margin 31.5% 30.4% 1.1%Operating Profit 6,185 4,881 26.7%Operating Profit Margin 15.3% 15.9% (0.6%)EBITDA 8,699 6,577 32.3%EBITDA Margin 21.6% 21.4% 0.2%Current Year’s Profit Attributable to

Owner of the Parent Entity2,392 3,079 (23.1%)

Net Profit Margin 5.9% 10.0% (4.1%)

The Company recorded a gross profit of Rp12,714

billion in 2019, up to 36.3% from the previous year

which was Rp9,331 billion. Operating profit in 2019

was Rp6,185 billion, up to 26.7% from the previous

year which was Rp4,881 billion. While EBITDA in

2019 was recorded at Rp8,699 billion, up to 32.3%

from the previous year which was Rp6,577 billion.

Profit for the year attributable to owners of the

parent entity in 2019 was Rp2,392 billion, down

22.3% compared to the previous year of Rp3,079

billion.

Based on these operational results, the Company's

overall profitability ratio in 2019 can be maintained.

in billion Rupiah

Cash Flows 2019 2018Growth

2019:2018

Net Cash Flows from Operating

Activities5,609 4,459 25.8%

Net Cash Flows from/for Investing

Activities(17,161) (1,789) 859.3%

Net Cash Flows from/for Financing

Activities10,285 (1,062) (1,068.5%)

Increase/(Decrease) in Cash and

Cash Equivalents (1,267) 1,608 (178.8%)

Cash and Cash Equivalents at the

Beginning of the Year5,246 3,638 44.2%

Impact of Changes from Exchange

Difference(29) - 100%

Cash and Cash Equivalents at the

End of the Year3,950 5,246 (24.7%)

The total cash and cash equivalents of Semen

Indonesia in 2019 decreased to Rp1,267 billion,

from Rp5,246 billion at the beginning of the year to

Rp3,950 billion at the end of the year.

Cash Flows

129



Cash Flows from Operating Activities

Net cash flow obtained by the Company from

operating activities amounted to Rp5,609 billion, up

25.8% from 2018 which was at Rp4,459 billion. This

increase was mainly derived from cash generated

from operating results by 60.4% or Rp3,471 billion

as a result of increased revenue, as well as the

Company's EBITDA and EBITDA margin in 2019.

in billion Rupiah

Cash Flows from Operating

Activities2019 2018

Growth

2019:2018

Receipts from Customers 40,470 29,775 35.9%Payments to Suppliers (27,448) (21,423) 28.1%Payments to Employees (3,804) (2,605) 46.0%Payments to Income Taxes (617) (543) 13.6%Other Receipts/Payments (2,992) (745) 301.6%Cash Flows from Operating Activities 5,609 4,459 25.8%

Cash flow for investing activities in 2019 was

recorded at Rp17,161 billion, an increase of Rp15,372

from the previous year’s amount of Rp1,789 billion.

The increase in cash flows for investing activities

was mainly due to payments for SBI’s shares

acquisition by 80.64% and Mandatory Tender Offer

for SBI shares by 17.7%.

in billion Rupiah

Cash Flows from/for Investing

Activities2019 2018

Growth

2019:2018

Acquisition of Fixed Assets (1,639) (1,790) (8.4%)Proceeds from Sales of Fixed Assets 7 10 (30.0%)Acquisition of Subsidiary/Associate (15,460) - 100.0%Placement of Short-Term Investments (59) - 100.0%Other Receipts/Payments – Net (10) (9) 11.1%Cash Flows from/for Investing Activities (17,161) (1,789) 859.3%

Cash Flows from/for Financing Activitiesin billion Rupiah

Cash Flows from/for Financing

Activities2019 2018

Growth

2019:2018

Payment (33,616) (6,415) 424.0%Reception 45,743 6,355 619.8%Financing Liabilities (338) (175) 93.1%Loan Provision to Joint-Venture Entity (260) - 100.0%Dividends (1,244) (827) 50.4%Cash Flows from/for Financing Activities 10,285 (1,062) (1,068.5%)

Net cash flows from/for financing activities in 2019

was amounted to Rp10,285 billion. This figure

increased by Rp11,347 billion from the previous year

which amounted to Rp1,062 billion. The increase

was due to loans to acquire SBI shares at 80.64%.

Cash Flows from/for Investing Activities

130



Capability to Repay Debt and Collectability of Receivables

Capability to Repay DebtThe financing policy is determined by the Company

to maximize internal funding utilization while

ensuring the effectiveness of the Company's cash

flow management. External financing is used by

considering the appropriateness of the financing

instruments with the purpose of using the Company's

cash flow profile.

The Company’s ability to pay debts can be seen

from three relevant financial ratios, namely: liquidity

ratio, solvency ratio and the Company’s receivables

collectability level, as shown in the financial ratios

table and the following explanation:

Key Financial Ratios

Liabilities are interest-bearing liabilities*) Current year’s profit attributable to the owner of the parent entity

Key Financial Ratios 2019 2018Growth

2019:2018

Gross Profit Margin (%) 31.50 30.40 1.10%Operating Profit Margin (%) 15.32 15.90 (0.58%)Net Profit Margin (%) 5.93 10.03 (4.10%)EBITDA Margin (%) 21.55 21.43 0.12%EBITDA to Interest Expense (x) 2.71 6.86 (4,15x)Return on Equity (%) *) 7.41 9.87 2.46%Return on Assets (%) 3.00 6.06 (3.06%)Current Ratio (%) 136.10 196.72 (60.62%)Liabilities to Assets Ratio (%) 37.64 18.91 18.73%Liabilities to Capital Ratio (%) 46.99 22.75 24.24%Equity to Capital Ratio (%) 53.00 77.30 24.30%Liabilities to EBITDA Ratio (x) 3.5 1.5 2xLiabilities to Equity Ratio (%) 93.08 30.79 62.29%

Current Ratioin billion Rupiah

Current Ratio 2019 2018Growth

2019:2018

Current Assets 16,658 16,091 3.5%

Current Liabilities 12,240 8,180 49.6%

Current Ratio (%) 136.10 196.72 (60.6%)

This ratio shows the ability of the Company to meet

its current maturities of long-term liabilities, which

is calculated by dividing current assets with short-

term liabilities. In 2019, the Company's current ratio

was 136.10%, down from 2018 which was 196.72%.

This decrease in current ratio was due to an

increase in current maturities of long-term liabilities,

as well as a decrease in the Company's cash and

cash equivalents to maximize reduction of the

Company's debt level.

131



in billion Rupiah

Solvency Ratio 2019 2018Growth

2019:2018

Interest-Bearing Liabilities 30,042 9,602 212.9%

Liabilities to Assets (%) 37.64 18.91 (18.73%)

Liabilities to Capital (%) 46.99 22.75 24.24%

Liabilities to Equity (%) 93.08 30.79 62.29%

The solvency ratio shows the ability of the Company

to meet its obligations, both short and long term, as

indicated by measuring the interest rate liabilities to

equity, capital and total assets. In 2019, the solvency

position of the Company's assets increased from

2018 due to the increase in the number of interest-

bearing liabilities by the Company, specifically to

fund the acquisition of SBI and consolidation impact

of SBI’s liabilities into the Company. Although the

figure increased from the previous year, these ratios

indicate that the Company remains very capable of

meeting its obligations.

Interest-Bearing Liabilities and Temporary Syirkah Funds of the CompanyThe details of all the Company's liabilities with interest-bearing effect are as follows:

in billion Rupiah

Interest-Bearing Liabilities 2019 2018Growth

2019:2018

Short-Term Liabilities 1,212 1,552 (21.9%)

Bank Loans 2,052 50 4,004.0%


Long Term Liabilities – Net of Current Maturities

Bank Loans 17,660 4,644 280.3%

Bonds Payable 7,065 2,995 135.9%


Temporary Syirkah Funds 2,000 - 100%

Total Interest-Bearing Liabilities 30,042 9,602 212.9%

Collectability of Receivables in billion Rupiah

Receivables Collectability 2019 2018Growth

2019:2018

Revenue 40,368 30,688 31.5%

Average Receivables 6,138 5,336 15.0%

ACP (days) 55 63 8

Solvency Ratio

132



Average Collection Period (ACP) is calculated by

comparing the average of receivables and income,

then multiplied by the number of days in a year (365

days). In 2019, the level of receivables collectability

was 55 days, faster than the previous year’s 63 days.

This was due to the Company’s implementation

of distributor financing scheme to maintain cash

availability. Through this scheme, distributors who

require a longer period of time to make payments

to the Company can use bank funds to make

payments according to the period determined by

the Company, so payments can be made on time.

This facility provides distributors with cash flow

flexibility, with competitive financial expenses.

Profitability

The Company’s profitability in 2019 increased from

2018. This was the result of improving operational

performance of the Company through various

initiatives, ranging from integration of Solusi Bangun

Indonesia (SBI), optimization of strategic functions

of marketing, supply chain, procurement, as well

as various cost transformation undertaken by the

Company. This improved performance was evidence

in gross profit margin and EBITDA margin, which

were increased from last year. Net profit margin

was reduced due to increased financial expenses

in Holcim's acquisition process. The Company

has also taken various steps to improve financial

expenses’ efficiency, among others, by optimizing

working capital facilities, reprofiling existing loans

and loans related to Holcim acquisition at a more

competitive interest rate. These Company's steps

were expected to reduce the financial burden in the

future.

Return on Equity (ROE) and Return on Assets (ROA)

ratios measure the Company's ability to generate net

profit using available resources. ROE in 2019 was

recorded at 7.4%, reduced from 2018 at 9.9%. ROA

also decreased to 3% from 6.1% in 2018. This decline

was mainly influenced by decrease in current year's

profits due to increased of the Company's liabilities

to fund Holcim acquisition.

in billion Rupiah

Profitability 2019 2018Growth

2019:2018

Gross Profit Margin (%) 31.5 30.4 1.1%

Operating Profit Margin (%) 15.3 15.9 (0.6%)

Net Profit Margin (%) *) 5.9 10.1 (4.2%)

EBITDA Margin (%) 21.6 21.4 0.2%

ROE (%) 7.4 9.9 (2.5%)

ROA (%) 3.0 6.1 (3.1%)

*) Profit for the year attributable to owners of the parent entity

133



Capital Structure and Capital Structure Policy

Details of Capital StructureThe composition of capital structure in 2019

owned by the Company: 55% of liabilities, 2.5% of

temporary syirkah funds, and 42.5% of equity. This

composition changed from 2018. The composition

of the capital structure of liabilities increased by

19.2%, equity decreased by 21.7%, and temporary

syirkah funds remained at 2.5% of the total capital

of the Company. The Company's liability portion is

closely related to financing of the Company’s normal

operating and business development activities.

in billion Rupiah

Capital Structure 2019 2018Growth

2019:2018

Liabilities* 28,042 9,602 192.0%Temporary Syirkah Funds 2,000 0 100.0%

Equity Attributable to Owners of the

Parent Entity32,277 31,192 3.4%

Total Capital 62,319 40,794 52.7%

Capital Structure Policy The Company continues to implement sound and

prudent financial policies, whereby the Company

has managed to maintain a strong balance sheet,

strong cash flow, and a healthy financial ratio. The

capital structure policy ensures that the Company

has a strong capital structure, which supports

the current business development strategy and

supports the Company's future development.

In general, the Company's current capital structure

policies are as follows:

1. Capital structure always takes into account the

balance of financial risks and rate of return, as an

effort to enhance the Company’s values.

2. Optimizing the regulating the ideal Debt and Equity

combination by taking into account the Company’s

funding needs and cash flow capabilities.

3. The capital structure combination is determined

after conducting a sensitivity analysis with

several core assumptions that the Company will

most likely encounters.

The Company maintains a solid capital structure

through net gearing ratio, which is dividing the

total loan bearing interest after deducting cash and

cash equivalents by the total equity attributable to

the owners of the parent entity. The Company’s

policy is to maintain leverage within an optimum

range by comparing it with similar companies in

Indonesia. This is carried out so as to ensure that

the Company’s financial condition remains sound

thereby maintaining access to competitive funding

sources.

in billion Rupiah

Gearing Ratio and Debt

to EBITDA Ratio2019 2018

Growth

2019:2018

Bank Loans and Bonds Payable 27,990 9,241 202.9%Finance Lease Liabilities 52 362 (85.6%)Total Interest-Bearing Liabilities 28,042 9,602 192.0% Temporary Syirkah Funds 2,000 - 100.0%Total Equity 33,892 32,615 3.9% Net Gearing Ratio (x) 0.81 0.14 0.67xLiabilities to EBITDA Ratio (x) 3.5 1.5 2.0x

*) Liabilities are interest-bearing liabilities

134



Net Working Capital

Overall, the Company's net working capital in 2019

decreased by 44.1%, from Rp7,911 billion in 2018 to

Rp4,418 billion in 2019. This decrease was mainly

due to increased current maturities of long-term

liabilities, and decreased balance cash used to

reduce the Company's outstanding loans.

Basic Selection for Capital Structure Management PolicyThe capital structure management policy aims

to protect the Company's capability to maintain

business sustainability, in order to continue to

provide returns to shareholders and benefits to

other stakeholders, as well as to optimize the capital

structure to reduce capital expenses.

The Company complies with applicable tax

regulations, such as the Regulation of the Minister

of Finance No. 169/PMK.010/2015 related to

maximum ratio for Debt to Equity (DER) allowed for

tax purposes, which is 4:1. In 2019, DER owned by

the Company was recorded at 93.1%. Under these

conditions, the Company's debt to capital ratio

remained at a good category.

in billion Rupiah

Capital Structure 2019 2018Growth

2019:2018

Current Assets 16,658 16,091 3.5%

Short-Term Liabilities 12,240 8,180 49.6%

Net Working Capital 4,418 7,911 (44.1%)

Material Commitment of Expenditures

The Company has several material commitments

and agreements with certain parties. All of these

were mentioned in Note 32 in the Notes to the

Consolidated Financial Statements of the Company

presented in this annual report. In addition to

various commitments and material agreements,

the Company determines long-term provisions to

cover the costs of demolition of fixed assets and

restoration of ex-mining area. At the end of 2019,

the provision for balance which has been set aside

for this purpose was Rp422 billion.

Realization of Capital Goods Investment

The Company realized the capital expenditure

(capex) to maintain performance and develop

business to grow sustainably. To maintain

performance, the Company implements routine

capex consisting of Operational Continuity

Capex (maintenance), Operational Supporting

Capex (supporting), Operational Enhancement

Capex (efficiency), and Mandatory Capex (legal

complience). As for development, the Company

implements Strategic Capex for long-term interests.

135



Capital investment in 2019 amounted to Rp1,639 billion, lower than in 2018 which amounted to Rp1,797 billion.

Type of Capital Goods Objectives 2019 2018 Growth

Land Investment 0 9 (100.0%)

Mining area Investment and operations 9 2 350.0%

Buildings, roads, bridges and portsInvestment and operational

support22 58 (62.1%)

Machineries Operational support 255 174 46.6%

Heavy equipment and vehicles Operational support 38 46 (17.4%)

Office fixtures and equipment Operational support 18 31 (41.9%)

Assets under construction:

Land Operational support 43 76 (43.4%)

Buildings, roads, bridges and ports Operational support 386 396 (2.5%)

Machineries Operational support 627 718 (12.7%)

Heavy equipment and vehicles Operational support 103 167 (38.3%)

Equipment Operational support 137 118 16.1%

1,639 1,797 (8.8%)

Material Information and Facts Subsequent to Date of Accountant’s Report

There was no material information nor fact subsequent to date of the accountant’s report.

Comparison Between Target and Actual and Projected One Year Ahead

Comparison of Target and RealizationIn 2019, the Company has implemented several

strategic policies to realize the determined targets.

In 2020, the Company will increase market

penetration and create new market segments in

accordance with the new vision of the Company, in

order to achieve better results than in 2019.

The Company will continue to encourage a culture

of innovation to realize growth targets in 2020.

The Company also estimates domestic cement

demand will continue to grow in a sustainable

manner in the future. This is aligned with the

government's program to build infrastructure, which

is expected to create new centers of economic

growth in the Indonesian territory.

136



Dividend Policy

Dividend PolicyBased on Law No. 40 of 2007 concerning Limited

Liability Companies, the distribution of dividends

is based on the decision of the General Meeting

of Shareholders. Before the end of the fiscal year,

interim dividends can be distributed as long as they

are allowed in the Company's Articles of Association,

and the distribution of interim dividends does not

cause the Company's Net Assets to be less than the

issued and fully paid capital as well as the Company's

mandatory reserves. Interim dividend distribution is

determined by the Board of Directors after being

approved by the Board of Commissioners.

The Company strives to pay attention to the rights

of shareholders without ignoring the Company's

financial condition. The decision to distribute the

Company's dividends is related to the net profit

obtained in the fiscal year and the Company's

obligation to allocate reserve funds in accordance

with applicable regulations and the Company's

financial condition. Additionally, the Company also

considers future growth rates and expansion plans

in dividend distribution decisions.

When the AGMS determine the distribution of

dividends to shareholders, the Company is required

to make payments no later than 30 days after the

announcement date.

Dividend for Fiscal Year 2018Based on the decision of the AGMS held on 22 May

2019, it was decided that:

• Determination of the Net Income Attributable to

the Parent Entity of the Company for the Fiscal

Year 2018 was amounted to Rp3,079,115,411,000

with details as follows:

- 40% or Rp1,231,646,164,400 or Rp207.64 per

share, determined as cash dividends, thus

dividends owned by the Republic of Indonesia

with 51.01% share ownership was amounted to

Rp628,262,708,460.

- 60% or Rp1,847,469,246,600 was designated

as other reserves.

Chronology of Dividends DistributionChronology of dividends distribution of the

Company in the last two fiscal years are as follows:

Description Fiscal Year 2018 Fiscal Year 2017

Net Profit (Rp Million) 3,079,115 1,620,995

Total Dividends (Rp Million) 1,231,646 805,678

Dividends per Share (Rp) 207.64 135.83

Payout Ratio (%) 40% 40%

Date of Announcement 22 May 2019 22 May 2018

Date of Payment 21 June 2019 30 May 2018

137



Taxpayers Compliance

The Company always complies with its responsibilities as a taxpayer. Details of payment related to the Company’s

tax obligations are presented in the table below:

in billion Rupiah

Type of Tax 2019 2018 2017

Income Tax 1,418,699 1,109,362 1,898,373

Value-Added Tax 1,667,673 1,282,671 1,397,631

Import Duty 26,404 8,315 6,925

Property Tax 24,124 18,657 32,037

Local Tax 604,555 1,226,792 596,000

Dividend to the Government of Indonesia 1,231,646 922,586 805,680

Total 4,973,100 4,568,384 4,736,646

Employee/Management Share Ownership Program

The Company does not have share ownership program for employees and/or management (ESOP/MSOP).

Material Information Concerning Investment, Expansion, Divestment, Merger/Consolidation, Acquisition, Debt/Capital Restructuring

InvestmentThe Company invests to maintain the continuity

of the plant's operations and the Company’s

development. The said operational continuity

includes maintaining plant’s equipment, supporting

other operational activities such as jetty renovation

in Tuban, and fulfilling applicable laws such as

additional bag filter equipment for pollution control.

The Company’s development means developing the

Company's business to increase revenue, including

through the establishment of a joint venture mortar

company and other investments to reduce costs,

such as additional distribution facilities.

ExpansionThere was no organic expansion during the

reporting period.

DivestmentThere is no business during the reporting period.

Acquisition The Company, through its subsidiary, acquisited

PT Holcim Indonesia Tbk, preceded by the signing

of the Conditional Sale and Purchase Agreement

(CSPA) on 12 November 2018 between the Company

through our subsidiary, PT Semen Indonesia Industri

Bangunan, with Holderfin B.V. The acquisition

process was completed on 31 January 2019.

Merger/ConsolidationThere was no business merger/consolidation during

the reporting year.

Debt/Capital RestructuringThe Company reprofiled the Bridging Loan for

Syndicated Loans with a 2-year tenor from BNP

Paribas, Deutsche Bank AG Singapore Branch,

Maybank Kim Eng Securities Pte Ltd, MUFG Bank

Ltd, and Standard Chartered Bank, which were

used to acquire PT Holcim Indonesia Tbk with

138



a value of USD926,970,862, or equivalent to

Rp13,070,289,156,597, including interest rates

at LIBOR 3M + 1.76% and LIBOR 3M + 1.6%, plus

hedging costs of 6.01% to 10.75%, resulting in an

average cost of funds of 11.10%. The Company made

a reprofiling of a Working Capital Loans worth of

Rp600,000,000,000, which was used as a Bridging

Credit to fund the purchase of public shares of PT

Holcim Indonesia Tbk during the Mandatory Tender

Offer.

Reprofiling the two sources of funding, including:

1. Proceeds from the PUB Sustainable Bonds I

Phase II of 2019 with a fixed interest rate of 9% for

a 5-year tenor and 9.1% rate for a 7-year tenor on

28 May 2019 amounted to Rp4,062,549,033,333

(for more information see the section on Use of

Proceeds from Public Offering in 2019).

2. Syndicated loans from PT Bank Negara Indonesia

(Persero) Tbk. (BNI), PT Bank Mandiri (Persero)

Tbk. (Mandiri), PT Bank BTPN Tbk. (BTPN), PT

Bank HSBC Indonesia (HSBC), PT Bank Central

Asia Tbk. (BCA), Citibank NA, Jakarta Branch

(Citibank), and MUFG Bank, Ltd., Jakarta Branch

(MUFG) with an interest rate of JIBOR 3M + 1.85%

equivalent to an average interest rate of 8% for

a 7-year tenor on 30 July 2019 amounted to

Rp2,820,000,000,000 and as of 31 July 2019 of

Rp6,530,000,000,000.

3. The remainder uses the Company's internal

funds.

The Company also reprofiles Bridging Credit

Corporate Loans with a tenor of 2 years from BNI

used for granting Shareholder Loans to subsidiaries

for long-term investment requirements of

Rp2,000,000,000,000 with an interest rate of JIBOR

+ 1.5% (minimum interest rate of 8%) equivalent to

the average interest rate of 8.3%. The reprofiling

uses funding sources of Syndicated Loans from PT

Bank Syariah Mandiri, PT Bank BRI Syariah, and PT

Bank CIMB Niaga Tbk. - Sharia Business Unit with

profit sharing ratio equivalent to JIBOR 3M + 1.85%

equivalent to an average interest rate of 8% for a

7-year tenor on 30 September 2019.

Realization of the Use of Funds from Public Offering

To strengthen the capital structure and support

the funding, in 2019 the Company took corporate

action through the Sustainable Public Offering

(PUB) Sustainable Bonds I of Semen Indonesia

Phase II of 2019 with a principal amount of

Rp4,078,000,000,000 (four trillion and seventy-

eight billion Rupiah) consisting of:

1. Series A Bonds

With 5 (five) years term starting in 28 May 2019, with

a total principal amount of Rp3,364,000,000,000

(three trillion three hundred and sixty-four billion

Rupiah) and a fixed interest rate of 9.0% (nine

point zero percent) per year.

2. Series B Bonds

For a period of 7 (seven) years starting 28 May 2019,

with a principal amount of Rp714,000,000,000

(seven hundred and fourteen billion Rupiah) and a

fixed interest rate of 9.1% (nine point one percent)

per year, with Underwriters for Sustainable Bond I

Phase II of 2019 including PT CGS-CIMB Sekuritas

Indonesia, PT BNI Sekuritas, PT Indo Premier

Sekuritas, PT Mandiri Sekuritas and PT Danareksa

Sekuritas. The trustee of the Sustainable Bond I

Phase II of 2019 of the Company was PT Bank

Tabungan Negara (Persero) Tbk.

All funds obtained from the Public Offering of

Sustainable Bonds I Phase II of 2019 after deducting

commissions, fees and expenses paid for this Bond

have been used to pay off Brigding Loans to BNP

Paribas, Deutsche Bank AG Singapore Branch,

Maybank Kim Eng Securities Pte Ltd, MUFG Bank

Ltd and Standard Chareted Bank used for the

acquisition of PT Holcim Indonesia Tbk.

139



Material Transaction Information Containing Conflicts of Interest and/or Transactions with Affiliated Parties

Transactions Containing Conflicts of InterestIn 2019, the Company did not conduct transaction

containing conflicts of interest. All of the Company's

transactions were carried out in accordance

with terms and conditions, as well as substantial

economic benefits comparable to transactions with

a third party.

Fairness and Reasons for Conducting TransactionsAll transactions made in 2019 wre carried out fairly

(an Arm's Length) and in accordance with normal

commercial requirements. The reasonableness

of transactions with related parties or containing

conflicts of interest were carried out fairly in

accordance with prevailing regulations. Transactions

were conducted based on the Company's

requirements and free from conflicts of interest.

As for transactions with related parties, the

Company and Subsidiaries conducted transactions

with related parties in accordance with PSAK No.

7 concerning Disclosure of Related Parties as well

as Bapepam-LK Regulation No. KEP-347/BL/2012

dated 25 June 2012 concerning the Presentation

and Disclosure of Financial Statements of Issuers

or Public Companies.

Name, Nature of Related Relationship and Transaction BalanceThe Company and its subsidiaries have transactions

with related parties. Detailed information regarding

Transactions with Related Parties is listed in Note 43

regarding the Nature and Transactions of Related

Parties in the Consolidated Financial Statements, as

part of this Annual Report.

As a result of these related transactions, the

Company has a balance of assets and liabilities

recorded in the context of the transaction as well as

recorded in: cash and cash equivalents, short-term

investments, trade receivables, other payables and

long-term liabilities.

DescriptionSeries A and B Bonds

Rp (Million)

Total Amount of Public Offerings 4,078,000

Cost of Public Offerings 15,451

Net Results 4,062,549

Realization of the Use of Funds:

Reprofiling of Holcim's Bridging Loan Acquisition 4,062,549

Total Realization of the Use of Funds 4,062,549

Remaining Funds from Public Offerings -

The PUB Sustainable Bonds Phase I Year II 2019

are part of the PUB Semen Indonesia Sustainable

Bonds I. In 2017, the Company made Semen

Indonesia’s PUB Sustainable Bond I Phase I of 2017

with a principal amount of Rp3,000,000,000,000

(three trillion Rupiah).

140



Changes in Laws and Regulations Impacting the Company During the Fiscal Year

No Regulation Explanation Impacts on the Company

1 Government of Indonesia’s

Regulation No. 24 Year 2018

Concerning Licensing Services

through Electronic Integration

Government regulations

related business licensing

service through the Online

Single Submission (OSS)

portal.

The Company must comply and

adjust our operational licensing in

accordance with the OSS portal.

2 Government Regulation No. 29

Year 2018 Concerning Industry

Empowerment

Legal obligation to

use national products

The Company must adjust our

internal guidelines for procurement

and services.

3 Financial Services Authority

Regulation No. 9/POJK.04/2018

Concerning Acquisition of Public

Company

The OJK regulation determines

procedures of the acquisition

of a Public Company


must abide by the OJK regulation

particularly concerning transactions

related to the acquisition of PT Solusi

Bangun Indonesia Tbk.

4 Regulation of the Minister of SOEs

PER-08/MBU/12/2019 on General

Guidelines for Implementation of

goods and services procurement

of SOEs

Regulation of the Minister of

SOEs determines concepts

and guidelines for the

Implementation of goods and

services procurement of SOEs


must adjust our internal procedures

for procurements.

5 Regulation of the Minister of

Energy and Mineral Resources

No. 11 Year 2018 Concerning

Procedures for Granting Areas,

Licensing, and Reporting for

Mineral and Coal Mining Business

Activities and its Amendments

This Regulation of the Minister

of Energy and Mineral

Resources regulates the

mechanism and procedure

for granting Mining Business

Licenses to companies with

mining business.

The Company is obliged to comply

with the laws and regulations in

the context of obtaining a mining

business permit.

6 Regulation of the Minister of

Environment and Forestry of the

Republic of Indonesia No. P.27/

Menlhk/Setjen/Kum.1/7/2018.

Regulation of the Minister of

Environment and Forestry

related to the guidelines for

Borrow-to-Use Forest Permit

for companies that utilize

forest areas using a borrow-to-

use mechanism.

The Company must comply with these

regulations for all Borrow-to-Use

Forest Permits owned by PT Semen

Indonesia (Persero) Tbk

7 Decree of the Minister of

SOEs No. SK-315/MBU/12/2019

Concerning Management of

Subsidiaries or Joint Venture

Companies for SOEs.

Realignment of management

and establishment of a

subsidiary for SOEs.

The Company reviews the

management of subsidiaries and

plans to establish subsidiaries.

8 Regulation of the Minister of Trade

No. 7 of Year 2018 Concerning

Provisions of Cement and Clinker

Imports.

Regulation on the

implementation of cement and

clinker imports.

Adjustment of cement and clinker

import policies to meet the Company's

needs.

141



Changes in Accounting Policies Implemented by the Company in the Last Fiscal Year

New standards and interpretations or revisions that

are relevant to the Group's operational activities,

applicable to the financial year in the beginning of

or after 1 January 2019, are as follows:

• PSAK 22 (amendments), Business Combinations.

• PSAK 24 (amendment), Employee Benefits.

• PSAK 26 (amendments), Borrowing Costs.

• PSAK 46 (amendment), Income Taxes.

• PSAK 66 (amendment), Joint Ventures.

• ISAK 33, Foreign Exchange Transactions and

Rewards in Advance.

• ISAK 34, Uncertainties in the Treatment of Income

Taxes.

The adoption of new standards and interpretations

or revisions did not cause a substantial change in

the Group's accounting policies and material effects

on the amounts reported during the fiscal year or in

the previous year.

No Regulation Explanation Impacts on the Company

9 Circular Letter of the Minister

of SOEs No. SE-7/MBU/12/2019

Concerning Compliance with

Legislative Provisions in the

Context of Implementing Good

Corporate Governance.

Affirming the existence of

the obligation to obey GCG

principles.

The Company must comply

with regulations related to GCG

implementation.



Concerning Prohibition to for

Gifting of Souvenirs or the Likes.

Prohibition of SOEs from

giving souvenirs or the likes on

certain occasions.

The Company adjusts the policy

of giving souvenirs and the likes in

certain occasions.



Concerning Implementation

of Ethics and/or Compliance

in the Framework of Company

Management and Supervision.

Affirmation of the obligation

to implement ethics and/

or compliance in the

management and supervision

of SOEs.

The Board of Directors is committed

to implementing ethics and/or

compliance in the management

and supervision of the Company's

operations.

GOOD CORPORATE GOVERNANCE

5

144



The Company's Commitment and Policy in Corporate Governance Implementation and the Results

part in supporting sustainable economic growth

and stability. This understanding underlies the

Company's commitment to always uphold the

implementation of GCG in every level of the

organization and its operational activities.

With high commitment and consistent

implementation of governance, the Company

can set itself free from Corruption, Collusion and

Nepotism (KKN) and improve the supervisory

function in managing the Company.

Management's commitment to compliance with

GCG is elaborated in a number of policies and

related provisions, including:

• All employees are required to be committed to

implementing all rules and policies as part of

efforts to implement best practices of corporate

governance. Such commitment is displayed by

the Top Management by always basing all key

decisions and policies on relevant rules and laws.

• Top Management shall sign of the Ethics and

Compliance Statement, Conflict of Interest

Statement and Share Ownership Statement to

comply with the Company’s Code of Conduct.

The Ethics and Compliance Statement shall be

signed by all levels of the Company up to the

executives.

• Determine the KPI on GCG implementation.

• Determination of duties and responsibilities

of each function related to the planning,

implementation, and management of the

Company’s internal controls;

• Management of the Company’s internal controls,

target achievement, preparing policies on

operating procedures and controlling disclosure,

documentation, reporting, and providing written

statements regarding the effectiveness of ICOFR

and the results of periodic self-assessments.

On 11 February 2019, the Company completed

the acquisition of PT Holcim Indonesia Tbk, then

changed the company's name into PT Solusi Bangun

Indonesia Tbk. The completion of the acquisition

makes the Company as the largest cement producer

in Southeast Asia with a total production capacity of

53 million tons/year.

Acquisition of Holcim made the Company recorded

a great history once again, particularly in the State

Owned Enterprises (SOEs). Earlier, in 1991 the

Company also recorded as the first SOE to be listed

on the Indonesia Stock Exchange (d/h Jakarta Stock

Exchange and Surabaya Stock Exchange). The

Company is also listed as the first "Multinational

SOE" in Indonesia after officially acquired a 70%

stake in the Thang Long Cement Joint Stock

Company (TLCC) from Hanoi General Export-Import

Joint Stock Company (Geleximco) in Vietnam.

All of these achievements by Semen Indonesia is not

something that can be achieved in a short time. The

Company consistently maintains good performance

achievement for the long term. This is a result of the

awareness and commitment of the Company who

continuously work to improve the implementation of

Good Corporate Governance (GCG) practices at all

levels of the organization.

The Company realizes the importance of the GCG

implementation as a foundation and tools in an

effort to achieve the vision, mission and objectives

of the Company, so that we will be able to maintain

the continuity of business activities and support a

sustainable and stable economic growth.

The Company is assured that GCG implementation

encourages the creation of a healthy competition

and conducive business climate. In addition,

the implementation of GCG is also an important

145



In implementing GCG, the Company refers to a

number of rules and regulation, including:

1. Law No. 40 of 2007 on Limited Liability Company;

2. Law No.19 of 2003 on State Owned Enterprises

(SOEs);

3. Indonesian Government Regulation No.45 in

2001 is declared as invalid;

4. Minister of SOE Regulation No. PER-01/

MBU/2011 concerning the Implementation

of Good Corporate Governance in SOE,

later amended by the State Minister of SOE

Regulation Number PER-09/MBU/2012

concerning Amendments to the Regulation

of the Minister of State Owned Enterprises

Number PER-01/MBU/2011 concerning

the Implementation of Good Corporate

Governance in State-Owned Enterprises;

5. SOE Ministry Secretary Decree

No.SK-16/S.MBU/2012 concerning Indicators/

Parameters for the Implementation of Good

Corporate Governance in SOE;

6. Financial Services Authority Regulation

No.21/POJK.04/2015 concerning the Guidelines

for Governance of Public Companies.

7. Financial Services Authority Circular

No.32/SEOJK.04/2015 concerning Public

Company Governance Guidelines.

Legal Basis for GCG Implementation

The Company adopts the principles of good

governance aimed at ensuring optimal results,

including:

1. Increasing the Company’s performance through

the creation of better decision-making processes,

improving the Company’s operational efficiency

and services to stakeholders.

2. Increasing corporate values through improving

financial performance and minimizing investment

risk that contain conflicts of interest.

3. Increasing assurance for investors.

4. Achieving stakeholder satisfaction by increasing

corporate values and the Company’s dividends.

5. Directing and controlling the Company’s Organ

relationships.

6. Increasing the accountability of the management

of the Company to Shareholders while taking into

account the interests of the stakeholders.

7. Encourage and support business development,

effective management of resources and risk so as

to increase the Company's value.

Objective of GCG Implementation

The effectiveness of GCG implementation is

reflected in the achieved results. The Company

and our stakeholders have benefited from the

implementation of GCG by achieving good financial

and operational performance in 2019 as the

following:

Corporate Governance Results

1. The Company's operating income grew by 31.5%

2. EBITDA increased by 32.3%

3. Total assets increased by 57.2%

4. Equity increased by 3.9%

5. Evaluation result for the quality of GCG

implementation scored of 94.54

146



To ensure the quality of GCG implementation,

the Company adopted the best standards in

the implementation of GCG, both applicable in

international and in Indonesia, among other criteria

and methodology established bySOE Ministry

Secretary Decree No.SK-16/S.MBU/2012 concerning

Indicators/Parameters for the Implementation of Good

Corporate Governance in SOE and Financial Services

Authority Circular No.32/SEOJK.04/2015 concerning

Public Company Governance Guidelines. These

standards set the role og the Company's Board of

Commissioners in carry out their supervisory function

to ensure that the management of the Company

held by the Board of Directors is in accordance with

applicable legislation and provides advice/opinions

on strategic actions/activities carefully implemented

by the Board of Directors to achieve the objectives

of the Company. The Board of Directors emphasized

that in carrying out its management functions, it was

carried out in a mandate and professional manner

and to avoid any potential conflicts of interest.

Likewise with other GCG organs that work together

to create all of the Company's operational activities

in accordance with applicable laws and regulations.

Implementation Quality Standards of Corporate Governance

Quality Improvement of Corporate Governance Implementation

Road Map of GCG

The purpose and initial target of preparing the

GCG road map is to encourage the Management's

commitment in implementing and improving GCG

consistently. The Company has established the

stages of GCG implementation at the Company with

An Ethical and Responsible Company

• Company’s Organ

• The Board of Commissioners’

supporting Organ

• GCG Guideline

• Company’s Code of Conduct

• Manual Board Charter

• IT Governance

• Whistle Blowing Policy

• System & Procedure

• Implementation

• Review

• Assessment

• Audit

• GCG as culture

in managing the

Company

the aim of becoming an ethical and responsible

company, turning the practice of good governance

into a culture in the management of the Company,

as follows.

Infrastructure & Soft Structure

Continuous Improvement

Target

147



Since 2009, Semen Indonesia assesses the GCG

annual implementation (except in 2013). The

assessment aims to determine the adequacy of

GCG implementation in the Company, which are

carried out by an internal team, an independent

assessor, as well as government agency, BPKP of

East Java Province. Assessment conducted by the

Semen Indonesia is using various benchmark for

best practice standards applicable in Indonesia as

well as prevailing abroad.

Assessment becomes part of the check and balance

mechanism. With assessment, the results of activities

can be known with certainty and further actions to

improve the performance of these activities can be

determined. The Company regularly measures GCG

implementation. This is done to obtain an objective

assessment of the implementation of GCG in the

Company. GCG assessment in the Company can

be carried out independently by the Company

internally or by using the services of an independent

party (external evaluation).

The Company measures the achievements in

implementing GCG in the form of:

a. Assessment, aimed at periodically measuring the

implementation of GCG in BUMN.

b. Review, evaluate the follow-up of the

implementation of GCG in BUMN that is carried

out after the assessment, which includes

evaluation of the results of the assessment and

follow-up on recommendations for improvement.

2019, Semen Indonesia conducted an assessment

as one of the steps to measure the quality of GCG

implementation. Assessment was carried out by

PT Synergy Power Prima as an independent

appraiser to measure implementations within

Company for various functions in the Company.

Criteria UsedThe GCG assessment is carried out using the

Corporate Governance Scorecard parameters

issued by the Ministry of SOEs based on the Decree

of the Secretary of the Ministry of SOEs No.SK-

16/S.MBU/2012 concerning Indicators for Scoring

Parameter and Evaluation for Good Corporate

Governance Implementation for SOEs issued on 6

June 2012.

The Party Conducting the AssessmentIn 2019, the Company's GCG assessment was

conducted by PT Sinergi Daya Prima, with the

achievement of the GCG score in fiscal year 2019

of 94.54.

GCG Assessment

Follow-ups on GCG Assessment Recommendations

During 2019, improvements were made through follow-up actions taken by the Company upon the 2018

GCG Assessment recommendation:

Aspects Follow-up

Commitment to Sustainable Governance Implementation 4 (four) improvements

Shareholders and the GMS 3 (three) improvements

The Board of Commissioners 11 (eleven) improvements

The Board of Directors 10 (ten) improvements

Information Disclosure and Transparency 2 (two) improvements

Other aspects -

148



Summary results of the assessment/evaluation of GCG implementation of the Company from 2009 to

2019 using SOE Scorecard criteria are as follows:

Trends of the Score Results of the GCG Assessment

Year GCG Assessment Score Assessors

2019 94.54 PT Sinergi Daya Prima




2015 93.31 Internal Assessment Team

2014 91.38 BPKP of East Java Province




2009 83.88 BPKP ofEast Java Province

149



Corporate Governance Structure and Mechanism

Pursuant to Law No. 40 Year 2007 concerning

Limited Liability Companies, the corporate

organs are consisted of the General Meeting of

Shareholders (GMS), Board of Commissioners and

Board of Directors. The Company’s management

Implementation of corporate governance is

carried out systematically and continuously and

make GCG as a reference in their daily activities.

Under the Board of Commissioners, the functional

committees have been established to empower the

supervisory function, namely the Audit Committee,

the Nomination and Remuneration Committee as

well as Risk Management Strategy and Investment

Committee (RMSIC). According to government

regulations No.01/2011/KBUMN as also under the

Board of Directors, the operating units has been

formed with the duties to control, monitor and

responsible on GCG implementation, as well as to

serve as working partners of the committees under

the Board of Commissioners, as illustrated in below

chart:

Corporate Governance Structure

A close relationship exist among the Company’s

GCG work units management, that is the Corporate

Secretary who is responsible to the Board

Governance (communication and coordination

function with Board of Directors, Board of

RMSIC

Committee

Audit

Committee

Nomination &

Remuneration

& CSR

Committee

Department

of HR

Planning &

Policy

Corporate

Secretary

BOC

Secretary

Internal

Audit

Department

of Risk

Management

Department

of SHE

Management

Department

of Corporate

Social

Responsibility


Board of Directors

adopts two boards system, namely the Board

of Commissioners and Board of Directors, with

distinctive authority and responsibilities in line

with its functions as mandated in the Articles of

Association and prevailing laws.

Commissioners and Board of Commissioners

Committees), Law Department & GRC (operational

governance, policy formulation and compliance

functions) and Internal Audit as shown in the

following chart:

150



Corporate Code of Conduct Guideline and SIG's Culture Values Guidelines

Business Ethics, Code of Conduct, CHAMPS

Ove

rsig

ht

& A

ud

it S

yste

m In

tern

al A

ud

it

Ch

art

er,

Bo

ard

Co

mm

itte

es

Ch

ari

er,

Ext

ern

al A

ud

itin

g &

Ass

esm

en

t

GCG Guidelines for PTSIBased on Law for Public Company, Law for SOEs, Law for Capital Market, Articles of

Association, GCG, OJK, and Common Practices (ASEAN GCG Std, etc.)

Wh

istl

eb

low

ing

Po

licy

an

d D

isci

plin

e

En

forc

em

en

t P

roce

ss P

olic

y,

Str

uct

ure

, an

d S

yste

m

Board Governance

Board Manual, Integrity Pact,

Management Contract

Operational Governance

GCG Policy, ICT Governance, ICOFR, ERM,

Whistleblowing System, Compliance, Human

Capital, Procurement, and other policies

Corporate Scretary Dept. of Risk Management

Company implements GCG mechanism in an order,

in which the entire GCG organs have their respective

responsibility yet remains carrying out the GCG

implementation in an integrated manner. GMS has

the highest authority in which the shareholders will

consider carefully the decision for the sake of long-

term interest of the Company. Once a decision is

taken, the GMS will then grants all of the authority

for supervision and implementation of the decision

to the Board of Commissioners and the Board of

Directors.

Based on this mechanisms, the Company's

management and the implementation of any

decision is carried out by the Board of Directors. The

Board of Commissioners then conduct surveillance

and provide advice to ensure that the objectives

of the Company as well as the decision of the

General Meeting are implemented and achieved. In

carrying out its duty, the Board of Commissioners

is assisted by the BOC organs: BOC Secretary,

Audit Committee, Nomination and Remuneration

Committee, and Risk and Investment Management

Strategy Committee.

The Board of Directors is responsible for managing

the Company, and will be assisted by the Corporate

Secretary, Internal Audit, and other work units in

carrying out its duties of the Company's management

function.

In addition, the Company also conducted an

independent audit of the financial statements

conducted by the Public Accountant. This process is

important, in which the financial statements became

one of the fundamental information that reflect the

Company's performance and the management

conducted by the Management.

Corporate Governance Mechanism

151



General Meeting of Shareholders

General Meeting of Shareholders (GMS) is an organ

of the company that has the highest authority and

power that is not owned by the Directors and Board

of Commissioners within the limits specified in the

provisions of the legislation and the Company's

Articles of Association.

The authority of the GMS includes, among other

things, appointing and dismissing members of the

Board of Commissioners and Directors, evaluating

the performance of the Board of Commissioners and

Directors, approving amendments to the Articles

of Association, approving annual reports and

determining the form and amount of remuneration

for members of the Board of Commissioners and

Directors and making decisions related to corporate

actions or other strategic decisions submitted by

the Board of Directors.

The GMS implementation procedure is in

accordance with Law No. 40 of 2007 concerning

Limited Liability Companies as well as the Financial

Services Authority Regulation No. 32/POJK.04/2014

concerning the Plan and Implementation of General

Meeting of Shareholders of Public Company and

refers to the Articles of Association of the Company.

1. Request Proposal for GMS Implementation

Request proposal for the GMS Implementation

can be done by the Board of Commissioners or

Shareholders of one (1) or more which together

represent one tenth or more of the total shares

submitted to the Board of Directors.

2. Announcement of the GMS Agenda

Submission of the agenda to the OJK shall be

no later than 5 (five) business days prior to the

announcement of the GMS.

The GMS is conducted through the process of

announcement and invitation to the GMS, which

is carried out in accordance with applicable

regulations. Required material information about

GMS implementation is delivered together with the

GMS invitation. Should this information not available

at the time of the GMS invitation, the material

information will be delivered during the GMS event.

GMS consists of Annual GMS and Extraordinary

GMS. The Annual GMS is held by the Company

every year, while Extraordinary GMS may be held

at any time according to the needs and for the

Company's benefit.

3. Announcement of the GMS

Announcement of the GMS to shareholders shall

be no later than 14 days before the invitation

through daily newspapers, the website of

the Stock Exchange and the Company who

inform entitled shareholders with the rights to

attend and propose the GMS agenda, date of

implementation, and invitation.

4. Invitation to the GMS

GMS invitation to shareholders shall be no

later than 21 days before the GMS through

daily newspapers, the website of the Stock

Exchange and the Company who informs about

the GMS sate, time and place, decision of

entitled shareholders with the rights to attend,

as well as agenda and explanation of each

meeting agenda.

Procedure of GMS Implementation

152



Shareholders

Shareholders are individuals or legal entities that are

legally own shares. Shareholders do not intervene

in the functions, duties, and authority of the Board of

Commissioners and Board of Directors.

Under the Articles of Association, the Shareholders

of the Company consists of Series A Dwiwarna

that specifically only be owned by the Republic of

Indonesia and the Series B Shares to possession of

the Republic of Indonesia and/or the public.

Rights of Shareholders The Company recognizes a person or legal entity as

the competent authority exercising the right granted

by law for the shares. Shareholders of Series A

Dwiwarna and Series B Shares have the same

rights and every 1 (one) share provides 1 (one) vote.

According to the Articles of Association, the shares

of Series A Dwiwarna is a special share owned by

the Republic of Indonesia, which gives the holder

the privilege as Series A Dwiwarna Shareholder.

The privilege of Shareholders of Series A Dwiwarna

are:

1. The right to approve the GMA regarding the

following matters:

a. Approval of amendment.

b. Approval of changes in equity.

c. Approval to appoint and dismiss member of

the Board of Directors and Commissioners.

d. Approval related to merger, consolidation,

acquisition, separation and dissolution.

e. Approval of the remuneration of members of


f. Approval of transfer of assets by the Articles of

Association requires approval of the GMS.

g. Approval on inclusion and reduction of the

percentage of equity investment in another

company that is based on the Articles of

Association requires approval of the GMS.

h. Approval of use of profits.

i. Approval on investment and long-term

financing that is not operational by the Articles

of Association requires approval of the GMS.

2. The right to propose candidates for members of


3. The right to propose the GMS agenda.

4. The right to request and access data and

documents of the Company.

GMS Implementation in 2019

In 2019, the Company only hold an Annual General

Meeting of Shareholders on Wednesday, 22 May

2019, from 15:15 pm to 16:58 pm, at the Ballroom of

the Grand Sheraton Jakarta Hotel in Gandaria City,

Jl. Iskandar Muda Kebayoran, Jakarta.

Agenda of the Annual General Meeting of

Shareholders of the Company in Fiscal Year 2019 is

reflected in the following table:

153



The meeting was led by President Commissioner Mr. Sutiyoso and was attended by:


- President Commissioner : Sutiyoso

- Independent Commissioner : Mochamad Choliq

- Commissioner : Astera Primanto Bhakti

- Commissioner : Hendrika Nora Osloi Sinaga

- Commissioner : Wahyu Hidayat

- Commissioner : Sony Subrata

* Note:

Mr. Nasarudin Umar was unable to attend due to his duty abroad, thus he granted the power to

Mr. Mochamad Choliq through mail No.SRKA-009/SI/ DK/05.2019.

Board of Directors

- President Director : Hendi Prio Santoso

- Director of Finance : Doddy Sulasmono Diniawan

- Director of Business Strategy and Development : Fadjar Judisiawan

- Director of Marketing and Supply Chain : Adi Munandir

- Director of Human Resources and Legal : Agung Yunanto

- Director of Production : Benny Wendry

- Director of Engineering and Projects : Tri Abdisatrijo

Notary : Leolin Jayayanti, SH, M.Kn.

Securities Administration Bureau : PT Dantindo Entrycom

Shareholders : Shareholders and/or their proxies

The meeting was attended by holders of 4,934,942,563 registered shares, including Series

A Dwiwarna, equivalent to 83.2% of the total shares issued by the Company amounted to

5,931,520,000 shares.

Notification Announcement Invitation Implementation Results and Decision

Results and Decisions of

Semen Indonesia have

submitted AGMS Agenda

Notification to the Financial

Services Authority (OJK) as

in Letter No.2576/KS.08.02/

SUP/50045147/2000/03.2019

dated 13 March 2019 and

Changes to the AGM

implementation schedule

in letter No.2955/KS.08.02/

SUP/50045147/2000/03.02019

on 20 March 2019.

Semen Indonesia

submits the AGM

Announcement

to Shareholders

in 1 Indonesian

language daily

newspaper, the

Bisnis Indonesia.

Semen Indonesia

conveyed the

AGM Invitation

to Shareholders

in 1 Indonesian

language daily

newspaper, the

Bisnis Indonesia.

The AGMS

was held on

Wednesday,

22 May 2019,

from 15:15 pm to

16:58 pm, at the

Ballroom of the

Grand Sheraton

Jakarta Hotel in

Gandaria City, Jl.

Iskandar Muda

Kebayoran,

Jakarta.

Summary of Minutes

of the Annual GMS

announced on 24 May

2019.

154



The implementation of the Meeting and the Resolution of the Meeting Agenda has been stated in the

deed of "Minutes of Annual General Meetings of Shareholders of PT Semen Indonesia (Persero) Tbk."

dated 24 May 2019, made by Notary Leolin Jayayanti, SH, M.Kn. as follows:

First Agenda

Approved the Annual Report on the condition and operation of the Company during the

Fiscal Year 2018 including the Report on the Implementation of the Supervisory Duties

of the Board of Commissioners during the Fiscal Year 2018, and the ratification of the

Company's Financial Statements for the Fiscal Year 2018, as well as the granting of full

redemption and release of responsibility (volledig acquit et decharge) to the Board of

Directors and Commissioners for the Company’s management and supervision duties

carried out during the Fiscal Year 2018.

Number of Shareholders

Ask QuestionsNone

Decision-Making

With Voting

Disagree Abstain Agree

24,721,500 (0.50%) 20,822,679 (0.42%) 4,889,398,384 (99.08%)

Meeting Decision

Approved the Fiscal Year 2018 Annual Report, including the Board of Commissioners’

Supervisory Report and endorse the Financial Statements of the Company for Fiscal Year

2018 and restate the Fiscal Year 2017 Financial Statement dated 31 December 2017 audited

by the Public Accounting Firm Satrio Bing Eny & Partners (a member of Deloitte Touche

Tohmatsu Limited), as contained in its report Number 00282/2.1097/AU.1/04/0565-3/1/III/2019

dated 30 March 2019, with the opinion "fair, in all material respects, consolidated financial

statements of PT Semen Indonesia (Persero) Tbk. and its subsidiaries as of 31 December

2018, and financial and performance of its consolidated cash flows for the year ended on

that date, in accordance with Indonesian Financial Accounting Standards ", and provide

full redemption and release of responsibility (volledig acquit et de charge) to the Board of

Directors and Commissioners of the Company for the management and supervision duties

that have been carried out in Fiscal Year ended on 31 December 2018, as long as these

actions do not constitute criminal offenses and is reflected in the Company's report.

Second Agenda

Ratification of the Annual Report for the Partnership and Community Development Program

for Fiscal Year 2018, as well as granting repayment and acquit et decharge to the Board of

Directors and Commissioners for the management and supervision of the partnership and

community development program carried out during Fiscal Year 2018.


Ask QuestionsNone

Decision-Making

With Voting


483,500 (0.01%) 20,822,579 (0.42%) 4,913,636,484 (99.57%)

Meeting Decision

Approved the Annual Report of the Partnership and Community Development Program

for the Fiscal Year 2018 and endorsed the Financial Statements of the Partnership and

Community Development Program audited by Public Accounting Firm Satrio Bing Eny

& Partners (a member of Deloitte Touche Tohmatsu Limited), according to their report

Number NAR119 0006 PKBLSI RBP dated 1 March 2019, as well as providing full redemption

and release of responsibility (volledig acquit et de charge) to the Board of Directors

and Commissioners of the Company for the management and supervision duties of the

Partnership and Community Development Program for the Fiscal Year 2018, as long as

these actions do not constitute criminal offenses and is reflected in the Company's report.

155



Third Agenda Penetapan penggunaan laba bersih Perseroan Tahun Buku 2018.


Ask QuestionsNone

Decision-Making

With Voting


34,376,300 (0.69%) - 4,900,566,263 (99.30%)

Meeting Decision

a. Determine the use of the Net Income of the Owners of the Company for the Fiscal Year

2018 amounting to Rp3,079,115,411,000,- as follows:

- 40% or Rp1,231,646,164,400 or Rp207.64 per share, determined as cash dividends,

thus the dividend of the Government of the Republic of Indonesia with 51.01% shares

was amounted to Rp628,262,708,460.-

- 60% or Rp1,847,449,246,600 is designated as other reserves.

b. Granted authority and power to the Board of Directors of the Company with the right

of substitution to further regulate the procedure and implementation of the distribution

of cash dividends in accordance with applicable regulations, including rounding up for

payment of dividends per share.

Fourth AgendaDetermined the Fiscal Year 2018 tantiem, salary for the Board of Directors and honorarium

for the Board of Commissioners along with facilities and other benefits for 2019.


Ask QuestionsNone

Decision-Making

With Voting


140,038,712 (2.84%) 574,000 (0.01%) 4,794,329,851 (97.15%)

Meeting Decision

a. Granted authority and power to the Dwiwarna A Series Shareholders to determine the

amount of the tantiem for the Fiscal Year 2018, as well as determine the honorarium,

benefits and facilities for members of the Board of Commissioners for 2019.

b. Granted authority and power to the Board of Commissioners by first obtaining written

approval from Dwiwarna A Series Shareholders to determine the amount of tantiem for

Fiscal Year 2018, as well as determine salary, benefits, facilities and other incentives for

the Board of Directors for 2019.

156



Fifth Agenda

Approved the Appointment of a Public Accountant Firm ("KAP") to audit the Company's

Financial Statements including auditing the Partnership and Community Development

Program Report for Fiscal Year 2019 and other periods in Fiscal Year 2019.


Ask QuestionsNone

Decision-Making

With Voting


240,560,134 (4.87%) 5,418,100 (0,11%) 4,688,964,329 (95.01%)

Meeting Decision

a. Approved the appointment of Public Accounting Firm of KAP Tanudiredja, Wibisana,

Rintis & Rekan (a member of PwC network of firms) to conduct audit services on the

Company's Consolidated Financial Statements and the Financial Statements of the

Implementation of the Partnership and Community Development (PKBL) Program for the

Fiscal Year ending 31 December 2019.

b. Granted delegation of authority to the Board of Commissioners of the Company to

determine the amount of compensation for audit services, additional scope of work

required, and other reasonable requirements for the Public Accounting Firm.

c. Granted authority and power to the Board of Commissioners by first obtaining written

approval from Dwiwarna Series A Shareholders to determine a replacement for the Public

Accounting Firm, in the case of Public Accounting Firm of KAP Tanudiredja, Wibisana, Rintis

& Rekan (a member of PwC network of firms) for whatever reason cannot complete the audit

of the Company's Consolidated Financial Statements for Fiscal Year 2019 and other periods

in Fiscal Year 2019 and the Financial Statements for Implementation of the Partnership and

Community Development (PKBL) Program of the Company for Fiscal Year 2019.

Sixth Agenda Amendment to the Company's Articles of Association.


Ask QuestionsNone

Decision-Making

With Voting


1,318,294,849 (26.71%) 215,233,300 (4.36%) 3,401,414,414 (68.92%)

Meeting Decision

a. Approved changes to the Company's Articles of Association.

b. Approved to rearrange all provisions in the Company's Articles of Association in

connection with the changes referred to in item a of the above-mentioned decision.

c. Granted power and authority to the Board of Directors with the right of substitution

to take all necessary actions related to the decision of the agenda of this Meeting,

including preparing and restating the entire Articles of Association in a Notary Deed and

submitting to authorized institutions to obtain approval and/or receipt of notification of

changes to the Articles of Association of the Company, to conduct everything deemed

necessary and useful for these purposes with none of which is excluded, including

to make additions and/or changes in the Articles of Association if it is required by the

relevant authority.

157



Seventh Agenda Changes in the Composition of the Company's Management


Ask QuestionsNone

Decision-Making

With Voting


164,402,620 (3.33%) 5,418,100 (0.11%) 4,765,121,843 (96.56%)

Meeting Decision

1. Respectfully dismissed the following names:

- Mr. Sutiyoso as President Commissioner;

- Mr. Wahyu Hidayat as Commissioner;

- Mr. Agung Yunanto as Director of Human Resources and Legal, as of the closing of this

GMS, with gratitude for the contribution of energy and thoughts that have been given

while serving as a member of the Board of Commissioners and Directors of the Company

2. Appointed the following new names:

- Mr. Soekarwo as President Commissioner;

- Mrs. Lydia Silvanna Djaman as Commissioner;

- Mrs. Tina T. Kemala Intan as Director of Human Resources and Law.

3. The term of office of members of the Board of Commissioners and Directors appointed

as in point 2 in accordance with the provision of the Articles of Association by taking into

account the legislation in the Capital Market and to the rights of the GMS to dismiss at

any time without prejudice.

4. With the dismissal and appointment of the Company's Board of Commissioners and Directors

as referred to previously, the Company's new Management Structure is as follows:

a. Board of Commissioners

No Name Position

1 Soekarwo : President Commissioner

2 Lydia Silvanna Djaman : Commissioner

3 Nasaruddin Umar : Independent Commissioner

4 Mochamad Choliq : Independent Commissioner

5 Astera Primanto Bhakti : Commissioner

6 Hendrika Nora O.Sinaga : Commissioner

7 Sony Subrata : Commissioner

b. Board of Directors

No Name Position

1 Hendi Prio Santoso : President Director

2 Doddy Sulasmono Diniawan : Director of Finance

3 Benny Wendry : Director of Production

4 Fadjar Judisiawan : Director of Business Strategy & Development

5 Tri Abdisatrijo : Director of Engineering & Projects

6 Adi Munandir : Director of Marketing & Supply Chain

7 Tina T. Kemala Intan : Director of Human Resources & Legal

5. Granted authority and power to the Board of Directors of the Company with the right

of substitution to take all necessary actions related to the decision of this agenda in

accordance with applicable laws and regulations, including to state in a separate Notary

Deed and notify the composition of the Board of Directors and Commissioners of the

Company to the Ministry of Law and Human Rights.

158



Resolutions of the Previous Annual General Meeting of Shareholders

In 2018, the Company held one Annual General

Meeting of Shareholders (AGM). The AGM was held

on 30 April 2018 at the Main Hall of the Indonesia

Stock Exchange at Menara I, Jl. Jend. Sudirman

Kav. 52-53, Jakarta, attended quorum by the

shareholders and/or representing 4,805,032,223

shares, including Dwiwarna Series A Shares,

equivalent to 81% of the total issued shares of the

Company amounting to 5,931,520,000 shares.

First Agenda Approved the Annual Report on the condition and operation of the Company during the Fiscal

Year 2017 including the Report on the Implementation of the Supervisory Duties of the Board

of Commissioners during the Fiscal Year 2017, and the ratification of the Company's Financial

Statements for the Fiscal Year 2017, as well as the granting of full redemption and release of

responsibility (volledig acquit et decharge) to the Board of Directors and Commissioners for the

Company’s management and supervision duties carried out during the Fiscal Year 2017.

Decision

Meeting

1. Approved the Fiscal Year 2017 Annual Report, including the Board of Commissioners’ Supervisory

Report and endorse the Financial Statements of the Company for Fiscal Year 2017.

2. Approved the Fiscal Year 2017 Financial Statement dated 31 December 2017 audited by the Public

Accounting Firm Satrio Bing Eny & Partners (a member of Deloitte Touche Tohmatsu Limited),

as contained in its report Number No. GA118 0100 SI FAN dated 23 February 2018, with the

opinion "fair, in all material respects, consolidated financial statements of PT Semen Indonesia

(Persero) Tbk. and its subsidiaries as of 31 December 2017, and financial and performance of its

consolidated cash flows for the year ended on that date, in accordance with Indonesian Financial

Accounting Standards ", and provide full redemption and release of responsibility (volledig acquit

et de charge) to the Board of Directors and Commissioners of the Company for the management

and supervision duties that have been carried out in Fiscal Year ended on 31 December 2017,

as long as these actions do not constitute criminal offenses and is reflected in the Company's

Financial Statements and does not conflict with the provisions and regulations.

Follow-up Immediate decision applied

Status Realized

159



Second Agenda Ratification of the 2017 Annual Report of the Partnership and Community Development Program,

as well as granting full redemption and release of responsibility (acquit et decharge) to the Board

of Directors and Commissioners for the management and supervision of the partnership and

community development programs carried out during the Fiscal Year 2017

Decision

Meeting

1. Approved the Annual Report of the Partnership and Community Development Program for the

Fiscal Year 2018 and endorsed the Financial Statements of the Partnership and Community

Development Program audited by Public Accounting Firm Satrio Bing Eny & Partners, (members

of Deloitte Touche Tohmatsu Limited) in accordance with their Report in letter No. GA118 0093

PKBLSI FAN dated 20 February 2018 with opinion of "fair, in all material respects, Financial

Statements of the Partnership and Community Development of PT Semen Indonesia (Persero)

Tbk dated 31 December 2017, as well as activity and cash flow reports for the year ended on that

date, in accordance with the Entity's Accountability Financial Standards " as well as providing

full redemption and release of responsibility (volledig acquit et de charge) to the Board of

Directors and Commissioners of the Company for the management and supervision duties

of the Partnership and Community Development Program for the Fiscal Year 2018, as long as

these actions do not constitute criminal offenses and is reflected in the Company's PKBL Annual

Report and does not conflict with the provisions and regulations. Furthermore, for the Subsidiary

and Community Development Program Annual Report 2017 of Subsidiary is approved by the

Subsidiary's Shareholders.

2. Granted power and authority to the Board of Commissioners by first obtaining written approval

from the Dwiwarna Series A Shareholder regarding the authority of the GMS as stipulated in the

Regulation of the Minister of SOEs No. PER-09/MBU/07/2015 as last amended by the Regulation

of the Minister of SOEs No. No. PER-02/MBU/7/2017, and its changes.


Status Realized

Third Agenda Determined of the Company's net profit utilization for the Fiscal Year 2017

Decision

Meeting

1. Approved the determination of the current profit attributable to the owners of the Parent Entity

(the Company's Net Profit) as follows:

a. Dividends of 40% or Rp805,678,361,600 or Rp135.83 per share. Share of the Shareholders of

the Government of the Republic of Indonesia is 51.01% or Rp410,940,896,980 and the Public

48.99% or Rp394,737,464,620.

b. The remaining 60% or Rp1,208,336,391,400 were recorded as Retained Earnings to support

the Company's operational and development activities.

2. Granted authority and power to the Board of Directors of the Company with substitution rights

to determine the schedule and procedure for dividend payment for the Fiscal Year 2017 in

accordance with the provisions in force.

Follow-up The Company distributed the dividends as of 31 May 2018

Status Realized

160



Fourth Agenda Determination of Tantiem for the Fiscal Year 2017, salaries for the Directors, and honorarium for the

Board of Commissioners including facilities and other benefits for 2018.

Decision

Meeting

1. Granted authority and power to the Dwiwarna Series A Shareholders to determine the amount

of the bonus for the Fiscal Year 2017 and determine the honorarium, benefits, facilities and other

benefits for members of the Board of Commissioners for 2018.

2. Granted authority and power to the Board of Commissioners by first obtaining written approval from

the Dwiwarna Series A Shareholder, to determine the amount of tantiem for the Fiscal Year 2017 and

to determine salary, benefits, facilities and other benefits for the Board of Directors for 2018.

Follow-up

Holders of Series A Share have determined the bonuses and honorarium of the Board of

Commissioners and Directors through letter No. S-586/MBU/D2/06/2018 concerning Submission

of Earnings Determination of the Board of Directors and Commissioners of PT Semen Indonesia

(Persero) Tbk. for 2018.

Status Realized

Fifth Agenda Approved the Appointment of a Public Accountant Firm ("KAP") to audit the Company's Financial

Statements including audits of the Partnership and Environment Program Report for Fiscal Year 2018

and other periods in Fiscal Year 2018.

Decision

Meeting

1. The GMS appointed the Public Accounting Firm (KAP) Satrio Bing Eny & Partners, members of

Deloitte Touche Tohmatsu Limited to carry out the work:

a. General Audit of the Company's Consolidated Financial Statements for Fiscal Year 2018 and

other periods of Fiscal Year 2018.

b. General Audit of Financial Statements for the Use of Funds for the Partnership and Community

Development Program Fiscal Year 2018.

c. Audit of compliance with laws and regulations and internal control in 2018.

d. Company Performance Evaluation for the Fiscal Year 2018 ending 31 December 2018 and KPI

determined by the Board of Commissioners.

2. Granted delegation of authority to the Board of Commissioners to:

a. Appointed a substitute public accounting firm and determine the requirements and conditions

of appointment if the appointed public accounting firm is unable to carry out or continue

its work for any reason, including legal reasons and legislation in the capital market or

agreement is not reached regarding the amount of audit services.

b. Determined the amount of compensation for audit services and other appointment

requirements that are reasonable for the Public Accounting Firm.

Follow-up

KAP Satrio Bing Eny & Partners, members of Deloitte Touche Tohmatsu Limited have been

appointed to carry out the work as decided in the Meeting based on letter No. 0000895/HK.01/

DP/50045125/2000/09.2018

Status Realized

Sixth Agenda Accountability for the Realization of the Use of Proceeds from the 2017 Sustainable Bonds I Phase I

of Public Offering Bonds

Decision

Meeting

Received responsibility report on Realization of the Use of Proceeds from Semen Indonesia’s Public

Offering of Sustainable Bonds I Phase I in 2017 amounting to Rp3 trillion.


Status Realized

161



Eight Agenda Ratification of the Regulation of the Minister of State-Owned Enterprises No. PER-03/MBU/08/2017

dated 14 August 2017 concerning Guidelines for Cooperation in State-Owned Enterprises and

No. PER-04/MBU/09/2017 dated 13 September 2017 concerning Amendment to the Regulation

of the Minister of State-Owned Enterprises No. PER-03/MBU/08/2017 concerning Guidelines for

Cooperation in State-Owned Enterprises.

Decision

Meeting

Approved the ratification/confirmation of the enactment of the Minister of State-Owned Enterprises

Regulation No. PER-03/MBU/08/2017 dated 14 August 2017 concerning Guidelines for Cooperation

in State-Owned Enterprises and No. PER-04/MBU/09/2017 dated 13 September 2017 concerning

Amendment to the Regulation of the Minister of State-Owned Enterprises No. PER-03/MBU/08/2017

concerning Guidelines for Cooperation of State-Owned Enterprises and including any changes that

occur in the future.


Status Realized

Seventh Agenda Amendment to the Company's Articles of Association

Decision

Meeting

1. Approved changes to the Company's Articles of Association.

2. Approved to rearrange all provisions in the Company's Articles of Association in connection with

the changes referred to in item a of the above-mentioned decision.

3. Granted power and authority to the Board of Directors with the right of substitution to take all

necessary actions related to the decision of the agenda of this Meeting, including preparing

and restating the entire Articles of Association in a Notary Deed and submitting to authorized

institutions to obtain approval and/or receipt of notification of changes to the Articles of

Association of the Company, to conduct everything deemed necessary and useful for these

purposes with none of which is excluded, including to make additions and/or changes in the

Articles of Association if it is required by the relevant authority.


Status Realized

Ninth Agenda Changes in the Composition of the Company's Management

Decision

Meeting

1. Honorably dismissed Mr. Ahyanizzaman as Director of Marketing & Supply Chain as of the

closing of this GMS, with gratitude for the contribution of energy and thoughts given while

serving as Director of Marketing and Supply Chain of the Company.

2. Reappointed the following names:

a. Mr. Doddy Sulasmono Diniawan from previously served as Director of Business Strategy &

Development to Director of Finance.

b. Mr. Fadjar Judisiawan previously served as Director of Finance to Director of Business

Strategy & Development with a term of office continuing the remaining term of office

concerned, in accordance with the resolution of the GMS of the appointment in question.

3. Appointed Mr. Adi Munandir as Director of Marketing & Supply Chain.

4. Honorably dismissed Mr. Djamari Chaniago as the Independent Commissioner of the Company,

as of the closing of this GMS, with gratitude for the contribution of energy and thoughts given

while serving as an Independent Commissioner.

5. Honorably dismissed Mr. Hambra as Commissioner of the Company as of 26 April 2018 with

gratitude for the contribution of energy and thought given while serving as the Company's

Commissioner.

162



6. Appointed the following names members of the Company's Board of Commissioners:

a. Mr. Mochamad Choliq as Independent Commissioner

b. Ms. Hendrika Nora Osloi Sinaga as Commissioner

7. The term of office of members of the Board of Directors and Commissioners appointed as point

3 and 6 in accordance with the provisions of the Articles of Association by taking into account

the legislation in the Capital Market and the right of the GMS to dismiss at any time without

prejudice.

8. With the transfer of duties, dismissals and appointments of the Board of Directors and

Commissioners of the Company as referred to in numbers 1, 2 and 3, the composition of

members of the Company's Board of Directors and Commissioners are as follows:

a. Board of Directors

No Name Position

1 Hendi Prio Santoso : President Director

2 Doddy Sulasmono Diniawan : Director of Finance

3 Agung Yunanto : Director HR and Legal

4 Adi Munandir : Director of Marketing and Supply Chain

5 Fadjar Judisiawan : Director of Business Strategy & Development

6 Tri Abdisatrijo : Director of Engineering & Projects

7 Benny Wendry : Director of Production

b. Board of Commissioners

No Name Position

1 Sutiyoso : President Commissioner

2 Wahyu Hidayat : Commissioner

3 Astera Primanto Bhakti : Commissioner

4 Sony Subrata : Commissioner

5 Hendrika Nora Osloi Sinaga : Commissioner

6 Nasaruddin Umar : Independent Commissioner

7 Mochamad Choliq : Independent Commissioner

9. Granted power and authority to the Board of Directors of the Company with the right of

substitution to take all necessary actions related to the decisions of this agenda in accordance

with applicable laws and regulations, including to state in a separate Notary Deed and notify the

composition of the Board of Directors and Commissioners of the Company to the Ministry of Law

and Human Rights.


Status Realized

163




The Board of Commissioners is the Organ of the

Company whose duty is to conduct oversight in

general and/or specifically in accordance with

the Articles of Association, provide advice to the

Directors, and ensure that the Company implements

GCG principles. The Board of Commissioners is

responsible to Shareholders in terms of overseeing

the Board of Directors' policies regarding the

Company's operations in general, which refers to

the business plans that have been approved by the

Board of Commissioners and Shareholders, and

ensures compliance with all applicable laws and

regulations.

Each member of the Board of Commissioners

must have high integrity, knowledge, ability and

commitment to provide time in carrying out their

duties. Thus, the role of the Board of Commissioners

is very strategic. Therefore, the composition of the

Company's Board of Commissioners must enable

effective, appropriate and speedy decision makers.

In addition, the Board of Commissioners is also

required to be able to act independently, in the

sense that they do not have a conflict of interest that

can interfere with their ability to carry out their duties

independently and be critical, both in relations

between members of the Board of Commissioners

and with the Directors.

Legal Basis

Legal Basis for Appointment of the Board of

Commissioners:

1. Law No. 40 of 2007 concerning Limited Liability

Companies;

2. Law No. 19 of 2003 concerning State-Owned

Enterprises (BUMN);

3. Financial Services Authority Regulation No.

33/POJK.04/2014 concerning The Board of

BOC’s Guideline/Board Manual

As part of efforts to improve the quality of the

implementation of GCG best practices, in carrying

out its supervisory duties and providing advice to

the Board of Directors, the Board of Commissioners

has a Board Manual that is used as a reference and

work guidelines.

The Board of Commissioners’ guidelines in the

Board Manual include:

Directors and Commissioners of Issuers or Public

Companies;

4. Regulation of the Minister of SOEs No. PER-

02/MBU/02/2015 concerning Requirements,

Procedures for Appointment and Dismissal of

Members of the Board of Commissioners of

SOEs.

• Function of the Board of Commissioners

• Statement of the Board of Commissioners

• Membership of the Board of Commissioners

• President Commissioner

• Independent Commissioner

• Board of Commissioners’ Code of Ethics

• Duties and Powers of the Board of Commissioners

• Decision Making of the Board of Commissioners

• Accountability of the Board of Commissioners

164



BOC’s Criteria

The Board of Commissioners' requirements are

explained in the Company's Board Manual, which

confirms the existence of general and specific

requirements, including:

• Has never been a Director or member of the

Board of Commissioners who was found guilty of

causing a company went bankrupt within 5 years

prior to his appointment;

• Has never been convicted of financial crime

within 5 years prior to his appointment;

• Not a manager of political parties and/or

candidates for legislative members;

• Has not occupied a position that has the potential

to create a conflict of interest with the Company,

or is willing to resign if elected as a member of

the Board of Commissioners;

• Has adequate knowledge in the Company's

Business Fields;

• Has the ability to conduct strategic oversight in

terms of the Company's development;

• Understands the Company’s management issues

related to one management function.

Composition of BOC Members in 2019

Members of the Board of Commissioners are

determined by the GMS by taking into account

the Company's vision, mission and strategic plan,

to enable effective, precise and fast decision

making, and able to act independently.

The composition of the Board of Commissioners

of Semen Indonesia, which will serve from

1 January 2019 to 22 May 2019, is the following:

The composition of the Board of Commissioners serving from 22 May 2019 until the end of Fiscal Year 2019:

Name Position Legal Base of Appointment

Letjen TNI (Purn) Sutiyoso President Commissioner AGMS 31 March 2017 – AGMS 22 May 2019

Nasaruddin Umar Independent Commissioner AGMS 31 March 2017 – AGMS 2022

Mochamad Choliq Independent Commissioner AGMS 30 April 2018 – AGMS 2023

Wahyu Hidayat Commissioner AGMS 25 March 2014 – AGMS 22 May 2019

Sony Subrata Commissioner EGMS 23 January 2015 – AGMS 2020

Astera Primanto Bhakti Commissioner AGMS 31 March 2017 – AGMS 2022

Hendrika Nora Osloi Sinaga Commissioner AGMS 30 April 2018 – AGMS 2023

Name Position Legal Base of Appointment

Soekarwo President Commissioner AGMS 22 May 2019 – AGMS 2024

Nasaruddin Umar Independent Commissioner AGMS 31 March 2017 – AGMS 2022

Mochamad Choliq Independent Commissioner AGMS 30 April 2018 – AGMS 2023

Sony Subrata Commissioner EGMS 23 January 2015 – AGMS 2020

Astera Primanto Bhakti Commissioner AGMS 31 March 2017 – AGMS 2022

Hendrika Nora Osloi Sinaga Commissioner AGMS 30 April 2018 – AGMS 2023

Lydia Silvanna Djaman Commissioner AGMS 22 May 2019 – AGMS 2024

165



Independence of the Board of Commissioners

All members of the Board of Commissioners shall act

independently, free from intervention of any party.

The last board of management of the Company has,

at least, two Independent Commissioners from a

total of seven commissioners, or 30% of the total

members, which means that they have complied

with the applicable laws and regulations. The

Independent Commissioner of the Company has

never had any business relationship or affiliation

and family relations with members of the Board of

Directors or other members of the Commission up

to the third-degree relationship, either in a straight

line or sideways line or a seminal relationship. Thus,

the Board of Commissioners can act independently

in making decisions.

The Board of Commissioners’ independency

commitments have been substantiated by means

of the “Statement Letter” signed by every member

of Board of Commissioners on stamp duty. The

“Statement” contains the following statement:

1. Having good character, morals and integrity.

2. Legally competent.

3. Within 5 (five) years prior to appointment and

during the term of office:

a. Never have been declared bankrupt;

b. Never have once found guilty for causing a

company to be declared bankrupt on their

period of serving as a member of Board of

Directors and/or Board of Commissioners;

c. Never have once been convicted of a crime

that is detrimental to state finances and/or

related to the financial sector;

d. Never have served as a member of the Board

of Directors and/or members of the Board of

Commissioners during term of office that:

PNever held a AGMS;

PThe accountabilities, as a member of the

Board of Directors and/or members of the

Board of Commissioners, has ever been

rejected by the AGMS or has never provided

accountability, as a member of the Board of

Directors and/or members of the Board of

Commissioners, to the General Meeting of

Shareholders;

PNever have caused a company, which has

a license, approval or registration from the

Financial Services Authority, not fulfilling

its obligation to submit annual report and/

or financial report to the Financial Services

Authority;

4. Having the commitment to comply with the

legislation;

5. Having knowledge and/or expertise in the

discipline required by PT Semen Indonesia

(Limited) Tbk (“Company”);

6. Not an individual working for the Company,

or having the authority and responsibility to

plan, lead, control or oversee the Company’s

operations within the last 6 (six) months, except for

reappointment as an Independent Commissioner

of the Company for a subsequent term of office.

7. Do not own the Company’s shares both directly

or indirectly;

8. Do not affiliate with the Company, members of

the Board of Commissioners, and members of

the Board of Directors or major shareholders of

the Company;

9. Do not have any business relationship, whether

directly or indirectly, with the Company.

In 2019, all members of the Board of Commissioners

have signed the “Statement Letter.”

Shareholdings by the Board of Commissioners

All members of the Board of Commissioners do not own shares in SIG.

166



Purchase/Sales of the Board of Commissioners' Shares

In accordance with OJK Regulation

No. 11/POJK.04/2017 concerning Ownership Reports

or Any Changes in Ownership of Public Company

Shares, in 2019 there were share transactions with

members of the Company's Board of Commissioners.

The transactions have been reported to OJK.

Name Position Transaction

Total

Shares

Before

Transaction

Total

Buying/

Selling

Total

Shares

After

Transaction

Date of

Transaction

Transaction

PurposeReport Pelaporan

Sony

Subrata

Commissioner Share

Buying

0 shares 14,000

shares

Rp11,775 14,000

shares

5 December

2018

Investment 4 January

2019

Share

Selling

14,000

shares

14,000

shares

Rp11,900 0 share 6 December

2018

Private

Name PositionPosition in Other Company/

Institution

Name of Other Company/

Institution

Soekarwo President Commissioner - -

Nasaruddin Umar Independent

Commissioner

Great Imam Istiqlal Mosque

Professor Syarif Hidayatullah State

Islamic University

Mochamad Choliq Commissioner - -

Sony Subrata Commissioner Commissioner PT Arwuda Indonesia

Commissioner PT Tridaya Nusantara

Astera Primanto Bhakti Commissioner Director General of Fiscal

Balance

The Ministry of Finance

Hendrika Nora Osloi

Sinaga

Komisaris Assistant to Deputy of Energy,

Logistics, Region and Tourism I

The Ministry of SOEs

Lydia Silvanna Djaman Komisaris Deputy of Law and Regulations The Ministry of State

Secretariate

Concurrent Position of the Board of Commissioners

The following are concurrent positions held

by the Board of Commissioners. The position

does not interfere with the independence of

the members of the Board of Commissioners in

carrying out supervisory duties and providing

advice on the policies and the course of the

Company, including in making decisions for the

Board of Commissioners.

167



Affiliations of the Board of Commissioners

Period of 1 January - 22 May 2019

Name Position

Financial Affiliations with Familial Affiliations with Share

Ownership

at Semen

IndonesiaBOC BOD Shareholders BOD BOD Shareholders

Yes No Yes No Yes No Yes No Yes No Yes No Ya No

SutiyosoPresident

Commissioner√ √ √ √ √ √ √

Nasaruddin

Umar

Independent


Mochamad

Choliq

Independent


Wahyu

HidayatCommissioner √ √ √ √ √ √ √

Sony Subrata Commissioner √ √ √ √ √ √ √

Astera

Primanto

Bhakti

Commissioner √ √ √ √ √ √ √

Hendrika

Nora Osloi

Sinaga


Periode 22 Mei – 31 Desember 2019

Name Position

Financial Affiliations with Familial Affiliations with Share

Ownership

at Semen

Indonesia

BOC BOD Shareholders BOD BOD Shareholders

Yes No Yes No Yes No Yes No Yes No Yes No Ya No

SoekarwoPresident


Nasaruddin

Umar

Independent


Mochamad

Choliq

Independent


Sony

SubrataCommissioner √ √ √ √ √ √ √

Astera

Primanto

Bhakti


Hendrika

Nora Osloi

Sinaga


Lydia Silvanna

DjamanCommissioner √ √ √ √ √ √ √

168



Duties and Responsibilities

In general, in accordance with Law No. 40 of 2007

concerning Limited Liability Companies and Law No. 19

of 2003 concerning SOEs and the Company's Articles

of Association, the duties and scope of responsibilities

of the Board of Commissioners are as follows:

1. Performing supervisory duties on the policies

and the management of the Company and

providing advice on the implementation of the

Company's Long-Term Plan (RJPP), Work Plan

and Corporate Budget (RKAP), including the

Company's KPI and the provisions of the Articles

of Association and GMS decisions, as well as the

laws and regulations that apply to the interests

of the Company and in accordance with the aims

and objectives of the Company.

2. Carrying out GCG principles’ implementation

and supervising their application within the

organization.

3. Providing general views and input on the Board

of Directors' performance report to the GMS.

4. Providing reports on the accountability of activities

and performance of the Board of Commissioners

to the GMS.

5. Leading committees formed by the Board of

Commissioners in carrying out all the duties and

work relationships of the Committee.

6. Giving approval to the Board of Directors, or

providing opinion/response to the GMS on

the Board of Directors' plans in implementing

their policies in accordance with the Articles of

Association of the Company.

7. Following up the development of the Company's

activities and providing opinion and suggestion

regarding the plan and implementation of RJPP,

RKAP, and any issues deemed important to the

Company.

8. Ensuring that the Company discloses the

implementation of GCG principles in the GMS

and Annual Report.

9. Conducted meetings with the Board of Directors,

Audit Committee and other units related to the

management of the Company

Recommendations and Implementation of the Duties of the Board of Commissioners

In accordance with the duties of the Board of

Commissioners, namely to supervise the Company's

management policies, as well as provide advice to

the Directors for the interests of the Company and

in accordance with the aims and objectives of the

Company, in 2019 the Board of Commissioners

provides several directives, as follows:

1. The Board of Directors and all levels of the

Company's Management are requested to pay

special attention to the pursuit of cost efficiency

and increased revenue through the following

steps:

• Conduct a thorough evaluation and maximum

efficiency efforts of the Company's main cost

components, particularly those related to

energy and logistics.

• Intensively plan and implement business

development that is 'cement related' and 'non-

cement related' which will support the increase

in the Company's consolidated income, as well

as seek synergies with SOEs.

• Strengthening operational synergies in terms of

management efficiency for product allocation,

Inter-Company Sales (ICS), and centralized

exports/imports in Holding Companies.

• Increase productivity for production facilities

at GIS, among others through standardization

of production systems Increase research

and development activities to improve the

Company's efficiency and competitiveness

in the fields of energy, fuel, raw materials,

packaging, Alternative Fuel & Raw Materials

(AFR), environment, product quality and

product applications.

• Strengthening distribution channels to expand

networks and market penetration, including

through the implementation of integrated

Supply-Chain Management (SCM) and

Customer Relationship Management (CRM).

• Improve the internal capabilities of GIS in

offering a complete cement solution that suits

customer needs.

• Begin to include financial performance

targets of non-cement business clusters in the

upcoming 2018 RKAP proposal.

169



2. For sustainable growth, the Board of Commissioners

directs the Board of Directors to increase:

• Leadership and Human Resources: The

Company must emphasize the importance of

leadership strategies to continue commitment;

PThe Company to produce future leaders;

PThe Company also needs to accelerate the

development of human resource capacity

in line with business development, and

ensure that all of the Company's people are

qualified, have integrity.

Pand are highly motivated. Always evaluating

and perfecting the Company's "culture",

human resource capacity, and organization

in accordance with the latest conditions.

• Improving the application of good corporate

governance (GCG) in accordance with regional

best practice best. This improvement must be

reflected in the growth of GCG-based culture

in the implementation of daily tasks. This must

be a priority for the Company.

• The Social and Environmental Responsibility

Program (CSR) must be continuously improved

because it is very important for the long-term

sustainability of the Company's business, and

also for the community and the environment.

• Improving the implementation of ICT that is

reliable, in line with the business development

and organization of the Company.

Company Introduction Program for New Commissioners

Considering the different backgrounds of members

of the Board of Commissioners, the Company

implements an introduction program, so that it is

expected to be able to provide an overview of the

Company's business activities and matters that are

the responsibility of the Board of Commissioners.

The introduction program includes:

1. Rules

a. Governance Mechanism of the Board of

Commissioners and Directors.

b. Articles of Association of PT Semen Indonesia

(Persero) Tbk.

c. PT Law No.40/2007.

d. OJK regulations regarding the Board

of Commissioners and the Board of

Commissioners' Organs.

e. BUMN Ministry Regulation Number: Per-01/

MBU/2011 concerning GCG.

f. Board Manual, GCG Guidelines, Corporate

Culture, Code of Ethics.

2. Strategic Documents

a. The Vision of Semen Indonesia and the

Company's Long-Term Plan.

b. RKAP.

c. Board of Commissioners Work Program and

Direction.

d. Meetings (Mechanisms, Schedules, Agenda).

e. Board of Commissioners' Supervisory Report.

f. 2018 Semen Indonesia Financial Report

(audited) for the 2018 Annual Report.

3. Remuneration of the Board of Commissioners

Decree No. 004/SI/Kep.DK/04.2014 concerning

the Remuneration of the Board of Commissioners

of PT Semen Indonesia (Persero) Tbk in 2014.

4. Organizational Structure.

a. Results of the Annual General Meeting of

Shareholders on 22 May 2019.

b. Board of Commissioners, Committee and

Secretariat.

Performance Evaluation of Committees under the Board of Commissioners

In carrying out its functions, duties and responsibilities,

the Board of Commissioners is assisted by

Committees under the Board of Commissioners: the

Audit Committee, the Nomination, Remuneration and

CSR Committee, as well as the Risk Management

and Investment Strategy Committee.

In 2019, the Board of Commissioners considered

that all committees have carried out their duties

and responsibilities well and have provided input

related to their respective fields, which was very

useful for the Board of Commissioners in carrying

out the Company's supervisory function.

170



Independent Commissioner

Independent Commissioner is a member of the

Board of Commissioners that are not affiliated with

the Board of Directors, other member of the Board of

Commissioners, and controlling shareholders. Also

free from business relations or other relations that

may influence its capability to act independently or

act solely for the Company’s interests.

• The mission of Independent Commissioner

is to encourage the creation of an objective

environment and fairness in various interests,

including the Company and stakeholders’

interests as the main principles in decision making

by the Board of Commissioners. Several matters

related to the Independent Commissioner, are as

follows:

• Independent Commissioner has the main

responsibility to encourage the implementation

of good corporate governance principles in the

Company through the Board of Commissioners’

empowerment, so as to achieve effective

implementation of supervisory and advisory

duties to the Board of Directors, and provide

added value to the Company.

• The composition of Independent Commissioner

consists of at least 30% (thirty per hundred) from

the Board of Commissioners’ members.

• In implementing good responsibilities, the

Independent Commissioner pro-actively urges the

Board of Commissioners to carry out supervisory

and advisory to the Board of Directors related to,

but not limited, on the following matters:

PEnsuring of effective corporate business

strategy, including monitoring on schedules,

budgets, and effectiveness of the strategy;

PAssurance on the appointment of professional

executives and managers;

PEnsuring of effective corporate information,

control system, and audit system;

PAssurance of proper identification and

management of risks and risks potential;

PAssurance of proper implementation and

compliance on GCG principles and practices;

PEnsuring of the implementation of corporate

supervisory and management are in

compliance towards all prevailing regulations.

• The Independent Commissioner acts as the

Chairman of the Audit Committee as well as the

Nomination and Remuneration Committee.

Composition and Membership of Independent Commissioners in the Company's Board of Commissioners’ Structure

In accordance with OJK Regulation

No.33/POJK.04/2014, the composition of

Independent Commissioners must be at least 30%

of the total members of the Board of Commissioners.

At the end of 2019, the Company has appointed 2

(two) Independent Commissioners or 30% (thirty

percent) of the total 7 (seven) members of the

Board of Commissioners: Nasaruddin Umar and

Mochamad Choliq. Therefore, the composition

of the Company's Independent Commissioners

is in accordance with the applicable laws and

regulations.

171



Determination Criteria for Independent Commissioners

Statement of Independence of Independent Commissioners

In accordance with POJK 33/2014 concerning the

Board of Directors and Commissioners of Issuers

or Public Companies, it is required that the number

of Independent Commissioners is at least 30%

(thirty percent) of the total members of the Board of

Commissioners.

All Independent Commissioners of Semen Indonesia have made independence statements and declared

their independence status.

OJK’s Independent Criteria Nasaruddin Umar Mochamad Choliq

Not a person who works or has the authority and responsibility to plan,

lead, control, or supervise the activities of the Issuer or Public Company

within the last 6 (six) months.

√ √

Do not own shares, either directly or indirectly, in the Issuer or Public

Company.√ √

Has no affiliation with the Issuer or Company, Public, members of the

Board of Commissioners, members of the Board of Directors, or Major

Shareholders of the Issuer or Public Company.

√ √

Do not have a business relationship, either directly or indirectly, with the

business activities of the Issuer or Public Company. √ √

172



The Board of Directors

The Board of Directors is the Organ of the Company

that carries out the task of managing the Company

in the interests of the Company, in accordance with

the purposes and objectives of the Company, and

representing the Company both inside and outside

the court, with due observance of applicable laws,

Articles of Association and GMS Decisions.

The position of each member of the Board of

Directors, including the President Director, is

equivalent with the President Director coordinating

Based on the Company's Board Manual, there are

general requirements and special requirements that

are applied when selecting members of the Board

of Directors as follows:

General RequirementsGeneral requirements are the basic requirements

set by the applicable laws and regulations, including:

a. Individual;

b. Having good character and morals;

c. Able to carry out legal actions;

d. Never have been declared bankruptby the Court

within 5 (five) years prior to nomination;

e. Has never been a member of the Board of

Directors or The Board of Commissioners who

all activities of the Board of Directors. The Board

of Directors can make decisions, including at the

Board of Directors’ meetings, and carry out these

decisions in accordance with the division of tasks and

authorities, however collegial responsibilities remain

in force. Actions taken by members of the Board of

Directors outside of those decided by the Board of

Directors meetings are the personal responsibility of

the person concerned until the action is approved by

the Board of Directors meeting.

was guilty of causing a company to go bankrupt

within 5 (five) years prior to nomination;

f. Has never been convicted of a criminal offense

detrimental to the country's finances within 5

(five) years prior to nomination as the Board of

Directors' candidate;

g. Shall not have any blood relations up to the third

degree, either in a vertical or horizontal line or in-

laws relations (son-in-law or brother-in-law) with

other members of the Board of Directors and/or

the Board of Commissioners;

h. Shall not hold concurrent positions of the Board

of Directors and the Board of Commissioners in

a similar company, except for the position of the

Board of Commissioners of a subsidiary.

The Board of Directors’ Work Guidelines

Criteria for the Board of Directors

In carrying out the roles and functions of managing

the Company and managing relations with the

Board of Commissioners, the Board of Directors

refers to the Board of Commissioners and the Board

of Directors Work Guidelines (Manual Board). The

Board of Directors’ Charter and Code of Conduct in

the Company’s Manual Board regulates:

1. Functions of the Board of Directors

2. Requirements for the Board of Directors

3. Membership of the Board of Directors

4. Composition and Independence of the Board of

Directors

5. Ethics of the Board of Directors’ Position

6. Duties and Authorities of the Board of Directors

7. Division of Duties of the Board of Directors

8. Decision Making by the Board of Directors

9. Accountability of the Board of Directors

10. Evaluation of the Board of Directors’ Performance

11. Orientation and Capability Improvement Program

for the Board of Directors

173



i. For concurrent positions of the Board of Directors

that are not included in the provisions of point

h above or for exceptions to the provisions

of point h above, approval from the Board

of Commissioners is required, which is then

reported at the General Meeting of Shareholders.

j. Shall not hold concurrent position as an official

in a structural and functional position in a central

and/or regional government agency and/or

military;

k. Shall not hold concurrent position that may cause

conflict of interest, directly or indirectly, with the

Company and or which is in conflict with the

provisions of the applicable laws and regulations;

l. Shall have integrity and morals, and must never

been involved in:

• Engineering deeds and deviant practices in

the management of the previous job prior to

the nomination;

• A breach of contract that can be categorized

as not fulfilling the commitments agreed at

the previous job prior to the nomination;

• Actions that can be categorized as providing

personal benefits to prospective members

of the Board of Directors, employees in the

previous job prior to the nomination;

• Actions that can be categorized as violating

the provisions of the principles of sound

company management;

m. Must have a good character and the ability

to develop business for the progress of the

Company;

n. Must have competence, the ability and experience

in fields that support the implementation of the

duties and obligations of the Board of Directors;

o. Must have good character and morals;

p. Must have a commitment to comply with

applicable laws and regulations;

q. Must not serving as an official of a political party

and/or a candidate/legislative member.

Special Requirements These are requirements tailored to the needs and

nature of the Company's business, including:

a. Adequate and relevant knowledge of the

position;

b. Experienced and have expertise in cement;

c. Able to carry out strategic management to

develop the Company;

d. Understanding of the Company's management

issues related to one of management functions;

e. Dedicated and provides full time to do the work.

f. Able to carry out legal actions and has never

been declared bankrupt or been a member of the

Board of Directors or the Board of Commissioners

guilty of or caused a company to be declared

bankrupt or a person who had been convicted

of a criminal offense detrimental to the country's

finances and/or related to the sector.

Nomination of BOD Members

Policies related to the nomination of the Board

of Directors of Semen Indonesia refer to Ministry

of SOEs Regulation No. PER-03/MBU/02/2015

concerning Requirements, Procedures for

Appointment, and Dismissal of Members of the

Board of Directors of SOEs.

The regulation states that the candidates for the

Board of Directors come from:

1. SOE Directors;

2. SOE Board of Commissioners/Supervisory

Board;

3. SOE talents proposed through the Board of

Commissioners consist of:

• Officials who are one level below the Directors

or officials who have special achievements;

• Directors of SOE subsidiaries/SOE joint

ventures.

4. Ministry of SOEs talents;

5. Other sources consisting of:

• Other SOE officials; and

• Other sources.

The selection is carried out by the Minister, Secretary

of the Minister, Technical Deputy and/or Deputy

looking for prospective candidates by taking into

account the following:

a. Candidates and Talents from SOE, proposed

through the Board of Commissioners/ Supervisory

Board.

b. The Minister, Secretary, Technical Deputy and/or

Deputy may determine prospective candidates

174



List, Total, Composition and Legal Basis of Appointment of Members of the Board of Directors in 2019

In 2019, there was a change and the dismissal

of the members of the Board of Directors, which

was ratified at the Company’s AGMS on 22

May 2019. In the seventh agenda of the AGMS

regarding the change in the composition of the

Board of Directors, the Company honorably

The Board of Directors’s Composition until 22 May 2019:

Name Position Basic Appointment

Hendi Prio Santoso President Director AGM 30 April 2018 - AGM 2023

Doddy Sulasmono Diniawan Director of Finance EGMS 15 September 2017 - AGM 2022

Agung Yunanto Director of HR & Legal AGM 31 March 2017 - AGM 2022

Adi Munandir Director of Marketing & Supply Chain AGM 30 April 2018 - AGM 2023

Fadjar Judisiawan Director of Business Strategy & Development EGMS 15 September 2017 - AGM 2022

Tri Abdisatrijo Director of Engineering & Projects EGMS 15 September 2017 - AGM 2022

Benny Wendry Director of Production EGMS 15 September 2017 - AGM 2022

from SOE talents without the proposal of the

Board of Commissioners/Supervisory Board

if the said person is deemed to have good

achievements.

c. Candidates and the Ministry of SOEs talent,

proposed through the Secretary.

d. Candidates from the Board of Directors, the

Board of Commissioners/ Supervisory Board,

and/or Other Sources may submit applications to

or be proposed directly by the Minister, Secretary,

Technical Deputy and/or Deputy.

e. The selection of prospective candidates takes

precedence over SOE talents.

Especially for Public Listed SOE, prospective

candidates from SOE Talents must be proposed

through the Board of Commissioners. If the Minister

views that there are other candidates who have

the potential to become members of the Board

of Directors, but not included in the list of names

proposed by the Board of Commissioners, the

Minister can ask the Board of Commissioners to

evaluate the person concerned and if they meet the

requirements to be proposed to the Minister.

dismissed Mr. Agung Yunanto from the position

of Director of HR and Legal to be replaced by

Mrs. Tina T Kemala.

The following tables are the composition of the

Board of Directors before and after the 2019 AGMS:

The Board of Directors’s Composition from 22 May 2019 to 31 December 2019

Name Position Basic Appointment

Hendi Prio Santoso President Director AGMS 30 April 2018 - AGMS 2023

Doddy Sulasmono Diniawan Director of Finance EGMS 15 September 2017 - AGMS 2022

Benny Wendry Director of Production EGMS 15 September 2017 - AGMS 2022

Fadjar Judisiawan Director of Business Strategy & Development EGMS 15 September 2017 - AGMS 2022

Tri Abdisatrijo Director of Engineering & Projects EGMS 15 September 2017 - AGMS 2022

Adi Munandir Director of Marketing & Supply Chain AGMS 30 April 2018 - AGMS 2023

Tina T. Kemala Intan Director of HR & Legal AGMS 22 May 2019 - AGMS 2024

175



Concurrent Positions of the Board of Directors

Based on the Articles of Association of the

Company and the Work Guidelines of the Board

of Commissioners and Directors, members of the

Board of Directors are not permitted to concurrently

hold positions in management and supervision of

similar companies, except supervisory positions in

subsidiaries. For concurrent positions of Directors

and exceptions, approval from the Board of

Share Ownership by the Board of Directors

All members of the Company's Board of Directors do not own shares in PT Semen Indonesia (Persero) Tbk.

Purchase/Sale of the Board of Directors' Shares

In accordance with OJK Regulation No. 11/

POJK.04/2017 concerning Reports on Ownership

or Changes in Ownership of Shares of Public

Companies, a share transaction was conducted by

a member of the Company's Board of Directors in

2019. The transaction has been reported to the OJK.

Name Position Transaction

Total

Shares

Before

Transaction

Total

Buying

/Selling

Price

Total

Shares

After

Transaction

Date of

Transaction

Transaction

PurposeReport

Benny

Wendry

Director Share

Selling

3,500

shares

3,500

shares

Rp12,450 0 share 20

September

2019

Private 7

October

2019

Commissioners is required, which is then reported

at the GMS.

All members of the Company's Board of Directors

do not have multiple positions as stipulated in

POJK No. 33/POJK.04/2014 concerning the Board

of Directors and the Board of Commissioners of

Issuers or Public Companies.

176



The Board of Directors' Affiliations

Duties and Authorities

Prohibition of affiliation between members of the

Board of Directors, or the Board of Directors with the

Board of Commissioners, or the Board of Directors

with the Shareholders listed is in accordance with

The duties and authorities of the Board of Directors

include:

1. The Board of Directors are fully responsible

for carrying out their duties for the benefit of

the Company. The main duties of the Board of

Directors are:

• lead and manage the Company in accordance

with the aims and objectives of the Company;

and

• maintain and manage the Company's assets.

2. The Board of Directors is responsible for

formulating and determining the vision, mission

and values of the Company as well as the

Company's Long-Term Plan (RJPP) and Work

Plan and Corporate Budget (RKAP) after being

discussed and approved by the Board of

Commissioners and the GMS.

3. Each member of the Board of Directors is

required, in good faith and full responsibility, to

carry out their duties and act in accordance with

the provisions and provisions in the Articles of

Association, decisions taken at the GMS, Long

Name Position

Financial Affiliations with Familial Affiliations withShare

Ownership

at Semen

IndonesiaBOC BOD Shareholders BOC BOD Shareholders

Yes No Yes No Yes No Yes No Yes No Yes No Yes No

Hendi Prio

Santoso

President

Director

√ √ √ √ √ √ √

Doddy

Sulasmono

Diniawan

Director of

Finance

√ √ √ √ √ √ √

Benny

Wendry

Director of

Production

√ √ √ √ √ √ √

Fadjar

Judisiawan

Director of

Business

Strategy &

Development

√ √ √ √ √ √ √

Tri

Abdisatrijo

Director of

Engineering &

Projects

√ √ √ √ √ √ √

Adi

Munandir

Director of

Marketing &

Supply Chain

√ √ √ √ √ √ √

Tina T.

Kemala

Intan

Director of HR

& Legal

√ √ √ √ √ √ √

the Law Number 40 in 2007 concerning limited

liability companies, aiming to avoid conflicts of

interest so that the Board of Directors would be able

to make decisions without harming the Company.

177



Term Plan (RJP), the Company’s Work Plan and

Budget (RKAP) and the prevailing laws and

regulations based on GCG principles.

4. Related with the Strategy and Work Plan:

a. Prepares the Company's vision, mission, goals,

strategies and culture.

b. Promotes and guarantees the implementation

of business activities of the Company in

accordance with the aims and objectives and

business activities.

c. Prepares the Company's development plans

and the Company's Long-Term Plan on time.

d. Strives to achieve the long-term goals listed in

the RJPP.

e. Prepares the RKAP on time, which is

an elaboration from annual RJPP to be

subsequently submitted to the Board of

Commissioners for approval.

f. Strives to achieve short-term targets listed in

the RKAP.

5. Related to Risk Management:

a. Takes responsibility for the implementation of

risk management in the Company.

b. Develops written and comprehensive risk

management policies and strategies at the

corporate level including the establishment

and approval of overall risk limits of the

Company, per risk type and per business

activity.

c. Develops a risk management culture at all

levels of the organization, including adequate

communication to all levels of the organization

on the importance of effective internal control.

d. Takes responsibility for the overall implementation

of the Company's risk management policies,

including evaluation and provision of direction

for risk management strategies.

e. Ensures improved human resources

competence related to risk management

implementation, such as establishment of

education and training programs on an

ongoing basis, especially those related to risk

management systems and processes.

f. Conducts periodic reviews with frequency

in accordance with the Company's needs to

ensure:

• Accurate risk management methodology.

• Adequate risk management information

system implementation.

• Accurate policies, procedures and

determination of risk limits.

6. Related to Internal control:

a. Establishes and manages internal control

system in order to obtain adequate confidence

in the achievement of operational effectiveness

and efficiency, reliability of financial reports, as

well as compliance to laws and regulations.

b. Establishes an internal audit function or

unit responsible for conducting assurance

and evaluation of internal control system

effectiveness.

c. The internal audit unit or function assists the

Board of Directors to ensure the achievement

of the Company’s objectives and sustainable

activities through evaluation of the Company's

work plan implementation, provides advice and

recommendation to improve the effectiveness

of internal control system implementation,

risk management system, compliance to the

Company’s regulations, GCG principles and

laws and regulations, as well as coordinates

with External Auditors.

d. The head of the internal audit unit is responsible

to the President Director and has a functional

relationship with the Board of Commissioners

through the Audit Committee.

7. Related to Public Relations:

a. Takes responsibility to ensure and maintain

communication between the Company and

Stakeholders through Corporate Secretary

function.

b. The Corporate Secretary is also responsible to

ensures appropriate access of information for

Stakeholders.

c. The Corporate Secretary is responsible and to

report the implementation of his duties to the

Board of Directors.

8. Related to Corporate Social Responsibility:

a. Establishes corporate social responsibility

policies and programs.

b. Ensures that the Company carries out its

social responsibilities consistently and

continuously.

9. The Board of Directors has the right to represent

the Company in and out of the court on all

matters and incidents, to bind the Company to

other parties and other parties with the Company,

and to carry out all actions, both regarding

management and ownership, but with restriction

that in order to take the following actions, the

Board of Directors must first obtain approval from

the Board of Commissioners.

178



a. Receives and/or provides non-operational

medium or long-term and short-term loans in

excess of a certain amount set by the Board of

Commissioners' Meeting;

b. Receives short-term operational loans in

excess of 10% (ten percent) up to 20% (twenty

percent) of the amount determined at the

Board of Commissioners' Meeting;

c. Provides short-term loans in excess of

the amount specified in the Board of

Commissioners' Meeting;

d. Provides and or sells the Company’s shares

on the capital market in the context of utilizing

liquidity that exceeds a certain amount

specified in the Work Plan and Budget of the

Company;

e. Enters agreements or licensing cooperation,

management contracts, leasing assets, Joint

Operations (KSO), Build Operate Transfer

(BOT), Build Own Transfer (BowT), Build

Transfer Operate (BTO) and similar agreements

with business entities or other parties up to a

certain value and/or time period determined

by the Board of Commissioners;

f. Takes part, in part or full, or participate in the

Company and/or other business entity and or

establish a new company conducted through

an exchange with due regard to the provisions

of the applicable laws and regulations;

g. No longer collects and writes off receivables

from records and inventories that exceed a

certain amount specified in the Work Plan and

Corporate Budget;

h. Transfers, releases rights or makes debt

guarantees less or equal to 50% (fifty percent)

of assets in the form of fixed assets of the

Company, whether in one transaction or

several independent transactions or related to

one another;

i. Conducts transaction involving cumulative

deviation of exceeding 10% (ten percent) to

20% (twenty percent) of the budgeted amount

or set aside for:

• Investment included in the capital

expenditure budget;

• Post costs or expenses included in the

operating budget or revenues and expenses

(except financial costs);

• Short-term working capital financing

included in the financial budget;

• All budgets which are included in the Work

Plan and Budget of the Company or any

amendments approved in the fiscal year

concerned;

j. Uses all rights owned by shareholders and/or

majority shareholders in each of the subsidiary

companies operating in the cement industry in

which the Company has equity participation,

except for those matters which are within the

authority of the shareholders and/or majority

shareholders as stipulated in the Articles of

Association;

k. Binds the Company as a guarantor for debts

that have financial consequences exceeding

a certain amount determined at the Board of

Commissioners' Meeting

10. The Board of Directors must obtain approval

from the General Meeting of Shareholders to:

a. Receive short-term operational loans of more

than 20% (twenty percent) of the amount

determined at the Board of Commissioners'

Meeting;

b. Conduct transactions involving cumulative

deviations exceeding 20% (twenty percent)

of the budgeted amount or set aside for:

• Investment included in the capital

expenditure budget;

• Post costs or expenses included in

the operating budget or revenues and

expenses (except financial costs);

• Short-term working capital financing

included in the financial budget;

• All budgets which are included in the

Work Plan and Corporate Budget or

any amendments approved in the fiscal

year concerned. The General Meeting of

Shareholders may determine restrictions

and or other conditions other than those

specified above.

c. Carries out legal actions to transfer, relinquish

rights or make guarantees of debt in whole

or more than 50% (fifty percent) of the

Company's net assets, both in one transaction

or several independent transactions or

related to each other in 1 (one) fiscal year, the

Board of Directors must obtain the approval

of the General Meeting of Shareholders

attended or represented by shareholders

who have at least 3⁄4 (three quarters) of the

total number of shares with valid voting rights

179



and are approved by at least 3⁄4 (three fourth)

part of the total number of valid votes cast at

a Meeting.

If the quorum as referred to above is not

reached, then the second Meeting may be

held after the summons of the Meeting is

held without notification for the invitation

of the Meeting no later than 7 (seven) days

before the second Meeting is held, provided

that the Meeting is attended by shareholders

representing at least 2/3 (two per three) part

of the total number of shares with valid voting

rights and decisions approved by more than

3⁄4 (three-fourths) of the total number of votes

present at the Meeting.

If the quorum as referred to above is not

reached, then at the request of the Company,

the quorum, the number of votes to make

decisions, summons and time for holding

a General Meeting of Shareholders is

determined by the Chief Executive of the

Financial Services Authority (OJK) Capital

Market Supervisory Agency.

11. Members of the Company's Board of Directors

cannot represent the Company both inside and

outside the Court, if:

a. case occurs in Court between the Company

and the member of the Board of Directors

concerned; or

b. the member of the Board of Directors

concerned has a conflict of interest with the

Company.

12. Carries out legal actions in the form of a

transaction that contains conflict of interest

between personal economic interest of

members of the Board of Directors, the Board of

Commissioners or major shareholders with the

economic interest of the Company, the Board

of Directors requires approval from the General

Meeting of Shareholders based on the most

agreed votes from shareholders that do not

have any conflict of interest.

13. In the event that the Company has interests that

conflict with the personal interests of a member

of the Board of Directors, the Company will be

represented by other members of the Board

of Directors and if the Company has interests

that conflict with the interests of all members

of the Board of Directors, the Company will be

represented by the Board of Commissioners,

and in the case of all members of the Board

of Directors. and members of the Board of

Commissioners have a conflict of interest,

the Company will be represented by other

parties appointed by the General Meeting of

Shareholders, without prejudice to the provisions

in item 12 above.

14. The President Director has the right and

authority to act for and on behalf of the Board

of Directors and represent the Company. In the

event that the President Director is absent or is

unable to attend due to any reason, which does

not need to be proven to a third party, the Board

of Directors will be represented by the Deputy

President Director. In the event that the Deputy

President Director is absent or unable to attend

due to any reason, which does not need to be

proven to a third party, the Board of Directors will

be represented by 2 (two) Directors together.

15. Without reducing its responsibility, the Board of

Directors for certain actions also has the right

to appoint one or more as representatives or

proxies on conditions determined by the Board

of Directors in a special power of attorney and

such authority must be carried out in accordance

with the provisions of the Company's Articles of

Association.

180



Responsibilities

Joint and Several Liabilities of the Board of Directors

Duties and Responsibilities of Each Director

1. Arranges and submits the law in a timely

manner in accordance with the applicable laws

and regulations;

2. Establish management and delivery policies in

the corporate environment.

3. Determines and ensures effective

implementation of internal control system,

risk management, corporate governance and

reporting systems (whistleblowing system) in

the Company, both regarding prevention and

action.

In the aspect of prevention:

• The Board of Directors sets together with the

Board of Commissioners, the Company Ethics

Guidelines and Good Corporate Governance

Guidelines.

• The Board of Directors establishes the

Company's standard operating policies,

The Work Division of the Board of Directors of

the Company consists of members who, as a

whole, have competencies in the fields of cement,

marketing, finance, production and management,

The policy taken by the Board of Directors can be

in the form of a policy taken through a board of

directors meeting, or it can also be a policy taken

individually without the said meeting. Actions taken

by members of the Board of Directors outside of

regulations and procedures (SOP),

Governance, Risk & Compliance (GRC)

Guidelines, Internal Control Over Financial

Reporting (ICOFR), and Information

& Communication Technology (ICT)

Governance Guidelines.

In the aspect of prosecution:

• The Board of Directors together with the

Board of Commissioners establishes a

whistleblowing system.

• The Board of Directors establishes policies

regarding Employee Discipline and the

structure of disciplining employees and the

Company’s officials.

4. Establishes the Gratification Control Program

(PPG) and manages gratification within the

Company.

respectively. Each member of the Board of Directors

may carry out and make decisions according to the

division of tasks and authority. However, collegial

responsibilities still apply.

those decided by the Board of Directors Meeting

are the personal responsibility of the person

concerned until the action is approved by the Board

of Directors meeting.

181



New Directors Introduction Program

The introduction program for newly appointed

Board of Directors aims to provide knowledge

about the Company, so they understand their duties

and responsibilities as a Director, the Company's

business processes, and able to work in harmony

with other Company Organs.

The Corporate Secretary as the executor of the

Introductory Recognition Program for newly

appointed The Board of Directors, prepares material

for the introductory program which includes the

Corporate Recognition Program relating to:

1. Introduction of current Commissioners and

Directors

2. Implementation of GCG Principles

3. An overview of the condition of the company

4. Authority and supporting devices

5. Legal responsibility of the Board of Directors

6. Duties and responsibilities of the Board of

Directors

7. Site visit on OpCo and its subsidiaries

In 2019 there was a new member of the Board of

Directors who undertook this program, Mrs. Tina T.

Kemala Intan.

Details of the duties and responsibilities of each member of the Board of Directors are as follows:

President Director Responsible for coordinating other members of the Board of Directors, so that all

activities run according to established vision, mission, business goals, strategies,

policies and work programs. Specifically, the President Director is responsible for

aligning all of the Company's strategic initiatives, coordinating operational tasks in the

area of internal audit, human resources, communication, ensuring compliance with

laws and regulations and coordinating risk management and corporate development.

In addition, they also controls and evaluates the implementation of GCG principles and

ethical standards within the Company in a consistent manner.

Director of Finance Responsible for coordinating, controlling and evaluating operational tasks in finance,

budgeting, accounting, ensuring the provision of funding for the development of the

Company and information technology systems.

Director of Marketing &

Supply Chain

Responsible for sales, distribution and transportation and marketing development.

Director of Production Responsible for coordinating, controlling and evaluating the implementation of

operational tasks in the field of production of raw materials, clinker production, cement

production as well as engineering, work safety, the environment and developing

production process efficiency programs.

Director of Engineering &

Projects

Responsible for coordinating, controlling and evaluating the implementation of

operational tasks in the fields of procurement and inventory management, design,

research and development, as well as maintaining product quality assurance.

Director of Human

Resources & Legal

Responsible for coordinating, controlling and evaluating the implementation of

operational tasks in the field of Human Resources, management of Company’s assets

and corporate compliance with applicable laws and regulations and the application of

risk management in the Company.

Director of Business


Responsible for coordinating, controlling and evaluating the implementation of operational

tasks in the areas of strategy and business development of the Company, managing the

investment capex strategy, developing group energy and securing raw materials.

182



No. Title Position Training Name Old Training Organizer Location

Domestic :

1 All of the

Board of

Directors

The Board of

Directors

Personal Coaching Program 5 April Mahadibya

Nurcahyo

Chakrasana

Jakarta

2 All of the

Board of

Directors

The Board of

Directors

Counseling Program 9 April Mahadibya

Nurcahyo

Chakrasana

Jakarta

3 Fadjar

Judisiawan

Director of

Business Strategy &

Development

Counseling Program 15 July Mahadibya

Nurcahyo

Chakrasana

Tangerang

4 All of the

Board of

Directors

The Board of

Directors

Relaxation Response Program 30 July Mahadibya

Nurcahyo

Chakrasana

Jakarta

5 All of the

Board of

Directors

The Board of

Directors

Asset Counseling Program 2 August Mahadibya

Nurcahyo

Chakrasana

Jakarta

6 Tri

Abdisatrijo

Director of

Engineering &

Projects

Leadership Coaching Program 13 September Mahadibya

Nurcahyo

Chakrasana

Gresik

7 Tina T.

Kemala Intan

Director of HR &

Legal

The Art and Science of

Coaching-ICF Accredited Coach

Batch Program Training 1

19-22

September

Vanaya

PT Douna

Affala

International

Sentul,

Bogor

8 Tina T.

Kemala Intan

Director of HR &

Legal

The Art and Science of

Coaching-ICF Accredited Coach

Batch Program Training 2

26-29

September

Vanaya

PT Douna

Affala

International

Sentul,

Bogor

9 Fadjar

Judisiawan

Director of

Business Strategy &

Development

Leadership Coaching Program 25

September

Mahadibya

Nurcahyo

Chakrasana

Jakarta

10 Benny

Wendry

Director of

Production

Leadership Coaching Program 3 October Mahadibya

Nurcahyo

Chakrasana

Tuban

11 Tri

Abdisatrijo

Director of

Engineering &

Projects

Counseling Program 7 October Mahadibya

Nurcahyo

Chakrasana

Jakarta

12 Benny

Wendry

Director of

Production

Counseling Program 16 October Mahadibya

Nurcahyo

Chakrasana

Jakarta

13 Doddy

Sulasmono

Diniawan

Director of Finance The concept of returning to

nature and digital interventions

as well build community for

sustainable business

24 October Ministry of

SOEs

Cirebon

14 Benny

Wendry

Director of

Production

Leadership Coaching Program 10 December Mahadibya

Nurcahyo

Chakrasana

Tonasa

The Board of Directors’ Training and Development Program

183



No. Title Position Training Name Old Training Organizer Location

Luar Negeri :

1 Hendi Prio

Santoso

President Director JP Morgan 10th Annual Global

Emerging Debt Markets

Corporate Conference

25-28

February

JP Morgan

Securities

Indonesia

Miami

Florida ,

USA

2 Adi

Munandir

Director of Marketing

& Supply Chain

JP Morgan 10th Annual Global

Emerging Debt Markets

Corporate Conference

25-28

February

JP Morgan

Securities

Indonesia

Miami

Florida ,

USA

3 Fadjar

Judisiawan

Director of

Business Strategy &

Development

Asean Global Leadership

Program

25-29 March LSE 2019 AGLP London,

UK

4 Hendi Prio

Santoso

President Director The 22nd Credit Suisse Asian

Investment Conference

25-28 March Credit Suisse Hongkong

5 Adi

Munandir


& Supply Chain

The 22nd Credit Suisse Asian

Investment Conference

25-28 March Credit Suisse Hongkong

6 Adi

Munandir


& Supply Chain

dbAcces Asia Conference 2019 23-24 May dbAcces Singapore

7 Hendi Prio

Santoso

President Director Asia Cement Workshop Amity

Club Producer (ACPAC)

1 - 5 July Asia Cement

Producere

Amity Club

Tokyo &

Kyoto,

Jepang

8 Adi

Munandir


& Supply Chain

Asia Cement Workshop Amity

Club Producer (ACPAC)

1 - 5 July Asia Cement

Producere

Amity Club

Tokyo &

Kyoto,

Jepang

9 Benny

Wendry

Director of

Production

The 8th Annual Modular &

Prefabrication Construction

24-25 July Trueeventus Singapura

10 Tri

Abdisatrijo

Director of

Engineering &

Projects

The 8th Annual Modular &

Prefabrication Construction

24-25 July Trueeventus Singapura

11 Hendi Prio

Santoso

President Director 2019 Indonesian Credit Suisse

Conference

13-16 August Credit Suisse Singapura

12 Adi

Munandir


& Supply Chain

2019 Indonesian Credit Suisse

Conference

13-16 August Credit Suisse Singapura

13 Hendi Prio

Santoso

President Director World Cement Association

Conference - Innovation for

Industrial Sustainability

9-12

September

World Cement

Association

Shanghai,

China

14 Adi

Munandir


& Supply Chain

World Cement Association



9-12

September

World Cement

Association

Shanghai,

China

15 Benny

Wendry

Director of

Production



9-12

September

World Cement

Association

Shanghai,

China

16 Fadjar

Judisiawan

Director of

Business Strategy &

Development




9-14

September

World Cement

Association

Shanghai,

China

17 Tina T.

Kemala Intan

Director of HR &

Legal

MIT Technology Review 31 Oct - 3

November

IBM Asia Pasific Singapura

184



Performance Assessment of The Board

The performance of the Board of Commissioners is

evaluated annually by the Shareholders at the General

Meeting of Shareholders. In general, the performance

of the Board of Commissioners is determined based

on the duties stated in the prevailing laws and

regulations and the Articles of Association and the

mandate of the Shareholders. Formal evaluation

criteria are openly communicated to the Board of

Commissioners since their appointment. The results

of the evaluation of the overall performance of the

Board of Commissioners and the performance

of each member of the Board of Commissioners

individually will form an inseparable part in the

compensation scheme and the provision of incentives

for the Board of Commissioners. The results of the

performance evaluation of each member of the

Board of Commissioners individually is one of the

basic considerations for Shareholders to terminate

and/or reappoint the relevant member of the Board

of Commissioners. The results of the performance

evaluation of the Board of Commissioners both as

a Board and individuals are a means of evaluating

and increasing the effectiveness of the Board of

Commissioners.

Procedure for Implementing Performance Assessment of the Board of CommissionersThe performance of the Board of Commissioners

is reported to Shareholders through the GMS

based on the Board Manual and Work Plan (Renja)

of the Board of Commissioners and Supporting

Organs of the Board of Commissioners, which at

the beginning of each year is signed by the entire

Board of Commissioners of the Company. This Renja

contains the Board of Commissioners' performance

targets.

Performance Evaluation Criteria for the Board of CommissionersThe General Meeting of Shareholders determines

the performance criteria of the Board of

Commissioners and individual members of the

Board of Commissioners. The evaluation criteria

for the individual performance of the Board of

Commissioners include:

1. The level of attendance at the Board of

Commissioners' Meeting and meetings with the

existing committees.

2. His contribution to the Company's supervision

process.

3. His involvement in certain assignments.

4. Its commitment in advancing the interests of the

Company.

5. Compliance with applicable laws and regulations

and Company policies.

The party conducting the assessmentThe party that evaluates the performance of the

Board of Commissioners is the Shareholders at

the GMS, however, the Board of Commissioners

can also carry out a performance Self-Assessment

conducted independently in an effort to carry out an

internal evaluation of the Board of Commissioners

regarding the effectiveness of the implementation

of the functions and duties of the Board of

Commissioners

Performance Evaluation of the Board of Commissioners by the GMS

Performance Appraisal Based on Board Aspect GCG Assessment of The Board of Commissioners and The Board of Directors

Performance Evaluation of the Board of

Commissioners using the Self Assessment method

refers to Ministry of SOEs Regulation Number: PER-

09/MBU/2012 dated 6 July 2012 concerning the

Implementation of Good Corporate Governance

in SOEs and the Decree of the Secretary of the

185



Ministry of SOEs Number: SK-16/S.MBU/2012 dated

6 June 2012 concerning Indicators/Evaluation and

Evaluation Parameters for the Implementation of

Good Corporate Governance in SOEs.

Procedure for Implementing Performance Assessment of the Board of CommissionersDuring his tenure, members of the Board of

Commissioners will be evaluated for their

performance. The assessment was carried out

through several stages, including: submission of

the required documents, filling out questionnaires

by the Board of Commissioners and the Board

of Directors, interviews, analysis by assessors

of PT Sinergi Daya Prima (SDP) on documents,

questionnaires, interviews and observations

conducted, presentation of preliminary results by

SDP, and reporting by SDP regarding the results

of achievements and recommendations on the

performance of the Board of Commissioners.

Performance Evaluation Criteria for the Board of CommissionersThe Board of Commissioners assessment criteria

include:

1. Implementation of the Board of Commissioners'

training/learning program;

2. The division of tasks and determination of the

factors needed to support the implementation of

the duties of the Board of Commissioners;

3. Granting approval for the RJPP and RKAP draft

submitted by the Board of Directors;

4. Providing direction to the Board of Directors on the

implementation of company plans and policies;

5. Implementation of supervision of the Board of

Directors on the implementation of company

plans and policies;

6. Implementation of supervision of the

implementation management policies of

subsidiaries/joint ventures;

7. Role in nominating members of the Board of

Directors, evaluating the performance of the

Board of Directors (individual and collegial) and

proposing a bonus/incentive for the Board of

Directors' performance;

8. Implement actions on potential conflicts of

interest concerning the Board of Commissioners;

9. Monitoring the application of the principles of

Good Corporate Governance;

10. Organizing meetings of the Board of Commissioners

and their level of attendance at these meetings;

11. Is there Board of Commissioners 'Secretary

who supports the Board of Commissioners'

secretarial duties;

12. Is there Effective Board of Commissioners

Committee.

The party conducting the assessment The Board of Commissioners' GCG Self Assessment

was carried out in 2019 by PT Sinergi Daya Prima.

The results of the evaluation of the overall

performance of the Board of Directors and the

performance of each member of the Board of

Directors are a means of evaluating and increasing

the effectiveness of the Board of Directors as

well as being an inseparable part in providing

compensation schemes for the Board of Directors.

The overall results of the performance evaluation of

each member of the Board of Directors is one of the

basic considerations for Shareholders to dismiss

and/or reappoint the relevant member of the Board

of Directors after receiving recommendations and

reports from the Board of Commissioners.

Procedure for Implementing Performance Assessment The Board of DirectorsThe performance of the Board of Directors is

reported by the Board of Commissioners to

Shareholders through the GMS.

The Board of Directors Performance Evaluation CriteriaCriteria for evaluating the performance of individual

members of the Company's Board of Directors as

listed in the Board Manual include:

1. The performance of the Board of Directors

collectively on the achievement of the Company

in accordance with the criteria set by the Board

of Commissioners;

Penilaian Kinerja Direksi oleh RUPS

186



Performance Assessment of the Board of Directors

by self-assessment method refers to Ministry of

SOEs Regulation No. PER-09/MBU/2012 dated 6

July 2012 concerning the Implementation of Good

Corporate Governance in SOEs and Decree of the

Ministry of SOEs No. SK-16/S. MBU/2012 dated 6

June 2012 concerning Indicators/Evaluation and

Evaluation Parameters for the Implementation of

Good Corporate Governance in SOEs.

Procedure for Implementing Performance Assessment The Board of DirectorsImplementation The assessment was carried out

through several stages, including: submission of

required documents, filling out questionnaires

by the Board of Commissioners and he Board

of Directors, interviews, analysis by assessors

of PT Sinergi Daya Prima (SDP) on documents,

questionnaires, interviews and observations

conducted, presentation of preliminary results by

SDP, and reporting by SDP regarding the results

of achievements and recommendations on the

performance of the Board of Directors.

The Board of Directors Performance Evaluation CriteriaThe criteria used in evaluating the performance of

the Board of Directors including:

1. Implementation of the Board of Directors'

training/learning program.

2. Division task/function, authority and clear

responsibilities of the Board of Directors.

3. Company planning.

4. Meeting the Company's target performance.

5. Implementation of operational and financial

controls over the implementation of company

plans and policies.

6. Implementation of the management of the

Company in accordance with the prevailing laws

and regulations and the Articles of Association.

7. Implementation of value-added relationships for

the Company and stakeholders.

8. Monitor and manage the potential conflict of

interests of members of the Board of Directors

and management under the Board of Directors.

9. Implementation of information and communication

disclosure, as well as timely delivery of information

to the Board of Commissioners and Shareholders.

10. Organizing the Board of Directors’ meetings

and attendance at the Board of Commissioners

meetings.

11. Implementation of quality and effective internal

supervision.

12. Implementation of a quality and effective

Corporate Secretary function.

13. The holding of the Annual General Meeting

and other General Meeting of Shareholders in

accordance with statutory regulations.

The party conducting the assessment Implementation of GCG Self Assessment for the

Board of DirectorsIn 2019, it was implemented by

PT Sinergi Daya Prima in accordance with Ministry

of SOEs Regulation No. PER-01/MBU/2011 dated

1 August 2011 concerning the Implementation of

Good Corporate Governance in SOEs and their

amendments to the Ministry of SOEs Regulation No.

PER-09/MBU/2012 dated 6 July 2012.

Performance Evaluation of the Board of Directors with the GCG Self Assessment Method

2. Achievement of the Director's performance

individually refers to the KPI approved by the

Board of Commissioners;

3. Implementation of GCG principles both

individually and collegially

The party conducting the assessmentThe party evaluating the performance of the Board

of Directors is the Board of Commissioners as the

supervisor and advisor as well as the Shareholders

in the GMS based on the obligations stated in the

prevailing legislation.

The Board of Directors Performance Assessment ResultsThroughout 2019, the Board of Directors has carried

out the management of the Company. The Board of

Directors in good faith and full responsibility have

carried out all the mandated tasks, managing the

Company's business and affairs while still taking

into account the interests of the Company and the

balance of interests of all parties concerned with

the Company's activities.

187



Policy on Diversity of the Board of Commissioners and Directors

In accordance with the recommendation of the

Financial Services Authority as set forth in the

Appendix of the Financial Services Authority

Circular No. 32/SEOJK.04/2015 concerning

Guidelines for Public Company Governance stated

that the composition of the members of the Board

of Commissioners and the Board of Directors pay

attention to the diversity of the composition of

the members of the Board of Commissioners. The

diversity of the composition of the members of the

Board of Commissioners and the Board of Directors

is a combination of the desired characteristics both

in terms of organs of the Board of Commissioners

and the Board of Directors as well as members of the


individually, in accordance with the needs of the

Public Company. The combination is determined

by paying attention to expertise, knowledge and

appropriate experience in the distribution of duties

and functions of the Board of Commissioners and

the Board of Directors in achieving the objectives

of the Public Company. Therefore, consideration of

the combination of characteristics referred to will

have an impact on the accuracy of the nomination

process and the appointment of individual members

of the Board of Commissioners and the Board of

Directors or the Board of Commissioners and the

Board of Directors collegially.

In 2019, the diversity of the composition of the


reflected in education, work experience, age and

gender, can be seen as in the table below:

Name Position Age Sex Education Work Experience Expertise

Dewan Komisaris

Soekarwo President

Commissioner

69

years

old

Male • Doctorate degree from

the Diponegoro University,

Semarang

• Master degree in Law from

the University of Surabaya,

Surabaya

• Bachelor degree in Law from

the Airlangga University,

Surabaya

• Governor of East Java Province

(2015-2019)

• Governor of East Java Province

(2009-2014)

• President Commissioner of Bank

Jatim (2005-2009)

Strategy,

Management

and

Bureaucracy

Nasaruddin

Umar

Commissioner

Independent

60

years

old

Male • Doctorate degree from the

Syarif Hidayatullah State Islamic

University, Jakarta (1999)

• Master degree from the Syarif

Hidayatullah State Islamic

University, Jakarta (1992)

• Bachelor degree in Sharia

from the Alauddin Islamic State

University, Ujung Pandang

(1984)

• Vice Minister of Religious Affairs

(2012-2014)

• Director General of Islamic

Community Guidance of the

Ministry of Religious Affairs

(2006-2012)

Bureaucracy,

Religion and

ethics

Mochamad

Choliq

Commissioner

Independent

67

years

old

Male • Master degree in Management

from the Prasetiya Mulya

Business School, Jakarta (1997)

• Bachelor degree in Engineering

from the Sepuluh Nopember

Institute of Technology,

Surabaya (1979)

• President Director of PT Waskita

Karya (2008-2018)

• Director of PT Adhi Karya (2001-

2006)

Business

Management

Construction

Industry

188



Name Position Age Sex Education Work Experience Expertise

Sony

Subrata

Commissioner 54

years

old

Male Bachelor of Commerce in

Marketing from The University

of New South Wales, Sydney,

Australia (1988)

• Independent Commissioner of

PT Ciputra Surya Tbk (1999-2003)

• Chairman of the Bangsa

Foundation (1997-1999)

• President Director of

PT Adiriasindo (1995)

Business

Management

and

Marketing

Astera

Primanto

Bhakti

Commissioner 52

years

old

Male • Master degree in Taxation

from the University of Denver,

Denver, USA (1997)

• Bachelor of Economics

in Management from the

Jenderal Soedirman University,

Purwokerto (1990)

• Head of Financial Education and

Training Agency of the Ministry of

Finance (2017-June 2018)

• Advisor of the Minister of Finance

for State Revenue Policy Sector

(2015-2017)

• Advisor of the Minister of Finance

for State Revenue Sector (2015)

• Head of the Center of State

Revenue Policy - Fiscal Policy

Agency (2012-2015)

Fiscal

Finance and

Economy

Hendrika

Nora Osloi

Sinaga

Commissioner 49

years

old

Female • Master degree in Management

from the Post-Graduate

Program of the Faculty of

Economics of the University of

Indonesia, Depok (2003)

• Bachelor degree in Chemical

Engineering from the Faculty

of Industrial Technology of

the Bandung Institute of

Technology, Bandung (1994)

• Commissioner of PT Perusahaan

Gas Negara (Persero) Tbk (2016-

2018)

• Commissioner of PT Perusahaan

Pengelola Aset (Persero) (2014-

2016)

• Commissioner of PT BTDC

(Persero) (2011-2014)

• Commissioner of PT Timah

Investasi Mineral (2008-2011)

• Commissioners of PT Batubara

Bukit Kendi (1999-2008)

Business

Management

Lydia

Silvanna

Djaman

Commissioner 51

years

old

Female • Master degree in Law from the

Law School of University of

Technology, Sydney, Australia

(1998)

• Bachelor degree in Law from

the Sebelas Maret University,

Solo (1992)

• Assistant to Deputy of Law for

Economic Affairs Sector

• Deputy of Law and Legislation of

the Ministry of State Secretariat

(2012-2018)

• Advisor of the Minister of State

Secretariat for Law and Human

Rights Sector (July-October 2012)

Law

Name Position Age Sex Education Work Experience

Direksi

Hendi Prio

Santoso

President

Director

52

years

old

Male • Bachelor of Business

Administration (BBA) in

Finance and Economics

(double majors) from the

University of Houston,

Texas, USA (1990)

• Master degree in

Economics from the

Department of Economics

of the University of Texas,

Texas, USA (1988)

• President Director of PT Perusahaan Gas Negara

(Persero) Tbk (2008-4 May 2017)

• Finance Director of PT Perusahaan Gas Negara

(Persero) Tbk (2007-2008)

• Investment Banking Director of PT JP Morgan

Securities Indonesia (2001-2007)

189



Name Position Age Sex Education Work Experience

Doddy

Sulasmono

Diniawan

Director of

Finance

52

years

old

Male • Master degree in Financial

Management from the

Padjadjaran University,

Bandung (2005)

• Bachelor degree

in Economics and

Management from the

Parahyangan Catholic

University, Bandung

(1990)

• Finance & HR Director of PT Engineering Industries

(April 2016-2017)

• Executive Vice President-CEO for Jakarta Kota

Regional Office of PT Bank Negara Indonesia

(Persero) Tbk (January-March 2016)

• Executive Vice President-Division Head of Corporate

Business Risk of PT Bank Negara Indonesia (Persero)

Tbk (June-December 2015)

Benny

Wendry

Director of

Production

50

years

old

Male • Master degree in

Management from the

Gadjah Mada University,

Yogyakarta (2001).

• Bachelor degree in

Chemical Engineering

from the Bandung


Bandung (1994)

• President Director of PT Semen Padang (November

2014-2017)

• Finance Director of PT Semen Padang (July

2014-October 2014)

• Commercial Director of PT Semen Padang (June 2011-

2014)

Fadjar

Judisiawan

Director of

Business

Strategy and

Development

48

years

old


Management from the

Gadjah Mada University,

Yogyakarta (2002)


Engineering from the

Sepuluh Nopember


Surabaya (1995)

• Acting Deputy of Construction Business and

Transportation Infrastructure and Facilities Sector of

the Ministry of SOEs (2017)

• Assistant to Deputy of Construction Business and

Transportation Infrastructure and Facilities Sector of

the Ministry of SOEs (2015-2017)

• Assistant to Deputy of Construction Services Business

Sector of the Ministry for SOEs (2014-2015)

• Assistant to Deputy of Research and Information

Sector of the Ministry of SOEs (2013-2014)

Tri

Abdisatrijo

Director of

Engineering &

Projects

52

years

old

Male • Bachelor degree of

Chemical Engineering

from the Sepuluh

Nopember Institute of

Technology, Surabaya,

1992.

• Commercial Director of PT Semen Tonasa (August

2014- 2017)

• General Manager of Energy, Materials and

Environment of PT Semen Indonesia (Persero) Tbk

(2014)

• General Manager of OOTC Project Specialist of PT

Semen Indonesia (Persero) Tbk (2013-2014)

• General Manager of Technical Planning of PT Semen

Tonasa (2012-2013)

Adi

Munandir

Director of

Marketing &

Supply Chain

38

years

old


Management Science

from the University of



Electrical Engineering

from the University of


• Group Head of Marketing of PT Perusahaan Gas

Negara (Persero) Tbk (2016-2018)

• Commissioner of PT Nusantara Energy Solutions

(2017-2018)

• Head of Strategic Management Division of PT

Perusahaan Gas Negara (Persero) Tbk (2015-2016)

• Executive Officer – Strategic Management Office of

PT Perusahaan Gas Negara (Persero) Tbk (2013-2015)

Tina T.

Kemala

Intan

Director of HR

& Legal

60

years

old

Female • Bachelor degree in

Psychology from the

Padjadjaran University,

Bandung (1985)

• Director of Human Resources, General Affairs and IT

PT Angkasa Pura II(2017-2019)

• HR Expert, GIZ (2015-2016)

190



Policy on Remuneration of the Board of Commissioners and Directors

In granting remuneration for the Board of

Commissioners and the Board of Directors, Semen

Indonesia puts forward the principle of prudence and

refers to the applicable laws and regulations. Semen

Indonesia refers to the Ministry of SOEs Regulation

No. PER-04/MBU/2014 concerning Guidelines for

Determining the Income of the Board of Directors, the

Proposal and Determination Procedure

The amount of remuneration for members of the

Board of Commissioners is to be determined in the

AGMS along with the remuneration for the Board of

Directors. The amount of remuneration for the Board

of Commissioners members is to be proposed during

AGMS, based on the performance of the Board

of Commissioners according to the assessment

results and recommendations of the Nomination and

Remuneration Committee (NRC).

In compiling the basis for establishing and

recommending credible remuneration amounts, the

NRC commissions an independent consultant. Having

solid market survey database of companies with similar

business and the size and taking into consideration

NRC directives, independent consultants set up

several key factors in proposing the amount of

Commissioners’ remuneration.

The Board of Commissioners receives a fixed, variable

remuneration consisting of honorarium, allowances,

and other benefits paid/given monthly, and bonuses

as annual performance incentives, the amount

recommended by the Nomination and Remuneration

Committee, and decided by the shareholders in the

AGMS.

NRC

GMS

-

BOC

• Stipulating inputs of Independent Consultant in determining the remuneration basic stipulation

• Inputs from Independent Consultant based on:

- SOE Ministry Regulation No. PER-04/MBU/2014 dated March 10, 2014

- SOE Ministry Regulation No. PER-02/MBU/06/2016 dated June 20. 2016

- Remuneration survey of peers industry

- Success in risk mitigation

- The Company’s capability, competence and experience

• Propose the Remuneration basic and amount to the Board of Commissioners (BOC)

• Honorarium and tantiem for the Board of Commissioners and the Board of Directors

• Discuss the NRC recommendation and propose the remuneration amount to the GMS

• Delegating the stipulation on honorarium and tantiem implementation to the Board of GMS

Commissioners following the approval of Shareholders Series A.

NRC

Board of Commissioners, and the Supervisory Board

of SOEs as last amended by the Ministry of SOEs

Regulation No. PER-01/MBU/05/2019 concerning the

Fourth Amendment to Ministry of SOEs Regulation

concerning Guidelines for Determining the Income of

the Board of Directors, the Board of Commissioners,

and Supervisory Board of SOEs.

191



Remuneration Structure

Indicator of Remuneration Determination

The remuneration of Commissioner can be different

in line with the duty and responsibility of each

Commissioner. Total remunerations received by the

Board of Commissioners’ members are reported

to the GMS. The amount of tantiem provided

to the Board of Commissioners and Directors’

members are stipulated based on the Company’s

performance and KPI achievements of the Board of

Commissioners and Directors.

The remuneration stipulation refers to the

Regulation of SOE State Minister No. PER-

04/MBU/2014 concerning the Guidelines of

Remuneration Stipulation of the Board of Directors,

Board of Commissioners, and Supervisory Board

of SOE and Regulation of SOE State Minister No.

PER-02/MBU/06/2016 dated 20 June 2016 on

changes in the Regulation of SOE State Minister

In determining the remuneration indicators for the

Board of Commissioners, Semen Indonesia refers

to the Ministry of SOEs Regulation No. PER-04/

MBU/2014 as amended by the Ministry of SOEs

Regulation No. PER-06/MBU/06/2018 concerning

guidelines for determining the income of the Board

of Directors, the Board of Commissioners, and the

Supervisory Board of SOEs as follows:

1. Business scale factor

2. Business complexity factor

3. Inflation rate

4. The financial condition and capability of the

Company

5. Other relevant factors, and may not conflict with

statutory regulations

No. PER-04/MBU/2014 concerning the Guidelines of

Remuneration Stipulation of the Board of Directors,

Board of Commissioners, and Supervisory Board

of SOE Based on this Regulation, the principles

of remuneration stipulation of the Board of

Commissioners is set out by the GMS, with the

following components:

a. Salary/Honorarium;

b. Allowances;

c. Facilities; and

d. Tantiem/Performance Incentives.

The remuneration given to each member of the

Board of Commissioners shall be conducted

based on decision of the Annual General Meeting

of Shareholders and the Extraordinary General

Meeting of Shareholders of the fiscal year 2017.

Remuneration for the Board of Commissioners

and the Board of Directors refers to the following

indicators:

1. Remuneration is granted in the event that the

Company earns profit in the relevant fiscal year;

2. Remuneration is granted with reference to the

development of the construction industry market;

3. Remuneration is granted through measurement

results of the performance of the Board of

Commissioners and the Board of Directors in

accordance with their duties and responsibilities;

4. Financial performance and achievement of the

Company's Key Performance Indicators (KPI);

5. Individual work performance;

6. Fairness with other company peers;

7. The amount of remuneration received is:

a. President Commissioner, 45% of the

remuneration of the President Director.

b. Member of the Board of

Commissioners, 90% from remuneration of

the President Commissioner.

c. President Director, 100%.

d. Members of the Board of Directors, 85% of

the President Director.

192



Nominal/Remuneration Component for the Board of Commissioners and the Board of Directors

In 2019, the remuneration of each Board of Commissioners and Directors that have been realized in more detail

can be submitted, as follows:

Meetings of the Board of Commissioners and Directors

Throughout 2019, Semen Indonesia’s Board of Commissioners held 12 (twelve) internal meetings of the Board of

Commissioners. The agenda and level of attendance of the Board of Commissioners in the meetings are as follows:

The Board of Commissioners Meeting

No Date of Meeting Meeting AgendaThe Board of

CommissionersCommittee Members

1 24 January 2019 a. Company Performance Evaluation &

Capex of December 2018

b. and others.

• Sutiyoso

• Mochamad Choliq

• Wahyu Hidayat

• Sony Subrata

• Hendrika Nora Osloi

Sinaga

• Elok Tresnaningsih

• MZ. Abidin

• Syafrizal

• Irham Dilmy

• Ninda E. Djohaeri

*) including the Board of Commissioners and the Board of Directors whose term of office expires on 22 May 2019**) including the Board of Commissioners and the Board of Directors who took office in 2018

No Type of Income/Facilities

The Board of Commissioners The Board of Directors

Total Persons

Rp (million)Total

PersonsRp (million)

1 Salary/ Honorarium* 9 8.986 8 19.188Transportation Benefits* 9 1.797 - -Housing Allowance* - - 8 2.338Holiday Allowance* 9 971 8 1.833Tantiem** 9 24.053 8 50.947

2 Other facilities in the form natura

Housing (cannot be owned)

Transportation (cannot be owned)

Full Service Insurance (cannot be owned)* 9 2.260 7 4.148Health Insurance (cannot be owned)

Amount of Remuneration Number of the Board of Commissioners Number of the Board of Directors

Above Rp2 billion 7* 9 (* and **)

Above Rp1 billion - Rp2 billion 4** -

Above Rp300 million - Rp1 billion - -

Rp300 million and below - -

193





2 22 February 2019 a. Performance Evaluation & Capex The

Company as of January 2019;

b. and others.

• Sutiyoso

• Nasaruddin Umar

• Mochamad Choliq

• Wahyu Hidayat

• Sony Subrata


• MZ. Abidin

• Syafrizal

• Irham Dilmy


3 19 March 2019 a. Company Performance Evaluation &

Capex of February 2019;

b. Inviting the Board of Directors &

Consultants (Korn Fery)

c. Preparation of the GMS of PT Semen

Indonesia (Persero) Tbk (discussion of

KPI achievements and the Company’s

2018 Proposed Remuneration);

d. and others.

• Sutiyoso

• Mochamad Choliq

• Wahyu Hidayat

• Sony Subrata

• Astera Primanto Bhakti


Sinaga


• MZ. Abidin

• Syafrizal

• Irham Dilmy


4 29 April 2019 a. Company Performance Evaluation &

Capex of Q1 2019;

b. BOC invites HR Director and SBPU

Director concerning Letter of the

Board of Directors No. 3601 on

Proposal for Amendment Approval

for the Composition of the Board

of Commissioners & the Board of

Directors of Subsidiaries

• Sutiyoso

• Nasaruddin Umar

• Mochamad Choliq

• Wahyu Hidayat



Sinaga


• MZ. Abidin

• Syafrizal

• Fritz Bonar

Panggabean

• Dedi Kusnendar

• Irham Dilmy


Director:

• HR Director

• SBPU Director

5 17 May 2019 a. Performance Evaluation & Capex The

Company in April 2019;

b. and others

• Sutiyoso

• Mochamad Choliq

• Wahyu Hidayat

• Sony Subrata



Sinaga


• MZ. Abidin

• Fritz Bonar

Panggabean

• Dedi Kusnendar

• Irham Dilmy


6 26 June 2019 a. Commissioner Introduction New

Program set in GMS of 22 May 2019;

b. Company Performance Evaluation &

Capex of May 2019 (Highlights);

c. Establishment of Committees

of Environment of the Board of

Commissioners;

d. The Board of Commissioners'

Approval for the Head of Internal

Audit;

e. and others.

• Soekarwo

• Nasaruddin Umar

• Mochamad Choliq

• Sony Subrata


Sinaga


• MZ. Abidin

• Fritz Bonar

Panggabean

• Dedi Kusnendar

• Irham Dilmy

• Edi Eko Cahyono


194





7 18 July 2019 a. Company Performance Evaluation &

Capex of the 1st Semester of 2019;

b. and others.

• Soekarwo

• Mochamad Choliq

• Sony Subrata



Sinaga

• Lydia Silvanna Djaman


• MZ. Abidin

• Agus Waluyo

• Dedi Kusnendar

• Irham Dilmy

• Edi Eko Cahyono


8 21 August 2019 a. Follow-Up of Last Month's Meeting;


Capex of July 2019.

c. and others

• Nasaruddin Umar

• Mochamad Choliq


Sinaga



• MZ. Abidin

• Fritz Bonar

Panggabean

• Dedi Kusnendar

• Irham Dilmy

• Edi Eko Cahyono

9 18 September 2019 a. Follow-Up of Last Month's Meeting;


Capex of August 2019;

c. and others

• Soekarwo

• Nasaruddin Umar

• Mochamad Choliq

• Sony Subrata


Sinaga


• MZ. Abidin

• Fritz Bonar

Panggabean

• Agus Waluyo

• Dedi Kusnendar

• Edi Eko Cahyono

10 28 October 2019 a. Follow-Up of Last Month's Meeting;


Capex of September 2019 (Q3-2019),

including Financial Statements of the

3rd Quarter of 2019;

c. Discussion on BOC’s 2020 Work Plan

& Budget Draft;

d. Monitoring of Audit Results Follow-Up

(Internal/External);

e. Monitoring of GCG Assessment

Follow-Up;

f. and others

• Soekarwo

• Mochamad Choliq

• Sony Subrata



Sinaga



• MZ. Abidin

• Fritz Bonar

Panggabean

• Agus Waluyo

• Dedi Kusnendar

• Edi Eko Cahyono

11 19 November 2019 a. Follow Up to Last Month's Meeting;

b. Performance Evaluation & The

Company’s Capex of October 2019;

c. Discussion on BOC’s 2020 Work Plan

& Budget Draft;

d. Monitoring BOC Pending Matters;

e. Monitoring of GCG Assessment

Follow-Up;

f. and others

• Soekarwo

• Nasaruddin Umar

• Mochamad Choliq

• Sony Subrata



Sinaga


Committee:


• MZ. Abidin

• Fritz Bonar

Panggabean

• Agus Waluyo

• Dedi Kusnendar

• Edi Eko Cahyono

12 11 December 2019 a. Company Performance Evaluation &

Capex of November 2019 (Highlights);

b. BOC GCG Evaluation Briefing;

c. Evaluation of Proposed RKAP of

2020;

d. and others.

• Soekarwo

• Nasaruddin Umar

• Mochamad Choliq


Sinaga

Committee:


• MZ. Abidin

• Agus Waluyo

• Dedi Kusnendar

• Edi Eko Cahyono

195



The Board of Commissioners and the Board of

Directors are the Company’s organs that are

equal before the law. A good working relationship

between the Board of Commissioners and the Board

of Directors is one of the most important things so

that each of these organs can work according to

their respective functions effectively and efficiently.

• The Board of Directors meeting that invites the

Board of Commissioners and or other parties are

held at least twice a year (semester) and annual

and is based on the principles of GCG such as

Transparency, Accountability, Responsibility,

Independence and Fairness (TARIK).

• The Board of Directors can invite the Board of

Commissioners or one of the members of the

Board of Commissioners to explain, provide

input, or discuss a problem as material for the

Board of Directors to carry out its functions.

Joint Meeting



1 24 January 2019 a. Company Performance Evaluation &

Capex of December 2018

b. Progess for Integration Management

Office (IMO);

c. Cost Leadership (Supply chain, Energy,

Logistics and Auxiliary Raw Materials);

d. and others

• Sutiyoso

• Mochamad Choliq

• Wahyu Hidayat


Sinaga

• Sony Subrata

• Hendi Prio Santoso

• Fadjar Judisiawan

• Doddy Sulasmono

Diniawan

• Benny Wendry

• Agung Yunanto

• Tri Abdisatrijo

• Adi Munandir

2 22 February 2019 a. Company Performance Evaluation &

Capex of January 2019;


Office (IMO);



d. and others

• Sutiyoso

• Nasaruddin Umar

• Mochamad Choliq

• Wahyu Hidayat

• Sony Subrata



• Benny Wendry

• Agung Yunanto

• Tri Abdisatrijo

• Adi Munandir

3 19 March 2019 a. Company Performance Evaluation &

Capex of February 2019;


Office (IMO);



d. Preparation for PT Semen Indonesia’s

GMS (Persero) Tbk;

e. and others

• Sutiyoso

• Mochamad Choliq

• Wahyu Hidayat

• Sony Subrata

• Astera Primanto

Bhakti


Sinaga



• Doddy Sulasmono

Diniawan

• Benny Wendry

• Tri Abdisatrijo

4 29 April 2019 a. Company Performance Evaluation &

Capex of Q1 (1st Quarter) of 2019.


Office (IMO) & Cost Leadership;

c. Preparation of PT Semen Indonesia’s

GMS (Persero) Tbk;

d. PUB Bonds phase 2

e. and others

• Sutiyoso

• Nasaruddin Umar

• Mochamad Choliq

• Wahyu Hidayat

• Astera Primanto

Bhakti


Sinaga


• Doddy Sulasmono

Diniawan

• Benny Wendry

• Agung Yunanto

• Tri Abdisatrijo

• Adi Munandir

196





5 17 May 2019 a. Company Performance Evaluation &

Capex of April 2019 (Highlights);



c. Explanation of GMS Agenda for

Dividends;

d. GMS rehearsal of PT Semen Indonesia

(Persero) Tbk;

e. and others.

• Sutiyoso

• Mochamad Choliq

• Wahyu Hidayat

• Sony Subrata

• Astera Primanto

Bhakti


Sinaga


• Doddy Sulasmono

Diniawan

• Benny Wendry

• Agung Yunanto

• Tri Abdisatrijo

• Adi Munandir

6 26 June 2019 a. New Board of Directors &

Commissioners Recognition Program

established at AGM in 2 May 2019

(presentation on PT Semen Indonesia

(Persero) Tbk by the Board of Directors;


Capex of May 2019 (Highlights);

c. Progess for Integration Management


d. and others.

• Soekarwo

• Nasaruddin Umar

• Mochamad Choliq

• Sony Subrata


Sinaga



• Doddy Sulasmono

Diniawan

• Benny Wendry

• Tri Abdisatrijo

• Adi Munandir

• Tina T. Kemala Intan

7 18 July 2019 a. Company Performance Evaluation &

Capex of the 1st Semester of 2019;



c. and others.

• Soekarwo

• Mochamad Choliq

• Sony Subrata

• Astera Primanto

Bhakti


Sinaga

• Lydia Silvanna

Djaman



• Doddy Sulasmono

Diniawan

• Benny Wendry

• Tri Abdisatrijo

• Adi Munandir


8 21 August 2019 a. Company Performance Evaluation &

Capex of July 2019;



c. and others.

• Nasaruddin Umar

• Mochamad Choliq

• Astera Primanto

Bhakti


Sinaga

• Lydia Silvanna

Djaman


• Doddy Sulasmono

Diniawan

• Benny Wendry

• Adi Munandir


9 18 September

2019

a. Company Performance Evaluation &

Capex of August 2019;



Special Meeting:

a. The Board of Directors' Exposures for

"Rebranding”

b. Approval of the 2019 RKAP Revision;

c. Holcim Chronological Exposure;

d. and others.

• Soekarwo

• Nasaruddin Umar

• Mochamad Choliq

• Sony Subrata


Sinaga



• Doddy Sulasmono

Diniawan

• Benny Wendry

• Tri Abdisatrijo

• Adi Munandir


197





10 28 October 2019 a. Company Performance Evaluation &

Capex of September 2019 (including the

Financial Statements for the 3rd Quarter

of 2019);

b. Progess Integration Management Office

(IMO) & Cost Leadership;

c. and others.

• Soekarwo

• Mochamad Choliq

• Sony Subrata

• Astera Primanto

Bhakti


Sinaga

• Lydia Silvanna

Djaman



• Doddy Sulasmono

Diniawan

• Benny Wendry

• Tri Abdisatrijo

• Adi Munandir


11 19 November 2019 a. Company Performance Evaluation &

Capex of October 2019;

b. Program for Transformation

Management Office (TMO) (formerly

IMO & Cost Leadership);

c. and others

• Soekarwo

• Mochamad Choliq

• Astera Primanto

Bhakti


Sinaga

• Lydia Silvanna

Djaman



• Doddy Sulasmono

Diniawan

• Benny Wendry

• Tri Abdisatrijo

• Adi Munandir


12 11 December 2019 a. Company Performance Evaluation &

Capex of November 2019 (Highlights);

b. Ratification of the Board of

Commissioners’ Work Plan and Budget

2020;

c. and others.

• Soekarwo

• Nasaruddin Umar

• Mochamad Choliq


Sinaga



• Doddy Sulasmono

Diniawan

• Benny Wendry

• Tri Abdisatrijo

• Adi Munandir


Attendance of the Board of Commissioners in the Board of Commissioners’s Meeting

No Name PositionPeriod of

Attendance

Meeting Frequency and Attendance Percentage

Internal

BOC%

BOC-

BOD% Special %

1 Sutiyoso President Commissioner Jan - May 2019 5 100 5 100 - -

2 Soekarwo President Commissioner Jun - Dec 2019 6 86 6 86 1 100

3 Nasaruddin Umar Independent

Commissioner

Jan - Dec 2019 5 42 6 50 1 100

4 Mochamad

Choliq

Independent

Commissioner

Jan - Dec 2018 12 100 12 100 1 100

5 Wahyu Hidayat Commissioner Jan - May 2019 5 100 5 100 - -

6 Sony Subrata Commissioner Jan - Dec 2019 8 67 8 67 1 100

7 Astera Primanto

Bhakti

Commissioner Jan - Dec 2019 7 58 7 58 - -

8 Hendrika Nora

Osloi Sinaga

Commissioner Jan - Dec 2019 11 92 11 92 1 100

9 Lydia Silvanna

Djaman

Commissioner Jun - Dec 2019 4 57 4 57 - -

198



The Board of Directors Meeting

Meetings of the Board of Directors are held at a

minimum every month and can be held at any time

if necessary, taking place in the office or place of

main business activities within the territory of the

Republic of Indonesia. All decisions taken at the

meeting will be recorded in minutes of meeting

by the Corporate Secretary and signed by the

No Date of Meeting Meeting Agenda The Board of Directors

1 15 January 2019 1. Company Performance Evaluation & Capex of

December 2018

2. Progress of Integration Management Office (IMO) &

Cost Leadership


• Doddy Sulasmono Diniawan


• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry

• Agung Yunanto

2 19 February 2019 1. Discussion on BOC-BOD Meeting Agenda (2/22/2019)

a. Company Performance Evaluation & Capex of of

January 2019

b. Progress of Integration Management Office (IMO)

c. Cost Leadership (supply chain, energy, logistics &

auxiliary raw materials)

2. Inbreng of the Company’s Assets

3. Progress BTG



• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry

• Agung Yunanto

3 21 February 2019 1. Discussion on BOC-BOD Meeting Agenda (2/22/2019)

2. Progress of Integration Management Office (IMO)




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry

• Agung Yunanto

4 13 March 2019 1. SI’s AGM (Preparation, Timeline, Agenda)

2. Company Performance Evaluation & Capex of

February 2019

3. Update of the Board of Directors' Agenda



• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry

• Agung Yunanto

5 18 March 2019 1. Discussion on BOC-BOD Meeting Agenda

2. (3/19/2019)

a. Company Performance Evaluation & Capex of

February 2019

b. Progress of Integration Management Office (IMO)

c. Cost Leadership (supply chain, energy, logistics &

auxiliary raw materials)

3. Inbreng of the Company’s Assets

4. Progress of BTG




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry

• Agung Yunanto

Chairman of the Meeting and one of the Board of

Directors or authorized by a Notary.

During 2019, the Company's Board of Directors held

24 (twenty four) internal meetings with the following

details:

199




6 9 April 2019 1. IMO & IBM Team Progress Report

2. HR Committee



• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


7 16 April 2019 1. Company Performance Evaluation & Capex of March

2019 - BOC-BOD Meeting (04/23/2019)

a. (Finance, Marketing, Production, Capex, IMO

progress)

2. SBI’s Tuban Port Progress




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


8 3 May 2019 1. AGM 2019

2. AGMS of Subsidiaries 2019

3. Marketing (Push Promo, Rerouting, Brand Strategy)


• Doddy SulasmonoDiniawan


• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


9 14 May 2019 1. DARE - AT Kearney Program Report

2. Company Performance Evaluation & Capex of April

2019 - BOC-BOD Meeting (5/17/2019)

a. Evaluation of Performance & Capex of April 2019

(Highlights, IMO Progress, Dividends)

3. Update Progress Preparation for the 2019 Annual

General Meeting of Shareholders

4. HR Committee




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


10 25 June 2019 1. AT Kearney - TMO

2. Discussion on BOC-BOD Meeting Agenda

3. (6/26/2019)

a. Company Performance Evaluation & Capex of May

2019

b. Progress of IMO & DARE Program


• Doddy SulasmonoDiniawan


• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


11 9 July 2019 1. Presentation of Subsidiaries - SILOG

2. Branding (BOD & Supply Chain Marketing Team)




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry

200




12 18 July 2019 Company Performance Evaluation & Capex of June 2019

- BOC-BOD Meeting (07/18/2019)

1. Company Performance Evaluation & Capex of June

2019 (Marketing, Production, Finance, Capex)

2. Progress of IMO & DARE Program




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


13 30 July 2019 1. RJPP - AT Kearney

2. Others (BOD Limited)




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


14 19 August 2019 1. Presentation of IKSG

2. Progress of IMO & DARE Program

3. Company Performance Evaluation & Capex of July

2019 - Preparation of BOC-BOD Meetings (08/20/2019)




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


15 4 September 2019 1. RJPP - AT Kearney

2. SILOG Presentation




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


16 16 September 2019 1. EY - Time Motion Study Report (09.30)

2. Rebranding Program (11:00)

3. Preparation of BOC-BOD Meetings (13.30) - August

2019




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


17 1 October 2019 1. Packing Plant in Belawan and Tanjung Priok

2. SILOG Restructuring

3. Others - HR Committee




• Tri Abdisatrijo

• Benny Wendry


18 9 October 2019 Project Cost • Doddy Sulasmono Diniawan


• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


201




19 21 October 2019 1. IKSG & Business Process Pouches (Limited)

2. SMIG Organizational Transformation (Limited)

3. Preparation for BOC-BOD Meetings (10/28/2019)

a. Company Performance Evaluation & Capex of

September 2019

b. Progress of TMO


• Doddy Sulasmono D

• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


20 29 October 2019 1. Corporate Rebranding

2. TMO




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


21 13 November 2019 Re-Evaluation of Tanjung Priok • Hendi Prio Santoso



• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


22 18 November 2019 Preparation for BOC-BOD Joint Meeting (11/19/2019)

1. Company Performance Evaluation & Capex of October

2019

2. Progress of Transformation Management (TMO)




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


23 17 December 2019 1. HR Committee - BOD Limited

2. Corporate Rebranding- Unlimited BOD + Marketing &

Corporate Communications




• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


24 19 December 2019 HR Committee - BOD Limited • Hendi Prio Santoso

• Doddy Sulasmono Diniawan.


• Adi Munandir

• Tri Abdisatrijo

• Benny Wendry


202



Attendance of the Board of Directors in the Board of Directors' Meetings and the Joint Meetings of the Board of Commissioners and the Board of Directors

No Name Position Meeting Period

Total of Meetings Attendance and %

Internal

BOD%

BOC-

BOD%

1 Hendi Prio Santoso President Director Jan - Dec 2019 22 83% 12 75%

2 Doddy Sulasmono Diniawan Director of Finance Jan - Dec 2019 23 96% 12 83%

3 Fadjar Judisiawan Director of Production Jan - Dec 2019 22 83% 12 100%

4 Adi Munandir Director of Business


Jan - Dec 2019 23 96% 12 92%

5 Tri Abdisatrijo Director of Engineering &

Project

Jan - Dec 2019 24 100% 12 92%

6 Benny Wendry Director of Marketing &

Supply Chain

Jan - Dec 2019 24 100% 12 100%

7 Agung Yunanto Director of HR & Legal Jan - Mar 2019 5 100% 5 80%

8 Tina T. Kemala Intan Director of HR & Legal Mar - Dec 2019 18 95% 7 100%

Supporting Organs of the Board of Commissioners

In order to carry out its functions, duties

and responsibilities effectively, the Board of

Commissioners has formed three Committees

under the Board of Commissioners: the Audit

Audit Committee

The Audit Committee of the Company is

formed by and is responsible to the Board of

Commissioners with the main objective of assisting

the implementation of the supervisory function by

the Board of Commissioners on financial reporting,

internal audit and external audit, internal control and

compliance with applicable laws and regulations.

Committee, Nomination, Remuneration and CSR

Committee, and Investment and Risk Management

Strategy Committee, as well as Secretary of the

Board of Commissioners.

The establishment of the Audit Committee is an

obligation for the company as determined in Law

Number 19 of 2003 concerning State-Owned

Enterprises and Financial Services Authority

Regulation No.55/POJK.04/2015 concerning the

Establishment and Work Guidelines of the Audit

Committee.

203



Audit Committee Work Guidlines

Term of Office Policy

The oversight responsibility of the Audit Committee

is regulated in the Audit Committee Charter which

is implemented based on the decision of the Board

of Commissioners. The Audit Committee Charter

is regularly evaluated and adjusted to ensure

compliance with the Financial Services Authority

(FSA) regulations and applicable regulations. Based

on the Audit Committee Charter, the Audit Committee

Annual Work Plan shall be prepared annually as an

integral part of the Board of Commissioners Annual

1. The working period of members of the Audit

Committee shall be no longer than the term of

office of the Board of Commissioners as stipulated

in the Company's Articles of Association and can

be re-elected for the next 1 (one) period;

2. The Board of Commissioners may dismiss at any

time a member of the Audit Committee who is not

a member of the Board of Commissioners if the

person concerned is deemed not implementing

Work Plan. The Audit Committee’s Annual Work

Plan includes, among others, the activities and

activities to be carried out by the Audit Committee

as well as the time of implementation and the

parties involved. The Audit Committee members

are collectively responsible for the effectiveness of

the implementation of the Audit Committee’s annual

work plan. This allows each member to be able to

focus their attention on certain tasks, and to ensure

that the mandate of the Audit Committee is fulfilled.

duties as they should be as stated in the Decision

of the Board of Commissioners regarding the

appointment of the relevant members of the

Audit Committee;

3. The rights of members of the Audit Committee

who are not the Board of Commissioners are

regulated in a separate agreement in the Board

of Commissioners' decision letter with the

knowledge of the Company's Board of Directors.

List, Number, Composition and Legal Basis of Appointment of the Audit Committee

Komite audit Perseroan terdiri dari 1 (satu) Ketua

yang merupakan Komisaris Independen, 2 (dua)

anggota Independen dan 1 (satu) anggota yang

merupakan Komisaris non Independen. The

composition of the Audit Committee from 1 January

to 31 December 2019 is as follows:

Name Position Keterangan

Mochamad Choliq Chairman Independent Commissioner

Astera Primanto Bhakti Member Commissioner

Elok Tresnaningsih Member Independent Commissioner

M.Z. Abidin Member Independent Commissioner

204



M. Z. Abidin Audit Committee Member

Age: 57 years

Nationality: Indonesia

Residence: Jakarta


• Master degree in Tax Policy and Administration from

the University of Indonesia.

• State Registered Accountant from the State College

of Accountancy (STAN)

Work Experiences:

• Directors and Commissioners of SOEs’ Subsidiaries

• Chairman of the RNI Pension Fund Supervisory

Board

• Head of Internal Audit

Concurrent Position in other SOEs:

• STAN Accounting & Auditing Lecturer at the Ministry

of Finance

• Main Member of the Indonesian Institute of

Accountants (IAI)

• Member of the Institute of Internal Auditors (the IIA)

• Member of the Indonesian Audit Committee

Association (IKAI)

Affiliations:

Has no affiliation with members of the Board

of Commissioners, the Board of Directors and

Shareholders

Legal Basis of Appointment:

In accordance with the Decree of the Board of

Commissioners

Elok TresnaningsihAudit Committee Member

Age: 60 years


Residence: Jakarta


• Master degree in Accounting, Faculty of

Economics, University of Indonesia (2007).

• Bachelor degree in Economics majoring in

Accounting, Faculty of Economics, University of

Indonesia (1983)

Work Experiences:

• Permanent lecturer at the Department of

Accounting, Faculty of Economics and Business,

University of Indonesia (1985- present)

• Audit Committee of PT Perusahaan Listrik Negara

(Persero) (2007-2012)

Concurrent Position:

• Board of Directors of the Indonesian Audit

Committee Association (IKAI)

• Main Member of the Indonesian Institute of

Accountants (IAI)

Affiliations:

Has no affiliation with members of the Board

of Commissioners, the Board of Directors and

Shareholders

Legal Basis of Appointment:


Commissioners

Mochamad CholiqChairmanProfile of Mr. Muhammad Choliq is already mentioned in the Board of Commissioners’ Profile

Astera Primanto BhaktiMemberProfile of Mr. Astera Primanto Bhakti is already mentioned in the Board of Commissioners’ Profile

Profile of the Audit Committee

205



Independence of Audit Committee Members

All members of the Audit Committee meet the

independence requirements of Audit Committee

members in accordance with the rules and rules of

GCG practice, namely that members of the Audit

Committee are not people who work or have the

authority and responsibility to plan, lead, control

or supervise the activities of the Company within 6

(six) in the last month, did not have direct or indirect

shares in the Company, had no affiliation with the

Board of Commissioners, Directors or controlling

shareholders of the Company, and did not have

business relations, directly or indirectly, relating to

the Company’s business activities.

Especially for Commissioners (non-independent)

who are members of the Audit Committee, in

order to maintain the independence of the Audit

Committee, do not have voting rights in the decision

making of the Audit Committee in terms of voting in

making decisions.

Independence Aspects Mochamad

Choliq

Astera P

Bhakti

Elok

Tresnaningsih

MZ Abidin

Has no financial relationship with members of the Board of


√ √ √ √

Has no management relationship in the Company, its

subsidiaries, or affiliated companies

√ √ √ √

Has no management relationship in the Company, its

subsidiaries, or affiliated companies

√ √ √ √

Has no familial relationship with members of the Board of

Commissioners, Directors, and/or fellow members of the Audit

Committee

√ √ √ √

Does not serve as a manager of political parties, officials and

government

√ √ √ √


The Audit Committee acts independently in carrying

out its duties and responsibilities, which include:

1. Reviews financial information released by the

Company, in the form of financial statements,

projections and other reports related to the

Company's financial information.

2. Provides independent opinion in the event of

disagreements between Management and the

Independent Accountant/Auditor for the services

they provide.

3. Provides recommendations to the Board of

Commissioners regarding the appointment of

an Independent Accountant/Auditor based on

independence, the scope of the assignment,

and compensation for services.

4. Reviews complaints related to the Company's

accounting and financial reporting processes.

5. Reviews the implementation of audits by

internal and external audits and overseeing the

implementation of the follow-up on audit findings

recommendations by the Board of Directors.

6. Reviews compliance with laws and regulations in

the capital market and other regulations related

to the Company's activities.

7. Examines and provides suggestions for potential

conflicts of interest of the Company.

8. Maintains the confidentiality of the Company’s

documents and information in accordance with

applicable regulations.

206



Audit Committee Meetings (Frequency of Meetings and Attendance)

Audit Committee Duties

During 2019, the Audit Committee held Audit

Committee internal meetings, attended joint

meetings with the Board of Directors and

Commissioners, special meetings, and work

meetings with the following attendance:

During 2019, the Audit Committee has carried out

tasks in accordance with the Audit Committee

Annual Work Plan. The tasks carried out were:

• Reviewed the Company’s Financial Report.

The review is carried out through discussions

with the Internal Auditor, Independent Auditors

and Management regarding internal controls,

accounting policies and the Company’s financial

reporting business processes. Discussions were

also made about the results of the review of the

quarterly financial statements in 2019. The Audit

Committee has also reviewed and discussed the

consolidated financial statements for 2019 with

Management, including discussions of the quality

of the accounting standards applied, the basis for

the use of significant judgment, and the adequacy

of disclosures in the consolidated financial

statements. The Management has confirmed to

the Audit Committee that the financial statements

are their responsibility prepared with integrity and

objectivity and in accordance with Indonesian

Financial Accounting Standards.

• Monitored the performance of Independent

Auditors.

During 2019, the Audit Committee communicated

regularly with the Independent Auditor, started

since the preparation of the audit plan and

during the implementation until after the audit

implementation. The communication carried out

includes the quality of judgment used by the

Management and the applicable accounting

standards used by the management for the

Financial Statements reporting and the complete

information needed by the Independent Auditor

to be able to carry out audits in accordance with

the audit standards and applicable financial

accounting standards. The Audit Committee also

continuously conducts supervision related to

the independence of the independent Auditor.

• Evaluated and advised the appointment of the

Independent Auditor for the 2019 fiscal year to

the Board of Commissioners.

In the 1st Quarter 2019, the Audit Committee

recommended that the Board of Commissioners

appointed the Public Accounting Firm KAP

Tanudiredja, Wibisana, Rintis & Rekan ("KAP

TWRR"), a member of PwC network of firms,

to conduct a general audit of the Company's

Consolidated Financial Statements and Annual

Partnership and Community Development

Program (PKBL) Report for the 2019 fiscal year

respectively. The Board of Commissioners

approved the recommendation and proposed

it to the GMS through the Board of Directors.

The decision of the Company's Annual General

Meeting of Shareholders, 22 May 2019 in Jakarta,

approved the appointment of the KAP TWRR.

Audit Committee BOC %BOC

BOD% AC %

Total

Meetings

Mochamad Choliq AC Chairman/Independent

Commissioner12 100 12 100 19 91 43

Astera Primanto Bhakti AC Member/Commissioner 7 58 7 58 9 43 23

Elok Tresnaningsih Independent Commissioner 12 100 11 92 21 100 44

M. Z. Abidin Independent Commissioner 12 100 12 100 21 100 45

207



Training/Education Programs in the Fiscal Year

• Evaluated the implementation of the general

audit of fiscal year 2019 by the Independent

Auditor (KAP TWRR).

The Audit Committee evaluates the provision of

general audit services for the 2019 fiscal year by

the Independent Auditor, namely KAP TWRR a

member of PwC network of firms, which includes:

conformity with applicable audit standards, the

adequate time to conduct a field work, the scope

of services provided and the adequate tests,

recommendations for improvement provided,

and other matters which is deemed necessary

according to the conditions.

• Supervised the implementation of the Internal

Audit function.

On a quarterly basis, the audit committee

conducts discussions with the Internal Audit

Unit regarding the implementation of the 2019

internal audit work plan, including a discussion

of the results of the inspection and follow-up

monitoring reports by Management. In addition,

several other discussions were also conducted,

including those related to the results of the Quality

Assurance Review of the Internal Audit Unit and

the implementation of the follow-up. In 2019 a

review of the 2020 Internal Audit Work Plan was

also conducted which included internal audit

activities and resource adequacy.

Training Name ParticipantTime and Place of

ImplementationOrganizer

Workshop "Understanding PSAK 71,

PSAK 72 and PSAK 73 for the Audit

Committee”

Elok Tresnaningsih 25-26 Juli 2019,

Jakarta

Indonesian Audit Committee

Association (IKAI)

Panel Discussion "Welcoming

Application for Auditing Standards (SA)

701 - Communication Key Audit Matters"

Elok Tresnaningsih 28 Agustus 2019,

Jakarta


Association (IKAI)

Panel Discussion "Audit Committee

Legal Responsibility"

Elok Tresnaningsih 31 Oktober 2019,

Jakarta


Association (IKAI)

Workshop "Certification in Audit

Committee Practices (CACP) Batch X”

M. Z Abidin 9-11 April 2019, Jakarta Indonesian Audit Committee

Association (IKAI)

Panel Discussion "The role of

Independent Commissioner in

overseeing the reliability of financial

reports, learning from the most recent

cases"

M. Z Abidin 5 September 2019,

Jakarta

Indonesian Institute of


(LKDI)

Corporate Tax Planning M. Z Abidin 23 November 2019,

Jakarta

Indonesian Institute of

Accountants (IAI)

208



Nomination & Remuneration and CSR Committee

The Nomination & Remuneration and CSR

Committee (NR-CSR Committee) as a supporting

organ of the Board of Commissioners carries out

its duties based on Financial Services Authority

Regulation No. 34/POJK.04/2014.

The NR-CSR Committee has the role of assisting

SIG’s Board of Commissioners in providing

supervisory recommendations and providing advice

to the Board of Commissioners, as well as carrying

out other specific tasks with the main tasks:

1. Determines selection criteria and nomination

procedures and recommends the number and

selection process of members of the Board of

1. NR-CSR Committee must have integrity,

dedication, experience and understanding of the

Company's risk management, have adequate

knowledge in the field of Human Resources and

can provide sufficient time to complete its duties.

2. NR-CSR Committee members must have in-depth

knowledge and understanding of the duties and

responsibilities of the Committee in accordance

with applicable laws and regulations and the

Company's internal policies related to their area

of work.

3. NR-CSR Committee must be independent and be

able to carry out its duties independently, solely

The Company's Nomination & Remuneration and

CSR Committee has a Charter or Work Guidelines

established through the Board of Commissioners'

decision No: 011/SI/Kep.DK/11.2015 regarding

Commissioners and members of the Board of

Directors,

2. Provides remuneration recommendations for

members of the Board of Commissioners and

members of the Board of Directors, as well

as members of the Board of Commissioners'

supporting organs, and

3. Provides input for supervision and advice and

recommendations in the field of management

and development of the Company's Human

Resources (HR).

4. Provides input for supervision and advice in the

areas of Social and Environmental Responsibility

(TJSL) and Corporate Social Responsibility (CSR).

for the benefit of the Company, regardless of the

influence of various parties who have interests

that can conflict with the interests of other parties.

4. NR-CSR Committee shall not:

a. have familial relations with members of the

Board of Directors and members of the Board of

Commissioners up to the second degree, both

in a straight line and to the side or in a marital

relationship (son-in-law and brother-in-law);

b. have any personal interest, directly or indirectly,

in material information about the Company;

c. have status as Director and employees of the

Company within the last 1 (one) year.

Work Guidelines/Charter of the Nomination and Remuneration Committee

Criteria for Member of the Nomination & Remuneration and CSR Committee (NRCSR Committee)

Charter of the Nomination and Remuneration

Committee. This decision refers to OJK Regulation

No. 34/POJK.04/2014 concerning the Nomination

and Remuneration Committee of Issuers or Public

Companies.

209



The terms of office of members of the NR-CSR Committee who are not members of the Board of

Commissioners is no longer than the term of office of the Board of Commissioners.

The composition of the Nomination & Remuneration and CSR (NRC) in 2019 is as follows:

Terms of Office Policy

List, Number, Composition and Legal Basis of Appointment of the Nomination & Remuneration and CSR Committee

Profile of the Nomination & Remuneration and CSR Committee

Nasaruddin Umar Chairman of NR-CSR CommitteeProfile of Mr. Nasaruddin Umar can be seen in the Board of Commissioners’ Profile

Sony SubrataMember of CSR SubThe profile of Mr. Sony Subrata can be seen in the Board of Commissioners’ Profile

Name Position Information

Nasaruddin Umar Chairman of NRC Independent Commissioner

Wahyu Hidayat 1) Chairman of Sub NR Commissioner

Soekarwo 2) Head of CSR Sub Commissioner

Sony Subrata Member of CSR Sub Commissioner

Irham Dilmy 3) NRC member Professional

Dedi Kusnendar 4) NRC member Professional

1) & 2) his term of office ends on 22 May 2019;3) the term of office ends on 30 November 2019; 4) became a member of the NR CSR Committee in June 2019

210



Irham DilmyMember of NRC

Age: 63 tahun


Residence: Jakarta

Educational Background:• MBA (Master of Business Administration) from the Kogod

School of Business at American University, Washington DC majoring in international Business through Fulbright scholarship (1993-1995).

• Diploma of Human Resources Management from the University of California, Los Angeles in 1986

• Bachelor of Political Science majoring in International Relations from the University of Indonesia in 1981,

Work Experiences:• Country Manager Indonesia, Pedersen & Partners Global

Executive Search (2013-2014);• General Manager, Human Capital Master Plan, PT Semen

Gresik, Tbk. (2011-2012);• Managing Partner, AMROP Indonesia Executive Search

(1996-2010);• Principal, TASA International (1995-1996); Human Resources

Director, Chiquita Brands Int'l (1991-1993);• Country Manager of Human Resources, PT Coca-Cola

Indonesia (1990-1991);• Policy Analyst, The World Bank, Washington, DC (1989-

1990);• Manager, Organization, Compensation & Benefits, ARCO

Indonesia (1982-1989).

Concurrent Positions:Deputy Chair and Commissioner of the State Civil Apparatus Commission (KASN), an independent non-structural institution under the President of Indonesia, for the 2014-2019 term

Affiliations:Has no affiliation with members of the Board of Commissioners, members of the Board of Directors and Shareholders

Legal Basis for AppointmentIn accordance with the Decree of the Board of Commissioners

Dedi Kusnendar

Member of NRC

Age: 58 years


Residence: Jakarta

Educational background:• Master of Management (MM), Master of Business

Administration in Technology (MBAT) from the Bandung Institute of Technology in 2003

• Bachelor of Chemical Engineering from the Bandung Institute of Technology in 1986

Work Experiences:• Commissioner of PT Sucofindo EPISI (2014-2018)• Vice President PT Sucofindo's Strategic

Management Division (2014-2017)• Vice President PT Sucofindo Eastern Regional

Division (2012-2014)• Vice President Finance and Accounting Division

of PT Sucofindo (2002-2012)

Concurrent Positions:Senior Consultant at several management consulting firms.

Affiliations:Has no affiliation with members of the Board of Commissioners, members of the Board of Directors and Shareholders

Legal Basis for Appointment:In accordance with the Decree of the Board of Commissioners

211



All NRC members have never had a relationship with the Company or family relations with members

of the Board of Commissioners and other members of the Board of Directors of the Company.

The NRC's role is to assist the Board of

Commissioners in providing recommendations

for supervision and advice to the Board of

Commissioners, as well as carrying out other

specific tasks with the main responsibilities:

• Determines selection criteria and nomination

procedures and recommends amount and

selection process of members of the Board of

Commissioners and members of the Board of

Directors,

• Provides recommendations for remuneration of

members of the Board of Commissioners and

members of the Board of Directors, as well as

members of the supporting organs of the Board

of Commissioners, and

• Provides input for supervision and advice and

recommendations in the field of management

and development of the Company's Human

Resources (HR).

• Provides input and advice on CSR policies

aligned with the Company's strategy.

• Ensures CSR programs alignment with the

policies set by the Company.

• Monitors the implementation of the Work Plan

and CSR program budget.

Independence of Nomination & Remuneration and CSR Committee Members


Independence Aspect Nasaruddin

Umar

Sutiyoso Soekarwo Wahyu

Hidayat

Sony

Subrata

Irham

Dilmy

Dedi

Kusnendar

Has no financial relationship with

the Board of Commissioners and

Directors

√ √ √ √ √ √ √

Has no managerial relationship

in the Company, subsidiaries or

affiliated companies

√ √ √ √ √ √ √

Has no managerial relationship

in the Company, subsidiaries, or

affiliated companies

√ √ √ √ √ √ √

Has no familial relationship with the

Board of Commissioners, Directors,

and/or fellow Audit Committee

members

√ √ √ √ √ √ √

Does not serve as an administrator

of political parties, officials and

government

√ √ √ √ √ √ √

212



Throughout 2019, the NRC Committee held 4 (four) internal meetings, in which the frequency of meetings and the

attendance of NRC members can be seen in the following table:

Meeting of the Nomination & Remuneration and CSR Committee

Implementation of Nomination & Remuneration and CSR Committee Duties

The main challenge of the Company in 2019 in

human resources management is how HR policies

can help the Company in dealing with changes in the

cement industry environment as well as increasing

competition in the cement industry nationally and

regionally, while the challenge for CSR issue is how

the Manajemem policy so that the implementation

of CSR programs can benefit Community and the

environment around the factory site.

In an effort to improve the competency and

performance of all elements of leaders and

executors at the holding level, Semen Indonesia,

and at level of operating companies in the cement

sector to be able to move quickly as well as

effectively and efficiently, the Company's Board of

Commissioners through the NRC strives to submit

proposals and input in supervisory framework while

provides advice and recommendations.

NRC tasks completed in the year 2019 includes:

1. Evaluated and proposed names of prospective

members of the Board of Directors of the

Company for the purposes of consideration of

shareholders at the Annual General Meeting

of Shareholders and the Extraordinary General

Meeting of Shareholders.

2. Provided recommendations for the management

process of human resources development, in

order to prepare the Company to face challenges

in national and regional market competition.

3. Together with the Board of Directors of the

Company's HR Management, calculated the

proposed remuneration for the Board of

Directors and Commissioners for fiscal year

2020 and tantiem for fiscal year 2019 to majority

shareholders, which was submitted to the 2020

Annual General Meeting of Shareholders and

recommendations regarding remuneration for

NRC Committee BOC

Intl

% BOC

BOD

% KNR % Total Meetings

2019

Nasaruddin Umar Chairman of NRC

/Independent

Commissioner

5 42 6 50 11

Sutiyoso Chairman of CSR Sub/

Commissioner

5 100 5 100 10

Soekarwo Chairman of CSR Sub/

Commissioner

6 86 6 86 1 100 13

Wahyu Hidayat Chairman of Sub NR/

Commissioner

5 100 5 100 10

Sony Subrata Member of CSR Sub/

Commissioner

8 67 8 67 1 100 17

Irham Dilmy Member of NRC/

Professional member

9 82 8 73 1 100 18

Dedi Kusnendar Member of NRC/

Professional member

8 100 8 100 4 100 20

213



To prepare the cadres of future leaders, the

Company organized a Leadership Development

Program and the Talent Management Acceleration

Program. Potential cadres entering the Talent

Pool will undergo a series of training programs

with the main content being capacity building in

management, business development strategies,

evaluation of strategic plans and the like.

At the time of leadership change, the Company

will propose internal candidates through elections

conducted by the Ad-hoc Committee and facilitated

by the Board of Commissioners. The results of the

selection of internal candidates are then submitted

to the Ministry of SOEs to undergo a fit and proper

test.

The Board of Directors Succession Policy

the Board of Commissioners and Directors as of

the beginning of 2020.

4. Carried out the performance achievements (KPI)

of the Board of Commissioners and Directors

collegially for 2019 as the basis for carrying out

the nomination and remuneration functions in

accordance with the needs;

5. Monitored the implementation of several projects

in the Human Resources Management unit for

talent management programs, as a means to

obtain personnels with needed competencies

and qualifications to face business challenges.

6. Reviewed the policies, proposals, implementation

and procedures of the CSR Program’s Work Plan

and Budget, both for programs coordinated under

the Ministry of SOEs and independent programs

in the context of Social and Environmental

Responsibility.

214



Strategy, Risk Management and Investment Committee

The Strategy, Risk Management and Investment

Committee (SRMIC) is a committee formed by the

Board of Commissioners to assist the Board of

Commissioners in supervising and advising the

Board of Directors on the overall management of

the Company both in its entirety and in accordance

with the laws and regulations.

invitation and Articles of Association of the Company,

specifically for matters related to preparation

process and implementation of strategic corporate

actions, as well as ensuring the implementation of

risk management principles within the Company and

conducting analysis and review of the Company's

investment plans.

Work Guidelines/Charter of the Strategy, Risk Management and Investment Committee

List, Number, Composition and Legal Basis of Appointment of Strategy, Risk Management and Investment Committee

The Company has compiled the Strategy, Risk Management and Investment Committee guidelines in

Board of Commissioners Decree No. 010/SI/Kep.DK/11.2015 Concerning the Charter of the Strategy,

Risk Management and Investment Committee of PT Semen Indonesia (Persero) Tbk.

Composition of Strategy, Risk Management and Investment Committee members as of 1 January

2019 - 31 December 2019

Name Position Information

Wahyu Hidayat 1) Chairman Commissioner

Lydia Silvanna Djaman 2) Chairman Commissioner

Hendrika Nora Osloi. Sinaga Member Commissioner

Syafrizal 3) Member Commissioner

Fritz Bonar Panggabean 4) Member Professional

Agus Waluyo 5) Member Professional

1) Terms of office ended on 22 May 2019;2) Appointed as Commissioner on 22 May 2019;3) Terms of office ended on 30 April 2019;4) Appointed as Committee as of 1 May 2019; 5) Appointed aCommittee as of 1 July 2019.

215



Profile of the Strategy, Risk Management and Investment Committee

Lydia Silvanna DjamanChairman of the SRMICProfile of Lydia Silvanna Djaman is available in the Board of Commissioners’ Profile

SyafrizalMember of the SRMIC

Age: 48 tahun


Residence: Bandung

Educational Background:• Doctor of Engineering from the

Department of Earth Resources Engineering, Graduate School of Engineering, Kyushu University, Japan in 2006

• Master of Engineering in the ITB Mining Engineering Study Program, Bandung, in 2000

• Bachelor of Mining Engineering from the Bandung Institute of Technology, Bandung, in 1996

Work Experiences:Exploration and Mining Consultants

Concurrent Positions:Lecturer Staff in the Mining Engineering Study Program, Faculty of Mining and Petroleum Engineering (FTTM), Bandung Institute of Technology (ITB).

Affiliations:Has no affiliation with members of the Board of Commissioners, members Directors and Shareholders

Legal Basis for Appointment:In accordance with the Decree of the Board of Commissioners

Fritz Bonar PanggabeanMember of the SRMIC

Age: 50 years

Nationality: Indonesian

Residence: Jakarta

Educational Background:Bachelor of Civil Engineering from the Bandung Institute of Technology, Bandung, in 1995.

Work Experiences:• Deputy Director of Sales & Marketing,

SAHID Group (PT Sahid Inti Dinamika) (2014-2017))

• GM Sales & Marketing at PT Graha Cemerlang (2013-2014)

• Senior Manager at Cowell Development Tbk (2010-2012)

• Senior Manager of the Project Sales division, Knight Frank Indonesia (2007-2009)

• Senior Manager. Coldwell Banker Commercial (2002-2006)

• Management Trainee at the Panangian Simanungkalit & Associates property consultancy office (1998-2001)

• Junior engineerat the civil consultant office, PT Dinamaritama Engingeering,Bandung

Concurrent Positions:Director of Business Development of PT Indra Mega Makmur

Affiliations:Has no affiliation with members of the Board of Commissioners, members Directors and Shareholders


Agus WaluyoMember of the SRMIC

Age: 47 years

Nationality: Indonesian

Residence: Jakarta

Educational Background:• Bachelor of Economics at Widya

Wiwaha School of Economics, Yogyakarta, in 2009

• Diploma III in Accounting at Jakarta State College of Accountancy at in 1994

Work Experiences• Audit Committee at PT Angkasa Pura I

(Persero) (2015 - 2019)• Auditor, BPKP Representative of East

Nusa Tenggara Province (2011-2015).• Auditor, BPKP Representative of DI.

Yogyakarta (1999-2011)• Auditor, Development Finance

Supervisory Agency (BPKP) Prov. South Sumatra (1994)

Concurrent PositionsYoung Auditor at the Inspectorate of the Ministry of SOEs (2015 to now).

AffiliationsHas no affiliation with members of the Board of Commissioners, members Directors and Shareholders


Hendrika Nora Osloi SinagaMember of the SRMICProfile of Hendrika Nora Osloi Sinaga is available in the Board of Commissioners’ Profile

216



Independence of Members of the Strategy, Risk Management and Investment Committee


Members of the Strategy, Risk Management and

Investment Committee (SRMIC) are professionals

who have sufficient competence in their respective

fields with at least 5 (five) years experience. These

professionals have never had any relationship with

the Company or family relations with members of the

Board of Commissioners and other Directors. The

SRMIC carries out its duties and responsibilities

professionally and independently. The main duties

and responsibilities of the SRMIC are assisting

the Board of Commissioners in monitoring and

evaluating the preparation and implementation of

the strategic plan, Work Plan and Corporate Budget

(RKAP), risk management system, and investment

plan with the following details:

1. Conduct a comprehensive review of the

Company’s Long Term Plan (RJPP) proposal as

well as the Company’s Work Plan and Budget

(RKAP) submitted by the Directors.

2. Reviewing the implementation of the RJPP and

RKAP to be in line with the RJPP and RKAP

targets authorized by the Commissioner.

3. Evaluate the development and implementation

of the risk system carried out by the Company

and provide further improvement suggestions.

4. Evaluate and advise on improvements to the

identification and mitigation of risks that could

threaten the achievement of the RKAP targets.

background of SRMIC members varies, including

strategic management, performance management,

risk management, mining engineering, financial

banking and accounting. The diversity of

backgrounds is intended to meet the required

competencies and the independence of opinions

and recommendations submitted.

5. Evaluate and advise on improvements to the

identification and mitigation of risks in the

Company’s development projects such as

the construction of new cement plants, and

investments or purchases of cement factories

abroad.

6. Review the proposed divestment investment

and the Company’s capital expenditure within

a certain value limit submitted by the Board

of Directors and monitor the implementation

process.

7. Reviewing the company’s proposed strategic

actions and monitoring the implementation

process.

RMISC’s duties, responsibilities and authority are fully

regulated in a Decree of the Board of Commissioners

regarding the Strategy, Risk Management and

Investment Committee and Charter (charter) which is

regularly reviewed.

Independence Aspect Lydia

Silvanna

Djaman

Hendrika

Nora Osloi

Sinaga

Wahyu

Hidayat

Syafrizal Fritz Bonar

Panggabean

Agus

Waluyo

Has no financial relationship with the Board of


√ √ √ √ √ √

Has no management relationship in a company,

a subsidiary, or an affiliated company

√ √ √ √ √ √

Has no management relationship in a company,

a subsidiary, or an affiliated company

√ √ √ √ √ √

Has familial relations with the Board of

Commissioners, Directors, and/or fellow

members of the Audit Committee

√ √ √ √ √ √

Has not serve as a manager of political parties,

officials and government

√ √ √ √ √ √

217



Some notes from SRMIC during 2019 were as follows:

Strategy Sector1. Requirement for uniformity and synchronization

of financial statements of each non-cement

subsidiary in order to be able to do periodic

analysis and evaluation of the financial

performance of each non-cement subsidiary.

2. Requirement to maintain and improve revenue

improvement strategies by harmonizing sales

and marketing program synergies; promotion,

brand switching, market research, and waste

management and synergy implementation

between subsidiaries.

3. Requirement for formulation and implementation

of a comprehensive marketing strategy by

making use of the potential for synergy and taking

into account the addition of production capacity

by competitors, in connection with 2019 there

has been a very dynamic development in the

struggle for the domestic cement market share

by domestic cement producers.

4. Requirement for special attention to improve

the ability and reliability of clinker and cement

production facilities owned by the Company, in

order to ensure that these facilities can at least

produce a production level in accordance with

the targets stated in the RKAP 2019.

5. Requirement for the continuation of efforts and

innovation for efficient costs of production and

transportation through the DARE Program, and

Standardization of cost control.

6. Requirement to strengthen SBI's post-acquisition

integration program through operational synergy

in the procurement function, production function,

distribution function, HR and IT function, and

financial function, as well as through business

process and system transformation.

7. Requirement to increase the productivity of

production facilities at Semen Indonesia Group,

among others through standardizing the

production system.

8. Requirement for increased research and

development activities to support the Company's

efficiency and competitiveness in energy, fuel,

raw materials, packaging, Alternative Fuel & Raw

Materials (AFR), environment, quality, products

and product applications.

9. Requirement to strengthen distribution channels

channel to expand networks and market

penetration, including by implementing integrated

Supply-Chain Management (SCM) and Customer

Relationship Management (CRM).

10. Requirement for internal capacity enhancement

at SIG in offering complete cement solutions that

meets the customer needs.

11. Requirement for intensive efforts to plan and

implement non-cement business development

to support the increase in the Company's

consolidated income.

12. Requirement to increase the readiness of human

resources (HR) to face increasingly competitive

competition, and in line with the Company's

business development strategy going forward,

and improving the implementation of the Human

Capital Master Plan program.

13. Requirement to update the subsidiary governance

(ie blue print) adjusted to the existing cement

business to non-cement.

14. Requirement for IT Development which facilitates

standardization and centralization of the holding-

subsidiary business processes, both cement and

non-cement subsidiaries.

15. Requirement to improve the Company's CSR

programs that are right on target, and have a

direct impact on society, the environment, and

stakeholders.

Risk Management1. Requirement for management to conduct

uniformity/standardization for risk management

between parent and subsidiary entities, both

cement and non-cement subsidiaries. So that

the consolidation of risk management at the

Company level becomes easier.

2. Requirement to continue to improve the

effectiveness of the implementation of the risk

management system developed by the Company

to reach higher maturity level at all operating

companies.

3. Carry out continuous monitoring of risk mitigation

efforts to minimize the impact of risk.

Investment Sector1. Requirement to improve the quality of planning,

disciplining submitted budget proposals, and

implementing Capex in the SIG environment.

2. Requirement for post-project evaluation of the

Capex Strategic projects that were completed,

in order to gain learning lesson to improve the

implementation of other Strategic Investment

Projects in the future.

218



3. Continue to make efforts to maintain and

oversee the implementation of new cement plant

construction plans within the Semen Indonesia

Group environment in accordance with the

schedule with due regard to the principles of

good governance.

Strategy, Risk Management and Investment Committee Meeting (Frequency of Meetings and Attendance)

Pelaksanaan Tugas Komite Strategi Manajemen Risiko dan Investasi

The implementation of the functions and roles of

the Activities of the Strategy, Risk Management

and Investment Committee in accordance with their

duties and responsibilities throughout 2019 can be

briefly described as follows:

1. Provided input to the Board of Commissioners for

the focus of supervision throughout 2019.

2. Conducted analysis and evaluation of the

Company's monthly performance reports and

hold meetings and discussions with related

Management units to monitor the achievement of

monthly performance against the 2019 RKAP as

well as submit proposals and recommendations

on the corrective measures that are deemed

necessary.

3. Monitored and evaluated, as well as provided

input to the Company's strategy in terms of

securing the potential of raw materials, securing

the continuity of fuel supply, especially coal, as

well as marketing innovations and distribution

patterns of cement carried out to maintain market

share.

4. Conducted monthly monitoring of the

implementation of the 2019 Capex program

and periodically every quarter to evaluate the

implementation of Capex 2019.

5. Conducted monthly monitoring of the

performance of non-cement subsidiaries against

the 2019 RKAP targets set by each subsidiary.

6. Provided input to the Board of Commissioners

in considering granting approval for Submitting

Loans for Refinancing.

7. Provided input to the Board of Commissioners in

considering granting approval for the 2019 RKAP

Revised Proposal.

8. Provided input to the Board of Commissioners in

considering granting approval to the Proposed

Partnership Program with ROEs in Rembang in

the form of Share Ownership Option of PT Semen

Gresik.

Komite SMRIBOC

Intl%

BOC

BOD% KSMRI %

Total Meetings

2019

Wahyu Hidayat 1) Chairman/Commissioner 5 100 5 100 10

Lydia Silvanna Djaman 2) Chairman/Commissioner 4 57 4 57 4 50 12

Hendrika Nora Osloi Sinaga Member/Commissioner 11 92 11 92 6 75 28

Syafrizal 3) Member 4 100 4 100 8

Fritz Bonar Panggabean 4) Member 6 75 6 75 8 100 20

Agus Waluyo 5) Member 5 83 5 83 8 100 18

1) Terms of office ended on 22 May 2019; 2) Appointed as Commissioner on 22 May 2019;3) Terms of office ended on 30 April 2019;4) Appointed as Commissioner on 1 May 2019; 5) Appointed as Commissioner on 1 July 2019.

The frequency and attendance of Strategy, Risk Management and Investment Committee meetings throughout

2019 can be seen in the following table:

219



Ninda E. Djohaeri

Secretary of the Board of Commissioners

Age: 60 tahun


Residence: Jakarta


BSc dari Richland College, Dallas, USA.

Work Experiences:

• Team Leader of International Institutional Relations

with IBRA, (2000-2004)

• Secretary to the Board of Commissioners,

PT Telkom Indonesia (Persero) Tbk (2004-2008)

• Country Rep. from Drive Robotic Inc.,

IT Company (2009 to 2010)


None

Legal Basis for Appointment:


Commissioners

Terms of Office:

15 November 2011 – 30 June 2019


The Secretary of the Board of Commissioners

(Sekdekom) is tasked with assisting the Board of

Commissioners administratively in carrying out the

supervisory and advisory and fiduciary duties of the

Board of Commissioners. As head of the Board of

Commissioners' Secretariat unit, the Sekdekom is in

charge of 2 (two) Secretariat Staff on duty on a full-

time basis.

Sekdekom comes from professionals who are

experienced in the fields of secretariat management,

administration, human resources, regulatory/

compliances, corporate communication, and

"oversight management" in the areas of finance/

internal control, strategic planning, and corporate

risk. On 1 July 2019, there was a change in the

position of Secretary of the Board of Commissioners,

from previously held by Ninda E. Djohaeri replaced

by Edi Eko Cahyono.

Profile of the Secretary of the Board of Commissioners of 2019

220



Duties and Responsibilities of the Secretary of the Board of Commissioners

1. The Secretary of the Board of Commissioners/

Supervisory is tasked with carrying out activities

to assist the Board of Commissioners/ Supervisory

Board in carrying out their duties in the form of:

a. Organizes meeting agenda of the Board

of Commissioners and Directors, prepares

meeting materials, including briefing sheets

for the Board of Commissioners/Board of

Trustees;

b. Makes minutes of meetings of the Board

of Commissioners/Supervisory Board in

accordance with the provisions of the

Company's Articles of Association;

c. Administers the Board of Commissioners/

Supervisory Board documents, including

incoming letters, outgoing letters, minutes of

meetings and other documents;

d. Prepares a Work and Budget Plan for the

Board of Commissioners/Supervisory Board;

e. Arranges reports of the Board of

Commissioners/ Supervisory Board;

f. Conducts other duties from the Board

Commissioner/Supervisory Board.

2. In addition to carrying out the duties referred to

in paragraph (1), the Secretary of the Board of

Commissioners/Supervisory Board as the leader

of the Secretariat, carries out other tasks such as:

a. Ensures that the Board of Commissioners/

Supervisory Board complies with the laws and

regulations and applies GCG principles;

Edi Eko Cahyono


Age: 37 years


Residence: Depok


• Master of Applied Accounting from Gadjah Mada

University (UGM) in 2014

• Bachelor of Economics from the University of

Indonesia (UI) in 2008

• Diploma from the State College of Accountancy

(STAN) in 2003

Work Experiences:

• Secretary of the Board of Commissioners of PT

Petrokimia Gresik (2016-2019),

• PT Indonesia Asahan Aluminum (Persero) (2014-2016),

• Secretary of the Board of Commissioners of PT Len

Industri (Persero) (2013-2014)

• Secretary of the Board of Commissioners of PT

Industri Nuklir Indonesia (Persero) (2009-2013)


Head of SOEs Research Sub-Division 1 at the Ministry of

SOEs since 2015

Legal Basis for Appointment:


Commissioners

Terms of Office:

1 July 2019 – 30 June 2021

221



Duty Implemention of the Secretary of the Board of Commissioners in 2019

b. Provides information needed by the Board of

Commissioners/Supervisory Board in carrying

out its supervisory, advisory and fiduciary

duties;

c. Coordinates Committee members, the results

of studies/analysis/recommendations from the

Committees, to support the supervisory and

advisory tasks of the Board of Commissioners/

Supervisory Board;

d. As a liaison officer of the Board of

Commissioners/Supervisory Board with other

parties.

3. In the framework of orderly administration and

implementation of good corporate governance

the Secretary of the Board of Commissioners/

Supervisory Board must ensure that the

documents for carrying out activities referred

to in paragraph (1) are stored properly in the

Company.

4. In carrying out their duties, the Secretary of

the Board of Commissioners has the authority

to coordinate and request information and/or

information from officials, employees and or

parties related to the implementation of the duties

and functions of the Board of Commissioners in

the Company.

5. The Secretary of the Board of Commissioners

must maintain the confidentiality of information,

data and documents obtained in the context of

carrying out his duties and functions.

No ActivityPIC

OutputL S

1 Developed the Governance mechanism, supervisory and

advisory functions, in line with the prevailing laws and

based on the GCG principles

Sekdekom Sekdekom Presentations, Reports

and Availability of

Materials

2 Development of Annual Commissioners activity plans Sekdekom +

Committees

Sekdekom +

Committees

Annual Activity Plan

3 Development of annual report (the Board of

Commissioners’ section)

Sekdekom +

Committees

Sekdekom +

Committees

Annual Report

4 Development of supervisory report for submission to the

NED GMS

Sekdekom Sekdekom Report of the Board of

Commissioners

5 Coordinated the committees’ reports as the supporting

organs of the Board of Commissioners

Sekdekom Sekdekom Meeting material/

material

6 Organized the meetings/coordination with the Board s

of Directors and its elements; and to provide opinions on

topics of discussion, if required.

BOC Sekdekom Availability of meeting

materials on the

agenda

7 Provided the response on periodical reports of the Board

of Directors (quarterly, annually), as well as at any time that

are required concerning corporate development, and to

promptly report the duties implementation results to the

Shareholders.

BOC Sekdekom Availability of meeting

materials

8 Updates on the Company’s growth, both from internal

provided by the Company as well as external information,

from the media or other resources.

Sekdekom Sekdekom Availability of meeting

material from the

Committee Evaluation

and Analyst Review

9 Provide opinions and suggestions for the GMS in the

appointment and dismissal of Directors

BOC NR-CSR

Committee

NR Recommendation

10 Preparing Annual BOC Supervisory Report Sekdekom +

Committees

Sekdekom +

Committees

Report

222



Corporate Secretary

As a Public Company, the Company is required

to have a Corporate Secretary who functions as a

liaison between the Company and the Shareholders

and other Stakeholders, as well as ensuring the

Company's compliance with laws and regulations,

particularly in the capital market sector.

Organizational Structure of the Corporate Secretary

Department of

Institutional Relations

Department of

Corporate Office

Staf

StafStaf

StafStaf

President Director

Corporate Secretary

Unit of General Affairs

& Representative Office

Unit of Management Office

and BOD Secretariate

Department of CSR

223



Requirements and procedures for appointing

a Corporate Secretary refers to the Financial

Services Authority Regulation No.35/POJK.04/2014

concerning Corporate Secretary of Issuers or

Public Companies and the Ministry of SOEs

Regulation No.PER-01/MBU/2011 concerning the

Implementation of Good Corporate Governance in

State Owned Enterprises, as amended by PER-09/

MBU/2012.

The following is the profile of Semen Indonesia’s

Corporate Secretary in 2019:

Profile of Corporate Secretary Officer

Vita Mahreyni

Corporate Secretary

Age: 37 years


Residence: Jakarta

Educational Background:• Master of Business Financial Management at Pelita

Harapan University (2016)

Work Experiences:• Corporate Secretary from April 2019 to present• Head of Department of Institutional Relations

Concurrent Position: None

Legal Basis for Appointment:The Board of Directors’ Instruction No.004/Instr/Dir/03.2020

Terms of Office:

2019 - Present

224



The Corporate Secretary has the functions and

responsibilities in formulating the Company’s policy,

planning and communication control. The functions

of the Corporate Secretary include among others:

• Ensuring fluent communication between the

company and its stakeholders,

• Ensuring the availability of information which

may be accessible by the stakeholders based on

stakeholders’ reasonable needs,

• Ensuring that the Company fulfill the obligations

related to the capital market and Shareholders in

accordance with the prevailing provisions,

• Fostering the company’s identity and image

to support the improvement of the Company’s

value,

• Managing the Company’s internal and external

communications media and directing the

subsidiaries in the undertaken corporate

communications activities.

In addition to the aforesaid functions, the Corporate

Secretary has the tasks of:

• Controlling the management of communication

strategies to build the Company’s image

• Acting as a representative of the Company and

liaison officers between the Company and all

stakeholders in communicating the accurate

and prompt communication of the Company’s

activities;

• Control the delivery of Company’s performance

information and corporate action to the capital

market authorities, stock exchange authorities,

investors, analysts and other market participants;

The duties and responsibilities of the Corporate

Secretary are described in Bapepam-LK Regulation

IX.14 on the establishment of the Corporate Secretary

as well as the Decree of the Minister of SOEs no.

KEP- 117/M-MBU/2002 on the Implementation of

GCG Practices on State-Owned Enterprises, and

the latest is the Regulation of the Financial Services

Authority No. 35/POJK.04/2014 dated December 8,

2014 on Corporate Secretary of Issuers or Public

Companies.

• Coordinate the submission of the Company’s

Annual Report and periodic Financial Reports to

the capital market authorities and stock exchange

authorities;

• Coordinate The implementation of the Board

of Directors ‘meeting, the Board of Directors’

meeting with the Board of Commissioners and

the General Meeting of Shareholders.

The function of the Corporate Secretary is

implemented in several functions as follows:

• Compliance officer, to follow and provide input

to the Board of Directors on the updates of

applicable laws and regulations and ensure that

the Company complies with these regulations.

• Stakeholders relation, providing services to the

Shareholders, Board of Commissioners, Board of

Directors and other stakeholders including but

not limited to investors for information related

to the conditions in accordance with Articles of

Association and prevailing laws and regulations.

This service demonstrates the application of

the Company’s transparency and disclosure

principles to Stakeholders.

• Liaison officer/contact person, acting as liaison

officer between the Company and Bapepam-LK,

stock exchange, and the public.

• Business information, providing immediate

information to the Stakeholders on actual events

that occurs in response

The duties and responsibilities and obligations of

the Corporate Secretary are as follows:

1. To follow the development of the Capital Market,

in particular to prevailing laws and regulations in

the Capital Market;

2. To provide input to the Board of Directors and

Board of Commissioners of the Issuers or Public

Companies to comply with the provisions of laws

and regulations in the Capital Market;

Corporate Secretary Function


225



3. To assist the Board of Directors and Board

of Commissioners in the implementation of

corporate governance which includes:

• Disclosure of information to the public,

including the availability of information on the

Web Site of Issuer or Public Company;

• Ensuring timely delivery of reports to the

Financial Services Authority;

• Convene and make documentation of the

General Meeting of Shareholders;

• To organize and make documentation of

meetings of the Board of Directors and/or

the Board of Commissioners; and Implement

the orientation program of the company for

the Board of Directors and/or the Board of

Commissioners.

4. As a liaison between Issuer or Public Company

with shareholders, the Financial Services

Authority, and other stakeholders.

5. The Corporate Secretary is required to provide

periodic report at least 1 (one) time in 1 (one)

year on the implementation of the corporate

secretary’s function to the Board of Directors and

copied to the Board of Commissioners.

The activities carried out by the Corporate Secretary

include managing relationships with investors, the

public and internal relations, handling internal data,

as well as providing input to the Board of Directors

of the Company in compliance with Capital Market

Law provisions and implementing regulations,

including the implementation of Governments in the

Company.

As the liaison officer between the Company and

the capital market community and other interested

external parties, the Corporate Secretary and

the Investor Relations Department ensure the

fulfillment of aspects of openness as one of the

GCG principles for the capital market community,

fostering relationships with investors in stocks

and bonds, and other securities, with analysts,

journalists, trustees, rating agencies, Self Regulatory

Organizations (SRO), and other related financial

communities.

To ensure that the disclosure of information is

accurate and recorded, processed, summarized

and reported within a certain period of time,

in accordance with the applicable information

disclosure provisions and as a corporate

secretary in carrying out its duties, the Company

issues communication policies as outlined in the

GCG Guidelines and "External Communication

Procedures".

In order to comply with regulations and improve

effective communication, the Company organizes

media gathering, press conference, media visit,

public expose, conference call, investor gathering,

analyst meeting, non-deal road show, forum

of investors and press release distribution to

communicate operational development and The

latest corporate financial condition. In addition,

the Company also provides information for all

employees through the Internal Communication

Program. This is done, to ensure equality in the

dissemination of information to all stakeholders.

In 2019, a number of stakeholder-related activities

carried out by the Corporate Secretary included:

organized the GMS once; attended every Board

of Commissioners' and Directors' Meetings and

prepared Minutes of Meetings of the Board of

Commissioners and Directors; as well as established

communication with the Ministry of SOEs, Ministry of

Finance, State Secretary, Bapepam, Self Regulatory

Organization (BEI, KSEI, KPEI), Registrar, and other

related institutions; organized hearings and work

visits with the DPR-RI; organized/participated in

public expose, media site visit, analyst meeting,

Duty Implementation in 2019

Corporate Secretary Correspondence

226



In order to support the disclosure of information to

the public, the Corporate Secretary always reports

to the regulator. Every year, the Corporate Secretary

prepares an Annual Report that refers to existing

regulations.

In the context of information disclosure, the

Company also publishes Press Releases that are

submitted to the mass media. Throughout 2019,

the Press Releases issued by the Company were as

follows:

conference, exhibition and organized press

conferences and teleconferences.

Information Disclosures to Shareholders, Analyst,

Investors and Other Stakeholders Activities

Information Disclosure

No Activity 2019

1 Analyst & Investor Visit 133

2 Conference 12

3 Public Expose 1

4 Outgoing Mails 44

5 Annual Report 1

No Number Date Title

1 001/HM.03/50050407/2000/01.19 11 January 2019 UPS Semen Indonesia Distributes Scholarships to 71

Students Around the Company

2 002/HM.03/50050407/2000/02.19 1 February 2019 Semen Indonesia Acquisitioned Holcim

3 003/HM.03/50050407/2000/04.19 2 April 2019 Semen Indonesia Booked a Net Profit of Rp3.08

Trillion in 2018

4 004/HM.03/50050407/2000/04.19 11 April 2019 Semen Indonesia Invites 150 Netizens for

#MembangunKebaikan (Building Goodness) Through

Social Media

5 005/HM.03/50050407/2000/04.19 23 April 2019 Semen Indonesia Invites Students from West Sumatra

to Share Inspiration and Experience

6 006/HM.03/50050407/2000/04.19 29 April 2019 Commemorating Earth Day, Semen Indonesia Holds

Community Day Titled #Membangun Lingkungan

(Building the Environment

7 007/HM.03/50050407/2000/05.19 2 May 2019 Semen Indonesia #MembangunKemandirian

(Building Independence) Together With Senior High

School/Vocational/Islamic High School Students in

Magetan Regency

8 008/HM.03/50050407/2000/05.19 2 May 2019 2019 First Quarter Report of Financial Performance of

PTSemen Indonesia (Persero) Tbk

9 009/HM.03/50050407/2000/05.19 22 May 2019 Held Safari Ramadhan 1440 H, Semen Indonesia

Provide Donation and Affordable Foods

10 010/HM.03/50050407/2000/05.19 22 May 2019 Semen Indonesia Distributes 40% Dividends

227



Throughout 2019, the Corporate Secretary of Semen Indonesia did not participate in education and training

programs related to the implementation of its duties and responsibilities.

Competency Development

No Number Date Title

11 011/HM.03/50050407/2000/05.19 30 May 2019 Mass Hometown Travel with SOEs in 2019, Semen

Indonesia Sends 5,000 Travel Participants

12 012/HM.03/50050407/2000/05.19 31May 2019 Semen Indonesia #Mangun Ketakwaan Together with

East Java Journalists

13 013/HM.03/50050407/2000/07.19 23 July 2019 P3H Semen Indonesia Sent 192 Hajj Prospective

Pilgrims to Hajj Dormitory Surabaya

14 014/HM.03/50050407/2000/07.19 31 July 2019 Post-Consolidation, Revenue of Indonesian Cement

Increases 22.9%

15 015/HM.03/50050407/2000/08.19 11 August 2019 Semen Indonesia Distributes 233 Sacrificial Animals

16 016/HM.03/50050407/2000/08.19 15 August 2019 Semen Indonesia Achieved Good Mining Practice

Award from the SOEs Office of Central Java Province

17 017/HM.03/50050407/2000/08.19 21 August 2019 Semen Indonesia Strengthens Group Synergy, Ready

to Compete in Regional Markets

18 018/HM.03/50050407/2000/08.19 29 August 2019 Semen Indonesia Builds a Mortar Plant with a Capacity

of 375 Thousand Tons/Year

19 019/HM.03/50050407/2000/09.19 19 September 2019 Semen Indonesia Received Three Awards from Alpha

Souteast Asia

20 020/HM.03/50050407/2000/09.19 27 September 2019 Holcim changed to Dynamix

21 021/HM.03/50050407/2000/10.19 31 October 2019 Semen Indonesia Revenue Increases 31% From

January to September 2019

22 022/HM.03/50050407/2000/11.19 30 November 2019 Semen Indonesia Exports 3.38 Million Tons of Cement

23 023/HM.03/50050407/2000/12.19 17 December 2019 men Indonesia Receive Award in the 2019 ASEAN

Mineral Awards

24 024/HM.03/50050407/2000/12.19 21 December 2019 Semen Indonesia Exports 3.87 Million Tons of Cement

228



Internal Audit Unit

The Internal Audit Unit is part of internal control,

which broadly aims to help management realize its

objectives/targets through adequate auditing and

implementation of internal control, risk management

and corporate governance processes.

The establishment of the SPI refers to Chapter VI

of the Republic of Indonesia Law No. 19 of 2003

concerning State-Owned Enterprises, Government

Regulation No.12 of 1998 concerning Companies

(Persero), the Ministry of SOEs Regulation

No.PER-09/MBU/2012 concerning Amendments

to the Minister of SOEs Regulation No.PER-01/

MBU/2011 concerning the Implementation of Good

Corporate Governance (GCG) Practices in State-

Owned Enterprises (SOEs).

Audit Charter

In carrying out its duties the Internal Oversight

Unit has an Internal Audit Charter which has been

approved by the President Director and approved

by the Independent Commissioner as Chairman of

the Audit Committee on 17 July 2017. Aside from

being a work guideline, the Internal Audit Charter

also plays a role in strengthening the role, functions

and responsibilities as well as the basis for the

existence and implementation of Internal Audit

tasks.

The Company's Internal Audit Charter consists of 6

(six chapters), as follows:

1. Chapter I Introduction

2. CHAPTER II Internal Audit Group

3. CHAPTER III Audit Implementation Standards

4. CHAPTER IV Code of Ethics

5. CHAPTER V Synergy of Internal Audit Functions

6. CHAPTER VI Closing

Purpose of Audit

The implementation of the Audit conducted by the

Group Internal Audit Work Unit aims to:

1. Assist Management to achieve the Company's

goals by conducting impartial assessment

and consultation activities to ensure the

effectiveness of the implementation of risk

management, internal control systems, and the

corporate governance process.

2. Provide rational, complete, accurate and timely

recommendations to management to improve

performance, achieve performance and

prevent/avoid irregularities that might arise.

229



Internal Audit Organizational Structure

Profile of Internal Audit Group Head

Staf

Independen

CommisionerPresident Director

Audit Committee

Department

Head

Department

Head

Internal

Audit Grup

Organizational Structure of the Internal Audit Unit and work relations with the Board of Commissioners'

organs is outlined in the following chart:

Daniel Wirjawan Dharmanta

(Acting) Internal Audit Group Head

Age: 52 Years


Residence: Surabaya

Educational background:Economics and Development Studies at Airlangga University, graduated in 1994

Work Experiences:• Senior Corporate Auditor, GIA PT Semen Indonesia

(Persero) Tbk 2018-2019• SM of ICT Audit, Bureau of ICT Audit, PT Semen

Indonesia (Persero) Tbk 2014-2017• ICT Auditor, Bureau of ICT Audit, PT Semen Indonesia

(Persero) Tbk 2014-2014• Internal Aduitor, Internal Audit of PT Semen Gresik

(Persero) Tbk 2011-2013

Legal Basis of Appointment:The Board of Directors Instruction No. 173/Instr/Dir/12.2019, period 23 December 2019 to 22 May 2020 as Acting Internal Audit Group Head

Certification:CISA (Certified Information Systems Auditor)

Terms of Office:23 December 2019 to 22 May 2020

230



Appointment and Dismissal of the Internal Audit Group Head

The position of the Company's Internal Audit

Group Head is appointed and dismissed by the

President Director with the approval of the Board

of Commissioners and at any time the appointment,

replacement or dismissal of the Internal Audit Group

Head must notify the Financial Services Authority

(OJK).

Internal Audit Personnel Composition

No Name Team Education Professional Certification

1 Bakti Prasetyo, ST Corporat Audit I Electrical Engineering

(Bachelor’s degree)

2 Aji Setyawan, SE Corporat Audit I Accounting Economics


3 Muhamad Soleh, PIA Corporat Audit I Vocational School of

Engineering (STM)

Professional Internal Audit (PIA)

4 Rudy Subijantoro, SE.,PIA. Corporat Audit I Management Economics


Professional Internal Audit (PIA)

5 Andi Sumarwoto, SE., QIA Corporat Audit I Management Economics


Qualified Internal Audit (QIA)

6 Mulyono, SE Corporat Audit I Management Economics


7 Heru Setyadi, ST. Corporat Audit I Mechanical Engineering


8 Erfanti Qodarsih, SE., Akt.,

QIA.

Corporat Audit II Accounting Economics


• Qualified Internal Audit (QIA)

• Certified Risk Management

Professional (CRMP)

• Chartered Accountant (CA)

9 Setyo Budi Prayitno, SE Corporat Audit II Management Economics


10 Dian Prapanca, SE., MM., QIA. Corporat Audit II Accounting Economics


Financial Management

(Master’s Degree)

• Qualified Internal Audit (QIA)

• Certified Risk Management

Officer (CRMO)

11 Eka Kristiani, Se. Corporat Audit II Accounting Economics


12 Daniel Wirjawan D., Se., Cisa. Corporat Audit III Economics &

Development Studies


Certified Information System

Audit (CISA)

13 Budi Setiyawan, SH., PIA Corporat Audit III Law (Bachelor’s degree) Professional Internal Audit (PIA)

14 Muhammad Fakhrudin M.,

S.Kom.

Corporat Audit III Informatics Engineering


15 Yudi Ismanto, S.Kom. Corporat Audit III Informatics Engineering


16 Ummi Cholsum Admin Senior High School

231




In accordance with the Internal Audit Charter, the

Internal Audit Group unit is responsible to assist the

Company in achieving its objectives by:

1. Developing and implementing the Annual

Internal Audit Work Plan includes examination

and assessment of the efficiency and

effectiveness of finance, accounting, operations,

human resources, procurement, marketing,

information technology and other activities.

2. Provide suggestions for improvements and

objective information on activities being

examined at all levels of management.

3. Monitoring, analyzing and reporting on the

follow-up implementation of recommended

improvement.

4. Arrange quality assurance program for internal

audit work.

5. Conducting periodic review and/or audit of

financial statements of the Company.

6. Carry out duties as counterpart in coordinating

with external auditors and other supervisory

institutions.

7. Perform a special audit, if necessary.

8. Provide consultancy services in the form of

advisory service, usually at the specific request

of a work unit/party requiring consultation. The

nature and scope of consultancy services is

based on agreement with the work unit/party

requiring consultation. Internal Audit Group

should maintain at all times its independency

and objectivity, and not to take over the

responsibility of Management. Responsibility of

Management include but is not limited to:

• Operational activities of the work unit/party

requiring consultation.

• Decision making by the work unit/party

requiring consultation should be based on

the results of the consultancy.

9. Perform analysis, assessment, recommendation,

consultation, and report of all activities that was

performed in accordance with:

• Internal Audit Profession Standard,

• International Professional Practices

Framework (IPPF),

• Prevailing laws and regulations,

• Other regulations relevant to the Company

such as Semen Indonesia Management

System, decrees of the Board of Directors,

manuals, work instruction.

10. Prepare a Report of Audit Results to be

submitted to the President Director and the

Board of Commissioners and forwarded to the

Audit Committee.

11. To coordinate, cooperate, and partner with

the Audit Committee in their respective roles

according to prevailing regulation.

Internal Audit Group Authority

In carrying out its duties, the Group Internal Audit is

guided by a Work Plan approved by the President

Director and the Audit Committee, and has unlimited

access authority to:

1. Perform a review of work activity, business

premises, and all areas where the Company has

assets or interests.

2. Request information and explanation from all

management staff and employees, and also to

attend all meetings within the Company that

was deemed relevant.

3. Receive a copy of any decision, cooperation

agreement, and/or other regulations that was in

effect and binding to the Company as well as the

necessary summary and minutes of meetings.

4. Examine and study all data, document, and records

of the Company in order to obtain the necessary

information related to the execution of its duty.

232



5. Request the services of external auditor at the

expense of the Company in the absence of

competent or adequate workforce.

6. Access all relevant information about the

Company relevant to its duty and function.

7. Perform direct communication with the Board

of Directors, Board of Commissioners, and/or

Audit Committee.

8. Hold regular or ad hoc meeting with the Board

of Directors, Board of Commissioners, or Audit

Committee.

9. Coordinate its activities with the activities of the

external auditor.

10. Should in performing its duty it found an

indication to a fraud, then it will deliver the

finding to the President Director and/or Audit

Committee for follow up. The investigation for

internal operations under the Board of Directors

will be performed by Internal audit (could be

aided by external auditor), and for Board level

and/or above will be performed by external

auditor.

All ranks within the Company are required to

cooperate fully with the Internal Audit Group. All

limitation to access must be communicated to the

relevant management personnel and a solution

worked out. If necessary, the Head of Internal Audit

Group could report and requesting consideration

for a solution to the President Director and/or Audit

Committee...

Scope of Internal Audit Group

The assignment of Internal Audit Group includes

the entire scope of business conducted by the

Company and subsidiaries through the activities:

1. Testing, evaluating, and offering opinion

on the effectiveness of internal control, risk

management system, and corporate governance

in line with the policies of the Company.

2. Evaluating, assessing, and offering consultation

service including the preparation and execution

of Control Self Assessment (CSA) in the

Company’s main business process.

3. Ensuring and reviewing the quality of Good

Corporate Governance implementation in the

Company.

4. Providing assurance regarding compliance

to prevailing laws, regulations, standard, and

business ethics.

5. Evaluating the reliability and integrity of

information and the method used to identify,

classify, and report the information.

6. Offering an internal consultation service (if

needed) for the Company’s management for:

(1) formulation of the Company’s Work Plan and

Budget, and

(2) facilitate the identification process for risk

and control.

7. Performing an audit to the subsidiary in regards

to blueprint strategic holding and in accordance

with internal audit work plan of the HoldCo.

8. Performing an audit in a subsidiary (if needed)

in line with the disposition of the President

Director (as shareholder in subsidiary) or Board

of Commissioners/Audit Committee, and/or

at the request from the subsidiary’s Board of

Commissioners through the President Director.

9. Performing any other duty and responsibilities

in support of the application of blueprint for

strategic holding prevailing in the Company.

233



Implementation of Tasks in 2019

Development of Group Internal Audit Competencies

2. Consultancy/Sharing Knowledge

No Title Participants

1 Workshop: Employee Benefits Working Paper All IAG.

2 Finance for Non Finance All IAG.

3 FS Analysis for Audit Performance All IAG.

4 Retirement Tax Calculation All IAG.

5 Creative Accounting All IAG.

6 Employee Benefits All IAG.

7 Creating a Cover Page for Audit Reporting Purpose All IAG.

8 Impact of Organizational Structure Changes on Purchase to

Pay Business Processes

Erfanti Q., Dian P., Setyo Budi P., Eka K.

9 Virtual Cost Center Erfanti Q., Dian P., Setyo Budi P., Eka K.

10 Procurement Procedure Dissemination Erfanti Q., Dian P., Setyo Budi P., Eka K.

1. Workshop/Seminar/Conference/Training

No Title The Auditor

1 MS Excel for Accountant M. Fakhrudin M., Eka K., Setyo Budi P.

2 Compilation of Employee’s Defined Benefits Working Paper

with OCI method in accordance with PSAK 24

Dian P., Erfanti Q., Eka K., Setyo Budi P., M.

Fakhrudin M.

3 Seminar on the Role of Internal Auditors in Supporting the

Company’s goals achievement in an era full of challenges

Tubagus MD, Daniel WD

4 UK ISO 14001 & 9001 Awrn Daniel WD, Bakti P.

Throughout 2019, the Internal Audit Group has

carried out:

a. 7 (seven) Operational Audit

• Strategic Procurement Audit

• Engineering and Project Audit

• Accounting & Finance Audit

• CAPEX and Assets Audit

• PKBL Audit

• Company Development & Strategic Planning

Audit

• Strategic ICT Audit

b. 3 (three) Performance Audit of a subsidiary

• PT SIB and PT VUB

• PT SISI

• PT KSI

c. 1 (one) Risk Maturity Assessment 2019

d. 1 (one) review activity on the work quality of

Internal Audit Group (Quality Assurance Review)

e. Analytical Review

From the operational audit, 71 improvement/

development recommendations were submitted for

24 departments.

In addition to the above activities, the Group Internal

Audit also counterparts the activities of:

• Audit of the Supreme Audit Board of the Republic

of Indonesia

• Audit of the Company's Consolidated Financial

Statements and PKBL Financial Statements

• GCG Assessment

• KPKU Assessment

234



Internal Audit Synergy Road Map of SI Group 2017-2021

In carrying out its functions, the Group Internal Audit sets the road map for the SI Group's Internal Audit synergy

as follows:

• Implementation of

KSO audit system

design, procedures

and organization


systems:

1. e-audit Group

(e-GRCA)

2. Timesheet

3. Continuous

monitoring

• Standardization

of IA group

consultative

activities

• Review of Internal

Control and GCG

Self Assessment

• Group Audit

on Strategic

Investments

• Competence

certification of

Internal Auditors

• Optimization of

Group e-audit

(e-GRCA) system


systems:

1. Timesheet

Group IA

2. Continuous

monitoring

Group IA

3. Group

GCG Self-

Assessment

• Improvement on

IA consultative

activities at SI

• Design of Group

Internal QAR

blueprint

• Group Audit

on Strategic

Investments

• Competence

certification of

Internal Auditors

• Optimization of

Group IA systems:

1. e-audit Group

(e-GRCA)

2. Timesheet

3. Continuous

monitoring

• Improvement

on Group IA

consultative

activities

• Implementation

of Group Internal

QAR

• Group Audit

on Strategic

Investments

• Audit of Non-

Cement Business

Subsidiary

• Internal Auditor

Competency

Certification

• IA Group

Standardization

• Optimization of

Group IA systems:

1. e-audit Group

(e-GRCA)

2. Timesheet

3. Continuous

monitoring

• Improvement on IA

Group consultative

activities

• Implementation

of QAR Internal

Group

• Group Audit

on Strategic

Investments

• Audit of Non-

Cement Business

Subsidiary


Competency

Certification

• IA Group

Standardization

• Optimization of

Group IA systems:

1. e-audit Group

(e-GRCA)

2. Timesheet

3. Continuous

Monitoring

• Improvement

on IA Group

consultative

activities


External QAR in

Semen Indonesia

(Persero) Tbk.

(Target Maturity

Level: Problem

Solver)

• Group Audit

on Strategic

Investments

• Audit of Non-

Cement Business

Subsidiary


Competency

Certification

• IA Group

Standardization

2017 2019 20202018

No Title Participants

11 Beyond Transformational Leadership to Greater Engagement Erfanti Q., Bakti P., Daniel WD, Budi S., Aji S., M.

Fakhrudin M.

12 Hedging Erfanti Q., Dian P., Setyo Budi P., Eka K.

13 Discussion of the 2019 KPKU Criteria Daniel WD, Yudi I.

14 Semen Indonesia Innovaction Summit 2019 Daniel WD

15 Internal Audit (Semen Gresik Hospital) Daniel WD, Bakti P., Aji S.

235



Public Accountant

The function of independent oversight of the

Company’s financial aspects is carried out by an

External Audit conducted by the Public Accounting

Firm (KAP). External auditors who examined the

Company’s financial statements for the fiscal year

2019 are determined through the Annual General

Meeting of Shareholders on 22 May 2019 based on

a proposal from the Board of Commissioners that

takes into account the recommendations of the

Audit Committee. The selection process is carried

out in accordance with the applicable procurement

mechanism for goods and services. To guarantee

the independence and quality of the examination

results, the appointed External Auditor must not

have any conflict of interest with the Company.

Policy on Public Accountants Appointment

In engaging with a Public Accountant, the Company

refers to the provisions of the Financial Services

Authority Regulation No. 13 of 2017 concerning Use

of Public Accountants Chapter VI article 16 (1) which

states that the provision of general audit services

for the financial statements of an entity is conducted

by a Public Accountant for a maximum of 3 (three)

consecutive financial years. The appointed Public

Accounting Firm (KAP) is responsible to submit their

opinion on the consolidated financial statements

prepared based on Indonesian Financial Accounting

Standards.

Name and Year of the Public Accounting Firm

Year Public AccountingAccountant Name

(Partner in Charge)Fee (Rp) Opinion

2019 KAP Tanudiredja, Wibisana, Rintis

& Rekan (a member of PwC

network of firms)

M. Jusuf Wibisana (No. AP. 0222) 6,477,250,000 Fair without exception

2018 KAP Satrio Bing Eny & Partners

(member of Deloitte Touche

Tohmatsu)

Muhammad Irfan (No. AP. 0565) 7,215,000,000 Fair without exception

2017 KAP Satrio Bing Eny & Partners


Tohmatsu)


2016 KAP Osman Bing Satrio & Eny


Tohmatsu)


2015 KAP Osman Bing Satrio & Eny


Tohmatsu)

Eny Indria W. (No. AP. 0559) 4,358,500,000 Fair without exception

236



Other Assurance Services Provided by KAP in the Fiscal Year 2019

In 2019, the KAP Tanudiredja, Wibisana, Rintis &

Rekan (A member of PwC network of firms) provided

other audit services in addition to the general audit

for PT Semen Indonesia (Persero) Tbk for the fiscal

year 2019, incuding:

1. An audit for the Financial Statements of the

Partnership and Community Development

Program ("PKBL") for the fiscal year ended in 31

December 2019 to the following units:

a. PT Semen Indonesia (Persero) Tbk.

b. PT Semen Padang

c. PT Semen Tonasa

2. Agreed Upon Procedures (AUP) for PKBL

Consolidated Financial Statements of PT Semen

Indonesia (Persero) Tbk for the fiscal year ended

in 31 December 2019.

3. AUP for compliance of financial management and

implementation of PKBL funds toward prevailing

laws and regulations which was applied for the

fiscal year ended in 31 December 2019 to the

following units:

a. PT Semen Indonesia (Persero) Tbk

b. PT Semen Padang

c. PT Semen Tonasa

4. AUP for Report of the Implementation of

Prudential Principles ("KPPK") for the fiscal year

ended in 31 December 2019 to the following

units:

a. PT Semen Indonesia (Persero) Tbk

b. PT Semen Gresik

c. PT Semen Padang

d. PT Semen Tonasa

e. PT Solusi Bangun Indonesia Tbk

f. PT Solusi Bangun Andalas

237



Risk Management

In order to overcome and mitigate a variety of risks

that arise in the course of implementing operational

as well as investment activities, the Company

since 2005 has comprehensively applied risk

management methods, namely Enterprise Wide

Risk Management (EWRM) that is integrated in all

of the Company’s management system. EWRM has

consistently been applied in all of the business

processes and strategic as well as operational

decision-making.

This system has gradually continued to be developed

in accordance with business scale growth, which

is aligned with the development of the latest risk

management methods and with the enactment of

regulation from the Ministry of SOEs No.PER-01/

MBU/2011 concerning the Implementation of Good

Corporate Governance (GCG) and also the latest

changes with the issuance of the Minister of SOEs

Regulation No. PER-09/MBU/2012, in article 25, on

Risk Management.

The following are brief stages in the development

of the Risk Management method that the Company

has carried out since 2005.

Preparation Phase Implementation Phase Implementation &

Development Phase

• Establishment of a Risk

Management Unit

• Preparation of individual

competence;

• Establishment of the Strategy,

Risk Management and Investment

Committee by the Company's

Board of Commissioners;

• The preparation of the

Company's risk management

manual;

• Risk Assessment Pilot Project in

the Production and Marketing

Division;

• Audit of the Company's risk

management implementation

by the Audit Committee of

the Company's Board of

Commissioners;

• Commencement preparation

of strategic risk review of the

Company;

• Preparation of the Company's

risk management development

roadmap.

• Formulation of the Company’s

Risk Management Policies &

Procedures;

• Implementation of ISO 31000:

2009 based Risk Management

framework;

• Dissemination and Training

on risk management in all

elements of the Company.

• Risk Assessment

implementation in all work

units of the Company;

• Risk Maturity Level

Measurement by an

independent institution;

• Risk Based Audit

Implementation;

• Risk review concerning

strategic and operational

issues.

• Implementation of Internal

Control of Financial Reporting

(ICoFR).

• Review of the Company's

Risk Management Policies &

Procedures;

• Arrangement of Risk

Management Architecture Design

based on ISO 31000: 2018;

• Processing risk governance

integration aligned with the

policies and procedures of the

Company;

• Risk Management Dissemination

and Training for all elements of

the Company;

• Design & initiate the use of online

Risk Management Application;

• Conduct Risk Assessment in all

work units of the Company;

• Hybrid measurement of Risk

Maturity Level by external and

internal parties

• Development of Risk Maturity

Level Assessment Guidelines;

2005-2008 2009-2018 2019

238



The increasingly complex activities of the Company

currently operating in various regions, both in the

country and abroad as a result of the realization

of development and expansion programs,

confront the Company with increasingly diverse

challenges. These challenges include: the right

investment decision making process, supervision

of the implementation of investment activities,

management of subsidiaries, changes in the

business environment, and demands for compliance

with various applicable laws and regulations, both

domestically and in units operating abroad. These

challenges must be understood and managed

effectively so that the Company can realize its

goals and maintain the desired level of growth and

development optimally and sustainably (optimum

and sustainable growth).

Therefore, the Company develops professional

and responsible corporate management practices

with one of them including Implementation of the

Enterprise Risk Management (ERM) System. The

function and role of the ERM is to develop policies,

framework systems and risk management process

systems in the Company in accordance with

principles that are aligned with standard guidelines

from the International Standards for Organization

(ISO).

Integrated Risk Management (IRM) in the current

era has become the basis of each Management

System implementation as an initial parameter,

which means that Risk Management is no longer

a Secondary but has become a major part of the

entire Management System currently being applied

by most companies, particularly by the Company. In

this case, it is necessary to change the paradigm

of thinking for all components of the Company for

the time being and subsequently to make Risk

Management the foundation for the implementation

of the Management System in the Company,

especially in smaller scopes such as the Working

Unit as risk owner.

Enterprise & Integrated Risk Management System

Interprise Risk Management System

IRM System

En

terp

rise Risk Managem

en

t

OHS & Environ

me

nt

Risk Managem

en

t In

tegr

ated System (RMIS

)

Au

ditQual

ity

Bu

siness Control Manag

em

en

t

239



Enterprise Risk Management Implementation Policy

ISO 31000 is an international standard used in

the guidelines for implementing risk management

that is published by the International Organization

for Standardization (ISO) and was not developed

for certification purposes. ISO 31000 issued on 13

November 2009 is the development of the AS/

NZS 4360: 2004 standard issued by the Australian

Standards.

The Company has transformed the risk management

standard which was previously using the AS/NZS

standard to ISO 31000: 2009. By implementing ISO

31000: 2009 as our Framework, it is expected that the

implementation of the Company's risk management

is carried out in accordance with international

standards and in line with the Company's vision and

mission. In 2019, the Company has a work program

of migration processes and adjustments from ISO

31000: 2009 Standard to ISO 31000: 2018.

In addition, the risk management implementation

in the Company is also expected to support good

corporate governance (GCG) implementation,

so that the business processes built by the

Company runs according to stakeholders’

expectations.

In implementing a corporate risk management

system, the obstacle that usually arises is the

level of effectiveness in dissemination to all

elements, both internal and external of the

Company, to build a risk culture. The Company

anticipates this by implementing periodic

dissemination assisted with infrastructure

development such as risk management

application system development.

In addition to dissemination, the ERM Department

also remains open to proactively becoming a

facilitator in the discussion process with the

risk process owner, so that the communication

Policy of Enterprise Risk ManagementImplementation

ERMPolicy

Principles

Process Framework

240



ERM System Organizational Structure

The Company has established an Enterprise

Risk Management (ERM) Department that acts

as a coordinator in implementing the Enterprise

Risk Management System (ERM System). The

unit designs risk management system starting

from the development framework and process

and infrastructure completion required in risk

management implementation, as well as facilitating

and disseminating activities related to risk

management implementation.

In managing the ERM System, there is a close

relationship between the Corporate Risk Manager,

business process owner as the Risk Coordinator,

and Internal Audit Unit as the Risk Controller. Risk

management is the responsibility of the business

process owner, so that each business process

owner is responsible for controlling and handling/

mitigating risks in their respective Work Unit.

To support the implementation of the ERM system,

the Company appointed risk officer in every business

process which responsible to manage and monitor

the risks. In addition, staff in the ERM Department

in charge of managing the system is prepared

through several trainings and certifications in risk

management sector (ERMCP and ERMAP).

Organization Structure of ERM System

Risk Owner as Creator

Employee

Risk Owner as Officer

Work Unit Head

Risk Owner as Coordinator

Department Head

Risk Control/Audit

Internal Audit Group Head

Corporate Risk Manager

ERM Department

Risk Sponsor


and consultation process goes according to the

Risk Management Process Guideline. Proactive

dissemination and consultation with risk process

owner periodically, accompanied by system

development, is expected to turn risk management

into a culture that underlies all activities in each

element of the Company.

241



Evaluation of the Implementation of ERM System

The Company periodically evaluates the risk

management system implementation by conducting

a Risk Maturity Level (RML) Assessment. The output

of the RML Assessment is the RML score where the

range of assessment results from the score starts

from 1 to 5. The score level starts from initial (level 1),

repeatable (level 2), define (level 3), managed (level

4), to integrated (level 5).

The risk management system implementation

in 2019 was scored 3.7. This score is obtained

through a series of assessment processes using

the methods such as document inspection,

questionnaire delivery, as well as interviews with

related parties such as the Board of Directors and

Head of Departments.

Score Achievement of RML Assessment in 2019

1

2

3

4

5

Integrity

Managed

Define

Repeatable

Initial

PT Semen Indonesia

(3.7)

Framework of Evaluation for RML Assessment in 2019

0-20% 21-50% 51-75% 76-90% 91-100%

INITIAL

1 2 3 4 5

REPEATABLE DEFINE MANAGED INTREGATED

242



Homepage of ERM System Application of PT Semen Indonesia (Persero) Tbk

Specifically, there were technical changes to the

assessment method of the risk maturity level

assessment process in the period of before and after

2018. Before 2018, the assessment method was

used to assess seven criteria in the Management

Process Risks by ISO 31000: 2009. Whereas for

2018 and 2019, the assessment method included

3 elements contained in ISO 31000: 2018 such

as Principles, Framework and Risk Management

Process.

Notes : N.A (not assessed)

ERM Information System

To anticipate the onset of the Industrial Revolution

4.0 era, the Company seeks to adapt to existing

business competition conditions by making changes

in order to meet market needs so that the Company

can continue to sustain and develop in the future.

The existence of information technology systems in

the application of Risk Management in the Company

is an absolute necessity in the era of the Industrial

Revolution 4.0. Therefore, the Company has built

an information technology system that can improve

the effectiveness and efficiency of the process of

implementing Risk Management in order to create

or maintain the Company's values in each of the

company's future policy decisions.

The Company's Score Achievement of RML Assessment

NoComponents of Risk Management

Implementation

Maturity Value

2011 2013 2015 2017 2018 2019

1 Risk Management Principles N.A N.A N.A N.A 3,28 86%

2 Risk Management Framework N.A N.A N.A N.A 3,7 58%

3 Risk Management Process 3.48 3.70 3.90 4.02 3,92 61%

4 Supporting RM Implementation N.A N.A N.A N.A 3,57 N.A

Total Maturity Score 3,72 3,71 (68,03%)

243



Dashboard view of the Company’s Risk Management Operations

Dashboard view of Risk Management in Work Unit of the Risk Owner1 2 3 4 5

L

C

5

4

3

2

1

1 3

2 1

4

Heatmap (Department of Enterprise Risk Management)

Risk by Level (Department of Enterprise Risk Management) Risk by Status (Department of Enterprise Risk Management)

(Penyelesaian pemutakhiran serta evaluasi : risk register dan mitigation plan 2019) Laporan Pengendalian

Laporan Pengendalian

Jan Feb mar Apr Mei Jun Jul Ags Sep Okt Nov Des

25

22.5

20

17.5

15

12.5

10

RL

Realisasi Target Series 3

Realisasi

L Realisasi : 4

C Realisasi : 4

RL Realisasi : 16

l Low l Medium l High l Extreme l Open l In Progress l Achieved l Closed

High: 8

Extreme: 0 Low: 0

Medium: 3

Achieved: 5

Closed: 0

Open; 2

In Progress: 4

Heatmap by Dampak

Realisasi Pengendalian Risiko by Unit Kerja Realisasi Pengendalian Risiko by All Status

Done (Late): 20

Done (Late) (%): 38

l Upcoming l Late l Done l Done (Late) l Upcoming (%) l Late (%) l Done (%) l Done (Late) (%)

Upcoming: 0Upcoming (%): 0

Late: 5

Late (%): 51

Done: 6

Done (%): 11

Heatmap by All Risk

Tahun

2019

Keuangan

1 2 3 4 5 1 2 3 4 5L L

C C

5

4

3

2

1

5

4

3

2

1

2 1 7 4 1 1

6 8 14 8 17 28 24 28 3

1 5 2 3 10 30 14 17

3 14 11 8 22 63 35 28 2

1 1 6 1 5 3 1

Done Late (%)Jumlah : 38

50050411 - Department of Enterprise Risk Management

244



Appreciation

Year 2019, the Company has received an award for

the implementation of a risk management system

that has been run during the company's operation,

among them got appreciation:

1. Strongest Adherence to Corporate Governance:

Top 3 companies, given by the 9th Annual

Institutional Investor Awards For Corporates

on September 17, 2019 at the Shangri-La Hotel

Singapore.

2. The Big 4 Risk Management 2019. SOE's Public

Company category, given by the Economic

Review at the Indonesia Enterprise Risk

Management Award III 2019 on August 3, 2019 at

Nusa Dua Beach Hotel Bali.

Internal Control System

The Company evaluates the effectiveness of the

implementation of supervision and internal control

on an ongoing basis. The Company also continues

to carry out monitoring and mitigation main risks

Legal Cases of the Company, Subsidiaries, the Board of Commissioners and Directors

In 2017, Giring et al filed a lawsuit against the

Company with claims for land rights that were on

the Company's certified land use rights (HGU) in

Gaji Village, Tuban, East Java.

as part of the activities of internal control and

supervision activities, which are carried out by

operational work units as well as by the Internal

Audit work unit.

Based on the decision of the State Administrative

CourtSurabaya and Surabaya State Administrative

High Court, the lawsuits filed by Giring et al were

rejected. On February 28, 2019, the Supreme Court

upheld the two previous decisions to reject the

lawsuits.

245



Access to Company Information and Data

Administrative Sanctions of The Company

Throughout 2019, the Company did not receive any administrative sanctions related to those

provided by the regulator.

In order to build partnership relationships with all

stakeholders, the Company strives for openness

and ease in accessing company information to

all customers, shareholders and the public. The

development of the Company's performance and

other corporate information such as independent

auditor's reports, annual reports, press releases,

corporate activities and events can be widely

accessed through the Company's official website

www.SIG.id

The Company also accepts questions, suggestions,

criticisms and requests for information by sending

requests in writing to the head office and addressed

to the Corporate Secretary at the following address:

Headquarters:

South Quarter, Tower A, Floor 19-20

Jalan RA Kartini Kav.8, Cilandak Barat South Jakarta

12430, Indonesia

Tel. + 62-21-5261174-5

Fax. + 62-21-5261176

E-mail: [email protected]

The website: www.SIG.id

246



Code of Conduct

The code of conduct is an ethical regulation for the

Company's employees to be carried out in their

daily duties and activities as well as in conducting

business relationships with consumers, business

partners and colleagues. The existence of these

basic rules contained in the Company's Code of

Conduct is one of the Company's commitments

towards the governance principles implementation,

which has been supporting the Company in

achieving its Vision and Mission.

This Code of Conduct Manual is structured to be used

as guidelines to be applied by all employees of the

Company, including the Board of Commissioners,

Supporting Organs of the Board of Commissioners,

the Board of Directors, Management, and all

employees. The Code binds every employee of the

Company and always being updated regularly in

accordance with the development and needs of the

Company.

Every employee of the Company shall sign a

statement of compliance with the Code of Conduct.

Similar to parties with interest to the Company such

as partners, suppliers and others are required to

respect and implement the Code of Ethics while

interacting with the Company.

Code of Conduct Principles

The main points of ethics of Company behavior that

must be fulfilled by Company people, include:

1. Integrity and commitment of the Company's

people

2. Work relations, which are related to a work

environment that is free from discrimination,

harassment, immoral acts, threats and violence

of cooperation between the people of the

Company, superiors and subordinates

3. Compliance with laws and regulations

4. Conflict of Interest and abuse of position

5. Fair employment opportunities

6. Confidentiality of data and information and

information disclosure policies

7. Intellectual property rights

8. The use of electronic communication

9. Insider Information (Insider Trading)

10. Giving and receiving gifts (Gratuities)

11. Donations

12. Bribery

13. Political activity

14. Protection and use of company assets

15. Occupational Safety, Health and Environment

(K3L)

16. Data recording, reporting and documentation

17. Drug abuse, illegal drugs, alcohol and gambling

18. Company image.

Disclosure of Compliance That Code of Ethics Applies to All Organizational Level

The Code of Ethics for the Company applies and is

binding on all Company Personnel and at all levels

of the organization. Every Company Individual must

sign a statement of compliance with the Company's

Code of Ethics. Thus also parties who are interested

in the Company such as business partners, suppliers,

etc. must respect and implement this Code while

interacting with the Company.

247



The Board of Commissioners, Directors and

Employees have signed a commitment to the

adoption of a code of ethics and made GCG

implementation one of the corporate KPIs. In

addition, the Company also always consistently

conducting GCG implementation assessments

conducted by independent parties and the results

of recommendations are always part of the process

of improving the implementation of GCG.

Dissemination and Dissemination of the Code of Ethics

The Company is committed to disseminating,

implementing and monitoring Corporate Ethics

Guidelines whose implementation is coordinated

by the Corporate Secretary, Legal Department,

Enterprise Risk Management and Internal Audit

as an effort to introduce, disseminate information

about the Company's Ethical Guidelines to all

Employees and Company Officials and external

parties Companies with the aim that every individual

understands and understands and can implement

the Guidelines.

Implementation of effective socialization in order to

better understand so as to be able to apply it must

pay attention to the following matters:

1. Disseminating ethical guidelines to company

people

2. Every company employee can download an

electronic copy of the ethical guidelines.

3. Evaluate the achievement or understanding of

Company Personnel both during the orientation

period and the period of work.

4. Periodically review the Company's Ethical

Guidelines in order to develop the Corporate

Ethics Guidelines and if needed can be further

elaborated in various company policies and

regulations.

Types of Sanctions for Each Type of Violation Regulated in a Code of Conduct (Normative)

Number of Code of Conduct Violations and Sanctions in the Last Fiscal Year

Non-compliance with the provisions of the Code of Conduct is categorized as a violation and a crime:

Throughout 2019 there was no case of Code of Conduct violation committed by employees of Semen Indonesia.

Non-Compliance Categories Penalty

Violation Non-compliance categorized as a violation will be followed up with

an Employee Disciplinary Decree or by using the mechanism in the

Whistleblowing Reporting System Guidelines

Crimes

(Crimes include corruption and economic

crimes, and general crime).

Non-compliance categorized as a crime will be followed up in

accordance with applicable laws and regulations

248



Strengthening Corporate Culture

The Company continues to improve understanding

of the corporate culture that has been formed

as the foundation for the Company's work. With

the same corporate culture, it is hoped that the

Company's steps will be more synergistic and can

move together in achieving the vision that has been

set. One such effort is strengthening the CHAMPS

culture.

The CHAMPS culture continues to be strengthened

to all employees as a form of Company employee

identity. This Corporate Culture is a synergy of

the Corporate Culture that exists in the entire

Company and Subsidiaries. The process of forming

a corporate culture began with the awareness that

the Company needed glue to unite the entire Group

of Companies.

The word CHAMPS is a fragment of the English

word "CHAMPION" which has the meaning of a

Gratification and Anti-Corruption Control

The Company has committed to implement

gratification controls (gifts in any form) to support

efforts to eradicate corruption in the company. On

December 3, 2013, this commitment was signed

by the President Director and witnessed by the

Deputy Chairperson of the Corruption Eradication

Committee (KPK). The Company has compiled the

Gratification Control Guidelines as a guide to the

procedures for receiving, giving, rejecting and

reporting gratuities within the company. These

guidelines have been stipulated in the Decree of

the Board of Directors and are always updated in

accordance with the applicable laws and regulations.

winner, while the letter S at the end of the word

CHAMPS denotes more than one person so that

every person in the Company is a winner who will

realize the victory for the Company in the midst of

intense competition faced by the Company.

The company also has a Spirit of SMI (Synergy,

Militant and Integrity) which is divided into 7 keys to

behave, namely:

1. Think openly and prioritize the interests of the

Semen Indonesia Group

2. Collaborate positively and responsibly to

achieve maximum company goals

3. Persistent and agile to give the best results

4. Always implementing new ways of working

better

5. Provide the best service and added value to

internal and external customers

6. Do according to agreement and promise

7. Honest, sincere, and responsible

Gratification in the form of giving and receiving

gifts or other forms such as business/entertainment

parties and others can cause conflicts of interest

and/or decrease public confidence toward the

integrity of the Company.

Therefore, the Company applies ethical standards

to be implemented by the Company’s employees

regarding the giving and receiving of gifts from and

to third parties outside the Company, such as:

1. It is forbidden to accept gifts of any kind intended

to influence decisions that violate existing

provisions and/or cause unfair decision. The

249



Disclosure of the Company's Financial and Non-Financial Statements

The Company has fulfilled its obligations for

transparency and publication of financial and non-

financial conditions in accordance with applicable

provisions, such as through delivery and publication

of information on both printed media and the

Company's website as follows:

1. Quarterly Financial Reports to regulator, which

are also published through printed media and

the Company's website.

2. Semen Indonesia’s Annual Report compiled and

presented in accordance with the provisions and

submitted to the regulator.

3. Corporate Governance information, including

Annual Corporate Governance Report, Vision,

Mission, Corporate Values, Composition and

Profile of the Board of Commissioners and the

Board of Directors, as well as internal provisions

related to governance, from the Articles of

Association to the Charter of Committees, which

are also published in the Company's website.

4. Information about the Company’s Products

and Services, including office networks and

subsidiaries, is published through the Company's

Annual Report and website, so that the public

can easily access information on products and

services provided by the Company.

5. Information about Procedure for Complaint

Submission through the Company's website

for the implementation of consumer protection

provisions.

6. Other information that aims to support the

disclosure of information and services to the

public.

exception to this is accepting promotional items

that include the Company’s logo/name.

2. It is forbidden to give or offer things, directly

or indirectly, to state officials and/or individuals

representing business partners, which can

influence the decision making.

3. The Company provides reasonable gifts/

souvenirs at the Company's expense on the

following condition:

• supports the interests of the Company,

• is not meant as a bribe,

• has been budgeted by the Company,

• should the gifts/souvenirs are in the form of

objects, then the Company logo/name must

be printed on it.

4. The Company’s employees are required to sign a

Compliance Statement every year.

Dissemination on this matter has been carried

out in various programs to foster a culture of Anti-

Gratification and Bribery within the Company and

its subsidiaries. Among others, by conducting GCG

internalization activities, printing gratification control

manuals, printing banners placed in locations that

are easily visible to employees, dissemination

through intranet and print media.

The Company also ask, should there are parties who

are aware of gratification requests and/or reception

from SMI individuals to and/or from stakeholders on

behalf of the person or the Company, to be reported

to the Company via email: [email protected] with

clear identity included in the email.

250



Prevention of Insider Transactions

In the Code of Conduct, the Company has explained

about insider Trading, whereby the Company’s

employees are not permitted to misuse their

position and work to disclose material information

that can influence investors’ decision.

Material information is information that has not been

widely published that may encourage a person to

buy, sell, or hold the Company’s shares.

Ethical Standards that must be considered are:

1. The Company’s employees and parties who

obtain information from insiders are not allowed

to trade shares and other securities issued by the

Company, either directly or through the mediation

of others, as long as material information has not

been published.

2. The Company’s employees are not allowed to

use information or material facts that have not

been made public to gain benefits from the

information.

3. The Company’s employees must maintain

confidentiality of known material information.

Provision of Funds to Related Parties

The Company provides donations only for the

Company's responsibilities to the surrounding

environment and other purposes that are not related

to politics nor affecting the Company's business

interests. All donations given by the Company

can be justified and in accordance with applicable

provision. Therefore the Company requires that

any donation serves as aid must always initiated by

proposal submission to the Company. Donations for

other purposes should only be made in accordance

with applicable laws and regulations.

Provision of Funds for Social and Political Activities

The Company does not use the Company’s funds, assets or profits for political donation purposes, which is stated

in the Company’s Code of Conduct No. 7C of Article 11 regarding Donations.

251



Whistleblowing System

To improve the quality of transparency, accountability

and fairness in the implementation of GCG, Semen

Indonesia implements a Whistleblowing System (WBS)

that can accommodate all complaints, complaints and

reports from internal and external parties.

The Company classifies violations into three types of

violations, with different handling, viz.

1. Category I (Corruption and Economic Crimes)

a. Criminal acts in the form of criminal acts of

corruption, which either benefit oneself or other

parties, fraud, abuse of authority related to the

management and use of Company owned funds

(financial fraud), bribes, gratuities and conflicts of

interest committed by Company Personnel.

b. Violations of accounting principles and

processes and capital market authority

regulations regarding financial statements,

violations of taxation provisions and other similar

provisions, fraudulent actions or any actions that

The mechanism for handling violations reporting

consists of four main elements, namely:

1. Violation Reporting Management Team (TP3),

tasked with:

- Receive, record (register) and classify violation

reports based on reported categories.

- Implement the whistleblower protection

program in accordance with established

policies, including maintaining the

confidentiality of whistleblowers and reported

(presumption of innocence).

- Maintain regular communication with the

Reporter.

- Reporting progress reports (activity report)

every 6 months to the Board of Commissioners.

2. The Investigation Team, consisting of the Internal

Investigation Team, the External Investigation

Team and the Investigation Team of the

Company WBS Structure and Mechanism

could give rise tofinancial losses for companies

and or other parties committed by the Directors

and / or Board of Commissioners.

2. Category 2 (Crimes related to general crime)

Various forms of criminal / criminal acts as regulated

in the Criminal Code and other laws and regulations,

including but not limited to theft, use of violence

against employees or leaders, extortion, drug

use, harassment, and other criminal acts including

actions that endanger safety and health, work

security the company, and the life of the community

and the environment carried out by Company

Individuals

3. Category 3 (Violations related to Company policy)

All violations other than corruption and economic

criminal offenses, as well as general criminal acts

are regulated in the Company Ethics Guidelines

and in various policies and regulations / operational

procedures of the company, as well as Employee

Discipline Policy conducted by Company Personnel.

subsidiary. Its task as a whole is to conduct further

investigations of the substance of the violations

reported with the aim of finding and gathering

the evidence needed to ensure that the violation

has occurred.

3. The Board of Commissioners, with the main tasks:

Selecting, confirming (in terms of categories

of types of violations, who committed and

completeness of the documents) and verification,

and deciding whether the report will be followed

up or archived for violations committed by

Members of the Board of Commissioners,

Directors and Supporting Organs of the Board

Commissioner.

If the violation report is decided to be followed

up, the Board of Commissioners:

- Assign an Investigation Team to carry out an

investigation, if the violation is committed

252



The WBS Guidelines also explain the reporting

procedures and procedures for handling violations,

complete with the scheme the method of reporting

in accordance with the alleged reported. Reporting

violations can be done through the following

channels:

Submission Mechanisms for Violation Reports

Letter:

Violation Reporting Management Team (TP3)

South Quarter, Tower A, Floor 19-20

Jalan RA Kartini Kav.8, Cilandak Barat

South Jakarta 12430, Indonesia

Tel. + 62-21-5261174-5

Fax. + 62-21-5261176

Telephone :

+62 - 031 - 3981732 ext 3132 and/or 3026

Email :

[email protected]

PO Box :

Box 5000

The Company is committed to protecting

whistleblower protection in good faith and the

company will comply with all relevant laws and

best practices that apply in the implementation of

violation reporting systems.

Employees who report are in good faith will be

protected from acts of dismissal, demotion or

harassment, harassment or discrimination in any

form and adverse records in their personal data

files.

The Company provides sanctions for misuse WBS

and confirmed that the parties (good internal

or external) who submit reports in the form of

defamation or false reports will be sanctioned

including legal proceedings and not obtain either a

guarantee of confidentiality or Reporter protection.

The Company guarantees the confidentiality of

the whistleblower's identity, unless the disclosure

is required in connection with a report or an

investigation conducted by the authorities. The

Company even gives appropriate awards for reports

that are proven true and when the reporter is not

involved in them.

Protection for Whistleblowers

by Members of the Board of Commissioners

(individuals), Directors and Supporting Organs

of the Board of Commissioners, or

- Recommend to the Directors (as the

Shareholders of a subsidiary) to follow up

through the investigation process, if violations

are committed by the Board of Commissioners

and Directors of the subsidiary.

4. Directors, with the main tasks:

- Conduct selection, confirmation (in terms

of categories of types of violations, who

committed and the completeness of the

documents) and verification, and decide

whether the report will be followed up

or archived for violations committed by

employees.

- The Board of Directors has the authority to

assign the Investigation Team to carry out

investigations related to violations committed

by the Board of Commissioners, Directors and

Employees of Subsidiaries

253



No Information Practice

1 Reports on the activities of companies that pollute the environment Nothing

2 Fulfillment of tax obligations Nothing

3 Compliance of the presentation of annual reports and financial statements with

regulations applicable and financial accounting standards (SAK)

Nothing

4 Cases related to workers and employees Nothing

5 Disclosure of operating segments Nothing

The Handling of Complaints

The procedure and handling of alleged violation

reporting is carried out in accordance with the

mechanism stipulated in the violation reporting

system guideline, namely the mechanism of the

management of reporting violations allegedly

carried out by:

1. Employee

2. Directors, Members of the Board of Commissioners

(Individual) and Supporting Organs of the Board

of Commissioners

3. Company Board of Commissioners

4. Directors and Board of Commissioners of

subsidiaries

5. Employees of subsidiaries

6. Complaints related to the accounting process and

financial reporting of issuers or public companies

The Party That Manages Complaints

The Board of Directors is responsible for the

implementation of the violation reporting system in

the Company and the Board of Commissioners is

responsible for overseeing the implementation of

the system. Directors and Board of Commissioners

together form a violation reporting organization

in the Company. This organization is centralized

including the management of whistleblowing in the

Company and in subsidiaries

Number of Complaints Received and Processed in the Last Fiscal Year

During 2019, there was no report of alleged violations submitted through the WBS mechanism.

Complaint Sanctions/Follow Ups Processed in the Fiscal Year

Throughout 2019, there was no sanction nor follow-up report to be submitted on this report as there is no report

submitted through the WBS mechanism.

Transparency of Bad Governance Practices

The implementation of Good Corporate Governance

at Semen Indonesia is continuously improved

from year to year by making many improvements

and changes in policies that are adjusted to the

conditions of the Company and economic conditions.

SI is aware of bad corporate practices governance

will disrupt the Good Governance (GCG) system that

has been built, therefore the Company does not take

any actions that are contrary to the rules and policies

related to GCG shown in the following table:

CORPORATE SOCIAL RESPONSIBILITY

6

256



Commitment of Corporate Social Responsibility Implementation

As a good corporate citizen, Semen Indonesia

believes that running good business activities

includes responsibility and care for key stakeholders,

especially the community, both around the

Company's operational environment, and in other

regions throughout Indonesia. Therefore, the

Company is fully committed to aligning business

with the provision of benefits to society and the

environment as part of the Company's stakeholders.

In line with this commitment, the Company is also

committed to the success of the United Nations

(UN) resolution on 21 October 2015 on Sustainable

Development Goals (SDGs). This resolution was

declared by various countries as a joint development

ambition by 2030. The SDGs consist of 17 goals with

169 measurable achievements and deadlines set

by the United Nations as the global development

agenda for the benefit of the people and the earth.

Semen Indonesia is committed to succeeding this

resolution in accordance with its capacity. The

National Development Planning Agency (Bappenas)

also continues to push for achieving SDGs, which

are simplified into 4 main pillars:

Pillar of Social Development, Pillar of Economic

Development, Pillar of Environmental Development

and Pillars of Legal and Governance Development.

This commitment is implemented through the

Corporate Social Responsibility (CSR) program with

a focus on meeting the expectations of stakeholders

through implementation of various programs, with

the aim to balance achievements in economic

performance with social and environmental

sustainability, or the fulfillment of the tripple bottom

line concept, including employee development and

customer protection.

In addition, as a State-Owned Enterprise (SOE) that

should always in line with the government’s vision,

Semen Indonesia has a role in implementing Social

Responsibility into all layers, particularly in relation

to the role of SOEs as Agents of Development.

For employees as internal stakeholders, the

Company must pay attention to their welfare and

provide working environment that supports the

development of each employee. For the community

as external stakeholders, the Company carries out

various social community development activities —

specifically through the Partnership and Community

Development Program.

257



Vision and Mission of Semen Indonesia’s CSR

In order to implement the CSR program in a more targeted manner and achieve the desired goals, the

Company has compiled the vision and mission of Semen Indonesia’s CSR:

As an SOE, SIG has a big vision to become the

largest provider of building material solutions in the

region, with one of its missions to focus on creating

environmental conservation and sustainable social

responsibility. Therefore, SIG is not only pursuing

financial benefits for the Company, but also to

provide positive benefits in the aspects of social,

economic and environment for the nation.

SIG is has a sustainability commitment to become

a pioneer in the building materials industry that

empowers stakeholders to create sustainable living

for the future. The Company's commitment to create

a sustainable living is manifested in four pillars of

sustainability, including:

1. Sustainable Economic Growth;

2. Climate and Energy;

3. Circular Economy;

4. People and Community.

Vision

Mission

To be a CSR manager that focuses on sustainable environmental conservation and social responsibility, thus providing added values for stakeholders.

• Carrying out the CSR programs based on the principle of triple bottom line harmonization (Profit, Planet, People) and SDGs Concept.

• Realizing a CSR management towards a Good Corporate Citizen.

• To reach a level of an ethical & responsible company.

• To contribute significantly to prosperous society and high environmental awareness.

• To gain support from the stakeholders and environment for the smooth operations of the company (Social License to Operate).

Strategic Objectives

258



2 0 2 4Commitment to Sustainability

We strive to continue our

innovation to create sustainable

solutions and to strengthen the

supply chain

• Providing sustainable solutions

with innovative products

and services to mitigate the

increasing demand for limited

resources

• Enhancing the supply

chain and developing

of sustainableoriented

partnership with strategic

partners

• Increase the revenue

proportion from sustainability

solutions every year

• Enforce strategic partner

screening using sustainability

criteria established by the

Company

Commitment

Strategy

2024

Target

SDGs

Sustainable Economic Growth

We will continue to support

Indonesia’s commitment to

COP21 (2015) to reduce GHG

emissions in 2030 by 29% by

independent efforts, or

41% with international

assistance

• Reduction of greenhouse

emissions (CO2)

• Significant reduction of air

emissions (dust/particles,

NOx, SOx)

• Reduction of energy

consumption

• Reduce 16% emission of

CO2 of 1 specific coverage

(per cement equivalent)

using the 2010 baseline

• 67% of clinker factor

• 15% of Thermal

Substitution Rate

Strategy

2024

Target

SDGs

Climate and Energy

Commitment

259



We are committed to use all

materials in a responsible

manner

• Using raw materials

efficiently through

product development

• Utilizing renewable

resources (made from

waste) as alternative

fuels

• Utilizing 1.8 million tons

of waste as alternative

fuels

• Utilizing 1.9 million tons

of waste as alternative

raw materials

Strategy

2024

Target

SDGs

Circular Economy

As we value our people

and community highly, we

implement good corporate

governance and ensure

proactive stakeholder

management

• Promoting health and

safety for employees

and contractors

• Creating shared values

for community

• Zero Fatality

• LTIFR ≤ 0.90

• A total of 73,000 people

benefited through

partnership program

(PK), cumulative since

the program began

Strategy

2024

Target

SDGs

People and Community

To become a pioneer in building materials industry

that empower stakeholders to create a sustainable

living in the future

Commitment Commitment

260



Environmental Conservation Responsibility

Policy

The Company’s commitment to environmental

preservation is outlined in the Environmental Policy,

which confirms that: “In carrying out its business

activities, the Company manages the environment

to anticipate the effects of global warming,

including efforts to reduce air pollution; reduction

and utilization of hazardous and toxic material

(HTM) and/or non-HTM waste; water conservation;

biodiversity protection; and energy efficiency.”

The Company carries out the mandate of

the regulations as stated in Law No. 32 of

2009 concerning Environmental Protection

and Management as well as related laws and

environmental obligations. Therefore, every

operational step in the field is always carried out by

adhering to the items as stated in the EIA, UKL and

UPL document which are both prerequisites and

parameters agreed upon by all stakeholders prior

to operational activities.

Targets and Plans

The Company is committed to ensure that what

we have managed today can provide sustainable

benefits for all Indonesian people and stakeholders,

both today and in the future.

As a manifestation and commitment of the Company

in realizing sustainable environmental management,

the Company has made various efforts, ranging

from the establishment of policies and regulations,

to the monitoring and management of operational

activities which are affecting the environment both

within and the surrounding area of the Company.

Various strategic initiatives have been carried

out in order to conserve resources, including

the concept of environmentally friendly mining,

creating a greenbelt area around the mine, utilizing

other industrial waste as alternative raw materials,

efficient usage of water by optimizing the utilization

of mined surface water, increasing the use of

alternative fuels by using biomass and hazardous

waste, implementing energy management systems,

reducing CO2 gas emissions, reclamation and

revegetation of post-mining lands, conservation of

biodiversity by conserving rare flora and fauna in

post-mining areas, as well as utilizing post-mining

land for agricultural irrigation, aquaculture and

tourism facilities.

The Company has established routine

environmental monitoring activities, combined with

monitoring of production aspects as outlined in SI

Ramah. This routine monitoring includes monitoring

environmental aspects such as monitoring of

greenhouse gas emissions, air emissions and

waste management. In addition, the Company also

continues to strive for efficiency in terms of energy

usage, especially fossil energy, one of which is

done by using alternative fuels.

Environmental Monitoring and Management

261



Greenhouse Gas Emissions (GRK)

In cement production process, there are activities

such as burning limestone and using coal in the

process of making clinkers. The process produces

direct GHG emissions. Thus, the Company monitors

GHG emissions generated through calculation

based on WBCSD CSI Version 3 every once a year.

The main strategies of Semen Indonesia Group in

reducing carbon emissions are as follows:

1. Increasing Energy Efficiency

2. Switching to Low Carbon Fuels

3. Reducing the Clinker-Cement Ratio

4. Improving Technological Processes and

Innovations

The Company has set a target to reduce emission

intensity (GHG) on coverage 1 to reach 595 kg CO2/

ton cement equivalent, or equivalent to a decrease

of 16% in 2024 compared to the baseline in 2010.

The commitment to reduce emission is included in

all of the Company's operations in Indonesia. The

Company calculates GHG emissions based on

the WBCSD Cement Sustainability Initiative (CSI)

Version 3.

Total GHG Emissions and Emissions Intensity

Air Emissions

The Company realizes that minimizing air emissions

has an effect in reducing negative impacts on

climate change and has a positive impact on

maintaining the health and safety of employees

and communities around the Company's work area.

Therefore, the Company is committed to adhere

to quality standards according to the Minister of

Environment and Forestry Regulation No. 19 of 2007

concerning Quality Standards for Cement Industry

Businesses and/or Activities, and is committed to

continue efforts to manage air emissions produced

by all of the Company's factories.

The Company carries out measures for air pollutant

emissions (dust/particulate, NOx, SOx) consistently

using the Continuous Emission Monitoring System

(CEMS). In addition to periodic monitoring and

measurement, the Company has several strategies

to reduce air pollutant emissions:

• Managing quality standards for coal and certain

raw materials and measure air pollutant emissions

regularly.

• Installing electrostatic precipirators, cyclones,

conditioning towers and bag filters in our plants

to manage dust emissions.

These initiatives have succeeded in reducing total

dust/particulate emissions, annually. The Company

continues to reduce NOx and SOx emissions to

achieve our target in 2024.

GHG Emissions Unit 2019 2018 2017

The total scope 1 GHG emissions tons of CO2 27,959,111 21,589,455 20,654,528

The total scope 1 GHG emissions tons of CO2 2,601,828 2,611,944 2,539,845

Total GHG emissions scope 1 and 2 tons of CO2 30,560,939 24,201,399 23,194,372

Scope 1 GHG emissions intensitykg CO2/ ton cement

equivalent634 667 696

Scope 1 GHG emissions intensity and 2

kg CO2/ ton cement equivalent

693 748 781

Scope 1 GHG emissions intensitykg CO2/ ton

cementitious material640 689 705

GHG emissions intensity scope 1 and 2

kg CO2/ ton cementitious material

700 773 791

262



Total Air Emissions

Energy Efficiency

The Company seeks to continue on reducing the

energy usage, especially fossil energy. One of the

steps taken was the annual regular internal energy

audits and external energy audits every three years.

In 2019, an external energy audit was conducted

by PT ISBI (Institut Semen & Beton Indonesia)

which produced several recommendations for the

Company.

Total energy consumption within the Company

reached 125,903,072 GJ, an increase of 22 percent

from the previous year due to merger of PT Solusi

Bangun Indonesia in 2019. This calculation includes

self-produced energy and purchased energy for

the production process. In energy calculation, heat

energy is calculated based on the amount of fuel

usage multiplies by the calorie value (NHV) of each

fuel, then totaled for all types of heated fuel. As

for electricity, the electricity index multiplies by the

amount of cement production, then converted from

kwh to GJ.

Energy Consumption within the Company

Use of Alternative Raw Materials

One of the Company's commitment manifestation

to environmental preservation is the utilization of

industrial waste as an alternative raw material. The

use of alternative raw materials has double meaning

for the Company, in addition to being a saving key

raw materials and helping prevent further pollution

of hazardous waste produced by other industries.,

the use of alternative materials in the form of other

industrial waste, also generates other revenues for

the company.

The various alternative raw materials routinely used

by the Company are: bottom ash, fly ash, dust EAF,

steel slag, COCS, spent bleaching earth, drilling

cutting and paper sludge. The volume of alternative

raw materials used by the Company continues to

show increase each year.

In 2019, the Company's products used 1,659,627

tons of alternative materials as a substitute for

clinker. The Company has succeeded in reducing

the clinker factor from year to year and continues

the ambition to reduce the use of clinker factor

through various initiatives to increase the use of

alternative materials.

Air Emissions Unit 2019 2018 2017

Dust/particulate ton 3,206.97 3,006.62 2,475.08

NOx emission ton 22,914.64 17,137.37 14,707.77

NOx emission ton 6,194.08 2,388.02 2,426.65

Business Unit UnitSatuan

2019 2018 2017

Total Energy Consumption GJ 125,903,072 98,186,913 94,591,473

263



Increased Use of Alternative Fuels

In addition to alternative raw materials, the Company

has been using alternative fuels as well, some of

which are obtained from other industrial wastes,

such as biomass and hazardous waste. Biomass

used includes rice husks, cocopeat, tobacco

plantation waste and cigarette waste. Whereas the

hazardous waste used includes oil sludge, used oil,

resin, used filter bags, used rags, and Impregnated

Biomass.

The Company utilizes agricultural production

(biomass) waste such as rice husks, sawdust,

cocopeat and tobacco waste as alternative fuels in

the burning process of clinker cement. This effort

aims to manage energy, reduce CO2 emissions,

receive the CER-CDM Project, as a solution for

agricultural waste handling in the plants' surrounding

environment, so as to create an environmentally

friendly plant, and supporting the government

programs related to global warming. In 2019, the

total volume of AFR usage reached 232,904 tons.

Waste Management

The Company's operations produce various types of

waste, ranging from domestic waste to hazardous

waste. The Company has a comprehensive waste

management system. For hazardous waste,

the Company already has a hazardous waste

management permit from the Ministry of Environment

and Forestry, through Letter No. 281 of 2016. Several

types of hazardous waste such as used oil, used

waste, and used filter bags are utilized as alternative

fuels and 'used refractories' as alternative raw

materials by co-processing methods.

Solid hazardous waste that cannot be reused such

as used batteries, used TL lamps, toner/cartridge,

and chemical bottles are handed over to licensed

third party approved by the Ministry of Environment

and Forestry. Non-hazardous waste category

consists of domestic waste, damaged material, and

used goods (avfal). The Company reuses domestic

waste into alternative fuels in kilns. Non-hazardous

metal solid waste is generally reprocessed by third

party to be recycled as other metal goods.

Waste Management Methods Hazardous Non-Hazardous

Waste for reuse Palette from overhaul activities

Recycled waste as alternative raw materials • Fly Ash• Bottom Ash• Copper Slag• Crude Oil Contaminated Soil

(COCS)• Drilling Cutting Cement (DCC)• Spent Bleaching Earth • Paper Sludge• Used refractories (used oil filters,

used refractory stones)

Rejected materials or products, dust return

Waste to be processed into compost (composting) Dry leaves from the plant's garden and forest

Waste for energy recovery as alternative fuels • Sludge oil• Sludge WWTP• Spent Bleaching Earth • Used lubricating oil• Used waste• Used filter bags

• Biomass• Paper craft (rejected package due to broken

bags, craft waste from customers)• Domestic office waste (paper and plastic)• Dry leaves from the plant's park and forest

Waste for mass combustion (incineration) • Clinical waste• Pharmaceutical product packaging

Waste discharged to landfills Clinker material or freelime products from the cooler unit

264



Storage Facility for Waste Production and Utilization of

Biomass for Alternative Fuels

265



Company Complaints Received Complaints Resolved

Business Unit Tuban 1 1

PT Semen Padang 2 2

PT Semen Tonasa 0 0

PT Semen Gresik 6 6

PT Solusi Bangun Indonesia Tbk 0 0

Total 9 9

Completion Status of Complaints Concerning Social and Environment

Complaints Mechanism for Environmental Issues

SIG understands that every business process

has the potential to get complaints from the

surrounding communities, both regarding social

and environmental issues. Therefore, the Company

opens communication channels for the public

to sent their complaints if they have social and

environmental issues within the vicinity of the

Company's operational area. Every complaint will

be followed up by the Public Relations function in

accordance with the Standard Operating Procedure

(SOP) mechanism for conflict resolution. During

2019, SIG received 9 complaints, all of which were

successfully resolved.

Complaints Received and Recorded

Coordinating with related Work Unit

Persuasive Approach and Visits

Resolved

Fail or Success Handover to the Authorities

266



Social Responsibility for Labour and Occupational Health & Safety

Semen Indonesia strives to be a company that

abides by principles and rules, including in terms

of employment, health and safety. The Company

strives to comply with all applicable laws and

regulations. The Company pays attention and

high commitment in terms of gender equality and

employment opportunities, job trainings to improve

employee professionalism, commensurate reward

system as well as health and safety system for all

employees.

Employment

The Company strives to create harmonious industrial

relations with all employees. Therefore, building

a work relationship with employees are based on

the principle of mutual respect and compliance with

the rights and obligations of each party. The Law

No. 13 Year 2003 concerning Manpower became

the basis for Semen Indonesia policy in the field

of manpower. The Company fulfills the employees'

normative rights as regulated by the Act.

Gender Equality and Equality

The Company grants everyone the same right to

participate in the recruitment process carried out by

the Company while fulfilling specified administrative

requirements, regardless of gender, ethnicity, race

and religion. The recruitment process is carried out

openly for the purpose of equity and openness.

The Company also provides equal opportunities to

every employee who has been recruited to develop

their competence and career in accordance with

the needs of the Company.

At the end of 2019, the number of employees of

the Company was 7,769 people, of which 6,990

employees are males and 779 are females. Although

the composition of the Company's employees is

dominated by men, it is generally caused by the

character of the industry that is run by the Company,

which is more in line with the male groups.

Employee Welfare

The Company provides appropriate remuneration

and benefits to employees in an effort to provide

better welfare for them. In terms of remuneration

and benefits for employees, the Company refers

to applicable statutory provisions, including the

Provincial Minimum Wage (UMP).

267



In addition to remuneration, the Company also provides numerous benefits to employees as an effort to improve

employees’ welfare. Additional benefits provided by the Company are as follows:

Benefit

Type of FacilitiesEmployment Status

Permanent Employee Contracted Employees

Basic Salary Provided Provided

Health Allowance Provided Provided

Life Insurance Not Provided Not Provided

Work Accident Allowance Provided Provided

Maternity Leave Not Provided Not Provided

Pension Allowance Provided Not Provided

Pension Guarantee of Employement BPJS Provided Provided

Tax Allowance Provided Provided

Social-Religion Allowance (Baznas) Not Provided Not Provided

Death Allowance Provided Not Provided

Parental Leave Not Provided Not Provided

268



Competence DevelopmentThe Company provides equal opportunities to all

employees to take part in competency development

programs that are carried out in accordance with

the needs of the Company. In addition to supporting

the performance of the Company, this competency

development program is carried out to increase

employee capacity and career development.

In 2019, the Company organized various training

programs that were attended by 10,154 participants,

both in-house and third parties. To support the

competence development program, the Company

has also completed various facilities, including

the Learning Center and learning with e-Learning

methods.

Complaint Mechanism for Employment IssuesFor issues related to employment, employee has

the right to submit complaint to their superiors or to

the Human Capital Division. Complain resolution is

completed in stages through employee superiors

with a Bipartite mechanism. Should the resolution

up to the level of the Bipartite mechanism does not

reach an agreement, then the resolution will use a

mechanism in accordance with applicable laws and

regulations.

Occupational Health & Safety (OHS)The Company has established a fundamental policy

on Occupational Safety and Health, which reads

“Occupational Safety and Health is the responsibility

of all parties, therefore the Company and related

parties are determined to create a healthy work

environment, prevent the occurrence of occupational

diseases, injury free and carry out operational

activities according applicable rules”.

Best practices implementation for occupational

safety, security and health, are carried out to

support the creation of a safe and healthy working

condition for every employee, as well as a realization

of our commitment to create an eco-friendly work

environment.

The Company continues to improve employee safety

awareness by referring to applicable regulations

regarding OHSMS implemented since 2007, OHS

standard system of OHSAS 18001: 2007, and accident

prevention programs in the 5R program and the

Suggestion System. In addition, the Company also

implements Standard Operating Procedures (SOP)

for Safety, Health, and Environment (SHE) to achieve

zero accident target.

In addition, the Company has also implemented a

Contractory Safety Management System (CSMS)

which is intended to determine the performance of

work units within the Company and work partners or

third-party contractors, in implementing SMK3.

In accordance with the required Occupational Safety

and Health implementation standards, the Company

routinely carries out safety committee meetings

both with related work units and with partners/

mining contractors. Regular meetings aim to remind

all parties to continue to implement all provisions

relating to Occupational Safety and Health.

OHS OrganizationThe Company has formed P2K3 (Occupational

Safety and Health Advisory Committee)/SC (Safety

Committee) as a forum for employee participation in

the implementation of OHS in the workplace. The main

task of P2K3 as an auxiliary body in the workplace is

to provide suggestions and considerations, whether

requested or not, to the employer/administrator

of the workplace concerned regarding issues of

occupational safety and health.

In its implementation, P2K3 members at each

Operating Company of Semen Indonesia

represented all (100%) permanent employees in

submitting proposals, inputs, and criticisms related

to the implementation of Occupational Safety and

Health. The total representation of employees in

P2K3 in each Operating Company varies, for 2018,

the intended representatives are: at PT Semen

Gresik 28 representatives, at PT Semen Padang

27 representatives and at PT Semen Tonasa 30

representatives, so the total representation in SIG is

85 people.

Employee HealthThe Company pays great attention to aspects of

employee health. One of the steps taken was to

provide healthcare facilities and physical fitness

for employees. In addition, the Company also

encourages the creation of a healthy living culture

through the provision of sports facilities, sports

competitions, and facilities to join activities at certain

sports clubs.

269



The Company also has a comprehensive medical

check-up (MCU) program for all employees every

once a year for early detection of illnesses, as

well as medical treatment if needed. Medical for

employees, including physical examination, physical

fitness, laboratory, EKG, spirometri, audiometry,

x-ray, and dental and eye examination. Employee

MCU results are sent directly to each employee’s

e-mail. If abnormalities are found in the results of

the employees’ MCU will be summoned to consult

the doctor. On the other hand, each member of

Semen Indonesia Group provides health clinics as a

means of treating sick employees due to work. If the

employees need medical procedure that cannot be

done at the clinic, they are referred to the nearest

hospital, such as employees of Semen Padang will

be referred to Semen Padang Hospital, Semen

Tonasa to Regional General Hospital (RSUD) of

Pangkep and other hospitals in Makassar City, RSUD

Blora for Semen Gresik, and Semen Gresik Hospital

for Business Unit Tuban.

Prevention ProgramThe Company continuously strives to improve

employee safety awareness by referring to

applicable regulations regarding OHSMS.

Employees are required to fulfill all provisions

relating to OSH governance and can refuse to work

if the conditions are considered to endanger work

safety. In addition to regulating OSH aspects through

the agreement, the Company prevents incidents of

work accidents through the implementation of the

following programs: Brief, Neat, Clean, Care and

Diligent assessment program conducted every

three months;

OHS Performance of the Company Unit 2019 2018 2017

A. Employees

Total Fatality Incident 0 0 1

Lost Time Injury Frequency Rate (LTIFR) Rate 1.16 1.28 1.60

B. Contractors

Total Fatality Incident 0 - -

Lost Time Injury Frequency Rate (LTIFR) Rate 0.70 - -

• Internal audit program by Internal Audit and external

audit by the certification body once a year;

• Establishment of a Safety Officer team and

independent OHS activities of the work unit;

• Conduct safety talk once a week in work units;

• Increasing P2K3 work unit activities through

appointment of OHS Ambassadors;

• Increase employee knowledge/competency

through General OHS Expert Certification, Boiler

Operator Certification.

OHS trainingTo support target achievement for the establishment

of a safe, comfortable and free from accident in the

working environment, one of the steps taken by the

Company was by carrying out a number of trainings

related to Occupational Health and Safety.

Occupational Health and Safety Facilities In addition to conducting training, the Company also

strives to create a healthy, safe and comfortable work

environment by providing facilities and equipment to

prevent work accidents, such as:

• APAR

• First Aid Box

• Health Clinic (in the plant environment)

• Evacuation Pathways

OHS Performance in 2019OHS aspect performance is measured through the

achievement of work accident frequency parameters

and severity index, as well as the number of hours/

days lost due to work accident incidents.

The work accident statistics of the Company for the

past 3 years are as follows:

Note: In 2017 and 2018, we have not recorded the contractor's calculations.

270



Social Responsibility for Community Development

In good corporate citizen concept development, the

Company is fully aware that its existence is part of

the community. The business growth achieved by

the Company so far cannot be separated from the

community participation. To that end, the Company

pays great attention to social development that

is manifested in various CSR and PKBL activities

related to the socio-cultural community.

Implementation of corporate social responsibility

in social aspects is directed at programs that

are empowering and providing benefits to the

community at the sites around the Company's

operations, especially the micro, small and medium

enterprises (MSMEs) as well as people who are in

the category of economically disadvantaged.

The Company implements CSR programs through

the Partnership and Community Development

Program (PKBL) as stipulated in the Minister of SOEs

Regulation No.Per.09/MBU/05/2015 concerning the

Partnership Program for State-Owned Enterprises

with Small Businesses and the Community

Development Program.

In addition, the Company also took part in a program

run by the Ministry of SOEs, SOEs for the Nation

(BUMN Hadir Untuk Negeri).

Policy

CSR Strategic Objectives 2019

The Company's commitment to the implementation

of corporate social responsibility programs cannot

be doubted. This commitment is even mentioned as

one of the Company's mission, which is "Focusing

on the environment preservation and sustainable

social responsibility".

The Company embodies a community welfare

enhancement program with reference to Law

No.40/2007 and Government Regulation no.

47/2012, as well as Law No.25/2007 on Investment.

As a stateowned enterprise, we also implement

the Regulation of the Minister of State-Owned

Enterprises Number: PER-09/MBU/07/2015 jo. PER-

03/MBU/12/2016 jo. PER-02/MBU/07/2017 on the

Partnership and Community Development Program

of State-Owned Enterprises.

In order for the realization of all these activities to

provide optimal benefits in accordance with the

availability of funds, the allocation of funds was

prioritized to Ring I areas of operational activities as

the areas most affected by the Company’s business

activities. The realization of these programs is the

result of Pilar SI Peduli.

Ensuring & Creating Sustainable Environmental &

Social Responsibility, through:

• CSR activities that oriented on sustainable

environment;

• Conducting Community Involment &

Development (CID) activities.

271



CSR Program Management

Responsible for managing CSR in Semen Indonesia

under the CSR Department, which is part of the

Corporate Secretary. Based on the Decree of the

Board of Directors of PT Semen Indonesia (Persero)

Tbk. SKD No.60/Kpts/Dir/2018 dated 28 December

2018 concerning the Organizational Structure of

the Company, the composition of the SI’s PKBL Unit

Description 2019 2018 2017

Social & Environmental Responsibility 93,920.0 73,410.0 133,725.3

Partnership Program *) 5,350.0 77,548.0 77,625.8

Community Development Program 54,010.0 23,692.3 59,128.7

Total 153,280.0 174,650.3 270,479.8

in million rupiahCSR Program

Management is effective since 1 January 2019. The

CSR Department is an organizational structure that

manages the function of Partnership and Community

Development Program, CSR Planning and Evaluation,

CSR reporting and financial management, as well

as management of the SOEs for the Nation (BUMN

Hadir Untuk Negeri/BHUN) Program.

CSR Budget

As a tangible manifestation of the Company's

commitment to support the realization of SDGs in

Indonesia, the Company provides a special budget

for CSR and PKBL programs implementation. The

amount of the CSR budget determined by the

Company is very dependent on the work program

plan of the CSR Department by considering the

Company's financial capability.

The amount of the Company's CSR budget for the

past 4 years were as follows:

Supervisor 1 : President DirectorSupervisor 2 : Corporate SecretaryPerson in Charge : Department of CSRChief Executive : Head of Partnership & Community Development Program BureauExecutors : All functions in the CSR Department

President Director

Corporate Secretary

CSR Planning & Evaluation Bureau

The Partnership & Community Development

Program

Staff Staff

Department of CSR

272



Partnership and Community Development Program

The Partnership and Community Development

program is implemented in accordance with the

provisions of the SOE Minister Regulation No: PER-

09/MBU/07/2015 related to PER-03/MBU/12/2016

related to PER-02/MBU/07/2017 concerning the

State-Owned Enterprise Partnership and Community

Development Program. As one of the leading SOEs,

the Company realizes the PKBL program as one of

the programs aiming to improve the standard of living

and welfare of the surrounding community through

activities in developing economic competencies

and social life. Through the Partnership Program,

the Company provides business capital loans

intended to empower micro, small and medium

enterprises and cooperatives (MSMEs). While

through Community Development activities, the

Company provides assistance to improve the quality

of life of the community through the construction of

public facilities and infrastructure, as well as social

assistance to victims of natural disasters.

Partnership Program

In 2019, there was a fundamental change in the

implementation of the Partnership Program. Starting

1 January 2019, the Company will not channel

funds through partnership programs to fostered

partners. Distribution of partnership funds in 2019

is conducted through a grant program to a Special

SOE appointed by the Ministry of SOEs, PT PNM.

In 2019, the Partnership Program funds channeled

by the Company to PT PNM was amounted to Rp5

billion.

In accordance with the policy, in 2019 the focus

of the Company's Partnership Program is on the

withdrawal of current receivables from the fostered

partners and undertake collection efforts through

several mechanisms such as rescheduling, interest

abolishment, etc. to the non-current, doubtful and

non-performing fostered partners.

Until the end of 2019, collection of receivables from

fostered partners was amounted to Rp56 billion

from the target of Rp58.5 billion.

Community Development Program

In accordance with the provisions of the SOE

Minister Regulation above, there are 7 types of

activities carried out in the context of implementing

the Community Development Program, namely:

Natural Disaster Aid, Education/Training Assistance,

Health Improvement Aid, Development of Public

Facilities/ Infrastructure, Worship Aid, Nature

Conservation Aid and Social Community Assistance

in the context of Poverty Alleviation.

Throughout 2019, the Company implemented the

following Community Development programs:

1. P4T Program at Rembang Plant.

2. Development of ecopark and edupark areas in

the Tuban Plant.

3. Empowering the green belt farmers.

4. Development of an integrated farming program.

5. Development of the Kehati Park and Semen

Tonasa Geopark Programs.

6. Conservation of the Biih fishes as West

Sumatran endemic for the livelihood of the local

communities.

7. Empowering the Sikayan Balumuik forest

community group.

8. Vocational education of EVE (Enterprise-based

Vocational Education).

9. and other programs.

273



SOEs for the Nation Program (BUMN Hadir Untuk Negeri/BHUN)

Local Workforce

BHUN is a program initiated by the Ministry of State

Enterprises of the Republic of Indonesia together

143 state-owned companies as a commitment to

cultivate and foster a sense of prideIndonesian

nation and landless water to all communities

throughout the country. As the cement industry SOE

Holding company, Semen Indonesia was involved

in several flagship programs BHUN.

In 2019, the Indonesian Cement appointed

Ministry SOE as the person in charge (PIC) BHUN

implementation in Selayar, South Sulawesi, together

with co-PIC of PT Industri Ships Indonesia (Persero)

and PT Perkebunan Nusantara XIV (Persero).

BHUN Activities in Selayar Islands

1. Siswa Mengenal Nusantara (SMN)

2. SOEs Present at Certified Universities &

Internships

3. Ramadhan Safari

4. Free Homecoming Program

5. Independence Day of the Republic of

Indonesia

a. Independence Day Ceremonial

b. Healthy Walk and Clean Environment

c. House Renovation

d. Provision of Community’s Basic Needs

e. Cheap Market

6. Balkondes & Homestay

7. Christmas and New Year Celebrations

a. Donations for Children

b. Donations for Orphanage/Church

SIG provides equal opportunities for everyone to

join the employee recruitment process regardless of

ethnicity, religion, race and group. Recruitment is held

in a transparent manner according to the needs and

qualifications required. However, for certain types

of work SIG has a policy to accept local workers in

the selection process with equal qualifications and

competencies. Local labor is defined as workforce

originating from the Company's operational areas.

Recruiting local workers is a form of commitment to

empower local communities.

274



“I am very grateful to be able to join

this program. When dispatched to Papua

and upon our arrival, we were greeted

by a nice and friendly local government

and the Jayapura student council forum.

I participated in all activities with grateful

and honored feeling.”

“The event introduced us to new things

we obviously have never encountered in

our previous place, such as State Defense

education, cultural awareness, traditional

foods, and South Sulawesi dance. As

Papua representative, I thank you for

organizing this event.”

Diva Aulia Zhiqkyah

SMN Participant from

South Sulawesi

Stenli Reinold Bouway

SMN Participant from

Papua

Testimonials

Siswa Mengenal Nusantara (SMN)

• 24 senior high/vocational school students • 2 Model Teachers

• 3 students with disability • 1 Representative from the Education

Office

SOEs Present at Certified Universities & Internships

Ramadhan Safari

• Donation to 1,000 orphans,

• Provision of 1,000 Quran books,

• Donation of a 50-meters of praying mat,

• Scholarship for 221 students

Free Homecoming Program

• Land route: 28 Buses and 1,271 Passengers

• Sea route: 7 Ships and 4,303 Passengers

• Total of 5,574 Participants

Independence Day Celebration

• Independence Day Ceremonial

• Healthy Walk and Clean Environment

• House Renovation

• Provision of Community’s Basic Needs

• Cheap Market

Balkondes & Homestay

275



Service Commitment to Customers

Target

As one of concern for the customer, the Company has

a Customer Complaint Center to receive questions,

suggestions, or complaints from the community

and from customers. Feedback from customers is

one important factor in the effort to fulfill the quality

standards and the protection of consumers against

each product. In addition, the Company also has

a social media account that periodically provide

various information regarding products and services

providedCompany to the public.

Company always give priority to the principle of

transparency and responsibility in providing services

to consumers in order to meet the best service

commitment to consumers, provide a rapid response

to various requests and complaints of consumers as

part of its commitment to service and maintain the

confidentiality of its customers.

Targets to be achieved from the implementation of

customer responsibility include several aspects:

• Product availability in the market in adequate

amount.

• Customer expectations’ fulfillment on product

specifications as conveyed in the packaging and

in the marketing kit exposure.

• Cement supply contracts’ fulfillment in a timely

and appropriate manner, to support the physical

construction project completion from customers.

• Protecting the customers from the risk of health

and safety impacts when using the Company's

products.

Product and Customer Responsibility

In carrying out its business activities, the Company

always prioritizes customer satisfaction by providing

the best service. The Company not only provides

quality products, but also provides maximum

protection to customers. Excellent service policy

for customers is continuously being improved every

year and implemented in the form of improved

services to customers and information availability

on products and services.

Quality Products According to Customer Expectations

To meet customer expectations for quality cement

products according to required specifications, the

Company carries out several activities, including:

• Implementation of Research and Development

activities, to produce the best products according

to customers’ requirements and needs.

• Implementation of quality control, randomly

and continuously, by examining products based

on random sampling methods according to the

existing quality management system.

• Provision of customer complaints channels and

customer complaint resolution teams that will be

ready to help resolve customer complaints on-

the spot.

276



Customer Service Center

Customer Satisfaction Survey

The Company has a contact center service

accessible through dial number 0800-1088888.

Customers and public can contact this number to get

all information and submit complaints and questions

about the Company's products and services.

Contact Center Semen Indonesia operates 24

hours a day and 7 days a week. Any questions

regarding general information about the Company's

products and services will be responded directly

by the Contact Center Agent and complaints will

be forwarded to authorized department for follow-

up. Overall, both questions and complaints will be

recorded in the Contact Center database.

The Company measures customer satisfaction

regularly to continue to monitor the Company's

performance consistency for products and services

at every opportunity with customers and stay alert

about the changing expectations and needs of the

customer.

The survey results are displayed in the Customer

Satisfaction Index (CSI) for the distribution and

customers channel, which will be an input for the

Company to continue to provide the best services

and improve service performance.

To ensure customer safety, the Company and

its subsidiaries produce sack packaging cement

weighing of 40 kilograms and 50 kilograms. This

is in accordance with the maximum weight of

ergonomic burden that can be lifted by humans

without tools.

The Company complements each product

produced and sold to customers with information

on quality and other specifications, which are

listed on the outside of the package and contains:

1. Symbol/logo from the manufacturer.

2. Product name.

3. National Industrial Standard Number (SNI).

4. Packaging weight.

5. Type of cement.

6. Instructions for use.

7. Customer service number for complaints/reports.

Customer Health and Safety Risk Mitigation

277



2019 ANNUAL REPORTING LIABILITY

280


Annual Report 2019 PT Semen Indonesia (Persero) Tbk 279Laporan Tahunan 2019 PT Semen Indonesia (Persero) Tbk







Direksi








Pengembangan Usaha


We, the undersigned, hereby declare that all information in the Annual Report of PT Semen

Indonesia (Persero) Tbk for the fiscal year of 2019 are presented completely and we are fully

responsible for the accuracy of the contents of this Annual Report and the Consolidated

Financial Statements of the Company. Thus, this statement is made truthfully.









Nasaruddin UmarIndependent Commissioner

Liability Statement of The Board of Commissioners for The 2019 Annual Report PT Semen Indonesia Tbk

281


Annual Report 2019 PT Semen Indonesia (Persero) Tbk 279Laporan Tahunan 2019 PT Semen Indonesia (Persero) Tbk







Direksi








Pengembangan Usaha


We, the undersigned, hereby declare that all information in the Annual Report of PT Semen

Indonesia (Persero) Tbk for the fiscal year of 2019 are presented completely and we are fully

responsible for the accuracy of the contents of this Annual Report and the Consolidated

Financial Statements of the Company. Thus, this statement is made truthfully.



Hendi Prio SantosoPresident Director

Director of Finance

Tina T. Kemala IntanDirector of Human Resources & Legal

Tri AbdisatrijoDirector of Engineering & Projects

Benny WendryDirector of Production

Adi MunandirDirector of Marketing & Supply Chain

Fadjar JudisiawanDirector of Business Strategy & Development

Liability Statement of The Board of Directors for The 2019 Annual Report PT Semen Indonesia Tbk

CONSOLIDATED FINANCIAL STATEMENTS

7

Ikhtisar Data Keuangan dan Operasional Laporan Manajemen Profil Perusahaan Analisis dan Diskusi Manajemen

Laporan Tahunan 2019 PT Semen Indonesia (Persero) Tbk

284



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285



286



287



288



PT SEMEN INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK/AND SUBSIDIARIES

Halaman - 1/1 - Schedule

Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian.

The accompanying notes form an integral part of these consolidated financial statements.

LAPORAN POSISI KEUANGAN KONSOLIDASIAN 31 DESEMBER 2019 DAN 2018 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

31 DECEMBER 2019 AND 2018 (Expressed in millions of Rupiah,

unless otherwise stated)

Catatan/2019 Notes 2018

ASET ASSETS

ASET LANCAR CURRENT ASSETSKas dan setara kas 3.950.448 5 5.245.731 Cash and cash equivalentsInvestasi jangka pendek 67.222 8.453 Short-term investmentsPiutang usaha: Trade receivables:

- Pihak berelasi 1.493.872 6 1.187.905 Related parties -- Pihak ketiga 4.995.989 6 4.598.310 Third parties -

Piutang lain-lain: Other receivables:- Pihak berelasi 111.994 45.306 Related parties -- Pihak ketiga 257.736 128.196 Third parties -

Persediaan 4.641.646 7 3.544.142 InventoriesUang muka 136.159 162.972 AdvancesBeban dibayar di muka 215.667 176.399 Prepaid expensesPajak dibayar di muka: Prepaid taxes:

- Pajak penghasilan badan 538.150 8a 744.716 Corporate income tax -- Pajak lain-lain 225.728 8a 241.012 Other taxes -

Aset lancar lainnya 23.920 7.882 Other current assets

Jumlah Aset Lancar 16.658.531 16.091.024 Total Current Assets

ASET TIDAK LANCAR NON-CURRENT ASSETSKas yang dibatasi penggunaannya 57.356 9 31.332 Restricted cashAset pajak tangguhan 658.262 8e 562.609 Deferred tax assetsInvestasi pada entitas asosiasi 89.001 10 85.638 Investments in associatesInvestasi pada ventura bersama 52.108 55.822 Investments in joint ventureProperti investasi 119.602 11 132.043 Investment propertiesAset tetap 56.601.702 12 32.391.950 Fixed assetsGoodwill dan aset takberwujud 4.260.059 13 1.084.687 Goodwill and intangible assetsTagihan pengembalian pajak: Claims for tax refund:

- Pajak penghasilan badan 299.367 8b - Corporate income tax -- Pajak lain-lain 143.766 8b - Other taxes -

Aset tidak lancar lainnya 867.313 348.731 Other non-current assets

Jumlah Aset Tidak Lancar 63.148.536 34.692.812 Total Non-Current Assets

JUMLAH ASET 79.807.067 50.783.836 TOTAL ASSETS

289












ASET ASSETS

ASET LANCAR CURRENT ASSETSKas dan setara kas 3.950.448 5 5.245.731 Cash and cash equivalentsInvestasi jangka pendek 67.222 8.453 Short-term investmentsPiutang usaha: Trade receivables:

- Pihak berelasi 1.493.872 6 1.187.905 Related parties -- Pihak ketiga 4.995.989 6 4.598.310 Third parties -

Piutang lain-lain: Other receivables:- Pihak berelasi 111.994 45.306 Related parties -- Pihak ketiga 257.736 128.196 Third parties -

Persediaan 4.641.646 7 3.544.142 InventoriesUang muka 136.159 162.972 AdvancesBeban dibayar di muka 215.667 176.399 Prepaid expensesPajak dibayar di muka: Prepaid taxes:

- Pajak penghasilan badan 538.150 8a 744.716 Corporate income tax -- Pajak lain-lain 225.728 8a 241.012 Other taxes -

Aset lancar lainnya 23.920 7.882 Other current assets

Jumlah Aset Lancar 16.658.531 16.091.024 Total Current Assets

ASET TIDAK LANCAR NON-CURRENT ASSETSKas yang dibatasi penggunaannya 57.356 9 31.332 Restricted cashAset pajak tangguhan 658.262 8e 562.609 Deferred tax assetsInvestasi pada entitas asosiasi 89.001 10 85.638 Investments in associatesInvestasi pada ventura bersama 52.108 55.822 Investments in joint ventureProperti investasi 119.602 11 132.043 Investment propertiesAset tetap 56.601.702 12 32.391.950 Fixed assetsGoodwill dan aset takberwujud 4.260.059 13 1.084.687 Goodwill and intangible assetsTagihan pengembalian pajak: Claims for tax refund:

- Pajak penghasilan badan 299.367 8b - Corporate income tax -- Pajak lain-lain 143.766 8b - Other taxes -

Aset tidak lancar lainnya 867.313 348.731 Other non-current assets

Jumlah Aset Tidak Lancar 63.148.536 34.692.812 Total Non-Current Assets

JUMLAH ASET 79.807.067 50.783.836 TOTAL ASSETS

290












EKUITAS EQUITYEkuitas yang dapat diatribusikan Equity attributable to equity

kepada pemilik entitas induk: holders of the parent entity:Modal saham - nilai nominal Share capital - par value of

Rp 100 (angka penuh) per saham Rp 100 (full amount) per share foruntuk saham Seri A Dwiwarna Series A Dwiwarna share anddan saham Seri B, Series B sharesModal dasar - 1 lembar saham Seri A Authorized - 1 Series A Dwiwarna

Dwiwarna dan 19.999.999.999 share and 19,999,999,999lembar saham Seri B Series B shares

Modal ditempatkan dan disetor Issued and fully paidpenuh - 1 lembar saham - 1 Series A Dwiwarna shareSeri A Dwiwarna dan 5.931.519.999 and 5,931,519,999lembar saham seri B 593.152 19 593.152 Series B shares

Tambahan modal disetor 1.458.258 20 1.458.258 Additional paid-in capitalSelisih transaksi ekuitas Difference in value of

dengan pihak equity transaction with nonpengendali 28.928 28.928 non-controlling interest

Komponen ekuitas lainnya 422.194 497.969 Other equity componentsSaldo laba Retained earnings

- Ditentukan penggunaannya 253.338 253.338 Appropriated -- Belum ditentukan penggunaannya 29.520.945 28.360.440 Unappropriated -

Jumlah ekuitas yang dapatdiatribusikan kepada Total equity attributable to thepemilik entitas induk 32.276.815 31.192.085 owners of the parent entity

Kepentingan nonpengendali 1.615.109 22 1.423.230 Non-controlling interests

Jumlah Ekuitas 33.891.924 32.615.315 Total Equity

JUMLAH LIABILITAS, TOTAL LIABILITIES,DANA SYIRKAH TEMPORER TEMPORARY SYIRKAH DAN EKUITAS 79.807.067 50.783.836 FUNDS AND EQUITY










LIABILITAS LIABILITIES

LIABILITAS JANGKA PENDEK CURRENT LIABILITIESPinjaman jangka pendek 1.211.916 14 1.551.659 Short-term borrowingsUtang usaha: Trade payables:

- Pihak berelasi 864.792 16 670.705 Related parties -- Pihak ketiga 4.804.967 16 3.805.444 Third parties -

Utang lain-lain: Other payables:- Pihak berelasi 19.462 32.116 Related parties -- Pihak ketiga 555.664 286.787 Third parties -

Akrual 1.222.508 17 901.429 AccrualsUtang pajak: Taxes payable:

- Pajak penghasilan badan 326.508 8c 148.088 Corporate income tax -- Pajak lain-lain 299.122 8c 214.695 Other taxes -

Liabilitas imbalan kerja Short-term employeejangka pendek 735.066 29 392.573 benefits liabilities

Uang muka penjualan 119.918 37.800 Sales advancesPinjaman jangka panjang yang jatuh Current maturities of

tempo dalam satu tahun: long-term borrowings:- Pinjaman bank 2.052.348 14 50.136 Bank loans -- Liabilitas sewa pembiayaan 27.981 14 88.387 Finance lease liabilities -

Jumlah Liabilitas Jangka Pendek 12.240.252 8.179.819 Total Current Liabilities

LIABILITAS JANGKA PANJANG NON-CURRENT LIABILITIESLiabilitas pajak tangguhan 3.838.407 8e 207.233 Deferred tax liabilitiesLiabilitas imbalan kerja Long-term employee benefits

jangka panjang 2.235.955 29 1.433.259 liabilitiesPinjaman jangka panjang, setelah

dikurangi bagian yang jatuh tempo Long-term borrowings,dalam satu tahun: net of current maturities:- Pinjaman bank 17.659.900 14 4.644.083 Bank loans -- Utang obligasi 7.065.345 14 2.994.902 Bonds payable -- Liabilitas sewa pembiayaan 24.457 14 273.293 Finance lease liabilities -

Provisi jangka panjang 264.891 18 228.188 Long-term provisionLiabilitas jangka panjang lainnya 585.936 207.744 Other non-current liabilities

Jumlah Liabilitas Total Non-Current Jangka Panjang 31.674.891 9.988.702 Liabilities

Jumlah Liabilitas 43.915.143 18.168.521 Total Liabilities

DANA SYIRKAH TEMPORER 2.000.000 15 - TEMPORARY SYIRKAH FUNDS

291












EKUITAS EQUITYEkuitas yang dapat diatribusikan Equity attributable to equity

kepada pemilik entitas induk: holders of the parent entity:Modal saham - nilai nominal Share capital - par value of

Rp 100 (angka penuh) per saham Rp 100 (full amount) per share foruntuk saham Seri A Dwiwarna Series A Dwiwarna share anddan saham Seri B, Series B sharesModal dasar - 1 lembar saham Seri A Authorized - 1 Series A Dwiwarna

Dwiwarna dan 19.999.999.999 share and 19,999,999,999lembar saham Seri B Series B shares

Modal ditempatkan dan disetor Issued and fully paidpenuh - 1 lembar saham - 1 Series A Dwiwarna shareSeri A Dwiwarna dan 5.931.519.999 and 5,931,519,999lembar saham seri B 593.152 19 593.152 Series B shares

Tambahan modal disetor 1.458.258 20 1.458.258 Additional paid-in capitalSelisih transaksi ekuitas Difference in value of

dengan pihak equity transaction with nonpengendali 28.928 28.928 non-controlling interest

Komponen ekuitas lainnya 422.194 497.969 Other equity componentsSaldo laba Retained earnings

- Ditentukan penggunaannya 253.338 253.338 Appropriated -- Belum ditentukan penggunaannya 29.520.945 28.360.440 Unappropriated -

Jumlah ekuitas yang dapatdiatribusikan kepada Total equity attributable to thepemilik entitas induk 32.276.815 31.192.085 owners of the parent entity

Kepentingan nonpengendali 1.615.109 22 1.423.230 Non-controlling interests

Jumlah Ekuitas 33.891.924 32.615.315 Total Equity

JUMLAH LIABILITAS, TOTAL LIABILITIES,DANA SYIRKAH TEMPORER TEMPORARY SYIRKAH DAN EKUITAS 79.807.067 50.783.836 FUNDS AND EQUITY

292




Halaman - 2 - Schedule



LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN UNTUK TAHUN YANG BERAKHIR 31 DESEMBER 2019 DAN 2018 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2019 AND 2018 (Expressed in millions of Rupiah,



PENDAPATAN 40.368.107 23 30.687.626 REVENUEBEBAN POKOK PENDAPATAN (27.654.124) 24 (21.357.096) COST OF REVENUELABA KOTOR 12.713.983 9.330.530 GROSS PROFITBeban penjualan (3.084.107) 25 (2.237.003) Selling expenses

General and administrationBeban umum dan administrasi (3.536.797) 25 (2.320.262) expensesPenghasilan keuangan 217.823 181.973 Finance incomeBeban keuangan (3.205.298) 26 (959.259) Finance costsBagian atas hasil bersih entitas Share of result of

asosiasi dan ventura bersama (1.793) 1.606 associates and joint venturePenghasilan operasi lainnya - bersih 91.964 27 107.374 Other operating income - net

LABA SEBELUM PAJAKPENGHASILAN 3.195.775 4.104.959 PROFIT BEFORE INCOME TAX

Beban pajak penghasilan (824.542) 8d (1.019.255) Income tax expenseLABA TAHUN BERJALAN 2.371.233 3.085.704 PROFIT FOR THE YEAR(RUGI)/PENGHASILAN OTHER COMPREHENSIVE

KOMPREHENSIF LAIN (LOSS)/INCOMEPos-pos yang tidak akan Items that will not be reclassified

direklasifikasi ke laba rugi: to profit or loss:Pengukuran kembali atas Remeasurements of defined

liabilitas imbalan pasti (7.523) 413.113 benefit obligationPajak penghasilan terkait 1.795 8e (97.606) Related income tax

(5.728) 315.507 Pos-pos yang akan Items that will be reclassified

direklasifikasi ke laba rugi: to profit or loss:Selisih kurs dari penjabaran Exchange difference from

kegiatan usaha luar negeri (97.354) 116.162 translation of foreign operationsJumlah (rugi)/penghasilan

komprehensif lain tahun Total other comprehensive (loss)/berjalan - setelah pajak (103.082) 431.669 income for the year - net of tax

JUMLAH PENGHASILAN TOTAL COMPREHENSIVEKOMPREHENSIF TAHUN BERJALAN 2.268.151 3.517.373 INCOME FOR THE YEAR

LABA TAHUN BERJALANYANG DIATRIBUSIKAN PROFIT FOR THE YEARKEPADA: ATTRIBUTABLE TO:- Pemilik entitas induk 2.392.151 3.079.115 Owners of the parent entity -- Kepentingan nonpengendali (20.918) 22 6.589 Non-controlling interests -

LABA TAHUN BERJALAN 2.371.233 3.085.704 PROFIT FOR THE YEAR

JUMLAH PENGHASILAN KOMPREHENSIF TAHUN TOTAL COMPREHENSIVEBERJALAN YANG DIATRIBUSIKAN INCOME FOR THE YEARKEPADA: ATTRIBUTABLE TO:- Pemilik entitas induk 2.316.376 3.475.788 Owners of the parent entity -- Kepentingan nonpengendali (48.225) 41.585 Non-controlling interests -

JUMLAH PENGHASILAN TOTAL COMPREHENSIVE INCOME KOMPREHENSIF TAHUN BERJALAN 2.268.151 3.517.373 FOR THE YEAR

Laba per saham Earnings per share(dinyatakan Rupiah penuh) (expressed in full Rupiah)Dasar dan dilusian 403 28 519 Basic and diluted

293



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294





CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2019 DAN 2018 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS



1. UMUM 1. GENERAL

a. Pendirian dan Informasi Umum a. Establishment and General Information

PT Semen Indonesia (Persero) Tbk (“Perseroan“) didirikan dengan nama NV Pabrik Semen Gresik pada tanggal 25 Maret 1953 dengan Akta Notaris Raden Mr. Soewandi No. 41. Pada tanggal 17 April 1961, NV Pabrik Semen Gresik dijadikan Perusahaan Negara (Persero) berdasarkan Peraturan Pemerintah No. 132 Tahun 1961, kemudian berubah menjadi PT Semen Gresik (Persero) berdasarkan Akta Notaris J.N. Siregar, S.H. No. 81 tanggal 24 Oktober 1969.

PT Semen Indonesia (Persero) Tbk (the “Company”) was established on 25 March 1953 as NV Pabrik Semen Gresik based on Notarial Deed No. 41 of Raden Mr. Soewandi. On 17 April 1961, NV Pabrik Semen Gresik has become a state enterprise (Persero) based on Government Regulation No. 132 Year 1961, and subsequently became PT Semen Gresik (Persero) based on Notarial Deed No. 81 dated 24 October 1969 of J.N. Siregar, S.H..

Anggaran Dasar Perseroan telah mengalami beberapa kali perubahan dan yang terakhir antara lain mengenai tempat, maksud dan tujuan, tugas, wewenang dan kewajiban Direksi berdasarkan Akta No. 29 tanggal 13 Juni 2019 yang dibuat dihadapan Leolin Jayayanti, S.H., Notaris di Jakarta. Perubahan ini telah mendapatkan persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia pada tanggal 9 Juli 2019, melalui surat keputusan No. AHU-0035582.AH.01.02 tanggal 9 Juli 2019.

The Company’s Articles of Association have been amended several times, the most recent was concerning, among others, the location, scope of business, the dutys, authorities and responsibility of the Board of Director based on Notarial Deed No. 29 dated 13 June 2019 of Leolin Jayayanti, S.H., Notary in Jakarta. The amandment was approved by Ministry of Law and Human Rights of the Republic of Indonesia by virtue of its letter dated 9 July 2019 with decree No. AHU-0035582.AH.01.02 dated 9 July 2019.

Ruang lingkup kegiatan usaha Perseroan menurut Anggaran Dasar adalah menjalankan usaha dalam bidang industri semen, termasuk kegiatan produksi, menambang dan/atau menggali bahan yang diperlukan dalam industri semen atau industri lainnya, perdagangan, pemasaran dan distribusi terkait dengan industri semen serta pemberian jasa untuk industri semen dan/atau industri lainnya.

The scope of business activities of the Company in accordance with its Articles of Association includes conducting business in the field of cement industry, production, mining and/or digging materials required in cement or other industries, trading, marketing and distribution related to cement industry, and providing services for cement and/or other industries.

Perseroan berkedudukan dan berkantor pusat di Jakarta Selatan. Perseroan memulai kegiatan komersialnya pada tanggal 7 Agustus 1957.

The Company’s head office is located at West South Jakarta. The Company commenced commercial operations on 7 August 1957.

Lokasi pabrik semen Perseroan dan Entitas Anak (“Grup“) berada di Gresik dan Tuban di Jawa Timur, Rembang dan Cilacap di Jawa Tengah, Narogong di jawa barat, Indarung di Sumatera Barat, Lhoknga di Aceh, Pangkep di Sulawesi Selatan dan Quang Ninh di Vietnam.

The Company and its subsidiaries’ (“the Group”) cement plants are located in Gresik and Tuban in East Java, Rembang and Cilacap in Central Java, Narogong in West Java, Indarung in West Sumatera, Lhoknga in Aceh, Pangkep in South Sulawesi and Quang Ninh in Vietnam.


Halaman - 4 - Schedule



LAPORAN ARUS KAS KONSOLIDASIAN UNTUK TAHUN YANG BERAKHIR 31 DESEMBER 2019 dan 2018 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED

31 DECEMBER 2019 and 2018 (Expressed in millions of Rupiah,


2019 2018CASH FLOWS FROM

ARUS KAS DARI AKTIVITAS OPERASI OPERATING ACTIVITIESPenerimaan dari pelanggan 40.470.215 29.774.761 Receipts from customersPembayaran kepada pemasok (27.448.166) (21.422.720) Payments to suppliersPembayaran kepada karyawan (3.804.203) (2.605.272) Payments to employeesKas yang dihasilkan dari operasi 9.217.846 5.746.769 Cash generated from operationsPenghasilan keuangan yang diterima 213.468 181.973 Finance income receivedPembayaran pajak penghasilan badan (616.721) (542.907) Payment of corporate income taxesPembayaran beban keuangan (3.163.479) (961.590) Payment of finance cost(Pembayaran)/penerimaan lainnya (42.183) 35.095 Others (payments)/receipts

Arus kas bersih yang diperoleh dari Net cash flows provided fromaktivitas operasi 5.608.931 4.459.340 operating activities

CASH FLOWS FROMARUS KAS DARI AKTIVITAS INVESTASI INVESTING ACTIVITIESPembelian aset tetap (1.639.080) (1.790.173) Acquisition of fixed assetsPenempatan kas yang dibatasi penggunaannya (4.755) (2.599) Placement of restricted cashPerolehan properti investasi (2.309) - Additions of investment propertyHasil penjualan aset tetap 6.708 9.726 Proceeds from sale of fixed assetsAkuisisi entitas anak (15.459.602) - Acquisition of a subsidiaryPenambahan investasi pada entitas asosiasi (625) - Addition investment in associatePenambahan aset takberwujud (2.116) (5.985) Additions of intangible assetsPenempatan investasi Placement of short-term

jangka pendek (58.769) - investmentsArus kas bersih yang digunakan Net cash flows used in

untuk aktivitas investasi (17.160.548) (1.789.031) investing activitiesCASH FLOWS FROM

ARUS KAS DARI AKTIVITAS PENDANAAN FINANCING ACTIVITIESPenerimaan utang bank jangka pendek 6.451.326 2.080.919 Proceeds from short-term borrowingsPembayaran utang bank jangka pendek (8.506.886) (1.774.146) Payment of short-term borrowingsPenerimaan utang bank jangka panjang 33.214.334 4.273.689 Proceeds from long-term bank loanPembayaran utang bank jangka panjang (25.109.036) (4.640.981) Payment of long-term bank loanPenerimaan dana syirkah temporer 2.000.000 - Proceeds from temporary syirkah fundsPenerimaan utang obligasi 4.078.000 - Proceeds from bonds payablePembayaran liabilitas sewa pembiayaan (337.938) (174.709) Payment of finance lease liabilitiesPemberian pinjaman kepada Loan given to

entitas ventura bersama (260.000) - joint venture entityPembayaran dividen: Payment of dividends:

- Pemilik entitas induk (1.231.646) (805.678) Equity holders of parent entity -- Kepentingan nonpengendali (13.302) (21.432) Non-controlling interests -

Arus kas bersih yang diperoleh dari/ Net cash flows provided from/(digunakan untuk) aktivitas pendanaan 10.284.852 (1.062.338) (used in) financing activities

(PENURUNAN)/KENAIKAN BERSIH NET (DECREASE)/INCREASE INKAS DAN SETARA KAS (1.266.765) 1.607.971 CASH AND CASH EQUIVALENTS

KAS DAN SETARA KAS CASH AND CASH EQUIVALENTSPADA AWAL TAHUN 5.245.731 3.637.760 AT THE BEGINNING OF THE YEAR

EFFECT OF EXCHANGE RATEDAMPAK PERUBAHAN SELISIH KURS CHANGES ON CASH AND

TERHADAP KAS DAN SETARA KAS (28.518) - CASH EQUIVALENTSKAS DAN SETARA KAS CASH AND CASH EQUIVALENTS

PADA AKHIR TAHUN 3.950.448 5.245.731 AT THE END OF THE YEAR

295









1. UMUM 1. GENERAL

a. Pendirian dan Informasi Umum a. Establishment and General Information

PT Semen Indonesia (Persero) Tbk (“Perseroan“) didirikan dengan nama NV Pabrik Semen Gresik pada tanggal 25 Maret 1953 dengan Akta Notaris Raden Mr. Soewandi No. 41. Pada tanggal 17 April 1961, NV Pabrik Semen Gresik dijadikan Perusahaan Negara (Persero) berdasarkan Peraturan Pemerintah No. 132 Tahun 1961, kemudian berubah menjadi PT Semen Gresik (Persero) berdasarkan Akta Notaris J.N. Siregar, S.H. No. 81 tanggal 24 Oktober 1969.

PT Semen Indonesia (Persero) Tbk (the “Company”) was established on 25 March 1953 as NV Pabrik Semen Gresik based on Notarial Deed No. 41 of Raden Mr. Soewandi. On 17 April 1961, NV Pabrik Semen Gresik has become a state enterprise (Persero) based on Government Regulation No. 132 Year 1961, and subsequently became PT Semen Gresik (Persero) based on Notarial Deed No. 81 dated 24 October 1969 of J.N. Siregar, S.H..

Anggaran Dasar Perseroan telah mengalami beberapa kali perubahan dan yang terakhir antara lain mengenai tempat, maksud dan tujuan, tugas, wewenang dan kewajiban Direksi berdasarkan Akta No. 29 tanggal 13 Juni 2019 yang dibuat dihadapan Leolin Jayayanti, S.H., Notaris di Jakarta. Perubahan ini telah mendapatkan persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia pada tanggal 9 Juli 2019, melalui surat keputusan No. AHU-0035582.AH.01.02 tanggal 9 Juli 2019.

The Company’s Articles of Association have been amended several times, the most recent was concerning, among others, the location, scope of business, the dutys, authorities and responsibility of the Board of Director based on Notarial Deed No. 29 dated 13 June 2019 of Leolin Jayayanti, S.H., Notary in Jakarta. The amandment was approved by Ministry of Law and Human Rights of the Republic of Indonesia by virtue of its letter dated 9 July 2019 with decree No. AHU-0035582.AH.01.02 dated 9 July 2019.

Ruang lingkup kegiatan usaha Perseroan menurut Anggaran Dasar adalah menjalankan usaha dalam bidang industri semen, termasuk kegiatan produksi, menambang dan/atau menggali bahan yang diperlukan dalam industri semen atau industri lainnya, perdagangan, pemasaran dan distribusi terkait dengan industri semen serta pemberian jasa untuk industri semen dan/atau industri lainnya.

The scope of business activities of the Company in accordance with its Articles of Association includes conducting business in the field of cement industry, production, mining and/or digging materials required in cement or other industries, trading, marketing and distribution related to cement industry, and providing services for cement and/or other industries.

Perseroan berkedudukan dan berkantor pusat di Jakarta Selatan. Perseroan memulai kegiatan komersialnya pada tanggal 7 Agustus 1957.

The Company’s head office is located at West South Jakarta. The Company commenced commercial operations on 7 August 1957.

Lokasi pabrik semen Perseroan dan Entitas Anak (“Grup“) berada di Gresik dan Tuban di Jawa Timur, Rembang dan Cilacap di Jawa Tengah, Narogong di jawa barat, Indarung di Sumatera Barat, Lhoknga di Aceh, Pangkep di Sulawesi Selatan dan Quang Ninh di Vietnam.

The Company and its subsidiaries’ (“the Group”) cement plants are located in Gresik and Tuban in East Java, Rembang and Cilacap in Central Java, Narogong in West Java, Indarung in West Sumatera, Lhoknga in Aceh, Pangkep in South Sulawesi and Quang Ninh in Vietnam.

296









1. UMUM (lanjutan) 1. GENERAL (continued)

b. Struktur Entitas Anak b. The Subsidiaries Structure

Kepemilikan saham Perseroan pada entitas anak adalah sebagai berikut:

The Company’s ownership interests in subsidiaries are as follows:

Dimulainya

kegiatankomersial/

Start ofDomisili/ Jenis usaha/ commercialDomicile Nature of business 2019 2018 activities 2019 2018

Pemilikan langsung/Direct ownership

PT Semen Padang (“SP”) Indarung, Produksi semen/ 99,99% 99,99% 1913 9.914.107 9.992.063 dan entitas anak/ Sumatera Barat/ Cement manufacturingand its subsidiaries West Sumatera

PT Semen Indonesia Aceh Produksi semen/ 52,28% 52,28% - 569.861 605.916 Aceh ("SIA") Cement manufacturing

PT United Tractors Semen Tuban, Jasa penambangan 55,00% 55,00% 1992 544.900 617.601 Gresik (“UTSG”) Jawa Timur/ batu kapur dan tanah liat/

East Java Limestone and clay mining service

PT Industri Kemasan Tuban, Produksi kantong semen/ 60,00% 60,00% 1994 405.019 425.888 Semen Gresik (“IKSG”) Jawa Timur/ Cement bag manufacturing

East Java

PT Sinergi Mitra Investama (”SMI”) Gresik, Persewaan bangunan/ 97,00% 97,00% 2012 44.010 46.253 Jawa Timur/ Building rentalEast Java

PT Semen Gresik (“SG”) Tuban, Produksi semen/ 99,96% 99,96% 2017 5.713.277 5.622.948 Jawa Timur/ Cement manufacturingEast Java

PT Semen Indonesia Logistik ("SIL") Gresik Perdagangan, transportasi, jasa 73,65% 73,65% 1974 2.243.388 2.434.028 dan entitas anak/and its subsidiaries Jawa Timur/ bongkar muat dan konstruksi/

East Java Trade, transporation,and construction

PT Kawasan Industri Gresik, Pengembangan kawasan 65,00% 65,00% 1991 396.560 368.286 Gresik (“KIG”) Jawa Timur/ industri/Industrial real

East Java estate development

PT Semen Indonesia Beton (”SIB”) DKI Jakarta Produksi beton siap pakai/ 99,99% 99,99% 2012 1.955.369 2.225.722 dan entitas anak/and its subsidiary Production of ready mix concrete

PT Sinergi Informatika DKI Jakarta Sistem informasi/ 100,00% 100,00% 2014 113.264 61.406 Semen Indonesia ("SISI") Information system

PT Semen Indonesia International DKI Jakarta Perdagangan, jasa pelayanan, 100,00% 100,00% 2016 517.328 468.413 ("SII") dan entitas anak/ manajemen logistik dan investasi/and its subsidiary Trade, service logistic management

and investment

PT Semen Tonasa (“ST”) Pangkep, Produksi semen/ 99,99% 99,99% 1968 8.059.432 8.742.767 Sulawesi Selatan/ Cement manufacturingSouth Sulawesi

PT Semen Indonesia Industri DKI Jakarta Bahan bangunan/ 100,00% 100,00% - 32.471.647 1.000 Bangunan ("SIIB") dan entitas anak/ Building materialand its subsidiaries

PT Semen Kupang Kupang, Distribusi semen/ 99,48% 99,48% 2019 204.843 192.418 Indonesia (”SKI”) Nusa Tenggara Cement distribution

Timur

Thang Long Cement Joint Hanoi, Produksi semen/ 70,00% 70,00% 2008 2.212.022 2.480.514 Stock Company (”TLCC”) Vietnam Cement manufacturingdan entitas anak/and its subsidiaries

Persentase kepemilikan/ Jumlah aset sebelum eliminasi/Entitas anak/ Percentage of ownership Total assets before eliminationsSubsidiaries








a. Pendirian dan Informasi Umum (lanjutan) a. Establishment and General Information

(continued) Entitas induk langsung dan entitas induk akhir Perseroan adalah Pemerintah Republik Indonesia.

The Company's immediate parent and ultimate parent is Government of the Republic of Indonesia.

Susunan Dewan Komisaris dan Direksi Perseroan, dan Komite Audit pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

The members of the Company’s Board of Commissioners and Directors, and Audit Committee, as at 31 December 2019 and 2018 were as follows:

2019 2018

Dewan Komisaris Board of CommissionersKomisaris Utama Soekarwo Sutiyoso President CommissionerKomisaris Hendrika Nora Osloi Sinaga Hendrika Nora Osloi Sinaga Commissioners

Astera Primanto Bhakti Astera Primanto BhaktiSony Subrata Sony SubrataLydia Silvanna Djaman Wahyu Hidayat

Komisaris Independen Mochamad Choliq Mochamad Choliq Independent CommissionersNasaruddin Umar Nasaruddin Umar

Dewan Direksi Board of DirectorsDirektur Utama Hendi Prio Santoso Hendi Prio Santoso President DirectorDirektur Fadjar Judisiawan Fadjar Judisiawan Directors

Doddy Sulasmono Diniawan Doddy Sulasmono DiniawanAdi Munandir Adi MunandirTri Abdisatrijo Tri AbdisatrijoTina T. Kemala Intan Agung YunantoBenny Wendry Benny Wendry

Komite Audit Audit CommitteeKetua Mochamad Choliq Mochamad Choliq ChairmanAnggota Astera Primanto Bhakti Astera Primanto Bhakti Members

M. Z. Abidin M. Z. AbidinElok Tresnaningsih Elok Tresnaningsih

Personil manajemen kunci meliputi Dewan Komisaris dan Direksi Perseroan. Kompensasi imbalan kerja jangka pendek yang dibayarkan kepada personil manajemen kunci Perseroan untuk tahun yang berakhir pada 31 Desember 2019 sebesar Rp 108.746 (2018: Rp 76.997).

Key management personnel are the Company’s Boards of Commissioners and Directors. Short-term compensation paid to the key management personnel of the Company for the year ended 31 December 2019 amounted to Rp 108,746 (2018: Rp 76,997).

Pada tanggal 31 Desember 2019, Grup mempunyai karyawan 11.518 (2018: 9.536 karyawan) - tidak diaudit.

As at 31 December 2019, the Group had 11,518 employees (2018: 9,536 employees) -unaudited.

297










b. Struktur Entitas Anak b. The Subsidiaries Structure

Kepemilikan saham Perseroan pada entitas anak adalah sebagai berikut:

The Company’s ownership interests in subsidiaries are as follows:

Dimulainya

kegiatankomersial/

Start ofDomisili/ Jenis usaha/ commercialDomicile Nature of business 2019 2018 activities 2019 2018

Pemilikan langsung/Direct ownership

PT Semen Padang (“SP”) Indarung, Produksi semen/ 99,99% 99,99% 1913 9.914.107 9.992.063 dan entitas anak/ Sumatera Barat/ Cement manufacturingand its subsidiaries West Sumatera

PT Semen Indonesia Aceh Produksi semen/ 52,28% 52,28% - 569.861 605.916 Aceh ("SIA") Cement manufacturing

PT United Tractors Semen Tuban, Jasa penambangan 55,00% 55,00% 1992 544.900 617.601 Gresik (“UTSG”) Jawa Timur/ batu kapur dan tanah liat/

East Java Limestone and clay mining service

PT Industri Kemasan Tuban, Produksi kantong semen/ 60,00% 60,00% 1994 405.019 425.888 Semen Gresik (“IKSG”) Jawa Timur/ Cement bag manufacturing

East Java

PT Sinergi Mitra Investama (”SMI”) Gresik, Persewaan bangunan/ 97,00% 97,00% 2012 44.010 46.253 Jawa Timur/ Building rentalEast Java

PT Semen Gresik (“SG”) Tuban, Produksi semen/ 99,96% 99,96% 2017 5.713.277 5.622.948 Jawa Timur/ Cement manufacturingEast Java

PT Semen Indonesia Logistik ("SIL") Gresik Perdagangan, transportasi, jasa 73,65% 73,65% 1974 2.243.388 2.434.028 dan entitas anak/and its subsidiaries Jawa Timur/ bongkar muat dan konstruksi/

East Java Trade, transporation,and construction

PT Kawasan Industri Gresik, Pengembangan kawasan 65,00% 65,00% 1991 396.560 368.286 Gresik (“KIG”) Jawa Timur/ industri/Industrial real

East Java estate development

PT Semen Indonesia Beton (”SIB”) DKI Jakarta Produksi beton siap pakai/ 99,99% 99,99% 2012 1.955.369 2.225.722 dan entitas anak/and its subsidiary Production of ready mix concrete

PT Sinergi Informatika DKI Jakarta Sistem informasi/ 100,00% 100,00% 2014 113.264 61.406 Semen Indonesia ("SISI") Information system

PT Semen Indonesia International DKI Jakarta Perdagangan, jasa pelayanan, 100,00% 100,00% 2016 517.328 468.413 ("SII") dan entitas anak/ manajemen logistik dan investasi/and its subsidiary Trade, service logistic management

and investment

PT Semen Tonasa (“ST”) Pangkep, Produksi semen/ 99,99% 99,99% 1968 8.059.432 8.742.767 Sulawesi Selatan/ Cement manufacturingSouth Sulawesi

PT Semen Indonesia Industri DKI Jakarta Bahan bangunan/ 100,00% 100,00% - 32.471.647 1.000 Bangunan ("SIIB") dan entitas anak/ Building materialand its subsidiaries

PT Semen Kupang Kupang, Distribusi semen/ 99,48% 99,48% 2019 204.843 192.418 Indonesia (”SKI”) Nusa Tenggara Cement distribution

Timur

Thang Long Cement Joint Hanoi, Produksi semen/ 70,00% 70,00% 2008 2.212.022 2.480.514 Stock Company (”TLCC”) Vietnam Cement manufacturingdan entitas anak/and its subsidiaries

Persentase kepemilikan/ Jumlah aset sebelum eliminasi/Entitas anak/ Percentage of ownership Total assets before eliminationsSubsidiaries

298










c. Penawaran Umum Efek Perseroan c. Public Offering of Shares of the Company

Perseroan mendapat persetujuan melalui Keputusan Menteri Keuangan No. 859/KMK.01/1987 tanggal 23 Desember 1987, juncto Keputusan Menteri Keuangan No. 1548/KMK.013/1990 tanggal 4 Desember 1990 untuk menawarkan saham kepada masyarakat. Berdasarkan izin Menteri Keuangan cq Ketua Badan Pengawas Pasar Modal dan Lembaga Keuangan (“BAPEPAMLK”) No. S-622.PM/1991 tanggal 17 Mei 1991, Perseroan melakukan Penawaran Umum Perdana atas 40.000.000 saham lembar saham, dengan nilai nominal Rp 1.000 (nilai penuh) per saham dengan harga penawaran Rp 7.000 (nilai penuh) per lembar saham, sehingga jumlah saham beredar meningkat menjadi 70.000.000 lembar saham.

The Company obtained the approval of the Minister of Finance in his decision No. 859/KMK.01/1987 dated 23 December 1987, as amended by Decree No. 1548/KMK.013/1990 dated 4 December 1990, to offer its shares to the public. Based on the approval of the Minister of Finance cq Head of Capital Market and Financial Institutions Supervisory Agency ("BAPEPAM-LK") No. S-622.PM/1991 dated 17 May 1991, the Company conducted an Initial Public Offering of 40,000,000 shares, with par value of Rp 1,000 (full amount) per share with offering price of Rp 7,000 (full amount) per share, such that issued shares increased to 70,000,000 shares.

Pada tahun 1995, Perseroan melakukan pencatatan tambahan 78.288.000 saham, dengan harga penawaran Rp 1.000 (nilai penuh) per saham. Selanjutnya, Perseroan melakukan Penawaran Umum Terbatas dengan Hak Memesan Efek Terlebih Dahulu dengan dasar tiga lembar saham baru untuk setiap satu lembar saham beredar, yang meningkatkan jumlah saham beredar sebesar 444.864.000 lembar saham, dengan harga penawaran Rp 1.000 (nilai penuh). Dengan demikian, jumlah saham beredar Perseroan menjadi 593.152.000 lembar saham.

In 1995, the Company conducted an additional listing of 78,288,000 shares with offering price of Rp 1,000 (full amount) per share. Subsequently, the Company conducted Limited Public Offering with pre-emptive rights on a three to one basis, increasing the number of shares issued 444,864,000 shares, with offering price of Rp 1,000 (full amount). Therefore, the total shares issued increased to become 593,152,000 shares.

Pada tahun 2007, Perseroan melakukan pemecahan saham dengan perbandingan 1:10, yang meningkatkan jumlah saham beredar menjadi 5.931.520.000 lembar saham dan merubah nilai nominal saham dari Rp 1.000 (nilai penuh) menjadi Rp 100 (nilai penuh).

In 2007, the Company executed a stock split with a ratio of 1:10, increasing the number of share issued to 5,931,520,000 shares and changed in par value from Rp 1,000 (full amount) to Rp 100 (full amount).

Seluruh saham Perseroan telah dicatatkan pada Bursa Efek Indonesia.

All of the Company’s issued shares are listed on the Indonesia Stock Exchange.








b. Struktur Entitas Anak (lanjutan) b. The Subsidiaries Structure (continued)

Dimulainya

kegiatankomersial/

Start ofEntitas anak/ Domisili/ Jenis usaha/ commercialSubsidiaries Domicile Nature of business 2019 2018 activities 2019 2018

Pemilikan tidak langsung/Indirect ownership

Melalui/Through SP:

PT Sepatim Batamtama Batam, Pengantongan dan 97,00% 97,00% 1994 35.946 35.386 (“Sepatim”) Kepulauan Riau distribusi semen/Cement

packing and distribution

PT Bima Sepaja Abadi DKI Jakarta Pengantongan semen, distribusi, 80,00% 80,00% 1996 131.260 182.346 (”BSA”) dan jasa transportasi/Cement

packing, distribution transportation

Melalui/Through SIL:

PT Semen Indonesia Distributor ("SID") Gresik Perdagangan/Trading 73,28% 73,28% 1989 842.405 971.785 (dahulu/formerly PT Waru Abadi) Jawa Timur/

East Java

PT Varia Usaha Dharma Segara ("VUDS") Gresik Jasa pengurusan transportasi/ 73,65% 73,65% 1995 64.819 63.344 Jawa Timur/ Freight forwarding servicesEast Java

PT Varia Usaha Fabrikasi ("VUFA") Gresik Jasa ketenagakerjaan/ 48,40% 48,40% 2015 11.905 16.998 (dahulu/formerly PT Megah Sejahtera Jawa Timur/ Outsourcing servicesBersama (MSB) East Java

PT Varia Usaha Bahari ("VUBA") *) Gresik Jasa bongkar muat/ 73,65% 73,65% 1992 125.492 99.843 Jawa Timur/ Stevedoring servicesEast Java

PT Varia Usaha Lintas Segara ("VULS") Gresik Jasa transportasi laut/ 73,65% 73,65% 1997 143.157 136.549 Jawa Timur/ Sea transportation servicesEast Java

Melalui/Through SIB:

PT Varia Usaha Beton ("VUB") Sidoarjo, Produksi beton siap pakai/ 63,15% 63,15% 1991 782.008 1.022.121 Jawa Timur/ Ready mix concrete productionEast Java

Melalui/Through SIIB:

PT Solusi Bangun Indonesia Tbk DKI Jakarta Produksi semen/ 98,31% - 1971 19.567.499 - (dahulu/formely PT Holcim Indonesia Tbk) Cement manufacturingdan entitas anak/and its subsidiaries

PT Solusi Bangun Beton DKI Jakarta Beton jadi dan tambang agregat/ 98,31% - 1990 1.264.394 - (dahulu/formely PT Holcim Beton) Readymix concrete and

aggregates quarry

PT Pendawa Lestari Perkasa ("PLP") Surabaya Perijinan tambang agregat/ 98,31% - 2007 237.111 - Aggregates quarry license

PT Readymix Concrete Indonesia ("RCI") Surabaya Beton jadi dan tambang agregat/ 98,31% - 1992 82.111 - Readymix concrete andaggregates quarry

PT Aroma Sejahtera Indonesia ("ASI") DKI Jakarta Jasa konsultansi/ 98,31% - - 462 - Consulting services

PT Aroma Cipta Anugrahtama ("ACA") DKI Jakarta Izin usaha tambang (IUP)/ 98,31% - 2000 4.576 - Mining production license

PT SBI Bangun Nusantara DKI Jakarta Aktivitas tambang/ 98,31% - - 178 - (dahulu/formely PT Langkat Mineral Mining activitiesIndonesia) ("SBN")

PT Solusi Bangun Andalas Aceh Produksi semen/ 98,31% - 1983 2.837.202 - (dahulu/formely PT Lafarge Cement manufacturingCement Indonesia)

PT Ciptanugrah Indonesia ("CI") DKI Jakarta Jasa konsultansi/ 98,31% - 2018 2.115 - Consulting services

Melalui SII/Through SII :

SI International Trading Singapura/ Perdagangan umum/ 100,00% 100,00% 2017 411.709 84.832 PTE. LTD ("SIIT") Singapore General trading

Melalui TLCC/Through TLCC :

Thang Long Cement Joint Hanoi, Produksi semen/ 69,57% 69,57% - 39.239 42.577 Stock Company 2 Vietnam Cement manufacturing

An Phu Cement Joint Stock Hanoi, Produksi semen/ 69,93% 69,93% - 57.294 57.922 Company (”APCC”) Vietnam Cement manufacturing

Persentase kepemilikan/ Jumlah aset sebelum eliminasi/Percentage of ownership Total assets before eliminations

299










c. Penawaran Umum Efek Perseroan c. Public Offering of Shares of the Company

Perseroan mendapat persetujuan melalui Keputusan Menteri Keuangan No. 859/KMK.01/1987 tanggal 23 Desember 1987, juncto Keputusan Menteri Keuangan No. 1548/KMK.013/1990 tanggal 4 Desember 1990 untuk menawarkan saham kepada masyarakat. Berdasarkan izin Menteri Keuangan cq Ketua Badan Pengawas Pasar Modal dan Lembaga Keuangan (“BAPEPAMLK”) No. S-622.PM/1991 tanggal 17 Mei 1991, Perseroan melakukan Penawaran Umum Perdana atas 40.000.000 saham lembar saham, dengan nilai nominal Rp 1.000 (nilai penuh) per saham dengan harga penawaran Rp 7.000 (nilai penuh) per lembar saham, sehingga jumlah saham beredar meningkat menjadi 70.000.000 lembar saham.

The Company obtained the approval of the Minister of Finance in his decision No. 859/KMK.01/1987 dated 23 December 1987, as amended by Decree No. 1548/KMK.013/1990 dated 4 December 1990, to offer its shares to the public. Based on the approval of the Minister of Finance cq Head of Capital Market and Financial Institutions Supervisory Agency ("BAPEPAM-LK") No. S-622.PM/1991 dated 17 May 1991, the Company conducted an Initial Public Offering of 40,000,000 shares, with par value of Rp 1,000 (full amount) per share with offering price of Rp 7,000 (full amount) per share, such that issued shares increased to 70,000,000 shares.

Pada tahun 1995, Perseroan melakukan pencatatan tambahan 78.288.000 saham, dengan harga penawaran Rp 1.000 (nilai penuh) per saham. Selanjutnya, Perseroan melakukan Penawaran Umum Terbatas dengan Hak Memesan Efek Terlebih Dahulu dengan dasar tiga lembar saham baru untuk setiap satu lembar saham beredar, yang meningkatkan jumlah saham beredar sebesar 444.864.000 lembar saham, dengan harga penawaran Rp 1.000 (nilai penuh). Dengan demikian, jumlah saham beredar Perseroan menjadi 593.152.000 lembar saham.

In 1995, the Company conducted an additional listing of 78,288,000 shares with offering price of Rp 1,000 (full amount) per share. Subsequently, the Company conducted Limited Public Offering with pre-emptive rights on a three to one basis, increasing the number of shares issued 444,864,000 shares, with offering price of Rp 1,000 (full amount). Therefore, the total shares issued increased to become 593,152,000 shares.

Pada tahun 2007, Perseroan melakukan pemecahan saham dengan perbandingan 1:10, yang meningkatkan jumlah saham beredar menjadi 5.931.520.000 lembar saham dan merubah nilai nominal saham dari Rp 1.000 (nilai penuh) menjadi Rp 100 (nilai penuh).

In 2007, the Company executed a stock split with a ratio of 1:10, increasing the number of share issued to 5,931,520,000 shares and changed in par value from Rp 1,000 (full amount) to Rp 100 (full amount).

Seluruh saham Perseroan telah dicatatkan pada Bursa Efek Indonesia.

All of the Company’s issued shares are listed on the Indonesia Stock Exchange.

300









2. KEBIJAKAN AKUNTANSI PENTING (lanjutan) 2. SIGNIFICANT ACCOUNTING POLICIES

(continued)

b. Perubahan pada Pernyataan Standar Akuntansi Keuangan (‘‘PSAK’’) dan Interprestasi Pernyataan Standar Akuntansi Keuangan (‘‘ISAK’’)

b. Changes to the Statements of Financial Accounting Standards (‘‘SFAS’’) and Interpretations of Statements of Financial Accounting Standards (‘‘ISFAS’’)

Standar dan interpretasi baru/revisi yang relevan terhadap kegiatan operasi Grup dan berlaku untuk tahun buku yang dimulai pada atau setelah tanggal 1 Januari 2019 adalah sebagai berikut:

New/amended standards and interpretations relevant to the Group’s operation that are effective for the financial year beginning on or after 1 January 2019 are as follows:

PSAK 22 (amandemen), Kombinasi Bisnis PSAK 22 (amendment), Business

Combination PSAK 24 (amendemen), Imbalan Kerja PSAK 24 (amendment), Employee Benefits PSAK 26 (amandemen), Biaya Pinjaman PSAK 26 (amendment), Borrowing Costs PSAK 46 (amandemen), Pajak Penghasilan PSAK 46 (amendment), Income Taxes PSAK 66 (amandemen), Pengaturan

Bersama PSAK 66 (amendment), Joint Arrangements

ISAK 33, Transaksi Valuta Asing dan Imbalan di muka

ISAK 33, Foreign Currency Transactions and Advance Consideration

ISAK 34, Ketidakpastian dalam Perlakuan Pajak Penghasilan

ISAK 34, Uncertainty over Income Tax Treatments

Penerapan dari standar dan interpretasi baru/revisi tidak menimbulkan perubahan substansial terhadap kebijakan akuntansi Grup dan pengaruh yang material atas jumlah yang dilaporkan atas tahun berjalan atau tahun sebelumnya.

The adoption of the new/amended standards and interpretations did not result in substantial changes to the Group’s accounting policies and had no material effect on the amounts reported for the current or prior financial years.

Standar dan interpretasi baru/revisi yang relevan terhadap kegiatan operasi Grup yang telah dikeluarkan tetapi belum wajib diterapkan untuk tahun buku yang dimulai pada atau setelah tanggal 1 Januari 2019 dan belum diterapkan secara dini oleh Grup adalah sebagai berikut:

New/amended standards and interpretations that relevant to the Group’s operation have been published that are not mandatory for the financial year beginning on or after 1 January 2019 and have not been early adopted by Group are as follows:

PSAK 1 (amandemen), Penyajian Laporan

Keuangan PSAK 1 (amendment), Presentation of

Financial Statements PSAK 15 (amendemen), Investasi pada

Entitas Asosiasi dan Ventura Bersama tentang Kepentingan Jangka Panjang pada Entitas Asosiasi dan Ventura Bersama

PSAK 15 (amendment), Investments in Associates and Joint Ventures: Long Term Interest in Associate and Joint Ventures

PSAK 22 (amandemen), Kombinasi Bisnis PSAK 22 (amendment), Business Combination

PSAK 25, Kebijakan Akuntansi, Perubahan Estimasi Akuntansi, dan Kesalahan

PSAK 25, Accounting Policies, Changes in Accounting Estimates and Errors

PSAK 71, Instrumen Keuangan PSAK 71, Financial Instruments PSAK 72, Pendapatan dari Kontrak dengan

Pelanggan PSAK 72, Revenue from Contracts with

Customers PSAK 73, Sewa PSAK 73, Leases







2. KEBIJAKAN AKUNTANSI PENTING 2. SIGNIFICANT ACCOUNTING POLICIES

Laporan keuangan konsolidasian ini telah diotorisasi oleh Direksi pada tanggal 12 Maret 2020.

The consolidated financial statements have been authorised by Directors on 12 March 2020.

Berikut ini adalah ikhtisar kebijakan akuntansi penting yang diterapkan dalam penyusunan laporan keuangan konsolidasian

The principal accounting policies applied in the preparation of the consolidated financial statements are set out below.

a. Dasar Penyusunan a. Basis of Preparation

Dasar penyusunan laporan keuangan konsolidasian adalah biaya historis, kecuali instrumen keuangan tertentu yang diukur pada nilai wajar melalui laba rugi pada setiap akhir periode pelaporan, yang dijelaskan dalam kebijakan akuntansi di bawah ini serta menggunakan dasar akrual kecuali untuk laporan arus kas konsolidasian.

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured fair value through profit or loss at the end of each reporting period, as explained in the accounting policies below and using the accrual basis except for the consolidated statement of cash flow.

Laporan arus kas konsolidasian disusun dengan menggunakan metode langsung dengan mengelompokkan arus kas ke dalam aktivitas operasi, investasi dan pendanaan.

The consolidated statement of cash flow is prepared based on the direct method by classifying cash flows on the basis of operating, investing, and financing activities.

Penyusunan laporan keuangan konsolidasian Grup, sesuai dengan Standar Akuntansi Keuangan di Indonesia dan peraturan Badan Pengawas Pasar Modal dan Lembaga Keuangan (“Bapepam-LK”) Indonesia; sekarang Otoritas Jasa Keuangan (“OJK”) No. VIII.G.7 tentang Penyajian dan Pengungkapan Laporan Keuangan Emiten atau Perusahaan Publik, yang terlampir dalam surat keputusan No. KEP-347/BL/2012.

The preparation of the consolidated financial statements of the Group are in conformity with Indonesian Financial Accounting Standards and Indonesian Capital Market and Financial Institution Supervisory Agency’s (“Bapepam-LK”) regulations; now Authority of Financial Services (“OJK”) No. VIII.G.7 regarding the Presentation and Disclosures of Financial Statements of Listed Entity, enclosed in the decision letter No. KEP-347/BL/2012.

Seluruh angka dalam laporan keuangan konsolidasian ini, dibulatkan dan disajikan dalam jutaan Rupiah (“Rp”), kecuali dinyatakan lain. Lihat Catatan 2d untuk informasi mata uang fungsional Grup.

Figures in the consolidated financial statements are rounded to and stated in millions of Rupiah (“Rp”), unless otherwise stated. Refer to Notes 2d for the information on the Group’s functional currency.

Penyusunan laporan keuangan konsolidasian sesuai dengan Standar Akuntansi Keuangan di Indonesia mengharuskan penggunaan estimasi dan asumsi. Hal tersebut juga mengharuskan manajemen untuk membuat pertimbangan dalam proses penerapan kebijakan akuntansi Grup. Area yang kompleks atau memerlukan tingkat pertimbangan yang lebih tinggi atau area di mana asumsi dan estimasi dapat berdampak signifikan terhadap laporan keuangan konsolidasian diungkapkan di Catatan 3.

The preparation of consolidated financial statements in conformity with Indonesian Financial Accounting Standards requires the use of certain critical accounting estimates and asumptions. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3.

301










(continued)

b. Perubahan pada Pernyataan Standar Akuntansi Keuangan (‘‘PSAK’’) dan Interprestasi Pernyataan Standar Akuntansi Keuangan (‘‘ISAK’’)

b. Changes to the Statements of Financial Accounting Standards (‘‘SFAS’’) and Interpretations of Statements of Financial Accounting Standards (‘‘ISFAS’’)

Standar dan interpretasi baru/revisi yang relevan terhadap kegiatan operasi Grup dan berlaku untuk tahun buku yang dimulai pada atau setelah tanggal 1 Januari 2019 adalah sebagai berikut:

New/amended standards and interpretations relevant to the Group’s operation that are effective for the financial year beginning on or after 1 January 2019 are as follows:

PSAK 22 (amandemen), Kombinasi Bisnis PSAK 22 (amendment), Business

Combination PSAK 24 (amendemen), Imbalan Kerja PSAK 24 (amendment), Employee Benefits PSAK 26 (amandemen), Biaya Pinjaman PSAK 26 (amendment), Borrowing Costs PSAK 46 (amandemen), Pajak Penghasilan PSAK 46 (amendment), Income Taxes PSAK 66 (amandemen), Pengaturan

Bersama PSAK 66 (amendment), Joint Arrangements

ISAK 33, Transaksi Valuta Asing dan Imbalan di muka

ISAK 33, Foreign Currency Transactions and Advance Consideration

ISAK 34, Ketidakpastian dalam Perlakuan Pajak Penghasilan

ISAK 34, Uncertainty over Income Tax Treatments

Penerapan dari standar dan interpretasi baru/revisi tidak menimbulkan perubahan substansial terhadap kebijakan akuntansi Grup dan pengaruh yang material atas jumlah yang dilaporkan atas tahun berjalan atau tahun sebelumnya.

The adoption of the new/amended standards and interpretations did not result in substantial changes to the Group’s accounting policies and had no material effect on the amounts reported for the current or prior financial years.

Standar dan interpretasi baru/revisi yang relevan terhadap kegiatan operasi Grup yang telah dikeluarkan tetapi belum wajib diterapkan untuk tahun buku yang dimulai pada atau setelah tanggal 1 Januari 2019 dan belum diterapkan secara dini oleh Grup adalah sebagai berikut:

New/amended standards and interpretations that relevant to the Group’s operation have been published that are not mandatory for the financial year beginning on or after 1 January 2019 and have not been early adopted by Group are as follows:

PSAK 1 (amandemen), Penyajian Laporan

Keuangan PSAK 1 (amendment), Presentation of

Financial Statements PSAK 15 (amendemen), Investasi pada

Entitas Asosiasi dan Ventura Bersama tentang Kepentingan Jangka Panjang pada Entitas Asosiasi dan Ventura Bersama

PSAK 15 (amendment), Investments in Associates and Joint Ventures: Long Term Interest in Associate and Joint Ventures

PSAK 22 (amandemen), Kombinasi Bisnis PSAK 22 (amendment), Business Combination

PSAK 25, Kebijakan Akuntansi, Perubahan Estimasi Akuntansi, dan Kesalahan

PSAK 25, Accounting Policies, Changes in Accounting Estimates and Errors

PSAK 71, Instrumen Keuangan PSAK 71, Financial Instruments PSAK 72, Pendapatan dari Kontrak dengan

Pelanggan PSAK 72, Revenue from Contracts with

Customers PSAK 73, Sewa PSAK 73, Leases

302










(continued)

c. Prinsip-prinsip Konsolidasi (lanjutan) c. Principles of Consolidation (continued) Selisih lebih imbalan yang dialihkan, jumlah setiap kepentingan nonpengendali pada pihak diakuisisi dan nilai wajar pada tanggal akuisisi kepentingan ekuitas sebelumnya dimiliki oleh pihak pengakuisisi pada pihak diakuisisi atas nilai wajar aset bersih teridentifikasi yang diperoleh dicatat sebagai goodwill (Catatan 12). Jika jumlah tersebut lebih rendah dari nilai wajar aset bersih teridentifikasi atas bisnis yang diakuisisi dalam kasus pembelian dengan diskon, selisihnya diakui dalam laba rugi.

The excess of the consideration transferred the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the net identifiable assets acquired is recorded as goodwill (Note 12). If those amount are less than the fair value of the net identifiable assets of the business acquired, in the case of a bargain purchase, the difference is recognised directly in profit or loss.

Biaya yang terkait dengan akuisisi dibebankan pada saat terjadinya.

Acquisition-related costs are expensed as incurred.

Ventura bersama adalah suatu entitas dimana Grup memiliki pengendalian bersama dengan satu venturer atau lebih. Entitas asosiasi adalah seluruh entitas dimana Grup memiliki pengaruh signifikan namun bukan pengendalian, biasanya melalui kepemilikan hak suara antara 20% dan 50%. Investasi pada ventura bersama dan entitas asosiasi dicatat dengan metode ekuitas, setelah pada awalnya diakui pada nilai perolehan.

Joint ventures are entities which the Group jointly controls with one or more other venturers. Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investment in joint venture and associates are accounted for using the equity method of accounting, after initially being recognised at cost.

Transaksi, saldo dan keuntungan antar entitas Grup yang belum direalisasi telah dieliminasi. Kerugian yang belum direalisasi juga dieliminasi. Jika diperlukan, nilai yang dilaporkan oleh entitas anak telah diubah untuk menyesuaikan dengan kebijakan akuntansi yang diadopsi oleh Grup.

Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. When necessary amounts reported by subsidiaries have been adjusted to conform to the Group’s accounting policies.

d. Transaksi dan Penjabaran Laporan

Keuangan Dalam Mata Uang Asing d. Foreign Currency Transactions and

Translation Mata uang fungsional dan penyajian Functional and presentation currency Pos-pos yang disertakan dalam laporan keuangan setiap entitas anggota Grup diukur menggunakan mata uang yang sesuai dengan lingkungan ekonomi utama dimana entitas beroperasi ("mata uang fungsional").

Items included in the financial statements of each of the Group’s entites are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”).

Mata uang fungsional Perseroan dan sebagian besar dari entitas anak adalah Rupiah. Laporan keuangan konsolidasian disajikan dalam mata uang Rupiah.

The functional currency of the Company and most of subsidiaries is Rupiah. The consolidated financial statements are presented in Rupiah.








(continued)

b. Perubahan pada Pernyataan Standar Akuntansi Keuangan (‘‘PSAK’’) dan Interprestasi Pernyataan Standar Akuntansi Keuangan (‘‘ISAK’’) (lanjutan)

b. Changes to the Statements of Financial Accounting Standards (‘‘SFAS’’) and Interpretations of Statements of Financial Accounting Standards (‘‘ISFAS’’) (continued)

Pada saat laporan keuangan konsolidasian diotorisasi, Grup masih mempelajari dampak yang mungkin timbul dari penerapan standar baru dan revisi yang telah diterbitkan namun belum berlaku efektif di atas serta pengaruhnya pada laporan keuangan konsolidasian Grup.

As at the authorisation date of these consolidated financial statements, the Group is still evaluating the potential impact of the implementation of the above new and amended standards issued but not yet effective to the Group’s consolidated financial statements.

c. Prinsip-prinsip Konsolidasi dan Investasi

Entitas Asosiasi c. Principles of Consolidation and Investment

in Associates Entitas anak adalah seluruh entitas (termasuk entitas terstruktur) dimana Grup memiliki pengendalian. Grup mengendalikan entitas lain ketika Grup terekspos atas, atau memiliki hak untuk, pengembalian yang bervariasi dari keterlibatannya dengan entitas dan memiliki kemampuan untuk mempengaruhi pengembalian tersebut melalui kekuasaannya atas entitas tersebut. Entitas anak dikonsolidasikan secara penuh sejak tanggal di mana pengendalian dialihkan kepada Grup. Entitas anak tidak dikonsolidasikan lagi sejak tanggal dimana Grup kehilangan pengendalian.

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which that control ceases.

Grup menerapkan metode akuisisi untuk mencatat kombinasi bisnis. Imbalan yang dialihkan untuk akuisisi suatu entitas anak adalah sebesar nilai wajar aset yang dialihkan, liabilitas yang diakui terhadap pemilik pihak yang diakusisi sebelumnya dan kepentingan ekuitas yang diterbitkan oleh Grup. Imbalan yang dialihkan termasuk nilai wajar aset atau liabilitas yang timbul dari kesepakatan imbalan kontinjensi. Aset teridentifikasi yang diperoleh dan liabilitas serta liabilitas kontinjensi yang diambil alih dalam suatu kombinasi bisnis diukur pada awalnya sebesar nilai wajar pada tanggal akuisisi.

The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

Grup mengakui kepentingan nonpengendali pada pihak yang diakuisisi sebesar bagian proporsional kepentingan nonpengendali atas aset neto pihak yang diakuisisi. Kepentingan nonpengendali disajikan di ekuitas dalam laporan posisi keuangan konsolidasian, terpisah dari ekuitas pemilik entitas induk.

The Group recognises any non-controlling interest in the acquiree at the non-controlling interest’s proportionate share of the acquiree’s net assets. Non-controlling interest is reported as equity in the consolidated statement of financial position, separate from the owner of the parent’s equity.

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(continued)

c. Prinsip-prinsip Konsolidasi (lanjutan) c. Principles of Consolidation (continued) Selisih lebih imbalan yang dialihkan, jumlah setiap kepentingan nonpengendali pada pihak diakuisisi dan nilai wajar pada tanggal akuisisi kepentingan ekuitas sebelumnya dimiliki oleh pihak pengakuisisi pada pihak diakuisisi atas nilai wajar aset bersih teridentifikasi yang diperoleh dicatat sebagai goodwill (Catatan 12). Jika jumlah tersebut lebih rendah dari nilai wajar aset bersih teridentifikasi atas bisnis yang diakuisisi dalam kasus pembelian dengan diskon, selisihnya diakui dalam laba rugi.

The excess of the consideration transferred the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the net identifiable assets acquired is recorded as goodwill (Note 12). If those amount are less than the fair value of the net identifiable assets of the business acquired, in the case of a bargain purchase, the difference is recognised directly in profit or loss.

Biaya yang terkait dengan akuisisi dibebankan pada saat terjadinya.

Acquisition-related costs are expensed as incurred.

Ventura bersama adalah suatu entitas dimana Grup memiliki pengendalian bersama dengan satu venturer atau lebih. Entitas asosiasi adalah seluruh entitas dimana Grup memiliki pengaruh signifikan namun bukan pengendalian, biasanya melalui kepemilikan hak suara antara 20% dan 50%. Investasi pada ventura bersama dan entitas asosiasi dicatat dengan metode ekuitas, setelah pada awalnya diakui pada nilai perolehan.

Joint ventures are entities which the Group jointly controls with one or more other venturers. Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investment in joint venture and associates are accounted for using the equity method of accounting, after initially being recognised at cost.

Transaksi, saldo dan keuntungan antar entitas Grup yang belum direalisasi telah dieliminasi. Kerugian yang belum direalisasi juga dieliminasi. Jika diperlukan, nilai yang dilaporkan oleh entitas anak telah diubah untuk menyesuaikan dengan kebijakan akuntansi yang diadopsi oleh Grup.

Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. When necessary amounts reported by subsidiaries have been adjusted to conform to the Group’s accounting policies.

d. Transaksi dan Penjabaran Laporan

Keuangan Dalam Mata Uang Asing d. Foreign Currency Transactions and

Translation Mata uang fungsional dan penyajian Functional and presentation currency Pos-pos yang disertakan dalam laporan keuangan setiap entitas anggota Grup diukur menggunakan mata uang yang sesuai dengan lingkungan ekonomi utama dimana entitas beroperasi ("mata uang fungsional").

Items included in the financial statements of each of the Group’s entites are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”).

Mata uang fungsional Perseroan dan sebagian besar dari entitas anak adalah Rupiah. Laporan keuangan konsolidasian disajikan dalam mata uang Rupiah.

The functional currency of the Company and most of subsidiaries is Rupiah. The consolidated financial statements are presented in Rupiah.

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(continued) f. Instrumen Keuangan (lanjutan) f. Financial Instruments (continued)

Aset keuangan (lanjutan) Financial assets (continued)

Pinjaman yang diberikan dan piutang adalah aset keuangan nonderivatif dengan pembayaran yang tetap atau dapat ditentukan dan tidak mempunyai kuotasi harga di pasar aktif. Pinjaman yang diberikan dan piutang dimasukkan sebagai aset lancar, kecuali jika jatuh temponya melebihi 12 bulan setelah akhir periode pelaporan. Pinjaman yang diberikan dan piutang ini dimasukkan sebagai aset tidak lancar.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the end of reporting period. These are classified as non-current assets.

Pinjaman yang diberikan dan piutang Grup terdiri dari kas dan setara kas, kas yang dibatasi penggunannya, investasi jangka pendek, piutang usaha dan piutang lain-lain.

The Group’s loans and receivables comprise of cash and cash equivalents, restricted cash, short-term investments, trade receivables and other receivables.

Pinjaman yang diberikan dan piutang pada awalnya diakui sebesar nilai wajarnya ditambah biaya transaksi dan selanjutnya diukur pada biaya perolehan yang diamortisasi dengan menggunakan metode suku bunga efektif dikurangi penurunan nilai. Pinjaman yang diberikan dan piutang dihentikan pengakuannya ketika hak untuk menerima arus kas dari asset telah berakhir atau telah ditransfer dan Grup telah secara substansial mentransfer seluruh risiko dan manfaat kepemilikan.

Loans and receivables are initially recognised at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest rate method less any impairment. Loans and receivables are derecognised when the rights to receive cash flows from the assets have ceased to exist or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

Liabilitas keuangan Financial liabilities Grup mengklasifikasikan liabilitas keuangan dalam kategori berikut ini: diukur pada nilai wajar melalui laba rugi dan yang diukur pada biaya perolehan diamortisasi.

The Group classifies its financial liabilities in the following categories: at fair value through profit or loss and measured at amortised costs.

Pada tanggal 31 Desember 2019 dan 2018, Grup hanya memiliki liabilitas keuangan yang diukur pada biaya perolehan diamortisasi.

As at 31 December 2019 and 2018, the Group only had financial liabilities measured at amortised costs.

Grup memiliki liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi yang meliputi utang usaha, utang lain-lain, akrual, dan pinjaman.

The Group has financial liabilities measured at amortised cost, which comprised of trade payables, accruals, other payables, accruals and borrowings.

Setelah pengakuan awal yaitu sebesar nilai wajar ditambah biaya transaksi, Grup mengukur seluruh liabilitas keuangan pada biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif. Liabilitas keuangan dihentikan pengakuannya pada saat liabilitas tersebut dilepaskan atau dibatalkan atau kadaluarsa.

After initial recognition which is at fair value plus transaction costs, the Group measures all financial liabilities at amortised cost using effective interest rate method. Financial liabilities are derecognised when the obligation under the liability is discharged or cancelled or expired.








(continued)

d. Transaksi dan Penjabaran Laporan Keuangan Dalam Mata Uang Asing (lanjutan)

d. Foreign Currency Transactions and Translation (continued)

Mata uang fungsional dan penyajian (lanjutan) Functional and presentation currency (continued) Aset dan kewajiban entitas anak dengan mata uang fungsional yang bukan Rupiah dijabarkan ke dalam mata uang penyajian. Selisih kurs yang dihasilkan diakui pada penghasilan komprehensif lain-lain dan diakumulasikan dalam ekuitas pada komponen ekuitas lainnya.

The assets and liabilities of subsidiaries for which functional currency is not Rupiah are translated into presentation currency. The resulting exchange differences are recognised in the other comprehensive income and accumulated in equity under other equity components.

Transaksi dan saldo Transactions and balances Transaksi dalam mata uang asing dijabarkan ke dalam mata uang Rupiah dengan menggunakan kurs yang berlaku pada tanggal transaksi. Aset dan liabilitas moneter dalam mata uang asing dijabarkan ke dalam mata uang Rupiah dengan menggunakan kurs yang berlaku pada akhir periode pelaporan.

Foreign currency transactions are translated into Rupiah using the exchange rates prevailing at the dates of the transactions. Foreign currency monetary assets and liabilities are translated into Rupiah at the rates of exchange prevailing at the end of the reporting period.

Kurs utama yang digunakan, berdasarkan kurs tengah yang diterbitkan Bank Indonesia, adalah sebagai berikut (nilai penuh):

The main exchange rates used, based on the middle rate published by the Indonesian Central Bank, are as follows (full amount):

2019 2018

Dolar Amerika Serikat ("USD") 13.901 14.481 United States Dollar ("USD")Dong Vietnam ("VND") Vietnamese Dong ("VND") (per Rp 1.000 jumlah penuh) 600 625 (at Rp 1,000 full amount) Euro ("EUR") 15.589 16.560 Euro (''EUR'')

e. Transaksi Pihak-pihak Berelasi e. Transactions with Related Parties Grup melakukan transaksi dengan pihak-pihak berelasi sebagaimana didefinisikan dalam PSAK 7, Pengungkapan Pihak-Pihak Berelasi.

The Group enters into transactions with related parties as defined in PSAK 7, Related Party Disclosures.

Seluruh transaksi dan saldo material dengan pihak-pihak berelasi diungkapkan dalam catatan atas laporan keuangan konsolidasian.

All significant transactions and balances with related parties are disclosed in the notes to consolidated financial statements.

f. Instrumen Keuangan f. Financial Instruments

Aset keuangan Financial assets

Grup mengklasifikasikan aset keuangan dalam kategori berikut ini: diukur pada nilai wajar melalui laba rugi, pinjaman dan piutang, tersedia untuk dijual, serta dimiliki hingga jatuh tempo.

The Group classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, available-for-sale, and held to maturity.

Pada tanggal 31 Desember 2019 dan 2018, Grup memiliki aset keuangan yang diklasifikasikan sebagai pinjaman yang diberikan dan piutang.

As at 31 December 2019 and 2018, the Group has financial assets classified as loans and receivables.

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Aset keuangan (lanjutan) Financial assets (continued)

Pinjaman yang diberikan dan piutang adalah aset keuangan nonderivatif dengan pembayaran yang tetap atau dapat ditentukan dan tidak mempunyai kuotasi harga di pasar aktif. Pinjaman yang diberikan dan piutang dimasukkan sebagai aset lancar, kecuali jika jatuh temponya melebihi 12 bulan setelah akhir periode pelaporan. Pinjaman yang diberikan dan piutang ini dimasukkan sebagai aset tidak lancar.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the end of reporting period. These are classified as non-current assets.

Pinjaman yang diberikan dan piutang Grup terdiri dari kas dan setara kas, kas yang dibatasi penggunannya, investasi jangka pendek, piutang usaha dan piutang lain-lain.

The Group’s loans and receivables comprise of cash and cash equivalents, restricted cash, short-term investments, trade receivables and other receivables.

Pinjaman yang diberikan dan piutang pada awalnya diakui sebesar nilai wajarnya ditambah biaya transaksi dan selanjutnya diukur pada biaya perolehan yang diamortisasi dengan menggunakan metode suku bunga efektif dikurangi penurunan nilai. Pinjaman yang diberikan dan piutang dihentikan pengakuannya ketika hak untuk menerima arus kas dari asset telah berakhir atau telah ditransfer dan Grup telah secara substansial mentransfer seluruh risiko dan manfaat kepemilikan.

Loans and receivables are initially recognised at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest rate method less any impairment. Loans and receivables are derecognised when the rights to receive cash flows from the assets have ceased to exist or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

Liabilitas keuangan Financial liabilities Grup mengklasifikasikan liabilitas keuangan dalam kategori berikut ini: diukur pada nilai wajar melalui laba rugi dan yang diukur pada biaya perolehan diamortisasi.

The Group classifies its financial liabilities in the following categories: at fair value through profit or loss and measured at amortised costs.

Pada tanggal 31 Desember 2019 dan 2018, Grup hanya memiliki liabilitas keuangan yang diukur pada biaya perolehan diamortisasi.

As at 31 December 2019 and 2018, the Group only had financial liabilities measured at amortised costs.

Grup memiliki liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi yang meliputi utang usaha, utang lain-lain, akrual, dan pinjaman.

The Group has financial liabilities measured at amortised cost, which comprised of trade payables, accruals, other payables, accruals and borrowings.

Setelah pengakuan awal yaitu sebesar nilai wajar ditambah biaya transaksi, Grup mengukur seluruh liabilitas keuangan pada biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif. Liabilitas keuangan dihentikan pengakuannya pada saat liabilitas tersebut dilepaskan atau dibatalkan atau kadaluarsa.

After initial recognition which is at fair value plus transaction costs, the Group measures all financial liabilities at amortised cost using effective interest rate method. Financial liabilities are derecognised when the obligation under the liability is discharged or cancelled or expired.

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(continued)

g. Kas dan Setara Kas g. Cash and Cash Equivalents Kas dan setara kas mencakup kas, simpanan yang sewaktu-waktu bisa dicairkan dan investasi likuid jangka pendek lainnya dengan yang jatuh tempo dalam waktu tiga bulan atau kurang.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

Deposito berjangka dan call deposits yang jatuh tempo lebih dari tiga bulan disajikan sebagai “investasi jangka pendek”.

Call and time deposits with maturities over three months are included within “short-term investments”.

Kas dan setara kas yang dibatasi penggunaannya disajikan sebagai “kas yang dibatasi penggunaannya”.

Cash and time deposits, which are restricted in use, are included within "restricted cash”.

h. Piutang Usaha dan Lain-lain h. Trade and Other Receivables

Piutang usaha adalah jumlah piutang dari pelanggan untuk barang yang dijual atau jasa yang diberikan dalam kegiatan usaha biasa. Piutang lain-lain adalah piutang dari transaksi selain penjualan barang dan jasa.

Trade receivables are amounts due from customers for goods sold or services rendered in the ordinary course of business. Other receivables are receivables from transactions other than the sale of goods and services.

Piutang usaha dan piutang lain-lain pada awalnya diakui sebesar nilai wajar dan selanjutnya diukur sebesar biaya perolehan yang diamortisasi dengan menggunakan metode bunga efektif, kecuali dampak diskontonya tidak signifikan, dikurangi penyisihan untuk penurunan nilai.

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, unless the impact of discounting is not significant, less any provision for impairment.

Penyisihan penurunan nilai piutang diukur berdasarkan penelaahan atas kolektibilitas saldo piutang. Piutang dihapuskan pada saat piutang tersebut dipastikan tidak akan tertagih.

A provision for impairment of trade receivables is established based on a review of the collectibility of outstanding amounts. Accounts are written-off as bad debts during the period in which they are determined to be non-collectible.

i. Persediaan i. Inventories

Persediaan dinyatakan berdasarkan biaya perolehan atau nilai realisasi bersih, mana yang lebih rendah. Biaya perolehan ditentukan dengan metode rata-rata tertimbang untuk barang jadi dan barang dalam proses serta metode rata-rata bergerak untuk bahan baku, penolong dan suku cadang. Harga perolehan barang jadi dan barang dalam proses terdiri dari biaya bahan baku, tenaga kerja langsung, biaya-biaya langsung lainnya dan biaya overhead yang dinyatakan sebesar nilai yang terkait dengan produksi. Nilai realisasi bersih adalah taksiran harga jual dalam kegiatan usaha dikurangi taksiran biaya penyelesaian dan taksiran biaya yang diperlukan untuk melakukan penjualan.

Inventories are stated at cost or net realizable value, whichever is lower. Cost is determined using the weighted average method for finished goods and work-in-progress and using the moving average method for raw and indirect materials and spare parts. The cost of finished goods and work-in-progress comprises of raw and indirect materials, direct labor, other direct costs and related production overheads. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated selling cost necessary to make the sale.









Saling hapus antar instrumen keuangan Offsetting financial instruments Aset keuangan dan liabilitas keuangan disalinghapuskan dan jumlah netonya dilaporkan pada laporan posisi keuangan ketika terdapat hak yang berkekuatan hukum untuk melakukan saling hapus atas jumlah yang telah diakui tersebut dan adanya niat untuk menyelesaikan secara neto, atau untuk merealisasikan aset dan menyelesaikan liabilitas secara bersamaan. Hak saling hapus tidak kontinjen atas peristiwa di masa depan dan dapat dipaksakan secara hukum dalam situasi bisnis yang normal dan dalam peristiwa gagal bayar, atau peristiwa kepailitan atau kebangkrutan Grup atau pihak lawan.

Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default in solvency or bankcrupty of the Group or the counterparty.

Penurunan nilai aset keuangan Impairment of financial assets Pada setiap akhir periode pelaporan, Grup menilai apakah terdapat bukti objektif bahwa aset keuangan atau kelompok aset keuangan telah mengalami penurunan nilai. Aset keuangan atau kelompok aset keuangan diturunkan nilainya dan kerugian penurunan nilai terjadi hanya jika terdapat bukti objektif bahwa penurunan nilai merupakan akibat dari satu atau lebih peristiwa yang terjadi setelah pengakuan awal aset (peristiwa kerugian) dan peristiwa kerugian (atau peristiwa) tersebut memiliki dampak pada estimasi arus kas masa datang atas aset keuangan atau kelompok aset keuangan yang dapat diestimasi secara andal.

At the end of each reporting period, the Group assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a loss event) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

Untuk kategori pinjaman yang diberikan dan piutang, kerugian penurunan nilai diukur sebagai selisih antara jumlah tercatat aset dengan nilai kini estimasi arus kas masa depan yang didiskontokan menggunakan suku bunga efektif pada saat pengakuan awal dari aset tersebut. Jumlah tercatat aset tersebut dikurangi melalui penggunaan akun penyisihan. Jumlah kerugian yang terjadi diakui dalam laba rugi.

For the loan and receivables, loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at original effective interest rate of the financial assets. The carrying amount of the asset is reduced through the use of an allowance account. The amount of the loss is recognised in profit or loss.

Manajemen awalnya akan menentukan apakah terdapat bukti objektif penurunan nilai secara individual atas aset keuangan yang signifikan secara individual. Jika tidak terdapat bukti objektif mengenai penurunan nilai aset keuangan secara individual, terlepas aset keuangan tersebut signifikan atau tidak, maka aset tersebut dimasukkan ke dalam kelompok aset keuangan dengan karakteristik risiko kredit yang serupa dan menentukan penurunan nilai secara kolektif.

Management initially assesses whether objective evidence of impairment exists individually for financial assets that are individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset whether significant or not, it includes the asset in a group of financial assets with similiar credit risk characteristics and collectively assesses them for impairment.

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g. Kas dan Setara Kas g. Cash and Cash Equivalents Kas dan setara kas mencakup kas, simpanan yang sewaktu-waktu bisa dicairkan dan investasi likuid jangka pendek lainnya dengan yang jatuh tempo dalam waktu tiga bulan atau kurang.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

Deposito berjangka dan call deposits yang jatuh tempo lebih dari tiga bulan disajikan sebagai “investasi jangka pendek”.

Call and time deposits with maturities over three months are included within “short-term investments”.

Kas dan setara kas yang dibatasi penggunaannya disajikan sebagai “kas yang dibatasi penggunaannya”.

Cash and time deposits, which are restricted in use, are included within "restricted cash”.

h. Piutang Usaha dan Lain-lain h. Trade and Other Receivables

Piutang usaha adalah jumlah piutang dari pelanggan untuk barang yang dijual atau jasa yang diberikan dalam kegiatan usaha biasa. Piutang lain-lain adalah piutang dari transaksi selain penjualan barang dan jasa.

Trade receivables are amounts due from customers for goods sold or services rendered in the ordinary course of business. Other receivables are receivables from transactions other than the sale of goods and services.

Piutang usaha dan piutang lain-lain pada awalnya diakui sebesar nilai wajar dan selanjutnya diukur sebesar biaya perolehan yang diamortisasi dengan menggunakan metode bunga efektif, kecuali dampak diskontonya tidak signifikan, dikurangi penyisihan untuk penurunan nilai.

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, unless the impact of discounting is not significant, less any provision for impairment.

Penyisihan penurunan nilai piutang diukur berdasarkan penelaahan atas kolektibilitas saldo piutang. Piutang dihapuskan pada saat piutang tersebut dipastikan tidak akan tertagih.

A provision for impairment of trade receivables is established based on a review of the collectibility of outstanding amounts. Accounts are written-off as bad debts during the period in which they are determined to be non-collectible.

i. Persediaan i. Inventories

Persediaan dinyatakan berdasarkan biaya perolehan atau nilai realisasi bersih, mana yang lebih rendah. Biaya perolehan ditentukan dengan metode rata-rata tertimbang untuk barang jadi dan barang dalam proses serta metode rata-rata bergerak untuk bahan baku, penolong dan suku cadang. Harga perolehan barang jadi dan barang dalam proses terdiri dari biaya bahan baku, tenaga kerja langsung, biaya-biaya langsung lainnya dan biaya overhead yang dinyatakan sebesar nilai yang terkait dengan produksi. Nilai realisasi bersih adalah taksiran harga jual dalam kegiatan usaha dikurangi taksiran biaya penyelesaian dan taksiran biaya yang diperlukan untuk melakukan penjualan.

Inventories are stated at cost or net realizable value, whichever is lower. Cost is determined using the weighted average method for finished goods and work-in-progress and using the moving average method for raw and indirect materials and spare parts. The cost of finished goods and work-in-progress comprises of raw and indirect materials, direct labor, other direct costs and related production overheads. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated selling cost necessary to make the sale.

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k. Aset Tetap (lanjutan) k. Fixed Assets (continued) Biaya legal awal untuk mendapatkan hak legal diakui sebagai bagian biaya akuisisi tanah, biaya-biaya tersebut tidak didepresiasikan. Biaya terkait dengan pembaruan hak atas tanah diakui sebagai aset takberwujud dan diamortisasi sepanjang umur hukum hak.

Initial legal costs incurred to obtain legal rights are recognised as part of the acquisition cost of the land, and these costs are not depreciated. Costs related to renewal of land rights are recognised as intangible assets and amortised during the period of the land rights.

Suku cadang utama dan peralatan siap pakai diklasifikasikan sebagai aset tetap bila diperkirakan akan digunakan dalam operasi selama lebih dari satu tahun.

Major spare parts and stand-by equipment are classified as fixed assets when they are expected to be used in operations during more than one year.

Tanah tidak disusutkan. Land is not depreciated. Penyusutan (selain tanah pertambangan) dihitung menggunakan metode garis lurus setelah memperhitungkan nilai residu berdasarkan taksiran masa manfaat ekonomis aset tetap sebagai berikut:

Depreciation (except for mining properties) is calculated using the straight-line method after calculating the residual value based on the estimated useful lives of the assets as follows:

Tahun/ Years Bangunan, jalan, jembatan dan pelabuhan 15 - 50 Buildings, roads, bridges and harbors Mesin 2 - 50 Machinery Alat-alat berat dan kendaraan 4 - 30 Heavy equipment and vehicles Perlengkapan dan peralatan kantor 2 - 8 Furniture and office equipment Nilai sisa aset, masa manfaat dan metode penyusutan ditelaah dan jika perlu disesuaikan, pada setiap akhir periode pelaporan dan pengaruh dari setiap perubahan estimasi tersebut berlaku prospektif.

The assets’ residual values, useful lives and depreciation method are reviewed and adjusted if appropriate, at the end of each reporting period with the effect of any changes in estimate accounted for on a prospective basis.

Tanah pertambangan dideplesi dengan menggunakan metode unit produksi berdasarkan estimasi cadangan.

Mining properties are depleted using the unit of production method based on estimated reserves.

Nilai tercatat aset segera diturunkan sebesar jumlah yang dapat dipulihkan jika nilai tercatat aset lebih besar dari estimasi jumlah yang dapat dipulihkan.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Keuntungan atau kerugian bersih atas pelepasan aset tetap ditentukan dengan membandingkan hasil yang diterima dengan nilai tercatat dan diakui dalam laba rugi.

Net gains or losses on disposals of fixed assets are determined by comparing the proceeds with the carrying amount and are recognised in the profit or loss.








(continued)

j. Properti Investasi j. Investment Properties Properti investasi adalah properti (tanah atau bangunan atau bagian dari suatu bangunan atau kedua-duanya atau prasarana) yang dikuasai Grup untuk menghasilkan rental atau untuk kenaikan nilai atau keduanya. Properti investasi diakui sebesar biaya perolehan setelah dikurangi akumulasi penyusutan dan akumulasi kerugian penurunan nilai.

Investment properties are properties (land or a building - or part of a building - or both or infrastructures) which are held by the Group to earn rentals or for capital appreciation or both. Investment properties are stated at cost less accumulated depreciation and any accumulated impairment losses.

Penyusutan bangunan dan prasarana dihitung dengan menggunakan metode garis lurus berdasarkan taksiran masa manfaat ekonomis aset antara 10 sampai 30 tahun.

Depreciation of buildings and infrastructure is computed using the straight-line method based on the estimated useful life of the assets for 10 to 30 years.

Tanah tidak disusutkan. Land is not depreciated. Masa manfaat ekonomis, nilai residu dan nilai penyusutan ditelaah setiap akhir tahun dan pengaruh dari perubahan estimasi tersebut berlaku prospektif.

The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimated accounted for on a prospective basis.

Nilai wajar properti investasi diungkapkan dalam catatan atas laporan keuangan konsolidasian berdasarkan metode penilaian profesional untuk menentukan harga pasar kini atau dengan menerapkan metode arus kas diskonto.

The fair value of investment properties is disclosed in the notes to the consolidated financial statements based on the professional valuation methods used to determined the current market price or by applying the discounted cash flow methods.

k. Aset Tetap k. Fixed Assets

Aset tetap yang dimiliki untuk digunakan dalam produksi atau penyediaan barang atau jasa atau untuk tujuan administratif dicatat berdasarkan biaya perolehan setelah dikurangi akumulasi penyusutan dan akumulasi kerugian penurunan nilai. Harga perolehan termasuk pengeluaran yang dapat diatribusikan secara langsung atas perolehan aset tersebut. Biaya perolehan juga termasuk estimasi biaya pembongkaran, dan pemindahan aset tetap, dan restorasi lokasi aset.

Fixed assets held for use in the production or supply of goods or services, or for administrative purposes, are stated at cost, less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Such cost also includes estimated costs of dismantling and removing of the item and restoring the site on which the asset is located.

Biaya-biaya setelah pengakuan awal diakui sebagai bagian nilai tercatat aset atau sebagai aset yang terpisah, sebagaimana mestinya, hanya jika kemungkinan besar Grup mendapat manfaat ekonomis di masa depan berkenaan dengan aset tersebut dan biaya perolehan aset dapat diukur dengan andal. Nilai tercatat dari komponen yang diganti dihapuskan. Biaya perbaikan dan pemeliharaan dibebankan ke dalam laba rugi dalam periode keuangan ketika biaya-biaya tersebut terjadi.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of replaced part is derecognised. All other repairs and maintenance are charged to the profit or loss during the financial period in which they are incurred.

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k. Aset Tetap (lanjutan) k. Fixed Assets (continued) Biaya legal awal untuk mendapatkan hak legal diakui sebagai bagian biaya akuisisi tanah, biaya-biaya tersebut tidak didepresiasikan. Biaya terkait dengan pembaruan hak atas tanah diakui sebagai aset takberwujud dan diamortisasi sepanjang umur hukum hak.

Initial legal costs incurred to obtain legal rights are recognised as part of the acquisition cost of the land, and these costs are not depreciated. Costs related to renewal of land rights are recognised as intangible assets and amortised during the period of the land rights.

Suku cadang utama dan peralatan siap pakai diklasifikasikan sebagai aset tetap bila diperkirakan akan digunakan dalam operasi selama lebih dari satu tahun.

Major spare parts and stand-by equipment are classified as fixed assets when they are expected to be used in operations during more than one year.

Tanah tidak disusutkan. Land is not depreciated. Penyusutan (selain tanah pertambangan) dihitung menggunakan metode garis lurus setelah memperhitungkan nilai residu berdasarkan taksiran masa manfaat ekonomis aset tetap sebagai berikut:

Depreciation (except for mining properties) is calculated using the straight-line method after calculating the residual value based on the estimated useful lives of the assets as follows:

Tahun/ Years Bangunan, jalan, jembatan dan pelabuhan 15 - 50 Buildings, roads, bridges and harbors Mesin 2 - 50 Machinery Alat-alat berat dan kendaraan 4 - 30 Heavy equipment and vehicles Perlengkapan dan peralatan kantor 2 - 8 Furniture and office equipment Nilai sisa aset, masa manfaat dan metode penyusutan ditelaah dan jika perlu disesuaikan, pada setiap akhir periode pelaporan dan pengaruh dari setiap perubahan estimasi tersebut berlaku prospektif.

The assets’ residual values, useful lives and depreciation method are reviewed and adjusted if appropriate, at the end of each reporting period with the effect of any changes in estimate accounted for on a prospective basis.

Tanah pertambangan dideplesi dengan menggunakan metode unit produksi berdasarkan estimasi cadangan.

Mining properties are depleted using the unit of production method based on estimated reserves.

Nilai tercatat aset segera diturunkan sebesar jumlah yang dapat dipulihkan jika nilai tercatat aset lebih besar dari estimasi jumlah yang dapat dipulihkan.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Keuntungan atau kerugian bersih atas pelepasan aset tetap ditentukan dengan membandingkan hasil yang diterima dengan nilai tercatat dan diakui dalam laba rugi.

Net gains or losses on disposals of fixed assets are determined by comparing the proceeds with the carrying amount and are recognised in the profit or loss.

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l. Aset Tak berwujud (lanjutan) l. Intangible Assets Piranti Lunak Komputer Computer Software

Biaya pengembangan yang dapat secara langsung diatribusikan kepada desain dan pengujian produk piranti lunak yang dapat diidentifikasi dan unik yang dikendalikan oleh Grup diakui sebagai aset takberwujud dan diamortisasi selama estimasi masa manfaat, yang tidak lebih dari lima tahun.

Development cost that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group is recognised as intangible assets and amortised over their estimated useful lives, which does not exceed five years.

Biaya yang dapat diatribusikan secara langsung dikapitalisasi sebagai bagian produk piranti lunak mencakup beban pekerja pengembang piranti lunak dan bagian overhead yang relevan.

Directly attributable costs that are capitalized as part of the software product include the software development employee costs and an appropriate portion of relevant overheads.

Pengeluaran pengembangan yang lain yang tidak memenuhi kriteria ini diakui sebagai beban pada saat terjadinya. Biaya pengembangan yang sebelumnya diakui sebagai beban tidak dapat diakui sebagai aset pada periode berikutnya. Biaya yang terkait dengan pemeliharaan program piranti lunak komputer diakui sebagai beban pada saat terjadinya.

Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Cost associated with maintaining computer software programs are recognised as an expense as incurred.

m. Goodwill m. Goodwill

Goodwill merupakan selisih lebih biaya perolehan atas kepemilikan Grup terhadap nilai wajar aset net teridentifikasi entitas anak, pada tanggal akuisisi.

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable net assets of the acquired subsidiary, at the effective date of acquisition.

Peninjauan atas penurunan nilai pada goodwill dilakukan setahun sekali atau dapat lebih sering apabila terdapat peristiwa atau perubahan keadaan yang mengindikasikan adanya potensi penurunan nilai. Goodwill dinyatakan sebesar nilai perolehan dikurangi akumulasi kerugiaan penurunan nilai.

Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. Goodwill is carried at cost less accumulated impairment losses.

Untuk pengujian penurunan nilai, goodwill yang diperoleh dalam kombinasi bisnis dialokasikan pada setiap unit penghasil kas, atau kelompok unit penghasil kas, yang diharapkan dapat memberikan manfaat dari sinergi kombinasi bisnis tersebut. Setiap unit atau kelompok unit yang memperoleh alokasi goodwill menunjukkan tingkat terendah dalam entitas yang goodwill-nya dipantau untuk tujuan manajemen internal. Goodwill dipantau pada level segmen operasi.

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (“CGU”), or groups of CGUs, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

Rugi penurunan nilai yang diakui atas goodwill tidak dibalik lagi.

Impairment losses relating to goodwill would not be reversed.








(continued)

k. Aset Tetap (lanjutan) k. Fixed Assets (continued) Akumulasi biaya konstruksi bangunan, jalan, jembatan, pelabuhan, pembangkit tenaga listrik dan pabrik semen serta pemasangan mesin dikapitalisasi sebagai aset dalam pembangunan. Biaya bunga dan biaya pinjaman lain, seperti pinjaman yang digunakan untuk mendanai proses pembangunan aset tertentu, dikapitalisasi sampai dengan saat proses pembangunan tersebut selesai. Biaya-biaya ini direklasifikasi ke akun aset tetap pada saat proses konstruksi atau pemasangan selesai. Penyusutan aset dimulai pada saat aset tersebut siap untuk digunakan, yaitu pada saat aset tersebut berada pada lokasi dan kondisi yang diinginkan agar aset siap digunakan sesuai dengan keinginan dan maksud manajemen.

The accumulated costs of the construction of buildings, roads, bridges, harbors, power and cement plants and the installation of machinery are capitalized as construction in progress. Interest and other borrowing costs, such as fees on loans used in financing the construction of a qualifying asset, are capitalized up to the date when the construction is completed. These costs are reclassified into fixed asset accounts when the construction or installation is complete. Depreciation of an asset begins when it is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management.

Biaya bunga dan biaya pinjaman lainnya yang digunakan baik secara langsung atau tidak langsung untuk pendanaan konstruksi aset kualifikasian, dikapitalisasi hingga aset tersebut selesai secara substansial dan siap untuk digunakan. Untuk pinjaman yang dapat diatribusikan secara langsung pada aset kualifikasian, jumlah yang dikapitalisasi ditentukan dari biaya pinjaman aktual yang terjadi selama periode berjalan, dikurangi penghasilan yang diperoleh dari investasi sementara atas dana hasil pinjaman tersebut. Untuk pinjaman yang tidak dapat diatribusikan secara langsung pada suatu aset kualifikasian, jumlah yang dikapitalisasi ditentukan dengan mengalikan tingkat kapitalisasi terhadap jumlah yang dikeluarkan untuk memperoleh aset kualifikasian. Tingkat kapitalisasi dihitung berdasarkan rata-rata tertimbang biaya pinjaman yang dibagi dengan jumlah pinjaman yang tersedia selama periode, selain pinjaman yang secara spesifik diambil untuk tujuan memperoleh suatu aset kualifikasian.

Interest and other borrowing costs either directly or indirectly used in financing the construction of a qualifying asset, are capitalised up to the date the assets are substantially completed and are ready for its intended use. For borrowings that are directly attributable to a qualifying asset, the amount to be capitalised is determined as the actual borrowing cost incurred during the period, less any income earned on the temporary investment of such borrowings. For borrowings that are not directly attributable to a qualifying asset, the amount to be capitalised is determined by applying a capitalisation rate to the amount expended on the qualifying assets. the capitalisation rate is the weighted average of the total borrowing costs applicable to the total borrowings outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset.

l. Aset Tak berwujud l. Intangible Assets

Merk dan Lisensi Trademarks and Licenses Merk dan lisensi memiliki masa manfaat yang terbatas dan dicatat sebesar harga perolehan dikurangi akumulasi amortisasi dan akumulasi kerugian penurunan nilai. Jika merk dan lisensi yang diperoleh sebagai bagian dari kombinasi bisnis, maka biaya perolehannya adalah nilai wajar pada tanggal akuisisi. Amortisasi dihitung dengan menggunakan metode garis lurus untuk mengalokasikan harga perolehan merk dan lisensi selama estimasi masa manfaatnya masing-masing 10 tahun dan 40 tahun.

Trademarks and licenses have a limited useful life and are recorded at acquisition cost less accumulated amortisation and accumulated impairment losses. If the trademarks and licenses are obtained as part of a business combination, the acquisition cost is the fair value at the date of acquisition. Amortisation is calculated using the straight-line method to allocate the acquisition cost of trademarks and licenses over their estimated useful lives of 10 and 40 years, respectively.

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l. Aset Tak berwujud (lanjutan) l. Intangible Assets Piranti Lunak Komputer Computer Software

Biaya pengembangan yang dapat secara langsung diatribusikan kepada desain dan pengujian produk piranti lunak yang dapat diidentifikasi dan unik yang dikendalikan oleh Grup diakui sebagai aset takberwujud dan diamortisasi selama estimasi masa manfaat, yang tidak lebih dari lima tahun.

Development cost that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group is recognised as intangible assets and amortised over their estimated useful lives, which does not exceed five years.

Biaya yang dapat diatribusikan secara langsung dikapitalisasi sebagai bagian produk piranti lunak mencakup beban pekerja pengembang piranti lunak dan bagian overhead yang relevan.

Directly attributable costs that are capitalized as part of the software product include the software development employee costs and an appropriate portion of relevant overheads.

Pengeluaran pengembangan yang lain yang tidak memenuhi kriteria ini diakui sebagai beban pada saat terjadinya. Biaya pengembangan yang sebelumnya diakui sebagai beban tidak dapat diakui sebagai aset pada periode berikutnya. Biaya yang terkait dengan pemeliharaan program piranti lunak komputer diakui sebagai beban pada saat terjadinya.

Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Cost associated with maintaining computer software programs are recognised as an expense as incurred.

m. Goodwill m. Goodwill

Goodwill merupakan selisih lebih biaya perolehan atas kepemilikan Grup terhadap nilai wajar aset net teridentifikasi entitas anak, pada tanggal akuisisi.

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable net assets of the acquired subsidiary, at the effective date of acquisition.

Peninjauan atas penurunan nilai pada goodwill dilakukan setahun sekali atau dapat lebih sering apabila terdapat peristiwa atau perubahan keadaan yang mengindikasikan adanya potensi penurunan nilai. Goodwill dinyatakan sebesar nilai perolehan dikurangi akumulasi kerugiaan penurunan nilai.

Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. Goodwill is carried at cost less accumulated impairment losses.

Untuk pengujian penurunan nilai, goodwill yang diperoleh dalam kombinasi bisnis dialokasikan pada setiap unit penghasil kas, atau kelompok unit penghasil kas, yang diharapkan dapat memberikan manfaat dari sinergi kombinasi bisnis tersebut. Setiap unit atau kelompok unit yang memperoleh alokasi goodwill menunjukkan tingkat terendah dalam entitas yang goodwill-nya dipantau untuk tujuan manajemen internal. Goodwill dipantau pada level segmen operasi.

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (“CGU”), or groups of CGUs, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

Rugi penurunan nilai yang diakui atas goodwill tidak dibalik lagi.

Impairment losses relating to goodwill would not be reversed.

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p. Sewa (lanjutan) p. Leases (continued) Grup menyewa aset tetap tertentu. Sewa aset tetap dimana Grup, sebagai lessee, memiliki sebagian besar risiko dan manfaat kepemilikan diklasifikasikan sebagai sewa pembiayaan. Sewa pembiayaan dikapitalisasi pada awal masa sewa sebesar yang lebih rendah antara nilai wajar aset sewaan dan nilai kini pembayaran sewa minimum.

The Group leases certain fixed assets. Leases of fixed assets where the Group as lessee has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s commencement at the lower of the fair value of the leased asset and the present value of the minimum lease payments.

Setiap pembayaran sewa dialokasikan antara porsi pelunasan liabilitas dan beban keuangan. Jumlah liabilitas sewa, setelah dikurangi beban keuangan, disajikan sebagai liabilitas jangka panjang kecuali untuk bagian yang jatuh tempo dalam waktu 12 bulan atau kurang yang disajikan sebagai liabilitas jangka pendek. Unsur bunga dalam beban keuangan dibebankan ke laba rugi selama masa sewa yang menghasilkan tingkat suku bunga konstan atas saldo liabilitas. Aset tetap yang diperoleh melalui sewa pembiayaan disusutkan selama jangka waktu yang lebih pendek antara umur manfaat aset dan masa sewa.

Each lease payment is allocated between the liability portion and a finance charge. The corresponding rental obligations, net of finance charges are included in other long-term liabilities, except for those with maturities of 12 months or less which are included in current liabilities. The interest element of the finance cost is charged to profit or loss over the lease period so as to produce a constant rate of interest on the remaining balance of the liability. Fixed assets acquired under finance leases are depreciated over the shorter of the useful life of the assets or the lease term.

Sewa dimana sebagian besar risiko dan manfaat yang terkait dengan kepemilikan dipertahankan oleh lessor diklasifikasikan sebagai sewa operasi. Pembayaran sewa operasi (dikurangi insentif yang diterima dari lessor) dibebankan pada laporan laba rugi dengan menggunakan metode garis lurus selama periode sewa.

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the term of the lease.

Pendapatan sewa guna usaha dari kegiatan operasi sewa dimana Grup bertindak sebagai pemberi sewa diakui sebagai pendapatan secara garis lurus selama masa sewa.

Lease income from operating leases where the Group is a lessor is recognised in income on a straight line basis over the lease term.

q. Provisi q. Provision

Provisi diakui ketika: Grup memiliki kewajiban hukum atau konstruktif masa kini sebagai akibat peristiwa masa lalu; terdapat kemungkinan besar penyelesaian kewajiban tersebut mengakibatkan arus keluar sumber daya; dan jumlah kewajiban tersebut dapat diukur secara andal. Provisi tidak diakui untuk kerugian operasi masa depan.

Provision is recognised when: the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provision is not recognised for future operating losses.








(continued)

n. Penurunan Nilai Aset Nonkeuangan kecuali Goodwill

n. Impairment of Non-Financial Assets except Goodwill

Aset tetap dan aset takberwujud, selain goodwill diuji ketika terdapat indikasi bahwa nilai tercatatnya mungkin tidak dapat dipulihkan. Penurunan nilai diakui jika nilai tercatat aset melebihi jumlah terpulihkan. Jumlah terpulihkan adalah yang lebih tinggi antara nilai wajar aset dikurangi biaya untuk menjual dan nilai pakai aset.

Fixed assets and intangible assets, other than goodwill are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

Dalam menentukan penurunan nilai, aset dikelompokkan pada tingkat yang paling rendah dimana terdapat arus kas masuk yang dapat diidentifikasi, yang sebagian besar tidak tergantung pada arus masuk kas dari aset lain atau kelompok aset (unit penghasil kas). Aset nonkeuangan selain goodwill yang mengalami penurunan nilai diuji setiap tanggal pelaporan untuk menentukan apakah terdapat kemungkinan pemulihan penurunan nilai.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows, which are largely independent of the cash inflows from other assets or group of assets (cash generating units). Non-financial assets other than goodwill that suffer impairment are reviewed for possible reversal of the impairment at each reporting date.

Pemulihan rugi penurunan nilai, untuk aset selain goodwill, diakui jika, dan hanya jika, terdapat perubahan estimasi yang digunakan dalam menentukan jumlah terpulihkan aset sejak pengujian penurunan nilai terakhir kali. Pembalikan rugi penurunan nilai tersebut diakui dalam laba rugi.

Reversal on impairment loss for assets other than goodwill would be recognised if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment test was carried out. Reversal on impairment losses will be recognised on profit or loss.

o. Utang Usaha o. Trade Payables

Utang usaha adalah kewajiban untuk membayar barang atau jasa yang dibeli dalam kegiatan usaha biasa dari pemasok.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Utang lain-lain terutama merupakan utang atas pembelian aset tetap dan transaksi penyedia jasa untuk proyek.

Other payables primarily represents payables for purchase of fixed assets and transaction services for the project.

Utang usaha dan utang lain-lain pada awalnya diakui sebesar nilai wajar dan selanjutnya diukur sebesar biaya perolehan yang diamortisasi dengan menggunakan metode bunga efektif, kecuali dampak diskontonya tidak signifikan.

Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, unless the impact of discounting is not significant.

p. Sewa p. Leases

Penentuan apakah suatu perjanjian merupakan, atau mengandung, sewa dibuat berdasarkan substansi perjanjian itu sendiri dan penilaian apakah pemenuhan atas perjanjian bergantung dari penggunaan aset tertentu atau aset, dan apakah perjanjian memberikan hak untuk menggunakan aset.

Determination whether an arrangement is, or contains, a lease is made based on the substance of the arrangement and assessment of whether fulfilment of the arrangement is dependent on the use of a specific asset or assets, and the arrangement conveys a right to use the asset.

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p. Sewa (lanjutan) p. Leases (continued) Grup menyewa aset tetap tertentu. Sewa aset tetap dimana Grup, sebagai lessee, memiliki sebagian besar risiko dan manfaat kepemilikan diklasifikasikan sebagai sewa pembiayaan. Sewa pembiayaan dikapitalisasi pada awal masa sewa sebesar yang lebih rendah antara nilai wajar aset sewaan dan nilai kini pembayaran sewa minimum.

The Group leases certain fixed assets. Leases of fixed assets where the Group as lessee has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s commencement at the lower of the fair value of the leased asset and the present value of the minimum lease payments.

Setiap pembayaran sewa dialokasikan antara porsi pelunasan liabilitas dan beban keuangan. Jumlah liabilitas sewa, setelah dikurangi beban keuangan, disajikan sebagai liabilitas jangka panjang kecuali untuk bagian yang jatuh tempo dalam waktu 12 bulan atau kurang yang disajikan sebagai liabilitas jangka pendek. Unsur bunga dalam beban keuangan dibebankan ke laba rugi selama masa sewa yang menghasilkan tingkat suku bunga konstan atas saldo liabilitas. Aset tetap yang diperoleh melalui sewa pembiayaan disusutkan selama jangka waktu yang lebih pendek antara umur manfaat aset dan masa sewa.

Each lease payment is allocated between the liability portion and a finance charge. The corresponding rental obligations, net of finance charges are included in other long-term liabilities, except for those with maturities of 12 months or less which are included in current liabilities. The interest element of the finance cost is charged to profit or loss over the lease period so as to produce a constant rate of interest on the remaining balance of the liability. Fixed assets acquired under finance leases are depreciated over the shorter of the useful life of the assets or the lease term.

Sewa dimana sebagian besar risiko dan manfaat yang terkait dengan kepemilikan dipertahankan oleh lessor diklasifikasikan sebagai sewa operasi. Pembayaran sewa operasi (dikurangi insentif yang diterima dari lessor) dibebankan pada laporan laba rugi dengan menggunakan metode garis lurus selama periode sewa.

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the term of the lease.

Pendapatan sewa guna usaha dari kegiatan operasi sewa dimana Grup bertindak sebagai pemberi sewa diakui sebagai pendapatan secara garis lurus selama masa sewa.

Lease income from operating leases where the Group is a lessor is recognised in income on a straight line basis over the lease term.

q. Provisi q. Provision

Provisi diakui ketika: Grup memiliki kewajiban hukum atau konstruktif masa kini sebagai akibat peristiwa masa lalu; terdapat kemungkinan besar penyelesaian kewajiban tersebut mengakibatkan arus keluar sumber daya; dan jumlah kewajiban tersebut dapat diukur secara andal. Provisi tidak diakui untuk kerugian operasi masa depan.

Provision is recognised when: the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provision is not recognised for future operating losses.

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(continued)

s. Dana Syirkah Temporer s. Temporary Syirkah Funds Dana syirkah temporer adalah dana yang diterima oleh Grup, berdasarkan akad musyarakah mutanaqisha, yaitu akad kerjasama antara Grup dengan bank untuk suatu usaha tertentu, dimana masing-masing pihak memberikan kontribusi dana dengan ketentuan bahwa keuntungan dibagi berdasarkan kesepakatan sedangkan kerugian berdasarkan porsi kontribusi dana. Pada akad ini, bagian dana bank akan menurun sejalan dengan pembayaran bertahap oleh Grup kepada bank dan pada akhir masa akad, Grup akan menjadi pemilik penuh atas usaha tersebut.

Temporary syirkah funds is the fund received by the Group, based on musyarakah mutanaqisha agreement, which is cooperation between the Group and the Bank to conduct certain business, where the Group and the Bank will give fund contribution with condition that profit sharing is based on fund contribution portion. Under the agreement, the bank’s portion will be diminished as the Group will gradually make installments to the bank and the Group will be the full owner of the business eventually.

Penerimaan dana dari bank diakui sebagai akun dana syirkah temporer, yang bukan merupakan bagian dari liabilitas maupun ekuitas. Dana syirkah temporer pada awalnya diakui sebesar jumlah kas yang diterima dan selanjutnya diukur pada jumlah kas yang diterima dikurangi dengan jumlah dana yang telah dikembalikan dan dikurangi kerugian (jika ada). Keuntungan yang menjadi hak bank sesuai kesepakatan diakui sebagai bagi hasil di laba rugi.

Receipts of funds from the Bank will be recognised as temporary syirkah funds account, which does not belong to liabilities nor equity accounts. Initially, temporary syirkah funds will be recognised based on cash received and then will be measured based on total cash received deducted with funds repayment and loss (if any). Gain which is the rights of Bank as agreed will be recognised as profit-sharing in profit or loss.

t. Pengakuan Pendapatan dan Beban t. Revenue and Expense Recognition Pendapatan diukur pada nilai wajar imbalan yang diterima atau akan diterima dari penjualan barang dan jasa dalam kegiatan usaha normal Grup. Pendapatan disajikan neto setelah dikurangi pajak pertambahan nilai, retur, potongan harga dan diskon dan setelah mengeliminasi penjualan dalam Grup.

Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating sales within the Group.

Grup mengakui pendapatan ketika jumlah pendapatan dapat diukur secara andal, besar kemungkinan manfaat ekonomis masa depan akan mengalir kepada entitas dan kriteria tertentu telah dipenuhi untuk setiap aktivitas Grup seperti dijelaskan dibawah ini.

The Group recognises revenue when the amount of revenue can be reliably measured it is probable that future economic benefits will flow to the entity and when specific criteria have been met for each of the Group’s activities as described below.

Pendapatan Revenue Pendapatan dari penjualan barang diakui pada saat risiko dan manfaat secara signifikan terkait kepemilikan barang telah ditransfer kepada pembeli sesuai dengan ketentuan penjualan.

Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have been transferred to the customers in accordance with the sales term.

Pendapatan dari penyediaan jasa diakui pada saat jasa telah diserahkan dengan acuan pada tingkat penyelesaian berdasarkan kontrak.

Revenue from rendering of services is recognised when the service is rendered by reference to the percentage of completion of the contract.








(continued)

q. Provisi (lanjutan) q. Provision (continued) Provisi diukur sebesar nilai kini dari estimasi terbaik manajemen atas pengeluaran yang diharapkan diperlukan untuk menyelesaikan kewajiban kini pada akhir periode pelaporan. Tingkat diskonto yang digunakan untuk menentukan nilai kini adalah tingkat diskonto sebelum pajak yang mencerminkan penilaian pasar atas nilai waktu uang dan risiko yang terkait dengan kewajiban. Peningkatan provisi karena berjalannya waktu diakui sebagai biaya keuangan.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pretax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as finance costs.

Rehabilitasi dan restorasi tanah tambang Quarry rehabilitation and restoration Rehabilitasi dan restorasi tanah tambang yang dilaksanakan Grup mencakup, namun tidak terbatas pada, penggantian tanah bagian atas (top soil), pengerukan endapan pada kolam dan bendungan, pengawasan atas kualitas air, pengolahan limbah, penanaman kembali, dan pembibitan tanaman hutan.

Quarry rehabilitation and restoration at the Group includes, but is not limited to, top soil replacement, dredging of sediment ponds and dams, water quality control, waste handling, forest planting, and seeding.

Provisi atas rehabilitasi dan restorasi tanah tambang ditentukan berdasarkan ketentuan dan peraturan yang berlaku. Estimasi beban tersebut diakui dan dibebankan sebagai biaya produksi. Provisi tersebut dinilai kembali secara rutin dan dampak perubahannya diakui secara prospektif.

The provision for quarry rehabilitation and restoration is based principally on legal and regulatory requirements. Such estimated costs are expensed as production cost. The provision is reassessed regularly and the effects of change are recognised prospectively.

r. Pinjaman r. Borrowings

Pada saat pengakuan awal, pinjaman diakui sebesar nilai wajar, dikurangi dengan biaya-biaya transaksi yang terjadi. Selanjutnya, pinjaman diukur sebesar biaya perolehan diamortisasi; selisih antara penerimaan (dikurangi biaya transaksi) dan nilai pelunasan dicatat pada laporan laba rugi selama periode pinjaman dengan menggunakan metode bunga efektif.

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the profit or loss over the period of the borrowings using the effective interest method.

Pinjaman diklasifikasikan sebagai liabilitas jangka pendek kecuali Grup memiliki hak tanpa syarat untuk menunda pembayaran liabilitas selama paling tidak 12 bulan setelah tanggal pelaporan.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer the settlement of the liability for at least 12 months after the reporting date.

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(continued)

s. Dana Syirkah Temporer s. Temporary Syirkah Funds Dana syirkah temporer adalah dana yang diterima oleh Grup, berdasarkan akad musyarakah mutanaqisha, yaitu akad kerjasama antara Grup dengan bank untuk suatu usaha tertentu, dimana masing-masing pihak memberikan kontribusi dana dengan ketentuan bahwa keuntungan dibagi berdasarkan kesepakatan sedangkan kerugian berdasarkan porsi kontribusi dana. Pada akad ini, bagian dana bank akan menurun sejalan dengan pembayaran bertahap oleh Grup kepada bank dan pada akhir masa akad, Grup akan menjadi pemilik penuh atas usaha tersebut.

Temporary syirkah funds is the fund received by the Group, based on musyarakah mutanaqisha agreement, which is cooperation between the Group and the Bank to conduct certain business, where the Group and the Bank will give fund contribution with condition that profit sharing is based on fund contribution portion. Under the agreement, the bank’s portion will be diminished as the Group will gradually make installments to the bank and the Group will be the full owner of the business eventually.

Penerimaan dana dari bank diakui sebagai akun dana syirkah temporer, yang bukan merupakan bagian dari liabilitas maupun ekuitas. Dana syirkah temporer pada awalnya diakui sebesar jumlah kas yang diterima dan selanjutnya diukur pada jumlah kas yang diterima dikurangi dengan jumlah dana yang telah dikembalikan dan dikurangi kerugian (jika ada). Keuntungan yang menjadi hak bank sesuai kesepakatan diakui sebagai bagi hasil di laba rugi.

Receipts of funds from the Bank will be recognised as temporary syirkah funds account, which does not belong to liabilities nor equity accounts. Initially, temporary syirkah funds will be recognised based on cash received and then will be measured based on total cash received deducted with funds repayment and loss (if any). Gain which is the rights of Bank as agreed will be recognised as profit-sharing in profit or loss.

t. Pengakuan Pendapatan dan Beban t. Revenue and Expense Recognition Pendapatan diukur pada nilai wajar imbalan yang diterima atau akan diterima dari penjualan barang dan jasa dalam kegiatan usaha normal Grup. Pendapatan disajikan neto setelah dikurangi pajak pertambahan nilai, retur, potongan harga dan diskon dan setelah mengeliminasi penjualan dalam Grup.

Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating sales within the Group.

Grup mengakui pendapatan ketika jumlah pendapatan dapat diukur secara andal, besar kemungkinan manfaat ekonomis masa depan akan mengalir kepada entitas dan kriteria tertentu telah dipenuhi untuk setiap aktivitas Grup seperti dijelaskan dibawah ini.

The Group recognises revenue when the amount of revenue can be reliably measured it is probable that future economic benefits will flow to the entity and when specific criteria have been met for each of the Group’s activities as described below.

Pendapatan Revenue Pendapatan dari penjualan barang diakui pada saat risiko dan manfaat secara signifikan terkait kepemilikan barang telah ditransfer kepada pembeli sesuai dengan ketentuan penjualan.

Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have been transferred to the customers in accordance with the sales term.

Pendapatan dari penyediaan jasa diakui pada saat jasa telah diserahkan dengan acuan pada tingkat penyelesaian berdasarkan kontrak.

Revenue from rendering of services is recognised when the service is rendered by reference to the percentage of completion of the contract.

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u. Imbalan Kerja (lanjutan) u. Employee Benefits (continued) Program Iuran Pasti (lanjutan) Defined Contribution Plans (continued) Liabilitas imbalan pensiun merupakan nilai kini liabilitas imbalan pasti pada akhir periode pelaporan dikurangi dengan nilai wajar aset program. Liabilitas imbalan pasti dihitung setiap tahun oleh aktuaris independen dengan menggunakan metode projected unit credit.

The pension benefit obligation is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.

Nilai kini liabilitas imbalan pasti ditentukan dengan mendiskontokan estimasi arus kas di masa depan dengan menggunakan tingkat bunga obligasi pemerintah jangka Panjang pada akhir periode pelaporan dalam mata uang Rupiah sesuai dengan mata uang di mana imbalan tersebut akan dibayarkan dan yang memiliki jangka waktu yang sesuai dengan liabilitas imbalan pensiun yang bersangkutan.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using the yield at end of the reporting period of long-term government bonds denominated in Rupiah in which the benefits will be paid and that have terms to maturity similar to the related pension obligation.

Pengukuran kembali yang timbul dari penyesuaian dan perubahan dalam asumsi-asumsi aktuarial langsung diakui seluruhnya melalui penghasilan komprehensif lainnya. Akumulasi saldo pengukuran kembali dilaporkan di komponen ekuitas lainnya.

Remeasurements arising from experience adjustments and changes in actuarial assumptions are directly recognised in other comprehensive income. The balance of accumulated remeasurements is reported in other equity components.

Biaya jasa lalu yang timbul dari amandemen atau kurtailmen program diakui sebagai beban dalam laba rugi pada saat terjadinya.

Past service costs arising from amendment or curtailment programs are recognised as expense in profit or loss when incurred.

Imbalan kerja jangka panjang lain Other long-term employee benefits Perseroan dan entitas anak memberikan imbalan kerja jangka panjang lain dalam bentuk cuti panjang dan penghargaan masa kerja. Perhitungan imbalan kerja jangka panjang lain menggunakan metode Projected Unit Credit. Seluruh keuntungan atau kerugian aktuaria dan biaya jasa lalu diakui sebagai beban dalam laba rugi.

The Company and its subsidiaries provide other long-term employee benefits in the form of long service leave and loyalty awards. The cost of providing other long-term employee benefits is determined using Projected Unit Credit method. All actuarial gains or losses and past service cost are recognised as expenses in profit or loss.

Jumlah yang diakui sebagai kewajiban untuk imbalan kerja jangka panjang lain di laporan posisi keuangan konsolidasian adalah nilai kini kewajiban imbalan pasti per tanggal pelaporan.

The other long-term employee benefits obligation recognised in the consolidated statement of financial position represents the present value of defined benefit obligation at the reporting date.








(continued) t. Pengakuan Pendapatan dan Beban (lanjutan) t. Revenue and Expense Recognition

(continued) Beban Expenses Beban diakui pada saat terjadinya dengan menggunakan dasar akrual.

Expenses are recognised when incurred on an accrual basis.

u. Imbalan Kerja u. Employee Benefits

Imbalan kerja jangka pendek Short-term employee benefits Imbalan kerja jangka pendek adalah imbalan kerja yang jatuh tempo dalam jangka waktu dua belas bulan setelah akhir periode pelaporan dan diakui pada saat pekerja telah memberikan jasa kerjanya.

Short-term employee benefits are employee benefits which are due for payment within twelve months after the reporting period and recognised when the employees have rendered the related service.

Imbalan pascakerja Post-employment benefits Grup memiliki program imbalan pascakerja yang terdiri atas program imbalan pasti dan iuran pasti.

The Group has post-employment benefits comprise of defined benefit and defined contribution plans.

Program Imbalan Pasti Defined Benefit Plans Perseroan dan entitas anak menyelenggarakan program pensiun imbalan pasti yang dikelola oleh Dana Pensiun untuk seluruh karyawan tetapnya sebagaimana ditetapkan dalam Peraturan Perseroan dan entitas anak. Jumlah kontribusi terdiri dari kontribusi karyawan yang dihitung sebesar 5% dari penghasilan dasar pensiun dan kontribusi Perseroan dan entitas anak yang dihitung secara aktuaria.

The Company and its subsidiaries have defined benefit pension plans covering all of their permanent employees which is managed by a Pension Fund as stipulated in the Company’s and subsidiaries’ regulations. Total contributions consist of employee contributions of 5% of employees’ basic pensionable salaries and the Company’s and its subsidiaries’ contributions computed on an actuarial basis.

Program imbalan pasti lainnya dalam bentuk manfaat pascakerja sesuai dengan UU Ketenagakerjaan No. 13/2003 dan lain-lain.

Other defined benefit plans in the form of benefits in accordance with Labor Law No. 13/2003 and others.

Program Iuran Pasti Defined Contribution Plans Program pensiun iuran pasti adalah program pensiun dimana Grup membayar iuran tetap kepada sebuah entitas yang terpisah dan tidak memiliki kewajiban hukum atau kewajiban konstruktif untuk membayar iuran lebih lanjut bila dana tersebut tidak memiliki aset yang cukup untuk membayar imbalan kerja terkait dengan jasa yang diberikan oleh karyawan pada periode berjalan dan sebelumnya.

Defined contribution plans are pension plans under which the Group pays fixed contributions into a separate entity and have no legal and constructive obligation to pay further contributions if the fund does not have sufficient assets to pay all employee benefits related to the employees’ services in the current and prior periods.

Grup menghitung selisih antara imbalan berdasarkan undang-undang yang berlaku dengan manfaat yang diterima dari program pensiun untuk pensiun normal.

For normal pension scheme, the Group calculates and recognises the higher of the benefits under the Labow Law and those under such pension plan.

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u. Imbalan Kerja (lanjutan) u. Employee Benefits (continued) Program Iuran Pasti (lanjutan) Defined Contribution Plans (continued) Liabilitas imbalan pensiun merupakan nilai kini liabilitas imbalan pasti pada akhir periode pelaporan dikurangi dengan nilai wajar aset program. Liabilitas imbalan pasti dihitung setiap tahun oleh aktuaris independen dengan menggunakan metode projected unit credit.

The pension benefit obligation is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.

Nilai kini liabilitas imbalan pasti ditentukan dengan mendiskontokan estimasi arus kas di masa depan dengan menggunakan tingkat bunga obligasi pemerintah jangka Panjang pada akhir periode pelaporan dalam mata uang Rupiah sesuai dengan mata uang di mana imbalan tersebut akan dibayarkan dan yang memiliki jangka waktu yang sesuai dengan liabilitas imbalan pensiun yang bersangkutan.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using the yield at end of the reporting period of long-term government bonds denominated in Rupiah in which the benefits will be paid and that have terms to maturity similar to the related pension obligation.

Pengukuran kembali yang timbul dari penyesuaian dan perubahan dalam asumsi-asumsi aktuarial langsung diakui seluruhnya melalui penghasilan komprehensif lainnya. Akumulasi saldo pengukuran kembali dilaporkan di komponen ekuitas lainnya.

Remeasurements arising from experience adjustments and changes in actuarial assumptions are directly recognised in other comprehensive income. The balance of accumulated remeasurements is reported in other equity components.

Biaya jasa lalu yang timbul dari amandemen atau kurtailmen program diakui sebagai beban dalam laba rugi pada saat terjadinya.

Past service costs arising from amendment or curtailment programs are recognised as expense in profit or loss when incurred.

Imbalan kerja jangka panjang lain Other long-term employee benefits Perseroan dan entitas anak memberikan imbalan kerja jangka panjang lain dalam bentuk cuti panjang dan penghargaan masa kerja. Perhitungan imbalan kerja jangka panjang lain menggunakan metode Projected Unit Credit. Seluruh keuntungan atau kerugian aktuaria dan biaya jasa lalu diakui sebagai beban dalam laba rugi.

The Company and its subsidiaries provide other long-term employee benefits in the form of long service leave and loyalty awards. The cost of providing other long-term employee benefits is determined using Projected Unit Credit method. All actuarial gains or losses and past service cost are recognised as expenses in profit or loss.

Jumlah yang diakui sebagai kewajiban untuk imbalan kerja jangka panjang lain di laporan posisi keuangan konsolidasian adalah nilai kini kewajiban imbalan pasti per tanggal pelaporan.

The other long-term employee benefits obligation recognised in the consolidated statement of financial position represents the present value of defined benefit obligation at the reporting date.

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(continued)

v. Perpajakan (lanjutan) v. Taxation (continued) Aset dan liabilitas pajak penghasilan tangguhan dapat saling hapus apabila terdapat hak yang berkekuatan hukum untuk melakukan saling hapus antara aset pajak kini dengan liabilitas pajak kini dan apabila aset dan liabilitas pajak penghasilan tangguhan dikenakan oleh otoritas perpajakan yang sama, baik atas entitas kena pajak yang sama ataupun berbeda dan adanya niat untuk melakukan penyelesaian saldo-saldo tersebut secara neto.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

w. Laba per Saham w. Earnings per Share

Laba per saham dasar dihitung dengan membagi laba bersih yang tersedia bagi pemegang saham Perseroan dengan jumlah rata-rata tertimbang saham biasa yang beredar pada tahun berjalan.

Basic earnings per share are computed by dividing profit attributable to the equity holders of the Company by the weighted average number of ordinary shares outstanding during the year.

Laba per saham dilusian dihitung dengan membagi laba bersih yang diatribusikan kepada pemilik entitas induk dengan jumlah rata-rata tertimbang saham biasa yang telah disesuaikan dengan dampak dari semua efek berpotensi saham biasa yang dilutif.

Diluted earnings per share is computed by dividing net profit attributable to the owners of the Company by the weighted average number of shares outstanding as adjusted for the effects of all dilutive potential ordinary shares.

x. Dividen x. Dividends

Pembagian dividen final diakui sebagai liabilitas ketika dividen tersebut disetujui Rapat Umum Pemegang Saham Perseroan. Pembagian dividen interim diakui sebagai liabilitas ketika dividen disetujui berdasarkan keputusan rapat Direksi dan persetujuan Dewan Komisaris telah diperoleh serta sudah diumumkan kepada publik.

Final dividend distributions are recognised as a liability when the dividends are approved in the Company’s General Meeting of the Shareholders. Interim dividend distributions are recognised as a liability when the dividends are approved by a Board of Directors’ resolution, approval has been obtained from the Board of Commissioners and a public announcement has been made.

y. Pelaporan Segmen y. Segment Reporting

Segmen operasi dilaporkan dengan cara yang konsisten dengan pelaporan internal yang diberikan kepada pengambil keputusan operasi utama. Pengambil keputusan operasi utama, yang bertanggung jawab mengalokasikan sumber daya dan menilai kinerja segmen operasi, telah diidentifikasi sebagai komite pengarah yang mengambil keputusan strategis.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the steering committee that makes strategic decisions.








(continued)

v. Perpajakan v. Taxation Beban pajak penghasilan terdiri dari pajak penghasilan kini dan pajak tangguhan. Pajak penghasilan kini dan pajak tangguhan diakui dalam laba rugi, kecuali untuk pajak penghasilan yang berasal dari transaksi atau kejadian yang langsung diakui ke ekuitas atau penghasilan komprehensif lain. Dalam hal ini, pajak penghasilan diakui dalam ekuitas atau penghasilan komprehensif lain.

The income tax expense is comprised of current and deferred income tax. Current and deferred income tax is recognised in the profit or loss, except to the extent that it relates to items recognised directly in equity or other comprehensive income. In this case, the income tax is recognised in equity or other comprehensive income.

Beban pajak penghasilan kini dihitung dengan menggunakan tarif pajak yang berlaku pada akhir periode pelaporan.

The current income tax is calculated using tax rates that have been enacted at the end of the reporting period.

Manajemen secara berkala mengevaluasi ketentuan yang diambil dalam Surat Pemberitahuan Pajak sehubungan dengan situasi dimana peraturan pajak yang berlaku membutuhkan penafsiran. Hal ini menentukan jumlah provisi diperlukan yang sesuai dengan jumlah yang diharapkan akan dibayarkan kepada otoritas pajak.

Management periodically evaluates positions taken in tax returns with respect to situations in which the applicable tax regulation is subject to interpretation. It establishes provision where appropriate on the basis of the amounts expected to be paid to the tax authorities.

Pajak penghasilan tangguhan diakui dengan menggunakan metode balance sheet liability untuk semua perbedaan temporer yang berasal dari selisih antara dasar pengenaan pajak aset dan liabilitas dengan nilai tercatatnya pada laporan keuangan konsolidasian. Namun, liabilitas pajak penghasilan tangguhan tidak diakui jika berasal dari pengakuan awal goodwill.

Deferred income tax is provided, using the balance sheet liability method, on temporary differences which arise from the difference between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill.

Pajak penghasilan tangguhan juga tidak diperhitungkan jika pajak penghasilan tangguhan tersebut timbul dari pengakuan awal aset atau pengakuan awal liabilitas dalam transaksi yang bukan kombinasi bisnis yang pada saat transaksi tidak mempengaruhi laba akuntansi maupun laba kena pajak/rugi pajak.

Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Pajak penghasilan tangguhan diukur dengan menggunakan tarif pajak yang sudah diberlakukan atau secara substantif berlaku pada akhir periode pelaporan dan diekspektasi akan digunakan ketika aset pajak tangguhan yang berhubungan direalisasi atau liabilitas pajak tangguhan diselesaikan.

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Aset pajak tangguhan diakui hanya jika kemungkinan jumlah penghasilan kena pajak di masa depan akan memadai untuk dikompensasi dengan perbedaan temporer yang masih dapat dimanfaatkan dan rugi fiskal yang masih dapat dimanfaatkan.

Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and and tax losses carried forward can be utilised.

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(continued)

v. Perpajakan (lanjutan) v. Taxation (continued) Aset dan liabilitas pajak penghasilan tangguhan dapat saling hapus apabila terdapat hak yang berkekuatan hukum untuk melakukan saling hapus antara aset pajak kini dengan liabilitas pajak kini dan apabila aset dan liabilitas pajak penghasilan tangguhan dikenakan oleh otoritas perpajakan yang sama, baik atas entitas kena pajak yang sama ataupun berbeda dan adanya niat untuk melakukan penyelesaian saldo-saldo tersebut secara neto.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

w. Laba per Saham w. Earnings per Share

Laba per saham dasar dihitung dengan membagi laba bersih yang tersedia bagi pemegang saham Perseroan dengan jumlah rata-rata tertimbang saham biasa yang beredar pada tahun berjalan.

Basic earnings per share are computed by dividing profit attributable to the equity holders of the Company by the weighted average number of ordinary shares outstanding during the year.

Laba per saham dilusian dihitung dengan membagi laba bersih yang diatribusikan kepada pemilik entitas induk dengan jumlah rata-rata tertimbang saham biasa yang telah disesuaikan dengan dampak dari semua efek berpotensi saham biasa yang dilutif.

Diluted earnings per share is computed by dividing net profit attributable to the owners of the Company by the weighted average number of shares outstanding as adjusted for the effects of all dilutive potential ordinary shares.

x. Dividen x. Dividends

Pembagian dividen final diakui sebagai liabilitas ketika dividen tersebut disetujui Rapat Umum Pemegang Saham Perseroan. Pembagian dividen interim diakui sebagai liabilitas ketika dividen disetujui berdasarkan keputusan rapat Direksi dan persetujuan Dewan Komisaris telah diperoleh serta sudah diumumkan kepada publik.

Final dividend distributions are recognised as a liability when the dividends are approved in the Company’s General Meeting of the Shareholders. Interim dividend distributions are recognised as a liability when the dividends are approved by a Board of Directors’ resolution, approval has been obtained from the Board of Commissioners and a public announcement has been made.

y. Pelaporan Segmen y. Segment Reporting

Segmen operasi dilaporkan dengan cara yang konsisten dengan pelaporan internal yang diberikan kepada pengambil keputusan operasi utama. Pengambil keputusan operasi utama, yang bertanggung jawab mengalokasikan sumber daya dan menilai kinerja segmen operasi, telah diidentifikasi sebagai komite pengarah yang mengambil keputusan strategis.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the steering committee that makes strategic decisions.

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3. ESTIMASI DAN PERTIMBANGAN AKUNTANSI

YANG PENTING (lanjutan) 3. CRITICAL ACCOUNTING ESTIMATES AND

JUDGEMENTS (continued) Penurunan nilai piutang usaha Impairment of trade receivables

Grup menelaah portofolio piutang usaha untuk mengevaluasi kerugian penurunan nilai setiap tanggal pelaporan. Grup menentukan kerugian penurunan nilai piutang usaha dengan mempertimbangkan beberapa faktor, yaitu kesulitan keuangan yang signifikan dari debitur, kemungkinan debitur mengalami pailit, reorganisasi keuangan yang dilakukan oleh debitur, serta wanprestasi atau tunggakan pembayaran. Penyisihan penurunan nilai dibuat berdasarkan estimasi jumlah yang tidak dapat terpulihkan yang ditentukan dari rekam jejak tunggakan masa lalu.

The Group reviews its trade receivables portfolios to assess impairment at reporting date. The Group determines the impairment losses of trade receivables by considering significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy, financial reorganisation and default or delinquency in payment. An allowance for impairment is made based on the estimated irrecoverable amount determined by reference to past default experience.

Liabilitas imbalan kerja Employee benefit obligations

Nilai kini liabilitas imbalan kerja tergantung pada sejumlah faktor yang ditentukan dengan menggunakan asumsi aktuaria. Asumsi yang digunakan dalam menentukan biaya bersih untuk pensiun termasuk tingkat pengembalian jangka panjang yang diharapkan atas aset program yang sama dan relevan, tingkat kenaikan gaji di masa datang dan tingkat diskonto. Setiap perubahan dalam asumsi ini akan berdampak pada nilai tercatat liabilitas imbalan kerja.

The present value of the employee benefit obligations depends on a number of factors that are determined by using actuarial assumptions. The assumptions used in determining the net cost for pensions include the same and relevant rate for expected long-term rate of return on plan assets, future salary increase and the discount rate. Any changes in these assumptions will impact the carrying amount of employee benefit obligations.

Perpajakan Taxation Grup beroperasi di bawah peraturan perpajakan di Indonesia. Pertimbangan yang signifikan diperlukan untuk menentukan provisi pajak penghasilan badan dan pajak lainnya. Apabila keputusan final atas pajak tersebut berbeda dari jumlah yang pada awalnya dicatat, perbedaan tersebut akan dicatat di laba rugi pada periode dimana hasil tersebut dikeluarkan.

The Group operates under the tax regulations in Indonesia. Significant judgement is required in determining the provision for corporate income taxes and other taxes. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will be recorded in profit or loss in the period in which such determination is made.

4. KOMBINASI BISNIS 4. BUSINESS COMBINATION Pada tanggal 31 Januari 2019, Perseroan melalui entitas anak, SIIB melakukan akuisisi 80,64% saham PT Solusi Bangun Indonesia Tbk (sebelumnya PT Holcim Indonesia Tbk) ("SBI") perusahaan terbuka yang berdomisili di Jakarta dan bergerak dalam bidang produksi semen dengan nilai USD 916,9 juta atau setara dengan Rp 12.926.876. Akuisisi ini dilakukan dalam rangka memperkuat posisi di pasar domestik.

On 31 January 2019, the Company through subsidiary entity, SIIB acquired 80.64% shares of PT Solusi Bangun Indonesia Tbk (previously PT Holcim Indonesia Tbk) ("SBI"), a listed company based in Jakarta and engages in producing of cement amounting to USD 916.9 million or equivalent to Rp 12,926,876. The acquisition of SBI is to strengthen domestic market position.

Pada bulan April 2019, SIIB telah melakukan penawaran tender wajib sebagai mana yang dipersyaratkan oleh Peraturan Otoritas Jasa Keuangan (“POJK”) dengan nilai Rp 2.838.365 sehingga kepemilikan SIIB di SBI menjadi 98,31%.

In April 2019, SIIB conducted mandatory tender offers as required by Peraturan Otoritas Jasa Keuangan (“POJK”) with a value of Rp 2,838,365 so that the ownership of SIIB in SBI became 98.31%.








YANG PENTING 3. CRITICAL ACCOUNTING ESTIMATES AND

JUDGEMENTS Estimasi dan pertimbangan yang digunakan dalam mempersiapkan laporan keuangan dievaluasi secara berkala berdasarkan pengalaman historis dan faktor-faktor lainnya, termasuk ekspektasi dari kejadian-kejadian di masa depan yang mungkin terjadi. Hasil aktual dapat berbeda dengan jumlah yang diestimasi. Estimasi dan asumsi yang mempunyai pengaruh signifikan terhadap jumlah tercatat atas aset dan liabilitas diungkapkan dibawah ini.

The estimates and judgements used in preparing the financial statements are evaluated regularly based on historical experience and other factors, including expected future events that may occur. Actual results may differ from these estimates. The estimates and assumptions that have a significant effect on the carrying amount of assets and liabilities are disclosed below.

Akuisisi entitas anak Acquisitions of subsidiaries Proses awal atas akuisisi entitas anak melibatkan identifikasi dan penentuan nilai wajar yang akan dialokasikan untuk aset, liabilitas dan liabilitas kontinjensi yang dapat diidentifikasi dari entitas yang diakuisisi. Nilai wajar aset tetap dan aset takberwujud ditentukan oleh penilai independen dengan mengacu pada harga pasar atau nilai sekarang dari arus kas bersih yang diharapkan dari aset tersebut. Setiap perubahan dalam asumsi dan estimasi yang digunakan dalam menentukan nilai wajar akan berdampak pada jumlah tercatat dari aset dan liabilitas ini.

The initial process on the acquisition of subsidiary involves identifying and determining the fair values to be assigned to the identifiable assets, liabilities and contingent liabilities of the acquired entities. The fair values of fixed assets and intangible assets are determined by independent valuers by reference to market prices or present value of expected net cash flows from the assets. Any changes in the assumptions used and estimates made in determining the fair values will impact the carrying amount of these assets and liabilities.

Penyusutan dan amortisasi Depreciation and amortisation Manajemen menentukan estimasi masa manfaat, beban penyusutan dan beban amortisasi dari aset tetap dan aset takberwujud yang dimiliki Grup.

Management determines the estimated useful lives, related depreciation and amortisation charges for the Group’s fixed assets and intangibles assets.

Manajemen akan menyesuaikan beban penyusutan dan amortisasi jika masa manfaatnya berbeda dari estimasi sebelumnya atau manajemen akan menghapusbukukan atau melakukan penurunan nilai atas aset yang secara teknis telah usang atau aset non-strategis yang dihentikan penggunaannya atau dijual.

Management will revise the depreciation and amortisation charge where useful lives are different to those previously estimated, or it will write off or write down technically obsolete or non-strategic assets that have been abandoned or sold.

Penurunan nilai aset nonkeuangan Impairment of non-financial assets Grup melakukan tes penurunan nilai setiap tahun untuk goodwill. Aset nonkeuangan lainnya ditelaah untuk penurunan nilai apabila terdapat kejadian atau perubahan keadaan yang mengindikasikan bahwa jumlah tercatat aset melebihi nilai yang dapat diperoleh kembali. Nilai yang dapat diperoleh kembali suatu aset atau unit penghasil kas ditentukan berdasarkan yang lebih tinggi antara harga jual bersih dan nilai pakai, yang dihitung berdasarkan asumsi dan estimasi manajemen. Perubahan asumsi penting, termasuk asumsi tingkat diskonto atau tingkat pertumbuhan dalam proyeksi arus kas dan asumsi harga, dapat memengaruhi perhitungan nilai yang dapat diperoleh kembali secara material.

The Group tests annually whether goodwill suffered any impairment. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset exceeds its recoverable amount. The recoverable amount of an asset or a cash generating unit is determined based on the higher of its fair value less costs to sell and its value in use, calculated on the basis of management’s assumptions and estimates. Changing the key assumptions, including the discount rates or the growth rate assumptions in the cash flow projections and price assumptions, could materially affect the calculations of recoverable amount.

321










YANG PENTING (lanjutan) 3. CRITICAL ACCOUNTING ESTIMATES AND

JUDGEMENTS (continued) Penurunan nilai piutang usaha Impairment of trade receivables

Grup menelaah portofolio piutang usaha untuk mengevaluasi kerugian penurunan nilai setiap tanggal pelaporan. Grup menentukan kerugian penurunan nilai piutang usaha dengan mempertimbangkan beberapa faktor, yaitu kesulitan keuangan yang signifikan dari debitur, kemungkinan debitur mengalami pailit, reorganisasi keuangan yang dilakukan oleh debitur, serta wanprestasi atau tunggakan pembayaran. Penyisihan penurunan nilai dibuat berdasarkan estimasi jumlah yang tidak dapat terpulihkan yang ditentukan dari rekam jejak tunggakan masa lalu.

The Group reviews its trade receivables portfolios to assess impairment at reporting date. The Group determines the impairment losses of trade receivables by considering significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy, financial reorganisation and default or delinquency in payment. An allowance for impairment is made based on the estimated irrecoverable amount determined by reference to past default experience.

Liabilitas imbalan kerja Employee benefit obligations

Nilai kini liabilitas imbalan kerja tergantung pada sejumlah faktor yang ditentukan dengan menggunakan asumsi aktuaria. Asumsi yang digunakan dalam menentukan biaya bersih untuk pensiun termasuk tingkat pengembalian jangka panjang yang diharapkan atas aset program yang sama dan relevan, tingkat kenaikan gaji di masa datang dan tingkat diskonto. Setiap perubahan dalam asumsi ini akan berdampak pada nilai tercatat liabilitas imbalan kerja.

The present value of the employee benefit obligations depends on a number of factors that are determined by using actuarial assumptions. The assumptions used in determining the net cost for pensions include the same and relevant rate for expected long-term rate of return on plan assets, future salary increase and the discount rate. Any changes in these assumptions will impact the carrying amount of employee benefit obligations.

Perpajakan Taxation Grup beroperasi di bawah peraturan perpajakan di Indonesia. Pertimbangan yang signifikan diperlukan untuk menentukan provisi pajak penghasilan badan dan pajak lainnya. Apabila keputusan final atas pajak tersebut berbeda dari jumlah yang pada awalnya dicatat, perbedaan tersebut akan dicatat di laba rugi pada periode dimana hasil tersebut dikeluarkan.

The Group operates under the tax regulations in Indonesia. Significant judgement is required in determining the provision for corporate income taxes and other taxes. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will be recorded in profit or loss in the period in which such determination is made.

4. KOMBINASI BISNIS 4. BUSINESS COMBINATION Pada tanggal 31 Januari 2019, Perseroan melalui entitas anak, SIIB melakukan akuisisi 80,64% saham PT Solusi Bangun Indonesia Tbk (sebelumnya PT Holcim Indonesia Tbk) ("SBI") perusahaan terbuka yang berdomisili di Jakarta dan bergerak dalam bidang produksi semen dengan nilai USD 916,9 juta atau setara dengan Rp 12.926.876. Akuisisi ini dilakukan dalam rangka memperkuat posisi di pasar domestik.

On 31 January 2019, the Company through subsidiary entity, SIIB acquired 80.64% shares of PT Solusi Bangun Indonesia Tbk (previously PT Holcim Indonesia Tbk) ("SBI"), a listed company based in Jakarta and engages in producing of cement amounting to USD 916.9 million or equivalent to Rp 12,926,876. The acquisition of SBI is to strengthen domestic market position.

Pada bulan April 2019, SIIB telah melakukan penawaran tender wajib sebagai mana yang dipersyaratkan oleh Peraturan Otoritas Jasa Keuangan (“POJK”) dengan nilai Rp 2.838.365 sehingga kepemilikan SIIB di SBI menjadi 98,31%.

In April 2019, SIIB conducted mandatory tender offers as required by Peraturan Otoritas Jasa Keuangan (“POJK”) with a value of Rp 2,838,365 so that the ownership of SIIB in SBI became 98.31%.

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5. KAS DAN SETARA KAS (lanjutan) 5. CASH AND CASH EQUIVALENTS (continued)

a. Kas pada bank a. Cash in banks

2019 2018Pihak berelasi/Related parties :

Rupiah:PT Bank Negara Indonesia (Persero) Tbk 984.653 69.571 PT Bank Mandiri (Persero) Tbk 972.761 1.620.263 PT Bank Rakyat Indonesia (Persero) Tbk 75.181 53.872 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 1.072 971

2.033.667 1.744.677 USD:

PT Bank Mandiri (Persero) Tbk 262.264 403.267 PT Bank Negara Indonesia (Persero) Tbk 109.238 85.589 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 98 103

371.600 488.959 EUR:

PT Bank Mandiri (Persero) Tbk 5.197 17.532 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 2.396 7.564

7.593 25.096 Dolar Singapura/Singapore Dollar :

PT Bank Mandiri (Persero) Tbk 36 37

2.412.896 2.258.769

Pihak ketiga/Third parties :Rupiah:

Standard Chartered Bank 93.492 - PT Bank DKI 91.326 154 PT Bank CIMB Niaga Tbk 43.477 7.307 PT Bank Central Asia Tbk 37.078 22.450 PT Bank ICBC Indonesia 17.234 12.316 Sumitomo Mitsui Indonesia 9.654 5 PT Bank Danamon Indonesia Tbk 8.807 64 PT Bank Permata Tbk 6.216 1.669 PT Bank Maybank Indonesia Tbk 5.988 - PT Bank Bukopin Tbk 4.371 851 Lain-lain/Others 2.806 5.052

320.449 49.868 USD:

Standard Chartered Bank 36.451 65.745 Bank for Investment and Development of Cambodia Plc 4.731 - BNP Paribas 3.288 - Lain-lain/Others 1.158 2.167

45.628 67.912 EUR:

Lain-lain/Others 3.125 850 VND:

Bank for Investment and Development of Cambodia Plc 8.255 - Ho Chi Minh City Development Joint-Stock Commercial Bank 2.881 362 Lain-lain/Others 5.217 8.462

16.353 8.824 385.555 127.454

Jumlah kas pada bank/Total cash in banks 2.798.451 2.386.223







4. KOMBINASI BISNIS (laporan keuangan) 4. BUSINESS COMBINATION (continued)

Nilai wajar aset dan liabilitas SBI yang dapat diidentifikasi pada tanggal akuisisi adalah sebagai berikut:

The fair value of the identifiable assets and liabilities of SBI as at the date of acquisition were:

Nilai wajar yang diakuipada saat tanggal akuisisi/

Fair value recognisedon acquisition date

Kas dan setara kas 305.639 Cash and cash equivalentsAset lancar lain-lain 2.341.138 Other current assetsAset tetap 25.330.178 Fixed assets Goodwill 1.024.193 GoodwillAset takberwujud 2.321.691 Intangible assetsAset pajak tangguhan 21.417 Deferred tax assetsAset tidak lancar lainnya 272.567 Other non-current assetsLiabilitas jangka pendek dan jangka Other current and non-current

panjang lainnya (11.692.953) liabilitiesLiabilitas pajak tangguhan (3.788.359) Deferred tax liabilitiesLiabilitas kontijensi (401.303) Contingent liabilitiesKepentingan nonpengendali (253.406) Non-controlling interestsJumlah harga perolehan 15.480.802 Total purchase priceAset indemnifikasi 284.439 Indemnification assetsKas dan setara kas yang diperoleh (305.639) Cash and cash equivalent acquiredArus kas keluar atas akuisisi 15.459.602 Cash outflows from acquisitions

Goodwill yang timbul dari akuisisi tersebut terutama diatribusikan atas harapan profitabilitas dan sinergi melalui bisnis yang diakuisisi.

Goodwill arising from the acquisition is primarily attributable to the expected profitability and synergy arising from the acquired business.

Nilai wajar aset dan liabilitas SBI yang dapat diidentifikasi tersebut ditentukan berdasarkan laporan penilaian yang diterbitkan oleh KJPP Firman Suryantoro, Sugeng, Suzy, Hartomo dan Rekan, penilai independen, dalam laporannya tertanggal 21 Juni 2019.

The fair value of the identifiable assets and liabilities of SBI are determined based on an appraisal report issued by KJPP Firman Suryantoro, Sugeng, Suzy, Hartono & Rekan, an independent valuer, in its report dated 21 June 2019.

Selama tahun 2019, sejak tanggal akuisisi, SBI memiliki kontribusi pendapatan sebesar Rp 10.214.306 dan laba tahun berjalan sebesar Rp 856.762. Jika akuisisi telah terjadi sejak awal tahun, pendapatan konsolidasian akan menjadi Rp 41.299.388 dan laba tahun berjalan menjadi sebesar Rp 2.165.849.

During 2019, from the date of acquisition, SBI has contributed revenue of Rp 10,214,306 and profit for the year of Rp 856,762 If the combination had taken place at the beginning of the year, the consolidated revenue would have been Rp 41,299,388 and the consolidated profit for the year would have been Rp 2,165,849.

Biaya terkait akuisisi sebesar Rp 146.054 telah dibebankan pada laba rugi tahun 2018.

The acquisition-related cost of Rp 146,054 have been expensed in 2018 profit or loss.

5. KAS DAN SETARA KAS 5. CASH AND CASH EQUIVALENTS

2019 2018Kas 16.716 16.491 Cash on handKas pada bank 2.798.451 2.386.223 Cash in banksDeposito berjangka dan call deposits 1.135.281 2.843.017 Time and call deposits

3.950.448 5.245.731

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a. Kas pada bank a. Cash in banks


Rupiah:PT Bank Negara Indonesia (Persero) Tbk 984.653 69.571 PT Bank Mandiri (Persero) Tbk 972.761 1.620.263 PT Bank Rakyat Indonesia (Persero) Tbk 75.181 53.872 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 1.072 971

2.033.667 1.744.677 USD:

PT Bank Mandiri (Persero) Tbk 262.264 403.267 PT Bank Negara Indonesia (Persero) Tbk 109.238 85.589 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 98 103

371.600 488.959 EUR:

PT Bank Mandiri (Persero) Tbk 5.197 17.532 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 2.396 7.564

7.593 25.096 Dolar Singapura/Singapore Dollar :

PT Bank Mandiri (Persero) Tbk 36 37

2.412.896 2.258.769


Standard Chartered Bank 93.492 - PT Bank DKI 91.326 154 PT Bank CIMB Niaga Tbk 43.477 7.307 PT Bank Central Asia Tbk 37.078 22.450 PT Bank ICBC Indonesia 17.234 12.316 Sumitomo Mitsui Indonesia 9.654 5 PT Bank Danamon Indonesia Tbk 8.807 64 PT Bank Permata Tbk 6.216 1.669 PT Bank Maybank Indonesia Tbk 5.988 - PT Bank Bukopin Tbk 4.371 851 Lain-lain/Others 2.806 5.052

320.449 49.868 USD:

Standard Chartered Bank 36.451 65.745 Bank for Investment and Development of Cambodia Plc 4.731 - BNP Paribas 3.288 - Lain-lain/Others 1.158 2.167

45.628 67.912 EUR:

Lain-lain/Others 3.125 850 VND:

Bank for Investment and Development of Cambodia Plc 8.255 - Ho Chi Minh City Development Joint-Stock Commercial Bank 2.881 362 Lain-lain/Others 5.217 8.462

16.353 8.824 385.555 127.454

Jumlah kas pada bank/Total cash in banks 2.798.451 2.386.223

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6. PIUTANG USAHA 6. TRADE RECEIVABLES

2019 2018

Pihak berelasi: Related parties:Rupiah 1.533.090 1.215.872 Rupiah

Dikurangi: Less:Penyisihan penurunan nilai (39.218) (27.967) Provision for impairment

1.493.872 1.187.905 Pihak ketiga: Third parties:

Rupiah 5.172.844 4.495.669 RupiahUSD 140.230 178.165 USDVND 30.860 36.912 VND

5.343.934 4.710.746 Dikurangi: Less:Penyisihan penurunan nilai (347.945) (112.436) Provision for impairment

4.995.989 4.598.310 Jumlah 6.489.861 5.786.215 Total

Umur piutang usaha adalah sebagai berikut: The aging of trade receivables is as follows:

2019 2018Lancar 5.229.302 3.972.046 CurrentLewat jatuh tempo: Overdue:

1 - 45 hari 335.078 720.420 1 - 45 days46 - 135 hari 292.928 393.237 46 - 135 days136 - 365 hari 342.423 445.077 136 - 365 daysLebih dari 365 hari 677.293 395.838 Over 365 days

Jumlah 6.877.024 5.926.618 Total

Pada tanggal 31 Desember 2019, piutang usaha sebesar Rp 1.260.559 (2018: Rp 1.814.169) telah lewat jatuh tempo namun tidak mengalami penurunan nilai. Hal ini terkait piutang dari sejumlah pelanggan yang tidak memiliki sejarah gagal bayar.

As at 31 December 2019, trade receivables of Rp 1,260,559 (2018: Rp 1,814,169) were past due but not impaired. These relate to customers whom there is no recent history of default.

Pada tanggal 31 Desember 2019, piutang usaha sebesar Rp 387.163 (2018: Rp 140.403) berpotensi mengalami penurunan nilai dan telah diprovisikan. Piutang yang diturunkan nilainya terutama terkait dengan pelanggan yang secara tidak terduga mengalami situasi ekonomi yang sulit.

As at 31 December 2019, trade receivables of Rp 387,163 (2018: Rp 140,403) with potentially impaired and has been provisioned. The impaired receivables mainly related to the customers, which are in unexpectedly difficult economic situations.

Mutasi penyisihan penurunan nilai piutang adalah sebagai berikut:

The movement of provision for impairment of receivables is as follows:

2019 2018

Saldo awal 140.403 121.815 Beginning balanceAkuisisi entitas anak 62.443 - Acquisition of a subsidiaryPenyisihan penurunan Provision for impairment

nilai piutang usaha 184.317 18.588 of trade receivables

Saldo akhir 387.163 140.403 Ending balance








b. Deposito berjangka dan call deposits b. Time and call deposits


Rupiah:PT Bank Negara Indonesia (Persero) Tbk 471.472 520.800 PT Bank Rakyat Indonesia (Persero) Tbk 159.100 830.000 PT Bank Tabungan Negara (Persero) Tbk 80.000 442.000 PT Bank Mandiri (Persero) Tbk 61.658 210.681 PT Bank Syariah Mandiri 10.000 16.000 PT Bank Rakyat Indonesia Agroniaga Tbk - 6.000

782.230 2.025.481 USD:

PT Bank Negara Indonesia (Persero) Tbk 180.713 - PT Bank Mandiri (Persero) Tbk 69.505 -

250.218 -

1.032.448 2.025.481 Pihak ketiga/Third parties :

Rupiah:PT Bank Syariah Bukopin 39.500 39.500 PT Bank Bukopin Tbk 27.300 30.700 PT Bank Central Asia Tbk 24.000 - PT Bank Syariah Mega Indonesia 7.000 - PT Bank Kesejahteraan Ekonomi 5.000 5.000 PT Bank CIMB Niaga Tbk - 100.000 Lain-lain/Others 33 642.336

102.833 817.536 Jumlah deposito berjangka dan call deposits /

Total time and call deposits 1.135.281 2.843.017

Suku bunga tahunan atas deposito berjangka dan call deposits adalah sebagai berikut:

Annual interest rates on time and call deposits are as follows:

2019 2018

Rupiah 3,40% - 8,00% 3,50% - 8,25% RupiahUSD 2,50% - 3,00% 2,50% - 3,00% USD Lihat Catatan 30 untuk rincian informasi mengenai pihak berelasi.

Refer to Note 30 for details information of related parties.

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6. PIUTANG USAHA 6. TRADE RECEIVABLES

2019 2018

Pihak berelasi: Related parties:Rupiah 1.533.090 1.215.872 Rupiah

Dikurangi: Less:Penyisihan penurunan nilai (39.218) (27.967) Provision for impairment

1.493.872 1.187.905 Pihak ketiga: Third parties:

Rupiah 5.172.844 4.495.669 RupiahUSD 140.230 178.165 USDVND 30.860 36.912 VND

5.343.934 4.710.746 Dikurangi: Less:Penyisihan penurunan nilai (347.945) (112.436) Provision for impairment

4.995.989 4.598.310 Jumlah 6.489.861 5.786.215 Total

Umur piutang usaha adalah sebagai berikut: The aging of trade receivables is as follows:

2019 2018Lancar 5.229.302 3.972.046 CurrentLewat jatuh tempo: Overdue:

1 - 45 hari 335.078 720.420 1 - 45 days46 - 135 hari 292.928 393.237 46 - 135 days136 - 365 hari 342.423 445.077 136 - 365 daysLebih dari 365 hari 677.293 395.838 Over 365 days

Jumlah 6.877.024 5.926.618 Total

Pada tanggal 31 Desember 2019, piutang usaha sebesar Rp 1.260.559 (2018: Rp 1.814.169) telah lewat jatuh tempo namun tidak mengalami penurunan nilai. Hal ini terkait piutang dari sejumlah pelanggan yang tidak memiliki sejarah gagal bayar.

As at 31 December 2019, trade receivables of Rp 1,260,559 (2018: Rp 1,814,169) were past due but not impaired. These relate to customers whom there is no recent history of default.

Pada tanggal 31 Desember 2019, piutang usaha sebesar Rp 387.163 (2018: Rp 140.403) berpotensi mengalami penurunan nilai dan telah diprovisikan. Piutang yang diturunkan nilainya terutama terkait dengan pelanggan yang secara tidak terduga mengalami situasi ekonomi yang sulit.

As at 31 December 2019, trade receivables of Rp 387,163 (2018: Rp 140,403) with potentially impaired and has been provisioned. The impaired receivables mainly related to the customers, which are in unexpectedly difficult economic situations.

Mutasi penyisihan penurunan nilai piutang adalah sebagai berikut:

The movement of provision for impairment of receivables is as follows:

2019 2018

Saldo awal 140.403 121.815 Beginning balanceAkuisisi entitas anak 62.443 - Acquisition of a subsidiaryPenyisihan penurunan Provision for impairment

nilai piutang usaha 184.317 18.588 of trade receivables


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8. PERPAJAKAN 8. TAXATION

a. Pajak dibayar dimuka a. Prepaid taxes

2019 2018

Pajak penghasilan badan Corporate Income TaxPerseroan The CompanyPasal 28a Article 28a- 2017 432.329 432.329 2017 -- 2016 59.060 59.060 2016 -

491.389 491.389

Entitas anak SubsidiariesPasal 28 34.122 - Article 28Pasal 28a 12.639 253.327 Article 28a

46.761 253.327 538.150 744.716

Pajak lain-lain Other TaxesEntitas anak SubsidiariesPajak Pertambahan Nilai 160.086 205.841 Value Added TaxLain-lain 65.642 35.171 Others

225.728 241.012

Jumlah 763.878 985.728 Total

b. Tagihan pengembalian pajak b. Claim for tax refund

2019 2018Entitas anak Subsidiaries

- Pajak penghasilan badan 299.367 - Corporate income tax -- Pajak lain-lain 143.766 - Other taxes -

Jumlah 443.133 - Total

c. Utang pajak c. Taxes payable

2019 2018Pajak penghasilan badan Corporate income taxPerseroan The CompanyPasal 29 93.850 2.367 Article 29

Entitas anak SubsidiariesPasal 29 232.658 145.721 Article 29

326.508 148.088

Pajak lain-lain Other TaxesPerseroan The CompanyPajak Penghasilan: Income Taxes:- Pasal 21 9.704 12.068 Article 21 -- Pasal 22 8.470 5.985 Article 22 -- Pasal 23 dan 26 2.122 679 Articles 23 and 26 -- Final 1.709 810 Final -Pajak Pertambahan Nilai 111.251 80.841 Value Added Tax

133.256 100.383







6. PIUTANG USAHA (lanjutan) 6. TRADE RECEIVABLES (continued)

Manajemen berkeyakinan bahwa penyisihan atas penurunan nilai piutang usaha tersebut cukup untuk menutup risiko kerugian dari tidak tertagihnya piutang usaha.

Management believes that the provision for impairment of trade receivables is adequate to cover risk of losses on uncollectible trade receivables.

Lihat Catatan 30 untuk rincian informasi mengenai pihak berelasi.


7. PERSEDIAAN 7. INVENTORIES

2019 2018Barang jadi 776.046 596.949 Finished goodsBarang dalam proses 693.291 689.587 Work in processBahan baku dan penolong 1.536.375 1.200.152 Raw and indirect materialsBarang dalam perjalanan 109.968 83.665 Goods in transitSuku cadang 1.761.366 1.135.263 Spare parts

4.877.046 3.705.616 Dikurangi: Less:Penyisihan persediaan usang Provision for obsolete

dan bergerak lambat (235.400) (161.474) and slow moving inventories

Jumlah 4.641.646 3.544.142 Total

Mutasi penyisihan persediaan usang dan bergerak lambat adalah sebagai berikut:

The movement in the provision for obsolete and slow moving inventories is as follows:

2019 2018

Saldo awal 161.474 117.072 Beginning balanceAkuisisi entitas anak 93.879 - Acquisitions of a subsidiary(Pembalikan)/penambahan, bersih (19.953) 44.402 (Reversal)/additions, net


Manajemen Grup berkeyakinan bahwa penyisihan persediaan usang dan bergerak lambat telah mencukupi untuk menutup kemungkinan kerugian yang timbul dari persediaan usang dan bergerak lambat.

The management of the Group believes that the provision for obsolete and slow moving inventories is adequate to cover possible losses from obsolete and slow moving inventories.

Pada tanggal 31 Desember 2019, persediaan sebesar Rp 1.556.283 dijadikan jaminan atas pinjaman tertentu (Catatan 14).

As at 31 December 2019, inventories of Rp 1,556,283 were pledged as collateral for certain borrowings (Note 14).

Pada tanggal 31 Desember 2019, persediaan senilai Rp 3.544.670 telah diasuransikan terhadap risiko kerugian yang disebabkan oleh bencana alam, kebakaran, dan risiko kerugian lainnya dengan nilai pertanggungan sebesar Rp 2.584.818.

As at 31 December 2019, inventories amounted to Rp 3,544,670 are covered by insurance against the risk of loss due to natural disaster, fire, and other risks with a total coverage of Rp 2,584,818.

Manajemen berpendapat bahwa, nilai pertanggungan asuransi tersebut telah memadai untuk menutupi kerugian yang mungkin timbul dari risiko-risiko tersebut.

Management believes that the insurance coverage is adequate to cover possible losses arising from such risks.

327









8. PERPAJAKAN 8. TAXATION

a. Pajak dibayar dimuka a. Prepaid taxes

2019 2018

Pajak penghasilan badan Corporate Income TaxPerseroan The CompanyPasal 28a Article 28a- 2017 432.329 432.329 2017 -- 2016 59.060 59.060 2016 -

491.389 491.389

Entitas anak SubsidiariesPasal 28 34.122 - Article 28Pasal 28a 12.639 253.327 Article 28a

46.761 253.327 538.150 744.716

Pajak lain-lain Other TaxesEntitas anak SubsidiariesPajak Pertambahan Nilai 160.086 205.841 Value Added TaxLain-lain 65.642 35.171 Others

225.728 241.012

Jumlah 763.878 985.728 Total

b. Tagihan pengembalian pajak b. Claim for tax refund

2019 2018Entitas anak Subsidiaries

- Pajak penghasilan badan 299.367 - Corporate income tax -- Pajak lain-lain 143.766 - Other taxes -

Jumlah 443.133 - Total

c. Utang pajak c. Taxes payable

2019 2018Pajak penghasilan badan Corporate income taxPerseroan The CompanyPasal 29 93.850 2.367 Article 29

Entitas anak SubsidiariesPasal 29 232.658 145.721 Article 29

326.508 148.088

Pajak lain-lain Other TaxesPerseroan The CompanyPajak Penghasilan: Income Taxes:- Pasal 21 9.704 12.068 Article 21 -- Pasal 22 8.470 5.985 Article 22 -- Pasal 23 dan 26 2.122 679 Articles 23 and 26 -- Final 1.709 810 Final -Pajak Pertambahan Nilai 111.251 80.841 Value Added Tax

133.256 100.383

328









8. PERPAJAKAN (lanjutan) 8. TAXATION (continued)

d. Beban pajak penghasilan (lanjutan) d. Income tax expense (continued)

2019 2018

Laba konsolidasian sebelum Consolidated profit before beban pajak penghasilan 3.195.775 4.104.959 income tax expense

Pajak dihitung dengan tarif pajak Tax calculated at applicableyang berlaku 798.944 1.026.240 tax rate

Penghasilan kena pajak final (54.456) (45.493) Income subject to final taxBeban yang tidak dapat dikurangkan 159.004 87.552 Non-deductible expensesPerbedaan tarif pajak Perseroan Differences in tax rate of

dengan entitas anak (239.826) (49.044) the Company and subsidiariesAset pajak tangguhan yang tidak diakui 90.245 - Unrecognised deferred tax assetsPenyesuaian tahun sebelumnya 70.631 - Prior year adjustment

824.542 1.019.255

Rekonsiliasi antara laba sebelum pajak penghasilan dengan taksiran penghasilan kena pajak Perseroan untuk tahun-tahun yang berakhir pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

The reconciliation of profit before income tax and estimated taxable income of the Company for the years ended 31 December 2019 and 2018 are as follows:

2019 2018

Laba konsolidasian sebelum Consolidated profit beforebeban pajak penghasilan 3.195.775 4.104.959 income tax expense

Laba entitas anak sebelum Subsidiaries’ profit beforebeban pajak penghasilan (1.528.336) (1.980.578) income tax expense

Bagian atas hasil bersih entitas asosiasi Share of result of associatesdan ventura bersama 1.793 (1.606) and joint venture

Disesuaikan dengan eliminasi Adjusted for consolidationkonsolidasi (17.233) 42.464 eliminations

Laba sebelum pajak penghasilan Profit before income tax -Perseroan 1.651.999 2.165.239 the Company

Penyesuaian pajak: Tax adjustments:Beban yang tidak dapat dikurangkan 416.361 209.218 Non-deductible expensesPenghasilan kena pajak final (215.047) (154.071) Income subject to final taxPerbedaan penyusutan dan Difference between fiscal and commercial

amortisasi fiskal dan komersial (698.373) (722.959) depreciation and amortisationLiabilitas imbalan kerja 278.012 (68.900) Employee benefits liabilitiesPenyisihan persediaan usang Provision for obsolete and

dan bergerak lambat 26.325 17.220 slow moving inventoriesCadangan penurunan Provision for impairment

nilai piutang usaha - (4.231) of trade receivableProvisi lainnya 10.014 16.183 Other provisions

(182.708) (707.540) Penghasilan kena pajak - Perseroan 1.469.291 1.457.699 Taxable income - the Company

Beban pajak penghasilan Income tax expense ofPerseroan - kini 293.858 291.541 the Company - current

Pembayaran pajak dimuka Prepayment of income taxesPerseroan (200.008) (289.174) of the Company

Utang pajak penghasilan - Perseroan 93.850 2.367 Income tax payable - the Company

Dalam laporan keuangan konsolidasian ini, jumlah penghasilan kena pajak tahun 2019 didasarkan atas perhitungan sementara, karena Perseroan belum menyampaikan Surat Pemberitahuan Tahunan (“SPT”) pajak penghasilan badan.

In these consolidated financial statements, the amount of taxable income for the year 2019 is based on preliminary calculations, as the Company has not submitted its annual corporate income tax return.








c. Utang pajak (lanjutan) c. Taxes payable (continued)

2019 2018Entitas anak SubsidiariesPajak Penghasilan: Income Taxes:- Pasal 21 28.284 25.857 Article 21 -- Pasal 22 8.390 3.772 Article 22 -- Pasal 23 dan 26 38.318 17.297 Articles 23 and 26 -- Final 1.318 1.407 Final -Pajak Bumi dan Bangunan 1.475 6.263 Land and Building TaxPajak Pertambahan Nilai 66.676 45.241 Value Added TaxLainnya 21.405 14.475 Others

165.866 114.312 299.122 214.695

Jumlah 625.630 362.783 Total

Perseroan ditunjuk sebagai Wajib Pungut Pajak Penghasilan Pasal 22 dan Pajak Pertambahan Nilai masing-masing pada tanggal 9 Juni 2015 dan 20 Juni 2012.

The Company was appointed as an Income Tax Article 22 and Value Added Tax collector on 9 June 2015 and 20 June 2012, respectively.

d. Beban pajak penghasilan d. Income tax expense

Beban pajak Grup terdiri dari: Tax expense of the Group consists of the following:

2019 2018

Perseroan The CompanyKini 293.858 291.541 CurrentTangguhan 2.224 142.925 Deferred

296.082 434.466

Entitas anak SubsidiariesKini 689.679 431.832 CurrentTangguhan (231.850) 152.957 DeferredPenyesuaian tahun sebelumnya 70.631 - Prior year adjustment

528.460 584.789

Konsolidasian ConsolidatedKini 983.537 723.373 CurrentTangguhan (229.626) 295.882 DeferredPenyesuaian tahun sebelumnya 70.631 - Prior year adjustment

Jumlah 824.542 1.019.255 Total

Berdasarkan Peraturan Pemerintah No. 81/2007, perseroan terbuka yang memenuhi syarat-syarat tertentu berhak memperoleh penurunan tarif pajak penghasilan sebesar 5% dari tarif pajak penghasilan yang berlaku. Perseroan telah memenuhi syarat-syarat tersebut dan telah menerapkan penurunan tarif pajak untuk tahun fiskal 2019 dan 2018.

Based on the Government Regulation No. 81/2007, public listed entities which meet certain requirements are entitled to a 5% tax rate reduction from the applicable tax rates. The Company has complied with these requirements and has applied for such reduction for fiscal years 2019 and 2018.

Rekonsiliasi pajak atas laba sebelum pajak Grup secara teoritis dengan beban pajak penghasilan adalah sebagai berikut:

Reconciliation of theoretical tax amount on the Group profit before tax to the income tax as follows:

329










d. Beban pajak penghasilan (lanjutan) d. Income tax expense (continued)

2019 2018

Laba konsolidasian sebelum Consolidated profit before beban pajak penghasilan 3.195.775 4.104.959 income tax expense

Pajak dihitung dengan tarif pajak Tax calculated at applicableyang berlaku 798.944 1.026.240 tax rate

Penghasilan kena pajak final (54.456) (45.493) Income subject to final taxBeban yang tidak dapat dikurangkan 159.004 87.552 Non-deductible expensesPerbedaan tarif pajak Perseroan Differences in tax rate of

dengan entitas anak (239.826) (49.044) the Company and subsidiariesAset pajak tangguhan yang tidak diakui 90.245 - Unrecognised deferred tax assetsPenyesuaian tahun sebelumnya 70.631 - Prior year adjustment

824.542 1.019.255

Rekonsiliasi antara laba sebelum pajak penghasilan dengan taksiran penghasilan kena pajak Perseroan untuk tahun-tahun yang berakhir pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

The reconciliation of profit before income tax and estimated taxable income of the Company for the years ended 31 December 2019 and 2018 are as follows:

2019 2018

Laba konsolidasian sebelum Consolidated profit beforebeban pajak penghasilan 3.195.775 4.104.959 income tax expense

Laba entitas anak sebelum Subsidiaries’ profit beforebeban pajak penghasilan (1.528.336) (1.980.578) income tax expense

Bagian atas hasil bersih entitas asosiasi Share of result of associatesdan ventura bersama 1.793 (1.606) and joint venture

Disesuaikan dengan eliminasi Adjusted for consolidationkonsolidasi (17.233) 42.464 eliminations

Laba sebelum pajak penghasilan Profit before income tax -Perseroan 1.651.999 2.165.239 the Company

Penyesuaian pajak: Tax adjustments:Beban yang tidak dapat dikurangkan 416.361 209.218 Non-deductible expensesPenghasilan kena pajak final (215.047) (154.071) Income subject to final taxPerbedaan penyusutan dan Difference between fiscal and commercial

amortisasi fiskal dan komersial (698.373) (722.959) depreciation and amortisationLiabilitas imbalan kerja 278.012 (68.900) Employee benefits liabilitiesPenyisihan persediaan usang Provision for obsolete and

dan bergerak lambat 26.325 17.220 slow moving inventoriesCadangan penurunan Provision for impairment

nilai piutang usaha - (4.231) of trade receivableProvisi lainnya 10.014 16.183 Other provisions

(182.708) (707.540) Penghasilan kena pajak - Perseroan 1.469.291 1.457.699 Taxable income - the Company

Beban pajak penghasilan Income tax expense ofPerseroan - kini 293.858 291.541 the Company - current

Pembayaran pajak dimuka Prepayment of income taxesPerseroan (200.008) (289.174) of the Company

Utang pajak penghasilan - Perseroan 93.850 2.367 Income tax payable - the Company

Dalam laporan keuangan konsolidasian ini, jumlah penghasilan kena pajak tahun 2019 didasarkan atas perhitungan sementara, karena Perseroan belum menyampaikan Surat Pemberitahuan Tahunan (“SPT”) pajak penghasilan badan.

In these consolidated financial statements, the amount of taxable income for the year 2019 is based on preliminary calculations, as the Company has not submitted its annual corporate income tax return.

330










e. Aset dan liabilitas pajak tangguhan (lanjutan)

e. Deferred tax assets and liabilities (continued)

Dikreditkan/ Dibebankan(dibebankan) ke penghasilanke laporan komprehensif lain/laba rugi/ Charged/

Saldo awal/ Credited to other Saldo akhir/Beginning (charged) to comprehensive Ending

balance profit or loss income balance

Aset pajak tangguhan - bersih Deferred tax asset - net

Perseroan The CompanyAset tetap 432.742 (162.605) - 270.137 Fixed assets

Aset sewa pembiayaan - 57 - 57 Finance Lease assetsAset takberwujud 4.044 27.568 - 31.612 Intangible assetsPenyisihan persediaan usang dan Provisions for obsolete and slow

bergerak lambat 14.260 3.444 - 17.704 moving inventoriesPenyisihan penurunan nilai Provisions for impairment of

piutang usaha 2.600 (846) - 1.754 trade receivablesLiabilitas imbalan kerja Long-term employee benefits

jangka panjang 145.624 13.948 (22.550) 137.023 liabilities

Lain-lain 70.323 (24.491) - 45.832 Others

669.593 (142.925) (22.550) 504.119

Entitas anak SubsidiariesAset tetap (97.886) 107.736 - 9.850 Fixed assets

Aset takberwujud - (15.596) - (15.596) Intangible assetsAset sewa pembiayaan 98 (5.585) - (5.487) Finance lease assetsPenyisihan persediaan usang dan Provisions for obsolete and slow

bergerak lambat 7.548 (7.365) - 183 moving inventories

Penyisihan penurunan nilai Provisions for impairment of

piutang usaha 11.110 (683) - 10.427 trade receivablesLiabilitas imbalan kerja Short-term employee benefits

jangka pendek 51.001 (47.537) - 3.464 liabilitiesLiabilitas imbalan kerja Long-term employee benefits

jangka panjang 139.905 (95.006) (27.077) 17.822 liabilities

Akumulasi rugi fiskal 20.035 5.814 - 25.849 Accumulated fiscal lossLain-lain 18.996 (7.018) - 11.978 Others

150.807 (65.240) (27.077) 58.490

Jumlah aset pajak tangguhan - bersih 820.400 (208.165) (49.627) 562.609 Total deferred tax assets - net

Liabilitas pajak tangguhan - bersih Deferred tax liabilities - net

Entitas anak SubsidiariesAset tetap (349.981) (304.994) - (654.975) Fixed assetsNilai wajar aset atas Fair value assets

akuisisi entitas anak (19.276) 19.276 - - of acquisition subsidiaryAset sewa pembiayaan (17.191) 7.782 - (9.409) Finance lease assets

Penyisihan persediaan usang dan Provisions for obsolete and slowbergerak lambat 6.540 12.384 - 18.924 moving inventories


piutang usaha 13.034 1.650 - 14.684 trade receivablesLiabilitas imbalan kerja Long-term employee benefits


Akumulasi rugi fiskal 18.990 23.346 - 42.336 Fiscal loss carryforwardLain-lain 132.031 66.905 - 198.936 Others

Jumlah liabilitas pajak tangguhan - bersih (71.537) (87.717) (47.979) (207.233) Total deferred tax liabilities - net

Beban pajak tangguhan - bersih (295.882) (97.606) Deferred tax expense - net

2018








e. Aset dan liabilitas pajak tangguhan e. Deferred tax assets and liabilities

Dikreditkan/(dibebankan) Dikreditkanke laporan ke penghasilanlaba rugi/ komprehensif lain/ Akuisisi

Saldo awal/ Credited/ Credited to other entitas anak/ Saldo akhir/ Beginning (charged) to comprehensive Acquisition of Ending

balance profit or loss income a subsidiary balance

Aset pajak tangguhan - bersih Deferred tax assets, net

Perseroan The CompanyAset tetap 270.137 (86.938) - - 183.199 Fixed assets

Aset sewa pembiayaan 57 (57) - - - Finance lease assets

Aset takberwujud 31.612 (3.817) - - 27.795 Intangible assets

Penyisihan persediaan usang dan Provision for obsolete and slow

bergerak lambat 17.704 5.265 - - 22.969 moving inventories

Penyisihan penurunan nilai Provision for impairment of

piutang usaha 1.754 - - - 1.754 trade receivables

Liabilitas imbalan kerja Long-term employee benefits

jangka panjang 137.023 21.562 1.536 - 160.121 liabilities

Lain-lain 45.832 61.427 - - 107.259 Others

504.119 (2.558) 1.536 - 503.097

Entitas anak SubsidiariesAset tetap 9.850 (86.873) - - (77.023) Fixed assets

Aset sewa pembiayaan (5.487) (490) - - (5.977) Finance lease assets

Aset takberwujud (15.596) 3.395 - - (12.201) Intangible assets

Penyisihan persediaan usang dan Provision for obsolete and slow

bergerak lambat 183 496 - - 679 moving inventories


piutang usaha 10.427 29.542 - - 39.969 trade receivables


jangka panjang 17.822 35.956 259 - 54.037 liabilities

Akumulasi rugi fiskal 25.849 100.899 - - 126.748 Accumulated fiscal loss

Lain-lain 15.442 (7.926) - 21.417 28.933 Others

58.490 74.999 259 21.417 155.165

Jumlah aset pajak tangguhan - bersih 562.609 72.441 1.795 21.417 658.262 Total deferred tax assets - net


Entitas anak SubsidiariesAset tetap (654.975) 551.431 - (3.239.178) (3.342.722) Fixed assets

Aset sewa pembiayaan (9.409) 94 - - (9.315) Finance lease assets

Aset takberwujud - - - (573.625) (573.625) Intangible assets

Penyisihan persediaan usang dan Provisions for obsolete and slow

bergerak lambat 18.924 2.886 - - 21.810 moving inventories


piutang usaha 14.684 30.833 - - 45.517 trade receivables


jangka panjang 182.271 171.714 - - 353.985 liabilities

Akumulasi rugi fiskal 42.336 (14.162) - - 28.174 Accumulated fiscal loss

Lain-lain 198.936 (585.611) - 24.444 (362.231) Others

Total liabilitas pajak tangguhan - bersih (207.233) 157.185 - (3.788.359) (3.838.407) Total deferred tax liabilities - net

Manfaat pajak tangguhan - bersih 229.626 1.795 (3.766.942) Deferred tax benefit - net

2019

331










e. Aset dan liabilitas pajak tangguhan (lanjutan)

e. Deferred tax assets and liabilities (continued)

Dikreditkan/ Dibebankan(dibebankan) ke penghasilanke laporan komprehensif lain/laba rugi/ Charged/

Saldo awal/ Credited to other Saldo akhir/Beginning (charged) to comprehensive Ending

balance profit or loss income balance

Aset pajak tangguhan - bersih Deferred tax asset - net

Perseroan The CompanyAset tetap 432.742 (162.605) - 270.137 Fixed assets

Aset sewa pembiayaan - 57 - 57 Finance Lease assetsAset takberwujud 4.044 27.568 - 31.612 Intangible assetsPenyisihan persediaan usang dan Provisions for obsolete and slow

bergerak lambat 14.260 3.444 - 17.704 moving inventoriesPenyisihan penurunan nilai Provisions for impairment of

piutang usaha 2.600 (846) - 1.754 trade receivablesLiabilitas imbalan kerja Long-term employee benefits


Lain-lain 70.323 (24.491) - 45.832 Others

669.593 (142.925) (22.550) 504.119

Entitas anak SubsidiariesAset tetap (97.886) 107.736 - 9.850 Fixed assets

Aset takberwujud - (15.596) - (15.596) Intangible assetsAset sewa pembiayaan 98 (5.585) - (5.487) Finance lease assetsPenyisihan persediaan usang dan Provisions for obsolete and slow

bergerak lambat 7.548 (7.365) - 183 moving inventories


piutang usaha 11.110 (683) - 10.427 trade receivablesLiabilitas imbalan kerja Short-term employee benefits

jangka pendek 51.001 (47.537) - 3.464 liabilitiesLiabilitas imbalan kerja Long-term employee benefits

jangka panjang 139.905 (95.006) (27.077) 17.822 liabilities

Akumulasi rugi fiskal 20.035 5.814 - 25.849 Accumulated fiscal lossLain-lain 18.996 (7.018) - 11.978 Others

150.807 (65.240) (27.077) 58.490

Jumlah aset pajak tangguhan - bersih 820.400 (208.165) (49.627) 562.609 Total deferred tax assets - net


Entitas anak SubsidiariesAset tetap (349.981) (304.994) - (654.975) Fixed assetsNilai wajar aset atas Fair value assets

akuisisi entitas anak (19.276) 19.276 - - of acquisition subsidiaryAset sewa pembiayaan (17.191) 7.782 - (9.409) Finance lease assets

Penyisihan persediaan usang dan Provisions for obsolete and slowbergerak lambat 6.540 12.384 - 18.924 moving inventories


piutang usaha 13.034 1.650 - 14.684 trade receivablesLiabilitas imbalan kerja Long-term employee benefits


Akumulasi rugi fiskal 18.990 23.346 - 42.336 Fiscal loss carryforwardLain-lain 132.031 66.905 - 198.936 Others

Jumlah liabilitas pajak tangguhan - bersih (71.537) (87.717) (47.979) (207.233) Total deferred tax liabilities - net

Beban pajak tangguhan - bersih (295.882) (97.606) Deferred tax expense - net

2018

332









10. INVESTASI PADA ENTITAS ASOSIASI (lanjutan) 10. INVESTMENT IN ASSOCIATES (continued)

Seluruh entitas asosiasi dicatat dengan menggunakan metode ekuitas dalam laporan keuangan konsolidazsian ini.

All of the above associates are accounted for using the equity method in these consolidated financial statements.

Persentase kepemilikan pada PT Igasar kurang dari 20% namun kepemilikan tersebut diklasifikasi sebagai investasi pada entitas asosiasi karena Grup mempunyai pengaruh signifikan pada PT Igasar melalui Koperasi Karyawan Semen Padang.

The percentage ownership in PT Igasar is less than 20%, but such ownership is classified as investment in associate as the Group has significant influence on PT Igasar through Koperasi Karyawan Semen Padang.

Ringkasan laporan posisi keuangan PT Swadaya Graha pada tanggal 31 Desember 2019 dan 2018 serta rekonsiliasinya dengan jumlah tercatat atas kepentingan Grup pada PT Swadaya Graha adalah sebagai berikut:

Summarised statements of financial position of PT Swadaya Graha as at 31 December 2019 and 2018 and the reconciliation with the carrying amount of the Group’s interest in PT Swadaya Graha are as follows:

PT Swadaya Graha

PT Swadaya Graha

Aset lancar 792.356 863.869 Current assetsAset tidak lancar 116.033 130.806 Non-current assetsJumlah Aset 908.389 994.675 Total Assets

Liabilitas jangka pendek 698.987 787.672 Current liabilitiesLiabilitas jangka panjang 56.941 68.008 Non-current liabilitiesJumlah Liabilitas 755.928 855.680 Total Liabilities

2019 2018

Persentase kepemilikan efektif 33,06% 33,06% Percentage of effective ownershipBagian Grup atas aset bersih entitas The Group's share of the net

asosiasi 50.404 45.952 asset of associatesPenyesuaian metode ekuitas 38.597 39.041 Equity method adjustments

Jumlah Tercatat 89.001 84.993 Total Carrying Value

Ringkasan laporan laba rugi dan penghasilan komprehensif lain PT Swadaya Graha untuk tahun yang berakhir pada 31 Desember 2019 dan 2018 adalah sebagai berikut:

Summarised statements of profit or loss and other comprehensive PT Swadaya Graha for the years ended 31 December 2019 and 2018 are as follows:

PT Swadaya Graha

PT Swadaya Graha

Pendapatan 925.344 1.199.228 RevenueBeban (913.525) (1.185.165) ExpensesLaba tahun berjalan 11.819 14.063 Profit for the year

Penghasilan/(rugi) komprehensif lain Other comprehensive income/(loss)tahun berjalan setelah pajak 5.163 (5.748) for the year, net of tax

Jumlah penghasilan komprehensif Total comprehensive incometahun berjalan 16.982 8.315 for the year

Dividen yang dibayarkan 5.614 - Dividen paid

2019 2018

Informasi diatas adalah jumlah sebelum eliminasi antar entitas.

The information above is the amount before inter-company eliminations.








f. Surat ketetapan pajak f. Tax assessments

Pada tahun 2019 dan 2018, Grup telah menerima beberapa surat ketetapan pajak untuk berbagai tahun pajak. Grup menyetujui sebagian ketetapan pajak tersebut dan telah membukukan tambahan beban sebesar Rp 100.694 (2018: Rp 29.074) dalam laba rugi.

In 2019 and 2018, the Group has received a number of assessments for various tax years. The Group has accepted a portion of these assessments and booked an additional amount of Rp 100,694 (2018: Rp 29,074) of expenses in profit or loss.

Atas jumlah sisanya, Grup telah mengajukan keberatan dan banding. Pada tanggal 31 Desember 2019 dan 2018, jumlah ketetapan pajak yang masih dalam proses keberatan dan banding adalah sebagai berikut:

For the remaining amounts, the Group has field objections and appeals. As at 31 December 2019 and 2018, the amount of assessments in the process of objection and appeal were as follows:

2019 2018

Pajak penghasilan badan 1.268.597 159.136 Corporate income taxPajak lain-lain 578.870 21.721 Other taxes

1.847.467 180.857

9. KAS YANG DIBATASI PENGGUNAANNYA 9. RESTRICTED CASH

2019 2018

Pihak berelasi/Related parties :Rupiah:

PT Bank Rakyat Indonesia (Persero) Tbk 3.600 100 PT Bank Mandiri (Persero) Tbk 3.216 - Lain-lain/Others (masing-masing di bawah/

each below Rp 3,000) 1.453 882 8.269 982


PT Bank Pembangunan Daerah Jawa Timur Tbk 44.938 26.201 PT Bank Pembangunan Daerah Jawa Tengah 4.149 4.149

49.087 30.350 Jumlah/Total 57.356 31.332

Kas yang dibatasi penggunaannya merupakan dana yang ditempatkan sebagai jaminan biaya rehabilitasi dan restorasi tanah tambang, jaminan atas fasilitas pinjaman Grup.

Restricted cash are used as guarantee of quarry rehabilitation and restoration, collateral required in relation to the Group’s credit borrowing facilities.

10. INVESTASI PADA ENTITAS ASOSIASI 10. INVESTMENT IN ASSOCIATES

Lokasi usaha/Nama entitas asosiasi/ Aktivitas utama/ Business

Name of associates Principal activity location 2019 2018 2019 2018

PT Swadaya Graha Kontraktor dan persewaan alat berat/ Gresik 33,06% 33,06% 89.001 84.993 Contractor and lessor of heavy equipment

PT Mitra Kiara Indonesia Distributor bahan bangunan/ Jakarta 20,00% 0,00% - - Distributor building material

PT Igasar Distributor semen/Cement distributor Padang 12,00% 12,00% - 645

Jumlah / Total 89.001 85.638

Saldo/

Balance

Persentase kepemilikan/

Percentage of ownership

333









10. INVESTASI PADA ENTITAS ASOSIASI (lanjutan) 10. INVESTMENT IN ASSOCIATES (continued)

Seluruh entitas asosiasi dicatat dengan menggunakan metode ekuitas dalam laporan keuangan konsolidazsian ini.

All of the above associates are accounted for using the equity method in these consolidated financial statements.

Persentase kepemilikan pada PT Igasar kurang dari 20% namun kepemilikan tersebut diklasifikasi sebagai investasi pada entitas asosiasi karena Grup mempunyai pengaruh signifikan pada PT Igasar melalui Koperasi Karyawan Semen Padang.

The percentage ownership in PT Igasar is less than 20%, but such ownership is classified as investment in associate as the Group has significant influence on PT Igasar through Koperasi Karyawan Semen Padang.

Ringkasan laporan posisi keuangan PT Swadaya Graha pada tanggal 31 Desember 2019 dan 2018 serta rekonsiliasinya dengan jumlah tercatat atas kepentingan Grup pada PT Swadaya Graha adalah sebagai berikut:

Summarised statements of financial position of PT Swadaya Graha as at 31 December 2019 and 2018 and the reconciliation with the carrying amount of the Group’s interest in PT Swadaya Graha are as follows:

PT Swadaya Graha

PT Swadaya Graha

Aset lancar 792.356 863.869 Current assetsAset tidak lancar 116.033 130.806 Non-current assetsJumlah Aset 908.389 994.675 Total Assets

Liabilitas jangka pendek 698.987 787.672 Current liabilitiesLiabilitas jangka panjang 56.941 68.008 Non-current liabilitiesJumlah Liabilitas 755.928 855.680 Total Liabilities

2019 2018

Persentase kepemilikan efektif 33,06% 33,06% Percentage of effective ownershipBagian Grup atas aset bersih entitas The Group's share of the net

asosiasi 50.404 45.952 asset of associatesPenyesuaian metode ekuitas 38.597 39.041 Equity method adjustments

Jumlah Tercatat 89.001 84.993 Total Carrying Value

Ringkasan laporan laba rugi dan penghasilan komprehensif lain PT Swadaya Graha untuk tahun yang berakhir pada 31 Desember 2019 dan 2018 adalah sebagai berikut:

Summarised statements of profit or loss and other comprehensive PT Swadaya Graha for the years ended 31 December 2019 and 2018 are as follows:

PT Swadaya Graha

PT Swadaya Graha

Pendapatan 925.344 1.199.228 RevenueBeban (913.525) (1.185.165) ExpensesLaba tahun berjalan 11.819 14.063 Profit for the year

Penghasilan/(rugi) komprehensif lain Other comprehensive income/(loss)tahun berjalan setelah pajak 5.163 (5.748) for the year, net of tax

Jumlah penghasilan komprehensif Total comprehensive incometahun berjalan 16.982 8.315 for the year

Dividen yang dibayarkan 5.614 - Dividen paid

2019 2018

Informasi diatas adalah jumlah sebelum eliminasi antar entitas.

The information above is the amount before inter-company eliminations.

334









12. ASET TETAP 12. FIXED ASSETS

AkuisisiSaldo awal/ Selisih kurs/ entitas anak/ Saldo akhir/

Beginning Penambahan/ Pengurangan/ Reklasifikasi/ Foreign Acquisition of Ending

balance Additions Deductions Reclassifications*) exchange a subsidiary balance

Harga perolehan: Acquisition cost:

Kepemilikan Langsung Direct Ownership

Tanah 847.284 - (1.012) (170.618) - 4.321.695 4.997.349 Land

Tanah pertambangan 952.211 9.357 (40.824) 287.162 - 902.397 2.110.303 Mining properties

Bangunan, jalan, jembatan Buildings, roads, bridges

dan pelabuhan 12.226.299 21.821 (15.872) 528.463 (58.499) 7.031.837 19.734.049 and harbors

Mesin 28.862.784 255.078 (50.537) 1.191.672 (100.030) 23.117.797 53.276.764 Machinery

Heavy equipment and

Alat-alat berat dan kendaraan 2.664.431 38.436 (137.382) 59.341 (522) 587.126 3.211.430 vehicles

Perlengkapan dan peralatan Furniture and office

kantor 1.094.612 18.356 (27.107) 62.476 (179) 319.085 1.467.243 equipment

Aset dalam pembangunan: Construction in progress:

Tanah 167.539 42.553 (41) (81.101) - 2.356 131.306 Land


dan pelabuhan 500.345 385.791 - (490.758) (2.673) 229.292 621.997 and harbors

Mesin 1.264.181 627.153 (763) (1.199.776) - 275.454 966.249 Machinery

Alat-alat berat dan Heavy equipment and

kendaraan 25.658 103.381 - (113.819) - - 15.220 vehicles

Perlengkapan 63.519 137.154 - (14.894) - 9.785 195.564 Equipment

48.668.863 1.639.080 (273.538) 58.148 (161.903) 36.796.824 86.727.474

Aset Sewa Pembiayaan Finance Lease Assets


kendaraan 646.359 28.699 (445.502) 11.270 - - 240.826 vehicles


kantor 36.151 1.292 - (34.652) - - 2.791 equipment

682.510 29.991 (445.502) (23.382) - - 243.617

Jumlah biaya perolehan 49.351.373 1.669.071 (719.040) 34.766 (161.903) 36.796.824 86.971.091 Total acquisition cost

Akumulasi penyusutan Accumulated depreciation

dan penurunan nilai: and impairment:


Tanah pertambangan 109.008 27.195 (70) 6.514 - 149.529 292.176 Mining properties



Mesin 11.119.920 1.304.148 (40.882) - (41.154) 8.768.892 21.110.924 Machinery


kendaraan 1.587.754 209.412 (129.228) (16.725) (451) 444.357 2.095.119 vehicles


kantor 740.600 95.304 (6.351) 16.725 (169) 191.829 1.037.938 equipment

16.655.911 2.318.041 (185.033) 14.483 (61.647) 11.466.645 30.208.400





kantor 15.862 - - (13.071) - - 2.791 equipment

303.512 26.047 (160.602) (7.968) - - 160.989

Jumlah akumulasi penyusutan Total accumulated depreciation

dan penurunan nilai 16.959.423 2.344.088 (345.635) 6.515 (61.647) 11.466.645 30.369.389 and impairment

Nilai buku bersih 32.391.950 56.601.702 Net book value

*) Direklasifikasikan dari aset tidak lancar lainnya sebesar Rp 28.251 *) Reclassified from other non-current assets amounting to Rp 28,251

2019







11. PROPERTI INVESTASI 11. INVESTMENT PROPERTIES

Saldo awal/ Saldo akhir/Beginning Penambahan/ Pengurangan/ Ending

balance Additions Deductions balanceBiaya perolehan Acquisition costTanah 3.716 - - 3.716 LandBangunan 232.597 2.309 - 234.906 Buildings

236.313 2.309 - 238.622

Akumulasi penyusutan Accumulated depreciationBangunan 104.270 14.750 - 119.020 Buildings

104.270 14.750 - 119.020 Nilai buku bersih 132.043 119.602 Net book value

2019

Saldo awal/ Saldo akhir/Beginning Penambahan/ Pengurangan/ Ending

balance Additions Deductions balanceBiaya perolehan Acquisition costTanah 3.843 - (127) 3.716 LandBangunan 232.055 542 - 232.597 Buildings

235.898 542 (127) 236.313

Akumulasi penyusutan Accumulated depreciationBangunan 89.436 14.834 - 104.270 Buildings

89.436 14.834 - 104.270 Nilai buku bersih 146.462 132.043 Net book value

2018

Hak atas tanah Grup berupa Sertifikat Hak Guna Bangunan (“SHGB”). SHGB memiliki masa berlaku hingga tahun 2044. Manajemen berkayinan bahwa SHGB tersebut dapat diperpanjang.

The Group’s land represents land-use rights (“SHGB”). The SHGB will expire until 2044. Management believes that the SHGB are extendable.

Beban penyusutan untuk tahun-tahun yang berakhir pada 31 Desember 2019 dan 2018 masing-masing sebesar Rp 14.750 dan Rp 14.834 dicatat sebagai beban pokok pendapatan.

Depreciation expense for years ended 31 December 2019 and 2018 amounting to Rp 14,750 and Rp 14,834, respectively, were recorded under cost of revenue.

Pada tanggal 31 Desember 2019 dan 2018, nilai wajar properti investasi masing-masing sebesar Rp 740.036 and Rp 752.268.

As at 31 December 2019 and 2018, fair value of investment properties amounted to Rp 740,036 and Rp 752,268, respectively.

Pada tanggal 31 Desember 2019, properti investasi telah diasuransikan dengan jumlah pertanggungan sebesar Rp 100.118.

As at 31 December 2019, investment properties were insured with total coverage of Rp 100,118.

Manajemen berpendapat bahwa jumlah pertanggungan asuransi tersebut telah memadai untuk menutup kemungkinan kerugian atas aset yang diasuransikan.

Management believes that the insurance coverage is adequate to cover possible losses on the assets insured.

335









12. ASET TETAP 12. FIXED ASSETS

AkuisisiSaldo awal/ Selisih kurs/ entitas anak/ Saldo akhir/

Beginning Penambahan/ Pengurangan/ Reklasifikasi/ Foreign Acquisition of Ending

balance Additions Deductions Reclassifications*) exchange a subsidiary balance

Harga perolehan: Acquisition cost:


Tanah 847.284 - (1.012) (170.618) - 4.321.695 4.997.349 Land

Tanah pertambangan 952.211 9.357 (40.824) 287.162 - 902.397 2.110.303 Mining properties



Mesin 28.862.784 255.078 (50.537) 1.191.672 (100.030) 23.117.797 53.276.764 Machinery

Heavy equipment and

Alat-alat berat dan kendaraan 2.664.431 38.436 (137.382) 59.341 (522) 587.126 3.211.430 vehicles


kantor 1.094.612 18.356 (27.107) 62.476 (179) 319.085 1.467.243 equipment

Aset dalam pembangunan: Construction in progress:

Tanah 167.539 42.553 (41) (81.101) - 2.356 131.306 Land


dan pelabuhan 500.345 385.791 - (490.758) (2.673) 229.292 621.997 and harbors

Mesin 1.264.181 627.153 (763) (1.199.776) - 275.454 966.249 Machinery


kendaraan 25.658 103.381 - (113.819) - - 15.220 vehicles

Perlengkapan 63.519 137.154 - (14.894) - 9.785 195.564 Equipment

48.668.863 1.639.080 (273.538) 58.148 (161.903) 36.796.824 86.727.474





kantor 36.151 1.292 - (34.652) - - 2.791 equipment

682.510 29.991 (445.502) (23.382) - - 243.617

Jumlah biaya perolehan 49.351.373 1.669.071 (719.040) 34.766 (161.903) 36.796.824 86.971.091 Total acquisition cost

Akumulasi penyusutan Accumulated depreciation

dan penurunan nilai: and impairment:


Tanah pertambangan 109.008 27.195 (70) 6.514 - 149.529 292.176 Mining properties



Mesin 11.119.920 1.304.148 (40.882) - (41.154) 8.768.892 21.110.924 Machinery


kendaraan 1.587.754 209.412 (129.228) (16.725) (451) 444.357 2.095.119 vehicles


kantor 740.600 95.304 (6.351) 16.725 (169) 191.829 1.037.938 equipment

16.655.911 2.318.041 (185.033) 14.483 (61.647) 11.466.645 30.208.400





kantor 15.862 - - (13.071) - - 2.791 equipment

303.512 26.047 (160.602) (7.968) - - 160.989

Jumlah akumulasi penyusutan Total accumulated depreciation

dan penurunan nilai 16.959.423 2.344.088 (345.635) 6.515 (61.647) 11.466.645 30.369.389 and impairment


*) Direklasifikasikan dari aset tidak lancar lainnya sebesar Rp 28.251 *) Reclassified from other non-current assets amounting to Rp 28,251

2019

336









12. ASET TETAP (lanjutan) 12. FIXED ASSETS (continued)

Rincian kerugian/keuntungan penjualan aset tetap adalah sebagai berikut:

Details of loss/gain on sale of fixed assets are as follows:

2019 2018

Hasil penjualan Net proceeds from sale ofaset tetap 6.708 4.078 fixed assets

Nilai buku bersih 12.471 898 Net book value

(Kerugian)/keuntungan atas (Loss)/gain on sale of penjualan aset tetap (5.763) 3.180 fixed assets

Pada tahun 2019 pengurangan aset tetap dengan nilai buku bersih sebesar Rp 76.034 (2018: Rp 11.000) merupakan penghapusan aset yang telah usang dan penurunan nilai.

In 2019, the deduction of fixed assets with net book value of Rp 76,034 (2018: Rp 11,000) represents writte-off assets and impairment losses.

Beban penyusutan dan kerugian penurunan nilai aset tetap dialokasikan sebagai berikut:

Depreciation expense and impairment loss of fixed assets were allocated as follows:

2019 2018

Beban pokok pendapatan 1.941.831 1.506.131 Cost of revenueBeban penjualan, umum dan Selling, general and administration

administrasi 402.257 117.328 expensesBeban lain-lain - 2.191 Other expenses

Jumlah 2.344.088 1.625.650 Total

Persentase penyelesaian aset dalam pembangunan pada tanggal 31 Desember 2019 berkisar antara 2% – 99% (2018: 4% – 98%) dari jumlah yang dianggarkan. Sebagian besar bangunan, mesin dan peralatan dalam penyelesaian diperkirakan akan selesai antara tahun 2020 – 2022.

The percentage of completion for construction in progress as at 31 December 2019 ranges from 2% – 99% (2018: 4% – 98%) of total budgeted costs. Most of the buildings, machinery, and equipment under construction are estimated to be completed between 2020 – 2022.

Jumlah tercatat aset tetap yang telah disusutkan penuh dan masih digunakan pada tanggal 31 Desember 2019 dan 2018 masing-masing sebesar Rp 7.986.168 dan Rp 5.351.541.

The carrying amount of fixed assets that are fully depreciated and still in used for production as at 31 December 2019 and 2018 amounted to Rp 7,986,168 and Rp 5,351,541 respectively.

Jumlah tercatat aset tetap yang tidak digunakan sementara untuk aktivitas operasi pada tanggal 31 Desember 2019 dan 2018 masing-masing adalah sebesar Rp 45.848 dan Rp 12.060.

The carrying amount of fixed assets which are not used in operations as at 31 December 2019 and 2018 amounted to Rp 45,848 and Rp 12,060, respectively.

Berdasarkan penilaian internal, nilai wajar aset tetap pada tanggal 31 Desember 2019 dan 2018 masing-masing sebesar Rp 72.891.439 dan Rp 48.510.864. Nilai wajar aset tetap diukur menggunakan input level 3.

Based on internal valuation, the fair value of fixed assets as of December 31, 2019 and 2018 amounted to Rp 72,891,431 and Rp 48,510,864, respectively. The fair value of the Group’s fixed assets are measured using input level 3.

Pada tanggal 31 Desember 2019, aset tetap (kecuali tanah, tanah pertambangan, dan aset tetap dalam pembangunan) telah diasuransikan dalam industrial special risk dan resiko lainnya dengan jumlah pertanggungan sebesar Rp 69.566.385.

As at 31 December 2019, fixed assets (except land, quary, and assets under construction),were insured under industrial special risks and other risks with total coverage of Rp 69,566,385

Manajemen berpendapat bahwa jumlah pertanggungan asuransi tersebut memadai untuk menutup kemungkinan kerugian atas aset yang dipertanggungkan.









Saldo awal/ Selisih kurs/ Saldo akhir/

Beginning Penambahan/ Pengurangan/ Reklasifikasi/ Foreign Endingbalance Additions Deductions Reclassifications exchange balance

Biaya perolehan: Acquisition cost:

Pemilikan Langsung Direct OwnershipTanah 819.190 8.898 - 19.196 - 847.284 LandTanah pertambangan 873.565 2.285 - 76.361 - 952.211 Mining propertiesBangunan, jalan, jembatan Buildings, roads, bridges

dan pelabuhan 11.438.209 58.494 (4.149) 670.056 63.689 12.226.299 and harborsMesin 27.115.806 173.524 (8.706) 1.464.588 117.572 28.862.784 MachineryAlat-alat berat dan Heavy equipment and

kendaraan 2.517.068 46.254 (23.856) 124.338 627 2.664.431 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 856.717 31.936 (233) 205.983 209 1.094.612 equipment

Aset dalam pembangunan: Construction in progress:Tanah 186.772 76.490 - (95.723) - 167.539 LandBangunan, jalan, jembatan Buildings, roads, bridges

dan pelabuhan 800.236 396.373 (2.014) (697.463) 3.213 500.345 and harborsMesin 1.887.519 718.076 - (1.341.414) - 1.264.181 MachineryAlat-alat berat dan Heavy equipment and

kendaraan 75.664 166.558 - (216.564) - 25.658 vehiclesPerlengkapan 133.439 117.623 (109) (187.434) - 63.519 Equipment

46.704.185 1.796.511 (39.067) 21.924 185.310 48.668.863

Aset Sewa Pembiayaan Finance Lease AssetsAlat-alat berat dan Heavy equipment and

kendaraan 788.109 21.158 (123.202) (39.706) - 646.359 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 36.151 - - - - 36.151 equipment

824.260 21.158 (123.202) (39.706) - 682.510

Jumlah biaya perolehan 47.528.445 1.817.669 (162.269) (17.782) 185.310 49.351.373 Total acquisition cost

Akumulasi penyusutan Accumulated depreciationdan penurunan nilai: and impairment:

Pemilikan Langsung Direct OwnershipTanah pertambangan 105.427 3.746 - (165) - 109.008 Mining propertiesBangunan, jalan, jembatan Buildings, roads, bridges

dan pelabuhan 2.795.423 283.620 (2.038) 165 21.459 3.098.629 and harborsMesin 10.101.889 964.954 (5.584) - 58.661 11.119.920 MachineryAlat-alat berat dan Heavy equipment and

kendaraan 1.415.619 190.190 (18.646) 105 486 1.587.754 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 662.066 78.540 (184) - 178 740.600 equipment

15.080.424 1.521.050 (26.452) 105 80.784 16.655.911 Aset Sewa Pembiayaan Finance Lease AssetsAlat-alat berat dan Heavy equipment and

kendaraan 265.797 104.600 (82.642) (105) - 287.650 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 15.862 - - - - 15.862 equipment

281.659 104.600 (82.642) (105) - 303.512

Jumlah akumulasi penyusutan Total Accumulated Depreciation

dan penurunan nilai 15.362.083 1.625.650 (109.094) - 80.784 16.959.423 and impairment


2018

337










Rincian kerugian/keuntungan penjualan aset tetap adalah sebagai berikut:

Details of loss/gain on sale of fixed assets are as follows:

2019 2018

Hasil penjualan Net proceeds from sale ofaset tetap 6.708 4.078 fixed assets

Nilai buku bersih 12.471 898 Net book value

(Kerugian)/keuntungan atas (Loss)/gain on sale of penjualan aset tetap (5.763) 3.180 fixed assets

Pada tahun 2019 pengurangan aset tetap dengan nilai buku bersih sebesar Rp 76.034 (2018: Rp 11.000) merupakan penghapusan aset yang telah usang dan penurunan nilai.

In 2019, the deduction of fixed assets with net book value of Rp 76,034 (2018: Rp 11,000) represents writte-off assets and impairment losses.

Beban penyusutan dan kerugian penurunan nilai aset tetap dialokasikan sebagai berikut:

Depreciation expense and impairment loss of fixed assets were allocated as follows:

2019 2018

Beban pokok pendapatan 1.941.831 1.506.131 Cost of revenueBeban penjualan, umum dan Selling, general and administration

administrasi 402.257 117.328 expensesBeban lain-lain - 2.191 Other expenses

Jumlah 2.344.088 1.625.650 Total

Persentase penyelesaian aset dalam pembangunan pada tanggal 31 Desember 2019 berkisar antara 2% – 99% (2018: 4% – 98%) dari jumlah yang dianggarkan. Sebagian besar bangunan, mesin dan peralatan dalam penyelesaian diperkirakan akan selesai antara tahun 2020 – 2022.

The percentage of completion for construction in progress as at 31 December 2019 ranges from 2% – 99% (2018: 4% – 98%) of total budgeted costs. Most of the buildings, machinery, and equipment under construction are estimated to be completed between 2020 – 2022.

Jumlah tercatat aset tetap yang telah disusutkan penuh dan masih digunakan pada tanggal 31 Desember 2019 dan 2018 masing-masing sebesar Rp 7.986.168 dan Rp 5.351.541.

The carrying amount of fixed assets that are fully depreciated and still in used for production as at 31 December 2019 and 2018 amounted to Rp 7,986,168 and Rp 5,351,541 respectively.

Jumlah tercatat aset tetap yang tidak digunakan sementara untuk aktivitas operasi pada tanggal 31 Desember 2019 dan 2018 masing-masing adalah sebesar Rp 45.848 dan Rp 12.060.

The carrying amount of fixed assets which are not used in operations as at 31 December 2019 and 2018 amounted to Rp 45,848 and Rp 12,060, respectively.

Berdasarkan penilaian internal, nilai wajar aset tetap pada tanggal 31 Desember 2019 dan 2018 masing-masing sebesar Rp 72.891.439 dan Rp 48.510.864. Nilai wajar aset tetap diukur menggunakan input level 3.

Based on internal valuation, the fair value of fixed assets as of December 31, 2019 and 2018 amounted to Rp 72,891,431 and Rp 48,510,864, respectively. The fair value of the Group’s fixed assets are measured using input level 3.

Pada tanggal 31 Desember 2019, aset tetap (kecuali tanah, tanah pertambangan, dan aset tetap dalam pembangunan) telah diasuransikan dalam industrial special risk dan resiko lainnya dengan jumlah pertanggungan sebesar Rp 69.566.385.

As at 31 December 2019, fixed assets (except land, quary, and assets under construction),were insured under industrial special risks and other risks with total coverage of Rp 69,566,385

Manajemen berpendapat bahwa jumlah pertanggungan asuransi tersebut memadai untuk menutup kemungkinan kerugian atas aset yang dipertanggungkan.


338









13. GOODWILL DAN ASET TAKBERWUJUD

(lanjutan) 13. GOODWILL AND INTANGIBLE ASSETS

(continued)

b. Goodwill b. Goodwill

2019 2018

Saldo awal 333.119 385.179 Beginning balanceAkuisisi entitas anak 1.024.193 - Acquisition of subsidiaryAkumulasi kerugian penurunan nilai - (60.000) Accumulated impairment lossSelisih kurs (6.616) 7.940 Foreign exchange

Jumlah tercatat 1.350.696 333.119 Carrying amount

Goodwill timbul dari akuisisi SBI, TLCC, SILOG dan VUB.

Goodwill was arising from acquisition of SBI, TLCC, SILOG and VUB.

Pengujian penurunan nilai atas goodwill dilakukan setiap tahun dan ketika terdapat suatu indikasi bahwa nilai tercatatnya mengalami penurunan nilai.

Goodwill is tested for impairment annually and when circumstances indicate the carrying value may be impaired.

Manajemen telah menunjuk KJPP Ruky, Safrudin dan Rekan, penilai independen, untuk menilai nilai yang dapat terpulihkan dari goodwill tersebut. Nilai terpulihkan tersebut telah ditelaah dengan mengacu pada nilai pakai unit penghasil kas.

Management has appointed KJPP Ruky, Safrudin dan Rekan, an independent appraiser, to assess the recoverable value of the goodwill. The recoverable value has assessed by reference to the cash-generating unit’s value-in-use.

Nilai terpulihkan dari nilai pakai unit penghasil kas ditentukan dengan menggunakan pendekatan pendapatan (metode arus kas yang didiskontokan). Nilai tersebut berada dalam kategori pengukuran nilai wajar Level 3.

The recoverable amount of the cash-generating unit’s value-in-use has been determined using the income approach (a discounted cash flows method). The value is within the category of fair value measurement Level 3.

Asumsi kunci yang digunakan dalam perhitungan pendekatan pendapatan sebagai berikut:

Key assumptions used in the income approach calculation were as follows:

2019 2018 Tingkat pertumbuhan volume penjualan 2,5% - 6,5% 0,9% - 6,8% Sales volume growth rate Tingkat pertumbuhan harga 2,0% - 3,0% 1,7% - 2,0% Sales price growth rate Tingkat diskonto 9,4% - 12,9% 9,7% - 12,8% Discount rate Tingkat pertumbuhan jangka panjang 3,0% 3,0% Long-term growth rate

Berdasarkan penelaahan tersebut, tidak ada penurunan nilai goodwill pada tahun 2019 (2018: kerugian penurunan nilai sebesar Rp 60.000).

Based on the assessment, there is no impairment of goodwill in 2019 (2018: impairment loss of Rp 60,000).







13. GOODWILL DAN ASET TAKBERWUJUD 13. GOODWILL AND INTANGIBLE ASSETS

2019 2018Aset takberwujud 2.909.363 751.568 Intangible assetsGoodwill 1.350.696 333.119 Goodwill

Jumlah 4.260.059 1.084.687 Total

a. Aset takberwujud a. Intangible assets

Saldo awal/ Akuisisi entitas Selisih kurs/ Saldo akhir/Beginning Penambahan/ Pengurangan/ Reklasifikasi/ anak/Acquisition Foreign Ending

balance Additions Deductions Reclassifications of a Subsidiary exchange balance

Biaya perolehan: Acquisition cost:

Lisensi 798.139 - - - 1.428.574 (31.807) 2.194.906 LicensesMerek dagang 181.225 27 - - 872.628 (7.248) 1.046.632 TrademarkPerangkat lunak komputer 180.232 2.089 - - 43.489 (712) 225.098 Computer softwarePengurusan perpanjangan

hak atas tanah 11.680 - - (613) 14.235 - 25.302 Land rights renewal

1.171.276 2.116 - (613) 2.358.926 (39.767) 3.491.938

Akumulasi Accumulated amortisasi dan amortisation andpenurunan nilai: impairment:

Lisensi 130.418 65.997 (177) - 6.685 (5.070) 197.853 LicensesMerek dagang 108.721 63.365 - - - (4.621) 167.465 TrademarkPerangkat lunak komputer 173.394 6.375 - - 28.961 (709) 208.021 Computer softwarePengurusan perpanjangan

hak atas tanah 7.175 472 - - 1.589 - 9.236 Land rights renewal419.708 136.209 (177) - 37.235 (10.400) 582.575

Nilai buku bersih 751.568 2.909.363 Net book value

2019

Saldo awal/ Selisih kurs/ Saldo akhir/Beginning Penambahan/ Pengurangan/ Reklasifikasi/ Foreign Ending

balance Additions Deductions Reclassifications exchange balanceBiaya perolehan: Acquisition cost:

Lisensi 760.855 - - (885) 38.169 798.139 LicensesMerek dagang 172.521 6 - - 8.698 181.225 TrademarkPerangkat lunak komputer 173.940 5.373 - 885 34 180.232 Computer softwarePengurusan perpanjangan

hak atas tanah 11.068 635 (23) - - 11.680 Land rights renewal

1.118.384 6.014 (23) - 46.901 1.171.276

Akumulasi Accumulated amortisasi dan amortisation andpenurunan nilai: impairment:

Lisensi 95.673 30.069 - (307) 4.983 130.418 LicensesMerek dagang 86.252 17.927 - - 4.542 108.721 TrademarkPerangkat lunak komputer 172.326 727 - 307 34 173.394 Computer softwarePengurusan perpanjangan

hak atas tanah 6.645 553 (23) - - 7.175 Land rights renewal

360.896 49.276 (23) - 9.559 419.708

Nilai tercatat bersih 757.488 751.568 Net book value

2018

Lisensi dan merk dagang merupakan aset takberwujud yang diperoleh dari akusisi SBI, SILOG dan TLCC.

Trademark and licenses arising from acquisition of SBI, SILOG and TLCC.

Beban amortisasi aset takberwujud seluruhnya dicatat pada beban umum dan administrasi.

Amortisation of intangible assets is recorded to general and administrative expenses.

339









13. GOODWILL DAN ASET TAKBERWUJUD

(lanjutan) 13. GOODWILL AND INTANGIBLE ASSETS

(continued)

b. Goodwill b. Goodwill

2019 2018

Saldo awal 333.119 385.179 Beginning balanceAkuisisi entitas anak 1.024.193 - Acquisition of subsidiaryAkumulasi kerugian penurunan nilai - (60.000) Accumulated impairment lossSelisih kurs (6.616) 7.940 Foreign exchange

Jumlah tercatat 1.350.696 333.119 Carrying amount

Goodwill timbul dari akuisisi SBI, TLCC, SILOG dan VUB.

Goodwill was arising from acquisition of SBI, TLCC, SILOG and VUB.

Pengujian penurunan nilai atas goodwill dilakukan setiap tahun dan ketika terdapat suatu indikasi bahwa nilai tercatatnya mengalami penurunan nilai.

Goodwill is tested for impairment annually and when circumstances indicate the carrying value may be impaired.

Manajemen telah menunjuk KJPP Ruky, Safrudin dan Rekan, penilai independen, untuk menilai nilai yang dapat terpulihkan dari goodwill tersebut. Nilai terpulihkan tersebut telah ditelaah dengan mengacu pada nilai pakai unit penghasil kas.

Management has appointed KJPP Ruky, Safrudin dan Rekan, an independent appraiser, to assess the recoverable value of the goodwill. The recoverable value has assessed by reference to the cash-generating unit’s value-in-use.

Nilai terpulihkan dari nilai pakai unit penghasil kas ditentukan dengan menggunakan pendekatan pendapatan (metode arus kas yang didiskontokan). Nilai tersebut berada dalam kategori pengukuran nilai wajar Level 3.

The recoverable amount of the cash-generating unit’s value-in-use has been determined using the income approach (a discounted cash flows method). The value is within the category of fair value measurement Level 3.

Asumsi kunci yang digunakan dalam perhitungan pendekatan pendapatan sebagai berikut:

Key assumptions used in the income approach calculation were as follows:

2019 2018 Tingkat pertumbuhan volume penjualan 2,5% - 6,5% 0,9% - 6,8% Sales volume growth rate Tingkat pertumbuhan harga 2,0% - 3,0% 1,7% - 2,0% Sales price growth rate Tingkat diskonto 9,4% - 12,9% 9,7% - 12,8% Discount rate Tingkat pertumbuhan jangka panjang 3,0% 3,0% Long-term growth rate

Berdasarkan penelaahan tersebut, tidak ada penurunan nilai goodwill pada tahun 2019 (2018: kerugian penurunan nilai sebesar Rp 60.000).

Based on the assessment, there is no impairment of goodwill in 2019 (2018: impairment loss of Rp 60,000).

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14. PINJAMAN (lanjutan) 14. BORROWINGS (continued)

a. Pinjaman jangka pendek (lanjutan) a. Short-term borrowings (continued)

Dalam perjanjian pinjaman tersebut, diatur beberapa pembatasan yang harus dipenuhi oleh Grup, antara lain untuk memperoleh persetujuan tertulis dari pemberi pinjaman sebelum melakukan transaksi tertentu seperti mengadakan penggabungan usaha, pengambilalihan, likuidasi atau perubahan pembatasan dalam pemberian pinjaman kepada pihak ketiga, dan kepatuhan terhadap rasio-rasio keuangan tertentu.

In the borrowing agreements, there are several restrictions that have to be fulfilled by the Group, such as to obtain written approval from lenders before entering into certain transactions such as mergers, takeovers, liquidation or change in status restrictions on provide borrowing to third parties, and requirement to comply with certain financial ratios.

Pada tanggal 31 Desember 2019, Grup telah memenuhi batasan-batasan yang diwajibkan dalam semua perjanjian-perjanjian fasilitas pinjaman tersebut.

As at 31 December 2019, the Group was in compliance with the covenants required in all of these borrowing facility agreements.

b. Pinjaman bank jangka panjang b. Long-term bank loans


RupiahPinjaman sindikasi/syndicated loan -

PT Bank Negara Indonesia (Persero) Tbk 15.700.000 - PT Bank Negara Indonesia (Persero) Tbk 1.734.942 4.302.823 PT Bank Rakyat Indonesia (Persero) Tbk 2.612 3.908 PT Bank Mandiri (Persero) Tbk - 291.168


RupiahPT Bank Maybank Indonesia Tbk 1.045.897 - PT Bank CIMB Niaga Tbk 700.000 11.008 PT Bank Permata Tbk 500.000 - PT Bank ICBC Indonesia - 85.767

2.245.897 96.775 EUR

KfW 116.110 -

2.362.007 96.775

19.799.561 4.694.674 Biaya transaksi yang belum diamortisasi/

Unamortised transaction cost (87.313) (455) 19.712.248 4.694.219

Bagian jangka pendek/Current portion (2.052.348) (50.136)

Bagian jangka panjang/Non-current portion 17.659.900 4.644.083







14. PINJAMAN 14. BORROWINGS

2019 2018

Pinjaman jangka pendek 1.211.916 1.551.659 Short-term borrowingsPinjaman bank jangka panjang 19.712.248 4.694.219 Long-term bank loansUtang obligasi 7.065.345 2.994.902 Bonds payableLiabilitas sewa pembiayaan 52.438 361.680 Finance lease liabilities

28.041.947 9.602.460 Bagian jangka pendek (3.292.245) (1.690.182) Current portion

Bagian jangka panjang 24.749.702 7.912.278 Non-current portion

a. Pinjaman jangka pendek a. Short-term borrowings

2019 2018

Pihak berelasi/Related parties :Rupiah

PT Bank Negara Indonesia (Persero) Tbk 788.269 14.636 PT Bank Mandiri (Persero) Tbk 391.423 1.265.843

1.179.692 1.280.479

Pihak ketiga/Third parties :Rupiah

PT Bank CIMB Niaga Tbk - 100.200 Lembaga Pembiayaan Ekspor/Eksport Indonesia - 87.544 PT Bank ICBC Indonesia - 26.123

- 213.867 VND

Bank for Investment and Development of Vietnam 24.262 - Ho Chi Minh City Development Joint-Stock Commercial Bank 4.229 34.981 Sapa Vietnam Joint Stock Company 3.733 3.889 Vietnam Prosperity Joint Stock Commercial Bank - 18.443

32.224 57.313 Jumlah pinjaman jangka pendek/Total short-term borrowings 1.211.916 1.551.659

Informasi lain mengenai pinjaman jangka pendek pada tanggal 31 Desember 2019 adalah sebagai berikut:

Other information relating to short-term borrowings as at 31 December 2019 are as follows:

Jatuh tempo fasilitas/ Jumlah fasilitas/ Suku bunga/

Maturity of facility Total facility Interest rate

PT Bank Mandiri (Persero) Tbk 20 Maret/March 2020 Rp 2,4 triliun/trillion Lembaga pembiayaan ekspor/export + 2,00%

PT Bank Negara Indonesia (Persero) Tbk 25 September 2020 Rp 2,4 triliun/trillion Lembaga pembiayaan ekspor/export + 2,00%

PT Bank Negara Indonesia (Persero) Tbk - Kredit Modal Kerja 16 April 2020 Rp 1,0 triliun/trillion BI Rate + 2%PT Bank Negara Indonesia (Persero) Tbk 16 April 2020 Rp 0,25 triliun/trillion 11,00%Ho Chi Minh City Development Joint Stock Commercial Bank 15 Mei/May 2020 VND 150 miliar/billion 6,40%Sapa Vietnam Joint Stock Commercial Bank 29 Desember/ VND 7,5 miliar/billion 12,00% - 13,00%

December 2020

Bank for Investment and Development of Vietnam 16 September 2020 VND 55 miliar/billion 6,60%

Bank

Fasilitas-fasilitas ini digunakan untuk membiayai modal kerja, belanja modal dan keperluan pendanaan umum lainnya.

The facilities are used to finance working capital funding requirements, capital expenditures and for other general corporate funding purposes.

Pada tanggal 31 Desember 2019, persediaan (Catatan 7) sebesar Rp 1.556.283 dijadikan jaminan atas pinjaman tertentu.

As at 31 December 2019, inventories (Note 7) of Rp 1,556,283 were pledged as collateral for certain borrowings.

341










a. Pinjaman jangka pendek (lanjutan) a. Short-term borrowings (continued)



Pada tanggal 31 Desember 2019, Grup telah memenuhi batasan-batasan yang diwajibkan dalam semua perjanjian-perjanjian fasilitas pinjaman tersebut.


b. Pinjaman bank jangka panjang b. Long-term bank loans


RupiahPinjaman sindikasi/syndicated loan -

PT Bank Negara Indonesia (Persero) Tbk 15.700.000 - PT Bank Negara Indonesia (Persero) Tbk 1.734.942 4.302.823 PT Bank Rakyat Indonesia (Persero) Tbk 2.612 3.908 PT Bank Mandiri (Persero) Tbk - 291.168


RupiahPT Bank Maybank Indonesia Tbk 1.045.897 - PT Bank CIMB Niaga Tbk 700.000 11.008 PT Bank Permata Tbk 500.000 - PT Bank ICBC Indonesia - 85.767

2.245.897 96.775 EUR

KfW 116.110 -

2.362.007 96.775

19.799.561 4.694.674 Biaya transaksi yang belum diamortisasi/

Unamortised transaction cost (87.313) (455) 19.712.248 4.694.219

Bagian jangka pendek/Current portion (2.052.348) (50.136)

Bagian jangka panjang/Non-current portion 17.659.900 4.644.083

342










c. Utang obligasi (lanjutan) c. Bonds payable (continued)

Rincian dari utang obligasi adalah sebagai berikut:

Details of bonds are as follows:

Peringkat/ Jumlah/ Suku bunga/ Wali amanat/ Jadwal pembayaran/Rating Total Interest rate Trustee Repayment schedule

Obligasi berkelanjutan/Public Offering Shelf Bond I Semen Indonesia:- Tahap/Shelf I 2017 idAA 3.000.000 8,6% PT Bank Tabungan Negara (Persero) Tbk 20 Juni/June 2022- Tahap/Shelf II 2019 A idAA 3.364.000 9,0% PT Bank Tabungan Negara (Persero) Tbk 28 Mei/May 2024- Tahap/Shelf II 2019 B idAA 714.000 9,1% PT Bank Tabungan Negara (Persero) Tbk 28 Mei/May 2026


Obligasi berkelanjutan/Public Offering Shelf Bond I Semen Indonesia:- Tahap/Shelf I 2017 idAA+ 3.000.000 8,6% PT Bank Tabungan Negara (Persero) Tbk 20 Juni/June 2022

Obligasi/Bonds

Obligasi/Bonds

2019

2018

Utang obligasi tersebut ditujukan untuk pembiayaan kembali pinjaman bank dan modal kerja dalam rangka pembiayaan operasional.

The bonds are intended for refinancing of bank loans and working capital for operational funding.

Pada bulan Juni 2017 Perseroan memperoleh pernyataan efektif dari OJK melalui surat tertanggal 14 Juni 2017 No. S-303/D.04/2017 dalam rangka Penawaran Umum Obligasi Berkelanjutan I Semen Indonesia Tahap I Tahun 2017 sebesar Rp 8.000.000 yang diterbitkan dalam beberapa tahap.

In June 2017, the Company received the effective notification from OJK based on its letter dated 14 June 2017 No. S-303/D.04/2017 in conjunction with the Shelf Public Offering Shelf Bond I Semen Indonesia Tranche I Year 2017 amounting to Rp 8,000,000 which were issued in series.

Grup diharuskan untuk memenuhi beberapa persyaratan, antara lain untuk memperoleh persetujuan sebelum melakukan transaksi tertentu seperti mengadakan penggabungan usaha, pengambilalihan, dan menjaminkan aset atau pendapatannya dengan pengecualian secara khusus; pembatasan dalam mengubah aktivitas utama dan harus mematuhi rasio-rasio keuangan tertentu.

The Group is required to comply with certain covenants, such as to obtain approval before entering into certain transactions such as mergers, takeovers, and collateralising assets or revenue with certain exceptions; restrictions on change in core business activities, and required to comply with certain financial ratios.

Pada tanggal 31 Desember 2019, Grup telah memenuhi batasan-batasan yang diwajibkan dalam perjanjian penerbitan obligasi tersebut.

As at 31 December 2019, the Group was in compliance with the covenants required in all of these bonds.

Utang obligasi tidak dijamin dengan aset tertentu yang dimiliki oleh Grup.

Bonds payable was not collateralised by any specific Group assets.








b. Pinjaman bank jangka panjang (lanjutan) b. Long-term bank loans (continued)

Informasi lain mengenai pinjaman bank tanggal 31 Desember 2019 adalah sebagai berikut:

Other information relating to bank loans as at 31 December 2019 are as follows:

Jatuh tempo fasilitas/ Jumlah fasilitas/ Suku bunga/

Maturity of facility Total facility Interest rate

PT Bank Negara Indonesia (Persero) Tbk 26 September 2020 Rp 4,93 triliun/trillion 3 Month JIBOR + 1,5% (minimum 8.00%)

PT Bank Negara Indonesia (Persero) Tbk 10 Februari/February 2020 Rp 0,01 triliun/trillion 11,00%

PT Bank Rakyat Indonesia (Persero) Tbk 28 Desember/December 2021 Rp 0,007 triliun/trillion 11,00%Pinjaman Sindikasi/Syndicated loan

PT Bank Negara Indonesia (Persero) Tbk 22 Juli/July 2026 Rp 9,35 triliun/trillion 3 Month JIBOR + 1,85%

KfW 15 Juni/June 2020 EUR 72 juta/million 1,60%

PT Bank Maybank Indonesia Tbk 31 Januari/January 2021 Rp 2,1 triliun/trillion 3 Month JIBOR + 1,80%

Pinjaman Sindikasi/Syndicated loanPT Bank Negara Indonesia (Persero) Tbk 12 Desember/December 2025 Rp 6,35 triliun/trillion 3 Month JIBOR + 2,00%

PT Bank Permata Tbk 26 September 2022 Rp 0,5 triliun/trillion 3 Month JIBOR + 2,75%

PT Bank CIMB Niaga Tbk 31 Januari/January 2021 Rp 2,7 triliun/trillion 3 Month JIBOR + 2,00%

PT Bank Negara Indonesia (Persero) Tbk 26 September 2020 Rp 4,93 triliun/trillion 3M JIBOR + 1.5% (min. 8%)

Bank



Pada tanggal 31 Desember 2019, Grup telah memenuhi batasan-batasan yang diwajibkan dalam perjanjian-perjanjian fasilitas pinjaman tersebut.


Pinjaman bank jangka panjang tidak dijamin dengan aset tertentu yang dimiliki Grup.

Long-term banks loan were not collateraised by any specific Group assets.

c. Utang obligasi c. Bonds payable

2019 2018

Pokok pinjaman 7.078.000 3.000.000 Principal loanBiaya transaksi yang belum diamortisasi (12.655) (5.098) Unamortized transaction costs

7.065.345 2.994.902

343










c. Utang obligasi (lanjutan) c. Bonds payable (continued)

Rincian dari utang obligasi adalah sebagai berikut:

Details of bonds are as follows:


Obligasi berkelanjutan/Public Offering Shelf Bond I Semen Indonesia:- Tahap/Shelf I 2017 idAA 3.000.000 8,6% PT Bank Tabungan Negara (Persero) Tbk 20 Juni/June 2022- Tahap/Shelf II 2019 A idAA 3.364.000 9,0% PT Bank Tabungan Negara (Persero) Tbk 28 Mei/May 2024- Tahap/Shelf II 2019 B idAA 714.000 9,1% PT Bank Tabungan Negara (Persero) Tbk 28 Mei/May 2026


Obligasi berkelanjutan/Public Offering Shelf Bond I Semen Indonesia:- Tahap/Shelf I 2017 idAA+ 3.000.000 8,6% PT Bank Tabungan Negara (Persero) Tbk 20 Juni/June 2022

Obligasi/Bonds

Obligasi/Bonds

2019

2018

Utang obligasi tersebut ditujukan untuk pembiayaan kembali pinjaman bank dan modal kerja dalam rangka pembiayaan operasional.

The bonds are intended for refinancing of bank loans and working capital for operational funding.

Pada bulan Juni 2017 Perseroan memperoleh pernyataan efektif dari OJK melalui surat tertanggal 14 Juni 2017 No. S-303/D.04/2017 dalam rangka Penawaran Umum Obligasi Berkelanjutan I Semen Indonesia Tahap I Tahun 2017 sebesar Rp 8.000.000 yang diterbitkan dalam beberapa tahap.

In June 2017, the Company received the effective notification from OJK based on its letter dated 14 June 2017 No. S-303/D.04/2017 in conjunction with the Shelf Public Offering Shelf Bond I Semen Indonesia Tranche I Year 2017 amounting to Rp 8,000,000 which were issued in series.

Grup diharuskan untuk memenuhi beberapa persyaratan, antara lain untuk memperoleh persetujuan sebelum melakukan transaksi tertentu seperti mengadakan penggabungan usaha, pengambilalihan, dan menjaminkan aset atau pendapatannya dengan pengecualian secara khusus; pembatasan dalam mengubah aktivitas utama dan harus mematuhi rasio-rasio keuangan tertentu.

The Group is required to comply with certain covenants, such as to obtain approval before entering into certain transactions such as mergers, takeovers, and collateralising assets or revenue with certain exceptions; restrictions on change in core business activities, and required to comply with certain financial ratios.

Pada tanggal 31 Desember 2019, Grup telah memenuhi batasan-batasan yang diwajibkan dalam perjanjian penerbitan obligasi tersebut.

As at 31 December 2019, the Group was in compliance with the covenants required in all of these bonds.

Utang obligasi tidak dijamin dengan aset tertentu yang dimiliki oleh Grup.

Bonds payable was not collateralised by any specific Group assets.

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15. DANA SYIRKAH TEMPORER (lanjutan) 15. TEMPORARY SYIRKAH FUNDS (continued)

Dalam akad tersebut, bagian dana Bank akan menurun sejalan dengan pembayaran bertahap per 6 bulan kepada Bank sampai dengan Juli 2026.

Under the agreement, the Bank’s portion will be diminished as the Group will gradually make 6 monthly installments to the Bank until July 2026.

Dalam perjanjian tersebut, diatur beberapa pembatasan yang harus dipenuhi oleh Grup, antara lain untuk memperoleh persetujuan tertulis dari pemberi pinjaman sebelum melakukan transaksi tertentu seperti mengadakan penggabungan usaha, pengambilalihan, likuidasi atau perubahan status serta Anggaran Dasar; pembatasan dalam mengubah aktivitas utama dan harus mematuhi rasio-rasio keuangan tertentu.

In the agreements, there are several restrictions that have to be fulfilled by the Group, such as to obtain written approval from lenders before entering into certain transactions such as mergers, takeovers, liquidation or change in status and Articles of Association, restrictions on change in core business activities, and required to comply with certain financial ratio.

Pada tanggal 31 Desember 2019, Grup telah memenuhi batasan-batasan yang diwajibkan dalam perjanjian tersebut.

As at 31 December 2019, the Group was in compliance with the covenants required in the agreements.

16. UTANG USAHA 16. TRADE PAYABLES

2019 2018Pihak berelasi: Related parties:

Rupiah 864.792 667.913 RupiahMata uang asing lainnya - 2.792 Other foreign currencies

864.792 670.705

Pihak ketiga: Third parties:Rupiah 4.065.860 3.275.405 RupiahUSD 199.881 76.881 USDVND 462.536 330.906 VNDEuro 73.520 121.217 EuroMata uang asing lainnya 3.170 1.035 Other foreign currencies

4.804.967 3.805.444

5.669.759 4.476.149

Utang usaha merupakan utang yang berasal dari pembelian barang dan jasa.

Trade payables represent payables arising from purchases of goods and services.


Refer to Note 30 for details information of to related parties.








d. Informasi lainnya

Mutasi pinjaman adalah sebagai berikut:

d. Other information

The movements in borrowings are as follows:

Pinjamanjangka Liabilitas sewa

pendek/ Pinjaman pembiayaan/Short-term bank/ Utang obligasi/ Finance lease Jumlah/borrowings Bank loans Bonds payable liabilities Total

Saldo awal 1.551.659 4.694.219 2.994.902 361.680 9.602.460 Beginning balanceArus kas: Cash flow:

Proceeds fromPenerimaan pinjaman 6.451.326 33.214.334 4.078.000 - 43.743.660 borrowingsPembayaran kembali Repayments of

pinjaman (8.506.886) (25.109.036) - (337.938) (33.953.860) borrowingsPerubahan nonkas: Non-cash movements:Akuisisi entitas anak 1.715.817 6.931.537 - - 8.647.354 Acquisition of a subsidiary

Biaya transaksi - - (12.655) - (12.655) Transaction costAkrual bunga (18.806) - - (18.806) Acrued interestLainnya - - 5.098 28.696 33.794 Others

Saldo akhir 1.211.916 19.712.248 7.065.345 52.438 28.041.947 Ending balance

2019

Pinjamanjangka Liabilitas sewa

pendek/ Pinjaman pembiayaan/Short-term bank/ Utang obligasi/ Finance lease Jumlah/borrowings Bank loans Bonds payable liabilities Total

Saldo awal 1.193.063 5.317.298 2.993.704 515.228 10.019.293 Beginning balanceArus kas: Cash flow:

Proceeds fromPenerimaan pinjaman 2.080.919 4.273.689 - - 6.354.608 borrowingsPembayaran kembali Repayments of

pinjaman (1.774.146) (4.640.981) - (174.709) (6.589.836) borrowingsPerubahan nonkas: Non-cash movements:

Lainnya 51.823 (255.787) 1.198 21.161 (181.605) Others

Saldo akhir 1.551.659 4.694.219 2.994.902 361.680 9.602.460 Ending balance

2018

15. DANA SYIRKAH TEMPORER 15. TEMPORARY SYIRKAH FUNDS

Dana syirkah temporer merupakan dana yang diterima oleh Grup, berdasarkan fasilitas pembiayaan atas dasar akad musyarakah dengan PT Bank Syariah Mandiri, PT Bank CIMB Niaga Tbk, dan PT Bank BRI Syariah Tbk (“Bank”) di tahun 2019. Berdasarkan akad ini Grup dan Bank melakukan kerjasama dengan nilai kerjasama sebesar Rp 34.736.295, dimana porsi pembiayaan Grup dan Bank adalah masing-masing sebesar Rp 32.736.295 dan Rp 2.000.000, dengan nisbah bagi hasil sebesar 0,14%-1,33% yang dibayarkan tiap 3 bulan.

Temporary syirkah funds is the fund received by Group, based on the financing facility of musyarakah with PT Bank Syariah Mandiri, PT Bank CIMB Niaga Tbk, dan PT Bank BRI Syariah Tbk (“Bank”) in 2019. Based on the agreement, the Group and the Bank agree to conduct a joint partnership of amounting to Rp 34,736,295, where the portion of fund invest by the Group and Bank is amounting to Rp 32,736,295 and Rp 2,000,000, respectively with predetermined profit sharing ratio ranging from 0.14%-1.33% which will be paid every 3 months.

345









15. DANA SYIRKAH TEMPORER (lanjutan) 15. TEMPORARY SYIRKAH FUNDS (continued)

Dalam akad tersebut, bagian dana Bank akan menurun sejalan dengan pembayaran bertahap per 6 bulan kepada Bank sampai dengan Juli 2026.

Under the agreement, the Bank’s portion will be diminished as the Group will gradually make 6 monthly installments to the Bank until July 2026.

Dalam perjanjian tersebut, diatur beberapa pembatasan yang harus dipenuhi oleh Grup, antara lain untuk memperoleh persetujuan tertulis dari pemberi pinjaman sebelum melakukan transaksi tertentu seperti mengadakan penggabungan usaha, pengambilalihan, likuidasi atau perubahan status serta Anggaran Dasar; pembatasan dalam mengubah aktivitas utama dan harus mematuhi rasio-rasio keuangan tertentu.

In the agreements, there are several restrictions that have to be fulfilled by the Group, such as to obtain written approval from lenders before entering into certain transactions such as mergers, takeovers, liquidation or change in status and Articles of Association, restrictions on change in core business activities, and required to comply with certain financial ratio.

Pada tanggal 31 Desember 2019, Grup telah memenuhi batasan-batasan yang diwajibkan dalam perjanjian tersebut.

As at 31 December 2019, the Group was in compliance with the covenants required in the agreements.

16. UTANG USAHA 16. TRADE PAYABLES

2019 2018Pihak berelasi: Related parties:

Rupiah 864.792 667.913 RupiahMata uang asing lainnya - 2.792 Other foreign currencies

864.792 670.705

Pihak ketiga: Third parties:Rupiah 4.065.860 3.275.405 RupiahUSD 199.881 76.881 USDVND 462.536 330.906 VNDEuro 73.520 121.217 EuroMata uang asing lainnya 3.170 1.035 Other foreign currencies

4.804.967 3.805.444

5.669.759 4.476.149

Utang usaha merupakan utang yang berasal dari pembelian barang dan jasa.

Trade payables represent payables arising from purchases of goods and services.


Refer to Note 30 for details information of to related parties.

346









19. MODAL SAHAM 19. SHARE CAPITAL

Sesuai dengan daftar pemegang saham yang dikeluarkan oleh Biro Administrasi Efek, PT Datindo Entrycom, susunan pemegang saham Perseroan pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

Based on the list of shareholders issued by the Securities Administration Bureau, PT Datindo Entrycom, the Company’s shareholders and their ownership interests as at 31 December 2019 and 2018 are as follows:

Jumlah sahamditempatkan dandisetor penuh/ Presentase

Number of kepemilikan/Shares issued Percentage of Nilai/and fully paid ownership Amount

Saham seri A Dwiwarna: Series A Dwiwarna share:Pemerintah Negara Government of the RepublicRepublik Indonesia 1.000 0,01% 0 of Indonesia

Saham seri B: Series B share:Pemerintah Negara Government of the RepublicRepublik Indonesia 3.025.405.000 51,01% 302.541 of Indonesia

Masyarakat (masing-masing dibawah 5%) 2.906.114.000 48,99% 290.611 Public (below 5% each)

5.931.520.000 100,00% 593.152

2019 dan/and 2018

Pemegang saham Seri A memperoleh hak istimewa tertentu sebagai tambahan diluar yang diperoleh saham Seri B. Hak istimewa tersebut mencakup hak menyetujui (a) perubahan anggaran dasar (b) pengangkatan dan pemberhentian anggota dewan komisaris dan direksi (c) persetujuan penggunaan laba (d) pemindah-tanganan aset (e) penyertaan dan pengurangan penyertaan modal (f) penggabungan, peleburan, pengambilalihan, pemisahan dan pembubaran.

The holder of Series A shares has certain special rights in addition to the rights held by the holders of the series B shares. These special rights include the right to approve (a) amendements to the Articles of Association, (b) the appointment and dismissal of the members of the Boards of commissioners and directors, (c) approval for use the Company’s net profits (d) transfer of assets (e) participation and disposal of investee (f) merger, acquisition, separation and liquidation.

20. TAMBAHAN MODAL DISETOR 20. ADDITIONAL PAID-IN CAPITAL Rincian tambahan modal disetor pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

The additional details of paid-up capital as at 31 December 2019 and 2018 are as follows:

2019 2018Agio saham 1.252.066 1.252.066 Share premiumBiaya emisi efek ekuitas (4.710) (4.710) Share issuance costsSelisih nilai perolehan dengan hasil Difference between the cost and the

penjualan saham yang diperoleh proceeds from the sale of treasurykembali 210.902 210.902 stock

1.458.258 1.458.258







17. AKRUAL 17. ACCRUALS

2019 2018

Pengangkutan 223.202 181.162 TransportationPemeliharaan 177.471 158.562 MaintenanceBiaya operasional 112.627 27.670 Operational expensePromosi peningkatan penjualan 107.653 58.119 Sales promotionJasa profesional 81.386 163.154 Professional feesBeban keuangan 75.714 21.365 Finance costAsuransi, sewa dan ekspedisi 73.872 38.731 Insurance, rent and expeditionBeban pengantongan 50.215 39.780 Packer feesRetribusi pertambangan 30.680 4.936 Mining rights feesListrik 10.251 8.110 ElectricityLain-lain 279.437 199.840 Others

Jumlah 1.222.508 901.429 Total

18. PROVISI JANGKA PANJANG 18. LONG-TERM PROVISION

Provisitambahan Jumlah

(pengurangan)/ yang PenyesuaianSaldo awal/ Additional terealisasi/ nilai kini/ Akuisisi entitas Saldo akhir/Beginning (deduction) Amount Present value anak /Acquisition Endingbalance provision realised adjustment of a subsidiary balance

Rehabilitasi dan restorasi Quarry rehabilitation andtanah tambang 109.445 2.441 (19.747) - 43.174 135.313 restoration

Estimasi biaya pembongkaran Estimated cost of dismantlingaset tetap 118.743 11.235 (400) - - 129.578 of fixed assets

228.188 13.676 (20.147) - 43.174 264.891

2019

Provisitambahan Jumlah

(pengurangan)/ yang PenyesuaianSaldo awal/ Additional terealisasi/ nilai kini/ Saldo akhir/Beginning (deduction) Amount Present value Endingbalance provision realised adjustment balance

Rehabilitasi dan restorasi Quarry rehabilitation andtanah tambang 118.337 (7.804) (4.321) 3.233 109.445 restoration

Estimasi biaya pembongkaran Estimated cost of dismantlingaset tetap 105.699 10.288 (2.403) 5.159 118.743 of fixed assets

224.036 2.484 (6.724) 8.392 228.188

2018

Rehabilitasi dan restorasi tanah tambang dilakukan setiap tahun sesuai dengan rencana yang disampaikan kepada otoritas terkait. Pembongkaran aset tetap akan dilakukan pada saat selesainya masa sewa lahan terkait aset tetap tersebut.

Quarry rehabilitation and restoration is carried out every year based on plan reported to the authority. Dismantling of fixed assets will be realised at the end of land rent period of related fixed assets.

347









19. MODAL SAHAM 19. SHARE CAPITAL

Sesuai dengan daftar pemegang saham yang dikeluarkan oleh Biro Administrasi Efek, PT Datindo Entrycom, susunan pemegang saham Perseroan pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

Based on the list of shareholders issued by the Securities Administration Bureau, PT Datindo Entrycom, the Company’s shareholders and their ownership interests as at 31 December 2019 and 2018 are as follows:

Jumlah sahamditempatkan dandisetor penuh/ Presentase

Number of kepemilikan/Shares issued Percentage of Nilai/and fully paid ownership Amount

Saham seri A Dwiwarna: Series A Dwiwarna share:Pemerintah Negara Government of the RepublicRepublik Indonesia 1.000 0,01% 0 of Indonesia

Saham seri B: Series B share:Pemerintah Negara Government of the RepublicRepublik Indonesia 3.025.405.000 51,01% 302.541 of Indonesia

Masyarakat (masing-masing dibawah 5%) 2.906.114.000 48,99% 290.611 Public (below 5% each)

5.931.520.000 100,00% 593.152

2019 dan/and 2018

Pemegang saham Seri A memperoleh hak istimewa tertentu sebagai tambahan diluar yang diperoleh saham Seri B. Hak istimewa tersebut mencakup hak menyetujui (a) perubahan anggaran dasar (b) pengangkatan dan pemberhentian anggota dewan komisaris dan direksi (c) persetujuan penggunaan laba (d) pemindah-tanganan aset (e) penyertaan dan pengurangan penyertaan modal (f) penggabungan, peleburan, pengambilalihan, pemisahan dan pembubaran.

The holder of Series A shares has certain special rights in addition to the rights held by the holders of the series B shares. These special rights include the right to approve (a) amendements to the Articles of Association, (b) the appointment and dismissal of the members of the Boards of commissioners and directors, (c) approval for use the Company’s net profits (d) transfer of assets (e) participation and disposal of investee (f) merger, acquisition, separation and liquidation.

20. TAMBAHAN MODAL DISETOR 20. ADDITIONAL PAID-IN CAPITAL Rincian tambahan modal disetor pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

The additional details of paid-up capital as at 31 December 2019 and 2018 are as follows:

2019 2018Agio saham 1.252.066 1.252.066 Share premiumBiaya emisi efek ekuitas (4.710) (4.710) Share issuance costsSelisih nilai perolehan dengan hasil Difference between the cost and the

penjualan saham yang diperoleh proceeds from the sale of treasurykembali 210.902 210.902 stock

1.458.258 1.458.258

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22. KEPENTINGAN NONPENGENDALI (lanjutan) 22. NON-CONTROLLING INTERESTS (continued)

Ringkasan laporan posisi keuangan pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

Summarised statements of financial position as at 31 December 2019 and 2018 is as follows:

PT Semen Indonesia Thang Long Cement PT Semen Thang Long Cement PT Semen

Industri Bangunan Joint Stock Company Indonesia Logistik Joint Stock Company Indonesia Logistik

dan entitas anak/ dan entitas anak/ dan entitas anak/ dan entitas anak/ dan entitas anak/

and subsidiary and subsidiaries and subsidiaries and subsidiaries and subsidiaries

Aset lancar 3.207.285 290.912 1.174.048 234.675 1.252.825 Current assets

Aset tidak lancar 29.264.362 1.921.110 1.069.340 2.245.839 1.181.204 Non-current assets

Jumlah Aset 32.471.647 2.212.022 2.243.388 2.480.514 2.434.029 Total Assets

Liabilitas jangka pendek 2.963.920 546.019 1.172.781 745.236 1.514.500 Current liabilities

Liabilitas jangka panjang 25.259.821 294.822 461.196 293.138 309.947 Non-current liabilities

Ekuitas yang dapat diatribusikan Equity attributable to owners

kepada pemilik entitas induk 3.928.411 1.370.891 605.651 1.441.840 608.866 of the parent

Kepentingan nonpengendali 319.495 290 3.760 300 717 Non-controlling interests

Jumlah Liabilitas dan Ekuitas 32.471.647 2.212.022 2.243.388 2.480.514 2.434.029 Total Liabilities and Equity

20182019

Ringkasan laporan laba rugi dan penghasilan komprehensif lain untuk tahun yang berakhir pada 31 Desember 2019 dan 2018 adalah sebagai berikut:

Summarised statements of profit or loss and other comprehensive income for the year ended 31 December 2019 and 2018 are as follows:





Pendapatan 10.214.306 1.291.058 4.841.177 1.518.384 4.922.079 Revenue

Beban (11.071.111) (1.305.747) (4.815.361) (1.493.406) (4.890.876) Expenses

Laba/(rugi) tahun berjalan (856.805) (14.689) 25.816 24.978 31.203 Profit/(loss) for the year

Penghasilan/(rugi) komprehensif lain 67.212 (55.973) 1.362 (178.557) 1.427 Other comprehensive income/(loss)

Jumlah laba/(rugi) komprehensif lain Total other comprehensive income/

tahun berjalan (789.593) (70.662) 27.178 (153.579) 32.630 (loss) for the year

Laba/(rugi) yang dapat diatribusikankepada: Profit/(loss) attributable to:

Pemilik entitas induk (868.011) (14.690) 24.010 24.990 30.452 Owners of the company

Kepentingan nonpengendali 11.206 1 1.806 (12) 751 Non-controlling interests


Jumlah penghasilan komprehensif lain Total other comprehensive income

yang dapat distribusikan kepada attributable to


Kepentingan nonpengendali 12.341 (16.791) 1.806 (11) 755 Non-controlling interests

Jumlah penghasilan komprehensif Total other comprehensive income

lain tahun berjalan (789.593) (70.662) 27.178 24.978 32.630 for the year

20182019







21. DIVIDEN 21. DIVIDENDS

Berdasarkan Rapat Umum Pemegang Saham Tahunan (RUPST) tahun 2019 yang diselenggarakan pada tanggal 22 Mei 2019, yang tertuang dalam Akta Notaris No. 29, pemegang saham memutuskan, antara lain, untuk membagi dividen sebesar Rp 207,64 per lembar saham (nilai penuh) dengan total pembayaran Rp 1.231.646.

Based on the Annual General Meeting of Shareholders (AGMS) in 2019 which was held on 22 May 2019, as stated on Notarial Deed No. 29 the shareholders approved, among others, the distribution of dividend amounting to Rp 207.64 per share (full amount) for a total amount paid of Rp 1,231,646.

Berdasarkan Rapat Umum Pemegang Saham Tahunan (RUPST) tahun 2018 yang diselenggarakan pada tanggal 30 April 2018, yang tertuang dalam Akta Notaris No.155, pemegang saham memutuskan, antara lain, untuk membagi dividen sebesar Rp 135,83 per lembar saham (nilai penuh) dengan total pembayaran Rp 805.678.

Based on the Annual General Meeting of Shareholders (AGMS) in 2018 which was held on 30 April 2018, as stated on Notarial Deed No.155 the shareholders approved, among others, the distribution of dividend amounting to Rp 135.83 per share (full amount) for a total amount paid of Rp 805,678.

22. KEPENTINGAN NONPENGENDALI 22. NON-CONTROLLING INTERESTS Kepentingan nonpengendali pada 31 Desember 2019 dan 2018 adalah sebagai berikut:

Non-controlling interests as at 31 December 2019 and 2018 are as follows:

Berikut ini adalah ringkasan informasi keuangan entitas anak yang memiliki kepentingan nonpengendali yang material terhadap Grup.

Set out below is the summarised financial information of subsidiaries that have non-controlling interests that are material to the Group.

2019 2018

Thang Long Cement Joint Stock Company 649.316 696.101 Thang Long Cement Joint Stock CompanyPT Semen Indonesia Industri PT Semen Indonesia Industri

Bangunan 253.149 - BangunanPT Semen Indonesia Aceh 212.607 235.518 PT Semen Indonesia AcehPT Kawasan Industri Gresik 116.178 106.924 PT Kawasan Industri GresikPT Semen Indonesia Logistik 185.701 186.408 PT Semen Indonesia LogistikPT Industri Kemasan Semen Gresik 97.680 96.808 PT Industri Kemasan Semen GresikPT United Tractors Semen Gresik 86.839 87.357 PT United Tractors Semen GresikPT Bima Sepaja Abadi 12.708 12.798 PT Bima Sepaja AbadiPT Semen Kupang Indonesia 988 960 PT Semen Kupang IndonesiaPT Semen Gresik 607 515 PT Semen GresikPT Semen Indonesia Beton 12 25 PT Semen Indonesia BetonPT Sinergi Mitra Investama (676) (184) PT Sinergi Mitra Investama

Jumlah 1.615.109 1.423.230 Total

349










Ringkasan laporan posisi keuangan pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

Summarised statements of financial position as at 31 December 2019 and 2018 is as follows:





Aset lancar 3.207.285 290.912 1.174.048 234.675 1.252.825 Current assets

Aset tidak lancar 29.264.362 1.921.110 1.069.340 2.245.839 1.181.204 Non-current assets

Jumlah Aset 32.471.647 2.212.022 2.243.388 2.480.514 2.434.029 Total Assets

Liabilitas jangka pendek 2.963.920 546.019 1.172.781 745.236 1.514.500 Current liabilities

Liabilitas jangka panjang 25.259.821 294.822 461.196 293.138 309.947 Non-current liabilities

Ekuitas yang dapat diatribusikan Equity attributable to owners

kepada pemilik entitas induk 3.928.411 1.370.891 605.651 1.441.840 608.866 of the parent

Kepentingan nonpengendali 319.495 290 3.760 300 717 Non-controlling interests

Jumlah Liabilitas dan Ekuitas 32.471.647 2.212.022 2.243.388 2.480.514 2.434.029 Total Liabilities and Equity

20182019

Ringkasan laporan laba rugi dan penghasilan komprehensif lain untuk tahun yang berakhir pada 31 Desember 2019 dan 2018 adalah sebagai berikut:

Summarised statements of profit or loss and other comprehensive income for the year ended 31 December 2019 and 2018 are as follows:





Pendapatan 10.214.306 1.291.058 4.841.177 1.518.384 4.922.079 Revenue

Beban (11.071.111) (1.305.747) (4.815.361) (1.493.406) (4.890.876) Expenses


Penghasilan/(rugi) komprehensif lain 67.212 (55.973) 1.362 (178.557) 1.427 Other comprehensive income/(loss)

Jumlah laba/(rugi) komprehensif lain Total other comprehensive income/

tahun berjalan (789.593) (70.662) 27.178 (153.579) 32.630 (loss) for the year

Laba/(rugi) yang dapat diatribusikankepada: Profit/(loss) attributable to:


Kepentingan nonpengendali 11.206 1 1.806 (12) 751 Non-controlling interests


Jumlah penghasilan komprehensif lain Total other comprehensive income

yang dapat distribusikan kepada attributable to


Kepentingan nonpengendali 12.341 (16.791) 1.806 (11) 755 Non-controlling interests

Jumlah penghasilan komprehensif Total other comprehensive income

lain tahun berjalan (789.593) (70.662) 27.178 24.978 32.630 for the year

20182019

350









24. BEBAN POKOK PENDAPATAN 24. COST OF REVENUE

2019 2018

Pemakaian bahan baku 1.874.416 1.876.244 Raw materials usedTenaga kerja 2.253.967 1.223.049 LaborBeban pabrikasi: Manufacturing overhead:

- Bahan bakar dan energi 8.995.635 7.348.735 Fuel and energy - - Penyusutan dan amortisasi 1.955.818 1.523.467 Depreciation and amortisation - - Lain-lain 12.711.422 9.003.116 Others -

Jumlah beban produksi 27.791.258 20.974.611 Total manufacturing costs

Persediaan barang dalam proses Work-in-progress inventoriesPada awal tahun 689.587 867.063 At the beginning of the yearPembelian 41.726 88.464 PurchasesPada akhir tahun (693.291) (689.587) At the end of the year

Harga pokok produksi 27.829.280 21.240.551 Cost of goods manufactured

Persediaan barang jadi Finished goods inventoryPada awal tahun 595.570 682.574 At the beginning of the yearPembelian 5.320 30.920 PurchasesPada akhir tahun (776.046) (596.949) At the end of the year

27.654.124 21.357.096

Tidak ada pembelian dari satu pemasok yang melebihi 10% dari jumlah pendapatan.

There were no purchases from any suppliers representing more than 10% of total revenue.



25. BEBAN BERDASARKAN SIFAT 25. EXPENSES BY NATURE

2019 2018

Beban penjualan 3.084.107 2.237.003 Selling expensesBeban umum dan administrasi 3.536.797 2.320.262 General and administration expenses

Jumlah 6.620.904 4.557.265 Total

a. Beban penjualan a. Selling expenses

2019 2018

Ongkos angkut dan bongkar 2.387.011 1.769.245 Transportation and handlingGaji, upah dan manfaat 338.751 216.232 Salaries, wages and benefitsPromosi 191.043 153.686 PromotionPenelitian, pengembangan Research, development and

jasa profesional 27.369 7.126 professional feesPerjalanan dinas 25.439 22.194 Business tripsPemeliharaan 16.375 11.241 MaintenancePenyusutan dan amortisasi 10.754 10.250 Depreciation and amortisationLain-lain 87.365 47.027 Others

3.084.107 2.237.003








Ringkasan laporan arus kas pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

Summarised statements of cash flows as at 31 December 2019 and 2018 is as follows:





Arus kas bersih yang diperoleh dari Net cash flows generated from

aktivitas operasi 290.817 50.515 91.893 294.230 118.210 operating activities

Arus kas bersih yang

digunakan untuk Net cash flows used in

aktivitas investasi (15.662.045) (999) (7.855) (1.059) (50.830) investing activities

Arus kas bersih yang Net cash flows

diperoleh dari/(digunakan) generated from/(used) in

untuk aktifitas pendanaan 15.756.411 (94.165) (58.206) (268.718) (40.009) financing activities

Kenaikan bersih Net increase in

kas dan setara kas 385.183 (44.649) 25.832 24.453 27.371 cash and cash equivalents

Kas dan setara kas pada Cash and cash equivalents

awal tahun 921 74.197 89.140 49.744 61.769 at the beginning of the year

Dampak perubahan Effect of exchange rate

selisih kurs terhadap changes on cash and

kas dan setara kas 988 1.481 (51) - - cash equivalents

Kas dan setara kas pada Cash and cash equivalents

akhir tahun 387.092 31.029 114.921 74.197 89.140 at the end of the year

20182019

23. PENDAPATAN 23. REVENUE

2019 2018Semen 33.143.056 25.721.698 CementBeton jadi dan siap pakai 3.121.398 2.246.416 Precast and readymix concreteTerak 3.081.458 2.006.908 ClinkerGipsum 228.335 73.679 GypsumKantong semen 66.567 92.876 Cement bagsPersewaan tanah 39.814 33.597 Land rentalTanah kawasan industri 24.480 12.375 Industrial real estate landJasa penambangan 22.689 111.114 Mining servicesLain-lain 640.310 388.963 Others

40.368.107 30.687.626

Pihak berelasi (2.621.242) (2.811.344) Related parties

Pihak ketiga 37.746.865 27.876.282 Third parties

Tidak ada penjualan kepada satu pelanggan yang melebihi 10% dari jumlah pendapatan.

There were no sales to any party representing more than 10% of total revenue.



351









24. BEBAN POKOK PENDAPATAN 24. COST OF REVENUE

2019 2018

Pemakaian bahan baku 1.874.416 1.876.244 Raw materials usedTenaga kerja 2.253.967 1.223.049 LaborBeban pabrikasi: Manufacturing overhead:

- Bahan bakar dan energi 8.995.635 7.348.735 Fuel and energy - - Penyusutan dan amortisasi 1.955.818 1.523.467 Depreciation and amortisation - - Lain-lain 12.711.422 9.003.116 Others -

Jumlah beban produksi 27.791.258 20.974.611 Total manufacturing costs

Persediaan barang dalam proses Work-in-progress inventoriesPada awal tahun 689.587 867.063 At the beginning of the yearPembelian 41.726 88.464 PurchasesPada akhir tahun (693.291) (689.587) At the end of the year

Harga pokok produksi 27.829.280 21.240.551 Cost of goods manufactured

Persediaan barang jadi Finished goods inventoryPada awal tahun 595.570 682.574 At the beginning of the yearPembelian 5.320 30.920 PurchasesPada akhir tahun (776.046) (596.949) At the end of the year

27.654.124 21.357.096

Tidak ada pembelian dari satu pemasok yang melebihi 10% dari jumlah pendapatan.

There were no purchases from any suppliers representing more than 10% of total revenue.



25. BEBAN BERDASARKAN SIFAT 25. EXPENSES BY NATURE

2019 2018

Beban penjualan 3.084.107 2.237.003 Selling expensesBeban umum dan administrasi 3.536.797 2.320.262 General and administration expenses

Jumlah 6.620.904 4.557.265 Total

a. Beban penjualan a. Selling expenses

2019 2018

Ongkos angkut dan bongkar 2.387.011 1.769.245 Transportation and handlingGaji, upah dan manfaat 338.751 216.232 Salaries, wages and benefitsPromosi 191.043 153.686 PromotionPenelitian, pengembangan Research, development and

jasa profesional 27.369 7.126 professional feesPerjalanan dinas 25.439 22.194 Business tripsPemeliharaan 16.375 11.241 MaintenancePenyusutan dan amortisasi 10.754 10.250 Depreciation and amortisationLain-lain 87.365 47.027 Others

3.084.107 2.237.003

352









28. LABA PER SAHAM 28. EARNINGS PER SHARE

2019 2018Laba tahun berjalan yang

diatribusikan kepada Profit for the year attributablepemilik entitas induk 2.392.151 3.079.115 to owners of the parent entity

Total rata-rata tertimbang Weighted average number ofsaham yang beredar (lembar saham) 5.931.520.000 5.931.520.000 shares outstanding (shares)

Laba per saham dasar Basic earnings per share(nilai penuh) 403 519 (full amount)

Perusahaan tidak memiliki saham biasa yang berpotensi dilutif. Dengan demikian, laba per saham dilusian setara dengan laba per saham dasar.

The Company has no potential dilutive ordinary shares. Therefore, the diluted earnings per share is equivalent to the basic earnings per share.

29. LIABILITAS IMBALAN KERJA 29. EMPLOYEE BENEFITS LIABILITIES

Estimasi liabilitas imbalan kerja tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

The estimated employee benefits liabilities as at 31 December 2019 and 2018 are as follows:

a. Liabilitas imbalan kerja jangka pendek a. Short-term employee benefits liabilities

2019 2018

Productivity allowances,Tunjangan produktivitas, uang jasa, incentives, and Directors'

bonus Direktur dan Komisaris 712.271 299.617 and Commissioners' bonusesTunjangan pegawai lainnya 22.795 92.956 Other employee allowances

Jumlah 735.066 392.573 Total

b. Liabilitas imbalan kerja jangka panjang b. Long-term employee benefits liabilities

2019 2018

Liabilitas imbalan pensiun 649.114 530.717 Pension benefits obligationsOther post employment benefits

Liabilitas imbalan pasca kerja lainnya 1.054.401 510.923 liabilitiesLiabilitas imbalan kerja jangka panjang Other long-term employee benefits

lainnya 532.440 391.619 liabilities

Jumlah 2.235.955 1.433.259 Total

Asumsi aktuarial utama yang digunakan adalah sebagai berikut:

The principal actuarial assumptions used were as follows:

2019 2018

Tingkat kenaikan gaji: Salary increase:Program pensiun 7,5% per tahun/per annum 7,5% per tahun/per annum Pension planImbalan kerja lainnya 10% per tahun/per annum 10% per tahun/per annum Other employee benefits

Tingkat diskonto 7,47% - 8,5% per tahun/per annum 8,14% - 9,59% per tahun/per annum Discount rate







25. BEBAN BERDASARKAN SIFAT (lanjutan) 25. EXPENSES BY NATURE (continued)

b. Beban umum dan administrasi b. General and administration expenses

2019 2018Salaries, wages, employee

Gaji, upah, kesejahteraan karyawan welfare and Director's anddan bonus Direksi dan Komisaris 1.573.459 1.102.853 Commissioners' bonuses

Penyusutan dan amortisasi 546.996 162.349 Depreciation and amortisationKeperluan kantor 296.311 114.359 Office suppliesPajak, asuransi, dan sewa 228.529 136.698 Taxes, insurance and rentals

Impairment loss of trade receivablePenurunan nilai piutang dan lain-lain 205.478 43.426 and other receivableJasa profesional 198.766 264.466 Professional feesPemeliharaan 157.828 160.724 MaintenancePemakaian bahan, listrik, air dan Supplies, electricity, water and

telepon 41.445 59.255 telephonePerjalanan dinas 40.112 73.440 Business tripsPromosi dan jamuan 53.299 51.049 Promotion and entertainmentPendidikan, latihan dan Education, training and

pengembangan 30.129 32.477 developmentLain-lain 164.445 119.166 Others

3.536.797 2.320.262

26. BEBAN KEUANGAN 26. FINANCE COSTS

2019 2018Pinjaman bank 2.173.983 338.114 Bank loansPinjaman jangka pendek 522.769 225.801 Short-term borrowingsObligasi 475.150 259.197 BondsLiabilitas sewa pembiayaan 7.679 107.565 Financial lease liabilitiesLain-lain 25.717 28.582 Others

3.205.298 959.259

27. PENGHASILAN OPERASI LAINNYA - BERSIH 27. OTHER OPERATING INCOME - NET

2019 2018Sewa 61.087 39.115 RentalPenghasilan penanganan limbah 23.845 26.288 Income from waste treatmentPenjualan barang usang 6.269 3.854 Sales of scrap materialsKlaim dan denda 3.333 9.022 Claims and penaltiesPenurunan nilai goodwill - (60.000) Impairment of goodwill(Kerugian)/keuntungan penjualan (Loss)/gain on sale of

aset tetap (5.763) 3.180 fixed assets(Kerugian)/keuntungan selisih kurs (13.078) 30.761 Foreign exchange (loss)/gainLain-lain, bersih 16.271 55.154 Others, net

Jumlah 91.964 107.374 Total

353









28. LABA PER SAHAM 28. EARNINGS PER SHARE

2019 2018Laba tahun berjalan yang

diatribusikan kepada Profit for the year attributablepemilik entitas induk 2.392.151 3.079.115 to owners of the parent entity

Total rata-rata tertimbang Weighted average number ofsaham yang beredar (lembar saham) 5.931.520.000 5.931.520.000 shares outstanding (shares)

Laba per saham dasar Basic earnings per share(nilai penuh) 403 519 (full amount)

Perusahaan tidak memiliki saham biasa yang berpotensi dilutif. Dengan demikian, laba per saham dilusian setara dengan laba per saham dasar.

The Company has no potential dilutive ordinary shares. Therefore, the diluted earnings per share is equivalent to the basic earnings per share.

29. LIABILITAS IMBALAN KERJA 29. EMPLOYEE BENEFITS LIABILITIES

Estimasi liabilitas imbalan kerja tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

The estimated employee benefits liabilities as at 31 December 2019 and 2018 are as follows:

a. Liabilitas imbalan kerja jangka pendek a. Short-term employee benefits liabilities

2019 2018

Productivity allowances,Tunjangan produktivitas, uang jasa, incentives, and Directors'

bonus Direktur dan Komisaris 712.271 299.617 and Commissioners' bonusesTunjangan pegawai lainnya 22.795 92.956 Other employee allowances

Jumlah 735.066 392.573 Total

b. Liabilitas imbalan kerja jangka panjang b. Long-term employee benefits liabilities

2019 2018

Liabilitas imbalan pensiun 649.114 530.717 Pension benefits obligationsOther post employment benefits

Liabilitas imbalan pasca kerja lainnya 1.054.401 510.923 liabilitiesLiabilitas imbalan kerja jangka panjang Other long-term employee benefits


Jumlah 2.235.955 1.433.259 Total

Asumsi aktuarial utama yang digunakan adalah sebagai berikut:

The principal actuarial assumptions used were as follows:

2019 2018

Tingkat kenaikan gaji: Salary increase:Program pensiun 7,5% per tahun/per annum 7,5% per tahun/per annum Pension planImbalan kerja lainnya 10% per tahun/per annum 10% per tahun/per annum Other employee benefits

Tingkat diskonto 7,47% - 8,5% per tahun/per annum 8,14% - 9,59% per tahun/per annum Discount rate

354









29. LIABILITAS IMBALAN KERJA (lanjutan) 29. EMPLOYEE BENEFITS LIABILITIES (continued)

b. Liabilitas imbalan kerja jangka Panjang (lanjutan)

b. Long-term employee benefits liabilities (continued)

Beban imbalan kerja yang dibebankan pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian merupakan jumlah neto dari:

Amounts recognised in the consolidated statement of profit or loss and other comprehensive income consists of the net total of the following amounts:

Pasca Imbalan kerjakerja lainnya/ jangka panjangOther post lainnya/Other

Dana pensiun/ employment long-term employee Jumlah/Pension fund benefit benefit Total

Biaya jasa kini 87.578 40.826 102.366 230.770 Current service costBiaya jasa lalu 3.261 (42.170) 26.543 (12.366) Past service costBeban bunga besih 23.397 81.932 32.858 138.187 Net interest expensePengukuran kembali liabilitas Remeasurement on the net

imbalan pasti - neto: defined benefit liability:

Perubahan asumsi keuangan - - 28.726 28.726 Changes in financial assumptions

Penyesuaian atas pengalaman - - (3.500) (3.500) Experience adjustmentKomponen dari biaya imbalan pasti Components of defined benefit costs

yang diakui dalam laba rugi 114.236 80.588 161.767 356.591 recognized in profit or loss

Pengukuran kembali liabilitas Remeasurement on the netimbalan pasti - bersih: defined benefit liability:

Perubahan dampak batas atas aset, Change in the effect of the asset ceiling,tidak termasuk bunga bersih 161.100 - - 161.100 excluding amount of net interest expense

Perubahan asumsi keuangan 176.582 6.699 - 183.281 Changes in financial assumptionsPenyesuaian atas pengalaman (53.688) (92.801) - (146.489) Experience adjustmentImbal hasil aset program (tidak

termasuk jumlah yang dimasukkan Return on plan assets (excluding amountsdalam beban bunga bersih) (205.415) - - (205.415) included in net interest expense)

Komponen beban imbalan pasti Components of defined benefit costsyang diakui dalam penghasilan recognised in other comprehensivekomprehensif lain 78.579 (86.102) - 7.523 income



Biaya jasa kini 52.302 15.507 65.236 133.045 Current service costBiaya jasa lalu 6.076 - - 6.076 Past service costBeban bunga neto 58.576 43.314 30.059 131.949 Net interest expensePengukuran kembali liabilitas Remeasurement of the net liabilities

imbalan jangka panjang lainnya - - (9.359) (9.359) of other long-term benefitsKeuntungan dari penyelesaian - - 8.094 8.094 Gains from settlements

Komponen dari biaya imbalan pasti Components of defined benefit costsyang diakui dalam laba rugi 116.954 58.821 94.030 269.805 recognized in profit or loss

Pengukuran kembali liabilitas Remeasurement on the netimbalan pasti - neto: defined benefit liability:

Perubahan dampak batas atas aset, Change in the effect of the asset ceiling,tidak termasuk bunga neto 61.781 - - 61.781 excluding amount of net interest expense

Perubahan asumsi keuangan (452.405) (59.252) (52.517) (564.174) Changes in financial assumptionsPenyesuaian atas pengalaman 1.324 (16.070) (7.930) (22.676) Experience adjustmentImbal hasil aset program (tidak

termasuk jumlah yang dimasukkan Return on plan assets (excluding amountsdalam beban bunga neto) 111.956 - - 111.956 included in net interest expense)

Komponen beban imbalan pasti Components of defined benefit costsyang diakui dalam penghasilan recognised in other comprehensivekomprehensif lain (277.344) (75.322) (60.447) (413.113) income

2019

2018










Liabilitas bersih imbalan pensiun yang diakui di laporan posisi keuangan konsolidasian adalah sebagai berikut:

The net liability for pension benefits recognised in the consolidated statements of financial position is as follows:

2019 2018

Nilai kini kewajiban Present value of defined imbalan pasti 3.273.530 2.625.876 benefits obligation

Nilai wajar aset program (2.624.416) (2.095.159) Fair value of plan assets

649.114 530.717

Other post employment benefitsLiabilitas imbalan pascakerja lainnya 1.054.401 510.923 liabilitiesLiabilitas imbalan kerja jangka panjang Other long-term employee benefits


1.586.841 902.542

2.235.955 1.433.259

Mutasi nilai kini liabilitas imbalan kerja adalah sebagai berikut:

Movements of the present value of employee benefits liabilities is as follows:



Saldo awal 2.625.876 510.923 391.619 3.528.418 Beginning balanceBiaya jasa kini 87.578 40.826 102.366 230.770 Current service costBiaya jasa lalu 3.261 (42.170) 26.543 (12.366) Past service costBiaya bunga 141.548 81.932 32.858 256.338 Interest costAkuisisi entitas anak 452.143 609.758 - 1.061.901 Acquisition of a subsidiaryPengukuran kembali liabilitas Remeasurement on the employee

imbalan kerja benefits liabilities- Perubahan asumsi keuangan 176.582 6.699 28.726 212.007 Change in financial assumption -- Penyesuaian atas pengalaman (53.688) (92.801) (3.500) (149.989) Experience adjustments -

Pembayaran manfaat (165.789) (60.766) (46.172) (272.727) Benefits paidKontribusi peserta 6.019 - - 6.019 Participant contributions

Saldo akhir 3.273.530 1.054.401 532.440 4.860.371 Ending balance

2019



Saldo awal 2.953.589 553.298 414.349 3.921.236 Beginning balanceBiaya jasa kini 52.302 15.507 65.236 133.045 Current service costBiaya jasa lalu 6.076 - - 6.076 Past service costBiaya bunga 203.293 43.314 30.059 276.666 Interest costKeuntungan aktuaria yang timbul Actuarial gains arising from

dari liabilitas lain-lain - - 5.533 5.533 other long-termbenefitsKeuntungan dari kurtailmen - - 8.094 8.094 Gains from settlementsPengukuran kembali liabilitas Remeasurement on the employee

imbalan kerja benefits liabilities- Perubahan asumsi keuangan (452.405) (59.252) (52.517) (564.174) Change in financial assumption -- Penyesuaian atas pengalaman 1.324 (16.070) (7.930) (22.676) Experience adjustments -

Pembayaran manfaat (144.223) (25.874) (71.205) (241.302) Benefits paidKontribusi peserta 5.920 - - 5.920 Participant contributions

Saldo akhir 2.625.876 510.923 391.619 3.528.418 Ending balance

2018

355












Beban imbalan kerja yang dibebankan pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian merupakan jumlah neto dari:

Amounts recognised in the consolidated statement of profit or loss and other comprehensive income consists of the net total of the following amounts:



Biaya jasa kini 87.578 40.826 102.366 230.770 Current service costBiaya jasa lalu 3.261 (42.170) 26.543 (12.366) Past service costBeban bunga besih 23.397 81.932 32.858 138.187 Net interest expensePengukuran kembali liabilitas Remeasurement on the net

imbalan pasti - neto: defined benefit liability:

Perubahan asumsi keuangan - - 28.726 28.726 Changes in financial assumptions

Penyesuaian atas pengalaman - - (3.500) (3.500) Experience adjustmentKomponen dari biaya imbalan pasti Components of defined benefit costs

yang diakui dalam laba rugi 114.236 80.588 161.767 356.591 recognized in profit or loss

Pengukuran kembali liabilitas Remeasurement on the netimbalan pasti - bersih: defined benefit liability:

Perubahan dampak batas atas aset, Change in the effect of the asset ceiling,tidak termasuk bunga bersih 161.100 - - 161.100 excluding amount of net interest expense

Perubahan asumsi keuangan 176.582 6.699 - 183.281 Changes in financial assumptionsPenyesuaian atas pengalaman (53.688) (92.801) - (146.489) Experience adjustmentImbal hasil aset program (tidak

termasuk jumlah yang dimasukkan Return on plan assets (excluding amountsdalam beban bunga bersih) (205.415) - - (205.415) included in net interest expense)

Komponen beban imbalan pasti Components of defined benefit costsyang diakui dalam penghasilan recognised in other comprehensivekomprehensif lain 78.579 (86.102) - 7.523 income



Biaya jasa kini 52.302 15.507 65.236 133.045 Current service costBiaya jasa lalu 6.076 - - 6.076 Past service costBeban bunga neto 58.576 43.314 30.059 131.949 Net interest expensePengukuran kembali liabilitas Remeasurement of the net liabilities

imbalan jangka panjang lainnya - - (9.359) (9.359) of other long-term benefitsKeuntungan dari penyelesaian - - 8.094 8.094 Gains from settlements

Komponen dari biaya imbalan pasti Components of defined benefit costsyang diakui dalam laba rugi 116.954 58.821 94.030 269.805 recognized in profit or loss

Pengukuran kembali liabilitas Remeasurement on the netimbalan pasti - neto: defined benefit liability:

Perubahan dampak batas atas aset, Change in the effect of the asset ceiling,tidak termasuk bunga neto 61.781 - - 61.781 excluding amount of net interest expense

Perubahan asumsi keuangan (452.405) (59.252) (52.517) (564.174) Changes in financial assumptionsPenyesuaian atas pengalaman 1.324 (16.070) (7.930) (22.676) Experience adjustmentImbal hasil aset program (tidak

termasuk jumlah yang dimasukkan Return on plan assets (excluding amountsdalam beban bunga neto) 111.956 - - 111.956 included in net interest expense)

Komponen beban imbalan pasti Components of defined benefit costsyang diakui dalam penghasilan recognised in other comprehensivekomprehensif lain (277.344) (75.322) (60.447) (413.113) income

2019

2018

356












Analisa sensitivitas didasarkan pada perubahan atas satu asumsi aktuarial dimana asumsi lainnya dianggap konstan. Dalam prakteknya, hal ini jarang terjadi dan perubahan beberapa asumsi mungkin saling berkorelasi. Analisa sensitivitas tersebut dihitung menggunakan metode yang sama (projected unit credit).

The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The sensitivity analyses are calculated using the same method (projected unit credit).

Melalui program imbalan pasti, Grup menghadapi sejumlah risiko signifikan sebagai berikut:

Through its defined benefit pension plans, the Group is exposed to a number of significant risks of which are detailed below:

- Perubahan imbal hasil obligasi

Liabilitas imbalan kerja yang dihitung berdasarkan PSAK No. 24 menggunakan tingkat diskonto obligasi. Jika tingkat diskonto tersebut turun, maka kewajiban imbalan pasti akan cenderung mengalami kenaikan.

- Changes in bond yields The employee benefit obligations calculated under SFAS No. 24 use a discount rate on bond yields. If bond yields decrease, the defined benefit will tend to increase.

- Tingkat kenaikan gaji

Liabilitas imbalan kerja Grup berhubungan dengan tingkat kenaikan gaji. Semakin tinggi tingkat kenaikan gaji akan menyebabkan semakin besarnya jumlah liabilitas.

- Salary growth rate The Group’s employee benefits obligations are linked to salary growth rate. Higher salary growth rate will lead to higher liabilities.

- Volatilitas aset

Liabilitas program dihitung menggunakan tingkat diskonto yang merujuk kepada tingkat imbal hasil obligasi pemerintah/perusahaan. Jika imbal hasil aset program lebih rendah, maka akan menghasilkan defisit program.

- Asset volatility The employee benefit obligations are calculated using a discount rate referred to government/corporate bond yields. If plan assets underperform this yield, this will create a plan deficit.

Durasi rata-rata dari kewajiban imbalan pada tanggal 31 Desember 2019 adalah 8 tahun untuk program dana pensiun dan 15 tahun untuk program manfaat lainnya (2018: 13 tahun dan 15 tahun).

The average duration of the benefit obligation at 31 December 2019 is 8 years for pension benefits and 15 years for other employee benefits (2018: 13 years and 15 years).

Pada tanggal 31 Desember 2019, Grup diharapkan membayar iuran sebesar Rp 249.040 untuk program manfaat pasti selama tahun anggaran berikutnya.

As at 31 December 2019, the Group expected to make a contribution amounting to Rp 249,040 to the defined benefit plans during the next financial year.










Perubahan dalam nilai wajar aset program adalah sebagai berikut:

Changes in the fair value of plan assets are as follows:

2019 2018

Saldo awal 2.095.159 2.143.356 Beginning balanceAkuisisi entitas anak 469.357 - Acquisition of subsidiariesPendapatan bunga 118.151 159.608 Interest incomeKontribusi pemberi kerja 90.647 109.017 Employer contributionsKontribusi peserta 5.995 7.868 Participant contributionsPembayaran manfaat (160.308) (140.136) Benefits paidPengukuran kembali atas Remeasurement on the net

nilai wajar neto aset program: fair value of plan assets:Imbal hasil atas aset program 205.415 (111.956) Return on plan assets

Penyesuaian atas aset program (200.000) (72.598) Adjustment for asset program

Saldo akhir 2.624.416 2.095.159 Ending balance

Aset program terdiri dari: Plan assets comprise the following:

2019 2018

Surat Berharga Negara 32% 32% Government BondsKas dan deposito 11% 9% Cash and time depositSaham 10% 10% StocksObligasi 14% 16% BondsReksadana 8% 8% Mutual fundsTanah dan bangunan 12% 12% Land and buildingsPenempatan langsung 13% 13% Direct placement

Jumlah 100% 100% Total

Sensitivitas dari kewajiban imbalan pasti terhadap perubahan asumsi aktuarial utama adalah sebagai berikut:

The sensitivity of the defined benefit obligation to changes in the principal actuarial assumptions is as follows:

Perubahan Kenaikan Penurunanasumsi/ asumsi/ asumsi/

Change in Increase in Decrease inassumption assumption assumption

Penurunan sebesar/ Kenaikan sebesar/Tingkat diskonto 1,0% Decrease by Rp 4.491.180 Increase by Rp 5.449.051 Discount rateKenaikan gaji Kenaikan sebesar/ Penurunan sebesar/ Future salary

masa datang 1,0% Increase by Rp 5.130.076 Decrease by Rp 4.748.634 increment

Dampak atas kewajiban imbalan pasti/Impact on defined benefit obligation

2019

357












Analisa sensitivitas didasarkan pada perubahan atas satu asumsi aktuarial dimana asumsi lainnya dianggap konstan. Dalam prakteknya, hal ini jarang terjadi dan perubahan beberapa asumsi mungkin saling berkorelasi. Analisa sensitivitas tersebut dihitung menggunakan metode yang sama (projected unit credit).

The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The sensitivity analyses are calculated using the same method (projected unit credit).

Melalui program imbalan pasti, Grup menghadapi sejumlah risiko signifikan sebagai berikut:

Through its defined benefit pension plans, the Group is exposed to a number of significant risks of which are detailed below:

- Perubahan imbal hasil obligasi

Liabilitas imbalan kerja yang dihitung berdasarkan PSAK No. 24 menggunakan tingkat diskonto obligasi. Jika tingkat diskonto tersebut turun, maka kewajiban imbalan pasti akan cenderung mengalami kenaikan.

- Changes in bond yields The employee benefit obligations calculated under SFAS No. 24 use a discount rate on bond yields. If bond yields decrease, the defined benefit will tend to increase.

- Tingkat kenaikan gaji

Liabilitas imbalan kerja Grup berhubungan dengan tingkat kenaikan gaji. Semakin tinggi tingkat kenaikan gaji akan menyebabkan semakin besarnya jumlah liabilitas.

- Salary growth rate The Group’s employee benefits obligations are linked to salary growth rate. Higher salary growth rate will lead to higher liabilities.

- Volatilitas aset

Liabilitas program dihitung menggunakan tingkat diskonto yang merujuk kepada tingkat imbal hasil obligasi pemerintah/perusahaan. Jika imbal hasil aset program lebih rendah, maka akan menghasilkan defisit program.

- Asset volatility The employee benefit obligations are calculated using a discount rate referred to government/corporate bond yields. If plan assets underperform this yield, this will create a plan deficit.

Durasi rata-rata dari kewajiban imbalan pada tanggal 31 Desember 2019 adalah 8 tahun untuk program dana pensiun dan 15 tahun untuk program manfaat lainnya (2018: 13 tahun dan 15 tahun).

The average duration of the benefit obligation at 31 December 2019 is 8 years for pension benefits and 15 years for other employee benefits (2018: 13 years and 15 years).

Pada tanggal 31 Desember 2019, Grup diharapkan membayar iuran sebesar Rp 249.040 untuk program manfaat pasti selama tahun anggaran berikutnya.

As at 31 December 2019, the Group expected to make a contribution amounting to Rp 249,040 to the defined benefit plans during the next financial year.

358









30. SIFAT DAN TRANSAKSI PIHAK BERELASI

(lanjutan) 30. NATURE OF RELATIONSHIP AND

TRANSACTIONS WITH RELATED PARTIES (continued)

Sifat Hubungan dengan Pihak Berelasi (lanjutan)

Nature of Relationships with Related Parties (continued)

Sifat Hubungan/Relationship Pihak berelasi/Related parties • Entitas asosiasi/Associates - PT Swadaya Graha - PT Igasar • Entitas ventura bersama/Joint venture - PT Krakatau Semen Indonesia • Entitas dimana Perseroan memiliki pengaruh - Koperasi Warga Semen Gresik signifikan secara tidak langsung/ - PT Konsulta Semen Gresik Entities which the Company has indirect - PT Swabina Gatra significant influence • Entitas dimana entitas anak memiliki pengaruh - Koperasi Karyawan Warga Varia Usaha Beton signikan secara tidak langsung/ - Koperasi Karyawan Semen Padang Entities which subsidiaries have indirect - Koperasi Karyawan Semen Tonasa significant influence - Koperasi Karyawan Usaha Sejahtera Bersama - Semen Indonesia Foundation - PT EMKL Topabiring - PT Kabau Sirah Semen Padang - PT Pasoka Sumber Karya - PT PBM Biringkasi Raya - PT Pelayaran Tonasa Lines - PT Prima Karya Manunggal - PT Sumatera Utara Perkasa Semen - PT Yasiga Sarana Utama • Entitas adalah suatu program imbalan pasca - Dana Pensiun Semen Gresik kerja untuk imbalan kerja dari Perseroan - Dana Pensiun Semen Padang atau entitas anak/ Entities is a post-employment benefit plan for the benefit of employees of the Company or subsidiaries • Personil manajemen kunci/ Dewan Komisaris dan Direksi Perseroan dan entitas anak/

Key management personnel Board of Commissioner and Directors of the Company and subsidiaries







30. SIFAT DAN TRANSAKSI PIHAK BERELASI 30. NATURE OF RELATIONSHIP AND

TRANSACTIONS WITH RELATED PARTIES Sifat Hubungan dengan Pihak Berelasi Nature of Relationships with Related Parties Sifat Hubungan/Relationship Pihak berelasi/Related parties • Pemegang saham utama/Majority shareholder - Pemerintah Republik Indonesia/ Government of Republic of Indonesia • Entitas sepengendali: - PT Askes (Persero) Badan Usaha Milik Negara (BUMN)/ - PT Adhi Karya (Persero) Tbk Entities under common control: - PT Adhi Persada Beton State-owned Enterprise (SOE) - PT Adhi Persada Gedung - PT Asuransi Jasa Indonesia (Persero) - PT Asuransi Jiwa Inhealth Indonesia

- PT Bank Mandiri (Persero) Tbk - PT Bank Negara Indonesia (Persero) Tbk - PT Bank Rakyat Indonesia (Persero) Tbk - PT Bank Syariah Mandiri - PT Bank Tabungan Negara (Persero) Tbk - PT Brantas Abipraya (Persero)

- PT Pembangunan Perumahan Presisi Tbk - PT Pertamina Hulu Mahakam - PT Dahana (Persero) - PT Hakaaston

- PT Hutama Karya (Persero) - PT Jamsostek (Persero) - PT Kereta Api Indonesia (Persero) - PT Krakatau Daya Listrik - PT Krakatau Steel (Persero) Tbk - PT Nindya Karya (Persero) - PT Pelabuhan Indonesia II (Persero) - PT PP (Persero) Tbk - PT Pertamina (Persero) - PT Perusahaan Listrik Negara (Persero) - PT Perusahaan Perdagangan Indonesia (Persero) - PT Petrokimia Gresik (Persero) - PT Pindad (Persero)

- PT PP Urban - PT Wijaya Karya Beton Tbk - PT Wijaya Karya Bangunan Gedung Tbk - PT Semen Baturaja (Persero) Tbk

- PT Sucofindo (Persero) - PT Telekomunikasi Indonesia (Persero) Tbk - PT Telekomunikasi Seluler - PT Varuna Tirta Prakasya (Persero) - PT Waskita Beton Precast Tbk - PT Waskita Karya (Persero) Tbk - PT Wijaya Karya (Persero) Tbk - PT Wijaya Karya Realty Tbk

359












Sifat Hubungan dengan Pihak Berelasi (lanjutan)

Nature of Relationships with Related Parties (continued)

Sifat Hubungan/Relationship Pihak berelasi/Related parties • Entitas asosiasi/Associates - PT Swadaya Graha - PT Igasar • Entitas ventura bersama/Joint venture - PT Krakatau Semen Indonesia • Entitas dimana Perseroan memiliki pengaruh - Koperasi Warga Semen Gresik signifikan secara tidak langsung/ - PT Konsulta Semen Gresik Entities which the Company has indirect - PT Swabina Gatra significant influence • Entitas dimana entitas anak memiliki pengaruh - Koperasi Karyawan Warga Varia Usaha Beton signikan secara tidak langsung/ - Koperasi Karyawan Semen Padang Entities which subsidiaries have indirect - Koperasi Karyawan Semen Tonasa significant influence - Koperasi Karyawan Usaha Sejahtera Bersama - Semen Indonesia Foundation - PT EMKL Topabiring - PT Kabau Sirah Semen Padang - PT Pasoka Sumber Karya - PT PBM Biringkasi Raya - PT Pelayaran Tonasa Lines - PT Prima Karya Manunggal - PT Sumatera Utara Perkasa Semen - PT Yasiga Sarana Utama • Entitas adalah suatu program imbalan pasca - Dana Pensiun Semen Gresik kerja untuk imbalan kerja dari Perseroan - Dana Pensiun Semen Padang atau entitas anak/ Entities is a post-employment benefit plan for the benefit of employees of the Company or subsidiaries • Personil manajemen kunci/ Dewan Komisaris dan Direksi Perseroan dan entitas anak/

Key management personnel Board of Commissioner and Directors of the Company and subsidiaries

360












a. Transaksi-transaksi Pihak Berelasi (lanjutan) a. Transactions with Related Parties

(continued)

2019 2018Pembelian produk dan jasa/Purchases of goods and services

PT Perusahaan Listrik Negara (Persero) 2.253.037 1.260.782 PT PBM Biringkasi Raya 480.482 115.093 PT EMKL Topabiring 453.460 103.245 PT Krakatau Semen Indonesia 321.259 93.458 PT Pelayaran Tonasa Lines 283.524 258.041 PT Swabina Gatra 253.542 239.684 Koperasi Warga Semen Gresik 200.355 297.891 PT Pertamina (Persero) 166.967 168.071 PT Pasoka Sumber Karya 138.021 139.766 Koperasi Karyawan Semen Tonasa 100.145 113.086 Koperasi Karyawan Semen Padang 81.770 86.694 PT Pelabuhan Indonesia II (Persero) 77.140 39.545 PT Swadaya Graha 60.471 246.878 PT Yasiga Sarana Utama 60.235 76.980 PT Asuransi Jasa Indonesia (Persero) 60.138 45.083 PT Prima Karya Manunggal 59.365 67.871 PT Petrokima Gresik (Persero) 57.039 44.919 Dana Pensiun Semen Padang 54.181 103.755 PT Jamsostek (Persero) 46.481 48.021 PT Kereta Api Indonesia (Persero) 45.281 59.774 Koperasi Karyawan Warga Varia Usaha Beton 35.923 37.992 PT Telekomunikasi Indonesia 33.648 2.554 PT Igasar 26.828 26.082 PT Dahana (Persero) 24.441 22.573 PT Sumatera Utara Perkasa Semen 21.566 29.768 PT Konsulta Semen Gresik 16.742 24.722 Dana Pensiun Semen Gresik 14.395 1.230.113 PT Varuna Tirta Prakasya (Persero) 12.044 11.120 PT Kabau Sirah Semen Padang 10.780 13.279 PT Sucofindo (Persero) 10.692 11.027 PT Asuransi Jiwa Inhealth Indonesia 7.041 24.121 PT Askes (Persero) 6.551 6.727 PT Telekomunikasi Seluler 3.122 34.823 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 57.526 203.809

5.534.192 5.287.347 Sebagai persentase terhadap jumlah beban/As a percentage of total expense 16,15% 20,40%










a. Transaksi-transaksi Pihak Berelasi a. Transactions with Related Parties

Rincian transaksi dengan pihak berelasi adalah sebagai berikut:

The details of transactions with related parties are as follows:

2019 2018Penjualan produk/Sales of goods

Koperasi Warga Semen Gresik 1.177.662 1.526.908 PT Wijaya Karya Beton Tbk 240.636 7.575 PT Prima Karya Manunggal 148.054 536 PT Adhi Karya (Persero) Tbk 147.533 239.966 PT Wijaya Karya (Persero) Tbk 113.448 97.231 PT PP (Persero) Tbk 110.099 168.210 PT Igasar 91.729 151.390 PT Pembangunan Perumahan Presisi Tbk 89.665 60.534 Koperasi Karyawan Semen Padang 82.814 76.655 PT Adhi Persada Beton 57.727 35.117 PT PP Urban 54.287 12.657 PT Waskita Karya (Persero) Tbk 47.400 110.184 PT Krakatau Semen Indonesia 47.109 48.810 PT Waskita Beton Precast Tbk 42.794 11.355 PT Brantas Abipraya (Persero) 32.766 22.620 PT Hutama Karya (Persero) 30.919 34.892 PT Semen Baturaja (Persero) Tbk 22.070 59.120 PT Hakaaston 21.320 12.655 PT Perusahaan Perdagangan Indonesia (Persero) 15.721 21.347 PT Swadaya Graha 14.483 14.820 PT Adhi Persada Gedung 9.586 1.785 PT Pasoka Sumber Karya 9.116 4.099 PT Wijaya Karya Bangunan Gedung Tbk 7.165 298 PT Wijaya Karya Realty Tbk 5.628 1.741 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 1.511 90.839

2.621.242 2.811.344 Sebagai persentase terhadap jumlah pendapatan/As a percentage of total revenue 6,49% 9,16%

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(continued)

2019 2018Pembelian produk dan jasa/Purchases of goods and services

PT Perusahaan Listrik Negara (Persero) 2.253.037 1.260.782 PT PBM Biringkasi Raya 480.482 115.093 PT EMKL Topabiring 453.460 103.245 PT Krakatau Semen Indonesia 321.259 93.458 PT Pelayaran Tonasa Lines 283.524 258.041 PT Swabina Gatra 253.542 239.684 Koperasi Warga Semen Gresik 200.355 297.891 PT Pertamina (Persero) 166.967 168.071 PT Pasoka Sumber Karya 138.021 139.766 Koperasi Karyawan Semen Tonasa 100.145 113.086 Koperasi Karyawan Semen Padang 81.770 86.694 PT Pelabuhan Indonesia II (Persero) 77.140 39.545 PT Swadaya Graha 60.471 246.878 PT Yasiga Sarana Utama 60.235 76.980 PT Asuransi Jasa Indonesia (Persero) 60.138 45.083 PT Prima Karya Manunggal 59.365 67.871 PT Petrokima Gresik (Persero) 57.039 44.919 Dana Pensiun Semen Padang 54.181 103.755 PT Jamsostek (Persero) 46.481 48.021 PT Kereta Api Indonesia (Persero) 45.281 59.774 Koperasi Karyawan Warga Varia Usaha Beton 35.923 37.992 PT Telekomunikasi Indonesia 33.648 2.554 PT Igasar 26.828 26.082 PT Dahana (Persero) 24.441 22.573 PT Sumatera Utara Perkasa Semen 21.566 29.768 PT Konsulta Semen Gresik 16.742 24.722 Dana Pensiun Semen Gresik 14.395 1.230.113 PT Varuna Tirta Prakasya (Persero) 12.044 11.120 PT Kabau Sirah Semen Padang 10.780 13.279 PT Sucofindo (Persero) 10.692 11.027 PT Asuransi Jiwa Inhealth Indonesia 7.041 24.121 PT Askes (Persero) 6.551 6.727 PT Telekomunikasi Seluler 3.122 34.823 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 57.526 203.809

5.534.192 5.287.347 Sebagai persentase terhadap jumlah beban/As a percentage of total expense 16,15% 20,40%

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b. Saldo dengan pihak berelasi (lanjutan) b. Balances with related parties (continued)

2019 2018

Investasi jangka pendek/Short-term invesmentsPT Bank Tabungan Negara (Persero) Tbk 45.001 - PT Swabina Gatra 6.190 6.190 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 2.263 2.263

53.454 8.453

Sebagai persentase terhadap jumlah aset/As a percentage of total assets 0,07% 0,02%

Piutang usaha /Trade receivablesKoperasi Warga Semen Gresik 252.910 299.766 PT PP (Persero) Tbk 188.147 154.071 PT Adhi Karya (Persero) Tbk 137.908 165.944 PT Wijaya Karya (Persero) Tbk 136.051 63.833 PT Prima Karya Manunggal 113.325 104.021 PT Wijaya Karya Beton Tbk 105.032 50.399 PT Pembangunan Perumahan Presisi Tbk 98.386 44.163 PT PP Urban 62.746 17.495 PT Adhi Persada Beton 60.914 36.202 PT Igasar 50.768 51.707 PT Hutama Karya (Persero) 32.467 38.848 PT Waskita Karya (Persero) Tbk 31.126 38.997 PT Hakaaston 28.597 13.744 PT Wijaya Karya Bangunan Gedung Tbk 25.790 400 PT Semen Baturaja (Persero) Tbk 17.912 27.300 PT Brantas Abipraya (Persero) 12.465 5.969 Koperasi Karyawan Semen Padang 11.899 11.901 PT Adhi Persada Gedung 10.895 2.210 PT Swadaya Graha 10.521 8.063 PT Nindya Karya (Persero) 8.945 16.357 PT Wijaya Karya Realty Tbk 7.780 1.934 PT Waskita Beton Precast Tbk 4.794 12.634 PT Krakatau Steel (Persero) Tbk 3.338 2.888 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 120.374 47.026

1.533.090 1.215.872 Sebagai persentase terhadap jumlah aset/As a percentage of total assets 1,92% 2,39%

0 0Piutang lain-lain/Other receivables

PT Pertamina Hulu Mahakam 26.697 - Yayasan Semen Padang 23.468 20.259 PT Asuransi Jasa Indonesia (Persero) 16.770 170 PT Swadaya Graha 16.638 11.533 Semen Indonesia Foundation 4.289 3.106 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 24.132 10.238

111.994 45.306 Sebagai persentase terhadap jumlah aset/As a percentage of total assets 0,14% 0,09%











(continued)

2019 2018Penghasilan keuangan/Finance income

PT Bank Mandiri (Persero) Tbk 121.546 75.929 PT Bank Negara Indonesia (Persero) Tbk 41.372 7.957 PT Bank Rakyat Indonesia (Persero) Tbk 19.982 5.231 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 577 851

183.477 89.968

Sebagai persentase terhadap jumlah penghasilan keuangan/As a percentage of total finance income 84,22% 49,44%

Beban keuangan/Finance costsPT Bank Negara Indonesia (Persero) Tbk 684.823 100.245 PT Bank Syariah Mandiri 38.652 - PT Bank Mandiri (Persero) Tbk 30.158 261.349 Dana Pensiun Semen Gresik - 1.172

753.633 362.766 Sebagai persentase terhadap jumlah beban keuangan/As a percentage of total finance costs 23,51% 37,82%

b. Saldo dengan pihak berelasi b. Balances with related parties

2019 2018Aset/AssetsKas dan setara kas/Cash and cash equivalents

PT Bank Negara Indonesia (Persero) Tbk 1.748.295 683.331 PT Bank Mandiri (Persero) Tbk 1.371.422 2.251.780 PT Bank Rakyat Indonesia (Persero) Tbk 234.560 884.168 PT Bank Tabungan Negara (Persero) Tbk 80.560 442.484 PT Bank Syariah Mandiri 10.507 16.487 PT BRI Agroniaga Tbk - 6.000

Kas dan setara kas/Cash and cash equivalents 3.445.347 4.284.250

Jumlah 3.445.344 4.284.250 Sebagai persentase terhadap jumlah aset/As a percentage of total assets 4,32% 8,44%

Kas yang dibatasi penggunaannya/Restricted cash

PT Bank Rakyat Indonesia (Persero) Tbk 3.600 100 PT Bank Mandiri (Persero) Tbk 3.216 - Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 1.453 882

Kas yang dibatasi penggunaannya/Restricted cash 8.269 982 Sebagai persentase terhadap jumlah aset/As a percentage of total assets 0,01% 0,00%

363













2019 2018

Investasi jangka pendek/Short-term invesmentsPT Bank Tabungan Negara (Persero) Tbk 45.001 - PT Swabina Gatra 6.190 6.190 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 2.263 2.263

53.454 8.453

Sebagai persentase terhadap jumlah aset/As a percentage of total assets 0,07% 0,02%

Piutang usaha /Trade receivablesKoperasi Warga Semen Gresik 252.910 299.766 PT PP (Persero) Tbk 188.147 154.071 PT Adhi Karya (Persero) Tbk 137.908 165.944 PT Wijaya Karya (Persero) Tbk 136.051 63.833 PT Prima Karya Manunggal 113.325 104.021 PT Wijaya Karya Beton Tbk 105.032 50.399 PT Pembangunan Perumahan Presisi Tbk 98.386 44.163 PT PP Urban 62.746 17.495 PT Adhi Persada Beton 60.914 36.202 PT Igasar 50.768 51.707 PT Hutama Karya (Persero) 32.467 38.848 PT Waskita Karya (Persero) Tbk 31.126 38.997 PT Hakaaston 28.597 13.744 PT Wijaya Karya Bangunan Gedung Tbk 25.790 400 PT Semen Baturaja (Persero) Tbk 17.912 27.300 PT Brantas Abipraya (Persero) 12.465 5.969 Koperasi Karyawan Semen Padang 11.899 11.901 PT Adhi Persada Gedung 10.895 2.210 PT Swadaya Graha 10.521 8.063 PT Nindya Karya (Persero) 8.945 16.357 PT Wijaya Karya Realty Tbk 7.780 1.934 PT Waskita Beton Precast Tbk 4.794 12.634 PT Krakatau Steel (Persero) Tbk 3.338 2.888 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 120.374 47.026

1.533.090 1.215.872 Sebagai persentase terhadap jumlah aset/As a percentage of total assets 1,92% 2,39%

0 0Piutang lain-lain/Other receivables

PT Pertamina Hulu Mahakam 26.697 - Yayasan Semen Padang 23.468 20.259 PT Asuransi Jasa Indonesia (Persero) 16.770 170 PT Swadaya Graha 16.638 11.533 Semen Indonesia Foundation 4.289 3.106 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 24.132 10.238

111.994 45.306 Sebagai persentase terhadap jumlah aset/As a percentage of total assets 0,14% 0,09%

364













2019 2018

Liabilitas jangka pendek/Current liabilitiesPinjaman jangka pendek/Short-term borrowingsPT Bank Negara Indonesia (Persero) Tbk 788.269 14.636 PT Bank Mandiri (Persero) Tbk 391.423 1.265.843

1.179.692 1.280.479 Sebagai persentase terhadap jumlah liabilitas/As a percentage of total liabilities 2,69% 7,05%

Liabilitas jangka panjang/Non current liabilitiesPinjaman bank/Bank loansSindikasi/Syndicated - PT Bank Negara Indonesia (Persero) Tbk 15.700.000 - PT Bank Negara Indonesia (Persero) Tbk 1.734.942 4.302.823 PT Bank Rakyat Indonesia (Persero) Tbk 2.612 3.908 PT Bank Mandiri (Persero) Tbk - 291.168

17.437.554 4.597.899

Sebagai persentase terhadap jumlah liabilitas/As a percentage of total liabilities 39.71% 25,31%

Liabilitas sewa pembiayaan/Finance lease liabilitiesLain-lain/Others (masing-masing di bawah/each below Rp 3.000) - 312.951

Sebagai persentase terhadap jumlah liabilitas/As a percentage of total liabilities 0% 1,72%

Dana syirkah temporer/Temporary syirkah fundsPT Bank Syariah Mandiri 2.000.000 -

Sebagai persentase terhadap jumlah dana syirkah temporer/As a percentage of total temporary syirkah funds 100% 0%

31. INFORMASI SEGMEN 31. SEGMENT INFORMATION

Grup melaporkan segmen-segmen berdasarkan PSAK 5 (revisi 2015) berdasarkan segmen usaha sebagai berikut:

The Group’s reportable segments under PSAK 5 (revised 2015) are based on the following business segments:

1. Manufaktur semen dan pendukungnya

(Produksi semen);

2. Produksi non semen yang terdiri dari penambangan batu kapur dan tanah liat, pembuatan kantong kemasan, pengembangan kawasan industri, beton jadi dan siap pakai, jasa sistem informasi, logistik, dan perdagangan.

1. Cement manufacturing and support (Cement production);

2. Non-cement productions consist of limestone and clay mining, cement bag manufacturing, industrial real estate, precast and readymix concrete, IT services, logistics, and trading.











2019 2018Liabilitas/LiabilitiesUtang usaha/Trade payablesEntitas sepengendali - BUMN/Under common control - SOE :PT Perusahaan Listrik Negara (Persero) 310.904 217.651 PT Swabina Gatra 89.142 55.125 PT Pasoka Sumber Karya 46.090 30.376 PT Pertamina (Persero) 44.097 12.935 Koperasi Warga Semen Gresik 41.562 44.812 PT Swadaya Graha 28.910 56.190 PT Pelayaran Tonasa Lines 27.600 30.552 PT Petrokimia Gresik (Persero) 21.952 13.582 Koperasi Karyawan Semen Padang 21.735 4.230 Koperasi Karyawan Warga Varia Usaha Beton 20.530 24.070 PT Pindad (Persero) 18.077 24.100 PT Yasiga Sarana Utama 16.698 20.473 PT PBM Biringkasi Raya 16.555 21.798 PT Krakatau Semen Indonesia 16.111 - PT Dahana (Persero) 16.081 4.136 PT Pelabuhan Indonesia II (Persero) 15.316 8.636 PT EMKL Topabiring 14.431 4.657 PT Sumatera Utara Perkasa Semen 12.832 2.320 PT Prima Karya Manunggal 11.920 3.622 Koperasi Karyawan Semen Tonasa 10.281 19.536 PT Igasar 8.964 3.501 PT PP (Persero) Tbk 6.793 6.793 PT Konsulta Semen Gresik 4.926 6.506 PT Sucofindo (Persero) 4.911 2.714 PT Varuna Tirta Prakasya (Persero) 4.347 3.876 PT Tekomunikasi Indonesia (Persero) Tbk 4.279 915 PT Asuransi Jiwa Inhealth Indonesia 3.560 - Koperasi Karyawan Usaha Sejahtera Bersama 3.462 2.222 PT Asuransi Jasa Indonesia (Persero) 3.161 1.888 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 19.565 43.489

864.792 670.705 Sebagai persentase terhadap jumlah liabilitas/As a percentage of total liabilities 1,97% 3,69%

Utang lain-lain/Other payables

PT Petrokima Gresik (Persero) 10.182 11.549 PT Telekomunikasi Indonesia (Persero) Tbk 3.243 3.243 Lain-lain/Others (masing-masing di bawah/each below Rp 3.000) 6.037 17.324

19.462 32.116

Sebagai persentase terhadap jumlah liabilitas/As a percentage of total liabilities 0,04% 0,18%

365













2019 2018

Liabilitas jangka pendek/Current liabilitiesPinjaman jangka pendek/Short-term borrowingsPT Bank Negara Indonesia (Persero) Tbk 788.269 14.636 PT Bank Mandiri (Persero) Tbk 391.423 1.265.843

1.179.692 1.280.479 Sebagai persentase terhadap jumlah liabilitas/As a percentage of total liabilities 2,69% 7,05%

Liabilitas jangka panjang/Non current liabilitiesPinjaman bank/Bank loansSindikasi/Syndicated - PT Bank Negara Indonesia (Persero) Tbk 15.700.000 - PT Bank Negara Indonesia (Persero) Tbk 1.734.942 4.302.823 PT Bank Rakyat Indonesia (Persero) Tbk 2.612 3.908 PT Bank Mandiri (Persero) Tbk - 291.168

17.437.554 4.597.899

Sebagai persentase terhadap jumlah liabilitas/As a percentage of total liabilities 39.71% 25,31%

Liabilitas sewa pembiayaan/Finance lease liabilitiesLain-lain/Others (masing-masing di bawah/each below Rp 3.000) - 312.951

Sebagai persentase terhadap jumlah liabilitas/As a percentage of total liabilities 0% 1,72%

Dana syirkah temporer/Temporary syirkah fundsPT Bank Syariah Mandiri 2.000.000 -

Sebagai persentase terhadap jumlah dana syirkah temporer/As a percentage of total temporary syirkah funds 100% 0%

31. INFORMASI SEGMEN 31. SEGMENT INFORMATION

Grup melaporkan segmen-segmen berdasarkan PSAK 5 (revisi 2015) berdasarkan segmen usaha sebagai berikut:

The Group’s reportable segments under PSAK 5 (revised 2015) are based on the following business segments:

1. Manufaktur semen dan pendukungnya

(Produksi semen);

2. Produksi non semen yang terdiri dari penambangan batu kapur dan tanah liat, pembuatan kantong kemasan, pengembangan kawasan industri, beton jadi dan siap pakai, jasa sistem informasi, logistik, dan perdagangan.

1. Cement manufacturing and support (Cement production);

2. Non-cement productions consist of limestone and clay mining, cement bag manufacturing, industrial real estate, precast and readymix concrete, IT services, logistics, and trading.

366









31. INFORMASI SEGMEN (lanjutan) 31. SEGMENT INFORMATION (continued)

2018

Jumlah sebelum

Produksi semen/ Produksi non semen/ eliminasi/Total

Cement Non-Cement before Eliminasi/ Konsolidasian/

production production eliminations Eliminations Consolidated

PENDAPATAN REVENUE

Penjualan pada pihak ketiga Sales to third parties

dan pihak-pihak berelasi 22.362.733 8.324.893 30.687.626 - 30.687.626 and related parties

Penjualan antar segmen 4.396.543 2.415.090 6.811.633 (6.811.633) - Inter-segment sales

Jumlah pendapatan 26.759.276 10.739.983 37.499.259 (6.811.633) 30.687.626 Total revenue

LABA USAHA OPERATING INCOME

Hasil segmen 4.747.875 220.599 4.968.474 (87.835) 4.880.639 Segment result

Penghasilan keuangan 179.703 11.836 191.539 (9.566) 181.973 Finance income

Beban keuangan (759.731) (209.094) (968.825) 9.566 (959.259) Finance cost

Bagian atas hasil bersih Share of result of

entitas asosiasi dan ventura bersama (52.004) 14.754 (37.250) 38.856 1.606 associates and joint venture

Laba sebelum pajak penghasilan 4.115.843 38.095 4.153.938 (48.979) 4.104.959 Profit before income tax

Beban pajak penghasilan (997.045) (29.016) (1.026.061) 6.806 (1.019.255) Income tax expense

Laba tahun berjalan 3.118.798 9.079 3.127.877 (42.173) 3.085.704 Profit for the year

Laba yang dapat diatribusikan kepada : Profit attributable to :

Pemilik entitas induk 3.131.046 2.702 3.133.748 (54.633) 3.079.115 Equity holders of parent entity

Kepentingan nonpengendali (12.249) 6.376 (5.873) 12.462 6.589 Non-controlling interest

Total laba tahun berjalan 3.118.797 9.078 3.127.875 (42.171) 3.085.704 Total profit for the year

STATEMENTS OF FINANCIAL

LAPORAN POSISI KEUANGAN POSITION

Aset segmen 45.632.372 6.939.561 52.571.933 (1.873.735) 50.698.198 Segment assets

Investasi pada entitas asosiasi Investments in associates

and ventura bersama 1.549.194 109.317 1.658.511 (1.572.873) 85.638 and joint venture

Jumlah aset 47.181.566 7.048.878 54.230.444 (3.446.608) 50.783.836 Total assets

Liabilitas segmen 14.994.470 5.158.256 20.152.726 (1.984.205) 18.168.521 Segment liabilities

INFORMASI LAINNYA OTHER INFORMATION

Pengeluaran modal 1.374.540 235.650 1.610.190 185.968 1.796.158 Capital expenditures

Penyusutan, deplesi Depreciation, depletion

dan amortisasi 1.351.539 310.495 1.662.034 34.032 1.696.066 and amortisation expense

Segmen Geografis Geographical Segments Tabel berikut menunjukkan distribusi dari aset konsolidasian dan pengeluaran modal Grup berdasarkan segmen geografis:

The following table shows the distribution of the Group’s consolidated assets and capital expenditures by geographical segment:

2019 2018

Aset AssetsIndonesia 77.595.045 48.737.197 IndonesiaLuar Negeri 2.212.022 2.046.639 Overseas

Jumlah 79.807.067 50.783.836 Total

Pengeluaran modal Capital expendituresIndonesia 1,622,424 1,711,110 IndonesiaLuar Negeri 7,072 85,048 Overseas

Jumlah 1,629,496 1,796,158 Total Grup berdomisili di Indonesia dan Vietnam. The Group is domiciled in Indonesia and Vietnam.








Berikut ini adalah informasi segmen berdasarkan segmen usaha:

Segment information based on business segments is presented below:

2019

Produksi Jumlah sebelum

Produksi semen/ non semen/ eliminasi/Total



PENDAPATAN REVENUE






Hasil segmen 7.503.101 (1.318.549) 6.184.552 491 6.185.043 Segment result

Penghasilan keuangan 203.394 15.350 218.744 (921) 217.823 Finance income

Beban keuangan (3.011.596) (194.622) (3.206.218) 920 (3.205.298) Finance cost


entitas asosiasi dan ventura bersama - (1.793) (1.793) - (1.793) associates and joint venture

Laba sebelum pajak penghasilan 4.694.899 (1.499.614) 3.195.285 490 3.195.775 Profit before income tax

Beban pajak penghasilan (841.177) 16.635 (824.542) - (824.542) Income tax expense

Laba tahun berjalan 3.853.722 (1.482.979) 2.370.743 490 2.371.233 Profit for the year


Pemilik entitas induk 3.894.540 (1.502.879) 2.391.661 490 2.392.151 Equity holders of parent entity

Kepentingan nonpengendali (40.818) 19.900 (20.918) - (20.918) Non-controlling interest

Total laba tahun berjalan 3.853.722 (1.482.979) 2.370.743 490 2.371.233 Total profit for the year


LAPORAN POSISI KEUANGAN POSITIONAset segmen 73.072.539 6.127.930 79.200.469 465.489 79.665.958 Segment assets

Investasi pada entitas asosiasi dan Investments in associates

ventura bersama - 141.109 141.109 - 141.109 and joint venture

Jumlah aset 73.072.539 6.269.039 79.341.578 465.489 79.807.067 Total assets

Liabilitas segmen 39.839.960 3.899.760 43.739.720 175.423 43.915.143 Segment liabilities

Dana syirkah temporer 2.000.000 - 2.000.000 - 2.000.000 Temporary syirkah loan




dan amortisasi 2.207.033 307.421 2.514.454 - 2.514.454 and amortisation expense

367










2018

Jumlah sebelum

Produksi semen/ Produksi non semen/ eliminasi/Total



PENDAPATAN REVENUE






Hasil segmen 4.747.875 220.599 4.968.474 (87.835) 4.880.639 Segment result

Penghasilan keuangan 179.703 11.836 191.539 (9.566) 181.973 Finance income

Beban keuangan (759.731) (209.094) (968.825) 9.566 (959.259) Finance cost


entitas asosiasi dan ventura bersama (52.004) 14.754 (37.250) 38.856 1.606 associates and joint venture

Laba sebelum pajak penghasilan 4.115.843 38.095 4.153.938 (48.979) 4.104.959 Profit before income tax

Beban pajak penghasilan (997.045) (29.016) (1.026.061) 6.806 (1.019.255) Income tax expense

Laba tahun berjalan 3.118.798 9.079 3.127.877 (42.173) 3.085.704 Profit for the year


Pemilik entitas induk 3.131.046 2.702 3.133.748 (54.633) 3.079.115 Equity holders of parent entity

Kepentingan nonpengendali (12.249) 6.376 (5.873) 12.462 6.589 Non-controlling interest

Total laba tahun berjalan 3.118.797 9.078 3.127.875 (42.171) 3.085.704 Total profit for the year


LAPORAN POSISI KEUANGAN POSITION

Aset segmen 45.632.372 6.939.561 52.571.933 (1.873.735) 50.698.198 Segment assets

Investasi pada entitas asosiasi Investments in associates

and ventura bersama 1.549.194 109.317 1.658.511 (1.572.873) 85.638 and joint venture

Jumlah aset 47.181.566 7.048.878 54.230.444 (3.446.608) 50.783.836 Total assets

Liabilitas segmen 14.994.470 5.158.256 20.152.726 (1.984.205) 18.168.521 Segment liabilities




dan amortisasi 1.351.539 310.495 1.662.034 34.032 1.696.066 and amortisation expense

Segmen Geografis Geographical Segments Tabel berikut menunjukkan distribusi dari aset konsolidasian dan pengeluaran modal Grup berdasarkan segmen geografis:

The following table shows the distribution of the Group’s consolidated assets and capital expenditures by geographical segment:

2019 2018

Aset AssetsIndonesia 77.595.045 48.737.197 IndonesiaLuar Negeri 2.212.022 2.046.639 Overseas

Jumlah 79.807.067 50.783.836 Total

Pengeluaran modal Capital expendituresIndonesia 1,622,424 1,711,110 IndonesiaLuar Negeri 7,072 85,048 Overseas

Jumlah 1,629,496 1,796,158 Total Grup berdomisili di Indonesia dan Vietnam. The Group is domiciled in Indonesia and Vietnam.

368









32. IKATAN DAN PERJANJIAN SIGNIFIKAN

(lanjutan) 32. COMMITMENTS AND SIGNIFICANT

AGREEMENT (continued) a. Ijin usaha pertambangan (lanjutan) a. Mining license (continued)

No. Surat keputusan/Decree Izin/Permit Lokasi/Location

Nomor/Number Tanggal/Date Oleh/By Pemegang/ Period akhir/ Holder End period

11 No. P2T/96/15.02/IX/2018 13 September 2018

Gubernur Jawa Timur/ Governor of East Java SBI 13 September

2024

Desa Mliwang, Kecamatan Kerek, Kabupaten Tuban/ Mliwang Village, Kerek Sub-District, Tuban District

12 No. P2T/98/15/02.IX/2018 13 September 2018


2022


13 IUP No. 544-81-2018 06 April 2018 Gubernur Sumatera Barat/ Governor of West Sumatera

SP 06 April 2028

Kelurahan Batu Gadang, Kecamatan Lubuk Kilangan, Padang, Sumatera Barat/ Batu Gadang Regency, Lubuk Kilangan Sub-district, Padang, West Sumatera


SP 06 April 2023

Kelurahan Indarung, Kecamatan Lubuk Kilangan, Padang, Sumatera Barat/ Indarung Regency, Lubuk Kilangan Sub-district, Padang, West Sumatera


SP 06 April 2023



SP 06 April 2023


17 IUP OP No 1/I.03.p/P2T/01/2016

20 Januari/ January 2016

Gubernur Sulawesi Selatan/ Governor of South Sulawesi

ST 20 Januari/ January 2026

Kabupaten Pangkep, Provinsi Sulawesi Selatan/ Pangkep District, South Sulawesi

18 IUP OP No 39/I.03a.P/P2T/10/2017

18 Oktober/ October 2016


ST 9 Juli/July 2026 Kabupaten Pangkep, Provinsi Sulawesi Selatan/ Pangkep District, South Sulawesi

19 IUP OP No 95/I.03/PTSP/2018 5 Juni/June 2018


ST 5 Juni/June 2028 Kabupaten Pangkep, Provinsi Sulawesi Selatan/ Pangkep District, South Sulawesi

20 IUP OP No 28/I.03a/PTSP/2018 5 Juni/June 2018 Gubernur Sulawesi Selatan/ Governor of South Sulawesi

ST 19 Agustus/ August 2023


21 IUP OP No 23/I.03a/PTSP/2019 23 Desember/ December 2019


ST 28 Desember/ December 2024


22 No. 324 Tahun 2012 03 September 2012

Bupati Aceh Besar/ Regent of Aceh Besar ACA 03 September

2022

Kecamatan Lhoknga, Kabupaten Aceh Besar, Provinsi Aceh/ Lhoknga Sub-District, Aceh Besar District, Aceh Besar Province



2022


24 No. 540/53/10.1.06.2/DPMPTSp/2017

09 November 2017

Kepala Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu/ Head of Investment Office and One-Stop Integrated Services

SBB 09 November 2022

Kampung Maloko, Desa Sukasari dan Desa Cipinang, Kecamatan Rumpin, Kabupaten Bogor/ Maloko Village, Village Sukasari and Village Cipinang, Rumpin Sub-Dsitrict, Bogor District

25 No. P2T/1/15.02/02/VIOI/2017 17 Juli /July 2017 Gubernur Jawa Timur/ Governor of East Java PLP 17 Juli/July 2022

Desa Jeladri, Kecamatan Winongan, Kabupaten Pasuruan, Provinsi Jawa Timur/ Jeladri Village, Winongan Sub-District, Pasuruan District, Jawa Timur Province







32. IKATAN DAN PERJANJIAN SIGNIFIKAN 32. COMMITMENTS AND SIGNIFICANT

AGREEMENT a. Ijin usaha pertambangan a. Mining license

Pada tanggal 31 Desember 2019, Grup memiliki ijin usaha pertambangan dan membayarkan pajak retribusi atas tanah pertambangan untuk lahan sebagai berikut:

As at 31 December 2019, the Group has a mining business license and paid for tax levy for the following areas:



1 IUP OP P2T/1/15.02/02/I/2019 14 Mei/May 2019 Gubernur Jawa Timur/ Governor of East Java Perseroan 14 Mei/May 2029

Desa Temandang, Pongpongan, Sumberarum dan Senori, Kecamatan Merakurak dan Kerek, Kabupaten Tuban, Provinsi Jawa Timur/ Temandang, Pongpongan, Sumberarum and Senori Village, Meakurak and Kerek Sub-District, Tuban District, East Java.

2 IUP OP P27/80/15.02/VIII/2018 6 Agustus/August 2018

Gubernur Jawa Timur/ Governor of East Java Perseroan 6 Agustus/August

2023

Desa Temandang, Sugihan dan Tobo, Kecamatan Merakurak, kabupaten Tuban, Provinsi Jawa Timur/ Temandang, Sugihan and Tobo Village, Meakurak Sub-District, Tuban District, East Java.

3 IUP OP No P2T/8/15.02/02/XI/2017

23 November 2017

Gubernur Jawa Timur/ Governor of East Java Perseroan 23 November

2023

Desa Mliwang, Tobo dan Karangasem, Kabupaten Tuban, Provinsi Jawa Timur/ Mliwang, Tobo and Karangasem Village, Tuban District, East Java.

4 IUP OP No 543.32/1712 Tahun 2017

8 Maret/March 2017


Perseroan 8 Maret/March 2027

Desa Kajar, Desa Pasucen, Desa Tegaldowo, Desa Timbrangan, Kecamatan Gunem, Kabupaten Rembang, Provinsi Jawa Tengah/ Tegaldowo, Pasucen, Timbrangan and Kajar Village, Gunem Sub-District, Rembang District, Central Java.

5 IUP OP No 543.32/1529 Tahun 2017

2 Maret/March 2017


Perseroan 2 Maret/March 2037

Desa Tegaldowo dan Desa Kajar, Kecamatan Gunem, Kabupaten Rembang, Provinsi Jawa Tengah/ Tegaldowo and Kajar Village, Gunem Sub-District, Rembang District, Central Java.

6 No. 503/IUP-OP/3301.4.40.16 Tahun 2015 22 Mei/May 2015 Gubernur Jawa Tengah/

Governor of Central Java SBI 22 Mei/May 2023

Kecamatan Cilacap Selatan, Kabupaten Cilacap/ South Cilacap Sub-District, Cilacap District

7 No. 503/IUP-OP/3301.4.39.15 Tahun 2015 22 Mei/May 2015 Gubernur Jawa Tengah/

Governor of Central Java SBI 22 Mei/May 2023

Desa Tritih Lor, Kecamatan Jeruklegi dan Desa Jangrana, Kecamatan Kesugihan, Kabupaten Cilacap/ Tritih Lor Village, Jeruklegi Sub-District and Jangrana Village, Kesugihan Sub-District, Cilacap District

8 No. 541.3/018/Kpts/ESDM/2012 26 Desember/ December 2012

Bupati Bogor/ Regent of Bogor SBI 26 Desember/

December 2022

Desa Nambo dan Desa Klapanunggal, Kecamatan Klapanunggal, Kabupaten Bogor/ Nambo Village and Klapanunggal Village, Bogor District

9 No.540/Kep.32/10.1.02.2/BPMPT/2016.39/Kep./10.1.03.0/BPMPT/2016

27 Juli/July 2016

Kepala Badan Penanaman Modal dan Perijinan Terpadu Provinsi Jawa Barat/ Head of Investment Office and One-Stop Integrated Services of West Java Province

SBI 27 Juli/July 2021

Desa Nambo dan Desa Lulut, Kecamatan Klapanunggal, Kabupaten Bogor/ Nambo Village and Lulut Village, Klapanungal Sub-District, Bogor District



2034

Desa Sawir dan Desa Kedungrejo, Kecamatan Tambakboy dan Kecamatan Kerek, Kabupaten Tuban/ Sawir Village and Kedungrejo Village, Tambakboy Sub-District and Kerek Sub-District, Tuban District

369











AGREEMENT (continued) a. Ijin usaha pertambangan (lanjutan) a. Mining license (continued)





2024


12 No. P2T/98/15/02.IX/2018 13 September 2018


2022



SP 06 April 2028



SP 06 April 2023

Kelurahan Indarung, Kecamatan Lubuk Kilangan, Padang, Sumatera Barat/ Indarung Regency, Lubuk Kilangan Sub-district, Padang, West Sumatera


SP 06 April 2023



SP 06 April 2023


17 IUP OP No 1/I.03.p/P2T/01/2016

20 Januari/ January 2016


ST 20 Januari/ January 2026


18 IUP OP No 39/I.03a.P/P2T/10/2017

18 Oktober/ October 2016


ST 9 Juli/July 2026 Kabupaten Pangkep, Provinsi Sulawesi Selatan/ Pangkep District, South Sulawesi

19 IUP OP No 95/I.03/PTSP/2018 5 Juni/June 2018


ST 5 Juni/June 2028 Kabupaten Pangkep, Provinsi Sulawesi Selatan/ Pangkep District, South Sulawesi

20 IUP OP No 28/I.03a/PTSP/2018 5 Juni/June 2018 Gubernur Sulawesi Selatan/ Governor of South Sulawesi

ST 19 Agustus/ August 2023


21 IUP OP No 23/I.03a/PTSP/2019 23 Desember/ December 2019


ST 28 Desember/ December 2024




2022




2022


24 No. 540/53/10.1.06.2/DPMPTSp/2017

09 November 2017


SBB 09 November 2022

Kampung Maloko, Desa Sukasari dan Desa Cipinang, Kecamatan Rumpin, Kabupaten Bogor/ Maloko Village, Village Sukasari and Village Cipinang, Rumpin Sub-Dsitrict, Bogor District

25 No. P2T/1/15.02/02/VIOI/2017 17 Juli /July 2017 Gubernur Jawa Timur/ Governor of East Java PLP 17 Juli/July 2022

Desa Jeladri, Kecamatan Winongan, Kabupaten Pasuruan, Provinsi Jawa Timur/ Jeladri Village, Winongan Sub-District, Pasuruan District, Jawa Timur Province

370









33. ASET DAN LIABILITAS MONETER DALAM MATA

UANG ASING 33. MONETARY ASSETS AND LIABILITIES

DENOMINATED IN FOREIGN CURRENCIES Pada tanggal 31 Desember 2019 dan 2018, Grup mempunyai aset dan liabilitas moneter dalam mata uang asing sebagai berikut:

As at 31 December 2019 and 2018, the Group had monetary assets and liabilities denominated in foreign currencies as follows:

JumlahMata uang setara

USD EUR VND asing lainnya/ Rupiah/(dalam ribuan/ (dalam ribuan/ (dalam ribuan/ Others foreign Equivalent inin thousand) in thousand) in thousand) currencies* Rupiah

Aset: Assets:Kas dan setara kas 48.014 687 27.255.000 - 694.553 Cash and cash equivalentsPiutang usaha 10.088 - 51.433.333 - 171.090 Trade receivablesPiutang lain-lain 609 - - - 8.466 Other receivables

Jumlah aset 58.711 687 78.688.333 - 874.109 Total assets

Liabilitas: Liabilities:Utang usaha 14.379 4.716 770.893.333 242 739.107 Trade payablesUtang lain-lain 18.997 - - - 264.077 Other payablesPinjaman bank - 7.448 53.706.667 - 148.334 Bank loan

Jumlah liabilitas 33.376 12.164 824.600.000 242 1.151.518 Total liabilities

Aset bersih 25.335 (11.477) (745.911.667) (242) (277.410) Net assets

2019



Aset: Assets:Kas dan setara kas 38.455 1.567 14.118.400 51 591.678 Cash and cash equivalentsPiutang usaha 12.303 - 59.059.200 - 215.077 Trade receivablesPiutang lain-lain 7.974 - - - 115.471 Other receivables

Jumlah aset 58.732 1.567 73.177.600 51 922.226 Total assets

Liabilitas: Liabilities:Utang usaha 5.309 7.320 529.449.600 275 532.831 Trade payablesUtang lain-lain 1.652 3.907 - - 23.923 Other payablesPinjaman bank - - 91.700.800 - 57.313 Bank loan

Jumlah liabilitas 6.961 11.227 621.150.400 275 614.067 Total liabilities

Aset bersih 51.771 (9.660) (547.972.800) (224) 308.159 Net assets

2018









AGREEMENT (continued)

b. Fasilitas kredit b. Credit facilities

Perseroan dan beberapa entitas anak tertentu memiliki fasilitas kredit untuk modal kerja, pembiayaan, jaminan bank, letters of credit dan kontrak valuta asing. Fasilitas kreditT yang belum digunakan oleh Perseroan dan entitas anak pada tanggal 31 Desember 2019 sejumlah Rp 20.129.709.

The Company and certain subsidiaries have credit facilities for working capital, financing, bank guarantees, letters of credit and foreign exchange contracts. The total available credit facilities of the Company and subsidiaries as at 31 December 2019 amounted to Rp 20,129,709.

c. Komitmen pembelian barang modal c. Capital commitments

Kontrak pembelian barang modal pada tanggal 31 Desember 2019 adalah sejumlah Rp 421.972.

Capital expenditure contracted as at 31 December 2019 amounted to Rp 421,972.

d. Komitmen sewa operasi d. Operating lease commitments

Grup menyewa beberapa jenis aset tetap di bawah perjanjian sewa operasi yang tidak dapat dibatalkan.

The Group leases various fixed assets under non-cancellable operating leases agreements.

Jumlah pembayaran sewa minimum yang akan dibayarkan di masa datang yang berasal dari kontrak sewa operasi yang tidak dapat dibatalkan tetapi belum diakui sebagai piutang pada tanggal pelaporan, adalah sebagai berikut:

The future minimum lease payments under non-cancellable operating leases contracted for at the reporting date, but not recognised as receivables, are as follows:

2019 2018

Dalam 1 tahun 15.999 183.426 Within 1 year1 sampai 5 tahun 60.631 426.391 Between 1 up to 5 yearsLebih dari 5 tahun 109.627 497.993 More than 5 years

Jumlah 186.257 1.107.810 Total

371









33. ASET DAN LIABILITAS MONETER DALAM MATA

UANG ASING 33. MONETARY ASSETS AND LIABILITIES

DENOMINATED IN FOREIGN CURRENCIES Pada tanggal 31 Desember 2019 dan 2018, Grup mempunyai aset dan liabilitas moneter dalam mata uang asing sebagai berikut:

As at 31 December 2019 and 2018, the Group had monetary assets and liabilities denominated in foreign currencies as follows:



Aset: Assets:Kas dan setara kas 48.014 687 27.255.000 - 694.553 Cash and cash equivalentsPiutang usaha 10.088 - 51.433.333 - 171.090 Trade receivablesPiutang lain-lain 609 - - - 8.466 Other receivables

Jumlah aset 58.711 687 78.688.333 - 874.109 Total assets

Liabilitas: Liabilities:Utang usaha 14.379 4.716 770.893.333 242 739.107 Trade payablesUtang lain-lain 18.997 - - - 264.077 Other payablesPinjaman bank - 7.448 53.706.667 - 148.334 Bank loan

Jumlah liabilitas 33.376 12.164 824.600.000 242 1.151.518 Total liabilities

Aset bersih 25.335 (11.477) (745.911.667) (242) (277.410) Net assets

2019



Aset: Assets:Kas dan setara kas 38.455 1.567 14.118.400 51 591.678 Cash and cash equivalentsPiutang usaha 12.303 - 59.059.200 - 215.077 Trade receivablesPiutang lain-lain 7.974 - - - 115.471 Other receivables

Jumlah aset 58.732 1.567 73.177.600 51 922.226 Total assets

Liabilitas: Liabilities:Utang usaha 5.309 7.320 529.449.600 275 532.831 Trade payablesUtang lain-lain 1.652 3.907 - - 23.923 Other payablesPinjaman bank - - 91.700.800 - 57.313 Bank loan

Jumlah liabilitas 6.961 11.227 621.150.400 275 614.067 Total liabilities

Aset bersih 51.771 (9.660) (547.972.800) (224) 308.159 Net assets

2018

372









34. TUJUAN DAN KEBIJAKAN MANAJEMEN MODAL

DAN RISIKO KEUANGAN (lanjutan) 34. FINANCIAL RISK AND CAPITAL MANAGEMENT

OBJECTIVES AND POLICIES (continued)

b. Risiko nilai tukar mata uang asing (lanjutan) b. Foreign exchange risk (continued)

Risiko harga Price risk

Grup terkena dampak risiko harga yang terutama diakibatkan oleh pembelian batu bara yang merupakan komponen utama biaya produksi. Harga batu bara tersebut dipengaruhi oleh beberapa faktor, antara lain permintaan, pasokan, nilai tukar, dan cuaca.

The Group is exposed to price risk that is mainly due to the purchase of coal which is the main component of production costs. The price of coal is influenced by several factors, including demand, supply, exchange rates, and weather.

Kebijakan Grup untuk meminimalkan risiko yang berasal dari fluktuasi harga batu bara adalah antara lain dengan mengadakan kontrak pembelian yang berjangka waktu 12 bulan atau kurang dan pembelian secara bersama antara Grup kepada pemasok agar mendapatkan harga yang menguntungkan.

The Group’s policy to minimize risks arising from fluctuations in the price of coal is among other things entered into purchase contracts for a period of 12 months or less and a joint purchase between the Group to suppliers in order to obtain favorable prices.

c. Risiko kredit b. Credit risk

Risiko kredit timbul dari kas dan setara kas, piutang usaha, piutang lain-lain dan kas yang dibatasi penggunaannya Jumlah tercatat aset di laporan posisi keuangan konsolidasian Grup merupakan eksposur maksimal dari risiko kredit.

Credit risk arises from cash and cash equivalent, trade receivables, other receivables and restricted cash. The carrying amount of financial assets in the Group’s consolidated statement of financial position represents maximum credit risk exposure.

Untuk kas dan setara kas, dan kas yang dibatasi penggunaannya, Grup hanya memilih bank yang memiliki reputasi dan kredibilitas yang baik.

Regarding cash and cash equivalent, and restricted cash, the Group only selects bank with a good reputation and credibility.

Terkait dengan eksposur kredit atas piutang usaha kepada pelanggan, Grup melakukan analisa kredit dan menetapkan batasan kredit konsumen sebelum penerimaan konsumen baru. Batasan kredit ini ditinjau secara berkala. Grup juga melakukan pengawasan secara berkelanjutan untuk portofolio kredit untuk meminimalisasi dampak dari risiko kredit. Analisa lebih lanjut terhadap piutang usaha disajikan pada Catatan 6 dalam laporan keuangan konsolidasi.

In respect of credit exposures of trade receivable due from customers, the Group assesses the potential customer’s credit quality and sets credit limits before accepting any new customers. These limits are reviewed periodically. The Group also performs ongoing credit portfolio monitoring as well as manages the collection of the receivables in order to minimise the credit risk exposure. Further analysis on trade receivables is provided in Note 6 to the consolidated financial statements.

Semua saldo piutang lain-lain jatuh tempo yang belum mengalami penurunan nilai yang merupakan pelanggan, pihak berelasi dan karyawan tanpa adanya kasus gagal bayar di masa lalu.

All balances of other receivables are neither pass due nor impaired in which represent customers, related parties and employees with no history of default in the past.








DAN RISIKO KEUANGAN 34. FINANCIAL RISK AND CAPITAL MANAGEMENT

OBJECTIVES AND POLICIES

Grup terpengaruh terhadap risiko pasar, risiko kredit, dan risiko likuiditas. Manajemen menerapkan manajemen risiko atas risiko-risiko tersebut dengan melakukan evaluasi atas risiko keuangan dan kerangka pengelolaan risiko keuangan yang tepat untuk Grup. Pengelolaan resiko tersebut memberikan keyakinan kepada manajemen bahwa aktivitas keuangan dikelola secara pruden sesuai kebijakan dan prosedur yang tepat dan risiko keuangan diidentifikasi, diukur dan dikelola sesuai dengan kebijakan dan risk appetite.

The Group is exposed to market risk, credit risk and liquidity risk. Management applies risk management for such risks by evaluating the financial risks and the appropriate financial risk governance framework for the Group. Such risk management provides assurance to management that prudent financial activities are managed according to appropriate policies and procedures and financial risks are identified, measured and managed in accordance with policies and risk appetite.

Manajemen menerapkan kebijakan pengelolaan risiko-risiko sebagaimana dirangkum di bawah ini:

The management applies policies for managing each of these risks which is summarised below:

a. Risiko pasar a. Market risk

Risiko pasar adalah risiko nilai wajar arus kas masa depan suatu instrumen keuangan akan berfluktuasi karena perubahan harga pasar. Harga pasar mengandung tiga tipe risiko: risiko nilai tukar mata uang asing, risiko harga, dan risiko tingkat suku bunga. Instrumen keuangan yang terpengaruh oleh risiko pasar termasuk kas dan setara kas, investasi jangka pendek, piutang usaha, piutang lain-lain, kas dan setara kas yang dibatasi penggunaannya, utang usaha, utang lain-lain, akrual, dan pinjaman jangka panjang.beban

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risk: foreign currency risk, price risk, and interest rate risk. Financial instruments affected by market risk included cash and cash equivalent, short-term investment, trade receivables, other receivables, restricted cash and cash equivalent, trade payable, other payables, accrued expenses and long-term borrowings.

b. Risiko nilai tukar mata uang asing b. Foreign exchange risk

Grup rentan terhadap risiko nilai tukar mata uang asing yang timbul dari berbagai eksposur mata uang. Risiko nilai tukar mata uang asing timbul dari aset dan liabilitas moneter yang diakui dalam USD.

The Group is exposed to foreign exchange risk arising from various currency exposures. Foreign exchange risk arises from recognised monetary assets and liabilities in USD.

Manajemen telah menetapkan kebijakan yang mengharuskan entitas-entitas dalam Grup mengelola risiko nilai tukar mata uang asing terhadap mata uang fungsionalnya. Untuk mengelola risiko nilai tukar mata uang asing yang timbul dari transaksi komersial masa depan serta aset dan liabilitas yang diakui, entitas menggunakan kontrak berjangka, yang ditransaksikan dengan bank-bank yang telah ditunjuk dan memiliki swap mata uang asing.

Management has set up a policy to require Group companies to manage their foreign risk against their functional currency. To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the Group use forward contracts, transacted with the banks appointed and enter into foreign currency swap.

Pada tanggal 31 Desember 2019, jika Rupiah melemah/menguat sebesar 5%, terhadap USD dengan variabel lain konstan, laba setelah pajak untuk tahun berjalan akan lebih rendah/tinggi sebesar Rp 55.941(2018:Rp 28.008) terutama diakibatkan (kerugian)/keuntungan dari penjabaran aset dan liabilitas moneter dalam mata uang asing.

As at 31 December 2019, if Rupiah had weakened/strengthened by 5% against USD with all other variables held constant, post-tax profit for the year would have been Rp 55,941 (2018: Rp 28,008) lower/higher, mainly as a result of foreign exchange (losses)/gains on translation of monetary assets and liabilities in foreign currency.

373












b. Risiko nilai tukar mata uang asing (lanjutan) b. Foreign exchange risk (continued)

Risiko harga Price risk

Grup terkena dampak risiko harga yang terutama diakibatkan oleh pembelian batu bara yang merupakan komponen utama biaya produksi. Harga batu bara tersebut dipengaruhi oleh beberapa faktor, antara lain permintaan, pasokan, nilai tukar, dan cuaca.

The Group is exposed to price risk that is mainly due to the purchase of coal which is the main component of production costs. The price of coal is influenced by several factors, including demand, supply, exchange rates, and weather.

Kebijakan Grup untuk meminimalkan risiko yang berasal dari fluktuasi harga batu bara adalah antara lain dengan mengadakan kontrak pembelian yang berjangka waktu 12 bulan atau kurang dan pembelian secara bersama antara Grup kepada pemasok agar mendapatkan harga yang menguntungkan.

The Group’s policy to minimize risks arising from fluctuations in the price of coal is among other things entered into purchase contracts for a period of 12 months or less and a joint purchase between the Group to suppliers in order to obtain favorable prices.

c. Risiko kredit b. Credit risk

Risiko kredit timbul dari kas dan setara kas, piutang usaha, piutang lain-lain dan kas yang dibatasi penggunaannya Jumlah tercatat aset di laporan posisi keuangan konsolidasian Grup merupakan eksposur maksimal dari risiko kredit.

Credit risk arises from cash and cash equivalent, trade receivables, other receivables and restricted cash. The carrying amount of financial assets in the Group’s consolidated statement of financial position represents maximum credit risk exposure.

Untuk kas dan setara kas, dan kas yang dibatasi penggunaannya, Grup hanya memilih bank yang memiliki reputasi dan kredibilitas yang baik.

Regarding cash and cash equivalent, and restricted cash, the Group only selects bank with a good reputation and credibility.

Terkait dengan eksposur kredit atas piutang usaha kepada pelanggan, Grup melakukan analisa kredit dan menetapkan batasan kredit konsumen sebelum penerimaan konsumen baru. Batasan kredit ini ditinjau secara berkala. Grup juga melakukan pengawasan secara berkelanjutan untuk portofolio kredit untuk meminimalisasi dampak dari risiko kredit. Analisa lebih lanjut terhadap piutang usaha disajikan pada Catatan 6 dalam laporan keuangan konsolidasi.

In respect of credit exposures of trade receivable due from customers, the Group assesses the potential customer’s credit quality and sets credit limits before accepting any new customers. These limits are reviewed periodically. The Group also performs ongoing credit portfolio monitoring as well as manages the collection of the receivables in order to minimise the credit risk exposure. Further analysis on trade receivables is provided in Note 6 to the consolidated financial statements.

Semua saldo piutang lain-lain jatuh tempo yang belum mengalami penurunan nilai yang merupakan pelanggan, pihak berelasi dan karyawan tanpa adanya kasus gagal bayar di masa lalu.

All balances of other receivables are neither pass due nor impaired in which represent customers, related parties and employees with no history of default in the past.

374












d. Risiko likuiditas (lanjutan) d. Liquidity risk (continued)

Pengelolaan modal Capital management Tujuan utama pengelolaan modal Grup adalah untuk memastikan pemeliharaan rasio modal yang sehat untuk mendukung usaha dan memaksimalkan imbalan bagi pemegang saham dan pemangku kepentingan lainnya.

The primary objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximize shareholder value and other stakeholders.

Grup mengelola struktur permodalan dan melakukan penyesuaian, bila diperlukan, berdasarkan perubahan kondisi ekonomi. Untuk memelihara dan menyesuaikan struktur permodalan, Grup dapat menyesuaikan pembayaran dividen kepada pemegang saham, menerbitkan saham baru atau mengusahakan pendanaan melalui pinjaman.

The Group manages its capital structure and makes adjustments to it, if necessary, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, issue new shares or raise debt financing.

Grup mengawasi modal dengan menggunakan rasio gearing, dengan membagi jumlah pinjaman berbunga yang sudah dikurangkan dengan kas dan setara kas, dengan jumlah ekuitas yang dapat diatribusikan kepada pemilik entitas induk.

The Group monitors its capital using gearing ratios, by dividing interest bearing loan after deducted with cash and cash equivalent, by total equity attributable to equity holders of the parent entity.

Rasio gearing pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

The gearing ratios as at 31 December 2019 and 2018 are as follow:

2019 2018

Pinjaman bank 20.924.164 6.245.878 Bank loansUtang obligasi 7.065.345 2.994.902 Bonds payableLiabilitas sewa pembiayaan 52.438 361.680 Finance lease liabilitiesDana syirkah temporer 2.000.000 - Temporary syirkah fund

Jumlah pinjaman dan dana Total borrowings and temporarysyirkah temporer 30.041.947 9.602.460 syirkah fund

Dikurangi: Less:- Kas dan setara kas (3.950.448) (5.245.731) Cash and cash equivalent -

26.091.499 4.356.729

Jumlah ekuitas yang dapat diatribusikan Total equity attributable to ownerskepada pemilik entitas induk 32.276.815 31.192.085 of the parent entity

Rasio pengungkit (x) 0,81 0,14 Gearing ratio (x)










d. Risiko likuiditas d. Liquidity risk

Risiko likuiditas muncul dalam situasi dimana Grup mengalami kesulitan dalam memperoleh pendanaan. Manajemen risiko likuiditas berarti menjaga kecukupan saldo kas dan setara kas. Grup mengelola risiko likuiditas dengan terus memantau perkitaan dan arus kas aktual dan mencocokan profil jatuh tempo aset dan kewajiban keuangan, dan memanfaatkan fasilitas kredit dari bank.

Liquidity risk arises in situations where the Group has difficulties in obtaining funding. Prudence liquidity risk management implies maintaining sufficient cash and cash equivalents. The Group manages liquidity risk by continuosly monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities, and utilising the credit facilities from the bank.

Tabel dibawah merangkum profil jatuh tempo liabilitas keuangan Grup berdasarkan pembayaran kontraktual yang tidak didiskontokan pada tanggal 31 Desember 2019 dan 2018.

The table below summarises the maturity profile of the Group financial liabilities based on contractual undiscounted payments as at 31 December 2019 and 2018.

Kurang dari 1 tahun/ 1-2 tahun Lebih dari 2 tahun Jumlah/Less than 1 year 1-2 years More than 2 years Total

Pinjaman jangka pendek 1.211.916 - - 1.211.916 Short-term borrowingsUtang usaha 5.669.759 - - 5.669.759 Trade payablesUtang lain-lain 575.126 - - 575.126 Other payablesAkrual 1.222.508 - - 1.222.508 AccrualsLiabilitas imbalan kerja Short-term employee jangka pendek 735.066 - - 735.066 benefit liabilitiesPinjaman bank 4.155.572 5.071.165 17.593.145 26.819.882 Bank loansUtang obligasi 625.734 625.734 8.256.283 9.507.751 Bonds payableLiabilitas sewa pembiayaan 10.897 44.132 - 55.029 Finance lease liabilities

14.206.578 5.741.031 25.849.428 45.797.037

2019

Kurang dari 1 tahun/ 1-2 tahun Lebih dari 2 tahun Jumlah/Less than 1 year 1-2 years More than 2 years Total

Pinjaman jangka pendek 1.551.659 - - 1.551.659 Short-term borrowingsUtang usaha 4.476.149 - - 4.476.149 Trade payablesUtang lain-lain 318.903 - - 318.903 Other payablesAkrual 901.429 - - 901.429 AccrualsLiabilitas imbalan kerja Short-term employee jangka pendek 392.573 - - 392.573 benefit liabilitiesPinjaman bank 882.945 5.082.349 473.967 6.439.261 Bank loansUtang obligasi 258.000 258.000 3.516.000 4.032.000 Bonds payableLiabilitas sewa pembiayaan 88.387 436.840 496.909 1.022.136 Finance lease liabilities

8.870.045 5.777.189 4.486.876 19.134.110

2018

Estimasi Nilai Wajar Fair value estimation

Nilai tercatat dari aset dan liabilitas keuangan dengan jatuh tempo kurang dari 1 tahun, termasuk kas setara kas, piutang usaha, piutang lain-lain, pinjaman bank jangka pendek, utang usaha, dan akrual diperkirakan mendekati nilai wajarnya karena bersifat jangka pendek. Nilai tercatat pinjaman bank, liabilitas sewa pembiayaan, dan utang obligasi dengan jatuh tempo lebih dari 1 tahun juga mendekati nilai wajarnya karena dampak pendiskontoan tidak signifikan.

The carrying amount of financial assets and liabilities with maturities of less than 1 year, including cash equivalents, trade receivables, other receivables, short-term bank loans, trade payables and accruals, are estimated to be near their fair values because they are short-term. The carrying value of bank loans, finance lease liabilities, and bonds payable with maturities of more than 1 year also approaches their fair value because the impact of discounting is not significant.

375












d. Risiko likuiditas (lanjutan) d. Liquidity risk (continued)

Pengelolaan modal Capital management Tujuan utama pengelolaan modal Grup adalah untuk memastikan pemeliharaan rasio modal yang sehat untuk mendukung usaha dan memaksimalkan imbalan bagi pemegang saham dan pemangku kepentingan lainnya.

The primary objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximize shareholder value and other stakeholders.

Grup mengelola struktur permodalan dan melakukan penyesuaian, bila diperlukan, berdasarkan perubahan kondisi ekonomi. Untuk memelihara dan menyesuaikan struktur permodalan, Grup dapat menyesuaikan pembayaran dividen kepada pemegang saham, menerbitkan saham baru atau mengusahakan pendanaan melalui pinjaman.

The Group manages its capital structure and makes adjustments to it, if necessary, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, issue new shares or raise debt financing.

Grup mengawasi modal dengan menggunakan rasio gearing, dengan membagi jumlah pinjaman berbunga yang sudah dikurangkan dengan kas dan setara kas, dengan jumlah ekuitas yang dapat diatribusikan kepada pemilik entitas induk.

The Group monitors its capital using gearing ratios, by dividing interest bearing loan after deducted with cash and cash equivalent, by total equity attributable to equity holders of the parent entity.

Rasio gearing pada tanggal 31 Desember 2019 dan 2018 adalah sebagai berikut:

The gearing ratios as at 31 December 2019 and 2018 are as follow:

2019 2018

Pinjaman bank 20.924.164 6.245.878 Bank loansUtang obligasi 7.065.345 2.994.902 Bonds payableLiabilitas sewa pembiayaan 52.438 361.680 Finance lease liabilitiesDana syirkah temporer 2.000.000 - Temporary syirkah fund

Jumlah pinjaman dan dana Total borrowings and temporarysyirkah temporer 30.041.947 9.602.460 syirkah fund

Dikurangi: Less:- Kas dan setara kas (3.950.448) (5.245.731) Cash and cash equivalent -

26.091.499 4.356.729

Jumlah ekuitas yang dapat diatribusikan Total equity attributable to ownerskepada pemilik entitas induk 32.276.815 31.192.085 of the parent entity

Rasio pengungkit (x) 0,81 0,14 Gearing ratio (x)

376









35. INFORMASI PENTING LAINNYA (lanjutan) 35. OTHER SIGNIFICANT INFORMATION (continued)

Rencana Konstruksi Regional Provinsi Quang Ninh Regional construction plan of Quang Ninh Province Berdasarkan Keputusan No.1488/QD-TTg tahun 2011 yang dikeluarkan oleh Perdana Menteri Vietnam yang meratifikasi atas rencana pengembangan industri semen di Vietnam untuk periode 2011–2020 atas visi 2030, proyek pabrik semen TLCC telah termasuk dalam daftar proyek yang disetujui. Namun, pada tahun 2014, berdasarkan Keputusan No. 1588/QD-UBND yang dikeluarkan oleh Komite Rakyat Provinsi Quang Ninh terkait persetujuan rencana konstruksi regional Provinsi Quang Ninh atas visi 2030-2050 dan setelah 2050, lokasi proyek pabrik semen TLCC kemungkinan akan direlokasi ke area lain.

According to Decision No.1488/QD-TTg issued in 2011, issued by the Prime Minister of Vietnam, ratifying the cement industry development plan in Vietnam for the period 2011–2020 of vision 2030, the cement plant project of TLCC was included in the approved list of projects. However, in 2014, based on Decision No. 1588/QD-UBND issued by People’s Committee of Quang Ninh Province relating to approval of regional construction plan of Quang Ninh Province of vision 2030-2050 and beyond 2050, the site of TLCC cement plant might be subject to relocation to another area.

Pada tanggal penyelesaian laporan keuangan konsolidasian ini, TLCC telah mengirimkan dokumen kepada otoritas terkait untuk memohon perijinan melanjutkan proyek konstruksi namun hingga saat ini belum mendapatkan tanggapan. Manajemen yakin bahwa pabrik semen TLCC tidak akan direlokasi sesuai dengan Keputusan No.1488/QD-TTg tahun 2011.

As at the completion date of these consolidated financial statements, TLCC had sent a document to relevant authorities requesting for permission to continue the project construction but has not yet received any feedback. Management believes that TLCC cement plant would not be subject to relocation as per Decision No.1488/QD-TTg year 2011.

36. TRANSAKSI NON-KAS 36. NON-CASH TRANSACTIONS

Aktivitas investasi signifikan yang tidak mempengaruhi arus kas:

Significant investing activities not affecting cash flows:

2019 2018

Pembelian aset tetap melalui Acquisition of fixed assetssewa pembiayaan 28.699 21.061 through finance lease

Kapitalisasi estimasi biaya Capitalization of the estimatedpembongkaran aset tetap 6.057 17.357 cost of fixed assets dismantling

Reklasifikasi uang muka Reclassification of advancesuntuk pembelian aset tetap 9.199 14.255 for purchase of fixed assets

43.955 52.673







35. INFORMASI PENTING LAINNYA 35. OTHER SIGNIFICANT INFORMATION

PT Wijaya Karya Industri & Konstruksi PT Wijaya Karya Industri & Kontruksi Pada tanggal 4 Agustus 2016, PT Wijaya Karya Industri & Konstruksi (WIKON) dan SP sepakat untuk mengalihkan pekerjaan proyek pekerjaan Mechanical Construction Paket (MC) 2 dan 3 sehubungan dengan pembangunan Indarung VI dari WIKON ke SP (total kontrak sebesar Rp 108.998). Kedua belah pihak juga sepakat bahwa biaya atas pengalihan pekerjaan tersebut akan diperhitungkan dengan tagihan dari WIKON. Pada tanggal 4 Mei 2017, kedua belah pihak sepakat untuk memutuskan kontrak MC2 dan MC3 dengan posisi progres pekerjaan masing-masing sebesar 59,13% dan 42,28%.

On 4 August 2016, PT Wijaya Karya Industri & Konstruksi (WIKON) and SP agreed to transfer the work of the Mechanical Construction Projects (MC) 2 and 3 in connection with the construction of Indarung VI from WIKON to SP (total contract of Rp 108,998). It was also agreed that the additional cost arising from the transfer of workload will be incorporated to billing calculation from WIKON. On 4 May 2017, both parties agreed to terminate MC2 and MC3 contract with work progress status of 59.13% and 42.28%, respectively.

Pada tahun 2016, WIKON menyampaikan klaim pertama sebesar Rp 90.207 dan kemudian direvisi menjadi Rp 173.345 pada tahun 2017. Pada Februari 2018, SP menyampaikan surat penolakan atas klaim WIKON karena klaim tersebut tidak didukung dengan bukti-bukti yang valid. SP juga menyampaikan klaim kepada WIKON dengan jumlah sebesar Rp 26.119.

In 2016, WIKON submitted a claim of Rp 90,207, which subsequently was revised to Rp 173,345 in 2017. In February 2018, SP submitted a rejection letter because the claim was not supported by a valid evidence. SP also submitted a claim to WIKON totaling to Rp 26,119.

Pada Agustus 2018, berdasarkan proses mediasi, Kementerian BUMN menyatakan bahwa klaim WIKON tidak memiliki bukti-bukti yang valid.

In August 2018, based on mediation process, the Ministry of State-owned enterprice concluded that WIKON’s claim was not supported by a valid evidence.

Pada tanggal penyelesaian laporan keuangan konsolidasian, hasil-hasil litigasi di atas belum dapat dipastikan dan estimasi andal tidak dapat ditentukan pada saat ini, sehingga tidak ada provisi kerugian yang dibukukan dalam laporan keuangan konsolidasian ini.

At the completion date of the consolidated financial statements, the results of the litigation above have not yet been determined and reliable estimates cannot be determined at this time, so there are no provision for losses recorded in these consolidated financial statements.

Kasus tanah Land cases Pada tahun 2017, Giring dkk mengajukan gugatan terhadap Perseroan dengan tuntutan klaim hak atas tanah yangberada diatas tanah bersertifikat Hak Guna Usaha (”HGU”) milik Perseroan di Desa Gaji, Tuban, Jawa Timur.

In 2017, Giring et al filed a lawsuit against the Company, claiming for a land right which is located on the Right to Exploit (”HGU”) land owned by the Company at Gaji Village, Tuban, East Java.

Berdasarkan putusan Pengadilan Tata Usaha Negara Surabaya dan Pengadilan Tinggi Tata Usaha Negara Surabaya, tuntutan hukum yang diajukan Giring dkk ditolak. Pada 28 Februari 2019, Makamah Agung menguatkan kedua putusan sebelumnya untuk menolak tuntutan hukum tersebut.

Based on the decision of the Surabaya Administrative Court and Surabaya High Administrative Court, the claims by Giring et al was rejected. On 28 February 2019, the Supreme Court upheld the previous two decisions to reject the claims.

377









35. INFORMASI PENTING LAINNYA (lanjutan) 35. OTHER SIGNIFICANT INFORMATION (continued)

Rencana Konstruksi Regional Provinsi Quang Ninh Regional construction plan of Quang Ninh Province Berdasarkan Keputusan No.1488/QD-TTg tahun 2011 yang dikeluarkan oleh Perdana Menteri Vietnam yang meratifikasi atas rencana pengembangan industri semen di Vietnam untuk periode 2011–2020 atas visi 2030, proyek pabrik semen TLCC telah termasuk dalam daftar proyek yang disetujui. Namun, pada tahun 2014, berdasarkan Keputusan No. 1588/QD-UBND yang dikeluarkan oleh Komite Rakyat Provinsi Quang Ninh terkait persetujuan rencana konstruksi regional Provinsi Quang Ninh atas visi 2030-2050 dan setelah 2050, lokasi proyek pabrik semen TLCC kemungkinan akan direlokasi ke area lain.

According to Decision No.1488/QD-TTg issued in 2011, issued by the Prime Minister of Vietnam, ratifying the cement industry development plan in Vietnam for the period 2011–2020 of vision 2030, the cement plant project of TLCC was included in the approved list of projects. However, in 2014, based on Decision No. 1588/QD-UBND issued by People’s Committee of Quang Ninh Province relating to approval of regional construction plan of Quang Ninh Province of vision 2030-2050 and beyond 2050, the site of TLCC cement plant might be subject to relocation to another area.

Pada tanggal penyelesaian laporan keuangan konsolidasian ini, TLCC telah mengirimkan dokumen kepada otoritas terkait untuk memohon perijinan melanjutkan proyek konstruksi namun hingga saat ini belum mendapatkan tanggapan. Manajemen yakin bahwa pabrik semen TLCC tidak akan direlokasi sesuai dengan Keputusan No.1488/QD-TTg tahun 2011.

As at the completion date of these consolidated financial statements, TLCC had sent a document to relevant authorities requesting for permission to continue the project construction but has not yet received any feedback. Management believes that TLCC cement plant would not be subject to relocation as per Decision No.1488/QD-TTg year 2011.

36. TRANSAKSI NON-KAS 36. NON-CASH TRANSACTIONS

Aktivitas investasi signifikan yang tidak mempengaruhi arus kas:

Significant investing activities not affecting cash flows:

2019 2018

Pembelian aset tetap melalui Acquisition of fixed assetssewa pembiayaan 28.699 21.061 through finance lease

Kapitalisasi estimasi biaya Capitalization of the estimatedpembongkaran aset tetap 6.057 17.357 cost of fixed assets dismantling

Reklasifikasi uang muka Reclassification of advancesuntuk pembelian aset tetap 9.199 14.255 for purchase of fixed assets

43.955 52.673

378









37. REKLASIFIKASI 37. RECLASSIFICATION

Akun-akun tertentu pada laporan keuangan konsolidasian untuk tahun yang berakhir pada tanggal 31 Desember 2018 telah direklasifikasi untuk menyesuaikan dengan penyajian laporan keuangan konsolidasian untuk tahun yang berakhir pada tanggal 31 Desember 2019. Rincian akun yang direklasifikasi adalah berikut ini:

Certain accounts in the consolidated financial statements for the year ended 31 December 2018 have been reclassified to conform with the presentation of the consolidated financial statements for the year ended 31 December 2019. The details of the accounts being reclassified are as follow:

Sebelum Setelahreklasifikasi/ reklasifikasi/

Before Reklasifikasi/ After reclassification Reclassification reclassification

Laporan posisi keuangan Consolidated statementskonsolidasian of financial positionASET ASSETS

ASET LANCAR CURRENT ASSETSKas yang dibatasi penggunaannya 31.332 (31.332) - Restricted cashBeban dibayar di muka 61.728 114.671 176.399 Prepaid expenses

ASET TIDAK LANCAR NON-CURRENT ASSETSKas yang dibatasi penggunaannya - 31.332 31.332 Restricted cashBeban tangguhan 114.671 (114.671) - Deferred chargesInvestasi pada ventura bersama - 55.822 55.822 Investment in joint ventureAset tetap 32.748.895 (356.945) 32.391.950 Fixed assetsAset pajak tangguhan 506.557 56.052 562.609 Deferred tax assetsGoodwill dan aset takberwujud 1.211.670 (126.983) 1.084.687 Goodwill and intangible assets

LIABILITAS LIABILITIESPinjaman bank (4.955.877) 261.658 (4.694.219) Bank loans

Trade payables - relatedUtang usaha - pihak berelasi (3.794.859) (10.585) (3.805.444) parties Kepentingan nonpengendali (1.544.211) 120.981 (1.423.230) Non-controlling interests

Laporan arus kas Consolidated statementskonsolidasian of cash flows

Arus kas dari Cash flows from aktivitas investasi investing activities Penempatan kas yang Placement of dibatasi penggunaannya - 2.599 2.599 restricted cash

Arus kas dari Cash flows from aktivitas pendanaan financing activities Penempatan kas yang Placement of dibatasi penggunaannya (2.599) 2.599 - restricted cash

31 Desember/December 2018

379



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SEOJK REFERENCE NO.30-SEOJK.04-2016: ANNUAL REPORT OF PUBLIC COMPANY


Cross Reference

Cross Reference to SEOJK No.30/SEOJK.04/2016 Concerning Annual Report Form and Contents of the Issuer of Public Company

ANNUAL REPORT FORM PAGE

1. Annual Report is presented in printed documents and copies of electronic documents. v

2. Annual Report is presented in the form of printed document, printed on plain and good

quality paper, A4 size, binded, and can be copied with good quality.

v

3. Annual Report is presented in the form of a copy of an electronic document. Annual Report

has been converted to pdf format.

v

ANNUAL REPORT CONTENTS PAGE

1. GENERAL PROVISION

a. Annual Reports shall at least contain the following information:

1. Overview of key financial data;

20-22

2. Share information (if any); 23

3. Report of the Board of Directors; 38-41

4. Report of the Board of Commissioners; 32-35

5. Profile of the Issuer or Public Company; 46-91

6. Management analysis and discussion; 96-141

7. Corporate Governance of the Issuer or Public Company; 144-253

8. Share information (if any);

9. Social and environmental responsibility of the Issuer or Public Company; 256-276

10. Audited annual financial statements; and 285-378

11. Statement letter from member of the Board of Directors and the Board of

Commissioners on Annual Reporting liability;

280-281

b. Annual Reports may present information in pictures, graphs, tables, and/or diagrams with

specific title and/or description, making it easy to read and understand;

v

2. DESCRIPTION OF ANNUAL REPORT CONTENTS

A. SUMMARY OF IMPORTANT FINANCIAL INFORMATION

Summary of Important Financial Information contains financial information presented in

comparative form for 3 (three. fiscal years or since starting the business if the Issuer or

Public Company runs its business activities for less than 3 (three. years, including at least:

1. Revenue/sales; 20

2. Gross profit; 20

3. Profit (loss); 20



DESCRIPTION OF ANNUAL REPORT CONTENTS

4. The amount of profit (loss) attributable to owners of the parent and non-controlling

interests;

20

5. Total comprehensive income (loss); 20

6. Total comprehensive income (loss) attributable to owners of the parent company and

non-controlling interests;

20

7. Profit (loss) per share; 20

8. Total assets; 20

9. Total liabilities; 20

10. Total equity; 20

11. Profit (loss) ratio to total assets; 20

12. Profit (loss) to equity ratio; 20

13. Ratio of profit (loss) to income/sales; 20

14. Current ratio; 20

15. Ratio of liabilities to equity; 20

16. Ratio of liabilities to total assets; and 20

17. Other information and financial ratios that are relevant to the Issuer or Public Company

and the type of industry.

20

B. SHARE INFORMATION

1. Shares that have been issued for each quarterly period (if any) are presented in

comparative form for the last 2 (two) fiscal years, including at least:

23

a. The number of shares outstanding; 23

b. Market capitalization based on prices on the Stock Exchange where the shares are

listed;

23

c. Highest, lowest, and closing stock prices based on prices on the Stock Exchange

where the shares are listed; and

23

d. Trading volume on the Stock Exchange where the shares are listed; 23

The information on paragraph a. disclosed by the Issuer which is a Public Company

publicly listed or not listed on a stock exchange; information on paragraph b., c. and d.

are only disclosed if the Issuer is a listed company and its shares are listed on the stock

exchange;

v

2. In the case of corporate actions, such as stock split, reverse stock, stock dividend,

bonus shares, and changes in the nominal value of shares, the share information as

referred to in number 1. shall be added with explanation including at least:

23

a. The execution date of corporate actions; 23

b. Ratio of stock split, reverse stock, stock dividend, bonus shares, and changes in

nominal value of shares;

23

c. Number of outstanding shares before and after corporate actions; and 23

d. Share prices before and after corporate actions; 23

3. In the event of a suspension of stock trading, and/or delisting of shares during the fiscal

year, the Issuer or Public Company explains the reason for the temporary suspension of

stock trading and/or delisting of shares; and

23




4. In the event of a temporary suspension and/or delisting as referred to in number 3. is

still going on until the end of the Annual Report period, the Issuer or Public Company

explains the actions taken to complete the temporary suspension of stock trading and/

or delisting of shares.

23

C. REPORT FROM THE BOARD OF DIRECTORS

The Board of Directors’ Report must include at least:38-41

1. A brief description of the performance of Issuer or Public Company, including at least:: 39-40

a. Strategic strategies and policies of the Issuer or Public Company; 39-40

b. Comparison between the results achieved with those targeted; and 39-40

c. Obstacles faced by Issuer or Public Company; 39-40

2. Description of business prospects; 40

3. Corporate governance implementation of Issuer or Public Company; and 40-41

4. Changes in the composition of the members of the Board of Directors and the reasons

for the changes (if any).

41

D. REPORT FROM THE BOARD OF COMMISSIONERS

The Board of Commissioners’ report including at least:32-35

1. Performance assessment of the Board of Directors regarding the management of Issuer

or Public Company;

33-34

2. Supervision of strategic implementation of the Issuer or Public Company; 33-34

3. Review on business prospects of the Issuer or Public Company compiled by the Board

of Directors;

34

4. Review on corporate governance implementation of Issuer or Public Company; 34-35

5. Changes in the composition of the members of the Board of Commissioners and the

reasons for the changes (if any); and

35

6. Frequency and ways of giving advice to members of the Board of Directors. 34

E. PROFILE OF THE ISSUER OR PUBLIC COMPANY

Profile of the Issuer or Public Company at least contains:46-91

1. Name of Issuer or Public Company including if there is a change in name, reason for

change, and effective date of name change in the fiscal year;

46

2. Access to Issuer or Public Company including branch offices or representative offices

that enable the public to obtain information about said Issuer or Public Company,

including:

46

a. Address; 46

b. Telephone number; 46

c. Facsimile number; 46

d. E-mail address; and 46

e. Website address; 46

3. A brief history of the Issuer or Public Company; 8-9

4. Vision and mission of the Issuer or Public Company; 54

5. Business activities according to the latest articles of association, business activities

carried out during the fiscal year, as well as the types of goods and/or services

provided;

47-53




6. Organizational structure of the Issuer or Public Company in the form of a chart, at least

up to 1 (one. level below the Board of Directors, accompanied by names and positions;

56-57

7. Profile of the Board of Directors, at least contains: 62-66

a. Name and position in accordance with their duties and responsibilities; 62-66

b. Recent photo; 62-66

c. Age; 62-66

d. Citizenship;; 62-66

e. Education history; 62-66

f. History of position, information including at least: 62-66

i. Legal basis for appointment as a member of the Board of Directors of the

Issuer or Public Company in question;

62-66

ii. Concurrent positions, both as members of the Board of Directors, members

of the Board of Commissioners, and/or committee members as well as other

positions (if any); and

62-66

iii. Work experience and period of time both inside and outside the Issuer or

Public Company;

62-66

g. Education and/or training conducted by members of the Board of Directors to

improve their competencies during the fiscal year (if any); and

62-66

h. Affiliation with other members of the Board of Directors, members of the Board of

Commissioners, and major shareholders (if any) including the name of affiliated

party;

62-66

8. Profile of the Board of Commissioners, at least containing: 58-61

a. Name; 58-61

b. Recent photo; 58-61

c. Age; 58-61

d. Citizenship;; 58-61

e. Education history; 58-61

f. History of position, information including at least: 58-61

i. Legal basis for appointment as a member of the Board of Commissioners for

non-Independent Commissioner in the Issuer or Public Company concerned;

58-61

ii. The legal basis for the first appointment as a member of the Board of

Commissioners for Independent Commissioner in the Issuer or Public

Company concerned;

58-61

iii. Concurrent positions, either as a member of the Board of Commissioners,

members of the Board of Directors, and/or committee members and other


58-61

iv. Work experience and period of time both inside and outside the Issuer or

Public Company;

58-61

g. Education and/or training conducted by members of the Board of Commissioners to

improve their competencies in the fiscal year (if any);

58-61

h. Affiliations with other members of the Board of Commissioners and major

shareholders (if any) including the name of affiliated party; and

58-61

i. statement of independence for Independent Commissioner in the event that the

Independent Commissioner has served more than 2 (two) periods (if any);

58-61




9. In the event that there is a change in the composition of the members of the Board of

Directors and/or members of the Board of Commissioners that occur from after the end

of fiscal year until the deadline of the Annual Report submission, the composition stated

in the Annual Report is the last and previous composition of the Board of Directors and/

or Board of Commissioners;

N/A

10. Number of employees and description of the distribution of education levels and age of

employees in the fiscal year;

91

11. Name of shareholder and percentage of ownership at the end of the fiscal year,

consisting of:

67-68

a. Shareholders who own 5% (five percent) shares or more of the Issuer or Public

Company;

67

b. Members of the Board of Directors and the Board of Commissioners who hold

shares of the Issuer or Public Company; and

67

c. A group of community shareholders, such as a group of shareholders who each

own less than 5% (five percent) of the shares of the Issuer or Public Company;

68

12. Number of shareholders and percentage of ownership per the end of the fiscal year

based on classification below:

68

a. Ownership by local institutions; 68

b. Ownership by foreign institutions; 68

c. Ownership by local individuals; and 68

d. Ownership by foreign individuals 68

13. Information about the major and controlling shareholders of the Issuer or Public

Company, either directly or indirectly, to individual owners, which are presented in the

form of schemes or charts;

68

14. Names of subsidiaries, associated companies and joint venture companies, in which

the Issuer or Public Company has joint control of the entity, along with the percentage

of share ownership, business field, total assets, and operating status of the Issuer or

Public Company (if any); For subsidiaries, information is added about the address of the

subsidiary;

72-75

15. Chronology of share listing, number of shares, nominal value, and bid price from the

beginning of listing until the end of the fiscal year and name of Stock Exchange where

the shares are listed (if any);

69

16. Chronology of other Securities listing other than Securities as referred to in number 15.,

which at least contains the name of Securities, year of issuance, due date, bid value,

and Securities rating (if any);

70

17. Name and address of capital market supporting institutions and/or professions; 76

18. In the event that there are capital market supporting professions that provide services

periodically to the Issuer or Public Company, information about services provided, fees

(commission), and assignment periods should be disclosed; and

76

19. Awards and/or certifications received by the Issuer or Public Company both nationally

and internationally in the last fiscal year (if any), which including:

80-81

a. Name of award and/or certification; 80-81

b. The body or institution that provides; and 80-81

c. Validity period of the award and/or certification (if any). 80-81




F. MANAGEMENT ANALYSIS AND DISCUSSION

Management’s analysis and discussion contains an analysis and discussion of financial

statements and other important information with an emphasis on material changes that

occur in the fiscal year, which including at least:

1. Review of operations per operating segment according to the type of industry of the

Issuer or Public Company, including at least:

a. Production, which includes the process, capacity and development; 103-111

b. Income/sales; and 103-111

c. Profitability; 103-111

2. Comprehensive financial performance which includes a comparison of financial

performance in the last 2 (two) fiscal years, an explanation of the causes of changes and

the impact of these changes, including at least:

a. Current assets, non-current assets, and total assets; 112-117

b. Short-term liabilities, long-term liabilities and total liabilities;; 117-122

c. Equity; 122

d. Income/sales, expenses, profit (loss), other comprehensive income, and total

comprehensive income (loss); and

123-129

e. Cash flow; 129-130

3. Ability to pay debts by presenting relevant ratio calculations; 131-132

4. The level of debt collectability of the Issuer or Public Company by presenting relevant

ratio calculation;

132-133

5. Capital structure and management policy on capital structure accompanied by the basis

for determining the policy in question;

134-135

6. Discussion of material bonds for capital goods investment with explanation including at

least:

135

a. The purpose of the bond; 135

b. Sources of funds that are expected to fulfill the bond; 135

c. Denominated currencies; and 135

d. Steps planned by the Issuer or Public Company to manage risk from related foreign

currency position;

135

7. Discussion of investment in capital goods realized in the last fiscal year, including at

least:

a. Type of capital investment; 135-136

b. The purpose of investment in capital goods; and 135-136

c. The investment value of capital goods issued; 135-136

8. Material information and facts that occur after the accountant’s report date (if any); 136

9. Business prospects of the Issuer or Public Company related to the general industrial,

economic and international market conditions along with quantitative supporting data

from reliable data sources;

40

10. Comparison between target/projection at the beginning of the fiscal year with the

results achieved (realization), regarding:

a. Income/sales; 136

b. Profit (loss); 136




c. Capital structure; or 136

d. Other things that are considered important by the Issuer or Public Company; 136

11. Targets/projections to be achieved by the Issuer or Public Company for the next 1 (one.

year, regarding:

a. Income/sales; 136

b. Profit (loss); 136

c. Vapital structure; 136

d. Dividend policy; or 136

e. Other things considered important by the Issuer or Public Company; 136

12. Marketing aspects of goods and/or services of Issuer or Public Company, including at

least marketing and market share strategies;

100-103

13. Description of dividends for the last 2 (two) fiscal years (if any), including at least:

a. Dividend policy; 137

b. Date of cash dividend payment and/or non-cash dividend distribution date; 137

c. The amount of dividends per share (cash and/or non-cash); and 137

d. The amount of dividends paid annually; 137

14. realization of the use of funds from the Public Offering, with the following requirement:

a. in the event that during the fiscal year, the Issuer has the obligation to submit a

report on the realization of the use of funds, the cumulative realization of the use of

funds from the Public Offering is disclosed until the end of the fiscal year; and

139-140

b. in the event that there is a change in the use of funds as stipulated in the Financial

Services Authority Regulation concerning the Report on the Use of Funds from the

Public Offering, the Issuer explains the changes;

139-140

15. Material information (if any), including investment, expansion, divestment, merger/

joint, acquisition, debt/capital restructuring, Affiliated transactions, and transactions

containing conflicts of interest, which occurred in the fiscal year, including but not

limited to:

a. The date, value and object of the transaction; 138-139

b. The name of the party conducting the transaction; 138-139

c. Type of affiliation (if any); 138-139

d. Explanation of the fairness of the transaction; and 138-139

e. Fulfillment of related provisions; 138-139

16. Amendments to statutory provisions and their significant effect on Issuer or Public

Company and their impact on financial statements (if any); and

141-142

17. Changes in accounting policies, reasons and their impact on financial statements (if

any);

142

G. GOVERNANCE OF THE ISSUER OR PUBLIC COMPANY

The corporate governance of the Issuer or Public Company including at least a brief description of:

1. The Board of Directors, including among others::

a. The duties and responsibilities of each member of the Board of Directors; 182-183

b. Statement that the Board of Directors has BOD guidelines or charter; 174




c. Procedures, basis for determining, structure, and amount of remuneration for each

member of the Board of Directors, as well as the relation between remuneration

and the performance of the Issuer or Public Company;

192-194

d. Policies and frequency of the Board of Directors’ meetings, including joint meetings

with the Board of Commissioners, and the attendance of members of the Board of

Directors in the meeting;

194-204

e. Information regarding the resolution of the previous year’s GMS, including:

i. Decision of the GMS which is realized in the fiscal year; and 153-164

ii. Reasons in the event that a decision has not been realized; 153-164

f. Information on GMS decisions in the fiscal year, including:

i. Decision of the GMS which is realized in the fiscal year; and 153-164

ii. Reasons in the event that a decision has not been realized; and 153-164

g. Performance assessment of committees that support the implementation of the

duties of the Board of Directors;

2. The Board of Commissioners, including among others:

a. The duties and responsibilities of the Board of Commissioners; 170

b. Statement that the Board of Commissioners has BOC guidelines or charter; 165-166

c. Procedures, basis for determining, structure, and amount of remuneration for each

member of the Board of Commissioners;

192-194

d. Policies and frequency of the Board of Commissioners meetings, including joint

meetings with the Board of Directors, and the attendance of members of the Board

of Commissioners in the meeting;

194-204

e. The policy of the Issuer or Public Company regarding the performance assessment

of members of the Board of Directors and the Board of Commissioners and their

implementation, including at least:

i. Procedures for carrying out performance appraisal; 186-188

ii. Criteria used; and 186-188

iii. The party conducting the assessment; 186-188

f. Performance assessment of committees that support the implementation of duties

of the Board of Commissioners; and

171

g. In the event that the Board of Commissioners does not establish a Nomination and

Remuneration Committee, the least information should include:

i. Reasons for not forming a committee; and N/A

ii. Cedures for nomination and remuneration carried out in the fiscal year; N/A

3. Sharia Supervisory Board, for Issuer or Public Company that carry out business activities

based on sharia principles as stated in the articles of association, the least information

should include:

N/A

a. Name;

b. The duties and responsibilities of the Sharia Supervisory Board; and

c. Frequency and ways of giving advice and suggestion as well as supervision

towards the fulfillment of Sharia Principles in the Capital Market for the Issuer or

Public Company;

4. Audit Committee, including among others::




a. Name and position in committee membership; 206

b. Age;; 206

c. Citizenship; 206

d. Education history; 206

e. Position history, including information:

i. The legal basis for appointment as committee members;

206

ii. Concurrent positions, either as members of the Board of Commissioners,



206


Public Company;

206

f. Period and term of service of members of the Audit Committee; 206

g. Statement of the independence of the Audit Committee; 207

h. Policy and frequency of the Audit Committee meetings, and the attendance of

members of the Audit Committee in the meeting;

208

i. Education and/or training conducted in the fiscal year (if any); and 209

j. Implementation of the Audit Committee activities in the fiscal year in accordance

with the Audit Committee guidelines or charter;

208-209

5. Other committees owned by the Issuer or Public Company to support the functions and

duties of the Board of Directors and/or Commissioners, such as the Nomination and

Remuneration Committee, including:

a. Name and position in the committee membership; 211-212

b. Age; 211-212

c. Citizenship; 211-212

d. Education history; 211-212

e. Appointment history, including information such as: 211-212

ii. The legal basis for appointment as committee members; 206

iii. Concurrent positions, either as members of the Board of Commissioners,



206


Public Company;

f. Period and term of service of the committee members; 211-212

g. Description of duties and responsibilities; 213

h. Statement that the committee has guidelines or charter; 210

i. Statement of committee independence; 213

j. Policy and frequency of the committee meetings, and the attendance of committee

members in the meeting;

214

k. Education and/or training conducted in the fiscal year (if any); and 214

l. Brief description of the implementation of committee activities in the fiscal year; 214-125

6. Corporate Secretary, including among others:

a. Name; 225

b. Domicile; 225




c. History of position, including information:

i. Legal basis for appointment as Corporate Secretary; and 225

ii. Work experience along with the period of time both inside and outside the

Issuer or Public Company;

225

d. Educational background; 225

e. Education and/or training conducted in the fiscal year; and 229

f. A brief description of duties implementation of Corporate Secretary in the fiscal

year

227

7. Internal Audit Unit, including among others:

a. Name of the head of the Internal Audit Unit; 231

b. Work history, including information:

i. Legal basis for appointment as head of the Internal Audit Unit; and

ii. Work experience along with the period of time both inside and outside the

Issuer or Public Company;

231

c. Qualification or certification as an internal audit profession (if any); 231

d. Education and/or training conducted in the fiscal year; 235

e. Structure and position of the Internal Audit Unit; 231

f. Description of duties and responsibilities; 232-233

g. Statement that the Internal Audit Unit has a guideline or charter; and 230

h. Brief description of the implementation of the Internal Audit Unit duties in the fiscal

year;

234-235

8. A description of the internal control system applied by the Issuer or Public Company, at

least regarding:

a. Financial and operational control, and compliance with other laws and regulations;

and

246

b. Review of the effectiveness of the internal control system; 246

9. Risk management system implemented by Issuer or Public Company, including at least: 246

a. General description of risk management system of the Issuer or Public Company; 240

b. Types of risk and the management method; and 245

c. Review of the effectiveness of the risk management system of the Issuer or Public

Company;

243-244

10. Important cases faced by Issuer or Public Company, subsidiaries, members of the Board

of Directors and members of the Board of Commissioners (if any), including:

a. Subject matter/lawsuit; 246

b. The status of settlement of the case/claim; and 246

c. Effect on the condition of the Issuer or Public Company; 246

11. Information about administrative sanctions imposed on Issuer or Public Company,

members of the Board of Commissioners and Directors, by the Capital Market

authorities and other authorities in the fiscal year (if any);

247

12. Information regarding the code of ethics of Issuer or Public Company includes:

a. The points of the code of ethics; 248

b. Form of socialization of the code of ethics and its enforcement efforts; and 249




c. Statement that the code of ethics applies to members of the Board of Directors,

members of the Board of Commissioners, and employees of the Issuer or Public

Company;

248-249

13. Information about corporate culture or values (if any); 250

14. A description of the employee and/or management share ownership program carried

out by the Issuer or Public Company (if any), including:

a. Number of shares and/or options; 138

b. The period of implementation; 138

c. Eligibility of employees and/or management; and 138

d. Implementation price; 138

15. Description of the whistleblowing system in the Issuer or Public Company (if any),

including:

a. How to submit a violation report; 254

b. Protection for reporters; 254

c. Handling of complaints; 255

d. Parties who manage complaints; and 255

e. Results of complaints handling, including at least:

i. Number of complaints received and processed in the fiscal year; and 255

ii. Follow-up actions for the complaints; 255

16. Spplication of Corporate Governance Guidelines of Public Company for Issuer that issue

Equity Securities, including:

a. Statement regarding recommendations that have been implemented; and/or -

b. Explanation of recommendations that have not been implemented, accompanied

by reasons and alternatives for their implementation (if any).

-

H. SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES OF THE ISSUER OR PUBLIC COMPANY

1. Information regarding the social and environmental responsibilities of the Issuer or

Public Company including policies, types of programs, and costs incurred, related to the

following aspects:

a. Environment, including:

i. The use of environmentally friendly materials and energy that can be recycled; 261

ii. The waste treatment system of the Issuer or Public Company; 263

iii. Complaints mechanism for environmental problems; and 265

iv. Certification in the field of environment owned;; 265

b. Employment practices, health and work safety, among others:

i. Gender equality and employment opportunities; 266

ii. Facilities and work safety; 268-269

iii. Level of employee turnover; 266

iv. The level of workplace accidents; 269

v. Education and/or training; 89

vi. Remuneration; and 266-267

vii. Complaints mechanism on labor issues; 269




c. Social and community development, including:

i. The use of local labor; 273

ii. Empowerment of communities around Issuer or Public Company, such as the

use of raw materials produced by the community or providing education;

272-273

iii. Improvement of social facilities and infrastructure; 273

iv. Other forms of donation; and 273

v. Communication about anti-corruption policies and procedures in the Issuer or

Public Company, as well as training on anti-corruption (if any);

273

d. Responsibility for goods and/or services, including:

i. Consumer health and safety; 275

ii. Information on goods and/or services; and 276

iii. Facilities, amount, and response to consumer complaints. 276

2. In the event that the Issuer or Public Company presents information regarding social

and environmental responsibilities as referred to in number 1. in a separate report such

as a report on social and environmental responsibility or sustainability report, the Issuer

or Public Company is excluded from disclosing information about liability social and

environmental responsibility in the Annual Report; and

v

3. Reports as referred to in number 2. shall be submitted to the Financial Services

Authority together with the submission of the Annual Report.

v

I. ANNUAL FINANCIAL STATEMENTS

The annual financial statements contained in the Annual Report are prepared in accordance

with the Financial Accounting Standards in Indonesia and have been audited by an

Accountant.

286-378

J. STATEMENT FROM MEMBERS OF THE BOARD OF DIRECTORS AND THE BOARD OF

COMMISSIONERS REGARDING ANNUAL REPORTING RESPONSIBILITY

The statement of the members of the Board of Directors and members of the Board of

Commissioners regarding responsibility for the Annual Report is prepared in accordance

with the format in the Appendix which is an integral part of the Financial Services Authority

Circular No.30/SEOJK.04/2016 concerning the Form and Content of Annual Reports of

Issuer or Public Company

280-281


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