Semen Indonesia Globalization

Strategy Through Inorganic

Growth

Indonesia Brand Forum (IBF) 2013

J akarta Convention Center
May 2013
SEMEN INDONESIA
INDONESIA CEMENT MARKET
564
Bag
80%
Housing
Cement-based Industry
Ready Mix
Fabricator
Projects
Bulk
20%
Retail (residential) sector is the largest
cement consumer in Indonesia
Key drivers for domestic cement
demand:
National Economic Growth
Favorable Interest Rate
Environment
Infrastructure Expansion
Per-capita Consumption
Increase from Current Low Level
Indonesia Cement Consumption History
MT
*Line shows market growth in percent
SEMEN INDONESIA
CAPACITY MAP
SMGR

2
1
3
4
5
1
1
6
7
THE PLAYERS and CAPACITY (2013)
SEMEN INDONESIA
MARKET GROWTH
This forecast implies an Semen Indonesia capacity requirement of 70 MT by
2030 (with 90% capacity utilization)
Pesimist 5.7%
Moderate 6.5%
Optimist 7.1%
Annual Growth Rates
Indonesia Cement Market Growth 2010 - 2030
MT
Sales SI
(44,0% Market Share)
Pesimist
Moderate
Optimist
161
144
124
63
SEMEN INDONESIA
MARKET CHALLENGE
MT
29,5
70,0
Build 1 New Plant
Every Year
Semen Indonesia Capacity Requirement
CHALLENGES:
Limited natural resources
Land clearance issue
Long construction time ( 3
years)
Challenges of Acquiring
Foreign Company
1. Different nature of business, company
culture, & government regulation
2. Aligning business & reporting system (e.g.
ERP system)
ACQUISITION
Maintain 44%
market share in
Indonesia
Inorganic
Growth
Increased number
of customer &
sales revenue
SEMEN INDONESIA
MARKETING STRATEGY
BRAND ACQUISITION
Market Entry Strategy
Using local existing brands, which
have strong value in their
respective market
LOCAL BRAND
Domestic Branding Strategy
Entering Vietnam market through
local existing brand (Thang Long)
ALTERNATIVE BRAND
Regional Market Entry
Strategy (S.E. Asia)
New brand will be used to enter
regional market outside Vietnam
& Indonesia
Acquisition of foreign company
Quick source of supply to
fulfill 44% Indonesia market
share
Foundation for global market
expansion
SEMEN INDONESIA
SEMEN INDONESIA SUPPLY MAP
THANK YOU
Main Office:
Main Building of Semen Gresik
Jln. Veteran
Gresik 61122 Indonesia
Phone: (62-31) 3981731-2, 3981745
Fax: (62-31) 3983209, 3972264








Representative Office:
The East Building, 18th Floor,
Jln. Lingkar Mega Kuningan Kav. E3.2 No. 1,
Jakarta 12950 Indonesia
Phone : (62-21) 5261174 5
Fax : (62-21) 5261176
www.semengresik.com