PT Semen Indonesia Tbk (SMGR)’s plan to make its subsidiary holding company for overseas operations is predicted to cause the company’s expansion abroad more aggressive. Semen Indonesia is seeking strategic investors to become stakeholder partners of Semen Indonesia International.
To date Semen Indonesia holds 70% of Thang Long Cement Joint Stock Company (TLCC)’s shares in Vietnam with a total production capacity of 2.3 million tons of cement per year. Via TLCC, Semen Indonesia expands export market to the Philippines, Singapore, Kampuchea and Papua New Guinea. The company also eyes export markets in Australia and southern Africa.
Semen Indonesia is going to offer 49% shares of Semen Indonesia International to strategic investors. Proceeds from divestment of its subsidiary will be used to fund regional expansion. As of late 2015, Semen Indonesia’s export sales soared 144.3% to 481,943 tons compared to 2014. As of March 31, 2016 Semen Indonesia’s revenue from overseas (Asia) reached Rp 338.9 billion or 5.6% of company’s total revenue. The figure is declining in contrast to the same period last year which amounted to Rp 374.2 billion. Meanwhile, company’s assets abroad reach Rp 3.1 trillion or 7.8% of total assets. (*)
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