Semen Indonesia Begins the Construction of a Mortar Factory with a Capacity of 375 Thousand Tons per Year under the Management of PT Mitra Kiara Indonesia

Jakarta, August 30, 2019 – PT Mitra Kiara Indonesia began the construction of a new mortar factory with a capacity of 375,000 tons per year in Narogong, Gunung Putri, West Java. As a part of business development, this initiative reflects the commitment to meeting market demands and serves as a response to the various challenges in Indonesia’s building materials industry. Capital participation by Semen Indonesia in MKI was carried out on April 26, 2019 and has been reported to the Financial Services Authority (OJK) in the effort to maintain transparency and information disclosure to the public. Estimated to be completed by 2020, this two-hectare factory will be built on a land owned by PT Solusi Bangun Indonesia, which was acquired by Semen Indonesia in January 2019.

Groundbreaking for the construction of this MKI mortar factory was carried out on Wednesday, August 29, 2019, by President Director of Semen Indonesia Hendi Prio Santoso, Director of Business Strategy & Business Development for Cement Indonesia Fadjar Judisiawan, Director of Marketing & Supply Chain of Semen Indonesia Adi Munandir, President Director of Solusi Bangun Indonesia Aulia Mulki Oemar, and Director of MKI Mirza Whibowo Soenarto.

 “As an entity under Semen Indonesia, MKI functions to run a business in the downstream cement industry, and capture other emerging opportunities as the industry develops to improve competitive edge and acquire new sources of income. The expansion of Semen Indonesia's business into mortar production has long been planned considering its great production and market potential. We are optimistic that the 375,000 tons of mortar to be produced annually will cover 12% of the mortar market share in Indonesia, especially in Java and Bali, especially seeing that new building construction projects continue to emerge,” said Fadjar Judisiawan, Director of Business Strategy and Business Development, PT Semen Indonesia (Persero) Tbk.

Unlike most mortar manufacturers in Indonesia, MKI does not conduct its mortar business under the Original Equipment Manufacturer system, in which unlabeled mortar is sourced from another company.  Through this approach, MKI hopes to push for innovations and maintain high standard of quality control, inspired by Semen Indonesia’s approach for its conventional cement products. Mortar is composed of cement, sand, limestone, and adhesives that commonly use natural sand. However, MKI has developed a technological innovation that can process the limestone mined for Semen Indonesia’s conventional cement production to reduce natural sand usage. Reduced usage of natural sand will generate positive impact on the environment through minimized reliance on natural sand as raw material. MKI will also utilize Semen Indonesia's conventional cement production in its mortar production, which will improve efficiency in the raw materials used.