BP BUMN Cuts Semen Indonesia's Subsidiaries from 40 to 12 Entities

State-Owned Enterprises (BUMN) are accelerating the consolidation of the business under PT Semen Indonesia Tbk (SMGR). In the latest scheme, the Badan Pengelola (BP) BUMN says it will trim SMGR’s subsidiaries from 40 to 12 entities. The transformation step was discussed in a meeting between the head of BP BUMN, who is also the COO of the Danantara agency, Dony Oskaria, and the directors of Semen Indonesia Group (SIG) on Wednesday, 20 May. The meeting was also attended by deputy head of BP BUMN Aminuddin Ma’ruf. During the meeting, Semen Indonesia Group (SIG) was asked to continue accelerating the corporate transformation through a large-scale streamlining of business entities. The move is expected to strengthen business efficiency, sharpen focus on strategic lines of business, and improve the competitiveness of the domestic cement industry in the face of economic challenges and global industry dynamics. The meeting highlighted progress of the streamlining programme, which has now entered the execution phase in the second quarter of 2026. It includes various consolidation steps to strengthen the company’s business structure. In his remarks, Dony stated that transformation and streamlining of BUMN are important to building a healthier, more agile, and more competitive state-owned company amid evolving industry dynamics. ‘BUMN transformation must be directed to create a more efficient business structure, focus on the core business, and be able to provide greater added value for the country and society,’ Dony said. As part of the transformation, SIG is pursuing several strategic agendas, including the merger of distribution and building materials entities, consolidation of the logistics sector, integration of industrial estates into the Danantara ecosystem, and the divestment and liquidation of non‑strategic entities. This is aimed at creating a leaner, more effective business structure that supports faster and more measured decision-making. Aside from operational efficiency, SIG is ensuring that all stages of the transformation are conducted prudently and in line with good corporate governance. The company continues to coordinate with independent advisors, auditors from a Public Accounting Firm (KAP), and carries out due diligence to ensure every strategic step is undertaken in a manner that is accountable and transparent. Through a measured and ongoing transformation, SIG is expected to be better prepared to face the challenges of the national construction and infrastructure industry in the years ahead, while strengthening its contribution to Indonesia’s development agenda.