Despite Suspension, SOE Subsidiary to Pay Rp 329 Billion Dividend

PT Solusi Bangun Indonesia Tbk (SMCB) shares have been suspended by the Indonesia Stock Exchange (BEI) since last year. However, the subsidiary of PT Semen Indonesia Tbk (SMGR) is set to pay dividends to investors. SMCB has approved a dividend payout of Rp 329.3 billion, equivalent to 50% of its 2025 net profit of Rp 658.7 billion. The decision was approved during the 2025 Annual General Meeting of Shareholders (RUPST) held on Friday, 22 May 2026. SMCB President Director Rizki Kresno Edhie Hambali stated the dividend payout reflects the company’s commitment to delivering value to shareholders despite challenges in the national cement industry. “2025 was a challenging year for the cement industry, but through operational discipline, strengthened synergy with Semen Indonesia Group, and commercial transformation, the company maintained profitability and strengthened its long-term business fundamentals,” Rizki said in a statement on Sunday, 24 May 2026. Throughout 2025, the domestic cement industry faced pressure from overcapacity, rising energy and commodity costs, and intensifying market competition. These conditions impacted SMCB’s performance, with industrial volume contracting by 4.5% and national cement consumption declining by 1.5%. Nevertheless, SMCB maintained profitability with a net profit of Rp 658.7 billion, thanks to transformation strategies implemented with Semen Indonesia Group (SIG) from the second half of 2025. Management noted the transformation began showing positive results from Q4 2025 and continued into early 2026. In Q1 2026, SMCB’s sales volume grew 9%, outpacing the 5% market growth. The company’s revenue reached Rp 2.56 trillion. 56% of this revenue came from sustainable solutions, a key focus of the company’s business development. Q1 2026 net profit surged 111% to Rp 101.89 billion compared to the same period last year. The performance was driven by operational efficiencies, strengthened marketing and sales strategies, and the company’s involvement in various infrastructure projects. Focus on Efficiency and Export Expansion Moving forward, SMCB will strengthen business fundamentals through operational efficiency, cost control, and optimising alternative fuel usage to address energy price volatility. “Looking ahead, we will continue to strengthen business fundamentals, improve operational efficiency and cost control, increase alternative fuel usage, and continue our transformation to better serve customers,” Rizki said. In addition to the domestic market, SMCB is pushing exports as a new growth source. The company has completed a port and export production facility development project in Tuban, East Java, now prepared for its first export shipment to the United States. The facility has an export capacity of 500,000 to 1 million tonnes of cement annually to boost plant utilisation and strengthen global competitiveness. The RUPST also approved other agenda items, including reappointing Yasuhide Abe as Director until 2031, ratifying the 2025 financial report, appointing Liana Ramon Xenia & Rekan as the 2026 audit firm, setting director and commissioner remuneration, and amending the company’s articles of association. SMCB Share Suspension SMCB shares were trading at Rp 775 before suspension. The suspension began on 31 January 2025 due to insufficient public free float. BEI regulations require a minimum free float of 7.5%. Current public free float stands at just 1.09% to 1.3%, well below the minimum requirement. The majority of shares are held by PT Semen Indonesia (Persero) Tbk (SMGR) at 83.52% and Taiheiyo Cement Corporation at 15.16%.