SMGR Plans Merger of 7 Subsidiaries, to be Absorbed into SID
PT Semen Indonesia (Persero) Tbk (SMGR), also known as SIG, is preparing to restructure several of its subsidiaries by merging seven companies into PT Semen Indonesia Distributor (SID).
This plan is part of the company’s business structure realignment. According to corporate documents included in SMGR’s interim financial reports, the company and several subsidiaries signed a Conditional Merger Agreement on 21 August 2026.
The seven subsidiaries to be merged into SID include PT Semen Kupang Indonesia, PT Semen Indonesia International, PT Bima Sepaja Abadi, PT Bima Sepaja Abadi Logistik, PT Sepatim Batamtama, PT Sinergi Informatika Semen Indonesia, and PT Sinergi Mitra Investama.
Under this scheme, SID will act as the surviving entity, while the seven companies will be the merging entities.
The merger is intended to organise and strengthen a more integrated business portfolio for building material distribution. Through this consolidation, SIG also aims to simplify the structure of subsidiaries that have previously operated various functions separately.
In addition to the seven companies being merged into SID, SMGR is also preparing to merge three other subsidiaries into PT Varia Usaha Beton (VUB). These three companies are PT Semen Indonesia Beton, PT Solusi Banguna Beton, and PT Readymix Concrete Indonesia. Consequently, a total of 10 subsidiaries are planned to merge into two receiving entities, namely SID and VUB.
The process for merging the seven subsidiaries into SID must still undergo several stages before becoming effective.
Based on the indicative schedule in the merger draft, the publication of the merger summary and notification to employees is scheduled for 1 September 2026. Subsequently, creditors will be given the opportunity to submit objections until 15 September 2026.
Corporate approval at the shareholder and creditor levels is targeted for completion by 18 September 2026. Following this, the circular resolution of shareholders from the seven merging entities and the signing of the Merger Deed are targeted for 1 October 2026.
The merger plan remains subject to the fulfilment of requirements and regulatory approvals, including approval from the Minister of Law regarding changes to SID’s articles of association.
Regarding labour, the merger is fundamentally not intended to result in any redundancies. The employment relationship of employees from the merging companies will transfer and continue under SID, with their length of service, rights, and obligations being strictly maintained.
Once the merger is effective, SID will gradually harmonise employment terms and human resource policies.
This consolidation step is part of SIG’s agenda to streamline its subsidiary structure, strengthen the integration of its distribution business, and increase the effectiveness of business management within the group.