annual report - sig · operated a total of 5 integrated cement plants in indarung (west sumatra),...

ANNUAL REPORT

ANNUAL REPORT

1

CORPORATE GOVERNANCE CORPORATE SOCIAL RESPONSIBILITYBUSINESS REVIEW CONSOLIDATED FINANCIAL STATEMENTS

2018 Annual Report PT Semen Indonesia (Persero) Tbk

In 2018, PT Semen Indonesia (Persero) Tbk accelerated the comprehensive transformation of its business through a variety of strategic programs and initiatives.

Building on the initiatives of the previous year, the Company focused on consolidating and centralizing various functions to improve efficiency and productivity, while also bringing all subsidiaries together within a common corporate culture.

The initiatives not only delivered concrete improvements in the Company’s performance, but also opened up new insights at all levels of the organization, as well as new market opportunities for the Company’s business development going forward.

ACCELERATED TRANSFORMATION

2

CORPORATE PROFILEMANAGEMENT REPORT MANAGEMENT DISCUSSION AND ANALYSISMAIN HIGHLIGHTS

PT Semen Indonesia (Persero) Tbk 2018 Annual Report

2018

5.6%

01

02

03

10.3%Revenue Increased

34.10%EBITDA Increased

Installed Production Capacity Increased

The Company recorded an increase in installed production capacity in 2018 as compared with the previous year

In March 2018, the Company signed a Memorandum of Understanding to work together with PT PLN (Persero), PT Semen Baturaja (Persero), PT Pupuk Indonesia (Persero), PT Patra Jasa and their subsidiaries, enabling the Company to utilize the hazardous fly ash

The Company forged synergies with 7 other SOEs and their subsidiaries for improved efficiency and performance

The Company achieved excellent results with increased production capacity, improved revenue and significantly higher net profit, while also maintaining high employee

satisfaction and safeguarding the quality of the environment.

and bottom ash (FABA) waste produced by PLN as a by product of burning coal to make cement. When processed properly, FABA can replace one third of the materials needed for Portland cement, with increased quality and durability.

Installed Production Capacity Increased

Financial Performance Growth

SOE Synergies

Revenue(Rp billion)

30,688

27,813

26,134

201820172016

EBITDA (Rp billion)

6,577

4,907

6,693

201820172016

PERFORMANCE HIGHLIGHTS

3



The Company successfully synergized the marketing strategies for all subsidiaries, resulting in more effective marketing. By doing so, the Company has been able to better identify each area’s market characteristics and align production and distribution accordingly.

The procurement function was centralized throughout the year, resulting in considerable savings as well as more standardized quality and improved production processes.

04 05Marketing Synergized

Centralized Procurement

5,448

84%

Employee in 2018

Employee Satisfaction Index

The Company made efforts to further unify the corporate culture and associated human resources policies across all subsidiaries and holding, in order to move as one towards realizing its vision.

06 Unifying the Corporate Culture

4



PRODUCTION CAPACITY

INCREASED

01

02

03

39.4%Domestic market share was maintained amidst tight competition.

In 2018, the Company owned and operated a total of 5 integrated cement plants in Indarung (West Sumatra), Tuban (East Java), Pangkep (South Sulawesi), Rembang (Central Java) and Quang Ninh Vietnam.

As of December 31, 2018, the total installed production capacity was 32.30 million tons of cement per year.

From 2014 to 2018, the Tuban, PT Semen Padang and PT Tonasa Business Units all won Level 5 Green Industry awards (the highest level) from the Ministry of Industry for their efforts to efficiently and effectively use resources in a sustainable manner in their production process.

The Company always takes environmental considerations into account in operations, as a form of concern for society.

During 2018, 2 production facilities in Rembang and Indarung VI began full operation.

Integrated Cement Plants

Installed Production Capacity

Market Share

Environmental Management

61,639

66,350

69,541

25,82

27,09227,421

20182016 2017

Company’s Sales Domestic(Thousand tons)

CompanyNational

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FINANCIAL PERFORMANCE

GROWTH

01

02

03

Rp519Basic earnings per share in 2018

Rp273Basic earnings per share in 2017

Revenue rose by 10.3% in 2018 compared to 2017, supported by higher domestic sales as well as exports to new market destinations.

Net income attributable to owner of parent entity grew by 90% to reach Rp3,079 billion in 2018, far above 2017* net income at Rp1,621 billion.

By implementing cost discipline in parallel with revenue growth, the Company was able to successfully maintain a healthy capital structure in 2018, supported by strong liquidity and cash flows. Leverage and solvency were all maintained within acceptable limits.

Overall, the Company maintained a healthy balance sheet in 2018.

The Company successfully achieved a satisfactory performance with significantly improved margins, while delivering maximal returns to shareholders.

Revenue Growth

Growth of Net Income

Higher Returns to Shareholders

Solid Financial Fundamentals

* As restated

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To attain maximum and sustainable business performance, the Company continuously advances its value chain. The Company is not only focused in perfecting its business lines in the mid-stream segment, but the whole line of businesses in the value chain to give rise to business strength.

INTEGRATEDBUSINESS LINES

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Type of Cement Products

4 Cement Product Brands

TOTAL SOLUTION

11 Supporting ProductsCement Products

• Ordinary Portland Cement (OPC)• Portland Pozzolan Cement (PPC) • Portland Composite Cement

(PCC) • Oil Well Cement (OWC) • White Cement• Portland Slag Cement• Special Blended Cement (SBC)• Portland Cement Type II• Portland Cement Type V

11 Supporting Products• Logistic

- Integrated Logistics- Land Transportation- Sea Transportation- International freight forwarder

• Trading- International Trading- General Industry Trading- General Mining Trading

• Mining & Heavy Equipment Rental• Industrial Area• Ready mix Concrete• Precast Concrete• Aggregate Product• Masonry & Other Concrete Product• Ground Granulated Blast Furnace

Slag (GGBFS)• Packaging Industry• Consultation and Services

4 Cement Brands• Semen Gresik• Semen Padang• Semen Tonasa• Thang Long Cement

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01 Accelerated

Transformation

02 2018 Performance

Highlights

10 Financial Highlights

12 Operational Highlights

13 Share Information

15 Management Report

16 Report of the Board of Commissioners

22 Report of the President Director

29 Corporate Profile

30 Corporate Identity

31 Logo Philosophy

32 Vision and Mission

32 Corporate Culture

34 Semen Indonesia at A Glance

36 Milestones

38 The Company’s Advantages

39 Business Activities

40 Products and Services

41 Supporting Facilities

42 Operations Area

44 Shareholders Structure and Subsidiaries

46 Subsidiaries

48 Organization Structure

50 Board of Commissioners’ Profile

54 Board of Directors’ Profile

58 Corporate Secretary Profile

59 Head of Audit Internal Profile

60 Total Employee

61 Shareholders Information

62 Share Listing Chronology and Chronology of Other Stock Listing

63 Capital Market Supporting Institutions

64 Company Website

67 Access and Information

68 Awards and Certifications

70 Significant Events

74 Business Development

Strategy

80 Development of Supporting Infrastructure & Building Design Competency

92 Supply Chain Management

94 Information Technology

98 Research and Development

102 Company’s Innovation Movement

105 Management

Discussion and Analysis

107 Market Overview

117 Operational Performance Review

125 Financial Performance Review

158 Human Resources Development

175 Corporate Governance

176 GCG Commitment Statement of Semen Indonesia

177 The GCG Implementation Basics

178 Objectives of GCG Implementation

178 GCG Implementation Roadmap

178 Assessment of GCG Implementation

180 Governance Structure and Mechanism

CONTENTS


181 General Meeting of Shareholders (GMS)

194 Board of Commissioners

200 Board of Directors

205 Remuneration Policy for Board ofCommissioners and Directors

208 Meeting of the Board of Commissioners, Board of Directors, and Joint Meetings

215 Affiliated Relationship between the Member of the Board of Directors, Board of Commissioners, and Majority Shareholders and/or Controller

217 Committees Under the Board of Commissioners

229 The Board of Commissioners Secretary

231 Corporate Secretary

238 Internal Audit Group

246 Independent Public Accountant

249 Risk Management

256 Code of Conduct

258 Whistle Blowing System

261 Corporate Social

Responsibility

262 Summary and Achievements

277 Commitment

264 Foundation for Implementation

264 Company CSR Vision & Mission

264 Objectives

267 Environmental Responsibility

277 Corporate Social Responsibility on Labor, Health and Safety

279 Corporate Social Responsibility towards Communities

284 Corporate Social Responsibility towards Consumers

286 Partnership Success Stories

291 Consolidated Financial

Statements

293 BOARD OF DIRECTORS’ STATEMENT LETTER

294 INDEPENDENT AUDITOR’S REPORT

296 Consolidated Statements of Financial Position

298 Consolidated Statements of Profit or Loss and other Comprehensive Income

299 Consolidated Statements of Changes in Equity

300 Consolidated Statements of Cash Flows

301 Notes to the Consolidated Financial Statements

460 Statement Letter

463 OJK Reference

No. 29/POJK.04/2016: Annual Report of Public

Company and SEOJKNo. 30/SEOJK.04/2016:

Form and Content of Annual Report of Public Company


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FINANCIALHIGHLIGHTSIn Million Rupiah 2018 2017a) 2016 2015 2014

Consolidated Statements of Financial PositionCurrent Assets 16,007,686 13,801,819 10,373,159 10,538,704 11,648,545

Investments in Associate Entities 85,638 83,665 93,985 223,952 146,980

Fixed Assets 32,748,896 32,523,310 30,846,750 25,167,683 20,221,067

Intangible Assets 1,211,666 1,269,644 1,355,080 1,134,306 1,103,697

Other Non-Current Assets 1,102,004 1,390,212 1,557,922 1,088,474 1,211,386

Total Assets 51,155,890 49,068,650 44,226,896 38,153,119 34,331,675 Current Liabilities 8,202,838 8,803,577 8,151,673 6,599,190 5,271,930

Non-Current Liabilities 10,216,757 10,219,041 5,500,831 4,113,131 4,054,815

Total Liabilities 18,419,595 19,022,618 13,652,504 10,712,321 9,326,745 Total Equity 32,736,295 30,046,032 30,574,391 27,440,798 25,004,930 Capital Expenditure 1,799,278 3,504,826 5,169,917 5,650,020 2,493,801

Working Capital, net 7,804,848 4,998,242 2,221,486 3,939,514 6,376,615

Highlights of Consolidated Statements of Profit and LossRevenues 30,687,626 27,813,664 26,134,306 26,948,004 26,987,035

Gross Profit 9,330,530 7,959,599 9,855,872 10,645,996 11,578,877

Operating Income 4,880,635 2,851,306 5,227,113 5,945,532 7,142,178

Net Profit for the Year 3,085,704 1,650,006 4,535,037 4,525,441 5,567,660

Total Comprehensive Income for the Year 3,517,374 1,314,574 4,368,344 4,662,164 5,642,318

Net Profit Attributable to Holders of Parent Entity

3,079,115 1,620,995 4,521,596 4,521,491 5,559,902

Net Profit Attributable to Non-Controlling Interests

6,589 29,011 13,441 3,950 7,758

Total 3,085,704 1,650,006 4,535,037 4,525,441 5,567,660 Comprehensive Income Attributable to Holders of Parent Entity

3,475,788 1,295,418 4,395,314 4,599,417 5,631,171

Comprehensive Income Attributable to Holders of Parent Entity

41,586 19,156 (26,970) 62,747 11,147

Total 3,517,374 1,314,574 4,368,344 4,662,164 5,642,318 EBITDA 6,576,706 4,904,308 6,962,934 7,473,542 8,491,877

Market Capitalization 68,212,480 58,722,048 54,421,696 67,619,328 96,090,624

Weighted Average of Outstanding Shares (in thousand)

5,931,250 5,931,250 5,931,520 5,931,520 5,931,520

Earnings per Share (in Rupiah full amount) 519 273 762 762 937

Financial RatiosGross Profit Margin (%) 30.40 28.62 37.71 39.51 42.91

Profit Margin (%) 15.90 10.25 20.00 22.06 26.47

Net Profit Margin (%) 10.03 5.83 17.30 16.78 20.60

EBITDA Margin (%) 21.43 17.63 26.64 27.73 31.47

EBITDA to Interest Expense (X) 6.86 6.48 19.16 20.20 22.20

EBITDA to Interest Expense & Loan Principal Payments (X)

0.87 0.62 2.98 4.64 3.40

Return on Equity (%) b) 9.87 5.68 15.57 17.11 23.10

Return on Assets (%) 6.02 3.30 10.22 11.85 16.20

Current Ratio (%) 195.15 156.78 127.25 159.70 220.95

Return on Investment (%) 13.02 11.56 18.00 22.51 29.70

Debt to Equity Ratio (%) c) 31.63 35.13 21.56 15.18 16.14

Debt to Asset Ratio (%) d) 19.28 20.42 14.16 10.51 11.30

Debt to Capital Ratio (%) 23.15 25.01 17.00 14.62 15.52a) As restated b) Equity attributable to equity holders of the parent entity c) Total Interest Bearing Liability and equity attributable to equity holders of the parent entity d) Total Interest Bearing Liability.

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Total Assets(Rp billion)

51,15649,069

44,227

38,15334,331

2014 2018201720162015

Revenues(Rp billion)

30,688 27,813

26,13426,94826,987

2014 2018201720162015

Net Profit for the Year(Rp billion)

3,086

1,650

4,5354,525

5,568

2014 2018201720162015

Return on Assets/ROA(%)

6.02

3.30

10.22 11.85

16.20

2014 2018201720162015

Return on Equity/ROE(%)

9.87

5.68

15.57 17.11

23.10

2014 2018201720162015

EBITDA(Rp billion)

6,577

4,904

6,9637,474

8,492

2014 2018201720162015

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OPERATIONALHIGHLIGHTSIndustry Unit 2018 2017 2016 2015 2014Cement

Total Production Capacity Thousand Tons 37,800 35,800 31,800 31,800 31,800 Domestic Production Thousand Tons 28,566 28,658 25,884 26,504 26,398 Regional Production Thousand Tons 1,994 2,133 2,388 1,979 1,825 Total Production Thousand Tons 30,560 30,791 28,272 28,483 28,224 Domestic Sales *) Thousand Tons 27,421 27,094 25,684 26,069 26,163 Regional Sales Thousand Tons 5,745 4,514 3,300 2,640 2,363 Total Sales Thousand Tons 33,166 31,608 28,984 28,709 28,526

Packaging Industry

Pasted Woven Production Sheet 10,012,808 3,595,598 303,786 451,071 320,225 Sewn Woven Production Sheet 12,393,648 25,802,930 25,821,680 19,834,152 33,312,965 Pasted Kraft Production Sheet 228,858,880 233,864,679 236,743,090 233,919,088 229,542,343 Total Packaging Production Sheet 251,265,336 263,263,207 262,868,556 254,204,311 263,175,533

Industrial Real Estate

Sales Volume Industrial Land Sales m2 4,349 20,577 - - 40,429 Shophouse Sales Unit - - - - 1 Rental Volume Land Rent m2 44,353 43,849 43,969 43,678 46,644 BPSP Rent Unit 13 15 15 15 15 Warehouse Rent Unit 84 67 72 63 82 Office Rent Unit - 1 1 1 1 Shophouse Rent Unit 13 13 14 14 16 House Rent Unit 3 3 2 2 3

MiningMining Services Limestone Ton 17,298,592 14,666,153 13,309,918 13,534,452 12,928,832

Clay Ton 3,531,226 3,768,303 3,563,661 3,467,709 3,542,122 Surface Miner Ton 1,220,348 1,478,785 1,500,758 1,320,135 1,267,650 Subtotal Ton 22,050,166 19,913,241 18,374,337 18,322,296 17,738,604 Other Mining Services BCM Unit BCM 775,027 813,599 85,101 898,405 630,258 Meter Unit Meter 239,637 193,220 180,937 206,085 239,607 Ton Unit Ton 15,792,285 11,193,280 8,775,740 6,864,183 5,991,442 Hour Unit Hour 31,172 31,321 5,736 71,964 83,087 Lumpsum Unit Lumpsump 38 392 - - - Rit Unit Rit - - - - - Percentage Unit Percentage - 213 - - - m3 Unit m3 - 49,507 - - - Package Unit Package - 1 - - - Ea Unit Ea - 77 - - - Ha Unit Ha 25 10 - - - Subtotal Ton 16,838,183 12,281,620 9,047,514 8,040,637 6,944,394 Total Mining BCM 775,027 813,599 27,150,077 25,186,479 23,730,046 Total Mining Meter 239,637 193,220 85,101 898,405 630,258 Total Mining Ton 37,842,451 31,106,521 180,937 206,085 239,607 Total Mining Hour 31,172 31,321 - - -Total Mining Lumpsump 38 392 - - -Total Mining Rit - - - - -Total Mining Percentage - 213 - - -Total Mining Ha 25 10 - - -Total Mining m3 - 49,507 - - -Total Mining Package - 1 - - -

Total Mining Ea - 77 5,736 71,964 83,087

*) Source: ASI Exclude domestic clinker and white cement

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SHAREINFORMATION

SHARE & VOLUME OF SMGR COMPARED TO JCI IN INDONESIA STOCK EXCHANGE

QUARTERLY SHARE PERFORMANCE2017

Period OpeningRp

HighestRp

LowestRp

ClosingRp Total Shares Volume

Market Capitalization

(Rp Billion)

1st Quarter 9,175 9,875 8,575 9,000 5,931,520,000 291,152,700 53,384

2nd Quarter 9,050 10,250 8,600 10,000 5,931,520,000 324,109,000 59,315

3rd Quarter 10,200 11,075 9,025 10,125 5,931,520,000 346,136,900 60,057

4th Quarter 10,200 11,100 9,125 9,900 5,931,520,000 251,563,100 58,722

2018

Period OpeningRp

HighestRp

LowestRp

ClosingRp Total Shares Volume

Market Capitalization

(Rp Billion)

1st Quarter 9,900 11,750 9,650 10,350 5,931,520,000 323,670,000 61,391

2nd Quarter 10,350 11,000 7,075 7,125 5,931,520,000 311,470,000 42,262

3rd Quarter 7,125 9,925 6,725 9,925 5,931,520,000 314,330,000 58,870

4th Quarter 9,925 12,025 8,600 11,500 5,931,520,000 452,670,000 68,212

SHAREHOLDERS

SMGR (share price and trading volume) vs IHSGJanuary - December 2017

Price (Rp/Share)

29/1

2/16

29/0

1/17

28/0

2/17

31/0

3/17

30/0

4/17

31/0

5/17

30/0

6/17

31/0

7/17

31/0

8/17

30/0

9/17

31/1

0/17

30/1

1/17

12,000

10,000

8,000

6,000

4,000

2,000

0

Volume IHSG SMGR

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0

Price (Rp/Share)

SMGR (share price and trading volume) vs IHSGJanuary - December 2018

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0

29/1

2/17

29/0

1/18

28/0

2/18

31/0

3/18

30/0

4/18

31/0

5/18

30/0

6/18

31/0

7/18

31/0

8/18

30/0

9/18

31/1

0/18

30/1

1/18

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

Volume IHSG SMGR

No. Shareholders Total Shares %

1. Indonesian Government

3,025,406,000 51.01%

2. Foreign Institutions 2,197,717,635 37.05%

3. Foreign Individual 562,700 0.01%

4. Domestic Individual 57,924,837 0.98%

5. Domestic Institutions 649,908,828 10.96%

Total 5,931,520,000 100%

Indonesian Government

Foreign Institutions

Foreign Individual

Domestic Individual

Domestic Institutions

0.01%0.98%

10.96%

51.01%

37.05%


Amirul Mukminin Mosque, Makassar, South Sulawesi.

16 Report of the President Commissioner

22 Report of the President Director


MANAGEMENT

REPORT


16 PT Semen Indonesia (Persero) Tbk 2018 Annual Report

The Board of Directors successfully accelerated the Company’s transformation in 2018 by successfully streamlining and consolidated the Company’s operations. The result has been sustainable end-to-end improvements which have driven both top line and bottom line growth, and will strengthen the Company going forward.

REPORT OFTHE PRESIDENT COMMISSIONER

Dear Shareholders,

2018 was a very eventful year for Semen Indonesia (the “Company”). The ongoing transformation of the Company’s operations, the formulation of a new vision by the Board of Directors with the input and approval of the Board of Commissioners, and the agreement to purchase Holcim Indonesia represent key achievements for the year which have undoubtedly created positive momentum going forward. Below we discuss these developments, along with our evaluation of our business performance and our assessment of the prospects of the Company.

In evaluating the performance of the Company, we have taken into account the Corporate Business Plan and Budget (RKAP) which was agreed upon at the beginning of the year, the achievements and performance of the Company during the year, and various other aspects such as good corporate governance implementation and the financial soundness of the Company.

Evaluation of the Company’s PerformanceDemand for cement in Indonesia improved slightly in 2018 to around 67 million tons, but was still well below total national production capacity of 107 million tons. Price increases were further limited by

the aggressive pricing of certain new players in hopes of gaining market share. The Board of Directors responded by continuing the transformation of the Company’s cost structure and operating structure to improve competitiveness, and more radically by rethinking the Company’s vision for the direction of the business.

Overall, it is the opinion of the Board of Commissioners that the Board of Directors successfully carried out these objectives. There has been demonstrable improvement with centralization of the procurement, marketing and supply chain functions as well as production improvements. The Board of Commissioners has also been pleased to see that the Board of Directors made progress in further consolidating and uniting the subsidiary companies into one culture.

The improvements in the Company’s 2018 sales, revenue, EBITDA and profit, which were achieved despite intense market competition, reflect the internal progress made through redefining the new business model and cost efficiency initiatives.

Meanwhile, the Company’s new vision of becoming a Regional Leader in Building Material Solutions opens up new markets and growth prospects, effectively



REPORT OFTHE PRESIDENT COMMISSIONER

Sutiyoso President Commissioner



shifting the business model from cement production to becoming a solution provider. This enormous shift will take time to implement but we are confident that it is the right approach.

Finally, the Board of Directors decisively took advantage of the unexpected opportunity to purchase Holcim, the third largest cement producer in Indonesia. This acquisition strategically strengthens the Company’s product portfolio, especially in building materials, as well as enhancing the Company’s production capacity in the key geographical region of West Java. Overall, this acquisition will enlarge the Company’s footprint and strengthen its foundation in the path to its new vision.

The Business Prospects of the CompanyThe Indonesian cement industry is heading into what is predicted to be a difficult year in 2019, with lower domestic consumption forecasted and possible headwinds related to the political climate that may reduce investment due to uncertainty. In addition, integration of the Holcim acquisition is a challenge on its own. Bearing these factors in mind, the Board of Commissioners believes that the cautious outlook of the Board of Directors is therefore warranted. However, we have confidence in the management’s proposed strategy and believe that the Company is on the right track.

For 2019, the management will focus on four business priorities, namely: continued centralization and streamlining of functions, products and service development including with regard to building materials, sustainable management of stakeholders and partners, and transformation of the Company’s corporate culture. These priorities aim to improve the Company’s overall efficiency, strengthen its portfolio, maintain good stakeholder relations, and increase employee engagement and efficiency as well as instilling a market-centric mindset.

In doing so, the Board of Commissioners has reminded the Board of Directors to take care in rationalizing the Company’s assets to include Holcim, and to prudently manage the debt load and cash flow in the interests of business continuity.

Corporate Governance OversightDuring 2018, the Board of Commissioners carried out its supervisory duties with the active input and assistance of the Audit Committee, the Strategy, Risk Management and Investment Committee, and the Nomination and Remuneration Committee. We also held regular meetings and discussions with the Board of Directors, and monitored the Company’s good governance mechanisms including the whistleblowing system of the Company, which has been adequately implemented in our view.

Overall, we are satisfied that good corporate governance has been adequately implemented and we believe that the ongoing implementation of digital reporting systems and integrated information management systems should help increase reporting transparency and accuracy even further.

Changes in the Composition of the Board of CommissionersIn accordance with the resolutions of the Annual General Shareholder Meeting held on the April 30, 2018, the shareholders honorably discharged Hambra as a Commissioner of the Company and as per regulations, ratified the resignation of Djamari Chaniago as an Independent Commissioner of the Company. To replace them, the shareholders subsequently appointed Hendrika Nora Osloi Sinaga as a Commissioner and Mochamad Choliq as an Independent Commissioner. The Board of Commissioners thanks Hambra and Djamari Chaniago for all their efforts during their term of office as Commissioners, and welcomes Hendrika Nora Osloi Sinaga and Mochamad Choliq.



Sustainably Serving the PeopleAs a leader in the Indonesian market and a State-Owned Enterprise, the Company is keenly aware of its mandate to empower its Indonesian consumers and support the Indonesian nation to advance. Apart from striving to deliver good financial performance, the Company continued to pursue various initiatives that have the potential to deliver environmental and social benefits, such as efforts to minimize fossil fuel consumption through technological advances. The Company is also exploring and piloting various ways to use waste materials, such as fly ash and household waste, either as production material or as energy sources. More details are available in this Annual Report as well as the Company’s Sustainability Report.

Appreciation & ClosingClosing out a year of hard work, the Board of Commissioners wishes to thank the Board of Directors and all of the employees for their hard work and efforts to sustainably advance the Company. We also wish to express our gratitude to all the shareholders and stakeholders for their confidence and support. It is our sincere hope that the new vision and direction of the Company will create sustainable value and guide the Company’s transformation into becoming a world-class organization, one that can contribute even more to the development of the country while also maximizing profitability.




BOARD OFCOMMISSIONERS



Seated from Left to Right

Nasaruddin UmarIndependent Commissioner


Hendrika Nora Osloi SinagaCommissioner

Astera Primanto Bhakti Commissioner

Standing from Left to Right

Wahyu HidayatCommissioner

Sony SubrataCommissioner

Mochamad CholiqIndependent Commissioner



This eventful year saw the transformation of the Company’s organization, business processes and human resources gain momentum towards becoming a nimble and efficient market-focused company, one able to identify and seize new opportunities going forward.

REPORT OFTHE PRESIDENT DIRECTOR

Dear Shareholders,

I am pleased to report that the Company made significant progress in transforming from a production-oriented company to become a market-centric company in 2018. The year culminated with the unexpected opportunity to acquire Holcim Indonesia, the third largest cement producer nationally, the purchase of which was finalized in February. Equally or even more important, we have established a new vision for the Company that completely redefines Semen Indonesia and its path forward, which I will discuss below.

PERFORMANCE IN 2018The persistent oversupply in the Indonesian cement market continued throughout 2018, leading to fierce price competition that was ameliorated only slightly by improvement in Average Selling Price (ASP). Despite these conditions, Semen Indonesia successfully increased its sales by 1.2% to 27.4 million tons of cement, maintaining its position as market leader with 39.4% of national sales.

Supported by ASP appreciation and various internal transformation initiatives, the Company successfully grew consolidated revenue by 10.3% to Rp30.9 trillion. Operating income improved by 71.2% to Rp4.9 trillion and operating margin rose from 10.25% to 15.90%,

supported by a 12.96% reduction in cost across the organization. EBITDA showed similar improvement, growing 34.1% to reach Rp6,577 billion in 2018.

The Company delivered profit attributable to the owner of the parent entity amounting to Rp3,079 billion, a 9% increase from Rp1,621 billion in 2017. Basic earnings increased to Rp519 per share from Rp273 per share in the previous period.

These improvements were the direct result of consolidation and centralization within the organization. Specifically, the procurement, marketing and supply chain functions have been centralized, resulting in time and cost savings. Among others, we are now able to negotiate bulk deals with key vendors for better prices and product quality standardization. On the marketing side, we eliminated intra-competition among Group subsidiaries by using the “least cost to serve” principle to determine which unit would serve each customer.

Similarly, better analysis and coordination of supply chain logistics with customer needs has enabled the Company to transport resources at the most efficient cost from point A to point B, resulting in significant savings as transport costs are one of the biggest cost elements of the business.



Hendi Prio SantosoPresident Director



In parallel, the Company is in the process of transforming and reorganizing its structure and business processes, including the organization and digital infrastructure, in alignment with our evolving business requirements. In doing so, the management recognizes that human resources are a key part of the transformation and has therefore been actively engaging with employees to communicate expectations and objectives along the way towards getting employee buy-in. We have also focused on uniting all subsidiary units within a common corporate culture, shared values and a more uniform working framework.

Altogether, these initiatives have sustainably improved the cost structure, coordination and synergy between holding and subsidiaries.

A NEW VISION FOR THE COMPANYGlobally, consumption of Portland cement is declining in favor of downstream cement-based construction products such as precast concrete. This trend, combined with rising competition in Indonesia for what is in essentially a shrinking global market, demands that Semen Indonesia rethink its business.

After a period of intense discussion and reflection during the year, the Board of Directors formulated a new blueprint and an exciting new vision which is designed to shift the Company’s business model for greater growth. The new vision, “To Become the Biggest Provider of Building Material Solutions in the Region”, signals a major turning transformation in thinking and operation. With this vision, Semen Indonesia is no longer in the business of producing cement but rather is in the business of delivering total solutions for building materials, which is a substantially larger market.

As the foundation to achieve this vision, strong distribution channels and market presence are important. The aforementioned acquisition of Holcim Indonesia will strengthen the Company’s national footprint and portfolio, especially in the building material business where Holcim Indonesia has existing capabilities, thus enhancing Semen

Indonesia’s portfolio towards become a total solution provider in the long term.

PLANS FOR 2019Guided by our ambitious new vision, we intend to continue with the next phase of the transformation plan towards becoming a market-centric organization that is Indonesia’s “Leading Company in Building Material”. We will drill down on all levels to increase synergies between all subsidiaries and units, increase standardization, leverage technological advances to increase efficiency, push centralized data gathering and analysis, support the Company’s human resources development and nurture a performance-based corporate culture, and reach out further to distributors and end-customers through both physical and digital channels.

At the same time, we caution that cement demand growth is predicted to be lower next year in a climate fraught with potential political and economic volatility. It will also take time to integrate the Company’s strategic acquisitions, on top of the Company’s ongoing transformation process. In the long term however, we strongly believe that the developments of 2018 will sustainably improve Semen Indonesia’s competitive position, enabling it to deliver value for the nation and empowering its consumers in keeping with its mandate as a State-Owned Enterprise.

ENHANCING THE IMPLEMENTATION QUALITY OF GOOD CORPORATE GOVERNANCEIn 2018, the Management strove to further improve the implementation standards for GCG practices across all holding and subsidiary companies. The centralization and digitization that is underway and that will continue to be carried out, will strengthen the quality of GCG implementation in the Company as the Management will thus be able to better monitor the operational activities and performance of the Company as a whole. From 2016 until 2018, the Company was assisted by PT Sinergi Daya Prima to measure its GCG implementation using the same methodology as the methodology used in the 2014 assessment. The Company achieved a GCG score in 2018 of 93.401, which is its highest score since



it began measuring performance. These results show that the standard of corporate governance implementation has improved, in accordance with our stated commitment.

CHANGES TO THE BOARD OF DIRECTORSAt the April 30, 2018 Annual General Meeting of Shareholders, the shareholders honorably discharged Mr. Ahyanizzaman as Director of Marketing and Supply Chain, and subsequently appointed Mr. Adi Munandir as his successor. The Board of Directors conveys its thanks to Mr. Ahyanizzaman for his many contributions to the Company during his term of service.

CLOSING REMARKSIt is clear that we have much work ahead of us in order to realize the Company’s potential and achieve our vision of becoming the leader in building material. This challenge is an exciting one that calls on us to fundamentally transform from the ground up, evolving from a cement producer to become an agile, digitally-enabled solution provider that is able to follow and even anticipate the market.

On behalf of the Board of Directors, I would like to thank the shareholders for their support and confidence, along with all the employees of the Company for their hard work. Our deepest appreciation also goes out to the Company’s many business partners and of course, last but not least, our valued customers who have purchased our products and, we hope, will continue to do so for many years ahead.

Hendi Prio Santoso President Director



BOARD OF DIRECTORS

Seated from Left to Right

Agung YunantoDirector of HR & Legal

Fadjar Judisiawan Director of Business Strategy & Development

Tri AbdisatrijoDirector of Engineering and Projects

Benny WendryDirector of Production

Standing from Left to Right

Doddy Sulasmono DiniawanDirector of Finance


Adi MunandirDirector of Marketing & Supply Chain


28 PT Semen Indonesia (Persero) Tbk 2018 Annual Report28 PT Semen Indonesia (Persero) Tbk Laporan Tahunan 2018

CORPORATE

PROFILE


292018 Annual Report PT Semen Indonesia (Persero) Tbk 29Laporan Tahunan 2018 PT Semen Indonesia (Persero) Tbk

30 Corporate Identity

31 Logo Philosophy

32 Vision and Mission

32 Corporate Culture

34 Semen Indonesia at A Glance

36 Milestones

38 The Company’s Advantages

39 Business Activities

40 Products and Services

41 Supporting Facilities

42 Operations Area

44 Shareholders Structure and Subsidiaries

46 Subsidiaries

48 Organization Structure

50 Board of Commissioners’ Profile

54 Board of Directors’ Profile

58 Corporate Secretary Profile

59 Head of Audit Internal Profile

60 Total Employees

61 Shareholders Information

62 Share Listing Chronology and Chronology of Other Stock Listing

63 Capital Market Supporting Institutions

64 Company Website

67 Access and Information

68 Awards and Certifications

70 Significant Events



Company Name PT Semen Indonesia (Persero) Tbk.

Previous Company NamePT Semen Gresik (Persero) Tbk

Establishment 25 March 1953

Shareholders51.01% Government of Indonesia48.99% Public

Line of BusinessCement Industry

Address of PT Semen Indonesia (Persero) Tbk1. South Quarter, Tower A, 19th-20th Floor Jl. R.A. Kartini Kav. 8, Cilandak Barat Jakarta Selatan 12430, Indonesia T. +62-21-5261174-5 F. +62-21-5261176

2. Gedung Utama Semen Indonesia Jalan Veteran, Gresik 61122 Jawa Timur, Indonesia T: + 62-31-398-1732 F: + 62-31-398-3209

Email: [email protected] Website: www.semenindonesia.com

Legal BasisGovernment RegulationNo. 132 year 1961

Shares Code SMGR

Shares ListingThe Company’s share was listed on the Indonesia Stock Exchange (previously Jakarta Stock Exchange) through an IPO exercise on July 8, 1991

SWIFT CodeIBBKIDJA

Authorized Capital Rp2,000,000,000,000

CORPORATEIDENTITY

Issued and Fully Paid Capital Rp593,152,000,000

@semenindonesia @semenku

@semenindonesiagroup @semenindonesia



Logo of PT Semen Indonesia (Persero) TbkThe logo of Semen Indonesia is a very important asset. The logo symbolizes the characteristics of Semen Indonesia. Not only is the logo visual representation, it also stands for Semen Indonesia and its core values.

The logo of Semen Indonesia shall be used only in its recognized forms, so as to maintain its identity and integrity.

Logo Philosophy Triangle Form The inverted pyramid form signifies that work is oriented towards good will and faith in God. A triangle form is also a symbol of strength and perfection

Layered Roof FormAn architectural form widely known in Asia, the layered roof form is a symbol for protection or patronage.

Number of Roof Lines - 9The number 9 (nine) is the highest single digit number, and is known as the number for perfection and the desire to reach perfection.

Color - RedRed symbolizes courage, enthusiasm, motivation, determination and passion to always work hard. The red-colored areas is shaped like a upward-pointing arrowhead, symbolizing a continuously improving (upward trend) performance.

Color - BlackBlack symbolizes depth, stability and strong confidence. These are the strong values in support of all work processes.

Red-Colored MDepicting a 3-pillar foundation, representing the strengths of the 3 (three) entities that originally established Semen Indonesia.

LOGOPHILOSOPHY



• Developing cement business and related industries oriented customer satisfaction

• Realizing international standard company with competitive advantages and synergies to increase a sustainability added value

• Realizing social responsibility and environmentally friendly

• Providing the best value to the stakeholders

• Build competencies through human resource development

VISION

MISSION

Being a Leading International Cement Company in Southeast Asia

Statement of Vision, Mission and Corporate Culture are determined by the Board of Directors on October 25, 2014 and approved by the Board of Commissioners on October 25, 2014.

REINFORCEMENT OF CORPORATE CULTURE

The Company continuously strives to improve understanding of the corporate culture that has been established as the foundation of the Company’s work. With the same corporate culture, it is expected that the Company’s pace will become more synergistic and together will achieve the established vision. One of the efforts is strengthening the CHAMPS culture.

VISION, MISSION AND CORPORATECULTURE



CHAMPS: New Values-New Key Behaviors

• Diligent and flexible for the best result

• Always implement new and better work procedure

• Provide best services and value added to internal and external customers

• Open minded and acting first in the interest of Semen Indonesia Group

• Positive and responsible cooperation to maximally achieve Company objective

• Act according to agreement and promises

• Honest, sincere and responsible

CHAMPS

“We Are The CHAMPS!”Belief

MILITANCESINERGY INTEGRITY3 Values

7 Key Behaviors

The CHAMPS culture continues to be strengthened to all employees as a form of employee identity. This Corporate Culture is a synergy of the Corporate Culture that exists throughout the Company and its Subsidiaries. The process of establishing a corporate culture begins with the awareness that the Company needs to bring the entire Group of Companies together.

Strengthening the culture through the internalization of such culture is part of the paradigm shift in Human Capital (HC) management. Whereas previously this emphasized efforts in a supporting function, it now concentrates on functioning as a strategic business for the Company, requiring the alignment of HC management strategies with the business strategies of the Company.

To ensure paradigm shift, the Company, through the Human Capital Directorate, since 2017 onwards, has identified three areas of strategic change that must be implemented:

1. Change the HC mindset in conducting business

2. Reviewing and Improving the Human Capital Master Plan, through improvement of HC Management System

3. Improving HC Competency Development Patterns

The strategy used to achieve these objectives and to realize the strategic change, is by improving the entire HC management system, consisting of five groups of systems, namely:1. High performing human capital

management system2. Leadership capability enhancement3. Technical capability enhancement4. Knowledge enterprise enablement5. CHAMPS Culture crystallization

The changes in the paradigm, strategies, initiatives and objectives of the Company’s HC management are illustrated in the chart below:



SEMEN INDONESIAAT A GLANCE

PT Semen Indonesia (Persero) Tbk, previously known as PT Semen Gresik (Persero) Tbk, is a company engaged in cement industry. Inaugurated in Gresik on August 7, 1957 by the first President of the Republic of Indonesia, the Company’s initial plant had an installed capacity of 250,000 tons cement per year.

On July 8, 1991, Semen Gresik listed its shares on the Jakarta Stock Exchange and the Surabaya Stock Exchange (now Indonesia Stock Exchange). The Company is the first SOE to go public, offering 40 million shares to the public. The composition of shareholders at the time was: Government of RI 73% and public 27%.

In September 1995, the Company exercised Rights Issue I, which changed the shareholding composition to 65% Government of RI and 35% shares owned by the public. On September 15, 1995, PT Semen Gresik was consolidated with PT Semen Padang and PT Semen Tonasa. At that time, the Company’s total installed capacity was 8.5 million tons cement per year. On September 17, 1998, the Government of RI divested 14% of its stake in the Company through an open tender offer, which was acquired by Cemex S.A. de C.V., a global cement company based in Mexico. The shareholding composition thus changed to 51% the Government of RI, 35% public, and 14% Cemex. Subsequently, on September 30, 1999 the shareholding composition changed to: Government of RI at 51.01%, public 23.46% and Cemex 25.53%.

On July 27, 2006, Cemex Asia Holdings Ltd. sold its shares to Blue Valley Holdings PTE Ltd., thereby changing the shareholding composition of the Company to Government of RI 51.01%, Blue Valley Holdings PTE Ltd. 24.90%, and the public 24.09%,

In March 2010, Blue Valley Holdings PTE Ltd. divested all of its shares through private placements. The Company’s shareholding composition then changed to Government of RI 51.01% and the public 48.99%.

On April 2012, the Company completed the construction of the Tuban IV plant with an installed capacity of 2.5 million tons. Following the commissioning stage, the new plant was handed over in July 2012, followed by the inauguration of its commercial operations in October 2012.

Further, in the third quarter of 2012, the Company has also completed the Tonasa V plant in Sulawesi. The new plant with 2.5 million tons capacity has gone through the commissioning stage since September 2012, and it was targeted for commercial operations in the first quarter of 2013.

On December 18, 2012, the Company officially acquired a 70% stake in the Thang Long Cement Joint Stock Company (TLCC) from Hanoi General Export-Import Joint Stock Company (Geleximco) in Vietnam, with 2.3 million tons capacity. Through this corporate action, the Company became the first Indonesian multinational SOE.

On December 20, 2012, the Company officially became a Strategic Holding Company. Concurrently, it changed its name from PT Semen Gresik (Persero) Tbk to PT Semen Indonesia (Persero) Tbk.

On December 20, 2013, the Company signed the deed of establishment of a joint venture company, PT Krakatau Semen Indonesia (KSI), which will build a plant to process the slag powder waste as raw material for cement production.

Subsequently, on December 24, 2013, the Company continued its Corporate Transformation process and solidified its role as a Strategic Holding by forming a new subsidiary, PT Semen Gresik.



In 2014, the Company embarked on another business development program by commencing the construction of 2 cement plants in Padang and Rembang. This was followed by the decision to commence the construction of a new plant in Aceh. The Company, through PT Krakatau Semen Indonesia, also commenced with the construction of a ground granulated blast furnace slag plant at Cigading.

In 2016, as part of the expansion plans in cement and non-cement business, the Company established PT Semen Indonesia International (SII), PT Semen Indonesia Aceh (SIA) and PT Semen Kupang Indonesia (SKI), and changed the name of PT SGG Prima Beton to PT Semen Indonesia Beton (SIB).

In 2017, the Company established a joint venture which engaged in the building materials sector, namely PT Semen Indonesia Building Industry. The establishment of this joint venture was one of the

Company’s efforts to capture growth opportunities in the building materials industry, which can be a new growth engine while enhancing synergy among the subsidiaries. In addition, two new factories of the Company namely Rembang Plant in Central Java and Indarung VI Plant in West Sumatra entered its commercial operations period, which have capacity of 3 million tons/year each.

On November 12, 2018, the Company recorded a historic milestone with the signing of the Conditional Sales Purchase Agreement (CSPA) for the acquisition of 80.6% shareholding in PT Holcim Indonesia Tbk from LafargeHolcim Ltd. The acquisition transaction is scheduled for completion in the first quarter of 2019. Post acquisition, PT Semen Indonesia Tbk will become one of the largest cement producers in Southeast Asia and among the top 10 in the world, with total installed capacity of 53 million tons per annum.



1957 1991 1995

19981999

2006

The Company was established with production facility of 250,000 tons per annum (design capacity).

Cemex entered as strategic partner with share ownership of 14.0%. The Company’s ownership structure changed to:Government of Indonesia, 51%Public: 35%Cemex: 14.0%Market capitalization stood atRp4.9 trillion

Initial Public Offering (IPO). Market capitalization stood at Rp0.63 trillion. The Company’s ownership structure:Government of Indonesia: 73%Public: 27%

Cemex increased its ownership to 25.5%. The ownership structure changed to:Government of Indonesia: 51%Public: 23.5%Cemex: 25.5%Market capitalization stood atRp6.6 trillion

For the Acquisition of national cement companies, PT Semen Padang (Persero) and PT Semen Tonasa (Persero).

Blue Valley Holdings purchased Cemex’s share ownership of SGMR. Market capitalization value: Rp21.5 trillion.Ownership:Government of Indonesia: 51%Public: 24.1%Blue Valley: 24.9%

MILESTONES



2014

2010

2015

2012

2016

2013

• Commenced physical construction of new plants in Rembang and Padang (Indarung VI).

• Established PT Sinergi Informatika Semen Indonesia.

Blue Valley Holdings divested its entire shares in SGMR. Market capitalization (April 2010): Rp72.31 trillion.Ownership:Government of Indonesia: 51%Public: 49%

• The establishment of a joint venture company, PT Semen Indonesia Industri Bangunan to tap into the opportunity for the growth of building material industry as the new source of revenue, as well as to improve the synergy between subsidiaries.

• The commercial operations of Rembang Plant in Central Java and Indarung VI Plant in West Sumatra, which have a capacity of 3 million tons/year each.

Commenced new plant development in Aceh.

• Capitalization as of December 31, 2012 stood at Rp94 trillion. Production capacity (installed) reached 28.5 tons per annum.

• Completed the construction of 2 cement plants.

• Acquired Thang Long Cement Joint Stock Company (TLCC) in Vietnam.

• Transformed into Strategic Holding Company. Changed its name to PT Semen Indonesia (Persero) Tbk.

Established PT Semen Indonesia International (SII), PT Semen Indonesia Aceh (SIA), and PT Semen Kupang Indonesia (SKI) as well as changed the name of PT SGG Prima Beton to PT Semen Indonesia Beton (SIB), as part of expansion in cement and noncement fields.

Established PT Krakatau Semen Indonesia, a joint venture company for slag powder waste management to be re-used as raw material in cement production. Established PT Semen Gresik continuing Corporate Transformation journey.

Signing of the Conditional Sales Purchase Agreement (CSPA) for the acquisition of 80.6% shareholding in PT Holcim Indonesia Tbk from LafargeHolcim Ltd., bringing the total installed production capacity to 53 million tons per annum, the largest in Southeast Asia.

2017 2018



The Company’s excellence advantages also includes the following features:

Distribution Reach1The Company’s distribution excellence is backed by 21 supporting warehouse units, 25 strategically located packing plants, and 223 national distributors that guarantee the stability of cement supply anywhere in the archipelago. In Vietnam, TLCC has 37 distributors throughout North, Central, and South Vietnam.

Raw Materials2The Company’s mining sites have material reserve with the best quality and sufficient amount to ensure long-term continuity of cement production.

Brand Image3The Company is the owner of three reputable brands. It also controls the largest domestic (Indonesia) market share of 39.4%, which reflects the strength of the Company’s corporate and brand image.

Financial Fundamentals4The Company has maintained strong financial fundamentals, thus providing ample resources to expand production capacity and venture into other related businesses.

THE COMPANY’SADVANTAGES



The business activities are in cement, production and distribution of cement products and downstream cement products.

PRODUCTION PROCESS

Preheat

Coal

Rotary Klin

Clinker

Blending

Raw

Clinker

Cement

Roller Press

Cement Cement

Cement

Transporting

BUSINESSACTIVITIES



Product TypesThe Company produces several cement types. Its flagship product is Portland Cement Type II-V (Non-OPC). The Company also produces specific types and mixed cement products for limited usage. The following lists all cement types and their usage.

PRODUCTS AND SERVICES

Portland Cement Type I Also known as Ordinary Portland Cement (OPC), hydraulic cement that widely used in general constructions, such as building construction without specific requirements, among others are residential, high-rise buildings, runways and highways.

Portland Cement Type IIPortland Cement Type II is resistant to sulfate and medium hydration heat. Its usage includes seaside buildings, in wetlands, docks, irrigation channels, mass concrete, and dams.

Portland Cement Type VPortland Cement Type V is used for the construction of buildings on high-sulfate land/water and is highly suitable for waste management plant installation, underwater construction, bridges, tunnels, ports, and nuclear power plants.

Special Blended Cement (SBC)Packed in bulk, this specific cement was developed for Surabaya-Madura (Suramadu) bridge mega project and is customized for constructions in saltwater environment.

Portland Slag CementPortland Slag Cement is cement with specifications above type IV, specially formulated for the ready mix and precast industries for the needs of large-scale project development such as high rise buildings, fly over, underground tunnels, etc.

Notes:* Portland Cement Type I and PPC are available in the retail market. While other types are only produced by order in a certain

quantities.* The products are marketed mainly for domestic market needs and others are exported. Most products are marketed in the form of

zak packaging, while the rest are sold in bulk form.

Portland Pozzolan Cement (PPC)Hydraulic cement produced by grinding slags, gypsums, and pozzolans. PPC is used in general constructions and buildings that require sulfate and medium hydration heat resistance, such as: bridges, highways, houses, docks, mass concrete, dams, irrigation, and fully plated foundation.

Portland Composite Cement (PCC)Hydraulic binder cement produced by grinding slags, gypsums, and one or more inorganic materials. The cement type is suitable for general concrete construction, as combination of bricks, plastering, drainages, construction of specific buildings such as pre-cast concrete, pre-press concrete and paving blocks.

Oil Well Cement (OWC) Class G HRCOWC is a specific type of cement used in oil and natural gas wells for underwater oil wells construction. The production of OWC includes Class G, High Sulfate Resistant (HSR) or Basic OWC. For usage in certain depth and temperature, additive can be added.

Super White CementA high-quality white cement product for interior and exterior decorative purposes, and for covering the joints of ceramic tiles, profiles, and others. White cement is produced from choice raw materials with low (less than 1%) iron and magnesium oxide content, with different degrees of whiteness measured according to different standards.



SEMEN PADANG

Operates five cement mills with design capacity of 10.9 million tons cement per annum, located in Indarung, West Sumatra. Semen Padang also operates eight cement packing plants in Teluk Bayur, Belawan, Batam, Tanjung Priok, Ciwandan, Malahayati, Lhokseumawe, Bengkulu and Lampung, as well as 14 supporting warehouse units and one port.

Teluk Bayur PortCapacity : 40,000 DWTDepth : 12.5 mLength : 150 mTotal Docks : 3

Dumai PortCapacity : 35,000 DWTDepth : 9.5 mLength : 180 mWidth : 40 m

SEMEN TONASA

Operates four cement mills with design capacity of 7.6 million tons cement per annum, located in Pangkep, South Sulawesi. Semen Tonasa also operates and owns ten cement packing plants equipped with jetties in Biringkassi, Makassar, Mamuju, Sofifi, Palu, Bitung, Kendari, Samarinda, Ambon and Celukan Bawang Bali. Semen Tonasa has 5 supporting warehouses.

Biringkassi PortType : Line JettyLength : 570.5 meterWidth : 45 meterCapacity : 30,000 DWTDepth : 13 M LWS

SUPPORTING FACILITIES

SEMEN GRESIK

Operates five mills with design capacity of 17.4 million tons cement per annum, located in Tuban, East Java and at Rembang - Central Java. Semen Gresik also operates and owned two ports, namely Semen Gresik Special Ports in Tuban and Gresik. Semen Gresik operates 2 units of supporting warehouse across Java and Bali, and operates five packing plants in Ciwandan, Banyuwangi, Sorong, Balikpapan, Pontianak and Banjarmasin.

Tuban Special Port Dock IType : Line JettyLength : 175 meterWidth : 45,5 meterCapacity : 7,000 DWTDepth : 8 M LWS

Dock IIType : Line JettyLength : 225 meterWidth : 45,5 meterCapacity : 40.000 DWTDepth : 13 M LWS

Gresik Special PortType : Line JettyLength : 290.8 meterWidth : 15.5 meterCapacity : 10,000 DWTDepth : 9 M LWS

THANG LONG CEMENT

Operates one mill with design capacity of 2.3 million tons cement per annum, located in Quang Ninh province, has its own port (Thang Long Jetty) with vessel load capacity of up to 30,000 DWT. For greater load capacity, the company uses Cai Lan seaport located approximately 3 km from the company’s port. In addition, TLCC operates grinding mills located on the outskirts of Ho Chi Minh City. TLCC also has 3 cement packing plants (rotary packer).

Thang Long PortType : Line JettyLength : 160 meterCapacity : 30,000 DWTDepth : 9 M LWS

Cai Lan PortType : Line JettyLength : 826 meterCapacity : 75,000 DWTDepth : 12 M LWS



Grinding Plant

4 Units Cement Mill

Kiln 5 Units

Cement Mill 11 Units

Kiln 5 Units

Cement Mill 8 Units

Kiln 1 Unit

Cement Mill 1 UnitMyanmar

LaosNaypyidaw

Bangkok

Phnom Penh

Kuala Lumpur

Singapore

Jakarta

Jawa

Kalimantan

Thailand Vietnam

Brunei

Cambodia

Malaysia

Indonesia

Grinding Plant

1 Unit Cement Mill

Bandar Seri Begawan

Sumatera

Grinding Plant

1 Unit Cement Mill

Grinding Plant

1 Unit Cement Mill

OPERATIONSAREA



Papua

Kiln 4 Units

Cement Mill 6 Units

Sulawesi Maluku

Dili

Manila

Philippines

East Timor

Integrated Cement Plant 5 Locations

Kiln 15 Units Cement Mill 26 UnitsGrinding Plant 4 Locations Cement Mill 7 Units

Warehouse 21 Locations

Packing Plant 25 Units

Sea Port 7 Locations



PT Semen Kupang

Indonesia* 99.48%

PT Semen Indonesia

Aceh* 52.28%

TLCC70.0%

PT Semen Gresik 99.96%

PT Semen Tonasa 99.99%

PT Semen Padang 99.99%

* Still in the construction phase

Government of Republic of Indonesia

51.01%

Public48.99%

SHAREHOLDERS STRUCTUREAND SUBSIDIARIES



PT Semen Indonesia Beton 99.99%

PT Sinergi Mitra Investama 97%

100%

100%

65%

55%

PT Sinergi Informatika Semen Indonesia

PT Semen Indonesia Logistik

PT Kawasan Industri Gresik

Industri Kemasan Semen Gresik

United Tractor Semen Gresik

PT Krakatau Semen Indonesia

PT Semen Indonesia Industri Bangunan

PT Semen Indonesia International 100%

73.65%

60%

50%

SIIB



SUBSIDIARIES

The Company has established subsidiaries, associates and affiliates that are engaged in cement related businesses, from cement production, distribution to products usage.

Name % Ownership Line of Business Total Assets(Rp)

Operating Year Address

Subsidiaries

PT Semen Padang 99.99% Cement Producer 9,992,063,002,000 1913 Indarung, Padang 25237, Sumatera BaratTel. : (0751) 815250 Fax. : (0751) 815590e-mail : [email protected]

PT Semen Gresik 99.96% Cement Producer 5,622,947,595,000 2017 Jl. Veteran Gresik 61122Jawa Timur, IndonesiaTel. : (031) 398-1732Fax. : (031) 398-3209www.semengresik.co.id

PT Semen Tonasa 99.99% Cement Producer 8,742,767,287 1968 Biringere, Pangkep, Sulawesi Selatan 90651 Tel. : (0410) 312345 Fax. : (0410) 310113e-mail : [email protected]. sementonasa.co.id

PT Thang Long Joint Stock Company (*)

70.00% Cement Producer 2,480,513,733,000 2008 Le Loi Commune - Hoanh Bo District - Quang Ninh, VietnamTel. : 84 (03) 33691325 Fax. : 84 (03) 33691326 www.thanglongcement.com.vn

PT Sinergi Mitra Investama

97.00% Management and Optimization of Assets owned by PT Semen Indonesia (Persero) Tbk.

46,253,266,000 2012 Perumdin PT Semen Indonesia (Persero) Tbk.Jl. Awikoen Blok A-7 SeguntingGresik 61122Tel. : (031) 3970374Fax. : (031) 3972263

PT Semen Indonesia Beton (SIB)

99.99% Ready Mix Concrete Producer

2,225,721,917,000 2012 Jl. Tebet Timur Dalam VIII X/15 Jakarta Selatan 12820Tel. : (021) 8295327Fax. : (021) 29222849e-mail : [email protected] www.semenindonesiabeton.com

PT United Tractors Semen Gresik

55.00% Limestone and clay mining

676,601,111,000 1992 Desa Sumberarum, Kec Kerek, Kab. Tuban

PT Industri Kemasan Semen Gresik

60.00% Cement Bag Producer

425,887,824,000 1994 Desa Socorejo, Kec. Jenu, Tuban-Jawa Timur 62352 Tel. : (0356) 491200 Fax. : (0356) 491234 e-mail : [email protected] www.iksg.co.id



Name % Ownership Line of Business Total Assets(Rp)

Operating Year Address

Subsidiaries

PT Kawasan Industri Gresik

65.00% Industrial Estate 368,285,801,000 1991 Jl. Tridharma No. 3 Gresik 61121 Tel. : (031) 3984707Fax. : (031) 3984472e-mail : [email protected] www.kig.co.id

PT Semen Kupang Indonesia

99.48% Cement Producer 192,417,790,000 - Jl. Yos Sudarso, Alak, Tenau, Kupang, NTT

PT Semen Indonesia Industri Bangunan

100% Material 1,000,000,000 2017 Graha Irama Lt. 11 Unit GJl. H.R. Rasuna Said Blok X-1Jakarta Selatan 12950

PT Semen Indonesia Aceh

52.28% Cement Producer 605,916,012,000 - Jl. Banda Aceh – Medan KM 107 Nomor 100, Gampong, Kampong Baro, Kec. Pidie, Kab. Pidie 24151

PT Sinergi Informatika Semen Indonesia (SISI)

100% Information System 61,405,915 2014 Graha Irama (Indorama) Building lantai 6, Jl. HR Rasuna Said kav. 1-2, Jakarta 12950 Tel. : (021) 5213711Fax. : (021) 5261176e-mail : [email protected]

PT Semen Indonesia Internasional

100% Investment 468,413,315,000 2016 Menara Anugrah, Kantor Taman E.3.3, No. 22F Jl. Mega Kuningan Lot 8.6-8,7, Jakarta 12950Tel. : (021) 57853977Fax. : (021) 57942294 www.semenindonesiainternational.com

PT Semen Indonesia Logistik (SIL)

73.65% Trade, transportation, and construction

2,434,028,459 1974 Jl. Veteran No. 129, Gresik-Jawa Timur 61122 Tel. : (031) 3981463Fax. : (031) 3982304e-mail : [email protected] www.silog.co.id

PT Krakatau Semen Indonesia

50.00% Cement material manufacturing

401,279,668,000 2014 Kawasan Industri Krakatau Bandar Samudera, Jl. Mayjen S. Parman KM 13 Cigading, Ciwandan, Cilegon BantenTel. : (0254) 7960092Fax. : (0254) 7960094 www.krakatausemenindonesia.com

Notes(*) TLCC was acquired on December 18, 2012, with 2 subsidiaries: 1. Thang Long Joint Stock Company 2 -> 99.9% share ownership by TLCC 2. An Phu Cement Joint Stock Company -> 99.9% share ownership by TLCC All subsidiaries are under preparation for the construction new cement mills.



ORGANIZATIONSTRUCTURE

Department of Strategic

PlanningRuri Adam

Department of Business

DevelopmentRahmat Faizal

Business Development

& Management Assets

Business Unit Soni Asrul Sani

Corporate Risk Management

M Ludfi Setyadi

Departmentof Design

EngineeringDurain P. Siregar

Department ofR&D Product &

ApplicationRudi Hermawan

Project Management

Heru Indrawidjajanto

Department ofR&D Product &

ApplicationAchmed Vaival

Istiadi

Department of Corporate

CommunicationSigit Wahono

(Pgs.)

Department of CSR

Wahyudi Heru

Department of Corporate Office

Evie Amaliana

Department of Institutional RelationshipVita Mahreyni

Department of Investor

RelationsFebriandita

Kusuma (Pgs.)

Department of Productivity& Technical

ServicesBenny Ismanto

Department ofProcess Control,

Technology & QSHE

Teguh Sutrisno

Department of Maintenance ManagementAgus Subroto

VP Corporate Secretary

Agung Wiharto

Directorate of Business Strategy and Development

FADJAR JUDISIAWAN

Directorate of Production

BENNY WENDRY

Directorate of Engineering & Projects

TRI ABDISATRIJO



Departmentof System

Development & InnovationHer Arsa

Pambudi (Pgs.)

Department of Legal,

Governance & Compliance

Tri Gati Mareta (Pgs.)

Department of Strategic

FinanceBudi Wahyu

Darsono

Department of Corporate AccountingMuchamad Supriyadi

Department of Sales

Region ITino Darusman

Department of Sales

Region IIJoni Gunawan

Department of Sales

Region IIIMuh. Afandy Marasabessy

Department of Business

FinanceM Supriyadi

(Pgs.)

Supply Chain Business Unit

RahmanKurniawan

Department of Transportation Management

Wahyu Purnomo

Department of Distribution

ManagementAhmad

Zulkarnain

Department of MarketingPlanning & Controlling

Rudi Hartono


MarketingGathut

Wicaksono

Sales Business UnitMufti Arimurti

Departmentof HR

DevelopmentHer Arsa Pambudi

Department of Center

of Dynamic LearningEndang

Persitarini

Department of ICT Strategic

Achmad Tholchah

Directorate of Marketing & Supply Chain

ADI MUNANDIR

Directorate of HR & Legal

AGUNG YUNANTO

Directorate of Finance

DODDY SULASMONO DINIAWAN

President Director

HENDI PRIO SANTOSO

Department of ProcurementProid Kontura

Internal Audit Group

Tubagus M. Dharury

Strategic Management

Office



SutiyosoPresident Commissioner74 years old (December 6, 1945)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION Graduated from the National Military Academy, Magelang in 1968 and a Bachelor’s degree in Law from Sekolah Tinggi Hukum Militer, Jakarta in 1996.

HISTORY OF POSITION Appointed as President Commissioner based on the Annual General Meeting of Shareholders dated March 31, 2017 with a term of office up to 2022.

He served as Head of State Intelligence Agency (2015-2016); Governor of DKI Jakarta (2002-2007) and (1997-2002).

Currently, he holds no other positions

EDUCATION OR TRAINING FOR COMPETENCY-

AFFILIATED RELATIONSHIPThere is no affiliation either with members of the Board of Commissioners, the Board of Directors or shareholders.

SHARE OWNERSHIP IN SEMEN INDONESIA-

BOARD OF COMMISSIONERS’PROFILE



Nasaruddin UmarIndependent Commissioner60 years old (June 23, 1959) Indonesian CitizenshipDomiciled in Jakarta

EDUCATION He holds a degree in Syariah Faculty, from IAIN Alauddin, Ujung Pandang in 1984, Master’s degree from UIN Syarif Hidayatullah, Jakarta in 1992 and Doctorate degree from UIN Syarif Hidayatullah, Jakarta in 1999.

HISTORY OF POSITION Appointed as Independent Commissioner based on the Annual General Meeting of Shareholders dated March 31, 2017 with a term of office up to 2022.

Previously served as • Deputy Minister of Religion of Indonesia (2012-2014) • Director General of Islamic Community Guidance, Ministry of Religious

Affairs (2006-2012).

Currently, he is the Imam Besar at Masjid Negara Istiqlal and Professor at UIN Syarif Hidayatullah.

EDUCATION OR TRAINING FOR COMPETENCY2018 Product Knowledge Distributor education on 9-17 December 2018 in Canada



Mochamad CholiqIndependent Commissioner66 years old (December 12, 1952)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION Obtained his Engineering degree from Institut Teknologi Sepuluh Nopember (ITS), Surabaya in 1979 and Magister Management from STM Prasetiya Mulya in 1997.

HISTORY OF POSITION Appointed as Independent Commissioner based on the Annual General Meeting of Shareholders dated April 30, 2018 with a term of office up to 2023.

Previously served as • Director of PT Adhi Karya (2001-2006). • President Director of PT Waskita Karya (2008-April 2018).

Currently, he holds no other positions






Astera Primanto Bhakti Commissioner51 years old (January 20, 1968)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION He holds a Bachelor’s degree in Economics majoring in Management from Universitas Jenderal Soedirman, Purwokerto in 1990 and Master’s degree in Taxation from University of Denver, USA in 1997.

HISTORY OF POSITION Appointed as Commissioner based on the Annual General Meeting of Shareholders dated March 31, 2017 with a term of office up to 2022.

Previously served as • Director General of Fiscal Balance, the Ministry of Finance (June 2018-

now)• Chief of Financial Education and Training Agency, the Ministry of Finance

(2017-June 2018)• Expert Staff of State Revenue Policy to the Finance Minister

(2015-2017) • Expert Staff of State Revenue to the Finance Minister (2015) • Head of State Revenue Policy - Fiscal Policy Office (2012-2015)

Concurrently serves as the DIrector General Fiscal Balance, Ministry of Finance, RI




Hendrika Nora Osloi SinagaCommissioner49 years old (June 7, 1970)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION She holds a Chemical Engineering degree, Faculty of Industrial Engineering from Institut Teknologi Bandung in 1994 and Magister Management, Post Graduate Study, Economic Faculty, Universitas Indonesia in 2003.

HISTORY OF POSITION Appointed as Commissioner based on the Annual General Meeting of Shareholders dated April 30, 2018 with a term of office up to 2023.

Previously served as • Commissioner of PT Perusahaan Gas Negara (Persero) Tbk (2016-2018).• Commissioner of PT Perusahaan Pengelola Aset (Persero) (2014-2016)• Commissioner of PT BTDC (Persero) (2011-2014)• Member of GCG Committee of PT Antam (Persero) Tbk (2010-2012)• Commissioner of PT Timah Investasi Mineral (2008-2011)• Commissioner of PT Batubara Bukit Kendi (1999-2008)

Concurrently, she serves as Assistant Deputy for Energy, Logistics, and Tourism Region I, Ministry of SOE.






Wahyu Hidayat Commissioner65 years old (July 3, 1954)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION He holds a Diploma Study in Development Finance, University of Birmingham, England in 1984 and Bachelor’s degree in Economics from Universitas Gadjah Mada, Yogyakarta in 1979.

HISTORY OF POSITION Appointed as Commissioner based on the Annual General Meeting of Shareholders dated March 25, 2014 with a term of office up to 2019.

Previously served as • Deputy in Restructuring and Strategic Planning, SOE Ministry (2013-2014) • Commissioner of PT Bank Mandiri (Persero) Tbk (2012-2014) • Secretary of SOE (2012-2013)

Concurrently, serves as Commissioner of PT Multi Bintang Indonesia Tbk.

EDUCATION OR TRAINING FOR COMPETENCY1. The 3rd International Leadership Seminar on 7-9 March 2018 in Bali,

organized by BI Institute2. The Persona GLOBAL® 40th International Conference on August 30 –

September 3, 2018, Spain, organized by Persona Global3. 2018 Product Knowledge Distributor Education on 4-12 December 2018 in

Canada, organized by Semen Indonesia



Sony SubrataCommissioner53 years old (February 11, 1966)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION Completed his Bachelor of Commerce in Marketing from The University of New South Wales, Sydney, Australia in 1988.

HISTORY OF POSITION Appointed as Independent Commissioner based on the Annual General Meeting of Shareholders dated January 23, 2015 with a term of office up to 2020.

Previously served as • Independent Commissioner of PT Ciputra Surya Tbk (1999-2003) • Chairman of Yayasan Bangsa (1997-1999) • President Director of PT Adiriasindo (1995)

Concurrently, serves as Commissioner of PT Tridaya Nusantara Internasional and Commissioner of PT Brata Nusa Pratama.






BOARD OF DIRECTORS’ PROFILE

Hendi Prio SantosoPresident Director52 years old (February 5, 1967)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION He holds a Bachelor of Business Administration and Economics (double majors) from University of Houston, Texas, USA in 1990 and degree in Economics from University of Texas, Austin, USA in 1988.

HISTORY OF POSITION Appointed as President Director based on the Extraordinary General Meeting of Shareholders dated September 15, 2017 with a term of office up to 2022.

Previously served as • President Director of PT Perusahaan Gas Negara (Persero) Tbk

(2008-May 4, 2017) • Finance Director of PT Perusahaan Gas Negara (Persero) Tbk

(2007-2008) • Investment Banking Director of PT JP Morgan Securities Indonesia

(2001-2007).

Concurrently, he serves as • President Commissioner of PT Semen Gresik (2018-2023)• President Commissioner of PT Semen Indonesia International (2018-2021)

EDUCATION OR TRAINING FOR COMPETENCY1. Corporate Governance Workshop2. ABAC - APEC Economic Leaders Summit3. Strategic Business Alignment4. Global Digital Leader Executive Development Program5. Corporate Work Plan & Budget Workshop6. Corporate Strategic Alignment Semen Indonesia Group





Fadjar JudisiawanDirector of Business Strategy and Development 48 years old (May 9, 1971)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION He holds a Bachelor’s degree in Engineering from Institut Teknologi Sepuluh Nopember, Surabaya in 1995 and a Master’s degree from Universitas Gadjah Mada, Yogyakarta in 2002.

HISTORY OF POSITION Appointed as Director based on the Extraordinary General Meeting of Shareholders dated September 15, 2017 with a term of office up to 2022.

Previously served as • Acting Deputy in Construction Business, Transportation Facilities and

Infrastructure, Ministry of SOE (2017) • Assistant Deputy in Construction Business, Transportation Facilities and

Infrastructure, Ministry of SOE (2015-2017)• Assistant Deputy in Construction Services, Ministry of SOE (2014-2015) • Assistant Deputy in Research and Information, Ministry of SOE (2013-

2014).

Concurrently, he serves as• President Commissioner of PT Semen Indonesia Logistik (2018-2021) • President Commissioner of PT Industri Kemasan Semen Gresik

(2018-2021) • Commissioner of PT Semen Indonesia Industri Bangunan (2018-2021).

EDUCATION OR TRAINING FOR COMPETENCY1. Corporate Governance Workshop2. Strategic Business Alignment3. Corporate Work Plan & Budget Workshop4. Corporate Strategic Alignment Semen Indonesia Group



Adi MunandirDirector of Marketing & Supply Chain 38 years old (July 10, 1981)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION He holds a Bachelor’s degree in Engineering from Universitas Indonesia, Jakarta in 2003 and Master of Management Science, Universitas Indonesia in 2013.

HISTORY OF POSITION Appointed as Director based on the Extraordinary General Meeting of Shareholders dated April 30, 2018 with a term of office up to 2023.

Previously served as • Group Head of Marketing of PT Perusahaan Gas Negara (Persero) Tbk

2016–2018.• Commissioner of PT Solusi Energy Nusantara (2017-2018)• Head of Strategic Management Division of PT Perusahaan Gas Negara

(Persero)Tbk (2015-2016)• Executive Officer - Strategic Management Office of

PT Perusahaan Gas Negara (Persero) Tbk (2013–2015).

Concurrently, he serves as President Commissioner of PT Semen Padang (2018-2023).

EDUCATION OR TRAINING FOR COMPETENCY1. Corporate Governance Workshop2. Global Digital Leader Executive Development Program3. Strategic Business Alignment4. Corporate Work Plan & Budget Workshop5. Corporate Strategic Alignment Semen Indonesia Group





Benny Wendry Director of Production 50 years old (May 1, 1969)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION He holds a Bachelor’s degree in Chemical Engineering from Institut Teknologi Bandung and a Master’s degree in Management from Universitas Gadjah Mada, Yogyakarta in 2001.


Previously served as • President Director of PT Semen Padang

(November 2014-2017) • Director of Finance of PT Semen Padang

(July 2014-October 2014) • Director of Commercial of PT Semen Padang (June 2011-2014). Concurrently, he serves as President Commissioner of PT Semen Tonasa (2018-2023)

EDUCATION OR TRAINING FOR COMPETENCY1. Corporate Governance Workshop2. AFCM Technical Symposium3. Strategic Business Alignment4. Driving Profitable Growth5. Corporate Strategic Alignment Semen Indonesia Group


SHARE OWNERSHIP IN SEMEN INDONESIA3,500 shares

Tri Abdisatrijo Director of Engineering & Projects52 years old (September 5, 1967)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION He holds a Bachelor’s degree in Chemical Engineering from Institut Teknologi Sepuluh Nopember, Surabaya in 1992.


Previously served as• Director of Commercial of PT Semen Tonasa (August 2014-2017) • General Manager of Energy, Material and Environment of

PT Semen Indonesia (Persero) Tbk (Februari-July 2014) • General Manager of Project Specialist OOTC PT Semen Indonesia

(Persero) Tbk (2013-2014) • General Manager of Technical Planning of PT Semen Tonasa

(January 2012-February 2013).

Concurrently, he serves as • Acting Director of PT Semen Indonesia Aceh since 2018 and President

Commissioner of PT Semen Indonesia Aceh (2018-2023) • Acting Director of PT Semen Kupang Indonesia since 2017 • President Commissioner of Semen Kupang Indonesia (2018-2021).

EDUCATION OR TRAINING FOR COMPETENCY1. Corporate Governance Workshop2. Expand Leadership Program3. Strategic Business Alignment4. MIT Management5. Corporate Work Plan & Budget Workshop6. Corporate Strategic Alignment Semen Indonesia Group





Agung YunantoDirector of HR & Legal 57 years old (May 7, 1962)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION He holds a Bachelor’s degree in Civil Engineering from Institut Teknologi Bandung in 1987 and Master’s degree in Management from Institut Pengembangan Manajemen Indonesia and from Monash University, Australia in 1999.

HISTORY OF POSITION Appointed as Director based on the Annual General Meeting of Shareholders dated March 31, 2017 with a term of office up to 2022.

Previously served as • Director of Human Capital & Business Development of

PT Wijaya Karya Beton, Tbk (2017) • General Manager of Human Capital of PT Wijaya Karya (Persero) Tbk

(2014-2017) • President Commissioner of PT Jasa Marga Surabaya Mojokerto

(2013 -2017).

Concurrently, he serves as President Commissioner of PT Sinergi Informatika Semen Indonesia (2018-2021); President Commissioner of PT United Tractors Semen Gresik (2018-2021; Supervisory Board of TLCC (2018-2023).

EDUCATION OR TRAINING FOR COMPETENCY1. Executive Leadership Program, Kementerian BUMN2. Strategic Human Resource Management, ASHRIDGE, London, UK3. Leading Business into the Future, London Business School, London, UK4. The University of Chicago - Booth School of Business, Leading Change for

Business Performance



Doddy Sulasmono DiniawanDirector of Finance 52 years old (February 27, 1967)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION He holds Bachelor’s degree in Economics from Universitas Katolik Parahyangan, Bandung in 1990 and Master’s degree in Financial Management from Universitas Padjajaran, Bandung in 2005.


Previously served as• Director of Finance and Human Resources of PT Rekayasa Industri

(April 2016-2017) • Executive Vice President-CEO Jakarta Kota Region Office of PT Bank

Negara Indonesia (Persero) Tbk. (Jan-Mar 2016)• Executive Vice President-Division Head of Corporate Business Risk of

PT Bank Negara Indonesia (Persero) Tbk. (June-December 2015)

Concurrently, he serves as • President Commissioner of PT Semen Indonesia Beton (2018-2021)• President Commissioner of PT SGS Energi Prima (2018-2021)• Chairman Board of Management Thang Long Cement JSC (2018-2023)

EDUCATION OR TRAINING FOR COMPETENCY1. Corporate Governance Workshop 2. The Euromoney Indonesia Financing & Investment Forum3. Strategic Business Alignment4. Corporate Work Plan & Budget Workshop5. Corporate Strategic Alignment Semen Indonesia Group





PROFILE OFCORPORATE SECRETARY

Agung WihartoCorporate Secretary 52 years old (March 5, 1967)Indonesian CitizenshipDomiciled in Jakarta

EDUCATION Graduated with a Bachelor degree in Communication Studies from Universitas Gadjah Mada in 1993.

HISTORY OF POSITION Appointed as Corporate Secretary based on the Board of Directors Decree No. DIR/P/0023/2012, dated May 1, 2012

Joined the Company in 1994. Served as Head of Documentation & Information Section (1996-2001), Head of Jakarta Representative Section (2001- 2002), and Head of Investor Relations Bureau (2006- 2012). He has serves as Corporate Secretary since 2012 until now.

EDUCATION OR TRAINING FOR COMPETENCY1. Corporate Governance Workshop in March 2018 in Jakarta2. Strategic Business Alignment in August in Bali3. Global Digital Leader Executive Development Program in October 2018 in

France4. Performance Management System Workshop in November 2018 in

Jakarta5. Corporate Work Plan & Budget Workshop in November 2018 in Bandung6. Corporate Strategic Alignment Semen Indonesia Group in December 2018

in Bogor




PROFILE OF INTERNAL AUDITGROUP HEAD

Tubagus M. DharuryInternal Audit Group Head52 years old (March 29, 1967)Indonesian CitizenshipDomiciled in Surabaya

EDUCATION He earned a Bachelor degree in Accounting from Universitas Airlangga, Surabaya in 1991 and obtained a Master’s degree in Management from Universitas Gadjah Mada in 2008.

HISTORY OF POSITION Joined the Company in 1991 as a Employee Candidate in training for the personnel department. Previously, he held various positions in the Company, including • Finance Director of PT Industri Kemasan Semen Gresik (2002), • Finance Director of PT Swadaya Graha (2002-2012), • Senior Group Finance Management Accountant Department Group

Finance Management (2012-2014), • GM of Accounting & Human Capital Department of Accounting & Human

Capital (2014-2016), and • GM of Internal Audit of PT Semen Gresik (2017).

EDUCATION OR TRAINING FOR COMPETENCYTo improve competence, in addition to formal education, he also attended various seminars and training, whether certified or not in the context of accounting, finance and audit as well as other relevant fields.

He is a member of the Indonesian Institute of Accountants and the Indonesian Institute of Management Accountant (Ikatan Akuntan Manajemen Indonesia). In addition, he also obtained Certified Professional Management Accountant (CPMA), Chartered Accountant (CA), and Professional Internal Auditor (PIA).




Recapitulation of Training and Education ProgramDescription 2018 2017 2016

Total Training Days (Man Days) 2,127 2,014 2,069

Total Number of Training Hours (Hours) 218,313 270,188 237,112

Total Number of Training Participants (Person) 4,019 3,551 3,503

Average training hours/person/year 44.8 53.5 44.3

Employee Development Fee (Rp Billion) 35.2 38.3 37.7

TOTALEMPLOYEES

Employees based on Age

Age 2018(person)

2017 (person)

2016 (person)

2015(person)

≤ 25 years old 175 190 297 614

26-30 years old 1,145 1,092 1,041 981

31-35 years old 979 763 701 540

36-40 years old 541 580 598 799

41-45 years old 1,221 1,377 1,170 1,165

46-50 years old 908 941 747 623

>50 years old 479 610 690 775

Total 5,448 5,553 5,244 5,497

Employees based on Education

Education 2018(person)

2017 (person)

2016 (person)

2015(person)

S3 9 8 5 4

S2 172 179 171 170

S1 1,752 1,704 1,443 1,429

Diploma-3 633 614 699 719

Diploma-1 3 3 3 3

Up to high school equivalent 2,879 3,045 2,923 3,172

Total 5,448 5,553 5,244 5,497



SHAREHOLDERSINFORMATION

No Shareholders Total Shares Ownership Percentage

a. Shareholders with 5% or more Share Ownership

1. Republic of Indonesia C/Q Minister of Finance of the Republic of Indonesia 3,025,406,000 51.006

b. Shares Ownership by Members of the Board of Directors and Board of Commissioners

1. Board of Commissioners 0 0

2. Board of Directors 3,500 0.0000590

c. Less than 5% Shares Ownership by Public

1. Public (less than 5%) 2,906,110,500 49

Total 5,931,520,000 100.00

TOTAL SHAREHOLDERS AND OWNERSHIP PERCENTAGE AS OF END OF FISCAL YEAR BASED ON CLASSIFICATION

Owners Category Total Shareholders Total Shares Total % Ownership

National Investors

Republic of Indonesia 1 3,025,406,000 51.00558

Individual Indonesia 6,430 57,924,837 0.97656

Employees 33 125,000 0.00211

Cooperatives 3 70,700 0.00119

Foundations 16 6,140,900 0.10353

Pension Funds 117 89,513,800 1.50912

Insurance Companies 116 197,475,739 3.32926

Banks 2 35,390 0.00060

Limited Liabilities Companies 66 185,849,317 3.13325

Associates 1 5,000 0.00008

Other Entities 18 84,000 0.00142

Mutual Funds 285 170,608,982 2.87631

Sub Total 7,088 3,733,239,665 62.93901

Foreign Investors

Foreign Individual 53 562,700 0.00949

Foreign Institutions 944 2,197,717,635 37.05151

Total 997 2,198,280,335 37.06100

Total 8,085 5,931,520,000 100.00000

SHAREHOLDERS COMPOSITION

Shareholders Composition as of December 31, 2018



Date Description Nominal/Shares (Rp) Total Shares Total Outstanding

Shares Exchange

May 17, 1991 IPO 7,000 40,000,000 40,000,000 BEJ

July 4, 1991 Company Listing 30,000,000 70,000,000 BEJ

May 30, 1995 Company Listing 78,288,000 148,288,000 BEJ

June 2, 1995 Right Issue 444,864,000 593,152,000 BEJ

August 7, 2007 Stock Split 1:10 5,000 5,338,368,000 5,931,520,000 BEI

October 13, 2008 - January 9, 2009 Buyback Shares 2,919 68,032,000 5,863,488,000 BEI

6-7 October 2009 Sellback Shares 6,075 68,032,000 5,931,520,000 BEI

SHARE LISTING CHRONOLOGYThe Company initially listed its shares through Initial Public Offering (IPO) or ‘Go Public’ in Jakarta Stock Exchange (now IDX) on July 8, 1991. Since the IPO up to reporting year 2014, the Company has exercised 3 corporate actions that changed the volume of outstanding shares, which are: • Rights Issue on June 2, 1995, which changed

total shares from 148,288,000 to 593,152,000, accompanied by changes in the value of authorized capital and paid-up capital.

• Stock Split 1:10 on August 7, 2007, which increased total shares to 5.931,520,000.

• Shares buy-back and sellback between October 13, 2008-January 9, 2009 (buyback) and October 6-7, 2009 (sellback), which eventually did not affect the volume of outstanding shares.

MANAGEMENT/EMPLOYEES STOCKOPTION (MSOP/ESOP)The Company has never exercised Management Stock Option Program/MSOP) or Employee Stock Option Program/ESOP).

CHRONOLOGY OF OTHER STOCK LISTINGThe Company has issued other listed securities, namely bonds, described as follows.1. The Company’s Bonds issuance in the amount

of Rp3 trillion as the first part of the Continuous Public Offering (PUB) totalling Rp8 trillion.

2. The book building period for the Bonds was from 15-29 May 2017, with the public offering period from 8-9 June 2017. The Bonds were listed with the Indonesia Stock Exchange on June 15, 2017.

3. The Bonds have a five-year tenor with coupons at 8-8.8 percent.

4. Coupons are payable quarterly or three-monthly starting from the date of issuance.

5. A maximum of Rp1.37 trillion from the total value of bonds issuance will be used to refinance the syndicated loans PT Semen Tonasa, a subsidiary. The remaining amount will be used for the Company’s working capital.

6. The Bonds on offer have obtained a AA+ rating from PT Pemeringkat Efek Indonesia (Pefindo).

7. The Company appoints PT Bahana Sekuritas, PT Danareksa Sekuritas, and PT Mandiri Sekuritas as underwriters in the bonds issuance.

CHRONOLOGY OF SHARE LISTING ANDOTHER STOCK LISTING



CAPITAL MARKET SUPPORTING INSTITUTIONS

SHARE REGISTRARPT Datindo EntrycomJalan Hayam Wuruk No. 28Jakarta 10120Tel. (62-21) 3508077 (hunting)Fax (62-21) 3508078e-mail: www.datindo.com

NOTARYLeolin Jayayanti, SHJl. Pulo Raya VI/I, Keb. Baru - Jakarta 12170 Tel. (62-21) 727 87 232-33Fax. (62-21) 723 4607

BANKSPT Bank Mandiri (Persero) TbkPT Bank Negara Indonesia (Persero) TbkPT Bank Rakyat Indonesia (Persero) TbkPT Bank Central Asia TbkPT Bank CIMB Niaga TbkPT Bank Danamon Indonesia TbkBank JatimBank Muamalat IndonesiaBank ICBC IndonesiaDeutsche Bank

RATING AGENCYPT Pemeringkat Efek Indonesia Panin Tower Senayan City 17th Fl. Jl. Asia Afrika Lot. 19 Jakarta 10270IndonesiaTel. +62 21 - 7278 2380 Fax. +62 21 - 7278 2370 www.pefindo.com

PUBLIC ACCOUNTANT FIRMSatrio Bing Eny & RekanRegistered Public Accountants License No. 89/KM.1/2017The Plaza Office Tower 32rd Fl.Jl. M.H. Thamrin Kav. 28-30Jakarta 10350, IndonesiaTel. +62 21 - 5081 8000 Fax. +62 21 - 2992 8200, 2992 8300 Email: iddttledeloitte.comwww.deloitte.com/id



Semen Indonesia is committed to providing transparent and accurate information to all shareholders and other stakeholders through the Company’s official website at www.semenindonesia.com. Semen Indonesia have complied with the list of mandatory information as required by Regulation of the Financial Services Authority No. 8/POJK.4/2015 dated June 25, 2015, as follow:

1. General information on Issuer or Public Company;2. Information for Investors;3. Information on Corporate Governance; and4. Information on Corporate Social Responsibility.

In addition to mandatory information as required by Regulation of the Financial Services Authority No. 8/POJK.4/2015, the corporate website of Semen Indonesia also contains more specific information.

Sitemap of www.semenindonesia.com

Corporate Reports• Financial Statements• Financial Highlights• Sales Volume• Annual Reports• Corporate

Presentations• Sustainability Reports• Obligation Informations

Stock Info• Shareholder

Composition• Equity Analyst

Stock ChartSemen Indonesia Stock

Chart

Information Request• Contact Investor

Relations• Meeting Request• Question• Mailing List Subscription

News & Activities• General Meeting of

Shareholders• Earnings Call

Investor Relations

Corporate Profile• Semen Indonesia• Vision & Mission• Management

Semen Indonesia Group• Our Business and

AffiliationCorporate Governance

• Company Policy• Structure

Implementation• Evaluation &

Implementation• Gratification Control• Complaint Mechanism• Management System

Career

About

Cement Product• OPC• PCC• PPC• White Cement• Max Strength Cement

Building Material• Ready Mix Concrete• Flash Concrete• Gress Board• Porous Concrete• Precast• Ground Granulated Blas

Furnace Slag

Service• Construction• Heavy Equipment• Information Technology• Integrated Logistic• International Trading• Manpower Supplies

Products and Services

News & Articles

Press Releases

News & Article

COMPANYWEBSITE



COMPANY WEBSITE Presented in both Bahasa and English at www.semenindonesia.com with email address at korporat info@ semenindonesia.com. The Company’s website was developed in accordance with the criteria and requirements set by the Financial Services Authority (OJK) in OJK Regulation Number 8/POJK.4/2015 on Websites of Issuers or Public Companies. The Company has established a working standard to ensure proper management of its website.

Information presented at the Company’s website includes:

• Company Profile Contains information on CEO Message, Company

Profile, Vision and Mission, Management and Committees, and Awards received by the Company

• Corporate Governance Contains information on Company Policies,

Guidelines, Structure, Procurement Mechanism, and Management Systems

• Investor Relations Contains information on Annual Report, Financial

Statements, Quarterly Report on Operational and Financial Performance, Monthly Sales Report, GMS, Notifications, and Contact point for Investor Relations

• Sustainable Performance Contains information on PKBL, corporate

programs, SIF, and Sustainability Report

• Products and Services Contains information on Types of Products,

Distribution Channels, Technical Services, and Product Innovation

• News and Media Contains information on company

announcements, news, press release, and photo gallery

• Customer Service - Semen Indonesia Care Line Contact point for customer complaint handling

via telephone number 0800 1088888 (free of charge)

INFORMATION ACCESS



February 6, 2018

Finalist in the 2017 ASRA (CSR Works International)Asia Sustainability Reporting Award), Singapore

• Best Community Reporting Award, • Best Carbon Disclosure Award • Best Environmental Reporting Award.

May 4, 2018

Best Companies to Work for In Asia 2018The 2018 Indonesia’s Best Employers Award (HR Asia)

July 27, 2018

Top Brand AwardTop Brand Award

September 6, 2018

Indonesia Champion for ASEAN 2018The 4th ASEAN Marketing Summit 2018 Mark Plus di Jakarta

Category:Human Resources, Infrastructure, and Utilities

March 30, 2018

Public Relation Indonesia Award (PRIA)Public Relation Indonesia Award (PRIA) in Surabaya

• Bronze for the category of SOE’s Printed Internal Media, awarded to Majalah Sinergi, edition 19 – Semen Indonesia

• Bronze for the category of SOE’s social media – Semen Indonesia• Silver - for the category of SOE’s Subsidiary social media – Semen

Padang

AWARDSAND CERTIFICATION



October 11, 2018

Living Legend BrandThe 2018 Indonesia Living Legend Brands Award, by SWA Magazine

Specially awarded to companies with original Indonesian brands that are at least 50 years old, still making profits (not in a loss), its business continues to grow, prospective, having a broad market coverage, continue to expand, continue to innovate, and are market leaders/major players in the sector.

October 26, 2018

Indonesia Corporate Secretary Award 2018Indonesia Corporate Secretary Award 2018 by Warta Ekonomi in Jakarta

Top 5 GCG Issues in Basic Industries and Chemical Sector.

September 29, 2018

Subroto Award The Ministry of ESDM

Energy Efficiency Sector, category Energy Management at Industry and Building, sub-category special innovation

October 25, 2018

The 2018 Padmamitra Award Padmamitra Award’s 2018

Poverty Eradication Program, Corporate Social Responsibility (CSR) Awarded to PT Semen Padang.

December 12, 2018

Green Industry Award Level 5 (Highest) Green Industry Award by the Ministry of Industry

Certification

ISO – 9001:2015 Quality Management System (certificate issued by SGS-UK, 2018-2020)ISO – 14001:2015 Environment Management System (certificate issued by SGS, 2018-2020)OHSAS - 18001:2007 Occupational Safety and Health Management System (certificate issued by SGS-UK, 2017-2019) SMK3: Occupational Safety and Health Management System (certificate issued by Sucofindo, 2018)ISO/IEC - 17025:2008 Material Testing Laboratory Accreditation Certificate (LP-151-DN) (certificate issued by KAN, 2016-2019)



January 03, 2018

Signing of Commitment for Implementation of Quality Management

The Board of Directors and Echelon I of PT Semen Indonesia (Persero) Tbk signed a commitment on the implementation of quality management, environmental management systems, and other management systems.

February 13, 2018

Semen Indonesia Irrigates Three Dry Villages Around Rembang Plant

Semen Gresik freed 3 villages in Rembang and Blora from lack of clean water by building clean water installations.

January 07, 2018

All Opco Celebrates the Anniversary of SMI Holding

The 5th anniversary of the holding of PT Semen Indonesia (Persero) Tbk. took place simultaneously throughout opco.

February 22, 2018

Deputy Minister of SOE Inaugurates Arboretum at Bukit Daun

The SOE Deputy for Energy, Logistics, Region and Tourism of the Ministry of Energy, Mr. Edwin Hidayat Abdullah, inaugurated the Bukit Daun Arboretum reclamation park at the Tuban Plant.

January 10, 2018

Assessment on Maturity Level of the Management System

Semen Indonesia held an on maturity level of management system based on ISO 9004 to encourage the improvement of company performance.

February 08, 2018

Minister of SOE Inaugurates Semen Padang CSR Suspension Bridge

Minister of SOE, Ms. Rini Soemarno, inaugurated the Baringin Suspension Bridge and assistance for three XSMPN 38 Tarantang.

SIGNIFICANTEVENTS



March 15, 2018

MoU on the Utilization of FABA, Gypsum, Logistik and Marketing of Cement

PT Semen Indonesia (Persero) Tbk entered into collaboration with PT PLN (Persero), PT Semen Baturaja (Persero) Tbk, PT Pupuk Indonesia (Persero), PT Patra Jasa, PT SILOG, PT PILOG. The collaboration agreement covers the utilization of fly ash, bottom ash (FABA), Gypsum, logistic and cement.

February 27, 2018

Inspection of WHRPG Project in Tuban Plant

The CEO of Global Enviromental Center (GEC) Foundation, Mr. Kunihiro Suga, representing the Ministry of Environmental Affairs of Japan and the Head of Deputy for Multilateral Economic Cooperation and Financing of the Coordinating Ministry for Economic Affairs of the Republic of Indonesia, Mr. Cahyadi Yudodahono, inspects the WHRPG project in Tuban Plant. This inspection is conducted to ensure that this project can be run smoothly.

April 13, 2018

MoU with Angkasa Pura Propertindo

MoU with Angkasa Pura Propertindo on the utilization of cement and non-cement.

April 23, 2018

Digital Summit 2018

To smoothen the digital transformation undertaken by Semen Indonesia.

April 30, 2018

General Meeting of Shareholders 2018

Appointing Mr. Adi Munandir as the Director of Marketing and Supply Chain, Hendrika Nora Osloi Sinaga as Commissioner and Mochamad Choliq as Independent Commissioner.

February 28, 2018

OSHE Challenge Competition

To campaign the culture of occupational safety and health (K3), Semen Indonesia held a competition called ‘SHE Challenge’ for the employee of Semen Indonesia Group.



May 14, 2018

Semen Tonasa Inaugurates Geopark and Kehati Park

The inauguration of the geopark was marked by planting a thousand trees in Geopark Bulu Sipong. The inauguration of the geopark was carried out by PT Semen Tonasa in collaboration with a number of research centers in Makassar.

July 26, 2018

Semen Padang MoU with Kejati of West Sumatra

The MoU is related to civil law and state administration.

August 11, 2018

“Siswa Mengenal Nusantara” Pogram

High school/vocational student exchange program between provinces throughout the archipelago. The goal is to instill a sense of pride and love for the homeland early on for high school/vocational/SLB students.

August 17, 2018

“BUMN Hadir Untuk Negeri”

“BUMN Hadir untuk Negeri” in the Regency of Jeneponto is an embodiment of the caring and awareness from the Ministry of SOE and the SOEs.

August 26, 2018

Assistance for Lombok Earthquake

Semen Indonesia provide assitance for the victims of earthquake disaster in Lombok, NTB.

August 15, 2018

Semen Indonesia Innovation Award

Strengthening the culture of innovation, Semen Indonesia held the Innovation Award, an activity to actualize the Company’s appreciation for employees that come up with innovations.



October 17, 2018

Audit Surveillance of SMK3 & OHSAS 18001:2007 at Tuban Plant

The 3-day audit found no material nor critical finding.

August 31, 2018

Closing of Audit on ISO 9004 and ISO 14001 Management System

For the first time, Holding Semen Indonesia held the external audit in order to earn the ISO 9001:2015 and ISO 14001:2015 certificate. Based on the results of the audit, Holding Semen Indonesia is recommended to receive the certification.

October 03, 2018

Certified Internship Program for Undergraduate Students (PMMB)

Signing the collaboration agreement on Certified Internship with the Institut Teknologi Sepuluh Nopember (ITS) Surabaya.

October 17, 2018

Delegation of Semen Gresik Chaired the AFCM 42nd Council Meeting in the Philippines

Delegation of Semen Gresik attended the ‘ASEAN Federation of Cement Manufacturers (AFCM) 42nd Council Meeting’, at Hotel Movenpick, Mactan Island, Cebu, Philippines, on 17-19 October 2018.

October 22, 2018

Semen Indonesia Grup Innovation Team is awarded with Gold Predicate during the International Convention & Quality Control Circle (ICQCC) 2018 in Singapore

Innovation team of Semen Indonesia Grup received gold predicate during International Convention On Quality Control Circles (ICQCC) in Singapore.

November 12, 2018

Semen Indonesia Acquired Holcim Indonesia

Signing of Conditional Sales & Purchase Agreement for the transfer of 6,179,612,820 shares (or equal to 80.6% of share ownership) of PT Holcim Indonesia Tbk. (“Holcim Indonesia” (ticker: SMCB)), of USD917 million (price to be adjusted upon the completion of transaction) on November 12, at 19.00 WIB. The transaction of this acquisition will be performed by PT Semen Indonesia Industri Bangunan (“SIIB”), as the subsidiary of Semen Indonesia.



The strategic initiatives carried out in 2018, namely the Centralization of the Marketing, Supply Chain, Procurement, as well as Cost Transformation Functions has produced positive results in terms of increased sales volume and substantial increase in profit margins. The Company believes that the implementation of the strategy in all operational aspects will create quality and sustainable business growth.

PERFORMANCE SUMMARY

The Company strengthened the foundations for long-term sustainable business growth by establishing a new Vision and Mission, to become the building material solutions provider, by focusing on developing 2 main business segments, namely cement and support-cement.

The Company has completed the business structure reformulation process and initiated the new paradigm so as to optimize its Value Chain.

Semen Indonesia officially acquires PT Holcim Indonesia Tbk. through the signing of the Conditional Sale Purchase Agreement (CSPA) in November 2018, and implementation of the agreement in January 2019.

The implementation of this Inorganic expansion, which serves as visible proof of the business segment’s expansion, led total production capacity to reach 53 million tons and positions PT Semen Indonesia (Persero) Tbk as the largest cement manufacturer in Southeast Asia.

The Company successfully completed one of its strategic infrastructure projects, the Waste Heat Recovery Power Generator (WHRPG), with a total capacity of 20.6 MW that is able to reduce CO2 gas emissions by as much as 122,358 tons/year.

Through the Swakelola concept, the Company has in total completed 8 (eight) projects in 2018, covering 5 (five) upgrading projects, 1 (one) strategic project and 2 (two) packing plant construction project.

The Company is fully committed to capitalizing its building design competencies through the knowledge management concept within the Center of Engineering.

BUSINESSDEVELOPMENT STRATEGY

In its quest to fulfil a new vision and to strengthen its steps towards a new level of becoming the “Biggest Building Material Solutions Provider in the Region”, the Company has formulated and began to implement the four priority strategies, namely: Cost Leadership, Differentiation Through Product Development and Product Portfolio, Proactive Stakeholder Management and Sustainable Partnership-Oriented and Culture Transformation towards One Firm Mentality.

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Through Development and Research activities, the Company ensures product quality, develop supporting materials and designs new products.

As part of the implementation of its new vision, the Company designs new products, both for cement products, precast concrete as well as materials. In 2018, the Company was increasingly active in marketing its new products: porous concrete, Rapid Strength Concrete (RSC), Self-Compacting Concrete (SCC) and Interlocking Brick - SI INDAH.

In 2018, the Company successfully improved the ICT role in Customer Services that covers 6 program focus and Cost Transformation that covers 3 program focus, so as to ensure enhanced competitiveness of Semen Indonesia Group’s products.

In line with changes to the Company’s vision, today and in future, ICT is developed as a solution provider-based business enabler. The Company has prepared ICTMP phase III, which will commence in 2019.

Through the innovation movement, the Company received various awards for innovative work in the National Level Convention (9 awards) and at the International Level (7 awards).The Company is fully committed to realizing innovative development aspirations and ideas from all levels to give birth to products that are useful and highly competitive.

There was no additional production capacity in Indonesia in 2018, however, the domestic cement industry continued to face an oversupply of 33 million tons. In terms of production, industrial utilization increased from 65% in 2017 to 69% in 2018. This increase was in line with the growth in domestic demand of 4.8% and export growth of 93%.

In order to increase factory utilization and maintain the tight level of competition domestically, while

anticipating future growth opportunities, the Company has developed a strategy to optimize its advantages. The ultimate goal is to win the business competition, increase profitability, while simultaneously create new sources of growth. The application of this strategy is also part of efforts to achieve the new Vision to become the Biggest Building Material Solutions Provider in the Region. The strategy is presented in the following chart.

Roadmap Towards Leader of Diversified Building Material

Internal Strength and Weakness

External Opportunities and Threats

Cost Leadership through

Centralized Strategy and

Integrated Operation

Differentiation through product development and optimization of

product portfolio with excellent

services

Proactive Stakeholder Management

and Sustainable Partnership

Oriented

Culture transformation

towards one firm mentality



This strategic plan includes 4 priority strategies which include: 1. Cost Leadership through Centralized Strategy

and Integrated Operation All programs compiled must support a centralized

and integrated operating pattern for all lines with the main goal of creating cost efficiency that increases the Company’s competitiveness. Integration of all Opco and other subsidiaries in one strategy. Integration allows exchange of resources and reinforces weaknesses with strength.

2. Differentiation through Product Developmentand Optimization of Product Portfolio withexcellenceservices

Create differentiation through steps that are in line with the Company’s long-term strategy, namely towards becoming building material solution providers. This step is carried out by providing complete range of quality products that meets customer requirements as well as reliable services. Products and services development initiatives to instill competitiveness in comparison with other competitors.

3. Proactive Stakeholder Management andSustainablePartnershipOriented

Proactive in broadly managing synergies with stakeholders to support business strengthening and development. Stakeholders related to Supply, Markets and the surrounding environment to create a conducive atmosphere. Management is oriented to building sustainable partnerships on the basis of a value-added exchange that mutually reinforces and beneficial.

4. Culture Transformation towards One FirmMentality

On the basis of the awareness that the Semen Indonesia Group became large and strong because of unity, then a cultural transformation was carried out that strengthened mentality as a group. There is no longer a separation among subsidiaries. Programs throughout the field will lead to the development of a solid mentality as a group with the same vision and mission.

The Company projects domestic cement demand will continue to grow sustainably in future. This corresponds with the government’s program to build infrastructure that is expected to create new economic growth centers within Indonesia.

A number of driving forces for the growing demand of cement are outlined below:• First, Indonesia’s enormous population with high

growth rate is an important potential driving force for the increasing demand for cement.

• Second, the realization of public and private sector expenditure on infrastructure projects for the purpose of realizing the Nine Agenda of Joko Widodo-Jusuf Kalla or “NAWA CITA”.

• Third, Indonesia’s consumption of cement per capita by 2016 reached 262 kg per capita, which is still below the average cement consumption per capita, particularly compared to ASEAN countries such as Malaysia (763 kg per capita), Vietnam (617 kg per capita), and Thailand (458 kg per capita). This provides opportunities for future cement demand growth.

• Fourth, Indonesia’s long-term economic prospects will continue to grow. Though some countries in the world are experiencing slowdown, Indonesia’s growth is still relatively high, and will trigger an increasing demand for cement.

• Fifth, Indonesia is still a destination for investment both in the industrial sector and in the development of basic infrastructure access, which will drive economic potentials across the region, thus increasing demand for cement.

• Sixth, the Company exploits market growth potentials particularly in ASEAN and South Asia countries, such as Vietnam, Bangladesh, Myanmar, Laos, and Cambodia.

The Company is fully committed to developing its business in order to maintain sustainable business growth as a follow-up to its corporate transformation.

The strategic mission aimed at business development is to increase revenue growth by enhancing competitive advantage from existing businesses, strengthen performance among groups, and develop new businesses with large potential to become new sources of income that adds value to the Company. The strategic mission of the Company’s business development is described as follows:



CORE BUSINESS

VALUE CHAIN

SUBSIDIARY

SUBSIDIARY

Inbound Materials

• Raw Material Costs• Packaging costs• Revenue

UTSG:• Mining contractor

(limestone and clay)

IKSG:• Packaging

Producer from kraft and woven paper, especially for cement

KSI:• GBFS• GBBFS

• Production Cost (COGM)

SG, SP, ST, TLCC:• Clinker and

cement production

• Trading Costs• Transportation

Costs

SILOG:• Sea, Land

Transportation• Loading and

Unloading • Port Management

• Sales Volume• Revenue

SILOG:• Cement

Distribution• Building

Materials Distribution

SIB:• Ready Mix • Precast

KIG:• Industrial

Estate Management

KIG:• IT services• ERP (FORCA)

Development

SMI:• Property• Building

Manager (Office, Mess etc.)

• Supporting Main Standard Setup

SIIB:• Cement-

based building materials

SII:• Trading

Cement and Clinker

• Revenue (Profit)

• Revenue• General and

Administrative Costs

Clinker and Cement

ProductionTransportation Distribution Downstream

BusinessOthers

(Outside the cement value

chain)

UTSG, IKSG, KSI SG, SP, ST, TLCC, UBOP

REQUIRED DEFINING THE STRATEGIC MISSION OF THE EXISTENCE OF SUBSIDIARIES

SILOG SILOG, SII SIB, SMI, SIIB KIG, SISI

Relationships between Business Groups

√ √ √ √ √ √

√ √ √ √ √ √ √ √ √

√ √ √ √ √ √ √ √ √

√ √

UTSG IKSG KSI SP ST SG TLCC SILOG SII SIB SIIB SMI KIG SISISTRATEGIC MISSION OF THE SUBSIDIARY

Ensuring core business continues to grow sustainably to meet customer needs

Optimizing costs through synergies along the value chain, flexibility and operational excellence achievement

Creating added value for Semen Indonesia through top-line growth of business activities outside the group

Supporting the future growth of Semen Indonesia and developing a strategic position through diversifying both new products and businesses

Securing Business

Sustainability

Optimizing Cost

Efficiency

Increasing Profit

Contribution

Developing New Edge

1

2

3

4

This business development is carried out based on the knowledge accumulated to date and with the support of enhanced competencies of people within the Company derived from Semen Indonesia Center of the Champs (SICC) activities as Semen Indonesia’s Center of Excellence, as well as the development of market needs in future. Development is also carried out based on synergistic considerations with the existing business, to ensure optimum product marketing and benefits for the existing businesses.

BUSINESS DEVELOPMENT INITIATIVESIn order to fulfill its long-term goals, the Company has currently embarked on the next corporate transformation stage, by strengthening the synergistic foundations from the Holding Company activities in the cement sector, and the activities of subsidiaries that have been supporting the Company’s operational activities to date. Strengthening these foundations covers various aspects, namely: organizational structure, work systems, performance appraisal standards, direction of development and

others. The subsidiaries are directed to support the business, namely PT Semen Indonesia (Persero) Tbk, by focusing on their business lines that support the Company’s business. The Company has also begun portfolio optimization to maximize the contribution of its subsidiaries to the Company’s net income.

In 2018, the Company successfully implemented several business plans by prioritizing the synergy between the business activities that is carried out.

Cement Business Development As part of efforts to strengthen its position in the Indonesian as well as the regional cement industries, the Company continued to expand to increase its production capacity. The expansion program was carried out through two approaches, namely: organic expansion, which relates to building new factories independently; and inorganic expansion, which refers to the acquisition/take-over of existing cement manufacturing factory/company.



In 2018, the Company implemented a cement business development program by initiating the process to acquire the third largest cement producer in Indonesia, PT Holcim Indonesia Tbk. The acquisition process began with the signing of the Conditional Sales Purchase Agreement (CSPA) on November 12, 2018, namely for the purchase of 80.64% shares of PT Holcim Indonesia Tbk from LafargeHolcim Ltd. The Company decided to take the opportunity from LafargeHolcim’s divestment under the consideration that the total acquisition costs were lower than building a new factory with the same capacity, and did not require time for construction (as it can directly produce), this acquisition is also carried out within the framework of implementing production capacity reserves initiative in anticipation for demand growth. The acquisition of Holcim Indonesia was completed on January 31, 2019 following the completion of the payment phase in accordance with the CSPA.

Following the completion of the acquisition, the Company’s total cement production capacity as of the beginning of 2019 increased to 53 million tons, compared to its position in December 2018 of 38 million tons. The increase in cement production capacity in 2018 was mainly contributed by the 2 new production facilities that became fully operational in Rembang and Indarung VI in Padang.

After the Holcim Indonesia acquisition, the Company is committed to conducting a total evaluation of all of its distribution facilities that it owns, thereby maximum synergy can be obtained with additional distribution facilities derived from the outcome of the acquisition process.

Subsequently, within the context of product diversification, the Company has established a joint-venture with PT Krakatau Steel under the name PT Krakatau Semen Indonesia (KSI). The KSI plant is operating and produces Ground Granulated Blast Furnace Slag since the end of 2017. The Ground Granulated Blast Furnace Slag is the raw material to produce cement slag mixture that is a direct outcome of the product diversification carried out.

The Company is currently the largest pioneer producer of slag cement in Indonesia. Holcim Indonesia’s acquisition provides the Company with the opportunity to develop new products that further guarantee’s future business growth. The move will also further open the Company’s potential

to optimize competitiveness through capacity building and commercialization of industrial product waste and thermal waste management, thereby the Company’s final products are cheaper, more competitive and simultaneously has the potential to generate additional revenue.

Cement Support Business Development Along with the changing status into a Strategic Holding Company, the Company will intensively realize various synergy programs capable of synergizing all potentials owned by subsidiaries, both those engaged in cement and non-cement business, into an integrated unit capable of delivering optimal performance results for the Group.

The Company strives to strengthen its presence in ready mix and concrete business by consolidating PT Varia Usaha Beton into PT Semen Indonesia Beton by acquiring the shares of PT Varia Usaha Beton from Dana Pensiun Semen Gresik. In addition, the Company also encourages business development of PT Semen Indonesia Beton through the control of quarry and the acquisition of several batching plants.

Steps taken by the Company to acquire PT Holcim Indonesia Tbk. has made its subsidiary, namely PT Holcim Beton, to be under the control of the Company. The Company has initiated a study to restructure the ready-mix business throughout the group so as to optimize synergies from the use of VUB, SIB and PT Holcim Beton’s assets.

Business Development of Building MaterialThe Company is committed to strengthening its presence in the building material business in 2018 and in the coming years through increasing the sales volume of building material products such as light brick, instant cement, corrugated roofing, etc. through its subsidiaries. In addition, the Company is also exploring cooperation with strategic partners that produce building material.

The Company began to show its work in supporting the completion of low-cost housing for low-income families through the use of building material products. In this regard, the Company developed prefab panel products, namely prefabricated housing components that are designed with precision, thereby construction of simple houses can be carried out in large quantities more efficiently in terms of time and costs.



Total revenue contribution from the cement supporting business is targeted to continue to increase, along with the intensification of commercial activities from cement supporting business development companies that began in 2016.

OPERATIONAL DEVELOPMENTAs part of the Company’s transformation from a cement manufacturer into a building material needs solutions provider, as well as a market-oriented company, the Company believes that production capacity superiority alone is not enough. The Company must have other additional advantages, which complement various advantages that it currently possesses. Additional advantages referred to are, among others: products that are cheaper yet are of a good quality, product variations in accordance to market demand, better service capabilities, and so forth.

In order to obtain these various additional advantages, aside from business development, the Company is fully committed to improving the operational performance at all levels. This is carried out by optimizing all operational aspects, namely by implementing programs pertaining to Infrastructure Development, Engineering Design Capabilities Development, Research and Development, Information Technology and Communications Development, as well as Innovation Programs.



DEVELOPMENT OF SUPPORTING INFRASTRUCTURE & BUILDING DESIGN COMPETENCY

BUILDING DESIGN WITH SWAKELOLAIn order to support the implementation of the Capacity and Competitiveness Management strategy, the Company has implemented various investment plans that are focused on efforts to enhance production capacity as well as to support efficiency and strengthen distribution capabilities. There are two ways include: (a) the acquisition of companies involved in cement production, (b) execution of strategic projects: building new factories, developing distribution facilities such as Packing Plant & Terminal (Ports), establishing Supporting Warehouses in various locations, Plant Upgrading (increasing capacity of the existing plant) and the Energy Efficiency Project.

These methods have been successful in enhancing the Company’s competitiveness by increasing its capacity, supporting efficiency programs, and expanding market coverage and distribution. The acquisition of cement companies and the execution of strategic projects are supported by the Company’s engineering capabilities and due diligence, as well as information technology that is developed in a sustainable manner under an excellent self-management project.

The total investment made between 2013 and 2018 amounted to approximately Rp21.1 trillion, with an average value of projects managed annually totaling around Rp3.5 trillion. The project consists

of investment to improve the existing plants, such as facility upgrades, and investment in new cement plants such as Rembang, Indarung VI, Aceh and Kupang, etc. with a brief explanation as follows:

1. Construction of the Indarung VI Plant in Padang The Indarung Plant VI, with a capacity of 3 million

tons per year, has been constructed using the self-management method. This project has been overseen by the Center of Engineering (CoE) of Semen Indonesia and OpCo of Semen Padang, as the project owner, which established the Indarung VI Project Team and implemented the SMIG Project Management method.

The ground breaking, which signifies the commencement of the development, was conducted on May 26, 2014, with a factory production capacity of 3 million tons per year. The project handover from the project team to PT Semen Padang was conducted on July 30, 2017.

Indarung VI, which is the most modern plant in Sumatra, utilizes the latest technology advancements, as well as the green industry concept. This modern cement factory is currently fully operational to support the Company’s performance to supply cement in Sumatra and the export market.

The Company’s competency in building factories and supporting production and distribution infrastructure is an intellectual capital that adds priceless value in support of Semen Indonesia’s efficient expansion steps in the years to come.

Therefore, the Company manages and capitalizes competency in the area of building design by gathering all intellectual capital in one integrated engineering system within the confines of the Center of Engineering (CoE).

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Indarung VI Plant in Padang

2. Development of the Rembang Plant (Semen Gresik) in Rembang, Central Java

The Rembang Plant Project, with a capacity of 3 million tons per year, has also been constructed using the self-management method. This project has been overseen by the Center of Engineering (CoE) of Semen Indonesia and OpCo of PT Semen Gresik, as the project owner, which established the Rembang Project Team and implemented the SMIG Project Management method.

Since the Rembang project is a greenfield plant, its construction has been more complex, including the land acquisition and development activities, as well as the installation of supporting infrastructure and production facilities.

Just like the Indarung VI, the Rembang Plant utilizes the latest technology, and is a modern project with a green industry concept. The ground breaking commenced on June 16, 2014, with factory production capacity of 3 million tons per year. The project handover from the Project Team to PT Semen Gresik was made on June 15, 2017.

Similar to the Indarung VI Plant, the Rembang Plant is fully operational to support the Company to supply quality cement to markets in Java, Bali and nearby.

Rembang Plant (Semen Gresik) in Rembang, Central Java

3. Project Development of Semen Indonesia Plant in Aceh The Company has been cooperating with partners to establish new plants in strategic locations. One of the

new plants will be located in Pidie-Aceh. This project is developed by PT Semen Indonesia Aceh, which is a joint venture between the Company and PT Samana Citra Agung.

The location of the (greenfield) factory and quarry is in Pidie, Aceh. More than 1,550 hectares of land have been acquired by PT Samana Citra Agung, including the area for the pier that directly connects to the Straits of Malacca and the Indonesian Ocean and there are already permits for mining and investment for the establishment of cement factories.



The procurement of the main equipment, and the cement plant development process of the Semen Indonesia Aceh plant, take into account market developments so that investment decision can be made on target and in an optimal manner. The construction of the Semen Indonesia Aceh plant will strengthen the Company’s competitiveness in the Sumatra market.

The construction of the plant is currently in the factory land preparation stage amounting to +60 ha along with its supporting facilities. The development’s completion will be adjusted accordingly to current market developments and the Company’s conditions.

Semen Indonesia Aceh Plant

4. Preparations for the Construction of Semen Kupang Indonesia Plant On November 23, 2016, the shareholders of PT Semen Kupang Indonesia resolved to construct a Cement

Plant in the Oematnunu Village, Kuanheum, Oenanek Subdistrict of the Kupang Barat Regency of the Kupang Province of NTT on an area of 500 hectares.

PT Semen Kupang Indonesia was formed pursuant to a Memorandum of Understanding (MoU) between PT Semen Indonesia (Persero) Tbk. and PT Semen Kupang (Persero) to establish a Joint Venture Company (JVC) to build an integrated cement factory in Kupang.

The project has been managed through the EPC system, as well as the self-management system (Grinding Plant, Packing Plant and Supporting Facilities). The Kupang Project is currently in the preliminary design phase of research, basic design, and design details for the Main Equipment package and supporting facilities such as water treatment and road access.

Semen Kupang Indonesia’s factory development project takes into account market conditions so that investment decisions can be made on target and in an optimal manner. The plant construction will supply the demand for cement in Nusa Tenggara and supporting markets in eastern Indonesia, as well as export markets in Timor Leste and Australia.



Semen Kupang Indonesia Plant

5. Upgrading Project Upgrading involves modifying or replacing existing production equipment to increase output. The

Company is upgrading its existing plant facilities in phases. Some of the upgrades involve quarry facilities, pyroprocess, coal mill, cement grinding and distribution facilities.

In 2018, the Company completed 5 production facility upgrading projects in a number of locations to increase its cement production capacity. In addition, the Company succeeded in finishing the construction of 2 packing plants in North Maluku and Bengkulu.

COMPLETION OF THE COMPANY’S PLANT CAPACITY ENHANCEMENT PROJECT IN 2018

Semen Padang

1. Mines expansion/relocation Project to the 412 ha Mining Area The project was carried out in 38 months, which included:

• Construction of Mine Equipment in the form of Overland Conveyors, Transfer Stations etc.• Construction of Electrical Power Distribution (EPD) • Scada Development• Construction of Site Facility in 206 ha. limit pit area• Land maturity

Mines Expansion/Relocation Project



2. Coal Mixing Facility Expansion Project The project was carried out for 42 months, which included:

• Incoming Flow Capacity Upgrade to Coal Mixing Storage from 650 tph to 1,000 tph• Outgoing Coal Mixing Storage Capacity Upgrade from 500 tph to 650 tph• Transport Flow Capacity Upgrade to Indarung IV from 150 tph to 650 tph• Transport Flow Capacity Upgrade to Indarung V from 500 tph to 650 tph.

Coal Mixing Facility Expansion Project

3. Cement Outflow Capacity Enhancement Project from Indarung to Teluk Bayur The project was carried out in 41 months, which included:

• This project that Enhanced Bulk Cement Transport Flow from Indarung V Silo to PPI • Additional Truck Scales in Indarung• Enhanced bulk cement Unloading Capacity from the train wagon in PP Teluk Bayur• Additional railway bulk cement wagons amounting to 24 units and modifications to existing aeration

system wagons• Increased bulk cement loading capacity to ships at PP Teluk Bayur.

Cement Outflow Capacity Enhancement Project from Indarung to Teluk Bayur



Semen Gresik

1. The Lime Trass Flexibility Project Installation of trass and limestone transport flexibility from the Tuban III to the Tuban IV Plant to reduce

Finish Mill down time and ensure the continuity of Finish Mill’s operation to achieve a cement production target in line with RKAP. This project was implemented for 20 months.

The Lime Trass Flexibility Project

2. Cigading Plant Grinding Facility Unloading Project The Unloading System has been built to meet the demands of the integrated material supply system at the

Cigading Grinding plant. This project was implemented for 26 months, with the following capacity:• Gantry crane : 40,000 tpd• Belt conveyor : 1,000 tpd• Bag filter (4) : 7,000 & 4,500 m3/h• Hoist crane : 3 units• Compressor : 1 unit

Cigading Uloading Project



Following the completion of all of these upgrading programs, the Company has completed the entire series of upgrading programs for its existing production facilities for the 2018 work plan with the aim of increasing existing factory production capacity.

3. Waste Heat Recovery Power Generation (WHRPG) Project

The WHRPG project’s location is at the Semen Indonesia Tuban Plant. This is a Joint Crediting Mechanism (JCM) cooperation project between the Japanese government (JFEE) and the Indonesian government, which in this case is Semen Indonesia, to utilize the exhaust gas heat from Tuban Plant 1, 2, 3 and 4 and is targeted to

generate ±30.6 electricity MW and reduce CO2 gas emissions by 122,358 tons/year.

By utilizing waste heat from each of the Tuban Plant lines, namely kiln burning on lines 1, 2, 3 and 4, two boilers are installed that will utilize heat from the preheater and clinker cooler, respective Suspension Preheater (SP) and Water Quenching Cooler Boiler (AQC). Steam produced from the SP & AQC boilers from all lines will be channeled to turbines & generator houses (TG House) to produce electricity with a design capacity of 30.6 MW.

This electricity is expected to supply the Tuban Plant’s electrical energy needs.

Rotary Kiln Clinker Cooler

Stack

SP Boiler

Steam Steam

Turbine Generator

AQC Boiler

Coal Fired Power Plant

EP Raw Mill SuspensionPre Heater

EP Stack

Hot Exhaust Gas

Hot Exhaust Gas

ELECTRICITY

Cement Production Process

20%

20%

80%

Reduction of Grid Power Supply = Reduction of CO2



Apart from its ability to utilize the waste heat from the Kiln as a WHRPG power plant, this also has other environmental aspects including:• Reducing CO2 emissions by 122,358 tons of CO2/year• Gas exhaust temperature is much lower; • Reducing water consumption for watering Conditioning Tower & Cooler• Improves the company’s image• Benefits for the community of:

- Jobs for construction - CSR allocation

Waste Heat Recovery Power Generation (WHRPG) Project

Waste Heat Recovery Power Generation (WHRPG) Project



4. Oba Sofifie Packing Plant Construction in North Maluku The packing plant of Oba Sofifie in North Maluku, which has a capacity of 500 thousand tons/year aims to

increase the Company’s market share in North Maluku and the surrounding areas. Ground breaking was held on October 4, 2016. Effective date for the work was in February 2017. This facility

began operations in March 2018.

Oba Sofifie Packing Plant Construction in North Maluku

5. Bengkulu Packing Plant Construction The Bengkulu Packing Plant has a capacity of 500 thousand tons aims to ensure the continuity of cement

supply in Bengkulu, so as to maintain the availability of cement. Ground breaking was on December 28, 2016. Effective date for the work was in March 2017. This facility

began operations in July 2018.

Bengkulu Packing Plant Construction



Pipa Unloading Pipe done

CENTER OF ENGINEERING STRATEGIC PLANBased on Semen Indonesia’s key strategy that serves as the Center of Engineering’s strategy, includes:- Growth strategy refresh Focus on core cement product with selective extension- Holding & Operating Model Reset- Cost Transformation for operation excellence and innovation

01

Redesign Business Process for FS Development

02

Fully Centralized Engineering

03

Implementing of Full Cycle Project

Management Scheme

CoE Initiative Strategy

To support its key strategy, the Company has initiative strategies, which include:1. Redesigning Business Process of FS Development in the Engineering phase, Front End Loading on the

scope of preparation for:a. Soil Testb. Detail Engineeringc. Final Project Planning (Scope, Budget, Milestones)

2. Fully Centralized Engineering for the management of the HoldCo EPC strategic projects, while for non-strategic projects the HoldCo only oversees the engineering process.

3. Implementation of the Full Cycle Project Management Scheme, by carrying out all the functions of Engineering, Construction, Commissioning, including Procurement and Accounting & Finance.



In addition to handling projects, the COE also provides engineering and project management services or EPC (Engineering Procurement Construction) services beyond the needs of SMIG while improving asset and resource utilities This presents an opportunity to develop SMI’s business portfolio to support the growth of the Company’s performance.

As for handling of corporate projects, the COE optimizes the intellectual capacity and property of the Center of Engineering (COE), as well as the capacity of the ICT and Project Software applications, to integrate all project information, facilitate communication with project sites, update project data and information in real time, and promptly resolve any issues found on the site. As a result, the target of Triple Constraints (Time, Budget and Quality) can be finally achieved.

Enhancing Engineering Capabilities and Project ManagementThe following strategies need to be implemented in order to respond to future challenges: integration of internal resources, network development and established management systems towards “Engineering and Project as Center of Excellence to Support Revenue Increase, Cost Reduction and Margin Improvement”.

The steps taken to achieve such objectives include:1. Integration of internal resources/in house

resources: integrating the capacity of subsidiaries in fabrication and construction, and workshops in Padang, Tonasa and Gresik

2. Integration of the engineering project with plant engineering (optimization, updates, retrofits, etc)

3. Network development in engineering, manufacturing and construction with local or global companies

4. Integration of innovation activities with engineering developments, and the implementation of innovations that are created, developed and refined to achieve the Company’s long-term copyright targets (intangible assets)

5. Establishment of engineering information systems, projects integrated with plant information systems, and other information systems related to engineering and projects by working with the ICT and the relevant subsidiaries.

The current engineering capability is reliable and proven that the development of completed and ongoing projects is carried out through swakeloka by utilizing its own capabilities in engineering and project management.

Intellectual property from personal, pattern, knowledge and experience (lessons learned) involved in engineering and dozens of projects carried out within the confines of the Semen Indonesia Group is crystallized in an integrated engineering systems within the Center of Engineering (CoE).

Programs completed in 2018 and will be continued in 2019 to achieve competitiveness with competitors, are:

Integration Engineering ActivitiesEngineering activities that were previously carried out separately in each subsidiary (OpCo), will be integrated into the Center of Engineering that covers the following activities:a. Design and Engineering Design and Engineering Development will be

centralized through cooperation with engineering partners to serve both internal and external customers, as well as upgrading the ability and certification of Engineer and Project Engineer in each discipline.

b. Engineering Development and Innovation Developments will be made to replicate the

existing innovations in Semen Indonesia Group, so as to increase the quality of the Company’s products. The Company will encourage a culture of innovation in order to generate savings. Partnerships with universities or institutions to conduct research in the fields of energy, raw materials, new technology and downstream products.



c. Plant Services Cooperation with engineering plant service to

provide main equipment inspection service, plant optimization, retrofit, failure analysis, and guide and direction to achieve operational excellence.

d. Engineering Database and Information Systems Development of database and information

systems including digital documents, software engineering, data research, engineering standardization data, engineering libraries and plant performance.

e. Construction and Project Management Cooperation with internal and external parties

in relation to the utilization of construction and fabrication capabilities to support the completion of the Company’s projects.

In addition, several programs that are currently being implemented include: a. The management of the SMIG Project, which

is based on the Project Management Body of Knowledge (PMBOK), and the climate and culture of CHAMP of Cement Indonesia by upholding Synergy, Militancy and Integrity (SMI).

b. The continual Implementation of the Project Management Plan to achieve Triple Constraints (Time, Budget and Quality) through the implementation of the Time Management Plan, the Cost Management Plan and the Quality Management Plan without neglecting other Project Management Plan Areas (PMPs). Other PMP areas will be developed and implemented for all SMIG projects on ongoing basis.

c. Mapping of the maturity of project management and the strengthening of existing weaknesses by knowledge sharing and learning.

Integration Engineering Development and InnovationIn addition to implementing existing innovations at the Semen Indonesia group, and initiating cooperation with universities or institutions regarding development and research in energy, raw materials, new technology and downstream products, the Company conducted other activities as follows:a. Continuing engineering standardization of all

equipment and departments.b. Cement plant processes and equipment research

to identify any updates and new technology.c. Recording and discussing lessons learned from

completed projects, and identifying future improvements so that projects can be completed based on the constraint targets: time, cost and quality.

Develop Engineering Information System Including:a. Developing a mobile database that can be

accessed and monitored through the intranet and the internet.

b. Continuing the creation, management and integration of inter-company document engineering database (OpCo).

c. Integrating and sharing information and engineering capabilities across OpCo and project management with the ICT Project Optimization at the Central Project Monitoring (C-Prom) Office. Furthermore, with the development of C-PROM, project information and monitoring can be integrated, information about project sites can be shared, and updates can be made on real time basis. In addition, any issues in handling a project can be detected early and promptly resolved.



In accordance with the corporate strategy in 2018, strengthening the holding and cost transformation functions is a key point. One of the initiatives to strengthen the holding and cost transformation functions is through supply chain optimization that seeks to enhance the Company’s competitiveness amidst the challenging conditions of the cement industry. In the process, optimizing supply chain management is not enough by simply focusing on achieving the most efficient cost. The initiative is also entailed by developing business processes along the supply chain to be more streamlined, effective, and efficient in an effort to meet customer demand. In addition, the management of information flow throughout the supply chain is also a concern of the Company to ensure the accuracy of planning and execution in the field.

Supply chain management certainly can not be separated from the relationship with external parties, such as suppliers, transporters/forwarders, distributors, and strategic partners. Therefore, the Company continuously strives to improve its standards in managing external relations and in the process the Company also utilizes its subsidiaries and affiliates. With the efforts to develop internal business processes and to upgrade sustainable external management standards, the Company is optimistic that it will be able to improve its supply chain management continuously and support the Company in facing business competition in the future.

2018 ACCOMPLISHMENTSA number of supply chain strategic initiatives and implementation carried out in stages in 2018 include: • Supply Chain Integration between all subsidiaries

by pulling the Distribution & Transportation functions and work units to the Semen Indonesia holding level, to obtain efficiency from transportation consolidation and distribution facilities (Lowest Cost Highest Margin). This includes renegotiation of sea freight rates by utilizing a larger transportation volume scale.

Reroute cement and clinker supply source based on the most efficient distribution costs, both during low season as well as in the peak season, so as to obtain maximum margins. Included in the rearrangement of the supply flow above is determining the most optimum source of cement and clinker for the export market while continuing to fulfill domestic market demand, so as to ensure utilization in all factories are at an optimum level.

Increase loading rates at ports so as to reduce port transportation and operational costs: - bulk cement in Tuban from 6,000 tpd to

8,000 tpd- clinker in Teluk Bayur from 6,000 tpd to

12,000 tpd- shipboard management in Biringkasi to

eliminate congestion

• Synergy with the Ministry of Transportation and SOE subsidiaries to reduce distribution costs:- Utilization of Sea Tolls to islands in Sumatra

and Eastern Indonesia.- Cooperation with PT Pelni in utilizing pioneer

shipping to reach small islands in eastern Indonesia.

- Cooperation with PT Kereta Api Indonesia to reduce the trucking density on highway to West Java and Jakarta.

2019 PROGRAM The entry of global cement players within the Indonesian cement industry that is experiencing an oversupply must certainly be addressed by strengthening competitiveness in distribution and transportation. To anticipate this competition changes, cost leadership and operational excellence will be key success factors to win the competition in the cement industry which is expected to be even tighter in 2019.

SUPPLY CHAIN MANAGEMENT



For this reason, Semen Indonesia Group’s Supply Chain has set out 4 (four) strategic initiatives in 2019, namely: 1. Increased distribution capacity to increase

throughput volumea. Increased clinker loading rate at the Biringkasi

portb. Dredging of ports that experience siltationc. Repair and add loading facilities at the

Rembang and Indarung factoriesd. Add pallet capacity at several distribution

pointse. Add ship loading facilities at a number of

packing plants in Sumatra and East Indonesia2. Improved transportation and distribution

management to enhance efficiency and order fulfillment ratesa. Implementation of Transportation

Management System to increase the utilization of the land transportation fleet.

b. Standardize business processes related to supply chains in all cement and supporting cement subsidiaries.

c. Strict implementation of Sales & Operations Planning and strengthening synergies between work units and subsidiaries related in the planning and monitoring process.

3. Continuing synergistic initiatives with external and internal parties to enhance efficiency, both in management of product flow and distribution & transportation costs: a. Sourcing-supply integration that was carried

out in 2018 will continue to be carried out to achieve a more efficient cost to serve.

b. Continue and expand cooperation with other SOE’s to reduce distribution and transportation costs.

c. Expand cooperation with third parties in utilization of raw material sources (gypsum or clinker), to achieve maximum efficiency

4. Improve integrated IT Supply Chain to enhance accuracy in decision making. Included in this initiative are: a. Application of RFID and GPS land

transportation technology in all cement subsidiaries to enhance fleet monitoring.

b. Standardization of IT supply chain systems used in all subsidiaries.

c. Implementation of IT Supply chains that are integrated with Marketing & Sales work unit’s IT solutions, up to the level of distributors and retailers.



INFORMATION TECHNOLOGY

ICT STRATEGY In accordance with the Company’s vision, ICT applies a strategy “to Become Strategic Partner and Business Enabler to Business Units”. In accordance with this strategy formulation, the strategy initiative implemented is to constantly innovate and business process transformation to achieve the Company’s objectives. The implementation of information systems within the Company is also intended to meet the needs and contribute to improving the welfare of Stakeholders.

INFORMATION TECHNOLOGY DEVELOPMENT MASTER PLANThe Company carries out various strategic initiatives in the area of ICT based on the ICT Masterplan. The ICT Masterplan is periodically prepared within 3-5 years and reviewed annually to be validated and updated. The ICT Masterplan (ICTMP) for the 2008-2013 period (ICTMP I) is concentrated on providing a single ERP platform system that enables the SMI to standardize its business processes among cement subsidiaries. The ICTMP for the 2014-2018 Period (ICTMP II) focuses on revitalizing and upgrading the ERP core module while expanding its capabilities to support the implementation of

Customer Relationship Management (CRM) and Supply Chain Management (SCM). CRM and SCM are key to enhancing a company’s competitiveness in the domestic and regional markets so that the company can experience growth. CRM will enable SMI to get closer to customers by providing better customer knowledge and support to win the market. SCM will strengthen the Company’s supply chain network by streamlining and integrating supply networks and enhance collaboration with vendors. SCM also supports the Company’s strategy to manage energy security and manage key risks. ICTMP I and ICTMP II has been completed.

The Company will continue the strategic ICT initiatives in ICTMP III that is currently being prepared. The ICTMP III initiative includes Customer Focus, Strengthening Holding and Transformation, Revenue Growth (through commercial superiority, building material growth, domestic and regional business expansion), Cost Transformation (by applying Supply Chain Optimization (SCM), Operational Efficiency, Company Service Cost Transformation) and the excellence shared service (on system, structure, people and culture).

In 2018, the Company completed various strategic initiatives in the field of Information Technology (IT) in order to support the focus of the Company’s 2018 initiatives. The Company also took important steps as part of the initial stage of the 2019 work program.

““



The following is the ICT Masterplan roadmap chart;

CONTINUOUS IMPROVEMENT FROM ICTMP I, TO ICTMP II and ICTMP III

ICTMP ICore ERP

ICTMP IIIAdvanced ERP

ICTMP IIExtended ERP

SAP ECCECC6

SCM Customer Focus

SAP ECC Strengthen Holding

CRM Transformation

SAP Core Module

• FICO• SD• MM• PP, QM• PM, PS• HR

Supply Chain Management

Integrated Mgt. of Supply Network:• Supplier Mgt.• Purchasing• Warehouse• Transportation• Distribution• Delivery

Revitalize SAP Core Module

• Maintenance Mgt.

• Integrated Plant Information System

• Project Mgt.• Performance

Mgt.

Customer Relationship

Mgt.Attact & Retain Customer Throught Integrated:• Customer Profile• Marketing• Sales• Support

Supply Chain Management

• CRM (Marketing Intelligence, Demand Planning, Channel Management, Customer Loyality & Promotionb Program, Sicial Media)

• E-Commerce• ERP for Subsidiary

& Channel• Mobile Apps

Revitalize SAP Core Module

Customer Relationship

Mgt.• CRM Infrastructure• Business Expansion• Governance• Collaboration• Non Business

Application• Internet of Thing• E-Office

• SCM (Warehouse Management, Transportaion, Management, Catalog, master Data Registration, Procurement, Asset Leasing)

• Financial Controlling

• Smart Plant• Production

Planning• Human Resource

Activities at Semen Tonasa plant, Pangkep,South Sulawesi




ICT WORK PROGRAM ACHIEVEMENTThe Company has completed various ICT service improvement and development activities, apart from management/support of existing services. The Company also sought to improve business processes in the area of ICT within the context of improving service quality.

ICT Service Improvement and Development In accordance with the Company’s work program to increasingly focus on customers and cost transformation, ICT carried out ICT development and improvement, which includes;1. Customer Focus;

a. CSMS improvementsb. Direct Sales application for bulk customersc. ERP Distributor Implementationd. POS (Point of Sales) implementatione. SIDIGI improvementsf. SCM portal improvements

2. Cost Transformation;a. Centralization of Sales and SCM Organizationb. Plant Improvement c. Information Systemd. Online Maintenance

Management of ICT Services Management of ICT services is carried out in accordance with the SLA set as a performance target. Throughout 2018, the Company can meet the SLA targets well.

Governance 1. Updating the guidelines for Holding and

Subsidiary governance (ICT field)2. Improvement of ICT business processes3. Planning a new ICT organizational structure to be

implemented in January 20194. Determination of new KPIs that are more

challenging to increase the strategic role of IT functions.

ICT WORK PROGRAM PLANThe Company views ICT as a key enabler for the Company’s strategic work program, whereby ICT always serves as part of the Company’s strategic work program. Work programs in the area of ICT

are aligned with the Company’s work program. The Company continues the focus of its work program to improve the control and consolidation of the Semen Indonesia Group’s functions. In relation with the focus of the work program, ICT has prepared work programs which includes, among others, the improvement of ERP systems for business reengineering and new standardization, system adjustments for transforming operating models, and ICT system integration as a follow-up to M&A’s corporate actions.

The ICT work program also pays attention to the development of the ICT industry itself, as in the case of the industry 4.0 trend. The Company believes it is necessary to adapt to the industry 4.0 trend by enhancing ICT usage to improve the Company’s capability in analytics and mobility, as well as utilize social networks and cloud technology.

The ICT work program plan that was established include: improving the Executive Information System (EIS), providing mobile apps to facilitate user access to ICT services, social network platforms for employees of the Semen Indonesia Group, and implementing cloud-based ICT services.

INFORMATION TECHNOLOGY GOVERNANCEThe Company applies ICT Governance based on the COBIT and ITIL framework as well as the Information Technology Governance Guidelines BUMN Reg-03/MBU/02/2018. The objectives of this guideline are:• Ensure that the company maintains a clear ICT

governance framework and that governance works effectively (ensuring governance framework settings and maintenance).

• Ensure that ICT-related investments and assets are implemented, managed and monitored optimally to support the achievement of corporate objectives and that data and information, including various activities and transactions on ICT, run under control at an agreed service level (ensuring benefit delivery).

• Ensure the optimal value of ICTs by maintaining a balance between the benefits/values generated by ICT and the level of risk and resources allocated to ICT (ensuring risk optimization).



ICT Management Organization Structure Based on the above objectives, the Company sets a policy to centralize ICT management by the IT function in Holding. All ICT activities are carried out by ICT functions within the Holding, while subsidiaries are users of the ICT services managed by holding.

ICT Maturity LevelThe Company always reviews the maturity level in managing ICT by periodically conducting an IT Maturity Assessment by external parties. This is important for the Company to know maturity level

position and to make improvements in the Company’s ICT management. The maturity level assessment results for the last 2 years reached above target, and in 2018, the Company received a platinum BUMN IT Governance award for its success as the top 10 SOEs with the best IT management. This shows that the Company’s ICT management has been well carried out.



RESEARCH AND DEVELOPMENT

QUALITY MANAGEMENTAs part of the sustainable growth process of the corporation, the Company strives to build Product Quality Management consistently and sustainably in order to ensure the long-term growth of the Company. The program focuses on Best Fit Quality, Meet Costumer Expectation and Technical Services.

Best Fit Quality’s strategic move is realized by maintaining high product quality to meet customer needs, meeting quality standards of clinker and cement products for consolidation at group level and standardizing laboratory accuracy index.

The strategic steps of Meet Customer Expectation are realized by proactively improving the identification of customer needs, as well as improving the adaptation of internal business processes to anticipate the dynamics that occur. The Company launched special products to meet the needs of special customers.

The strategic steps of Technical Services are realized by optimizing the collaboration of technical service resources found in each operating company and by more proactively improving the technical service practices to end users including handling customer complaints, product knowledge education, technical assistance and product trial with consumers, and support in marketing new products.

As part of efforts to ensure the quality of this product, the Company operates a production as well as product management pattern that is based on the application of an ISO 9001:2015 Quality Management System.

R&D TO COMPETEAs part of the corporate transformation process, the Company seeks to strengthen research and development activities through the Center of Research. The Center of Research is part of the Semen Indonesia Center of the Champs (SICC) initiative, the capitalization initiative of the Company’s previous excellence was accumulated in its subsidiaries. The goal is to build a competitive advantage of the Company and to ensure the sustainability of the business and preserve the environment.

Semen Indonesia Center of Research consists of two main activity groups, which are handled by two related departments, namely Department of Technology Process Development & QSHE as well as Research & Development Department of Product & Application.

Research and Development in Packaging Business UnitThe Company conducts research and development activities of packaging for the purpose of efficiency, reducing the impact of increasing price in raw material and reducing the use of kraft paper due to the effects of global warming, through:

The Company carries out Research and Development activities with the aim of maintaining and enhancing product competitiveness, apart from developing potential expansion of market reach and business scale development. For this reason, there are three main activity groups, namely: Quality Management, Development of Supporting Materials and Development of New Products.

““



• Development of more efficient materials for packaging bags,- Development of paper specifications from a

high gram type of above 80 gsm to a low gram type of 75 gsm and 70 gsm. These results have begun to be implemented in the production process.

- Development of woven packing specifications from the initial 3 ply to 1 ply.

Research and Development in Raw Materials and Fuels • Conducting research and development in the

utilization of alternative raw materials, such as:- Conducting research and development in

the utilization of other industrial waste as alternative raw materials including among others: fly ash, bottom ash, spent earth, COCS (crude oil contaminated soil).

• Conducting research and development in the utilization of alternative fuels, which are:- IB Technology - Impregnated Biomass (Pilot

Plant Mixing Pond). Biomass (rice husk) is

used as a mixing medium for some B3 waste such as Used Oil, Oil Sludge, and chemical waste that has calorific value.

- Utilization of biomass as an alternative fuel to support efficiency and a manifestation of the Company’s concern in reducing the effects of greenhouse gases (global warming).

Research and Development in Technology and Process The Company conducts research and development of technology of cement production process in the effective, efficient and environmentally friendly method that includes: • Increasing energy efficiency with the aim of

reducing the use of electrical energy & thermal energy by developing the following programs:- Reducing heat consumption and electricity

consumption of production systems through energy audits.

Material test activitiesin Thang Long Cement, Vietnam.




- Improving the reliability of plant equipment system through technical plant assessment

- Using low calorie coal 4000 & 3800 Gar.- Developing king grass as raw material of bio-

ethanol which can be utilized as alternative fuel.

- Developing coal dryer technology, with the aim of reducing the water content and increasing the calorific value of low calorie coal.

• Modifying equipment, optimizing process, reducing false air from combustion systems, and creating fan efficiency.

NEW PRODUCT DEVELOPMENTNew product development activities carried out in 2018 through the Product & Application Research and Development Department, includes:

Research and Development in Products and Applications Product and application research and development activities are conducted to produce high quality products, as well as developing new products to meet the needs of various customer segments and increasingly dynamic customer expectations as an effort to improve the Company’s competitiveness.

a. Cement Products• Super Plaster Cement (SPC) is a new

product developed for special application in Plaster, Filler and Brick Install (3 in one), complementing the existing product line. The advantages of SPC product are: easy to apply due to good workability, 30% higher adhesive quality compared to existing cement products, smoother application with no hair cracks on the walls, and more environmentally friendly due to lower clinker index than existing cement products.

• Low hydration Cement is the development of cement products with low hydration heat specifications (<60 cal/gram) for special project needs in mass concrete work requiring low concrete temperatures, such as reservoir projects, dams and other suitable applications.

• MaxStrength Cement is the development of a cement product utilizing a by-product from Krakatau Posco in the form of Blast Furnace Slag (BFS) and is the first in Indonesia conforming to SNI 8363: 2017 (Portland Slag Cement). Produced by the Cigading Grinding Plant, MaxStrength cement is marketed in Jumbo Bag and Bulk Packaging. The

advantages of using Portland Slag Cement in concrete mixture are as follows: higher final compressive strength; higher flexural strength; increases durability of concrete against aggressive environmental attacks such as carbonation, chloride and high sulfate; lower hydration heat, suitable for mass concrete casting; low permeability, and more environmentally friendly (green) with reduced CO2 emissions per product unit. This product is perfect for customers who need cement with low hydration heat and high durability.

• White Mortar, a special product that consists of a mixture of cement, fillers and additives made for decorative building purposes. White Mortar can be used for application of plastering, puttying, ceramic grout, and other decorative purposes. The advantages of White Mortar include: has good workability that is easy to process, applying white mortar results in a smoother finish as it does not cause hairline cracks on walls, and is more environmentally-friendly due to the mixture’s low cement index.

• Optimize Index Clinker on PCC (Portland Composite Cement) cement with the addition of a 3rd material to support production cost efficiency, by maintaining performance in accordance with consumer needs. PCC cement is marketed in the form of Bag and Bulk packaging. PCC cement is used for general construction for all concrete qualities, multilevel building structures, bridge structures, concrete road structures, and concrete building materials, and others.

b. Concrete Products• Porous Concrete is an environmentally friendly

porous concrete product as a solution in flood prevention and water catchment area creation. Porous concrete have a high porosity enabling better water draining to lower levels (drain rate 81 – 730 liter/minute/m2). There are two types of porous concrete products, namely Porous Paving and Porous Ready-Mix Concrete. Porous Concrete product can be applied as hard surfacing for parking lots, garden paths, sidewalks, or streets in housing complexes with low intensity traffic. Porous Concrete application in the form of Porous Paving has been tested in several locations, including the parking area at Universitas Internasional



Semen Indonesia (UISI), Tourism Village of Pinge-Bali, and Tourism Village of Borobudur Temple with very satisfying result and is now marketed by Varia Usaha Beton. Meanwhile, the Porous Ready-Mix Concrete product has been trialed at the parking lots at Campus A & Campus C Universitas Internasional Semen Indonesia (UISI), Akademi Komunitas Semen Indonesia (AKSI) campus, and Gedung Pusat Penelitian Semen (PPS) Gresik Plant. Porous Ready-Mix Concrete products is now marketed by Semen Indonesia Beton (SIB).

• Rapid Strength Concrete (RSC) is a high-value concrete product with 4-, 6-, 8-, 12-, and 24-hour open traffic time according to construction needs. RSC is suitable for overlaying of road concrete surfaces, machinery foundation, slab/flooring, etc. RSC is manufactured by Semen Indonesia Beton (SIB) under the brand ‘FLASHCRETE’, and has been used for the Jagorawi, Merak-Jakarta, Balaraja, and Lingkar Serpong toll, additional lanes at West Tangerang-Cikupa toll road, rigid pavement reconstruction at Kampung Rambutan and Kebun Jeruk toll gates, and others. Currently under development for marketing is a fast-dry concrete product with an open traffic target of 3 hours.

• Self Compacting Concrete (SCC), is a development of a concrete product that has the ability to flow and compact without the use of a vibrator. This product is very suitable to be applied at building with tightly enclosed design and building with arched architectural design. This product has been applied at the plant site and projects constructed by the Company.

c. Building Materials • Lightweight brick CLC (Cellular Lightweight

Concrete) is a conventional lightweight brick product without an autoclaved process. Currently, CLC lightweight brick technology still can not compete with lightweight AAC (Autoclaved Aerated Concrete) bricks so that research has been made to improve its quality in order to compete in the market.

• Interlocking Brick is the development of interlocking brick products that can be used as a substitute for conventional bricks with the advantage that the installation process is faster, thereby the process for building houses becomes faster and more efficient. Interlocking Brick is specially designed wherein the bricks can interlock to one another. Instant construction of type 36 interlocking brick house only requires 15 days (8 hours/day) for construction with an average workforce of 6 people/day. Interlocking Brick has fulfilled SNI 03-0349-1989 (concrete brick for wall pairs standards). The instant interlocking brick house is marketed under the product name of SI INDAH (Interlock Dahsyat Akurat Hemat) and has a prototype in 3 different locations, namely the SMI Gresik Factory, Karanglo Village - Tuban, East Java as well as Sridadi Village - Rembang, Central Java.

STRATEGIC INITIATIVES OF SEMEN INDONESIA CENTER OF RESEARCH IN 2018Product & Application RD focuses on developing the best product and application products to meet the increasingly specific and diverse customer needs, creating green product, proactively seeking solutions for future customer needs and supporting the company’s development in the downstream of cement products such as ready mix concrete, precast, prestress, building materials, properties and other related applications.

The Company conducts Research and Development as a strategic step in improving the Company’s performance through product quality improvement program, increasing productivity in running cement production process, creating cost efficiency, creating new revenue for corporation, creating sustainable development, and enhancing corporate image to overcome increasingly competitive competition.



COMPANY’S INNOVATION MOVEMENT

The Innovation Movement of Semen Indonesia is part of the Company’s strategy to continue to grow in the midst of disruption era in supporting sustainable business by enhancing the Company’s competitive advantage in order to cope with the increasingly tightening and dynamic cement industry competition and to support the development of new business with high competitiveness.

“

“The Innovation Movement is a strategy to strengthen the innovation culture and further strengthen the Company along with the growth of creative and innovative ideas from Semen Indonesia Group’s employees. The Innovation Movement is focused on achieving the Company’s main strategy, namely:• Maximize results from existing core business,

achieved through innovation that result in cost leadership and operational excellence

• Grow, Expand, and Diversity, achieved through innovation that results in effective supply chain management, product development, and human development

• Transform strategic direction, cultures, values from manufacturing to solution providers for building materials, achieved through innovations that enhances in human development and business development

Innovation to Enhance Sustainable CompetitivenessThe changes in business conditions with increased competition brought about by the over-supply occurred simultaneously with limited demand growth, cannot be sufficiently addressed by changes in the way business is done but must also be accompanied with changes in business fundamentals. The innovation movement, through efforts to extract creative ideas, is one strategy to respond to the challenge. Creative ideas that can be explored include efforts to improve efficiency in the use of raw materials, energy, maintenance costs and optimization of inventory management and transportation distribution and product diversification.

A number of innovative ideas that were applied to respond to the challenges includes: 1. POROUS CONCRETE, an eco-friendly porous

concrete application that enhances the absorption of water to the soil

2. RAPID STRENGTH CONCRETE, Flashcrete application in accordance with Highway construction needs that require fast setting time

3. INTERLOCKING BRICK, an eco-friendly lego brick wall product for instant home construction

4. PARAPLUG TWISTER, an overhaul management system from a series that becomes parallel to accelerate the overhaul time and re-factory decenter application of the Tuban 2 Plant preheater siclone tube to extend the lifetime of the center tube equipment

5. ASAP-SALES KOKOH, Strong sales application to enhance the Company’s sales and competitiveness

6. SITOS-BILDERS, develop an e-commerce building materials platform to maximize the potential for building materials

7. Semen Gresik Community Challenges, Enhancing the Company’s reputation & engagement among the generation of millennials and the Rembang community

8. RECLAMATION, creating sustainable management of the Tuban plant’s mining environment while at the same time deal with environmental issues that may arise in the community

9. Waste Heat Recovery Power Generation (WHRPG) Improvement, Redesigning slide saddle from type slot railing to improve WHRPG’s operational performance

Management and Development of Innovation ManagementThe Company develops innovation categories through an innovation group approach, which includes:• Strategic Innovation, innovation that is strategic

in nature to find breakthrough processes, new products and businesses that are well managed

• Incremental Innovation, innovation that is operational in nature to enhance cost leadership and achieve operational excellence



The level of innovation produced, include: Operational Innovation, Product/Service Innovation, Strategic Innovation, Management Innovation, and Open Innovation.

The Company also manages the innovation movement overall, which encompasses 3 aspects, namely:• Human Readiness, which stimulates employees to

understand current conditions and competition to encourage creative ideas in response to the challenges. Socialization, promotion, education and appreciation are always provided to ensure the sustainability of the innovator’s participation in creating innovations.

• Soft Structure & Methodology, which is a policy to implement innovations, innovation methodology standardization, Innovation Management System Application development and implementation of Semen Indonesia Award on Innovation (SMI-AI) which is an important instrument to realize innovative ideas so that they are not only serving as tacit knowledge but also contributing to the Company’s performance.

• Benefit, which is the management of innovation which includes the monitoring of implementation progress, certainty of innovation replication program and intellectual property protection as the Company’s assets.

The Company, which provides a forum for innovation competition as a form to sustainably stimulate the innovation movement, is expected to create a new culture of innovation as a value characteristic of Semen Indonesia’s employees and encourages all employees of the Semen Indonesia Group to enhance their proactivity in identifying problems and opportunities to create creative ideas and solutions that provide added value to enhance the Company’s performance, enhance competitive advantage and consolidation within Semen Indonesia, while appreciate efforts of the employees, business units and corporations that have a positive impact on improving the Company’s performance overall through the Semen Indonesia Award on Innovation (SMI-AI).

The Semen Indonesia Award on Innovation (SMI-AI) is a company

competition designed to stimulate a new culture of innovation as

the defining cultural value among employees of Semen Indonesia in support of Company performance

improvement.

Innovative products created by Semen Indonesia

Group’s employees resulted in the 2018 Semen Indonesia Innovation Award activities is a culmination of the innovative works that have been implemented and provided benefits to the Company.

The Company confirms the results of its innovation works through an innovation book, namely:1. The Power of Innovation, which contains results

of the Company’s superior innovations to address the Company’s business challenges and environmental issues

2. Cement Production Process, which contains the practical stages of the cement production process along with the results of collaborative innovation between the Company and JFE Engineering, Japan related to WHRPG

Innovation Movement Awards The success in the implementation of the Indonesian Cement Innovation Movement (GISI) in the Company is evidenced by the national and international awards bestowed upon the Company, among others:1. National Productivity & Quality National Level

Innovation Convention (TKMPN) in Batam awarded: 6 Platinum, 12 Golds, 1 Silver

2. International Level Innovation Convention• International Convention on Quality Control

Circle (ICQCC) in Singapore awarded: 6 Golds• Asia Pacific Quality Conference (APQC) in

Abu Dhabi awarded: 1 Triple Star

2019 Challenges & StrategyThe Company’s transformation in response to increasingly fierce competition, changes in market conditions, as well as a future that is unclear, unpredictable and uncertain, requires increased creativity and a quality of innovation that is more efficient and effective and guarantees the Company’s adaptability and agility to become the leading practice in the cement business. For that purpose, the Company has established several strategies to strengthen innovations in the operational field, new products as well as innovate in the area of business models and management systems to ensure enhanced value added and best practices are applied throughout the Company’s operational phases.

Gerakan Inovasi Semen Indonesia (Semen Indonesia Innovation Movement/GI-SI) is an important element in improving competitiveness through Operational Excellence and in support of the Company’s Cost Transformation Program.


107 Market Review

117 Operational Performance Review

125 Financial Performance Review


MANAGEMENT DISCUSSION

AND ANALYSIS



MANAGEMENT DISCUSSION ANDANALYSIS

The Company views the tight business conditions in 2018 by achieving various internal consolidation programs by applying comprehensive transformation strategic initiative, with the aim of improving competitiveness and flexibility for the entire Company in achieving growth opportunities from potential improvements in future business conditions.

As a result, the Company registered substantial improvements in operational as well as financial performance that further ensures the creation of new performance levels in the future.

“

“As a result of global economic pressures, the domestic economy’s growth was moderate, as much as 5.17%, which was largely due to the high level of domestic consumption and massive infrastructure development. This led domestic cement demand to experience limited growth, of as much as 4.8% or as much as 69.6 million tons.

The limited increase in cement consumption in the domestic market led to oversupply conditions to remain as reflected by the sizeable total national cement production capacity of 108 million tons compared with national consumption of 69.6 million tons. However, export volume increased 93% to 5.6 million tons, thereby average capacity utilization in 2018 amounted to 69.5%, which was higher than 64.5% in 2017.

The applied paradigm shift in Marketing allowed the Company to continue to achieve satisfactory sales growth of 1.2% to reach 27.4 million tons, aside from registering 3.1% increase in average sales price.

The implementation of the latest marketing strategy led the Company to book an 10.5% increase in cement and slag product income amounting to Rp27,729 billion.

The Company also successfully booked a 8.6% increase in non-cement product income amounting to Rp2,959 billion.

As part of the paradigm implemented in response to increasingly higher demand for bulk cement and the importance of meeting the demands of corporates and project operators, the Company launched the formation of the Corporate Marketing Division and introduced the Key Account Manager function whose task is to provide the best services to the corporate customers.

The Company successfully optimized sales margins through a Centralized Strategy and Integrated Operation, thereby resulting in 17% higher gross profit year-on-year of Rp9.33 trillion from a previous of Rp7.96 trillion, and 1.8% growth in gross profit margins to 13.8% in 2018 from 28.6% in 2017.

The success in generating higher income was accompanied by its improved ability to control expenses, thereby leading the Company to book a 90% increase in net profit of Rp3.079 trillion from Rp1.621 trillion in 2017.

The Company’s earnings per share also increased 90.1% to Rp519/share from Rp273/share.

The positive financial performance led the Company to book EBITDA Margin growth of 21.42% and Profit Margins of 10.03%.

The Company’s ability to pay its debts continues to be under control as reflected in the increase in the current ratio from 1.6x to 1.95x, lower gearing ratio from 0.35 in 2017 to 0.312 in 2018, and EBITDA to interest expense that continues to be maintained at 6.9x.



MARKET OVERVIEW GENERAL OVERVIEW OF THE GLOBAL AND NATIONAL ECONOMY IN 2018The global economic conditions throughout 2018 can be described as dynamic, full of uncertainty and therefore, challenging. The continued US economy’s normalization program by the The Fed and tensions brought about by the US trade relations with its trading partner, namely China, were the main drivers. As a result, economic growth in the major countries across the globe did not achieve its expected targets. Global economic uncertainty also resulted in low world trade volumes as well as agricultural and mining commodity prices. These conditions led influential multilateral institutions such as the International Monetary Fund (IMF) to revise its global economic growth targets from its previous estimate of 3.9% to 3.7%, of relatively the same as that achieved in 2017.

However, support from domestic consumption, realized infrastructure investment and solid macroeconomy allowed the national economy to remain resilient. In accordance with projections from credible institutions, such as Bank Indonesia and the World Bank, Indonesia’s economy grew moderately by 5.17%, which was lower that the growth target stated within the 2018 State Budget of 5.40% but this figure was better than the growth achieved in 2017 of 5.07%.

Cement loading and unloading activities at Teluk Bayur Semen Padang Port




This growth was achieved by maintaining strong macroeconomic foundations, as reflected by the inflation levels that remained under control, of 3.13% from 3.61% in the previous year. Meanwhile, BI’s benchmark rates increase to around 6.0% in response to the increase in The Fed interest rates. Despite continuing to be at a relatively high rate, Indonesia’s foreign exchange reserves amounted to US$120.65 billion, but was lower than in 2017 of US$130.20 billion that reflects the pressure on balance of trade.

As a result of he pressure on the Balance of Trade, the Rupiah exchange rate weakened by around 6.87% to Rp14,481/US$ from Rp13,550/US$ in 2017. This weakening was still better than the weakening exchange rates of other countries in the Southeast Asian region. Bank Indonesia believes that the weakening Rupiah continues to be within a reasonable level and reflects the response to the likelihood of a follow up increase to the benchmark rates in the US or the Fed Fund Rate as well as concerns towards the economic growth slowdown in Europe and China.

In the financial market, as stated within the World Bank East Asia and Pacific Economic Update’s October 2018 edition, Indonesia is perceived to have sufficient ability to pay its debt as the level of foreign debt is still relatively low; strong capital and liquidity adequacy of the financial sector; as well adequate fiscal and monetary foundations.

Various structural improvement efforts that the Government continues to apply resulted in a number of increases in Indonesia’s global competitiveness as reflected within the Global Competitiveness Index that was issued by the World Economic Forum in October 2018, Indonesia is ranked 45th, or up two places from the previous year’s ranking of 47th. Meanwhile, Indonesia’s foreign debt rating, in accordance with the rating of three international rating agencies, namely Fitch Ratings, Moodys, and Standard & Poor’s (S&P), continued to receive investment grade ratings. In April 2018, Moody’s Investor Service (Moody’s) even upgraded Indonesia’s Sovereign Credit Rating (SCR) from Baa3/Positive Outlook to Baa2/Stable Outlook. As a result, Moody’s, together with Japan Credit Rating, as well as Rating and Investment Information, Inc has improved Indonesia’s debt rating to one level above investment grade.

3.79

6.50

6.00 5,75

7.507.75 7.50

4.754.50

6.006.23

5.585.02 4.79

5.02 5.07

5.17

4.30

8.38 8.36

3.353.02

3,613.13

GDP BI Rate Inflation Cons ConfidenceInt’l Reserves (US$ Billion)

116.6 116.6

117.6

117.6

107.5

115.4

122.4

111.3

126.6

99.4

111.9

105.93

116.36

130.45

120.65

Indonesian Macro Economic Indicators

2011 20112012 20122013 20132014 20142015 20152016 20162017 20172018 2018



Indonesia is targeting economic growth of 5.30% in 2019, with inflation target maintained at 3.5%. This implies a level of 0.13% above the realized 2018 economic growth of 5.17%, which reflects the Government’s prudent stance in dealing with the global economic conditions that is projected to continue to be not conducive, with the World Bank as well as the IMF projecting global economic growth to remain the same as the growth achieved in 2018. The IMF, as well as ADB, views Indonesia’s economic growth to be relatively moderate.

As a result of this economic growth projection, Indonesia’s economic value rating, which as of the end of 2018 was included with the US$1 trillion group of nations, will likely increase. As shown in research carried out by Pricewaterhouse Coopers (PwC) in 2017, Indonesia will rank 5th by 2030 with an estimated GDP valued at US$5,424 billion and rise up the ranks to 4th in 2050 with an estimated GDP value of US$10,502 billion based on the current GDP using the Purchasing Power Parity (PPP) calculation method.

These positions will turn Indonesia into a big emerging market as Indonesia’s position will place them as Southeast Asia’s strongest economy. These projections certainly also portrays the potential demand for building materials from the general public, as well as from the construction and property businesses that continues to increase in the years ahead.

Based on these macro-economic indicators, many economists believe that Indonesia’s economy in the years ahead will have the tremendous potential to once again generate moderate growth with prospects that continues to improve in the times to come.

Domestic consumption in the years to come will continue to serve as the backbone for Indonesia’s economic growth. This domestic consumption-based economic growth proves to be able to buffer Indonesia from the global economy’s negative impacts. By taking into account various macro indicators and policies applied by the Government, the domestic consumption-based economic growth that is currently backed by increased real investment, will continue to prevail in the years ahead.

Therefore, in the years ahead, along with the completion of the development of various basic infrastructure projects targeting potential regions, including potential basic maritime infrastructure projects through the construction of ports, domestic cement consumption will grow to balance the growth in national production capacity that has grown rapidly in anticipation of this rising demand.



INDUSTRY OVERVIEW

Economic growth achieved in 2018 that was still fairly limited, led cement demand for retail consumers to grow on a limited basis, resulting in limited domestic demand growth overall. Moreover, continued high production capacity in 2018 reached 108 million tons resulting in relatively high levels of overcapacity of 33 million tons.

This implies that the oversupply conditions that began to occur since 2014 is expected to continue in the years ahead. This condition is reflected in the following table.

Table of developments in capacity, domestic cement demand and average utilization of 2015-2018

Description Unit 2018 2017 2016 2015

Install Capacity Million Tons 108 108 93.1 80

Domestic Demand Million Tons 69.6 66.3 61.6 62.0

Export Sales Million Tons 5.6 2.9 1.6 1.0

Total Production Million Tons 75.1 69.3 63.2 63.0

Utilization % 69.5% 64.5% 67.9% 79.0%

The domestic cement market characterized with shifts from bag cement to bulk, or from the retail market to industry, is in line with the increased use of cement byproducts in Indonesia, thereby influencing decisions on brand use (from one based on emotional attachment to rational), which takes into account the economic value from the choice of bulk cement products. This condition is reflected in the chart below.

CAGR Bulk: 13,1%, CAGR Bag: 5%

2010 2012 2014 2016 20182009 2011 2013 2015 2017

16% 16%18%

20%21% 22% 23% 24%

25%27%

6.2 6.6

8.8 10.8 12.2 1314.5 14.8

16.9 18.8

32.8 34.2 39.2 44.1

45.746.9 47.5

46.8 49.450.8

Bag Vol Bulk Vol Growth Bag Growth Bulk Bulk Portion

Massive basic infrastructure development in various regions in Indonesia drove bulk cement marketing trends higher once again. This condition implies continued market growth, from a retail market to industrial market, which apart from creating new opportunities also leads the Company to adjust marketing strategy.



The limited demand for cement in the domestic market, and increasing number of new players has resulted in an increasingly borderless product marketing area, namely destined for the regional/export markets. The export volume trend for cement and slag in recent years continues to rise as shown in the chart below.

Indonesian Export Sales(Million Tons)

5.7

2018

2.9

2017

1.6

2016

The growth in export markets has led the Company to begin to change its perception in doing business. The cement and slag product market as well other related products currently and in future, is no longer limited to the domestic market but also covers the export markets. As a result, the sales growth target going forward will always take into consideration the supply destined for the export market.

The increase in demand for bulk cement along with the growth in demand for various products as well as related services when interacting with project operators as well as business owners, has led Semen Indonesia to shift the focus of its business strategy from a cement manufacturer to a solutions provider for building material needs.



CHANGES IN BUSINESS CONDITIONS

As stated in the “Industry Review” Sub-Chapter, the condition of the cement business in Indonesia since 2014 continues to experience pressure due to several reasons, namely: excess production capacity, a flood of imported products, slowing consumption growth and changing demand patterns from bagged cement to bulk cement which are increasingly triggering the fierce selling price competition from all cement industry players.

In 2018, cement demand again showed strengthening, albeit limited, mainly driven by government infrastructure spending and stable national economic growth. The limited growth in demand is predicted to continue until 2019. So this over-supply condition is expected to continue for the next few years.

MARKETING STRATEGY INITIATIVES

The Company has considered all opportunities, as well as risks that could make the cement business more challenging. Through the Marketing and Supply Chain Directorate, the Company has initiated a series of strategic marketing initiatives to ensure optimal sales volume for the Company, as well as strengthen its position as a leader in the domestic market.

The Company has introduced several strategic initiatives by promoting market share and market management, and revenue and cost management. The key to the success of this strategic initiative is: • Utilization of optimal production capacity so that

the product price per unit remains competitive.• Consolidation of brand equity with cement

viewed as a strategic commodity.• Efficiency in transportation, to ensure the

Company delivers products to its consumers within the shortest possible time at the lowest possible cost. To achieve this, the Company has adopted the Supply Chain Management approach.

To cement its position as a market leader, the Company has adopted several strategic marketing initiatives, including:• Changing the Sales Paradigm from Production-

Oriented to Customer-Oriented. The Company defines customers as direct users

of its cement products. The Company’s ‘direct to customer’ approach involves establishing a direct interaction with its customers, both retail customers and corporate customers.

For retail customers, the Company still relies on distributors to sell its products. As for corporate customers, the Company has established the Corporate Marketing Unit, which focuses on bulk cement demand, as well as bag cement demand from real estate companies, contractors and others. This also includes the concept of synergy among SOEs in marketing their products.

The Corporate Marketing Unit will continue to market construction-related products in service-and-product packages, by working in cooperation with the Company’s subsidiaries.

Illustration of Changes to Customer Focus

PARADIGM SHIFTINGFrom Production Focus

to Customer Focus

1. Know Our Customer

2. Building Strong Relationship with Customer

PRINCIPAL

DISTRIBUTOR

CUSTOMER

CORPORATEMARKETING



• Expanding marketing focus from domestic to regional

This approach has been adopted to ensure that the Company’s sales volume remains high, and that its production facilities are utilized to a maximum. Accordingly, this approach supports the implementation of a capacity management strategy.

Under this approach, Semen Indonesia’s sales volume is no longer dependent on the demand of the domestic market, but on regional market demand, covering the ASEAN Economic Community (MEA), or a larger area, as long as this remains economically viable in terms of transportation costs.

To support the implementation of such marketing expansion initiatives, the Company has established PT Semen Indonesia International (SII), which will play a role in stabilizing the Company’s cement sales volume. Through PT SII, the Company’s cement sales volume is no longer dependent on the demand and supply of cement to the Indonesian market. As such, the Company will be able to optimize the potential export market of cement products if there is a decline in domestic demand, and meet domestic needs as demand rises.

As part of this strategic initiative, starting in 2018 going forward, the Company sets definite targets for export sales volume. Thus, in 2018, the Company recorded total export sales volume for cement and clinker at 4.05 million tons. In 2019, this is targeted to increase to 4.9 million tons.

• Diversification through the development of cement-derived products

The Company is making efforts to expand its focus as a cement producer to a provider of material building solutions. This is being done by strengthening the Company’s business units engaged in cement derived products, through the consolidation of PT Varia Usaha Beton and PT SGG Prima Beton into PT Semen Indonesia Beton (SIB), which has a range of evenly distributed marketing areas throughout the country.

Cement delivery activities




PT SIB has been involved in the production of various downstream cement products, such as precast, readymix concrete, porous concrete and flash concrete. In the future, the Company plans to produce a wide array of building material variants to meet consumer demand, both in retail sales, the B2B segments and for other end users.

• Expanding bulk market share The Company is expanding its market by

optimizing the role of new business units in the Corporate Marketing Department to focus on

specific customers, both state-owned and private companies. This is being done by expanding industrial segment growth and by focusing on growth opportunities, specifically sales in the industry segment.

The Company’s Corporate Marketing Department has introduced product bundling sales, which include cement, concrete, building materials, and construction for corporate end users.

Notes: SIB: Semen Indonesia BetonVUDS: Varia Usaha Dharma SegaraVULS: Varia Usaha Lintas Segara

Jasa DermagaKawasan Industri

CEMENT

Sea & Land Transportation

Services

Information Services

Cement Slag

Pier Services

Industrial Estate

Slag, Fiber, Board

Coal

Packaging

Single Product

Sea TransportationConstruction

Building Material

SIB

Swadaya GrahaSemen

Light Steel

BoardCement

VUDS

VULSTonasa Line

• Implementing direct sales for retail bag The Company implements direct sales through the utilization of digital applications. The Company has

introduced the co-creation program to enhance the role of distributors and increase direct sales.

• The role of Semen Indonesia International Semen Indonesia International is a strategic partner when it comes to searching for new export markets.

This is a step toward optimizing export opportunities for the subsidiaries of the Semen Indonesia Group and controlling the regional market.

• Marketing of new derivative products through The Company determined to add a variety of derivative products by preparing product marketing channels,

as follows.• Better coordination with the R & D unit to reach out to customers and better fulfill their needs. • Systematically increase the role of Innovation Award as one of the strategies to initiate the creation of

alternative derivative products.• Empowerment and development of subsidiaries as a strategic tool to increase revenue, particularly

those that are in the cement product business, through the process of introduction, sales and marketing of new products.



• Marketing Communication Program to improve engagement with customers and their perception of the Company through several programs• The campaign leads to quality improvement in

products, packaging and after sales service.• The engagement program involves the

principals and the entire channel of the Company’s customer groups through customer channel media and digital communication programs.

• Brand equity is maintained by strengthening the Company’s branding and distribution channels for both retail and bulk markets.

• Revitalizing Distributor Role The Company has reviewed and decided to

implement the distributor revitalization program. Currently, as at year-end 2018, there are 223 distributors for the Company’s cement products in Indonesia’s market, as well as 37 distributors for the domestic Vietnamese market.

• Focusing on Marketing Synergy The synchronization of the Company’s marketing

program continues to involve the entire Operational Companies and currently owned main brands in the domestic market. One of the main activities undertaken has been the optimization of distribution networks covering management, assessment and adjustment of product delivery with local market potential to optimize prices and revenues.

To maximize such marketing synergy, the Company has further developed the Supply Chain Management (SCM) program, including adopting Outbound Logistic activities to deliver optimal results.

• Customer Service The Company’s customer service provides

solutions to complaints submitted by customers about the Company’s products. Further information about the Company’s Customer Service can be found in the Corporate Social Responsibility Section.

MARKETING COMMUNICATIONMarketing Communication plays a role in maintaining an interaction between principals and consumers to shape, expand, and increase awareness, and improve customer satisfaction and loyalty.

In addition, marketing communication also serves as one of the tools to sustain and maintain the Company’s brand equity which currently consists of 3 brands of domestic cement products and 1 brand of regional cement product. The Company’s plan is to make its product brands well known throughout the region.

To achieve these objectives, the Company utilizes online and digital applications to directly reach out to more customers, and maintain customer engagement. The various online and digital programs that have been utilized by the Company include:• Digitization of programs for each customer

segment The Company has developed digital programs

for each customer segment in order to improve customer engagement and loyalty. These programs are Strong Business (program for stores), Strong Family (program for end users), and Building Expert (program for construction workers)

• Launching of Customer Care program “Konek-SI” The Company’s customer service program

integrates several existing programs, such as Call Center, email, live chat, social media (twitter, facebook), as a media to improve the quality of customer service, for after sales service, complaints, and information and assistance.

• Development of online communication channels: corporate website, social media (twitter, facebook, instagram, etc.) with the latest news related to corporate, product information, etc.

• Digital delivery of news on major corporate events on social media, online communities, online news portals, etc.

• Activities to improve public engagement, such as exhibitions and online competitions.

• We-Green Industry Publication which is an environmentally-minded community portal established by Semen Indonesia.



In addition to the development of communication activities through online and digital media, the Company continues to engage in customer meet-and-greet program activities, customer service, awards, and training and certification of construction workers, to enhance customer loyalty as well as to attract potential customers.

Conventional media is still being utilized mainly in the delivery of taglines for brand communication. This is done through outdoor media (billboards and distributor/store name boards) and print media including activities undertaken to communicate messages and corporate image.

During 2018, the Company conducted various marketing programs, including: 1. Public education through print media, including

information about products published in national magazines, tabloids and newspapers.

2. Installation of outdoor media and nameplates for stores located within the Company’s marketing area.

3. Sales promo program to support sales increase.4. Loyalty program in the form of point rewards,

tourism program, gathering, merchandising, and training of construction workers.

MARKETING PERFORMANCE AND MARKET SHARE

The demand for cement in the domestic market showed moderate growth in 2018. The growth of domestic cement consumption was recorded at 4.9% in 2018. This growth was driven by aggressive infrastructure development projects, strengthening of commodity prices and improvement of the export trade balance.

With a focus on key markets (Sumatra, Java and Sulawesi 2018: 86.3%, 2017: 86.5% and 2016: 85.0% of total sales) and optimal distribution channel management to improve competitiveness, the Company has been able to record a 1.2% (2017: 5.5%) domestic sales growth. The Company succeeded in minimizing the impact of new competitors and lower prices, and posted a market share within the range of 39.4% in 2018, and 40.8% in 2017.

61,639 66,350 69,541

25,682 27,092 27,421

20182016 2017

Company National

Domestic Sales (Thousand tons)

Thousand Tons

Description 2018 2017 2016

SMI Domestic 27,421 27,092 25,682

National 69,541 66,350 61,639

Market Share (%) 39.4 40.8 41.7



OPERATIONAL PERFORMANCE REVIEW

SEGMENT INFORMATION

In accordance with the Articles of Association, the Company operates in the cement industry. In the interest of Management’s evaluation, and in accordance with PSAK 5 (2015 Revision) provisions, Semen Indonesia presents the business segment report into two large groups, namely Cement and Non-Cement Production.

Cement production is the main business segment that accounts of above 70% of the Company’s total consolidated revenues in 2018. Cement production is achieved by four subsidiaries that are majority-owned, namely PT Semen Gresik, PT Semen Padang, PT Semen Tonasa and Thang Long Cement Joint Stock Company (TLCC) as well as from the production facility in Tuban that are part of the Semen Indonesia-Business Unit.

The non-cement segment comprised of limestone and clay mining, cement bag production, industrial estate development, and ready-to-use concrete. These respective segments comprise of: • Limestone and clay mining aimed at fulfilling the

Company’s demand for raw materials.• Cement bags intended to meet demand for

cement packaging.• Industrial estate development that includes

managing land that was used for mining raw materials to become an area that can be used for commercial purposes as well as general facilities

• Ready-to-Use Concrete production that is used to supply construction projects.

• Other business activities.

The Company receives several non-cement revenues from these other activities. In line with the changes in the Company’s business paradigm that will develop non-cement downstream products, revenues derived from non-cement will subsequently continue to increase in the years ahead.

Apart from business segment, Semen Indonesia also presents recapitulation of business results according to geographical areas, namely the areas of Java, Outside Java and Abroad, that is based on the Company’s product marketing potential.

The following is a snapshot of the Company’s revenue distribution according to business segment for 2016-2018:

Rp Million

Business Segment 2018 2017 2016 Growth (%) 2018

Growth (%) 2017

Cement Industry 26,759,276 24,776,788 24,729,647 8% 0.19%

Non-Cement 10,739,982 9,436,688 3,141,191 13.81% 200.42%

Elimination (6,811,632) (6,399,812) (1,736,532) -6.43% 268.54%

Total Revenue 30,687,626 27,813,664 26,134,306 10.33% 6.43%

% Contribution before Elimination

Cement Industry 71.36% 72.42% 88.73% -1.06% -16.31%

Non- Cement 28.61% 27.58% 11.27% 1.06% 16.31%

Total 100.00% 100.00% 100.00%

The table shows that the non-cement business segment’s revenue contribution in 2018 once again registered an increase from 27.58% in 2017 to 28.64% in 2018. Meanwhile, the non-cement business revenue contribution in 2017 increased 16.31% compared to 2016.

The table also shows that the non-cement revenue contribution continues to increase. However, considering that the cement industry’s contribution in 2018 amounted to 71.36%, then the following discussion must focus on the cement business segment’s operational performance and discussion.



The Company’s total installed cement capacity in the domestic market as of the end of 2018 is 35.5 million tons. This total installed capacity is around 33% of the national installed capacity in 2018 of 107.7 million tons. Following the acquisition of PT Holcim Indonesia Tbk., the Company’s domestic market installed cement capacity in Q1 2019 increased to 50.3 million tons or 4.7% of total national production capacity.

CEMENT BUSINESS SEGMENT

PRODUCTION PERFORMANCEIn managing production facility capacity/utilization, the focus of the steps that are taken is by managing the operating process, enhance utilization, and maintenance management. To enhance efficiency in the supply chain process for both inbound, factory operations as well as outbound, information technology implementation becomes the keys to success, from the planning process, implementation, monitoring as well as its evaluation.

Packaging of Cement at the Semen Tonasa Plant




The following presents an overview of the Company’s cement production performance resulting from the capacity optimization strategy implemented throughout 2018.

Description2018 2017 2016 %

1 2 3 1:2 2:3

Clinker Production

Domestic 24,279,631 23,830,929 21,132,116 102 113

Regional 2,024,572 2,000,668 1,956,734 101 102

Total 26,304,204 25,831,597 23,088,850 102 112

Cement Production

Domestic 28,565,618 28,684,577 25884363 100 111

Regional 1,994,351 2,133,190 2388022 93 89

Total 30,559,969 30,817,767 28,272,385 99 109

Installed Capacity

Domestic 35,500,000 33,500,000 29500000 106 114

Regional 2,300,000 2,300,000 2300000 100 100

Total 37,800,000 35,800,000 31,800,000 106 113

UtilizationDomestic 80 86 88 94 98

Regional 87 93 104 93 89

Total 81 86 89 94 97

Domestic Clinker(Tons)

24,2

79,6

31

2018

23,8

30,9

29

2017

21,13

2,11

6

2016

Regional Clinker (Tons)

2,0

24,5

72

2018

2,0

00

,66

8

2017

1,956

,734

2016

Total Clinker (Tons)

26,3

04

,20

4

2018

25,8

31,5

97

2017

23,0

88

,850

2016

Domestic Cement (Tons)

28,5

65,

618

2018

28,6

84

,577

2017

25,8

84

,36

3

2016

Regional Cement (Tons)

1,9

94

,351

2018

2,13

3,19

0

2017

1,956

,734

2016

Total Cement (Tons)

30,5

59,9

692018

30,8

17,7

67

2017

28,2

72,3

85

2016

The Company’s domestic cement production in 2018 declined by 0.4% from 28,684,577 tons in 2017 to 28,565,618 tons. Meanwhile, TLCC production in 2018 declined by 6.5% to 1,994,351 tons from 2,133,190 tons in 2017, therefore in terms of total in 2018, the Company cement production amounted to 30,559,969 tons, or 0.8% lower than the total production in 2017 of 30,817,767 tons. This decrease was caused by the changes in the approach taken by the Company, from the production approach to market approach, thereby production was adjusted to correspond with market demand. On the other hand, slag production increased 1.8% domestically as well as regionally in line with the increase in export demand in 2018.

In early 2019, the Company completed the acquisition process of PT Holcim Indonesia Tbk. The acquisition caused the Company’s production capacity to increase, and thereby, the target production in 2019 that is to be achieved will be substantially larger by total volume.

SALES PERFORMANCESemen Indonesia’s market share is divided into two areas, namely the domestic market and the export market. The Company encountered very tight competition in the domestic market in 2018. This situation was due to the increased number of competitors while growth in demand was simultaneously relatively limited.



In this situation, through various strategies that was specified above, the Company successfully sold 27,421,500 tons of cement in the domestic market, which is 1.2% higher than 2017 achievement of 27,091,728 tons. In 2017, the Company booked sales volume increase of 5.5%.

The Company views the increase in this sales performance as proof of the success of the marketing program initiative that was implemented throughout the reporting year, including optimize brand equity that it has. The Company is confident that the cement product it has will continue to be used and trusted by all of its customers.

Growth of Semen Indonesia Sales Volume in the Domestic Market, 2016 - 2018

No. Regional SMI 2018 Growth

%2017 Growth

%2018 2017 2016

1 Sumatera 6,276,950 6,006,918 5,753,818 4.5 4.4

2 Java 14,064,118 14,041,432 12,712,644 0.2 10.5

3 Kalimantan 1,757,274 1,720,449 1,748,593 2.1 (1.6)

4 Sulawesi 3,329,827 3,397,508 3,374,169 (2.0) 0.7

5 Bali Nusra 1,246,955 1,175,822 1,228,192 6.0 (4.3)

6 Eastern Indonesia 746,376 749,600 864,727 (0.4) (13.3)

Total 27,421,500 27,091,728 25,682,143 1.22 5.5

Note: Excluding Domestic Clinker Sales and White Cement (Source ASI)

The Company’s cement sales in Java in 2018 comprised of 51% of total domestic sales. In 2018, the Company’s cement sales in this region increased 0.2% compared to the previous year. Meanwhile, sales derived from outside of Java comprised of 49% of total sales or increased 2.4% compared to the previous year.

Growth of Cement Sales - Regional Markets (Exports) - Semen Indonesia, 2016-2018

Destination 2018 2017 2016 2018 Growth (%)

Australia - 20,067 - (100)

Maldives 44,300 81,656 61,386 (46)

Myanmar - 8,005 - (100)

Philippines 20 45,500 35,613 (100)

Sri Lanka 869,344 696,557 299,207 25

Taiwan - 25,000 - (100)

Timor Leste 130,100 155,601 94,781 (16)

Yaman - - 19,000 -

Total Export 1,043,764 1,032,386 509,987 1,1

Note: Excluding clinker and export sales from Vietnam (Source ASI).

Apart from cement suppliers in the Indonesian market, the Company also expanded exports (including clinker), which includes Maldives, Philippines, Sri Lanka, and East Timor. This total export sales volume amounts to 3,167,641 tons in 2018, or 69% higher compared to the previous year’s volume of 1,870,862 tons.

Meanwhile, TLCC, a subsidiary in Vietnam, was able to sell cement and slag amounting to 1,683,117 tons in the Vietnamese market and export (including clinker) 891,807 tons, which is 6% lower for cement and 125% higher for clinker compared to the previous year of 2,385,520 tons including 258,054 tons of clinker as part of TLCC’s ability to respond to the imposition of export tax. TLCC’s export destinations include Singapore, Philippines, Malaysia, Sri Lanka and Taiwan.



As a result, in terms of the Company’s cement total sales volume in the domestic and regional market in 2018 amounted to 33,609,620 tons, or 7% higher than the total sales volume in 2017 of 31,539,751 tons.

NON-CEMENT BUSINESS SEGMENT The Company strives to increase non-cement business segment revenue contribution since several related sectors and entities will only begin full operations in 2017. These subsidiaries include: SII that operates in trading, SI Logistik that operates in logistics, KSI that operates in the area of slag processing and SIB that is engaged in pre-cast concrete.

The Company believes that the performance of these new subsidiaries that was developed at the end of 2016, will significantly increase as infrastructure activities that continues to be promoted by the Government and the presence of a sizeable captive market, particularly in the logistics segment that was not fully developed in 2016, but has a large contribution to non-cement segment has not been eliminated.

In the years to come, the Company will continue to develop various new business lines, particularly those that are still related to the Company’s operational activities.

Non-Cement Revenue Contribution Before Elimination Chart.

Non Cement Revenue(Rp billion)

10,740

2018

9,437

2017

3,141

2016

PT Semen Indonesia Beton (PT SI Beton) PT Semen Indonesia Beton, formerly known as PT SGG Prima Beton (SGG-PB) was established on April 11, 2012 and began commercial operational activities since January 2013 domiciled in Gresik.

SI Beton’s shares are owned by the Company amounting to 99.99% and Semen Gresik Cooperative owns 0.01%.

SI Beton is a manufacturer of Ready Mix Concrete and various types of pre-cast concrete and composite concrete as the development of raw materials for concrete manufacturing, concentrates in the operational regions of the western part of Java and the western part of Indonesia.

At the same time, PT Varia Usaha Beton (VUB) as a subsidiary of SI Beton, concentrates on the operational regions in the central and eastern part of Java as well as the eastern part of Indonesia. VUB’s shares are owned by SI Beton (50.90%) and SI Logistik (49.10%).

Financial Performance (Rp billion)


Revenue 2,251 2,072.2 1,091.6

Net Income (25.2) 15.1 7.8

The Public Accounting Firm of Satrio Bing Eny and Partners has provided the opinion of fairness, in all material aspects, of PT Semen Indonesia Beton and its subsidiaries consolidated financial position dated December 31, 2018, as well as the financial performance and consolidated cash flow for the year ended on that date in accordance with the Financial Accounting Standards in Indonesia.

PT Sinergi Mitra Investama (SMI)PT Sinergi Mitra Investama (SMI) was established on December 29, 2011 under the name of PT SGG Energi Prima (ìSGGEPî) and based in Gresik. The Company’s name was changed to SMI on July 23, 2018, which is in line with the change in SMI’s business from coal trading to management of PT Semen Indonesia (Persero) Tbk non-productive assets.



SMI’s main activity is the management and optimization of PT Semen Indonesia (Persero) Tbk assets. SMI operates professionally with the commitment to continue to care and contribute to the environment. Several assets that it manages includes Telaga Ngipik, Bukit Hollywood, Telaga Dowo, Gunung Lepit, Semen Gresik factory complex, RSSG side housing, Board of Directors housing, Wisma A. Yani, Guest House, and others. SMI is open to various types of cooperation in the area of asset optimization.

SMI’s shares that are owned by the Company amounts to 97% and Koperasi Warga Semen Gresik (KWSG) amounts to 3%. SMI’s main activity is focused on supporting the Company’s activities, especially in terms of managing non-productive assets that are owned by the Company.



Revenue 30.9 491.7 345.4

Net Income (44.6) 5 7.1

The Public Accounting Firm of Satrio, Bing, Eny & Partners has provided the fairness opinion, in all material aspects, for PT Sinergi Mitra Investama’s financial position dated December 31, 2018, as well as the financial performance and its cash flow for the year ended on that date, in accordance with the Financial Accounting Standards in lndonesia.

PT Sinergi Informatika Semen Indonesia (SISI) PT Sinergi Informatika Semen Indonesia (SISI) was established on June 9, 2014 and based in Jakarta, whereby 85% of its shares are owned by the Company while the remainder are owned by PT Semen Gresik, PT Semen Padang, and PT Semen Tonasa of 5% each.

SISI’s success can be measured from its ability to provide ICT services for the Company with controlled costs and providing added value for the Company.

SISI emerged as a one stop solution provider, wherein all of the ICT services needs that covers operational support, business solution delivery, up to ICT governance, can be provided by SISI as a services packages that is in accordance with the customer’s demands.


Description 2018 2017a) 2016

Revenue 83.2 107.9 106.8

Net Income (31.6) 2.1 6.8a) As restated

The Public Accounting Firm of Satrio, Bing, Eny & Partners has provided the opinion that the financial statements were fairly presented in all material aspects, within PT Sinergi Informatika Semen Indonesia’s financial statements, as well as the financial statement and its cash flow, in accordance with the Financial Accounting Standards in Indonesia.

PT Semen Indonesia International (SII) PT Semen Indonesia International (SII) was established on June 1, 2016 and domiciled in Jakarta. SII’s shares are 85% owned by the Company while the rest are owned by PT Semen Gresik, PT Semen Padang, and PT Semen Tonasa of 5% each.

SII’s main line of business is general trading, particularly export-import trade to meet the demands of the production process’ supporting materials and sales of company’s products.


Description 2018 2017 Jun 6 - Dec 31 2016

Revenue 2,015.1 1.001.6 1.4

Net Income 28.5 17.4 0.1

The Public Accounting Firm of Satrio Bing Eny and Partners has provided a fairness opinion, in all material aspects, for PT Semen Indonesia International’s consolidated financial position on December 31, 2018, as well as the financial performance and consolidated cash flow of PT Semen Indonesia International on December 31, 2018, as well as the financial performance and consolidated cash flow for this year in accordance with the Financial Accounting Standards in Indonesia.

PT Semen Indonesia Logistik (SILOG) On November 1, 2016, the Company acquired share ownership representing 48.7% of all issued and paid-up capital in PT Varia Usaha (VU) owned by the Semen Gresik Pension Fund (DPSG), thereby the share ownership composition in VU became 73.65% owned by the Company and 26.35% owned by the Semen Gresik Cooperative. Subsequently on February 13, 2017, VU changed its name to PT Semen Indonesia Logistik (SILOG).



SILOG is a subsidiary of the Company that is based in Gresik, East Java, which operates in the general transport and freight, trading in building materials, agency, cement distributor, industrial and development, mining.

SILOG has several subsidiaries to anticipate the substantial business opportunities in the areas of logistics, namely:a. PT Semen Indonesia Distribusi (formerly PT Waru

Abadi), which operates in the area of trading of building materials, particularly retail.

b. PT Varia Usaha Bahari, which operates in the area of loading and unloading of goods at ports.

c. PT Varia Usaha Dharma Segara, which operates in the areas of international freight forwarder.

d. PT Varia Usaha Lintas Segara, which operates in the area of shipping services and ship agents.

e. PT Varia Usaha Fabrikasi, which operates in the area of procurement of labor services.



Revenue 4,922.1 4,682.1 4,583.3

Net Income 31.2 49.9 104.3

The Public Accounting Firm of Satrio Bing Eny and Partners has provided the opinion of fairness, in all material aspects, of PT Semen Indonesia Logistik (formerly PT Varia Usaha) and its subsidiaries financial position as of December 31, 2018, as well as the financial performance and consolidated cash flow for the year ending on this date in accordance with the Financial Accounting Standard in Indonesia.

PT Kawasan Industri Gresik (KIG) KIG, which is domiciled in Gresik, East Java, engages in the industrial estate business, which includes the acquisition, development, sale and rental of industrial land, warehouses, shop houses as well as ready-to-use factory buildings (BPSP) within and outside the area, including development of public facilities such as roads, water supply, electricity and others. The Company’s share ownership is 65% and PT Petrokimia Gresik (Persero) owns 35%.

Financial Performance(Rp billion)


Revenue 59.9 60.2 39.1

Net Income 24.4 22.4 2.5

The Public Accounting Firm of Satrio, Bing, Eny & Partners have provided the opinion that PT Kawasan Industri Gresik’s financial statements have been fairly presented, in all material respects, as well as the financial performance and cash flows, in accordance with the Financial Accounting Standards in Indonesia.

PT Industri Kemasan Semen Gresik (IKSG) IKSG is engaged in manufacturing packaging or the packaging, trade and services industries, based in Tuban, East Java. The composition of shareholders is 60% owned by the Company, 30% owned by PT Fajar Mas Murni, and 10% owned by PT Newlong Indonesia.

Most of IKSG’s products are used to meet the Company’s demands for cement bags, whereby most of the sales proceeds obtained are treated as a result of sales between companies, and will be eliminated in Semen Indonesia’s consolidated financial statement.



Revenue 518.2 283.3 272.8

Net Income 13.2 30.7 29.4

The Public Accounting Firm of Satrio Bing Eny & Partners have provided the opinion of fairness in all material aspects for IKSG’s financial position dated December 31, 2017, as well as the financial performance and cash flow for the year ending on this date, in accordance with the Financial Accounting Standards in Indonesia.

PT United Tractors Semen Gresik (UTSG)UTSG is domiciled in Tuban, East Java and operates in the area of mining, trading and provision of other services. UTSG shares is 55% owned by the Company and PT United Tractors owns 45%.



UTSG’s main activities are prioritized at supporting the Company’s production activities, especially in terms of providing services in the process of mining cement raw materials.

UTSG revenues are generally obtained from the results of mining equipment rental services for cement raw material production, rock blasting services, mining transportation services, heavy equipment rental and sale of clay. UTSG’s profitability is measured by its ability to provide raw material mining equipment costs to the Company in the most efficient manner and the ability to utilize its competencies in the mining sector as well as the management of its fleet of heavy equipment and transportation equipment.

Financial Performance

(Rp billion)


Revenue 663.2 640.6 458.1

Net Income 27.3 55.1 41.0

The Public Accounting Firm of Satrio Bing Eny & Partners has provided a fair opinion in all material respects, UTSG’s financial position on December 31, 2018, as well as the financial performance and cash flow for the year ended on that date, is in accordance with the Financial Accounting Standards in Indonesia.

PT Krakatau Semen Indonesia (KSI)KSI is domiciled in Cilegon, Banten Province and operates in the area of cement raw material manufacturing and trading, mainly by managing Granulated Blast Furnace Slag (GBFS) material to become Ground Granulated Blast Furnace Slag (GGBFS) or Fine Slag Powder that subsequently will be used in the cement making process by the Company.

KSI’s shares are owned by the Company (50%) and PT Krakatau Steel (Persero) Tbk. (50%).

KSI completed the construction of the GBFS Mill Plant in Q4 2017. In 2018, all of KSI’s revenues derive from inventory sales to the Company, thereby within the consolidated report entirely eliminates as supporting raw material.

Financial Performance

(Rp billion)


Revenue 123.3 66.8 2.6

Net Income (14.2) 3.9 (3.2)

The Public Accounting Firm of Satrio Bing Eny & Partners has provided the fairness opinion in all material aspects, KSI’s financial position dated December 31, 2018, as well as the financial performance and cash flow for the year ended on that date, in accordance with the Financial Accounting Standards in Indonesia.



FINANCIAL PERFORMANCE REVIEW The Financial Performance Review throughout this discussion is a reflection of the Company’s operational results that is described in the Operational Review and Business Development Strategy discussion. The following financial performance analysis and discussion refers to the Company’s Consolidated Financial Statement on December 31, 2018 and 2017 that is presented within this Annual Report. This Consolidated Financial Statement was audited by the Public Accounting Firm of Satrio Bing Eny & Partners with the opinion of fairness, in all material aspects, for the financial position of PT Semen Indonesia (Persero) Tbk and its subsidiaries dated December 31, 2018, as well as the financial performance and cash flow for the year ended on that date in accordance with the Indonesian Financial Accounting Standards.

The understanding of this financial performance review still takes into account the explanation in the notes to the Consolidated Financial Statement as an integral part of this Annual Report.

SUMMARY OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS

In 2018, the Company recorded an increase in production volume, sales volume and revenue value. The Company managed to overcome intense

competition between cement producers in the domestic market through the application of a cost leadership strategy through centralized strategy and integrated operation, thereby it also managed to register a substantial increase in profits in 2018 compared to the previous year.

This financial performance deserves praise and appreciation, given that these results were achieved at a time when the cement industry market was still overshadowed by conditions of an over supply from the numerous existing and new players in the cement industry as the national capacity increase in previous years was not balanced with the increase in consumption thereby putting pressure on selling prices in the market. Apart from the market side, cement business players also had to deal with higher energy prices, particularly coal prices, which suppressed the rate of profitability.

Therefore, despite registering positive performance in 2018, the management and the entire Company remain vigilant towards the current conditions of the cement industry, and have prepared a series of strategic initiatives to overcome these challenging conditions while preparing to seize opportunities from improving business conditions in future.

Table of Consolidated Statements of Profit or Loss, 2016-2018

Consolidated Statements of Profit or Loss Highlights (Rp Billion) 2018 2017a) 2016

Growth

2018:2017 2017:2016

Revenue 30,688 27,814 26,134 10.3% 6.4%

Cost of Revenue (21,357) (19,854) (16,278) 7.6% 22.0%

Gross Profit 9,331 7,960 9,856 17.2% -19.2%

Operating Expenses (4,450) (5,108) (4,629) -12.9% 10.4%

Profit 4,881 2,851 5,227 71.2% -45.5%

Profit for the Year Attributable to:

Owners of the Parent Entity 3,079 1,621 4,522 90.0% -64.1%

Non-controlling Interests 7 29 13 -77.3% 115.8%

EBITDA 6,577 4,904 6,963 34.1% -29.6%

Weighted Average Number of Shares Outstanding (in Thousand)

5,931,520 5,931,520 5,931,520 0.0% 0.0%

Basic Earnings per Share (Rupiah) 519 273 762 90.0% -64.1%a) As restated



REVENUE Table of Revenue Composition of the Company, 2016-2018

Revenue Composition(Rp Billion)

2018 2017 2016Growth

2018:2017 2017:2016

Cement* 27,729 25,089 24,494 10.5% 2.4%

Non Cement 2,959 2,725 1,640 8.6% 66.2%

Total 30,688 27,814 26,134 10.3% 6.4%* Including clinker sales

In 2018, the Company’s revenues amounts to Rp30,688 billion or 10.3% higher than in 2017 of Rp27,814 billion. This increase in revenues were contributed by the 10.5% increase in cement segment revenues from Rp25,089 billion to Rp27,729 billion, which was achieved through the Company’s success in increasing sales volume and average sales prices at the same time.

Meanwhile, the non-cement segment revenues contribution increased 8.6% from Rp2,725 billion to Rp2,959 billion in 2017 (after elimination), continuing an increase of 66.2% in the previous year. This change in contribution caused the proportion of non-cement contributions to change to 9.6% in 2018 from 9.8% in 2017. Details of non-cement income contributions are: Table of Revenue Composition of Non Cement, 2016-2018

Revenue Composition of Non Cement(Rp Billion) 2018 2017 2016

Growth

2018:2017 2017:2016

Ready mix Concrete 2,246 2,069 1,271 8.6% 62.7%

Mining Services 111 250 73 -55.5% 243.3%

Cement Bags 93 63 91 47.4% -30.4%

Blasting Services 3 39 10 -93.0% 289.5%

Industrial Estate Land Rental 34 30 25 12.2% 19.5%

Industrial Real Estate 12 17 - -29.2% -

Others 460 257 170 79.0% 50.8%

Total of Non Cement 2,959 2,725 1,640 8.6% 66.2%

The largest non-cement segment revenue derives from Ready Mix Concrete segment, amounting to Rp2,246 billion or 75.9% of total non-cement revenue, 8.6% higher than in 2017 of Rp2,069 billion. This increase was attributed to the Company’s ability, through PT Semen Indonesia Beton, to market precast concrete products in 2018, utilizing business opportunities created by the prevalence of infrastructure development in its marketing areas.

Other revenues were obtained from: Limestone and Clay Mining segment amounting to Rp111 billion, 55% lower than the previous year’s of Rp250 billion; the Cement Bag segment amounted to Rp93 billion, 47.4% higher than Rp63 billion last year; the Industrial Estate Land Rental segment of Rp34 billion, or 12.2% higher than Rp30 billion in the previous year; and other segments amounting to Rp460 billion, or 79.0% higher than in the previous year of Rp257 billion.

The Company is fully committed to increasing its non-cement product revenue contribution by optimizing all potential revenue derived from optimizing its assets, such as the former limestone mine and production area in Gresik, expanding the business sector from the development of downstream cement products, cement transportation as well as from market needs for solutions to fulfill other building materials, and monetizing the Company’s competencies in the field of design accumulated so far.

In order to support the achievement of the target to increase these non-cement revenues, the Company has redefined and repositioned several subsidiaries in a total business restructuring program that was carried out throughout 2018. The redefinition and repositioning of subsidiaries, including the accompanying business development, is part of the implementation of ‘Differentiation through Product Development and Optimization of Product Portfolio with excellence services’ strategic initiatives.



The Company’s revenue based on marketing destination can be seen in the following table:

Table of Revenue based on Marketing Destination, 2016-2018

Revenue based on Marketing Destination (Rp Billion) 2018 2017 2016

Growth

2018:2017 2017:2016

Volume (tons):*

Indonesia 27,856,920 27,344,670 25,810,791 1.9% 5.9%

Regional 5,752,700 4,195,081 3,300,067 37.1% 27.1%

Total 33,609,620 31,539,751 29,110,858 6.6% 8.3%

Revenue (Rp Billion):

Indonesia 27,544 25,566 24,579 7.7% 4.0%

Regional 3,144 2,247 1,555 39.9% 44.5%

Total 30,688 27,814 26,134 10.3% 6.4%

* Including Clinker Volume

The Company’s cement sales volume in the domestic market was 27.9 million tons in 2018, or 1.9% higher than in the previous year of 27.3 million tons. This increase was due to the Company’s success in utilizing the momentum of rising domestic market demand that increased 4.8% amidst tight competition brought about by the oversupply conditions. The Company applied a strategy to increase product competitiveness as well as placed regional markets as an integral part of its product marketing area, both through exports and by optimizing overseas subsidiaries (Vietnam).

As a result, the Company was able to increase regional sales volume by 37.1% from 4.2 million tons to 5.8 million tons. Thereby accumulatively, the Company was able to increase total sales volume from 31.5 million tons to 33.6 million tons or 6.6% higher.

The Company believes that Semen Indonesia’s market share in the coming year will once again significantly increase, given the completion of the acquisition process of PT Holcim Indonesia Tbk, which in addition to increasing production capacity, also strengthened market position in various marketing areas of the Company’s cement products.

Meanwhile, in terms of sales value, in the domestic market, in 2018 the Company managed to book revenues of Rp27,544 billion, or 7.7% higher than the previous year’s sales value of Rp25,566 billion, while regional revenues registered a 39.9% increase to Rp3,144 billion from Rp2,477 billion in 2017.

The increase in the value of cement sales in the domestic market was largely attributed to the Company’s success in applying various strategic initiatives in the field of marketing as discussed in the related description, whereby as the leader of the domestic market, the Company was able to record an increase in cement products selling prices in the domestic market. The average selling price of the Company’s cement products in the domestic market in 2018 was Rp995,405/tons, or 4.6% higher than Rp917,498/tons in 2017.

COST OF REVENUEThe main component of cost of revenue within the cement manufacturing process is the fabrication load that consists of fuel costs (coal), electricity, distribution costs, packaging costs and others. Although the Company’s sales volume has increased, the Company succeeded in reducing its cost of revenue. One of the efforts made by the Company is to carry out cost transformation, as part of the implementation of Cost Leadership through Centralized Strategy and Integrated Operation strategic initiatives. The following is a table and explanation of the implementation of the strategic initiatives mentioned, and its impact on a number of expenditure account records within the Company’s consolidated financial statements.



Table of Cost Revenue, 2016-2018

Cost of Revenue (Rp Billion) 2018 2017a) 2016

Growth

2018:2017 2017:2016

Energy 7,349 6,992 5,563 5.1% 25.7%

Distribution 2,376 2,109 1,813 12.6% 16.3%

Raw Materials 1,876 1,877 1,376 -0.1% 36.5%

Depreciation 1,523 1,853 1,571 -17.8% 18.0%

Labor 1,223 1,488 1,534 -17.8% -3.0%

Manufacturing Overhead 7,010 5,535 4,422 26.7% 25.2%

Total 21,357 19,854 16,278 7.6% 22.0%a) As restated

The Company successfully managed its cost of revenue, which increased by only 7.6% from Rp19,854 billion in 2017 to Rp21,357 billion in 2018, amidst rising coal prices in the market and a number of other material prices, as indicated by the inflation rate of 3.13%. This success is shown by the calculation of the cost of goods sold per ton of cement in 2018 which shows a figure of Rp635.4 thousand from Rp629.5 thousand, or merely an increase of 1%.

This success is increasingly clear if we pay attention to the cost of goods sold (COGS) ratio in 2018 that decreased to 69.7% from 71.4% in the previous year. The following is an explanation about efforts made by the Company to manage the cost of revenue as part of the implementation of the cost transformation.

Energy CostsEnergy costs in 2018 amounts to Rp7,349 billion, which was higher by only 5.1% than in 2017 of Rp6,992 billion. The cost transformation efforts carried out for energy costs, includes:• Reducing the consumption figure/coal usage

index and fuel consumption index in the factory by maintaining the best performance ever achieved.

• Evaluate coal purchases by prioritizing major purchase contracts and based on the proximity of the mine site to production facilities to obtain the best prices and the most efficient transportation costs. The goal is to reduce energy costs per ton/slag.

• Optimize and centralize industrial fuel purchases so as to obtain competitive prices.

• Optimize factory electricity usage index especially for equipment that consumes large power/kWh by maintaining the best performance on each device.

• Optimize utilization of existing WHRPG power plants and operating facilities.

Distribution CostsDistribution costs in 2018 amounts to Rp2,376 billion, 12.6% higher than in 2017 of Rp2,109 billion. Cost transformation management and implementation from distribution costs that was carried out, includes:• Evaluate maritime transport contracts to secure

optimum transport routes and rates• Optimization and utilization of ships through

synergizing in order to enhance the value of transport cost efficiency

• Optimize modes of land transportation with choices for transportation types and distribution patterns.

Raw Material CostsRaw material costs in 2018 amounts to Rp1,876 billion, 0.1% lower than in 2017 of Rp1,877 billion. Some of the Company’s raw material management initiatives are: • Optimize raw material purchases from the most

efficient sources.• Optimize the most efficient use of materials and

compositions• Optimize and usage of recycled materials• Optimize use of waste products from other

industries

Other Fabrication CostsOther fabrication costs in 2018 amounts to Rp7,010 billion, or 26.7% higher than in 2017 of Rp5,534 billion. Costs included in the other fabrication costs include: packaging costs, maintenance costs, general & administrative costs, and tax and insurance costs. The increase in other fabrication costs was mainly due to the impact of the consolidation of several subsidiaries that was intensively carried out in 2018. Several attempts were made to reduce the growth of fabrication costs, namely:



• Maintenance cost index efficiency and reduce patch jobs.

• Centralize outsourcing and material management.• Optimize procurement of heavy equipment

through more effective and efficient patterns

• Enhance composition of the use of local spare parts and alternative spare parts as well as substitution of lubricants with more competitive ones.

• Standardization and centralization of spare parts material requirements to obtain competitive prices

GROSS PROFIT

Table of Gross Profit, 2016-2018

Gross Profit (Rp Billion) 2018 2017a) 2016

Growth

2018:2017 2017:2016

Gross Profit 9,331 7,960 9,856 17.2% -19.2%

Gross Profit Margin 30.4% 28.6% 37.7% 1.8% -9.1%a) As restated

The Company’s gross profit in 2018 increased 17.2% from Rp7,960 billion in 2017 to Rp9,331 billion in 2018. This increase indicates a reversal of the decline in gross profit in the previous year to -19.2 %. As a result of the increase in gross profit, the Company’s gross profit margin in 2018 again rose to 30.4% from 28.6% in the previous year.

The gross profit increase that occurred was a reflection of the Company’s success to increase revenues by 10.3%, but at the same time successfully managed revenue expenses well, whereby the increase was only 7.7%, or below the increase in income.

OPERATING EXPENSES

Table of Operating Expenses, 2016-2018

Operating Expenses (Rp Billion) 2018 2017a) 2016Growth

2018:2017 2017:2016

Selling Expenses 2,237 2,412 2,719 -7.2% -11.3%

General and administration expenses 2,320 2,915 2,163 -20.4% 34.7%

Other operating income (107) (218) (254) -50.8% -14.0%

Total 4,450 5,109 4,629 -12.9% 10.4%

Operating Expenses/revenue 14,5% 18,4% 17,7% -3.9% 0.7%a) As restated

Operating expenses in 2018 amounts to Rp4,450 billion, which is 12.9% lower than in the previous year of Rp5,109 billion, whereby the SGA to Sales ratio also improved from 18.4% in 2017 to 14.5% in 2018. Some of the efforts carried out focused on cost transformation to control operating expenses, including:• Re-arrangement of cement product distribution routes and methods to customers.• Regulate promotional costs related with the implementation of marketing strategies, including changes in

the distributor’s function/role and open direct selling methods to corporate customers.



Selling Expenses

Table of Selling Expenses, 2016-2018

Selling Expenses (Rp Billion) 2018 2017a) 2016

Growth

2018:2017 2017:2016

Transportation and handling 1,769 1,848 2,195 -4.3% -15.8%

Promotion 154 253 265 -39.3% -4.7%

Salaries, Wages and Benefits 216 197 175 9.6% 12.9%

Other Selling Expenses 98 114 84 -13.4% 34.0%

Total 2,237 2,412 2,719 -7.2% -11.3%a) As restated

The main component of sales expenses in 2018 is freight and unloading costs, amounting to Rp1,769 billion or 79.1% of total selling expenses. This expense decreased 4.3% largely due to the Company’s consistency in implementing the route rearrangement program and product distribution method to customers launched in 2017.

The efforts carried out were focused on managing promotional costs, which resulted in these costs decreasing 39.1% from Rp253 billion to Rp154 billion. Meanwhile, efforts to improve efficiency for supporting activities led costs to drop 13.4% from Rp113 billion to Rp98 billion. Salaries, wages and remuneration from activities were adjusted accordingly.

As a result, the total selling expenses were successfully reduced 7.2% from Rp2,412 billion in 2017 to Rp2,237 billion.

General and Administration Expenses

Table of General and Administration Expenses, 2016-2018

General and Administration Expenses (Rp Billion) 2018 2017a) 2016

Growth

2018:2017 2017:2016

Salary, Wages and Other Benefits 1,103 1,176 1,061 -6.2% 10.8%

Professional Fees 254 97 82 162.3% 18.3%

Office Supplies 114 190 156 -39.7% 21.5%

Maintenance 161 125 123 29.1% 0.9%

Partnership Program Community Development 117 193 187 -39.4% 3.2%

Taxes, Insurance and Rental 137 164 137 -16.8% 19.7%

Depreciation, Amortization and Depletion 162 189 153 -14.0% 23.7%

Other General and Administration Expenses 272 781 264 -65.2% 196.0%

Total 2,320 2,915 2,163 -20.4% 34.7%a) As restated

General and administration expenses amounts to Rp2,320 billion in 2018, a 20.4% decrease from Rp2,915 billion in 2017. The main components of this general and administration expense were salaries, wages and other remuneration expenses, which amounts to Rp1,103 billion or 47.5% of total general and administrative expenses. A 6.2% decrease in this cost component was mainly attributed to the implementation of the organizational restructuring

program, which reduced the total number of employees by 566 people, or 10.2%, from 5,553 people in 2017 to 4,987 employees at the end of 2018.

Efforts carried out by the Company to control this expense, such as those mentioned above, also resulted in a decrease in almost all cost components from other general and administrative expenses, except for professional service fees and maintenance costs.



The increase in professional services component occurred due to the Company’s efforts to restructure and reorganize all of the Company’s entities including the development of the company’s business potential. Meanwhile, the increase in maintenance costs is associated with the regular maintenance programs for existing production facilities as well as the maintenance of new production facilities.

OPERATING PROFIT

Table of Operating Profit, 2016-2018

Profit (Rp Billion) 2018 2017a) 2016Growth

2018:2017 2017:2016

Profit 4.881 2.851 5.227 71.2% -45.5%

Profit Margin 15.90% 10.25% 20.00% 5.65% -9.75%a) As restated

As a result of Management’s, as well as all of the employees, success in increasing business revenues along with the ability to control costs as previously explained above, the Company’s gross profit increased substantially by 71.2% from Rp2,851 billion in 2017 to Rp4,881 billion in 2018. Therefore, the Company’s operating profit margin also increased to 15.9% from 10.3% in 2017. This operating profit growth is inversely proportional with that achieved in 2017, which decreased 45.5% compared to the previous year.

OTHER INCOME (EXPENSES)

Table of Other Income (Expenses), 2016-2018

Finance Income and Finance Costs(Rp Billion)

2018 2017 2016Growth

2018:2017 2017:2016

Finance Income 182 168 184 7.9% -8.2%

Finance Costs (959) (756) (363) 26.8% 108.1%

Net Income (expense) (777) (588) (180) 32.2% 227.1%

The Company posted other expense (net) of Rp777 billion or 32.2% higher from Rp588 billion in 2017, which is mainly due to an increase in bank lending rates triggered by the response from banks and creditors to the increase in the 7-day benchmark rate from Bank Indonesia. Even though the Company simultaneously booked interest income, however, the amount was far less than the financial expense that the Company has to pay. (See description on “Cash and Cash Equivalents”, “Bank Loans” and “Bonds”).

PROFIT BEFORE TAX AND INCOME TAX EXPENSESAs a result of the addition of these other expenses, the Company’s profit before tax therefore amounted to Rp4,105 billion in 2018, which is 82.1% higher from Rp2,254 in 2017. Meanwhile, the Company’s tax expense in 2018 amounts to Rp1,019 billion, 68.8% higher than in 2017 of Rp604 billion, which is in line with the increase in pre-tax profit.

This increase in income tax was mainly driven by the increase in the Company’s income and deferred tax expense from subsidiaries.

The Company always adequately fulfill its tax payment obligations throughout the reporting year, whereby there is no tax disputes that needs to be resolved.

NET PROFIT AND BASIC NET EARNINGS PER SHAREBy calculating tax expenses, the Company booked current year’s net profit of Rp3,079 billion or an increase of 90.0% from the previous year’s net profit, which amounted to Rp1,621 billion.

Since there are no changes in the number of outstanding shares, namely a total of 5,931.52 million shares, then the Company’s basic net earnings per share in 2018 is Rp519, which represents an increase of 90.0% compared to the value of Rp273 per share in 2017.



COMPREHENSIVE INCOME FOR THE YEAR

Table of Basic Comprehensive Income per Share, 2016-2018

Comprehensive Income for the Year (Rp Billion) 2018 2017a) 2016

Growth

2018:2017 2017:2016

Comprehensive Income 3.517 1.315 4.368 167.6% -69.9%

Number of Shares (in thousand) 5.931.520 5.931.520 5.931.520 0.0% 0.0%

Comprehensive Income per Share 593 222 736 167.6% -69.9%

Comprehensive Income Attributable to:

Owners of the parent entity 3.476 1.295 4395 168.3% -70.5%

Non-controlling interests 42 19 (27) 117.1% -171.0%a) As restated

In 2018, the Company registered other comprehensive income, net of Rp431 billion that derived from the net balance of remeasurements of defined benefits obligation of Rp413 billion less the defined income tax expense of Rp97 billion, which means the net balance amounts to Rp315 billion. This balance is inversely proportional to the remeasurements of defined benefits obligation expenses of Rp302 billion in 2017.

Moreover, the Company also booked comprehensive income from exchange difference from translation of foreign operations of Rp116 billion in 2018. Thereby total other comprehensive income in 2018 amounts to Rp431 billion. The Company had in fact booked total other comprehensive expenses of Rp335 billion.

As a result of the presence of this comprehensive income, then the comprehensive income after tax for the year amounts to Rp3,517 billion, or 167.6% higher than in 2017 of Rp1,315 billion.

Since there are no changes to the number of outstanding shares, the basic comprehensive net income per share becomes Rp593 per share or 167.6% higher than in 2017 of Rp222 per share.

The total comprehensive income attributable to owners of the parent entity amounts to Rp3,476 billion, or 168.3% higher than in 2017 of Rp1,295 billion. Meanwhile, those attributable to non-controlling interests amounted to Rp42 billion, or 117.1% higher than in 2017 of Rp19 billion.

PROFITABILITY AND MARGINS

30.4

21.4

10.0

28.6

17.6

37.7

3.8

15.910.3

5.8

20.0

17.3

2018 2017 2016

Gross Profit Margin

EBITDA Margin

Operating Profit Margin

Net Profit Margin

Profitability Chart (%)

Table of Margins and Profitability, 2016-2018

Margins and Profitability (Rp Billion) 2018 2017a) 2016

Growth

2018:2017 2017:2016

Gross Profit 9,331 7,960 9,856 17.2% -19.2%

Gross Profit Margin 30.40% 28.62% 37.71% 1.8% -9.1%

Operating Profit 4,881 2,851 5,227 71.2% -45.5%

Operating Profit Margin 15.90% 10.25% 20.00% 5.7% -9.7%

EBITDA 6,577 4,904 34.12 38% -22.5%

EBITDA Margin 21.43% 17.63% 3.8% 2.0% -7.2%

Net Profit 3.079 1.621 90 87.0% -64.1%

Net Profit Margin 10.03% 5.83% 17.30% 4.2% -11.5%a) As restated



The Company registered gross profit in 2018 of Rp9,331 billion or 17.2% higher compared to the previous year of Rp7,960 billion, operating profit amounts to Rp4,881 billion in 2018 or 71.2% higher compared to the previous year of Rp2.851 billion, while EBITDA reached Rp6,577 billion in 2018, an increase of 34.12% compared to the previous year of Rp4,904 billion. Net profit amounts to Rp3,079 billion in 2018 or an increase of 90% compared to the previous year of Rp1,621 billion.

As a result of these operational results, the Company’s profitability ratio overall increased once again in 2018, following declines in the previous year. As shown in the table above, the gross profit margin ratio in 2018 amounts to 30.4%, up from 28.6% in the previous year. Operating profit margin ratio was 15.9% in 2018, which is higher than the 10.3% in 2017. EBITDA margin ratio was 21.43% or higher than the 3.8% in 2017 and net profit margin ratio in 2018 was 10.0%, which is higher than 4.2% registered in the previous year.

SUMMARY OF CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION

Table of Consolidated Statements of Changes in Financial Position, December 31, 2016-2018

Consolidated Balance SheetsRp Billion 2018 2017 a) 2016

Growth (%)

2018:2017 2017:2016

Current Assets 16,008 13,802 10,373 16.2 33.1

Non-Current Assets 35,148 35,267 33,854 -0.1 3.9

Total Assets 51,156 49,069 44,227 4.5 10.7

Short-term Liabilities 8,203 8,804 8,152 -3.5 27.3

Long-term Liabilities 10,217 10,219 5,501 -1.2 76.7

Total Liabilities 18,420 19,023 13,653 -2.3 35.7

Equity Attributable to

- Owners of the parent entity 31,192 28,522 29,035 9.0 -0.4

- Non-controlling interests 1,544 1,524 1,539 1.3 -1.0

Total Equity 32,736 30,046 30,574 8.6 -0.4

Total Liabilities and Equity 51,156 49,069 44,227 4.5 10.7a) As restated

Changes to the business conditions and the quick reaction of the Company’s entire management to deal with the challenges as well as to best utilize the potential that arise from the over-supply conditions within Indonesia’s cement industry, apart from that reflected in the profit-loss calculations, are reflected in changes in the main accounts of the balance sheet. As shown in the table above, major changes are only apparent in accounts that reflect the application of policies and activities directly related to operational activities, which involve changes in the Company’s working capital, such as current assets and short-term liabilities.

Meanwhile, accounts that reflect investment activities, have not sufficiently shown significant changes, such as Non-Current Assets and Long-Term Liabilities account groups. This is because in 2018, the Company largely concentrated on efforts to enhance optimal use of the Company’s assets, and not on investment activities. Investment activities, such as the construction of a new factory, was temporarily stopped under the consideration of the oversupply condition, and that the Company has just completed 2 new factories in 2017. Investment, which is largely concentrated on efforts to maintain production facilities to operate optimally.

The following is a detailed description of the changes that occurred in the accounts contained within the Company’s Balance Sheet.



ASSETS

Table of Assets Composition, December 31, 2016-2018

Assets (Rp Billion)

2018 2017 a) 2016Growth (%)

2018:2017 2018:2017

Current Assets 16,008 13,802 10,373 16.2% 33.1%

Non-Current Assets 35,148 35,267 33,854 -0.1% 3.9%

Total Assets 51,156 49,069 44,227 4.5% 10.7%a) As restated

As of December 31, 2018, the Company’s total assets amounted to Rp51,156 billion, or 4.5% higher than the balance as of December 31, 2017 of Rp49,069 billion. These total assets comprised of: 31.3% in current assets and 68.7% in non-current assets. This composition differs from the asset composition in 2017 that consisted of 28.2% in current assets and 71.8% in non-current assets.

The change in composition was due to the 16.2% increase in current assets from Rp13,802 billion in 2017 to Rp16,008 billion. On the other hand, there was a slight decrease in the balance of non-current assets of 0.1% amounting to Rp35,267 billion in 2017 to Rp35,148 billion at the end of 2018.

The following explanation of the changes in the accounts of the main financial position statements that affected changes to the current and non-current assets composition.

Current Assets

Table of Current Assets Composition, December 31, 2016-2018

Current Assets (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Cash and Cash Equivalents 5,246 3,638 2,834 44.2% 28.3%

Restricted Cash and Cash Equivalents

31 29 14 9.0% 105.5%

Shor-term Investments 8 8 13 0.0% -36.3%

Trade Receivables - Net 5,786 4,886 3,838 18.4% 27.3%

Other receivables - Net 174 109 180 58.7% -39.4%

Inventories - Net 3,544 3,686 2,671 -3.9% 38.0%

Advances 163 209 145 -22.1% 44.3%

Prepaid Expenses 62 96 74 -35.6% 28.8%

Prepaid Taxes 986 1,133 594 -13.0% 90.6%

Other Current Assets 8 8 8 -2.0% -5.2%

Total Current Assets 16,008 13,802 10,373 16.0% 33.1%

Current assets was mainly comprised of cash and cash equivalents that accounts for 32.8%, trade receivables-net of 36.1%, inventories of 22.1%, prepaid taxes of 6.2%, and others of 2.6%.

An explanation of the causes that led to changes in the current assets position are as follows:

Cash and Cash Equivalents The Company implemented prudent management of cash and cash equivalents through optimum cash cycle management and the establishment of a sound portfolio management over excess cash while taking into account the risks and returns that provide optimum benefits.

The Company continues to apply a distributor financing scheme to maintain cash availability. Through this scheme, the bank is prepared to provide a bail out in the event of a late payment from a distributor. Subsequently, distributors will have to deal with the bank to settle bailout funds.



Table of Cash and Cash Equivalents for Restricted Use, December 31, 2016-2018

Cash and Cash Equivalents (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Cash 17 12 10 39.8% 20.9%

Bank

Rupiah 1,795 960 928 87.1% 3.4%

USD 557 291 190 91.2% 53.0%

Euro 26 111 51 -76.6% 119.7%

SGD 0 0 0 -74.4% 8.7%

Vietnamese Dong 9 6 17 37.8% -63.2%

Total Bank 2,387 1,368 1,187 74.4% 15.4%

Deposits

Rupiah 2,873 2,253 1,619 27.5% 39.2%

USD - 33 37 -100.0% -10.2%

Vietnamese Dong - - - - -

Total Deposits 2,873 2,286 1,656 25.7% 38.1%

Total 5,277 3,666 2,852 43.9% 28.6%

Reduced by:

Short-term investments with maturities and restricted cash and cash equivalents

(31) (28) (18) 9.0% 63.9%

Total Cash and Cash Equivalents 5,246 3,638 2,834 44.2% 28.3%

The balance of total cash and cash equivalent in 2018 was Rp5,246 billion, or 44.2% higher than in 2017 of Rp3,638 billion, which is mainly attributed to the increase in cash balance in banks and deposit balance.

The balance of cash and cash equivalents balance at the end of 2018 comprise of cash amounting to Rp16 billion or 0.3% of total cash and cash equivalents, placed in current accounts of Rp2,387 billion or 45.5% of total cash and cash equivalents, and time deposits and call deposits amounting to Rp2,873 billion or 54.8% of total cash and cash equivalents.

In line with the business development program that is being carried out, and as part of efforts to mitigate changes in exchange rates for capital expenditure funds, the Company places cash and cash equivalent balances in several currencies, as needed, as follows:

Cash and Cash Equivalents Per Currency

Table of Cash and Cash Equivalents per Currency, December, 2016-2018

Cash and Cash Equivalents per Currency(Rp Billion)

2018 2017 2016Growth (%)

2018:2017 2017:2016

Rupiah 4,685 3,224 2,557 45.3% 26.1%

US Dollar 557 324 227 71.8% 42.8%

Euro 26 111 51 -76.6% 119.7%

Singapore Dollar 0 0 0 -74.4% 8.7%

Vietnamese Dong 9 7 18 36.7% -62.2%

Total 5,277 3,666 2,852 43.9% 28.6%

Short-term investments with maturities and restricted cash and cash equivalents

(31) (28) (18) 9.0% 63.9%

Total Cash and Cash Equivalents 5,246 3,638 2,834 44.2% 28.3%



The table above shows that there is an increase in Rupiah cash and cash equivalents, followed by an increase in US Dollar balances. The majority of the cash and cash equivalents was denominated in Rupiah, amounting to 89.3%, followed by the US Dollar amounting to 10.6%.

There was a fairly high increase, specifically 71.8% of cash funds in US Dollars, as part of the Company’s response to reduce the risk of currency fluctuations. (see also description on “Risk Management”). This fund is prepared to support the maintenance of existing operating facilities in addition to completing the construction of several operational support facilities and other facilities.

The Company places cash and cash equivalent funds predominantly in Rupiah, to support working capital needs, both within the context of acquiring raw

Trade Receivables

Trade Receivables, December 31, 2016-2018

Trade Receivables (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Current 3,972 3,652 2,501 8.8% 46.0%

Overdue

1-45 Days 720 723 737 -0.4% -2.0%

46-135 Days 393 268 301 47.0% -11.2%

136-365 Days 445 174 217 155.8% -19.8%

More than 365 Days 396 191 213 107.5% -10.5%

Total 5,926 5,008 3,970 18.4% 26.1%

Allowance for Impairment Losses (140) (122) (132) 15.3% -7.6%

Trade Receivables - Net 5,786 4,886 3,838 18.4% 27.3%

Revenue 30,688 27,814 26,134 10.3% 6.4%

Trade Receivables - Net/Revenue 18,85% 17,57% 14,69% 1.29% 2.88%

The Company’s trade receivables at the end of 2018 amounted to Rp5,786 billion, or 18.4% higher than in the end of 2017 of Rp4,886 billion. This increase was mainly due to the increase in the Company’s operational activities, namely increasing revenue from cement sales in order to meet customer demand and also as part of its marketing strategy.

materials, as well as other materials including other operational needs that must be carried out in Rupiah. This is carried out to improve the plant operations’ readiness in anticipation of rising cement demand in the domestic market in future.

The Company’s cash and cash equivalents are placed in the form of deposits in sound banks that, among others, include: PT Bank Mandiri (Persero) Tbk., PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Negara Indonesia (Persero) Tbk, PT. Bank Tabungan Negara (Persero), PT Bank Bukopin Tbk, and other banks.

In regards to the placement of these funds, the Company receives interest income with interest rates for Rupiah deposits of 3.50% -8.25% for Rupiah balances, and 0.75% -1.25% for US Dollars.



Inventories

Table of Inventories, December 31, 2016-2018

Inventories (Rp Billion) 2018 2017 2016Growth (%)

2018:2017 2017:2016

Spare Parts 1,135 1,179 1088 -3.7% 8.3%

Raw & Indirect Materials 1,200 977 752 22.8% 30.0%

Work in process 689 867 521 -20.5% 66.5%

Finished goods 597 682 363 -12.5% 88.2%

Goods in transit 84 98 64 -14.4% 52.0%

Land - - - - -

Total 3,705 3,803 2,788 -2.6% 36.4%

Allowance (161) (117) (117) 37.9% 0.4%

Inventories - Net 3,544 3,686 2,671 -3.9% 38.0%

Net inventory value at the end of 2018 amounted to Rp3,544 billion, which was slightly lower by 3.9% from the previous year of Rp3,686 billion. Inventory’s balance comprised of spare parts amounting to Rp1,135 billion, which was 3.7% lower than in 2017, raw & indirect materials amounting to Rp1,200 billion, or 22.8% higher than in 2017, followed by work in process of Rp690 billion or 20.5% lower than in 2017, finished goods of Rp597 billion, or 12.5% lower than in 2017, and goods in transit amounting to Rp84 billion, or 14.4% lower than in 2017.

The majority of accounts within this group registered a decline, despite the increase in sales. This shows that the Company is increasingly effective in managing inventory, which is largely due to the enhanced integration of the maintenance and shipping systems supported by the implementation of the latest information technology. The increase in the raw & indirect materials is largely attributed to the implementation of risk management, so that cement production of consumer orders is not hampered. Non-Current Assets

Table of Non-Current Assets, December 31, 2016-2018

Non-Current Assets (Rp Billion) 2018 2017 a) 2016

Growth (%)

2018:2017 2017:2016

Deferred Taxes 507 764 752 -33.7% 1.6%

Investment in Associate Entities 86 84 94 2.4% -11.0%

Investment Properties 132 147 161 -9.8% -8.9%

Fixed Assets - Net 32,749 32,523 30,847 0.7% 5.4%

Deferred Charges - Net 114 116 118 -1.1% -1.5%

Investment Advances 5 14 179 -62.0% -92.0%

Intangible assets 1,212 1,270 1,355 -4.6% -6.3%

Other Non-Current Assets 343 349 348 -1.7% 0.4%

Total Non-Current Assets 35,148 35,267 33,854 -0.3% 4.2%a) As restated

Non-current assets in 2018 mainly comprised fixed assets, 93.2% amounting to Rp32,749 billion, or 0.7% higher than in 2017, intangible assets that account for 3.4% or Rp1,212 billion, which was 4.6% lower than in 2017, deferred taxes that account for 1.4% or Rp507 billion, which was 33.7% lower than in 2017.

Total non-current assets at the end of 2018 amounted to Rp35,148 billion, or 0.3% lower than in 2017 of Rp35,267 billion. This decrease was mainly due to the 33.7% decline in deferred taxes balance from Rp764 billion in 2017 to Rp507 billion. This indicates that some of the taxes has been settled by the Company.



Fixed Assets

Table of Fixed Assets, December 31, 2016-2018

Fixed Assets(Rp Billion)

2018 2017 2016Growth (%)

2018:2017 2017:2016

Direct Ownership 49,033 47,069 43,586 4.2% 8.0%

Leased Assets 683 823 855 -17.2% -3.6%

Total 49,716 47,893 44,441 3.8% 7.8%

Accumulated Depreciation (16,967) (15,369) (13,594) 10.4% 13.1%

Total Fixed Assets 32,749 32,523 30,847 0.7% 5.4%

The Company’s fixed assets are grouped into two categories, namely assets that are directly owned by the Company and leased assets. The total book value (net) of the Company’s fixed assets in 2018 amounted to Rp32,749 billion, which represents a slight increase of 0.7% from Rp32,523 billion in the previous year. This minor increase in fixed assets shows that there is no substantial investment made in 2018, which culminated as a result of the completion of 2 new plant units in 2017. The Company’s plan to build a new factory in Aceh is temporarily postponed. Thereby, in the absence of substantial new investment, the value of fixed assets in accounting will tend to decline, in line with the application of the depreciation calculation policy.

(See also the description “Development of Supporting Infrastructure & Build Design Competencies” as well as a description of “Capital Expenditures”).

Intangible Assets

Table of Intangible Assets, December 31, 2016-2018

Intangible Assets(Rp Billion)

2018 2017 2016Growth (%)

2018:2017 2017:2016

Licenses 798 761 771 4.9% -1.4%

Trademark 181 173 175 5.0% -1.4%

Computer Software 180 174 173 3.6% 0.4%

Land Rights Renewal 12 11 11 5.5% 0.1%

Customer Relationship 319 319 319 0.0% 0.0%

Goodwill 151 203 205 3.9% -1.1%

Total 1,641 1,641 1,655 3.7% -0.9%

Accumulated Amortization (429) (371) (300) 15.9% 23.7%

Total Intangible Assets 1,212 1,270 1,355 0.2% -6.3%

Intangible assets (net) amounts to Rp1,272 billion in 2018 or 0.2% higher than in 2017 of Rp1,270 billion. This increase was mainly supported by an increase in the value of licenses and trademarks.

Deferred Tax Assets

Table of Deferred Tax Assets, December 31, 2016-2018

Deferred Tax Assets(Rp Billion) 2018 2017a) 2016

Growth (%)

2018:2017 2017:2016

Holding 442 608 616 -27.2% -1.4%

Subsidiaries 65 156 136 -59.0% 14.9%

Total Deferred Tax Assets 507 764 752 -33.7% 1.6%a) As restated



The value of the Company’s deferred tax assets decreased 33.7% compared to 2017, which was brought about by the settlement/payment of part of the deferred taxes.

LIABILITIES

Table of Liabilities, December 31, 2016-2018

Liabilities (Rp Billion) 2018 2017 a) 2016Growth (%)

2018:2017 2017:2016

Short-term Liabilities 8,203 8,804 8,152 -6.8% 8.0%

Long-term Liabilities 10,217 10,219 5,501 0.0% 85.8%

Total Liabilities 18,420 19,023 13,653 -3.2% 39.3%a) As restated

The Company’s total liabilities as of December 31, 2018 amounted to Rp18,420 billion, 3.2% lower than in the previous year of Rp19,023 billion. The Company’s liability in 2018 consists of Short-term Liabilities that account for 44.5% and amounts to Rp8,203 billion, which is 6.8% lower, and Long-term Liabilities that accounts for 55.5% and amounts to Rp10,217 billion, which also decreased 0.0% from the previous year.

The following explanation portrays aspects that affect changes in the position of the Company’s liabilities.

Short-term Liabilities

Table of Short-term Liabilities, December 31, 2016-2018

Short-term Liabilities (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2018:2017

Short-term Borrowings 1,552 1,193 819 30.1% 45.7%

Trade Payables 4,476 4,927 4,078 -9.2% 20.8%

Other Payables 308 323 305 -4.4% 5.6%

Tax Payables 363 246 364 47.7% -32.5%

Short-term Employee Benefits Liabilities 393 726 867 -45.9% -16.3%

Accrued Expenses 901 630 677 43.1% -7.0%

Sales Advances 38 32 49 19.9% -36.3%

Current Maturities of Long-term Liabilities 172 727 992 -76.3% -26.6%

Total Short-term Liabilities 8,203 8,804 8,152 -6.8% 8.0%

The Company’s short-term liabilities at the end of 2018 mainly comprised of Trade Payables (54.6%) amounting to Rp4,476 billion, Short-term borrowings (18.9%) amounting to Rp1,552 billion, Accrued Expenses (11.0%) amounting to Rp901 billion and Short-term employee benefits liabilities (4.8%) amounting to Rp393bn and several other accounts that accounts for around 5%. Overall, short-term liability was 6.8% lower than in 2017.

An explanation of the causes for the decline and changes in the balance sheet items and efforts to manage them are described in the following discussion:



Trade Payables

Table of Trade Payables, December 31, 2016-2018

Trade Payables (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Current 3,711 2,741 2,487 35.4% 10.2%

Overdue

1-45 Days 114 1,562 608 -92.7% 156.9%

46-135 Days 297 271 243 9.6% 11.7%

136-365 Days 232 276 464 -15.9% -40.6%

More than 365 Days 122 77 276 58.7% -72.0%

Trade Payable-Net 4,476 4,927 4,078 -9.2% 20.8%

The trade balance position as of the end of 2018 was 9.2% lower to Rp4,476 billion from the previous year’s amount of Rp4,927 billion.

From the total value of trade payable in 2018, Rp3,723 billion or 82.9% accounts trade payables categorized as current and have not reached maturity.

In order to maintain relationships with suppliers, the Company provides payment guarantees so long as all procedures and billing documents are complete by providing facilities that involve financial institutions (supplier finance). The Company relies on Information Technology support that is constantly being developed to verify documents and apply e-procurement to obtain services and goods with quality standards and competitive prices.

Short-term Employee Benefits Liability

Table of Short-term Employee Benefits Liability, December 31, 2016-2018

Short-term Employee Benefits Liability (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Productivity, allowances, incentives, and Directors’ and Commissioners’ tantiem 300 649 803 -53.9% -19.2%

Other employee benefits 93 77 64 21.0% 20.0%

Total Short-Term Employee Benefits Liabilities 393 726 867 -45.9% -16.3%

The estimated short-term employee benefits liability in 2018 amounts to Rp393 billion, which is 45.9% lower than in 2017 of Rp726 billion. This decline was mainly due to the payment of employee benefits, following a comprehensive organizational restructuring that was followed by a reduction in the number of employees.

Accrued Expense

Table of Accrued Expense, December 31, 2016-2018

Accrued Expense (Rp Billion) 2018 2017 2016Growth (%)

2018:2017 2017:2016

Transportation 181 115 203 57.2% -43.3%

Maintenance 159 72 13 119.3% 475.5%

Professional fees 163 36 26 357.9% 34.7%

Sales promotion 58 150 212 -61.2% -29.3%

Insurance, rent and expedition, Packer fees, etc.

147 119 28 23.8% 322.2%

Others (each below Rp1 Billion) 193 138 195 40.0% -29.1%

Total of Accrued Expense 901 630 677 43.1% -7.0%



Accrued expenses at the end of 2018 amounted to Rp901 billion, or 43.1% higher than in 2017 of Rp630 billion. This is largely due to the increase in the Company’s operational activities in line with 2 new factories that became fully operational, followed by an increase in the delivery of goods to customers.

Current Maturities of Long-Term Liabilities

Table of Current Maturities of Long-Term Liabilities, December 31, 2016-2018

Current Maturities of Long-Term Liabilities (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Bank Loans 84 602 867 -86.1% -30.5%

Finance Lease Liabilities 88 125 125 -29.4% 0.3%

Total Current Portion in Long-term Liabilities 172 727 992 -76.3% -26.6%

Total Current Maturities of Long-Term Liabilities was 76.3% lower to Rp172 billion compared to Rp727 billion in 2017. This decrease was mainly due to lower long-term bank loans that mature in one year, which fell by 86.1% to only Rp84 billion and a decrease in finance lease liabilities that mature in one year by 29.4% to Rp88 billion.

This decline is a reflection of the Company’s success in converting its loan facilities from short-term to long-term.

Short-term Loans

Table of Short-term Loans, December 31, 2016-2018

Short-term Loans(Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Rupiah 1,493 1,189 815 25.6% 45.9%

Vietnamese Dong 57 4 4 1448.0% -1.4%

Short-term Liabilities 1,552 1,193 819 30.1% 45.7%

The Company’s short-term loans consist of loans in Rupiah and in Dong currency. Short-term loans in Rupiah increased 25.6% from Rp1,189 billion in 2017 to Rp1,494 billion. Meanwhile, loans denominated in Dong increased 1,448% upon translation into Rupiah, from Rp4 billion to Rp57 billion. As a result, the Company’s total short-term loans increased 30.1%. The increase in short-term loans in 2018 was largely due to the need for working capital funding.

NON-CURRENT LIABILITIES

Table of Non-Current Liabilities, December 31, 2016-2018

Non-Current Liabilities (Rp Billion) 2018 2017 a) 2016

Growth (%)

2018:2017 2017:2016

Deferred Tax Liabilities 207 72 39 189.7% 85.1%Long-term Employee Benefits Liabilities 1,433 1,778 823 -19.4% 116.0%Long-term Liabilities Net of Current Maturities 8,140 8,099 4,450 0.5% 82.0%

Long-term Provisions 228 224 183 1.9% 22.6%Other Non-Current Liabilities 209 46 7 343.8% 615.6%Total Non-Current Liabilities 10,217 10,219 5,501 0.0% 85.8%a) As restated

The composition of non-current liabilities at the end of 2018 was dominated by long-term liabilities net of current maturities account, which comprised of 79.7% or Rp8,140 billion and long-term employee benefits liabilities comprised of 14.0% or Rp1,433 billion. These non-current liabilities in 2018 was relatively unchanged amounting to Rp10,217 billion from Rp10,219 billion in the previous year.



The following is a brief explanation of the causes of the changes that occurred in the two main accounts of this non-current liabilities.

Long-term Employee Benefits Liabilities

Table of Long-term Employee Benefits Liabilities, December 31, 2016-2018

Long-term Employee Benefits Liabilities (Rp Billion) 2018 2017 a) 2016

Growth (%)

2018:2017 2017:2016

Pension Benefits Liabilities 531 810 440 -34.5% 84.2%

Other Employee Benefits Liabilities 392 414 334 -5.5% 24.2%

Other Post Employment Benefit Liabilities 511 553 49 -7.7% 1,020.9%

Employee Benefits Liabilities 1,433 1,778 823 -19.4% 116.0%a) As restated

Long-term employee benefits liabilities decreased 19.4% compared to the previous year. This decrease was mainly due to the payment of employee benefits made in 2018, as part of the organizational restructuring program that reduced the total number of employees as some employees had reached retirement. This decrease in account also occurred in short-term employee benefits liabilities, with the same reasons.

Non-Current Liabilities

Table of Non-Current Liabilities, December 31, 2016-2018

Non-Current Liabilities Less Current Portion of Liabilities (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Bank Loan 4,872 4,715 3,988 3.3% 18.2%

Lease Financing Liabilities 273 390 461 -29.9% -15.5%

Bonds Debt 2,995 2,994 - 0.0% -

Total Long-term Liabilities Less CurrentPortion Liabilities 8,140 8,099 4,450 0.5% 82.0%

Non-current liabilities increased 0.5% from the previous year, reflecting an investment loan taken by a non-cement subsidiary.

Long-term Provisions

Table of Long-term Provisions, December 31, 2016-2018

Long-term Provisions (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2018:2017

Mining restoration 109 118 113 -7.5% 4.7%

Estimated Cost of Fixed Asset Disassembly 119 106 70 12.3% 51.7%

Total Long-term Provisioning 228 224 183 1.9% 22.6%

In 2018, the Company’s long-term provisions increased 1.9% compared to 2017. This was mainly due to an increase in the estimated cost of demolishing fixed assets of 12.3% compared to the previous year. Demolition is carried out in preparation for opening a business segment in real estate or industrial estates.



EQUITYChanges in the Company’s equity position are as follows.

Table of Equity, December 31, 2016-2018

Equity (Rp Billion) 2018 2017 a) 2016Growth (%)

2018:2017 2017:2016

Share Capital 593 593 593 0.0% 0.0%

Additional Paid-in Capital 1,458 1,458 1,458 0.0% 0.0%

Difference in Value of Equity Transaction with Non-controlling Interests

29 29 29 0.0% 0.0%

Other Components of Equity 499 102 427 391.6% -76.3%

Retained earnings:

Appropriated 253 253 253 0.0% 0.0%

Unappropriated 28,360 26,087 26,275 8.7% -0.7%

Total Equity Attributable to the Owners of the Parent Entity

31,192 28,522 29,035 9.4% -1.8%

Non-controlling Interests 1,544 1,524 1,539 1.3% -1.0%

Total Equity 32,736 30,046 30,574 9.0% -1.7%a) As restated

The balance of the Company’s equity attributable equity holders of the parent entity in 2018 amounted to Rp31,192 billion, or 9.4% higher than in 2017 of Rp28,522 billion. This was mainly contributed by the increase in unappropriated retained earnings attributable to the owners of the parent entity in 2018 of Rp2,273 billion.

CAPITAL STRUCTURE AND CAPITAL STRUCTURE POLICY

Table of Capital Structure, December 31, 2016-2018

Capital Structure (Rp Billion) 2018 2017 a) 2016Growth (%)

2018:2017 2017:2016

Liabilities 18,420 19,023 13,653 -3.2% 39.3%

Equity 32,736 30,046 30,574 9.0% -1.7%

Total Liabilities and Equity 51,156 49,069 44,227 4.3% 10.9%a) As restated

The Company’s capital structure in 2018 consists of 36.0% in liabilities and 64.0% in equity. Most of the Company’s liability portion is closely related to financing the Company’s normal operating activities and the Company’s business development activities. Meanwhile, almost all portions of equity are closely tied to the development of production infrastructure, production process support as well as product distribution infrastructure.

Capital Structure PolicyThe Company always considers the prudent principles in determining capital structure policy so as to create a capital composition structure derived from internal funding and external funding remains balanced so as to maximize the value of the company. The Company also constantly maintains its capital structure in accordance with the financial covenant required by its creditors in accordance with the principles of compliance.

Overall, the Company’s capital structure policies that it carried out are:• Capital structure always takes into account the

balance between financial risk and rate of return in an effort to enhance the Company’s value.

• Optimize capital structure by regulating the ideal Debt and Equity combination by taking into account the Company’s funding needs and cash flow capabilities.

• The capital structure combination is determined after conducting a sensitivity analysis with several core assumption variations that the Company will most likely encounter.

The Company maintains the capital structure’s soundness level by using the gearing ratio, by dividing total interest bearing loan with total equity attributable to the owner of the parent entity. The Company’s policy is to maintain leverage within an optimum range by comparing it with similar



companies in Indonesia. This is carried out so as to ensure that the Company’s financial condition remains sound thereby maintaining access to competitive funding sources. Table of Gearing Ratio, December 31, 2016-2018

Gearing Ratio and Debt to EBITDA Ratio (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Bank loans and Bonds Payable 9,502 9,504 5,674 0.0% 67.5%

Finance Lease Liabilities 362 515 586 -29.8% -12.1%

Total interest Bearing Loans 9,864 10,019 6,260 -1.5% 60.0%

Total equity attributable to owners of the parent entity 31,192 28,522 29,035 9.4% -1.8%

Gearing Ratio 0.32 0.35 0.22 (0.04) 0.14

Debt to EBITDA Ratio 1.5 2.0 0.9 (0.54) 1.14

By implementing a consistent capital structure policy, total interest bearing debt’s position at the end of 2018 amounted to Rp9,864 billion, the Company’s debt to equity ratio amounted to 0.32x. The increase in the ratio shows that the Company has begun to use external funding to develop its business, and does not limit its funding sources. One of the things that was carried out was by issuing Semen Indonesia’s Shelf-Registered Bond I Phase I of 2017 amounting to Rp3,000,000,000 (Three Trillion Rupiah). The bond issuance’s success shows that the Company does not only depend on banks to obtain external funding, with cost of funds that are quite competitive and effective for the Company.

NET WORKING CAPITAL

Table of Net Working Capital, December 31, 2016-2018

Net Working Capital(Rp Billion)

2018 2017 2016Growth (%)

2018:2017 2017:2016

Current Assets 16,008 13,802 10,373 16.2% 33.1%

Current Liabilities 8,203 8,804 8,152 -3.5% 8.0%

Net Working Capital 7,805 4,998 2,221 50.7% 125.0%

Overall, the Company’s net working capital in 2018 increased 50.7% from Rp4,998 billion in 2017 to Rp7,805 billion in 2018. This increase was due to the implementation of marketing policies, including the implementation of direct selling methods for corporate customers, which allowed the Company to directly book sales of its products. In addition to the implementation of marketing policies, this increase was also backed by the implementation of the Company’s cash management policies to support operational activities. Product demand and the speed of the Company’s response largely attributed to the implementation of the latest technology-based integrated operational activity monitoring system also contributed to the increase in the Company’s net working capital.

CASH FLOWS Table of Cash Flows, 2016-2018

Cash Flows (Rp Billion) 2018 2017 2016Growth (%)

2018:2017 2017:2016

Cash Flows from Operating Activities 4,462 2,760 5,180 61.7% -46.7%

Net Cash Flows Used in Investing Activities (1,789) (3,490) (5,529) -48.7% -36.9%

Net Cash Flows Provided by (Used in) Financing Activities (1,065) 1,533 (780) -169.4% -296.5%

Net Increase (Decrease) in Cash and Cash Equivalents 1,608 803 (1,130) 100.2% -171.1%

Cash and Cash Equivalents at the Beginning of the Year 3,638 2,835 3,964 28.3% -28.5%

Cash and Cash Equivalents at the End of the Year 5,246 3,638 2,834 44.2% 28.3%



Overall, the ending balance of cash and cash equivalents increased 44.2% above the balance of cash and equivalent in the previous year. The explanation for the increase in the balance is as follows.

Cash Flow from Operating Activities Table of Cash Flow from Operating Activities, 2016-2018

Cash Flow from Operating Activities (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Receipts from Customers 29,775 26,758 26,210 11.3% 2.1%

Payments to Suppliers (21,420) (19,888) (17,036) 7.7% 16.7%

Payments to Employees (2,605) (2,925) (2,614) -10.9% 11.9%

Payment of Income Taxes (543) (1,148) (1,545) -52.7% -25.7%

Others Receipts/Payments - Net (745) (37) 165 1902.4% -122.5%

Net Cash Flows Provided by Operating Activities 4,462 2,760 5,180 61.7% -46.7%

The Company’s net cash flows derived from operating activities amounted to Rp4,462 billion, or 61.7% higher than in 2017. This increase mainly came from the 11.3% increase from receipts from customers as a result of increased sales volume and the Company’s product selling prices, which was greater than the total funds to pay suppliers, employees, income taxes and other payments.

Cash Flow from/for Investment Activities Table of Cash Flow from/for Investment Activities, 2016-2018

Cash Flow from Investing Activities

(Rp Billion)2018 2017 2016

Growth (%)

2018:2017 2017:2016

Fixed Assets:

Acquisition (1,790) (3,491) (5,065) -48.7% -31.1%

Proceeds from Sale 10 11 12 -13.5% -8.2%

Acquisition of Subsidiary/Associate - - (423) - -100.0%

Others Receipts/Payments - Net (9) (10) (53) -11.9% -80.7%

Net Cash Flows Used in Investing Activities (1,789) (3,490) (5,529) -48.7% -36.9%

Cash flows for investment activities in 2018 amounted to Rp1,790 billion, which was 48.7% lower than in the previous year of Rp3,490 billion. The decline in investment for the purchase of fixed assets is closely related with the completion of two of the Company’s new factories in Rembang and Tonasa. Capital expenditures that was carried out was largely focused on funding maintenance needs and for funding investment in supporting infrastructure related to efforts to improve efficiency, including acquisition of associated entities.

Cash Flow from/for Financing Activities Table of Cash Flow from/for Financing Activities, 2016-2018

Cash Flows from Financing Activities (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Borrowings:

Payment (6,418) (7,025) (1,805) -8.6% 289.1%

Proceeds 6,355 10,475 3,011 -39.3% 247.9%

Payment Liabilities (175) (93) (167) 88.3% -44.6%

Dividends (827) (1,824) (1,819) -54.7% 0.3%

Net Cash Flows Provided by (Used in) Financing Activities (1,065) 1,533 (780) -169.4% -296.5%



Total net cash flow used for funding activities in 2018 amounted to Rp1,065 billion, while in 2017, the Company actually obtained cash from funding activities, including issuance of bonds and withdrawal of long-term loans. The use of funds amounting to Rp1,065 was due to the existence of bank loan repayment activities, financing and dividend payments, which were greater than the withdrawal of loans amounting to Rp8,175 billion carried out in 2018.

CAPABILITY TO REPAY DEBT

The Company applies debt management, wherein withdrawal of new loans is only carried out after determining the right instrument to use as well as the needs and capabilities for funding strategic investments. This is carried out to obtain the best terms, conditions and conditions of the facility.

The Company’s ability to pay debts can be seen from three relevant financial ratios, namely: liquidity ratio, solvency ratio and the Company’s receivables collectability level, as shown in the financial ratios table and the following explanation:

Key Financial Ratios

Key Financial Ratios(Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Gross Profit Margin (%) 30.40% 28.62% 37.71% 1.79% -9.09%

Profit Margin (%) 15.90% 10.25% 20.00% 5.65% -9.75%

Net Profit Margin (%) 10.03% 5.83% 17.30% 4.21% -11.47%

EBITDA Margin (%) 21.42% 17.63% 26.64% 2.02% -7.24%

EBITDA to Interest Expense (x) 6.9 6.5 19.2 -3.9% -62.8%

Return on Equity (%) *) 9.87% 5.68% 15.57% 4.19% -9.89%

Return on Assets (%) 6.02% 3.3% 10.22% 2.72% -6.92%

Current Ratio (%) 195.15% 156.78% 127.25% 38.37% 29.52%

Debt to Asset Ratio (%) 19.28% 20.42% 14.16% -1.14% 6.26%

Debt to Capital Ratio(%) 24.03% 26.00% 17.74% -1.97% 8.26%

Equity to Capital Ratio (%) 79.74% 77.96% 86.62% 1.78% -8.67%

Debt to EBITDA (x) 1.5 1.9 0.9 -19.2% 106.5%

EBITDA to (Interest Expense + Loan Principal) (x)

2.45 2.02 3.20 21.5% -37.1%

Debt to Equity Ratio (%) 31.62% 35.13% 21.56% -3.50% 13.57%

Liability is interest-bearing liability*) Equity attributable to the owner of the parent entity

Liquidity Ratio Table of Current and Solvency Ratio, 2016-2018

Ratio (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Current Assets 16.008 13.802 10.373 16.0% 33.1%

Current Liabilities 8.203 8.804 8.152 -6.8% 8.0%

Current Ratio (x) 2,0 1,6 1,3 0.38 0.30

Solvency Ratio

Total Interest Bearing Liability 9.864 10.019 6.260 -1.5% 60.0%

Total Assets 51.156 49.069 44.227 4.3% 10.9%

Solvability 19.3% 20.4% 14.2% -1.1% 6.3%



This ratio shows the ability of the Company to meet its short-term liabilities that are due, which is calculated by dividing current assets with current liabilities.

In 2018, the Company’s liquidity ratio was 2.0 times, higher than in 2017 of 1.6 times. This ratio improvement was supported by an increase in the amount of cash and cash equivalents of up to Rp5,246 billion. As a result of the increase in the current ratio, the Company’s ability to meet short-term liabilities that are due has improved.

Solvency RatioShows the Company’s ability to fulfill its debt, both short and long term, as indicated by measuring debt to equity as well as to total assets.

In 2018, the Company’s solvency to assets position was 19.3% or 1.1% lower than in 2018. This ratio indicates that the Company is still very capable of meeting its debts.

Debt to Equity Table of Debt to Equity, 2016-2018

Liability to Capital(Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Total Interest Bearing Liability 9,864 10,019 6,260 -1,5% 60,0%

Capital (Equity + Total Interest Bearing Liability)

42,600 40,065 36,835 6,3% 8,8%

Total Interest Bearing Liability to Capital (%) 23,2% 25,0% 17,0% -1.9% 8.0%

Meanwhile, debt to equity in 2018 was at the 23.2% level, or 1.9% lower than in the previous year. This decrease was mainly due to a decrease in interest-bearing debt, while at the same time there was an increase in equity due to additional retained earnings.

The tables above show that the Company is still able to fulfill and manage its debts well throughout 2018.

Details of all of the Company’s Interest-Bearing Liabilities are as follows:

Total Interest Bearing Liability(Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Current Maturities of Long-term Liabilities

Current Liabilities 1,552 1,193 819 30.1% 45.7%

Bank Loans 84 602 867 -86.1% -30.5%

Finance Lease Liabilities 88 125 125 -29.4% 0.3%

Long-term Liabilities net of Current Maturities

Bank Loans 4,872 4,715 3,988 3.3% 18.2%

Finance Lease Liabilities 273 390 461 -29.9% -15.5%

Bonds Payable 2,995 2,994 - 0.0% -

Total Interest Bearing Liability 9,864 10,019 6,260 -1.5% 60.0%

Receivables Collectability Table of Receivables Collectability, 2016-2018

Receivables Collectibility(Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Revenue 30,688 27,814 26,134 10,3% 6,4%

Average Receivables 5,336 4,362 3,691 22,3% 18,2%

ACP (days) 63 56 51 6 6



The receivables collectability level (ACP) is calculated by comparing the average receivables with income multiplied by the number of days in a year (365 days). In 2018, the receivables collectability level was 63 days, up from the previous year of 56 days. This is the impact of the Company’s policies on marketing strategy, namely the term of payment policy that was applied selectively to maintain the Company’s performance, given the tight competition in the market.

(See also the discussion on “Trade Receivables”)

Profitability Table of Profitability

Profitability (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

Gross Profit Margin (%) 30.40% 28.62% 37.71% 1.79% -9.09%

Profit Margin (%) 15.90% 10.25% 20.00% 5.65% -9.75%

Net Profit Margin (%) 10.03% 5.83% 17.30% 4.21% -11.47%

EBITDA Margin (%) 21.42% 19.40% 26.64% 2.02% -7.24%

The Company’s profitability in 2018 increased once again compared to 2017. This is a result of the Company’s success in managing and controlling several main items pertaining to production costs and product distribution costs. At the same time, the Company was able to implement a pricing strategy that allowed product selling price to generally increase.

Profitability Ratios

Profitability (Rp Billion) 2018 2017 2016

Growth (%)

2018:2017 2017:2016

ROA 6.02% 3.3% 10.2% 2.72% -6.92%

ROE 9.87% 5.68% 15.57% 4.19% -9.89%

Shows the scale of the Company’s ability to generate net profit by using available resources.

Return On Equity in 2018 is 9.87%, an increase from 2017 of 5.68%. Return on Assets also increased to 6.06% compared to 3.3% in 2017.

The increase in profitability of these assets were mainly influenced by the greater percentage of the Company’s profit growth, which is greater than the percentage increase in total assets and equity.



INVESTMENT IN CAPITAL EXPENDITURESThe Company utilized capital expenditure (capex) to maintain performance and develop business in order to grow sustainably. To maintain performance, the Company implements routine capex that consists of Operational Continuity Capex (maintenance), Operational Support Capex (supporting), Operational Enhancement Capex (efficiency), and Mandatory Capex (legal compliance). While for development, the Company implements strategic capex for long-term interests.

Based on the Holding and Subsidiaries Board Manual, the Company prepared the Capex Guidelines as an effective and efficient capex management framework at Semen Indonesia Group. This Capex Guideline covers policies, criteria, limits on value, type, proposal and supporting documents, addition of investment items, exceeding budgetary authority for approval and ratification, and cancellation of investments.

Investment in Capital ExpendituresRp Million

Capital Expenditures 2018 2017 % Changes

Operational Maintain 1,529,023 819,760 187

Strategic Projects 240,836 1,714,858 14

New Plant Project - 1,403,093 -

Total 1,769,859 3,937,711 45



RESTATEMENT OF PRIOR YEAR’ CONSOLIDATED FINANCIAL STATEMENTSIn various periods from 2000 to 2013, the Company entered into several insurance contract cooperation agreements with AJB BP to fund the Company’s defined benefit programs for the BPKP, TKHT, and MPP (Note 42, 2018 Financial Statements).

On March 29, 2017, the Company sent a letter to AJB BP on its intention to terminate the above insurance contract cooperation agreements effective July 1, 2017. Following the request for termination, the Company and AJB BP met on June 6, 2017 and agreed among others the following:• The termination date is July 1, 2017• The data used as basis for the calculation of the

rights and obligation of both parties is as at April 30, 2017 (valuation date) and any transactions after such date until the termination date will be adjusted

On June 15, 2017, AJB BP submitted the calculation of the amount due to the Company as of valuation date based on AJB BP’s position on the termination provisions stated in the insurance agreements. The Company did not agree on the calculation determined by AJB BP based on letter sent to AJB BP on July 4, 2017. No agreement was reached as of December 31, 2017.

While both parties were still in process of reconciling their rights and obligations based on their own respective positions of the termination obligations, on January 15, 2018, the Company met with AJB BP on its intention to revoke the termination letter submitted by the Company. However, the minutes of such meeting had not been signed by representatives from AJB BP. On January 19, 2018, AJB BP submitted a Corporate Guarantee Letter to the Company stating that AJB BP guarantees the security of the management of the funds received as premium payment, and accordingly, AJB BP will carry out its obligations as stipulated in the contracts.

On January 21, 2019, AJB BP issued a letter that before the cancellation letter submitted by the Company can be revoked, the Company needs to ensure the adequacy of availability of fund balance to settle all past service benefit obligations under the benefit programs.

Based on the above condition, the termination of the insurance cooperation agreements was effective in 2017 and request for revocation of the termination letter submitted by the Company has not been effective. Based on the terms of the insurance cooperations agreements, AJB BP is obliged to return the insurance management funds in accordance with actuarial calculation agreed upon by the Company and AJB BP. The employee benefits obligation under the benefit programs becomes the liability of the Group until the revocation of termination letter submitted by the Company becomes effective. Due to the status of the insurance cooperation contracts as of December 31, 2017 and the terms relating to termination, the Group has recorded a prior year adjustment to record the plan asset and the past service benefits obligation amounting to Rp5,513,865 and Rp498,166,911, respectively, as of December 31, 2017.

The consolidated statement of financial position as at 31 December 2017 before and after the restatement is as follows:

Description Previously Reported Amount of Restatement Restated

Deferred tax assets 664,718,161 99,633,382 764,351,543

Other non-current assets 343,697,366 5,513,865 349,211,231

Long-term employee benefits liabilities 1,279,712,096 498,166,911 1,777,879,007

Retain earning- Not yet used 26,480,022,941 (393,019,663) 26,087,003,278



The Company’s income statement and other comprehensive income for the year ended December 31, 2017 before and after the readjustment are as follows:

Description Previously Reported Amount of Restatement Restated

General and administrative expenses (2,421,984,391) (492,653,045) (2,914,637,436)

Income tax expense (703,520,449) 99,633,382 (603,887,067)

Current year’s profit attributable to:

Owner of the parent entity 2,014,014,753 (393,019,663) 1,620,995,090

Comprehensive income attributable to:

Owner of the parent entity 1,688,437,547 (393,019,663) 1,295,417,884

The statement of financial position on January 1, 2017 is not presented because there is no financial impact for the year ended December 31, 2016.

MATERIAL INFORMATION AND FACTS SUBSEQUENT TO DATE OF ACCOUNTANT’S REPORT

Transaction costs (consist of public accountant/independent auditor fee, appraisal/valuer fee, law consulting fee and notarial fee) which are directly attributed to the acquisition transaction amounted to Rp146,054,343 and has been recognized in this consolidated financial statements.

In order to finance the acquisition, on November 12, 2018, the Company and BNP Paribas Singapore Branch have signed a loan agreement with a total loan amount of USD926,970,862 (equivalent to Rp13,07 trillion). The Company has made drawdown of loan facility on January 29, 2019.

The acquisition of PT Holcim Indonesia Tbk is considered as a strategic move for the Company to grow and develop its business in Indonesia and provide a positive contribution to the Company’s performance.

2. Loan of PT Solusi Bangun Indonesia Tbk. On January and February, 2019, PT Solusi Bangun

Indonesia Tbk (formerly PT Holcim Indonesia Tbk) (SBI), a subsidiary, entered into loan facilities with several banks. In connection with such loan facilities, the Company guarantee that it will remain a majority shareholder of SBI (direct or indirect) as long as the facility has not been paid.

There were several material events after the reporting period date, as follows.1. Acquisition of PT Holcim Indonesia Tbk On November 12, 2018, the Company and

PT Semen Indonesia Industri Bangunan, subsidiary has entered into a Conditional Sale and Purchase Share Agreement with Holderfin B.V., to acquire 80.64% share ownership of PT Holcim Indonesia Tbk, a public company based in Jakarta which is engaged in cement industry.

This acquisition was completed on January 31, 2019 with acquisition value of USD916,929,814 (equivalent to Rp12,958,648,084) and has been announced by the Company to the Public on February 1, 2019. Company has complied with relevant OJK rules pertaining to this acquisition.

Until the issuance of the consolidated financial statement published, the estimated fair value of the identifiable assets and liabilities of PT Holcim Indonnesia Tbk at the date of acquisition is still in process and cannot be presented in these consolidated financial statements.



BUSINESS PROSPECTSGlobal economic conditions in 2019 are predicted to remain unfavorable as a result of the trade dispute between the two economic superpowers, the United States and China, which began to develop in mid-2018 and has yet to be resolved. In view of the unfavorable relations between the two countries, several global economic institutions, such as the IMF, have lowered the projected global economic growth from 3.7% to 3.5%. Meanwhile, the World Bank also revised their global economic growth projection from 3.0 to 2.9%.

Along with the unfinished trade dispute resolution with the United States and the low economic growth rates in 2018, which amounted to 6.6% from 6.8% in 2017, China’s economic growth is also projected to slow to a level of 6.3% in 2019.

These global economic conditions, especially China’s economic conditions, will affect national economic conditions, given that the trade balance with China is one of the biggest. In view of these conditions, the Government has set Indonesia’s growth target of 5.3%, assuming an exchange rate of Rp15,000/US$ and an inflation target rate of +3.5%. Indonesia’s state budget is predicted to remain strong with the moderate projected growth rate. The completion of infrastructure projects, especially toll roads and non-toll roads and various transportation facilities is predicted to have a positive impact on economic growth, as well as increase state tax revenues.

This will strengthen the Government’s ability to stimulate economic growth through infrastructure spending, which in turn will drive growth of other economic activities, in addition to making the economy move more efficiently. The public confidence index in the form of the IKK, also continues to show improvement, which reflects optimism for a well-maintained economic recovery.

By taking into account the entire background of the macroeconomic as well as real conditions in the community, therefore, prospects for the cement industry and the cement downstream industry will remain good in future. The projected cement consumption in the coming year is projected to continue to grow at a moderate rate of around 6%. This is not much different from the consumption growth in 2018.

The competition among cement companies will continue to be high, given the oversupply conditions that continue to overshadow the domestic cement business market with shifting trends in bulk cement consumption, which will continue to increase.

DIVIDEND AND DIVIDEND POLICYThe Company pays dividends by taking into account the financial conditions for business development and shareholder returns, however, in accordance with Management policy, the dividend payment ratio ranges from 40-50% of net profit. The Company’s Board of Directors, with the approval of the Board of Commissioners, can pay interim dividends, provided that the Company’s financial condition permits it, and the interim dividend that is issued shall form part of the final dividend whose amount shall be decided at the GMS.

In accordance with the results of the AGMS in 2018, the Company paid dividends amounting to 40% of net profit on May 30, 2018 amounting to Rp805.88 billion or Rp135.83 per share.

Date of GMS Recording Date

Date of Payment Fiscal Year Dividend

Pay-out RatioDividend

(Rp Billion)Dividend per

Share

April 30, 2018 May 22, 2018 May 30, 2018 2017 40% Rp805.68 Rp135.83

March 31, 2017 April 27, 2017 May 3, 2017 2016 40% Rp1,808.64 Rp304.92

May 13, 2016 May 25, 2016 June 16, 2016 2015 40% Rp1,808.60 Rp304.91

April 16, 2015 April 28, 2015 May 20, 2015 2014 40% Rp2,226.3 Rp375.34

March 25, 2014 May 02, 2014 May 19, 2014 2013 45% Rp2,416.6 Rp407.42

April 30, 2013 June 03, 2013 June 17, 2013 2012 45% Rp2,181.2 Rp367.70

June 26, 2012 July 20, 2012 August 03, 2012 2011 50% Rp1,962.7 Rp330.89

June 28, 2011 August 01, 2011 August 15, 2011 2010 50% Rp1,816.7 Rp306.26



TAXPAYER COMPLIANCEThe Company always complies with its responsibilities as a taxpayer. Details of payment related to the Company’s tax obligations are presented in the table below:

No. Type of Tax2018 2017 2016

Rp million Rp million Rp million

1. Income Tax 1,689,358 1,466,044 1,109,362

2. Value Added Tax 1,581,503 2,044,205 2,285,598

3. Import Duty 23,145 6,925 8,315

4 Property Tax 16,073 32,037 18,657

5 Local Tax 150,369 591,220 1,226,792

6. Dividend to Government 922,586 805,680 410,941

7. Total 4,383,034 4,946,112 5,059,665

EMPLOYEE/MANAGEMENT SHARE OWNERSHIP PROGRAMThe Company has never implemented an employee/management share ownership program (ESOP/MSOP)

UTILIZATION OF PROCEEDS FROM PUBLIC OFFERINGIn order to strengthen the capital structure and support funding, the Company carried out a corporate action in 2017 through the issuance of Semen Indonesia Shelf Registration Bond I Phase I of 2017 (“Blaze”) with a principal amount of Rp3,000,000,000,000 (Three Trillion Rupiah) with a tenor of 5 (five) years from June 20, 2017 and a fixed interest rate of 8.60% (eight point sixty percent) per year.

The underwriters for the Company’s bonds issuance, namely are PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri Sekuritas. The trustee was PT Bank Tabungan Negara (Persero) Tbk.

All proceeds from this Bond Public Offering, after deducting costs, were used entirely to refinance Semen Tonasa’s syndicated loan and the Company’s working capital.

Meanwhile for 2018, there were no corporate action related to the issuance of new shares or bonds.

Description Rp Million

Public Offering Result 3,000,000

Public Offering Fee 6,609

Net Result 2,993,391

Actual Use of Funds

Refinancing of Semen Tonasa’s Syndicated Loan Debt 1,370,000

Company’s Working Capital 1,623,391

Total Actual Use of Funds 2,993,391

The remaining Fund of Public Offering 0



INVESTMENT, EXPANSION, DIVESTMENT, BUSINESS MERGER/CONSOLIDATION, ACQUISITION, DEBT/CAPITAL RESTRUCTURING, AND RELATED PARTY TRANSACTIONS WITHIN THE FINANCIAL YEAR

INVESTMENTThe Company invested to enhance operational performance by improving efficiency, including by completing 2 packing plant units in North Maluku and Bengkulu. In addition to completing and constructing a Waste Heat Recovery Power Generator (WHRPG) facility in Tuban.

EXPANSION The Company expanded its production capacity through the construction of new plants (organically) and acquisitions (inorganically). In 2018, the Company was in the process of optimizing 2 new cement plant units each with a design capacity of 3 million tons per year in Rembang (Central Java) and in Padang (Indarung VI, West Sumatra), the construction of which was completed at the end of 2017. The Company also is still in the preparation stage for the construction of a new plant in Aceh, through PT Semen Indonesia Aceh (North Sumatra), which is in cooperation with PT Samana Citra Agung with a design capacity of 3 million tons per year.

DIVESTMENTThere were no Divestments within the reporting period.

ACQUISITION In 2018, the Company commenced the acquisition process of PT Holcim Indonesia Tbk, which was preceded by the signing of the Conditional Sale and Purchase Agreement (CSPA) on November 12 between the Company, through its subsidiary, PT Semen Indonesia Building Industry with Holderfin B.V. The acquisition process was subsequently completed on January 31, 2019.

BUSINESS MERGER/CONSOLIDATION

There are no business mergers within the reporting year.

DEBT/CAPITAL RESTRUCTURINGThere is no debt/capital restructuring during the 2018 reporting year.

RELATED PARTY TRANSACTIONS

The Company and subsidiaries have transactions with related parties. Complete information on Related Party Transactions is listed in Note 43 “Related Party Character and Transactions” in the Audited Consolidated Financial Statement within this Annual Report.

As a result of these related transactions, the Company has assets and liabilities balance that is recorded within the framework of transactions and recorded in accounts: cash and cash equivalents, short-term investments, trade receivables, other payables and non-current liabilities.



CHANGES IN LAWS AND REGULATIONS THAT IS RELEVANT AND IMPACT ON THE COMPANY’S PERFORMANCE

Regulatory Changes In the Reporting Year, the Company implemented several adjustments related to the enactment of a number of regulations that took effect in 2018 as well as those issued in 2018. Some of the regulations referred to are:

LAWS AND REGULATIONS IN 2016, 2017 AND 2018 THAT AFFECT THE COMPANY

No. Regulation Content Impact

1. Financial Services Authority (OJK) Regulation Number: 031/POJK.04/2015 on the Disclosure of Material Information or Facts by Issuers or Public Companies

The OJK regulation provides the criteria of material information or facts that must be disclosed by issuers or public companies

PT Semen Indonesia (Persero) Tbk shall have to comply with the amended regulation by OJK on Disclosure of Information that Must be Announced Immediately to the Public

2. SOE Minister Regulation No. Per-13/MBU/09/2014 on the Guideline for the Utilization of Fixed Assets of State-Owned Enterprise

The regulation of the Minister of SOE provides the concept and guidelines for the utilization of fixed assets of SOEs in order to optimize the productivity of such assets

PT Semen Indonesia (Persero) Tbk optimizes its fixed assets through various schemes, such as: a. Built Operate Transfer/BOT; b. Built Transfer Operate/BTO; c. Operational Cooperation/KSO; d. Business Cooperation/KSU; e. Lease; or f. Lend Use

3. Financial Services Authority (OJK) Regulation Number: 29/POJK.04/2016

Regulates the Annual Report of Issuers or Public Companies

The Company shall submit its Annual Report at the latest on 30 April following the close of the fiscal year.

4. Financial Services Authority (OJK) Regulation Number: 30/POJK.05/2016

Regulates the structure, format and contents of Annual Reports

The Company shall prepare its Annual Report in the format and contents as regulated.

5. Financial Services Authority (OJK) Regulation Number: No1/POJK.05/2016 on Investment in State Bonds (SBN) for Non-Bank Financial Institutions, dated January 11, 2016

Non-Bank Financial Institutions such as insurance companies, deposit insurance corporation, employer’s pension fund, and Social Security Agencies (BPJS) Employment and Health are required to invest 20%-30% of its total investment in marketable securities in (SBN)

Has no significant impact to the Company.

6. Financial Services Authority (OJK) Regulation Number: 36/POJK.05/2016 on Amendment to POJK No 1/POJK.05/2016 on Investment in State Bonds (SBN) for Non-Bank Financial Institutions, dated November 10, 2016

SBN is defined to comprise also of Bonds or Sukuk issued by national and regional SOEs and their subsidiaries, for the purpose of infrastructure financing, with 50% portfolio after December 31, 2016, as regulated in the relevant provisions

As a producer of cement and cement downstream products used in the construction of infrastructure projects, the Company has the opportunity to issue bonds with more favourable interest rates and credible bonds market.

7. Financial Services Authority (OJK) Regulation Number: 7/POJK.04/2017 on Registration Statement for the Purpose of Public Offering of Equity Securities, Debt Securities, and/or Sukuk

The regulation applies to Issuers that submit a Registration Statement for the Purpose of Public Offering of Equity Securities, Debt Securities, and/or Sukuk

The Company is obligated to comply with the regulation in the event of issuance of debt securities/bonds

8. Financial Services Authority (OJK) Regulation Number: 9/POJK.04/2017 on Format and Contents of Prospectus and Short-Form Prospectus for the Purpose of Public Offering of Debt Securities

Concerning the format and contents of Prospectus and Short-Form Prospectus

The Company should comply with the stipulations stated in the regulation in the preparation of Prospectus and Short-Form Prospectus for the Purpose of Public Offering of Debt Securities



LAWS AND REGULATIONS IN 2016, 2017 AND 2018 THAT AFFECT THE COMPANY

No. Regulation Content Impact

9. Financial Services Authority (OJK) Regulation Number: 10/POJK.04/2017 on Amendment to Financial Services Authority Regulation Number: 32/POJK.04/2014 on Plans and Implementation of General Meetings of Shareholders of Public Companies

The regulation governs plans and implementation of general meetings of shareholders

In line with the needs for the practice of good corporate governance in the Capital Market industry, the Company shall comply with this regulation concerning the implementation of General Meeting of Shareholders (GMS)

10. Financial Services Authority (OJK) Regulation Number: 51/POJK.03/2017 on Implementation of Sustainable Finance for Financial Services Institutions, Issuers and Public Companies

The regulation is a follow-up action on the Indonesia's Sustainable Finance Roadmap issued by the OJK

The Company, as an Issuer and a Public Company, is obligated to implement Sustainable Finance in its business activities by referring to this regulation

11. Financial Services Authority (OJK) Regulation Number: 7/POJK.04/2018 on Submission of Reports through Electronic Systems of Issuers or Public Companies

The regulation governs the submission of reports and information disclosure through electronic systems by Issuers or Public Companies

The Company shall comply with the regulation in the submission of reports and information disclosure

12. Regulation of the Minister of State-Owned Enterprises of the Republic of Indonesia No. Per-02/MBU/7/2017 on the Second Amendment to Regulation of State-Owned Enterprise Number Per-09/MBU/07/2015 on Partnership Program and Community Development Program State-Owned Enterprises

The addition of regulations on which small businesses can participate in the Partnership Program, the shape of the channeling of Partnership Program Funds and their distribution procedures. Whereas in the implementation of Partnership Program, SOEs can cooperate with other SOEs, Subsidiaries of SOEs and/or SOE Affiliated Companies called Distributors.

The Company is a SOE that is required to implement the Community Development Partnership Program, so that the implementation must follow the latest SOEs.

13. Regulation of the Minister of State-Owned Enterprises of the Republic of Indonesia No. PER-03/MBU/08/2017 on Guidelines for Cooperation of State-Owned Enterprises

This Ministerial Regulation stipulates the Cooperation and synergy between BUMN and/or inter-subsidiaries of state-owned and/or inter-affiliated companies of SOEs

In order to support synergy among SOEs, the Company is obliged to adhere to this SOE as a guideline when conducting Cooperation with SOEs and/or between subsidiaries of SOEs and/or between affiliated companies of SOEs.

14. Regulation of the Minister of State-Owned Enterprises of the Republic of Indonesia No. PER-04/MBU/08/2017 concerning Amendment to Regulation of the Minister of State-Owned Enterprise Number Per-03/MBU/08/2017 on Guidelines for Cooperation of State-Owned Enterprises

This ministerial regulation regulates the amendment of the Ministerial Regulation No. PER-03/MBU/08/2017, the amended one of which is the Partner selection Mechanism, including the direct appointment mechanism.

In order to support synergy among SOEs, the Company is obliged to adhere to this SOE as a guideline when conducting Cooperation with SOEs and/or between subsidiaries of SOEs and/or between affiliated companies of SOEs.

15. Bank Indonesia Regulation Number: 18/4/PBI/2016 on Amendment to Bank Indonesia Regulation Number 16/21/PBI/2014 on Implementation of Prudent Principle in the Management of Non-Bank Corporate Overseas Borrowings

SOEs shall comply with a minimum Hedging Ratio of 25% from:a. The negative difference between

Assets in Foreign Exchange and Liabilities in Foreign Exchange that will mature within 3 (three) months ahead since the end of the quarter

b. The negative difference between Assets in Foreign Exchange and Liabilities in Foreign Exchange that will mature within 3 (three) months and 6 (six) months ahead since the end of the quarter

The Company undertook a hedging transaction with regard to its capital expenditure commitments related to the construction of a new cement production plant



CHANGES IN ACCOUNTING STANDARDS AND DISCLOSURE In the current year, the Group has applied standards and a number of amendments/improvements to PSAK that are relevant to its operations and effective for accounting period beginning on or after January 1, 2018, including:

a. Standards and amendments/improvements to standards effective in the current year

In the current year, the Group has applied standards and a number of amendments/improvements to PSAK that are relevant to its operations and effective for accounting period beginning on or after January 1, 2018. • PSAK 2 (amendment), Statement of Cash

Flow about Disclosure Initiative The amendments require an entity to provide

disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. The amendments do not prescribe a specific format to disclose financing activities; however, an entity may fulfill the disclosure objective by providing a reconciliation between the opening and closing balances in the statement of financial position for liabilities arising from financing activities.

The Group’s liabilities arising from financing activities consist of bank loans (Note 20), finance lease obligations (Note 22), and bonds (Note 21). A reconciliation between the opening and closing balances of these items is provided in Note 47. Consistent with the transition provisions of the amendments, the Group has not disclosed comparative information for the prior period. Apart from the additional disclosure in Note 47, the application of these amendments has had no impact on the Group’s consolidated financial statements.

The application of the following amendments/improvements to PSAK have not resulted to material impact to disclosures or amounts recognized in the current and prior year consolidated financial statements but may affect future transactions.

• PSAK 13 (amendment), Transfers to Investment Property

• PSAK 15 (improvement), Investment in Associates and Joint Venture

• PSAK 46 (amendment), Recognition of Deferred Tax Assets for Unrealised Losess

• PSAK 53 (amendment), Classification and Measurement of Share-based Payments Transactions

• PSAK 67 (improvement), Disclosures of Interest in Other Entities

b. Standards, amendments/improvements and interpretations to standards issued not yet adopted

Amendments/improvements and interpretations to standards effective for periods beginning on or after January 1, 2019, with early application permitted are as follow:• PSAK 22 (improvement), Business

Combination• PSAK 24 (amendment), Plan Amendment,

Curtailment or Settlement• PSAK 26 (improvement), Borrowing Cost• PSAK 46 (improvement), Income Tax• PSAK 66 (improvement), Joint Arrangement• ISAK 33, Foreign Currency Transactions and

Advance Consideration• ISAK 34, Uncertainty Over Income Tax

Treatments

Standards and amendments to standards effective for periods beginning on or after January 1, 2020, with early application permitted are:• PSAK 15 (amendment), Investments in

Associates and Joint Ventures: Long Term Interest in Associate and Joint Ventures

• PSAK 62 (amendment), Insurance Contract: Applying PSAK 71: Financial Instruments with PSAK 62: Insurance Contracts

• PSAK 71, Financial Instruments• PSAK 71 (amendment), Financial Instruments:

Prepayment Features with Negative Compensation

• PSAK 72, Revenue from Contracts with Customers

• PSAK 73, Leases

Standard effective for periods beginning on or after January 1, 2021, with early application permitted as follow:• PSAK 112, Wakaf Accounting

As of the issuance date of the consolidated financial statements, the effects of adopting these standards, amendments and interpretation on the consolidated financial statements is not known nor reasonably estimable by management.



HUMAN RESOURCESDEVELOPMENT

GENERAL POLICY FOR MANAGING HUMAN RESOURCESFor the Company, human resources are “human capital” which is also a “company most important assets”. Assets referred to here include skills, knowledge and behavior. In order for this main asset to be able to provide optimal contributions to support the achievement of vision, mission and business development targets, the Company is fully committed to carrying out professional HR management, increasing its competence regularly, assessing its performance based on a fair valuation system and providing career paths and remuneration packages in accordance with performance and competence.

The Company is fully committed to providing training and competency enhancement packages of its human resources, aligned to their positions, interests and talents, so that the competencies of the entire ranks can develop optimally and be able to provide the best contribution to the Company’s business development and performance. The training program is always aligned with business conditions as well as business development strategies.

HR MANAGEMENT TARGETThe general target of HR management is the availability of Human Capital of superior competence capable of carrying out the operational functions of the company at every level of the organization at the best possible way, including the availability of talents that can replace corporate leadership at each level of the organization.

The specific target of HR management is the achievement of optimal contributions from every element of human resources, which is represented in quantitative quantities, such as cement production volume/person, sales value/person and profit/person, which is better than similar industry or peer industry players averages. Other specific targets are stated in the HR quality index which must be greater than the average quality of HR in the industry in the country as well as in the region.

A PARADIGM SHIFTChanging business conditions are increasingly challenging. The challenges, with characteristics such as over-capacity, low demand growth and selling price pressures, the change in the Company’s function to Strategic Holding, which oversees several Operating Companies and changes in the Company’s

The Company is fully committed to carrying out professional HR management, increasing its competence regularly, assessing its performance based on a fair valuation system and providing career paths and remuneration packages in accordance with their performance and competence.

““



business organization from cement producers to building material solution providers, force the Company’s every component to adapt. Likewise, the role of human resources and HR management paradigm must adapt, by introducing a new paradigm that is more in line with the ever-changing business conditions and targets.

One of the shifting paradigms is the mindset of each human resource element to be able to see and realize the importance of synergy between operating companies in developing the Company and assuring long-term business growth. For this reason, every employee in the Company must be able to work anywhere between Operating Companies, with high militancy and integrity. Likewise, the perspective on business processes must change, from concentrating on the cement production process, to focus in understanding and serving consumer demand to meet the needs of building materials (including cement and derivatives of cement products) in carrying out construction quickly, precisely and economical.

The Human Capital management strategy has also changed, from the emphasis on success in the running of the supporting function, turning into a strategic business function for the Company. This signifies the need of HC management strategies to align with the company’s business strategy. One example that has been carried out is a change in the function of Corporate University (Corpu), which changed its learning center function, from merely to close the gap in the employee competencies now, to turning into a business solution provider in the future.

To ensure a smooth the paradigm shift, the Company, through the Human Capital Directorate, has identified and scheduled changes in the 3 strategic areas of HR management, namely:1. Change the HC Mindset in carrying out business

processes2. Reviewing and Improving the Human Capital

Master Plan, through improving the HC Management System

3. Improve HC Competency Development Pattern

ACT Day, Advocating Change Together




In connection with the strategic initiative of the HR & Legal Directorate to always create Agile Business Processes and Organizations (Solid and Responsive), Strong and Strong in facing the pressure of new players/competitors, Adaptive to shifting patterns of customer needs, and effective and efficient, a Business Process Team Re-Engineering and Organizational Alignment (BPR Team) for the SMI Group.

To achieve the desired business process, a solid team that has the same objectives is needed, so that an activity is needed to improve the understanding of all members of the BPR Team, improve the cohesiveness and cooperation.

The activities that have been carried out include the implementation of Team Building activities on September 13, 2018 which were then continued with Forum Group Discussion activities on September 14, 2018 in Gresik. The participants of the activity were all members of the BPR team with 58 participants. Team Building activities use the outbound method while the Forum Group Discussion activities discuss more about the analysis of opportunities and challenges of the Business Process Re-Engineering and Organizational Alignment projects.

The goals to be addressed from these strategic changes are: 1. Human Capital Management must be able to

balance the business direction going forward.2. Human Capital Management has changed from

the only business derivative/consequences, to become a strategic business partner.

3. Human Capital Management changes from only personnel functions, discipline enforcement and sanctions/rewards, to become the setter of values, leadership, and Corporate culture.

Overall there are 8 Basic Change Management in the HR area, as illustrated in the following chart.

Corporate Long Term Plan

Corporate Performance

HC Strategic Planning &

Organizational Development

Employee Relation & Retirement

Remuneration & Benefits

PerformanceManagement

System

Talent, Succession & Career

Development

Learning

Development

Recruitment, Selection, Placement

SelfMotivated

People

LeadershipCul

ture

Engagement

Inno

vate Collaboration C

are

STRATEGIC INITIATIVES IN PRACTICEThe Company has established a number of strategic initiatives to improve the Human Capital (HC) management system. The initiative is divided into four groups: Standardization of Human Capital Systems, Operational Excellence of Human Capital, People Investment and Crystallization of Corporate Culture. The whole set of paradigm changes that are addressed, strategies, initiatives and objectives of the HC management of the Company are illustrated in the following chart.

Human Capital System Standardization

• Total Remuneration Transformation

• Performance Management System

• Integrated Talent Management System (EXIMIUS)

• Specialist Career Path• Organizational

Transformation

People Investment

• Development Program• Talent

Development• Functional

Development• Leadership

Development• Certification

Professional Agency• Knowledge

Management

Human Capital Operational

• Simplification of Business Trips

• Re-blueprint of SAP HCM and HRIS

Human Capital Management System (HC)

Corporate Culture Crystalization

• Leader Cafe’• SMI D’Forum



BUSINESS PROCESS REENGINEERINGIn order to increase productivity and help companies in the competition for the current cement industry, PT Semen Indonesia (Persero) Tbk took the initiative to conduct a process reengineering business. The target of this activity is the formation of effective and efficient modes of operation and organizational structures so that business processes can run faster and adapt according to the cement industry trends, the company’s long-term plans, and operating model design principles.

Some advantages with the implementation of BPR are as follows:• Segregation of strategic roles and operational

roles occurs more clearly• Process flow is getting younger, where

operations are no longer a process with a strategic role

• Use of resources is more efficient, because administrative matters can be centralized & standardized

• Productivity of manpower in several strategic functions will increase

• Opportunity to capitalize Economies of Scale in functions that are put together

Clear segregation between strategic vs. operational roles in HoldCo and OpCo,

as well as in each Directorate and units below.

By adopting units with a centralized model and by minimizing functions on OpCo,

then the duplication of work between HoldCo and OpCo can be avoided, and the organization

can run more efficiently.

Adding new functions and strengthening existing functions in HoldCo, in order

for the Company to run optimally.

Clearer span of control and competency, in order to have better distribution

of functions and capabilities.

STANDARDIZATION OF HUMAN CAPITAL SYSTEMS The Company has made adjustments to a number of fundamental issues related to the standardization of management systems and human resource development. The key highlight of the system standardization are:1. Reformulation of Compensation and Benefits2. Performance Management System3. Talent Management System.4. Career Path System

1. Reformulation of Compensation & Benefit The Company further emphasizes the implementation of the policy of providing employee remuneration

by using a competency-based approach and Employee performance, based on 3 basic principles, namely:1. Pay for Person The Company strives to provide remuneration packages in accordance with individual employee

competencies.2. Pay for Position The Company strives to provide a remuneration package in accordance with the position of employees.

This is reflected in the various values of grading for each employee position.3. Pay for Performance The Company strives to provide a remuneration package in accordance with employee performance in

line with the established KPI.



The Company provides remuneration in the form of basic salary, fixed allowances (official allowances) and variable benefits (attendance, meals, assignments, supervision, overtime, location), assistance & gift (marriage, moving costs, bereavement, house rent, legal assistance) and incentives based on or directly related to the company’s performance for employees in the form of 3-month performance incentives and annual production services.

The Company also provides health services for employees and families of the insured in order to ensure smooth operations, especially from the aspect of employee physical fitness. In addition, the Company also seeks sports activities to encourage the creation of a culture of healthy living, through the provision of sports facilities, sports competitions and facilitates employee to participate in certain sports clubs.

As part of the effort to reformulate the intended compensation and benefit package, the Company has compiled changes to the formulation that will be applied to the assigned employees at the Operating Company. The fundamental change made is to associate the performance of the Operating Company with the Compensation package and the benefits that the employee will receive.

2. Performance Management System: The Company sets the standardization of

employee evaluations based on KPI criteria and Competency criteria. Steps that have been taken:• Build SAP by doing a blue print redesign of the

HC module, including: Personnel development, succession planning.

• Implement carrier paths so that employees have a clear picture of their development.

• The company is developing an assessment center to measure competency gaps, so that employees are ready to attend the required training programs.

• Implementation of performance based rewards that condition employees to have individual KPIs.

Through this method, it is expected that employee behavior will be formed in harmony with the company’s KPI. The performance assessment period is carried out for a full year divided into four assessment periods.

a. Talent Management System The year 2018 becomes the year for the

establishment of comprehensive Talent Management System in the Company, which consists of five stages of the Talent Management process as follows:

TalentAcquisition

TalentRetention

TalentMobility

TalentClassification

TalentDevelopment

TalentCommittee

As part of the implementation of the Talent Management System, the Company has created an IT-based Talent Management System dashboard application called Eximius (Latin, Superior), in addition the Company has also completed the Leadership Manual.

Box 6

Box 7

Box 9

Box 2

Box 4

Box 8

Box 1

Box 3

Box 6

TopTalent

Unfit Sleeping Tiger

Solid

Co

ntri

but

or

Per

form

ance

Prom

otable

Capacity



The company will then carry out a program to strengthen these talents, so that their competence will continue to grow so that they can act as a “Strategic Enabler”, which is able to support the company’s growth with its ability to create a “Business Model Innovation”.

An assessment of the competencies of the talent will also be carried out in echelon III and IV ranks. The Company has prepared competency improvement programs that are appropriate for the intended echelon III and IV ranks.

b. Career Path System For the development of Employees at Semen

Indonesia Group, the Company has also prepared a mature career path system for all employees in the Company, one of which is by assigning them to Semen Indonesia subsidiaries and affiliates. It is expected that employees can improve their competence, especially leadership.

Some adjusted aspects in determining the career path include: job grading criteria, job analysis, adaptability, team performance assessment, individual performance appraisal, and innovative ability as a problem solution provider.

INVESTMENT DEVELOPMENT OF HUMAN RESOURCES COMPETENCY The investment in the ongoing competency development covers various aspects, ranging from the tools used, the programs prepared and the training materials provided.

Currently there are five aspects related to this HR investment, namely: Leader as Teacher & Retired Faculty (through CDL - Corpu), Predicting future capability (Through Training Programs), Professional Certification Institutions, Knowledge Management Strategy & Innovation, and Assessment Center & Counseling.

1. Center of Dynamic Learning Semen Indonesia Corporate University

The Company has transformed the Learning Center into Corporate University under the name Center of Dynamic Learning Semen Indonesia Corporate University (CDL-SI Corpu). Since it was inaugurated on August 28, 2014, CDL-SI Corpu has been designed to be a learning solution provider that is able to provide solutions to business issues faced by the Company.

The Corporate Transformation into Strategic Holding, which focuses more on business development and regional expansion, requires institutions such as the CDL-SI Corpu to be more proactive in addressing aforementioned business issues. So that the Center of Dynamic Learning is now also responsible for providing business solutions for the development of the competencies of the Company’s employees, Subsidiaries in the Group and Partner Companies included in the Company’s business chain that proactively respond to current and future competency needs.

Therefore, as part of the Semen Indonesia Center of the CHAMPS (SICC), which is the Company’s Center of Excellence, the Center of Dynamic Learning is responsible for providing business solutions through the development of competency of the Company, its subsidiaries in the Group and its Partners in the Company’s business chain, proactively responding to the needs of current and future competencies, by changing its learning orientation.

To confirm such change, Learning Council was assembled, inviting the Board of Directors of the Company and its Subsidiaries, and has established the focus and policies as well as the work program of CDL - SI Corpu in 2017 - 2018, as stated in the following charter.

In organizing the program, the learning programs are designed based on learning focus, which is grouped into 8 academies, namely: 1) Production & Research Academy; 2) Marketing & Distribution Academy; 3) Engineering & Project Academy; 4) Business Development Academy; 5) Finance & Operational Academy;6) Leadership Academy; 7) Corporate Culture school; and 8) Customer & Stakeholder Center.

2. Training (Learning & Development) Program Furthermore, the Company made material adjustments in the preparation of the Company’s learning plan based on the Learning Need Diagnosis (LND) approach. This approach is carried out to answer the problems of learning needs that originate from employee competency gaps in carrying out their current work and employee development in the future, as well as those from performance issues like failure in achieving work unit targets, and business issues faced by the Company.



As part of the implementation of the HR management paradigm change, the Company implemented changes to the policy learning method of training materials. Initially, the Company was limited to carrying out learning using the In-class method, currently the Company applies the Blended Learning method. This method is also called Method 70:20:10, where number 10 shows a 10% portion of learning time in class with the guidance of the Steering Committee. Number 20 shows a portion of 20% of the time needed to conduct social interaction, where the trainees carry out activities outside the classroom in the form of meetings, form networks, share experiences, including coaching and mentoring activities.

While number 70, shows the allocation of 70% of the time used by participants in carrying out daily activities, especially in the office environment, in applying all the knowledge gained in the training class.

The Supervisory and Control Lines of GRC

70

20

10

EXPERIENCE EXPERIENTIAL LEARNINGNew and Challenging Experiences Helping Workes Solve Problems Reflective Practice

EXPOSURE SOCIAL LEARNINGCommunities, Networks and Sharing Coaching and Mentoring Feedback

EDUCATIONFORMAL LEARNINGStructured Courses and Programs

Work

Learn

In addition, the learning programs are grouped into three major groups, namely: Personal Mastery, Leadership Mastery, and Business Mastery.

i. Personal Mastery Personal Mastery is a learning group with themes related to individual competency development

programs to strengthen the character and corporate culture. Programs such as CHAMPS Strengthening, strengthening integrity and national insight are the examples of programs within this group.

Held together with the National Resilience Institute of The Republic of Indonesia (Lemhannas RI), the strengthening of national insight program is conducted for the Board of Directors and Echelon 1 Officials. As part of the effort to achieve the paradigm shift, the Company is increasing the content of training materials on the character and corporate culture.



ii. Leadership Mastery Leadership Mastery is a learning group associated with leadership development at all levels. The

Company believes that the working climate is determined by the leader of a work unit, therefore leadership development becomes one of the focus of the development program.

Programs such as Global leadership development program for Echelon 1, Transformational Leadership Development Program for Echelon 2, Operational Leadership Development Program for Echelon 3 and Emerging Leadership Development Program for Echelon 4 are continuously implemented and enhanced in order to ensure the availability of qualified leaders at the Company.

Semen Indonesia’s leadership development program is divided into:Soft : Focused on improving soft skills, so that every employee has an API characterBasic : Focused on basic managerial and communication skills (including presentations)Hard : Focused on technical capabilities that are tailored to the needs of the company

This development program is also adapted to each echelon development program, both for Regular and Talent.

Development Program

Echelon 1

Echelon 2

Echelon 3

Echelon 4

Echelon 5

Agile

Persistent

Innovative

GLDP

TLDP

OLDP

ELDP

ICDP

TTDP

STDP

MTDP

ETDP

BTDP

ProblemSolving&

DecisionMaking

ImpactfulCommunication

Negotiation

HowtoLeadMeeting

Leader as Coach

CustomerService&Commercial

Understanding SMIBusiness

Line&Products

CMO

CFO

Logistic

SOFT

Top TalentSleeping Tiger

HARDBASIC REGULAR TALENT

Rotation(Promotion)

CoachingMentoringCounseling

JobAssignmentJobShadowing

Rotationtodifferentfunction

CompetenceDevelopmentProgram

PromotableSolid Contributor

Global Leadership Program in Australia



iii. Business Mastery Business mastery is a group of competency

development programs, primarily technical competency functions in the Company, ranging from production, R&D, engineering, project, marketing, distribution, logistics, finance, HC, business development and other operational functions. Development in the business mastery is complemented by an assessment and certification program to ensure that the employee is competent in their work unit.

3. Professional Certification Institution Since the introduction of the ASEAN Economic

Community in 2015, the Company has established a Professional Certification Institute (LSP) in cooperation with the National Professional Certification Board (BNSP), which was inaugurated on August 30, 2015. At the same time, 5 schemes for LSP development in one year were established, by developing certification schemes into 51 types of certification, to improve the competitiveness of employees in the regional arena.

Professional Certification Institution as the center of the implementation of competency certification in the Company and Subsidiaries has the following tasks: i) develop certification scheme, ii) prepare assessment and competency test, iii) provide assessors, iv) perform certification, v) conducting certification maintenance surveillance, vi) establishing requirements, verifying and establishing a Competency Test Site (TUK), vii) maintaining the performance of assessors and TUKs, and viii) developing certification services.

The socialization of the importance of the Company’s readiness to win the competition in the era of the ASEAN Economic Community is consistently implemented in a sustainable manner to encourage employees to continue to develop themselves and obtain certification according to their area of expertise.

LSP SMI Group continues to record the increase in the number of assessors, competency test participants and the number of certification schemes, as shown in the following table.

Number of assessors, competency test participants and Certification schemes Table

Description 2018 2017

Competency Assessor 113 89

Competency Test Participants 109 103

Certification Scheme 81 51

4. Knowledge Management The Company believes that Knowledge

Management is a pillar for the creation of learning organization. Therefore Knowledge Management is defined as one of the areas of SICC, under the name of Center of Knowledge Management (CKM). The CKM’s is established to support the Company in managing the knowledge and use it to face intense competition in the future.

Organization’s knowledge is managed under 9

competencies, in which, the first six competencies is related to knowledge sharing, while the remaining 3 competencies are the provision of supporting infrastructure, structured policies and commitment of the leaders in knowledge management. The 9 competencies are:1. Expert Locator2. Communities of Interest3. Peer Assist4. Shared Learning 5. Project Retrospectives6. Community of Practice7. Technology8. Change Management9. Strategy

The Company has designed and implemented knowledge management programs, the programs are as follows:

• Leader Cafe Leader Cafe is consistently and sustainably

conducted as a means of sharing knowledge and experience from senior leaders to other leaders, usually by the Board of Directors, Commissioners, or external figures qualified in certain competency aspect. This concept is an implementation of Shared Learning activities in Large Scale, involving future leaders candidates, namely the work unit leaders, as participants. With the concept of such a cafe, participants are expected to enjoy the process of sharing knowledge provided by the resource person.

• SMI D’Forum SMI D’Forum is an experience sharing, which

is a sharing experience and share activity, which is an experience sharing and discussion that presents external speakers and internal expertise as resource persons.

Discussions on a hot topic in a particular field, relevant to the Company’s business strategy in accordance with the critical knowledge required, by involving experts or teams from across departments or Company.



Throughout 2018, there were 168 learn and share activities which presents various strategic topics such as Information Technology for Industry 4.0, Total Productive Maintenance (TPM), Building an Enduring Enterprises, Innovation Management, Management System Maturity Levels, Building Material Management, Property Management, Governance Risk and Compliance, etc.

It is expected that this activity can continue in the following years and bring a significant impact to the Company.

The measurement of the success of the implementation of the Semen Indonesia Group knowledge management is measured in the form of a Key Performance Indicator (KPI) as Knowledge Management Point (KM Point). This KM Point achievement is a Corporate KPI that is deployed to the work unit level. The KM Point journey at the Semen Indonesia Group consists of the target participation and target KM Points, as follows:

Company2016 2017 2018

Participants KM Point Participants KM Point Participants KM Point

PT Semen Indonesia 75% 1,080 85% 1,224 95% 1,368

PT Semen Gresik 75% 1,080 85% 1,224 95% 1,368

PT Semen Padang 50% 720 75% 1,080 85% 1,224

PT Semen Tonasa 50% 720 75% 1,080 85% 1,224

Non Cement Subsidiaries - - - - 25% 360

Semen Indonesia Group Target KM Point Roadmap

So that in 2019, the target of the participation of Semen Indonesia employees in KM Point is 100%. The achievement of the Company’s KM KPI Points in 2018 is 1742 or 127% of the target.

Recapitulation of Number of Participants in Training and Investment Cost of Competence DevelopmentThe realization of the Semen Indonesia Group learning hours and the number of training participants by type, are as follows.

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

8,283

13,284

12,599

8,925

30,123

18,105

9,535

9,964

8,816

4,384

18,988

14,051

935

664

8,354

3,832

2,199

935

592

880

3,072

2,632

2,272

1.253

965

3,668

2,038

4,894

2,403

1,560

1,768

1,825

452

-

5,317

3,803

1,760

96

88

24

1,990

456

-

-

24

16

-

1,962

Realization of Learning HoursSemen Indonesia Group

Others Leadership Mastery

Functional (Business Mastery)

Core (Personal Mastery)

157,057

28,6986,416

27,620

Core (Personal Mastery)

Functional (Business Mastery)

Leadership Mastery

Others

Number of participants Semen Indonesia Group



HUMAN RESOURCES SUPPORTING FACILITIES

Electronic Learning (E-Learning)The Company has completed an electronic learning development project (e-learning) as one of the online-based learning portals. E-learning is a breakthrough in delivery method that can cut the cost of learning according to the function of the features in it, among others:• Learners has a freedom of access to online

learning materials, disregard of time and place. The online learning materials provided are varied, from e-Books, online article links, as well as materials designed specifically for specific learning.

• Learners can also do virtual classroom learning simultaneously using video conference with facilitators from various operational locations of the Company, as well as online discussion forums, both through video conferencing and chat rooms.

Academy1. Production & Research Academy2. Marketing & Distribution Academy3. Engineering & Project Academy4. Business Development Academy 5. Finance & Operational Academy6. Leadership Academy7. Corporate Culture School8. Customer & Stakeholder Center

Improving the Quality of Organizing Human Resource OperationsThe HC Directorate of the Company has several important aspects that are sought to improve, namely the simplification of SPPD (Business Travel Warrant) & Service Desk, and Blueprint redesign of SAP HCM as the main aspects that must be corrected.

1. Simplification of SPPD & Service Desk In order to strengthen internal communication,

service desk was provided to help employees to access information which related to management and development of HC. In addition, HC also developed SPPD Simplification program to facilitate employees in conducting SPPD process. SPPD process was cut shorter for a faster processing.

2. Blueprint Redesign of SAP HCM and Human Resource Information System Refreshment

In order to support the operationalization of human resources management, the Company integrated the HC management with SAP based information technology. There are ten (10) Human Resource Information Systems (HRIS) that have been implemented in the Company, namely: Organization Management, Personnel Administration, Payroll, Time Management, Travel Management, People Development, Learning Solution, Performance Management System, Appraisal Management, Compensation Management.

Human Resource Information System is continuously reviewed, with the objective of continuously improving the implemented modules, as well as to implement new modules needed to improve employee management standards.

Changes in business conditions and orientation, made the Company develop a new business model through the development of downstream cement business units and cement related businesses, this has an impact on the necessity to integrate all the systems available on the existing Operating Companies. The Company also conducts SAP HCM Blueprint redesign especially in the Talent Management System module.

STRENGTHENING COMPANY VALUES There are several ways that the Company has taken to ensure the strengthening of the CHAMPS values to employees. The Company has introduced the introduction of the spirit of SMI (synergy, militancy, integrity) which is translated into CHAMPS as the latest corporate values. The Company has also set 7 main behaviors of Corporate Values, with 3 main ones, namely Agile, Persistent and Innovative (API) as a measure of the success of the value strengthening program.



People: Behaviour

• Leader as role model• Coaching system

• Competency design• ePMS• Training Program• Reward: IK, Merit, Best Employee

• Internal Communications: Socialization• External Communications

• Banner, brochure, pocket book, pin, uniform, building• Rits, ritual, ceremonial• Culture Guard

System

Communication

Infrastructure

Strengthen the CHAMPS Culture Program

The Company has completed 2 major process stages, namely socialization and internalisation. There are several ways the Company continues to strengthen the CHAMPS values to employees.

Corporate Cultural management in the Company consists of 3 elements, namely:• Primary: Leader as Role Model. This Primary

Program will continue to be developed into various activities, such as: Monthly CEO talk, Leadership video blog, Management e-Message, Town hall meeting, Casual lunch/dinner with Leaders and Leadership spotlight.

• Secondary: the formation of CHAMPS Agent which also acts as a change agent, Champs Gymnastics, Champs Choir, SMI Spirit Hand Sign, etc.

Currently, the secondary program is still under development.

• Environment: Creation of cultural items, such as banners, CHAMPS Culture e-learning, etc.

As a commitment to build a positive corporate value, the Company has made a decree on Corporate Value. In addition, the Company also measures the implementation of corporate values, using the Appreciative Inquiry method to get an idea of how far the organization has implemented its value, with a value of 4.1 (out of 5 scale).

Following up on the realization of various programs for the dissemination and internalization of Corporate Values, in 2018, the Company determined various activities and activities relevant to the internalization

of the 7 main behaviors of Corporate Values. These activities and activities are: 1. Update CHAMPS Agents within Semen Indonesia

Group. The role and function of CHAMPS agent is very crucial in the implementation of corporate value, in addition to being an influencer, it is also a change agent for work programs carried out by the company.

2. Dissemination of 3 SMI Values and 7 Main Behaviors to CHAMPS Agent Semen Indonesia Group. This is important so that the CHAMPS Agent understands the history and process of re-inventing CHAMPS value in 2018.

3. CHAMPS Values Month which is used as one of the socialization media of 3 SMI Values and 7 Main Behaviors for all Semen Indonesia Group Individuals. Activities carried out include seminars related to corporate culture by presenting various speakers/experts, Fun Competition making Vlog 3 SMI Values and 7 Main Behaviors, Fun Competition Covering CHAMPS Songs, SMI hand-sign socialization in company activities, etc.

EMPLOYEES TURNOVERThe composition of the Company’s employees in 2018 consisted of 4,976 permanent employees, 51 non-permanent employees, and no seasonal or part-time employees. The employee who ends his working period is 161 people. In terms of turn over rate, it is 3.23% lower than in 2017 which reached 4.98%.

To anticipate the high portion of employees approaching retirement age, the Company accelerated the regeneration of new employees. Thus,



there will be no gap in the composition of employees, so that the business continuity of the Company can be well preserved.

Graph of Percentage of Employees Ending Work Relationships

Regular retirement

Early retirement

Resignation

Decease

87%

5%3%5%

INDUSTRIAL RELATIONSWith the newly established PT Semen Gresik, the Company encouraged the formation of the Semen Gresik Employees Union currently comprises of 262 Semen Gresik employees. The listing of the Semen Gresik Employees Union at the Tuban Manpower and Social Office took place on July 18, 2017.

Meanwhile, as part of the company’s commitment to fostering a dignified working relationship with all employees, the Company has renewed the Collective Labor Agreement document as a result of discussions with the Semen Indonesia Trade Union. The Company ensures the rights of all SIG employees are guaranteed in the agreement.

HUMAN RESOURCES DEMOGRAPHYThe following is a demographic map of Semen Indonesia employees.

Employee based on Status

Status 2018(person)

2017 (person)

2016 (person)

2015(person)

Permanent Employee 5,403 5,465 5,145 5,306

Internship Program 0 1 10 70

Contract Employee 45 87 89 121

Total 5,448 5,553 5,244 5,497

Employee based on Position Level

Position Level 2018(person)

2017 (person)

2016 (person)

2015(person)

Echelon 1 116 164 151 150

Echelon 2 323 359 315 306

Echelon 3 685 776 674 627

Echelon 4 1,835 2,037 1,825 1,945

Echelon 5 2,489 2,217 2,279 2,469

Total 5,448 5,553 5,244 5,497



Employee based on Working Period

Working Period 2018(person)

2017 (person)

2016 (person)

2015(person)

< 5 years 445 1,136 1,193 1,640

5 – 9 years 1,833 1,043 1,160 747

10 – 14 years 643 751 31 567

15 – 19 years 624 480 1,163 854

20 – 24 years 1,329 1,571 1,015 1,002

25 – 29 years 474 375 428 277

> 30 years 100 197 254 410

Total 5,448 5,553 5,244 5,497

Employee based on Age

Age 2018(person)

2017 (person)

2016 (person)

2015(person)

≤ 25 years old 175 190 297 614

26-30 years old 1,145 1,092 1,041 981

31-35 years old 979 763 701 540

36-40 years old 541 580 598 799

41-45 years old 1,221 1,377 1,170 1,165

46-50 years old 908 941 747 623

>50 years old 479 610 690 775

Total 5,448 5,553 5,244 5,497

Employee based on Gender

Gender 2018(person)

2017 (person)

2016 (person)

2015(person)

Male 4,910 5,111 4,812 5,048

Female 538 442 432 449

Total 5,448 5,553 5,244 5,497

Employee based on Education

Education 2018(person)

2017 (person)

2016 (person)

2015(person)

S3 9 8 5 4

S2 172 179 171 170

S1 1,752 1,704 1,443 1,429

Diploma-3 633 614 699 719

Diploma-1 3 3 3 3

Up to high school equivalent 2,879 3,045 2,923 3,172

Total 5,448 5,553 5,244 5,497



2019 PROGRAM PLANIn order to anticipate the ever-challenging business conditions and as part of the realization of corporate actions at the end of 2018, namely the acquisition of PT Holcim Indonesia Tbk, the Company has prepared a variety of strategic HR management programs. The strategic HR management program is part of the Transformation 3.0 Strategic Initiative, a continuation of the Company’s previous transformation initiatives, namely Change into a Holding Company (Transformation 1.0) and Changes in Business Structure (Transformation 2.0).

In accordance with the transformation framework, there are 5 Strategic Initiative Programs prepared in the management of Human Capital, namely:

1. Capacity Planning Centralizing business processes - is one of the

leading efforts through the centralization of several work functions among entities within a company to improve the effectiveness of business processes. The centralization of work functions that have been carried out during 2018 is a function of sales, marketing, and supply chain management. Centralizing some of these functions, during 2018 proves that it is able to effectively harmonize activities in these functions in both the Holding Company and throughout the Subsidiaries.

2. Development of SMIG HC• Talent management The talent management function aims to

ensure the implementation of effective and efficient talent management in order to meet the needs of HR in the Company and its subsidiaries. Management of talent management through an internal system called EXIMIUS. EXIMIUS is an employee track record database system that can be updated independently by each employee, including an employee performance assessment database. EXIMIUS helps management to identify talented employees, understands employee performance in general, and the overall employee development areas.

• Succession planning Ensuring the availability of successors for

each position, especially for key positions is crucial because the delay in filling personnel in a position can disrupt the business activities of the company. For this reason, companies use technology to manage and determine successors for certain positions. In addition to the EXIMIUS system - to find out the track record and experience of all employees, management also has a Manpower Planning Dashboard (MPP Dashboard). MPP Dashboard helps companies to monitor filling up the number of employees in a work function up to date.

• Career paths both managerial and expertise careers

The design of employee career paths includes managerial career paths and expertise career paths. Managerial career paths are intended for employees who want to sharpen their leadership abilities, while expertise career paths are intended for employees who want to intensify on certain knowledge/expertise in the Company.

• Internal and external certification The ability and expertise possessed by

each employee must be appreciated and recognized for its level of mastery. Recognition of the capabilities and expertise possessed by employees is carried out by involving employees in various certification programs, both certification carried out internally and carried out by external certification consultants/bureaus.



3. HC based on performance (performance management system)

The Employee Performance Management System (EPMS) has been compiled based on the Key Performance Indicator set at the beginning of the year. In addition, cascading KPI has also been carried out from corporate level to individual level.

4. Strengthening of winning corporate culture through internalization of 7 main behaviors

Various human capital programs until employee assessment have been compiled based on 7 main behaviors, which include:• SYNERGI

- Open minded and acting first in the interest of Semen Indonesia Group

- Positive and responsible cooperation to maximally achieve Company objective

• MILITANCE- Diligent and flexible for the best result- Always implement new and better work

procedure- Provide best services and value added to

internal and external customers

• INTEGRITY- Act according to agreement and promises- Honest, sincere and responsible

Human capital programs as an effort to internalize 7 key behaviors include: Collaboration - Intergenerational collaboration activities, Focus Group Discussion to find out the application of 7 key behaviors in each subsidiary and cultural survey to measure understanding and application of 7 key behaviors in each employee.

5. IT-based HC Operational excellence The Company utilizes and continues to optimize

the use of technology in human resource management, starting from online recruitment, the application of the Human Resource Information System (HRIS) for each employee, EXIMIUS, and various other online system features that facilitate employees in activities related to personnel administration and self-development.



CORPORATE

GOVERNANCE



176 GCG Commitment Statement of Semen Indonesia

177 The GCG Implementation Basics

178 Objectives of GCG Implementation

178 GCG Implementation Roadmap

178 GCG Implementation Assessment

180 Relations and Governance Structure

181 General Meeting of Shareholders (GMS)

194 Board of Commissioners

200 The Board of Directors

205 Remuneration Policy for Board ofCommissioners and Directors

208 Meeting of Board of Commissioners, Board of Directors, and Joint Meetings

215 Affiliated Relationship between the Member of the Board of Directors, Board of Commissioners, and Majority Shareholders and/or Controller

217 Committees Under the Board of Commissioners

229 The Board of Commissioners Secretary

231 Corporate Secretary

238 Internal Audit Unit

246 Independent Public Accountant

249 Risk Management

256 Code of Conduct

258 Whistle Blowing System



GCG COMMITMENT STATEMENT OF SEMEN INDONESIAThe Company has a commitment to sound and ethical business practices in conducting business activities, as well as consistently implementing Good Corporate Governance (GCG) based on high standards of business ethics. GCG is a mechanism that regulates the management of a company to meet the expectations of stakeholders. Adopting the principles of good corporate governance is vitally important to realize the Company's vision and mission and as a set of standards aimed at supporting efforts to maintain business continuity.

The Company is assured that GCG implementation encourages the creation of a healthy competition and conducive business climate. In addition, the

implementation of GCG is also an important part in supporting sustainable economic growth and stability. This understanding underlies the Company's commitment to always uphold the implementation of GCG in every level of the organization and its operational activities.

With high commitment and consistent implementation of governance, the Company can set itself free from Corruption, Collusion and Nepotism (KKN) and improve the supervisory function in managing the Company.

Management's commitment to compliance with GCG is elaborated in a number of policies and related provisions, including:• All employees are required to be committed to

implementing all rules and policies as part of efforts to implement best practices of corporate governance. Such commitment is displayed by

CORPORATE GOVERNANCEPOLICY

In displaying its commitment to improve the quality of implementation of best practices of Corporate Governance (GCG) principles, the Company has reviewed and revamped the structure of its organization, enhanced the enterprise-based risk management, and reassessed the Company’s internal using various policies while observing the latest rules and regulation from the Ministry of SOEs and Financial Services Authority.

As a result, the Company recorded a score of 93.4 in the assessment of GCG implementation, as well as won a number of accolades from a number of credible institutions for the improvement on its GCG implementation.

“

“



the Top Management by always basing all key decisions and policies on relevant rules and laws.

• Top Management shall sign of the Ethics and Compliance Statement, Conflict of Interest Statement and Share Ownership Statement to comply with the Company’s Code of Conduct. The Ethics and Compliance Statement shall be signed by all levels of the Company up to the executives.

• Determine the KPI on GCG implementation.• Determination of duties and responsibilities

of each function related to the planning, implementation, and management of the company’s internal controls;

• Management of the Company’s internal controls, target achievement, preparing policies on operating procedures and controlling disclosure, documentation, reporting, and providing written statements regarding the effectiveness of ICOFR and the results of periodic self-assessments.

LEGAL BASIS FOR GCG IMPLEMENTATIONIn implementing GCG, the Company refers to a number of rules and regulation, including:• Minister of SOE Regulation No. PER-01/

MBU/2011 concerning the Implementation of Good Corporate Governance in SOE, later amended by the State Minister of SOE Regulation Number PER-09/MBU/2012 concerning Amendments to the Regulation of the Minister of State Owned Enterprises Number PER-01/MBU/2011 concerning the Implementation of Good Corporate Governance in State-Owned Enterprises.

• SOE Ministry Secretary Decree No. SK-16/ S.MBU/2012 concerning Indicators/Parameters for the Implementation of Good Corporate Governance in SOE.

• Financial Services Authority Regulation No. 21/POJK.04/2015 concerning the Guidelines for Governance of Public Companies.

• Financial Services Authority Circular No. 32/SEOJK.04/2015 concerning Public Company Governance Guidelines.




OBJECTIVE OF GCG IMPLEMENTATIONThe Company adopts the principles of good governance aimed at ensuring optimal results, including:• Increasing the Company’s performance through

the creation of better decision-making processes, Improving the Company’s operational efficiency and services to stakeholders.

• Increasing corporate values through improving financial performance and minimizing investment risk that contain conflicts of interest.

• Increasing assurance for investors.• Achieving stakeholder satisfaction by increasing

corporate values and the Company’s dividends.• Directing and controlling the Company’s Organ

relationships

• Increasing the accountability of the management of the Company to Shareholders while taking into account the interests of the stakeholders.

• Encourage and support business development, effective management of resources and risk so as to increase company value.

ROAD MAP OF GCGThe purpose and initial target of preparing the GCG road map is to encourage the Management's commitment in implementing and improving GCG consistently. The Company has established the stages of GCG implementation at the Company with the aim of becoming an ethical and responsible company, turning the practice of good governance into a culture in the management of the Company, as follows.

Infrastruktur & Soft Structure

• Company’s Organ• Board of Commissioners’

supporting Organ• GCG Guideline• Company’s Code of Conduct• Manual Board Charter• IT Governance• Whistle Blowing Policy• System & Procedure

Continuous Improvement

• Implementation• Review• Assessment• Audit

An Ethical and Responsible Company

Target

• GCG as culture in managing the Company

ASSESSMENT OF GCG IMPLEMENTATIONThe Company measures the achievements in implementing GCG in the form of:a. Assessment, aimed at periodically measuring the implementation of GCG in BUMN.b. Review, evaluate the follow-up of the implementation of GCG in BUMN that is carried out after the

assessment, which includes evaluation of the results of the assessment and follow-up on recommendations for improvement.

The assessment on the implementation of GCG in 2018 is carried out by PT Sinergi Daya Prima, an independent assessor, with reference:• Minister of SOE Regulation Number PER-01/MBU/2011 concerning Implementation of Good Corporate

Governance in State-Owned Enterprises.• Applicable provisions and norms, as well as SOE Articles of Association.



ASSESSMENT RESULTS

GCG Assessment Based on BUMN ScorecardSince 2009, the Company has conducted an assessment of the implementation of GCG practices with the aim of measuring the depth of GCG practice implementation, as well as gaining feedback for future improvements. The assessment was made using the Company Corporate Governance Scorecard parameter, issued by the Ministry of State-Owned Enterprises, based on the Decree of the Secretary of the Ministry of BUMN No. SK-16/S.MBU/2012 concerning Parameter Indicators of Evaluation and Evaluation of the Implementation of Good Corporate Governance in Business Entities State-Owned, which was published on June 6, 2012.

In 2015, the Company conducted a self assessment, for the first time, on the implementation of GCG

by forming an Internal Self Assessment Team. The methodology used was evaluating the follow-up of 46 Area to Improvement ("AOI") results of recommendations from the 2014 conducted in self assessment. 8 AOIs have been followed up, and 36 others are in the process of being followed up.

For 2016 to 2018, the Company was assisted by PT Sinergi Daya Prima in assessing the implementation of GCG, based on the same methodology as the assessment methodology in 2014. Achievement of GCG Score in the 2018 fiscal year was 93.40, the highest so far. The GCG index value that has continued to increase since 2009 reflects the Company's commitment to implementing GCG consistently and continuously.

The summary of the assessment/evaluation of the implementation of the Company's GCG from 2009 to 2018 using the BUMN Scorecard criteria is as follows:

Year GCG Score Index Independent Assessor

2009 83.88 BPKP of East Java Province





2015 93.31 Internal Self Assessment Team

2016 93.02 PT Sinergi Daya Prima



Follow-up on Recommendations from GCG AssessmentBased on the results from the 2018 GCG assessment using SOE Scorecard, follow-up action has been made on the following recommendations:

Recommendations Follow-up

Update the GCG guidelines by adjusting the contents and provisions in the GCG Guidelines and the Manual Board to comply with the Company’s Articles of Association and applicable laws and regulations.

The GCG Guidelines and the Board Manual have been adjusted to the Company’s Articles of Association and the prevailing laws and regulations, and currently the approval process is underway.

Disseminate all employees about PKB that has been extended.

The socialization of the extension of the validity of the Collective Labor Agreement (PKB) has been submitted by the central-board to the management units, to be forwarded to the members.



Recommendations Follow-up

The Violation Report Management Team conveyed to the Board of Commissioners regarding the development of violation reporting every 6 (six) months, in accordance with the Guidelines for the Violation Reporting System.

The Violation Report Management Team has submitted the development of violation reporting every 6 (six) months to the Board of Commissioners.

Carry out training for Board of Commissioners Members, in accordance with the work plan and budget of the Board of Commissioners, especially Directorship programs related to updating knowledge and regulations.

In accordance with the work plan and budget, in 2018, training program was held for Members of the Board of Commissioners.

Prepare minutes of limited meeting discussing HR. Minutes of limited meeting discussing HR.

Adjust or complete the Board Manual with the actions of the Board of Directors with the approval of the Board of Commissioners.

The Board Manual has been adjusted/completed with the actions of the Board of Directors and request for approval from the Board of Commissioners has been sent. If the action has been set in the Articles of Association, then a foot note in the Manual Board is sufficient.

Finalizing the Blue-Print Draft as a guide in managing relations between the Holding Company and its Subsidiaries, so that the relationship is in line with the purpose and objectives of the Holding Company.

The Blue-Print draft has been finalized and serves as a guideline for managing the relationship between the Holding Company and its Subsidiaries, thus creating a relationship that is aligned with the objective and purpose of HoldCo. The name has been changed to the Guidelines for the Management of Semen Indonesia Group, which was approved by the Board of Directors on April 30, 2018

Meet the expectations of Shareholders and improve the Company’s performance through achieving agreed targets.

The expectations of Shareholders have been fulfilled by improving the Company’s performance through the achievement of agreed targets.

STRUCTURE AND MECHANISM OF GOVERNANCEPursuant to Law No. 40 Year 2007 concerning Limited Liability Companies, the corporate organs are consisted of the General Meeting of Shareholders (GMS), Board of Commissioners and Board of Directors. The Company’s management adopts two boards system, namely the Board of Commissioners and Board of Directors, with distinctive authority and responsibilities in line with its functions as mandated in the Articles of Association and prevailing laws.

Under the Board of Commissioners, the functional committees have been established to empower the supervisory function, namely the Audit Committee, the Nomination and Remuneration Committee as well as Risk Management Strategy and Investment Committee (RMSIC). As also under the Board of Directors, the operating units has been formed with the duties to control, monitor and responsible on GCG implementation, as well as to serve as working partners of the committees under the Board of Commissioners, as illustrated in below chart:

RMSIC Committee

Audit Committee

Nomination & Remuneration

Committee

Board of Commissioners

Board of Directors

Corporate Secretary

Internal Audit

Department of Legal &

Governance, Risk & Compliance

Department of HR System Development

Department of Quality

Management & OHS

Environment


Social Responsibility

A close relationship exist among the Company’s GCG work units management, that is the Corporate Secretary who is responsible to the Board Governance (communication and coordination function with Board of Directors, Board of Commissioners and Board of Commissioners Committees), Law Department & GRC (operational governance, policy formulation and compliance functions) and Internal Audit as shown in the following chart:



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Dis

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Board GovernanceBoard Manual, Integrity Pact,

Management Contract

Operational GovernanceGCG Policy, ICT Governance, ICOFR, ERM,

Whistleblowing System, Compliance, HumanCapital, Procurement, and other policies

PT SI GCG GuidelinesRefers to Company Law, SOE Law, Government Law, Articles of Association, GCG OJK, and

Common Practices (Asean GCG Standard, etc)

Corporate Ethics and SIG Culture Values GuidelinesBusiness Ethics, Code of Conduct, CHAMPS

Corporate Secretary Legal & GRC Department

In the implementation of the Company’s GCG structure, the Shareholders (through GMS forum) can make important decisions related to investments in the Company. The decisions made at the GMS are based on the interests of the Company. The GMS or Shareholders can not intervene in the duties, functions and authorities of the Board of Commissioners and the Board of Directors without prejudice to the power of the GMS to exercise their rights in accordance with the Article of Association and the Laws and Regulations.

With equal position, the shareholders will prudently consider its decisions for the long-term interest of the Company. Following the decision, the GMS will submit all authorities of supervision and implementation of the decision to the Board of Commissioners and Board of Directors. This is in accordance with the Company’s Articles of Association and prevailings laws and regulations.

The management of the company and the implementation of GMS resolutions are conducted by the Board of Directors. The Board of Commissioners then exercises the supervisory and advisory functions to ensure that the Company’s objectives and GMS decisions are implemented and achieved. With such duties and responsibilities in maintaining the Company sustainability, the Board of Commissioners is assisted by Supporting Committees while the Board of Directors is assisted by the operating units associated with the governance mechanism.

THE GENERAL MEETING OF SHAREHOLDERSThe General Meeting of Shareholders (GMS) is the highest organ of the Company, serving as a forum for shareholders to formulate important decisions whose authorities are not granted to the Board of Directors nor the Board of Commissioners in agreement with the Company’s Articles of Association and the prevailing laws and regulations.

Such authorities are entitled to hold the Board of Commissioners and Board of Directors responsibilities for the management of the Company, to amend Company’s articles of association, to appoint, to dismiss Directors and Members of the Board of Commissioners, to decide on the distribution of duties and authorities among Directors and others.

The General Meeting of Shareholders is a forum for

shareholders to make important decisions whose authority is not given to the Board of Directors

and the Board of Commissioners.



In the General Meeting of Shareholders, all shareholders, both majority or minority shareholders, have the same voting rights on any investment decisions or other corporate plan of actions. In order to ensure the protection of minority shareholders interests, the Company has commissioned Independent Commissioners to ascertain all decision-making and meeting mechanisms are able to accommodate opinions and concerns of minority shareholders.

The General Meeting of Shareholders (AGMS) consists of the Annual General Meeting of Shareholders (AGMS), which is a routine agenda and held at least once a year, and Extraordinary General Meeting of Shareholders (EGMS), whose execution time may occur beyond the AGMS.

PROCEDURES IN HOLDING GENERAL MEETING OF SHAREHOLDERS The procedures of the General Meeting of Shareholders (GMS) comply with Law No. 40 of 2007 concerning Limited Liability Companies as well as BAPEPAM Regulation No. IX.I.1 regarding the Plan and Implementation of the General Meeting of Shareholders.

The execution of the GMS is carried out pursuant to the Financial Services Authority Regulation No. 32/POJK.04/2014 concerning the Plan and Implementation of General Meeting of Shareholders of Public Company and refers to the Articles of Association of the Company.

RESOLUTIONS OF THE PREVIOUS GMS (2017)In 2017, the Company held one Annual General Meeting of Shareholders (AGMS) and one Extra-Ordinary General Meeting of Shareholders (EGMS). The AGMS is held on March 31, 2017, taking place at Mutiara Dua Ballroom Hotel JW Marriot, Jl. Dr. Ida Anak Agung Gde Agung Kav. E.3.2 No.1, Jakarta Selatan.

The AGM was held on March 31, 2017, and was attended by shareholders and/or their proxies representing 4,900,999,313 shares or 82.63% of 5,931,520,000 the Company’s outstanding shares.

The EGMS was held on September 15, 2017, and was attended by shareholders and/or their proxies representing 4,923,455,708 shares or 83% of 5,931,520,000 the Company’s outstanding shares.

AGMS Agenda, Decisions and Follow-Up

AGMS Agenda:1. Ratification of the Company’s Annual Report on

progress and status for the Fiscal Year of 2016 including the Supervisory Tasks Implementation Report of the Board of Commissioners for the Fiscal Year of 2016, Ratification of Financial Statements of the Company for the Fiscal Year 2016, and granting Volledig acquit et decharge to the Board of Directors and the Board of Commissioners for their actions in managing and supervising the Company for the 2016 Fiscal Year;

2. Ratification of the Partnership and Community Development Program Annual Report of the Fiscal Year 2016, as well as granting of acquit et decharge to the Board of Directors and the Board of Commissioners for the management and supervision of the Partnership and Community Development Program for the 2016 Fiscal Year;

3. Determination on the appropriation of the Company’s Net Profit for the Fiscal Year 2016;

4. Determination of the 2016 Financial Year Tantiem, salaries for Directors and honorarium for the Board of Commissioners along with other facilities and benefits for 2017.

5. Approval on the Appointment of Public Accounting Firm (“KAP”) to audit the Company’s Financial Statements including Partnership and community development Program Report auditing for the Fiscal Year 2017 and other periods during the Fiscal Year of 2017;

6. Amendment to the Articles of Association of the Company;

7. Establishment of Dwiwarna A Series A Shares of the Republic of Indonesia;

8. Changes to the composition and members of the Board of Directors.



Agenda Decision of AGMS on March 31, 2017 Follow Up1 1. To approve the Annual Report on the situation and the course of the Company

for FY 2016 including the Report of the Supervisory Board of Commissioners for the Financial Year 2016.

2. To ratify the Company’s Financial Statements for Fiscal Year 2016 audited by Public Accountant Firm Bing Eny Satrio & Partners, member firm of Deloitte Touche Tohmatsu Limited according to the report in a letter No. GA117 0025 SI FAN on February 17, 2017 with the opinion “Fair, in all material respects, the financial position of PT Semen Indonesia (Persero) Tbk and its subsidiaries as of December 31, 2016 as well as financial performance and its cash flows for the year ended on that date in accordance with Financial Accounting Standards in Indonesia“, while providing a release and discharge full responsibility (acquit et de charge) to the Board and the Board of Commissioners for the actions of management and supervision it has done for the Financial Year 2016 all is not a crime and/or in violation of rules and procedures applicable laws and recorded in the Company’s Financial Statements and does not conflict with the rules and regulations.

Voting Results

Agree 4,883,190,513

Disagree 0

Abstain 17,808,800

The decision takes effect immediately

2 1. Ratified the Annual Report of Partnership and Community Development Program (PKBL) of PT Semen Indonesia (Persero) Tbk for the fiscal year ended December 31, 2016, which is based on the PKBL Financial Statements audited by Public Accounting Firm Bing Eny Satrio & Partners, member firm of Deloitte Touche Tohmatsu Limited in accordance with its report in letter No. GA117 0029 PKBLSI EIW dated February 17, 2017, with the opinion of “fair, in all material respects, the financial position of the PKBL Unit of PT Semen Indonesia (Persero) Tbk as of December 31, 2016, as well as reports of activities and cash flows for the year ended, in accordance with Financial Accounting Standards of Entities without Public Accountability“, as well as providing release and discharge (acquit et de charge) to the Board of Directors and Board of Commissioners for their management and supervision of the Partnership and Community Development program during Fiscal Year 2016, insofar as the aforementioned actions and supervision do not constitute a criminal act and/or violates the prevailing rules and regulations, and is recorded in the Company’s PKBL Annual Report. Further, the PKBL Annual Reports for Fiscal Year 2016 of Subsidiaries are approved by the Shareholders of the Subsidiaries.

Voting Results

Agree 4,883,190,513

Disagree 0

Abstain 17,808,800


3 1. Approved the distribution of Net Income of PT Semen Indonesia (Persero) Tbk for Fiscal Year 2016 in the amount of Rp4,521,596,208,000 as follows:• 40% or Rp1,808,638,483,200,- or Rp304.92,- per share as dividend. The

portion of the Government of Republic of Indonesia amounted to 51.01% or Rp922,586,000,000,- and the public amounted to 48.99% or Rp886,131,989,265,-

• The remaining amount of 60% or Rp2,712,957,724,800,- allocated as a reserve. 2. To grant power and authority to the Board of Directors with substitution right to

set the schedule and method for the payment of dividend for fiscal year 2016 in accordance with applicable regulations.

Voting Results

Agree 4,881,686,213

Disagree 6,625,400

Abstain 12,687,700




Agenda Decision of AGMS on March 31, 2017 Follow Up

4 1. To grant power and authority to the Majority Shareholder to determine the amount of tantiem for Fiscal Year 2016, as well as the honorarium, benefits, facilities and other incentives for members of the Board of Commissioners for 2017.

2. To grant power and authority to the Board of Commissioners, by first obtaining the written approval of Majority Shareholder, to determine the amount of tantiem for Fiscal Year 2016, and determine the salaries, benefits, facilities and other incentives for the Board of Directors for 2017.

Voting Results

Agree 4,864,673,873

Disagree 6,625,400

Abstain 12,687,700


5 1. The GMS appointed the Public Accountant Firm of Bing Eny Satrio & Partners (a member firm of Deloitte Touche Tohmatsu Limited) to perform the General Audit on the Company’s Consolidated Financial Statements for Fiscal Year 2017 and other periods in Fiscal Year 2017.

2. The GMS appointed the Public Accountant Firm of Bing Eny Satrio & Partners (a member firm of Deloitte Touche Tohmatsu Limited) to perform the General Audit on Financial Statements for Funds Utilization in the Partnership and Community Development Program for Fiscal Year 2017.

3. The GMS delegated the power and authority to the Board of Commissioners to:• appoint a substitute Public Accountant Firm and to determine the terms and

conditions for its appointment, in the event that the selected Public Accountant Firm be unable to complete or continue its works due to any reason whatsoever, including for legal reasons, the capital market regulations, or failure to agree on the fees for audit services.

• determine the amount of audit services fees and other reasonable terms and conditions for the Public Accountant Firm.

Voting Results

Agree 4,624,098,015

Disagree 245,971,858

Abstain 30,929,440


6 1. To approve the changes and/or adjustments in the standardized Articles of Association of publicly-listed SOEs by way of a complete rewriting of the Articles of Association of the Company, in accordance with letter of the Minister for State Owned Enterprises as Shareholder of the Republic of Indonesia

2. To grant power and authority to Shareholder of the Republic of Indonesia to make such changes and/or improvements to the Articles of Association as referred to, in the event of changes and/or improvements to the provisions as issued by the relevant authorities, including authorities associated with public companies and/or Shareholder of the Republic of Indonesia.

3. To approve the delegation of power to the Board of Directors with Substitution Right to declare such changes and/or adjustments to the Articles of Association in a Notarial Deed, and to submit the approval, reporting and notification of changes in the Articles of Association to the Minister of Justice and Human Rights of the Republic of Indonesia and/or authorized institutions according to applicable laws and regulations.

Voting Results

Agree 3,465,341,506

Disagree 1,277,845,741

Abstain 157,812,066


7 Due to failure to meet the quorum, discussions and decision on Agenda 7 can not be done.



Agenda Decision of AGMS on March 31, 2017 Follow Up

8 1. To honourably dismiss from office the following names:a. Mahendra Siregar as President Commissioner; b. Muchammad Zaidun as Independent Commissioner; c. Marwanto Harjowiryono as Commissioner; d. Gatot Kustyadji as Director, effective from the closing of this Meeting, with gratitude for their dedication

and contributions during their tenure as members of the Board of Commissioners and Board of Directors of the Company.

2. To change the nomenclature of office of the Board of Directors as follows:a. President Director became President Director b. Director became Director of Finance c. Director became Director of Marketing and Supply Chain d. Director became Director of Business Development and Research and

Development e. Director became Director of Engineering and Projects f. Director became Director of Human Resources and Legalg. Director became Director of Production and Business Strategy

3. To appoint the following names:a. Sutiyoso as President Commissioner; b. Astera Primanto Bhakti as Commissioner; c. Nasaruddin Umar as Independent Commissioner; d. Agung Yunanto as Director of Human Resources and Legal, the term of office starting form the closing of this Meeting and ending at the

close of the fifth Annual General Meeting after this AGM, without prejudice to the right of the AGM to dismiss the person(s) at any time.

4. Transfer of tasks to be as follows:

No Name Old Nomenclature New Nomenclature Description

1 Ahyanizzaman Director Director of Marketing and Supply Chain Transfer of tasks

2 Aunur Rosyidi Director Director of Engineering and Projects Transfer of tasks

3 Darmawan Junaidi Director Director of Finance Transfer of tasks

4 Budi Siswoyo Director Director of Business Development and Research and Development Transfer of tasks

5 Johan Samudra Director Director of Production and Business Strategy Transfer of tasks

6 Wahyu Hidayat Commissioner Independent Commissioner Transfer of tasks

5. For commissioners and directors appointed as mentioned in point 3 above and who is still incumbent in other positions prohibited under the Laws and Regulations for concurrent position with the post of commissioners or directors of SOEs, then the respective individual shall resign from such concurrent position.

6. By the dismissal and appointment as well as the transfer of tasks referred to in item 1, item 3 and item 4 above, the composition of the Company’s boards of management shall be as follows:

a. Board of Directors b. Board of CommissionersRizkan Chandra President Director Sutiyoso President Commissioner

Ahyanizzaman Director of Marketing and Supply Chain Astera Primanto Bhakti Commissioner

Aunur Rosyidi Director of Engineering and Projects Nasaruddin Umar Independent

Commissioner

Darmawan Junaidi Director of Finance Hambra Commissioner

Budi SiswoyoDirector of Business Development and Research & Development

Djamari Chaniago Independent Commissioner

Johan Samudra Director of Production and Business Strategy Sony Subrata Commissioner

Agung Yunanto Director of Human Resources and Legal Wahyu Hidayat Independent

Commissioner

7. To grant power to the Board of Directors with Substitution Right to declare the decisions of this Meeting in a Notarial Deed and to appear before such Notary or other authorized official, and to make any adjustment or improvement necessary if required by the authorities for the purpose of implementing the decisions of this Meeting.

Voting Results

Agree 3,511,110,870

Disagree 1,249,432,177

Abstain 140,456,266



Resolution of Extraordinary General Meeting of ShareholdersAgenda Decision of EGMS on September 15, 2017 Follow Up

1 1. To approve the change of the Company’s share classification in relation to the determination of 1 (one) Series A of Dwiwarna Shares of the Republic of Indonesia, thus:a. The Company’s authorized capital is Rp2,000,000,000,000.00 (two trillion

Rupiah) divided into 20,000,000,000 (twenty billion) shares, each with a par value of Rp100.00 (one hundred Rupiah), which consists of:• 1 (one) Series A of Dwiwarna share; and• 19,999,999,999 (nineteen billion nine hundred ninety nine million nine hundred

ninety nine thousand nine hundred ninety nine) Series B Shares. b. Of the authorized capital of the Company have been placed and taken part and

paid up amounting to 5,931,520,000 (five billion nine hundred thirty one million five hundred twenty thousand) shares with a total face value of Rp593,152,000,000.00 (five hundred and nine billion one hundred fifty two million Rupiah) consisting of:- 1 (one) Series A of Dwiwarna share with total nominal value of Rp100.00 (one

hundred Rupiah), owned by the Republic of Indonesia;- 5,931,519,999 (five billion nine hundred thirty one million five hundred nineteen

thousand nine hundred ninety nine) Series B Shares, with total nominal value of Rp593,151,999,900.00 (five hundred ninety three billion one hundred fifty one million nine hundred ninety nine thousand nine hundred Rupiah), with details:• 3,025,405,999 (three billion twenty five million four hundred and five

thousand nine hundred ninety nine) shares, with a total face value of Rp302,540,599,900 (three hundred two billion two hundred forty million five hundred ninety nine thousand nine hundred Rupiah) owned by the Republic of Indonesia; and

• 2,906,114,000 (two billion nine hundred six million one hundred and fourteen thousand) shares, with a total nominal value of Rp290,611,400,000.00 (two hundred ninety billion six hundred and eleven million four hundred thousand Rupiah) belonging to the public.

2. To approve the amendment of the Company’s Articles of Association related to the determination of the Series A of Dwiwarna share and the amendment and/or adjustment of standardization of the Articles of Association of Publicly-Listed SOEs by recompiling all of the Company’s Articles of Association, in accordance with the letter of the Minister of SOE as the representative of State Shareholder of the Republic of Indonesia.

3. To grant power and authority to the State Shareholders of the Republic of Indonesia to make amendments and/or corrections to the provisions of the Articles of Association of the Company as referred to in the event of any amendment and/or correction to the provisions issued by the competent authority including related public institutions and/or Series A of Dwiwarna Shareholder as deemed necessary in order to submit reporting and/or approval of amendment to the Articles of Association to the authorized institution.

4. Approved to grant power and authority to the Board of Directors with the right of substitution to perform all necessary actions in connection with the determination of the Series A of Dwiwarna share and the amendment and/or adjustment to the provisions of the Company’s Articles of Association related to the determination of the Series A of Dwiwarna share and changes and/or adjustments standardization of the Open SOE Budget, including but not limited to restating the above changes and/or adjustment of the Articles of Association to the same time reorganizing all the Articles of Association of the Company into a Notarial Deed and subsequently filing approval and reporting and notification of amendments to the Articles of Association of the Company to the Minister Law and Human Rights of the Republic of Indonesia and/or authorized agencies under applicable laws and regulations, including making necessary adjustments or improvements where required by the competent authorities.

Voting Results

Agree 3,512,755,457 (71.35%)

Disagree 1,335,530,751 (27.12%)

Abstain 75,169,500 (1.53%)




Agenda Decision of EGMS on September 15, 2017 Follow Up2 To approve ratification/inauguration of Regulation of the Minister of SOE below:

1. PER-05/MBU/2008 concerning General Guidelines for the Procurement of Goods and Services of SOE as amended by PER- 15/MBU/2012;

2. PER-04/MBU/2014 concerning Guidelines for Stipulation of Directors, Board of Commissioners and Supervisory Board of SOE as amended lastly by PER-01/MBU/06/2017;

3. PER-02/MBU/2010 concerning Procedures for the Abolition and Transfer of State-Owned Assets as amended the latest by PER-22/MBU/12/2014;

4. PER-03/MBU/2012 concerning Guidelines for the Appointment of Members of the Board of Directors and Members of the Board of Commissioners of the SOE Subsidiaries;

5. PER-01/MBU/2011 concerning the Implementation of Good Corporate Governance in SOE as amended lastly by PER-09/MBU/2012;

6. PER-03/MBU/08/2017 concerning Guidelines for Cooperation of SOE; 7. PER-12/MBU/2012 concerning the Supporting Organs of the Board of Commissioners

or Board of Trustees of SOE;8. PER-21/MBU/2012 concerning Guidelines for Application of Financial Accountability

of SOE;9. PER-19/MBU/2012 concerning Suspension of Business Transactions Indicated by

Irregularities and/or Fraud;10. PER-09/MBU/2013 concerning General Hedging Transaction Policy of SOE; and including any changes that occur in the future.

Voting Results

Agree 3,777,343,787 (76.72%)

Disagree 950,780,221 (19.31%)

Abstain 195,331,700 (3.97%)




Agenda Decision of EGMS on September 15, 2017 Follow Up3 1. To confirm the honourable dismissal of:

a. Mr. Rizkan Chandra (deceased) as President Director as of July 15, 2017;b. Mr. Darmawan Junaidi as Finance Director of the Company as of August 21, 2017, with gratitude for the dedication and contribution of their thoughts during their

terms as member of the Board of Directors of the Company. 2. To honourably dismiss:

a. Mr. Budi Siswoyo as Director of Business Development and R&D; b. Mr. Aunur Rosyidi Director of Engineering and Project; c. Mr. Johan Samudra as Director of Production and Business Strategy, with gratitude for the dedication and contributions while serving as members of

the Board of Directors of the Company. 3. To change the nomenclature of the members of the Board of Directors of the

Company as follows:

No. Old Nomenclature New Nomenclature

a Director of Business Development and R&D Director of Business Strategy and Business Development

b Director of Production and Business Strategy Director of Production

4. To appoint the names as follows:a. Mr. Hendi Prio Santoso as President Director;b. Mr. Fadjar Judisiawan as Finance Director;c. Mr. Doddy Sulasmono Diniawan as Director of Business Strategy and Business

Development;d. Mr. Tri Abdisatrijo as Director of Engineering and Project; e. Mr. Benny Wendry as Director of Production, with term of office as of the conclusion of the Meeting until the closing of the

fifth Company’s Annual General Meeting of Shareholders, without prejudice to the right of General Meeting of Shareholders to dismiss at any time.

5. To cancel the assignment of Mr. Wahyu Hidayat from Commissioner become Independent Commissioner as decided in Annual General Meeting of Fiscal Year 2016 as organized on March 31, 2017 and reaffirmed the appointment as Commissioner of the Company effective from its appointment at the Annual General Meeting 2013 on March 25, 2014 and will end on the closing of Annual General Meeting of 2019, without prejudice to the authority of the General Meeting of Shareholders to dismiss at any time.

6. For the members of the Board of Directors appointed as referred to in number 4 mentioned above who are still serving other positions which are prohibited under the laws and regulations to be concurrently with the positions of members of the SOE’s Board of Directors, the concerned person shall resign from his position.

7. With the dismissal and appointment of the Board of Directors and the cancellation of the duties of the Board of Commissioners above, the composition shall be as follows:

Board of DirectorsName Position End

Hendi Prio Santoso President Director GMS Year 2022

Fadjar Judisiawan Director of Finance GMS Year 2022

Doddy Sulasmono Diniawan Director of Strategic Business & Enterprise Development

GMS Year 2022

Ahyanizzaman Director of Marketing and Supply Chain GMS Year 2021

Benny Wendry Director of Production GMS Year 2022

Agung Yunanto Director of Human Resources and Legal GMS Year 2022

Tri Abdisatrijo Director of Engineering and Project GMS Year 2022

Board of CommissionersName Position End

Sutiyoso President Commissioner GMS Year 2022

Astera Primanto Bhakti Commissioner GMS Year 2022

Nasaruddin Umar Independent Commissioner GMS Year 2022

Hambra Commissioner GMS Year 2021

Djamari Chaniago Independent Commissioner GMS Year 2021

Sony Subrata Commissioner GMS Year 2020

Wahyu Hidayat Commissioner GMS Year 2019




Agenda Decision of EGMS on September 15, 2017 Follow Up8. To provide authority with substitution rights to the Board of Directors of the

Company to declare the decisions of this Meeting in the form of a Notarial Deed and to appear before a Notary or other authorized official, and make any adjustments or improvements necessary as required by the competent authorities for the purpose of implementing the decisions of this Meeting.

Voting Results

Agree 3,494,366,780 (70.97%)

Disagree 1,195,421,181 (24.28%)

Abstain 233,667,747 (4.75%)

AGMS 2018In 2018, the Company held one Annual General Meeting of Shareholders (AGMS). The AGMS was held on 30 April 2018 at the Main Hall of the Indonesia Stock Exchange - Menara I, Jl. Jend. Sudirman Kav. 52-53, Jakarta, attended by shareholders and/or representing 4,805,032,223 shares, including Series A Dwiwarna Shares, equivalent to 81% of the total shares issued by the Company amounting to 5,931,520,000 shares.

Agenda, Decision, and Follow up of AGMSAgenda 1 Approval of the Annual Report regarding the condition and management

of the Company during the 2017 Financial Year includes a Report on the Implementation of Supervisory Duties of the Board of Commissioners during the Fiscal Year 2017, and ratification of the Company’s Financial Statements for 2017, as well as granting release and discharge responsibilities (volledig acquit et decharge) to the Board of Directors and the Board of Commissioners for the management and supervision of the Company that have been carried out during the 2017 Financial Year.

The decisiontakes effectimmediately

Question/Suggestion 2 (two) person

Voting Result Disagree Abstain Agree- 15,889,179 (0.33%) 4,789,143,044 (99.66%)

Resolution 1. Approve the Annual Report regarding the condition and management of the Company during the Fiscal Year 2017 including the Report of Implementation of the Supervisory Duties of the Board of Commissioners during the 2017 Financial Year.

2. Ratifying the Company’s Financial Statements for the Fiscal Year 2017 audited by the Public Accountant Office of Satrio Bing Eny & Partners, member of Deloitte Touche Tohmatsu Limited in accordance with the Report in letter No. GA118 0100 SI FAN dated February 23, 2018 with the opinion “reasonable, in all material respects, the financial position of PT Semen Indonesia (Persero) Tbk. and subsidiaries on December 31, 2017, as well as financial performance and cash flows for the year ended that date in accordance with the Financial Accounting Standards in Indonesia “, while providing full release and discharge (volledig acquit et de charge) to the Board of Directors and Board of Commissioners for the management and supervision actions carried out during the Fiscal Year 2017, insofar as it is not a criminal offense and/or violates applicable legal provisions and procedures and is recorded in the Company’s Financial Report and does not conflict with the provisions and laws and regulations.



Agenda 2 Ratification of the Annual Report of the Partnership and Community Development Program for 2017, as well as granting release and discharge (acquit et decharge) to the Board of Directors and Board of Commissioners for the management and supervision of partnership and community development programs that have been implemented during the 2017 Financial Year


Question/Suggestion

-

Voting Result Disagree Abstain Agree- 15,889,179 (0.33%) 4,789,143,044 (99.66%)

Resolution 1. Ratified the Annual Report of the Partnership and Community Development Program of PT Semen Indonesia (Persero) Tbk for the Book Year which ended on 31 December 2017, based on the Financial Statement of PKBL audited by Satrio Bing Eny & Partners Public Accountant, member of Deloitte Touche Tohmatsu Limited in accordance with the Report in the letter No. GA118 0093 PKBLSI FAN dated February 20, 2018 with opinion “reasonable, in all material respects on the financial position of the Partnership and Community Development Program Unit of PT Semen Indonesia (Persero) Tbk. December 31, 2017, as well as reports of activity and cash flow for the year ended that date, in accordance with the Entity Financial Accounting Standards without Public Accountability “, granting release and discharge (acquit et de charge) to the Board of Directors and Board of Commissioners for the management and supervision of the Partnership and Community Development Program that has been carried out during the Fiscal Year 2017, insofar as it is not a criminal offense and/or violates applicable legal provisions and procedures and recorded in the Company’s PKBL Annual Report and does not conflict with the provisions and laws and regulations. Furthermore, for the 2017 Annual Report the Partnership and Community Development Program for Subsidiary Entities is approved by the Shareholders of the Subsidiary.

2. Granting power to the Board of Commissioners by first obtaining written approval from the Series A Dwiwarna Shareholders regarding the authority of the GMS as stipulated in the Regulation of the Minister of BUMN No. PER-09/MBU/07/2015 as lastly amended by SOE Minister Regulation No. PER-02/MBU/7/2017, and changes..

Agenda 3 Determination of the Appropriation of the Company’s net profit for the 2017 Financial Year

The decisiontakes effectimmediatelyQuestion/

Suggestion1 (one) person

Voting Result Disagree Abstain Agree9,747,000 (0.,20%) 420,300 (0.008%) 4.794.864.923 (99.78%)

Resolution 1. Approved the use of profit for the current year that can be attributed to the owners of the parent entity (the Company’s net profit) which is intended as follows:a. Dividend, amounting to 40%, or in the sum of Rp805,678,361,600, or

Rp135.83 per share. The portion of the State of the Republic of Indonesia as the shareholder is 51.01% or Rp410,940,896,980, and the public is 48.99% or Rp394,737,464,620, -

b. The remaining 60% or Rp1,208,336,391,400 are recorded as Profit Balance to support the Company’s operational and development activities.

2. Granting authority and power to the Directors of the Company with the right of substitution to set a schedule and procedure for payment of dividends for Fiscal Year 2017 in accordance with applicable regulations.



Agenda 4 Determination of tantiem for the 2017 financial year, salaries for the Board of Directors, and honorarium for the Board of Commissioners along with other facilities and benefits for 2018


Question/Suggestion

-

Voting Result Disagree Abstain Agree45,343,725 (0.94%) 83,018,120 (1.72%) 4,676,670,378 (97.32%)

Resolution 1. Granting authority and power of attorney to Series A Dwiwarna Shareholders to determine the amount of bonus for the 2017 Financial Year and determine the honorarium, benefits, facilities and other benefits for members of the Board of Commissioners for 2018.

2. Granting authority and power to the Board of Commissioners by first obtaining written approval from Series A Dwiwarna Shareholders, to determine the amount of tax for 2017 Financial Year and to determine the salaries, benefits, facilities and other benefits for Directors for 2018.

Agenda 5 Approval of the Appointment of the Public Accountant Firm (“KAP”) to audit the Company’s Financial Statements including the audit of the Partnership Program and Comprehensive Development Report 2018 and other periods in the 2018 Book Year


Question/Suggestion

-

Voting Result Disagree Abstain Agree219,469,042 (4.56%) - 4,585,563,181 (95.43%)

Resolution 1. The GMS appointed Satrio Bing Eny & Partners Public Accountant Firm (KAP), member of Deloitte Touche Tohmatsu Limited to carry out:a. General Audit of the Company’s Consolidated Financial Statements for 2018

Book Year and other periods in 2018 Book Yearb. General Audit of Financial Report on Use of Partnership and Community

Development Program Funds for 2018c. Audit of compliance with legislation and internal control in 2018d. Evaluation of Company Performance for fiscal year 2018 which ends

on December 31, 2018 and KPI that has been determined by the Board of Commissioners

2. Granting authority and power to the Board of Commissioners to:a. Appoint a replacement Public Accountant Office and determine the conditions

and requirements for its appointment if the appointed Public Accountant Office cannot carry out or continue its duties for any reason, including legal and regulatory reasons in the capital market or no agreement is reached regarding the amount of audit services

b. Determine the amount of compensation for audit services and other terms of appointment that are reasonable for the Public Accounting Firm

Agenda 6 Accountability of Realization of Use of Funds Resulting from Public Offering of Semen Indonesia Sustainable Bonds I Phase I of 2017

The decisiontakes effectimmediatelyQuestion/

Suggestion-

Voting Result Disagree Abstain Agree- - 4,805,032,223 (100%)

Resolution Accepting the accountability report for the Realization of the Use of Funds from the Public Offering of the Semen Indonesia I Phase I Year 2017 Bonds amounting to Rp3 trillion.



Agenda 7 Amendment to the Company’s Articles of Association The decisiontakes effectimmediately

Question/Suggestion

-

Voting Result Disagree Abstain Agree1.282.358.570 (26,68%) 196.290.120 (4,08%) 3.326.383.533 (69,22%)

Resolution 1. Approved the amendment of the Company’s Articles of Association2. Approved to rewrite all provisions in the Articles of Association of the Company

in connection with the amendment as referred to in item 1 (one) of the above decisions.

3. Granting the power and authority to the Board of Directors of the Company with substitution rights to take all necessary actions relating to the decision of the Seventh agenda, including compiling and restating all of the Company’s Articles of Association in a Notary Deed and submitting to the competent authorities to obtain approval and/or signs receipt of notification of changes to the Articles of Association of the Company, do everything deemed necessary and useful for this purpose with none being excluded, including to make additions and/or changes in the amendments to the Articles of Association of the Company if this is required by the authorized agency.

Agenda 8 Ratification of Minister of State-Owned Enterprises Regulation No. PER-03/MBU/08/2017 dated August 14, 2017 on Guidelines for Cooperation between State-Owned Enterprises and No. PER-04/MBU/09/2017 September 13, 2017 on Amendment to Minister of State-Owned Enterprises Regulation No. PER-03/MBU/08/2017 on Guidelines for Cooperation of State-Owned Enterprises


Question/Suggestion

-

Voting Result Disagree Abstain Agree

- - 4.805.032.223 (100%)

Resolution Approved the ratification/confirmation of the enactment of Minister of State-Owned Enterprises Regulation No. PER-03/MBU/08/2017 dated August 14, 2017 on Guidelines for Cooperation between State-Owned Enterprises and No. PER-04/MBU/09/2017 September 13, 2017 on Amendment to Minister of State-Owned Enterprises Regulation No. PER-03/MBU/08/2017 on Guidelines for Cooperation between State-Owned Enterprises and including any changes that might occur in the future



Agenda 9 Changes in the Management Structure of the Company The decisiontakes effectimmediately

Question/Suggestion

-

Voting Result Disagree Abstain Agree493,500 (0.01%) 61,937,600 (1.28%) 4,742,601,123 (98.70%)

Resolution 1. Dismissed with respect Mr. Ahyanizzaman as Director of Marketing and Supply Chain effective since the closing of this GMS with gratitude for the contribution of work and insight given during his tenure as Director of Marketing and Supply Chain.

2. Diverted the assignment of the following names:1) Mr. Doddy Sulasmono Diniawan from previously Director of Business Strategy

and Business Development to become Director of Finance.2) Mr. Fadjar Judisiawan from previously Director of Finance to become Director

of Business Strategy and Business Development. with a term to continue the remaining term, in accordance with the decision of

the AGM of the appointment of the concerned.3. Appointed Mr. Adi Munandir as Director of Marketing and Supply Chain.4. Dismissed with respect Mr. Djamari Chaniago from the position of Independent

Commissioner of the Company, effective since the closing of this GMS with gratitude for the contribution of work and insight given during his tenure as the Company’s Independent Commissioner.

5. Ratified the dismissal with respect of Mr. Hambra as the Company’s Commissioner effective since April 26, 2018 with gratitude for the contribution of work and insight given during his tenure as the Company’s Commissioner.

6. Appointed the names below as members of the Company’s Board of Commissioners:a. Mr. M. Choliq as Independent Commissionerb. Ms. Hendrika Nora O. Sinaga as Commissioner

7. The term of office of the appointed member of the Board of Directors and the Board of Commissioners, as in points 3 and 6, is in accordance with the Articles of Association, taking into account the applicable laws and regulations in the Capital Market sector and without prejudice to the rights of the GMS to terminate at any time.

8. With the transfer of duties, dismissal and appointment of members of the Board of Directors and Board of Commissioners of the Company, as referred to in points 1, 2 and 3, the composition of the Company’s Board of Directors and Board of Commissioners is as follows:

A. Board of Directors

No. Name Position

1) Hendi Prio Santoso President Director

2) Doddy Sulasmono Diniawan Director of Finance

3) Agung Yunanto Director of Human Resources and Legal

4) Adi Munandir Director of Marketing and Supply Chain

5) Fadjar Judisiawan Director of Production and Business Strategy

6) Tri Abdisatrijo Director of Engineering and Projects

7) Benny Wendry Director of Production

B. Board of Commissioners

No. Name Position

1) Sutiyoso President Commissioner

2) Wahyu Hidayat Commissioner

3) Astera Primanto Bhakti Commissioner

4) Sony Subrata Commissioner

5) Hendrika Nora O. Sinaga Commissioner

6) Nasaruddin Umar Independent Commissioner

7) M. Choliq Independent Commissioner

9. Granting the power and authority to the Board of Directors of the Company with the right of substitution to take all necessary actions relating to the resolution of this agenda in accordance with applicable laws and regulations, including to declare in a separate Notarial Deed, and notify the composition of the Board of Directors and the Board of Commissioners to the Ministry of Law and Human Rights of the Republic of Indonesia.



BOARD OF COMMISSIONERSThe Board of Commissioners is the Company’s organ in charge of supervising the management policies, the management in general, both of the Company and its business, and providing advices to the Board of Directors, for the interests of the Company and in accordance with the purposes and objectives of the Company. As the main reference fro the Board of Commissioners is the Law No. 40 of 2007 on Limited Liability Companies and the Law No. 19 of 2003 on State-Owned Enterprises.

In carrying out its duties, the Board of Commissioners is assisted by the supporting organs of the Board of Commissioners, namely the Secretary of the Board of Commissioners, the Audit Committee, the Risk and Investment Management Committee (SRMIC), and the Nomination & Remuneration Committee (NRC).

DUTIES AND RESPONSIBILITIES OF

THE BOARD OF COMMISSIONERSIn general in accordance with the Law No. 40 of 2007 concerning Limited Liability Companies, the Law No. 19 of 2003 on SOEs and the Company’s Articles of Association. The duties and scope of responsibilities of the Board of Commissioners are as follows:1. Undertake supervisory duties on the policies and

management of the Company and provide advice on the implementation of the Company’s Long Term Plans (RKAP), Company Work Plans (RKAP) including the Company’s KPI and provisions of the Articles of Association and GMS Decisions, as well as applicable laws and regulations for the interests of the Company and in accordance with the purposes and objectives of the Company.

2. Carry out the application of GCG principles and oversee their implementation in the organization.

3. Provide overall views and input on BOD performance report to the GMS.

4. Prepare report on the accountability of activities and performance of the Board of Commissioners to the GMS.

5. To head the Committee formed by the Board of Commissioners in carrying out all of the duties and work relations of the Committee.

6. Provide approval to the Board of Directors or provide opinions/responses to the GMS on the plan of the Board of Directors in implementing their policies in accordance with the provisions of the Articles of Association of the Company.

7. Keep up with the development of the Company’s activities and provide opinions and suggestions regarding the plans and implementation of the RJPP, RKAP, or any issues that are considered important for the Company.

8. Ensure that the Company discloses the implementation of GCG principles in the GMS and Annual Report.

9. Conduct meetings with the Board of Directors, Audit Committee and other units that have a relationship with the management of the Company.

COMPOSITION OF THE BOARD OF

COMMISSIONERSThe characteristic of the membership of the Board of Commissioners is designed in such a way so that the Board of Commissioners can perform their duties effectively and efficiently, and that the Company can realize its performance targets. The Board of Commissioners of PT Semen Indonesia (Persero) Tbk serving from January 1, 2018 to April 30, 2018 are:

Name Position Tenure

Letjen TNI (Purn) Sutiyoso President Commissioner

AGMS March 31, 2017 – AGMS 2022

Nasaruddin Umar Independent Commissioner

AGMS March 31, 2017 – AGMS 2022

Djamari Chaniago Independent Commissioner

AGMS May 13, 2016 – April 30, 2018

Wahyu Hidayat Commissioner AGMS March 25, 2016 – AGMS 2019

Sony Subrata Commissioner EO-GMS January 23, 2015 – GMS 2020

Astera Primanto Bhakti Commissioner AGMS March 31, 2017 – AGMS 2022

Hambra Commissioner AGMS May 13, 2016 – April 30, 2018



The Board of Commissioners (Persero) Tbk, from April 30, 2018 until the end of the 2018 Fiscal Year is:

Composition of the Board of Commissioners 30 April 2018 –31 December 2018

Name Position Tenure

Letjen TNI (Purn) Sutiyoso President Commissioner AGMS March 31, 2017 – AGMS 2022

Nasaruddin Umar Independent Commissioner AGMS March 31, 2017 – AGMS 2022

M. Choliq Independent Commissioner AGMS April 30, 2018 – AGMS 2023

Wahyu Hidayat Commissioner AGMS March 25, 2016 – AGMS 2019

Sony Subrata Commissioner EO-GMS January 23, 2015 – GMS 2020

Astera Primanto Bhakti Commissioner AGMS March 31, 2017 – AGMS 2022

Hendrika Nora O. Sinaga Commissioner AGMS April 30, 2018 – AGMS 2023

WORKING MECHANISM OF THE

BOARD OF COMMISSIONERSTo assist the Board of Commissioners in carrying out the supervisory duties mentioned above, the Board of Commissioners is assisted by Committees, and a Secretary of the Board of Commissioners.

In carrying out effective supervisory duties, the Board of Commissioners established 3 (three) Committees, namely the Audit Committee; Strategy, Risk Management and Investment Committee (SRMIC), as well as the Nomination and Remuneration Committee (NRC). The membership of the Committee is divided into two types, namely Chairman and Members, who comes from the Board of Commissioners and non-Board of Commissioners members (professional). Non-Commissioner committee members consist of 2 people for each Committee, who come from experienced professionals. The Secretary of the Board of Commissioners works full time, and comes from experienced professionals.

In providing advice and recommendations to the Board of Directors and the treatment of stakeholders, the Board of Commissioners shall be guided by the following principles:• The Board of Commissioners supervises

management policies, both regarding the Company and the Company’s business and provides advice to the Directors in carrying out the management of the Company.

• The policy is based on good faith, prudence and a sense of responsibility and is aimed at the interests of the Company and in accordance with the purposes and objectives of the Company.

• Policies are made based on the principles of Good Corporate Governance (GCG).

• Policy is based on objectivity and on a fair and consistent treatment on data and information submitted by the Board of Directors to the Board of Commissioners.

BOARD OF COMMISSIONERS’

BOARD MANUALAs part of improving the quality of GCG best practices, in carrying out the supervisory and advisory duties to the BOD, the Board of Commissioners has a Board Manual, which is used as a reference and work guide.

The Board of Commissioners’ Manual includes:• Function of the Board of Commissioners• Statement of the Board of Commissioners• Membership of the Board of Commissioners• President Commissioner• Independent Commissioner• Ethics of the Position of the Board of

Commissioners• Duties and Authorities of the Board of

Commissioners• Decision Making by the Board of Commissioners• Accountability of the Board of Commissioners



Concurrent Position of BOC

Name Position Concurrent Position

Letjen TNI (Purn) Sutiyoso President Commissioner -

Nasaruddin Umar Independent Commissioner Grand Imam of Istiqlal/Professor of UIN Syarif Hidayatullah

M. Choliq Independent Commissioner -

Wahyu Hidayat Commissioner Commissioner of PT Multi Bintang Indonesia

Sony Subrata Commissioner Commissioner of PT Arwuda Indonesia, Commissioner of PT Tridaya Nusantara

Astera Primanto Bhakti Commissioner Director General of Financial Balance of the Ministry of Finance

Hendrika Nora O. Sinaga Commissioner Assistant Deputy for Energy, Logistics, Region and Tourism I Ministry of BUMN.

BOARD OF COMMISSIONERS TRAINING PROGRAMSTraining Participant Date and Place Organizer

The 3rd International Leadership Seminar Wahyu Hidayat 7-9 March 2018, Bali BI Institute

The Persona GLOBAL® 40th International Conference Wahyu Hidayat 30 August – 3 September 2018,

Spanyol Persona Global

Pendidikan Product Knowledge Distributor 2018

Wahyu Hidayat, Nasaruddin Umar

4 – 12 December 2018 and 9-17 December 2018, Canada Semen Indonesia

CRITERIA FOR MEMBERS OF THE BOARD OF COMMISSIONERSThe requirements of the Board of Commissioners are explained in the Company’s Manual Board, which confirms the general and special requirements, including:• Never serve as Director or Member of the Board

of Commissioners found guilty of causing a company bankrupt within 5 years prior to his appointment.

• Never been convicted of criminal offense in the financial sector within 5 years prior to his appointment

• Not an administrator of political parties and/or legislative candidate

• Currently, not occupying a position that has the potential to cause a conflict of interest with the Company or is willing to resign if elected as a Member of the Board of Commissioners

• Adequate knowledge in the Company’s Business Field

• Ability to carry out strategic supervision in the context of developing the Company

• Understanding the Company’s management problems related to one of the management functions

INTRODUCTION PROGRAM FOR NEW COMMISSIONER Given the various background of the members of the Board of Commissioners, the Company provides introduction program to provide an overview of the Company’s business activities and matters that are the responsibility of the Board of Commissioners. The introductory program includes:1. Rules

a. Mechanism of Governance of the Board of Commissioners & Directors

b. Articles of Association of PT Semen Indonesia (Persero) Tbk.

c. Law No. 40 of 2007 on Limited Liability Companies

d. FSA regulations on the Board of Commissioners and the Board of Commissioners’ Organ.

e. Minister of SOE Regulation No.: PER-01/MBU/2011 on Implementation of Good Corporate Governance in State-Owned Enterprises as amended by SOE Minister Regulation No. PER-09/MBU/2012.

f. Board Manual, GCG Guidelines, Corporate Culture, Code of Ethics.



2. Strategic Documentsa. Vision and Long-Term Plan of Semen

Indonesia.b. RKAP.c. Work Program and Directive from the Board

of Commissioners.d. Meetings (Mechanism, Schedule, Agenda).e. Board of Commissioners Supervision Report.f. The 2016 Semen Indonesia Financial Report

(audited), Annual Report 2016.3. Remuneration of the Board of Commissioners Board of Commissioners’ Decree:

a. No. 004/SI/Kep.DK/04.2014 on the Remuneration of the Board of Commissioners of PT Semen Indonesia (Persero) Tbk in 2014.

4. Organizational Structurea. Resolution of the Annual GMS, April 30, 2018b. Board of Commissioners, Committee and

Secretariat

INDEPENDENCE OF THE BOARD OF

COMMISSIONERSAll members of the Board of Commissioners shall act independently, free from intervention of any party. The last board of management of the Company has, at least, two Independent Commissioners from a total of seven commissioners, or 30% of the total members, which means that they have complied with the applicable laws and regulations. The Independent Commissioner of the Company has never had any business relationship or affiliation and family relations with members of the Board of Directors or other members of the Commission up to the third degree relationship, either in a straight line or sideways line or a seminal relationship. Thus, the Board of Commissioners can act independently in making decisions.

The Board of Commissioners’ independency commitments have been substantiated by means of the “Statement Letter” signed by every member of Board of Commissioners on stamp duty. The “Statement” contains the following statement:1. Having good character, morals and integrity.2. Legally competent.3. Within 5 (five) years prior to appointment and

during the term of office:a. Never have been declared bankrupt;b. Never have once found guilty for causing a

company to be declared bankrupt on their period of serving as a member of Board of Directors and/or Board of Commissioners;

c. Never have once been convicted of a crime that is detrimental to state finances and/or related to the financial sector;

d. Never have served as a member of the Board of Directors and/or members of the Board of Commissioners during term of office that√ Never held a AGMS√ The accountabilities, as a member of the

Board of Directors and/or members of the Board of Commissioners, has ever been rejected by the AGMS or has never provided accountability, as a member of the Board of Directors and/or members of the Board of Commissioners, to the General Meeting of Shareholders

√ Never have caused a company, which has a license, approval or registration from the Financial Services Authority, not fulfilling its obligation to submit annual report and/or financial report to the Financial Services Authority

4. Having the commitment to comply with the legislation;

5. Having knowledge and/or expertise in the discipline required by PT Semen Indonesia (Limited) Tbk (“Company”).

6. Not an individual working for the Company, or having the authority and responsibility to plan, lead, control or oversee the Company’s operations, within the last 6 (six) months, except for re-appointment as an Independent Commissioner of the Company for a subsequent term of office.

7. Do not own the Company’s shares both directly or indirectly;

8. Do not affiliate with the Company, members of the Board of Commissioners, and members of the Board of Directors or major shareholders of the Company;

9. Do not have any business relationship, whether directly or indirectly, with the Company.

In 2018, all members of the Board of Commissioners have signed the “Statement Letter.”

BOARD OF COMMISSIONERS RECOMMENDATIONS

In line with the Board of Commissioners duties, that is supervising the Company’s management policies and providing advise to the directors, for the benefit of the company and in accordance with the company’s purpose and objectives, in 2017 the Board of Commissioners provides some guidance, as follows:1. The Board of Directors and management of the

Company are required to pay special attention in seeking cost efficiency and increasing income through the following measures:



• Conduct a thorough evaluation and maximum efficiency effort on the Company’s key cost components, particularly energy and logistics-related costs, so that the Company’s operating costs can grow lower than the Company’s revenue growth.

• Intensively plan and implement ‘cement related’ and ‘non-cement related’ business development that will support the improvement of the Company’s consolidated revenue, and seek synergies with SOEs.

• Strengthening operational synergies in terms of management efficiency on product allocation, Inter-Company Sales (ICS), and export/import centralized in Holding Enterprises.

• Increase productivity of production facilities in Semen Indonesia Group, among others through production system standardization.

• Increase research and development activities to support the company’s efficiency and competitiveness in the fileds of energy, fuel, raw materials, packaging, AFR (Alternative Fuel & Raw Material), environment, quality, product and product applications.

• Strengthen distribution channels to expand network and market penetration, by implementing and integrating Supply Chain Management (SCM) and Customer Relationship Management (CRM).

• Improving Semen Indonesia Group (SMIG) internal capabilities in offering complete cement solutions to meet the customer needs.

• Start to include financial performance targets from noncement business clusters in the proposed Work and Budget Plan in the coming year 2018.

2. For sustainable growth the Board of Commissioners has directed the Board of Directors to further enhance:• Leadership and Human Resources

√ The Company should emphasize the importance of leadership strategy to continue the Company’s commitment in creating future leaders.

√ The Company also needs to accelerate the human resources development capacity in line with business development, and ensure that each individual in the Company is qualified, has integrity, and highly motivated. Always evaluate and refine the company’s “culture”, human resource capacity, and organization in accordance with current conditions.

• Improve the implementation of corporate governance (GCG), in line with best practice according to regional standards. Such improvements should be reflected in GCG-based culture growth in applying the daily tasks. This should be a priority to the Company.

• Social and Environmental Responsibility Program (CSR), should continue to be enhanced as this is critical to the long-term viability of the Company’s business, as well as to society and the environment.

• Improved and reliable ICT implementation in line with the Company’s development in business and organization.

INDEPENDENT COMMISSIONERIndependent Commissioner is a member of the Board of Commissioners that are not affiliated with the Board of Directors, other member of the Board of Commissioners, and controlling shareholders. Also free from business relations or other relations that may influence its capability to act independently or act solely for the Company’s interests.• The mission of Independent Commissioner

is to encourage the creation of an objective environment and fairness in various interests, including the company and stakeholders’ interests as the main principles in decision making by the Board of Commissioners. Several matters related to the Independent Commissioner, are as follows:

• Independent Commissioner has the main responsibility to encourage the implementation of good corporate governance principles in the Company through the Board of Commissioners’ empowerment, so as to achieve effective implementation of supervisory and advisory duties to the Board of Directors, and provide added value to the company.

• The composition of Independent Commissioner consists of at least 30% (thirty per hundred) from the Board of Commissioners’ members.

• In implementing good responsibilities, the Independent Commissioner proactively urges the Board of Commissioners to carry out supervisory and advisory to the Board of Directors related to, but not limited, on the following matters:√ Ensuring of effective corporate business

strategy, including monitoring on schedules, budgets, and effectiveness of the strategy;



√ Assurance on the appointment of professional executives and managers;

√ Ensuring of effective corporate information, control system, and audit system;

√ Assurance of proper identification and management of risks and risks potential;

√ Assurance of proper implementation and compliance on GCG principles and practices;

√ Ensuring of the implementation of corporate supervisory and management are in compliance towards all prevailing regulations

• The Independent Commissioner acts as the Chairman of the Audit Committee

CRITERIA ON DETERMINING INDEPENDENT COMMISSIONERSIn accordance with Indonesian Financial Service Authority Regulation (POJK) No. 33/2014 regarding the Board of Directors and Board of Commissioners of the Issuer or a Public Company, it has been determined that the number of Independent Commissioners shall be at least 30% (thirty percent) of the total members of the Board of Commissioners.

The Company has stipulated Independent Commissioners to be 2 (two) persons or 30% (thirty percent) of the total members of the Board of Commissioners totalling 7 (seven) persons, namely Djamari Chaniago and Nasaruddin Umar.

CRITERIA AND INDEPENDENCY OF INDEPENDENT COMMISSIONERSFSA Independent Criteria Nasaruddin Umar M Choliq

Not a person who is employed or has the authority and responsibility to plan, lead, control or supervise activities of the Issuer or Public Company within the last 6 (six) months

√ √

Has no direct or indirect share ownership at the Issuer/Public Company. √ √

No Affiliation relationship with Issuer or Public Company, member of Board of Commissioners, member of Board of Directors, or major shareholder of Issuer or such Public Company.

√ √

Have no direct or indirect business relationship with the Issuer’s or Public Company’s business activities. √ √

Accordingly, all Independent Commissioners of the Company have met the independence criteria determined by Indonesian Financial Service Authority Regulation (POJK) No. 33/2014 regarding the Board of Directors and Board of Commissioners of the Issuer or a Public Company.

POLICY ON DIVERSITY OF THE BOARD OF COMMISSIONERS The composition of the Board of Commissioners appointed has a diversity of compositions, both in terms of age, gender, work experience and educational background. The diversity of the Board of Commissioners’ composition is as follows:

Name Age Gender Expertise Experience

Letjen TNI (Purn) Sutiyoso

74 years old Male Strategy, Management and Bureaucracy

1. Head of the State Intelligence Agency (2015-2016)2. Governor of DKI Jakarta (2002-2007)3. Governor of DKI Jakarta (1997-2002)

Aster Primanto Bhakti

51 years old Male Finance, Fiscal and Economy

1. Expert Staff of the Minister of Finance for State Revenue Policy (2015-2017)

2. Minister of Finance Expert Staff for State Revenue (2015)

3. Head of the Center for State Revenue Policy - Fiscal Policy Agency (2012-2015)

Nasaruddin Umar

60 years old Male Bureaucracy, Religion and Ethics

1. Deputy Minister of Religion (2012-2014)2. Director General of Islamic Community Guidance,

Ministry of Religion (2006-2012)

Wahyu Hidayat

65 years old Male Economics, Strategic Planning, Bureaucracy

1. Deputy for Restructuring and Strategic Planning, Ministry of BUMN (2013-2014)

2. Commissioner at Bank Mandiri (Persero) Tbk (2012-2014)

3. Secretary of the Ministry of BUMN (2012-2013)



Name Age Gender Expertise Experience

Sony Subrata 53 years old Male Business Management and Marketing

1. President Director of PT Adiriasindo (1995)2. Independent Commissioner of PT Ciputa Surya Tbk

(1999-2003)3. General Chairman of the Nation Foundation

(1997-1999)

M. Choliq 67 years old Male Construction Industry Business Management

1. President Director of PT Waskita Karya (2008-2018)

2. Director of PT Adhi Karya (2001-2006)

Hendrika Nora O. Sinaga

49 years old Female Business Management

1. Commissioner of PT Perusahaan Gas Negara (Persero) Tbk (2016-2018)

2. Commissioner of PT Pengelola Aset Negara (Persero) Tbk (2014-2016)

3. Commissioner of PT BTDC (Persero) (2011-2014)

BOARD OF DIRECTORSThe Board of Directors is the Organ of the Company that carries out the task of managing the Company in the interests of the company, in accordance with the purposes and objectives of the Company, and representing the Company both inside and outside the court, with due observance of applicable laws, Articles of Association and GMS Decisions.

The position of each member of the Board of Directors, including the President Director, is equivalent, with the President Director coordinating all activities of the Board of Directors. The Board of Directors can make decisions, including at the Board of Directors’ meetings, and carry out these decisions in accordance with the division of tasks and authorities, however collegial responsibilities remain in force. Actions taken by members of the Board of Directors outside of those decided by the Board of Directors Meeting are the personal responsibility of the person concerned until the action is approved by the Board of Directors meeting.

DUTIES AND AUTHORITIES OF DIRECTORSIn accordance with the articles of association, the Board of Directors carries out the management function to lead and manage the Company in accordance with the intended goals and objectives, namely:

• Maintaining and managing the Company’s assets;• Managing in good faith and prudential principles

for the interests of and in accordance with the purposes and objectives of the Company;

• Avoiding conflicts of interest, directly or indirectly, over management actions that can result in corporate losses;

• Take actions to prevent the loss or continuation of the company’s losses;

• May not represent the Company if the person has a conflict of interest with the Company;

• Basically the Board of Directors works collegially, with the decision of each member of the Board of Directors a decision of the Board of Directors.

Each member of the Board of Directors can implement and make decisions in accordance with the division of duties and authorities, however collegial responsibilities remain valid.

The management functions of the Company carried out by the Board of Directors include 5 (five) main duties, namely:• Management The Board of Directors prepares the vision,

mission and values of the company, short and long term programs, controls resources effectively and efficiently, takes into account the interests of minority shareholders appropriately and has clear work procedures and guidelines.

• Risk Management The Board of Directors prepares and implements

risk management that covers all aspects of the Company’s operations

• Internal Control The Board of Directors sets up an internal control

unit to monitor and prevent fraud and failure to implement the Company’s strategy.

• Communication The Board of Directors ensures smooth internal

or inter-section communication and externally with stakeholders.

• Social Responsibility The Board of Directors also prepares and

ensures the company carries out corporate social responsibility activities, in accordance with applicable laws and regulations.



In addition to the above functions, the Board of Directors is also tasked with ensuring that information related to the responsibilities of the Directorate of each section is always available to the Board of Commissioners.

The Board of Directors must prepare an Annual Report that includes Financial Reports, Company Performance reports, reports on the implementation of Social and Environmental Responsibility, details of problems that arise during the relevant financial year. The Annual Report is requested for approval from the GMS and the Financial Report is requested for ratification from the GMS.

The duties and authority of the Board of Directors include:• The Board of Directors is fully responsible for

carrying out tasks for the benefit of the Company. The main duties of the Board of Directors are: (a) to lead and manage the Company in accordance with the purposes and objectives of the Company; and (b) maintaining and managing the Company’s assets.

• The Board of Directors is responsible for formulating and defining corporate vision, mission and values as well as the Company’s Long Term Plan (RJPP) and Corporate Work Plan and Budget (RKAP), after discussion and obtaining approval from the Board of Commissioners and GMS.

• Each member of the Board of Directors must in good faith and responsibly carry out their duties and act in accordance with the provisions in the Articles of Association, decisions taken in the GMS, Long Term Plans (RJP), Corporate Work Plans and Budgets (RKAP) and Regulations The legislation that applies is based on the principles of GCG.

DUTY OF EACH DIRECTORDetails of the duties of each member of the Board of Directors include the following:• President Director Coordinating other members of the Board of

Directors, so that all activities run according to the vision, mission, business objectives, strategies, policies and work programs. Specifically, the President Director is responsible for aligning all the Company’s strategic initiatives, coordinating operational duties of internal audit, human resources, communication, ensuring compliance with laws and regulations and coordinating risk management and company development. In addition, it also controls and evaluates the application of GCG principles and ethical standards consistently within the Company.

• Director of Finance Responsible for coordinating, controlling

and evaluating operational duties in finance, budgeting, accounting, ensuring the provision of funding for the development of the Company and information technology systems.

• Director of Marketing & Supply Chain Responsible for sales, distribution and

transportation as well as marketing development. • Director of Production Responsible for coordinating, controlling and

evaluating the implementation of operational duties in the fields of raw material production, slag production, cement production and engineering, work safety, environment and developing production process efficiency programs.

• Director of Engineering & Project Responsible for coordinating, controlling and

evaluating the implementation of operational duties in the fields of procurement and management of inventory, design, and research & development and maintaining product quality assurance.

• Director of Human Resources & Law Responsible for coordinating, controlling and

evaluating the implementation of operational duties on the field of Human Resources, managing Company assets and company compliance with applicable Regulations & Legislation as well as implementing risk management in the Company.

• Director of Business Strategy and Business Development

Responsible for coordinating, controlling and evaluating the implementation of operational duties on the field of strategy and business development of the company, management of the capital investment strategy, group energy development and safeguarding of raw materials.

JOINT AND SEVERAL LIABILITIES OF THE BOARD OF DIRECTORSThe policy taken by the Board of Directors can be in the form of a policy taken through a board of directors meeting, or it can also be a policy taken individually without the said meeting. Actions taken by members of the Board of Directors outside of those decided by the Board of Directors Meeting are the personal responsibility of the person concerned until the action is approved by the Board of Directors meeting.



Each member of the Board of Directors is fully responsible,

personally and jointly and severally for the loss of the

Company, if the person concerned is guilty or negligent

in carrying out his duties in accordance with the provisions

of the legislation.

BOARD OF DIRECTORS WORK GUIDELINES

In carrying out the roles and functions of managing the company and managing relations with the Board of Commissioners, the Board of Directors refers to the Board of Commissioners and Board of Directors Work Guidelines (Manual Board). The Board of Directors’ Charter and Code of Conduct in the Company’s Manual Board regulates: • Functions of the Board of Directors• Requirements for Directors• Membership of the Board of Directors• Composition and Independence of Directors• Ethics of Directors’ Position• Duties and Authorities of the Board of Directors• Division of Duties of Directors• Decision Making by the Board of Directors

• Accountability of the Board of Directors• Evaluation of Directors’ Performance• Orientation and Capability Improvement Program

for the Board of Directors

BOARD OF DIRECTORS COMPOSITION AND CHANGES IN BOD PERSONNEL STRUCTUREThe composition of the Board of Directors is determined based on the complexity of the company while taking into account the effectiveness, accuracy and promptness in decision making, and can act independently, in the sense that it does not have a conflict of interest which might interfere with its ability to carry out tasks independently and critically.

In the process of nominating and appointing directors from outside BUMN, efforts must be made to ensure that the opinions of minority shareholders are taken into account as a form of protection against the interests of minority shareholders.

CHANGE IN BOD PERSONNELDuring 2018, there was a change in the composition of BOD personnel. According to the results of the AGMS on April 30, 2018, Mr. Ahyanizzaman was honorably dismissed, and there were assignments from several Directors, and Mr. Adi Munandir as Director, the current composition of the Company’s Board of Directors is as follows:

January 1 - April 29, 2018

Name Position


Fadjar Judisiawan Director of Finance

Doddy Sulasmono Diniawan Director of Business Strategy & Development

Ahyanizzaman Director of Marketing & Supply Chain

Benny Wendry Director of Production

Agung Yunanto Director of HR & Legal

Tri Abdisatrijo Director of Engineering and Projects

April 30 - December 31, 2018

Name Position


Doddy Sulasmono Diniawan Director of Finance

Agung Yunanto Director of HR & Legal

Adi Munandir Director of Marketing & Supply Chain

Fadjar Judisiawan Director of Business Strategy & Development

Tri Abdisatrijo Director of Engineering and Projects

Benny Wendry Director of Production



NOMINATION OF BOD MEMBERSPolicies related to the nomination of the Board of Directors of Semen Indonesia shall refer to the SOE Minister’s Regulation Number PER-03/MBU/02/2015 on Requirements, Procedures for Appointment, and Dismissal of Members of the Board of Directors of State-Owned Enterprises. In the regulation it is stated that the prospective Directors come from:• SOE Directors;• SOE Board of Commissioners/Supervisory Board;• SOE talents proposed through the Board of

Commissioners consist of:- Officials who are one level below the Directors

or officials who have special achievements;- Directors of SOE subsidiaries/SOE joint

ventures. • Ministry SOE talents;• Other sources consisting of:

- Other SOE officials; and- Other sources.

Selection is carried out by the Minister, Secretary of the Minister, Technical Deputy, and/or Deputy seeking candidates by taking into account the following:• Candidates and Talents from SOE, proposed

through the Board of Commissioners/Supervisory Board.

• The Minister, Secretary, Technical Deputy, and/or Deputy may determine prospective candidates from SOE Talent without the proposal of the Board of Commissioners/Supervisory Board if the said person is deemed to have good achievements.

• Candidates and Talents of the Ministry of BUMN, proposed through the Secretary.

• Candidates from the Board of Directors, Board of Commissioners/Supervisory Board, and/or Other Sources can submit applications to or be proposed directly by the Minister, Secretary, Technical Deputy, and/or Deputy.

• Selection of candidates is prioritized from BUMN Talents.

Especially for Public Listed SOE, prospective candidates from SOE Talents must be proposed through the Board of Commissioners. If the Minister views that there are other candidates who have the potential to become members of the Board of Directors, but not included in the list of names proposed by the Board of Commissioners, the Minister can ask the Board of Commissioners to evaluate the person concerned and if they meet the requirements to be proposed to the Minister.

NEW DIRECTORS INTRODUCTION PROGRAM

The Company has a mechanism for the introduction of new members of the Board of Directors, namely through a number of materials:

• Introduction of current Commissioners and Directors

• Implementation of GCG Principles• An overview of the condition of the company• Authority and supporting devices• Legal responsibility of the Board of Directors• Duties and responsibilities of the Board of

Directors• Site visit on OpCo and its subsidiaries

BOARD OF DIRECTORS TRAINING AND DEVELOPMENT PROGRAM

To improve competence and support the implementation of the duties of the Board of Directors during 2018, the members of the Company’s Board of Directors have participated in various training programs, workshops, conferences and seminars.

The list of training and competency development for each member of the Director is included in their respective CVs, as stated in the Company Profile Chapter. The following is a list of several training programs attended by the Company’s Directors.• Corporate Governance Workshop• ABAC - APEC Economic Leaders Summit• Strategic Business Alignment• Global Digital Leader Executive Development

Program• Corporate Work Plan & Budget Workshop• Corporate Strategic Alignment of Semen

Indonesia Group• AFCM Technical Symposium• Driving Profitable Growth• Expand Leadership Program• MIT Management

CONCURRENT POSITIONS OF THE BOARD OF DIRECTORS

Based on the Articles of Association of the Company and the Work Guidelines of the Board of Commissioners and Directors, members of the Board of Directors are not permitted to concurrently hold positions in management and supervision of similar companies, except supervisory positions in subsidiaries. For concurrent positions of Directors and exceptions, approval from the Board of Commissioners is required, which is then reported at the GMS.

CONFLICT OF INTERESTIn carrying out its duties, the Company’s Directors are bound by corporate governance and applicable ethical standards. In addition, the Board of Commissioners whose task is to supervise and provide advice, always oversees the course of business activities carried out by the Board of



Directors, including all decisions made. As such, the Company guarantees that all decisions issued by the Board of Directors have no conflict of interest.

POLICY ON THE DIVERSITY OF THE COMPOSITION OF THE BOARD OF DIRECTORS

The Company has a policy to consider the background of the experience and competencies of each candidate for the Board of Directors. The policy regarding the composition requirements of the members of the Board of Directors refers to the provisions of the Minister of BUMN Regulation No. Per-16/MBU/2012 concerning the Second Amendment to the BUMN Regulation No. Per-01/MBU/2012 concerning Requirements and Procedures for Appointment and Dismissal of Board of Commissioners and Board of Directors Members State-Owned Enterprises.

The composition of the Board of Directors currently in charge is varied, in terms of age, gender, work experience and educational background, in accordance with the intended provisions and policies. The diversity of the composition of the Company’s Directors is as follows:

Name Age Gender Expertise Work Experience

Hendi Prio Santoso

52 years old

Male Finance, Business Strategy, Strategic Management

1. President Director of PT Perusahaan Gas Negara (Persero) Tbk (2008-June 2017)

2. Director of Finance of PT Perusahaan Gas Negara (Persero) Tbk (2007-2008)

3. Director of Investment Banking of PT JP Morgan Securities Indonesia (2004-2007)

Adi Munandir

38 years old

Male Finance, Business Strategy, Marketing

1. Group Head of PT PGN Tbk.(2016-Now) 2. Head of Strategic Management Division of PT PGN Tbk.

(2015-2016) 3. Executive Officer - Strategic Management Office

of PT PGN Tbk. (2013-2015)4. President Commissioner of PT Solusi Energy Nusantara5. Commissioner of PT Nusantara Regas

Agung Yunanto

57 years old

Male Corporate Management, Legal, Engineering

1. Director of Human Capital of PT Wijaya Karya Beton (2017)

2. General Manager Human Capital of PT Wijaya Karya (2014 -2017)

3. President Commissioner of PT Jasa Marga Surabaya Mojokerto (2013 - 2017)

Benny Wendry

50 years old

Male Corporate Management, Chemical Engineering, Commercial

1. President Director of PT Semen Padang (November 2014 – 2017)

2. Director of Finance of PT Semen Padang (Juli 2014 – October 2014)

3. Director of Commercial of PT Semen Padang (June 2011 - 2014)

Tri Abdisatrijo

52 years old

Male Chemical Engineering, Energy and Environment, Project Development

1. Director of Commercial of PT Semen Tonasa (July 2014 - 2017)

2. Head of Energy, Material and Environment Department of PT Semen Indonesia (Persero) Tbk (February - July 2014)

3. GM Project Specialist OOTC of PT Semen Indonesia (Persero) Tbk (2013 - 2014)

Fadjar Judisiawan

48 years old

Male Finance, Services

1. Acting Deputy in Construction Business, Transportation Facilities and Infrastructure, Ministry of SOE (2017)

2. Assistant Deputy in Construction Business, Transportation Facilities and Infrastructure, Ministry of SOE (2015-2017)

3. Assistant Deputy in Construction Services, Ministry of SOE (2014-2015)

Doddy Sulasmono Diniawan

52 years old

Male Business Development Management, Economics, Commercial

1. Director of Finance and Human Resources of PT Rekayasa Industri (April 2016-2017)

2. Executive Vice President-CEO Jakarta Kota Region Office PT Bank Negara Indonesia (Persero) Tbk. (January-March 2016)

3. Executive Vice President-Division Head of Corporate Business Risk PT Bank Negara Indonesia (Persero) Tbk. (June-December 2015)



REMUNERATION POLICY FOR BOARD OF COMMISSIONERS AND DIRECTORSProposal for the Board of Directors Remuneration Determination ProcedureThe amount of remuneration for members of the Board of Commissioners is to be determined in the AGMS along with the remuneration for the Board of Directors. The amount of remuneration for the Board of Commissioners members is to be proposed during AGMS, based on the performance of the Board of Commissioners according to the assessment results and recommendations of the Nomination and Remuneration Committee (NRC).

In compiling the basis for establishing and recommending credible remuneration amounts, the NRC commissions an independent consultant. Having solid market survey database of companies with similar business and the size and taking into consideration NRC directives, independent consultants set up several key factors in proposing the amount of Commissioners’ remuneration.

The Board of Commissioners receives a fixed, variable remuneration consisting of honorarium, allowances, and other benefits paid/given monthly, and bonuses as annual performance incentives, the amount recommended by the Nomination and Remuneration Committee, and decided by the shareholders in the AGMS.

A brief illustration of Remuneration Stipulation Procedures of the Board of Commissioners is provided in below chart:

NRC

• Stipulating inputs of Independent Consultant in determining the remuneration basic stipulation

• Inputs from Independent Consultant based on: - SOE Ministry Regulation No. PER-04/MBU/2014 dated March 10, 2014 - SOE Ministry Regulation No. PER-02/MBU/06/2016 dated June 20. 2016 - Remuneration survey of peers industry - Success in risk mitigation - The Company’s capability, competence and experience

NRC • Propose the Remuneration basic and amount to the Board of Commissioners (BOC)

BOC • Discuss the NRC recommendation and propose the remuneration amount to the GMS

GMS • Delegating the stipulation on honorarium and tantiem implementation to the Board of GMS Commissioners following the approval of Shareholders Series A.

- • Honorarium and tantiem for the Board of Commissioners and the Board of Directors

Remuneration Structure of Each Member of the Board of CommissionersThe remuneration of Commissioner can be different in line with the duty and responsibility of each Commissioner. Total remunerations received by the Board of Commissioners’ members are reported to the GMS. The amount of tantiem provided to the Board of Commissioners and Directors’ members are stipulated based on the Company’s performance and KPI achievements of the Board of Commissioners and Directors.

The remuneration stipulation refers to the Regulation of SOE State Minister No. PER-04/MBU/2014 concerning the Guidelines of Remuneration Stipulation of the Board of Directors, Board of Commissioners, and Supervisory Board of SOE and Regulation of SOE State Minister No. PER-02/MBU/06/2016 dated June 20, 2016 on changes in the Regulation of SOE State Minister No. PER-04/MBU/2014 concerning the Guidelines of Remuneration Stipulation of the



Board of Directors, Board of Commissioners, and Supervisory Board of SOE Based on this Regulation, the principles of remuneration stipulation of the Board of Commissioners is set out by the GMS, with the following components:

a. Salary/Honorarium;b. Allowances;c. Facilities; andd. Tantiem/Performance Incentives.

The remuneration given to each member of the Board of Commissioners shall be conducted based on decision of the Annual General Meeting of Shareholders and the Extraordinary General Meeting of Shareholders of the fiscal year 2017.

Remuneration of the Board of CommissionersIn 2018, The remuneration amount of the Board ofCommissioners which consists of Honorarium, Locality of Assignment Allowances, Religious Idul Fitri Allowances, Tantiem 2017 and Tax Allowances are as follows:

Remuneration and Other Facilities

Amount Received in One Year

Number of people Rp Million

Remuneration

Salary/Honorarium * 9 7.329

Transportation Allowance * 9 1.465

Holiday allowance 7 619

Tantiem** 10 13.860

Other Facilities in the Form of Natura

Housing (Cannot be owned) 0 0

Transportation (Cannot be owned)

0 0

Full Position Insurance (Cannot be owned)

5 1.071

Health Insurance (Cannot be owned)

0 0

Remunerations in one year grouped in the range of income levels are as follows:

Income Levels Total BOC

Above Rp2 Billion 7

Above Rp1 Billion-Rp2 Billion 2

Above Rp300 Million - Rp1 Billion 0

Below Rp300 Million 0

Notes:•) Including Commissioners whose term of office ends on April 30,

2018••) Including Commissioners who served in 2017

The Basis of Policy and Procedure for Determining BOD RemunerationThe basis of the policy on the remuneration for the Board of Directors is the same as the basis of the on the remuneration policy for the Board of Commissioners. The amount of remuneration for the Board of Directors is set every year at the GMS. (see also “Determination of Commissioner Remuneration”). The review of the amount of remuneration is carried out by an independent consultant who already has experience, has a strong database in handling companies of the same class as the Company. The amount of remuneration for the Board of Directors is determined by taking into account the applicable provisions.

The remuneration of the Board of Directors is based on the target of achieving profit, the ability to maintain the sustainability and development of the Company’s business.

The concise procedure for determining the remuneration of the Board of Directors in 2018 is as follows:• The Remuneration and Nomination Committee

requests an independent consultant to review the remuneration in 2018 for members of the Board of Directors.

• Independent consultants develop basic criteria for remuneration determination by taking into account Regulation of the Minister of SOE No. PER-02/MBU/ 06/2016 concerning Amendments to the Regulation of the Minister of SOE No. PER-04/MBU/2014 and Regulation of the Minister of SOE No. PER-01/MBU/06 2017 concerning the Second Amendment to the Regulation of the Minister of SOE No. PER-04/MBU/2014, remuneration surveys in companies of the same class, and formulating recommendations for complete remuneration proposals on the basis of consideration and alternatives to the Nomination Committee and Remuneration.

• The Nomination and Remuneration Committee prepares remuneration recommendations for members of the Board of Directors in 2018 taking into account the results of studies conducted by an independent consultant to the Board of Commissioners, complete with the basis of consideration.

• The Board of Commissioners discusses the proposal of the Nomination and Remuneration Committee, then determines the proposed remuneration for the Board of Directors in 2018 to be submitted to the majority shareholders.

• The GMS stipulates to give authority and power to the Board of Commissioners by first obtaining the approval of the majority shareholders to determine the amount of the 2017 financial year



tantiem, and determine the salary/honorarium, allowances and facilities for the Board of Directors and Board of Commissioners for 2018.

• Regulation of the Minister of SOE No.PER-06/MBU/06/2018 concerning Third Amendment to Minister of State-Owned Enterprises Regulation No. PER-04/MBU/2014 concerning Guidelines for Determining Income of Directors, Board of Commissioners and Supervisory Board of State-Owned Enterprises.

A brief chart of the procedure for determining the remuneration of the Board of Directors is as follows:

NRC • Propose the basis and amount of remuneration to the Board of Commissioners

NRC • Request input from an independent consultant in determining the basis for remuneration

BOC • Discuss the KNR proposal and propose the amount of remuneration to the General Meeting of Shareholders

GMS • Determine the amount of Directors’ salaries in 2018 and tantiem in 2017

- • Salaries and bonuses for members of the Board of Directors

Indicators for the Determination of RemunerationThe Company, through the Board of Commissioners, takes five key factors into consideration in determining the proposed remuneration of the Board of Directors, as follows:• Compensation to cover the costs required to run

the business;• Acknowledge the competencies and experiences

held and required by the Company;• The availability of time in devoting the energy

and efforts to perform the duties borne by the Company;

• The ability to mitigate Company’s risks and to compensate for the act of service that might pose personal risks.

• Acknowledge the achievement of targets according to the key performance indicator laid down.

Amount and Components of RemunerationDirectors receive both fixed and non-fixed remuneration which includes salary, benefits, bonuses and facilities and other benefits. The amount of which is recommended by the Nomination and Remuneration Committee and the Commissioner to be decided at the GMS. The tantiem amount given is in accordance with the Company’s performance and the achievement of the KPI of the Board of Directors. The details of the remuneration received by all

members of the Board of Directors are reported in the GMS.

Remuneration of members of the Board of Directors is determined based on the balance between the duties, responsibilities and performance of each member

Determination of the remuneration of the Board of Directors refers to the provisions stipulated in the Minister of State-Owned Enterprises Regulation Number: PER-04/ MBU/2014 on Guidelines for Determining Income of the Board of Directors, Board of Commissioners and Supervisory Board as amended by the Regulation of the Minister of BUMN No. PER-02/MBU/06/2016, SOE Minister Regulation No. PER-01/MBU/06 2017 and SOE Minister Regulation No. PER-06/MBU/06/2018.

Based on the Ministerial Regulation, the principle of determining Directors’ income is determined by the General Meeting of Shareholders (GMS). The structure of income components of the Board of Directors consist of short-term, post-employment and/or long-term fees which include:



• The Director’s salary is set at 85% of the President Director

• Directors’ Allowances• Directors’ facilities• Tantiem or Performance Incentives

Provision of remuneration to each member of the Board of Commissioners is carried out based on the results of the Annual GMS and EGMS for 2018.

Amount of Remuneration for the Board of DirectorsIn 2018, the total remuneration of the Board of Directors consisting of Honorarium, Location Allowance, THR, 2018 Tantiem, and Tax Allowances are as follows:

Remuneration and Other Facilities

Total RemunerationsReceived in One Year

Number ofPersons Rp Million

Remuneration

Salary/Honorarium* 8 15.667

Housing Allowances * 8 2.312

Religious Holiday allowance 7 1.305

Tantiem** 13 30.080

Other Facilities in the Form of Natura

Housing (Can not be Owned)

0

Transportation (Can not be Owned)

0

Post Service insurance (Can be Owned)

4 3.291

Healthcare Facilities (Can not be Owned)

0

Remunerations in one year grouped in the range of income levels are as follows:

Remuneration Amount Total Number of BOD

Above Rp2 Billion 8

Between Rp1 Billion-Rp2 Billion 0

Between Rp300 million - Rp1 Billion * 0

Below Rp300 million 0

Notes:•) Including Board of Directors whose term ends on April 30, 2018••) Including Board of Directors who served in 2017

MEETINGS OF BOARD OF COMMISSIONERS, BOARD OF DIRECTORS, AND JOINT MEETINGSBOARD OF COMMISSIONERS MEETINGSDuring 2018, the Board of Commissioners held 11 meetings with the following details:

DateParticipant

AgendaBOC Member of the

CommitteeJanuary 17, 2018

· Sutiyoso· Nasaruddin Umar· Wahyu Hidayat· Hambra

· Sahat Pardede· Elok Tresnaningsih· MZ. Abidin· Syafrizal· Harini Agustina· Ninda E. Djohaeri

a. Performance Evaluation & Capex as of Dec 2017b. Proposed Limits of the Authority of the Board of

Directors and the Board of Commissioners.c. And others

February 20, 2018

· Sutiyoso· Wahyu Hidayat· Sony Subrata


a. Evaluation of Company Performance & Capex as of January 2018.

b. Progress of Finalizing the Financial Statements of PT SI (Audited).

c. Report of the Board of Directors on the Development of New Organizations (inviting the Managing Director & Dir SDM).

d. And others



DateParticipant

AgendaBOC Member of the

CommitteeMarch 20, 2018

· Sutiyoso· Nasaruddin Umar· Wahyu Hidayat· Astera Primanto

Bhakti


a. Evaluation of Company Performance & Capex as of February 2018.

b. Approval of Authority Limits.c. Progress of Election of External Auditorsd. (Closed - invites Dir SDM & Hay Consultant) -

Presentation of Remuneration Consultants

April 18, 2018 · Sutiyoso· Nasaruddin Umar· Djamari Chaniago· Wahyu Hidayat· Sony Subrata· Astera Primanto

Bhakti


a. Evaluation of Company Performance & Capex as of March 2018.

b. Preparation of Agenda for the 2018 AGM.• Proposed Determination of KAP by KA.• Proposed BOC-BOD Remuneration by the NRC

(closed)

May 21, 2018 · Sutiyoso· Nasaruddin Umar· M. Choliq· Wahyu Hidayat· Astera Primanto

Bhakti· Hendrika Nora O.

Sinaga

· Sahat Pardede· Elok Tresnaningsih· MZ. Abidin· Syafrizal· Harini Agustina· Irham Dilmy· Ninda E. Djohaeri

a. New Commissioner Introduction Program, results of the AGMS April 30, 2018.

b. Evaluation of Company Performance & Capex as of April 2018.

c. Determination of Members of Committees in the Decree of the Environment

d. And others.

June 29, 2018 -- -- --

July 23, 2018 · Sutiyoso· Nasaruddin Umar· M. Choliq· Wahyu Hidayat· Sony Subrata· Astera Primanto


Sinaga

· Elok Tresnaningsih· Syafrizal· Irham Dilmy· Ninda E. Djohaeri

a. Company Performance Report Semester 1-2018.b. Follow-up to the April 30 2018 GMS Decision related to

PT SI and Subsidiaries' PKBL Financial Statements.c. And others

August 28, 2018

· Sutiyoso· Nasaruddin Umar· M. Choliq· Wahyu Hidayat· Sony Subrata· Astera Primanto


Sinaga

· Elok Tresnaningsih· MZ. Abidin· Syafrizal· Irham Dilmy· Ninda E. Djohaeri

a. Performance Evaluation & Corporate Capex in July 2018.b. Etc.

September 25, 2018



Sinaga

· Elok Tresnaningsih· MZ. Abidin· Syafrizal· Harini Agustina· Irham Dilmy· Ninda E. Djohaeri

a. Company Performance Report as of August 2018.b. The follow up of Semester I-2018 Performance Evaluation

by Series A Dwiwarna Shareholders.c. Audit Committee Report.

• Audit Progress as decided by the AGMS April 30, 2018.• Whistleblowers

October 23, 2018

· Sutiyoso· M. Choliq· Wahyu Hidayat· Hendrika Nora O.

Sinaga

· Elok Tresnaningsih· MZ. Abidin· Syafrizal· Ninda E. Djohaeri

a. Performance Evaluation & Corporate Capex as of September 2018.

b. And others.

November 21, 2018

· Sutiyoso· Nasaruddin Umar· Wahyu Hidayat· Astera Primanto


Sinaga


a. Evaluation of Corporate Performance & Capex as of October 2018

b. Audit Supervision Progressc. Preliminary Exposure of 2019 RKAPd. Revision of 2018 RKAP (due to Corporate Action)e. And others

December 21, 2018



Sinaga


a. Company Performance Evaluation & Capex per November 2018;

b. 2019 RKAP;c. And others Organizational Change of PT Semen Indonesia (Persero)

Tbk



Level of Attendance

No. Name Position PeriodNumber of Meeting and % Attendance Total

Meeting 2018

BOC Intl. % BOC

BOD % Special %

1 Sutiyoso President Commissioner

Jan – Dec 2018 11 100% 12 100% 4 100% 27

2 Nasaruddin Umar

Independent Commissioner

Jan – Dec 2018 8 73% 9 75% 3 75% 20

3 M. Choliq Independent Commissioner

Apr – Dec 2018 5 71% 6 75% 3 100% 14

4 Wahyu Hidayat Commissioner Jan – Dec

2018 11 100% 12 100% 3 75% 26

5 Sony Subrata Commissioner Jan – Dec

2018 4 36% 5 42% 2 50% 11

6Astera Primanto Bhakti

Commissioner Jan – Dec 2018 6 55% 10 83% 3 75% 19

7Hendrika Nora O. Sinaga

Commissioner Apr – Dec 2018 6 86% 6 75% 3 100% 15

8 Hambra 1) Commissioner Jan – Apr 2018 2 50% 2 50% 0 0% 4

1) Ended at the AGMS on April 30, 2018

BOARD OF DIRECTORS MEETINGSDuring 2018, the Board of Directors held 37 meetings. The participants of the Board of Directors Meeting are according to the subject agenda of the meeting.

Agenda and Attendance of Directors’ Corporate Meetings

Month Date Agenda

Attendance

Pre

s D

ir

Dir

Fin

Dir

HR

Dir

HR

Dir

BS&

D

Dir

EP

Dir

Pro

d

January

3 January 2018

1. Mitigation of Changes in Business Models & Structures

2. Limits of the Authority of BOD, BOC, and Series A Dwiwarna

3. Rantus & Scenario of the EGMS of PT SIA

4. Others (AJB)

9 January 2018

1. Follow-up on Insurance Management at AJBB

2. Evaluation of 2017 Performance and Prognosis of First Quarter 2018

3. Others (Financial Management of the Dept. Corp. Office)

16 January 2018

1. Preparation of BOC-BOD (Performance, Contingency Plan & Business Resumption, Authority)

2. AT Kearney (Marketing & Cost Transformation)

3. Others (Electricity & Communication Fee Allowances)

30 January 2018

1. Marketing & Production Performance2. Others (AT Kearney, WHRG, SDM)



Month Date Agenda

Attendance

Pre

s D

ir

Dir

Fin

Dir

HR

Dir

HR

Dir

BS&

D

Dir

EP

Dir

Pro

d

February

12 February 2018

1. Limited BOD2. Follow-up on Performance Strategic

Issues - January 20183. Others (AGMS & Meeting Follow-Up)

27 February 2018

1. Progress of Cigading Grinding Mill Study2. Monitoring of 2018 Strategic Work &

Initiative Program3. Results of Stock Opname - AT Kearney4. Results of Brand Review - the Interbrand 5. Approval of Notional Pooling Extension6. Others (Performance, Ceremonial, KAN,

IJBC)

X

March

14 March 2018

1. Cost Transformation Program - AT Kearney

2. Land Acquisition - Raw Material for Semen Indonesia

3. Performance4. Others (Subsidiary AGM, Rembang)

15 March 2018

1. TLCC AGM2. Management Aspirations and Contracts

(AGMS)3. Others (Follow-up MoU, AGMS of

Subsidiaries)

27 March 2018

1. General Direction (GMS, Infrastructure Review, Product Program)

2. Evaluation of Cigading Grinding Plant3. SMIG Infrastructure Review4. Management of BTG ST5. Product Marketing Program

April

2 April 2018

1. Overview of Sales Performance in March 2018

2. Product Program (Pricing Policy)3. Others (Investor Relations)

3 April 2018 1. Tuban Raw Material Land2. Report of Consultants - SQ Design

10 April 2018

1. Performance Evaluation2. Raw Material Land3. Others (Jordan, Infrastructure Review,

PLN)

17 April 2018

1. BOC-BOD Meeting Preparation2. Reprofile of SGGEP3. Tuban Raw Material Land4. Others (Decree, Dividends, Corporate

Meetings)

X

May

8 May 2018

1. Kick Off Cost Transformation2. Grinding Mill Cigading3. SMIG Infrastructure Review4. MoU of BUMN Karya

16 May 20181. April 2018 Performance Evaluation2. EY report3. Others (BUMN Karya and Pelindo MoU)

June 26 June 2018

1. Performance in May 2018 and Overview of June 2018

2. Approval of the Procurement Process3. Pending Matter (Tuban Raw Material)4. Others (Gathering Preparation, BOC-BOD

Meeting)

X X



Month Date Agenda

Attendance

Pre

s D

ir

Dir

Fin

Dir

HR

Dir

HR

Dir

BS&

D

Dir

EP

Dir

Pro

d

July

3 July 2018 1. Consolidation of Semen Indonesia Group2. The prospect of the 6 months ahead

12 July 2018

1. M & A LHI2. Divestment of TLCC3. Stock Offer of PT Etex (Eternit Gresik)4. Progress of Follow-up Review of SMIG

Infrastructure5. Parent-Subsidiary Relations - Marketing

& SCM

17 July 20181. Performance in June 20182. Others (GP Cigading-KSI, PP Bengkulu &

North Maluku)

23 July 2018 1. Preparation of BOC-BOD2. Others (BUMN Threshold)

31 July 2018

1. Financial Reports for Semester I 20182. Overview of Projections from Marketing

and Production3. Others (ODOL, HUT SMI)

X

August

7 August 2018 1. Follow up on Cigading Grinding Plant Management

14 August 2018

1. Lombok Disaster Response2. Performance Evaluation July 2018 &

Prognosis 20183. HR Agenda

28 August 2018

1. Preparation of BOC-BOD (Performance Evaluation & Corporate Action)

2. Lombok Disaster Response - CIVIL Program Progress

3. Investment Committee Report4. Others (Coal Bill)

X

September 25 September 2018

1. AT Kearney - Cost Transformation Program Report

2. Performance Report (Preparation of BOC-BOD)

October

8 October 2018 1. Canyon Project

15 October 2018 1. Canyon Project X X

17 October 2018

1. September 2018 Performance Report & Evaluation

2. Quarter III Report - RegulatorX X X

23 October 2018

1. Preparation of BOC-BOD (HR, ICT, CSR, Performance) X X

30 October 2018

1. AT Kearney’s report2. Limited BOD Agenda (IK, SILOG-SMI, AP

Remuneration) X

November

9 November 2018 1. Canyon Project

13 November 2018

1. Performance October 2018 & BOC-BOD Preparation X

27 November 2018

1. Report on AT Kearney - Brave Program2. Tuban Raw Materials3. 2019 RKAP4. Others (HR)

30 November 2018 1. 2019 RKAP X



Month Date Agenda

Attendance

Pre

s D

ir

Dir

Fin

Dir

HR

Dir

HR

Dir

BS&

D

Dir

EP

Dir

Pro

d

December

3 December 2018 1. 2019 RKAP X

13 December 2018

1. Performance November 20182. Progress of Standardization of Financial

Statements

21 December 2018

1. Preparation of BOC-BOD (Performance, RKAP 201-2019) X

JOINT MEETINGS OF THE BOARD OF COMMISSIONERS AND THE BOARD OF DIRECTORSThe Board of Commissioners and Board of Directors are the corporate organs with equal standing before the law. Good working relationship between the Board of Commissioners and the Board of Directors is mostly important so that each of these organs can work effectively and efficiently according to their respective functions:• Meetings of the Board of Directors inviting the Board of Commissioners and/or other parties shall be

convened at least twice a year (semi-annually and yearly) and based on GCG principles of transparency, accountability, responsibility, independence and fairness.

• The Board of Directors may invite the Board of Commissioners or a member of the Board of Commissioners to explain, provide input or conduct a discussion as reference for the Board of Directors to perform its functions.

DateParticipants

AgendaBoard of Commissioners Board of Directors

January 17, 2018 • Sutiyoso• Nasaruddin Umar• Wahyu Hidayat• Astera Primanto Bhakti• Hambra

• Hendi Prio Santoso• Fadjar Judisiawan• Doddy Sulasmono

Diniawan• Benny Wendry• Agung Yunanto• Tri Abdisatrijo• Ahyanizzaman

a. Evaluation of Performance & Capex as of Des 2017

b. Authority Treshold of BOD and BOC.c. Contingency Plan & Business

Resumption Plan.d. And Others

February 20, 2018 • Sutiyoso• Wahyu Hidayat• Sony Subrata• Astera Primanto Bhakti



a. Evaluation of Performance & Capex as of January 2018.

b. Progress of the Finalization of the Financial Statements of PT SI (Audited).

c. Further Discussion on Authority Treshold of BOD and BOC in 2018.

d. Preparation for the 2018 GMS.e. And Others

March 20, 2018 • Sutiyoso• Nasaruddin Umar• Wahyu Hidayat• Astera Primanto Bhakti

• Fadjar Judisiawan• Doddy Sulasmono

Diniawan• Benny Wendry• Tri Abdisatrijo• Ahyanizzaman

a. Evaluation of Performance & Capex as of February 2018.

b. Report on the Preparation and Discussion of Agenda for the 2018 AGMS.

c. And Others



DateParticipants


April 18, 2018 • Sutiyoso• Nasaruddin Umar• Wahyu Hidayat• Sony Subrata• Astera Primanto Bhakti• Hambra



a. Evaluation of Performance & Capex as of March 2018.

b. Discussion on the Agenda of AGMS 30 April 2018.

c. Progress of the 2017 KPI.d. Others

May 21, 2018 • Sutiyoso• Nasaruddin Umar• M. Choliq• Wahyu Hidayat• Astera Primanto Bhakti• Hendrika Nora O. Sinaga


Diniawan• Benny Wendry• Agung Yunanto• Tri Abdisatrijo• Adi Munandir

a. Induction Program for new BOD and BOC.

b. Evaluation of Performance & Capex as of April 2018 (Financial, Marketing, Production and other strategic issues)

c. Others.

June 29, 2018 • Sutiyoso• M. Choliq• Wahyu Hidayat• Sony Subrata



a. Evaluation of Performance May 2018.b. And Othersc. Preparation for Farewell Party and

HBH.

July 23, 2018 • Sutiyoso• Wahyu Hidayat• Astera Primanto Bhakti• Hendrika Nora O. Sinaga



a. Report on the Company’s Performance Semester 1-2018.

b. Follow up of Resolutions of the GMS on 30 April 2018 regarding PKBL Financial Statement of PT SI and Subsidiaries.

c. The Company’s Follow Up on Evaluation from Series A Dwiwarna Shareholders on Company Performance (Letter No. S-648/MBU/D2/06/2018 dated 8 June 2018).

d. Others

August 28, 2018 • Sutiyoso• Nasaruddin Umar• M. Choliq• Wahyu Hidayat• Astera Primanto Bhakti• Hendrika Nora O. Sinaga

• Doddy Sulasmono Diniawan

• Benny Wendry• Agung Yunanto• Tri Abdisatrijo• Adi Munandir

a. Evaluation of Performance & Capex as of July 2018.

b. Report on Corporate Action.c. Others

September 25, 2018

• Sutiyoso• Nasaruddin Umar• M. Choliq• Wahyu Hidayat• Sony Subrata• Astera Primanto Bhakti• Hendrika Nora O. Sinaga



a. Evaluation of Performance & Capex as of August 2018.

b. Follow Up of Evaluation on the Performance of Semester I-2018 by the Series A Dwiwarna Shareholder.

c. Aspiration of Series A Dwiwarna Shareholder regarding the Preparation of the 2019 RKAP.

d. The Progress of Corporate Action.e. Others

October 23, 2018 • Sutiyoso• Nasaruddin Umar• M. Choliq• Wahyu Hidayat• Hendrika Nora O. Sinaga


Diniawan• Benny Wendry• Agung Yunanto• Tri Abdisatrijo

a. Evaluation of Performance & Capex as of September 2018 (Q3).

b. The Progress of Human Capital, ICT & CSR.

c. Others

November 21, 2018 • Sutiyoso• Nasaruddin Umar• M. Choliq• Wahyu Hidayat• Sony Subrata• Astera Primanto Bhakti• Hendrika Nora O. Sinaga



a. Evaluation of Performance & Capex as of October 2018

b. Revision of the 2018 RKAP (due to Corporate Action)

c. Exposure of the 2019 RKAPd. Update of Canyon Progresse. Others



DateParticipants


December 21, 2018 • Sutiyoso• Nasaruddin Umar• M. Choliq• Wahyu Hidayat• Sony Subrata• Astera Primanto Bhakti• Hendrika Nora O. Sinaga



a. Evaluation of Performance & Capex as of November 2018;

b. The 2019 RKAP;c. Revision of the 2018 RKAP & KPI;d. And others.

AFFILIATED RELATIONSHIP BETWEEN THE MEMBERS OF THE BOARD OF DIRECTORS, BOARD OF COMMISSIONERS, AND MAJORITY SHAREHOLDERS AND/OR CONTROLLER

Affiliated Relationships of The Board of Commissioners

January 1 – April 30, 2018 Period

Name Position

Family Relationship with Financial Relationship with

Share Ownership in Semen IndonesiaO

ther

C

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issi

oner

Bo

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of

Dir

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rs

Maj

or

Shar

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lder

s

Oth

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Com

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er

Bo

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of

Dir

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rs

Maj

or

Shar

eho

lder

s

Sutiyoso President Commissioner X X X X X X X

Nasaruddin Umar Independent Commissioner X X X X X X X

Djamari Chaniago Independent Commissioner X X X X X X X

Wahyu Hidayat Commissioner X X X X X X X

Sony Subrata

Commissioner X X X X X X X

Astera Primanto Bhakti


Hambra Commissioner X X X X X X X



May 1 – December 31, 2018 Period

Name Position



ther

C

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Bo

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of

Dir

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Maj

or

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lder

s

Oth

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Com

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Bo

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of

Dir

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Maj

or

Shar

eho

lder

s

Sutiyoso President Commissioner X X X X X X X

Nasaruddin Umar Independent Commissioner X X X X X X X

M. Choliq Independent Commissioner X X X X X X X

Wahyu Hidayat Commissioner X X X X X X X

Sony Subrata


Astera Primanto Bhakti


Hendrika Nora O. Sinaga


Affiliated Relationship of the Board of Directors

January 1 – April 30, 2018 Period

Name Position



ther

C

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Bo

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Dir

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Maj

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Shar

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lder

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Com

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er

Bo

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of

Dir

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rs

Maj

or

Shar

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lder

s

Hendi Prio Santoso President Director X X X X X X X

Fadjar Judisiawan Director of Finance X X X X X X X

Doddy Sulasmono Diniawan

Director of Business Strategy & Development

X X X X X X X

AhyanizzamanDirector of Marketing & Supply Chain

X X X X X X X

Benny Wendry Director of Production X X X X X X X

Agung Yunanto Director of HR & Legal X X X X X X X

Tri AbdisatrijoDirector of Engineering and Projects

X X X X X X X



April 30 – December 31, 2018 Period

Name Position



ther

C

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Bo

ard

of

Dir

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Maj

or

Shar

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lder

s

Oth

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Com

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er

Bo

ard

of

Dir

ecto

rs

Maj

or

Shar

eho

lder

s

Hendi Prio Santoso President Director X X X X X X X

Doddy Sulasmono Diniawan Director of Finance X X X X X X X

Agung YunantoDirector of HR & Legal X X X X X X X

Adi Munandir

Director of Marketing & Supply Chain

X X X X X X X

Fadjar Judisiawan

Director of Business Strategy & Development

X X X X X X X

Tri Abdisatrijo

Director of Engineering and Projects

X X X X X X X

Benny WendryDirector of Production X X X X X X X

BOARD OF COMMISSIONERS AND THE BOARDOF DIRECTORS WORK RELATIONSHIPThe Board of Commissioners and the Board of Directors have clear duties and authorities in line with its functions as mandated in the Articles of Association and prevailing laws (fiduciary responsibility). Both organs have the responsibility to maintain the Company’s long term business sustainability. Therefore, both organs shall posses same aspirations on the corporate vision, mission, values and strategies.

To incorporate aspirations and decisions on significant matters related to the Company’s business and operations continuity, the Board of Commissioners and the Board of Directors as two main organs constantly held a periodic meeting. The coordination between the Board of Commissioners and the Board of Directors is conducted through the Board of Commissioners’ meetings by inviting the Board of Directors. The meetings are held every month by the Board of Commissioners, to discuss previous month performance of the Company, the Board of Directors’ monthly plan to gain existing opportunities, as well as strategic issues that required the Board of Commissioners’ approval.

Moreover, the Board of Commissioners and the Board of Directors also conduct meetings outside the scheduled monthly meetings, to address urgent matters for immediate conclusions. This is enacted in line with the accountability and responsibility principles in GCG implementation.

COMMITTEES UNDER THE BOARD OF COMMISSIONERS

AUDIT COMMITTEEThe Audit Committee of the Company is formed by and is responsible to the Board of Commissioners with the main objective of assisting the implementation of the supervisory function by the Board of Commissioners on financial reporting, internal audit and external audit, internal control and compliance with applicable laws and regulations. The establishment of the Audit Committee is an obligation for the company as determined in Law Number 19 of 2003 concerning State-Owned Enterprises and Financial Services Authority Regulation No.55/POJK.04/2015 concerning the Establishment and Work Guidelines of the Audit Committee.



COMPOSITION AND MEMBERS OF THE AUDIT COMMITTEEThe Company’s audit committee consists of 1 (one) Chairman who is an Independent Commissioner, 2 (two) Independent members and 1 (one) member who is a non-Independent commissioner. In 2018 there was changes to the composition of the Audit Committee with the following structure:

The composition of the Audit Committee from 1 January 2018 to 30 May 2018 is as follows:

No. Name Position

1 Nasaruddin Umar Chairman (Independent Commissioner)

2 Astera Primanto Bhakti Member - (Non-independent Commissioners - no voting right)

3 Sahat Pardede Member – (Professional - Independent Party)

4 Elok Tresnaningsih Member – (Professional - Independent Party)

The composition of the Audit Committee from 31 May 2018 to 6 July 2018 is as follows:

No. Name Position

1 M. Choliq Chairman (Independent Commissioner)


3 Sahat Pardede Member – (Professional - Independent Party)


The composition of the Audit Committee from 7 July 2018 to 16 August 2018 is as follows:

No. Name Position




The composition of the Audit Committee from 16 August 2018 to 31 December 2018 is as follows:

No. Name Position




4 MZ. Abidin Member – (Professional - Independent Party)



PROFILE OF AUDIT COMMITTEE MEMBERS• Nasaruddin Umar (Chairman of the Committee) Profiles can be seen in the profile section of the Board of Commissioners• M. Choliq (Chairman of the Committee) Profiles can be seen in the profile section of the Board of Commissioners• Astera Primanto (Member) Profiles can be seen in the profile section of the Board of Commissioners

Sahat PardedeAudit Committee Member Since July 2008Indonesian citizen, 57 years old.Domiciled in Jakarta

EDUCATION He obtained an accounting diploma from the State College of Accountancy, Jakarta and obtained a master’s degree in business administration from Saint Mary’s University, Canada.

HISTORY OF POSITION Currently also serves as Expert Staff for the Supervisory Commission of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas). As a member of the Indonesian Institute of Certified Public Accountants and practicing as a Public Accountant in Indonesia.

Elok TresnaningsihAudit Committee Member Since October 1, 2013Indonesian citizen, 59 years oldDomiciled in Jakarta

EDUCATION Holds a Bachelor of Economics Degree majoring in Accounting from the Faculty of Economics, University of Indonesia and holds a Master of Science in Accounting from the University of Indonesia in 2007.

HISTORY OF POSITION Currently active as a permanent teaching staff in the Accounting Department of the Faculty of Economics and Business, University of Indonesia. As a Main Member of the Indonesian Institute of Accountants (IAI) and active as an administrator at the Indonesian Audit Committee Association (IKAI).



Muhammad Zainal AbidinAudit Committee Member since August 16, 2018Indonesian citizen, 55 years oldDomiciled in Jakarta

EDUCATION Registered Accountant, graduated from the State College of Accountancy (STAN) and earned a Master of Science degree from the University of Indonesia in tax administration and taxation.

HISTORY OF POSITION Experienced in the field of internal audit in the government sector, BUMN/D, and the private sector since 1985. He has served several times as Directors and Commissioners/Supervisory Board in the subsidiaries of BUMN and Pension Funds. Recorded as a Main Member of the Indonesian Accountants Association (IAI) and The Institute of Internal Auditors (IIA) Indonesia Chapter, and lecturer in Qualified Internal Auditor (QIA) Certification Training at YPIA Jakarta.

INDEPENDENCE OF THE AUDIT COMMITTEE

All members of the Audit Committee meet the independence requirements of Audit Committee members in accordance with the rules and rules of GCG practice, namely that members of the Audit Committee are not people who work or have the authority and responsibility to plan, lead, control or supervise the activities of the Company within 6 (six) in the last month, did not have direct or indirect shares in the Company, had no affiliation with the Board of Commissioners, Directors or controlling shareholders of the Company, and did not have business relations, directly or indirectly, relating to the Company’s business activities.

Especially for Commissioners (non-independent) who are members of the Audit Committee, in order to maintain the independence of the Audit Committee, do not have voting rights in the decision making of the Audit Committee in terms of voting in making decisions.

AUDIT COMMITTEE WORK GUIDELINES

The oversight responsibility of the Audit Committee is regulated in the Audit Committee Charter which is implemented based on the decision of the Board of Commissioners. The Audit Committee Charter is regularly evaluated and adjusted to ensure compliance with the Financial Services Authority (FSA) regulations and applicable regulations.

Based on the Audit Committee Charter, the Audit Committee Annual Work Plan shall be prepared annually as an integral part of the Board of Commissioners Annual Work Plan. The Audit Committee’s Annual Work Plan includes, among others, the activities and activities to be carried out by the Audit Committee as well as the time of implementation and the parties involved.

The Audit Committee members are collectively responsible for the effectiveness of the implementation of the Audit Committee’s annual work plan. This allows each member to be able to focus their attention on certain tasks, and to ensure that the mandate of the Audit Committee is fulfilled.



DUTIES AND RESPONSIBILITIES

The Audit Committee has duties and responsibilities, including:1. Ensuring that the Company’s financial information

is presented fairly in accordance with the financial accounting standards in Indonesia and the applicable laws and regulations.

2. Providing independent opinion in the event of disagreements between Management and Accountants for the services they provide.

3. Providing recommendations to the Board of Commissioners regarding the appointment of an Accountant based on independence, scope of assignment, and service fees.

4. Ensuring that the Company’s internal control structure is carried out effectively by reviewing complaints relating to the accounting and financial reporting process.

5. Reviewing the implementation of internal and external audits is carried out according to the applicable audit standards and oversees the implementation of follow-up actions by the Board of Directors.

6. Ensuring the Company’s compliance with the laws and regulations in the capital market sector and other laws and regulations relating to the activities of the Company.

REPORT OF IMPLEMENTATION OF DUTIES IN 2018

During 2018, the Audit Committee has carried out duties in accordance with the Audit Committee’s Annual Work Plan, including:

• Reviewing the Company’s Financial Report The review is carried out through discussions

with the Internal Auditor, Independent Auditors and Management regarding internal controls, accounting policies and the Company’s financial reporting business processes. Discussions were also made about the results of the review of the quarterly financial statements in 2018. The Audit Committee has also reviewed and discussed the consolidated financial statements for 2018 with Management, including discussions of the quality of the accounting standards applied, the basis for the use of significant judgment, and the adequacy of disclosures in the consolidated financial statements. The Management has confirmed to the Audit Committee that the financial statements are their responsibility prepared with integrity and objectivity and in accordance with financial accounting standards in Indonesia.

• Monitoring the performance of Independent Auditors

During 2018, the Audit Committee communicated regularly with the Independent Auditor, started since the preparation of the audit plan and during the implementation until after the audit implementation. The communication carried out includes the quality of judgment used by the Management and the complete information needed by the Independent Auditor to be able to carry out audits in accordance with the audit standards and applicable financial accounting standards. The Audit Committee also continuously conducts supervision related to the independence of the independent Auditor.

• Evaluation and suggestions for the appointment of Independent Auditor (Public Accounting Firm) to the Board of Commissioners.

In the first quarter of 2018, the Audit Committee had recommended to the Board of Commissioners the appointment of Public Accounting Firm Satrio Bing Eny & Rekan (“KAP SBE”), a member of Deloitte Touche Tohmatsu Limited, conduct a general audit of the Company’s Consolidated Financial Statements and Program Annual Reports Partnership and Community Development (PKBL) respectively for fiscal year 2018. The Board of Commissioners approves these recommendations and proposes to the GMS, through the Board of Directors. The results of the Company’s Annual GMS resolution, April 30, 2018, approved the appointment of the KAP SBE.

• Supervising the implementation of the Internal Audit function

On a quarterly basis, the audit committee conducts discussions with the Internal Audit Unit regarding the implementation of the 2018 internal audit work plan, including a discussion of the results of the inspection and follow-up monitoring reports by Management. In addition, several other discussions were also conducted, including those related to the results of the Quality Assurance Review of the Internal Audit Unit and the implementation of the follow-up. In 2018 a review of the 2019 Internal Audit Work Plan was also conducted which included internal audit activities and resource adequacy.

MEETING FREQUENCY AND ATTENDANCE LEVEL

During 2018, the Audit Committee held internal meetings of the Audit Committee, participated in joint meetings of the Board of Directors and Board of Commissioners, special meetings, work meetings with attendance levels as follows:



Audit Committee BOC Intl % BOC

BOD % AC %Total

Meeting 2018

Nasaruddin Umar 1) Chairman of the Audit Committee/Independent Commissioner

8 73% 9 75% 9 100% 26

Astera Primanto Bhakti Member of the Audit Committee/Commissioner 6 55% 10 83% 7 32% 23

M. Choliq 2) Chairman of the Audit Committee/Independent Commissioner

5 71% 6 75% 13 59% 24

Sahat Pardede 3) Member of the Audit Committee 5 100% 4 67% 9 100% 18

Elok Tresnaningsih Member of the Audit Committee 10 91% 12 100% 22 100% 44

MZ Abidin 4) Member of the Audit Committee 5 100% 5 100% 15 100% 25

1) Ceased on May 31, 2018 as Chairman of the Audit Committee; 2) Appointed as Chairman of the Audit Committee as of May 31, 2018;3) Ended his terms as of July 6, 2018; 4) Appointed as Member of the Audit Committee as of August 16, 2018

TRAINING PROGRAM/EDUCATION DURING THE YEARName of Training Participant Time and Venue Organizer

Auditing Financial Statement Elok Tresnaningsih 18 October 2018, Jakarta Ikatan Komite Audit Indonesia (IKAI)

Certification on Committee Audit Practices Elok Tresnaningsih 6-8 November 2018, Jakarta Ikatan Komite Audit

Indonesia (IKAI)

Seminar of International Congress XIII IAI "Beyond 2030: Embracing Revolutionary Changes of Global Environment" 11-12 December 2018

MZ Abidin 11-12 December 2018, Jakarta Ikatan Akuntan Indonesia (IAI)

OF RISK AND INVESTMENT MANAGEMENT STRATEGY COMMITTEEThe Risk and Investment Management Strategy Committee (SRMIC) is a committee formed by the Board of Commissioners to assist the Board of Commissioners in supervising and advising the Board of Directors on the management of the Company as a whole and specifically in accordance with the laws and regulations, especially for matters related to the process of formulating and implementing strategic corporate actions, as well as ensuring the implementation of risk management principles in the Company and conducting analysis and assessment of the Company’s investment plans.

MEMBER OF THE RISK MANAGEMENT AND INVESTMENT STRATEGY COMMITTEE

No. Name Position

1 Wahyu Hidayat Chairman (Commissioner)

2 Hambra1) Member – (Commissioner)

3 Hendrika Nora O. Sinaga2)

Member – (Commissioner)

4 Syafrizal Member – (Professional)

5 Harini Agustina3) Member – (Professional)

1) Ended at AGMS on April 30, 2018; 2) Appointed as Member of the Committee based on SK No. 006/SI/Kep.

DK/05.2018 dated May 22, 2018; 3) Passed away on November 16, 2018

PROFILE OF MEMBERS OF THE RISK MANAGEMENT AND INVESTMENT STRATEGY COMMITTEE• Wahyu Hidayat Profiles can be seen in the profile section of the

Board of Commissioners• Hendrika Nora O. Sinaga Profiles can be seen in the profile section of the




SyafrizalMember of the Strategy, Risk Management and Investment Committee Since October 2010Indonesian citizen, 47 years old.Domiciled in Bandung

EDUCATION Graduated with a Bachelor’s Degree in Mining Engineering from Institut Teknologi Bandung in 1996. Master’s degree in Engineering from Institut Teknologi Bandung in 2000, and Doctorate degree in Engineering from Department of Earth Resources Engineering, Graduate School of Engineering, Kyushu University, Japan in 2006.

HISTORY OF POSITION Experienced in conducting research and providing exploration and mining consulting services since 1998. Currently active as a lecturer in Mining Engineering Program, Faculty of Mining and Petroleum Engineering (FTTM), Institut Teknologi Bandung (ITB).

Harini AgustinaMember of the Strategy, Risk Management and Investment Committee Since September 2016Indonesian citizen, 43 years old.Domiciles in Jakarta

EDUCATION Graduated with a Bachelor’s Degree in Industrial Engineering from the Bandung Institute of Technology in 1998, Master’s Degree in Transportation from Institut Teknologi Bandung in 2004. Currently pursuing a Doctoral Degree in Economics at Universitas Gadjah Mada.

INDEPENDENCE OF COMMITTEE MEMBERSMembers of the Risk and Investment Management Strategy Committee (SRMIC) are professionals with sufficient competence in their respective fields and having experience of at least 5 (five) years. These professionals have no relation with the Company or family relations with member of the BOC or BOD. SRMIC members’ backgrounds are diverse, namely strategic management, performance management, risk management, mining engineering, financial banking and accounting. This diversity of backgrounds is intended to be able to meet the required competencies and independence of opinions and recommendations submitted.

DUTIES AND RESPONSIBILITIESSRMIC performs its duties and responsibilities professionally and independently. The main tasks and responsibilities of SRMIC are to assist the Board of Commissioners in monitoring and evaluating the preparation and implementation of strategic plans, Corporate Work Plans and Budgets (RKAP), risk management systems and investment plans with the following details:1. Conduct a comprehensive review of the

Company’s Long Term Plan (RJPP) proposal as well as the Company’s Work Plan and Budget (RKAP) submitted by the Directors.

2. Reviewing the implementation of the RJPP and RKAP to be in line with the RJPP and RKAP targets authorized by the Commissioner.



3. Evaluate the development and implementation of the risk system carried out by the Company and provide further improvement suggestions.

4. Evaluate and advise on improvements to the identification and mitigation of risks that could threaten the achievement of the RKAP targets.

5. Evaluate and advise on improvements to the identification and mitigation of risks in the Company’s development projects such as the construction of new cement plants, and investments or purchases of cement factories abroad.

6. Review the proposed divestment investment and the Company’s capital expenditure within a certain value limit submitted by the Board of Directors and monitor the implementation process.

7. Reviewing the company’s proposed strategic actions and monitoring the implementation process.

SRMIC’s duties, responsibilities and authority are fully regulated in a Decree of the Board of Commissioners regarding the Strategy, Risk Management and Investment Committee and Charter (charter) which is regularly reviewed.

REPORT OF THE IMPLEMENTATION OF DUTIES

The implementation of the functions and roles of the Strategy, Risk Management and Investment Committee in accordance with their duties and responsibilities throughout 2018 can be briefly described as follows:1. Provide input to the Board of Commissioners for

the focus of supervision throughout 2018.2. Conduct analysis and evaluation of the Company’s

monthly performance reports and hold meetings and discussions with relevant Management units to monitor monthly performance achievements against the 2018 RKAP and submit proposals and recommendations for the necessary corrective steps.

3. Monitoring and evaluating, as well as providing input on the company’s strategy in terms of safeguarding the potential of raw materials, safeguarding the continuity of fuel supply, especially coal, as well as marketing innovations and cement distribution patterns carried out to maintain market share.

4. Monitor every month on the implementation of the 2018 Capex program and periodically evaluate each quarter of the 2018 Capex implementation.

5. Perform monthly monitoring of the performance of Non-Cement Subsidiaries against the 2018 RKAP targets outlined by each Subsidiary.

6. Providing input to the Board of Commissioners in considering granting approval for Corporate Action for the Acquisition of PT Holcim Indonesia Tbk.

7. Providing input to the Board of Commissioners in considering granting approval to the Loan Submission for Refinancing Subsidiaries.

Some notes from SRMIC during 2018 are as follows:

STRATEGY AREA1. The need for road map reinforcement, including

the improvement of the projected financial statements, of all business clusters listed in the RJPP 2017- 2021.

2. The need for uniformity and synchronization of the financial statements of each non-cement subsidiary so that periodic analysis and evaluation can be carried out on the financial performance of each non-cement subsidiary.

3. In anticipating the phenomenon of oversupply in the national cement industry market that will continue in 2018, which will impact on the decline of cement selling prices, and potentially reduce the level of income, it is necessary to maintain and even upgraded the cost transformation program that has been proclaimed since mid year 2016, to maintain profit obtained by the Company.

4. The need for the formulation and implementation of a comprehensive marketing strategy by fully exploiting the potential of synergies and taking into account the addition of production capacity by competitors whereby during 2018 there has been a very dynamic development in the seizure of the domestic cement market share by domestic cement producers.

5. There is a need for special attention to the improvement of the capability and reliability of the Company’s slag and cement production facilities, in order to ensure that these facilities can produce at least a production level consistent with the targets set out in the RKAP 2018.

6. It is necessary to continue efforts and innovations for cost efficiency of production by utilizing best practices on OpCos to be applied jointly at the holding level.



7. Strengthening operational synergies in efficient management of product allocation, Inter-Company Sales (ICS), and centralized export/imports in Holding Companies and International Trading Companies.

8. The need to increase the productivity of production facilities in Semen Indonesia Group, among others through standardization of production system.

9. Enhancement of research and development activities to support the efficiency and competitiveness of the company in the fields of energy, fuel, raw materials, packaging, AFR (Alternative Fuel & Raw Material), environment, quality, product and product application.

10. The need to strengthen distribution channels to expand the network and market penetration, among others, with the implementation of integrated Supply Chain Management (SCM) and Customer Relationship Management (CRM).

11. The need to increase the internal capability of Semen Indonesia Group (SMIG) in offering complete cement solution that suits customer needs.

12. The need for intensive efforts to plan and implement the development of non-cement businesses that support the improvement of the Company’s consolidated revenue.

13. The need to improve the readiness of human resources (HR) to face increasingly competitive competition, and in line with the business development strategy of the Company in the future, and the improvement of the implementation.

14. The need to update the governance of parent-child (subsidiary governance - the blue print) adapting to Semen business that is non Semen.

15. The need for IT development that embodies the standardization and centralization of parent-child business processes in both Semen and non-Semen.

16. The need to improve the Company’s targeted CSR program, and have a direct impact on communities, the environment, and stakeholders.

RISK MANAGEMENT AREA1. The need to optimize capex and investment

funding, especially if external financing needs increase along with the increase of capex and investment programs and related to the development of non-Semen business.

2. Management needs to intensively oversee the implementation of the strategic programs development.

3. Intensive efforts are needed to meet emission quality standards from the operation of all plants within the Semen Indonesia Group.

4. The management needs to uniform/standardize the risk management between the parent and the subsidiaries of both Semen and non-Semen. So that the consolidated risk management at the Company level is easier.

5. The need to continuously improve the effectiveness of the implementation of the risk management system developed by the Company so as to achieve a higher level of maturity level in all operating companies.

FIELD OF INVESTMENT1. It is necessary to continue the effort of adjustment

to the procedure of filing and approval of investment in connection with holding company pattern adopted by PT Semen Indonesia, Tbk.

2. The need to improve the quality of planning, discipline of proposed budget, and implementation of Capex in the environment of Semen Indonesia Group.

3. The need for a post-project evaluation of the completed Capex Strategic projects in order to obtain Lesson- Learned to improve the implementation of other Strategic Investment Projects in the future.

4. Continuing efforts to safeguard and oversee the implementation of new cement plant construction plans within the Semen Indonesia Group to fit the schedule with due regard to the principles of good governance.



MEETING FREQUENCY AND ATTENDANCE LEVEL

The composition and attendance of the Risk Management and Investment Strategy Committee Meetings throughout 2018 can be seen in the following table:

SRMI Committee BOC Intl % BOC

BOD % SRMIC %Total

Meeting 2018

Wahyu Hidayat Chairman/Commissioner 11 100% 12 100% 4 50% 27

Hambra 1) Member /Commissioner 2 50% 2 50% 0 0% 4

Hendrika Nora O. Sinaga 2) Member/Commissioner 6 86% 6 75% 1 20% 13

Syafrizal Member 11 100% 12 100% 8 100% 31

Harini Agustina 3) Member 6 67% 7 70% 5 83% 18

1) Ended his terms as of April 30, 2018; 2) Appointed as Commissioner as of April 30, 2018; 3) Passed away on November 16, 2018

TRAINING/EDUCATION PROGRAM DURING THE YEARType of Training Participant Time & Venue Organizer

- - - -

NOMINATION AND REMUNERATION COMMITTEEThe Nomination & Remuneration Committee (NRC) as the supporting organ of the Board of Commissioners performing its duties based on Financial Services Authority Regulation No.34/POJK.04/2014.

The NRC has the role to assist the Board of Commissioners of PT Semen Indonesia (Persero) Tbk in providing recommendation of oversight and advices to the Board of Commissioners, and performing other specific duties, including:1. Determine the selection criteria and procedures of nomination and recommendation on total member as

well as selection process of the Board of Commissioners and the Board of Directors,2. Remuneration recommendation for members of the Board of Commissioners and Board of Directors, as

well as members of the Board of Commissioners’ supporting organs, and3. Provide oversight input and advices as well as recommendation in HR management.4. Provide oversight input and advices in terms of Social and Environmental Responsibility and Corporate

Social Responsibility.

MEMBERS OF THE NOMINATION AND REMUNERATION COMMITTEE

The composition of the Nomination and Remuneration Committee (NRC) in 2018 is as follows:

No. Name Position

1 Nasaruddin Umar Chairman of NR CSR - (Independent Commissioner)

2 Wahyu Hidayat Chairman of Sub NR – (Commissioner)

3 Sutiyoso Chairman of Sub CSR – (Commissioner)

4 Sony Subrata Member of Sub CSR – (Commissioner)

5 Irham Dilmy Member of NR CSR – (Professional)



PROFILE OF THE NOMINATION AND REMUNERATION COMMITTEE MEMBERS• Nasaruddin Umar Profiles can be seen in the section of the Board of Commissioners Profile• Wahyu Hidayat Profiles can be seen in the section of the Board of Commissioners Profile • Sutiyoso Profiles can be seen in the section of the Board of Commissioners Profile • Sonny Subrata Profiles can be seen in the section of the Board of Commissioners Profile

Irham DilmyMember of the Nomination and Remuneration Committee since December 1, 2014.Indonesian Citizen, 62 years oldDomiciled in Jakarta

EDUCATION Completed Bachelor degree in Political Science/International Relations at Universitas Indonesia (1981); Obtained a Diploma in Human Resources Management from the University of California, Los Angeles and obtained a Master of Business Administration degree from the Kogod School of Business at American University, Washington DC in international business through the Fulbright Scholarship (1993-1995). Currently completing a Doctorate dissertation in Business Administration at Universitas Indonesia.

HISTORY OF POSITION Experienced in the field of Human Resource Management for more than 30 years in multinational companies, international organizations and SOEs.

Currently serves as Vice Chairman and Commissioner of the State Civil Service Commission (KASN), previously served as Country Manager of Indonesia, Pedersen & Partners Global Executive Search (2013-2014); General Manager, Human Capital Master Plan, PT Semen Gresik, Tbk. (2011-2012); Managing Partner, AMROP Indonesia Executive Search (1996-2010); Principal, TASA International (1995- 1996); Human Resources Director, Chiquita Brands Int’l (1991-1993); Country Manager of Human Resources, PT Coca-Cola Indonesia (1990-1991); Policy Analyst, The World Bank, Washington, DC (1989-1990); Manager, Organization, Compensation & Benefits, ARCO Indonesia (1982-1989).

COMMITTEE MEMBER INDEPENDENCYAll NRC’s members have never had a relation with the Company or family relations with fellow members of the Board of Commissioners and Directors (independent).


The NRC has the role to assist the Board of Commissioners of PT Semen Indonesia (Persero) Tbk in providing recommendation of oversight and advices to the Board of Commissioners, and performing other specific duties, including:

• Determine the selection criteria and procedures of nomination and recommendation on total member as well as selection process of the Board of Commissioners and the Board of Directors.

• Remuneration recommendation for members of the Board of Commissioners and Board of Directors, as well as members of the Board of Commissioners’ supporting organs, and

• Provide oversight input and advices as well as recommendation in HR management.



STATEMENT OF AVAILABILITY OF COMMITTEE CHARTERThe Nomination and Remuneration Committee has been equipped with a Committee Charter or Work Manual as established through decree of the Board of Commissioners No: 011/SI/Kep.DK/11.2015 on Charter of Nomination and Remuneration Committee. The decree refers to OJK Regulation No. 34/POJK.04/2014 on Nomination and RemunerationCommittee of Issuers or Public Companies.

REPORT OF ACTIVITIES

In 2018, the Company’s main challenge in terms of human resource management is how HR policies can help the Company to deal with changes in the cement industry environment and the increasing competition in the cement industry nationally and regionally.

In an effort to improve the competence and performance of all elements of leadership and implementers at the holding level, PT Semen Indonesia (Persero) Tbk, as well as at the level of operating companies in the field of cement to be able to move quickly and effectively and efficiently, the Board of Commissioners of the Company through the Nomination Committee and Remuneration, will always strive to submit proposals and inputs on the supervision and provide suggestions and recommendations.

The duties of the NRC completed in 2018 include:1. Evaluate and propose the names of candidates for

the Board of Directors of the Company, as well as carry out assessments of candidates for Directors of subsidiaries, both in the cement industry and other supporting industries for the consideration of shareholders during the Annual and Extraordinary General Meeting of Shareholders and Board of Commissioners’ consideration for subsidiaries.

2. Together with the HR Management Board of Directors the Company calculates the proposed remuneration for the Board of Directors and Board of Commissioners for 2018 and 2017 financial year tantiem to the majority shareholders, which was submitted to the 2018 Annual GMS and recommendations on the remuneration of the Board of Commissioners and Directors starting early 2018.

3. Delivering recommendations on the management process of human resource development, to prepare the Company to face the challenges of national and regional market competition.

4. Monitor and evaluate the implementation of corporate organizational restructuring and regrouping various functions within the Company in order to obtain the resilience of the Company’s organization in facing the challenges of market competition, cost savings and speed of strategic decision making.

MEETING FREQUENCY AND ATTENDANCE LEVELComposition and Attendance of the Nomination and Remuneration Committee Meeting throughout 2018 can be seen in the following Table.

NR Committee BOC Intl % BOC

BOD % NRC %Total

Meeting 2018

Nasaruddin Umar Chairman/ Independent Commissioner 8 73% 9 75% 2 33% 19

Sutiyoso Chairman of Sub SCR/Commissioner 11 100% 12 100% 0 0% 23

Wahyu Hidayat Chairman of Sub NR/Commissioner 11 100% 12 100% 4 67% 27

Sony Subrata Member of Sub CSR/Commissioner 4 36% 5 42% 0 0% 9

Irham Dilmy Member of NR SCR/Professional 8 73% 8 67% 5 83% 21

TRAINING/EDUCATION PROGRAM IN THE BOOK YEARTraining Participant Time and Place Organizer

- - - -



BOARD OF DIRECTORS SUCCESSION POLICYTo prepare future leaders, the Company held Leadership Development Program and Talent Management acceleration program. The potential candidates included in the Talent Pool will go through a series of training programs with the main objectives to improve management capability, business development strategy, strategic plan evaluation and others.

In addition, the Company also recruits professionals from outside the Company in a very selective manner to strengthen the leadership structure for the Company itself and for the Company’s subsidiaries.

On changes of leadership, the Company will propose internal candidates through the selection carried out by the Adhoc Committee and facilitate by the Board of Commissioners. The internal candidates selection will then be proposed to the SOEs Ministry for fit and proper test.

THE BOARD OF COMMISSIONERS SECRETARYThe Board of Commissioners’ Secretary (Secretary) has the administrative duties in assisting the Board of Commissioners in its supervisory and advisory as well as fiduciary duties. As the head of the Board of Commissioners’ Secretariat, the Secretary manages three (3) full time Secretariat Staff.

The Secretary is assigned from the Professional fields with experience in secretariat management, administrative, HR, regulatory/compliances, corporate communication, and oversight management in finance/internal control, strategic planning, as well as corporate risks, especially for listed companies.

Ninda E. DjohaeriSecretary of the Board of Commissioners Since November 15, 2011Indonesian citizen, 60 years oldDomiciled in Jakarta

EDUCATION Graduated with a B.Sc Degree from Richland College, Dallas, USA, and attended various trainings in the fields of Petroleum Engineering, Petroleum Contracts, Leadership, Directorship and Oversight Management, Regulatory/Compliances, GRC Strategy. Attended various workshops on Governance, Risk and Compliance, Improving the Effectiveness of the Role of Supervision and Consultancy of the Board of Commissioners of SOE and Subsidiaries.

HISTORY OF POSITION Previously, she worked for PT Telkom Indonesia (Persero) Tbk., as Secretary of the Board of Commissioners (2004 to 2008), and as a Country Rep. from Drive Robotic Inc., IT Company (2009 to 2010). Starting her career at ARCO Indonesia Oil & Gas Comp. (1986 to 1999), among others in Human Capital and Training, Project Support & Control, Contracts Administration, Production Engineering. From 2000 to 2004, she worked as a Team Leader for International Institution Relations with IBRA (IBRA), responsible for the Letter of Intent (LoI) of IBRA Reporting and the Liaison Officer of IMF/World Bank, related to LoI of IBRA Reporting.



DUTIES AND RESPONSIBILITIES OF THE SECRETARY OF THE BOARD OF COMMISSIONERS1. The Secretary of the Board of Commissioners/

Supervisory Board is responsible to assist the Board of Commissioners/ Supervisory Board in a form of:a. Composing the agenda for the meetings of

the Board of Commissioners and Board of Directors, preparing the meeting material including briefing sheet for the Board of Commissioners/Supervisory Board;

b. Preparing the minutes of Board of Commissioners/ Supervisory Board Meeting in accordance with the Company’s Article of Association.

c. To administrate the Board of Commissioners/Supervisory Board documentation, incoming letters, outgoing letters, minutes of meeting or other documents.

d. Formulate the draft of Working and Budget Plan of the Board of Commissioners.

e. Formulating the draft of the Board of Commissioners/Supervisory Board Reports;

f. Conducting other duties from the Board of Commissioners/Supervisory Board.

2. In addition to duties as stated in the point (1), Secretary of the Board of Commissioners/Supervisory Board as the head of Secretariat, implements other duties, as follows:

a. Ensuring the compliance of the Board of Commissioners/Supervisory Board on the laws and regulations, as well as implements GCG principles;

b. Providing information required by the Board of Commissioners/Supervisory Board in implementing its advisory, and fiduciary duties;

c. Coordinating the Committee’s members, result of assessment/analysis/recommendation from the Committee to support the supervisory and advisory duties of the Board of Commissioners/Supervisory Board;

d. As the liaison officer of the Board of Commissioners/ Supervisory Board with other party.

3. For orderly administration and implementation of good corporate governance, the Secretariat of the Board of Commissioners/Supervisory Board shall assure the proper document filing of the activities as stated in point (1).

4. In performing its duties, Secretary of the Board of Commissioners/Supervisory Board shall has the authority to coordinate and request the information and or statements from the executives, employees and or related parties with regards to the implementation of duties and functions of the Board of Commissioners.

5. Secretary of the Board of Commissioners shall maintain confidentiality of information, data, and documents which is obtained in performing its function and duties.

DUTIES

No ActivityPIC

OutputL S

1 Developed the Governance mechanism, supervisory and advisory functions, in line with the prevailing laws and based on the GCG principles

NED NED Presentations, Reports and Availability of Materials

2 Development of Annual Commissioners activity plans

NED + Committee Annual Activity Plan

3 Development of annual report (Commissioners’ section)

NED + Committee Annual report

4 Development of supervisory report for submission to the NED GMS

NED NED Report of the Board of Commissioners

5 Coordinated the committees’ reports as the supporting organs of the Board of Commissioners

NED NED Meeting material/material

6 Organized the meetings/coordination with the Board s of Directors and its elements; and to provide opinions on topics of discussion, if required.

BOC NED Availability of meeting materials on the agenda



No ActivityPIC

OutputL S

7 Provided the response on periodical reports of the Board of Directors (quarterly, annually), as well as at anytime that are required concerning corporate development, and to promptly report the duties implementation results to the Shareholders.

BOC NED Availability of meeting materials

8 Updates on the Company’s growth, both from internal provided by the Company as well as external information, from the media or other resources.

NED NED Availability of meeting material from the Committee Evaluation and Analyst Review

9 Provide opinions and suggestions for the GMS in the appointment and dismissal of Directors

BOD NRC NR Recommendation

10 Preparing Annual BOC Supervisory Report NED+Committee NED+Committee Report

TRAINING PROGRAM/EDUCATION DURING THE YEARTraining Participant Date & Place Organizer

GRC Strategy Ninda E. Djohaeri 8-10 March 2018, Bandung JSM Management Consultant

CORPORATE SECRETARYCorporate Secretary is a structural position under and directly responsible to the Board of Directors. Corporate Secretary assists the Board of Directors in conducting good relations between the Company as a listed company with Regulators as well as capital market supporting institutions, investors, public and stakeholders in general, including the information management related to the corporate business environment.

PROFILE OF CORPORATE SECRETARY

Agung WihartoCorporate Secretary since May 1, 2012 based on the Board of Directors Decree No. DIR/P/0023/2012.Indonesian Citizen, 52 years oldDomiciled in Jakarta

EDUCATION Graduated with a Bachelor degree in Communication Studies from Universitas Gadjah Mada in 1993.

HISTORY OF POSITION Joined the Company in 1994. Became Head of Documentation & Information Section (1996-2001), Head of Jakarta Representative Section (2001- 2002), and Head of Investor Relations Bureau (2006- 2012). He has served as Corporate Secretary since 2012 until now.



ORGANIZATIONAL STRUCTURE AND FUNCTION OF CORPORATE SECRETARYIn the organizational structure of the Company, the Corporate Secretary is directly responsible to the President Director. In accordance to POJK No. 35/POJK.04/2014 The Corporate Secretary is appointed and dismissed based on the decision of the Board of Directors.

ORGANIZATIONAL STRUCTURE OF CORPORATE SECRETARY

PresidentDirector

Corporate Secretary

Corporate Communication

Department

Media Relations Bureau

Corporate Activity Bureau

Internal Relations, Website,& Social

Media Bureau

Jakarta Office Bureau

Gresik Office Bureau

Management Office Bureau

Corporate Information & Data Center

Bureau

Partnership & Community

Development Program Bureau

CSR Planning & Evaluation

Bureau

Investor Relations

Department

Corporate Office

Department

CSR Department

Institutional Relations

Department

Staff Staff Staff StaffStaff Staff Staff Staff Staff

Staff Staff Staff

The Corporate Secretary has the functions and responsibilities in formulating the Company’s policy, planning and communication control. The functions of the Corporate Secretary include among others:• Ensuring fluent communication between the

company and its stakeholders, • Ensuring the availability of information which

may be accessible by the stakeholders based on stakeholders’ reasonable needs,

• Ensuring that the Company fulfill the obligations related to the capital market and Shareholders in accordance with the prevailing provisions,

• Fostering the company’s identity and image to support the improvement of the Company’s value,

• Managing the Company’s internal and external communications media and directing the subsidiaries in the undertaken corporate communications activities.

In addition to the aforesaid functions, the Corporate Secretary has the tasks of:• Controlling the management of communication

strategies to build the Company’s image • Acting as a representative of the Company and

liaison officers between the Company and all stakeholders in communicating the accurate and prompt communication of the Company’s activities;

• Control the delivery of Company’s performance information and corporate action to the capital market authorities, stock exchange authorities, investors, analysts and other market participants;

• Coordinate the submission of the Company’s Annual Report and periodic Financial Reports to the capital market authorities and stock exchange authorities;

• Coordinate The implementation of the Board of Directors ‘meeting, the Board of Directors’ meeting with the Board of Commissioners and the General Meeting of Shareholders.

The function of the Corporate Secretary is implemented in several functions as follows: • Compliance officer, to follow and provide input

to the Board of Directors on the updates of applicable laws and regulations and ensure that the Company complies with these regulations.

• Stakeholders relation, providing services to the Shareholders, Board of Commissioners, Board of Directors and other stakeholders including but not limited to investors for information related to the conditions in accordance with Articles of Association and prevailing laws and regulations. This service demonstrates the application of the Company’s transparency and disclosure principles to Stakeholders.

• Liaison officer/contact person, acting as liaison officer between the Company and Bapepam-LK, stock exchange, and the public.

• Business information, providing immediate information to the Stakeholders on actual events that occurs in response to any positive and negative rumor or issue.




The duties and responsibilities of the Corporate Secretary are described in Bapepam-LK Regulation IX.14 on the establishment of the Corporate Secretary as well as the Decree of the Minister of SOEs no. KEP- 117/M-MBU/2002 on the Implementation of GCG Practices on State-Owned Enterprises, and the latest is the Regulation of the Financial Services Authority No. 35/POJK.04/2014 dated December 8, 2014 on Corporate Secretary of Issuers or Public Companies.

The duties and responsibilities and obligations of the Corporate Secretary are as follows: • To follow the development of the Capital Market,

in particular to prevailing laws and regulations in the Capital Market;

• To provide input to the Board of Directors and Board of Commissioners of the Issuers or Public Companies to comply with the provisions of laws and regulations in the Capital Market;

• To assist the Board of Directors and Board of Commissioners in the implementation of corporate governance which includes:- Disclosure of information to the public,

including the availability of information on the Web Site of Issuer or Public Company;

- Ensuring timely delivery of reports to the Financial Services Authority;

- Convene and make documentation of the General Meeting of Shareholders;

- To organize and make documentation of meetings of the Board of Directors and/or the Board of Commissioners; and

- Implement the orientation program of the company for the Board of Directors and/or the Board of Commissioners.

• As a liaison between Issuer or Public Company with shareholders, the Financial Services Authority, and other stakeholders.

• The Corporate Secretary is required to provide periodic report at least 1 (one) time in 1 (one) year on the implementation of the corporate secretary’s function to the Board of Directors and copied to the Board of Commissioners.

REPORTS ON THE IMPLEMENTATION OF DUTIESThe activities carried out by the Corporate Secretary include managing relationships with investors, the public and internal relations, handling internal data, as well as providing input to the Board of Directors of the Company in compliance with Capital Market Law provisions and implementing regulations, including the implementation of Governments in the Company.

As the liaison officer between the Company and the capital market community and other interested external parties, the Corporate Secretary and the Investor Relations Department ensure the fulfillment of aspects of openness as one of the GCG principles for the capital market community, fostering relationships with investors in stocks and bonds, and other securities, with analysts, journalists, trustees, rating agencies, Self Regulatory Organizations (SRO), and other related financial communities.

To ensure that the disclosure of information is accurate and recorded, processed, summarized and reported within a certain period of time, in accordance with the applicable information disclosure provisions and as a corporate secretary in carrying out its duties, the Company issues communication policies as outlined in the GCG Guidelines and "External Communication Procedures ".

TRAINING AND DEVELOPMENT

In accordance with the provisions of Article 7 POJK No. 35/POJK.04/2014 in order to increase knowledge and understanding to assist the implementation of duties, the Corporate Secretary must attend education and/or training. Therefore in the past few years the Corporate Secretary has attended the following Training/Workshop/Seminar:

No. Date Event Venue

1 March 2018 Corporate Governance Workshop Jakarta

2 August 2018 Strategic Business Alignment Bali

3 October 2018 Global Digital Leader Executive Development Program France

4 November 2018 Performance Management System Workshop Jakarta

5 November 2018 Corporate Work Plan & Budget Workshop Bandung

6 December 2018 Corporate Strategic Alignment Semen Indonesia Group Bogor



CORRESPONDENCE OF CORPORATE SECRETARY

In order to comply with regulations and improve effective communication, the Company organizes media gathering, press conference, media visit, public expose, conference call, investor gathering, analyst meeting, non-deal road show, forum of investors and press release distribution to communicate operational development and The latest corporate financial condition. In addition, the Company also provides information for all employees through the Internal Communication Program. This is done, to ensure equality in the dissemination of information to all stakeholders.

In 2018, several activities related to the stakeholders undertaken by the Corporate Secretary among others have convened the AGMS: organizing AGMS, attending every meeting of the Board of Commissioners and Board of Directors Meeting and making minutes of the Board of Commissioners Meeting and Board of Directors Meeting, Communicate with the Ministry of SOEs, the Ministry of Finance, the Secretary of State, Bapepam, the Self Regulatory Organization (BEI,

KSEI, KPEI), BAE, and other relevant institutions, Holding hearings and working visits with DPR-RI, Conducting public expose, media site visit, analyst meeting, conference, exhibition and holding press conference and teleconference.

INFORMATION DISCLOSURES TO SHAREHOLDERS, ANALYST, INVESTORS AND OTHER STAKEHOLDERS ACTIVITIES

No Activity 2018

1 Analyst & Investor Visit 118

2 Conference 9

3 Public Expose 1

4 Non Deal Roadshow 1

5Letters to the Regulators & Capital Market Supervisory 37

6 Annual Report 1

7 Press Release 41

8 Press Conference 34

9 Media Visit 32

10 Media Gathering 18

PRESS RELEASE TABLENo. Release Number Date of Release Activity Title Venue Media

1 01/HM.05/5151//02.18 February 13, 2018Semen Gresik builds clean water facilities in Rembang

Semen Gresik Builds a Rp600 million Clean Water Facility in Rembang

Rembang All Media

2 02/HM.05/5151//02.18 February 14, 2018Agriculture is not disrupted by the Rembang plant

Harvesting season, Fertilizer Absorption in the Agricultural Areas around the Cement Plant in Rembang has Sharply Increased

Rembang Central Java

Editor, Jakarta Reporter

3 03/HM.05/5151//02.18 February 22, 2018 Launch of Taman Bukit Daun

This is how Semen Indonesia Transforms Land Postmining

Tuban All Media

4 04/HM.05/5151//02.18 February 27, 2018

Visit of the Japanese Environmental Ministry Representative to the Tuban Plant WHRPG project

Becoming a Creative Tourism Venue in Tuban

Tuban All Media

5 05/HM.05/5151/03.18 March 15, 2018Signing of MoU between SOE companies

SOE Synergy, Semen Indonesia Signs a Memorandum of Understanding for Using FABA, Gypsum, Logistics and Marketing of Cement

Jakarta All Media

6 06/HM.05/5151/04.18 April 4, 2018Assistance for SMK 3 Tuban’s partnership class

This is how Semen Indonesia Enhances High School Student’s Competencies in Tuban

Tuban All Media



No. Release Number Date of Release Activity Title Venue Media

7 07/HM.05/5151/04.18 April 29,2018 Haj Rituals

Semen Indonesia Provides Haj Ritual Guidance for 650 Prospective Participants for the Haj Pilgrimage in Tuban

Tuban Tuban Reporter

8 08/HM.05/5151/04.18 April 30, 2018 Annual General Meeting of Shareholders

Semen Indonesia Pays 40% Dividend Jakarta All Media

9 09/HM.05/5151/05.18 May 8, 2018 Semen Indonesia receives an award

Semen Indonesia Receives “Gold” for Its Success in Mining Environmental Management from the Ministry of Energy and Mineral Resources (ESDM)

Jakarta All Media

10 10/HM.05/5151/05.18 May 28, 2018 Ramadhan Bazaar

Six of Semen Indonesia’s SME Partners Secures Halal Certificates

Gresik All Media

11 11/HM.05/5151/06.18 June 4, 2018 Orphanage Donations

Semen Indonesia Holds Joint Breaking of Fast & Offers Rp337 million For Orphans in Tuban


12 12/HM.05/5151/06.18 June 9, 2018

Mudik Bareng (Collective Return/Homecoming Back to the Provinces)

Semen Indonesia Launches 4,500 Participants for a Free Mudik or Return to the Provinces

Jakarta All Media

13 13/HM.05/5151/07.18 June 11, 2018 Pasar murah or Bazaar

Conducts a Bazaar, Semen Indonesia and Semen Indonesia Employee Spouses Association (Ikatan Istri Karyawan Semen Indonesia or IIKSMI) to sell 5,200 basic food packets (Sembako)

Gresik All Media

14 14/HM.05/5151/07.18 July 26, 2018 Social Media Training

Semen Indonesia invites young netizens from Tuban to Wisely Use Social Media

Tuban All Media

15 15/HM.05/5151/07.18 July 30, 2018 Provide scholarships

Semen Indonesia Provides Scholarships to 10 Underprivileged Students of State Universities (PTN)


16 16/HM.05/5151/08.18 August 2, 2018 Awards for expedition drivers

Semen Indonesia Provides Umrah Pilgrimage Prizes for Best Performing Expedition Drivers

Tuban All Media

17 17/HM.05/5151/08.18 August 5, 2018 Launch of the SI Trail Run

Grand Launching of the Trail Run As a Prelude to Semen Indonesia’s Anniversary Celebrations

Surabaya All Media

18 18/HM.05/5151/08.18 August 7, 2018Gresik Plant Anniversary Celebrations

This is how Semen Indonesia’s Gresik Plant Celebrates its 61st Anniversary

Gresik All Media

19 19/HM.05/5151/08.18 August 12, 2018 Students Awareness of the Country

25 Best Performing Vocational, High School, and Handicapped Students Participate in the Students National Awareness Program Organized by Semen Indonesia

Makassar All Media




20 20/HM.05/5151/08.18 August 16, 2018 Semen Indonesia Innovation Award

Eight Teams Are Awarded As Winners of Semen Indonesia’s 2018 Innovation Awards

Gresik All Media

21 21/HM.05/5151/08.18 August 21, 2018 Idul Adha Celebrations

In commemoration of Hari Raya Idul Adha 1439 H, the Semen Indonesia Group Provided 167 Sacrificial Animals or Qurban

Gresik All Media

22 22/HM.05/5151/08.18 August 24, 2018 Handover of hadrah tools

In support of the arts and culture, Semen Indonesia Hands over Hadrah Tools

Tuban All Media

23 23/HM.05/5151/09.18 September 5, 2018

SI Athletes Appreciation

Semen Indonesia Appreciation for the 2018 Asian Games Sport Climbing Gold Medal Athletes

Gresik All Media

24 24/HM.05/5151/09.18 September 8, 2018

SG VW Club National Championship Winners

Semen Gresik Sweeps the Trophy at Janmas Singaraja

Singaraja Tuban Reporter

25 25/HM.05/5151/09.18 September 19, 2018

Investor Summit 2018

Semen Indonesia Targets 2018 Export Sales of 3 million tons valued at Rp4.4 trillion

Surabaya All Media

26 26/HM.05/5151/09.18 September 23, 2018

Road To SI Trail Run 2018

Road To Semen Indonesia Trail Run 2018

Yogyakarta All Media

27 27/HM.05/5151/09.18 September 29, 2018 Subroto Awards

Success in Energy Conservation and Efficiency Innovation, Semen Indonesia Wins the Subroto Award from the Energy and Mineral Resources (ESDM) Ministry

Jakarta All Media

28 28/HM.05/5151/10.18 October 3, 2018 IBD Expo

Semen Indonesia Supports the Government’s Policy to Intensify Exports

Surabaya All Media

29 29/HM.05/5151/10.18 October 3, 2018Handyman’s (Tukang) Certification

Semen Indonesia Supports the Construction Workers Certification Program That was Organized by the Public Works and Housing (PUPR) Ministry

Jakarta All Media

30 30/HM.05/5151/10.18 October 14, 2018 Trail Run CampSemen Indonesia Holds the Trail Run Camp in Ranu Kumbolo

Malang All Media

31 31/HM.05/5151/10.18 October 18, 2018 Makassar Speaks Well

Semen Indonesia invites Makassar Netizens to "Speak Well" in the Social Media

Makassar All Media

32 32/HM.05/5151/10.18 October, 2018 Pencak Silat Championships

Semen Indonesia Holds the "Semen Indonesia Cup IV" Silat Championships in Tuban


33 33/HM.05/5151/10.18 October 31, 2018 Handover of Goats

Semen Indonesia Hands over Support in the form of 220 Goats to the Community that Cultivates the Land Around the Tuban Plant





34 34/HM.05/5151/11.18 November 13, 2018

Handyman’s (Tukang) Training

Semen Indonesia Conducts Edutainment for Construction Workers in Pacitan

Pacitan All Media

35 35/HM.05/5151/11.18 November 11, 2018

Semen Indonesia Trail Run

Semen Indonesia Trail Run 2018, Achieves Muri Records As the First Trail Run Competition held in the Factory Site and in Post mining areas of a Cement Factory

Gresik All Media

36 36/HM.05/5151/11.18 November 13, 2018

Semen Indonesia Takes Over Holcim’s Shares

Semen Indonesia Takes Over Holcim Indonesia’s Shares

Gresik All Media

37 37/HM.05/5151/11.18 November 23, 2018

Millennial Creative Festival

Semen Indonesia Supports 500 Millennial To Create to Positively Contribute to the Environment

Gresik All Media

38 38/HM.05/5151/11.18 November 27, 2018

Handover of CSR Support

Semen Indonesia Achieves Community Empowerment Program Valued at Rp7.25 Bn in the Tuban Residency


39 39/HM.05/5151/12.18 December 9, 2018 Cycling Tourism

Cycling Tourism Becomes an Event To Mark Semen Indonesia’s Gresik Plant 61st Anniversary


40 40/HM.05/5151/12.18 December 12, 2018

Green Industry Awards

Semen Indonesia Achieves Green Industry Awards from the Ministry of Industry

Jakarta All Media

41 41/HM.05/5151/12.18 December 19, 2018 Medan Speaks Well

Semen Indonesia Invites Medan’s Social Media Activists in Medan

Medan All Media

INFORMATION DISCLOSURE

In order to support the disclosure of information to the public, the Corporate Secretary always reports to the regulators. Every year, the Corporate Secretary prepares Annual Reports referring to existing regulations.



INTERNAL AUDIT GROUPInternal Audit is a work unit formed within an organization to provide independent and objective assurance, and consultancy services designed to add value and improve organizational operations. Internal Audit helps an organization achieve its objectives by taking a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and corporate governance processes. Therefore, Internal Audit supports the organization by conducting analysis, assessment, recommendation, consultation and conveying information about the activity being reviewed. Internal Audit Group is the Company’s work unit responsible for performing Internal Audit function in the Company.

PROFILE OF INTERNAL AUDIT GROUP HEAD

Tubagus M. DharuryInternal Audit Group Head since August 1, 2017 based on the Board of Directors’ Decree No. DIR/P/0047/2017Indonesian Citizenship, 51 years old (March 29, 1967)Domiciled in Surabaya

EDUCATION He earned a Bachelor degree in Accounting from Universitas Airlangga, Surabaya in 1991 and obtained a Master’s degree in Management from Universitas Gadjah Mada in 2008.

HISTORY OF POSITION Joined the Company in 1991 as a Employee Candidate in training for the personnel department. Previously, he held various positions in the Company, including• Finance Director of PT Industri Kemasan Semen Gresik (2002), • Finance Director of PT Swadaya Graha (2002-2012), • Senior Group Finance Management Accountant Department Group Finance Management (2012-2014), • GM of Accounting & Human Capital Department of Accounting & Human Capital (2014-2016), and • GM of Internal Audit of PT Semen Gresik (2017).

To improve competence, in addition to formal education, he also attended various seminars and training, whether certified or not in the context of accounting, finance and audit as well as other relevant fields.

He is a member of the Indonesian Institute of Accountants and the Indonesian Institute of Management Accountant (Ikatan Akuntan Manajemen Indonesia). In addition, he also obtained Certified Professional Management Accountant (CPMA), Chartered Accountant (CA), and Professional Internal Auditor (PIA).



EMPLOYEE IN INTERNAL AUDIT GROUPThe Internal Audit Group unit is lead by Head of Internal Audit Group who is directly responsible to the President Director of the Company. The segregation of Internal Audit Group tasks as of December 31, 2018 is as follows:


Staff

No Name Position Education

1 TUBAGUS M. DHARURY, Drs., MM. GM of Group Internal Audit- Accounting Economics (S1)

- Strategic Management (S2)

2 AINUR ROZI Senior Corporate Auditor Accounting Economics (D3)

3 ERFANTI QODARSIH, SE., Akt., QIA. Senior Corporate Auditor Accounting Economics (S1)

4 DANIEL WIRJAWAN D., SE., CISA. Senior Corporate Auditor Economics & Development Studies (S1)

5 RAHAYU PUSPAWATI, QIA., PIA., SE. Corporate Auditor Accounting Economics (S1)

6 HERU SETYADI, ST. Corporate Auditor Mechanical Engineering (S1)

7 RUDY SUBIJANTORO, SE., PIA. Corporate Auditor Economic Management (S1)

8 ANDI SUMARWOTO, SE., QIA. Corporate Auditor Economic Management (S1)

9 MULYONO, SE. Corporate Auditor Economic Management (S1)

10 SETYO BUDI PRAYITNO, SE. Corporate Auditor Economic Management (S1)

11 BUDI SETIYAWAN, SH., PIA. Corporate Auditor Law (S1)

12 MUHAMMAD FAKHRUDIN M., S.Kom. Corporate Auditor Informatics Engineering (S1)

13 YUDI ISMANTO, S.Kom. Corporate Auditor Informatics Engineering (S1)

14 DIAN PRAPANCA, SE., MM., QIA. Corporate Auditor- Accounting Economics (S1)

- Financial Management (S2)

15 EKA KRISTIANI, SE. Jr Corporate Auditor Accounting Economics (S1)

16 UMMI CHOLSUM Jr Group Internal Audit Officer Senior High School

In RKIA 2018, the requirements for internal auditor in the Internal Audit Group unit are:a. Have knowledge and experience on technical

audit and other disciplines relevant to their field of duty.

b. Have knowledge of capital market laws and regulations and other related legislation.

c. Have the ability for effective interaction and communication both orally and in writing.

d. Comply with professional standards issued by the Internal Audit Association.

e. Understand the principles of good corporate governance and risk management, and

f. Willing to continuously improve his/her knowledge, expertise and professional ability..

This is consistent with the mandate of Bapepam regulations (now OJK), IPPF international audit standards and Internal Audit Charter, where the Company’s auditors are required to constantly update their knowledge and improve audit skills. In this case the Head of Internal Audit Group has taken the policy to carry out the mandate by performing auditor certification in accordance with its field of duty.

The following are data on certification, ongoing or already obtained, and important workshops and seminars participated by the auditors:



Certification Holders

Certified Professional Management Accountant (CPMA) Tubagus MD

Professional Internal Audit (PIA)

1. Tubagus MD2. Budi Setiyawan3. Rudy Subijantoro4. Rahayu Puspawati

Qualified Internal Audit (QIA)

1. Erfanti Q2. Rahayu Puspawati3. Dian Prapanca4. Andi Sumarwoto

Certified Risk Management Professional (CRMP) Erfanti Q.

Certified Risk Management Officer (CRMO) Dian Prapanca

Chartered Accountant (CA) 1. Tubagus MD2. Erfanti Q.

Certified Information System Audit (CISA) Daniel WD

The Company plans to improve the quality of internal audit implementation through enhancement of competence and qualification of internal auditors with professional certification, including:1. Professional Internal Auditor (PIA), 2. Qualified Internal Auditor (QIA),3. Certified Risk Management (CRM),4. Certified Internal Auditor (CIA),5. Certified Information System Auditor (CISA),6. Certified Control Self Assessment (CCSA),7. Certified Risk Governance Professional (CRGP),8. Certified Ethical Hacking (CEH),9. EC Council Network Security Administrator (ENSA), and10. Health and Safety Management System (SMK3).

STRUCTURE AND POSITION OF INTERNAL AUDIT

To ensure its independence, the position of the Internal Audit Group on the Company’s organizational structure lies at the level prescribed in such a way as to ensure the exercise of its authority independently, free from the intervention of the other party. The structure of the Internal Audit Group within the Company’s organization is illustrated in the following chart.

Staff

President Director

Audit Committee

Independent Commissioner

Department Head


Department Head



STATEMENT ON INTERNAL AUDIT GUIDELINES OR CHARTERThe Internal Audit Charter has been approved by the President Director and approved by the Independent Commissioner as the Chairman of the Audit Committee on July 17, 2017. In addition to working guidance, the Internal Audit Charter also plays a role in strengthening roles, functions, responsibilities and basic existence and the implementation of Internal Audit tasks.

Therefore, Internal Audit Charter is socialized to be known by all employees and related parties so as to establish mutual understanding and good cooperation in realizing the Vision, Mission and Objectives of the Company.

Internal Audit Charter consists of 6 (six) Chapter, as follows:1. Chapter I – Preliminary2. Chapter II – Internal Audit Group3. Chapter III – Standard of Audit Implementation4. Chapter IV – Code of Ethics5. Chapter V – Synergy of Internal Audit Functions6. Chapter VI – Closing

DUTIES AND RESPONSIBILITIES OF INTERNAL AUDIT GROUP

In accordance with the Internal Audit Charter, the Internal Audit Group unit is responsible to assist the Company in achieving its objectives by:a. Developing and implementing the Annual Internal

Audit Work Plan includes examination and assessment of the efficiency and effectiveness of finance, accounting, operations, human resources, procurement, marketing, information technology and other activities.

b. Provide suggestions for improvements and objective information on activities being examined at all levels of management.

c. Monitoring, analyzing and reporting on the follow-up implementation of recommended improvement.

d. Arrange quality assurance program for internal audit work.

e. Conducting periodic review and/or audit of financial statements of the Company.

f. Carry out duties as counterpart in coordinating with external auditors and other supervisory institutions.

g. Perform a special audit, if necessary..h. Provide consultancy services in the form of

advisory service, usually at the specific request of a work unit/party requiring consultation. The nature and scope of consultancy services is based on agreement with the work unit/party

requiring consultation. Internal Audit Group should maintain at all times its independency and objectivity, and not to take over the responsibility of Management.

Responsibility of Management include but is not limited to:• Operational activities of the work unit/party

requiring consultation.• Decision making by the work unit/party

requiring consultation should be based on the results of the consultancy.

i. Perform analysis, assessment, recommendation, consultation, and report of all activities that was performed in accordance with:• Internal Audit Profession Standard, • International Professional Practices

Framework (IPPF), • Prevailing laws and regulations,• Other regulations relevant to the Company

such as Semen Indonesia Management System, decrees of the Board of Directors, manuals, work instruction.

j. Prepare a Report of Audit Results to be submitted to the President Director and the Board of Commissioners and forwarded to the Audit Committee.

k. To coordinate, cooperate, and partner with the Audit Committee in their respective roles according to prevailing regulation.

The implementation of audit work by the Internal Audit Group work unit aim to:a. Assisting the management to achieve the

Company’s objectives by offering unbiased assessment and consultation to ensure the effective implementation of risk management, internal control system, and corporate governance processes.

b. Giving a comprehensive, rational, accurate, and timely recommendations to the management to improve its performance, achieve targets and prevent any deviation that might arise.

AUTHORITY OF INTERNAL AUDIT GROUP

In performing its duty, the Internal Audit Group is guided by a Work Plan which has been approved by the President Director and Audit Committee, and has unlimited access and authority for:a. To perform a review of work activity, business

premises, and all areas where the Company has assets or interests.

b. To request information and explanation from all management staff and employees, and also to attend all meetings within the Company that was deemed relevant.



c. To receive a copy of any decision, cooperation agreement, and/or other regulations that was in effect and binding to the Company as well as the necessary summary and minutes of meetings.

d. To examine and study all data, document, and records of the Company in order to obtain the necessary information related to the execution of its duty.

e. To request the services of external auditor at the expense of the Company in the absence of competent or adequate workforce.

f. To access all relevant information about the Company relevant to its duty and function.

g. To perform direct communication with the Board of Directors, Board of Commissioners, and/or Audit Committee.

h. To hold regular or ad hoc meeting with the Board of Directors, Board of Commissioners, or Audit Committee.

i. To coordinate its activities with the activities of the external auditor.

j. Should in performing its duty it found an indication to a fraud, then it will deliver the finding to the President Director and/or Audit Committee for follow up. The investigation for internal operations under the Board of Directors will be performed by Internal audit (could be aided by external auditor), and for Board level and/or above will be performed by external auditor.

All ranks within the Company are required to cooperate fully with the Internal Audit Group. All limitation to access must be communicated to the relevant management personnel and a solution worked out. If necessary, the Head of Internal Audit Group could report and requesting consideration for a solution to the President Director and/or Audit Committee..

SCOPE OF INTERNAL AUDIT ASSIGNMENT

The assignment of Internal Audit Group includes the entire scope of business conducted by the Company and subsidiaries through the activities:a. Testing, evaluating, and offering opinion on the

effectiveness of internal control, risk management system, and corporate governance in line with the policies of the Company.

b. Evaluating, assessing, and offering consultation service including the preparation and execution of Control Self Assessment (CSA) in the Company’s main business process.

c. Ensuring and reviewing the quality of Good Corporate Governance implementation in the Company.

d. Providing assurance regarding compliance to prevailing laws, regulations, standard, and business ethics.

e. Evaluating the reliability and integrity of information and the method used to identify, classify, and report the information.

f. Offering an internal consultation service (if needed) for the Company’s management for: (1) formulation of the Company’s Work Plan and Budget, and (2) facilitate the identification process for risk and control.

g. Performing an audit to the subsidiary in regards to blueprint strategic holding and in accordance with internal audit work plan of the HoldCo.

h. Performing an audit in a subsidiary (if needed) in line with the disposition of the President Director (as shareholder in subsidiary) or Board of Commissioners/Audit Committee, and/or at the request from the subsidiary’s Board of Commissioners through the President Director.

i. Performing any other duty and responsibilities in support of the application of blueprint for strategic holding prevailing in the Company.

TASK IMPLEMENTATION REPORT

In 2018, audit activities were performed based on Advanced Risk Based Audit which included Operational Audit and Special Audit, as follows:a. Operational Audit, performed discussions on

several issues and conducting follow up actions, which included marketing business process, PKBL, Accounting and Finance (analytical review and ICoFR), procurement, and also ICT.

b. Special Audit, performed on the instruction of the President Director and/or Commissioner with the established fields audit.

In addition to audit activities, the Internal Audit Group also plan non-audit activities, especially regarding competence development of internal audit group personnel.

Non Audit activities, are supporting activities of the Internal Audit governance to improve internal auditor standard competencies and the quality of audit results in Semen Indonesia Internal Audit work units.

Non audit activities include:a. Review/training and certification which was

necessary as standard and minimal requirement needed by the internal auditor, including: CIA, PIA, QIA, CRMA, CISA, and CEH.

b. Seminar or conference with supporting topic for improving the competence of internal auditors in areas of:



• Audit (such as IFRS, ICoFR, IIA Conference, IT Audit).

• Corporate business process (such as: SCM, Project Management).

• Becoming the counterpart of external auditor (KAP, BPK, DJBC)

c. Performing quality assurance improvement program and digitalization of Internal Audit documents.• Preparing standards for documentation and

implementation of consultative activities, such as standardization and internal process improvement.

• Standardization for determining Advance Risk Based Audit (ARBA)

• Development of IT based Audit application• Optimizing the use of knowledge management

(Work-flow and MTL)d. Knowledge Sharing

• Policy and Standard of Internal Audit Group• ARBA knowledge sharing• SNIA/Other forum

All follow up activities regarding any finding and recommendation from the Internal Audit Group which were performed by auditee, will be periodically monitored by using a web-based monitoring application which was developed inhouse by the Company through the ICT Services Department.

2018 INTERNAL AUDIT WORK PLANDetails of the Group’s annual Internal Audit work plan, both audit and non-audit activities, are outlined in the Internal Audit Work Plan (RKIA) approved by the Company’s President Director and Independent Commissioner as Chair of the Audit Committee on January 23, 2018.

IMPLEMENTATION REPORT - AUDIT ACTIVITIESIn 2018, the Internal Audit Group has performed 7 (seven) operational audit objects, 3 (three) Analytical Reviews, 1 (one) evaluation of Internal Control over Financial Reporting (ICOFR), and 3 (three) Special Audits.

During 2018 there were also 2 (two) consultancy activities for departments and subsidiaries, as follows:

No. Title Participants

1. Assistance in the preparation of the Board Manuals for the Company & Subsidiaries Management and Procedure All Directorate

2. An Explanation of the Internal Audit Organization SGG Energi Prima

2018 Audit Recommendations and Audit Results Follow-UpIn 2018, the Internal Audit Group has performed audit result with 79 recommendations, which were followed up with 12 recommendations, 14 recommendations were in the process of implementation, and 53 would be implemented in 2019.

IMPLEMENTATION REPORT - NON-AUDIT ACTIVITIESIn line with RKIA, in 2018 has been performed several non audit activities such as:

1. Education and training To fulfill the required internal auditor competences in line with the standard requirement, business demand,

and system changes affecting the operations of the Company, a continuing competence improvement program has been conducted involving all internal auditors at PT Semen Indonesia (Persero) Tbk. (SI) as well as PT Semen Padang (SP), PT Semen Gresik (SG), and PT Semen Tonasa (ST).

In addition of through formal education and certification in internal audit, the Company also strive to improve the competences of its human resources in the field of audit through participation in various workshops, seminars and conferences organized by external parties with topics that are relevant to audit duties.



The following are workshop/conference/training have been attended in 2018:

No. Title Participants from the Internal Audit Group

1. Supply Chain Management Daniel WD, Yudi I, Budi S, Rahayu P, Mulyono

2. ICoFR Tubagus MD, Erfanti Q, M. Fakhrudin M, Eka K

3. Integrated Management System Waras Taufiq, Setyo Budi P, Heru S

4. Asset Appraisal Erfanti Q

5. Integrated Brevet AB Setyo Budi P, Dian P

6. Transportation Management Mulyono

7. Quality Assurance Review Seluruh IAG

8. Cybersecurity Auditing in An Unsecure World Fakhrudin M, Daniel WD

9. Amazing Presentation Erfanti Q

10. Understanding Knowledge of ISO 9001:2015 Fakhrudin M.

11. Operational Audit Setyo Budi P.

12. Basic Audit 2 (QIA) Eka K.

Personnel of Internal Audit Group are also active on several internal audit professional organizations that serve to train or develop the competences of auditors through participation in various seminar/workshop/training sessions organized by, among others:a. The Institute of Internal Auditor (the IIA)-

Indonesian Chapter, andb. Forum Komunikasi Satuan Pengawasan Intern

(FKSPI).

2. Becoming a counterpart of external auditor Up to year-end 2018, the Internal Audit Group was still a partner/counterpart for:a. External auditors from Deloitte on the General

Audit of Financial Statements for Fiscal Year 2018

b. External auditors from Deloitte in the audit of PKBL Financial Statements for Fiscal Year 2018

c. Compliance Audit on Legislation and Internal Control for Fiscal Year 2018

d. Evaluation of Company Performance for Fiscal Year 2018 ended December 31, 2018 and KPI that has been determined by the Board of Commissioners

e. Risk Maturity Level Assessment 2018f. Compliance with requests for annual Company

documents by BPK RIg. 2018 GCG Assessment

3. Implementation of Quality Assurance Improvement Program

In accordance with a) International Professional Practices Frameworks (IPPF; b) Corporate Internal Audit Charter (July 17, 2017), The Company is fully committed to implementing a Quality Assurance Review (QAR) that is to be conducted by an external party on the Internal Audit unit at least

once every 5 years, and an internal QAR every year.

As a result, the Internal Audit Group carried out an internal QAR. The results of the QAR states that out of the 11 Standards, 4 are deemed APPROPRIATE and 7 are deemed PARTIALLY APPROPRIATE.

Subsequently, the Company has launched the Quality Assurance Improvement Program to pursue the recommendations of the internal QAR.

4. The development of IT-based audit application In 2018, there are 5 (five) applications already

developed, and will be used by the Internal Audit Group, such asa. Electronic Governance Risk Compliance

– Audit (e-GRCA) application which is a comprehensive application for Risk Management and up to Audit. The implementation of this application was one of the recommendations by PWC during QAR 2016.

b. Follow Up Monitoring (MTL) application, which is an application for monitoring the execution of a recommendation from the Internal Audit Group and establish KPI Departments that are responsible for following up recommendations..

c. Document Management System (DMS), which is a digital file storage tool for documents of Internal Audit Group.

d. Continuous Monitoring (CM), an application that allows the Company and the Internal Audit Group to immediately follow up if there is a deviant condition in SAP transaction data.

e. Timesheet, an application to record the auditors activities so that the realization of mandays can be measured as well as having a planning basis for the following year.



INTERNAL AUDIT GROUP’S PERFORMANCE EVALUATIONThe Internal Audit Group’s performance is measured based on the Key Performance Indicator that was determined in early 2018. Based on the results of the internal assessment, all of the 30 targets of the Internal Audit’s performance assessment aspects within the KPI were achieved.

Several aspects had even achieved results exceeding 100%.

THE PARTY THAT RESPONSIBLE TO APPOINT AND DISMISS THE INTERNAL AUDIT GROUPThe Head of Internal Audit Group is appointed and dismissed by the President Director with approval of the Board of Commissioners.

INTERNAL AUDIT GROUP’S HUMAN RESOURCES DEVELOPMENT PROGRAMThe Company has prepared the Semen Indonesia Group Internal Audit HR competency development program that are in accordance to the job group within the Internal Audit Group so as to achieve the

competency that is expected by carrying out the learning intent specifically in accordance with the tasks within the audit process.

SYNERGY OF INTERNAL AUDIT GROUP FUNCTION

In line with the transformation of the Company to become a strategic holding, then it is deemed necessary to redefine and redistribute the tasks and responsibilities of various strategic and operational functions within the Company’s group. As the Internal Audit is a strategic function, thus it needs a redefinition and redistribution of task, function and responsibility between Internal Audit HoldCo and those in the OpCo in line with the Board Manual for holding and subsidiaries that is applied in the Company.

The essence of the separation of duties is the affirmation that Internal Audit at HoldCo performs audit duties on aspects related to the implementation of strategic operational activities in accordance with management policy at the holding level. While Internal Audit at OpCo performs audit duties on aspects of the implementation of policies and operational activities in accordance with the scope activities of the Company.

INTERNAL AUDIT SI GROUP SYNERGY ROADMAP 2017-2021In performing its function, the Internal Audit Group has set a roadmap for the synergy of Internal Audit at SI Group as follows:

• Implementation of KSO audit system design, procedures and organization

• Implementation of systems: 1. e-audit Group

(e-GRCA)2. Timesheet3. Continuous

monitoring • Standardization

of IA group consultative activities

• Review of Internal Control and GCG Self Assessment

• Group Audit on Strategic Investments

• Competence certification of Internal Auditors

• Optimization of Group e-audit (e-GRCA) system

• Implementation of systems:1. Timesheet

Group IA 2. Continuous

monitoring Group IA

3. Group GCG Self Assessment

• Improvement on IA consultative activities at SI

• Design of Group Internal QAR blueprint


• Competence certification of Internal Auditors

• Optimization of Group IA systems:1. e-audit Group

(e-GRCA)2. Timesheet 3. Continuous

monitoring • Improvement

on Group IA consultative activities

• Implementation of Group Internal QAR


• Audit of Non-Cement Business Subsidiary

• Internal Auditor Competency Certification

• IA Group Standardization


(e-GRCA)2. Timesheet 3. Continuous

monitoring • Improvement

on IA Group consultative activities

• Implementation of QAR Internal Group






(e-GRCA)2. Timesheet3. Continuous

Monitoring• Improvement on IA

Group consultative activities

• Implementation of External QAR in Semen Indonesia (Persero) Tbk. (Target Maturity Level: Problem Solver)





2017 2018 2019 2020 2021



INTERNAL CONTROL SYSTEMThe Company has conducted an evaluation on the effectiveness of internal control and supervision on an ongoing basis. In addition, the Company, through its operational units as well as the Internal Audit unit, implements at all times the monitoring and mitigation of major risk factors as part of activities in internal control and supervision.

LEGAL CASESOn August 2, 2017, there was a State Administration Lawsuit from Giring et al to the Head of Agrarian Office & Spatial/BPN Kab. Tuban in PTUN Surabaya with the object of dispute Letter Head of Office of Agrarian & Spatial/BPN Kab. Tuban Number: 1064/100-35.23/V/2017, dated May 5, 2017, regarding the Explanation of the request for measurement. Giring et al (8 people/field) Gaji Village, Kec. Kerek, Kab. Tuban. This case is the same issue as the State Administrative Lawsuit from Daru et al., but with the object of different state administrative lawsuits.

On March 1, 2018, PTUN Surabaya issued a Decision that rejected the Plaintiff’s claim in its entirety. On the Decision of the Administrative Court of Surabaya, then on March 14, 2018, the Plaintiff filed an appeal to

the Surabaya High Administrative Court. At the date of 31 July 2018 Surabaya State Administrative High Court has issued Decision No. 91/B/2018/PT.TUN.SBY on an appeal case that upheld the decision of the first level court. Based on the Appeal Decision of the Surabaya State High Administrative Court, the Plaintiff filed an appeal to the Supreme Court.

For further information, see Note 50, Consolidated Financial Statements in the 2018 Annual Report.

INDEPENDENT PUBLIC ACCOUNTANTThe Public Accountant Firm independently performs the fairness checking of transactions and financial position of the Company. The designated Independent External Auditor shall not be under the control of the Board of Commissioners, the Board of Directors or any other parties with any kind of interest.

The designated External Independent Auditor is responsible for submitting opinion on the position and compliance of the audited consolidated financial statements in accordance with prevailing general accounting principles in Indonesia.

Public Accountant Firm appointed by the Company in last 5 years.

Fiscal Year Accountant Public

Accountant Firm Contract Agreement Audit Fees(Rp) Opinion

2014 Eny Indria W.(No. AP. 0559)

KAP Osman Bing Satrio & Eny

0448/HK-06/50029553/05.2014 4,100,000,000 “Fair without

exception”

2015 Eny Indria W.(No. AP. 0559)


0398/HK-06/733010/06.2015 4,358,500,000 “Fair without

exception”

2016 Muhammad Irfan(No. AP. 0565)


0783/PG.04.03/733010/07.2016 4,550,765,000 “Fair without

exception”


KAP Satrio Bing Eny & Rekan

0000407/PG.04/DP/50039657/2000/09.2017 6,726,750,000 “Fair without

exception”


KAP Satrio Bing Eny & Rekan

0000895/HK.01/DP/50045125/2000/09.2018 7,215,000,000 “Fair without

exception”



COMPANY’S ACCOUNTANT FIRM YEAR 2018The Annual General Meeting of Shareholders dated April 30, 2018 has decided to appoint Public Accountant Firm of Satrio Bing Eny & Rekan (a member firm of Deloitte Touche Tohmatsu Limited), address at The Plaza Office Tower 32nd Floor Jl. MH. Thamrin Kav. 28-30 Jakarta, under license No. KMK. 89/KM.1/2017 to examine and state its opinion on the financial statements of the Company for the year ended on December 31, 2018.

In accordance with the prevailing provisions (Government Regulation of the Republic of Indonesia No. 20 of 2015 on Public Accountant Practices), the provision of audit services to historical financial information to an entity (including a SOEs) by a Public Accountant shall be limited to a maximum of 5 (five) respective fiscal year. Such limitation also applies to Public Accountants who are Associated Parties.

Assignment to KAP Satrio Bing Eny & Rekan is the sixth year assignment to conduct a general audit of the Company’s financial statements, but the Public Accountant who perform the audit task had only entered the third year (3).

The assignment and procurement of the Company’s Public Accountant Firm have complied with applicable regulations, including Bapepam-LK Regulation No. VIII.A.2 on Independency of Accountants Providing Audit Services in the Capital Market, Bapepam-LK Regulation No. X.K.2 on Requirement to Submit Regular Financial Reports, and the Professional Standards for Public Accountants (SPAP) issued by Institut Akuntan Publik Indonesia (IAPI).

AUDIT ON THE COMPANY’S CONSOLIDATED FINANCIAL STATEMENTS FISCAL YEAR 2018As per Contract 0000895/HK.01/DP/50045125/2000/09.2018 dated September 20, 2018 concerning the General Audit on the Consolidated Financial Statements of PT Semen Indonesia (Persero) Tbk. Year 2018, Muhammad Irfan is the Partner in Charge (No. AP.0565) in the assignment, assisted by several other team members.

Designated external auditor confirm its independency to the Company and responsible for conveying

an independent opinion on the conformity of the audited financial statements in accordance with prevailing general accounting principles in Indonesia.

SCOPE OF WORK The scope of work, as stipulated in the contract, is as follows:1. Perform an audit on the SEMEN INDONESIA

Consolidated Financial Statements for the Fiscal Year ended December 31, 2018, which include:a. An audit to the consolidated financial

statements, comprising the consolidated financial position (balance sheets), statement of profit or loss and other comprehensive income, changes in equity, consolidated cash flows and notes to the financial statements, based on applicable auditing standards in Indonesia (Standar Profesional Akuntan Publik issued by Institut Akuntan Publik Indonesia/IAPI), and requirements of Financial Services Authority (OJK);

b. Reviewing SEMEN INDONESIA internal control structures including IT-based information systems used by SEMEN INDONESIA and submitting proposals/recommendations for improvement of internal control structures in the form of a Management Letter.

2. With due consideration to the provisions in point (1), SBE will provide/conduct audit services as follow:a. Provide general Audit Services to the

Company’s Consolidated Financial Statements for the Year Ended December 31, 2018 and performs a general audit of the consolidated financial statements of Thang Long Cement Joint Stock Company (IFRS Conversion) for purpose of consolidation of Semen Indonesia.

b. Submit an Independent Auditor’s Report on the Company’s Consolidated Financial Statements for the Fiscal Year ending December 31, 2018 in Indonesian and English in which format and content are in accordance with prevailing reporting standards, made in hard copy or soft copy.

c. Provide improvement recommendations for SEMEN INDONESIA internal control system in the form of Management Letter.

Based on this Agreement, the audit services provided by SBE do not include audit services of SEMEN INDONESIA subsidiaries. The work agreement for subsidiaries that will be audit by SBE will be made in a separate contract. However, SBE shall coordinate with the auditors of the Company’s subsidiaries, in case their financial statements are not audited by SBE.



Based on this Agreement, the audit services provided by SBE is not inclusive of the implementation of the Agreed Upon Procedures on the report of Prudential Principle Implementation Activities (KPPK) in accordance with Bank Indonesia Regulation No. 16/22/PBI/2014.

SBE will inform the Audit Committee of Semen Indonesia in the event that SBE is appointed by Semen Indonesia to provide services other that this audit service.

AUDIT ON PKBL FINANCIAL STATEMENTS FOR FISCAL YEAR 2018As per Contract 0000987/HK.01/DP/50045202/2000/09.2018, dated September 20, 2018 concerning the General Audit on Partnership and Community Development Program of PT Semen Indonesia (Persero) Tbk. Year 2018, Muhammad Irfan is the Partner in Charge (No. AP.0565) for General Audit of Financial Statements, and F. Ronni Boy Pangaribuan (No.AP.0954) for the Implementation of Agreed Procedures, which were assisted by several team members.

The appointed External Auditor has confirmed its independency to the Company and is responsible to provide an independent opinion the compliance of the audited financial statements with generally accepted accounting principles in Indonesia.

SCOPE OF WORK The scope of work, as stipulated in the contract, is as follows:1. Perform a general audit on the financial statements

of PKBL of PT Semen Indonesia (Persero) Tbk. (The Company) for the fiscal year ended on December 31, 2018 in accordance with the audit standards established by the Indonesian Institute of Certified Public Accountants (“Indonesian standard auditing”).

2. Reviewing internal control structures including IT-based information systems used by PKBL and submitting proposals/recommendations for improvement of internal control structures in the form of a Management Letter.

3. Conducting engagement to implement agreed procedures for Agreed Upon Procedures (PKBL) by SEMEN INDONESIA. With audit findings follow-up in 2017 and the implementation of certain aspects of:

a. Regulation of the Minister of State-Owned Enterprises which regulates the Partnership Program of State-Owned Enterprises with Small Business and Community Development Program.

b. Circular Letter of the Minister of SOE No. SE-433/MBU/2003 dated September 16, 2003 on Guidelines for Implementation of Partnership Program of SOEs with Small Business and Community Development Program.

c. Other rules and regulations relating to the implementation of current and future SOE Partnership Program with Small Enterprises and Community Development Programs as long as this work is still ongoing.

All assignments in the scope of work are to based on the Professional Standards for Public Accountants (SPAP) issued by Institut Akuntan Publik Indonesia (IAPI).

OTHER SERVICES PROVIDED OTHER THAN AUDIT SERVICES ON ANNUAL FINANCIAL STATEMENTSOther than the Audit on the Company’s Consolidated Financial Statements for Fiscal 2018 and the PKBL Financial Statements for Fiscal 2018, KAP Satrio Bing Eny & Rekan also provided:1. AUP of performance on the Financial Statements

of PT Semen Indonesia (Persero) Tbk as of December 31, 2018.

2. AUP Compilation of PKBL Financial Reports of SI, SP and ST for fiscal year as of December 31, 2018.

3. Compliance Audit of Legislation and Internal Control of PT Semen Indonesia for fiscal year December 31, 2018.



RISK MANAGEMENTTo handle and mitigate various risks that arise in the course of implementing operational as well as investment activities, the Company since 2005 has comprehensively applied risk management methods, namely Enterprise Wide Risk Management (EWRM) that is integrated in all of the Company’s management system. EWRM has consistently been applied in all of the business processes and strategic as well as operational decision-making. This system has gradually continued to be developed in accordance with business scale growth, which is aligned with the enforcement of the SOE Ministry regulation as well as with the latest risk management methods. The following are summarized developed Risk Management methods implemented by the Company since 2005.

PREPARATION PHASE (2005–2008)

The preparation phase is carried out to prepare the infrastructure needed for the implementation of risk management, and is carried out within 3 years involving the following activities:• Establishment of the Risk Management Unit;• Preparation of personnel competences;• Risk assessment pilot project at Production and

Marketing Division;• Establishment of the Strategy, Risk Management

and Investment Committee by the Board of Commissioners;

• Audit on the implementation of risk management by the Audit Committee;

• Preparation of the Risk Management Manual;• Preparation of the review on strategic risks;• Preparation of the roadmap for risk management

development.

IMPLEMENTATION PHASE (2009–2018)

The system that has been designed and analyzed in the preparation phase is next implemented at the implementation phase, involving the following activities:• Preparation of risk management policies;• Establishment of the risk management team;• Preparation of risk management procedures;• Risk management socialization and training at all

levels of the organization.• Risk Assessment at all work units;• The first measurement of Risk Maturity Level by

an independent institution;• Performing risk review related to the Company’s

strategic and operational issues.• Implementation of Risk Based Audit;

• Integration of risk management with policies and procedures owned by the Company;

• Preparation of evaluation guidelines for Risk Maturity Level of the Company for self assessment;

• Implement Value at Risk;• Implementation of Internal Control of Financial

Reporting (ICOFR); • Measurement of Risk Maturity Level by

independent institutions;• Implementation of ISO 31000/2009 framework.

DEVELOPMENT PHASE (2019–2022)

The Company develops the structures and systems that have been implemented in order to test the consistency and sustainability of the various systems, with a completion target by 2022, involving the following activities:• Implementation of Groups’ Integrated Risk

Management System;• Development of Enterprise Risk Management

Single Platform (ERMS) Website;• Alignment of ISO:31000/2009 towards

ISO:31000/2018;• Initiation of implementation of Corporate Loss

Event Database;• Initiation of Corporate Risk Modeling

implementation;• Implementation of Key Risk Indicator (KRI) and

Key Control Indicator (KCI) for Key Performance Indicator (KPI);

• Initiation of Early Warning System (EWS);• Initiation of Business Continuity Management

(BCM) implementation;• Become the benchmark and success story in Risk

Management implementation.

RISK MANAGEMENT INFORMATION SYSTEM

In anticipation of the advent of the Industrial Revolution 4.0 era, the Company strives to adjust itself with existing business competition conditions by implementing changes in line with market demands whereby the Company can continue to sustain and develop in future.

As a result, the Company needs to form an information technology system that can enhance the risk management application process effectiveness and efficiency so as to create or maintain the Company’s values in every decision-making policy in the years to come.



The existence of the information technology system in applying Risk Management within the Company serves as an outright requirement in the Industrial Revolution 4.0 era, thereby a system is needed that can ensure that Risk Management is optimally and consistently applied.

Picture 1Risk Management System Website

The Information Technology System that is will be launched in early 2019 was made in accordance with the Company’s overall demand that will be integrated with other Management System that takes effect in the Company that includes: ISO:9001/2015; ISO:14001/2015; ISO:17025/2005; OHSAS:18001; SMK3; SMKP and other standards.

INTEGRATED GOVERNANCE, RISK & COMPLIANCE (INTEGRATED GRC)The increasingly more complex activities of the Company operating in various regions in the country and abroad as a result of the realization of the planned development and expansion measures, has exposed the Company to increasingly diverse challenges. These challenges include: an appropriate investment decision-making process, supervision of the implementation of investment activities, the management of Subsidiaries, changes in the business environment, and compliance with applicable laws and regulations, both within the country and overseas operating units. These challenges must be understood and managed effectively so that the Company can realize its objectives and maintain the desired level of optimum and sustainable growth.

In relation to the above, the Company develops professional and responsible corporate governance practices through the implementation of GCG, Enterprise Risk Management (ERM), and Corporate Compliance System (CCS) in an integrated manner. The Company sets out the Policy and Guidelines for the Implementation of Integrated GRC as a form of commitment to the professional and responsible management of the company and becomes the basis for the development of Integrated GRC systems, structures and infrastructure applicable to Semen Indonesia Group and Subsidiaries.

With integrated governance, risk, and compliance (GRC), the management of assurance functions is implemented more effectively and efficiently and is supported by a system of monitoring and reporting its implementation throughout the Semen Indonesia Group and Subsidiaries.



Risk Management

Compliance

Governance

• Principles• Framework• Process

• Corp. Management• Strategy• Policy Management

• BoD & Management Oversight

• Compliance Program• Consumer Complaints

Management Program• Compliance Audit

(Independent)

INTEGRATED GRC MAIN FRAMEWORK AND COMPONENTS The key components within the Company’s Integrated GRC framework are: • Corporate Values and Culture, • Corporate Governance, • Enterprise Risk Management (ERM), • Compliance Management System, and • Integration Enabler: GRC single-platform.

The relation and processes among the five integrated GRC components are shown in Figure 1 as follows:

Group & Board Governance – Principles, Manual, Charters, StructuresStrategic Planning, and Report Assurance, Certification & Audit

01. SIG Values and Culture

Information and Communication Technology (ICT) – Single – GRC Platform Across Group

Target Determination, Strategic Decision Making and

Corporate Strategy Formulation

Group Portfolio &Investment Risk

Management

GroupOPRISK

Management

KPI-KRI &Integrated

SM

Business Continuity

Management

ICOFR & CSA KCICompliance

with Laws and Regulations

HSE StandardImplementation

Documentation and Register of Company

Obligations and Compliance

02. Corporate Governance

03. Enterprise Risk Management (ERM)

04. Compliance Management System

05. Integration Enabler

Picture 1Integrated GRC Components



SUPERVISORY AND CONTROL OF INTEGRATED GRCThe Company’s Integrated GRC System embraces the concept of integrated involvement at all lines with emphasis on the competencies and integrity of Semen Indonesia Group human capital. This is because the performance, growth, and sustainability of the Company are determined by its the human capital.

The Three Lines of Defense are pivoted to the President Director as the one with the highest responsibility for the implementation of Integrated GRC, with the daily management mandated to a designated Director, namely Director of Strategy and Business Development (oversees the risk management function), as well as Director of Human Resources & Law (oversees the functions of GCG), as illustrated in the following diagram.

1

2

3

C-Level Officers GRC Executives and Risk & Compliance Managers Working Units

Chief Risk & Compliance Officer Corporate Risk & Compliance Officer GRC Function

BOC CEO (GRC Champion) Chief Audit Officer Fungsi Internal Audit

Picture 2The Supervisory and Control Lines of GRC

Through this Integrated GRC-based risk management, there is a close correlation between the ERMO Unit in it capacity as the Corporate Risk Manager, the business process owner as the Risk Coordinator, and Internal Audit Unit as the Risk Control. Risk management is the responsibility of the business process owner, whereby all business process owners are responsible for the risks, control over the risk, as well as the handling of the risk/mitigation. The Company has appointed a risk officer in all business process that is responsible to managing risks and conduct risk monitoring. All of the personnel within the ERMO unit possess a risk management certification, namely ERMCP and ERMAP.

ORGANIZATIONAL STRUCTURE OF RISK MANAGEMENTThe Company has established ERMO Unit (Enterprise Management Office) that acts as coordinator in the implementation of risk management. The Unit designs among others a risk management system, the framework & road map for the development and improvement of infrastructure required for the implementation of risk management, facilitates and communicates all activities related to the implementation of risk management, and others.

RISK MANAGEMENT POLICY

The Company has transformed the risk management standard which previously used the AS/NZS standard to ISO 31000 standard. By the application of ISO 31000 and supported by the House of Risk of the Company, both become core infrastructure in the implementation of risk management of the Company.

By applying ISO 3000 as the framework it is expected that the Company’s risk management is implemented in accordance with international standards and in alignment with the Company’s vision and mission. The Company’s risk management is also expected to be able to support the implementation of Good Corporate Governance (GCG) so that business processes built by the Company can proceed smoothly in line with stakeholder expectation.

ISO 31000 is an international standard used in risk management implementation guidelines published by the International Organization for Standardization (ISO) and is not developed for certification purposes. ISO 31000 being issued on 13 November 2009, is a standard development of AS/NZS 4360:2004 issued by Standard Australia.

As a guideline for the implementation of risk management, the Company developed an internal system and frame of reference namely the “House of Risk Cement Indonesia” (HORSI). HORSI governs all risk management infrastructure owned by the Company so that the implementation of the Company’s risk management is aligned and supports the Company’s performance.



Organization Structure Risk Policy Risk Procedure Risk Evaluation

Guideline

Risk Assessment

Risk Management Information System (IT)

Risk Based Audit

Risk Management Evaluation

Risk Mitigation

Monitoring & ReviewReporting

The implementation of risk management or various related programs as planned often met with a number of obstacles. The biggest obstacle in the application of risk management is the socialization of the program to all elements of the Company, internal or external. The Company anticipates this by applying regular socialization and integrated with the existing system development.

In addition, the ERMO Unit is also proactively become facilitators and resource persons in the discussion process with risk process owner, among others, to provide a risk opinion and risk analysis consultation. With regular socialization and system development, it is expected that risk management could evolve into a culture underlying all activities of every element of the Company.

RISK ASSESSMENT, KEY RISK INDICATOR, AND KEY CONTROL INDICATOR Periodically, business process owners perform risk assessment and in 2012 the risk assessment has been equipped with Key Risk Indicator (KRI) and Key Control Indicator (KCI) which are used to detect potential risks in achieving the Key Performance Indicator (KPI) of the Company. Therefore the KRI can be used as a leading indicator of KPI achievement. It is expected that the identification of KRI and KCI are able to improve the assurance of achieving the Company’s target (KPI) as the early warning

of potential risk indicators as well as the control measures have been done.

The risk assessment process which is undertaken by the business process owner/risk owner has been determined to be one of the mandatory KPIs (KPI generic), which is quarterly evaluated and monitored. The result of the risk assessment conducted by the business process owner/risk owner is submitted to the GRC Unit for monitoring and subsequently submitted to the Internal Audit Unit. The result of the risk assessment is assessed on the effectiveness of the control and treatment (risk mitigation) by the Internal Audit Unit. In addition, the result of risk assessment is also used as input in conducting risk-based audit.

EVALUATION ON RISK MANAGEMENT IMPLEMENTATION

The Company periodically perform a risk maturity level assessment using the AS:NZS criteria, through improvement and enhancement of quality for risk management application. Evaluation were done by using seven criteria which included context determination, risk identification, risk analysis and evaluation, risk handling, risk control, information and communication, as well as monitoring and review.



Assessment of the effectiveness of risk management implementation will yield a spectrum of score from 1 to 5, which started with initial (level 1), repeatable (level 2), defined (level 3), managed (level 4), and optimized (level 5).

From the result of the evaluation using the methods of document checking, questionnaire, and also interview with the related individuals, we have received score maturity level of 4.2 for the application of risk management in 2018.

Through the implementation of various work programs that will be performed in the coming years, it is expected that the Company will achieve improved maturity level.

There are specific changes to the methods within the risk maturity level assessment process in 2018, namely the adjustment with the latest ISO 31000 criteria. Assessment aspects within this adjustment is not only in the form of the risk management process, but also covers the risk management framework and risk management support implementation. Once these three methods are merged, therefore, the risk maturity level in 2018 amounts to 3.70.

Risk Maturity Table

No Risk Management Implementation Components

Maturity Level

2011 2013 2015 2017 2018

1 Context Implementation 4.01 4.24 4.60 4.60 2.67

2 Risk Identification 3.30 3.75 3.80 3.30 4.46

3 Risk Analyses 3.12 3.75 4.40 4.30 4.33

4 Risk Evaluation 4.16 3.75 3.10 3.10 4.33

5 Risk Handling 3.12 3.21 4.70 4.10 3.90

6 Communication and Consultancy 3.02 2.86 3.50 4.30 3.53

7 Review and Monitoring 3.75 3.54 3.30 4.30 3.90

Total Maturity Score 3.48 3.70 3.90 4.02 4.27

The Company strives to enhance and develop the risk management system, with a number of plans/work plans which will proceed in 2018. So that it is expected that in the next period the Company will achieve a higher score of maturity level.

ENTERPRISE RISK MANAGEMENT BENCHMARKING PROGRAM

In addition to implementing the Risk Maturity Level Assessment as described before, the Company from 2013 to 2017 has also actively participated in enterprise risk management benchmarking program in various countries such as Hong Kong, Spain and New Zealand, which was organized by CRMS Indonesia. In 2017, the company in New Zealand that become the benchmark was Vector Limited (an integrated energy company), Auckland Post Bank (the largest bank in New Zealand), Institute of Directors (the largest profession standardization institution for director in New Zealand), and RIMS (the biggest professional profession GRC institute in New Zealand).

There are 10 criteria that used in the ERM implementation benchmark, namely sponsorship and positioning, managing the ERM process, risk identification, risk prioritization, risk treatment, reporting, monitoring, culture and embedding, communication, and working with counterparties. Based on those criteria, the benchmark result is given in the following figure:



Benchmarking of ERM Implementation of PT Semen Indonesia (Persero) Tbk

PT Semen Indonesia (Persero) Tbk.Sponsorship and

Positioning

NZCompanies

SEMEN INDONESIA

Managing the RiskManagement

Identification

Prioritisation

Treatment

Reporting

Monitoring

Culture andEmbedding

Communication

Working withCounterparties

0%

20%

40%

60%

80%

100%

With the result from the benchmark, it can be concluded that the Company:• Has a commitment to apply risk management in

all aspect of the management of the Company, supported by the work programs of the Board of Directors, and the monitoring of the execution by the Board of Commissioners.

• Has developed the ability to identify, asses, and construct risk priorities consistently in all operational activities of the Company.

• Has performed risk analysis consistently with both qualitative and quantitative methods.

• Has achieved a risk culture inherent in decision making and the management of the Company’s operations.

ASEAN RISK AWARD

In 2016 and 2017, the Company has participated in ASEAN Risk Award that was held by Enterprise Management Academy (ERMA) and succeeded in achieving the award as runner up for RISK EDUCATOR category.

REVIEW OF THE IMPLEMENTATION OF RISK MANAGEMENT

The Company annually perform a risk assessment. In 2018, the Company has performed the assessment on business process and KPI and has identified the significant risks on all departments. From the significant risks that were identified, the Company then established the high level corporate risk to anticipate potential risk that was considered most significant in preventing the company to achieve its goals.

To change the potential risk into a profitable opportunity for the Company, the Company has identified a number of control and mitigation measures on all risks, and especially the high level corporate risk to minimize the probability and impact of the risk.

Some of the risks in the “high level corporate risk” that were identified and being mitigated in 2018 are presented in the following table:

Type of Risk Risk Indicator Mitigation

Risk of Market Share

• Slowing of Economic Condition• New entrants with aggressive strategy• Decrement of Customer Loyalty and

Satisfaction

• Acquisition of PT Semen Holcim Indonesia.• Strengthening mass communication with

strategies according to Brand Strategy Development study results and perform marketing intelligence

• Improved quality of customer intimacy• Conduct promotional programs to improve

customer perceptions of product quality excellence

Risk of Business Competition

• New investor in cement industry (especially from China)

• More active competitor’s activities and build new mill and grinding plant

• Ensure 100% minimum supply according to main market target with supply chain management implementation

• To penetrate new potential market (extensification) and intensification existing market

Risk of Raw Material

• Obstacles in the mastery of new plant construction materials

• Increased utility of production equipment• Obstacles in land acquisition• Limitations of supply and quality of raw

materials• Constraints of clay licensing

• Monitoring on each stage of new plant construction

• Cooperation with strategic partners in land tenure

• Tenure of land through subsidiaries/affiliates

• Routine monitoring of relevant agencies on the progress of licensing and formulating an acceleration strategy



Type of Risk Risk Indicator Mitigation

Risk of Capex Management

• Development of company’s related factory/new packing plant

• Rejection by NGO and communities related to the establishment of new plant

• Take a social and environmental approach before capex projects

• Collaborate (joint venture) with local company

Risk of Environment and Social

• The public concerns on environmental impacts of the Company’s operations and the establishment of a cement plant.

• Exceeded BML measurement indicator

• Planning and realization of quality and targeted social responsibility programs in accordance with local wisdom.

• Approach to community and community leaders.

• Application of SHE management and proper environment.

Risk of Research and Development

• The emergence of new product types or product derivatives that have not been reviewed by the Company

• Perform market research to monitor the sales of cement product and its derivatives.

• Cooperate with education institution and other R&D institutions.

Risk of HR • Lack of human resource productivity.• Dissatisfaction over career path.• Increased strategic projects that require

highly competent personnel

• Implementation of HCMP in improving employee competency.

• Provision of competency-based remuneration.

• Implementation of Knowledge Management.

• Conduct MPP and policies in accordance with the increasing HR needs.

Risk of Damaged on Main Production Machine/Equipment

• Unstable production output• Overheating• Poor production process• Production exceeds the design capacity as

previously specified

• Routine Maintenance.• Setting optimization of production pattern.• Operation synergy between opco to

get best practice of production and maintenance.

CODE OF CONDUCTAs a commitment to carry out its business activities to create long-term corporate value, the Company develops and establishes ethical guidelines for all employees as set forth in the Company’s Code of Conduct document..

The Code of Conduct is a commitment consisting of the Company’s business ethics and the behavioral ethics of every employee in Company which is structured to influence, shape, organize and conduct behavioral conformity based on ethical sensibility, ethical reasoning and ethical conduct so as to achieve consistent output in accordance with the work culture of the company in achieving its vision and mission.

Every employee of the Company shall sign a statement of compliance with the Code of Conduct. Similar to parties with interest to the Company such as partners, suppliers and others are required to respect and implement the Code of Ethics while interacting with the Company.

The Principles of the Company’s Code of Conduct which must be met by the Company’s Employees include: (a) Integrity and Commitment of Employees; (b) Employment Relations related to Work Environment which are Free of Discrimination, Harassment, Threat and Violence; Inter-Company Cooperation; and Superiors and Subordinates; (c) Compliance with Laws and Regulation; (d) Conflict of Interest and Misuse of Position; (e) Fair Employment; (f) Confidentiality of Data and Information and Disclosure Policy; (g) Intellectual Property Rights; (h) Use of Electronic Communications; (i) Insider Trading; (j) Award and Receipt of Gifts (Gratification); (k) Donation; l) Bribery; (m) Political Activity; (n) Protection and Use of Company Assets; (o) Safety, Occupational Health and Environment (K3L); (p) Data Recording, Reporting and Documentation; (q) Misuse of Narcotics, Illicit Drugs, Liquor and Gambling; (r) Corporate Image.



STATEMENT ON THE IMPLEMENTATION OF THE CODE OF ETHICS AT ALL LEVEL OF ORGANIZATIONThe Company Code of Conduct applies and binds to every employees at all levels of the organization. Every Company’s employee is required to sign a statement of compliance with the Company’s Code of Ethics. Similar to parties with interest to the Company such as partners, suppliers and others, are required to respect and implement these Guidelines while interacting with the Company.

All Board of Commissioners, Board of Directors and Employees have signed a commitment to implement the Code of Ethics and make the implementation of GCG as a KPI for all Work Units and Employees. In addition, the Company has always consistently conducted GCG implementation assessments conducted by independent parties and the recommendations are always part of the process of improving the implementation of GCG.

DISSEMINATION, IMPLEMENTATION, AND ENFORCEMENT OF CODE OF CONDUCTThe Company is committed to disseminating, internalizing, and monitoring the Company’s Code of Conduct to all employees of the Company as well as external parties of the Company with the aim that each individual understands and able to implement the Guidelines.

The socialization and internalization of the Code of Conduct, along with the monitoring on the implementation of the Code of Conduct are conducted effectively and thoroughly by Corporate Secretary, Legal & GRC Department, and Internal Audit. The Company also conducts socialization as an effort to introduce, disseminate information with regards to the provisions in the Code of Conduct to all levels within the company as well as external parties related to the company.

TYPES OF SANCTIONS FOR OFFENDERS OF CODENon-compliance with provisions in the Code of Ethics is categorized as a violation and a crime (which includes corruption and economic crime, as well as criminal conduct). Non-compliance is categorized as a crime and will be followed up according to prevailing laws and regulations, and non-compliance categorized as a violation will be followed up in accordance with the provisions of Employee Discipline that has been established company.

NUMBER OF OFFENDERS CODE AND SANCTIONS GIVEN

None.

REINFORCEMENT OF CORPORATE CULTUREThe Company continuously strives to improve understanding of the corporate culture that has been established as the foundation of the Company’s work. With the same corporate culture, it is expected that the Company’s pace will become more synergistic and together will achieve the established vision. One of the efforts is strengthening the CHAMPS culture.

The CHAMPS culture continues to be strengthened to all employees as a form of employee identity. This Corporate Culture is a synergy of the Corporate Culture that exists throughout the Company and its Subsidiaries. The process of establishing a corporate culture begins with the awareness that the Company needs to bring the entire Group of Companies together.

The word CHAMPS is a fragment of the English word “CHAMPION” which means “winner”, while the letter S at the end of the word CHAMPS denotes “more than one person” so that every person in the Company is a winner that will bring victory to the Company amidst the tough competition Faced by the Company.



The Company also has Spirit SMI namely: • S inergy • M ilitant • I ntegrity

The three spirits of Semen Indonesia are the sterilization of CHAMPS culture which consists of 6 cultural characters. Synergy becomes the spirit of the 2 character CHAMPS culture that meet customer expectation and strengthen teamwork. It becomes the spirit for the Company to synergize with customers through teamwork.

Militant as the second spirit includes compete culture with clear and synergized vision and have a high spirit for continuous learning. Implementation of the company’s vision and the spirit to continue learning is a manifestation of militancy towards the company. Integrity includes the culture of Act with high accountability and perform ethically with high integrity.

WHISTLE BLOWING SYSTEM

PROCEDURES FOR SUBMITTING REPORTING VIOLATIONS

The WBS Guidelines also describe the procedures for reporting and violation handling procedures, complete with the reporting scheme in accordance with the alleged reporting. Reporting violations can be done through the following channels:Telephone : (031) 3981732 ext 3132 and/or 3026PO Box : Kotak 5000Email : [email protected]: The Reporting Team of Violation Reporting (TP3) PT Semen Indonesia (Persero) Tbk. Jl. Veteran, Gresik 61122

WHISTLEBLOWER PROTECTION

The Company is committed to implementing whistleblower protection with good intentions and the company will comply with all prevailing laws and best practices in whistlebowing systems.

Any employee who is a whistlebower with good intention shall be protected from the act of termination, demotion or relegation, harassment or discrimination in all its form and disadvantage record in his personal data files.

The Company applied sanctioned on misuse of WBS and it is affirmed that the parties (both internal and external) who submit reports in the form of slander or false statements shall be subject to sanctions including legal proceedings and not obtaining either the confidentiality or protection of the Reporting Entity.

THE HANDLING OF COMPLAINTS

The procedure and settlement on suspected violation report is conducted in accordance with the mechanism as set forth in the guidelines of violation reporting system which is the mechanism process of violation report management, allegedly committed by:1. Company’s Employees. 2. Board of Directors, Members of the Board of

Commissioners (Individuals) and Supporting Organ of the Board of Commissioners.

3. Board of Commissioners of the Company (Board). 4. Board of Directors and Board of Commissioners

of Subsidiaries 5. Subsidiaries’ employees 6. Complaints related to the accounting and

financial reporting process of the issuer or Public Company.

The Company classifies the whistleblowing into three types, with varying methods in handling, which are.• Category I (Corruption and Economic Crime); • Category 2 (Crimes related to common crimes): • Category 3 (Company policy related violations).

The Company guarantees the confidentiality of whistleblower identity, unless such disclosure is necessary in relation to the report or investigation conducted by the authorities. The Company provides appropriate award for provable report and where the complainant was not involved.

COMPLAINT MANAGEMENT

The Board of Directors is responsible for the implementation of the reporting system of violations in the Company and the Board of Commissioners is responsible for supervising the implementation of such system. The Board of Directors and the Board of Commissioners jointly established an organization of violations reporting in the Company. This organization is centralistic covering the management of whistleblowing reporting in the Company and Subsidiaries.



The organization of violations reporting consists of four main elements, namely:• Whistleblowing Management Team (TP3), has the

duties to:- Accept, register and group the whistleblowing

by the suspect category.- Implement a whistleblower protection program

in accordance with the established policies, including to maintain the confidentiality of the whistleblower and suspect (the presumption of innocents).

- Maintain regular communication with the whistleblower.

- Submit an activity report every 6 months to the Board of Commissioners.

• Investigation Team, consists of Internal Investigation Team, External Investigation Team, and Subsidiary Investigation Team.

The overall task is to conduct further investigation of the substance of reported violation with a view to seek and gather the necessary evidence to ensure the indication of violation.

• Board of Commissioners, with the main task. Selection, confirmation (from the category aspect

of violation types, the party responsible and completeness of the document) and verify, as well as taking the decision on the reports for follow up or filing with regards to violations committed by members of the Board of Commissioners, Board of Directors and Supporting Organs of the Board of Commissioners.

In the event where such violation report is decided to be followed up, then the Board of Commissioners:- Assign the Investigation Team to investigate if

the violation is committed by a member of the Board of Commissioners (individuals), Board of Directors and Supporting Organs of the Board of Commissioners, or

- Provide recommendation to the Board of Directors (as Shareholders of Subsidiary) to follow-up through investigation process, in the event where such violation is conducted by the Board of Commissioners and Board of Directors of Subsidiary.

• Board of Directors, with main task:- Perform selection, confirmation (from the

category aspect of violation types, the party responsible and completeness of the document) and verify, and as well as taking the decision on the reports for follow up or filing with regards to violations committed by the Employee.

- The Board of Directors has the authority to assign investigation Team to investigate violations committed by the Board of Commissioners, Directors and Employees of Subsidiaries.

TOTAL REPORTS AND FOLLOW UP ACTIONTotal whistleblowing case and treatment during 2018, there were 1 case reported through the WBS mechanism. As of the end of 2018, the case in concern has been settled up.

Report Category and information:

Description Total Remarks

Total Reports 1 Accepted whistleblowing case

Meet the Requirement

1 To be followed up

0 Not to be followed up

Whistleblowing Category

1 Category 1 - Corruption & Economic Crime

Settlement Process 1 Completed



CORPORATE

SOCIAL RESPONSIBILITY



262 Summary and Achievements

277 Commitment

264 Foundation for Implementation

264 Company CSR Vision & Mission

264 Objectives

267 Environmental Responsibility

277 Corporate Social Responsibility on Labor, Health and Safety

279 Corporate Social Responsibility towards Communities

284 Corporate Social Responsibility towards Consumers

286 Partnership Success Stories

Further detail is presented in the 2018 Sustainability Report which complements to this Annual Report



CORPORATE SOCIAL RESPONSIBILITY REPORTIn its endeavour to undertake a comprehensive transformation program that is carried out in the fullest sincerity, the Company is determined to carry out social responsibility programs with all the competencies it has to create a healthy, safe and secure environment and be able to meet consumer expectations.

The company is also determined, hand-in-hand with every citizen of the world, to support the achievement of the formulation of development goals in the SDGs through optimizing the management of available resources in order to meet the expectations of all stakeholders.

“

“In the environmental sector, the Company managed to record a reduction in CO2 emissions of 43,000 tons equivalent CO2 annually from the operation of WHRPG installations in Padang. This reduction will increase significantly when the WHRPG installation in Rembang enters the operational phase in the coming year.

The company also succeeded in realizing around 1,000 tree planting as part of the greening program in the Green Belt area in all managed plants, Green Socorejo Mangrove Center and in other designated greening areas.

The Company received seven consecutive Level 5 Green Industry Awards for the Tuban Plant.

In the manpower sector, the Company succeeded in realizing various training and development programs, followed by participants with a duration of 218,313 hours or an average of 44.88 hours/participant.

The company allocated HR development funds worth Rp32.5 billion.

In the field of occupational safety and health, the Company recorded zero fatal OHS incidents in 2018.

The Company also realized various competency development exercises specifically in occupational safety followed by a lot of participants.

In the Socio-Community Sector, the Company channeled an investment in Social Development funds in total of Rp174.6 billion, consisting of Partnership Development (PK) funds of Rp74.3 billion, Rp3.3 billion in Partnership Development (PK) Grants, Rp23.7 billion in Community Development and Rp73.4 billion in CSR.

In 2018, the Company succeeded in fostering 1,963 new fostered partners, so that the total accumulation of the Company’s fostered partners was 39,575 units, absorbing a total of 77,739 direct workers, with a turnover of Rp2.4 trillion.

Through the Community Development program that focuses on providing assistance in the Education sector, in 2018 the Company channeled scholarship funds beginning from elementary education up to universities to 1,128 scholarship recipients.

The company also continues to participate fully in the implementation of the SOE Present for the Nation (BUMN Hadir untuk Negeri) Program.

The Company demonstrates its full commitment to all loyal customers, by successfully completing all complaints and complaints that are submitted well.

The Company monitors customer engagement through the implementation of the Customer Satisfaction Survey and obtains the CSI 90.6 Index (from a scale of 100)

SUMMARY AND ACHIEVEMENTS



COMMITMENTPT Semen Indonesia (Persero) Tbk is fully committed to making a positive contribution to all stakeholders. The stakeholders referred to here are not limited to shareholders. On the other hand, they include employees, the surrounding community, employees as well as the surrounding environment. Not only for the environment within the vicinity of the Company, but also in Indonesia in general. The Company is fully committed so that its presence can bring a sustainable positive impact to the Indonesian people in the long term, both directly and indirectly.

Furthermore, the Company is fully committed to jointly with citizens of the world, preserve and passing on a better environment for future generations. Or in other words, the Company is fully committed to

ensuring the sustainability of the earth and all its contents by carrying out operational activities in accordance with the principles and formulation of the Sustainable Development Goals (SDGs), which emphasizes the achievement of performance balance in three aspects, namely: Economic, Social and Environmental or popularly abbreviated P3 (Profit, People, Planet).

Therefore, being a good corporate, the Company always balances its business activities by contributing to social life and to the environment. This, among others, was carried out through various activities to demonstrate Corporate Social Responsibility (CSR) in a broad sense, as referred to in ISO 26000:2013. The aim is that the contribution of Semen Indonesia in supporting the achievement of various sustainable development goals is optimal.

Tree Planting Activities in the plant area




There are seven core subjects in carrying out CSR activities according to ISO 26000, namely: (1) Organizational Governance; (2) Human Rights; (3) Labor; (4) Environment; (5) Fair Operating Procedures; (6) Consumer Issues and (7) Community Involvement and Development.

However, in the following chapter on the description of Corporate Social Responsibility, the Company will only report four aspects, in accordance with the provisions of the Financial Services Authority (OJK) through OJK Circular Letter No.30/SEOJK.04/2016 concerning “Format and Content of Issuers’ or Public Companies Annual Reports”, in which the following aspects are reported: 1. Responsibilities to the Environment;2. Employment, Safety and Health Responsibility;3. Social and Community Responsibility, and4. Responsibilities to Consumers

LEGAL BASIS• Law No. 8 of 1999 concerning Customer Protection• Law No. 13 of 2003 concerning Manpower• Law No. 40 of 2007 on Limited Liability

Company and Government Regulation No. 47 of 2012 concerning Social and Environmental Responsibility

• Ministerial Regulation No. Per-09/MBU/07/2015 jo. PER-03/MBU/12/2016 jo. PER-02/MBU/07/2017concerning State-Owned Enterprise Partnership and Community Development Program

• Law No. 25 of 2007 concerning Investment• Law No. 13 of 2011 on Handling of the Poor and

Needy • Social Minister Regulation No. 13 of 2012 on the

Provincial Private Sector Accountability Forum in Administering Social Welfare.

CORPORATE SOCIAL RESPONSIBILITY VISION AND MISSION

VISIONTo be a leading international Cement company in Southeast Asia with outstanding performance that contribute a sustainable development in concert with all stakeholders.

MISSION• To implement good governance-based operating

performance, friendly to the environment, increase the quality of life of employees & local community

• To act ethically in the spirit of social responsibility towards all personnel of the Company and its stakeholders

• To realize fair, human right conscious operating practices and maintain local wisdom for the advancement of stakeholders and sustainable business growth

• To develop and form creating shared value in order to achieve high efficiency in the Company operations and culture synergized harmoniously for the betterment of sustainable development for all stakeholders.

OBJECTIVESThe objective of the program and the Corporate Social Responsibility activities is to obtain optimal economic benefits that are in line with the increasing welfare and life of the community and the maintenance of the environment. Achieving these objectives is in line with the vision of becoming the leading provider of building material solutions in Southeast Asia. The Company is fully committed to striving for harmony between operational performance and profit growth with social responsibility, the development of a clean and healthy environment, and community welfare.



THE 5 P OF HARMONIZATION As a good corporate citizen, the Company sustainable initiatives are stressed on five interconnected and integrated aspects, such as People, Planet, Prosperity, Peace and Partnership. These initiatives are performed in accordance with Good Corporate Governance (GCG) practices and oriented towards Nawacita and Sustainable Development Goals (SDGs).

Sustainable Development

PeopleEndpovertyandhungerinallforms

and ensure dignity and equality

ProsperityEnsure prosperous andfulfillinglivesin

harmonywith

nature

PeaceFosterpeaceful,justandinclusive

societies

PartnershipImplementtheagendathrough a solid global

partnership

PlanetProtectour

planet’s natural resourcesandclimateforfuture

generations

Sustainable Development

Five Core Pillars

Good Corporate Governance (GCG)

Resources, Values, Culture and Code of Ethics

Planet

Protect our planet’s natural

resources and climate for future

generations

Partnership

Implement the agenda through a

solid global partnership

Prosperity

Ensure prosperous and fulfilling

lives in harmony

with nature

People

End poverty and hunger in all forms and ensure dignity and

equality

Peace

Foster peaceful, just and inclusive societies

Transparency Accountability Responsibility Independency Fairness

Indicators used as an overview of sustainability and contribution to Nawacita (nine goals) and SDGs are as follows:

Description 2018 2017 2016 2015

Prosperity

Product Quantity Sold (Million Tons) 30,58 26,60 27,59 28,61

Revenue (Rp Million) 30,687,626 27,813,664 26,134,306 26,948,004

Profit (Rp Million) 3,079,866 2,043,026 4,535,036 4,525,441

Partnership Program (Rp Million) 74,300 76,705 78,859 69,588

Planet

Energy Use (GJ) 109,921,492 53,559,270 86,702,665 30,888,075

Emissions Reduction (Tons CO2 eq) 271,934 283,527 127,385 151,516

Water Usage (m3) 6,094,185 7,233,556 6,486,751 3,246,579

B3 Waste Volume Utilized (Tons) 25,779,65 2,068 64,049 244,608

Biodiversity Preservation (Ha) 1,980 488 432,75 6

People

Investments in Community Development 116,861 77,625 78,868 69,844

Total manpower (Person) 4,976 5,356 5,902 6,196

Fatal Accident Rate (people) 0 1 0 1



Description 2018 2017 2016 2015

Peace and Partnership

Customer Satisfaction Survey Index (0-100 scale)

ICS value data estimated at the end of April 2019

90,6 89 89

Complaint Resolved (%) 25 2 (on process) 3 4

Number of Partnerships (partner) 39,575 37,596 35,321 33,804

Number of Penalties or Sanctions for Regulation Violation (Compliance to Regulation)

0 0 0 0

Semen Indonesia Group Complaints Received Description

Tuban Business Unit 3 Done

PT Semen Padang 3 Done

PT Semen Tonasa 1 Done

PT Semen Gresik 21 5 complaints are still in process & 16 complaints with recurring status

Total 28

CSR BLUE PRINT Showing its strong commitment to corporate social responsibility (CSR) programs, a CSR blue print was concluded in 2013. Semen Indonesia CSR Blue Print reflects a CSR concept that define CSR not only as part of the Company’s obligation with respect to its activities that exploit natural resources, but more than that CSR is a medium to enhance the Company’s reputation and to realize business sustainability.

CSR THEME, PILLARS, AND PROGRAM

THEMEThe Company’s CSR theme is SYNERGIZED. An acronym, Synergized embodies the spirit of Educating the Nation with Semen Indonesia. This is also the theme for the Company’s endeavors towards Sustainable Development

SUB-THEME Strengthening the main theme, our sub-theme is “To Sustainably Enhancing the People and Safeguarding Natural Resources”

PILLARSThe Company has four key pillars to implement the SYNERGIZED theme and to solidify community empowerment efforts:

• SI CERDAS-Education Pillar• SI PRIMA-Service Excellence Pillar• SI LESTARI-Environmental Pillar• SI PEDULI-Socio-Economic Pillar

EDUCATIONAL PROGRAM

Education is an important priority of Semen Indonesia, a part of enhancing people quality both within and outside the Company to support business process. • The flagship program for education is the SI

Cerdas pillar, focusing on educating and providing training and assistance to:o Construction workerso Local business partnerso Potential local workers through vocational

and skill building programs.• Employee involvement as volunteers in employee

volunteering/social hour program



PRODUCTS AND CUSTOMER SERVICE PROGRAM

Under SI Prima pillar, Semen Indonesia will continue to deliver service excellence and maintain mutually beneficial relationship with customers, construction workers, distributors, agents, contractors, suppliers, and developers. These are part of our efforts to attain a reputation as a green cement company.

ENVIRONMENT PROGRAM

Operational activities of Semen Indonesia rely on sustainable use and preservation of natural resources. Through SI Lestari program, Semen Indonesia continuously introduces innovations, uses the latest green technology, and contributes to promoting the utilization of renewable energy.

SOCIAL-ECONOMY PROGRAM

Semen Indonesia endeavors to improve the quality of human resources fairly and equitably. The goal of the Company is to contribute to the enhancement of social and economic conditions through SI Peduli program and to maximize the management of operational impacts.

RESPONSIBILITY FOR THE ENVIRONMENTThe Company believes that managing and improving environmental quality are an integral part of business development programs carried out by prioritizing the balance between economic, social and environmental performance.

For the Company, the success of environmental management, which is demonstrated among others through the maintenance of environmental quality, is one of the pillars to ensure sustainable growth, prosperity, and quality of life for present and future generations.

As a manifestation and commitment of the Company in realizing sustainable environmental management, the Company carries out various efforts ranging from setting policies and regulations to monitoring and managing plant operations that impose an impact on the environment both within the factory and in the area around the plant.

PUBLIC POLICY The Company’s general policy in the environmental field is to produce finished goods by minimizing the impact on the environment, using materials efficiently and maintaining and preserving environmental quality in the best possible way.

The Company’s commitment to environmental preservation is outlined in the Environmental Policy, which confirms that: “In carrying out its business activities, the Company manages the environment to anticipate the effects of global warming, including efforts to reduce air pollution; reduction and utilization of hazardous and toxic material (HTM) and/or non-HTM waste; water conservation; biodiversity protection; and energy efficiency.”

COMPLIANCE WITH ENVIRONMENTAL REGULATIONS The Company carries out the mandate of the regulations as stated in Law No. 32 of 2009 concerning Environmental Protection and Management as well as related laws and environmental obligations. Therefore, every operational step in the field is always carried out by adhering to the items as stated in the EIA, UKL and UPL document which are both prerequisites and parameters agreed upon by all stakeholders prior to operational activities.



ENVIRONMENTAL MANAGEMENT CERTIFICATIONThe Company ensures operational activities in accordance with international standards with the Implementation of Environmental Management Systems based on ISO 14001:2015 - Environmental Management Systems, ISO/IEC 17025:2008 - Laboratory Management Systems and SNI 19-14001:2005, to improve the effectiveness of environmental management activities that include environmental management system, environmental audit and environmental performance evaluation. In addition, the company also implements continual improvement system, 5R and Suggestion System which are fully integrated in Semen Indonesia Management System.

TARGET The targets and objectives of implementing environmental management policies include several things, namely:• The Company’s activities will not cause negative

impacts on the location around mining activities and production activities

• Minimizing the decline in environmental quality in the long run

• Minimizing negative impacts and increasing positive impacts on residents around the location of operational and mining activities during and after mining

• Restore environmental quality to the condition prior to the activity.

• Making post-mining area an advantageous and economically valuable area

• Does not leave the burden of the environment for future generations

ENVIRONMENTAL MONITORING AND MANAGEMENTIn environmental monitoring and management, the Company has established routine environmental monitoring activities, combined with monitoring production aspects as outlined in SI Ramah (SI Friendly). This routine monitoring includes monitoring environmental aspects such as monitoring of chimney emissions, monitoring ambient air quality, monitoring the quality of domestic wastewater and noise.

During 2018, the Company succeeded in ensuring that the current positive environmental monitoring activities were indicated by the achievement of environmental parameters that were consistently below the Environmental Quality Standard values set by the Government.

Quality Standard and Stack Emission Monitoring

Equipment ParameterQuality

Standardmg/m3

Semen Indonesia(Tuban Plant)

mg/m3

Semen Padangmg/m3

Semen Tonasamg/m3

Raw Mil

NO2 800 311.13 388 222.25

SO2 650 49.06 66 26.00

Particulate Matter/Dust 70 36.51 42 67.58

Particulate (CEMs) 70 40.12 51.8 39.77

Clinker cooler Particulate Matter/Dust 70 42.09 63.90 66.73

Coal Mill Particulate Matter/Dust 70 44.41 67.60 67.28

Cement Mill Particulate Matter/Dust 70 6.83 67.30 54.69

Packer Particulate Matter/Dust 70 3.48 65.0 40.07

*Note: based on Regulation of the Minister of Environment No. 19 of 2017



Quality Standard and Stack Emission Monitoring of TLCC

Equipment Parameter Quality Standardmg/m3

Valuemg/m3

Raw Mill

NO2 640 85.00

SO2 320 68.10

Particulate Matter/Dust 64 35.10

Clinker cooler Particulate Matter/Dust 64 14.00

Coal Mill Particulate Matter/Dust 64 21.10

Cement Mill Particulate Matter/Dust 64 24.57

Packer Particulate Matter/Dust 64 27.34

*Note: based on QCVN 23:2009 BTNMT

Quality Standard and Ambient Air Emission Monitoring

Parameter Quality Standardµg/Nm3

Semen Indonesia (Tuban Plant)

µg/Nm3

Semen Padangµg/Nm3

Semen Tonasaµg/Nm3

CO 30,000 3,869 3,204 1,820

NOx 400 43.8 21 6.47

SO2 900 30.37 29 44.62

Oxidant, O3 235 34.25 107 -

Particulate Matter/Dust 230 0.11 80 124.96

Lead, Pb 2 0.0001 0.1 1.16

Hydrocarbon, HC 160 65.91 98 -

*Note: based on PP No. 41 th. 1999

Quality Standard and Ambient Air Emission Monitoring of TLCC

Parameter Quality Standardmg/Nm3

Valuemg/Nm3

CO 30,000 3,148

NOx 200 35.00

SO2 350 43.00

*Note: based on QCVN 05:2013 BTNMT and QCVN 06:2009

Quality Standard and Domestic Wastewater Quality Monitoring

Parameter Quality Standard Unit Semen Indonesia

(Tuban Plant) Semen Padang Semen Tonasa

pH 6.0-9.0 - 8.22 8.8 7.29

BOD 100 mg/l 8.25 1.0 19.24

TSS 100 mg/l 12.75 2.0 16.5

Oil/grease 10 mg/l 1.8 1.8 6.4

*Note: based on Regulation of the Minister of Environment No. 68 of 2016

Quality Standard and Domestic Wastewater Quality Monitoring TLCC

Parameter Quality Standard Unit Value

pH 5.5-9.0 - 7.1

BOD 78 mg/l 43

TSS 156 mg/l 43

Oil/grease 15.6 mg/l 1.6

*Note: based on QCVN 40:2011/BTNMT



ENVIRONMENTAL PROGRAMThe operational activities of Semen Indonesia’s business rely on efforts to preserve sustainable natural resources. The Semen Indonesia environmental program is run through the implementation of the SI Lestari Pillar Program. In the program, the Company is fully committed to always innovating, using the latest technology that is environmentally friendly and contributes to the use of alternative renewable energy.

The environmental programs implemented are part of efforts to increase production efficiency as well as environmental conservation, and consist of aspects: Conservation of Raw Materials, Energy Conservation, Emission Reduction, Water Conservation, HTM & Non-HTM Waste Management and Biodiversity Conservation.

CONSERVATION OF RAW MATERIALSThe main raw materials for making cement are limestone and clay, which are then burned together with several supporting materials at high temperatures. Limestone and clay are non-renewable mining materials.

The production process through combustion at high temperatures where the oxidation process occurs to produce slag, opens the opportunity for the use of various other unused materials, especially materials that require high-temperature oxidation processes as one of the ways to remove them. This alternative raw material is generally another industrial waste which in the oxidation process will form a better slag, when it is later converted into cement.

To overcome the scarcity of raw materials for both raw materials for the process of making cement and supporting raw materials such as kraft paper for the manufacture of cement bags, the Company has made several efforts such as:

Use of alternative raw materials The Company has utilized industrial waste as an alternative raw material. The benefits obtained from the use of alternative raw materials are saving key raw materials and helping prevent further pollution of HTM waste produced by other industries. The use of alternative materials in the form of other industrial wastes also generates other income for the company.

The various alternative raw materials routinely used by the Company are: bottom ash, fly ash, dust EAF, steel slag, COCS, spent bleaching earth, drilling cutting and paper sludge. The total volume of alternative raw material used tends to increase, with the volume in 2018 amounting to 369,135.96 tons, while in the previous year it was 236,784 tons.

No Type of Waste Total (Ton)

1 Bottom Ash 201,288.41

2 Fly Ash 125,958.74

3 Dust EAF 562.68

4 Steel Slag 31.92

5 COCS 19,393.84

6 Spent Bleaching Earth 15,508.00

7 Drilling Cutting 6,392.37

Total Realization 369,135.96

The Company targets to increase the utilization of other industrial waste materials in the production process, as part of the Company’s efforts to contribute to reducing the amount of similar waste pollution in the open.

Kraft paper grammage reduction program (eco friendly sack)To minimize the use of kraft paper as material for making cement bags. Starting from the use of bags with a size of 90 gsm, in 2017 kraft paper with grammage 80 and 75 gsm was used as raw material for cement bags. The paper grammage reduction program is in addition to being able to increase the efficiency of packaging costs and has also succeeded in increasing the Company’s image in terms of indirect CO2 emissions reduction, as the decrease in kraft paper grammage also reduces paper use which means reducing the use of trees as paper raw material.

ENERGY CONSERVATIONThe cement production process utilizes two types of energy, namely heat energy and electricity. Heat energy comes from the use of coal as the primary fuel, while electricity comes from internal power plants as well as PLN. Energy consumption is calculated annually by calculating the consumption of heat energy used in slag production and the consumption of electricity used in cement production. Calculations for energy utilization at PT Semen Tonasa plants are done by adding the total kWh of electricity used by all operational units including packers in the plants..



In 2018, the Company’s total internal energy consumption amounted to 104,949,443 GJ, an increase of 2.76% over the previous year. This include internally-generated energy as well as externally-purchased energy used in the production process. The increase in energy consumption was due to a decline in production, mostly from the Tuban Business Unit, compared to 2017.

Internal Energy Consumption

Semen Indonesia GroupEnergy (GJ)

2018 2017 2016

Business Unit Tuban 47,465,089 47,350,297** 44,944,046**

PT Semen Padang 26,367,971 25,461,256 21,632,917

PT Semen Tonasa 21,781,468 23,211,556** 22,679,325**

Thang Long Cement 8,065,502 7,745,362 7,617,158

PT Semen Gresik 6,154,405 3,157,381 N/A

Total 109,834,435 106,880,852 96,873,446

N/A: Not Available, because PT Semen Gresik only began operating in mid-2017** Restated for Tuban Business Unit in 2017 & 2016 because of differences in calculation methodology** Restated for Semen Tonasa in 2017 & 2016 because of differences in calculation methodology

Total external energy consumption by the Company amounted to 87.057 GJ, down 57.5% from the previous year. The calculation includes energy purchased (PLN, diesel fuel, coal) used for activities other than the main production process, such as raw material transportation/purchase, product distribution, and business trips. The decline in external energy consumption was the result of successful energy efficiency programs undertaken by the Subsidiaries and Business Units.

Energy Consumption Outside the Company

Semen Indonesia GroupEnergy (GJ)

2018 2017 2016

Business Unit Tuban N/A N/A 123,782

PT Semen Padang N/A N/A N/A

PT Semen Tonasa 34,392 26,126** 29,382**

Thang Long Cement 52,665 50,475 49,125

PT Semen Gresik 0 0 N/A

Total 87,057 204,843 1,352,742

N/A: Not Available, because PT Semen Gresik only began operating in mid-2017** Restated for Tuban Business Unit in 2017 & 2016 because of differences in calculation methodology** Restated for Semen Tonasa in 2017 & 2016 because of differences in calculation methodology

Energy Intensity per Cement Product

Semen Indonesia GroupEnergy Intensity (GJ/Ton Semen)

2018 2017 2016

Business Unit Tuban 3.66 3.59** 3.59**

PT Semen Padang 3.65 3.58 3.35

PT Semen Tonasa 3.86 3.89** 3.80**

Thang Long Cement 4.04 3.14 3.24

PT Semen Gresik 4.53 4.03 N/A

N/A: Not Available, because PT Semen Gresik only began operating in mid-2017* Restated for Tuban Business Unit in 2017 & 2016 because of differences in calculation methodology* Restated for Semen Tonasa in 2017 & 2016 because of differences in calculation methodology

The Company implements several programs related to energy conservation efforts to improve operational efficiency, while increasing the competitiveness of end products. Various energy conservation efforts carried out by the Company are explained in the following paragraphs:



Implementation of the Energy Management System The Company plans to immediately implement an ISO 50001 Energy Management System as a tool to improve energy management efforts that are internationally recognized. Introduction to the ISO 50001 Energy Management System is initiated by conducting an introductory workshop ISO 50001 in groups so that it can be fully implemented.

Increased alternative fuel usageTo increase substitution of coal use, the Company has used biomass and B3 waste as alternative fuels. Biomass used includes rice husk, cocopeat, waste tobacco plantation and cigarette waste. Whereas HTM (Hazardous and Toxic Material) waste used is Oil sludge, used oil, resin, used filter bags, used dust cloth, and Impregnated Biomass.

The Company utilizes agricultural production waste (biomass) in the form of rice husk, sawdust, coconut fiber (cocopeat) and tobacco waste as alternative fuels in the process of burning cement slag. This effort aims to manage energy, reduce CO2 emissions, obtain a CER - CDM Project, as a solution to handling agricultural waste in the environment around the plant, creating environmentally friendly factories, and supporting government programs related to global warming.

The total volume of all AFR used during 2018 is 62,260 tons The Company is determined to increase the volume of AFR use in the future, as part of the integration of production line with PT Semen Holcim Indonesia Tbk which was officially acquired in early 2019. Increased volume of AFR is carried out through expansion of waste types, increased intensity of existing waste utilization and construction of feeding point facilities.

Maximizing the operations of the WHRPG Padang Plant and Tuban PlantAt the Padang Plant, WHRPG has been operating since 2011 contributing to 8.5 MW of additional electricity. Whereas in the Tuban plant, the WHRPG development project that was started in 2014 will provide an additional power of 30.6 MW. In 2018, the WHRPG facility in Tuban has entered the licensing and commissioning phase, so that optimal operations are expected to be in mid-2019.

REDUCTION OF CO2 GAS EMISSIONS AND OTHER EXHAUST EMISSIONSThe source of direct CO2 gas emissions from cement manufacturing activities comes from three main sources, namely coal slag burning process, coal-fired independent power generation, and product transportation activities.

In carrying out its business, as a global corporate citizen, Semen Indonesia is fully committed to supporting the achievement of sustainable development goals through a commitment to reduce carbon dioxide (CO2) emissions from the cement manufacturing process.

Efforts to reduce CO2 emissions are thus directly correlated with the use of energy sources, both directly and indirectly. Therefore, the Company implements the following programs to reduce CO2 emissions. • Utilization of biomass as an alternative fuel for

coal use substitution. Biomass used includes rice husk, waste tobacco plantation and cigarette waste.

• Diversification of Maxstrength Cement products to reduce clinker use. The Company also continues to strive to produce cement with a low clinker factor.

• Construction of conveyor belts to transport coal from the port to the factory, aimed at reducing the use of land transportation.

• Construction and operation of WHRPG (Waste Heat Recovery Power Generation) to convert heat energy from kiln discharge gas into electrical energy for operational use. This initiative will reduce the electricity needs from PLN or from independent generators, so that it will eventually reduce CO2 emissions.

The implementation of WHRPG at the Indarung V Padang Plant can save PLN electricity usage by 10%. The WHPRG installation in Padang is able to reduce carbon emissions to 43,000 tons of CO2 every year. The ability to reduce CO2 emissions has been presented before the UNFCCC team and the next stage is the verification by an independent team to obtain a Certified Emission Reduction (CER).

The WHRPG project at the Tuban plant will be

able to reduce the use of PLN electricity by 152 million KWh per year, save electricity costs up to Rp120 billion per year and reduce CO2 emissions by 122 thousand tons per year.



• Participation in Reducing Global Warming Rates Since 2009, the Company has developed the

CDM Project as a form of participation in joint efforts to overcome the effects of global warming, which began with the creation of a project design document (PDD). The PDD works together with the construction of the Tuban 3 biomass transport facility with a capacity of 20 tons/hour. The company cooperates with Sindicatum Carbon Capital (SCC) to create a PDD with the name of the project “Partial substitution of fossil fuels with biomass at Semen Gresik cement plant in Tuban”.

In 2010, the CDM project was registered with the National Climate Change Council, Republic of Indonesia, then registered with the UNFCCC. On February 25, 2011, the CDM project was approved by the UNFCCC with a registration number 3726. From the CDM project, on May 6, 2015, the Company successfully entered into an emissions sale agreement or called ERPA (Emission Reduction Purchase Agreement). On 30 - 31 May 2016 verification of the CER issuance was carried out by EPIC Sustainability, Bangalore, as an external party designated as Designated of Entity (DOE) by the UNFCCC, until September 2016 the DOE reported the results of verification to the UNFCCC.

After a long and quite tiring journey, finally the CDM (Clean Development Mechanism) project of Semen Indonesia through partial substitution of

fossil fuels with biomass at Semen Gresik cement plant in Tuban has produced very satisfying results.

This is indicated by the issuance of CER certificates (Certified Emission Reduction) by the UNFCCC (United Nation Framework Convention on Climate Change) on December 12, 2016 amounting to 213,717 tonCO2eq for the monitoring period February 25, 2012 - February 29, 2016 (https://cdm.unfccc.int/Issuance/cers_iss.html). This CER Issuance by the UNFCCC has been sent to Semen Indonesia as a seller and Sweden (Swedish Energy Agency) as a buyer.

Based on ERPA (Emission Reduction Purchase Agreement) which was signed by SMI and Sweden on May 6, 2015, the Amount of CER traded for the first phase of Issuance CER was 193,536 tonCO2eq with the monitoring period January 2013 - February 2016. The sale and purchase contract is carried out for 6 years, from 2013 to 2018. The agreed price of CER is 3.75 EURO per CER.

Revenues earned from Sweden for the sale of the CER amounted to 725,760 EURO or Rp10.2 billion.

Results of CO2 emission monitoring in each OpCo are presented in the following table:

Operating CompanyEmission of CO2, kg/ton

semen Change %

2018 2017

PT Semen Indonesia (Tuban Plant) 690 698 98.8%

PT Semen Padang 684 687 99.6%

PT Semen Tonasa 697 706 98.7%

TLCC 660 662 99.7%

The Company is gradually replacing freon (chlorofluorocarbon/CFC) as an ozone-depleting gas with environmentally friendly air conditioning in all offices. In addition, the Company replaces the contents of light fire extinguishers (APAR) with AF11, AF11 and dry powder materials that are more environmentally friendly.

Measurement of air pollutant emissions, SOx, NOx and particulates originating from the kiln chimney, is undertaken regularly every quarter. The Tuban Business Unit measures SO2 and Nox using the El 36.015 (gas analyzer) and El 36.015 (isokinetics) methods. PT Semen Padang carried out SOx measurements using 22-9/IK/UETB-O method (combustion gas analyzer), NOx measurements using 22-9/IK/UETB-O method (combustion gas analyzer), and total particle measurements using the SNI 7117.17-2009 method. PT Semen Tonasa uses the CEMS (Continuous Emission Monitoring System) as well as the isokinetic method (manual measurement) provided by an external party (Balai Besar Industri Hasil Perkebunan).



Measurement Results of the Highest Average Quality of Emissions

Semen Indonesia Group

NOx SOx Particulate

2018 2017 2016 2018 2017 2016 2018 2017 2016

Business Unit Tuban 311.12 184 306.29 49.06 13.9 10.83 19.67 25.6 11.69

PT Semen Padang 292.90 432.5 347 38.78 54 29 30.93 37.5 38

PT Semen Tonasa 161.88 57.13 4.38 20.00 22 5.88 70.72 57.63 60.88

PT Semen Gresik 162.5 16 N/A 14.5 7.3 N/A 27.2 26.5 N/A

Thang Long Cement 1,024 754.83 608 N/A 20.96 11 86 39 34.36

Notes:• Unit in mg/Nm3• Quality Standard according to Per.Men LHK No. 19 of 2017 on emission quality standards for cement industry businesses and / or

activities• Measurement points at chimney, clinker cooler, coal processing, cement processing

WATER CONSERVATIONThe Company is committed to maintaining the availability and quality of water resources in the factory area. The target of the Company is to limit total plant water consumption to below 0.25 m3/ton of cement by optimizing the use of surface water of at least 70% of total water consumption. Every month, routine group monitoring is carried out through the SI Ramah mechanism.

The program that has been implemented by the Company in the efficiency of water use is as follows:• Utilization of rainwater collected in reservoirs as

process water & sanitation water.• Recycle process water, domestic wastewater

& blowdown clarifier water into ready-to-use process water.

• Increased surface water reserves through Interconnection of Temandang Reservoir and Tlogowaru Reservoir as rainwater reservoirs.

CONTROL OF PARTICULATE AND NOISE EMISSIONSThe Company complements all production facilities with dust capture equipment such as electrostatic precipitators, cyclones, conditioning towers, and bag house filters. Dust emission control is also carried out by providing a buffer zone, planting trees in the green belt area around the raw material fields and green barriers in and around the factory. The Company also seeks to minimize the impact of noise during mining activities using surface miners.

WASTE MANAGEMENTThe Company has a HTM waste management permit for B3 waste utilization activities No. 281 of 2016 from Ministry of Environment and Forestry, namely used oil, used dust and used filter bags are used for alternative fuels and ‘used refractories’ as alternative raw materials using co-processing methods.

Solid HTM wastes that cannot be reused such as used batteries, used TL lamps, toner/cartridges, and chemical bottles are handed over to third parties who have permits from the Ministry of Environment and Forestry. Non-HTM category waste consists of domestic waste, damaged material, and used goods (avfal). The company reuses domestic waste into an alternative fuel in the kiln. Non-HTM metal solid waste is generally reprocessed by third parties for the manufacture of other metal goods.

BIODIVERSITY PROTECTIONThe Company’s policy regulates biodiversity protection in an effort to control the negative impacts of the Company’s operations. A number of conservation initiatives are carried out in land and coastal ecosystems around the operational area, such as carrying out post-mining reclamation through replanting, establishing and developing biodiversity conservation areas.

Green Belt Area Expansion Program with Addition of Productive Plant Varieties is a green open space conservation program in limestone and clay mining areas. PT Semen Indonesia (Persero) Tbk. - The Tuban plant not only carries out environmental conservation efforts but also adds diversity to additional plants, namely intercropping. The company has obtained a Copyright with the number 000111875 from the Ministry of Law and Human Rights in the form of the Reclamation and Revegetation Map of the Temandang Limestone Mine Area.



PT Semen Indonesia (Persero) Tbk. - The Tuban Plant always carries out biodiversity protection programs, both in the area of factories, ex-mines, and in other areas outside the obligations stipulated in the regulations. In implementing the Kehati program, the company involved the participation of the community as well as in the context of community empowerment.

Biodiversity index (Shannon-Wiener Diversity Value (H’)) as a result of the implementation of the biodiversity program of PT Semen Indonesia (Persero) Tbk. - The Tuban plant is well monitored.

Monitoring of Potential Biological Resources

1 Kehati Index at Socorejo Coastal Area(Shannon-Wiener Diversity Index (H) for Birds)

1,991 2,034 2,071 2,959 2,959 3,384 H

2 Kehati Index at Socorejo Coastal Area(Shannon-Wiener Diversity Index (H) for non-Avifauna)

2,008 2,114 2,146 2,982 2,959 3,185 H

3 Kehati Index of Tlogowaru Fauna(Shannon-Wiener (H) Diversity Index)

a) Birds 2,428 2,763 H

b) Macrozobentos 1,249 1,477 H

c) Non-Avifauna 3,643 3,315 H

Meanwhile, for the Padang Factory area, in 2018, as many as a thousand trees were planted, including the addition of planting rare plant species and endemic plants in West Sumatra. Biodiversity protection especially at PT Semen Padang is the responsibility of the Department of Planning and Production Control under the Director of Operations.

Evaluation of biodiversity protection activities in Semen Padang was carried out through monitoring and evaluation in collaboration with the Nature Center Sumatera, Andalas University, Padang.

RECOVERY OF OPERATING IMPACTIn an effort to mitigate environmental impacts, the Company began implementing the latest mining concept with the Block Mining System at the Rembang Plant. This concept is an improvement of the tiered mining system that has been implemented at the Tuban Plant. Mining in the Block Mining System is carried out per block, after which it is rehabilitated by planting trees and turning into retention basin.

Land that has not yet been mined will be utilized by surrounding farmers to grow crops as is done at the Tuban Plant. This sustainability initiative will have a positive impact on biodiversity, which is characterized by increasingly diverse flora and fauna species around the operating area.

Latest data from Tuban Plant:• Development of a nursery facility to produce superior quality seeds in larger quantities• Planting tangerines on the Greenbelt in limestone quarries and (specifically) in the greenbelt area of clay

mines using the alternating bed system



• Making a Herbal Arboretum facility in the limestone quarry area to produce medicinal herbs for family use.

• Utilization of post-clay mining lands at Temandang and Tlogowaru, Tuban, as reservoirs that function as a place for freshwater fish cultivation as well as sources of water for farmers in the Green Belt.

The floating fish cage program has been developed in Tuban to preserve biodiversity as well as to empower the local communities.• The establishment of Green Socorejo Mangrove

Center in the area surrounding the Company’s Tuban plant has supported biodiversity preservation on the beaches of Tuban. The program will proceed with the development of Green Socorejo Mangrove Center phase II program with 60,000 trees, comprising of mangrove and beach pine trees.

The program is a synergy between the Company and the Tuban Mangrove Center to preserve the beach ecosystems in Tuban. • Conservation of rare flora and fauna The breeding of the Timor Deer in areas around

the Company’s Tuban plant in cooperation with BKSDA Bojonegoro as the Company’s support for the preservation of rare animal species.

• Reforestation of the watershed area in the protected forests at Indarung, Limau Manis Selatan and Lumbung Bukit districts covering 275 hectares of land.

• Establishment of an arboretum facility at the post-limestone mining lands of the Tuban plant. The area would be planted with 10 rare flora species and the garden is expected to become an educational facility for the surrounding communities.

• The Company’s Tuban business unit is also planning to establish a nursery facility at Tlogowaru and a fruit garden at Temandang. At present, this plan is still in the initial stage, requiring further studies along with related stakeholders.

• Development of a nursery facility to produce superior quality seeds in larger quantities.

• PT Semen Padang acts as a Supporter in the Adiwiyata Program through the provision of productive plant seedlings to schools in the city of Padang.

• PT Semen Padang initiated the breeding of spotted deer that come originally from the Bogor Presidential Palace. This program has resulted in the birth of a baby spotted deer, making for a total of six spotted deers at the facility. This program is expected to add to the number of spotted deer in Indonesia.

MECHANISM OF ENVIRONMENTAL COMPLAINTSThe company has a complaints mechanism related to environmental issues and conflict resolution. Every complaint submitted by the community regarding social and environmental issues is followed up directly by the Environmental Monitoring Bureau in charge of three sections (Work Units). PT Semen Gresik and PT Semen Tonasa have a Factory Pollution Handling Unit that also functions specifically to serve community complaints.

In 2018, PT Semen Padang received 3 (three) complaints from the public, and by the end of the year the status was still in the process of being resolved.

AWARDSVarious efforts to improve environmental performance are continuously carried out in an effort to build a corporate environment that is green in perspective and as a form of concern for the Company towards environmental quality, making the Company in 2018 obtain:

Update on awards for Tuban Plant in 20181. Green Proper Award for PT Semen Indonesia

(Persero) Tbk. Tuban Plant from the Ministry of Environment & Forestry in 2018

2. Green Industry Award, Level 5 (seven times in a row) from the Ministry of Industry in 2018 for PT Semen Indonesia (Persero) Tbk. (Tuban Plant).

3. Indonesia Green Company Achievement (IGCA) Award from SWA Magazine and SRI KEHATI Foundation for PT Semen Indonesia (Persero) Tbk. Tuban Plant, Commitment to preserve the environment in every operational activity & the 25 highest SRI KEHATI index public companies in 2018.

4. Subroto Award in Energy Efficiency Field, Energy Management in Industry and Building Category, Special Innovation Sub Category (special submission) for PT Semen Indonesia (Persero) Tbk. Tuban Plant from the Ministry of Energy and Mineral Resources

5. Gold Award (Aditama) to PT Semen Indonesia (Persero) Tbk. Tuban Plant Category for Environmental Protection from the Ministry of Energy and Mineral Resources.



EMPLOYMENT, SAFETY AND HEALTH RESPONSIBILITY

GENERAL POLICY FOR MANAGING HUMAN RESOURCES

In 2018, the composition of the Company’s employees consisted of 5,403 permanent employees, 45 non-permanent employees, and no seasonal or part-time employees. The number of employees who end their employment period is 205 people. The turn over rate in 2018 is 9.27% compared to 2017 which reached 4.98%.

Of the total 5,403 employees, 100% of employees are bound under a Collective Labor Agreement (PKB), a reference in carrying out industrial relations. The PKB regulates work relations, work time and leave, dispensation, remuneration, facilities and welfare, including the prohibition of child labor (under 18 years), and forced labor.

All employees are given the same opportunity to improve their competencies according to the needs of the Company through various training and development activities. Every year, these activities are adjusted to the level of position and function, through training, workshops and seminars. Details of the training held by the Company throughout 2018 can be read in appendix 3 of this report. Improvement of employee competency is also done through electronic learning (E-learning). In 2018, the presentation of study hours on average per worker reached 44.88 hours/person/year from the target of 40 hours/person/year.

EQUALITY OF EMPLOYEES AND REMUNERATION

The principle of equality and fairness is the basis for the Company in managing human resources. The remuneration and benefits for employees are determined by applicable legislation, including the Provincial Minimum Wage (UMP).

Comparison of Wages and UMP

No SemenIndonesia Group Province

Province Minimum

Wage*

Wage of the Lowest Level Employees

Percentage

1 PT Semen Indonesia (Persero) DKI Jakarta Rp3,355,750 *) Rp4,294,351 127%

2 Business Unit Tuban East Java Rp1,388,000 *) Rp4,234,774 305%

3 PT Semen Padang West Sumatera Rp2,100,000 *) Rp5,413,437 257%

4 PT Semen Tonasa South Sulawesi Rp2,435,625 *) Rp5,500,000 225%

5 Thang Long Cement Vietnam, Quang Ninh 900,000 VNDestimated

equivalent toRp1,745,081

3,540,000 VNDestimated

equivalent toRp2,130,092

122%

6 PT Semen Gresik Rembang Rp1,605,396 Rp4,504,041 281%

Note: *) Province minimum wage is based on Stipulation on UMP of 2018

OCCUPATIONAL SAFETY AND HEALTHGENERAL POLICY ON OCCUPATIONAL SAFETY AND HEALTH

The Company has established a fundamental policy on Occupational Safety and Health, which reads “Occupational Safety and Health is the responsibility of all parties, therefore the Company and related parties are determined to create a healthy work environment, prevent the occurrence of occupational diseases, injury free and carry out operational activities according applicable rules”.



TARGET OF OCCUPATIONAL SAFETY AND HEALTH ASPECT

The general target of the implementation of policies and operational aspects of Occupational Safety and Health awareness is to achieve zero accidents throughout all aspects of operational activities and in all work units of the Company. The next target is a reduction in employee absenteeism due to illness, and an increase in the performance of all employees because of maintaining vitality, freshness and health.

OCCUPATIONAL INCIDENT PREVENTION PROGRAM

The OSH topic is one of the topics in the Collective Labor Agreement that applies in each company within Semen Indonesia Groups. Employees are required to fulfill all provisions relating to OSH governance and can refuse to work if the conditions are considered to endanger work safety. In addition to regulating OSH aspects through the agreement, the Company prevents incidents of work accidents through the implementation of the following programs: • Brief, Neat, Clean, Care and Diligent assessment

program conducted every three months;• Internal audit program by Internal Audit and

external audit by the certification body once a year;

• Establishment of a Safety Officer team and independent OSH activities of the work unit;

• Conduct safety talk once a week in work units;• Increasing P2K3 work unit activities through

appointment of OSH Ambassadors;• Increase employee knowledge/competency

through General OSH Expert Certification, Boiler Operator Certification.

OSH ASPECT PERFORMANCEOSH aspect performance is measured through the achievement of work accident frequency parameters and severity index, as well as the number of hours/days lost due to work accident incidents.

In 2018, the occupational accident rate increased compared to 2017, amounting to 17.65%, because in 2018 the scope of the calculation of K3 performance had involved Thang Long Cement and PT Semen Gresik Rembang Plant.

The Company has integrated all operational systems related to the management of Occupational Safety and Health into the Semen Indonesia Management System. The operational standard that is integrated is the OSH Management Standard Extension (SMK3) from the Indonesian Ministry of Manpower and Transmigration which has been implemented since 2007, the OHSAS 18001:2007 standard, and accident incident prevention programs in the 5R program and the Suggestion System. The integration is also followed by the implementation of a Contractory Safety Management System (CSMS) which is intended to determine the performance of work units within the Company and work partners or third party contractors, in implementing SMK3.

In accordance with the required Occupational Safety and Health implementation standards, the Company routinely carries out safety committee meetings both with related work units and with partners/mining contractors. Regular meetings aim to remind all parties to continue to implement all provisions relating to Occupational Safety and Health.

OSH ORGANIZATIONThe Company has formed P2K3 (Occupational Safety and Health Advisory Committee)/SC (Safety Committee) as a forum for employee participation in the implementation of OHS in the workplace. The main task of P2K3 as an auxiliary body in the workplace is to provide suggestions and considerations, whether requested or not, to the employer/administrator of the workplace concerned regarding issues of occupational safety and health.

In its implementation, P2K3 members at each Operating Company of Semen Indonesia represented all (100%) permanent employees in submitting proposals, inputs, and criticisms related to the implementation of Occupational Safety and Health. The total representation of employees in P2K3 in each Operating Company varies, for 2018, the intended representatives are: at PT Semen Gresik 28 representatives, at PT Semen Padang 27 representatives and at PT Semen Tonasa 30 representatives, so the total representation in SIG is 85 people.

Number of Work Incidents


Work Incidents 20 17 19

Notes:2017 data does not include TLCC



HEALTH CARE AND SERVICES

Health care and physical fitness of employees receive special attention from the Company because they can support smooth operations. Therefore, the Company encourages the culture of healthy living by providing sports facilities, sports competitions, and facilities to participate in certain sports clubs. The Company also has a comprehensive medical check-up (MCU) program for all employees every once in one year to for early detection of illnesses, as well as medical actions if needed. Medical checks for employees, including physical examination, physical fitness, laboratory, EKG, spirometri, audiometry, x-ray, and dental and eye examination. Employee MCU results are sent directly to each employee’s e-mail. If abnormalities are found in the results of the employees’ MCU will be summoned to consult the doctor. On the other hand, each member of Semen Indonesia Group provides health clinics as a means of treating sick employees due to work. If the employees need medical procedure that cannot be done at the clinic, they are referred to the nearest hospital, such as employees of Semen Padang will be referred to Semen Padang Hospital, Semen Tonasa to Regional General Hospital (RSUD) of Pangkep and other hospitals in Makassar City, RSUD Blora for Semen Gresik, and Semen Gresik Hospital for Business Unit Tuban.

SOCIAL AND COMMUNITY RESPONSIBILITIES

COMMITMENT The Company is fully committed to improving the socio-economic life of the community around operational areas in order to prosper in line with the growth of the company’s business.

LEGAL BASISThe legal basis for the implementation of the Social and Community Responsibility Program implemented by the Company in order to improve the socio-economic life of the community or the CSR

Program around this operational area includes:• Law Number 40 of 2007 concerning Limited

Liability Companies which is supported by Government Regulation No. 47 of 2012 concerning Social and Environmental Responsibility.

• SOE Minister Regulation Number Per-09/MBU/07/2015 concerning State-Owned Enterprises Partnership and Community Development Program.

• Law Number 13 of 2011 concerning Treatment of the Poor.

• Minister of Social Affairs Regulation Number 13 of 2012 concerning Business Responsibility Forum in the implementation of Social Welfare at the Provincial level.

CORPORATE SOCIAL RESPONSIBILITY TO COMMUNITIES

The Company embodies a community welfare enhancement program with reference to Law No.40/2007 and Government Regulation no. 47/2012, as well as Law No.25/2007 on Investment. As a state-owned enterprise, we also implement the Regulation of the Minister of State-Owned Enterprises Number: PER-09/MBU/07/2015 jo. PER-03/MBU/12/2016 jo. PER-02/MBU/07/2017 on the Partnership and Community Development Program of State-Owned Enterprises.

In order for the realization of all these activities to provide optimal benefits in accordance with the availability of funds, the allocation of funds was prioritized to Ring I areas of operational activities as the areas most affected by the Company’s business activities. The realization of these programs is the result of Pilar SI Peduli.



Semen Indonesia CSR Activities

Community Services Community Relation Community Empowerment

Proactively cultivating mutually beneficial relationship with local communities, focusing on preventive efforts to avoid and anticipate social discontent.

Community empowerment by providing public, religious, educational, social welfare, and health facilities as well as infrastructure support.

Empowering communities’ business potentials to stimulate economic growth and equitable development:• Growth of real sectors• Increased income per capita at

regional level• Growth of local business players• Financial institutions• Jobs

Semen Indonesia

Development of Environmental, Social and Economy

Achievement AchievementProsperityIPM SDGs

STRATEGIC OBJECTIVES OF THE CSR PROGRAMThe target of implementing the program/activity is the development of the social and economic environment, so as to improve their welfare according to the Human Development Index (HDI) and to the goals defined in the Sustainable Development Goals (SDGs). The strategic objectives of implementing corporate social responsibility activities include: • Realizing a harmonious relationship between the

company and the community.• Helping the growth and development of

small businesses and cooperatives that are independent, resilient and competitive, able to increase employment through professional management.

• Develop a pattern of fostering small businesses and cooperatives, whether related or not related to the Company’s business through channeling of funds and sustainable coaching, by prioritizing aspects of equity, independence, professionalism and ethics.

• Maintain environmental preservation, and help improve the quality of life of the community which covers the fields of education, health and welfare.

The Company has set the parameters of the effectiveness of the implementation of the four strategic steps, namely: in line with the company’s vision and mission, increasing community welfare, improving environmental quality, improving and enhancing Corporate Image and providing added value to stakeholders.

The general target of the implementation of the Company’s CSR program is in line with the general targets stated in the SOE Minister Regulation No. Per-09/MBU/07/2015 concerning the State-Owned Enterprise Partnership Program and Community Development Program, namely:• Enhancing the ability of small businesses to be

resilient and independent through the use of funds from the SOE profit.

• Empowering the social conditions of the community by BUMN through the use of funds from the BUMN profit section.



The general target of the CSR program implementation is also stated in the pillar of SI Care - Corporate CSR “Improving the quality of community human resources in accordance with needs fairly

and balanced, with the aim of jointly contributing to improving the socio-economic quality of the community and continuously maximizing the management of operational impacts”.

MainDirectorate

Corporate Secretary

DepartmentofCSR

ThePartnership&CommunityDevelopmentProgram

Staff

CSRPlanning&Evaluation

Bureau

Stafd

Supervisor 1 : President Director

Supervisor 2 : Corporate Secretary

Person in Charge : Department of CSR

Chief Executive : Head of Partnership & Community Development Program Bureau

Head of Bureau of Planning & Evaluation of CSR

Executor : Staff of Partnership & Community Development Program Bureau

Staff of CSR Planning & Evaluation Bureau

Composition of Management of CSR Department PT Semen Indonesia (Persero) Tbk:

ORGANIZATIONAL STRUCTURE OF THE CSR PROGRAM MANAGEMENTThe Company has formed a CSR Program Management Organization, based on the Decree of the Board of Directors of PT Semen Indonesia (Persero) Tbk No.030/Kpts/Dir/2017 dated July 3, 2017 which was revised with Board of Directors Decree No.070/Kpts/Dir/2017 concerning “ Company Organization Structure” established on December 27, 2017 and are effective from January 1, 2018, the Bureau of Partnership & Community Development Program and the CSR Planning & Evaluation Bureau are functional and responsible to the CSR Department.

COMPANY CSR PROGRAM BUDGETThe budget for the implementation of the Company’s CSR program for 2018 as determined by the 2017 GMS is a shift of Rp174,650.3 billion. (2016: Rp270.5 billion).

Budget Recapitulation of Semen Indonesia CSR Program 2015-2018

(Rp million)

Description 2018 2017 2016 2015

Social and Environmental Responsibility 73.410,0 133.725,3 130.244,7 136.395,3

Community Partnership Program *) 77.548,0 77.625,8 78.858,0 69.588,0

Community Development Program 23.692,3 59.128,7 56.570,4 30,1

Total 174.650,3 270.479,8 265.673,2 206.013,4

*) Including Grant for the Development of Fostered Partners



PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM

The Partnership and Community Development program is implemented in accordance with the provisions of the SOE Minister Regulation No: PER-09/MBU/07/2015 related to PER-03/MBU/12/2016 related to PER-02/MBU/07/2017 concerning the State-Owned Enterprise Partnership and Community Development Program. As one of the leading SOEs, the Company realizes the PKBL program as one of the programs aiming to improve the standard of living and welfare of the surrounding community through activities in developing economic competencies and social life. Through the Partnership Program, the Company provides business capital loans intended to empower micro, small and medium enterprises and cooperatives (MSMEs). While through Community Development activities, the Company provides assistance to improve the quality of life of the community through the construction of public facilities and infrastructure, as well as social assistance to victims of natural disasters.

PARTNERSHIP PROGRAMUntil the end of 2017, Semen Indonesia Group has groomed 37,612 fostered partners, with activity areas mainly located in Padang, Pangkep, Gresik, Tuban and Rembang. The business area of the fostered partners include trade, culinary, agribusiness, creative industries, to various other small industrial sectors.

Meanwhile in 2018, by utilizing revolving funds, the Company realized the distribution of working capital loan programs on soft terms to 1,963 (2017: 2,291) fostered partners. So that the accumulated partners of Semen Indonesia Group become 39,575 partners.

Number of Fostered Partners

Realization up to 2017

Realization of Fostered

Partners in 2018

Total Cumulative of Fostered

Partners as of 2018

37.612 1.963 39.575

Partnership Program Fund Distribution Accomplishment (Rp Million)

Realization of Fund

Distribution up to 2017

Realization of Fund

Distribution in 2018

Total Cumulative

of Fund Distribution as

of 2018

946.677,16 77.457,97 1.024.223,93

“Since 2013, Semen Indonesia has also channeled loan funds to the Partnership Program to SMEs in Rembang. The total funds channeled until the end of 2018 is reaching Rp19.8 billion and given to 882 SMEs in the industrial, service, trade and livestock sectors.”

In addition to being channeled in the form of loans, the Partnership Program funds are also used to finance education, training, apprenticeship, marketing, promotion, and other matters relating to increasing the productivity of Foster Partners as well as for studies related to the Partnership Program.

The total budget for all grant programs/activities is Rp3.247 billion (2017: Rp3.54 billion).

COMMUNITY DEVELOPMENT PROGRAMIn accordance with the provisions of the SOE Minister Regulation above, there are 7 types of activities carried out in the context of implementing the Community Development Program, namely: Natural Disaster Aid, Education/Training Assistance, Health Improvement Aid, Development of Public Facilities/Infrastructure, Worship Aid, Nature Conservation Aid and Social Community Assistance in the context of Poverty Alleviation.

Program Realization in 2018• Natural Disaster Assistance During 2018, the Company through Semen

Indonesia Peduli has distributed aid to victims of natural disasters amounted Rp671.21 million. Assistance was provided for the earthquake in Lombok, Sumenep Pamekasan, and Donggala Palu.

• Education/Training Assistance In 2018, total educational assistance for Gresik,

Tuban, Rembang, Padang and South Sulawesi region amounted to Rp3.78 billion (2017: Rp15,050 billion) in the form of:1. Scholarships to 2,641 students from

elementary, junior high, high school to college levels.

2. Assistance to 15 Adiwiyata schools3. A, B and C education level acceleration

program4. Assistance for school facilities improvement

and equipments5. Community economic empowerment trainings6. Semen Indonesia Community Reading Center



• Health Improvement Assistance Health service assistance in Gresik, Tuban,

Rembang, Padang and South Sulawesi for mass health services, mass circumcision, family planning & integrated health service trainings, prosthetic equipments, cataract surgeries, construction of livable housing and public toilets for the underprivileged. The Company also provided health service vehicles.

The amount of the health service assistance program in 2018 is Rp5 million and total up to 2018 is Rp1.529 billion.

• Public Facilities/Infrastructure Development. Public facilities/infrastructure assistance

contributed in Gresik, Tuban, Rembang, Padang and South Sulawesi include construction of village gates, road construction and repair, construction of rainwater catchment ponds, construction of suspension bridges, repairs and construction of village meeting halls, security posts refurbishment, construction of village parks, construction of waterways and sports facilities.

The total assistance disbursed for public facilities in 2018 amounted to Rp11.13 billion (2017: Rp17.6 billion).

• Religious Assistance Various forms of assistance handed out for

religious activities include: religious ceremonies and activities funding; financial support for the construction of religious facilities and organizations; cement assistance for the construction of place of worship; sarong, mukena and basic staple necessities for Ramadan; livestock for Eid al-Adha qurban; charities for orphans, zakat fitrah, and Hajj counseling.

In 2018, the total budget for the entire religious program Rp935.10 million (2017: Rp5.39 billion).

• Environmental Conservation Assistance The Company has undertaken natural conservation

programs and agendas such as roadside greening, coastal areas reforestation, land reforestation, productive tree and potted plants planting, and Green Belt farmers’ empowerment assistance, and; the construction of water absorption wells.

The total budget for the entire environmental conservation programs and activities was Rp11.67 billion (2017: Rp1,184 billion).

• Social Community Assistance The Company has also carried out social activities

such as Multi-Stakeholder Communication Forum assistance program.

The total amount of funds disbursed for the above program was Rp6.95 billion (2017: Rp17.688 billion).

CSR PROGRAM - SOCIAL COMMUNITY

The CSR-Social Community Program is carried out as part of the implementation of SI Peduli, namely the investment in the socio-economic development of the community. The types of activities carried out in this program are adjusted to the conditions and needs of social investment around the location of production facilities and supporting facilities of the Company. Sometimes activities within the framework of this CSR Program are carried out in the form of support for the implementation of similar programs initiated by the Central Government and by the Ministry of BUMN.

“In 2018, the Company realized no less than 250 activities in the context of implementing this CSR Program. The total funds used to support the implementation of all of the above activities amounted to Rp23.66 billion. “(2017: Rp270.48 billion). The examples of activities carried out are as follows:1. State-Owned Enterprises for the State

Program in Papua Province contributed to the refurbishment of 50 veterans’ homes, “Siswa Mengenal Nusantara”, Indonesia’s independence day celebration, and 5 kilometer fun walk

2. State-Owned Enterprises for the Campus Program held simultaneously on October 28, 2017 for Scientific Discussion and Public Lectures held in cooperation with Student Executive Board (BEM) at Pattimura University Ambon, in coordination with BL/CSR assistance by State-Owned Enterprises to Universities and student scholarships.

3. State-Owned Enterprises Joint Anniversary Program in Mandalika, NTB together with other SOEs, the Company contributed to the construction of the Sasak Ende mosque amounting to Rp328,350,000.



4. The distribution of basic staple necessities for Idul Fitri 1438 H religious celebration to boarding school in West Java coordinated by Bulog.

5. Assistance for Christian youth and Orphanage for Christmas celebration and New Year’s Day

6. Contribution to the construction of Mama-Mama traditional market in Papua amounting to Rp2,000,000,000.

CORPORATE SOCIAL RESPONSIBILITY TO CONSUMERS

MANAGEMENT POLICYConsumers, both distributors and end users, are stakeholders, who directly influence the sustainability of the Company. Therefore, the Company is strongly committed to fulfilling consumer rights which include, among others: the right to obtain the best quality products at the right price, the right to obtain the best customer complaints handling, the right to certainty of product availability and the right to protection from risk of product impact on health and safety.

The Company has established internal policies, so that all levels of staff strive to fulfill these consumer rights, including complying with all laws and regulations governing consumer rights. Therefore, the Company continues to strive to improve consumer service and protection also as a form of compliance with Law No. 8 Year 1999 regarding Consumer Protection.

TARGETThe target to be achieved from the implementation of responsibility to consumers, includes several aspects, namely:• Availability of products in the market with

sufficient quantities.• Fulfillment of consumer expectations for product

specifications as delivered in the packaging and in marketing.

• Fulfillment of cement supply contracts in a timely and quality manner, to support the completion of physical construction projects from customers

• Maintaining consumers from the risk of health and safety impacts when using the Company’s products.

2018 ACTIVITIESThe Company realizes various investments and special operational activities to fulfill its responsibilities to consumers, as explained below.

PROVIDING PRODUCTS WITH ADEQUATE AMOUNTSTo provide products adequately on the market, the Company realizes several investments, both investment in new factories and investments in order to strengthen the distribution channel. For 2018, the investments made by the Company, including:• Increase production volumes from new

production facilities, in Padang and Rembang to meet market needs with the most economical production volume and distribution costs.

• Increase distribution capabilities by providing supporting facilities in the form of Packing Plants in Oba, North Maluku and in Bengkulu.

QUALITY PRODUCTS ACCORDING TO CONSUMER EXPECTATIONSTo meet consumer expectations for quality cement products according to stated specifications, the Company carries out several activities, including:• Implementation of Research and Development

activities, to produce the best products according to the conditions and needs of consumers.

• Random and continuous implementation of quality control, by checking on products based on random sampling methods according to the quality management system being implemented.

• Provision of customer complaint channels and customer complaint resolution teams who will be ready to help resolve customer complaints on-the-spot.



COMPLIANCE WITH TIMELY AND QUALITY CEMENT SUPPLY CONTRACTSTo meet consumers’ expectations of the volume and product of cement in a timely and quality manner, the Company realizes a variety of approaches, including:• Establish a Corporate Marketing Unit and provide

Corporate Relationship Managers to establish close communication with corporate customers and ensure the fulfillment of product delivery in quantity and quality.

• Improve cement product distribution channels.• Revitalizing the role of the Company’s cement

product distributor.

CONSUMER HEALTH AND SAFETY RISK MITIGATIONTo ensure consumer safety, the Company and its subsidiaries produce cement bag packaging weighing 40 kilograms and 50 kilograms. This is in accordance with the maximum weight of ergonomics that can be lifted by humans without aids.

The Company features every product that is produced and sold to customers, with information about quality and other specifications, which are listed on the outside of the packaging and contain:1. The symbol/logo of the producing company.2. Product name.3. Industrial National Standard Number (SNI).4. Weight in packaging.5. Type of cement.6. Instructions for use.7. Consumer service number for complaint

resolution.

CUSTOMER SATISFACTION SURVEYThe Company conducts surveys every year to determine the level of customer satisfaction for the services provided and monitors the Company’s performance in meeting customer expectations. The survey results are displayed in the Customer Satisfaction Index (CSI) for distribution channels and customers.

For 2018, the Company’s CSI Index is 90.6 (out of a scale of 100). This index is the same as the previous year.



PARTNERSHIP SUCCESS STORIES

PUDJIONO’S BEEF CATTLE

Starting its beef cattle business since 2001, Pudjiono’s business has developed after obtaining financial support from PT SEMEN INDONESIA (PERSERO) Tbk. This support was provided in the form of a soft loan worth Rp40,000,000 in 2015. Now, his turnover has reached Rp75,000,000.

Pudjiono never thought that his cattle fattening business could run smoothly as it is now. He had hesitated before finally deciding to become a rancher in 2001. At that time, only with the knowledge of raising traditional cattle that were handed down by his parents, the resident of Kebon RT 9 RW 2 Karangrejo Village, Banjar District, Tuban Regency, East Java, were determined to raise cattle. Only with Rp13 million in hand, he fills his cage with two local cow seedlings.

“My wife happened to get some money from arisan. I immediately use the money, “he said.Imported cattle like to eat and get fat fast. For comparison, it took 3-9 months to fatten this imported cow before it was released to the market. Whereas local cows, explained Pudjiono, took longer. The selling price is not as high as imported cattle.

The imported cattle seedling brought by Pudjiono was 2 years old with a purchase price of Rp18 million to Rp20 million. If it happened to be good seedling, then within only three months the cattle can gain weight up to 5-7 quintals. The selling price can reach Rp30 million.

“Therefore, in the last few years, I engage in imported cattle business,” he said. His decision to engage in the business of beef cattle is not without challenge. Fund become the key obstacle.

Fortunately, in 2014, he was able to join as Fostered Partner of Semen Indonesia. “They granted me a Rp40 million worth of loan. Moreover, I also received training for managing this business,” he said.

This additional capital is used to procure a fodder making machine that provides tremendous savings since one of the obstacles to fattening cattle is the high cost of animal feed.

“I myself prepare animal feed. I mix concentrates with elephant grass so that the cattle eat more and get fatter,” he said.

Currently he is also being facilitated by Semen Indonesia to be able to market cattle directly to slaughterhouses. If successful, this step will be very profitable. Because, all this time, he still uses the old system of transaction, where the butchers would take his cattle first and only be paid if the cattle were sold.

“Very burdensome. Inhibiting capital turnover, “he said. “Hopefully Semen Indonesia can find partners or anyone who can buy and pay right away,” he hoped.

PudjionoBeef Cattle Enterpreneur



This chip business began in 2001 when he saw bananas abundant around his village. What she saw encouraged his entrepreneurial spirit while studying at the Surabaya Tourism Academy. Her skilled hands then began working to process the abundant bananas.

Initially, the banana was processed into banana chips. Made only for self-consumption and for his guests who come to visit. She never expected that his homemade chips were highly praised. Neighbors and guests begin to order.

“I then increase the production and sell it in small packages at shops,” said the graduate from PGSD Kanjuruhan Malang.

Over time, her business grew and he began to diversify products, including adding a number of variants of chips, ranging from breadfruit, cassava, sweet potatoes, and even now to pastries. Since then, she has become more serious about this business.

The increasing number of requests made Ayun overwhelmed so that she then recruited three workers at once.His business continues to grow and his employees increase to 20 people today. The turnover also went up to Rp30 million per month. The rapid development of its business was partly due to its decision to join as Semen Indonesia Fostered Parent in 2014. In addition to capital assistance, she also gained new insights in managing the business. One of them is segmenting the market. Strong in the lower middle segment, Ayun who labeled his product Sha-Sha began targeting the upper middle class.

“In addition to capital assistance, as a partner, I also received some training in managing this business. Both financial and marketing management, “Ayun said.

Through this training Ayun’s ability to absorb market desires and keep up with innovation continues to be improved and handed down to employees. To guarantee quality and innovation, slowly, Ayun began to reduce its involvement in production, to focus more on quality control.

“Everything is handled by employees. I just check the final results and manage the finances, “she said.

In this way, Ayun is not too worried that her business will be imitated. Instead, she encouraged her employees to slowly start their own businesses.

“The best way of living life is living the kind of life that is beneficial to others.” She said.

Her belief also lead him to do more than just managing her business. She built school for toddler and kindergarten in her village, and now both schools have 60 students with 5 teachers.

“It is a form of giving back to community and sharing knowledge as part of good deeds”, she said.

Snack Business of Ayun Komalasari

SHA-SHA SNACKAYUN KOMALASARI started her SHA-SHA snack business in 2001. Thanks to the support of a 2-term soft loan from PT SEMEN INDONESIA (PERSERO) Tbk, her snack business is growing rapidly, and is marketed to KALIMANTAN, JAVA, NTT & SINGAPORE.

The first loan was provided in 2014, amounting to Rp10,000,000, and the second loan was provided in 2015, amounting to Rp8,000,000. Now Ayun Komalasari has employed 20 people from the surrounding area with a business turnover of up to Rp30,000,000 per month.



The Owner of UD Kopi Tiga Putra, Mr. Gito, received soft loan from PT SEMEN INDONESIA ( PERSERO) Tbk in 2017, amounted to Rp30,000,000 and he used it to purchase coffee grinder and filter machine, as well as additional working capital. With three assistance to help him, Gito’s business turnover has grew to Rp45 million and is marketed in Blora, Pati, Jepara and Surabaya

“Kopi lelet” that is produced by Gito, resident of Village Kemadu, Sub-district of Sulang, District of Rembang, gains popularity among coffee lovers. Besides selling it to shops in the district where he lives, he also sells it to Blora, Pati, Jepara, and even Surabaya. Lelet means finely ground, hence the brand guarantee that the coffee powder is finer and pure.

Gito, with assistance from his neighbour, produces kopi lelet in three kinds of package, 90 gr, 225 gr and 450 gr. Brown coffee is sold for Rp5,500, Rp15 thousand and Rp25 thousand respectively. While black coffee is sold with higher price, namely Rp1,000 for one packet. Started with around Rp2.5 million as capital, now Gito’s business grows steadily.

Public has trusted his product since it has received food permit from the Public Health Office with the Permit No. P.IRT: 210331701494-17.

Gito, Owner of UD Kopi Tiga Putra

KOPI TIGA PUTRA



Started with intention to explore local potentials, Bandeng Mentari grows fast after joining as one of the fostered SMEs of Semen Indonesia

Since youth, Amin Falahuddin, a native from Gresik, has an aspiration to explore local potentials. Following is his abridged story.

“In 2012, I had this desire to explore the local potential. Mengare happened to be famous for its delicious Milkfish (Bandeng). After months of contemplating about what kind of business I should engage in, I have this idea of producing boneless processed-milkfish,”he said.

As he laugh, he continued his story, about how his first fish product was messed up since he has no knowledge on how to pull out the fish bones.

“Wow, a-30 kg of Milkfish was wasted. But I did not give up, and kept trying. Finally, in the third trial, I succeeded ... Alhamdulillah. I sell my fish to neighbours and receive a warm response.”

After yeats of endeavouring on his own, eventually he joined the fostered SMEs of Semen Indonesia.

“I dare to apply for a loan to Semen Indonesia. It happened in 2014. I used the funds to buy equipment to increase production. Alhamdulillah, I got many orders from several regions, such as: Surabaya, Malang and Mojokerto. I strive to meet market demand as well as possible by prioritizing the quality of my milkfish. “

Mr. Anim Falahudin continued, “In production, I don’t use preservatives, but I can guarantee that my product is durable, the fish meat is whole and savoury. I also provide a guarantee, if the fish is spoiled, we will replace it, ‘he said.

In order to convince buyers, Mr. Falahuddin also applied for permits/licenses relevant to his business. Mr. Falahuddin registered his product to various authorized agencies to get permit/certification.

Until now, Menteng Mentari products have received various certifications, including: Halal Certification from MUI, Fisheries Trading SIUP, Implementing ISO 9001: 2008, and GMP issued by IPB certification bodies.

Amin Falahuddin, Bandeng Entrepreneur

BANDENG MENTARI



293 DIRECTOR’S STATEMENT LETTER

294 INDEPENDENT AUDITOR’S REPORT

296 Consolidated Statements of Financial Position

298 Consolidated Statements of Profit or Loss and other Comprehensive Income

299 Consolidated Statements of Changes in Equity

300 Consolidated Statements of Cash Flows

301 Notes to the Consolidated Financial Statements



CONSOLIDATED FINANCIAL

STATEMENTS

PT SEMEN INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK / AND ITS SUBSIDIARIES LAPORAN KEUANGAN KONSOLIDASIAN/ CONSOLIDATED FINANCIAL STATEMENTS UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2018 DAN 2017/ FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

DAN LAPORAN AUDITOR INDEPENDEN/ AND INDEPENDENT AUDITOR’S REPORT



PT SEMEN INDONESIA (PERSERO) Tbk PT SEMEN INDONESIA (PERSERO) TbkDAN ENTITAS ANAK AND ITS SUBSIDIARIESLAPORAN POSISI KEUANGAN KONSOLIDASIAN CONSOLIDATED STATEMENTS OF FINANCIAL POSITION31 DESEMBER 2018 DAN 2017 DECEMBER 31, 2018 AND 2017(Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain) (Expressed in thousands of Rupiah, unless otherwise stated)

Catatan/Notes 2018 2017 *)

ASET ASSETSASET LANCAR CURRENT ASSETSKas dan setara kas 3j,5 5.245.730.518 3.637.760.116 Cash and cash equivalentsKas dan setara kas yang dibatasi Restricted cash and cash

penggunaannya 3k,5 31.332.430 28.733.149 equivalentsInvestasi jangka pendek 3g,6 8.453.004 8.453.004 Short-term investmentsPiutang usaha Trade receivables

- Pihak ketiga, setelah dikurangi - Third parties, net of allowance cadangan penurunan nilai sebesar for impairment losses of Rp112.435.948 pada Rp112,435,948 at 31 Desember 2018 dan December 31, 2018 and Rp92.847.911 pada Rp92,847,911 at 31 Desember 2017 3g,7 4.585.339.434 4.031.171.228 December 31, 2017

- Pihak berelasi, setelah dikurangi - Related parties, net of allowance cadangan penurunan nilai sebesar for impairment losses of Rp27.967.036 pada Rp27,967,036 at 31 Desember 2018 dan December 31, 2018 and Rp28.966.934 pada Rp28,966,934 at 31 Desember 2017 3g,7,43 1.200.875.923 854.495.086 December 31, 2017

Piutang lain-lain Other receivables- Pihak ketiga, setelah dikurangi - Third parties, net of allowance

cadangan penurunan nilai sebesar for impairment losses of Rp38.787.724 pada Rp38,787,724 at 31 Desember 2018 dan December 31, 2018 and Rp12.562.386 pada Rp12,562,386 at 31 Desember 2017 3g,8 128.196.069 73.004.526 December 31, 2017

- Pihak berelasi, setelah dikurangi - Related parties, net of allowance cadangan penurunan nilai sebesar for impairment losses of Rp1.566.759 pada Rp1,566,759 at 31 Desember 2018 dan December 31, 2018 and Rp2.953.688 pada Rp2,953,688 at 31 Desember 2017 3g,8,43 45.305.835 36.343.891 December 31, 2017

Persediaan - bersih 3m,9 3.544.142.429 3.686.332.189 Inventories - netUang muka 10 162.972.049 209.115.185 AdvancesBeban dibayar dimuka 3n,11 61.727.992 95.802.638 Prepaid expensesPajak dibayar dimuka 3z,12 985.728.316 1.132.561.717 Prepaid taxesAset lancar lainnya 7.881.628 8.045.804 Other current assetsJumlah Aset Lancar 16.007.685.627 13.801.818.533 Total Current Assets

ASET TIDAK LANCAR NON-CURRENT ASSETSAset pajak tangguhan 3z,40 506.557.499 764.351.543 Deferred tax assetsInvestasi pada entitas asosiasi 3l,13 85.637.708 83.664.640 Investment in associatesProperti investasi 3o,14 132.042.739 146.461.993 Investment propertiesAset tetap, setelah dikurangi akumulasi Fixed assets, net of accumulated

penyusutan dan deplesi sebesar depreciation and depletion ofRp16.966.821.508 pada Rp16,966,821,508 at 31 Desember 2018 dan December 31, 2018 andRp15.369.481.980 pada Rp15,369,481,980 at 31 Desember 2017 3p,3w,15 32.748.895.968 32.523.309.598 December 31, 2017

Beban tangguhan - bersih 3u,16 114.671.261 115.933.340 Deferred charges - netAset takberwujud - bersih dan goodwill 3q,3r,17 1.211.665.990 1.269.644.424 Intangible assets - net and goodwillUang muka investasi 18 5.418.625 14.254.911 Advances for investmentAset tidak lancar lainnya 3cc,19 343.314.810 349.211.231 Other non-current assetsJumlah Aset Tidak Lancar 35.148.204.600 35.266.831.680 Total Non-Current AssetsJUMLAH ASET 51.155.890.227 49.068.650.213 TOTAL ASSETS

*) Disajikan kembali (Catatan 52) *) As restated (Note 52)

Lihat catatan atas laporan keuangan konsolidasian yang merupakan See accompanying notes to consolidated financial statementsbagian yang tidak terpisahkan dari laporan keuangan konsolidasian. which are an integral part of the consolidated financial statements.

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PT SEMEN INDONESIA (PERSERO) Tbk PT SEMEN INDONESIA (PERSERO) TbkDAN ENTITAS ANAK AND ITS SUBSIDIARIESLAPORAN POSISI KEUANGAN KONSOLIDASIAN CONSOLIDATED STATEMENTS OF FINANCIAL POSITION31 DESEMBER 2018 DAN 2017 DECEMBER 31, 2018 AND 2017(Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain) (Expressed in thousands of Rupiah, unless otherwise stated)(Lanjutan) (Continued)


LIABILITAS DAN EKUITAS LIABILITIES AND EQUITYLIABILITAS JANGKA PENDEK CURRENT LIABILITIESPinjaman jangka pendek 3h,20,43 1.551.659.339 1.193.063.247 Short-term borrowingsUtang usaha Trade payables

- Pihak ketiga 3h,23 3.769.232.616 4.070.189.302 - Third parties- Pihak berelasi 23,43 706.916.162 856.887.653 - Related parties

Utang lain-lain Other payables- Pihak ketiga 3h,24 261.590.306 236.241.839 - Third parties- Pihak berelasi 24,43 46.729.403 86.225.118 - Related parties

Beban akrual 3h,25 901.429.463 630.053.673 Accrued expensesUtang pajak 3z,26 362.783.333 245.687.716 Taxes payableLiabilitas imbalan kerja jangka pendek 3y,42 392.573.073 726.250.833 Short-term employee benefits liabilitiesUang muka penjualan 27 37.800.284 31.528.385 Sales advancesLiabilitas jangka panjang yang jatuh Current maturities of

tempo dalam satu tahun long-term liabilities- Pinjaman bank 3h,20,43 83.738.982 602.177.467 - Bank loans- Liabilitas sewa pembiayaan 3t,22 88.384.638 125.271.821 - Finance lease liabilities

Jumlah Liabilitas Jangka Pendek 8.202.837.599 8.803.577.054 Total Current LiabilitiesLIABILITAS JANGKA PANJANG NON-CURRENT LIABILITIESLiabilitas pajak tangguhan 3z,40 207.233.488 71.538.186 Deferred tax liabilities

Long-term employee benefitsLiabilitas imbalan kerja jangka panjang 3y,42 1.433.259.303 1.777.879.006 liabilitiesLiabilitas jangka panjang

setelah dikurangi yang jatuh tempo Long-term liabilitiesdalam satu tahun net of current maturities- Pinjaman bank 3h,20,43 4.872.138.666 4.715.120.564 - Bank loans- Utang obligasi 3h,21 2.994.901.610 2.993.704.359 - Bonds payable- Liabilitas sewa pembiayaan 3t,22 273.292.868 389.956.191 - Finance lease liabilities

Provisi jangka panjang 3v,28 228.188.046 224.035.574 Long-term provisionsLiabilitas jangka panjang lainnya 3h,24 207.743.125 46.806.640 Other non-current liabilities

Jumlah Liabilitas Jangka Panjang 10.216.757.106 10.219.040.520 Total Non-Current LiabilitiesJumlah Liabilitas 18.419.594.705 19.022.617.574 Total Liabilities

EKUITAS EQUITYEkuitas yang dapat diatribusikan Equity attributable to equity

kepada pemilik entitas induk: holders of the parent entity:Modal saham - nilai nominal Share capital - par value of

Rp100 (angka penuh) per saham untuk saham Rp100 (full amount) per share forSeri A Dwiwarna dan saham Seri B, Series A Dwiwarna share and Series B SharesModal dasar - 1 saham Seri A Dwiwarna dan Authorized - 1 Series A Dwiwarna share

19.999.999.999 saham Seri B and 19,999,999,999 Series B sharesModal ditempatkan dan disetor

penuh - 1 saham Seri A Dwiwarna dan Issued and fully paid - 1 Series A Dwiwarna5.931.519.999 saham Seri B 3h,29 593.152.000 593.152.000 and 5,931,519,999 Series B shares

Tambahan modal disetor 3h,30 1.458.257.900 1.458.257.900 Additional paid-in capitalSelisih transaksi ekuitas dengan Difference in value of equity transaction

pihak non-pengendali 3d,49 28.928.287 28.928.287 with non-controlling interestsKomponen ekuitas lainnya 497.968.468 101.295.697 Other components of equitySaldo laba Retained earnings

- Ditentukan penggunaannya 253.338.000 253.338.000 - Appropriated- Belum ditentukan penggunaannya 28.360.440.327 26.087.003.278 - Unappropriated

Jumlah ekuitas yang dapatdiatribusikan kepada Total equity attributable to thepemilik entitas induk 31.192.084.982 28.521.975.162 owners of the parent entity

Kepentingan non-pengendali 3d,32 1.544.210.540 1.524.057.477 Non-controlling interestsJumlah Ekuitas 32.736.295.522 30.046.032.639 Total EquityJUMLAH LIABILITAS DAN EKUITAS 51.155.890.227 49.068.650.213 TOTAL LIABILITIES AND EQUITY



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PT SEMEN INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK PT SEMEN INDONESIA (PERSERO) Tbk AND ITS SUBSIDIARIESLAPORAN LABA RUGI DAN CONSOLIDATED STATEMENTS OF PROFIT OR LOSS ANDPENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN OTHER COMPREHENSIVE INCOMEUNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2018 DAN 2017 FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017(Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain) (Expressed in thousands of Rupiah, unless otherwise stated)


PENDAPATAN 3x,33 30.687.625.970 27.813.664.176 REVENUE

BEBAN POKOK PENDAPATAN 3x,34 (21.357.095.645) (19.854.065.409) COST OF REVENUE

LABA KOTOR 9.330.530.325 7.959.598.767 GROSS PROFIT

Beban penjualan 3x,35 (2.237.002.603) (2.411.722.674) Selling expensesBeban umum dan administrasi 3x,36 (2.320.262.405) (2.914.637.436) General and administration expensesPenghasilan operasi lainnya - bersih 3x,37 107.373.802 218.067.383 Other operating income - netPenghasilan keuangan 3x,38 181.972.833 168.672.686 Finance incomeBeban keuangan 3x,38 (959.259.087) (756.448.075) Finance costsBagian laba (rugi) bersih entitas asosiasi 3l,13 1.606.458 (9.637.333) Share in net (loss) profit of associates

LABA SEBELUM PAJAK PENGHASILAN 4.104.959.323 2.253.893.318 PROFIT BEFORE INCOME TAX

Beban pajak penghasilan 3z,40 (1.019.255.087) (603.887.067) Income tax expense

LABA BERSIH TAHUN BERJALAN 3.085.704.236 1.650.006.251 NET PROFIT FOR THE YEAR

PENGHASILAN KOMPREHENSIF LAIN OTHER COMPREHENSIVE INCOMEPos-pos yang tidak akan Items that will not be reclassified

direklasifikasi ke laba rugi: subsequently to profit or loss:

Pengukuran kembali atas Remeasurements of definedliabilitas imbalan pasti 3y,39 413.113.083 (399.261.278) benefits obligation

Manfaat (beban) pajak penghasilan 3z,39,40 (97.606.073) 97.034.342 Income (expense) tax benefit

Pengukuran kembali atas Remeasurements of definedliabilitas imbalan pasti - setelah pajak 39 315.507.010 (302.226.936) benefits obligation - net of tax

Pos-pos yang akan Items that may be reclassifieddireklasifikasi ke laba rugi: subsequently to profit or loss:

Mutasi neto lindung nilai arus kas 39 - (56.801) Net movement on cash flow hedgesSelisih kurs dari penjabaran Exchange difference from translation

kegiatan usaha luar negeri 3e,39 116.162.487 (33.148.049) of foreign operations

Jumlah penghasilan komprehensif lain Total other comprehensive incometahun berjalan - setelah pajak 431.669.497 (335.431.786) for the year - net of tax

JUMLAH PENGHASILAN KOMPREHENSIF TOTAL COMPREHENSIVE INCOMETAHUN BERJALAN 3.517.373.733 1.314.574.465 FOR THE YEAR

LABA TAHUN BERJALAN YANG DAPAT NET PROFIT FOR THE YEAR DIATRIBUSIKAN KEPADA: ATTRIBUTABLE TO:Pemilik entitas induk 3c,41 3.079.115.411 1.620.995.090 Owners of the parent entityKepentingan non-pengendali 3c,32 6.588.825 29.011.161 Non-controlling interests


JUMLAH PENGHASILAN KOMPREHENSIF TOTAL COMPREHENSIVE INCOMEYANG DAPAT DIATRIBUSIKAN KEPADA: ATTRIBUTABLE TO:Pemilik entitas induk 3c 3.475.788.182 1.295.417.884 Owners of the parent entityKepentingan non-pengendali 3c 41.585.551 19.156.581 Non-controlling interests


Laba per saham dasar Basic earnings per share(dinyatakan dalam angka penuh (expressed in Rupiah fullRupiah per saham) 3aa,41 519 273 amount per share)



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PT SEMEN INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK PT SEMEN INDONESIA (PERSERO) Tbk AND ITS SUBSIDIARIESLAPORAN LABA RUGI DAN CONSOLIDATED STATEMENTS OF PROFIT OR LOSS ANDPENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN OTHER COMPREHENSIVE INCOMEUNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2018 DAN 2017 FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017(Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain) (Expressed in thousands of Rupiah, unless otherwise stated)


PENDAPATAN 3x,33 30.687.625.970 27.813.664.176 REVENUE

BEBAN POKOK PENDAPATAN 3x,34 (21.357.095.645) (19.854.065.409) COST OF REVENUE

LABA KOTOR 9.330.530.325 7.959.598.767 GROSS PROFIT

Beban penjualan 3x,35 (2.237.002.603) (2.411.722.674) Selling expensesBeban umum dan administrasi 3x,36 (2.320.262.405) (2.914.637.436) General and administration expensesPenghasilan operasi lainnya - bersih 3x,37 107.373.802 218.067.383 Other operating income - netPenghasilan keuangan 3x,38 181.972.833 168.672.686 Finance incomeBeban keuangan 3x,38 (959.259.087) (756.448.075) Finance costsBagian laba (rugi) bersih entitas asosiasi 3l,13 1.606.458 (9.637.333) Share in net (loss) profit of associates

LABA SEBELUM PAJAK PENGHASILAN 4.104.959.323 2.253.893.318 PROFIT BEFORE INCOME TAX

Beban pajak penghasilan 3z,40 (1.019.255.087) (603.887.067) Income tax expense


PENGHASILAN KOMPREHENSIF LAIN OTHER COMPREHENSIVE INCOMEPos-pos yang tidak akan Items that will not be reclassified

direklasifikasi ke laba rugi: subsequently to profit or loss:

Pengukuran kembali atas Remeasurements of definedliabilitas imbalan pasti 3y,39 413.113.083 (399.261.278) benefits obligation

Manfaat (beban) pajak penghasilan 3z,39,40 (97.606.073) 97.034.342 Income (expense) tax benefit

Pengukuran kembali atas Remeasurements of definedliabilitas imbalan pasti - setelah pajak 39 315.507.010 (302.226.936) benefits obligation - net of tax

Pos-pos yang akan Items that may be reclassifieddireklasifikasi ke laba rugi: subsequently to profit or loss:

Mutasi neto lindung nilai arus kas 39 - (56.801) Net movement on cash flow hedgesSelisih kurs dari penjabaran Exchange difference from translation

kegiatan usaha luar negeri 3e,39 116.162.487 (33.148.049) of foreign operations

Jumlah penghasilan komprehensif lain Total other comprehensive incometahun berjalan - setelah pajak 431.669.497 (335.431.786) for the year - net of tax


LABA TAHUN BERJALAN YANG DAPAT NET PROFIT FOR THE YEAR DIATRIBUSIKAN KEPADA: ATTRIBUTABLE TO:Pemilik entitas induk 3c,41 3.079.115.411 1.620.995.090 Owners of the parent entityKepentingan non-pengendali 3c,32 6.588.825 29.011.161 Non-controlling interests


JUMLAH PENGHASILAN KOMPREHENSIF TOTAL COMPREHENSIVE INCOMEYANG DAPAT DIATRIBUSIKAN KEPADA: ATTRIBUTABLE TO:Pemilik entitas induk 3c 3.475.788.182 1.295.417.884 Owners of the parent entityKepentingan non-pengendali 3c 41.585.551 19.156.581 Non-controlling interests


Laba per saham dasar Basic earnings per share(dinyatakan dalam angka penuh (expressed in Rupiah fullRupiah per saham) 3aa,41 519 273 amount per share)



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PT SEMEN INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK PT SEMEN INDONESIA (PERSERO) Tbk AND ITS SUBSIDIARIESLAPORAN ARUS KAS KONSOLIDASIAN CONSOLIDATED STATEMENTS OF CASH FLOWSUNTUK TAHUN-TAHUN YANG BERAKHIR FOR THE YEARS ENDED31 DESEMBER 2018 DAN 2017 DECEMBER 31, 2018 AND 2017(Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain) (Expressed in thousands of Rupiah, unless otherwise stated)

2018 2017

ARUS KAS DARI AKTIVITAS OPERASI CASH FLOWS FROM OPERATING ACTIVITIESPenerimaan dari pelanggan 29.774.760.687 26.758.019.243 Receipts from customersPembayaran kepada pemasok (21.419.600.405) (19.888.389.463) Payments to suppliersPembayaran kepada karyawan (2.605.271.947) (2.924.968.388) Payments to employeesPenghasilan bunga yang diterima 181.972.833 168.672.686 Interest income receivedPembayaran pajak penghasilan (542.907.169) (1.147.544.131) Payment of income taxesPembayaran bunga dan beban keuangan (961.589.989) (510.791.869) Payment of interest and finance chargesPenerimaan lainnya - bersih 35.096.472 304.937.320 Others receipts - net

Arus Kas Bersih Yang Diperoleh dari Net Cash Flows Provided byAktivitas Operasi 4.462.460.482 2.759.935.398 Operating Activities

ARUS KAS DARI AKTIVITAS INVESTASI CASH FLOWS FROM INVESTING ACTIVITIESAset tetap: Fixed Assets:

Pembelian aset tetap (1.790.173.160) (3.490.943.691) Acquisition of fixed assetsHasil penjualan aset tetap 9.725.715 11.240.046 Proceeds from sale of fixed assets

Uang muka investasi - (978.012) Advances for investmentPenambahan beban tangguhan (3.119.880) (11.976.088) Additions to deferred chargesPenambahan aset takberwujud (5.985.025) (928.415) Additions to intangible assetsPencairan investasi jangka pendek - bersih - 3.550.000 Withdrawal of short-term investments - net

Arus Kas Bersih Yang Digunakan untuk Net Cash Flows Used inAktivitas Investasi (1.789.552.350) (3.490.036.160) Investing Activities

ARUS KAS DARI AKTIVITAS PENDANAAN CASH FLOWS FROM FINANCING ACTIVITIESPenempatan kas dan setara kas Placement of restricted cash and

yang dibatasi penggunaannya (2.599.281) (14.748.589) cash equivalentsPenerimaan utang bank Proceeds from short-term

jangka pendek 2.080.919.016 4.406.688.772 borrowingsPembayaran utang bank Payment of short-term

jangka pendek (1.774.146.093) (4.032.650.239) borrowingsPenerimaan utang bank Proceeds from long-term

jangka panjang 4.273.688.874 3.068.142.677 borrowingsPembayaran utang bank Payment of long-term

jangka panjang (4.640.980.811) (2.977.025.484) borrowingsPenerimaan utang obligasi - 3.000.000.000 Proceeds from bonds payablePembayaran liabilitas sewa pembiayaan (174.708.585) (92.719.869) Payment of finance lease liabilitiesPembayaran dividen: Payment of dividends:

Pemilik entitas induk (805.678.362) (1.808.638.483) Equity holders of parent entityKepentingan non-pengendali (21.432.488) (15.632.278) Non-controlling interests

Arus Kas Bersih Yang Diperoleh dari Net Cash Flows Provided by (Digunakan untuk) Aktivitas Pendanaan (1.064.937.730) 1.533.416.507 (Used in) Financing Activities

KENAIKAN BERSIH KAS DAN NET INCREASE IN CASH AND CASH SETARA KAS 1.607.970.402 803.315.745 EQUIVALENTS

KAS DAN SETARA KAS PADA CASH AND CASH EQUIVALENTSAWAL TAHUN 3.637.760.116 2.834.444.371 AT THE BEGINNING OF THE YEAR

KAS DAN SETARA KAS CASH AND CASH EQUIVALENTSPADA AKHIR TAHUN 5.245.730.518 3.637.760.116 AT THE END OF THE YEAR

Komponen kas setara kas terdiri dari: Components of cash and cash equivalents:Kas 16.490.353 11.795.597 Cash on handBank 2.355.872.656 1.340.065.386 Cash in banksDeposito berjangka 2.873.367.509 2.285.899.133 Time deposits

5.245.730.518 3.637.760.116


- 5 -

PT SEMEN INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2018 DAN 2017 DAN UNTUK TAHUN-TAHUN YANG BERAKHIR PADA TANGGAL TERSEBUT (Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain)

PT SEMEN INDONESIA (PERSERO) Tbk AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2018 AND 2017 AND

FOR THE YEARS THEN ENDED (Expressed in thousands of Rupiah, unless otherwise stated)

- 6 -

1. UMUM 1. GENERAL

a. Pendirian dan Informasi Umum a. Establishment and General Information

PT Semen Indonesia (Persero) Tbk (“Perseroan“) didirikan dengan nama NV Pabrik Semen Gresik pada tanggal 25 Maret 1953 dengan Akta Notaris Raden Mr. Soewandi No. 41. Pada tanggal 17 April 1961, NV Pabrik Semen Gresik dijadikan Perusahaan Negara (Persero) berdasarkan Peraturan Pemerintah No. 132 tahun 1961, kemudian berubah menjadi PT Semen Gresik (Persero) berdasarkan Akta Notaris J.N. Siregar, S.H. No.81 tanggal 24 Oktober 1969.

PT Semen Indonesia (Persero) Tbk (the “Company”) was established on March 25, 1953 as NV Pabrik Semen Gresik based on Notarial Deed No. 41 of Raden Mr. Soewandi. On April 17, 1961, NV Pabrik Semen Gresik has become a state enterprise (Persero) based on Government Regulation No. 132 year 1961, and subsequently became PT Semen Gresik (Persero) based on Notarial Deed No.81 dated October 24, 1969 of J.N. Siregar, S.H.

Anggaran Dasar Perseroan telah mengalami beberapa kali perubahan dan yang terakhir antara lain mengenai tugas, wewenang dan kewajiban Direksi berdasarkan Akta No. 110 tanggal 25 Mei 2018 yang dibuat dihadapan Leolin Jayayanti, S.H., Notaris di Jakarta. Perubahan ini telah mendapat persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia.

The Company’s Articles of Association have been amended several times, the most recent was concerning, among others, the dutys, authorities and responsibility of the Bord of Director based on Notarial Deed No. 110 dated May 25, 2018 of Leolin Jayayanti, S.H., Notary in Jakarta. This amendment was approved by Ministry of Law and Human Rights of the Republic of Indonesia.

Ruang lingkup kegiatan usaha Perseroan menurut Anggaran Dasar adalah:

The scope of business activities of the Company in accordance with its Articles of Association includes:

a. Menjalankan usaha dalam bidang industri,

khususnya dalam bidang industri persemenan;

b. Menjalankan usaha dalam bidang produksi, menambang dan/atau menggali dan/atau mengolah bahan-bahan mentah tertentu menjadi bahan-bahan pokok yang diperlukan dalam industri persemenan dan/atau industri lainnya. Mengolah bahan tersebut menjadi berbagai macam semen dan/atau menjadi hasil industri lainnya serta mengolah berbagai macam semen dan/atau hasil industri tersebut menjadi barang-barang jadi yang lebih bermanfaat;

c. Menjalankan usaha dalam bidang perdagangan, pemasaran dan distribusi berbagai macam industri persemenan serta hasil barang-barang hasil produksi lainnya yang menggunakan bahan baku semen atau bahan baku lainnya baik di dalam maupun di luar negeri;

d. Menjalankan usaha dalam bidang pemberian jasa untuk industri persemenan dan/atau industri lainnya;

e. Memberikan jasa pengelolaan perusahaan dan jasa konsultasi manajemen kepada anak perusahaan;

f. Menjalankan usaha di bidang energi terbarukan maupun energi tidak terbarukan, melakukan eksplorasi, produksi, konversi energi, distribusi, dan pembangkit tenaga listrik;

a. Conducting business in the field of cement industry;

b. Conducting business in the field of production, mining and/or digging and/or processing certain raw materials into main materials required in cement and/or other industries. Processing the material into various cement and/or other industrial products and processing various cement and/or industrial products into more useful items;

c. Conducting business in the field of trading, marketing and distribution of various cement industries as well as the products of other products using cement or other raw materials both inside and outside the country;

d. Conducting business in the field of providing services for other cement and/or other industrial industries;

e. Providing corporate management services and management consulting services to subsidiaries;

f. Conducting business in the field of renewable energy and non-renewable energy, conducting exploration, production, energy conversion, distribution, and power generation;



PT SEMEN INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK PT SEMEN INDONESIA (PERSERO) Tbk AND ITS SUBSIDIARIESLAPORAN ARUS KAS KONSOLIDASIAN CONSOLIDATED STATEMENTS OF CASH FLOWSUNTUK TAHUN-TAHUN YANG BERAKHIR FOR THE YEARS ENDED31 DESEMBER 2018 DAN 2017 DECEMBER 31, 2018 AND 2017(Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain) (Expressed in thousands of Rupiah, unless otherwise stated)

2018 2017

ARUS KAS DARI AKTIVITAS OPERASI CASH FLOWS FROM OPERATING ACTIVITIESPenerimaan dari pelanggan 29.774.760.687 26.758.019.243 Receipts from customersPembayaran kepada pemasok (21.419.600.405) (19.888.389.463) Payments to suppliersPembayaran kepada karyawan (2.605.271.947) (2.924.968.388) Payments to employeesPenghasilan bunga yang diterima 181.972.833 168.672.686 Interest income receivedPembayaran pajak penghasilan (542.907.169) (1.147.544.131) Payment of income taxesPembayaran bunga dan beban keuangan (961.589.989) (510.791.869) Payment of interest and finance chargesPenerimaan lainnya - bersih 35.096.472 304.937.320 Others receipts - net

Arus Kas Bersih Yang Diperoleh dari Net Cash Flows Provided byAktivitas Operasi 4.462.460.482 2.759.935.398 Operating Activities

ARUS KAS DARI AKTIVITAS INVESTASI CASH FLOWS FROM INVESTING ACTIVITIESAset tetap: Fixed Assets:

Pembelian aset tetap (1.790.173.160) (3.490.943.691) Acquisition of fixed assetsHasil penjualan aset tetap 9.725.715 11.240.046 Proceeds from sale of fixed assets

Uang muka investasi - (978.012) Advances for investmentPenambahan beban tangguhan (3.119.880) (11.976.088) Additions to deferred chargesPenambahan aset takberwujud (5.985.025) (928.415) Additions to intangible assetsPencairan investasi jangka pendek - bersih - 3.550.000 Withdrawal of short-term investments - net

Arus Kas Bersih Yang Digunakan untuk Net Cash Flows Used inAktivitas Investasi (1.789.552.350) (3.490.036.160) Investing Activities

ARUS KAS DARI AKTIVITAS PENDANAAN CASH FLOWS FROM FINANCING ACTIVITIESPenempatan kas dan setara kas Placement of restricted cash and

yang dibatasi penggunaannya (2.599.281) (14.748.589) cash equivalentsPenerimaan utang bank Proceeds from short-term

jangka pendek 2.080.919.016 4.406.688.772 borrowingsPembayaran utang bank Payment of short-term

jangka pendek (1.774.146.093) (4.032.650.239) borrowingsPenerimaan utang bank Proceeds from long-term

jangka panjang 4.273.688.874 3.068.142.677 borrowingsPembayaran utang bank Payment of long-term

jangka panjang (4.640.980.811) (2.977.025.484) borrowingsPenerimaan utang obligasi - 3.000.000.000 Proceeds from bonds payablePembayaran liabilitas sewa pembiayaan (174.708.585) (92.719.869) Payment of finance lease liabilitiesPembayaran dividen: Payment of dividends:

Pemilik entitas induk (805.678.362) (1.808.638.483) Equity holders of parent entityKepentingan non-pengendali (21.432.488) (15.632.278) Non-controlling interests

Arus Kas Bersih Yang Diperoleh dari Net Cash Flows Provided by (Digunakan untuk) Aktivitas Pendanaan (1.064.937.730) 1.533.416.507 (Used in) Financing Activities

KENAIKAN BERSIH KAS DAN NET INCREASE IN CASH AND CASH SETARA KAS 1.607.970.402 803.315.745 EQUIVALENTS

KAS DAN SETARA KAS PADA CASH AND CASH EQUIVALENTSAWAL TAHUN 3.637.760.116 2.834.444.371 AT THE BEGINNING OF THE YEAR

KAS DAN SETARA KAS CASH AND CASH EQUIVALENTSPADA AKHIR TAHUN 5.245.730.518 3.637.760.116 AT THE END OF THE YEAR

Komponen kas setara kas terdiri dari: Components of cash and cash equivalents:Kas 16.490.353 11.795.597 Cash on handBank 2.355.872.656 1.340.065.386 Cash in banksDeposito berjangka 2.873.367.509 2.285.899.133 Time deposits

5.245.730.518 3.637.760.116


- 5 -

PT SEMEN INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2018 DAN 2017 DAN UNTUK TAHUN-TAHUN YANG BERAKHIR PADA TANGGAL TERSEBUT (Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2018 AND 2017 AND

FOR THE YEARS THEN ENDED (Expressed in thousands of Rupiah, unless otherwise stated)

- 6 -

1. UMUM 1. GENERAL

a. Pendirian dan Informasi Umum a. Establishment and General Information

PT Semen Indonesia (Persero) Tbk (“Perseroan“) didirikan dengan nama NV Pabrik Semen Gresik pada tanggal 25 Maret 1953 dengan Akta Notaris Raden Mr. Soewandi No. 41. Pada tanggal 17 April 1961, NV Pabrik Semen Gresik dijadikan Perusahaan Negara (Persero) berdasarkan Peraturan Pemerintah No. 132 tahun 1961, kemudian berubah menjadi PT Semen Gresik (Persero) berdasarkan Akta Notaris J.N. Siregar, S.H. No.81 tanggal 24 Oktober 1969.

PT Semen Indonesia (Persero) Tbk (the “Company”) was established on March 25, 1953 as NV Pabrik Semen Gresik based on Notarial Deed No. 41 of Raden Mr. Soewandi. On April 17, 1961, NV Pabrik Semen Gresik has become a state enterprise (Persero) based on Government Regulation No. 132 year 1961, and subsequently became PT Semen Gresik (Persero) based on Notarial Deed No.81 dated October 24, 1969 of J.N. Siregar, S.H.

Anggaran Dasar Perseroan telah mengalami beberapa kali perubahan dan yang terakhir antara lain mengenai tugas, wewenang dan kewajiban Direksi berdasarkan Akta No. 110 tanggal 25 Mei 2018 yang dibuat dihadapan Leolin Jayayanti, S.H., Notaris di Jakarta. Perubahan ini telah mendapat persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia.

The Company’s Articles of Association have been amended several times, the most recent was concerning, among others, the dutys, authorities and responsibility of the Bord of Director based on Notarial Deed No. 110 dated May 25, 2018 of Leolin Jayayanti, S.H., Notary in Jakarta. This amendment was approved by Ministry of Law and Human Rights of the Republic of Indonesia.

Ruang lingkup kegiatan usaha Perseroan menurut Anggaran Dasar adalah:

The scope of business activities of the Company in accordance with its Articles of Association includes:

a. Menjalankan usaha dalam bidang industri,

khususnya dalam bidang industri persemenan;

b. Menjalankan usaha dalam bidang produksi, menambang dan/atau menggali dan/atau mengolah bahan-bahan mentah tertentu menjadi bahan-bahan pokok yang diperlukan dalam industri persemenan dan/atau industri lainnya. Mengolah bahan tersebut menjadi berbagai macam semen dan/atau menjadi hasil industri lainnya serta mengolah berbagai macam semen dan/atau hasil industri tersebut menjadi barang-barang jadi yang lebih bermanfaat;

c. Menjalankan usaha dalam bidang perdagangan, pemasaran dan distribusi berbagai macam industri persemenan serta hasil barang-barang hasil produksi lainnya yang menggunakan bahan baku semen atau bahan baku lainnya baik di dalam maupun di luar negeri;

d. Menjalankan usaha dalam bidang pemberian jasa untuk industri persemenan dan/atau industri lainnya;

e. Memberikan jasa pengelolaan perusahaan dan jasa konsultasi manajemen kepada anak perusahaan;

f. Menjalankan usaha di bidang energi terbarukan maupun energi tidak terbarukan, melakukan eksplorasi, produksi, konversi energi, distribusi, dan pembangkit tenaga listrik;

a. Conducting business in the field of cement industry;

b. Conducting business in the field of production, mining and/or digging and/or processing certain raw materials into main materials required in cement and/or other industries. Processing the material into various cement and/or other industrial products and processing various cement and/or industrial products into more useful items;

c. Conducting business in the field of trading, marketing and distribution of various cement industries as well as the products of other products using cement or other raw materials both inside and outside the country;

d. Conducting business in the field of providing services for other cement and/or other industrial industries;

e. Providing corporate management services and management consulting services to subsidiaries;

f. Conducting business in the field of renewable energy and non-renewable energy, conducting exploration, production, energy conversion, distribution, and power generation;



PT SEMEN INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2018 DAN 2017 DAN UNTUK TAHUN-TAHUN YANG BERAKHIR PADA TANGGAL TERSEBUT (Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain) (Lanjutan)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2018 AND 2017 AND FOR THE YEARS

THEN ENDED (Expressed in thousands of Rupiah, unless otherwise stated)

(Continued)

- 7 -

g. Menjalankan pengelolaan limbah B3 (Limbah Bahan Berbahaya dan Beracun) berupa rangkaian kegiatan dan/atau kegiatan-kegiatan yang mencakup reduksi, penyimpanan, pengumpulan, pengangkutan, pemanfaatan, pengolahan, dan/atau penimbunan limbah B3, termasuk penimbunan hasil pengolahan tersebut.

g. Managing of B3 waste (Hazardous and Toxic Waste) in the form of activities including reduction, storage, collection, transportation, utilization, processing, and/or stockpiling of B3 waste, including the stockpiling of the result of the waste.

Lokasi pabrik semen Perseroan dan Entitas Anak (“Grup“) berada di Gresik dan Tuban di Jawa Timur, Rembang di Jawa Tengah, Indarung di Sumatera Barat, Pangkep di Sulawesi Selatan dan Quang Ninh di Vietnam. Hasil produksi Grup dipasarkan di dalam dan di luar negeri.

The Company and its subsidiaries’ (“the Group”) cement plants are located in Gresik and Tuban in East Java, Rembang in Central Java, Indarung in West Sumatera, Pangkep in South Sulawesi and Quang Ninh in Vietnam. The Group's products are marketed domestically and internationally.

Perseroan berkedudukan dan berkantor pusat di Jl. Veteran, Gresik 61122, Jawa Timur. Perseroan memulai kegiatan komersialnya pada tanggal 7 Agustus 1957.

The Company’s head office is located at Jl. Veteran, Gresik 61122, East Java. The Company commenced commercial operations on August 7, 1957.

Pemegang saham pengendali Perseroan adalah Pemerintah Republik Indonesia.

The Company's controlling shareholder is the Government of the Republic of Indonesia.

Susunan Dewan Komisaris dan Direksi Perseroan, Komite Audit, Kepala Internal Audit dan Sekretaris Perusahaan pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

The members of the Company’s Board of Commissioners and Directors, member of Audit Committee, Head of Internal Audit, and Corporate Secretary as at December 31, 2018 and 2017 were as follows:

2018 2017

Dewan Komisaris Board of CommissionersKomisaris Utama Sutiyoso Sutiyoso President CommissionerKomisaris Hendrika Nora O. Sinaga Hambra CommissionerKomisaris Astera Primanto Bhakti Astrea Primanto Bhakti CommissionerKomisaris Sony Subrata Sony Subrata CommissionerKomisaris Wahyu Hidayat Wahyu Hidayat CommissionerKomisaris Independen M. Choliq Djamari Chaniago Independent CommissionerKomisaris Independen Nasaruddin Umar Nasaruddin Umar Independent Commissioner

Dewan Direksi Board of DirectorsDirektur Utama Hendi Prio Santoso Hendi Prio Santoso President DirectorDirektur Fadjar Judisiaw an Fadjar Judisiaw an DirectorDirektur Doddy Sulasmono Diniaw an Doddy Sulasmono Diniaw an DirectorDirektur Adi Munandir Ahyanizzaman DirectorDirektur Tri Abdisatrijo Tri Abdisatrijo DirectorDirektur Agung Yunanto Agung Yunanto DirectorDirektur Benny Wendry Benny Wendry Director

Komite Audit Audit CommitteeKetua M. Choliq Nasaruddin Umar ChairmanAnggota Astera Primanto Bhakti Astrea Primanto Bhakti MemberAnggota M. Z. Abidin Sahat Pardede MemberAnggota Elok Tresnaningsih Elok Tresnaningsih Member

Kepala Internal Audit Tubagus M. Dharury Tubagus M. Dharury Head of Internal AuditSekretaris Perusahaan Agung Wiharto Agung Wiharto Corporate Secretary







(Continued)

- 7 -

g. Menjalankan pengelolaan limbah B3 (Limbah Bahan Berbahaya dan Beracun) berupa rangkaian kegiatan dan/atau kegiatan-kegiatan yang mencakup reduksi, penyimpanan, pengumpulan, pengangkutan, pemanfaatan, pengolahan, dan/atau penimbunan limbah B3, termasuk penimbunan hasil pengolahan tersebut.

g. Managing of B3 waste (Hazardous and Toxic Waste) in the form of activities including reduction, storage, collection, transportation, utilization, processing, and/or stockpiling of B3 waste, including the stockpiling of the result of the waste.

Lokasi pabrik semen Perseroan dan Entitas Anak (“Grup“) berada di Gresik dan Tuban di Jawa Timur, Rembang di Jawa Tengah, Indarung di Sumatera Barat, Pangkep di Sulawesi Selatan dan Quang Ninh di Vietnam. Hasil produksi Grup dipasarkan di dalam dan di luar negeri.

The Company and its subsidiaries’ (“the Group”) cement plants are located in Gresik and Tuban in East Java, Rembang in Central Java, Indarung in West Sumatera, Pangkep in South Sulawesi and Quang Ninh in Vietnam. The Group's products are marketed domestically and internationally.

Perseroan berkedudukan dan berkantor pusat di Jl. Veteran, Gresik 61122, Jawa Timur. Perseroan memulai kegiatan komersialnya pada tanggal 7 Agustus 1957.

The Company’s head office is located at Jl. Veteran, Gresik 61122, East Java. The Company commenced commercial operations on August 7, 1957.

Pemegang saham pengendali Perseroan adalah Pemerintah Republik Indonesia.

The Company's controlling shareholder is the Government of the Republic of Indonesia.

Susunan Dewan Komisaris dan Direksi Perseroan, Komite Audit, Kepala Internal Audit dan Sekretaris Perusahaan pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

The members of the Company’s Board of Commissioners and Directors, member of Audit Committee, Head of Internal Audit, and Corporate Secretary as at December 31, 2018 and 2017 were as follows:

2018 2017

Dewan Komisaris Board of CommissionersKomisaris Utama Sutiyoso Sutiyoso President CommissionerKomisaris Hendrika Nora O. Sinaga Hambra CommissionerKomisaris Astera Primanto Bhakti Astrea Primanto Bhakti CommissionerKomisaris Sony Subrata Sony Subrata CommissionerKomisaris Wahyu Hidayat Wahyu Hidayat CommissionerKomisaris Independen M. Choliq Djamari Chaniago Independent CommissionerKomisaris Independen Nasaruddin Umar Nasaruddin Umar Independent Commissioner

Dewan Direksi Board of DirectorsDirektur Utama Hendi Prio Santoso Hendi Prio Santoso President DirectorDirektur Fadjar Judisiaw an Fadjar Judisiaw an DirectorDirektur Doddy Sulasmono Diniaw an Doddy Sulasmono Diniaw an DirectorDirektur Adi Munandir Ahyanizzaman DirectorDirektur Tri Abdisatrijo Tri Abdisatrijo DirectorDirektur Agung Yunanto Agung Yunanto DirectorDirektur Benny Wendry Benny Wendry Director

Komite Audit Audit CommitteeKetua M. Choliq Nasaruddin Umar ChairmanAnggota Astera Primanto Bhakti Astrea Primanto Bhakti MemberAnggota M. Z. Abidin Sahat Pardede MemberAnggota Elok Tresnaningsih Elok Tresnaningsih Member

Kepala Internal Audit Tubagus M. Dharury Tubagus M. Dharury Head of Internal AuditSekretaris Perusahaan Agung Wiharto Agung Wiharto Corporate Secretary





(Continued)

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Personil manajemen kunci meliputi Dewan Komisaris dan Direksi Perseroan. Kompensasi imbalan kerja jangka pendek yang dibayarkan kepada personil manajemen kunci Perseroan untuk tahun-tahun yang berakhir pada 31 Desember 2018 sebesar Rp76.997.111 (31 Desember 2017: Rp99.372.379). Tidak ada kompensasi sehubungan dengan imbalan pascakerja, imbalan kerja jangka panjang lainnya, pesangon pemutusan kontrak kerja dan pembayaran berbasis saham.

Key management personnel are the Company’s Boards of Commissioners and Directors. Short-term compensation paid to the key management personnel of the Company for the years ended December 31, 2018 amounted to Rp76,997,111 (December 31, 2017: Rp99,372,379). There is no compensation related to post-employment benefits, other long-term benefits, termination benefits, and share-based payment.

Pada tanggal 31 Desember 2018 dan 2017, Grup mempunyai karyawan masing-masing 9.536 dan 9.972.

As of December 31, 2018, and 2017, the Group had 9,536 and 9,972 employees, respectively.

b. Entitas Anak yang Dikonsolidasi b. Consolidated Subsidiaries

Kepemilikan saham Perseroan pada entitas anak yang dikonsolidasi adalah sebagai berikut:

The Company’s ownership interests in consolidated subsidiaries are as follows:

Dimulainya

kegiatankomersial/

Jenis usaha/ Start of

Entitas anak/ Domisili/ Nature of commercialSubsidiaries Domicile business 2018 2017 activities 2018 2017

PT Semen Padang (“SP”) Indarung, Produsen semen/ 99,99% 99,99% 1913 9.992.063.002 10.140.568.660 dan entitas anak/ Sumatera Barat/ Cement manufacturingand its subsidiaries West Sumatera

PT Sepatim Batamtama Batam, Pengantongan semen 97,00% 97,00% 1994 35.385.583 37.404.714 (“SB”) 97% saham Kepulauan Riau dan distribusi/Cementdimiliki SP/ 97% shares packing and distributionowned by SP

PT Bima Sepaja Abadi Tanjung Priok, Pengantongan semen 80,00% 80,00% 1996 182.346.422 169.034.186 (”BSA”) 80% saham Jakarta dan distribusi/Cementdimiliki SP/ 80% shares packing and distributionowned by SP

PT Semen Tonasa (“ST”) Pangkep, Produsen semen/ 99,99% 99,99% 1968 8.742.767.287 8.793.931.493 Sulawesi Selatan/ Cement manufacturingSouth Sulawesi

PT Semen Gresik (“SG”) Tuban, Produksi semen/ 99,96% 99,96% 2017 5.622.947.595 5.996.203.986 Jawa Timur/ Cement manufacturingEast Java

PT United Tractors Semen Tuban, Penambangan 55,00% 55,00% 1992 617.601.111 617.021.687 Gresik (“UTSG”) Jawa Timur/ batu kapur dan tanah liat/

East Java Limestone and clay mining

PT Industri Kemasan Tuban, Produsen kantong semen/ 60,00% 60,00% 1994 425.887.824 313.811.322 Semen Gresik (“IKSG”) Jawa Timur/ Cement bag manufacturing

East Java

PT Kawasan Industri Gresik, Pengembangan kawasan 65,00% 65,00% 1991 368.285.801 356.035.163 Gresik (“KIG”) Jawa Timur/ industri/Industrial real

East Java estate

PT Sinergi Mitra Investama (”SMI”) Gresik, Persewaan bangunan/ 97,00% 97,00% 2012 46.253.266 133.167.309 dahulu bernama PT SGG Energi Jawa Timur/ Building rentalPrima ("SEP")/previously named East JavaPT SGG Energi Prima

PT Semen Indonesia Beton ("SIB") Jakarta Selatan/ Produksi beton siap pakai/ 99,99% 99,99% 2012 2.225.721.917 1.938.005.787 dan entitas anak/ and its subsidiary South Jakarta Production ready mix concrete

DKI Jakarta

PT Varia Usaha Beton ("VUB")*) Sidoarjo, Produksi beton siap pakai/ 63,15% 63,15% 1991 1.022.120.660 867.464.579 50,90% saham dimiliki SIB dan Jawa Timur/ Ready mix concreate production49,10% saham dimiliki SIL East Java50,90% shares owned by SIB and49,10% shares owned by SIL

*) Kepemilikan tidak langsung/ indirect ownership

Persentase kepemilikan/

Percentage of ownershipJumlah aset sebelum eliminasi/

Total assets before eliminations







(Continued)

- 9 -

Dimulainyakegiatan

komersial/



PT Krakatau Semen Cilegon, Produksi bahan baku semen/ 50,00% 50,00% 2014 401.279.668 396.430.222 Indonesia ("KSI") Jawa Barat/ Cement material manufacturing

West Java

PT Sinergi Informatika Jakarta Selatan/ Sistem Informasi/ 100,00% 100,00% 2014 61.405.915 123.530.085 Semen Indonesia ("SISI") South Jakarta Information system

DKI Jakarta

PT Semen Indonesia Aceh Produksi semen/ 52,28% 52,28% - 605.916.012 596.935.979 Aceh ("SIA") Cement manufacturing

PT Semen Indonesia Jakarta Selatan/ Perdagangan, jasa pelayanan, 100,00% 100,00% 2016 468.413.315 244.138.438 International ("SII") South Jakarta manajemen logistik dan investasi /

DKI JakartaTrade, service logistic management, and investment

SI International Trading Singapura/ Singapore Perdagangan umum/ 100,00% 100,00% 2017 84.831.857 81.249.557 PTE. LTD ("SIIT")* General trading 100,00% saham dimiliki SII/ 100.00% shares owned by SII

PT Semen Indonesia Industri Jakarta Selatan/ Bahan bangunan/ 100,00% 100,00% - 1.000.000 1.000.000 Bangunan ("SIIB") South Jakarta Building material

DKI JakartaThang Long Cement Joint Hanoi, Produksi semen/ 70,00% 70,00% 2008 2.480.513.733 2.587.652.201

Stock Company (”TLCC”) Vietnam Cement manufacturingdan entitas anak/ and its subsidiaries

Thang Long Cement Joint Hanoi, Produksi semen/ 69,57% 69,57% - 42.577.178 40.362.082 Stock Company 2 Vietnam Cement manufacturing(”TLCC2”) 99,08% sahamdimiliki TLCC/99.08% sharesowned by TLCC

An Phu Cement Joint Hanoi, Produksi semen/ 69,93% 69,93% - 57.922.278 53.149.086 Stock Company (”APCC”) Vietnam Cement manufacturing 99,90% saham dimiliki TLCC/99.90% shares owned by TLCC

PT Semen Kupang Kupang Produksi semen/ 99,48% 99,48% - 192.417.790 195.274.427 Indonesia ("SKI") NTT Cement manufacturing

PT Semen Indonesia Logistik ("SIL") Gresik, Perdagangan, transportasi, jasa 73,65% 73,65% 1974 2.434.028.459 2.326.876.193 (d/h/formerly PT Varia Usaha) Jawa Timur/ bongkar muat dan konstruksi/dan entitas anak /and its subsidiaries East Java Trade, transportation,

and construction

PT Semen Indonesia Distributor ("SID") *) Gresik, Perdagangan/Trading 73,28% 73,28% 1989 971.785.201 336.214.690 (d/h/formerly PT Waru Abadi) Jawa Timur/ 99.50% saham dimiliki SIL/ East Java 99,50% shares owned by SIL

PT Varia Usaha Fabrikasi ("VUFA") *) Gresik Jawa Timur/ Fabrikasi/ Fabrication 48,40% 48,40% 2015 16.997.562 12.239.784 (d/h/formerly PT Megah Sejahtera East Java Bersama (MSB) 52,00% saham dimiliki SID 5,71% saham dimiliki VUBA 5,71% saham dimiliki VUDS dan 2,29% saham dimiliki VULS semuanya entitas anak SIL/ 52,00% shares owned by SID 5,71% shares owned VUBA 5,71% shares owned by VUDS and 2,29% shares owned by VULS all subsidiaries of SIL

PT Varia Usaha Bahari ("VUBA") *) Gresik, Jasa Bongkar Muat/ 73,65% 73,65% 1992 99.843.156 99.640.034 64,00% saham dimiliki SIL dan Jawa Timur/ Stevedoring Services 36,00% saham dimiliki SID East Java entitas anak SIL/ 64,00% shares owned by SIL and 36,00% shares owned by SID the subsidiary of SIL

PT Varia Usaha Dharma Segara ("VUDS") *) Gresik, Jasa Pengurusan Transportasi/ 73,65% 73,65% 1995 63.343.967 61.915.717 48,00% saham dimiliki SIL dan Jawa Timur/ Freight Forwarding 52,00% saham dimiliki SID East Java entitas anak SIL/ 48,00% shares owned by SIL and 52,00% shares owned by SID the subsidiary of SIL

PT Varia Usaha Lintas Segara ("VULS") *) Gresik, Jasa Transportasi Laut/ 73,65% 73,65% 1997 136.549.235 136.718.753 60,00% saham dimiliki SIL dan Jawa Timur/ Sea Freight 40,00% saham dimiliki VUBA East Java entitas anak SIL/ 60,00% shares owned by SIL and 40,00% shares owned by VUBA the subsidiary of SIL

*) Kepemilikan tidak langsung/ Indirect ownership










(Continued)

- 9 -

Dimulainyakegiatan

komersial/




West Java


DKI Jakarta






DKI JakartaThang Long Cement Joint Hanoi, Produksi semen/ 70,00% 70,00% 2008 2.480.513.733 2.587.652.201

Stock Company (”TLCC”) Vietnam Cement manufacturingdan entitas anak/ and its subsidiaries




PT Semen Indonesia Logistik ("SIL") Gresik, Perdagangan, transportasi, jasa 73,65% 73,65% 1974 2.434.028.459 2.326.876.193 (d/h/formerly PT Varia Usaha) Jawa Timur/ bongkar muat dan konstruksi/dan entitas anak /and its subsidiaries East Java Trade, transportation,

and construction


PT Varia Usaha Fabrikasi ("VUFA") *) Gresik Jawa Timur/ Fabrikasi/ Fabrication 48,40% 48,40% 2015 16.997.562 12.239.784 (d/h/formerly PT Megah Sejahtera East Java Bersama (MSB) 52,00% saham dimiliki SID 5,71% saham dimiliki VUBA 5,71% saham dimiliki VUDS dan 2,29% saham dimiliki VULS semuanya entitas anak SIL/ 52,00% shares owned by SID 5,71% shares owned VUBA 5,71% shares owned by VUDS and 2,29% shares owned by VULS all subsidiaries of SIL


PT Varia Usaha Dharma Segara ("VUDS") *) Gresik, Jasa Pengurusan Transportasi/ 73,65% 73,65% 1995 63.343.967 61.915.717 48,00% saham dimiliki SIL dan Jawa Timur/ Freight Forwarding 52,00% saham dimiliki SID East Java entitas anak SIL/ 48,00% shares owned by SIL and 52,00% shares owned by SID the subsidiary of SIL

PT Varia Usaha Lintas Segara ("VULS") *) Gresik, Jasa Transportasi Laut/ 73,65% 73,65% 1997 136.549.235 136.718.753 60,00% saham dimiliki SIL dan Jawa Timur/ Sea Freight 40,00% saham dimiliki VUBA East Java entitas anak SIL/ 60,00% shares owned by SIL and 40,00% shares owned by VUBA the subsidiary of SIL

*) Kepemilikan tidak langsung/ Indirect ownership








(Continued)

- 10 -

Pada tanggal 23 Juli 2018, berdasarkan Akta Notaris No. 03, Notaris Lolitawati, S.H,M.Kn, para pemegang saham SMI menyetujui perubahan nama SMI semula PT SGG Energi Prima menjadi PT Sinergi Mitra Investama (SMI). Akta ini disetujui oleh Menteri Hukum dan Hak Asasi Manusia Republik dalam surat keputusan No. AHU-0016047.AH.01.02 tahun 2018 tanggal 7 Agustus 2018

On July 23, 2018, based on Notarial Deed No. 03, Notary of Lolitawati, S.H,M.Kn, the shareholders of the SEP agreed to change its name from PT SGG Energi Prima to become PT Sinergi Mitra Investama (SMI). The Deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia in his decision letter No. AHU-0016047.AH.01.02 tahun 2018, dated August 7, 2018.

Pada tanggal 17 Maret 2016, berdasarkan Akta Notaris No. 40, Notaris Leolin Jayayanti, S.H., Perseroan dan PT Samana Citra Agung (SCA) mendirikan PT Semen Indonesia Aceh (SIA). Akta ini disahkan oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam surat Keputusan No. AHU-0014511.AH.01.01.tahun 2016, tanggal 18 Maret 2016. Pada tanggal 19 Desember 2016, para pemegang saham menyetujui penambahan modal saham ditempatkan di SIA menjadi 454.500 saham dengan nilai per lembar saham Rp1.000.000, dengan kepemilikan Perseroan adalah 173.990 saham atau sebanyak 38,28%. Berdasarkan penilaian dari manajemen, disimpulkan bahwa Perseroan memiliki hak suara yang cukup dominan untuk mengarahkan kegiatan yang relevan dari SIA oleh karena itu Perseroan memiliki pengendalian atas SIA. Pada tanggal 4 April 2017, Perseroan melakukan penambahan modal saham di SIA sebesar Rp91.400.000 dan membeli bagian kepemilikan SCA sebesar Rp20.000.000. Hal ini meningkatkan jumlah kepemilikan Perseroan yang semula 38,28% menjadi 52,28%. Pada 31 Desember 2018, SIA belum beroperasi secara komersial.

On March 17, 2016, based on Notarial Deed No. 40 by Notary of Leolin Jayayanti, S.H., the Company and PT Samana Citra Agung (SCA) established, PT Semen Indonesia Aceh (SIA). The deed was approved by Minister of Law and Human Rights of the Republic of Indonesia in his Decision Letter No. AHU-0014511.AH.01.01.tahun 2016, dated March 18, 2016. On December 19, 2016, the shareholders agreed to increase its investment in SIA to become 454,500 shares with par value per share of Rp1,000,000, with the ownership of the Company at 173,990 or by 38.28%. Based on management’s assessment, it was concluded that the Company has a sufficient dominant voting interest to direct the relevant activities of SIA, thus the Company has control on SIA. On April 4, 2017, the Company acquired additional share capital in SIA amounting to Rp91,400,000 and purchased SCA shares in SIA amounting to Rp20,000,000. This has resulted to increase in the Company's voting interest from 38.28% to 52.28%. As of December 31, 2018, SIA has not yet started its commercial operations.

PT Semen Kupang Indonesia (SKI) didirikan berdasarkan Akta Notaris No. 170 tanggal 28 Januari 2016, Notaris Verawati Ivoney Tefa, S.H., M.Kn., Akta ini disetujui oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam Surat Keputusan No. AHU-0005184.AH.01.01.tahun 2016, tanggal 28 Januari 2016. Pada 31 Desember 2018, SKI belum beroperasi secara komersial.

PT Semen Kupang Indonesia (SKI) was established based on Notarial Deed No. 170 dated January 28, 2016 by Notary of Verawati Ivoney Tefa, S.H., M.Kn., The deed was approved by Minister of Law and Human Rights of the Republic of Indonesia in his Decision Letter No. AHU-0005184.AH.01.01.tahun 2016, dated January 28, 2016. As of December 31, 2018, SKI has not yet started its commercial operation.

Pada tanggal 7 Juli 2017, berdasarkan Akta Notaris No. 08, Notaris Leolin Jayayanti, S.H., M.Kn., Perseroan mendirikan PT Semen Indonesia Industri Bangunan (SIIB). Akta ini disahkan oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam surat keputusan No. AHU-0029652.AH.01.01.tahun 2017, tanggal 12 Juli 2017.

On July 7, 2017, based on Notarial Deed No. 08, Notary of Leolin Jayayanti, S.H., M.Kn., the Company established PT Semen Indonesia Industri Bangunan (SIIB). The deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia in his Decision Letter No. AHU-0029652.AH.01.01.tahun 2017, dated July 12, 2017.







(Continued)

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c. Penawaran Umum Efek Perseroan c. Public Offering of Shares of the Company

Perseroan mendapat persetujuan melalui Keputusan Menteri Keuangan No. 859/KMK.01/ 1987 tanggal 23 Desember 1987, juncto Keputusan Menteri Keuangan No. 1548/ KMK.013/1990 tanggal 4 Desember 1990 untuk menawarkan saham kepada masyarakat. Berdasarkan izin Menteri Keuangan cq Ketua Badan Pengawas Pasar Modal dan Lembaga Keuangan (“BAPEPAM-LK”) No. S-622.PM/1991 tanggal 17 Mei 1991 Perseroan melakukan Penawaran Umum Perdana kepada masyarakat atas 40.000.000 saham dengan nominal per saham Rp1.000 (angka penuh) dengan harga perdana per saham sebesar Rp7.000 (angka penuh). Pada tanggal 4 Juli 1991, BAPEPAM-LK menyetujui pencatatan saham sebanyak 70.000.000 saham di Bursa Efek Jakarta dan Bursa Efek Surabaya (sekarang bergabung menjadi Bursa Efek Indonesia).

The Company obtained the approval of the Minister of Finance in his decision No. 859/KMK.01/1987 dated December 23, 1987, as amended by Decree No. 1548/KMK.013/1990 dated December 4, 1990, to offer its shares to the public. Based on the approval of the Minister of Finance cq Head of Capital Market and Financial Institutions Supervisory Agency ("BAPEPAM-LK") No. S-622.PM/1991 dated May 17, 1991, the Company conducted an Initial Public Offering of 40,000,000 shares with nominal amount of Rp1,000 (full amount) and offering price of Rp7,000 (full amount) per share. On July 4, 1991, BAPEPAM-LK approved the listing of 70,000,000 of the Company’s shares on the Jakarta Stock Exchange and Surabaya Stock Exchange (currently merged as the Indonesia Stock Exchange).

Pada tanggal 30 Mei 1995, Bursa Efek Indonesia menyetujui pencatatan tambahan 78.288.000 saham Perseroan. Pada tanggal 20 Juli 1995, BAPEPAM-LK menyetujui Penawaran Umum Terbatas sejumlah 444.864.000 saham biasa dengan dasar tiga saham baru untuk setiap saham yang beredar.

On May 30, 1995, the Indonesia Stock Exchange approved the additional listing of 78,288,000 of the Company’s shares. On July 20, 1995, BAPEPAM-LK agreed to a rights issue of 444,864,000 common shares on a three to one basis.

Pada tanggal 7 Agustus 2007, Perseroan telah melakukan pemecahan saham dengan perbandingan 1:10. Jumlah lembar saham Perseroan yang beredar setelah pemecahan saham tersebut menjadi sebesar 5.931.520.000 lembar saham dengan harga pasar saham awal setelah pelaksanaan pemecahan saham tersebut adalah Rp5.000 (Rupiah penuh).

On August 7, 2007 the Company executed a stock split with a ratio of 1:10. Total issued shares after the stock split became 5,931,520,000 shares with an opening share price after exercising the stock split of Rp5,000 (full Rupiah amount).

Pada tanggal 31 Desember 2018, seluruh saham Perseroan atau sejumlah 5.931.520.000 lembar saham telah dicatatkan pada Bursa Efek Indonesia.

As of December 31, 2018, all of the Company’s 5,931,520,000 outstanding shares are listed on the Indonesia Stock Exchange.

2. PENERAPAN PERNYATAAN STANDAR AKUNTANSI KEUANGAN (“PSAK”) BARU DAN REVISI PSAK SERTA INTERPRETASI STÁNDAR AKUNTANSI KEUANGAN (“ISAK”)

2. ADOPTION OF NEW AND REVISED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS (“PSAK”) AND INTERPRETATION OF FINANCIAL ACCOUNTING STANDARDS (“ISAK”)

a. Standar dan amendemen/penyesuaian

standar yang berlaku efektif pada tahun berjalan Dalam tahun berjalan, Grup telah menerapkan standar dan sejumlah amendemen/penyesuaian PSAK yang relevan dengan operasinya dan efektif untuk periode akuntansi yang dimulai pada atau setelah 1 Januari 2018.

a. Standards and amendments/ improvements to standards effective in the current year In the current year, the Group has applied standards and a number of amendments/improvements to PSAK that are relevant to its operations and effective for accounting period beginning on or after January 1, 2018.







(Continued)

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c. Penawaran Umum Efek Perseroan c. Public Offering of Shares of the Company

Perseroan mendapat persetujuan melalui Keputusan Menteri Keuangan No. 859/KMK.01/ 1987 tanggal 23 Desember 1987, juncto Keputusan Menteri Keuangan No. 1548/ KMK.013/1990 tanggal 4 Desember 1990 untuk menawarkan saham kepada masyarakat. Berdasarkan izin Menteri Keuangan cq Ketua Badan Pengawas Pasar Modal dan Lembaga Keuangan (“BAPEPAM-LK”) No. S-622.PM/1991 tanggal 17 Mei 1991 Perseroan melakukan Penawaran Umum Perdana kepada masyarakat atas 40.000.000 saham dengan nominal per saham Rp1.000 (angka penuh) dengan harga perdana per saham sebesar Rp7.000 (angka penuh). Pada tanggal 4 Juli 1991, BAPEPAM-LK menyetujui pencatatan saham sebanyak 70.000.000 saham di Bursa Efek Jakarta dan Bursa Efek Surabaya (sekarang bergabung menjadi Bursa Efek Indonesia).

The Company obtained the approval of the Minister of Finance in his decision No. 859/KMK.01/1987 dated December 23, 1987, as amended by Decree No. 1548/KMK.013/1990 dated December 4, 1990, to offer its shares to the public. Based on the approval of the Minister of Finance cq Head of Capital Market and Financial Institutions Supervisory Agency ("BAPEPAM-LK") No. S-622.PM/1991 dated May 17, 1991, the Company conducted an Initial Public Offering of 40,000,000 shares with nominal amount of Rp1,000 (full amount) and offering price of Rp7,000 (full amount) per share. On July 4, 1991, BAPEPAM-LK approved the listing of 70,000,000 of the Company’s shares on the Jakarta Stock Exchange and Surabaya Stock Exchange (currently merged as the Indonesia Stock Exchange).

Pada tanggal 30 Mei 1995, Bursa Efek Indonesia menyetujui pencatatan tambahan 78.288.000 saham Perseroan. Pada tanggal 20 Juli 1995, BAPEPAM-LK menyetujui Penawaran Umum Terbatas sejumlah 444.864.000 saham biasa dengan dasar tiga saham baru untuk setiap saham yang beredar.

On May 30, 1995, the Indonesia Stock Exchange approved the additional listing of 78,288,000 of the Company’s shares. On July 20, 1995, BAPEPAM-LK agreed to a rights issue of 444,864,000 common shares on a three to one basis.

Pada tanggal 7 Agustus 2007, Perseroan telah melakukan pemecahan saham dengan perbandingan 1:10. Jumlah lembar saham Perseroan yang beredar setelah pemecahan saham tersebut menjadi sebesar 5.931.520.000 lembar saham dengan harga pasar saham awal setelah pelaksanaan pemecahan saham tersebut adalah Rp5.000 (Rupiah penuh).

On August 7, 2007 the Company executed a stock split with a ratio of 1:10. Total issued shares after the stock split became 5,931,520,000 shares with an opening share price after exercising the stock split of Rp5,000 (full Rupiah amount).

Pada tanggal 31 Desember 2018, seluruh saham Perseroan atau sejumlah 5.931.520.000 lembar saham telah dicatatkan pada Bursa Efek Indonesia.

As of December 31, 2018, all of the Company’s 5,931,520,000 outstanding shares are listed on the Indonesia Stock Exchange.

2. PENERAPAN PERNYATAAN STANDAR AKUNTANSI KEUANGAN (“PSAK”) BARU DAN REVISI PSAK SERTA INTERPRETASI STÁNDAR AKUNTANSI KEUANGAN (“ISAK”)

2. ADOPTION OF NEW AND REVISED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS (“PSAK”) AND INTERPRETATION OF FINANCIAL ACCOUNTING STANDARDS (“ISAK”)

a. Standar dan amendemen/penyesuaian

standar yang berlaku efektif pada tahun berjalan Dalam tahun berjalan, Grup telah menerapkan standar dan sejumlah amendemen/penyesuaian PSAK yang relevan dengan operasinya dan efektif untuk periode akuntansi yang dimulai pada atau setelah 1 Januari 2018.

a. Standards and amendments/ improvements to standards effective in the current year In the current year, the Group has applied standards and a number of amendments/improvements to PSAK that are relevant to its operations and effective for accounting period beginning on or after January 1, 2018.





(Continued)

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PSAK 2 (amendemen), Laporan Arus Kas tentang Prakarsa Pengungkapan

PSAK 2 (amendment), Statement of Cash Flow about Disclosure Initiative

Amendemen ini mensyaratkan entitas untuk menyediakan pengungkapan yang memungkinkan pengguna laporan keuangan untuk mengevaluasi perubahan pada liabilitas yang timbul dari aktivitas pendanaan, termasuk perubahan yang timbul dari arus kas maupun perubahan nonkas. Amendemen tersebut tidak menentukan format spesifik untuk mengungkapkan aktivitas pendanaan; namun, suatu entitas dapat memenuhi tujuan pengungkapan dengan menyediakan rekonsiliasi antara saldo awal dan akhir dalam laporan posisi keuangan untuk liabilitas yang timbul dari aktivitas pendanaan.

The amendments require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. The amendments do not prescribe a specific format to disclose financing activities; however, an entity may fulfill the disclosure objective by providing a reconciliation between the opening and closing balances in the statement of financial position for liabilities arising from financing activities.

Liabilitas Grup yang timbul dari aktivitas pendanaan terdiri dari utang bank (Catatan 20), liabilitas sewa pembiayaan (Catatan 22) dan obligasi (Catatan 21). Rekonsiliasi antara saldo awal dan akhir item-item ini diungkapkan dalam Catatan 47. Sesuai dengan ketentuan transisi dari amendemen, Grup tidak mengungkapkan informasi komparatif untuk periode sebelumnya. Selain pengungkapan tambahan dalam Catatan 47, penerapan amendemen ini tidak berdampak pada laporan keuangan konsolidasian Grup.

The Group’s liabilities arising from financing activities consist of bank loans (Note 20), finance lease obligations (Note 22), and bonds (Note 21). A reconciliation between the opening and closing balances of these items is provided in Note 47. Consistent with the transition provisions of the amendments, the Group has not disclosed comparative information for the prior period. Apart from the additional disclosure in Note 47, the application of these amendments has had no impact on the Group’s consolidated financial statements.

Penerapan amendemen/penyesuaian PSAK berikut tidak menimbulkan dampak material terhadap pengungkapan atau jumlah yang diakui dalam laporan keuangan konsolidasian tahun berjalan dan sebelumnya tetapi dapat mempengaruhi transaksi di masa depan.

The application of the following amendments/improvements to PSAK have not resulted to material impact to disclosures or amounts recognized in the current and prior year consolidated financial statements but may affect future transactions.

PSAK 13 (amendemen), Properti Investasi

tentang Pengalihan Properti Investasi PSAK 13 (amendment), Transfers to

Investment Property PSAK 15 (penyesuaian), Investasi pada

Entitas Asosiasi dan Ventura Bersama PSAK 15 (improvement), Investment in

Associates and Joint Venture PSAK 46 (amendemen), Pajak Penghasilan

tentang Pengakuan Aset Pajak Tangguhan untuk Rugi yang Belum Direalisasi

PSAK 46 (amendment), Recognition of Deferred Tax Assets for Unrealised Losess

PSAK 53 (amendemen), Pembayaran Berbasis Saham tentang Klasifikasi dan Pengukuran Transaksi Pembayaran Berbasis Saham

PSAK 53 (amendment), Classification and Measurement of Share-based Payments Transactions

PSAK 67 (penyesuaian), Pengungkapan Kepentingan dalam Entitas Lain

PSAK 67 (improvement), Disclosures of Interest in Other Entities

b. Standar, amendemen/penyesuaian dan interpretasi standar telah diterbitkan tapi belum diterapkan

b. Standards, amendments/improvements and interpretations to standards issued not yet adopted

Amendemen/penyesuaian dan interpretasi standar efektif untuk periode yang dimulai pada atau setelah tanggal 1 Januari 2019, dengan penerapan dini diperkenankan yaitu:

Amendments/improvements and interpretations to standards effective for periods beginning on or after January 1, 2019, with early application permitted are as follow:

PSAK 22 (penyesuaian), Kombinasi Bisnis PSAK 22 (improvement), Business

Combination







(Continued)

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PSAK 24 (amendemen), Imbalan Kerja tentang Amendemen, Kurtailmen, atau Penyelesaian Program

PSAK 24 (amendment), Plan Amendment, Curtailment or Settlement

PSAK 26 (penyesuaian), Biaya Pinjaman PSAK 26 (improvement), Borrowing Cost PSAK 46 (penyesuaian), Pajak Penghasilan PSAK 46 (improvement), Income Tax PSAK 66 (penyesuaian), Pengaturan

Bersama PSAK 66 (improvement), Joint

Arrangement ISAK 33, Transaksi Valuta Asing dan

Imbalan di muka ISAK 33, Foreign Currency Transactions

and Advance Consideration ISAK 34, Ketidakpastian dalam Perlakuan

Pajak Penghasilan ISAK 34, Uncertainty Over Income Tax

Treatments

Standar dan amendemen standar berikut efektif untuk periode yang dimulai pada atau setelah tanggal 1 Januari 2020, dengan penerapan dini diperkenankan yaitu:

Standards and amendments to standards effective for periods beginning on or after January 1, 2020, with early application permitted are:

PSAK 15 (amendemen), Investasi pada Entitas Asosiasi dan Ventura Bersama tentang Kepentingan Jangka Panjang pada Entitas Asosiasi dan Ventura Bersama

PSAK 15 (amendment), Investments in Associates and Joint Ventures: Long Term Interest in Associate and Joint Ventures

PSAK 62 (amendemen), Kontrak Asuransi-Menerapkan PSAK 71: Instrumen Keuangan dengan PSAK 62: Kontrak Asuransi

PSAK 62 (amendment), Insurance Contract: Applying PSAK 71: Financial Instruments with PSAK 62: Insurance Contracts

PSAK 71, Instrumen Keuangan PSAK 71, Financial Instruments PSAK 71 (amendemen), Instrumen

Keuangan tentang Fitur Percepatan Pelunasan dengan Kompensasi Negatif

PSAK 71 (amendment), Financial Instruments: Prepayment Features with Negative Compensation

PSAK 72, Pendapatan dari Kontrak dengan Pelanggan

PSAK 72, Revenue from Contracts with Customers

PSAK 73, Sewa. PSAK 73, Leases.

Standar berikut efektif untuk periode yang dimulai pada atau setelah tanggal 1 Januari 2021, dengan penerapan dini diperkenankan yaitu:

Standard effective for periods beginning on or after January 1, 2021, with early application permitted as follow:

PSAK 112, Akuntansi Wakaf

PSAK 112, Wakaf Accoounting

Sampai dengan tanggal penerbitan laporan keuangan konsolidasian, dampak dari penerapan standar, amendemen dan interpretasi tersebut terhadap laporan keuangan konsolidasian tidak dapat diketahui atau diestimasi oleh manajemen.


3. IKHTISAR KEBIJAKAN AKUNTANSI PENTING 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Pernyataan Kepatuhan a. Statement of Compliance

Laporan keuangan konsolidasian ini telah disusun dan disajikan sesuai dengan Standar Akuntansi Keuangan di Indonesia, yang mencakup pernyataan dan interpretasinya yang dikeluarkan oleh Dewan Standar Akuntansi Keuangan - Ikatan Akuntan Indonesia dan peraturan-peraturan serta pedoman dan penyajian dan pengungkapan laporan keuangan yang diterbitkan oleh Otoritas Jasa Keuangan (OJK).

The consolidated financial statements have been prepared and presented in accordance with Indonesian Financial Accounting Standards, which comprise the statements and interpretation issued by the Financial Accounting Standard Board of the Indonesian Institute of Accountants and the regulations and the guidelines on financial statements and disclosures issued by Financial Services Authority (OJK).







(Continued)

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PSAK 24 (amendemen), Imbalan Kerja tentang Amendemen, Kurtailmen, atau Penyelesaian Program

PSAK 24 (amendment), Plan Amendment, Curtailment or Settlement

PSAK 26 (penyesuaian), Biaya Pinjaman PSAK 26 (improvement), Borrowing Cost PSAK 46 (penyesuaian), Pajak Penghasilan PSAK 46 (improvement), Income Tax PSAK 66 (penyesuaian), Pengaturan

Bersama PSAK 66 (improvement), Joint

Arrangement ISAK 33, Transaksi Valuta Asing dan

Imbalan di muka ISAK 33, Foreign Currency Transactions

and Advance Consideration ISAK 34, Ketidakpastian dalam Perlakuan

Pajak Penghasilan ISAK 34, Uncertainty Over Income Tax

Treatments

Standar dan amendemen standar berikut efektif untuk periode yang dimulai pada atau setelah tanggal 1 Januari 2020, dengan penerapan dini diperkenankan yaitu:

Standards and amendments to standards effective for periods beginning on or after January 1, 2020, with early application permitted are:

PSAK 15 (amendemen), Investasi pada Entitas Asosiasi dan Ventura Bersama tentang Kepentingan Jangka Panjang pada Entitas Asosiasi dan Ventura Bersama

PSAK 15 (amendment), Investments in Associates and Joint Ventures: Long Term Interest in Associate and Joint Ventures

PSAK 62 (amendemen), Kontrak Asuransi-Menerapkan PSAK 71: Instrumen Keuangan dengan PSAK 62: Kontrak Asuransi

PSAK 62 (amendment), Insurance Contract: Applying PSAK 71: Financial Instruments with PSAK 62: Insurance Contracts

PSAK 71, Instrumen Keuangan PSAK 71, Financial Instruments PSAK 71 (amendemen), Instrumen

Keuangan tentang Fitur Percepatan Pelunasan dengan Kompensasi Negatif

PSAK 71 (amendment), Financial Instruments: Prepayment Features with Negative Compensation

PSAK 72, Pendapatan dari Kontrak dengan Pelanggan

PSAK 72, Revenue from Contracts with Customers

PSAK 73, Sewa. PSAK 73, Leases.

Standar berikut efektif untuk periode yang dimulai pada atau setelah tanggal 1 Januari 2021, dengan penerapan dini diperkenankan yaitu:

Standard effective for periods beginning on or after January 1, 2021, with early application permitted as follow:

PSAK 112, Akuntansi Wakaf

PSAK 112, Wakaf Accoounting

Sampai dengan tanggal penerbitan laporan keuangan konsolidasian, dampak dari penerapan standar, amendemen dan interpretasi tersebut terhadap laporan keuangan konsolidasian tidak dapat diketahui atau diestimasi oleh manajemen.


3. IKHTISAR KEBIJAKAN AKUNTANSI PENTING 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Pernyataan Kepatuhan a. Statement of Compliance

Laporan keuangan konsolidasian ini telah disusun dan disajikan sesuai dengan Standar Akuntansi Keuangan di Indonesia, yang mencakup pernyataan dan interpretasinya yang dikeluarkan oleh Dewan Standar Akuntansi Keuangan - Ikatan Akuntan Indonesia dan peraturan-peraturan serta pedoman dan penyajian dan pengungkapan laporan keuangan yang diterbitkan oleh Otoritas Jasa Keuangan (OJK).

The consolidated financial statements have been prepared and presented in accordance with Indonesian Financial Accounting Standards, which comprise the statements and interpretation issued by the Financial Accounting Standard Board of the Indonesian Institute of Accountants and the regulations and the guidelines on financial statements and disclosures issued by Financial Services Authority (OJK).





(Continued)

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b. Dasar Penyusunan b. Basis of Preparation

Dasar penyusunan laporan keuangan konsolidasian adalah biaya historis, kecuali properti dan instrumen keuangan tertentu yang diukur pada jumlah revaluasian atau nilai wajar pada setiap akhir periode pelaporan, yang dijelaskan dalam kebijakan akuntansi di bawah ini. Mata uang penyajian yang digunakan untuk penyusunan laporan keuangan konsolidasian adalah mata uang Rupiah (Rp).

The consolidated financial statements have been prepared on the historical cost basis except for certain properties and financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies below. The presentation currency used in the preparation of the consolidated financial statements in the Indonesian Rupiah (Rp).

Biaya historis umumnya didasarkan pada nilai wajar dari imbalan yang diberikan dalam pertukaran barang dan jasa.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Nilai wajar adalah harga yang akan diterima untuk menjual suatu aset atau harga yang akan dibayar untuk mengalihkan suatu liabilitas dalam suatu transaksi teratur antara pelaku pasar pada tanggal pengukuran, terlepas apakah harga tersebut dapat diobservasi secara langsung atau diestimasi menggunakan teknik penilaian lain. Dalam mengestimasi nilai wajar aset atau liabilitas, Grup memperhitungkan karakteristik aset atau liabilitas, jika pelaku pasar memperhitungkan karakteristik tersebut ketika menentukan harga aset atau liabilitas pada tanggal pengukuran. Nilai wajar untuk tujuan pengukuran dan/atau pengungkapan dalam laporan keuangan konsolidasian ditentukan berdasarkan basis tersebut, kecuali untuk transaksi pembayaran berbasis saham dalam ruang lingkup PSAK 53, transaksi sewa dalam ruang lingkup PSAK 30, dan pengukuran yang memiliki beberapa kemiripan dengan nilai wajar tetapi bukan merupakan nilai wajar, seperti nilai realisasi neto dalam PSAK 14 dan nilai pakai dalam PSAK 48.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics the asset or a liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of PSAK 53, leasing transactions that are within the scope of PSAK 30, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in PSAK 14 or value in use in PSAK 48.

Selain itu, untuk tujuan pelaporan keuangan, pengukuran nilai wajar dikategorikan ke Level 1, 2 atau 3 berdasarkan tingkat input untuk pengukuran nilai wajar yang dapat diobservasi dan signifikansi input pada pengukuran nilai wajar secara keseluruhan, yang digambarkan sebagai berikut:

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Input Level 1 adalah harga kuotasian (tanpa penyesuaian) di pasar aktif untuk aset atau liabilitas yang identik yang dapat diakses entitas pada tanggal pengukuran;

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

Input Level 2 adalah input, selain harga kuotasian yang termasuk dalam Level 1, yang dapat diobservasi untuk aset atau liabilitas, baik secara langsung maupun tidak langsung; dan

Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly; and

Input Level 3 adalah input yang tidak dapat diobservasi untuk aset atau liabilitas.

Level 3 inputs are unobservable inputs for the asset or liability.

Laporan arus kas konsolidasian disusun dengan menggunakan metode langsung dengan mengelompokkan arus kas dalam aktivitas operasi, investasi dan pendanaan.

The consolidated statements of cash flows are prepared using the direct method with classifications of cash flows into operating, investing and financing activities.







(Continued)

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c. Dasar Konsolidasian

c. Basis of Consolidation

Laporan keuangan konsolidasian menggabungkan laporan keuangan Perusahaan dan entitas yang dikendalikan oleh Perusahaan dan entitas anak (termasuk entitas terstruktur). Pengendalian tercapai jika Perusahaan memiliki kekuasaan atas investee; eksposur atau hak atas imbal hasil variabel dari keterlibatannya dengan investee; dan kemampuan untuk menggunakan kekuasaannya atas investee untuk mempengaruhi jumlah imbal hasil investor.

The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved where the Company has the power over the investee; is exposed, or has rights, to variable returns from its involvement with the investee; and has the ability to use its power to affect its returns.

Perusahaan menilai kembali apakah Perusahaan mengendalikan investee jika fakta dan keadaan mengindikasikan adanya perubahan terhadap satu atau lebih dari tiga elemen pengendalian yang disebutkan di atas.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

Ketika Perusahaan memiliki hak suara kurang dari mayoritas di-investee, ia memiliki kekuasaan atas investee ketika hak suara investor cukup untuk memberinya kemampuan praktis untuk mengarahkan aktivitas relevan secara sepihak. Perusahaan mempertimbangkan seluruh fakta dan keadaan yang relevan dalam menilai apakah hak suara Perusahaan cukup untuk memberikan Perusahaan kekuasaan, termasuk (i) ukuran kepemilikan hak suara Perusahaan relatif terhadap ukuran dan penyebaran kepemilikan pemilik hak suara lain; (ii) hak suara potensial yang dimiliki oleh Perusahaan, pemegang suara lain atau pihak lain; (iii) hak yang timbul dari pengaturan kontraktual lain; dan (iv) setiap fakta dan keadaan tambahan apapun mengindikasikan bahwa Perusahaan memiliki, atau tidak memiliki, kemampuan kini untuk mengarahkan aktivitas yang relevan pada saat keputusan perlu dibuat, termasuk pola pemilikan suara dalam RUPS sebelumnya.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including (i) the size of the Company’s holding of voting rights relative to the size and dispersion of holding of the other vote holders; (ii) potential voting rights held by the Company, other vote holders or other parties; (iii) rights arising from other contractual arrangements; and (iv) any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

Konsolidasi entitas anak dimulai ketika Perusahaan memperoleh pengendalian atas entitas anak dan akan dihentikan ketika Perusahaan kehilangan pengendalian pada entitas anak. Secara khusus, pendapatan dan beban entitas anak diakuisisi atau dijual selama tahun berjalan termasuk dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian dari tanggal diperolehnya pengendalian Perusahaan sampai tanggal ketika Perusahaan berhenti mengendalikan entitas anak.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expense of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Laba rugi dan setiap komponen penghasilan komprehensif lain diatribusikan kepada pemilik entitas induk dan kepada kepentingan nonpengendali. Perusahaan juga mengatribusikan total penghasilan komprehensif entitas anak kepada pemilik entitas induk dan kepentingan nonpengendali meskipun hal tersebut mengakibatkan kepentingan nonpengendali memiliki saldo defisit.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interest. Total comprehensive income of subsidiaries is attributed to the owners of the Company and the non-controlling interest even if this results in the non-controlling interest having a deficit balance.







(Continued)

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c. Dasar Konsolidasian

c. Basis of Consolidation

Laporan keuangan konsolidasian menggabungkan laporan keuangan Perusahaan dan entitas yang dikendalikan oleh Perusahaan dan entitas anak (termasuk entitas terstruktur). Pengendalian tercapai jika Perusahaan memiliki kekuasaan atas investee; eksposur atau hak atas imbal hasil variabel dari keterlibatannya dengan investee; dan kemampuan untuk menggunakan kekuasaannya atas investee untuk mempengaruhi jumlah imbal hasil investor.

The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved where the Company has the power over the investee; is exposed, or has rights, to variable returns from its involvement with the investee; and has the ability to use its power to affect its returns.

Perusahaan menilai kembali apakah Perusahaan mengendalikan investee jika fakta dan keadaan mengindikasikan adanya perubahan terhadap satu atau lebih dari tiga elemen pengendalian yang disebutkan di atas.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

Ketika Perusahaan memiliki hak suara kurang dari mayoritas di-investee, ia memiliki kekuasaan atas investee ketika hak suara investor cukup untuk memberinya kemampuan praktis untuk mengarahkan aktivitas relevan secara sepihak. Perusahaan mempertimbangkan seluruh fakta dan keadaan yang relevan dalam menilai apakah hak suara Perusahaan cukup untuk memberikan Perusahaan kekuasaan, termasuk (i) ukuran kepemilikan hak suara Perusahaan relatif terhadap ukuran dan penyebaran kepemilikan pemilik hak suara lain; (ii) hak suara potensial yang dimiliki oleh Perusahaan, pemegang suara lain atau pihak lain; (iii) hak yang timbul dari pengaturan kontraktual lain; dan (iv) setiap fakta dan keadaan tambahan apapun mengindikasikan bahwa Perusahaan memiliki, atau tidak memiliki, kemampuan kini untuk mengarahkan aktivitas yang relevan pada saat keputusan perlu dibuat, termasuk pola pemilikan suara dalam RUPS sebelumnya.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including (i) the size of the Company’s holding of voting rights relative to the size and dispersion of holding of the other vote holders; (ii) potential voting rights held by the Company, other vote holders or other parties; (iii) rights arising from other contractual arrangements; and (iv) any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

Konsolidasi entitas anak dimulai ketika Perusahaan memperoleh pengendalian atas entitas anak dan akan dihentikan ketika Perusahaan kehilangan pengendalian pada entitas anak. Secara khusus, pendapatan dan beban entitas anak diakuisisi atau dijual selama tahun berjalan termasuk dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian dari tanggal diperolehnya pengendalian Perusahaan sampai tanggal ketika Perusahaan berhenti mengendalikan entitas anak.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expense of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Laba rugi dan setiap komponen penghasilan komprehensif lain diatribusikan kepada pemilik entitas induk dan kepada kepentingan nonpengendali. Perusahaan juga mengatribusikan total penghasilan komprehensif entitas anak kepada pemilik entitas induk dan kepentingan nonpengendali meskipun hal tersebut mengakibatkan kepentingan nonpengendali memiliki saldo defisit.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interest. Total comprehensive income of subsidiaries is attributed to the owners of the Company and the non-controlling interest even if this results in the non-controlling interest having a deficit balance.





(Continued)

- 16 -

Jika diperlukan, penyesuaian dapat dilakukan terhadap laporan keuangan entitas anak agar kebijakan akuntansi sesuai dengan kebijakan akuntansi Grup.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies.

Seluruh aset dan liabilitas dalam intra Grup, ekuitas, pendapatan, beban dan arus kas yang berkaitan dengan transaksi dalam Grup dieliminasi secara penuh pada saat konsolidasi.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Perubahan kepemilikan Grup pada entitas anak yang tidak mengakibatkan kehilangan pengendalian Grup atas entitas anak dicatat sebagai transaksi ekuitas. Jumlah tercatat dari kepemilikan Grup dan kepentingan nonpengendali disesuaikan untuk mencerminkan perubahan kepentingan relatifnya dalam entitas anak. Selisih antara jumlah tercatat kepentingan nonpengendali yang disesuaikan dan nilai wajar imbalan yang dibayar atau diterima diakui secara langsung dalam ekuitas dan diatribusikan kepada pemilik entitas induk.

Changes in the Group’s ownership interest in existing subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interest and the non-controlling interest are adjusted to reflect the changes in their relative interest in the subsidiaries. Any difference between the amount by which the non-controlling interest are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company.

Ketika Grup kehilangan pengendalian pada entitas anak, keuntungan atau kerugian diakui dalam laba rugi dan dihitung sebagai perbedaan antara (i) agregat nilai wajar pembayaran yang diterima dan nilai wajar sisa kepemilikan (retained interest) dan (ii) jumlah tercatat sebelumnya dari aset (termasuk goodwill), dan liabilitas dari entitas anak dan setiap kepentingan nonpengendali. Seluruh jumlah yang diakui sebelumnya dalam penghasilan komprehensif lain yang terkait dengan entitas anak dicatat seolah-olah Grup telah melepaskan secara langsung aset atau liabilitas terkait entitas anak (yaitu direklasifikasi ke laba rugi atau ditransfer ke kategori lain dari ekuitas sebagaimana ditentukan / diizinkan oleh standar akuntansi yang berlaku). Nilai wajar setiap sisa investasi pada entitas anak terdahulu pada tanggal hilangnya pengendalian dianggap sebagai nilai wajar pada saat pengakuan awal untuk perlakuan akuntansi berikutnya dalam PSAK 55, Instrumen Keuangan: Pengakuan dan Pengukuran atau, ketika berlaku, biaya perolehan pada saat pengakuan awal dari investasi pada entitas asosiasi atau ventura bersama.

When the Group losses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interest. All amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable accounting standards). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under PSAK 55, Financial Instruments: Recognition and Measurement or, when applicable, the cost on initial recognition of an investment in an associate.

Kepentingan non-pengendali pada entitas anak diidentifikasi secara terpisah dan disajikan dalam ekuitas. Kepentingan pemegang saham non-pengendali awalnya diukur baik pada nilai wajar atau pun pada proporsi pemilikan kepentingan non-pengendali dari nilai wajar aset neto yang dapat diidentifikasi dari pihak yang diakuisisi. Pilihan pengukuran dilakukan untuk setiap akuisisi dengan dasar akuisisi. Setelah akuisisi, jumlah tercatat kepentingan non-pengendali adalah jumlah kepemilikan pada pengakuan awal ditambah bagian kepentingan non-pengendali dari perubahan selanjutnya dalam ekuitas.

Non-controlling interests in subsidiaries are identified separately and presented within equity. The interest of non-controlling shareholders initially measured either at fair value or at the non-controlling interests’ proportionate share of the recognized amounts at the fair value of the acquiree’s identifiable net asset. The choice of measurement is made on acquisition by acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus non-controlling interests’ share of subsequent changes in equity.







(Continued)

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d. Kombinasi Bisnis

d. Business Combination

Akuisisi bisnis dicatat dengan menggunakan metode akuisisi. Imbalan yang dialihkan dalam suatu kombinasi bisnis diukur pada nilai wajar, yang dihitung sebagai hasil penjumlahan dari nilai wajar tanggal akuisisi atas seluruh aset yang dialihkan oleh Grup, liabilitas yang diakui oleh Grup kepada pemilik sebelumnya dari pihak yang diakuisisi dan kepentingan ekuitas yang diterbitkan oleh Grup dalam pertukaran pengendalian dari pihak yang diakuisisi. Biaya-biaya terkait akuisisi diakui di dalam laba rugi pada saat terjadinya.

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree, and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognized in profit or loss as incurred.

Pada tanggal akuisisi, aset teridentifikasi yang diperoleh dan liabilitas yang diambil alih diakui pada nilai wajar kecuali untuk aset dan liabilitas tertentu yang diukur sesuai dengan standar yang relevan.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value except for certain assets and liabilities that are measured in accordance with the relevant standards.

Goodwill diukur sebagai selisih lebih dari nilai gabungan dari imbalan yang dialihkan, jumlah setiap kepentingan non-pengendali pada pihak diakuisisi dan nilai wajar pada tanggal akuisisi kepentingan ekuitas yang sebelumnya dimiliki oleh pihak pengakuisisi pada pihak diakuisisi (jika ada) atas jumlah neto dari aset teridentifikasi yang diperoleh dan liabilitas yang diambil alih pada tanggal akuisisi. Jika, setelah penilaian kembali, jumlah neto dari aset teridentifikasi yang diperoleh dan liabilitas yang diambil alih pada tanggal akuisisi melebihi jumlah imbalan yang dialihkan, jumlah dari setiap kepentingan non-pengendali pada pihak diakuisisi dan nilai wajar pada tanggal akuisisi kepentingan ekuitas yang sebelumnya dimiliki oleh pihak pengakuisisi pada pihak diakuisisi (jika ada), selisih lebih diakui segera dalam laba rugi sebagai keuntungan pembelian dengan diskon.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquired (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after the reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase option.

Kepentingan non-pengendali yang menyajikan bagian kepemilikan dan memberikan mereka hak atas bagian proposional dari aset neto entitas dalam hal terjadi likuidasi pada awalnya diukur baik pada nilai wajar ataupun pada bagian proporsional kepemilikan kepentingan non-pengendali atas aset neto teridentifikasi dari pihak yang diakuisisi. Pilihan dasar pengukuran dilakukan atas dasar transaksi. Kepentingan non-pengendali jenis lain diukur pada nilai wajar atau, jika berlaku, pada dasar pengukuran lain yang ditentukan oleh standar akuntansi lain.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another accounting standard.

Bila imbalan yang dialihkan oleh Grup dalam suatu kombinasi bisnis termasuk aset atau liabilitas yang berasal dari pengaturan imbalan kontinjen, imbalan kontinjen tersebut diukur pada nilai wajar pada tanggal akuisisi dan termasuk sebagai bagian dari imbalan yang dialihkan dalam suatu kombinasi bisnis.

When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition date fair value and included as part of the consideration transferred in a business combination.







(Continued)

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d. Kombinasi Bisnis

d. Business Combination

Akuisisi bisnis dicatat dengan menggunakan metode akuisisi. Imbalan yang dialihkan dalam suatu kombinasi bisnis diukur pada nilai wajar, yang dihitung sebagai hasil penjumlahan dari nilai wajar tanggal akuisisi atas seluruh aset yang dialihkan oleh Grup, liabilitas yang diakui oleh Grup kepada pemilik sebelumnya dari pihak yang diakuisisi dan kepentingan ekuitas yang diterbitkan oleh Grup dalam pertukaran pengendalian dari pihak yang diakuisisi. Biaya-biaya terkait akuisisi diakui di dalam laba rugi pada saat terjadinya.

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree, and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognized in profit or loss as incurred.

Pada tanggal akuisisi, aset teridentifikasi yang diperoleh dan liabilitas yang diambil alih diakui pada nilai wajar kecuali untuk aset dan liabilitas tertentu yang diukur sesuai dengan standar yang relevan.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value except for certain assets and liabilities that are measured in accordance with the relevant standards.

Goodwill diukur sebagai selisih lebih dari nilai gabungan dari imbalan yang dialihkan, jumlah setiap kepentingan non-pengendali pada pihak diakuisisi dan nilai wajar pada tanggal akuisisi kepentingan ekuitas yang sebelumnya dimiliki oleh pihak pengakuisisi pada pihak diakuisisi (jika ada) atas jumlah neto dari aset teridentifikasi yang diperoleh dan liabilitas yang diambil alih pada tanggal akuisisi. Jika, setelah penilaian kembali, jumlah neto dari aset teridentifikasi yang diperoleh dan liabilitas yang diambil alih pada tanggal akuisisi melebihi jumlah imbalan yang dialihkan, jumlah dari setiap kepentingan non-pengendali pada pihak diakuisisi dan nilai wajar pada tanggal akuisisi kepentingan ekuitas yang sebelumnya dimiliki oleh pihak pengakuisisi pada pihak diakuisisi (jika ada), selisih lebih diakui segera dalam laba rugi sebagai keuntungan pembelian dengan diskon.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquired (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after the reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase option.

Kepentingan non-pengendali yang menyajikan bagian kepemilikan dan memberikan mereka hak atas bagian proposional dari aset neto entitas dalam hal terjadi likuidasi pada awalnya diukur baik pada nilai wajar ataupun pada bagian proporsional kepemilikan kepentingan non-pengendali atas aset neto teridentifikasi dari pihak yang diakuisisi. Pilihan dasar pengukuran dilakukan atas dasar transaksi. Kepentingan non-pengendali jenis lain diukur pada nilai wajar atau, jika berlaku, pada dasar pengukuran lain yang ditentukan oleh standar akuntansi lain.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another accounting standard.

Bila imbalan yang dialihkan oleh Grup dalam suatu kombinasi bisnis termasuk aset atau liabilitas yang berasal dari pengaturan imbalan kontinjen, imbalan kontinjen tersebut diukur pada nilai wajar pada tanggal akuisisi dan termasuk sebagai bagian dari imbalan yang dialihkan dalam suatu kombinasi bisnis.

When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition date fair value and included as part of the consideration transferred in a business combination.





(Continued)

- 18 -

Perubahan dalam nilai wajar atas imbalan kontinjen yang memenuhi syarat sebagai penyesuaian periode pengukuran disesuaikan secara retrospektif, dengan penyesuaian terkait terhadap goodwill. Penyesuaian periode pengukuran adalah penyesuaian yang berasal dari informasi tambahan yang diperoleh selama periode pengukuran (yang tidak melebihi satu tahun sejak tanggal akuisisi) tentang fakta-fakta dan kondisi yang ada pada tanggal akuisisi.

Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the measurement period (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

Perlakuan akuntansi selanjutnya untuk perubahan nilai wajar dari imbalan kontinjensi yang tidak memenuhi syarat sebagai penyesuaian periode pengukuran tergantung pada bagaimana imbalan kontinjensi diklasifikasikan. Imbalan kontinjensi yang diklasifikasikan sebagai ekuitas tidak diukur kembali pada setiap tanggal pelaporan dan penyelesaian selanjutnya diperhitungkan dalam ekuitas. Imbalan kontinjensi yang diklasifikasikan sebagai aset atau liabilitas diukur kembali setelah tanggal pelaporan sesuai dengan PSAK 55 atau PSAK 57; Provisi, Liabilitas Kontinjensi dan Aset Kontinjensi dengan laba atau rugi yang terjadi diakui dalam laba rugi.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or liability is remeasured subsequent to reporting dates in accordance with PSAK 55 or PSAK 57; Provisions, Contigent Liabilities and Contigent Assets with the corresponding gain or loss being recognised in profit or loss.

Bila suatu kombinasi bisnis dilakukan secara bertahap, kepemilikan terdahulu Grup atas pihak terakuisisi diukur kembali ke nilai wajar pada tanggal akuisisi dan keuntungan atau kerugiannya, jika ada, diakui dalam laba rugi. Jumlah yang berasal dari kepemilikan sebelum tanggal akuisisi yang sebelumnya telah diakui dalam penghasilan komprehensif lain direklasifikasi ke laba rugi dimana perlakuan tersebut akan sesuai jika kepemilikannya dilepas/dijual.

When a business combination is achieved in stages, the Group’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interests were disposed of.

Jika akuntansi awal untuk kombinasi bisnis belum selesai pada akhir periode pelaporan saat kombinasi terjadi, Grup melaporkan jumlah sementara untuk pos-pos yang proses akuntansinya belum selesai dalam laporan keuangannya. Selama periode pengukuran, pihak pengakuisisi menyesuaikan, aset atau liabilitas tambahan yang diakui, untuk mencerminkan informasi baru yang diperoleh tentang fakta dan keadaan yang ada pada tanggal akuisisi dan, jika diketahui, akan berdampak pada jumlah yang diakui pada tanggal tersebut.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amount recognized as of that date.

e. Transaksi dan Penjabaran Laporan

Keuangan Dalam Mata Uang Asing e. Foreign Currency Transactions and

Translation Laporan keuangan individu masing-masing entitas Grup diukur dan disajikan dalam mata uang dari lingkungan ekonomi utama dimana entitas beroperasi (mata uang fungsional). Laporan keuangan konsolidasian dari Grup disajikan dalam mata uang Rupiah yang merupakan mata uang fungsional dan mata uang penyajian untuk laporan keuangan konsolidasian.

The individual financial statements of each Group entity are measured and presented in the currency of the primary economic environment in which the entity operates (its functional currency). The consolidated financial statements of the Group are presented in Indonesian Rupiah, which is the functional currency and the presentation currency for the consolidated financial statements.







(Continued)

- 19 -

Dalam penyusunan laporan keuangan setiap entitas individual grup, transaksi dalam mata uang asing selain mata uang fungsional entitas (mata uang asing) diakui pada kurs yang berlaku pada tanggal transaksi. Pada setiap akhir periode pelaporan, pos moneter dalam valuta asing dijabarkan kembali pada kurs yang berlaku pada tanggal tersebut. Pos-pos non-moneter yang diukur pada nilai wajar dalam valuta asing dijabarkan kembali pada kurs yang berlaku pada tanggal ketika nilai wajar ditentukan. Pos non-moneter diukur dalam biaya historis dalam valuta asing yang tidak dijabarkan kembali.

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Selisih kurs atas pos moneter diakui dalam laba rugi pada periode saat terjadinya kecuali untuk:

Exchange differences on monetary items are recognized in profit or loss in the period in which they arise except for:

Selisih kurs atas pinjaman valuta asing yang

berkaitan dengan aset dalam pembangunan untuk penggunaan yang produktif di masa depan, termasuk dalam biaya perolehan aset tersebut ketika dianggap sebagai penyesuaian atas biaya bunga atas pinjaman valuta asing.

Exchange differences on foreign currency borrowing relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowing.

Selisih kurs atas transaksi yang ditetapkan

untuk tujuan lindung nilai risiko valuta asing tertentu.

Exchange differences on transaction entered into in order to hedge certain foreign currency risks.

Selisih kurs atas pos moneter piutang atau

utang pada kegiatan dalam valuta asing yang penyelesaiannya tidak direncanakan atau tidak mungkin terjadi (membentuk bagian dari investasi bersih dalam kegiatan usaha luar negeri), yang pada awalnya diakui pada penghasilan komprehensif lain dan direklasifikasi dari ekuitas ke laba rugi pada pembayaran kembali pos moneter.

Exchange differences on monetary items receivable from or payable to a foreign currency operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items.

Pembukuan TLCC diselenggarakan dalam Dong Vietnam. Untuk tujuan penyajian laporan keuangan konsolidasian, aset dan liabilitas kegiatan usaha luar negeri Grup dijabarkan ke dalam Rupiah dengan menggunakan kurs yang berlaku pada akhir periode pelaporan. Pos penghasilan dan beban dijabarkan menggunakan kurs rata-rata untuk periode tersebut, kecuali kurs berfluktuasi secara signifikan selama periode tersebut, dalam hal ini kurs yang berlaku pada tanggal transaksi yang digunakan. Selisih kurs yang timbul diakui dalam penghasilan komprehensif lain dan diakumulasi dalam ekuitas (dan diatribusikan pada kepentingan non-pengendali).

The books of TLCC’s account are maintained in Vietnam Dong. For the purposes of presenting these consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into Indonesian Rupiah using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (and attributed to non-controlling interests as appropriate).







(Continued)

- 19 -

Dalam penyusunan laporan keuangan setiap entitas individual grup, transaksi dalam mata uang asing selain mata uang fungsional entitas (mata uang asing) diakui pada kurs yang berlaku pada tanggal transaksi. Pada setiap akhir periode pelaporan, pos moneter dalam valuta asing dijabarkan kembali pada kurs yang berlaku pada tanggal tersebut. Pos-pos non-moneter yang diukur pada nilai wajar dalam valuta asing dijabarkan kembali pada kurs yang berlaku pada tanggal ketika nilai wajar ditentukan. Pos non-moneter diukur dalam biaya historis dalam valuta asing yang tidak dijabarkan kembali.

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Selisih kurs atas pos moneter diakui dalam laba rugi pada periode saat terjadinya kecuali untuk:

Exchange differences on monetary items are recognized in profit or loss in the period in which they arise except for:

Selisih kurs atas pinjaman valuta asing yang

berkaitan dengan aset dalam pembangunan untuk penggunaan yang produktif di masa depan, termasuk dalam biaya perolehan aset tersebut ketika dianggap sebagai penyesuaian atas biaya bunga atas pinjaman valuta asing.

Exchange differences on foreign currency borrowing relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowing.

Selisih kurs atas transaksi yang ditetapkan

untuk tujuan lindung nilai risiko valuta asing tertentu.

Exchange differences on transaction entered into in order to hedge certain foreign currency risks.

Selisih kurs atas pos moneter piutang atau

utang pada kegiatan dalam valuta asing yang penyelesaiannya tidak direncanakan atau tidak mungkin terjadi (membentuk bagian dari investasi bersih dalam kegiatan usaha luar negeri), yang pada awalnya diakui pada penghasilan komprehensif lain dan direklasifikasi dari ekuitas ke laba rugi pada pembayaran kembali pos moneter.

Exchange differences on monetary items receivable from or payable to a foreign currency operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items.

Pembukuan TLCC diselenggarakan dalam Dong Vietnam. Untuk tujuan penyajian laporan keuangan konsolidasian, aset dan liabilitas kegiatan usaha luar negeri Grup dijabarkan ke dalam Rupiah dengan menggunakan kurs yang berlaku pada akhir periode pelaporan. Pos penghasilan dan beban dijabarkan menggunakan kurs rata-rata untuk periode tersebut, kecuali kurs berfluktuasi secara signifikan selama periode tersebut, dalam hal ini kurs yang berlaku pada tanggal transaksi yang digunakan. Selisih kurs yang timbul diakui dalam penghasilan komprehensif lain dan diakumulasi dalam ekuitas (dan diatribusikan pada kepentingan non-pengendali).

The books of TLCC’s account are maintained in Vietnam Dong. For the purposes of presenting these consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into Indonesian Rupiah using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (and attributed to non-controlling interests as appropriate).





(Continued)

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Pada pelepasan kegiatan usaha luar negeri (contoh: pelepasan dari seluruh kepentingan Grup pada kegiatan usaha luar negeri, atau pelepasan melibatkan hilangnya pengendalian pada entitas anak yang mencakup kegiatan usaha luar negeri, atau pelepasan parsial atas kepentingan dalam pengaturan bersama atau entitas asosiasi yang mencakup kegiatan operasi luar negeri, merupakan aset keuangan yang mencakup kegiatan usaha luar negeri), seluruh jumlah selisih kurs yang terkait dengan kegiatan usaha luar negeri yang telah diatribusikan ke pemilik entitas induk direklasifikasi ke laba rugi.

On the disposal of foreign operation (i.e.: a disposal of the Group’s entire interest in foreign operation, or disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

Selanjutnya, dalam pelepasan sebagian dari entitas anak yang mencakup kegiatan usaha luar negeri, yang tidak mengakibatkan hilangnya pengendalian Grup atas entitas anak, entitas mereatribusi bagian yang sebanding dari jumlah kumulatif selisih kurs yang diakui dalam penghasilan komprehensif lain ke kepentingan non-pengendali pada kegiatan usaha luar negeri tersebut dan tidak diakui dalam laba rugi. Untuk seluruh pelepasan sebagian kepentingannya (contoh: pelepasan sebagian dari entitas asosiasi atau pengaturan bersama yang tidak mengakibatkan hilangnya pengaruh signifikan atau pengendalian bersama Grup), bagian proporsional dari jumlah kumulatif kurs direklasifikasi ke laba rugi.

In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognized in profit or loss. For all other partial disposals (i.e., partial disposal of associates or joint arrangements that do not result in the Group losing significant influence or joint control), the proportionate share of the accumulated exchange differences is reclassified to profit or loss.

Goodwill dan penyesuaian nilai wajar aset teridentifkasi yang diperoleh dan liabilitas yang dialihkan melalui akuisisi dari kegiatan usaha luar negeri diperlakukan sebagai aset dan liabilitas dari kegiatan usaha luar negeri dan dijabarkan pada kurs yang berlaku pada akhir periode pelaporan. Selisih kurs yang timbul diakui pada penghasilan komprehensif lain.

Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period. Exchange differences arising are recognized in other comprehensive income.

f. Transaksi Pihak-pihak Berelasi f. Transactions with Related Parties

Pihak-pihak berelasi adalah orang atau entitas yang terkait dengan Grup (entitas pelapor):

A related party is a person or entity that is related to the Group (the reporting entity):

a. Orang atau anggota keluarga dekatnya

mempunyai relasi dengan entitas pelapor jika orang tersebut:

a. A person or a close member of that person's family is related to the reporting entity if that person:

i. memiliki pengendalian atau

pengendalian bersama atas entitas pelapor;

i. has control or joint control over the reporting entity;

ii. memiliki pengaruh signifikan atas entitas pelapor; atau

ii. has significant influence over the reporting entity; or

iii. merupakan personil manajemen kunci entitas pelapor atau entitas induk dari entitas pelapor.

iii. is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.







(Continued)

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b. Suatu entitas berelasi dengan entitas pelapor jika memenuhi salah satu hal berikut:

c. b. An entity is related to the reporting entity if any of the following conditions applies:

i. Entitas dan entitas pelapor adalah anggota dari kelompok usaha yang sama (artinya entitas induk, entitas anak, dan entitas anak berikutnya saling berelasi dengan entitas lainnya).

i. The entity, and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).

ii. Satu entitas adalah entitas asosiasi atau ventura bersama dari entitas lain (atau entitas asosiasi atau ventura bersama yang merupakan anggota suatu kelompok usaha, yang mana entitas lain tersebut adalah anggotanya).

ii. One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).

iii. Kedua entitas tersebut adalah ventura bersama dari pihak ketiga yang sama.

iii. Both entities are joint ventures of the same third party.

iv. Satu entitas adalah ventura bersama dari entitas ketiga dan entitas yang lain adalah entitas asosiasi dari entitas ketiga.

iv. One entity is a joint venture of a third entity and the other entity is an associate of the third entity.

v. Entitas tersebut adalah suatu program imbalan pasca kerja untuk imbalan kerja dari salah satu entitas pelapor atau entitas yang terkait dengan entitas pelapor. Jika entitas pelapor adalah entitas yang menyelenggarakan program tersebut, maka entitas sponsor juga berelasi dengan entitas pelapor.

v. The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity, or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.

vi. Entitas yang dikendalikan atau dikendalikan bersama oleh orang yang diidentifikasi dalam huruf (a).

vi. The entity is controlled or jointly controlled by a person identified in (a).

vii. Orang yang diidentifikasi dalam huruf (a) (i) memiliki pengaruh signifikan atas entitas atau merupakan personil manajemen kunci entitas (atau entitas induk dari entitas).

viii. Entitas, atau anggota dari kelompok yang mana entitas merupakan bagian dari kelompok tersebut, menyediakan jasa personil manajemen kunci kepada entitas pelapor atau kepada entitas induk dari entitas pelapor.

vii. A person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or a parent of the entity).

viii. The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity.

Transaksi signifikan yang dilakukan dengan pihak-pihak berelasi, baik dilakukan dengan kondisi dan persyaratan dengan pihak ketiga maupun tidak, diungkapkan pada laporan keuangan konsolidasian.

Significant transactions with related parties, whether or not made at similar terms and conditions as those done with third parties, are disclosed in the consolidated financial statements.







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b. Suatu entitas berelasi dengan entitas pelapor jika memenuhi salah satu hal berikut:

c. b. An entity is related to the reporting entity if any of the following conditions applies:

i. Entitas dan entitas pelapor adalah anggota dari kelompok usaha yang sama (artinya entitas induk, entitas anak, dan entitas anak berikutnya saling berelasi dengan entitas lainnya).

i. The entity, and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).

ii. Satu entitas adalah entitas asosiasi atau ventura bersama dari entitas lain (atau entitas asosiasi atau ventura bersama yang merupakan anggota suatu kelompok usaha, yang mana entitas lain tersebut adalah anggotanya).

ii. One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).

iii. Kedua entitas tersebut adalah ventura bersama dari pihak ketiga yang sama.

iii. Both entities are joint ventures of the same third party.

iv. Satu entitas adalah ventura bersama dari entitas ketiga dan entitas yang lain adalah entitas asosiasi dari entitas ketiga.

iv. One entity is a joint venture of a third entity and the other entity is an associate of the third entity.

v. Entitas tersebut adalah suatu program imbalan pasca kerja untuk imbalan kerja dari salah satu entitas pelapor atau entitas yang terkait dengan entitas pelapor. Jika entitas pelapor adalah entitas yang menyelenggarakan program tersebut, maka entitas sponsor juga berelasi dengan entitas pelapor.

v. The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity, or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.

vi. Entitas yang dikendalikan atau dikendalikan bersama oleh orang yang diidentifikasi dalam huruf (a).

vi. The entity is controlled or jointly controlled by a person identified in (a).

vii. Orang yang diidentifikasi dalam huruf (a) (i) memiliki pengaruh signifikan atas entitas atau merupakan personil manajemen kunci entitas (atau entitas induk dari entitas).

viii. Entitas, atau anggota dari kelompok yang mana entitas merupakan bagian dari kelompok tersebut, menyediakan jasa personil manajemen kunci kepada entitas pelapor atau kepada entitas induk dari entitas pelapor.

vii. A person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or a parent of the entity).

viii. The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity.

Transaksi signifikan yang dilakukan dengan pihak-pihak berelasi, baik dilakukan dengan kondisi dan persyaratan dengan pihak ketiga maupun tidak, diungkapkan pada laporan keuangan konsolidasian.

Significant transactions with related parties, whether or not made at similar terms and conditions as those done with third parties, are disclosed in the consolidated financial statements.





(Continued)

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g. Aset Keuangan

g. Financial Assets

Seluruh aset keuangan diakui dan dihentikan pengakuannya pada tanggal diperdagangkan dimana pembelian dan penjualan aset keuangan berdasarkan kontrak yang mensyaratkan penyerahan aset keuangan dalam kurun waktu yang ditetapkan oleh kebiasaan pasar yang berlaku, dan awalnya diukur sebesar nilai wajar ditambah biaya transaksi, kecuali untuk aset keuangan yang diukur pada nilai wajar melalui laba rugi yang awalnya diukur sebesar nilai wajar.

All financial assets are recognized and derecognized on trade date where the purchase or sale of a financial asset is under a contract whose terms require delivery of the financial asset within the timeframe established by the market concerned, and are initially measured at fair value plus transaction costs, except for those financial assets classified as at fair value through profit or loss (FVTPL), which are initially measured at fair value.

Aset keuangan Grup diklasifikasikan sebagai berikut:

The Group’s financial assets are classified as follows:

Tersedia untuk dijual Pinjaman yang diberikan dan piutang

Available-for-Sale (AFS) Loans and Receivable

Aset keuangan tersedia untuk dijual (AFS) Available-for-sale (AFS) Aset keuangan AFS adalah aset keuangan non-derivatif yang ditetapkan baik sebagai AFS atau yang tidak diklasifikasikan sebagai (a) pinjaman yang diberikan dan piutang, (b) dimiliki hingga jatuh tempo atau (c) aset keuangan pada nilai wajar melalui laba rugi (FVTPL).

AFS financial assets are non-derivative financial assets that are either designated as AFS or are not classified as (a) loans and receivables, (b) held-to-maturity investments or (c) financial assets at fair value through profit or loss.

Investasi dalam instrumen ekuitas yang tidak mempunyai kuotasi di pasar aktif dan nilai wajarnya tidak dapat diukur secara andal diklasifikasikan sebagai AFS, diukur pada biaya perolehan dikurangi penurunan nilai.

Investments in equity instruments that are not quoted in an active market and whose fair value cannot be reliably measured are also classified as AFS, measured at cost less impairment.

Keuntungan atau kerugian yang timbul dari perubahan nilai wajar diakui dalam penghasilan komprehensif lainnya dan dan diakumulasi di ekuitas sebagai revaluasi investasi aset keuangan tersedia untuk dijual, kecuali untuk kerugian penurunan nilai, bunga yang dihitung dengan metode suku bunga efektif dan laba rugi selisih kurs atas aset moneter yang diakui pada laba rugi. Jika investasi dilepas atau mengalami penurunan nilai, akumulasi laba atau rugi yang sebelumnya diakumulasi pada revaluasi investasi aset keuangan tersedia untuk dijual, direklas ke laba rugi.

Gains and losses arising from changes in fair value are recognized in other comprehensive income and accumulated in equity as AFS Investment Revaluation, with the exception of impairment losses, interest calculated using the effective interest method, and foreign exchange gains and losses on monetary assets, which are recognized in profit or loss. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in AFS Investment Revaluation is reclassified to profit or loss.

Dividen atas instrumen ekuitas aset keuangan tersedia untuk dijual, jika ada, diakui pada laba rugi pada saat hak Grup untuk memperoleh pembayaran dividen ditetapkan.

Dividends on AFS equity instruments, if any, are recognized in profit or loss when the Group’s right to receive the dividends is established.







(Continued)

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Pinjaman yang diberikan dan piutang Loans and receivables Kas dan setara kas, kecuali kas, kas dan setara kas yang dibatasi penggunaannya, piutang pelanggan dan piutang lain-lain dengan pembayaran tetap atau telah ditentukan dan tidak mempunyai kuotasi di pasar aktif diklasifikasi sebagai “pinjaman yang diberikan dan piutang”, yang diukur pada biaya perolehan yang diamortisasi dengan menggunakan metode suku bunga efektif dikurangi penurunan nilai.

Cash and cash equivalents, except cash on hand, restricted cash and cash equivalents, receivable from customers and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as “loans and receivables”, which are measured at amortized cost using the effective interest method less impairment.

Bunga diakui dengan menggunakan metode suku bunga efektif, kecuali piutang lancar dimana pengakuan bunga tidak material.

Interest is recognized by applying the effective interest method, except for short-term receivables when the recognition of interest would be immaterial.

Metode suku bunga efektif Effective interest method Metode suku bunga efektif adalah metode yang digunakan untuk menghitung biaya perolehan diamortisasi dari instrumen keuangan dan metode untuk mengalokasikan pendapatan bunga atau biaya selama periode yang relevan. Suku bunga efektif adalah suku bunga yang secara tepat mendiskontokan estimasi penerimaan atau pembayaran kas masa depan (mencakup seluruh komisi dan bentuk lain yang dibayarkan dan diterima oleh para pihak dalam kontrak yang merupakan bagian yang tak terpisahkan dari suku bunga efektif, biaya transaksi dan premium dan diskonto lainnya) selama perkiraan umur instrumen keuangan, atau, jika lebih tepat, digunakan periode yang lebih singkat untuk memperoleh nilai tercatat bersih dari aset keuangan pada saat pengakuan awal.

The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument, or where appropriate, a shorter period to the net carrying amount on initial recognition.

Pendapatan diakui berdasarkan suku bunga efektif.

Income is recognized on an effective interest basis.

Penurunan nilai aset keuangan Impairment of financial assets Aset keuangan dievaluasi terhadap indikator penurunan nilai pada setiap tanggal pelaporan. Aset keuangan diturunkan nilainya bila terdapat bukti objektif, sebagai akibat dari satu atau lebih peristiwa yang terjadi setelah pengakuan awal aset keuangan, dan peristiwa yang merugikan tersebut berdampak pada estimasi arus kas masa depan atas aset keuangan yang dapat diestimasi secara andal.

Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Bukti objektif mengenai penurunan nilai investasi pada instrurnen ekuitas yang tidak mempunyai kuotasi mencakup informasi mengenai perubahan signifikan yang berpengaruh buruk terhadap lingkungan teknologi, pasa, ekonomik, atau hukum di wilayah tempat pihak penerbit menjalankan usahanya, dan mengindikasikan bahwa biaya perolehan investasi pada instrumen ekuitas tersebut mungkin tidak bisa diperoleh kembali.

For unanoted equity investments classified as AFS, objective evidence of impairment includes significant changes with an advance effect that has taken place in the technological, market economic or legal enfireonment in which the issuer operates and indicates that the cost of the investment in equity instrument may not be recovered.







(Continued)

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Pinjaman yang diberikan dan piutang Loans and receivables Kas dan setara kas, kecuali kas, kas dan setara kas yang dibatasi penggunaannya, piutang pelanggan dan piutang lain-lain dengan pembayaran tetap atau telah ditentukan dan tidak mempunyai kuotasi di pasar aktif diklasifikasi sebagai “pinjaman yang diberikan dan piutang”, yang diukur pada biaya perolehan yang diamortisasi dengan menggunakan metode suku bunga efektif dikurangi penurunan nilai.

Cash and cash equivalents, except cash on hand, restricted cash and cash equivalents, receivable from customers and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as “loans and receivables”, which are measured at amortized cost using the effective interest method less impairment.

Bunga diakui dengan menggunakan metode suku bunga efektif, kecuali piutang lancar dimana pengakuan bunga tidak material.

Interest is recognized by applying the effective interest method, except for short-term receivables when the recognition of interest would be immaterial.

Metode suku bunga efektif Effective interest method Metode suku bunga efektif adalah metode yang digunakan untuk menghitung biaya perolehan diamortisasi dari instrumen keuangan dan metode untuk mengalokasikan pendapatan bunga atau biaya selama periode yang relevan. Suku bunga efektif adalah suku bunga yang secara tepat mendiskontokan estimasi penerimaan atau pembayaran kas masa depan (mencakup seluruh komisi dan bentuk lain yang dibayarkan dan diterima oleh para pihak dalam kontrak yang merupakan bagian yang tak terpisahkan dari suku bunga efektif, biaya transaksi dan premium dan diskonto lainnya) selama perkiraan umur instrumen keuangan, atau, jika lebih tepat, digunakan periode yang lebih singkat untuk memperoleh nilai tercatat bersih dari aset keuangan pada saat pengakuan awal.

The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument, or where appropriate, a shorter period to the net carrying amount on initial recognition.

Pendapatan diakui berdasarkan suku bunga efektif.

Income is recognized on an effective interest basis.

Penurunan nilai aset keuangan Impairment of financial assets Aset keuangan dievaluasi terhadap indikator penurunan nilai pada setiap tanggal pelaporan. Aset keuangan diturunkan nilainya bila terdapat bukti objektif, sebagai akibat dari satu atau lebih peristiwa yang terjadi setelah pengakuan awal aset keuangan, dan peristiwa yang merugikan tersebut berdampak pada estimasi arus kas masa depan atas aset keuangan yang dapat diestimasi secara andal.

Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Bukti objektif mengenai penurunan nilai investasi pada instrurnen ekuitas yang tidak mempunyai kuotasi mencakup informasi mengenai perubahan signifikan yang berpengaruh buruk terhadap lingkungan teknologi, pasa, ekonomik, atau hukum di wilayah tempat pihak penerbit menjalankan usahanya, dan mengindikasikan bahwa biaya perolehan investasi pada instrumen ekuitas tersebut mungkin tidak bisa diperoleh kembali.

For unanoted equity investments classified as AFS, objective evidence of impairment includes significant changes with an advance effect that has taken place in the technological, market economic or legal enfireonment in which the issuer operates and indicates that the cost of the investment in equity instrument may not be recovered.





(Continued)

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Untuk aset keuangan lainnya, bukti obyektif penurunan nilai termasuk sebagai berikut:

For all other financial assets, objective evidence of impairment could include:

kesulitan keuangan signifikan yang dialami

penerbit atau pihak peminjam; atau significant financial difficulty of the issuer or

counterparty; or

pelanggaran kontrak, seperti terjadinya wanprestasi atau tunggakan pembayaran pokok atau bunga; atau

breach of contract, such as default or delinquency in interest or principal payments; or

terdapat kemungkinan bahwa pihak

peminjam akan dinyatakan pailit atau melakukan reorganisasi keuangan; atau

a probability that the borrower will enter bankruptcy or financial re-organisation; or

hilangnya pasar aktif dari asset keuangan

akibat kesulitan keuangan. the disappearance of an active market for

that financial asset because of tinancial difficulties.

Untuk kelompok aset keuangan tertentu, seperti piutang, aset yang dinilai tidak akan diturunkan secara individual akan dievaluasi penurunan nilainya secara kolektif. Bukti objektif dari penurunan nilai portofolio piutang dapat termasuk pengalaman Grup atas tertagihnya piutang di masa lalu, peningkatan keterlambatan penerimaan pembayaran piutang dari rata-rata periode kredit, dan juga pengamatan atas perubahan kondisi ekonomi nasional atau lokal yang berkorelasi dengan gagal bayar atas piutang.

For certain categories of financial asset, such as receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Group’s past experiences of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period, as well as observable changes in national or local economic conditions that correlate with default on receivables.

Untuk aset keuangan yang diukur pada biaya perolehan yang diamortisasi, jumlah kerugian penurunan nilai merupakan selisih antara jumlah tercatat aset keuangan dengan nilai kini dari estimasi arus kas masa depan yang didiskontokan menggunakan suku bunga efektif awal dari aset keuangan.

For financial assets carried at amortized cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

Untuk aset keuangan yang dicatat pada biaya perolehan, jumlah kerugian penurunan nilai diukur berdasarkan selisih antara jumlah tercatat aset keuangan dan nilai kini estimasi arus kas masa depan yang didiskontokan pada tingkat imbal hasil yang berlaku di pasar untuk aset keuangan yang serupa. Kerugian penurunan nilai tersebut tidak dapat dibalik pada periode berikutnya.

For financial asset carried at cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss cannnot be reversed in subsequent periods.

Jumlah tercatat aset keuangan tersebut dikurangi dengan kerugian penurunan nilai secara langsung atas seluruh aset keuangan, kecuali piutang yang jumlah tercatatnya dikurangi melalui penggunaan akun cadangan piutang. Jika piutang tidak tertagih, piutang tersebut dihapuskan melalui akun cadangan piutang. Pemulihan kemudian dari jumlah yang sebelumnya telah dihapuskan dikreditkan terhadap akun cadangan. Perubahan jumlah tercatat akun cadangan piutang diakui dalam laba rugi.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of receivables, where the carrying amount is reduced through the use of an allowance account. When a receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in profit or loss.

Jika aset keuangan AFS dianggap menurun nilainya, keuntungan atau kerugian kumulatif yang sebelumnya telah diakui dalam ekuitas direklasifikasi ke laba rugi.

When an AFS financial asset is considered to be impaired, cumulative gains or losses previously recognized in equity are reclassified to profit or loss.







(Continued)

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Kecuali instrumen ekuitas AFS, jika, pada periode berikutnya, jumlah kerugian penurunan nilai berkurang dan pengurangan tersebut dapat dikaitkan secara obyektif dengan peristiwa yang terjadi setelah penurunan nilai diakui, kerugian penurunan nilai yang diakui sebelumnya dibalik melalui laba rugi hingga nilai tercatat investasi pada tanggal pemulihan penurunan nilai, sepanjang nilainya tidak melebihi biaya perolehan diamortisasi sebelum pengakuan kerugian penurunan nilai dilakukan.

With the exception of AFS equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.

Dalam hal efek ekuitas AFS, kerugian penurunan nilai yang sebelumnya diakui dalam laba rugi tidak boleh dibalik melalui laba rugi. Setiap kenaikan nilai wajar setelah penurunan nilai diakui secara langsung ke penghasilan komprehensif lain.

In respect of AFS equity investments, impairment losses previously recognized in profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognized directly in other comprehensive income.

Penghentian pengakuan aset keuangan Derecognition of financial assets Grup menghentikan pengakuan aset keuangan jika dan hanya jika hak kontraktual atas arus kas yang berasal dari aset keuangan berakhir, atau Grup mentransfer aset keuangan dan secara substansial mentransfer seluruh risiko dan manfaat atas kepemilikan aset kepada entitas lain. Jika Grup tidak mentransfer serta tidak memiliki secara substansial atas seluruh risiko dan manfaat kepemilikan serta masih mengendalikan aset yang ditransfer, maka Grup mengakui keterlibatan berkelanjutan atas aset yang ditransfer dan liabilitas terkait sebesar jumlah yang mungkin harus dibayar. Jika Grup memiliki secara substansial seluruh risiko dan manfaat kepemilikan aset keuangan yang ditransfer, Grup masih mengakui aset keuangan dan juga mengakui pinjaman yang dijamin sebesar pinjaman yang diterima.

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expires, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralised borrowing for the proceeds received.

Dalam penghentian pengakuan aset keuangan secara keseluruhan, selisih antara jumlah tercatat aset dan jumlah pembayaran dan piutang yang diterima dan keuntungan atau kerugian kumulatif yang telah diakui dalam penghasilan komprehensif lain dan terakumulasi dalam ekuitas diakui dalam laba rugi.

On derecognition of financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss.

Dalam penghentian pengakuan aset keuangan terhadap satu bagian saja (misalnya ketika Grup masih memiliki hak untuk membeli kembali bagian aset yang ditransfer), Grup mengalokasikan jumlah tercatat sebelumnya dari aset keuangan tersebut pada bagian yang tetap diakui berdasarkan keterlibatan berkelanjutan dan bagian yang tidak lagi diakui berdasarkan nilai wajar relatif dari kedua bagian tersebut pada tanggal transfer. Selisih antara jumlah tercatat yang dialokasikan pada bagian yang tidak lagi diakui dan jumlah dari pembayaran yang diterima untuk bagian yang tidak lagi diakui dan setiap keuntungan atau kerugian kumulatif yang dialokasikan pada bagian yang tidak lagi diakui tersebut yang sebelumnya telah diakui dalam penghasilan komprehensif lain diakui pada laba rugi. Keuntungan dan kerugian kumulatif yang sebelumnya diakui dalam penghasilan komprehensif lain dialokasikan pada bagian yang tetap diakui dan bagian yang dihentikan pengakuannya, berdasarkan nilai wajar relatif kedua bagian tersebut.

On derecognition of financial asset other than its entirety (e.g., when the Group retains an option to repurchase part of a transferred asset), the Group allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts.







(Continued)

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Kecuali instrumen ekuitas AFS, jika, pada periode berikutnya, jumlah kerugian penurunan nilai berkurang dan pengurangan tersebut dapat dikaitkan secara obyektif dengan peristiwa yang terjadi setelah penurunan nilai diakui, kerugian penurunan nilai yang diakui sebelumnya dibalik melalui laba rugi hingga nilai tercatat investasi pada tanggal pemulihan penurunan nilai, sepanjang nilainya tidak melebihi biaya perolehan diamortisasi sebelum pengakuan kerugian penurunan nilai dilakukan.

With the exception of AFS equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.

Dalam hal efek ekuitas AFS, kerugian penurunan nilai yang sebelumnya diakui dalam laba rugi tidak boleh dibalik melalui laba rugi. Setiap kenaikan nilai wajar setelah penurunan nilai diakui secara langsung ke penghasilan komprehensif lain.

In respect of AFS equity investments, impairment losses previously recognized in profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognized directly in other comprehensive income.

Penghentian pengakuan aset keuangan Derecognition of financial assets Grup menghentikan pengakuan aset keuangan jika dan hanya jika hak kontraktual atas arus kas yang berasal dari aset keuangan berakhir, atau Grup mentransfer aset keuangan dan secara substansial mentransfer seluruh risiko dan manfaat atas kepemilikan aset kepada entitas lain. Jika Grup tidak mentransfer serta tidak memiliki secara substansial atas seluruh risiko dan manfaat kepemilikan serta masih mengendalikan aset yang ditransfer, maka Grup mengakui keterlibatan berkelanjutan atas aset yang ditransfer dan liabilitas terkait sebesar jumlah yang mungkin harus dibayar. Jika Grup memiliki secara substansial seluruh risiko dan manfaat kepemilikan aset keuangan yang ditransfer, Grup masih mengakui aset keuangan dan juga mengakui pinjaman yang dijamin sebesar pinjaman yang diterima.

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expires, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralised borrowing for the proceeds received.

Dalam penghentian pengakuan aset keuangan secara keseluruhan, selisih antara jumlah tercatat aset dan jumlah pembayaran dan piutang yang diterima dan keuntungan atau kerugian kumulatif yang telah diakui dalam penghasilan komprehensif lain dan terakumulasi dalam ekuitas diakui dalam laba rugi.

On derecognition of financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss.

Dalam penghentian pengakuan aset keuangan terhadap satu bagian saja (misalnya ketika Grup masih memiliki hak untuk membeli kembali bagian aset yang ditransfer), Grup mengalokasikan jumlah tercatat sebelumnya dari aset keuangan tersebut pada bagian yang tetap diakui berdasarkan keterlibatan berkelanjutan dan bagian yang tidak lagi diakui berdasarkan nilai wajar relatif dari kedua bagian tersebut pada tanggal transfer. Selisih antara jumlah tercatat yang dialokasikan pada bagian yang tidak lagi diakui dan jumlah dari pembayaran yang diterima untuk bagian yang tidak lagi diakui dan setiap keuntungan atau kerugian kumulatif yang dialokasikan pada bagian yang tidak lagi diakui tersebut yang sebelumnya telah diakui dalam penghasilan komprehensif lain diakui pada laba rugi. Keuntungan dan kerugian kumulatif yang sebelumnya diakui dalam penghasilan komprehensif lain dialokasikan pada bagian yang tetap diakui dan bagian yang dihentikan pengakuannya, berdasarkan nilai wajar relatif kedua bagian tersebut.

On derecognition of financial asset other than its entirety (e.g., when the Group retains an option to repurchase part of a transferred asset), the Group allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts.





(Continued)

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h. Liabilitas Keuangan dan Instrumen Ekuitas h. Financial Liabilities and Equity Instruments

Liabilitas keuangan awalnya diukur sebesar nilai wajarnya. Biaya transaksi yang dapat diatribusikan secara langsung dengan perolehan atau penerbitan liabilitas keuangan (selain liabilitas keuangan yang diukur pada nilai wajar melalui laba rugi) ditambahkan atau dikurangkan dari nilai wajar liabilitas keuangan, yang sesuai, pada pengakuan awal. Biaya transaksi yang dapat diatribusikan secara langsung dengan perolehan liabilitas keuangan yang diukur pada nilai wajar melalui laba rugi langsung diakui dalam laba rugi.

Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial liabilities (other than financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Klasifikasi sebagai liabilitias atau ekuitas

Classification as debt or equity

Liabilitas keuangan dan instrumen ekuitas yang diterbitkan oleh Grup diklasifikasi sesuai dengan substansi perjanjian kontraktual dan definisi liabilitas keuangan dan instrumen ekuitas.

Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Instrumen ekuitas Equity instruments

Instrumen ekuitas adalah setiap kontrak yang memberikan hak residual atas aset Grup setelah dikurangi dengan seluruh liabilitasnya. Instrumen ekuitas yang diterbitkan oleh Grup dicatat sebesar hasil penerimaan bersih setelah dikurangi biaya penerbitan langsung.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.

Pembelian kembali instrumen ekuitas Perseroan (saham treasuri) diakui dan dikurangkan secara langsung dari ekuitas. Keuntungan dan kerugian yang timbul dari pembelian, penjualan, penerbitan atau pembatalan instrumen ekuitas Perseroan tersebut tidak diakui dalam laba rugi.

Repurchase of the Company’s own equity instruments (treasury shares) is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

Liabilitas keuangan Financial liabilities

Liabilitas keuangan diklasifikasikan sebagai biaya perolehan diamortisasi.

Financial liabilities are classified at amortized cost.

Liabilitas keuangan pada biaya perolehan diamortisasi

Financial liabilities at amortized cost

Liabilitas keuangan meliputi utang usaha dan lainnya, pinjaman bank, utang obligasi dan pinjaman lainnya, pada awalnya diukur pada nilai wajar, setelah dikurangi biaya transaksi, dan selanjutnya diukur pada biaya perolehan yang diamortisasi menggunakan metode suku bunga efektif.

Financial liabilities, which include trade and other payables, bank loans, bonds payable and other borrowings, are initially measured at fair value, net of transaction costs, and subsequently measured at amortized cost using the effective interest method.







(Continued)

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Metode suku bunga efektif Metode suku bunga efektif adalah metode yang digunakan untuk menghitung biaya perolehan diamortisasi dari liabilitas keuangan dan metode untuk mengalokasikan biaya bunga selama periode yang relevan. Suku bunga efektif adalah suku bunga yang secara tepat mendiskontokan estimasi pembayaran kas masa depan (mencakup seluruh komisi dan bentuk lain yang dibayarkan dan diterima oleh para pihak dalam kontrak yang merupakan bagian yang tak terpisahkan dari suku bunga efektif, biaya transaksi dan premium dan diskonto lainnya) selama perkiraan umur liabilitas keuangan, atau (jika lebih tepat) digunakan periode yang lebih singkat untuk memperoleh nilai tercatat bersih dari aset keuangan pada saat pengakuan awal.

Effective interest method The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period to the net carrying amount on initial recognition.

Penghentian pengakuan liabilitas keuangan Derecognition of financial liabilities

Grup menghentikan pengakuan liabilitas keuangan, jika dan hanya jika, liabilitas Grup telah dilepaskan, dibatalkan atau kadaluarsa. Selisih antara jumlah tercatat liabilitas keuangan yang dihentikan pengakuannya dan imbalan yang dibayarkan dan utang diakui dalam laba rugi.

The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expires. The difference between the carrying amounts of the financial liability and the consideration paid and payable is recognized in profit or loss.

i. Saling Hapus antar Aset Keuangan dan Liabilitas Keuangan

i. Netting of Financial Assets and Financial Liabilities

Aset keuangan dan liabilitas keuangan disalinghapuskan dan nilai netonya disajikan dalam laporan poisisi keuangan jika grup tersebut memiliki hak yang dapat dipaksakan secara hukum untuk melakukan saling hapus atas jumlah yang telah diakui; dan berintensi untuk menyelesaikan secara neto atau untuk merealisasikan aset dan menyelesaikan liabilitasnya secara simultan. Hak saling hapus harus ada pada saat ini dari pada bersifat kontinjen atas terjadinya suatu peristiwa di masa depan dan harus dieksekusi oleh pihak lawan, baik dalam situasi bisnis normal dan dalam peristiwa gagal bayar, peristiwa kepailitan atau kebangkrutan.

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when the group has a legally enforceable right to set off the recognized amounts; and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. A right to set-off must be available today rather than being contingent on a future event and must be exercisable by any of the counterparties, both in the normal course of business and in the event of default, insolvency or bankruptcy.

j. Kas dan Setara Kas

j. Cash and Cash Equivalents

Untuk tujuan penyajian arus kas, kas dan setara kas terdiri dari kas, bank dan semua investasi yang jatuh tempo dalam waktu tiga bulan atau kurang dari tanggal perolehannya dan yang tidak dijaminkan serta tidak dibatasi penggunaannya.

For cash flow presentation purposes, cash and cash equivalents consist of cash on hand and in banks and all unrestricted investments with maturities of three months or less from the date of placement.

k. Kas dan Setara Kas yang Dibatasi

Penggunaannya

k. Restricted Cash and Cash Equivalents

Kas dan setara kas yang ditempatkan sebagai margin deposito atas fasilitas letter of credit, dan jaminan utang bank disajikan sebagai ”Kas dan setara kas yang dibatasi penggunaannya.”

Cash and cash equivalents which are placed as margin deposits for letter of credit, and collateralized for bank loan facilities are classified as “Restricted cash and cash equivalents”.







(Continued)

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Metode suku bunga efektif Metode suku bunga efektif adalah metode yang digunakan untuk menghitung biaya perolehan diamortisasi dari liabilitas keuangan dan metode untuk mengalokasikan biaya bunga selama periode yang relevan. Suku bunga efektif adalah suku bunga yang secara tepat mendiskontokan estimasi pembayaran kas masa depan (mencakup seluruh komisi dan bentuk lain yang dibayarkan dan diterima oleh para pihak dalam kontrak yang merupakan bagian yang tak terpisahkan dari suku bunga efektif, biaya transaksi dan premium dan diskonto lainnya) selama perkiraan umur liabilitas keuangan, atau (jika lebih tepat) digunakan periode yang lebih singkat untuk memperoleh nilai tercatat bersih dari aset keuangan pada saat pengakuan awal.

Effective interest method The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period to the net carrying amount on initial recognition.

Penghentian pengakuan liabilitas keuangan Derecognition of financial liabilities

Grup menghentikan pengakuan liabilitas keuangan, jika dan hanya jika, liabilitas Grup telah dilepaskan, dibatalkan atau kadaluarsa. Selisih antara jumlah tercatat liabilitas keuangan yang dihentikan pengakuannya dan imbalan yang dibayarkan dan utang diakui dalam laba rugi.

The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expires. The difference between the carrying amounts of the financial liability and the consideration paid and payable is recognized in profit or loss.

i. Saling Hapus antar Aset Keuangan dan Liabilitas Keuangan

i. Netting of Financial Assets and Financial Liabilities

Aset keuangan dan liabilitas keuangan disalinghapuskan dan nilai netonya disajikan dalam laporan poisisi keuangan jika grup tersebut memiliki hak yang dapat dipaksakan secara hukum untuk melakukan saling hapus atas jumlah yang telah diakui; dan berintensi untuk menyelesaikan secara neto atau untuk merealisasikan aset dan menyelesaikan liabilitasnya secara simultan. Hak saling hapus harus ada pada saat ini dari pada bersifat kontinjen atas terjadinya suatu peristiwa di masa depan dan harus dieksekusi oleh pihak lawan, baik dalam situasi bisnis normal dan dalam peristiwa gagal bayar, peristiwa kepailitan atau kebangkrutan.

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when the group has a legally enforceable right to set off the recognized amounts; and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. A right to set-off must be available today rather than being contingent on a future event and must be exercisable by any of the counterparties, both in the normal course of business and in the event of default, insolvency or bankruptcy.

j. Kas dan Setara Kas

j. Cash and Cash Equivalents

Untuk tujuan penyajian arus kas, kas dan setara kas terdiri dari kas, bank dan semua investasi yang jatuh tempo dalam waktu tiga bulan atau kurang dari tanggal perolehannya dan yang tidak dijaminkan serta tidak dibatasi penggunaannya.

For cash flow presentation purposes, cash and cash equivalents consist of cash on hand and in banks and all unrestricted investments with maturities of three months or less from the date of placement.

k. Kas dan Setara Kas yang Dibatasi

Penggunaannya

k. Restricted Cash and Cash Equivalents

Kas dan setara kas yang ditempatkan sebagai margin deposito atas fasilitas letter of credit, dan jaminan utang bank disajikan sebagai ”Kas dan setara kas yang dibatasi penggunaannya.”

Cash and cash equivalents which are placed as margin deposits for letter of credit, and collateralized for bank loan facilities are classified as “Restricted cash and cash equivalents”.





(Continued)

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l. Investasi pada Entitas Asosiasi

l. Investments in Associates

Entitas asosiasi adalah suatu entitas dimana Grup mempunyai pengaruh yang signifikan. Pengaruh signifikan adalah kekuasaan untuk berpartipasi dalam keputusan kebijakan keuangan dan operasional investee tetapi tidak mengendalikan atau mengendalikan bersama atas kebijakan tersebut.

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

Penghasilan dan aset dan liabilitas dari entitas asosiasi dicatat dengan menggunakan metode ekuitas, kecuali ketika investasi diklasifikasikan sebagai dimiliki untuk dijual, sesuai dengan PSAK 58, Aset Tidak Lancar yang Dimiliki untuk Dijual dan Operasi yang Dihentikan. Dengan metode ekuitas, investasi pada entitas asosiasi diakui di laporan posisi keuangan konsolidasian sebesar biaya perolehan dan selanjutnya disesuaikan untuk perubahan dalam bagian kepemilikan Grup atas laba rugi dan penghasilan komprehensif lain dari entitas asosiasi yang terjadi setelah perolehan. Ketika bagian Grup atas kerugian entitas asosiasi melebihi kepentingan Grup pada entitas asosiasi (yang mencakup semua kepentingan jangka panjang, yang secara substansi, membentuk bagian dari investasi bersih Grup dalam entitas asosiasi), Grup menghentikan pengakuan bagiannya atas kerugian selanjutnya. Kerugian selanjutnya diakui hanya apabila Grup mempunyai kewajiban bersifat hukum atau konstruktif atau melakukan pembayaran atas nama entitas asosiasi.

The results of operations and assets and liabilities of associates using the equity method of accounting, except when the investment is classified as held for sale, in which case, it is accounted for in accordance with PSAK 58, Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, an investment in an associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. When the Group’s share of losses of an associate exceeds the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing it’s share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

Investasi pada entitas asosiasi dicatat dengan menggunakan metode ekuitas sejak tanggal saat investee menjadi entitas asosiasi. Setiap kelebihan biaya perolehan investasi atas bagian Grup atas nilai wajar bersih dari aset yang teridentifikasi, dan liabilitas entitas asosiasi yang diakui pada tanggal akuisisi, diakui sebagai goodwill. Goodwill termasuk dalam jumlah tercatat investasi, dan diuji penurunan nilai sebagai bagian dari investasi. Setiap kelebihan dari kepemilikan Grup dari nilai wajar bersih dari aset yang teridentifikasi dan liabilitas atas biaya perolehan investasi, sesudah pengujian kembali, segera diakui di dalam laba rugi pada periode diperolehnya investasinya.

An investment in associates is accounted for using the equity method from the date on which the investee becomes an associate. Any excess of the cost of acquisition over the Group’s share of the net fair value of identifiable assets and liabilities of the associate recognized at the date of acquisition, is recognized as goodwill. which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss in which the investment is acquired.

Persyaratan dalam PSAK 55 Instrumen Keuangan: Pengakuan dan Pengukuran, diterapkan untuk menentukan apakah perlu untuk mengakui setiap penurunan nilai sehubungan dengan investasi pada entitas asosiasi Grup. Jika perlu, jumlah tercatat investasi yang tersisa (termasuk goodwill) diuji penurunan nilai sesuai dengan PSAK 48, Penurunan Nilai Aset, sebagai suatu aset tunggal dengan membandingkan antara jumlah terpulihkan (mana yang lebih tinggi antara nilai pakai dan nilai wajar dikurangi biaya pelepasan) dengan jumlah tercatatnya. Rugi penurunan nilai diakui langsung pada nilai tercatat investasi.

The requirements of PSAK 55, Financial Instruments: Recognition and Measurement, are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with PSAK 48, Impairment of Assets, as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment.







(Continued)

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Setiap pembalikan dari penurunan nilai diakui sesuai dengan PSAK 48 (revisi 2014) sepanjang jumlah terpulihkan dari investasi tersebut kemudian meningkat.

Any reversal of that impairment loss is recognized in accordance with PSAK 48 (revised 2014) to the extent that the recoverable amount of the investment subsequently increases.

Grup menghentikan penggunaan metode ekuitas sejak tanggal saat investasinya berhenti menjadi investasi pada entitas asosiasi atau ketika investasi diklasifikasi sebagai dimiliki untuk dijual. Ketika Grup mempertahankan kepemilikan dalam entitas yang sebelumnya merupakan entitas asosiasi dan sisa investasi tersebut merupakan aset keuangan, Grup mengukur setiap sisa investasi pada nilai wajar pada tanggal tersebut dan nilai wajar tersebut dianggap sebagai nilai wajar pada saat pengakuan awal sesuai dengan PSAK 55. Group mengakui keuntungan dan kerugian atas pelepasan investasi asosiasi dalam laba rugi dengan turut memperhitungkan nilai wajar dari investasi yang tersisa. Selanjutnya, Grup mencatat seluruh jumlah yang sebelumnya telah diakui dalam penghasilan komprehensif lain yang terkait dengan entitas asosiasi tersebut dengan menggunakan dasar perlakuan yang sama dengan yang disyaratkan jika entitas asosiasi telah melepaskan secara langsung aset dan liabilitas yang terkait. Seluruh jumlah yang diakui dalam penghasilan komprehensif lain yang terkait dengan entitas asosiasi direklasifikasi ke laba rugi (sebagai penyesuaian reklasifikasi) pada saat penghentian metode ekuitas.

The Group discontinues the use of the equity method from the date when the investment ceases to be an associate, or when the investment is classified as held for sale. When the Group retains an interest in the former associate and the retained interest is a financial asset, the Group measures any retained investment at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with PSAK 55. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part of interest in the associate is included in the determination of the gain or loss on disposal of the associate or joint venture. In addition, the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued.

Grup melanjutkan penerapan metode ekuitas jika investasi pada entitas asosiasi menjadi investasi pada ventura bersama atau investasi pada ventura bersama menjadi investasi pada entitas asosiasi. Tidak terdapat pengukuran kembali ke nilai wajar pada saat perubahan kepentingan.

The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investmet in an associate. There is no remeasurement to fair value upon such changes in ownership interests.

Jika Grup mengurangi bagian kepemilikan pada entitas asosiasi tetapi Grup tetap menerapkan metode ekuitas, Grup mereklasifikasi ke laba rugi proporsi keuntungan atau kerugian yang telah diakui sebelumnya dalam penghasilan komprehensif lain yang terkait dengan pengurangan bagian kepemilikan (jika keuntungan atau kerugian tersebut akan direklasifikasi ke laba rugi atas pelepasan aset atau liabilitas yang terkait.)

When the group reduces its ownership interest in an associate but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest (if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities).

Ketika Grup melakukan transaksi dengan entitas asosiasi, keuntungan dan kerugian yang timbul dari transaksi dengan entitas asosiasi diakui dalam laporan keuangan konsolidasian Grup hanya sebesar kepemilikan dalam entitas asosiasi yang tidak terkait dengan Grup.

When a group entity transacts with an associate, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of its interest in the associate that are not related to the Group.







(Continued)

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Setiap pembalikan dari penurunan nilai diakui sesuai dengan PSAK 48 (revisi 2014) sepanjang jumlah terpulihkan dari investasi tersebut kemudian meningkat.

Any reversal of that impairment loss is recognized in accordance with PSAK 48 (revised 2014) to the extent that the recoverable amount of the investment subsequently increases.

Grup menghentikan penggunaan metode ekuitas sejak tanggal saat investasinya berhenti menjadi investasi pada entitas asosiasi atau ketika investasi diklasifikasi sebagai dimiliki untuk dijual. Ketika Grup mempertahankan kepemilikan dalam entitas yang sebelumnya merupakan entitas asosiasi dan sisa investasi tersebut merupakan aset keuangan, Grup mengukur setiap sisa investasi pada nilai wajar pada tanggal tersebut dan nilai wajar tersebut dianggap sebagai nilai wajar pada saat pengakuan awal sesuai dengan PSAK 55. Group mengakui keuntungan dan kerugian atas pelepasan investasi asosiasi dalam laba rugi dengan turut memperhitungkan nilai wajar dari investasi yang tersisa. Selanjutnya, Grup mencatat seluruh jumlah yang sebelumnya telah diakui dalam penghasilan komprehensif lain yang terkait dengan entitas asosiasi tersebut dengan menggunakan dasar perlakuan yang sama dengan yang disyaratkan jika entitas asosiasi telah melepaskan secara langsung aset dan liabilitas yang terkait. Seluruh jumlah yang diakui dalam penghasilan komprehensif lain yang terkait dengan entitas asosiasi direklasifikasi ke laba rugi (sebagai penyesuaian reklasifikasi) pada saat penghentian metode ekuitas.

The Group discontinues the use of the equity method from the date when the investment ceases to be an associate, or when the investment is classified as held for sale. When the Group retains an interest in the former associate and the retained interest is a financial asset, the Group measures any retained investment at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with PSAK 55. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part of interest in the associate is included in the determination of the gain or loss on disposal of the associate or joint venture. In addition, the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued.

Grup melanjutkan penerapan metode ekuitas jika investasi pada entitas asosiasi menjadi investasi pada ventura bersama atau investasi pada ventura bersama menjadi investasi pada entitas asosiasi. Tidak terdapat pengukuran kembali ke nilai wajar pada saat perubahan kepentingan.

The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investmet in an associate. There is no remeasurement to fair value upon such changes in ownership interests.

Jika Grup mengurangi bagian kepemilikan pada entitas asosiasi tetapi Grup tetap menerapkan metode ekuitas, Grup mereklasifikasi ke laba rugi proporsi keuntungan atau kerugian yang telah diakui sebelumnya dalam penghasilan komprehensif lain yang terkait dengan pengurangan bagian kepemilikan (jika keuntungan atau kerugian tersebut akan direklasifikasi ke laba rugi atas pelepasan aset atau liabilitas yang terkait.)

When the group reduces its ownership interest in an associate but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest (if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities).

Ketika Grup melakukan transaksi dengan entitas asosiasi, keuntungan dan kerugian yang timbul dari transaksi dengan entitas asosiasi diakui dalam laporan keuangan konsolidasian Grup hanya sebesar kepemilikan dalam entitas asosiasi yang tidak terkait dengan Grup.

When a group entity transacts with an associate, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of its interest in the associate that are not related to the Group.





(Continued)

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m. Persediaan

m. Inventories

Persediaan dinyatakan berdasarkan biaya perolehan atau nilai realisasi bersih, mana yang lebih rendah. Biaya perolehan ditentukan dengan metode rata-rata tertimbang untuk barang jadi dan barang dalam proses serta metode rata-rata bergerak untuk bahan baku, penolong dan suku cadang. Harga perolehan barang jadi dan barang dalam proses terdiri dari biaya bahan baku, tenaga kerja langsung, biaya-biaya langsung lainnya dan biaya overhead yang dinyatakan sebesar nilai yang terkait dengan produksi. Nilai realisasi bersih adalah taksiran harga jual dalam kegiatan usaha normal dikurangi taksiran biaya penyelesaian dan taksiran biaya yang diperlukan untuk melakukan penjualan.

Inventories are stated at cost or net realizable value, whichever is lower. Cost is determined using the weighted average method for finished goods and work-in-progress and using the moving average method for raw and indirect materials and spare parts. The cost of finished goods and work-in-progress comprises of raw and indirect materials, direct labor, other direct costs and related production overheads. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated selling cost necessary to make the sale.

Cadangan persediaan usang dan bergerak lambat dihitung setelah dikurangi persediaan pengaman.

The allowance for obsolete and slow moving inventories is calculated after deducting safety stock.

n. Beban Dibayar Dimuka

n. Prepaid Expenses

Beban dibayar dimuka diamortisasi selama manfaat masing-masing beban dengan menggunakan metode garis lurus.

Prepaid expenses are amortized over their beneficial periods using the straight-line method.

o. Properti Investasi

o. Investment Properties

Properti investasi adalah properti (tanah atau bangunan atau bagian dari suatu bangunan atau kedua-duanya atau prasarana) yang dikuasai entitas anak (KIG dan SP) untuk menghasilkan rental atau untuk kenaikan nilai atau keduanya. Properti investasi diukur sebesar nilai perolehan setelah dikurangi akumulasi penyusutan dan akumulasi kerugian penurunan nilai.

Investment properties are properties (land or a building – or part of a building – or both or infrastructures) which are held by subsidiaries (KIG and SP) to earn rentals or for capital appreciation or both. Investment properties are measured at cost less accumulated depreciation and any accumulated impairment losses.

Penyusutan bangunan dan prasarana dihitung dengan menggunakan metode garis lurus berdasarkan taksiran masa manfaat ekonomis aset antara 10 sampai 30 tahun.

Depreciation of buildings and infrastructure is computed using the straight-line method based on the estimated useful life of the assets for 10 to 30 years.

Tanah dinyatakan berdasarkan biaya perolehan dan tidak disusutkan.

Land is stated at cost and is not depreciated.

Masa manfaat ekonomis, nilai residu dan nilai penyusutan direviu setiap akhir tahun dan pengaruh dari perubahan estimasi tersebut berlaku prospektif.

The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimated accounted for on a prospective basis.

Properti investasi mencakup juga properti dalam proses pembangunan dan akan digunakan sebagai properti investasi setelah selesai. Akumulasi biaya perolehan dan biaya pembangunan (termasuk biaya pinjaman yang terjadi) diamortisasi pada saat selesai dan siap untuk digunakan.

Investment property includes properties in the process of development and will be used as investment property after completion. Accumulated acquisition and development costs (including borrowing costs incurred) are amortized when completed and ready for use.







(Continued)

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Properti investasi dihentikan pengakuannya pada saat dilepaskan atau ketika properti investasi tidak digunakan lagi secara permanen dan tidak memiliki manfaat ekonomi masa depan yang diharapkan dari pelepasannya. Keuntungan atau kerugian yang timbul dari penghentian atau pelepasan properti investasi ditentukan dari selisih antara hasil neto pelepasan dan jumlah tercatat aset dan diakui dalam laba rugi pada periode terjadinya penghentian atau pelepasan.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.

Transfer ke properti investasi dilakukan jika, dan hanya jika, terdapat perubahan penggunaan yang ditunjukkan dengan berakhirnya pemakaian oleh pemilik, dimulainya sewa operasi ke pihak lain. Transfer dari properti investasi dilakukan jika, dan hanya jika, terdapat perubahan penggunaan yang ditunjukkan dengan dimulainya penggunaan oleh pemilik atau dimulainya pengembangan untuk dijual.

Transfers are made to investment properties when, and only when, there is a change in use, evidenced by the end of owner occupation, commencement of an operating lease with another party. Transfers are made from investment properties when, and only when, there is a change in use, evidenced by commencement of owner occupation or commencement of development with a view to sale.

p. Aset Tetap p. Fixed Assets

Aset tetap yang dimiliki untuk digunakan dalam produksi atau penyediaan barang atau jasa atau untuk tujuan administratif dicatat berdasarkan biaya perolehan setelah dikurangi akumulasi penyusutan dan akumulasi kerugian penurunan nilai. Biaya perolehan termasuk biaya penggantian bagian aset tetap saat biaya tersebut terjadi, jika memenuhi kriteria pengakuan. Biaya perolehan juga termasuk estimasi biaya pembongkaran, dan pemindahan aset tetap, dan restorasi lokasi aset.

Fixed assets held for use in the production or supply of goods or services, or for administrative purposes, are stated at cost, less accumulated depreciation and any accumulated impairment losses. Such cost includes the cost of replacing part of the fixed assets when that cost is incurred, if the recognition criteria are met. Such cost also includes estimated costs of dismantling and removing of the item and restoring the site on which the asset is located.

Biaya legal untuk mendapatkan hak atas tanah ketika tanah diperoleh pertama kali diakui sebagai bagian dari harga perolehan tanah.

Legal costs to obtain land rights when land was first acquired is recognized as part of the cost of land.

Suku cadang utama dan peralatan siap pakai diklasifikasikan sebagai aset tetap bila diperkirakan akan digunakan dalam operasi selama lebih dari satu tahun.

Major spare parts and stand-by equipment are classified as fixed assets when they are expected to be used in operations during more than one year.

Penyusutan (selain tanah dan tanah pertambangan) diakui menggunakan metode garis lurus setelah memperhitungkan nilai residu berdasarkan taksiran masa manfaat ekonomis aset tetap sebagai berikut:

Depreciation (except for land and mining properties) using the straight-line method after calculating the residual value based on the estimated useful lives of the assets as follows:

Tahun/

Years

Bangunan, jalan, jembatan dan pelabuhan 15 – 50 Buildings, roads, bridges and harbors Mesin-mesin 2 – 50 Machineries Alat-alat berat dan kendaraan 4 – 30 Heavy equipment and vehicles Perlengkapan dan peralatan kantor 2 – 8 Furniture and office equipment







(Continued)

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Properti investasi dihentikan pengakuannya pada saat dilepaskan atau ketika properti investasi tidak digunakan lagi secara permanen dan tidak memiliki manfaat ekonomi masa depan yang diharapkan dari pelepasannya. Keuntungan atau kerugian yang timbul dari penghentian atau pelepasan properti investasi ditentukan dari selisih antara hasil neto pelepasan dan jumlah tercatat aset dan diakui dalam laba rugi pada periode terjadinya penghentian atau pelepasan.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.

Transfer ke properti investasi dilakukan jika, dan hanya jika, terdapat perubahan penggunaan yang ditunjukkan dengan berakhirnya pemakaian oleh pemilik, dimulainya sewa operasi ke pihak lain. Transfer dari properti investasi dilakukan jika, dan hanya jika, terdapat perubahan penggunaan yang ditunjukkan dengan dimulainya penggunaan oleh pemilik atau dimulainya pengembangan untuk dijual.

Transfers are made to investment properties when, and only when, there is a change in use, evidenced by the end of owner occupation, commencement of an operating lease with another party. Transfers are made from investment properties when, and only when, there is a change in use, evidenced by commencement of owner occupation or commencement of development with a view to sale.

p. Aset Tetap p. Fixed Assets

Aset tetap yang dimiliki untuk digunakan dalam produksi atau penyediaan barang atau jasa atau untuk tujuan administratif dicatat berdasarkan biaya perolehan setelah dikurangi akumulasi penyusutan dan akumulasi kerugian penurunan nilai. Biaya perolehan termasuk biaya penggantian bagian aset tetap saat biaya tersebut terjadi, jika memenuhi kriteria pengakuan. Biaya perolehan juga termasuk estimasi biaya pembongkaran, dan pemindahan aset tetap, dan restorasi lokasi aset.

Fixed assets held for use in the production or supply of goods or services, or for administrative purposes, are stated at cost, less accumulated depreciation and any accumulated impairment losses. Such cost includes the cost of replacing part of the fixed assets when that cost is incurred, if the recognition criteria are met. Such cost also includes estimated costs of dismantling and removing of the item and restoring the site on which the asset is located.

Biaya legal untuk mendapatkan hak atas tanah ketika tanah diperoleh pertama kali diakui sebagai bagian dari harga perolehan tanah.

Legal costs to obtain land rights when land was first acquired is recognized as part of the cost of land.

Suku cadang utama dan peralatan siap pakai diklasifikasikan sebagai aset tetap bila diperkirakan akan digunakan dalam operasi selama lebih dari satu tahun.

Major spare parts and stand-by equipment are classified as fixed assets when they are expected to be used in operations during more than one year.

Penyusutan (selain tanah dan tanah pertambangan) diakui menggunakan metode garis lurus setelah memperhitungkan nilai residu berdasarkan taksiran masa manfaat ekonomis aset tetap sebagai berikut:

Depreciation (except for land and mining properties) using the straight-line method after calculating the residual value based on the estimated useful lives of the assets as follows:

Tahun/

Years

Bangunan, jalan, jembatan dan pelabuhan 15 – 50 Buildings, roads, bridges and harbors Mesin-mesin 2 – 50 Machineries Alat-alat berat dan kendaraan 4 – 30 Heavy equipment and vehicles Perlengkapan dan peralatan kantor 2 – 8 Furniture and office equipment





(Continued)

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Masa manfaat ekonomis, nilai residu dan metode penyusutan direviu setiap akhir tahun dan pengaruh dari setiap perubahan estimasi tersebut berlaku prospektif.

The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis.

Pada tahun 2018, Perusahaan mengubah umur masa manfaat untuk jenis bangunan, jalan, jembatan dan pelabuhan dari 15 – 40 tahun menjadi 15 – 50 tahun dan aset mesin-mesin dari 2 - 30 tahun menjadi 2 - 50 tahun. Perubahan telah diterapkan secara prospektif sesuai dengan PSAK No. 25 (Revisi 2009) “Kebjiakan Akuntansi, Perubahan Estimasi Akuntansi dan Kesalahan”.

In 2018, the Company changed the estimated useful life of buildings, roads, bridges and harbors from 15 – 40 years to 15 - 50 years and machineries from 2 - 30 years to 2 - 50 years. The changes have been applied prospectively in accordance with PSAK No. 25 (Revised 2009) “Accounting Policies, Changes in Accounting Estimates and Error”.

Tanah pertambangan dideplesi dengan menggunakan metode unit produksi berdasarkan estimasi cadangan.

Mining properties are depleted using the unit of production method based on estimated reserves.

Tanah dinyatakan berdasarkan biaya perolehannya dan tidak disusutkan.

Land is stated at cost and is not depreciated.

Aset tetap dihentikan pengakuannya pada saat pelepasan atau ketika tidak ada manfaat ekonomik masa depan yang diharapkan timbul dari penggunaan aset secara berkelanjutan. Keuntungan atau kerugian yang timbul dari pelepasan atau penghentian pengakuan suatu aset tetap ditentukan sebagai selisih antara hasil penjualan dan nilai tercatat aset dan diakui dalam laba rugi.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

Biaya konstruksi bangunan, jalan, jembatan, pelabuhan, pembangkit tenaga listrik dan pabrik semen serta pemasangan mesin dikapitalisasi sebagai aset dalam pembangunan. Biaya bunga dan biaya pinjaman lain, seperti pinjaman yang digunakan untuk mendanai proses pembangunan aset tertentu, dikapitalisasi sampai dengan saat proses pembangunan tersebut selesai. Biaya-biaya ini direklasifikasi ke akun aset tetap pada saat proses konstruksi atau pemasangan selesai. Penyusutan aset dimulai pada saat aset tersebut siap untuk digunakan, yaitu pada saat aset tersebut berada pada lokasi dan kondisi yang diinginkan agar aset siap digunakan sesuai dengan keinginan dan maksud manajemen. Biaya perolehan atas aset dalam pembangunan termasuk transfer keuntungan dan kerugian selisih kurs atas lindung nilai arus kas berkaitan dengan pengadaan aset tersebut.

The costs of the construction of buildings, roads, bridges, harbors, power and cement plants and the installation of machinery are capitalized as construction in progress. Interest and other borrowing costs, such as fees on loans used in financing the construction of a qualifying asset, are capitalized up to the date when the construction is completed. These costs are reclassified into fixed asset accounts when the construction or installation is complete. Depreciation of an asset begins when it is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The costs of construction in progress include the transfer of foreign exchange gains and losses on qualifying cash flow hedges for the acquisition of assets.

Beban pemeliharaan dan perbaikan dibebankan pada laba rugi pada saat terjadinya. Biaya-biaya lain yang terjadi selanjutnya yang timbul untuk menambah, mengganti atau memperbaiki aset tetap dicatat sebagai biaya perolehan aset jika dan hanya jika besar kemungkinan manfaat ekonomis di masa depan berkenaan dengan aset tersebut akan mengalir ke entitas dan biaya perolehan aset dapat diukur secara andal.

The cost of maintenance and repairs is charged to profit or loss as incurred. Other costs incurred subsequently to add to, replace part of, or service an item of property, plant and equipment, are recognized as asset if, and only if it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.







(Continued)

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q. Aset Takberwujud q. Intangible Assets i. Merk dan Lisensi i. Trademarks and Licenses

Merk dan lisensi memiliki masa manfaat yang terbatas dan dicatat sebesar harga perolehan dikurangi akumulasi amortisasi dan akumulasi kerugian penurunan nilai. Jika merk dan lisensi yang diperoleh sebagai bagian dari kombinasi bisnis, maka biaya perolehannya adalah nilai wajar pada tanggal akuisisi. Amortisasi dihitung dengan menggunakan metode garis lurus untuk mengalokasikan harga perolehan merk dan lisensi selama estimasi masa manfaatnya masing-masing 10 tahun dan 40 tahun.

Trademarks and licenses have a limited useful life and are recorded at acquisition cost less accumulated amortization and accumulated impairment losses. If the trademarks and licenses are obtained as part of a business combination, the acquisition cost is the fair value at the date of acquisition. Amortization is calculated using the straight-line method to allocate the acquisition cost of trademarks and licenses over their estimated useful lives of 10 and 40 years, respectively.

ii. Piranti Lunak Komputer ii. Computer Software

Biaya pengembangan yang dapat secara langsung diatribusikan kepada disain dan pengujian produk piranti lunak yang dapat diidentifikasi dan unik yang dikendalikan oleh Grup diakui sebagai aset takberwujud dan diamortisasi selama estimasi masa manfaat, yang tidak lebih dari lima tahun.

Development cost that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group is recognized as intangible assets and amortized over their estimated useful lives, which does not exceed five years.

Biaya yang dapat diatribusikan secara langsung dikapitalisasi sebagai bagian produk piranti lunak mencakup beban pekerja pengembang piranti lunak dan bagian overhead yang relevan.

Directly attributable costs that are capitalized as part of the software product include the software development employee costs and an appropriate portion of relevant overheads.

Pengeluaran pengembangan yang lain yang tidak memenuhi kriteria ini diakui sebagai beban pada saat terjadinya. Biaya pengembangan yang sebelumnya diakui sebagai beban tidak dapat diakui sebagai aset pada periode berikutnya.

Other development expenditures that do not meet these criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period.

Biaya yang terkait dengan pemeliharaan program piranti lunak komputer diakui sebagai beban pada saat terjadinya.

Cost associated with maintaining computer software programs are recognized as an expense as incurred.

iii. Hubungan Pelanggan

Hubungan pelanggan diperoleh sebagai bagian dari kombinasi bisnis, dan diakui pada nilai wajar pada tanggal akuisisi dikurangi akumulasi amortisasi dan akumulasi kerugian penurunan nilai. Amortisasi dihitung dengan menggunakan metode garis lurus untuk mengalokasikan biaya perolehan hubungan pelanggan selama estimasi masa manfaatnya 33 tahun.

iii. Customer Relationships Customer relationship acquired in a business combination are recognized at fair value at the acquisition date less accumulated amortization and any accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost of customer relationship over their estimated usefull lives of 33 years.

iv. Perpanjangan Hak atas Tanah

iv. Renewal of Land Rights

Biaya legal pengurusan hak atas tanah pada saat perolehan tanah tersebut diakui sebagai bagian dari biaya perolehan tanah aset tetap dan properti investasi.

The legal cost of land rights upon acquisition of the land is recognized as part of the cost of land under property, plant and equipment and investment property.







(Continued)

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q. Aset Takberwujud q. Intangible Assets i. Merk dan Lisensi i. Trademarks and Licenses

Merk dan lisensi memiliki masa manfaat yang terbatas dan dicatat sebesar harga perolehan dikurangi akumulasi amortisasi dan akumulasi kerugian penurunan nilai. Jika merk dan lisensi yang diperoleh sebagai bagian dari kombinasi bisnis, maka biaya perolehannya adalah nilai wajar pada tanggal akuisisi. Amortisasi dihitung dengan menggunakan metode garis lurus untuk mengalokasikan harga perolehan merk dan lisensi selama estimasi masa manfaatnya masing-masing 10 tahun dan 40 tahun.

Trademarks and licenses have a limited useful life and are recorded at acquisition cost less accumulated amortization and accumulated impairment losses. If the trademarks and licenses are obtained as part of a business combination, the acquisition cost is the fair value at the date of acquisition. Amortization is calculated using the straight-line method to allocate the acquisition cost of trademarks and licenses over their estimated useful lives of 10 and 40 years, respectively.

ii. Piranti Lunak Komputer ii. Computer Software

Biaya pengembangan yang dapat secara langsung diatribusikan kepada disain dan pengujian produk piranti lunak yang dapat diidentifikasi dan unik yang dikendalikan oleh Grup diakui sebagai aset takberwujud dan diamortisasi selama estimasi masa manfaat, yang tidak lebih dari lima tahun.

Development cost that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group is recognized as intangible assets and amortized over their estimated useful lives, which does not exceed five years.

Biaya yang dapat diatribusikan secara langsung dikapitalisasi sebagai bagian produk piranti lunak mencakup beban pekerja pengembang piranti lunak dan bagian overhead yang relevan.

Directly attributable costs that are capitalized as part of the software product include the software development employee costs and an appropriate portion of relevant overheads.

Pengeluaran pengembangan yang lain yang tidak memenuhi kriteria ini diakui sebagai beban pada saat terjadinya. Biaya pengembangan yang sebelumnya diakui sebagai beban tidak dapat diakui sebagai aset pada periode berikutnya.

Other development expenditures that do not meet these criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period.

Biaya yang terkait dengan pemeliharaan program piranti lunak komputer diakui sebagai beban pada saat terjadinya.

Cost associated with maintaining computer software programs are recognized as an expense as incurred.

iii. Hubungan Pelanggan

Hubungan pelanggan diperoleh sebagai bagian dari kombinasi bisnis, dan diakui pada nilai wajar pada tanggal akuisisi dikurangi akumulasi amortisasi dan akumulasi kerugian penurunan nilai. Amortisasi dihitung dengan menggunakan metode garis lurus untuk mengalokasikan biaya perolehan hubungan pelanggan selama estimasi masa manfaatnya 33 tahun.

iii. Customer Relationships Customer relationship acquired in a business combination are recognized at fair value at the acquisition date less accumulated amortization and any accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost of customer relationship over their estimated usefull lives of 33 years.

iv. Perpanjangan Hak atas Tanah

iv. Renewal of Land Rights

Biaya legal pengurusan hak atas tanah pada saat perolehan tanah tersebut diakui sebagai bagian dari biaya perolehan tanah aset tetap dan properti investasi.

The legal cost of land rights upon acquisition of the land is recognized as part of the cost of land under property, plant and equipment and investment property.





(Continued)

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Biaya pembaruan atau pengurusan perpanjangan hak atas tanah diakui sebagai aset takberwujud dan diamortisasi selama periode hak atas tanah sebagaimana tercantum dalam kontrak atau umur ekonomis aset, mana yang lebih pendek.

The cost of renewal or extension of legal rights on land is recognized as an intangible asset and amortized over the period of land rights as stated in the contract or economic life of the asset, whichever is shorter.

Aset takberwujud yang melekat pada suatu komponen fisik dan bukan merupakan bagian yang signifikan dari suatu aset fisik, diakui sebagai bagian dari aset berwujud dan diperlakukan sebagai aset tetap.

Intangible assets embedded to a physical component and are not a significant part of a physical asset, is recognized as part of the tangible asset and treated as fixed assets.

Umur manfaat suatu aset takberwujud yang timbul dari hak kontraktual atau hak hukum lainnya tidak boleh melebihi periode hak kontraktual atau hak hukum lainnya tersebut. Akan tetapi, jika hak kontraktual atau hak hukum lainnya tersebut dapat diperbaharui, maka umur manfaat mencakup periode yang diperbaharui, hanya jika terdapat bukti yang mendukung pembaruan yang dilakukan oleh entitas tanpa biaya yang signifikan.

Useful life of an intangible asset incurred from contractual rights or other legal rights shall not exceed the period of contractual rights or other legal rights. However, if the contractual rights or other legal rights can be renewed, the useful life includes a renewed period, only if there is an evidence to support renewal by the entity without significant cost.

Suatu aset takberwujud dihentikan pengakuannya pada saat dilepaskan atau ketika tidak ada lagi manfaat masa depan yang diharapkan dari penggunaan atau pelepasannya.

An intangible asset is derecognized upon disposal or when no future benefits are expected from its use or disposal.

Laba atau rugi yang timbul dari penghentian pengakuan aset (dihitung sebagai perbedaan antara jumlah neto hasil pelepasan dan jumlah tercatat dari aset) diakui dalam laba rugi pada tahun aset tersebut dihentikan pengakuannya.

Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in profit or loss in the year in which the asset is derecognized.

r. Goodwill r. Goodwill

Goodwill timbul atas akuisisi dari suatu bisnis dicatat pada biaya perolehan yang ditetapkan pada tanggal akuisisi bisnis tersebut (lihat Catatan 3.d di atas) dikurangi akumulasi penurunan nilai, jika ada.

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business (see Note 3.d above) less accumulated impairment losses, if any.

Untuk tujuan uji penurunan nilai, goodwill dialokasikan pada setiap unit penghasil kas dari Grup (atau kelompok unit penghasil kas) yang diperkirakan memberikan manfaat dari sinergi kombinasi bisnis tersebut. Unit penghasil kas yang telah memperoleh alokasi goodwill diuji penurunan nilainya setiap tahun, atau lebih sering jika terdapat indikasi bahwa unit penghasil kas tersebut mungkin mengalami penurunan nilai. Jika jumlah terpulihkan dari unit penghasil kas kurang dari jumlah tercatatnya, rugi penurunan nilai dialokasikan pertama kali untuk mengurangi jumlah tercatat atas setiap goodwill yang dialokasikan pada unit penghasil kas dan kemudian ke aset lain dari unit penghasil kas secara prorata berdasarkan jumlah tercatat dari setiap aset dalam unit penghasil kas tersebut. Setiap kerugian penurunan nilai goodwill diakui secara langsung dalam laba rugi pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Rugi penurunan nilai yang diakui atas goodwill tidak dapat dibalik pada periode berikutnya.

For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (or group of cash-generating units) expected to benefit from the synergies of the combination. A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognized directly in profit or loss in the consolidated statement of profit or loss and other comprehensive income. An impairment loss recognized for goodwill is not reversed in subsequent periods.







(Continued)

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Pada pelepasan unit penghasil kas yang relevan, jumlah yang dapat diatribusikan dari goodwill termasuk dalam penentuan laba rugi atas pelepasan.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

Kebijakan Grup atas goodwill yang timbul dari akuisisi entitas asosiasi dan ventura bersama dijelaskan pada Catatan 3l.

The Group’s policy for goodwill arising on the acquisition of an associate and joint venture is described in Note 3l.

s. Penurunan Nilai Aset Non-Keuangan kecuali

Goodwill s. Impairment of Non-Financial Assets Except

Goodwill Pada setiap akhir periode pelaporan, Grup menelaah nilai tercatat aset non-keuangan untuk menentukan apakah terdapat indikasi bahwa aset tersebut telah mengalami penurunan nilai. Jika terdapat indikasi tersebut, jumlah terpulihkan dari aset diestimasi untuk menentukan tingkat kerugian penurunan nilai (jika ada). Bila tidak memungkinkan untuk mengestimasi nilai yang dapat diperoleh kembali atas suatu aset individu, Grup mengestimasi nilai yang dapat diperoleh kembali dari unit penghasil kas atas aset.

At the end of each reporting period, the Group reviews the carrying amount of non-financial assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash generating unit to which the asset belongs.

Estimasi jumlah terpulihkan adalah nilai tertinggi antara nilai wajar dikurangi biaya pelepasan dan nilai pakai. Dalam menilai nilai pakai, estimasi arus kas masa depan didiskontokan ke nilai kini menggunakan tingkat diskonto sebelum pajak yang menggambarkan penilaian pasar kini dari nilai waktu uang dan risiko spesifik atas aset yang mana estimasi arus kas masa depan belum disesuaikan.

Estimated recoverable amount is the higher of fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

Jika jumlah terpulihkan dari aset non-keuangan (unit penghasil kas) kurang dari nilai tercatatnya, nilai tercatat aset (unit penghasil kas) dikurangi menjadi sebesar jumlah terpulihkan dan rugi penurunan nilai segera diakui dalam laba rugi.

If the recoverable amount of the non-financial asset (cash generating unit) is less than its carrying amount, the carrying amount of the asset (cash generating unit) is reduced to its recoverable amount and an impairment loss is recognized immediately to profit or loss.

Ketika penurunan nilai selanjutnya dibalik, jumlah tercatat aset (atau unit penghasil kas) ditingkatkan ke estimasi yang direvisi dari jumlah terpulihkannya, namun kenaikan jumlah tercatat tidak boleh melebihi jumlah tercatat ketika kerugian penurunan nilai tidak diakui untuk aset (atau unit penghasil kas) pada tahun-tahun sebelumnya. Pembalikan rugi penurunan nilai diakui segera dalam laba rugi.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

Kebijakan akuntansi untuk penurunan nilai aset keuangan dijelaskan dalam Catatan 3g; penurunan nilai untuk goodwill dijelaskan dalam Catatan 3r.

Accounting policy for impairment of financial assets is discussed in Note 3g; while impairment for goodwill is discussed in Note 3r.







(Continued)

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Pada pelepasan unit penghasil kas yang relevan, jumlah yang dapat diatribusikan dari goodwill termasuk dalam penentuan laba rugi atas pelepasan.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

Kebijakan Grup atas goodwill yang timbul dari akuisisi entitas asosiasi dan ventura bersama dijelaskan pada Catatan 3l.

The Group’s policy for goodwill arising on the acquisition of an associate and joint venture is described in Note 3l.

s. Penurunan Nilai Aset Non-Keuangan kecuali

Goodwill s. Impairment of Non-Financial Assets Except

Goodwill Pada setiap akhir periode pelaporan, Grup menelaah nilai tercatat aset non-keuangan untuk menentukan apakah terdapat indikasi bahwa aset tersebut telah mengalami penurunan nilai. Jika terdapat indikasi tersebut, jumlah terpulihkan dari aset diestimasi untuk menentukan tingkat kerugian penurunan nilai (jika ada). Bila tidak memungkinkan untuk mengestimasi nilai yang dapat diperoleh kembali atas suatu aset individu, Grup mengestimasi nilai yang dapat diperoleh kembali dari unit penghasil kas atas aset.

At the end of each reporting period, the Group reviews the carrying amount of non-financial assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash generating unit to which the asset belongs.

Estimasi jumlah terpulihkan adalah nilai tertinggi antara nilai wajar dikurangi biaya pelepasan dan nilai pakai. Dalam menilai nilai pakai, estimasi arus kas masa depan didiskontokan ke nilai kini menggunakan tingkat diskonto sebelum pajak yang menggambarkan penilaian pasar kini dari nilai waktu uang dan risiko spesifik atas aset yang mana estimasi arus kas masa depan belum disesuaikan.

Estimated recoverable amount is the higher of fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

Jika jumlah terpulihkan dari aset non-keuangan (unit penghasil kas) kurang dari nilai tercatatnya, nilai tercatat aset (unit penghasil kas) dikurangi menjadi sebesar jumlah terpulihkan dan rugi penurunan nilai segera diakui dalam laba rugi.

If the recoverable amount of the non-financial asset (cash generating unit) is less than its carrying amount, the carrying amount of the asset (cash generating unit) is reduced to its recoverable amount and an impairment loss is recognized immediately to profit or loss.

Ketika penurunan nilai selanjutnya dibalik, jumlah tercatat aset (atau unit penghasil kas) ditingkatkan ke estimasi yang direvisi dari jumlah terpulihkannya, namun kenaikan jumlah tercatat tidak boleh melebihi jumlah tercatat ketika kerugian penurunan nilai tidak diakui untuk aset (atau unit penghasil kas) pada tahun-tahun sebelumnya. Pembalikan rugi penurunan nilai diakui segera dalam laba rugi.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

Kebijakan akuntansi untuk penurunan nilai aset keuangan dijelaskan dalam Catatan 3g; penurunan nilai untuk goodwill dijelaskan dalam Catatan 3r.

Accounting policy for impairment of financial assets is discussed in Note 3g; while impairment for goodwill is discussed in Note 3r.





(Continued)

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t. Sewa t. Leases Sewa diklasifikasikan sebagai sewa pembiayaan jika sewa tersebut mengalihkan secara substansial seluruh risiko dan manfaat yang terkait dengan kepemilikan aset. Sewa lainnya, yang tidak memenuhi kriteria tersebut, diklasifikasikan sebagai sewa operasi.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Sebagai lessor As lessor Pendapatan sewa dari sewa operasi diakui sebagai pendapatan dengan dasar garis lurus selama masa sewa. Biaya langsung awal yang terjadi dalam proses negosiasi dan pengaturan sewa operasi ditambahkan dalam jumlah tercatat aset sewaan dan diakui dengan dasar garis lurus selama masa sewa.

Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight-line basis over the lease term.

Sebagai lessee As lessee Aset pada sewa pembiayaan dicatat pada awal masa sewa sebesar nilai wajar aset sewaan Grup yang ditentukan pada awal kontrak atau, jika lebih rendah, sebesar nilai kini dari pembayaran sewa minimum. Liabilitas kepada lessor disajikan di dalam laporan posisi keuangan konsolidasian sebagai liabilitas sewa pembiayaan.

Assets held under finance leases are initially recognized as assets of the Group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the consolidated statements of financial position as a finance lease obligations.

Aset sewa pembiayaan disusutkan berdasarkan taksiran masa manfaat ekonomis yang sama dengan aset yang dimiliki sendiri atau disusutkan selama jangka waktu yang lebih pendek antara periode masa sewa dan umur manfaatnya.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or where shorter, the term of the relevant lease.

Pembayaran sewa dipisahkan antara bagian yang merupakan beban keuangan dan bagian yang merupakan pelunasan kewajiban sewa. Beban keuangan dialokasikan pada setiap periode selama masa sewa, sehingga menghasilkan tingkat suku bunga periodik yang konstan atas saldo liabilitas. Rental kontinjen dibebankan pada periode terjadinya. Beban keuangan dicatat dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is required to be allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are required to be charged as expenses in the periods in which they are incurred. Finance charges are reflected in the consolidated statement of profit or loss and other comprehensive income.

Untuk sewa operasi, Grup mengakui pembayaran sewa sebagai beban dengan dasar garis lurus (straight-line basis) selama masa sewa, kecuali terdapat dasar sistematis lain yang dapat lebih mencerminkan pola waktu dari manfaat aset yang dinikmati pengguna. Rental kontinjen diakui sebagai beban di dalam periode terjadinya.

Under an operating lease, the Group recognizes lease payments as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognized as an expense in the period in which they are incurred.

Dalam hal insentif diperoleh dalam sewa operasi, insentif tersebut diakui sebagai liabilitas. Keseluruhan manfaat dari insentif diakui sebagai pengurangan dari biaya sewa dengan dasar garis lurus kecuali terdapat dasar sistematis lain yang lebih mencerminkan pola waktu dari manfaat yang dinikmati pengguna.

In the event that lease incentives are received to enter into operating leases, such incentives are recognized as a liability. The aggregate benefit of incentives is recognized as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.







(Continued)

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u. Beban Tangguhan u. Deferred Charges

Pengeluaran tertentu yang memiliki masa manfaat lebih dari satu tahun, ditangguhkan dan diamortisasi sesuai dengan taksiran masa manfaatnya dengan menggunakan metode garis lurus selama 5 tahun.

Certain expenditures which have benefits of more than one year are deferred and amortized using the straight-line method over the period of the expected benefit of 5 years.

v. Provisi v. Provision

Provisi diakui ketika Grup memiliki kewajiban kini (baik bersifat hukum maupun bersifat konstruktif) sebagai akibat peristiwa masa lalu, kemungkinan besar Grup diharuskan menyelesaikan kewajiban dan estimasi yang andal mengenai jumlah kewajiban tersebut dapat dibuat.

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Jumlah yang diakui sebagai provisi adalah hasil estimasi terbaik pengeluaran yang diperlukan untuk menyelesaikan kewajiban kini pada akhir periode pelaporan, dengan mempertimbangkan risiko dan ketidakpastian yang meliputi kewajibannya. Apabila suatu provisi diukur menggunakan arus kas yang diperkirakan untuk menyelesaikan kewajiban kini, maka nilai tercatatnya adalah nilai kini dari arus kas.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

Ketika beberapa atau seluruh manfaat ekonomi untuk penyelesaian provisi yang diharapkan dapat dipulihkan dari pihak ketiga, piutang diakui sebagai aset apabila terdapat kepastian bahwa penggantian akan diterima dan jumlah piutang dapat diukur secara andal.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

w. Biaya Pinjaman w. Borrowing Costs

Biaya pinjaman yang dapat diatribusikan secara langsung dengan perolehan, konstruksi atau pembuatan aset kualifikasian, yang merupakan aset yang membutuhkan waktu yang cukup lama agar siap untuk digunakan atau dijual, ditambahkan pada biaya perolehan aset tersebut, sampai dengan saat aset secara substansial siap untuk digunakan atau dijual.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Penghasilan investasi diperoleh atas investasi sementara dari pinjaman yang secara spesifik belum digunakan untuk pengeluaran aset kualifikasian dikurangi dari biaya pinjaman yang dikapitalisasi.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Semua biaya pinjaman lainnya diakui dalam laba rugi pada periode terjadinya.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

x. Pengakuan Pendapatan dan Beban x. Revenue and Expense Recognition Pendapatan diukur dengan nilai wajar imbalan yang diterima atau dapat diterima. Pendapatan dikurangi dengan estimasi retur pelanggan, rabat dan cadangan lain yang serupa.

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebate and other similar allowances.







(Continued)

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u. Beban Tangguhan u. Deferred Charges

Pengeluaran tertentu yang memiliki masa manfaat lebih dari satu tahun, ditangguhkan dan diamortisasi sesuai dengan taksiran masa manfaatnya dengan menggunakan metode garis lurus selama 5 tahun.

Certain expenditures which have benefits of more than one year are deferred and amortized using the straight-line method over the period of the expected benefit of 5 years.

v. Provisi v. Provision

Provisi diakui ketika Grup memiliki kewajiban kini (baik bersifat hukum maupun bersifat konstruktif) sebagai akibat peristiwa masa lalu, kemungkinan besar Grup diharuskan menyelesaikan kewajiban dan estimasi yang andal mengenai jumlah kewajiban tersebut dapat dibuat.

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Jumlah yang diakui sebagai provisi adalah hasil estimasi terbaik pengeluaran yang diperlukan untuk menyelesaikan kewajiban kini pada akhir periode pelaporan, dengan mempertimbangkan risiko dan ketidakpastian yang meliputi kewajibannya. Apabila suatu provisi diukur menggunakan arus kas yang diperkirakan untuk menyelesaikan kewajiban kini, maka nilai tercatatnya adalah nilai kini dari arus kas.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

Ketika beberapa atau seluruh manfaat ekonomi untuk penyelesaian provisi yang diharapkan dapat dipulihkan dari pihak ketiga, piutang diakui sebagai aset apabila terdapat kepastian bahwa penggantian akan diterima dan jumlah piutang dapat diukur secara andal.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

w. Biaya Pinjaman w. Borrowing Costs

Biaya pinjaman yang dapat diatribusikan secara langsung dengan perolehan, konstruksi atau pembuatan aset kualifikasian, yang merupakan aset yang membutuhkan waktu yang cukup lama agar siap untuk digunakan atau dijual, ditambahkan pada biaya perolehan aset tersebut, sampai dengan saat aset secara substansial siap untuk digunakan atau dijual.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Penghasilan investasi diperoleh atas investasi sementara dari pinjaman yang secara spesifik belum digunakan untuk pengeluaran aset kualifikasian dikurangi dari biaya pinjaman yang dikapitalisasi.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Semua biaya pinjaman lainnya diakui dalam laba rugi pada periode terjadinya.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

x. Pengakuan Pendapatan dan Beban x. Revenue and Expense Recognition Pendapatan diukur dengan nilai wajar imbalan yang diterima atau dapat diterima. Pendapatan dikurangi dengan estimasi retur pelanggan, rabat dan cadangan lain yang serupa.

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebate and other similar allowances.





(Continued)

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Penjualan barang Sale of goods Pendapatan dari penjualan barang harus diakui bila seluruh kondisi berikut dipenuhi:

Revenue from sale of goods is recognized when all of the following conditions are satisfied:

Grup telah memindahkan risiko dan manfaat

secara signifikan kepemilikan barang kepada pembeli;

The Group has transferred to the buyer the significant risks and rewards of ownership of the goods;

Grup tidak lagi melanjutkan pengelolaan yang biasanya terkait dengan kepemilikan atas barang ataupun melakukan pengendalian efektif atas barang yang dijual;

The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

Jumlah pendapatan dapat diukur dengan andal;

The amount of revenue can be measured reliably;

Kemungkinan besar manfaat ekonomi yang terkait dengan transaksi akan mengalir kepada Grup tersebut; dan

It is probable that the economic benefits associated with the transaction will flow to the Group; and

Biaya yang terjadi atau akan terjadi sehubungan transaksi penjualan tersebut dapat diukur dengan andal.

The cost incurred or to be incurred in respect of the transaction can be measured reliably.

Penjualan jasa Rendering of services Pendapatan dari kontrak atas penyediaan jasa diakui dengan acuan pada tingkat penyelesaian berdasarkan kontrak. Pendapatan atas jasa penambangan dan peledakan diakui pada saat jasa telah diserahkan.

Revenue from contract to provide services is recognized by reference to the percentage of completion of the contract. Revenue from mining and blasting services is recognized when the service is rendered.

Penjualan properti Sale of properties Entitas anak (KIG) mengakui penjualan bangunan rumah dan bangunan sejenis lainnya beserta kavling tanahnya dengan menggunakan metode akrual penuh apabila seluruh kriteria berikut terpenuhi: proses penjualan telah selesai, harga jual akan tertagih, tagihan KIG tidak akan bersifat subordinasi di masa yang akan datang terhadap pinjaman lain yang akan diperoleh pembeli, dan KIG telah mengalihkan risiko dan manfaat kepemilikan unit bangunan kepada pembeli melalui suatu transaksi yang secara substansi adalah penjualan dan KIG tidak lagi berkewajiban atau terlibat secara signifikan dengan bangunan tersebut.

A subsidiary (KIG) recognizes the sale of houses and other similar types of buildings and land using the full accrual method, if all of the following criteria are satisfied: a sale is consummated, the selling price is collectible, KIG’s receivable is not subject to future subordination to other loans which will be obtained by the buyer, and KIG has transferred to the buyer the usual risks and rewards of ownership in a transaction that is in substance a sale and KIG does not have a substantial continuing involvement with the property.

Penjualan kavling tanah tanpa bangunan diakui dengan syarat jumlah pembayaran oleh pembeli telah mencapai 20% dari harga jual, harga jual akan tertagih, tagihan KIG tidak subordinasi terhadap pinjaman lain, proses pengembangan tanah telah selesai sehingga penjual tidak berkewajiban lagi untuk menyelesaikan tanah kavling yang dijual, seperti kewajiban untuk mematangkan tanah kavling atau kewajiban untuk membangun fasilitas-fasilitas pokok yang dijanjikan oleh atau yang menjadi kewajiban penjual, sesuai dengan pengikatan jual beli atau ketentuan peraturan perundang-undangan dan hanya kavling tanah saja yang dijual tanpa diwajibkan keterlibatan KIG dalam pendirian bangunan di atas tanah kavling tersebut.

Sales of land without buildings are recognized provided that down payments from customers are a minimum of 20% of the sales price, the sales proceeds are considered to be collectible, KIG’s receivable will not be subordinated to other loans, the process of land development has been completed that the seller is no longer obligated to develop the lots sold, such as the obligation to construct amenities or other facilities applicable to the lots sold as provided in the agreement between the seller and the buyer or regulated by law and the sale consists only of the lots of land, without any involvement of the seller in the construction of the building on the lots sold.







(Continued)

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Pendapatan dividen

Dividend revenue

Pendapatan dividen dari investasi diakui ketika hak pemegang saham untuk menerima pembayaran ditetapkan.

Dividend revenue from investments is recognized when the shareholders’ rights to receive payment has been established.

Pendapatan bunga

Interest revenue

Pendapatan bunga diakru berdasarkan waktu terjadinya dengan acuan jumlah pokok terutang dan tingkat bunga yang berlaku.

Interest revenue is accrued on time basis, by reference to the principal outstanding and at the applicable interest rate.

Beban

Expenses

Beban diakui pada saat terjadinya atau sesuai dengan masa manfaatnya.

Expenses are recognized when incurred or based on their beneficial period.

y. Imbalan Kerja

y. Employee Benefits

Imbalan kerja jangka pendek Short-term employee benefits Imbalan kerja jangka pendek adalah imbalan kerja yang jatuh tempo dalam jangka waktu dua belas bulan setelah akhir periode pelaporan dan diakui pada saat pekerja telah memberikan jasa kerjanya.

Short-term employee benefits are employee benefits which are due for payment within twelve months after the reporting period and recognized when the employees have rendered the related service.

Imbalan pascakerja

Post-employment benefits

Grup memiliki program imbalan pascakerja yang terdiri atas program imbalan pasti dan iuran pasti.

The Group has post-employment benefits comprise of defined benefit and defined contribution plans.

Program imbalan pasti adalah program pensiun yang menetapkan jumlah imbalan pensiun yang akan diterima oleh karyawan pada saat pensiun, yang biasanya tergantung pada faktor-faktor, seperti masa kerja dan jumlah kompensasi.

A defined benefit plan is a pension plan that defines the amount of pension benefit that will be received by the employee upon retirement, which generally depends on certain factors such as years of service and compensation.

Program pensiun iuran pasti adalah program pensiun dimana Grup membayar iuran tetap kepada sebuah entitas yang terpisah dan tidak memiliki kewajiban hukum atau kewajiban konstruktif untuk membayar iuran lebih lanjut bila dana tersebut tidak memiliki aset yang cukup untuk membayar imbalan kerja terkait dengan jasa yang diberikan oleh karyawan pada periode berjalan dan sebelumnya.

Defined contribution plans are pension plans under which the Group pays fixed contributions into a separate entity and have no legal and constructive obligation to pay further contributions if the fund does not have sufficient assets to pay all employee benefits related to the employees’ services in the current and prior periods.

a) Program Imbalan Pasti a) Defined Benefit Plans

i) Program Pensiun Imbalan Pasti -

Perseroan dan entitas anak (SP dan ST) menyelenggarakan program pensiun imbalan pasti yang dikelola oleh Dana Pensiun untuk seluruh karyawan tetapnya sebagaimana ditetapkan dalam Peraturan Perseroan dan entitas anak (SP dan ST). Jumlah kontribusi terdiri dari kontribusi karyawan yang dihitung sebesar 5% dari penghasilan dasar pensiun dan kontribusi Perseroan dan entitas anak yang dihitung secara aktuaria.

i) Defined Benefit Pension Plans - the Company and its subsidiaries (SP and ST) have defined benefit pension plans covering all of their permanent employees which is managed by a Pension Fund as stipulated in the Company’s and subsidiaries’ (SP and ST) regulations. Total contributions consist of employee contributions of 5% of employees’ basic pensionable salaries and the Company’s and its subsidiaries’ contributions computed on an actuarial basis.







(Continued)

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Pendapatan dividen

Dividend revenue

Pendapatan dividen dari investasi diakui ketika hak pemegang saham untuk menerima pembayaran ditetapkan.

Dividend revenue from investments is recognized when the shareholders’ rights to receive payment has been established.

Pendapatan bunga

Interest revenue

Pendapatan bunga diakru berdasarkan waktu terjadinya dengan acuan jumlah pokok terutang dan tingkat bunga yang berlaku.

Interest revenue is accrued on time basis, by reference to the principal outstanding and at the applicable interest rate.

Beban

Expenses

Beban diakui pada saat terjadinya atau sesuai dengan masa manfaatnya.

Expenses are recognized when incurred or based on their beneficial period.

y. Imbalan Kerja

y. Employee Benefits

Imbalan kerja jangka pendek Short-term employee benefits Imbalan kerja jangka pendek adalah imbalan kerja yang jatuh tempo dalam jangka waktu dua belas bulan setelah akhir periode pelaporan dan diakui pada saat pekerja telah memberikan jasa kerjanya.

Short-term employee benefits are employee benefits which are due for payment within twelve months after the reporting period and recognized when the employees have rendered the related service.

Imbalan pascakerja


Grup memiliki program imbalan pascakerja yang terdiri atas program imbalan pasti dan iuran pasti.

The Group has post-employment benefits comprise of defined benefit and defined contribution plans.

Program imbalan pasti adalah program pensiun yang menetapkan jumlah imbalan pensiun yang akan diterima oleh karyawan pada saat pensiun, yang biasanya tergantung pada faktor-faktor, seperti masa kerja dan jumlah kompensasi.

A defined benefit plan is a pension plan that defines the amount of pension benefit that will be received by the employee upon retirement, which generally depends on certain factors such as years of service and compensation.

Program pensiun iuran pasti adalah program pensiun dimana Grup membayar iuran tetap kepada sebuah entitas yang terpisah dan tidak memiliki kewajiban hukum atau kewajiban konstruktif untuk membayar iuran lebih lanjut bila dana tersebut tidak memiliki aset yang cukup untuk membayar imbalan kerja terkait dengan jasa yang diberikan oleh karyawan pada periode berjalan dan sebelumnya.

Defined contribution plans are pension plans under which the Group pays fixed contributions into a separate entity and have no legal and constructive obligation to pay further contributions if the fund does not have sufficient assets to pay all employee benefits related to the employees’ services in the current and prior periods.

a) Program Imbalan Pasti a) Defined Benefit Plans

i) Program Pensiun Imbalan Pasti -

Perseroan dan entitas anak (SP dan ST) menyelenggarakan program pensiun imbalan pasti yang dikelola oleh Dana Pensiun untuk seluruh karyawan tetapnya sebagaimana ditetapkan dalam Peraturan Perseroan dan entitas anak (SP dan ST). Jumlah kontribusi terdiri dari kontribusi karyawan yang dihitung sebesar 5% dari penghasilan dasar pensiun dan kontribusi Perseroan dan entitas anak yang dihitung secara aktuaria.

i) Defined Benefit Pension Plans - the Company and its subsidiaries (SP and ST) have defined benefit pension plans covering all of their permanent employees which is managed by a Pension Fund as stipulated in the Company’s and subsidiaries’ (SP and ST) regulations. Total contributions consist of employee contributions of 5% of employees’ basic pensionable salaries and the Company’s and its subsidiaries’ contributions computed on an actuarial basis.





(Continued)

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ii) Program imbalan pasti lainnya dalam bentuk manfaat pascakerja sesuai dengan UU Ketenagakerjaan No. 13/2003 dan lain-lain.

iii) ii) Other defined benefit plans in the form of benefits in accordance with Labor Law No. 13/2003 and others.

iv) Grup menghitung selisih antara imbalan berdasarkan undang-undang yang berlaku dengan manfaat yang diterima dari program pensiun untuk pensiun normal.

For normal pension scheme, the Group calculates and recognizes the higher of the benefits under the Labow Law and those under such pension plan.

Biaya penyediaan imbalan ditentukan dengan menggunakan metode Projected Unit Credit dengan penilaian aktuaria yang dilakukan pada setiap akhir periode pelaporan tahunan. Pengukuran kembali, terdiri dari keuntungan dan kerugian aktuarial, perubahan dampak batas atas aset (jika ada) dan dari imbal hasil atas aset program (tidak termasuk bunga), yang tercermin langsung dalam laporan posisi keuangan konsolidasian yang dibebankan atau dikreditkan dalam penghasilan komprehensif lain periode terjadinya. Pengukuran kembali diakui dalam penghasilan komprehensif lain tercermin dalam pos keuntungan/kerugian aktuaria imbalan kerja pada penghasilan komprehensif lain di ekuitas dan tidak akan direklasifikasi ke laba rugi. Biaya jasa lalu diakui dalam laba rugi pada periode amandemen program. Bunga neto dihitung dengan mengalikan tingkat diskonto pada awal periode imbalan pasti dengan liabilitas atau aset imbalan pasti neto.

The cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the consolidated statement of financial position with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected in unrealized gain/loss on employee benefits under other comprehensive income in equity and will not be reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

Biaya imbalan pasti dikategorikan sebagai berikut:

Defined benefit costs are categorised as follows:

Biaya jasa (termasuk biaya jasa kini, biaya jasa lalu serta keuntungan dan kerugian kurtailmen dan penyelesaian).

Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements).

Beban atau pendapatan bunga neto. Net interest expense or income.

Pengukuran kembali. Remeasurement. Grup menyajikan dua komponen pertama dari biaya imbalan pasti di laba rugi. Keuntungan dan kerugian kurtailmen dicatat sebagai biaya jasa lalu.

The Group presents the first two components of defined benefit costs in profit or loss. Curtailment gains and losses are accounted for as past service costs.

Liabilitas imbalan pensiun yang diakui pada laporan posisi keuangan konsolidasian sehubungan dengan program imbalan pascakerja imbalan pasti merupakan defisit atau surplus aktual dalam program imbalan pasti Grup. Surplus yang dihasilkan dari perhitungan ini terbatas pada nilai kini manfaat ekonomik yang tersedia dalam bentuk pengembalian dana program dan pengurangan iuran masa depan ke program.

The retirement benefit obligation recognised in the consolidated statement of financial position in respect of defined benefit post-employment plans represents the actual deficit or surplus in the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.







(Continued)

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b) Program Iuran Pasti b) Defined Contribution Plans Beban sehubungan dengan program iuran pasti dihitung berdasarkan persentase tertentu dari gaji dasar pensiun atau gaji dasar asuransi dari setiap peserta program yang menjadi tanggungan Perseroan dan entitas anak. Perseroan dan entitas anak mengakui utang iuran atau utang premi asuransi dalam periode dimana karyawan memberikan jasanya.

The expenses relating to defined contribution plans are determined based on certain percentages of the basic pensionable salaries or insurable salaries of respective participants which are borne by the Company and its subsidiaries. The Company and its subsidiaries recognize contributions payable or insurance premiums payable when an employee has rendered service during the period.

Imbalan kerja jangka panjang lain Other long-term employee benefits Perseroan dan entitas anak memberikan imbalan kerja jangka panjang lain dalam bentuk cuti panjang dan penghargaan masa kerja. Perhitungan imbalan kerja jangka panjang lain menggunakan metode Projected Unit Credit. Seluruh keuntungan atau kerugian aktuaria dan biaya jasa lalu dibebankan langsung.

The Company and its subsidiaries provide other long-term employee benefits in the form of long service leave and loyalty awards. The cost of providing other long-term employee benefits is determined using Projected Unit Credit method. All actuarial gains or losses and past service cost are recognized immediately.

Jumlah yang diakui sebagai kewajiban untuk imbalan kerja jangka panjang lain di laporan posisi keuangan konsolidasian adalah nilai kini kewajiban imbalan pasti per tanggal pelaporan.

The other long-term employee benefits obligation recognized in the consolidated statement of financial position represents the present value of defined benefit obligation at the reporting date.

z. Pajak Penghasilan z. Income Tax

Beban pajak penghasilan merupakan jumlah pajak kini terutang dan pajak tangguhan.

Income tax expense represents the sum of the tax currently payable and deferred tax.

Pajak kini terutang berdasarkan laba kena pajak untuk suatu tahun. Laba kena pajak berbeda dari laba sebelum pajak seperti yang dilaporkan dalam laporan laba rugi dan penghasilan komprehensif lain karena pos pendapatan atau beban yang dikenakan pajak atau dikurangkan pada tahun berbeda dan pos-pos yang tidak pernah dikenakan pajak atau tidak dapat dikurangkan.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the consolidated statement of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

Beban pajak kini ditentukan berdasarkan laba kena pajak dalam periode yang bersangkutan yang dihitung berdasarkan tarif pajak yang berlaku.

Current tax expense is determined based on the taxable income for the year computed using prevailing tax rates.

Pajak tangguhan diakui atas perbedaan temporer antara jumlah tercatat aset dan liabilitas dalam laporan keuangan konsolidasian dengan dasar pengenaan pajak yang digunakan dalam perhitungan laba kena pajak. Liabilitas pajak tangguhan umumnya diakui untuk seluruh perbedaan temporer kena pajak. Aset pajak tangguhan umumnya diakui untuk seluruh perbedaan temporer yang dapat dikurangkan sepanjang kemungkinan besar bahwa laba kena pajak akan tersedia sehingga perbedaan temporer dapat dimanfaatkan. Aset dan liabilitas pajak tangguhan tidak diakui jika perbedaan temporer timbul dari pengakuan awal (selain dari kombinasi bisnis) dari aset dan liabilitas suatu transaksi yang tidak mempengaruhi laba kena pajak atau laba akuntansi. Selain itu, liabilitas pajak tangguhan tidak diakui jika perbedaan temporer timbul dari pengakuan awal goodwill.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary differences arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary differences arises from the initial recognition of goodwill.







(Continued)

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b) Program Iuran Pasti b) Defined Contribution Plans Beban sehubungan dengan program iuran pasti dihitung berdasarkan persentase tertentu dari gaji dasar pensiun atau gaji dasar asuransi dari setiap peserta program yang menjadi tanggungan Perseroan dan entitas anak. Perseroan dan entitas anak mengakui utang iuran atau utang premi asuransi dalam periode dimana karyawan memberikan jasanya.

The expenses relating to defined contribution plans are determined based on certain percentages of the basic pensionable salaries or insurable salaries of respective participants which are borne by the Company and its subsidiaries. The Company and its subsidiaries recognize contributions payable or insurance premiums payable when an employee has rendered service during the period.

Imbalan kerja jangka panjang lain Other long-term employee benefits Perseroan dan entitas anak memberikan imbalan kerja jangka panjang lain dalam bentuk cuti panjang dan penghargaan masa kerja. Perhitungan imbalan kerja jangka panjang lain menggunakan metode Projected Unit Credit. Seluruh keuntungan atau kerugian aktuaria dan biaya jasa lalu dibebankan langsung.

The Company and its subsidiaries provide other long-term employee benefits in the form of long service leave and loyalty awards. The cost of providing other long-term employee benefits is determined using Projected Unit Credit method. All actuarial gains or losses and past service cost are recognized immediately.

Jumlah yang diakui sebagai kewajiban untuk imbalan kerja jangka panjang lain di laporan posisi keuangan konsolidasian adalah nilai kini kewajiban imbalan pasti per tanggal pelaporan.

The other long-term employee benefits obligation recognized in the consolidated statement of financial position represents the present value of defined benefit obligation at the reporting date.

z. Pajak Penghasilan z. Income Tax

Beban pajak penghasilan merupakan jumlah pajak kini terutang dan pajak tangguhan.

Income tax expense represents the sum of the tax currently payable and deferred tax.

Pajak kini terutang berdasarkan laba kena pajak untuk suatu tahun. Laba kena pajak berbeda dari laba sebelum pajak seperti yang dilaporkan dalam laporan laba rugi dan penghasilan komprehensif lain karena pos pendapatan atau beban yang dikenakan pajak atau dikurangkan pada tahun berbeda dan pos-pos yang tidak pernah dikenakan pajak atau tidak dapat dikurangkan.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the consolidated statement of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

Beban pajak kini ditentukan berdasarkan laba kena pajak dalam periode yang bersangkutan yang dihitung berdasarkan tarif pajak yang berlaku.

Current tax expense is determined based on the taxable income for the year computed using prevailing tax rates.

Pajak tangguhan diakui atas perbedaan temporer antara jumlah tercatat aset dan liabilitas dalam laporan keuangan konsolidasian dengan dasar pengenaan pajak yang digunakan dalam perhitungan laba kena pajak. Liabilitas pajak tangguhan umumnya diakui untuk seluruh perbedaan temporer kena pajak. Aset pajak tangguhan umumnya diakui untuk seluruh perbedaan temporer yang dapat dikurangkan sepanjang kemungkinan besar bahwa laba kena pajak akan tersedia sehingga perbedaan temporer dapat dimanfaatkan. Aset dan liabilitas pajak tangguhan tidak diakui jika perbedaan temporer timbul dari pengakuan awal (selain dari kombinasi bisnis) dari aset dan liabilitas suatu transaksi yang tidak mempengaruhi laba kena pajak atau laba akuntansi. Selain itu, liabilitas pajak tangguhan tidak diakui jika perbedaan temporer timbul dari pengakuan awal goodwill.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary differences arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary differences arises from the initial recognition of goodwill.





(Continued)

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Aset dan liabilitas pajak tangguhan diukur dengan menggunakan tarif pajak yang diharapkan berlaku dalam periode ketika liabilitas diselesaikan atau aset dipulihkan berdasarkan tarif pajak (dan peraturan pajak) yang telah berlaku atau secara substantif telah berlaku pada akhir periode pelaporan.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on the tax rates (and tax laws) that have been enacted, or substantively enacted, by the end of the reporting period.

Pengukuran aset dan liabilitas pajak tangguhan mencerminkan konsekuensi pajak yang sesuai dengan cara Grup memperkirakan, pada akhir periode pelaporan, untuk memulihkan atau menyelesaikan jumlah tercatat aset dan liabilitasnya.

The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of their assets and liabilities.

Jumlah tercatat aset pajak tangguhan ditelaah ulang pada akhir periode pelaporan dan dikurangi jumlah tercatatnya jika kemungkinan besar laba kena pajak tidak lagi tersedia dalam jumlah yang memadai untuk mengkompensasikan sebagian atau seluruh aset pajak tangguhan tersebut.

The carrying amount of deferred tax asset is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Pajak kini dan pajak tangguhan diakui sebagai beban atau penghasilan dalam laba rugi periode berjalan, kecuali untuk pajak penghasilan yang timbul dari transaksi atau peristiwa yang diakui di luar laba rugi (baik dalam penghasilan komprehensif lain maupun secara langsung di ekuitas), dalam hal tersebut pajak juga diakui di luar laba rugi, atau yang timbul dari akuntansi awal kombinasi bisnis. Dalam hal kombinasi bisnis, pengaruh pajak termasuk dalam akuntansi kombinasi bisnis.

Current and deferred tax are recognized as an expense or income in profit or loss, except when they relate to items that are recognized outside of profit or loss (whether in other comprehensive income or directly in equity), in which case the tax is also recognized outside of profit or loss, or where they arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is included in the accounting for the business combination.

Aset dan liabilitas pajak tangguhan saling hapus ketika entitas memiliki hak yang dapat dipaksakan secara hukum untuk melakukan saling hapus aset pajak kini terhadap liabilitas pajak kini dan ketika aset pajak tangguhan dan liabilitas pajak tangguhan terkait dengan pajak penghasilan yang dikenakan oleh otoritas perpajakan yang sama atas entitas kena pajak yang sama atau entitas kena pajak yang berbeda yang memiliki intensi untuk memulihkan aset dan liabilitas pajak kini dengan dasar neto, atau merealisasikan aset dan menyelesaikan liabilitas secara bersamaan, pada setiap periode masa depan dimana jumlah signifikan atas aset atau liabilitas pajak tangguhan diharapkan untuk diselesaikan atau dipulihkan.

Deferred tax assets and liabilities are offset when there is legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities when there is an intention to settle its current tax assets and current tax liabilities on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

aa. Laba per Saham aa. Earnings per Share Laba per saham dasar dihitung dengan membagi laba bersih yang diatribusikan kepada pemilik entitas induk dengan jumlah rata-rata tertimbang saham yang beredar pada tahun yang bersangkutan.

Basic earnings per share is computed by dividing net profit attributable to the owners of the Company by the weighted average number of shares outstanding during the year.

Laba per saham dilusian dihitung dengan membagi laba bersih yang diatribusikan kepada pemilik entitas induk dengan jumlah rata-rata tertimbang saham biasa yang telah disesuaikan dengan dampak dari semua efek berpotensi saham biasa yang dilutif.

Diluted earnings per share is computed by dividing net profit attributable to the owners of the Company by the weighted average number of shares outstanding as adjusted for the effects of all dilutive potential ordinary shares.







(Continued)

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bb. Dividen bb. Dividends Pembagian dividen kepada pemegang saham Perseroan diakui sebagai liabilitas dalam laporan keuangan konsolidasian pada periode saat dividen tersebut disetujui oleh para pemegang saham Perseroan.

Dividend distributions to the Company’s shareholders are recognized as a liability in the consolidated financial statements in the period the dividends are approved by the Company’s shareholders.

Pembagian dividen interim kepada pemegang saham Perseroan diakui sebagai liabilitas berdasarkan keputusan Direksi dengan persetujuan Dewan Komisaris.

Interim dividend distributions to the Company’s shareholders are recognized as a liability based on decisions of the Board of Director with the approval from the Board of Commissioners.

cc. Tanah untuk Pengembangan

cc. Land for Development

Tanah untuk pengembangan dinyatakan sebesar nilai yang lebih rendah antara biaya perolehan dan nilai realisasi bersih. Biaya perolehan tanah untuk pengembangan meliputi biaya perolehan tanah ditambah kapitalisasi biaya pinjaman dan biaya lainnya sehubungan dengan perolehan tanah.

The cost of land for development is stated at cost or net realizable value, whichever is lower. The costs of land for development consist of the acquisition and purchase costs of land, borrowing costs and other costs related to the acquisition of land.

dd. Informasi Segmen Segment

Segmen operasi diidentifikasi berdasarkan laporan internal mengenai komponen dari Grup yang secara reguler direviu oleh “pengambil keputusan operasional” dalam rangka mengalokasikan sumber daya dan menilai kinerja segmen operasi.

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the “chief operating decision maker” in order to allocate resources to the segments and to assess their performances.

Segmen operasi adalah suatu komponen dari entitas:

An operating segment is a component of an entity:

a) yang terlibat dalam aktivitas bisnis untuk

memperoleh pendapatan dan menimbulkan beban (termasuk pendapatan dan beban terkait dengan transaksi dengan komponen lain dari entitas yang sama);

a) that engages in business activities from which it may earn revenues and incurred expenses (including revenues and expenses relating to the transactions with other components of the same entity);

b) yang hasil operasinya dikaji ulang secara

reguler oleh pengambil keputusan operasional untuk membuat keputusan tentang sumber daya yang dialokasikan pada segmen tersebut dan menilai kinerjanya; dan

b) whose operating results are reviewed regularly by the entity’s chief operating decision maker to make decision about resources to be allocated to the segments and assess its performance; and

c) dimana tersedia informasi keuangan yang

dapat dipisahkan. c) for which discrete financial information is

available.

Informasi yang digunakan oleh pengambil keputusan operasional dalam rangka alokasi sumber daya dan penilaian kinerja mereka terfokus pada kategori dari setiap produk.

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of performance is more specifically focused on the category of each product.







(Continued)

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bb. Dividen bb. Dividends Pembagian dividen kepada pemegang saham Perseroan diakui sebagai liabilitas dalam laporan keuangan konsolidasian pada periode saat dividen tersebut disetujui oleh para pemegang saham Perseroan.

Dividend distributions to the Company’s shareholders are recognized as a liability in the consolidated financial statements in the period the dividends are approved by the Company’s shareholders.

Pembagian dividen interim kepada pemegang saham Perseroan diakui sebagai liabilitas berdasarkan keputusan Direksi dengan persetujuan Dewan Komisaris.

Interim dividend distributions to the Company’s shareholders are recognized as a liability based on decisions of the Board of Director with the approval from the Board of Commissioners.

cc. Tanah untuk Pengembangan

cc. Land for Development

Tanah untuk pengembangan dinyatakan sebesar nilai yang lebih rendah antara biaya perolehan dan nilai realisasi bersih. Biaya perolehan tanah untuk pengembangan meliputi biaya perolehan tanah ditambah kapitalisasi biaya pinjaman dan biaya lainnya sehubungan dengan perolehan tanah.

The cost of land for development is stated at cost or net realizable value, whichever is lower. The costs of land for development consist of the acquisition and purchase costs of land, borrowing costs and other costs related to the acquisition of land.

dd. Informasi Segmen Segment

Segmen operasi diidentifikasi berdasarkan laporan internal mengenai komponen dari Grup yang secara reguler direviu oleh “pengambil keputusan operasional” dalam rangka mengalokasikan sumber daya dan menilai kinerja segmen operasi.

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the “chief operating decision maker” in order to allocate resources to the segments and to assess their performances.

Segmen operasi adalah suatu komponen dari entitas:

An operating segment is a component of an entity:

a) yang terlibat dalam aktivitas bisnis untuk

memperoleh pendapatan dan menimbulkan beban (termasuk pendapatan dan beban terkait dengan transaksi dengan komponen lain dari entitas yang sama);

a) that engages in business activities from which it may earn revenues and incurred expenses (including revenues and expenses relating to the transactions with other components of the same entity);

b) yang hasil operasinya dikaji ulang secara

reguler oleh pengambil keputusan operasional untuk membuat keputusan tentang sumber daya yang dialokasikan pada segmen tersebut dan menilai kinerjanya; dan

b) whose operating results are reviewed regularly by the entity’s chief operating decision maker to make decision about resources to be allocated to the segments and assess its performance; and

c) dimana tersedia informasi keuangan yang

dapat dipisahkan. c) for which discrete financial information is

available.

Informasi yang digunakan oleh pengambil keputusan operasional dalam rangka alokasi sumber daya dan penilaian kinerja mereka terfokus pada kategori dari setiap produk.

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of performance is more specifically focused on the category of each product.





(Continued)

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4. PERTIMBANGAN KRITIS AKUNTANSI DAN ESTIMASI AKUNTANSI YANG SIGNIFIKAN

4. CRITICAL ACCOUNTING JUDGEMENTS AND SIGNIFICANT ACCOUNTING ESTIMATES

Dalam penerapan kebijakan akuntansi Grup, yang dijelaskan dalam Catatan 3, direksi diwajibkan untuk membuat pertimbangan, estimasi dan asumsi tentang jumlah tercatat aset dan liabilitas yang tidak tersedia dari sumber lain. Estimasi dan asumsi yang terkait didasarkan pada pengalaman historis dan faktor-faktor lain yang dianggap relevan. Hasil aktualnya mungkin berbeda dari estimasi tersebut.

In the application of the Group accounting policies, which are described in Note 3, the directors are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Estimasi dan asumsi yang mendasari ditelaah secara berkelanjutan. Revisi estimasi akuntansi diakui dalam periode dimana estimasi tersebut direvisi jika revisi hanya mempengaruhi periode tersebut, atau pada periode revisi dan periode masa depan jika revisi mempengaruhi periode saat ini dan masa depan.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Pertimbangan Kritis dalam Penerapan Kebijakan Akuntansi

Critical Judgments in Applying Accounting Policies

Di bawah ini adalah pertimbangan kritis, selain dari estimasi yang telah dibuat direksi dalam proses penerapan kebijakan akuntansi Grup dan memiliki pengaruh paling signifikan terhadap jumlah yang diakui dalam laporan keuangan konsolidasian.

Below are the critical judgments, apart from those involving estimations, that the directors have made in the process of applying the Group accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements.

Sewa Lease Grup mempunyai perjanjian-perjanjian sewa dimana Grup bertindak sebagai leasee untuk beberapa aset tetap tertentu. Grup mengevaluasi apakah terdapat risiko dan manfaat yang signifikan dari aset sewa yang dialihkan berdasarkan PSAK No. 30 (revisi 2014), “Sewa”, yang mensyaratkan Grup untuk membuat pertimbangan dan estimasi dari pengalihan risiko dan manfaat terkait dengan kepemilikan aset.

The Group entered into lease agreements where the Company and its subsidiaries act as lessee for certain fixed assets. The Group evaluates whether there are significant risks and rewards of assets transferred under PSAK No. 30 (revised 2014), "Leases", which requires the Group to make judgments and estimates of the transfer of risks and rewards incidental to ownership.

Grup mengadakan perjanjian sewa bangunan, kapal laut, kendaraan dan peralatan kantor tertentu. Grup telah menentukan, berdasarkan evaluasi atas syarat dan ketentuan dalam perjanjian, bahwa secara substansial seluruh risiko dan manfaat yang terkait dengan kepemilikan aset yang disewa dialihkan di Grup sehingga perjanjian sewa tersebut diakui sebagai sewa pembiayaan. Penjelasan lebih lanjut diungkapkan dalam Catatan 22.

The Group entered into a lease of buildings, ships, vehicles and certain office equipment. The Group had determined, based on an evaluation of the terms and conditions of the agreement, that substantially all the risks and rewards incidental to ownership of these leased assets were transferred to the Group, therefore the lease agreement are recognized as a finance lease. Further details are disclosed in Note 22.







(Continued)

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Sumber Utama Ketidakpastian Estimasi Key Sources of Estimation Uncertainty Rugi penurunan nilai pada pinjaman dan piutang Impairment loss on loans and receivables Grup mengevaluasi pelanggan tertentu jika terdapat informasi bahwa pelanggan tersebut tidak dapat memenuhi kewajiban keuangannya. Dalam hal tersebut, Grup mempertimbangkan, berdasarkan fakta dan situasi yang tersedia, termasuk namun tidak terbatas pada, jangka waktu hubungan dengan pelanggan, kualitas jaminan yang diterima dan status kredit dari pelanggan berdasarkan catatan kredit pihak ketiga yang tersedia dan faktor pasar yang telah diketahui, untuk mencatat cadangan yang spesifik atas jumlah piutang pelanggan guna mengurangi jumlah piutang yang diharapkan dapat diterima oleh Grup. Cadangan yang spesifik ini dievaluasi kembali dan disesuaikan jika diterima tambahan informasi yang mempengaruhi jumlah cadangan penurunan nilai piutang.

The Group evaluates specific customers where it has information that certain customers are unable to meet their financial obligations. In these cases, the Group uses judgment, based on the best available facts and circumstances, including but not limited to, the length of its relationship with the customer, quality of collateral received and the customer’s current credit status based on any available third party credit reports and known market factors, to record specific allowance for customers against amounts due to reduce its receivable amounts that the Group expect to collect. These specific allowances are re-evaluated and adjusted as additional information received affects the amounts of allowance for impairment losses on trade receivables.

Bila Grup memutuskan bahwa tidak terdapat bukti obyektif atas penurunan nilai pada evaluasi individual atas piutang, baik yang nilainya signifikan maupun tidak, Grup menyertakannya dalam kelompok piutang dengan risiko kredit yang serupa karakteristiknya dan melakukan evaluasi kolektif atas penurunan nilai. Karakteristik yang dipilih mempengaruhi estimasi arus kas masa depan atas kelompok piutang tersebut karena merupakan indikasi bagi kemampuan pelanggan untuk melunasi jumlah terutang.

If the Group determine that no objective evidence of impairment exists for an individually assessed receivables, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. The characteristics chosen are relevant to the estimation of future cash flows for groups of such receivables by being indicative of the customers’ ability to pay all amounts due.

Arus kas masa depan pada kelompok piutang yang dievaluasi secara kolektif untuk penurunan nilai diestimasi berdasarkan pengalaman kerugian historis bagi piutang usaha dengan karakteristik risiko kredit yang serupa dengan piutang usaha pada kelompok tersebut. Penjelasan lebih lanjut diungkapkan dalam Catatan 7 dan 8.

Future cash flows in a group of receivables that are collectively evaluated for impairment are estimated on the basis of historical loss experience for the trade receivables with credit risk characteristics similar to those in the group. Further details are disclosed in Notes 7 and 8.

Penilaian instrumen keuangan

Valuation of financial instruments

Seperti dijelaskan dalam Catatan 48, Grup menggunakan teknik penilaian yang meliputi input yang tidak didasarkan pada data pasar yang dapat diobservasi untuk mengestimasi nilai wajar dari beberapa jenis instrumen keuangan. Catatan 48 memberikan informasi yang rinci mengenai asumsi utama yang digunakan dalam menentukan nilai wajar instrumen keuangan, serta analisis sensitivitas yang rinci untuk asumsi tersebut.

As described in Note 48, the Group uses valuation techniques that include inputs that are not based on observable market data to estimate the fair value of certain types of financial instruments. Note 48 provides detailed information about the key assumptions used in the determination of the fair value of financial instruments, as well as the detailed sensitivity analysis for these assumptions.

Direksi berpendapat bahwa teknik penilaian yang dipilih dan asumsi yang digunakan adalah tepat dalam menentukan nilai wajar dari instrumen keuangan.

The directors believe that the chosen valuation techniques and assumptions used are appropriate in determining the fair value of financial instruments.







(Continued)

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Sumber Utama Ketidakpastian Estimasi Key Sources of Estimation Uncertainty Rugi penurunan nilai pada pinjaman dan piutang Impairment loss on loans and receivables Grup mengevaluasi pelanggan tertentu jika terdapat informasi bahwa pelanggan tersebut tidak dapat memenuhi kewajiban keuangannya. Dalam hal tersebut, Grup mempertimbangkan, berdasarkan fakta dan situasi yang tersedia, termasuk namun tidak terbatas pada, jangka waktu hubungan dengan pelanggan, kualitas jaminan yang diterima dan status kredit dari pelanggan berdasarkan catatan kredit pihak ketiga yang tersedia dan faktor pasar yang telah diketahui, untuk mencatat cadangan yang spesifik atas jumlah piutang pelanggan guna mengurangi jumlah piutang yang diharapkan dapat diterima oleh Grup. Cadangan yang spesifik ini dievaluasi kembali dan disesuaikan jika diterima tambahan informasi yang mempengaruhi jumlah cadangan penurunan nilai piutang.

The Group evaluates specific customers where it has information that certain customers are unable to meet their financial obligations. In these cases, the Group uses judgment, based on the best available facts and circumstances, including but not limited to, the length of its relationship with the customer, quality of collateral received and the customer’s current credit status based on any available third party credit reports and known market factors, to record specific allowance for customers against amounts due to reduce its receivable amounts that the Group expect to collect. These specific allowances are re-evaluated and adjusted as additional information received affects the amounts of allowance for impairment losses on trade receivables.

Bila Grup memutuskan bahwa tidak terdapat bukti obyektif atas penurunan nilai pada evaluasi individual atas piutang, baik yang nilainya signifikan maupun tidak, Grup menyertakannya dalam kelompok piutang dengan risiko kredit yang serupa karakteristiknya dan melakukan evaluasi kolektif atas penurunan nilai. Karakteristik yang dipilih mempengaruhi estimasi arus kas masa depan atas kelompok piutang tersebut karena merupakan indikasi bagi kemampuan pelanggan untuk melunasi jumlah terutang.

If the Group determine that no objective evidence of impairment exists for an individually assessed receivables, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. The characteristics chosen are relevant to the estimation of future cash flows for groups of such receivables by being indicative of the customers’ ability to pay all amounts due.

Arus kas masa depan pada kelompok piutang yang dievaluasi secara kolektif untuk penurunan nilai diestimasi berdasarkan pengalaman kerugian historis bagi piutang usaha dengan karakteristik risiko kredit yang serupa dengan piutang usaha pada kelompok tersebut. Penjelasan lebih lanjut diungkapkan dalam Catatan 7 dan 8.

Future cash flows in a group of receivables that are collectively evaluated for impairment are estimated on the basis of historical loss experience for the trade receivables with credit risk characteristics similar to those in the group. Further details are disclosed in Notes 7 and 8.

Penilaian instrumen keuangan

Valuation of financial instruments

Seperti dijelaskan dalam Catatan 48, Grup menggunakan teknik penilaian yang meliputi input yang tidak didasarkan pada data pasar yang dapat diobservasi untuk mengestimasi nilai wajar dari beberapa jenis instrumen keuangan. Catatan 48 memberikan informasi yang rinci mengenai asumsi utama yang digunakan dalam menentukan nilai wajar instrumen keuangan, serta analisis sensitivitas yang rinci untuk asumsi tersebut.

As described in Note 48, the Group uses valuation techniques that include inputs that are not based on observable market data to estimate the fair value of certain types of financial instruments. Note 48 provides detailed information about the key assumptions used in the determination of the fair value of financial instruments, as well as the detailed sensitivity analysis for these assumptions.

Direksi berpendapat bahwa teknik penilaian yang dipilih dan asumsi yang digunakan adalah tepat dalam menentukan nilai wajar dari instrumen keuangan.

The directors believe that the chosen valuation techniques and assumptions used are appropriate in determining the fair value of financial instruments.





(Continued)

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Taksiran masa manfaat ekonomis aset tetap dan properti investasi

Estimated useful lives of fixed assets and investment properties

Manajemen menentukan estimasi masa manfaat dan beban penyusutan dari aset tetap dan properti investasi. Depresiasi dihitung berdasarkan biaya komponen-komponen aset tetap dikurangi dengan nilai residu. Estimasi utama mencakup estimasi masa manfaat pabrik semen yang bisa berbeda dengan masa manfaat sesungguhnya. Masa manfaat sesungguhnya akan bergantung pada berbagai faktor seperti pemeliharaan, perkembangan teknologi, pasar semen, dan sebagainya. Nilai sisa pabrik juga sulit diestimasi karena lamanya masa manfaat pabrik dan ketidakpastian akan kondisi ekonomi. Nilai sisa diestimasi setiap tahun berdasarkan kondisi teknis peralatan tersebut.

Management determines the estimated useful lives and depreciation of fixed assets and investment property. Depreciation is calculated based on the various components of the cost of fixed assets less the residual value. The main estimate includes the estimated useful life of the cement plant which could differ from the actual useful life. Actual useful life will depend on various factors such as maintenance, technology development, cement market, etc. Residual value of the plant is also difficult to estimate because of the length of the useful life of the plant and the uncertainty of economic conditions. The residual value is estimated annualy based on the technical condition of the equipment.

Jika estimasi masa manfaat dan nilai sisa harus direvisi, penambahan beban depresiasi dapat terjadi di masa yang akan datang. Penjelasan lebih lanjut diungkapkan dalam Catatan 14 dan 15.

If the estimated useful lives and residual values should be revised, additional depreciation expense may occur in the future. Further details are disclosed in Notes 14 and 15.

Penurunan nilai aset non-keuangan Impairment of non-financial assets Penurunan nilai muncul saat nilai tercatat aset atau Unit Penghasil Kas (UPK) melebihi nilai terpulihkannya, yang lebih besar antara nilai wajar dikurangi biaya pelepasan dan nilai pakainya. Nilai wajar dikurangi biaya pelepasan didasarkan pada harga yang akan diterima untuk menjual suatu aset atau harga yang akan dibayar untuk mengalihkan suatu liabilitas dalam transaksi teratur antara pelaku pasar pada tanggal pengukuran dikurangi dengan biaya tambahan yang dapat diatribusikan dengan pelepasan aset.

An impairment exists when the carrying amount of an asset or a Cash Generating Unit (CGU) exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date less incremental costs for disposing the asset.

Perhitungan nilai pakai didasarkan pada model arus kas yang didiskontokan. Perhitungan nilai pakai mengharuskan manajemen untuk mengestimasi arus kas masa mendatang yang diharapkan akan diperoleh dari unit penghasil kas menggunakan tingkat pertumbuhan dan diskonto yang wajar dalam menghitung nilai kini. Proyeksi arus kas tidak termasuk aktivitas restrukturisasi yang belum ada perikatannya atau investasi signifikan di masa depan yang akan meningkatkan kinerja dari UPK yang diuji. Nilai terpulihkan paling sensitif terhadap tingkat diskonto yang digunakan untuk model arus kas yang didiskontokan seperti halnya dengan arus kas masuk masa depan yang diharapkan dan tingkat pertumbuhan yang digunakan untuk tujuan ekstrapolasi. Manajemen berkeyakinan bahwa tidak diperlukan pencatatan kerugian penurunan nilai pada tanggal 31 Desember 2018 dan 2017.

The value in use calculation is based on a discounted cash flow model. The value in use calculation requires the management to estimate the future cash flows expected to arise from the cash-generating unit using an appropriate growth rate and a suitable discount rate in order to calculate present value. The future cash flow projection does not include restructuring activities that are not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash inflows and the growth rate used for extrapolation purposes. The management believes that no impairment loss is required as of December 31, 2018 and 2017.







(Continued)

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Imbalan pascakerja


Nilai kini liabilitas imbalan pascakerja tergantung pada beberapa faktor yang ditentukan dengan dasar aktuarial berdasarkan beberapa asumsi. Asumsi yang digunakan untuk menentukan biaya bersih imbalan pascakerja mencakup tingkat diskonto, tingkat kenaikan gaji, dan tingkat pengembalian investasi. Perubahan asumsi-asumsi ini akan mempengaruhi jumlah tercatat liabilitas imbalan pascakerja.

The present value of post-employment liability depends on several factors that are determined by actuarial basis based on several assumptions. Assumptions used to determine the net cost of post-employment benefits include a discount rate, salary increase rate, and expected return on plan assets. Changes in these assumptions will affect the carrying amounts of post-employment liabilities.

Tingkat diskonto ditentukan pada akhir periode pelaporan, yakni tingkat suku bunga untuk menentukan nilai kini arus kas keluar masa depan estimasian yang diharapkan untuk menyelesaikan liabilitas imbalan pascakerja. Dalam menentukan tingkat suku bunga yang sesuai, Grup mempertimbangkan tingkat suku bunga obligasi pemerintah yang didenominasikan dalam mata uang Rupiah, mata uang yang mana imbalan akan dibayar, dan yang memiliki jangka waktu yang serupa dengan jangka waktu liabilitas imbalan pascakerja yang terkait.

The appropriate discount rate at the end of the reporting period is the interest rate used in determining the present value of estimated future cash outflows expected to settle the post-employment liabilities. In determining the appropriate level of interest rates, the Group considers the interest rates of government bonds denominated in Rupiah, the currency in which the benefits will be paid, and which has a similar time period with a period of related post-employment benefits liability.

Asumsi utama yang digunakan untuk penentuan liabilitas imbalan pascakerja lainnya termasuk asumsi kondisi pasar saat ini. Informasi tambahan diungkapkan pada Catatan 42.

The key assumption used for determining other post-employment liabilities included current market conditions. Additional information is disclosed in Note 42.

Provisi pajak Provision for tax Pertimbangan signifikan dilakukan dalam menentukan provisi atas pajak penghasilan badan maupun pajak lainnya atas transaksi tertentu. Ketidakpastian timbul terkait dengan interpretasi dari peraturan perpajakan yang kompleks dan jumlah dan waktu dari penghasilan kena pajak di masa depan. Dalam menentukan jumlah yang harus diakui terkait dengan liabilitas pajak yang tidak pasti, Grup menerapkan pertimbangan yang sama yang akan digunakan dalam menentukan jumlah cadangan yang harus diakui sesuai dengan PSAK No. 57 (revisi 2014), “Provisi, Liabilitas Kontinjensi, dan Aset Kontinjensi”. Grup membuat analisa terhadap semua posisi pajak yang terkait dengan pajak penghasilan untuk menentukan jika liabilitas pajak untuk manfaat pajak yang belum diakui harus diakui.

Significant judgment is involved in determining the provision for corporate income tax and other taxes on certain transactions. Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. In determining the amount to be recognized in respect of an uncertain tax liability, the Group applies similar considerations as it would use in determining the amount of a provision to be recognized in accordance with PSAK No. 57 (revised 2014), “Provisions, Contingent Liabilities and Contingent Asset”. The Group makes an analysis of all tax positions related to income taxes to determine if a tax liability for unrecognized tax benefit should be recognized.

Grup mengakui liabilitas atas pajak penghasilan badan berdasarkan estimasi apakah akan terdapat tambahan pajak penghasilan badan terutang. Penjelasan lebih rinci diungkapkan dalam Catatan 40.

The Group recognizes liabilities for expected corporate income tax issues based on estimates of whether additional corporate income tax will be due. Further details are disclosed in Note 40.

Aset pajak tangguhan Deferred tax assets Aset pajak tangguhan diakui atas seluruh perbedaan temporer yang dapat dikurangkan, sepanjang besar kemungkinannya bahwa penghasilan kena pajak akan tersedia sehingga perbedaan temporer tersebut dapat digunakan. Estimasi signifikan oleh manajemen disyaratkan dalam menentukan total aset pajak tangguhan yang dapat diakui, berdasarkan saat penggunaan dan tingkat penghasilan kena pajak serta strategi perencanaan pajak masa depan. Penjelasan lebih rinci diungkapkan dalam Catatan 40.

Deferred tax assets are recognized for all deductible temporary differences, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized. Significant management estimates are required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of the future taxable profits together with future tax planning strategies. Further details are disclosed in Note 40.







(Continued)

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Imbalan pascakerja


Nilai kini liabilitas imbalan pascakerja tergantung pada beberapa faktor yang ditentukan dengan dasar aktuarial berdasarkan beberapa asumsi. Asumsi yang digunakan untuk menentukan biaya bersih imbalan pascakerja mencakup tingkat diskonto, tingkat kenaikan gaji, dan tingkat pengembalian investasi. Perubahan asumsi-asumsi ini akan mempengaruhi jumlah tercatat liabilitas imbalan pascakerja.

The present value of post-employment liability depends on several factors that are determined by actuarial basis based on several assumptions. Assumptions used to determine the net cost of post-employment benefits include a discount rate, salary increase rate, and expected return on plan assets. Changes in these assumptions will affect the carrying amounts of post-employment liabilities.

Tingkat diskonto ditentukan pada akhir periode pelaporan, yakni tingkat suku bunga untuk menentukan nilai kini arus kas keluar masa depan estimasian yang diharapkan untuk menyelesaikan liabilitas imbalan pascakerja. Dalam menentukan tingkat suku bunga yang sesuai, Grup mempertimbangkan tingkat suku bunga obligasi pemerintah yang didenominasikan dalam mata uang Rupiah, mata uang yang mana imbalan akan dibayar, dan yang memiliki jangka waktu yang serupa dengan jangka waktu liabilitas imbalan pascakerja yang terkait.

The appropriate discount rate at the end of the reporting period is the interest rate used in determining the present value of estimated future cash outflows expected to settle the post-employment liabilities. In determining the appropriate level of interest rates, the Group considers the interest rates of government bonds denominated in Rupiah, the currency in which the benefits will be paid, and which has a similar time period with a period of related post-employment benefits liability.

Asumsi utama yang digunakan untuk penentuan liabilitas imbalan pascakerja lainnya termasuk asumsi kondisi pasar saat ini. Informasi tambahan diungkapkan pada Catatan 42.

The key assumption used for determining other post-employment liabilities included current market conditions. Additional information is disclosed in Note 42.

Provisi pajak Provision for tax Pertimbangan signifikan dilakukan dalam menentukan provisi atas pajak penghasilan badan maupun pajak lainnya atas transaksi tertentu. Ketidakpastian timbul terkait dengan interpretasi dari peraturan perpajakan yang kompleks dan jumlah dan waktu dari penghasilan kena pajak di masa depan. Dalam menentukan jumlah yang harus diakui terkait dengan liabilitas pajak yang tidak pasti, Grup menerapkan pertimbangan yang sama yang akan digunakan dalam menentukan jumlah cadangan yang harus diakui sesuai dengan PSAK No. 57 (revisi 2014), “Provisi, Liabilitas Kontinjensi, dan Aset Kontinjensi”. Grup membuat analisa terhadap semua posisi pajak yang terkait dengan pajak penghasilan untuk menentukan jika liabilitas pajak untuk manfaat pajak yang belum diakui harus diakui.

Significant judgment is involved in determining the provision for corporate income tax and other taxes on certain transactions. Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. In determining the amount to be recognized in respect of an uncertain tax liability, the Group applies similar considerations as it would use in determining the amount of a provision to be recognized in accordance with PSAK No. 57 (revised 2014), “Provisions, Contingent Liabilities and Contingent Asset”. The Group makes an analysis of all tax positions related to income taxes to determine if a tax liability for unrecognized tax benefit should be recognized.

Grup mengakui liabilitas atas pajak penghasilan badan berdasarkan estimasi apakah akan terdapat tambahan pajak penghasilan badan terutang. Penjelasan lebih rinci diungkapkan dalam Catatan 40.

The Group recognizes liabilities for expected corporate income tax issues based on estimates of whether additional corporate income tax will be due. Further details are disclosed in Note 40.

Aset pajak tangguhan Deferred tax assets Aset pajak tangguhan diakui atas seluruh perbedaan temporer yang dapat dikurangkan, sepanjang besar kemungkinannya bahwa penghasilan kena pajak akan tersedia sehingga perbedaan temporer tersebut dapat digunakan. Estimasi signifikan oleh manajemen disyaratkan dalam menentukan total aset pajak tangguhan yang dapat diakui, berdasarkan saat penggunaan dan tingkat penghasilan kena pajak serta strategi perencanaan pajak masa depan. Penjelasan lebih rinci diungkapkan dalam Catatan 40.

Deferred tax assets are recognized for all deductible temporary differences, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized. Significant management estimates are required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of the future taxable profits together with future tax planning strategies. Further details are disclosed in Note 40.





(Continued)

- 48 -

Penyisihan penurunan nilai persediaan usang dan bergerak lambat

Allowance for obsolete and slow moving inventories

Cadangan persediaan usang dan bergerak lambat diestimasi berdasarkan fakta dan situasi yang tersedia, termasuk namun tidak terbatas kepada, kondisi fisik persediaan yang dimiliki, harga jual pasar, estimasi biaya penyelesaian dan estimasi biaya yang timbul untuk penjualan. Cadangan dievaluasi kembali dan disesuaikan jika terdapat tambahan informasi yang mempengaruhi jumlah yang diestimasi. Penjelasan lebih rinci diungkapkan dalam Catatan 9.

Allowance for obsolete and slow moving inventories is estimated based on the best available facts and circumstances, including but not limited to, the inventories’ own physical conditions, their market selling prices, estimated costs of completion and estimated costs to be incurred for their sales. The allowance is reevaluated and adjusted as additional information received affects the amount estimated. Further details are disclosed in Note 9.

Penurunan nilai goodwil Impairment of goodwill Menentukan apakah suatu goodwill turun nilainya mengharuskan adanya estimasi nilai pakai unit penghasil kas dimana goodwill dialokasikan. Perhitungan nilai pakai mengharuskan manajemen untuk mengestimasi arus kas masa depan yang diharapkan timbul dari unit penghasil kas yang menggunakan tingkat pertumbuhan yang tepat dan tingkat diskonto sebesar 17,70% yang sesuai untuk perhitungan nilai kini.

Determining whether goodwill is impaired requires an estimation of the value-in-use of the cash-generating units to which goodwill has been allocated. The value-in-use calculation requires the management to estimate the future cash flows expected to arise from the cash-generating unit using an appropriate growth rate and a suitable discount rate of 17.70% in order to calculate present value.

Rincian perhitungan penurunan nilai goodwill disajikan pada Catatan 17.

Details of the impairment of goodwill are set out in Note 17.

5. KAS DAN SETARA KAS 5. CASH AND CASH EQUIVALENTS

2018 2017

Kas 16.490.353 11.795.597 Cash on handBank 2.387.205.086 1.368.798.535 Cash in banksDeposito berjangka dan call deposits 2.873.367.509 2.285.899.133 Time and call deposits

Subjumlah 5.277.062.948 3.666.493.265 SubtotalDikurangi: Less:Kas dan setara kas yang Restricted cash and cash

dibatasi penggunaannya equivalentsRupiah: Rupiah:

Pihak ketiga: Third parties:PT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Jaw a Timur Tbk 26.201.468 9.925.704 Jaw a Timur TbkPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Jaw a Tengah 4.148.560 4.148.560 Jaw a TengahSubjumlah 30.350.028 14.074.264 SubtotalPihak berelasi: Related parties:

PT Bank Negara Indonesia PT Bank Negara Indonesia(Persero) Tbk 882.402 13.855.648 (Persero) Tbk

PT Bank Rakyat Indonesia PT Bank Rakyat Indonesia (Persero) Tbk 100.000 190.396 (Persero) Tbk

PT Bank Mandiri (Persero) Tbk - 612.841 PT Bank Mandiri (Persero) TbkSubjumlah 982.402 14.658.885 Subtotal

Jumlah kas dan setara kas yang Total restricted cash and cashdibatasi penggunaannya 31.332.430 28.733.149 equivalents

Jumlah 5.245.730.518 3.637.760.116 Total







(Continued)

- 49 -

Kas dan setara kas yang dibatasi penggunaannya pada PT Bank Pembangunan Daerah Jawa Timur Tbk dan PT Bank Pembangunan Daerah Jawa Tengah per tanggal 31 Desember 2018 masing-masing sebesar Rp26.201.468 dan Rp4.148.560 dan per tanggal 31 Desember 2017 masing-masing sebesar Rp9.925.704 dan Rp1.148.560 merupakan dana yang ditempatkan Perseroan sebagai jaminan biaya reklamasi tanah tambang di Tuban dan Rembang.

As of December 31, 2018, restricted cash and cash equivalents in PT Bank Pembangunan Daerah Jawa Timur Tbk and PT Bank Pembangunan Daerah Jawa Tengah amounted to Rp26,201,468 and Rp4,148,560 and as of December 31, 2017 amounted to Rp9,925,704 and Rp4,148,560, respectively, are used as guarantee of Tuban and Rembang quarry restoration.

Kas di bank yang dibatasi penggunaannya pada PT Bank Negara Indonesia (Persero) Tbk terdiri atas:

Restricted cash in bank at PT Bank Negara Indonesia (Persero) Tbk consists of:

a. Rekening bank entitas anak (SP) sebesar Rp840.424 pada tanggal 31 Desember 2018 (31 Desember 2017: Rp13.816.866) merupakan jaminan atas fasilitas pinjaman dari BNI milik Grup (Catatan 20).

a. A subsidiary (SP)’s cash in bank of Rp840,424 as of December 31, 2018 (December 31, 2017: Rp13,816,866) represents the collateral required in relation to the Group’s credit facility (Note 20).

b. Rekening bank entitas anak (UTSG) sebesar Rp41.978 pada tanggal 31 Desember 2018 dan sebesar Rp38.782 pada tanggal 31 Desember 2017, merupakan dana yang ditempatkan sebagai jaminan bank garansi Trase Toll Batang Semarang dan reklamasi ESDM Rembang.

c. b. A subsidiary (UTSG)’s cash in bank of Rp41,978 as of December 31, 2018, and Rp38,782 as of December 31, 2017, represents the fund placed as a bank guarantee for Trase Toll Batang Semarang and reclamation of ESDM Rembang.

Kas dan setara kas yang dibatasi penggunaannya pada PT Bank Rakyat Indonesia (Persero) Tbk terdiri atas:

Restricted cash and cash equivalents in PT Bank Rakyat Indonesia (Persero) Tbk consist of:

a. Rekening bank entitas anak (SP) sebesar RpNihil pada 31 Desember 2018 (31 Desember 2017: Rp90.396) digunakan untuk kebutuhan SP yang didanai dengan menggunakan fasilitas Letter of Credit (LC).

a. A subsidiary (SP)’s cash in bank of RpNil as of December 31, 2018 (December 31, 2017: Rp90,396) are used for operational needs of SP, which were funded by Letter of Credit (LC) facility.

b. Rekening bank entitas anak (SIL) sebesar

Rp100.000 pada tanggal 31 Desember 2018 dan 2017 digunakan untuk jaminan pembelian semen, pemeliharaan, pelaksanaan kerja, dan jaminan proyek dan uang muka.

b. A subsidiary (SIL)’s cash in bank of Rp100,000 as of December 31, 2018, and 2017 are used for guarantee for purchasing of cement, maintenance warranty, work implementation, project assurance and advance guarantees.

Kas di bank yang dibatasi penggunaannya pada PT Bank Mandiri (Persero) Tbk merupakan Rekening bank entitas anak (SP) sebesar RpNihil pada tanggal 31 Desember 2018 (31 Desember 2017: Rp612.841) merupakan dana yang ditempatkan dalam rangka pembangunan proyek Indarung VI.

Restricted cash in bank PT Bank Mandiri (Persero) Tbk is a subsidiary (SP)’s cash in bank of RpNil as of December 31, 2018, (December 31, 2017: Rp612,841) represents the fund placed in relation to the construction of Indarung VI.

a. Kas a. Cash on hand

2018 2017

Rupiah 16.129.163 11.507.288 RupiahDong Vietnam 307.642 278.892 Vietnamese DongDolar Amerika Serikat 53.548 9.417 United States Dollars

Jumlah 16.490.353 11.795.597 Total







(Continued)

- 49 -

Kas dan setara kas yang dibatasi penggunaannya pada PT Bank Pembangunan Daerah Jawa Timur Tbk dan PT Bank Pembangunan Daerah Jawa Tengah per tanggal 31 Desember 2018 masing-masing sebesar Rp26.201.468 dan Rp4.148.560 dan per tanggal 31 Desember 2017 masing-masing sebesar Rp9.925.704 dan Rp1.148.560 merupakan dana yang ditempatkan Perseroan sebagai jaminan biaya reklamasi tanah tambang di Tuban dan Rembang.

As of December 31, 2018, restricted cash and cash equivalents in PT Bank Pembangunan Daerah Jawa Timur Tbk and PT Bank Pembangunan Daerah Jawa Tengah amounted to Rp26,201,468 and Rp4,148,560 and as of December 31, 2017 amounted to Rp9,925,704 and Rp4,148,560, respectively, are used as guarantee of Tuban and Rembang quarry restoration.

Kas di bank yang dibatasi penggunaannya pada PT Bank Negara Indonesia (Persero) Tbk terdiri atas:

Restricted cash in bank at PT Bank Negara Indonesia (Persero) Tbk consists of:

a. Rekening bank entitas anak (SP) sebesar Rp840.424 pada tanggal 31 Desember 2018 (31 Desember 2017: Rp13.816.866) merupakan jaminan atas fasilitas pinjaman dari BNI milik Grup (Catatan 20).

a. A subsidiary (SP)’s cash in bank of Rp840,424 as of December 31, 2018 (December 31, 2017: Rp13,816,866) represents the collateral required in relation to the Group’s credit facility (Note 20).

b. Rekening bank entitas anak (UTSG) sebesar Rp41.978 pada tanggal 31 Desember 2018 dan sebesar Rp38.782 pada tanggal 31 Desember 2017, merupakan dana yang ditempatkan sebagai jaminan bank garansi Trase Toll Batang Semarang dan reklamasi ESDM Rembang.

c. b. A subsidiary (UTSG)’s cash in bank of Rp41,978 as of December 31, 2018, and Rp38,782 as of December 31, 2017, represents the fund placed as a bank guarantee for Trase Toll Batang Semarang and reclamation of ESDM Rembang.

Kas dan setara kas yang dibatasi penggunaannya pada PT Bank Rakyat Indonesia (Persero) Tbk terdiri atas:

Restricted cash and cash equivalents in PT Bank Rakyat Indonesia (Persero) Tbk consist of:

a. Rekening bank entitas anak (SP) sebesar RpNihil pada 31 Desember 2018 (31 Desember 2017: Rp90.396) digunakan untuk kebutuhan SP yang didanai dengan menggunakan fasilitas Letter of Credit (LC).

a. A subsidiary (SP)’s cash in bank of RpNil as of December 31, 2018 (December 31, 2017: Rp90,396) are used for operational needs of SP, which were funded by Letter of Credit (LC) facility.

b. Rekening bank entitas anak (SIL) sebesar

Rp100.000 pada tanggal 31 Desember 2018 dan 2017 digunakan untuk jaminan pembelian semen, pemeliharaan, pelaksanaan kerja, dan jaminan proyek dan uang muka.

b. A subsidiary (SIL)’s cash in bank of Rp100,000 as of December 31, 2018, and 2017 are used for guarantee for purchasing of cement, maintenance warranty, work implementation, project assurance and advance guarantees.

Kas di bank yang dibatasi penggunaannya pada PT Bank Mandiri (Persero) Tbk merupakan Rekening bank entitas anak (SP) sebesar RpNihil pada tanggal 31 Desember 2018 (31 Desember 2017: Rp612.841) merupakan dana yang ditempatkan dalam rangka pembangunan proyek Indarung VI.

Restricted cash in bank PT Bank Mandiri (Persero) Tbk is a subsidiary (SP)’s cash in bank of RpNil as of December 31, 2018, (December 31, 2017: Rp612,841) represents the fund placed in relation to the construction of Indarung VI.

a. Kas a. Cash on hand

2018 2017

Rupiah 16.129.163 11.507.288 RupiahDong Vietnam 307.642 278.892 Vietnamese DongDolar Amerika Serikat 53.548 9.417 United States Dollars

Jumlah 16.490.353 11.795.597 Total





(Continued)

- 50 -

b. Bank b. b. Cash in banks

2018 2017

Rupiah: RupiahPihak ketiga: Third parties:

PT Bank Central Asia Tbk 22.449.545 46.373.807 PT Bank Central Asia TbkPT Bank ICBC Indonesia 12.316.412 604.234 PT Bank ICBC IndonesiaPT Bank CIMB Niaga Tbk 7.307.383 26.005.986 PT Bank CIMB Niaga TbkPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Sumatera Barat 2.308.788 681.583 Sumatera BaratPT Bank Permata Tbk 1.668.822 645.144 PT Bank Permata TbkPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Jaw a Barat & Banten Tbk 1.119.398 2.717.264 Jaw a Barat & Banten TbkPT Bank Bukopin Tbk 851.285 6.415.168 PT Bank Bukopin TbkPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Jaw a Tengah 513.582 505.717 Jaw a TengahPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Sulaw esi Selatan dan Sulaw esi Selatan danSulaw esi Barat 381.248 1.275.480 Sulaw esi Barat

PT Bank Panin Tbk 266.792 6.745.829 PT Bank Panin TbkPT Bank Mega Tbk 252.402 492.550 PT Bank Mega TbkPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Jaw a Timur Tbk 153.742 4.181.635 Jaw a Timur TbkDeutsche Bank AG Surabaya 123.659 123.659 Deutsche Bank AG SurabayaPT Bank UOB Indonesia 47.266 103.057 PT Bank UOB IndonesiaPT Bank Muamalat Tbk 20.915 68.248.495 PT Bank Muamalat TbkPT Bank DBS Indonesia 11.205 17.019.116 PT Bank DBS IndonesiaLain-lain (masing-masing Others

dibaw ah Rp100.000) 76.210 24.536 (each below Rp100,000)Subjumlah 49.868.654 182.163.260 Subtotal

Pihak berelasi: Related parties:PT Bank Mandiri (Persero) Tbk 1.620.263.123 640.573.946 PT Bank Mandiri (Persero) TbkPT Bank Negara Indonesia PT Bank Negara Indonesia

(Persero) Tbk 70.452.912 82.210.043 (Persero) TbkPT Bank Rakyat Indonesia PT Bank Rakyat Indonesia

(Persero) Tbk 53.972.488 53.288.914 (Persero) TbkPT Bank Syariah Mandiri 486.928 1.077.057 PT Bank Syariah Mandiri PT Bank Tabungan Negara PT Bank Tabungan Negara

(Persero) Tbk 483.657 567.757 (Persero) TbkSubjumlah 1.745.659.108 777.717.717 Subtotal

Jumlah 1.795.527.762 959.880.977 Total

Dolar Amerika Serikat: United States Dollar:Pihak ketiga: Third parties:

Standard Chartered Bank 65.744.609 18.630.409 Standard Chartered BankPT Bank CIMB Niaga Tbk 1.800.557 18.181.020 PT Bank CIMB Niaga TbkVietnam Prosperity Joint Stock Vietnam Prosperity Joint Stock

Commercial Bank 299.256 154.771 Commercial BankPT Bank Bukopin Tbk 44.284 810.325 PT Bank Bukopin TbkVietnam Technological and Vietnam Technological and

Commercial Bank 12.841 21.881.321 Commercial BankCitibank, N.A., cabang Indonesia - 641.939 Citibank, N.A., Indonesian BranchHo Chi Minh City Development Ho Chi Minh City Development

Joint Stock Commercial Bank - 109.648 Joint Stock Commercial BankLain-lain (masing-masing Others

dibaw ah Rp100.000) 9.677 23.482 (each below Rp100,000)

Subjumlah 67.911.224 60.432.915 Subtotal







(Continued)

- 51 -

2018 2017

Pihak berelasi: Related parties:PT Bank Mandiri (Persero) Tbk 403.266.648 195.183.529 PT Bank Mandiri (Persero) TbkPT Bank Negara Indonesia PT Bank Negara Indonesia


(Persero) Tbk 103.260 97.225 (Persero) TbkSubjumlah 488.959.066 230.861.933 Subtotal

Jumlah 556.870.290 291.294.848 Total

Euro: Euro:Pihak ketiga: Third parties:

PT Bank CIMB Niaga Tbk 826.799 820.184 PT Bank CIMB Niaga TbkHo Chi Minh City Development Ho Chi Minh City Development

Joint Stock Commercial Bank 22.853 2.093 Joint Stock Commercial BankVietnam Prosperity Joint Stock Vietnam Prosperity Joint Stock

Commercial Bank 63 17.233 Commercial BankAn Binh Bank - 19.089 An Binh Bank

Subjumlah 849.715 858.599 Subtotal




Jumlah 25.945.289 111.075.108 Total

Dolar Singapura: Singapore Dollars:Pihak berelasi: Related parties:

PT Bank Mandiri (Persero) Tbk 37.317 145.687 PT Bank Mandiri (Persero) Tbk

Dong Vietnam: Vietnamese Dong:Pihak ketiga: Third parties:

Á Châu Bank 3.451.308 772.445 Á Châu BankVietnam Bank for Agriculture Vietnam Bank for Agriculture

and Rural Development 2.650.103 1.644.173 and Rural DevelopmentVietnam Prosperity Joint Stock Vietnam Prosperity Joint Stock

Commercial Bank 1.309.597 2.393.643 Commercial BankVientinbank 592.350 17.173 VientinbankStandard Chartered Bank 378.611 135.108 Standard Chartered BankHo Chi Minh City Development Ho Chi Minh City Development

Joint Stock Commercial Bank 361.618 306.646 Joint Stock Commercial BankAn Binh Bank 66.248 580.142 An Binh BankJSC Bank for Foreign Trade JSC Bank for Foreign Trade

of Vietnam 3.744 542.265 of VietnamLain-lain (masing-masing Others



Jumlah 2.387.205.086 1.368.798.535 Total







(Continued)

- 51 -

2018 2017




Jumlah 556.870.290 291.294.848 Total

Euro: Euro:Pihak ketiga: Third parties:

PT Bank CIMB Niaga Tbk 826.799 820.184 PT Bank CIMB Niaga TbkHo Chi Minh City Development Ho Chi Minh City Development

Joint Stock Commercial Bank 22.853 2.093 Joint Stock Commercial BankVietnam Prosperity Joint Stock Vietnam Prosperity Joint Stock

Commercial Bank 63 17.233 Commercial BankAn Binh Bank - 19.089 An Binh Bank

Subjumlah 849.715 858.599 Subtotal




Jumlah 25.945.289 111.075.108 Total

Dolar Singapura: Singapore Dollars:Pihak berelasi: Related parties:

PT Bank Mandiri (Persero) Tbk 37.317 145.687 PT Bank Mandiri (Persero) Tbk

Dong Vietnam: Vietnamese Dong:Pihak ketiga: Third parties:

Á Châu Bank 3.451.308 772.445 Á Châu BankVietnam Bank for Agriculture Vietnam Bank for Agriculture

and Rural Development 2.650.103 1.644.173 and Rural DevelopmentVietnam Prosperity Joint Stock Vietnam Prosperity Joint Stock

Commercial Bank 1.309.597 2.393.643 Commercial BankVientinbank 592.350 17.173 VientinbankStandard Chartered Bank 378.611 135.108 Standard Chartered BankHo Chi Minh City Development Ho Chi Minh City Development

Joint Stock Commercial Bank 361.618 306.646 Joint Stock Commercial BankAn Binh Bank 66.248 580.142 An Binh BankJSC Bank for Foreign Trade JSC Bank for Foreign Trade

of Vietnam 3.744 542.265 of VietnamLain-lain (masing-masing Others



Jumlah 2.387.205.086 1.368.798.535 Total





(Continued)

- 52 -

c. Deposito berjangka dan call deposits c. Time and call deposits

2018 2017

Rupiah: Rupiah:Pihak ketiga: Third parties:

PT Bank Pembangunan Daerah PT Bank Pembangunan DaerahJaw a Barat dan Banten Tbk 275.000.000 170.000.000 Jaw a Barat dan Banten Tbk

PT Bank Maybank Indonesia 203.000.000 - PT Bank Maybank IndonesiaPT Bank CIMB Niaga Tbk 100.000.000 50.000 PT Bank CIMB Niaga TbkPT Bank Danamon Indonesia Tbk 60.300.000 - PT Bank Danamon Indonesia TbkPT Bank Syariah Bukopin 39.500.000 5.000.000 PT Bank Syariah BukopinBPRS Artha Madani 35.000.000 22.000.000 BPRS Artha MadaniPT Bank Bukopin Tbk 30.700.000 532.500.000 PT Bank Bukopin TbkPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Sumatera Barat 30.000.000 20.000.000 Sumatera BaratPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Jaw a Timur Tbk 26.201.467 9.925.704 Jaw a Timur TbkPT Bank Tabungan Pensiunan PT Bank Tabungan Pensiunan

Negara 20.000.000 - NegaraPT Bank Muamalat Tbk 10.504.000 276.000.000 PT Bank Muamalat TbkPT Bank Panin Syariah 7.500.000 - PT Bank Panin SyariahPT Bank Kesejahteraan Ekonomi 5.000.000 6.000.000 PT Bank Kesejahteraan EkonomiPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Jaw a Tengah 4.148.560 4.148.560 Jaw a TengahPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Sulaw esi Selatan dan Sulaw esi Selatan danSulaw esi Barat 1.032.280 13.000.000 Sulaw esi Barat

PT Bank Panin Tbk - 75.000.000 PT Bank Panin TbkPT Bank Syariah Mega Indonesia - 5.000.000 PT Bank Syariah Mega Indonesia

Subjumlah 847.886.307 1.138.624.264 Subtotal

Pihak berelasi: Related parties:PT Bank Rakyat Indonesia PT Bank Rakyat Indonesia

(Persero) Tbk 830.000.000 269.850.000 (Persero) TbkPT Bank Negara Indonesia PT Bank Negara Indonesia

(Persero) Tbk 520.800.000 211.600.000 (Persero) TbkPT Bank Tabungan Negara PT Bank Tabungan Negara

(Persero) Tbk 442.000.000 305.000.000 (Persero) TbkPT Bank Mandiri (Persero) Tbk 210.681.202 308.370.211 PT Bank Mandiri (Persero) TbkPT Bank Syariah Mandiri 16.000.000 13.000.000 PT Bank Syariah MandiriPT Bank Rakyat Indonesia PT Bank Rakyat Indonesia

Agroniaga Tbk 6.000.000 6.500.000 Agroniaga TbkSubjumlah 2.025.481.202 1.114.320.211 Subtotal

Jumlah 2.873.367.509 2.252.944.475 Total

Dolar Amerika Serikat: United States Dollars:Pihak ketiga Third party:

PT Bank Bukopin Tbk - 32.954.658 PT Bank Bukopin Tbk

Subjumlah - 32.954.658 Subtotal

Jumlah 2.873.367.509 2.285.899.133 Total

Suku bunga tahunan atas deposito berjangka dan call deposits adalah sebagai berikut:

Annual interest rates on time and call deposits are as follows:

2018 2017

Rupiah 3,50% - 8,25% 3,50% - 7,75% RupiahDolar Amerika Serikat - 0,75% - 1,25% United States Dollars

Rincian transaksi dan saldo dengan pihak berelasi diungkapkan dalam Catatan 43.

Details of related party transactions and balances are disclosed in Note 43.







(Continued)

- 53 -

6. INVESTASI JANGKA PENDEK 6. SHORT-TERM INVESTMENTS

2018 2017

Kepemilikan saham Share ow nershipPT Sw abina Gatra 6.189.831 6.189.831 PT Sw abina GatraPT Eternit Gresik 1.861.173 1.861.173 PT Eternit GresikPT Sumatera Utara Perkasa Semen 402.000 402.000 PT Sumatera Utara Perkasa Semen

Jumlah 8.453.004 8.453.004 Subtotal

Untuk tujuan pengelompokkan instrumen keuangan, investasi saham kurang dari 20% dikelompokkan sebagai investasi AFS.

For the purpose of financial instrument classification, investment in shares of less than 20% are classified as AFS investment.



7. PIUTANG USAHA 7. TRADE RECEIVABLES

2018 2017Pihak ketiga: Third parties:

Rupiah 4.495.352.007 4.059.868.096 RupiahDolar Amerika Serikat 178.164.614 27.253.565 United States DollarsDong Vietnam 24.258.761 36.897.478 Vietnamese Dong

4.697.775.382 4.124.019.139 Dikurangi: Less:Cadangan penurunan nilai (112.435.948) (92.847.911) Allow ance for impairment losses

4.585.339.434 4.031.171.228 Pihak berelasi: Related parties:

Rupiah 1.216.189.396 871.415.827 RupiahDong Vietnam 12.653.563 12.046.193 Vietnamese Dong

1.228.842.959 883.462.020 Dikurangi: Less:Cadangan penurunan nilai (27.967.036) (28.966.934) Allow ance for impairment losses

1.200.875.923 854.495.086 Jumlah 5.786.215.357 4.885.666.314 Total

Sebelum menerima pelanggan baru, Grup menggunakan sistem penilaian secara internal untuk menilai potensi pelanggan. Untuk selanjutnya batasan yang diatribusikan kepada pelanggan ditinjau minimal 2 kali setahun.

Before accepting new customer, the Group uses an internal assessment system to assess the potential customer. In addition further restrictions attributable to the customer are evaluated at least twice a year.

Rincian pelanggan dengan nilai piutang melebihi 5% dari jumlah saldo piutang usaha adalah sebagai berikut:

The details of the customer with the value of receivables that exceeds 5% of the total trade receivable balance are as follows:

Persentase dari Persentase dariSaldo piutang usaha/ total piutang usaha/ Saldo piutang usaha/ total piutang usaha/

Trade receivable As a percentage of Trade receivable As a percentage ofPelanggan/Customer balance trade receivable balance balance trade receivable balance

Koperasi Warga Semen Gresik 299.765.971 5,18% 299.138.436 6,12%

2018 2017









(Continued)

- 53 -

6. INVESTASI JANGKA PENDEK 6. SHORT-TERM INVESTMENTS

2018 2017

Kepemilikan saham Share ow nershipPT Sw abina Gatra 6.189.831 6.189.831 PT Sw abina GatraPT Eternit Gresik 1.861.173 1.861.173 PT Eternit GresikPT Sumatera Utara Perkasa Semen 402.000 402.000 PT Sumatera Utara Perkasa Semen

Jumlah 8.453.004 8.453.004 Subtotal

Untuk tujuan pengelompokkan instrumen keuangan, investasi saham kurang dari 20% dikelompokkan sebagai investasi AFS.

For the purpose of financial instrument classification, investment in shares of less than 20% are classified as AFS investment.



7. PIUTANG USAHA 7. TRADE RECEIVABLES


Rupiah 4.495.352.007 4.059.868.096 RupiahDolar Amerika Serikat 178.164.614 27.253.565 United States DollarsDong Vietnam 24.258.761 36.897.478 Vietnamese Dong

4.697.775.382 4.124.019.139 Dikurangi: Less:Cadangan penurunan nilai (112.435.948) (92.847.911) Allow ance for impairment losses

4.585.339.434 4.031.171.228 Pihak berelasi: Related parties:

Rupiah 1.216.189.396 871.415.827 RupiahDong Vietnam 12.653.563 12.046.193 Vietnamese Dong

1.228.842.959 883.462.020 Dikurangi: Less:Cadangan penurunan nilai (27.967.036) (28.966.934) Allow ance for impairment losses

1.200.875.923 854.495.086 Jumlah 5.786.215.357 4.885.666.314 Total

Sebelum menerima pelanggan baru, Grup menggunakan sistem penilaian secara internal untuk menilai potensi pelanggan. Untuk selanjutnya batasan yang diatribusikan kepada pelanggan ditinjau minimal 2 kali setahun.

Before accepting new customer, the Group uses an internal assessment system to assess the potential customer. In addition further restrictions attributable to the customer are evaluated at least twice a year.

Rincian pelanggan dengan nilai piutang melebihi 5% dari jumlah saldo piutang usaha adalah sebagai berikut:

The details of the customer with the value of receivables that exceeds 5% of the total trade receivable balance are as follows:

Persentase dari Persentase dariSaldo piutang usaha/ total piutang usaha/ Saldo piutang usaha/ total piutang usaha/

Trade receivable As a percentage of Trade receivable As a percentage ofPelanggan/Customer balance trade receivable balance balance trade receivable balance

Koperasi Warga Semen Gresik 299.765.971 5,18% 299.138.436 6,12%

2018 2017







(Continued)

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Umur piutang usaha bersih adalah sebagai berikut: The aging of net trade receivables is as follows:

2018 2017Lancar 3.972.046.209 3.652.180.557 CurrentLew at jatuh tempo: Overdue:

1 - 45 hari 718.779.829 723.066.350 1 - 45 days46 - 135 hari 390.844.226 262.667.527 46 - 135 days136 - 365 hari 443.849.992 167.725.669 136 - 365 daysLebih dari 365 hari 260.695.101 80.026.211 Over 365 days

Jumlah 5.786.215.357 4.885.666.314 Total

Piutang usaha yang diungkapkan di atas termasuk jumlah yang telah jatuh tempo pada akhir periode pelaporan dimana Grup tidak mengakui cadangan kerugian penurunan nilai piutang karena belum ada perubahan yang signifikan dalam kualitas kredit dan jumlah piutang masih dapat dipulihkan.

Trade receivables disclosed above include amounts that are past due at the end of the reporting period for which the Group has not recognized an allowance for impairment losses because there has not been a significant change in credit quality and the amounts are still considered recoverable.

Mutasi cadangan kerugian penurunan nilai piutang adalah sebagai berikut:

The movement in the allowance for impairment losses on trade receivables is as follows:

2018 2017

Saldo aw al 121.814.845 131.856.072 Beginning balanceCadangan (pemulihan) penyisihan Provision for (reversal of) allow ance

penurunan nilai (Catatan 36) 18.588.139 (10.041.227) for impairment (Note 36)

Saldo akhir 140.402.984 121.814.845 Ending balance

Dalam menentukan pemulihan dari piutang usaha, Grup mempertimbangkan setiap perubahan dalam kualitas kredit dari piutang usaha dari tanggal awal kredit diberikan sampai dengan akhir periode pelaporan. Konsentrasi risiko kredit terbatas karena basis pelanggan adalah besar dan tidak saling berhubungan.

In determining the recoverability of a trade receivables, the Group considers any change in the credit quality of the trade receivables from the date credit was initially granted up to the end of the reporting period. The concentration of credit risk is limited as the customer base is large and unrelated.

Berikut ini merupakan umur piutang usaha yang diturunkan nilainya:

Age of impaired trade receivables are as follows:

2018 2017

Lew at jatuh tempo: Overdue:1 - 45 hari 1.639.686 - 1 - 45 days46 - 135 hari 2.392.602 4.843.474 46 - 135 days136 - 365 hari 1.226.643 6.238.527 136 - 365 daysLebih dari 365 hari 135.144.053 110.732.844 Over 365 days

Jumlah 140.402.984 121.814.845 Total

Berdasarkan hasil kajian keadaan piutang masing-masing pelanggan pada akhir periode pelaporan, manajemen Grup berkeyakinan bahwa cadangan penurunan nilai telah memadai untuk menutup kemungkinan kerugian atas tidak tertagihnya piutang usaha.

Based on a review of the status of the individual receivable accounts at end of reporting period, the management of the Group believes that the allowance for impairment losses is adequate to cover possible losses from uncollectible receivables.

Pada tanggal 31 Desember 2018 dan 2017, sebesar 80,74% dan 65,03% piutang usaha dengan nilai masing-masing sebesar Rp4.671.919.283 dan Rp3.176.999.881 dijamin dengan jaminan berupa bank garansi, deposito berjangka, asuransi kredit, dan harta berwujud (tanah, bangunan dan kendaraan bermotor) oleh pelanggan.

As of December 31, 2018 and 2017, 80.74% and 65.03% of trade receivables with total value amounting to Rp4,671,919,283 and Rp3,176,999,881, respectively are collateralized by bank guarantees, time deposits, credit insurance, and tangible assets (land, buildings and vehicles) by the customers.







(Continued)

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Manajemen berpendapat bahwa piutang usaha yang belum jatuh tempo dan tidak diturunkan nilainya memiliki kualitas kredit yang baik.

Management believes that trade receivables that are neither past due nor impaired have good credit quality.

Piutang usaha tertentu digunakan sebagai jaminan atas fasilitas pinjaman non-cash dan fasilitas kredit investasi (Catatan 20).

Certain trade receivables are used as collateral for non-cash loan facilities and credit investment facilities (Note 20).

8. PIUTANG LAIN-LAIN 8. OTHER RECEIVABLES 2018 2017

Pihak ketiga 166.983.793 85.566.912 Third parties

Dikurangi: Less:Cadangan penurunan nilai (38.787.724) (12.562.386) Allow ance for impairment losses

128.196.069 73.004.526

Pihak berelasi 46.872.594 39.297.579 Related parties


45.305.835 36.343.891

Jumlah 173.501.904 109.348.417 Total



Mutasi cadangan penurunan nilai piutang lain-lain adalah sebagai berikut:

The movements in the allowance for impairment losses of other receivables is as follows:

2018 2017

Saldo aw al 15.516.074 11.004.363 Beginning balancePenambahan (Catatan 36) 24.838.409 4.511.711 Additions (Note 36)


Berdasarkan hasil kajian keadaan akun piutang lain-lain setiap debitur pada akhir periode pelaporan, manajemen Grup berkeyakinan bahwa cadangan penurunan nilai telah memadai untuk menutup kemungkinan kerugian atas tidak tertagihnya piutang lain-lain.

Based on a review of the status of the individual other receivable accounts at the end of reporting period, management of the Group believes that the allowance for impairment losses is adequate to cover possible losses from uncollectible other receivables.

Piutang lain-lain pihak berelasi adalah berkaitan dengan persewaan tanah dan bangunan kepada pihak berelasi dan jasa lainnya. Akun tersebut tidak dikenakan bunga dan jatuh tempo dalam satu (1) tahun.

Other receivables from related parties are pertaining to land and building rental to related parties and other services. These accounts are not subject to interest and are due within one (1) year.







(Continued)

- 55 -

Manajemen berpendapat bahwa piutang usaha yang belum jatuh tempo dan tidak diturunkan nilainya memiliki kualitas kredit yang baik.

Management believes that trade receivables that are neither past due nor impaired have good credit quality.

Piutang usaha tertentu digunakan sebagai jaminan atas fasilitas pinjaman non-cash dan fasilitas kredit investasi (Catatan 20).

Certain trade receivables are used as collateral for non-cash loan facilities and credit investment facilities (Note 20).

8. PIUTANG LAIN-LAIN 8. OTHER RECEIVABLES 2018 2017

Pihak ketiga 166.983.793 85.566.912 Third parties


128.196.069 73.004.526



45.305.835 36.343.891

Jumlah 173.501.904 109.348.417 Total



Mutasi cadangan penurunan nilai piutang lain-lain adalah sebagai berikut:

The movements in the allowance for impairment losses of other receivables is as follows:

2018 2017

Saldo aw al 15.516.074 11.004.363 Beginning balancePenambahan (Catatan 36) 24.838.409 4.511.711 Additions (Note 36)


Berdasarkan hasil kajian keadaan akun piutang lain-lain setiap debitur pada akhir periode pelaporan, manajemen Grup berkeyakinan bahwa cadangan penurunan nilai telah memadai untuk menutup kemungkinan kerugian atas tidak tertagihnya piutang lain-lain.

Based on a review of the status of the individual other receivable accounts at the end of reporting period, management of the Group believes that the allowance for impairment losses is adequate to cover possible losses from uncollectible other receivables.

Piutang lain-lain pihak berelasi adalah berkaitan dengan persewaan tanah dan bangunan kepada pihak berelasi dan jasa lainnya. Akun tersebut tidak dikenakan bunga dan jatuh tempo dalam satu (1) tahun.

Other receivables from related parties are pertaining to land and building rental to related parties and other services. These accounts are not subject to interest and are due within one (1) year.





(Continued)

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9. PERSEDIAAN - BERSIH 9. INVENTORIES - NET

2018 2017

Bahan baku dan penolong 1.200.151.950 977.329.863 Raw and indirect materialsSuku cadang 1.135.262.287 1.178.659.147 Spare partsBarang dalam proses 689.587.263 867.063.144 Work in processBarang jadi 596.949.328 682.574.004 Finished goodsBarang dalam perjalanan 83.665.357 97.778.260 Goods in transit

3.705.616.185 3.803.404.418 Dikurangi: Less:Cadangan persediaan usang Allow ance for obsolete

dan bergerak lambat (161.473.756) (117.072.229) and slow moving inventories

Jumlah 3.544.142.429 3.686.332.189 Total

Manajemen Grup berkeyakinan bahwa cadangan persediaan usang dan bergerak lambat telah mencukupi untuk menutup kemungkinan kerugian yang timbul dari persediaan usang dan bergerak lambat.

The management of the Group believes that the allowance for obsolete and slow moving inventories is adequate to cover possible losses from obsolete and slow moving inventories.

Mutasi cadangan persediaan usang dan bergerak lambat adalah sebagai berikut:

The movement in the allowance for obsolete and slow moving inventories is as follows:

2018 2017

Saldo aw al 117.072.229 116.652.359 Beginning balancePenambahan 44.401.527 419.870 Additions


Pada tanggal 31 Desember 2018 dan 2017, persediaan tertentu dijadikan jaminan atas pinjaman tertentu (Catatan 20).

As of December 31, 2018 and 2017, certain inventories are pledged as collateral for borrowings (Note 20).

Pada tanggal 31 Desember 2018 dan 2017, persediaan suku cadang Grup telah diasuransikan terhadap risiko kerugian yang disebabkan oleh bencana alam, kebakaran, dan risiko kerugian lainnya dengan nilai pertanggungan masing-masing sebesar Rp1.496.941.235 dan Rp1.534.145.257

As of December 31, 2018 and 2017, inventories spareparts of the Group are covered by insurance against the risk of loss due to natural disaster, fire, and other risks with a total coverage of Rp1,496,941,235 and Rp1,534,145,257, respectively.

Menurut pendapat manajemen Grup, nilai pertanggungan asuransi atas suku cadang tersebut telah memadai untuk menutupi kerugian yang mungkin timbul dari risiko-risiko tersebut.

The management of the Group believes that the insurance coverage on spare parts is adequate to cover possible losses arising from such risks.

10. UANG MUKA 10. ADVANCES

2018 2017

Pembelian: PurchasesLokal 88.170.734 110.081.242 DomesticImpor 23.779.819 31.923.821 Imports

Dinas operasional 32.937.083 55.462.175 OperationalLain-lain (di baw ah Rp10.000.000) 18.084.413 11.647.947 Others (each below Rp10,000,000)

Jumlah 162.972.049 209.115.185 Total







(Continued)

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11. BEBAN DIBAYAR DI MUKA 11. PREPAID EXPENSES

2018 2017

Sew a 31.113.159 36.806.856 RentAsuransi 11.420.989 13.215.548 InsuranceLain-lain (di baw ah Rp10.000.000) 19.193.844 45.780.234 Others (each below Rp10,000,000)

Jumlah 61.727.992 95.802.638 Total

12. PAJAK DIBAYAR DI MUKA 12. PREPAID TAXES

2018 2017

Perseroan The CompanyPajak Penghasilan Badan Corporate Income Tax

(Catatan 40): (Note 40):2017 432.328.984 432.328.984 20172016 59.060.222 151.450.316 20162015 - 17.398.374 2015


Entitas anak SubsidiariesPajak Penghasilan Badan 284.986.784 281.621.242 Corporate Income TaxPajak Pertambahan Nilai 205.840.821 248.740.351 Value Added TaxLain-lain (di baw ah Rp1.000.000) 3.511.505 1.022.450 Others (each below Rp1,000,000)


Jumlah 985.728.316 1.132.561.717 Total

13. INVESTASI PADA ENTITAS ASOSIASI 13. INVESTMENT IN ASSOCIATES

Tempat

Nama entitas asosiasi/ Aktivitas utama/ kedudukan/

Name of associates Principal activity Domicile 2018 2017 2018 2017

PT Swadaya Graha Kontraktor dan persewaan alat-alat berat/ Gresik 33,06% 33,06% 84.992.924 82.914.019 Contractor and lessor of heavy equipment

PT Igasar Distribusi semen/Cement distribution Padang 12,00% 12,00% 644.784 750.621

Jumlah / Total 85.637.708 83.664.640

Nilai investasi/

Investment amount

Persentase kepemilikan dan

hak suara yang dimiliki Grup/

Percentage of ownership

interest and voting power

held by the Group

Seluruh entitas asosiasi dicatat dengan menggunakan metode ekuitas dalam laporan keuangan konsolidasian ini.

All of the above associates are accounted for using the equity method in these consolidated financial statements.

Persentase kepemilikan entitas anak (SP) pada PT Igasar kurang dari 20% namun kepemilikan tersebut diklasifikasi sebagai investasi pada entitas asosiasi karena SP mempunyai pengaruh signifikan pada PT Igasar melalui Koperasi Karyawan Semen Padang.

The percentage ownership of the subsidiary (SP) in PT Igasar is less than 20%, but such ownership is classified as investment in associate as SP has significant influence on PT Igasar through Koperasi Karyawan Semen Padang.







(Continued)

- 57 -

11. BEBAN DIBAYAR DI MUKA 11. PREPAID EXPENSES

2018 2017

Sew a 31.113.159 36.806.856 RentAsuransi 11.420.989 13.215.548 InsuranceLain-lain (di baw ah Rp10.000.000) 19.193.844 45.780.234 Others (each below Rp10,000,000)

Jumlah 61.727.992 95.802.638 Total

12. PAJAK DIBAYAR DI MUKA 12. PREPAID TAXES

2018 2017

Perseroan The CompanyPajak Penghasilan Badan Corporate Income Tax

(Catatan 40): (Note 40):2017 432.328.984 432.328.984 20172016 59.060.222 151.450.316 20162015 - 17.398.374 2015


Entitas anak SubsidiariesPajak Penghasilan Badan 284.986.784 281.621.242 Corporate Income TaxPajak Pertambahan Nilai 205.840.821 248.740.351 Value Added TaxLain-lain (di baw ah Rp1.000.000) 3.511.505 1.022.450 Others (each below Rp1,000,000)


Jumlah 985.728.316 1.132.561.717 Total

13. INVESTASI PADA ENTITAS ASOSIASI 13. INVESTMENT IN ASSOCIATES

Tempat

Nama entitas asosiasi/ Aktivitas utama/ kedudukan/

Name of associates Principal activity Domicile 2018 2017 2018 2017

PT Swadaya Graha Kontraktor dan persewaan alat-alat berat/ Gresik 33,06% 33,06% 84.992.924 82.914.019 Contractor and lessor of heavy equipment

PT Igasar Distribusi semen/Cement distribution Padang 12,00% 12,00% 644.784 750.621

Jumlah / Total 85.637.708 83.664.640

Nilai investasi/

Investment amount

Persentase kepemilikan dan

hak suara yang dimiliki Grup/

Percentage of ownership

interest and voting power

held by the Group

Seluruh entitas asosiasi dicatat dengan menggunakan metode ekuitas dalam laporan keuangan konsolidasian ini.

All of the above associates are accounted for using the equity method in these consolidated financial statements.

Persentase kepemilikan entitas anak (SP) pada PT Igasar kurang dari 20% namun kepemilikan tersebut diklasifikasi sebagai investasi pada entitas asosiasi karena SP mempunyai pengaruh signifikan pada PT Igasar melalui Koperasi Karyawan Semen Padang.

The percentage ownership of the subsidiary (SP) in PT Igasar is less than 20%, but such ownership is classified as investment in associate as SP has significant influence on PT Igasar through Koperasi Karyawan Semen Padang.





(Continued)

- 58 -

Ringkasan informasi keuangan entitas asosiasi dibawah ini merupakan jumlah yang disajikan dalam laporan keuangan entitas asosiasi yang disusun sesuai dengan Standar Akuntansi Keuangan Indonesia.

The summarized financial information below represents amounts shown in the associates’ financial statements prepared in accordance Indonesian Financial Accounting Standards.

2018 2017 2018 2017

Aset Lancar 863.868.907 594.305.567 71.237.163 85.725.528 Current assetsAset tidak lancar 130.806.403 124.175.199 22.054.169 24.041.479 Non-current assetsJumlah Aset 994.675.310 718.480.766 93.291.332 109.767.007 Total Assets

Liabilitas Jangka Pendek 787.671.823 533.477.520 80.927.010 86.871.052 Current liabilitiesLiabilitas Jangka Panjang 68.007.546 54.322.922 6.991.121 16.640.778 Non-current liabilitiesEkuitas 138.995.941 130.680.324 5.373.201 6.255.177 EquityJumlah Liabilitas dan Ekuitas 994.675.310 718.480.766 93.291.332 109.767.007 Total Liaibities and Equity

Pendapatan 1.199.228.268 614.279.462 233.142.678 288.487.872 RevenueBeban (1.185.164.989) (657.808.802) (237.009.718) (284.382.624) ExpensesLaba (rugi) tahun berjalan 14.063.279 (43.529.340) (3.867.040) 4.105.248 Profit (loss) for the year

Penghasilan komprehensif lain yang Other comprehensive income dapat diatribusikan kepada attributable toPemilik entitas Induk (5.747.662) 4.599.519 - - Ow ners of the Company

Jumlah laba komprehensif yang Total comprehensive income dapat diatribusikan kepada attributable to Pemilik entitas Induk 8.315.617 (38.929.821) (3.867.040) 4.105.248 Ow ners of the Company

PT Swadaya Graha PT Igasar

Berikut ini merupakan rekonsiliasi dari ringkasan informasi keuangan di atas terhadap jumlah tercatat dari bagian entitas asosiasi yang diakui dalam laporan keuangan konsolidasian:

Reconciliation of the above summarized financial information to the carrying amount of interest in the associates recognized in the consolidated financial statements are as follows:

2018 2017 2018 2017

Aset bersih entitas asosiasi 138.995.941 130.680.324 5.373.201 6.255.177 Net assets of the associateProporsi bagian kepemilikan Proportion of the Group's

Grup 33,06% 33,06% 12,00% 12,00% ow nership interestEkuitas yang diatribusikan ke Grup 45.952.058 43.202.915 644.784 750.621 Equity attributable to GroupPenyesuaian nilai w ajar Fair value adjustments arising

dari akuisisi SIL 30.517.106 30.517.106 - - from acquisition of SILPenyesuaian 8.523.760 9.193.998 - - Adjustments

Nilai tercatat bagian Grup 84.992.924 82.914.019 644.784 750.621 Carrying amount of the Group's interest

PT Swadya Graha PT Igasar

Bagian penghasilan

Saldo komprehensif lain Saldo1 Januari Bagian entitas asosiasi/ 31 Desember

2018/ laba (rugi) Share in Other 2018/ PersentaseBalance at bersih/ comprehensive Balance at kepemilikan/January 1, Equity in net Dividen/ income of December 31, Percentage of

Nama entitas asosiasi 2018 profit (loss) Dividends associated 2018 ownership Name of associate

Perseroan The CompanyPT Sw adaya Graha 82.914.019 2.078.905 - - 84.992.924 33,06% PT Sw adaya Graha

Entitas anak (SP) Subsidiary (SP)PT Igasar 750.621 (472.447) (22.500) 389.110 644.784 12,00% PT Igasar

83.664.640 1.606.458 (22.500) 389.110 85.637.708

Bagian penghasilanSaldo komprehensif lain Saldo

1 Januari Bagian entitas asosiasi/ 31 Desember2017/ laba (rugi) Share in Other 2017/ Persentase

Balance at bersih/ comprehensive Balance at kepemilikan/January 1, Equity in net Dividen/ income of December 31, Percentage of

Nama entitas asosiasi 2017 profit (loss) Dividends associated 2017 ownership Name of associate

Perseroan The CompanyPT Sw adaya Graha 93.306.644 (9.732.455) (660.170) - 82.914.019 33,06% PT Sw adaya Graha

Entitas anak (SP) Subsidiary (SP)PT Igasar 677.999 95.122 (22.500) - 750.621 12,00% PT Igasar

93.984.643 (9.637.333) (682.670) - 83.664.640







(Continued)

- 59 -

14. PROPERTI INVESTASI 14. INVESTMENT PROPERTIES

1 Januari/ 31 Desember/January 1, Penambahan/ Pengurangan/ Reklasifikasi/ December 31,

2018 Additions Deductions Reclassifications 2018Biaya perolehan Acquisition costTanah 3.843.234 - (127.484) - 3.715.750 LandBangunan dan prasarana 232.055.154 542.108 - - 232.597.262 Buildings and infrastructure

Jumlah 235.898.388 542.108 (127.484) - 236.313.012 Total

Akumulasi penyusutan Accumulated depreciationBangunan dan prasarana 89.436.395 14.833.878 - - 104.270.273 Buildings and infrastructure

Nilai tercatat neto 146.461.993 132.042.739 Net carrying amount


2017 Additions Deductions Reclassifications 2017Biaya perolehan Acquisition costTanah 3.843.234 - - - 3.843.234 LandBangunan dan prasarana 231.096.288 958.866 - - 232.055.154 Buildings and infrastructure

Jumlah 234.939.522 958.866 - - 235.898.388 Total



Pada tanggal 31 Desember 2018 dan 2017, nilai tercatat properti investasi SP masing-masing sebesar Rp92.397.995 dan Rp98.446.934. Nilai wajar properti investasi pada tanggal 31 Desember 2018 adalah sebesar Rp104.387.401, dihasilkan menggunakan dasar yang digunakan dalam penilaian pada tanggal 25 Oktober 2018 oleh KJPP Abdullah Fitriantoro & Rekan, penilai independen. Penilaian dilakukan berdasarkan metode pendekatan biaya.

AS of December 31, 2018 and 2017, carrying amountof SP’s investment properties amounted to Rp92,397,995 and Rp98,446,934, respectively. The fair value of the investment properties as of December 31, 2018, amounted to Rp104,387,401, and has been arrived at on the basis of a valuation carried out at October 25, 2018 by KJPP Abdullah Fitriantoro & Rekan, independent valuers. The valuation was done based on cost approach method.

Pada tanggal 31 Desember 2018 dan 2017, nilai tercatat properti investasi KIG masing-masing sebesar Rp39.644.744 dan Rp48.015.059. Nilai wajar properti investasi milik KIG pada tanggal 31 Desember 2017 sebesar Rp647.881.000. Nilai wajar ini berdasarkan laporan penilaian dari KJPP Satria Iskandar Setiawan dan Rekan Nomor R-PPC/SISCO-SBY/SBY/SW/071217 tanggal 9 Desember 2017 dan KJPP Samsul Hadi, Wahyono Adi, Hendra Gunawan dan Rekan Nomor PP.SAH-01.SBY.V.16.012 tanggal 30 Mei 2016.

As of December 31, 2018 and 2017, carrying amount of KIG’s investment properties amounted to Rp39,644,744 and Rp48,01,059, respectively. The fair value of KIG’s investment properties amounted to Rp647,881,000 in 2017. There were based on the valuation reports carried out by KJPP Satria Iskandar Setiawan dan Rekan Nomor R-PPC/SISCO-SBY/SBY/SW/071217 dated December 9, 2017 and KJPP Samsul Hadi, Wahyono Adi, Hendra Gunawan and Partners No. PP.SAH 01.SBY.V.16.012 dated May 30, 2016, respectively.

Pendekatan yang digunakan adalah: 1. Penilaian tanah menggunakan pendekatan nilai

pasar; 2. Penilaian bangunan menggunakan pendekatan

biaya.

The approach used are: 1. Assessment of land used the market value

approach; 2. Assessment of buildings used the cost

approach. Nilai wajar properti diatas didasarkan pada teknik penilaian yang mencakup input untuk aset atau liabilitas yang bukan berdasarkan data pasar yang dapat diobservasi (input yang tidak dapat diobservasi) menggunakan level 3 pengukuran nilai wajar.

The fair values of investment properties are based on valuation techniques that include inputs that are not based on observable market data (unobservable inputs), using level 3 fair value measurements.

Beban penyusutan sebesar Rp14.833.878 dan Rp15.190.918 masing-masing untuk tahun 2018 dan 2017 dicatat sebagai beban pokok pendapatan.

Depreciation expense amounting to Rp14,833,878 and Rp15,190,198 in 2018 and 2017, respectively, were recorded under cost of revenue.







(Continued)

- 59 -

14. PROPERTI INVESTASI 14. INVESTMENT PROPERTIES


2018 Additions Deductions Reclassifications 2018Biaya perolehan Acquisition costTanah 3.843.234 - (127.484) - 3.715.750 LandBangunan dan prasarana 232.055.154 542.108 - - 232.597.262 Buildings and infrastructure

Jumlah 235.898.388 542.108 (127.484) - 236.313.012 Total




2017 Additions Deductions Reclassifications 2017Biaya perolehan Acquisition costTanah 3.843.234 - - - 3.843.234 LandBangunan dan prasarana 231.096.288 958.866 - - 232.055.154 Buildings and infrastructure

Jumlah 234.939.522 958.866 - - 235.898.388 Total



Pada tanggal 31 Desember 2018 dan 2017, nilai tercatat properti investasi SP masing-masing sebesar Rp92.397.995 dan Rp98.446.934. Nilai wajar properti investasi pada tanggal 31 Desember 2018 adalah sebesar Rp104.387.401, dihasilkan menggunakan dasar yang digunakan dalam penilaian pada tanggal 25 Oktober 2018 oleh KJPP Abdullah Fitriantoro & Rekan, penilai independen. Penilaian dilakukan berdasarkan metode pendekatan biaya.

AS of December 31, 2018 and 2017, carrying amountof SP’s investment properties amounted to Rp92,397,995 and Rp98,446,934, respectively. The fair value of the investment properties as of December 31, 2018, amounted to Rp104,387,401, and has been arrived at on the basis of a valuation carried out at October 25, 2018 by KJPP Abdullah Fitriantoro & Rekan, independent valuers. The valuation was done based on cost approach method.

Pada tanggal 31 Desember 2018 dan 2017, nilai tercatat properti investasi KIG masing-masing sebesar Rp39.644.744 dan Rp48.015.059. Nilai wajar properti investasi milik KIG pada tanggal 31 Desember 2017 sebesar Rp647.881.000. Nilai wajar ini berdasarkan laporan penilaian dari KJPP Satria Iskandar Setiawan dan Rekan Nomor R-PPC/SISCO-SBY/SBY/SW/071217 tanggal 9 Desember 2017 dan KJPP Samsul Hadi, Wahyono Adi, Hendra Gunawan dan Rekan Nomor PP.SAH-01.SBY.V.16.012 tanggal 30 Mei 2016.

As of December 31, 2018 and 2017, carrying amount of KIG’s investment properties amounted to Rp39,644,744 and Rp48,01,059, respectively. The fair value of KIG’s investment properties amounted to Rp647,881,000 in 2017. There were based on the valuation reports carried out by KJPP Satria Iskandar Setiawan dan Rekan Nomor R-PPC/SISCO-SBY/SBY/SW/071217 dated December 9, 2017 and KJPP Samsul Hadi, Wahyono Adi, Hendra Gunawan and Partners No. PP.SAH 01.SBY.V.16.012 dated May 30, 2016, respectively.

Pendekatan yang digunakan adalah: 1. Penilaian tanah menggunakan pendekatan nilai

pasar; 2. Penilaian bangunan menggunakan pendekatan

biaya.

The approach used are: 1. Assessment of land used the market value

approach; 2. Assessment of buildings used the cost

approach. Nilai wajar properti diatas didasarkan pada teknik penilaian yang mencakup input untuk aset atau liabilitas yang bukan berdasarkan data pasar yang dapat diobservasi (input yang tidak dapat diobservasi) menggunakan level 3 pengukuran nilai wajar.

The fair values of investment properties are based on valuation techniques that include inputs that are not based on observable market data (unobservable inputs), using level 3 fair value measurements.

Beban penyusutan sebesar Rp14.833.878 dan Rp15.190.918 masing-masing untuk tahun 2018 dan 2017 dicatat sebagai beban pokok pendapatan.

Depreciation expense amounting to Rp14,833,878 and Rp15,190,198 in 2018 and 2017, respectively, were recorded under cost of revenue.





(Continued)

- 60 -

Penghasilan sewa properti investasi sampai dengan tahun 2018 dan 2017 masing-masing sebesar Rp39.114.719 dan Rp35.457.878.

Rental income on investment properties In 2018 and 2017 amounted to Rp39,114,719 and Rp35,457,878, respectively.

15. ASET TETAP 15. FIXED ASSETS

1 Januari/ Selisih kurs/ 31 Desember/January 1, Penambahan/ Pengurangan/ Reklasifikasi/ Foreign December 31,

2018 Additions Deductions Reclassifications exchange 2018Biaya perolehan: Acquisition cost:

Pemilikan Langsung Direct OwnershipTanah 819.190.379 8.897.524 - 19.196.377 - 847.284.280 LandTanah pertambangan 942.601.730 2.284.997 - 76.361.086 - 1.021.247.813 Mining propertiesBangunan, jalan, jembatan Buildings, roads, bridges

dan pelabuhan 11.545.696.220 58.494.292 (4.148.607) 670.056.111 63.689.159 12.333.787.175 and harborsMesin-mesin 27.302.870.234 173.523.883 (8.705.647) 1.464.588.233 117.572.166 29.049.848.869 MachineriesAlat-alat berat dan Heavy equipment and

kendaraan 2.517.240.137 46.253.808 (23.855.928) 124.337.874 626.572 2.664.602.463 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 857.302.958 31.935.739 (233.008) 205.982.525 209.259 1.095.197.473 equipment

Aset dalam pembangunan: Construction in progress:Tanah 88.995.145 76.490.264 - (95.722.766) - 69.762.643 LandBangunan, jalan, jembatan Buildings, roads, bridges

dan pelabuhan 707.025.153 396.373.260 (2.013.928) (697.463.344) 3.213.398 407.134.539 and harborsMesin-mesin 1.912.462.242 699.193.136 - (1.341.413.865) - 1.270.241.513 MachineryAlat-alat berat dan Heavy equipment and

kendaraan 75.386.199 166.558.147 - (216.563.796) - 25.380.550 vehiclesPeralatan 127.841.814 99.836.042 (108.500) (169.652.363) - 57.916.993 EquipmentPabrik semen 171.920.190 18.883.395 - - - 190.803.585 Cement plant

Subjumlah 47.068.532.401 1.778.724.487 (39.065.618) 39.706.072 185.310.554 49.033.207.896 Subtotal

Aset sewa pembiayaan Leased AssetsBangunan 174.644.636 21.158.079 (40.290.841) - - 155.511.874 BuildingsAlat-alat berat dan Heavy equipment and

kendaraan 613.464.020 - (82.910.763) (39.706.072) - 490.847.185 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 36.150.521 - - - - 36.150.521 equipment

Subjumlah 824.259.177 21.158.079 (123.201.604) (39.706.072) - 682.509.580 Subtotal

Jumlah 47.892.791.578 1.799.882.566 (162.267.222) - 185.310.554 49.715.717.476 Total

Akumulasi penyusutan Accumulated depreciationdan deplesi: and depletion:

Pemilikan Langsung Direct OwnershipTanah pertambangan 105.426.809 3.745.748 - (165.303) - 109.007.254 Mining propertiesBangunan, jalan, jembatan Buildings, roads, bridges

dan pelabuhan 2.797.607.947 283.620.221 (2.038.093) 165.303 21.459.368 3.100.814.746 and harboursMesin-mesin 10.106.642.470 964.953.885 (5.584.165) - 58.661.000 11.124.673.190 MachineriesAlat-alat berat dan Heavy equipment and

kendaraan 1.415.759.508 190.189.880 (18.645.785) 105.000 485.525 1.587.894.128 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 662.386.816 78.540.201 (184.008) - 177.903 740.920.912 equipment

15.087.823.550 1.521.049.935 (26.452.051) 105.000 80.783.796 16.663.310.230 SubtotalAset sewa pembiayaan Leased AssetsBangunan 100.792.043 27.433.587 (14.617.771) - - 113.607.859 BuildingsAlat-alat berat dan Heavy equipment and

kendaraan 165.004.554 77.165.833 (68.023.801) (105.000) - 174.041.586 vehiclesPerlengkapan dan peralatan Furniture and office


Subjumlah 281.658.430 104.599.420 (82.641.572) (105.000) - 303.511.278 Subtotal

Jumlah 15.369.481.980 1.625.649.355 (109.093.623) - 80.783.796 16.966.821.508 Total

Nilai tercatat neto 32.523.309.598 32.748.895.968 Net carrying amount







(Continued)

- 61 -



Pemilikan Langsung Direct OwnershipTanah 388.616.721 11.971.076 - 418.602.582 - 819.190.379 LandTanah pertambangan 660.051.929 7.388.573 - 275.161.228 - 942.601.730 Mining propertiesBangunan, jalan, jembatan Buildings, roads, bridges

dan pelabuhan 8.021.905.571 86.619.209 (6.137.827) 3.461.092.397 (17.783.130) 11.545.696.220 and harborsMesin-mesin 20.348.856.734 281.661.138 (12.233.954) 6.717.318.124 (32.731.808) 27.302.870.234 MachineriesAlat-alat berat dan Heavy equipment and

kendaraan 2.101.642.733 430.954.612 (116.788.730) 101.606.962 (175.440) 2.517.240.137 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 780.718.101 54.710.062 (901.716) 22.834.454 (57.943) 857.302.958 equipment


dan pelabuhan 1.914.698.918 740.734.714 - (1.947.562.175) (846.304) 707.025.153 and harborsMesin-mesin 3.915.462.660 1.105.056.126 - (3.108.056.544) - 1.912.462.242 MachineryAlat-alat berat dan Heavy equipment and

kendaraan 52.714.849 125.039.145 - (102.367.795) - 75.386.199 vehiclesPeralatan 625.635.807 77.804.712 - (575.598.705) - 127.841.814 EquipmentPabrik semen 4.052.044.735 712.064.315 - (4.592.188.860) - 171.920.190 Cement plant

Subjumlah 43.585.962.704 3.670.772.003 (136.062.227) (545.454) (51.594.625) 47.068.532.401 Subtotal

Aset sewa pembiayaan Leased AssetsBangunan 221.449.918 - (46.805.282) - - 174.644.636 BuildingsAlat-alat berat dan Heavy equipment and

kendaraan 597.357.736 21.591.962 (6.031.132) 545.454 - 613.464.020 vehiclesPerlengkapan dan peralatan Furniture and office


Subjumlah 854.958.175 21.591.962 (52.836.414) 545.454 - 824.259.177 Subtotal

Jumlah 44.440.920.879 3.692.363.965 (188.898.641) - (51.594.625) 47.892.791.578 Total


Pemilikan Langsung Direct OwnershipTanah pertambangan 102.395.185 3.031.624 - - - 105.426.809 Mining propertiesBangunan, jalan, jembatan Buildings, roads, bridges

dan pelabuhan 2.472.053.503 330.970.306 (1.294.310) - (4.121.552) 2.797.607.947 and harboursMesin-mesin 8.827.639.785 1.294.174.226 (11.187.886) - (3.983.655) 10.106.642.470 MachineriesAlat-alat berat dan Heavy equipment and

kendaraan 1.353.944.175 174.087.822 (112.935.416) 894.005 (231.078) 1.415.759.508 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 580.059.516 83.016.701 (894.323) 274.562 (69.640) 662.386.816 equipment

13.336.092.164 1.885.280.679 (126.311.935) 1.168.567 (8.405.925) 15.087.823.550 SubtotalAset sewa pembiayaan Leased AssetsBangunan 116.646.103 23.150.340 (39.004.400) - - 100.792.043 BuildingsAlat-alat berat dan Heavy equipment and

kendaraan 125.823.407 43.837.279 (4.656.132) - - 165.004.554 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 15.608.998 252.835 - - - 15.861.833 equipment

Subjumlah 258.078.508 67.240.454 (43.660.532) - - 281.658.430 Subtotal

Jumlah 13.594.170.672 1.952.521.133 (169.972.467) 1.168.567 (8.405.925) 15.369.481.980 Total


Beban penyusutan dan deplesi aset tetap dialokasikan sebagai berikut:

Depreciation and depletion expense of fixed assets were allocated as follows:

2018 2017

Beban pabrikasi 1.506.131.015 1.831.727.394 Manufacturing overheadBeban penjualan, umum dan Selling, general and administration

administrasi 117.328.414 120.793.739 expensesBeban lain-lain 2.189.926 - Other expenses

Jumlah 1.625.649.355 1.952.521.133 Total

Hak atas tanah Grup berupa Sertifikat Hak Milik (“SHM”) dan Sertifikat Hak Guna Bangunan (“SHGB”). SHGB memiliki masa berlaku antara tahun 2019 hingga 2044. Manajemen berpendapat bahwa SHGB tersebut dapat diperpanjang.

The Group’s land represents freehold land (“SHM”) and land-use rights (“SHGB”). The SHGB will expire between 2019 until 2044. Management believes that the SHGB are extendable.







(Continued)

- 61 -



Pemilikan Langsung Direct OwnershipTanah 388.616.721 11.971.076 - 418.602.582 - 819.190.379 LandTanah pertambangan 660.051.929 7.388.573 - 275.161.228 - 942.601.730 Mining propertiesBangunan, jalan, jembatan Buildings, roads, bridges

dan pelabuhan 8.021.905.571 86.619.209 (6.137.827) 3.461.092.397 (17.783.130) 11.545.696.220 and harborsMesin-mesin 20.348.856.734 281.661.138 (12.233.954) 6.717.318.124 (32.731.808) 27.302.870.234 MachineriesAlat-alat berat dan Heavy equipment and

kendaraan 2.101.642.733 430.954.612 (116.788.730) 101.606.962 (175.440) 2.517.240.137 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 780.718.101 54.710.062 (901.716) 22.834.454 (57.943) 857.302.958 equipment


dan pelabuhan 1.914.698.918 740.734.714 - (1.947.562.175) (846.304) 707.025.153 and harborsMesin-mesin 3.915.462.660 1.105.056.126 - (3.108.056.544) - 1.912.462.242 MachineryAlat-alat berat dan Heavy equipment and

kendaraan 52.714.849 125.039.145 - (102.367.795) - 75.386.199 vehiclesPeralatan 625.635.807 77.804.712 - (575.598.705) - 127.841.814 EquipmentPabrik semen 4.052.044.735 712.064.315 - (4.592.188.860) - 171.920.190 Cement plant

Subjumlah 43.585.962.704 3.670.772.003 (136.062.227) (545.454) (51.594.625) 47.068.532.401 Subtotal

Aset sewa pembiayaan Leased AssetsBangunan 221.449.918 - (46.805.282) - - 174.644.636 BuildingsAlat-alat berat dan Heavy equipment and

kendaraan 597.357.736 21.591.962 (6.031.132) 545.454 - 613.464.020 vehiclesPerlengkapan dan peralatan Furniture and office


Subjumlah 854.958.175 21.591.962 (52.836.414) 545.454 - 824.259.177 Subtotal

Jumlah 44.440.920.879 3.692.363.965 (188.898.641) - (51.594.625) 47.892.791.578 Total


Pemilikan Langsung Direct OwnershipTanah pertambangan 102.395.185 3.031.624 - - - 105.426.809 Mining propertiesBangunan, jalan, jembatan Buildings, roads, bridges

dan pelabuhan 2.472.053.503 330.970.306 (1.294.310) - (4.121.552) 2.797.607.947 and harboursMesin-mesin 8.827.639.785 1.294.174.226 (11.187.886) - (3.983.655) 10.106.642.470 MachineriesAlat-alat berat dan Heavy equipment and

kendaraan 1.353.944.175 174.087.822 (112.935.416) 894.005 (231.078) 1.415.759.508 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 580.059.516 83.016.701 (894.323) 274.562 (69.640) 662.386.816 equipment

13.336.092.164 1.885.280.679 (126.311.935) 1.168.567 (8.405.925) 15.087.823.550 SubtotalAset sewa pembiayaan Leased AssetsBangunan 116.646.103 23.150.340 (39.004.400) - - 100.792.043 BuildingsAlat-alat berat dan Heavy equipment and

kendaraan 125.823.407 43.837.279 (4.656.132) - - 165.004.554 vehiclesPerlengkapan dan peralatan Furniture and office

kantor 15.608.998 252.835 - - - 15.861.833 equipment

Subjumlah 258.078.508 67.240.454 (43.660.532) - - 281.658.430 Subtotal

Jumlah 13.594.170.672 1.952.521.133 (169.972.467) 1.168.567 (8.405.925) 15.369.481.980 Total


Beban penyusutan dan deplesi aset tetap dialokasikan sebagai berikut:

Depreciation and depletion expense of fixed assets were allocated as follows:

2018 2017

Beban pabrikasi 1.506.131.015 1.831.727.394 Manufacturing overheadBeban penjualan, umum dan Selling, general and administration

administrasi 117.328.414 120.793.739 expensesBeban lain-lain 2.189.926 - Other expenses

Jumlah 1.625.649.355 1.952.521.133 Total

Hak atas tanah Grup berupa Sertifikat Hak Milik (“SHM”) dan Sertifikat Hak Guna Bangunan (“SHGB”). SHGB memiliki masa berlaku antara tahun 2019 hingga 2044. Manajemen berpendapat bahwa SHGB tersebut dapat diperpanjang.

The Group’s land represents freehold land (“SHM”) and land-use rights (“SHGB”). The SHGB will expire between 2019 until 2044. Management believes that the SHGB are extendable.





(Continued)

- 62 -

Pada tanggal 31 Desember 2018 dan 2017 tingkat penyelesaian atas aset dalam pembangunan adalah sebagai berikut:

The completion stage of construction in progress as of December 31, 2018 and 2017 are as follows:

Estimasi Estimasitahun tahun

Persentase penyelesaian/ Persentase penyelesaian/penyelesaian/ Estimated penyelesaian/ EstimatedCompletion completion Completion completionpercentage year percentage year

Tanah pertambangan 50% - 82% 2019 25% - 98% 2018 Mining propertiesBangunan, jalan, jembatan Building, roads, bridges

dan pelabuhan 10% - 98% 2019 10% - 99% 2018 and harborsMesin-mesin 5% - 98% 2019 25% - 98% 2018 MachineriesPeralatan 25% - 98% 2019 75% - 95% 2018 EquipmentPabrik Semen 4% - 6% 2022 4% - 6% 2020 Cement plants

2018 2017

Untuk tahun yang berakhir pada tanggal 31 Desember 2018 dan 2017, biaya perolehan pembangunan pabrik semen dan pembangkit listrik termasuk biaya pinjaman yang dikapitalisasi sebesar masing-masing RpNihil dan Rp128.419.715, selisih kurs mata uang asing yang merupakan lindung nilai atas komitmen pengadaan peralatan utama masing-masing sebesar RpNihil dan Rp513.273. Biaya pinjaman terdiri dari biaya bunga dan amortisasi biaya transaksi atas pinjaman bank. Tingkat kapitalisasi rata-rata adalah Nihil pada tahun 2018 dan 7,35% - 9,07% pada tahun 2017.

For the year ended December 31, 2018 and 2017, the construction costs of cement and power plants include capitalized borrowing costs of RpNil and Rp128,419,715 respectively, and foreign currency exchange differences which arose from hedging commitments for the procurement of main equipment of RpNil and Rp513,273, respectively. Borrowing costs consist of interest expense and amortization of transaction costs on bank loans. The average capitalization rates were Nil in 2018 and 7.35% - 9.07% in 2017.

Penambahan aset tetap yang berasal dari transaksi non-kas aktivitas investasi dan pendanaan untuk tahun yang berakhir pada tanggal 31 Desember 2018 dan 2017 masing-masing adalah sebagai berikut:

Addition of fixed assets from a non-cash transactions in investing and financing activities for the year ended December 31, 2018 and 2017, are as follows:

Reklasifikasi dari uang muka proyek dan utang

masing-masing sebesar Rp169.614.838 dan Rp197.403.160.

Reclassification of project advances and payables amounting to Rp169,614,838 and Rp197,403,160, respectively.

Aset sewa pembiayaan masing-masing sebesar

Rp21.158.079 dan Rp21.591.962. Assets under finance leases amounting to

Rp21,158,079 and Rp21,591,962, respectively.

Kapitalisasi biaya pembongkaran masing-masing sebesar Rp16.881.757 dan Rp30.350.088.

Capitalization of costs of dismantling amounting to Rp16,881,757 and Rp30,350,088, respectively.

Aset tetap tertentu digunakan sebagai jaminan atas fasilitas pinjaman non-kas dan fasilitas kredit investasi (Catatan 20).

Certain fixed assets are used as collateral for non-cash loan facilities and credit investment facilities (Note 20).

Jumlah tercatat aset tetap yang telah disusutkan penuh dan masih digunakan pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp5.351.540.606.593 dan Rp4.384.833.648.

The carrying amount of fixed assets that are fully depreciated and still in used for production as of December 31, 2018 and 2017 amounted to Rp5,351,540,606,593 and Rp4,384,833,648, respectively.

Pada tahun 2018, Perusahaan mengubah umur masa manfaat untuk bangunan, jalan, jembatan dan pelabuhan dari 15 – 40 tahun menjadi 15 – 50 tahun dan aset mesin-mesin dari 2 – 30 tahun menjadi 2 – 50 tahun. Perubahan tersebut diperlakukan secara propektif yang menyebabkan penurunan beban penyusutan sebesar Rp693.930.170.

In 2018, the Company changed the estimated useful life of building, roads, bridge and harbors from 15 – 40 years to 15 – 50 years and machineries from 2 – 30 years to 2 – 50 years. Such change in estimate was accounted prospectively resulting to reduction in depreciation expense by Rp693,930,170.







(Continued)

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Berdasarkan penilaian internal, nilai wajar aset tetap pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp48.510.863.592 dan Rp46.626.131.017. Nilai wajar aset tetap diukur menggunakan input level 3.

Based on internal valuation, the fair value of fixed assets as of December 31, 2018 and 2017 amounted to Rp48,510,863,592 and Rp46,626,131,017, respectively. The fair value of the Group’s fixed assets are measured using input level 3.

Jumlah tercatat aset tetap yang tidak digunakan sementara untuk aktivitas operasi pada tanggal 31 Desember 2018 dan 2017 masing-masing adalah sebesar Rp12.060.520 dan Rp12.928.912.

The carrying amount of Fixed assets which are not used in operations as of December 31, 2018 and 2017 amounted to Rp12,060,520 and Rp12,928,912, respectively.

Rincian laba penjualan aset tetap adalah sebagai berikut:

Details of gain on sale of fixed assets are as follows:

2018 2017

Hasil penjualan neto 9.725.715 11.240.046 Net proceeds from saleBiaya perolehan: Acquisition cost:

Bangunan 1.543.397 5.923.453 BuildingAlat berat 19.246.389 88.078.852 Heavy equipmentMesin 1.443.139 513.834 MachineryPeralatan 5.832.215 573.518 Equipment

28.065.140 95.089.657 Akumulasi penyusutan: Accumulated depreciation:

Bangunan (1.369.703) (1.279.936) BuildingAlat berat (18.645.785) (87.132.166) Heavy equipmentMesin (1.319.452) (513.834) MachineryPeralatan (184.008) (566.125) Equipment

(21.518.948) (89.492.061)


Laba penjualan aset tetap (Catatan 37) 3.179.523 5.642.450 Gain on sale of f ixed assets (Note 37)

Pada tahun 2018 dan 2017, pengurangan aset tetap yang berasal dari penghapusan aset yang telah usang dengan biaya perolehan sebesar Rp11.000.478 dan Rp40.972.570.

In 2018 and 2017, the disposal of fixed assets arising from write-off of obsolete fixed assets with cost amounted to Rp11,000,478 and Rp40,972,570, respectively.

Pada tahun 2018 dan 2017, terdapat pengurangan aset sewa pembiayaan yang berasal dari penyelesaian kontrak sewa dengan nilai buku sewa pembiayaan masing-masing sebesar Rp40.560.032 dan Rp9.175.882.

In 2018 and 2017, there was deduction of finance lease arising from completion of the lease contract with the book value of assets lease amounted to Rp40,560,032 and Rp9,175,882, respectively.

Pada tanggal 31 Desember 2018 dan 2017, seluruh aset tetap dan properti investasi, kecuali tanah, telah diasuransikan dengan jumlah pertanggungan masing-masing sebesar Rp53.823.448.658 dan Rp53.113.345.510.

As of December 31, 2018 and 2017, all of fixed assets and investment properties, excluding land, were insured with total coverage of Rp53,823,448,658 and Rp53,113,345,510, respectively

Manajemen Grup berpendapat bahwa jumlah pertanggungan asuransi tersebut memadai untuk menutup kemungkinan kerugian atas aset yang dipertanggungkan.

Management of the Group believes that the insurance coverage is adequate to cover possible losses on the assets insured.







(Continued)

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Berdasarkan penilaian internal, nilai wajar aset tetap pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp48.510.863.592 dan Rp46.626.131.017. Nilai wajar aset tetap diukur menggunakan input level 3.

Based on internal valuation, the fair value of fixed assets as of December 31, 2018 and 2017 amounted to Rp48,510,863,592 and Rp46,626,131,017, respectively. The fair value of the Group’s fixed assets are measured using input level 3.

Jumlah tercatat aset tetap yang tidak digunakan sementara untuk aktivitas operasi pada tanggal 31 Desember 2018 dan 2017 masing-masing adalah sebesar Rp12.060.520 dan Rp12.928.912.

The carrying amount of Fixed assets which are not used in operations as of December 31, 2018 and 2017 amounted to Rp12,060,520 and Rp12,928,912, respectively.

Rincian laba penjualan aset tetap adalah sebagai berikut:

Details of gain on sale of fixed assets are as follows:

2018 2017

Hasil penjualan neto 9.725.715 11.240.046 Net proceeds from saleBiaya perolehan: Acquisition cost:

Bangunan 1.543.397 5.923.453 BuildingAlat berat 19.246.389 88.078.852 Heavy equipmentMesin 1.443.139 513.834 MachineryPeralatan 5.832.215 573.518 Equipment

28.065.140 95.089.657 Akumulasi penyusutan: Accumulated depreciation:

Bangunan (1.369.703) (1.279.936) BuildingAlat berat (18.645.785) (87.132.166) Heavy equipmentMesin (1.319.452) (513.834) MachineryPeralatan (184.008) (566.125) Equipment

(21.518.948) (89.492.061)


Laba penjualan aset tetap (Catatan 37) 3.179.523 5.642.450 Gain on sale of f ixed assets (Note 37)

Pada tahun 2018 dan 2017, pengurangan aset tetap yang berasal dari penghapusan aset yang telah usang dengan biaya perolehan sebesar Rp11.000.478 dan Rp40.972.570.

In 2018 and 2017, the disposal of fixed assets arising from write-off of obsolete fixed assets with cost amounted to Rp11,000,478 and Rp40,972,570, respectively.

Pada tahun 2018 dan 2017, terdapat pengurangan aset sewa pembiayaan yang berasal dari penyelesaian kontrak sewa dengan nilai buku sewa pembiayaan masing-masing sebesar Rp40.560.032 dan Rp9.175.882.

In 2018 and 2017, there was deduction of finance lease arising from completion of the lease contract with the book value of assets lease amounted to Rp40,560,032 and Rp9,175,882, respectively.

Pada tanggal 31 Desember 2018 dan 2017, seluruh aset tetap dan properti investasi, kecuali tanah, telah diasuransikan dengan jumlah pertanggungan masing-masing sebesar Rp53.823.448.658 dan Rp53.113.345.510.

As of December 31, 2018 and 2017, all of fixed assets and investment properties, excluding land, were insured with total coverage of Rp53,823,448,658 and Rp53,113,345,510, respectively

Manajemen Grup berpendapat bahwa jumlah pertanggungan asuransi tersebut memadai untuk menutup kemungkinan kerugian atas aset yang dipertanggungkan.

Management of the Group believes that the insurance coverage is adequate to cover possible losses on the assets insured.





(Continued)

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16. BEBAN TANGGUHAN 16. DEFERRED CHARGES

1 Januari/ Selisih kurs/ 31 Desember/January 1, Penambahan/ Foreign December 31,

2018 Additions exchange 2018Biaya perolehan: Acquisition cost:

Sewa jangka panjang 92.693.168 762.843 4.207.993 97.664.004 Long-term prepaid rentInstalasi listrik dan telepon 36.598.595 - - 36.598.595 Telephone and electrical installationImplementasi perangkat lunak 586.500 97.000 - 683.500 Software implementationLain-lain 47.404.418 3.088.542 - 50.492.960 Others

Jumlah 177.282.681 3.948.385 4.207.993 185.439.059 Total

Akumulasi Amortisasi: Accumulated amortizationSewa jangka panjang 12.128.548 1.551.927 543.494 14.223.969 Long-term prepaid rentInstalasi listrik dan telepon 27.029.294 2.251.600 - 29.280.894 Telephone and electrical installationImplementasi perangkat lunak 224.825 122.150 - 346.975 Software implementationLain-lain 21.966.674 4.949.286 - 26.915.960 Others

Jumlah 61.349.341 8.874.963 543.494 70.767.798 Total

Nilai tercatat neto 115.933.340 114.671.261 Net Carrying Amount

1 Januari/ Selisih kurs/ 31 Desember/January 1, Penambahan/ Foreign December 31,

2017 Additions exchange 2017Biaya perolehan: Acquisition cost:

Sewa jangka panjang 95.954.279 - (3.261.111) 92.693.168 Long-term prepaid rentInstalasi listrik dan telepon 25.340.595 11.258.000 - 36.598.595 Telephone and electrical installationImplementasi perangkat lunak 586.500 - - 586.500 Software implementationLain-lain 46.686.330 718.088 - 47.404.418 Others

Jumlah 168.567.704 11.976.088 (3.261.111) 177.282.681 Total

Akumulasi Amortisasi: Accumulated amortizationSewa jangka panjang 10.906.027 3.428.223 (2.205.702) 12.128.548 Long-term prepaid rentInstalasi listrik dan telepon 22.806.535 4.222.759 - 27.029.294 Telephone and electrical installationImplementasi perangkat lunak 107.525 117.300 - 224.825 Software implementationLain-lain 17.093.896 4.872.778 - 21.966.674 Others

Jumlah 50.913.983 12.641.060 (2.205.702) 61.349.341 Total

Nilai tercatat neto 117.653.721 115.933.340 Net Carrying Amount

Sewa jangka panjang merupakan biaya sewa tanah yang diamortisasi selama dua puluh hingga lima puluh tahun.

Long-term prepaid rent represents land rentals, which are amortized over twenty to fifty years.

Biaya instalasi telepon dan listrik diamortisasi selama lima tahun.

The cost of telephone and electrical installations are amortized over five years.

Beban tangguhan lain-lain merupakan jaminan kepada PLN yang diamortisasi selama lima tahun.

Other deferred charges represent guarantee to PLN which are amortized over five years.

17. ASET TAK BERWUJUD-BERSIH DAN GOODWILL 17. INTANGIBLE ASSETS- NET AND GOODWILL

2018 2017

Aset takberw ujud - bersih 1.060.669.614 1.066.587.671 Intangible assets - netGoodwill 150.996.376 203.056.753 Goodw ill

Jumlah 1.211.665.990 1.269.644.424 Total







(Continued)

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a. Aset takberwujud - bersih a. Intangible assets - net



Lisensi 760.854.878 - - (885.164) 38.168.640 798.138.354 LicensesMerek dagang 172.521.310 6.000 - - 8.697.720 181.225.030 TrademarkPiranti lunak komputer 173.939.538 5.373.380 - 885.164 34.184 180.232.266 Computer sof twarePengurusan perpanjangan

hak atas tanah 11.067.692 635.095 23.451 - - 11.679.336 Land rights renewalHubungan pelanggan 318.760.596 - - - - 318.760.596 Customer relationship

Jumlah 1.437.144.014 6.014.475 23.451 - 46.900.544 1.490.035.582 Total

Akumulasi amortisasi Accumulated amortizationdan penurunan nilai: and impairment:

Lisensi 95.673.173 20.407.038 - (307.163) 4.983.127 120.756.175 LicensesMerek dagang 86.252.390 17.926.967 - - 4.542.143 108.721.500 TrademarkPiranti lunak komputer 172.326.395 727.146 - 307.163 34.183 173.394.887 Computer sof twarePengurusan perpanjangan

hak atas tanah 6.644.981 553.068 23.451 - - 7.174.598 Land rights renewalHubungan pelanggan 9.659.404 9.659.404 - - - 19.318.808 Customer relationship

Jumlah 370.556.343 49.273.623 23.451 - 9.559.453 429.365.968 Total

Nilai tercatat neto 1.066.587.671 1.060.669.614 Net carry ing amount

1 Januari/ Selisih kurs/ 31 Desember/January 1, Penambahan/ Reklasifikasi/ Foreign December 31,

2017 Additions Reclassifications exchange 2017Biaya perolehan: Acquisition cost:

Lisensi 771.420.959 121.138 - (10.687.219) 760.854.878 LicensesMerek dagang 174.939.873 16.800 - (2.435.363) 172.521.310 TrademarkPiranti lunak komputer 173.174.266 774.843 - (9.571) 173.939.538 Computer sof twarePengurusan perpanjangan

hak atas tanah 11.052.058 15.634 - - 11.067.692 Land rights renewalHubungan pelanggan 318.760.596 - - - 318.760.596 Customer relationshipJumlah 1.449.347.752 928.415 - (13.132.153) 1.437.144.014 Total


Lisensi 76.855.220 19.683.905 - (865.952) 95.673.173 LicensesMerek dagang 69.976.057 17.065.651 - (789.318) 86.252.390 TrademarkPiranti lunak komputer 147.346.418 24.989.547 - (9.570) 172.326.395 Computer sof twarePengurusan perpanjangan

hak atas tanah 5.370.334 1.274.647 - - 6.644.981 Land rights renewalHubungan pelanggan - 9.659.404 - - 9.659.404 Customer relationship

Jumlah 299.548.029 72.673.154 - (1.664.840) 370.556.343 Total


Merk, lisensi dan hubungan pelanggan merupakan aset takberwujud yang diakui sehubungan dengan akusisi TLCC dan SIL.

Trademark, licenses and customer relation represent intangible are assets recognized in connection with the acquisition of TLCC and SIL.

Beban amortisasi aset takberwujud seluruhnya dicatat pada beban penjualan dan beban umum dan administrasi dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Amortization of intangible assets is recorded to selling and general and administration expenses in the consolidated statements of profit or loss and other comprehensive income.

b. Goodwill b. Goodwill

2018 2017

Saldo aw al 203.056.753 205.279.847 Beginning balanceAkumulasi kerugian penurunan nilai (60.000.000) - Accumulated impairment lossSelisih kurs 7.939.623 (2.223.094) Foreign exchange

Jumlah tercatat 150.996.376 203.056.753 Carrying amount

Goodwill yang timbul sehubungan dengan akuisisi TLCC pada tahun 2012 adalah sebesar Rp157.469.190.

Goodwill arising from the acquisition of TLCC in 2012 was initially recorded at Rp157,469,190.







(Continued)

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a. Aset takberwujud - bersih a. Intangible assets - net



Lisensi 760.854.878 - - (885.164) 38.168.640 798.138.354 LicensesMerek dagang 172.521.310 6.000 - - 8.697.720 181.225.030 TrademarkPiranti lunak komputer 173.939.538 5.373.380 - 885.164 34.184 180.232.266 Computer sof twarePengurusan perpanjangan

hak atas tanah 11.067.692 635.095 23.451 - - 11.679.336 Land rights renewalHubungan pelanggan 318.760.596 - - - - 318.760.596 Customer relationship

Jumlah 1.437.144.014 6.014.475 23.451 - 46.900.544 1.490.035.582 Total


Lisensi 95.673.173 20.407.038 - (307.163) 4.983.127 120.756.175 LicensesMerek dagang 86.252.390 17.926.967 - - 4.542.143 108.721.500 TrademarkPiranti lunak komputer 172.326.395 727.146 - 307.163 34.183 173.394.887 Computer sof twarePengurusan perpanjangan

hak atas tanah 6.644.981 553.068 23.451 - - 7.174.598 Land rights renewalHubungan pelanggan 9.659.404 9.659.404 - - - 19.318.808 Customer relationship

Jumlah 370.556.343 49.273.623 23.451 - 9.559.453 429.365.968 Total


1 Januari/ Selisih kurs/ 31 Desember/January 1, Penambahan/ Reklasifikasi/ Foreign December 31,

2017 Additions Reclassifications exchange 2017Biaya perolehan: Acquisition cost:

Lisensi 771.420.959 121.138 - (10.687.219) 760.854.878 LicensesMerek dagang 174.939.873 16.800 - (2.435.363) 172.521.310 TrademarkPiranti lunak komputer 173.174.266 774.843 - (9.571) 173.939.538 Computer sof twarePengurusan perpanjangan

hak atas tanah 11.052.058 15.634 - - 11.067.692 Land rights renewalHubungan pelanggan 318.760.596 - - - 318.760.596 Customer relationshipJumlah 1.449.347.752 928.415 - (13.132.153) 1.437.144.014 Total


Lisensi 76.855.220 19.683.905 - (865.952) 95.673.173 LicensesMerek dagang 69.976.057 17.065.651 - (789.318) 86.252.390 TrademarkPiranti lunak komputer 147.346.418 24.989.547 - (9.570) 172.326.395 Computer sof twarePengurusan perpanjangan

hak atas tanah 5.370.334 1.274.647 - - 6.644.981 Land rights renewalHubungan pelanggan - 9.659.404 - - 9.659.404 Customer relationship

Jumlah 299.548.029 72.673.154 - (1.664.840) 370.556.343 Total


Merk, lisensi dan hubungan pelanggan merupakan aset takberwujud yang diakui sehubungan dengan akusisi TLCC dan SIL.

Trademark, licenses and customer relation represent intangible are assets recognized in connection with the acquisition of TLCC and SIL.

Beban amortisasi aset takberwujud seluruhnya dicatat pada beban penjualan dan beban umum dan administrasi dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Amortization of intangible assets is recorded to selling and general and administration expenses in the consolidated statements of profit or loss and other comprehensive income.

b. Goodwill b. Goodwill

2018 2017

Saldo aw al 203.056.753 205.279.847 Beginning balanceAkumulasi kerugian penurunan nilai (60.000.000) - Accumulated impairment lossSelisih kurs 7.939.623 (2.223.094) Foreign exchange

Jumlah tercatat 150.996.376 203.056.753 Carrying amount

Goodwill yang timbul sehubungan dengan akuisisi TLCC pada tahun 2012 adalah sebesar Rp157.469.190.

Goodwill arising from the acquisition of TLCC in 2012 was initially recorded at Rp157,469,190.





(Continued)

- 66 -

Goodwill yang timbul sehubungan dengan akuisisi VUB pada tahun 2016 adalah sebesar Rp45.587.563 pada tanggal 31 Desember 2018 dan 2017.

Goodwill arising from acquisition of VUB in 2016 amounted to Rp45,587,563 as of December 31, 2018 and 2017, respectively.

Perubahan pada akumulasi kerugian penurunan nilai:

Changes in the accumulated impairment losses follow:

2018

Saldo aw al - Beginning balanceRugi penurunan nilai tahun berjalan 60.000.000 Impairment losses recognized during the year

Akumulasi kerugian penurunan nilai 60.000.000 Accumulated impairment losses

Grup menetapkan nilai terpulihkan atas goodwill dan menentukan bahwa goodwill yang terkait dengan aktivitas segmen bisnis persemenan Grup di Vietnam diturunkan nilainya sebesar Rp60.000.000. Faktor utama yang memberikan kontribusi terhadap penurunan nilai goodwill adalah adanya penurunan estimasi nilai penjualan dan profitabilitas dimana goodwill dialokasikan. Hal ini terutama disebabkan oleh meningkatnya persaingan di pasar ekspor yang mengakibatkan Grup merevisi proyeksi arus kas untuk bisnis persemenan atas unit penghasil kas di Vietnam.

The Group assessed the recoverable amount of goodwill, and determines that certain goodwill related to the activities of the Group's cement business segment in Vietnam was impaired by Rp60.000.000. The main factor contributing goodwill impairment is decrease in estimation of sales level and profitability to which goodwill has been allocated. This is mainly due to the increased competition in the export market which results in the Group has revised the cash flow forecast for the cement business in Vietnam cash-generating unit.

Manajemen telah menunjuk KJPP Ruky Safrudin dan Rekan, penilai independen, untuk menilai nilai yang dapat terpulihkan dari goodwill tersebut. Nilai terpulihkan tersebut telah ditelaah dengan mengacu pada nilai pakai unit penghasil kas.

Management has appointed KJPP Ruky Safrudin dan Rekan, an independent appraiser, to assess the recoverable value of the goodwill. The recoverable value has assessed by reference to the cash-generating unit’s value-in-use.

Perhitungan nilai pakai mengharuskan manajemen untuk mengestimasi arus kas masa depan yang diharapkan timbul dari unit penghasil kas yang menggunakan tingkat diskonto sebesar 17,70% yang sesuai untuk perhitungan nilai kini.

The value-in-use calculation requires the management to estimate the future cash flows expected to arise from the cash-generating unit using a suitable discount rate of 17.70% in order to calculate present value.

Kerugian atas penurunan nilai termasuk dalam beban operasi lainnya dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasiian

The impairment lossess have been included in other operating expense item in consolidated statement of profit or loss and other comprehensive income.

18. UANG MUKA INVESTASI 18. ADVANCES FOR INVESTMENT

2018 2017

Pabrik Semen Indarung VI 5.418.625 6.798.065 Indarung VI Cement PlantProyek Pabrik Rembang - 6.393.036 Rembang Plant ProjectPembelian barang investasi - 1.063.810 Purchase of investment goods

Jumlah 5.418.625 14.254.911 Total

Akun ini merupakan uang muka pembelian barang modal dan akan direklasifikasi ke dalam aset dalam pembangunan pada saat pengiriman peralatan kepada Grup.

This account represents advances for capital expenditures and will be reclassified into construction in progress upon delivery of the related equipment to the Group.







(Continued)

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19. ASET TIDAK LANCAR LAINNYA 19. OTHER NON-CURRENT ASSETS

2018 2017 *)

Tanah untuk pengembangan 232.764.609 220.955.274 Land for developmentAset reklamasi tambang 26.911.095 36.273.869 Reclamation assetJaminan 16.865.784 35.462.811 Security depositsUang muka sew a 11.053.102 11.053.102 Lease advancePiutang jangka panjang 9.409.524 13.346.667 Long-term receivablesUang muka pembelian tanah 9.198.210 9.198.210 Advance for purchase of landLain-lain 37.112.486 22.921.298 Others

Jumlah 343.314.810 349.211.231 Total

Uang muka pembelian tanah dan tanah dalam pengembangan terutama adalah pembelian tanah oleh entitas anak (KIG) seluas 2.587.707 meter persegi yang berlokasi di Tuban dan Gresik dengan tujuan untuk dijual di masa yang akan datang.

Advance for purchase of land and land for development are mainly acquisition of 2,587,707 square meters land by a subsidiary (KIG) located in Tuban and Gresik which are intended to be sold in the future.

20. PINJAMAN 20. BORROWINGS

a. Jangka pendek a. Short-term

2018 2017

Pinjaman bank: Bank loans:Rupiah Rupiah

Pihak ketiga: Third parties:PT Bank CIMB Niaga Tbk 100.200.000 611.000.000 PT Bank CIMB Niaga TbkIndonesia Eximbank 87.544.155 120.265.228 Indonesia EximbankPT Bank ICBC Indonesia 26.123.645 85.855.350 PT Bank ICBC Indonesia




(Persero) Tbk - 13.187.691 (Persero) Tbk

Subjumlah 1.280.479.095 372.240.316 Subtotal

Jumlah 1.494.346.895 1.189.360.894 Total

Dong Vietnam Vietnamese DongPihak ketiga: Third parties

Ho Chi Minh City Development Ho Chi Minh City DevelopmentJoint-Stock Commercial Bank 34.980.904 - Joint-Stock Commercial Bank

Vietnam Prosperity Joint Stock Vietnam Prosperity Joint Stock Commercial Bank 18.442.511 - Commercial Bank

Subjumlah 53.423.415 - SubtotalPihak Berelasi: Related party:

Sapa Vietnam Joint Stock Sapa Vietnam Joint StockCompany 3.889.029 3.702.353 Company

Jumlah 1.551.659.339 1.193.063.247 Total








(Continued)

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19. ASET TIDAK LANCAR LAINNYA 19. OTHER NON-CURRENT ASSETS

2018 2017 *)

Tanah untuk pengembangan 232.764.609 220.955.274 Land for developmentAset reklamasi tambang 26.911.095 36.273.869 Reclamation assetJaminan 16.865.784 35.462.811 Security depositsUang muka sew a 11.053.102 11.053.102 Lease advancePiutang jangka panjang 9.409.524 13.346.667 Long-term receivablesUang muka pembelian tanah 9.198.210 9.198.210 Advance for purchase of landLain-lain 37.112.486 22.921.298 Others

Jumlah 343.314.810 349.211.231 Total

Uang muka pembelian tanah dan tanah dalam pengembangan terutama adalah pembelian tanah oleh entitas anak (KIG) seluas 2.587.707 meter persegi yang berlokasi di Tuban dan Gresik dengan tujuan untuk dijual di masa yang akan datang.

Advance for purchase of land and land for development are mainly acquisition of 2,587,707 square meters land by a subsidiary (KIG) located in Tuban and Gresik which are intended to be sold in the future.

20. PINJAMAN 20. BORROWINGS

a. Jangka pendek a. Short-term

2018 2017

Pinjaman bank: Bank loans:Rupiah Rupiah

Pihak ketiga: Third parties:PT Bank CIMB Niaga Tbk 100.200.000 611.000.000 PT Bank CIMB Niaga TbkIndonesia Eximbank 87.544.155 120.265.228 Indonesia EximbankPT Bank ICBC Indonesia 26.123.645 85.855.350 PT Bank ICBC Indonesia




(Persero) Tbk - 13.187.691 (Persero) Tbk

Subjumlah 1.280.479.095 372.240.316 Subtotal

Jumlah 1.494.346.895 1.189.360.894 Total

Dong Vietnam Vietnamese DongPihak ketiga: Third parties

Ho Chi Minh City Development Ho Chi Minh City DevelopmentJoint-Stock Commercial Bank 34.980.904 - Joint-Stock Commercial Bank

Vietnam Prosperity Joint Stock Vietnam Prosperity Joint Stock Commercial Bank 18.442.511 - Commercial Bank

Subjumlah 53.423.415 - SubtotalPihak Berelasi: Related party:

Sapa Vietnam Joint Stock Sapa Vietnam Joint StockCompany 3.889.029 3.702.353 Company

Jumlah 1.551.659.339 1.193.063.247 Total






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Rincian pembayaran per 31 Desember 2018 dan 2017 adalah sebagai berikut

Payment detail as of December 31, 2018 and 2017 are as follows

2018 2017

PT Bank Mandiri (Persero) Tbk 564.864.703 1.150.000.000 PT Bank Mandiri (Persero) TbkPT Bank CIMB Niaga Tbk 611.000.000 948.000.000 PT Bank CIMB Niaga TbkIndonesia Eximbank 332.811.825 364.347.422 Indonesia EximbankPT Bank ICBC Indonesia 165.046.789 7.095.213 PT Bank ICBC IndonesiaPT Bank Rakyat Indonesia PT Bank Rakyat Indonesia

(Persero) Tbk 45.498.068 69.041.550 (Persero) TbkPT Bank Negara Indonesia PT Bank Negara Indonesia

(Persero) Tbk 3.101.539 391.871.634 (Persero) Tbk

Jumlah 1.722.322.924 2.930.355.819 Total

PT Bank CIMB Niaga Tbk PT Bank CIMB Niaga Tbk Perseroan dan Entitas Anak The Company and its Subsidiaries Berdasarkan Akta Perjanjian Kredit No. 53 tanggal 15 Desember 2016 dari Nyonya Djumini S.H.,M.Kn., Perseroan dan beberapa entitas anak memperoleh fasilitas kredit dari PT Bank CIMB Niaga Tbk yang terdiri dari:

Based on Deed of Credit Agreement No. 53 dated on December 15, 2016 by Nyonya Djumini S.H.,M.Kn., the Company and several subsidiaries obtained credit facilities from PT Bank CIMB Niaga Tbk consisting of:

Fasilitas Pinjaman Tetap 1, yang digunakan

untuk memenuhi kebutuhan pinjaman talangan Perseroan dan entitas anak dengan jumlah fasilitas sebesar Rp1.500.000.000.

Fixed Credit Facilities 1, which will be used to meet the bridging loan of the the Company and several subsidiaries amounted to Rp1,500,000,000.

Fasilitas Pinjaman Tetap 2, yang merupakan sublimit fasilitas pinjaman 1, yang digunakan untuk memenuhi kebutuhan modal kerja dengan jumlah pemakaian secara keseluruhan untuk Perseroan dan beberapa entitas anak adalah sebesar Rp1.500.000.000.

Fixed Credit Facilities 2, which is the sub-limits of fixed facilities 1 and will be used for working capital, with total maximum facility for the Company and several subsidiaries amounted to Rp1,500,000,000.

Fasilitas Letter of Credit dan/atau Surat Kredit

Berdokumen Dalam Negeri (SKBDN), yang digunakan untuk memenuhi kebutuhan modal kerja dan/atau pembukaan LC-SKBDN dalam bentuk sight atau usance kepada pihak ketiga, merupakan sub-limit fasilitas pinjaman 1, dengan jumlah pemakaian secara keseluruhan untuk Perseroan dan beberapa entitas anak adalah sebesar Rp1.500.000.000.

Letter of Credit Facility and/or Import Letter of Credit Facility (SKBDN), which will be used for working capital and/or for opening LC-SKBDN in form of sight or usance to third party, which is the sub-limits of fixed facilities 1, with total maximum facility for the Company and several subsidiaries amounted to Rp1,500,000,000.

Fasilitas Negosiasi Wesel Ekspor, dengan

tujuan negosiasi sight atau usance LC-SKBDN yang bersifat sub-limit dengan Fasilitas Pinjaman Tetap-1 dengan jumlah keseluruhan maksimum sebesar Rp150.000.000.

Export Bill Negotiation Facility for the purpose of negotiation sight or usance LC-SKBDN, which is the sub-limits of fixed facilities 1 with total maximum facility amounting to Rp150,000,000.

Fasilitas ini berlaku sampai dengan 13 Maret 2019 dengan suku bunga Jakarta Interbank Offerred (JIBOR) rata – rata 3 bulan ditambah dengan 0,95% per tahun, dikenakan biaya 0,0625% per transaksi untuk Letter of Credit dan biaya diskonto 8,5% per tahun untuk Wesel Ekspor yang dapat berubah-rubah tergantung kondisi pasar. Jatuh tempo untuk setiap penarikan Fasilitas Pinjaman Tetap 1 adalah 12 bulan dan untuk Fasilitas Pinjaman Tetap 2 adalah 6 bulan.

These facilities are valid until March 18, 2019 with interest rate based on the average 3-month Jakarta Interbank Offered Rate (JIBOR) plus 0.95% margin per annum, 0.0625% per transaction for Letter of Credit and discount rate of 8.5% per annum for Export Bill and is subject to changes based on market condition. Maturity period for each drawdown from the Fixed Credit Facilities 1 and 2 are 12 months and 6 months, respectively.







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Fasilitas pinjaman tersebut diatas diperoleh tanpa agunan (clean basis), dan mewajibkan Perseroan dan beberapa entitas anak untuk memberitahukan kepada Bank secara tertulis dalam hal Perseroan dan beberapa entitas anak akan melakukan tindakan menjual/mengalihakan harta, khususnya jika nominal melebihi 20% dari ekuitas, menjaminkan kekayaan dan mendapatkan serta memberikan pinjaman, mengubah susunan direksi, dewan komisaris dan pemegang saham, mengumumkan dan membagikan dividen kepada pemegang saham, dan melakukan penggabungan usaha, peleburan, pengambilalihan dan pelepasan yang dapat merubah struktur permodalan. Pada tanggal 31 Desember 2018, Perseroan telah memenuhi seluruh kewajiban yang dipersyaratkan oleh Bank.

The above facilities have no collateral (clean basis), but require the Company and several subsidiaries to inform the Bank in writing in the event that the Company and several subsidiaries will take action to sell/divert assets, especially if the nominal amount exceeds 20% of the equity, pledge their assets and when obtaining and providing loan, change the composition of the Directors, Board of Commissioners and shareholders, publish and distribute dividends to shareholders, and perform merger, consolidation, acquisition and disposal that would change the capital structure. As of December 31, 2018, the Company has fulfilled all obligations required by the bank.

Pada tanggal 31 Desember 2018 dan 2017, saldo dari fasilitas pinjaman ini masing-masing sebesar Rp100.200.000 dan Rp611.000.000.

As of December 31, 2018 and 2017, the total outstanding loan from this facility amounted to Rp100,200,000 and Rp611,000,000, respectively.

Indonesia Eximbank Indonesia Eximbank PT Semen Indonesia Beton (SIB)

Pada tanggal 3 Desember 2014, SIB menandatangi perjanjian pembiayaan untuk fasilitas Kredit Modal Kerja Ekspor I, Fasilitas Kredit Modal Kerja II dan fasiltas jaminan dengan Indonesia Eximbank dengan maksimum fasilitas masing-masing sebesar Rp5.000.000, Rp257.500.000 dan Rp2.500.000. Fasilitas ini dijamin secara fidusia dengan persediaan, piutang dagang dan aset tetap. Jangka waktu fasilitas 12 bulan.


On December 3, 2014, SIB entered into a financing agreement for export capital work facility I, export capital work facility II and guarantee facility with Indonesia Eximbank with maximum facilities amounting to Rp5,000,000, Rp257,500,000 and Rp2,500,000, respectively. These facilities were secured by the fiduciary inventories, trade receivables and fixed assets. The term of these facilities is for 12 months.

Tingkat bunga yang dikenakan untuk fasilitas kredit modal kerja Ekspor I dan II adalah 10,15% per annum dan dapat berubah sewaktu-waktu sesuai dengan ketentuan yang berlaku di Indonesia Eximbank, sedangkan untuk fasilitas jaminan, imbal jasa penjaminan adalah sebesar 0,65%-1,5%. Fasilitas ini telah diperpanjang dengan perpanjangan terakhir sampai dengan tanggal 3 Maret 2019.

The interest rate for capital work facility I and export capital work facility II is 10.15% and can be changed any time based on information from Indonesia Eximbank, while for guarantee facility, the guarantee fee is ranging 0.65%-1.5%. The facilities have been extended up to March 3, 2019.

Fasilitas ini mensyaratkan SIB untuk memelihara rasio keuangan tertentu berdasarkan laporan keuangan yang telah diaudit dan memberikan pemberitahuan kepada bank jika melakukan penyertaan modal. SIB telah memperoleh persetujuan bank terkait dengan penyertaan modal pada VUB. Pada tanggal 31 Desember 2018 dan 2017, salah satu rasio keuangan tidak terpenuhi dan sesuai dengan perjanjian kredit, SIB telah menerima waiver letter dari Indonesia Eximbank tertanggal 31 Desember 2018.

These facilities require SIB to maintain certain financial ratios based on the audited financial information and give notification to the bank regarding capital investment. SIB has obtained the approval from the bank regarding its investment in VUB. As of December 31, 2018 and 2017, one of the financial ratio was not met and as indicated in loan agreement, SIB has received waiver letter from Indonesia Exim Bank dated December 31, 2018.









(Continued)

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Fasilitas pinjaman tersebut diatas diperoleh tanpa agunan (clean basis), dan mewajibkan Perseroan dan beberapa entitas anak untuk memberitahukan kepada Bank secara tertulis dalam hal Perseroan dan beberapa entitas anak akan melakukan tindakan menjual/mengalihakan harta, khususnya jika nominal melebihi 20% dari ekuitas, menjaminkan kekayaan dan mendapatkan serta memberikan pinjaman, mengubah susunan direksi, dewan komisaris dan pemegang saham, mengumumkan dan membagikan dividen kepada pemegang saham, dan melakukan penggabungan usaha, peleburan, pengambilalihan dan pelepasan yang dapat merubah struktur permodalan. Pada tanggal 31 Desember 2018, Perseroan telah memenuhi seluruh kewajiban yang dipersyaratkan oleh Bank.

The above facilities have no collateral (clean basis), but require the Company and several subsidiaries to inform the Bank in writing in the event that the Company and several subsidiaries will take action to sell/divert assets, especially if the nominal amount exceeds 20% of the equity, pledge their assets and when obtaining and providing loan, change the composition of the Directors, Board of Commissioners and shareholders, publish and distribute dividends to shareholders, and perform merger, consolidation, acquisition and disposal that would change the capital structure. As of December 31, 2018, the Company has fulfilled all obligations required by the bank.



Indonesia Eximbank Indonesia Eximbank PT Semen Indonesia Beton (SIB)

Pada tanggal 3 Desember 2014, SIB menandatangi perjanjian pembiayaan untuk fasilitas Kredit Modal Kerja Ekspor I, Fasilitas Kredit Modal Kerja II dan fasiltas jaminan dengan Indonesia Eximbank dengan maksimum fasilitas masing-masing sebesar Rp5.000.000, Rp257.500.000 dan Rp2.500.000. Fasilitas ini dijamin secara fidusia dengan persediaan, piutang dagang dan aset tetap. Jangka waktu fasilitas 12 bulan.


On December 3, 2014, SIB entered into a financing agreement for export capital work facility I, export capital work facility II and guarantee facility with Indonesia Eximbank with maximum facilities amounting to Rp5,000,000, Rp257,500,000 and Rp2,500,000, respectively. These facilities were secured by the fiduciary inventories, trade receivables and fixed assets. The term of these facilities is for 12 months.

Tingkat bunga yang dikenakan untuk fasilitas kredit modal kerja Ekspor I dan II adalah 10,15% per annum dan dapat berubah sewaktu-waktu sesuai dengan ketentuan yang berlaku di Indonesia Eximbank, sedangkan untuk fasilitas jaminan, imbal jasa penjaminan adalah sebesar 0,65%-1,5%. Fasilitas ini telah diperpanjang dengan perpanjangan terakhir sampai dengan tanggal 3 Maret 2019.

The interest rate for capital work facility I and export capital work facility II is 10.15% and can be changed any time based on information from Indonesia Eximbank, while for guarantee facility, the guarantee fee is ranging 0.65%-1.5%. The facilities have been extended up to March 3, 2019.

Fasilitas ini mensyaratkan SIB untuk memelihara rasio keuangan tertentu berdasarkan laporan keuangan yang telah diaudit dan memberikan pemberitahuan kepada bank jika melakukan penyertaan modal. SIB telah memperoleh persetujuan bank terkait dengan penyertaan modal pada VUB. Pada tanggal 31 Desember 2018 dan 2017, salah satu rasio keuangan tidak terpenuhi dan sesuai dengan perjanjian kredit, SIB telah menerima waiver letter dari Indonesia Eximbank tertanggal 31 Desember 2018.

These facilities require SIB to maintain certain financial ratios based on the audited financial information and give notification to the bank regarding capital investment. SIB has obtained the approval from the bank regarding its investment in VUB. As of December 31, 2018 and 2017, one of the financial ratio was not met and as indicated in loan agreement, SIB has received waiver letter from Indonesia Exim Bank dated December 31, 2018.







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PT Bank ICBC Indonesia PT Bank ICBC Indonesia PT Semen Indonesia Beton (SIB) PT Semen Indonesia Beton (SIB) Pada tanggal 21 Oktober 2016 dengan akta No. 89 dari Sitaresmi Puspadewi Subianto S.H, Notaris di Jakarta, SIB menandatangani fasilitas Pinjaman Tetap on Demand A (PTDA) dengan maksimum fasilitas kredit sejumlah Rp100.000.000 dengan jangka waktu satu (1) tahun untuk pembiayaan pembangunan pabrik dan pembelian mesin, dengan sub-limit:

On October 21, 2016, based on Notarial Deed No. 89 by Sitaresmi Puspadewi Subianto S.H, Notary in Jakarta, SIB signed the Fix Loan On Demand A (PTDA) facilities with maximum credit facilities of Rp100,000,000 with the availability period of one (1) year for financing the construction of plant and purchasing machineries with the following sub-limits:

1. Surat Kredit Berdokumen Dalam Negeri (SKBDN) dengan limit Rp100.000.000.

2. Discrepant Negosiasi/Diskonto SKBDN dengan limit Rp100.000.000.

3. Usance Payable at Sight (UPAS) dengan limit Rp100.000.000.

4. Trust Receipt Financing (TR) dengan limit Rp100.000.000.

5. Bank Garansi (BG) sebesar Rp30.000.000.

1. Import Letter of Credit Facility (SKBDN) with limit of Rp100,000,000.

2. Discrepancy Negotiation/Discounted SKBDN with limit of Rp100,000,000.

3. Usance Payable at Sight (UPAS) with limit of Rp100,000,000.

4. Trust Receipt Financing (TR) with limit of Rp100,000,000.

5. Bank Guarantee (BG) with limit of Rp30,000,000.

Tingkat suku bunga atas PTDA, diskonto SKBDN dan TR adalah 9,75% per tahun dan 9,5% per tahun masing-masing untuk tahun 2018 dan 2017 dan untuk UPAS adalah 9,25% per tahun masing-masing untuk tahun 2018 dan 2017. Agunan atas fasilitas ini adalah persediaan milik SIB yang berada di beberapa plant SIB. Fasilitas ini telah diperpanjang dengan perpanjangan terakhir tanggal 21 Februari 2019.

The interest rate for PTDA, discount on SKBDN and TR is 9.75% per annum and 9.5% per annum for 2018 and 2017, respectively and for UPAS is 9.25% per annum for 2018 and 2017, respectively. Collateral provided for this facility is SIB’s inventories which are located in some of SIB’s plants. These facilities have been extended up to February 21, 2019.

Fasilitas ini mensyaratkan SIB untuk menyampaikan informasi terkait dengan pembayaran dividen kepada pemegang saham dan perjanjian pinjaman tambahan dengan pihak ketiga. Pada tanggal 31 Desember 2018 dan 2017, SIB telah memenuhi rasio keuangan yang diatur dalam perjanjian kredit.

These facilities require SIB to convey information relating with dividends payment to the shareholders and new loan agreement with third parties. As of December 31, 2018 and 2017, SIB has fulfilled the financial ratios required in the credit agreement.

Pada tanggal 31 Desember 2018 dan 2017, jumlah saldo utang terkait dengan fasilitas ini adalah masing-masing sebesar Rp26.123.645 dan Rp85.855.350.

As of December 31, 2018 and 2017, outstanding loans from these facilities amounted to Rp26,123,645 and Rp85,855,350, respectively.

PT Bank Mandiri (Persero) Tbk PT Bank Mandiri (Persero) Tbk

1. Perseroan 1. The Company

Fasilitas Non-Cash Loan Non-Cash Loan Facility Pada tanggal 31 Oktober 2001, Perseroan menandatangani perjanjian fasilitas non-cash loan (NCL) dalam bentuk letter of credit (LC) dengan PT Bank Mandiri (Persero) Tbk dengan nilai fasilitas maksimum sebesar setara USD50.000.000 dan sub-limit fasilitas trust receipt (TR) sebesar setara USD25.000.000. Fasilitas ini dijamin secara fidusia dengan barang yang diimpor/dibeli dengan menggunakan fasilitas ini dan/atau bank garansi yang dimiliki Perseroan. Fasilitas ini telah beberapa kali diperpanjang dengan perpanjangan terakhir sampai dengan tanggal 27 Juni 2019. Tingkat bunga yang dikenakan untuk fasilitas LC dan TR adalah sesuai dengan ketentuan yang berlaku di Bank.

On October 31, 2001, the Company entered into a non-cash loan (NCL) facilities agreement in the form of a letter of credit (LC) facility with PT Bank Mandiri (Persero) Tbk for a maximum equivalent amount of USD50,000,000 and a sub-limit trust receipts (TR) facility of equivalent of USD25,000,000. These facilities were secured by the fiduciary transfer of the imported/purchased goods acquired using these facilities and/or bank guarantees of the Company. The facilities have been extended several times and most recently have been extended up to June 27, 2019. The interest rate for LC and TR facilities are in accordance with the rates applied by the Bank.







(Continued)

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Pada tanggal 31 Desember 2018 dan 2017, nilai LC yang telah diterbitkan dan masih berjalan berdasarkan fasilitas ini adalah masing-masing sebesar EUR6.653.709, dan CNY491.062; dan EUR5.422.673, JPY2.770.000 and USD446.596. Tidak terdapat fasilitas LC yang telah jatuh tempo dan belum dibayar pada tanggal 31 Desember 2018 dan 2017.

As of December 31, 2018 and 2017, the outstanding LC amounts under this facility were EUR6,653,709, and CNY491,062; and, EUR5,422,673, JPY2,770,000, and USD446,596, respectively. There are no amounts under this facility which are due and unpaid as of December 31, 2018 and 2017.

Fasilitas ini mensyaratkan Perseroan untuk memelihara rasio keuangan tertentu dan kewajiban untuk melapor antara lain jika Perseroan mengumumkan atau membayar dividen, memberikan pinjaman kepada pihak ketiga, menggadaikan sahamnya, mengikatkan diri sebagai penjamin utang atau menjaminkan harta kekayaannya kepada pihak lain. Pada tanggal 31 Desember 2018 dan 2017, Perseroan telah memenuhi semua rasio keuangan yang dipersyaratkan.

These facilities require the Company to maintain certain financial ratios and to report, among others, when the Company declares or pays dividends, provides loans to third parties, pledges its shares, grants guarantees or pledges its assets to any other parties. As of December 31, 2018 and 2017, the Company is in compliance with all of the financial covenants.

Fasilitas Modal Kerja Working Capital Facility Pada tanggal 2 Agustus 2012, Perseroan mendapat fasilitas Standby Loan dari PT Bank Mandiri (Persero) Tbk sebesar Rp1.000.000.000. Berdasarkan addendum keenam tanggal 28 Juni 2017 tingkat bunga yang berlaku adalah sebesar 7,65% per tahun dengan metode reference rate berdasarkan Published Rate Time Deposit (PRTD) Bank Mandiri untuk 3 bulan. Suku Bunga akan direviu setiap 3 bulan. Fasilitas ini telah diperpanjang sampai dengan tanggal 27 Juni 2019.

On August 2, 2012, the Company obtained Standby Loan facility from PT Bank Mandiri (Persero) Tbk amounting to Rp1,000,000,000. Based on the sixth amendment dated June 28, 2017, the interest rate is 7.65% per annum with reference rate method based on Published Rate Time Deposit (PRTD) of Bank Mandiri for 3 months. The interest rate will be reviewed every 3 months. This facility has been extended up to June 27, 2019.

Fasilitas ini mensyaratkan Perseroan untuk memelihara rasio keuangan tertentu. Pada tanggal 31 Desember 2018 dan 2017, Perseroan telah memenuhi semua rasio keuangan yang dipersyaratkan.

This facility requires the Company to maintain certain financial ratios. As of December 31, 2018 and 2017, the Company is in compliance with all of the financial covenants.

Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman jangka pendek dari fasilitas ini masing-masing sebesar RpNihil. Saldo Pinjaman ini telah dilunasi pada tahun 2017.

As of December 31, 2018 and 2017, total outstanding short-term borrowing from this facility amounted to RpNil. This Short term borrowing has been paid in 2017.

Fasilitas ini dijamin secara fidusia dengan persediaan sebesar Rp1.518.732.000

This facility is secured by Fidusia inventories amounting to Rp1,518,732,000.

Fasilitas Transaksi Treasury Treasury Line Facility Pada tanggal 21 Juni 2010, Perseroan menandatangani perjanjian jasa pelayanan transaksi treasury dengan PT Bank Mandiri (Persero) Tbk. Fasilitas ini digunakan untuk melakukan penjualan dan pembelian valuta asing dalam rangka pembelanjaan modal rutin dan kegiatan operasional lainnya. Nilai fasilitas sebesar USD50.000.000. Fasilitas ini telah diperpanjang hingga 27 Juni 2019. Fasilitas ini dijamin dengan agunan yang digunakan untuk fasilitas Non Cash Loan, Kredit Modal Kerja dan cross collateral dan cross default dengan agunan fasilitas lainnya. Pada tanggal 31 Desember 2018 dan 2017, fasilitas ini belum digunakan.

On June 21, 2010, the Company entered into a treasury line agreement with PT Bank Mandiri (Persero) Tbk. The facility is used for selling and buying foreign currency for daily capital expenditure and operational activities. The maximum facility is USD50,000,000. This facility has been extended until recently June 27, 2019. This facility is secured by the collateral for Non Cash Loan, Working Capital facilities and cross collateral and cross default with other facilities. As of December 31, 2018 and 2017, the Company has not used this facility.







(Continued)

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Pada tanggal 31 Desember 2018 dan 2017, nilai LC yang telah diterbitkan dan masih berjalan berdasarkan fasilitas ini adalah masing-masing sebesar EUR6.653.709, dan CNY491.062; dan EUR5.422.673, JPY2.770.000 and USD446.596. Tidak terdapat fasilitas LC yang telah jatuh tempo dan belum dibayar pada tanggal 31 Desember 2018 dan 2017.

As of December 31, 2018 and 2017, the outstanding LC amounts under this facility were EUR6,653,709, and CNY491,062; and, EUR5,422,673, JPY2,770,000, and USD446,596, respectively. There are no amounts under this facility which are due and unpaid as of December 31, 2018 and 2017.

Fasilitas ini mensyaratkan Perseroan untuk memelihara rasio keuangan tertentu dan kewajiban untuk melapor antara lain jika Perseroan mengumumkan atau membayar dividen, memberikan pinjaman kepada pihak ketiga, menggadaikan sahamnya, mengikatkan diri sebagai penjamin utang atau menjaminkan harta kekayaannya kepada pihak lain. Pada tanggal 31 Desember 2018 dan 2017, Perseroan telah memenuhi semua rasio keuangan yang dipersyaratkan.

These facilities require the Company to maintain certain financial ratios and to report, among others, when the Company declares or pays dividends, provides loans to third parties, pledges its shares, grants guarantees or pledges its assets to any other parties. As of December 31, 2018 and 2017, the Company is in compliance with all of the financial covenants.

Fasilitas Modal Kerja Working Capital Facility Pada tanggal 2 Agustus 2012, Perseroan mendapat fasilitas Standby Loan dari PT Bank Mandiri (Persero) Tbk sebesar Rp1.000.000.000. Berdasarkan addendum keenam tanggal 28 Juni 2017 tingkat bunga yang berlaku adalah sebesar 7,65% per tahun dengan metode reference rate berdasarkan Published Rate Time Deposit (PRTD) Bank Mandiri untuk 3 bulan. Suku Bunga akan direviu setiap 3 bulan. Fasilitas ini telah diperpanjang sampai dengan tanggal 27 Juni 2019.

On August 2, 2012, the Company obtained Standby Loan facility from PT Bank Mandiri (Persero) Tbk amounting to Rp1,000,000,000. Based on the sixth amendment dated June 28, 2017, the interest rate is 7.65% per annum with reference rate method based on Published Rate Time Deposit (PRTD) of Bank Mandiri for 3 months. The interest rate will be reviewed every 3 months. This facility has been extended up to June 27, 2019.

Fasilitas ini mensyaratkan Perseroan untuk memelihara rasio keuangan tertentu. Pada tanggal 31 Desember 2018 dan 2017, Perseroan telah memenuhi semua rasio keuangan yang dipersyaratkan.

This facility requires the Company to maintain certain financial ratios. As of December 31, 2018 and 2017, the Company is in compliance with all of the financial covenants.

Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman jangka pendek dari fasilitas ini masing-masing sebesar RpNihil. Saldo Pinjaman ini telah dilunasi pada tahun 2017.

As of December 31, 2018 and 2017, total outstanding short-term borrowing from this facility amounted to RpNil. This Short term borrowing has been paid in 2017.

Fasilitas ini dijamin secara fidusia dengan persediaan sebesar Rp1.518.732.000

This facility is secured by Fidusia inventories amounting to Rp1,518,732,000.

Fasilitas Transaksi Treasury Treasury Line Facility Pada tanggal 21 Juni 2010, Perseroan menandatangani perjanjian jasa pelayanan transaksi treasury dengan PT Bank Mandiri (Persero) Tbk. Fasilitas ini digunakan untuk melakukan penjualan dan pembelian valuta asing dalam rangka pembelanjaan modal rutin dan kegiatan operasional lainnya. Nilai fasilitas sebesar USD50.000.000. Fasilitas ini telah diperpanjang hingga 27 Juni 2019. Fasilitas ini dijamin dengan agunan yang digunakan untuk fasilitas Non Cash Loan, Kredit Modal Kerja dan cross collateral dan cross default dengan agunan fasilitas lainnya. Pada tanggal 31 Desember 2018 dan 2017, fasilitas ini belum digunakan.

On June 21, 2010, the Company entered into a treasury line agreement with PT Bank Mandiri (Persero) Tbk. The facility is used for selling and buying foreign currency for daily capital expenditure and operational activities. The maximum facility is USD50,000,000. This facility has been extended until recently June 27, 2019. This facility is secured by the collateral for Non Cash Loan, Working Capital facilities and cross collateral and cross default with other facilities. As of December 31, 2018 and 2017, the Company has not used this facility.





(Continued)

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2. PT Semen Padang (SP) 2. PT Semen Padang (SP) Fasilitas Non-Cash Loan Non-Cash Loan Facility Pada tanggal 5 September 2012, SP menandatangani perjanjian fasilitas non-cash loan dengan PT Bank Mandiri (Persero) Tbk dengan nilai letter of credit maksimum sebesar Rp150.000.000 dengan sub-limit trust receipt sebesar Rp75.000.000, fasilitas treasury line dan bills purchase line digunakan masing-masing maksimum sebesar USD40.000.000 dan USD2.200.000 Fasilitas ini dijamin secara fidusia dengan piutang usaha, aset tetap berupa tanah SHGB No. 24 atas nama SP beserta bangunan, prasarana, mesin pabrik dan peralatan diatasnya. Fasilitas ini terakhir kali diperpanjang kembali hingga tanggal 27 Juni 2019.

On September 5, 2012, SP entered into non-cash loan facilities agreement with PT Bank Mandiri (Persero) Tbk for a letter of credit facility of Rp150,000,000 with sub-limit trust receipts of Rp75,000,000, treasury line and bills purchase line facilities with maximum credit limit of USD40,000,000 and USD2,200,000, respectively. These facilities are secured by fiduciary with accounts receivable, fixed assets such as land SHGB No. 24 on behalf of SP and its buildings, infrastructure, plant machinery and equipment thereon. These facilities were most recently extended until June 27, 2019.

Fasilitas ini mensyaratkan SP untuk memelihara rasio keuangan tertentu dan kewajiban melapor apabila terjadi perubahan susunan Direksi dan Dewan Komisaris, dan modal dan susunan pemegang saham dan melakukan pembayaran dividen, fasilitias kredit dan/atau pinjaman dari pihak lain. Pada tanggal 31 Desember 2018, SP telah memenuhi rasio keuangan yang disyaratkan dalam perjanjian.

These facilities require SP to maintain certain financial ratios and to report on changes in the Board of Directors and Commissioners, share capital and shareholders, and payments of dividends and credit facilities and/or loans obtained from other parties. As of December 31, 2018, SP has fulfilled all the required ratios as stated in the agreement.

Pada tanggal 31 Desember 2018 dan 2017, LC yang telah diterbitkan dan masih berjalan berdasarkan fasilitas ini masing-masing sebesar EUR37.343 dan Rp1.632.199. Tidak terdapat fasilitas LC yang telah jatuh tempo dan belum dibayar pada tanggal 31 Desember 2018 dan 2017.

As of December 31, 2018 and 2017, outstanding LC under these facilities amounted to EUR37,343 and Rp1,632,199, respectively. There are no amounts under these facilities which are due and unpaid as of December 31, 2018 and 2017.

3. PT Semen Tonasa (ST)

3. PT Semen Tonasa (ST)

Fasilitas Non-Cash Loan

Non-Cash Loan Facility

Pada tanggal 8 Juni 2018, ST menandatangani adendum keenam belas dari perjanjian fasilitas non-cash loan dalam bentuk letter of credit (LC) impor, SKBDN (Sight/Usance/UPAS) dan Bank Garansi dengan PT Bank Mandiri (Persero) Tbk dengan nilai fasilitas maksimal sebesar USD15.000.000 dengan sub limit supply chain financial sebesar USD3.500.000. Fasilitas ini akan jatuh tempo pada tanggal 27 Juni 2019 dan dijamin secara fidusia dengan barang-barang yang dibeli/diimpor dan hipotik tanah di Pangkep. Tujuan dari fasilitas ini adalah untuk pembiayaan dalam rangka pembelian bahan baku, bahan pembantu, bahan bakar dan suku cadang.

On June 8, 2018, ST signed the sixteenth addendum to the non-cash loan facilities in the form of import letters of credit (LC), Domestic LC (SKBDN-sight/ usance/UPAS) and bank guarantee agreement with PT Bank Mandiri (Persero) Tbk involving a maximum facility of USD15,000,000 with a sub-limit supply chain financial facility of USD3,500,000. The facilities have been extended and are due to expire on June 27, 2019 and are secured by the fiduciary to transfer of the purchased/imported goods and a mortgage over land rights located in Pangkep. The purpose of these facilities is to finance for the purchase of raw materials, supporting materials, fuel and spare parts.







(Continued)

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Pada tanggal 31 Desember 2018 dan 2017, LC yang telah diterbitkan berdasarkan fasilitas ini sebesar EUR3.629.037, USD1.379.076 dan Rp211.224.109; dan EUR1.803.082, Rp18.289.134, dan USD1.005.406.

As of December 31, 2018 and 2017, outstanding LC under these facilities amounted to EUR3,629,037, USD1,379,076 dan Rp211,224,109; and EUR1,803,082, Rp18,289,134, and USD1,005,406, respectively.

Fasilitas Transaksi Treasury

Treasury Line Facility

Pada tanggal 8 Juni 2018, ST menandatangani adendum perjanjian jasa pelayanan transaksi treasury dengan PT Bank Mandiri (Persero) Tbk untuk melakukan transaksi penjualan dan pembelian foreign exchange valuta dengan nilai fasilitas maksimal sebesar USD12.000.000. Fasilitas ini akan jatuh tempo pada tanggal 27 Juni 2019 dan dijamin dengan cross collateral dan cross default dengan fasilitas lainnya (kecuali fasilitas kredit bank sindikasi). Tujuan dari fasilitas ini adalah untuk kepentingan lindung nilai atas transaksi ekspor/impor ST.

On June 8, 2018, ST signed an addendum to the treasury line agreement with PT Bank Mandiri (Persero) Tbk for the sale and purchase transaction of foreign exchange currency, involving a maximum facility of USD12,000,000. The facility was extended and is due to expire on June 27, 2019 and is secured by cross collateral and cross default with other facilities (excluding syndicated credit facility). The purpose of this facility is to hedge the export/import transactions of ST.

Sampai tanggal 31 Desember 2018 dan 2017, fasilitas ini belum digunakan.

As of December 31, 2018 and 2017, this facility remains unused.

4. PT Semen Indonesia Logistik (SIL) 4. PT Semen Indonesia Logistik (SIL) Kredit Modal Kerja Umum

General Working Capital Loan

Berdasarkan akta perjanjian utang No. 56 tanggal 24 Juni 2011 dari Wachid Hasyim, S.H., Notaris di Surabaya, yang telah diubah beberapa kali terakhir dengan Addendum X atas akta perjanjian utang no. 97 tanggal 10 Agustus 2016 dari Yatiningsih S.H., M.H,, Notaris di Surabaya. Fasilitas terakhir kali diamandemen dengan memperpanjang kembali jangka waktu fasilitas sampai dengan 27 Juni 2019 untuk tujuan modal kerja di bidang usaha angkutan, perdagangan semen, barang industri, dan pertambangan kepada SIL dan limit kredit maksimal menjadi sebesar Rp77.000.000. Bunga pinjaman 8,9% per tahun, untuk direviu sewaktu-waktu.

Based on the Deed of Loan Agreement No. 56 dated on June 24, 2011 by Wachid Hasyim, S.H., Notary in Surabaya, which has been amended many times with the latest is Amendment X with Deed of Loan Agreement No. 97 dated August 10, 2016 by Yatiningsih S.H., H.M., Notary in Surabaya. This facility was amended extending the period of facility up to June 27, 2019 and increasing the maximum credit limit to Rp77,000,000. The purpose of the facility is for working capital on transportation business, cement trade, industrial goods and mining of SIL. Interest rate of the loans is at 8.9% per annum, subject for review at any given time.

Fasilitas kredit ini dijamin dengan: - Kendaraan dengan total nilai penjaminan

sebesar Rp104.421.083.

This credit facility is secured with: - Vehicle with maximum amount of

Rp104,421,083. - Piutang Dagang dengan nilai sebesar

Rp331.628.249 - Accounts receivable amounting to

Rp331,628,249. Pada tanggal 31 Desember 2018 dan 2017, saldo utang bank atas fasilitas ini adalah masing-masing sebesar RpNihil dan Rp30.000.000.

As of December 31, 2018 and 2017, the outstanding bank loan amounted to RpNil and Rp30,000,000, respectively.







(Continued)

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Pada tanggal 31 Desember 2018 dan 2017, LC yang telah diterbitkan berdasarkan fasilitas ini sebesar EUR3.629.037, USD1.379.076 dan Rp211.224.109; dan EUR1.803.082, Rp18.289.134, dan USD1.005.406.

As of December 31, 2018 and 2017, outstanding LC under these facilities amounted to EUR3,629,037, USD1,379,076 dan Rp211,224,109; and EUR1,803,082, Rp18,289,134, and USD1,005,406, respectively.

Fasilitas Transaksi Treasury

Treasury Line Facility

Pada tanggal 8 Juni 2018, ST menandatangani adendum perjanjian jasa pelayanan transaksi treasury dengan PT Bank Mandiri (Persero) Tbk untuk melakukan transaksi penjualan dan pembelian foreign exchange valuta dengan nilai fasilitas maksimal sebesar USD12.000.000. Fasilitas ini akan jatuh tempo pada tanggal 27 Juni 2019 dan dijamin dengan cross collateral dan cross default dengan fasilitas lainnya (kecuali fasilitas kredit bank sindikasi). Tujuan dari fasilitas ini adalah untuk kepentingan lindung nilai atas transaksi ekspor/impor ST.

On June 8, 2018, ST signed an addendum to the treasury line agreement with PT Bank Mandiri (Persero) Tbk for the sale and purchase transaction of foreign exchange currency, involving a maximum facility of USD12,000,000. The facility was extended and is due to expire on June 27, 2019 and is secured by cross collateral and cross default with other facilities (excluding syndicated credit facility). The purpose of this facility is to hedge the export/import transactions of ST.

Sampai tanggal 31 Desember 2018 dan 2017, fasilitas ini belum digunakan.

As of December 31, 2018 and 2017, this facility remains unused.

4. PT Semen Indonesia Logistik (SIL) 4. PT Semen Indonesia Logistik (SIL) Kredit Modal Kerja Umum

General Working Capital Loan

Berdasarkan akta perjanjian utang No. 56 tanggal 24 Juni 2011 dari Wachid Hasyim, S.H., Notaris di Surabaya, yang telah diubah beberapa kali terakhir dengan Addendum X atas akta perjanjian utang no. 97 tanggal 10 Agustus 2016 dari Yatiningsih S.H., M.H,, Notaris di Surabaya. Fasilitas terakhir kali diamandemen dengan memperpanjang kembali jangka waktu fasilitas sampai dengan 27 Juni 2019 untuk tujuan modal kerja di bidang usaha angkutan, perdagangan semen, barang industri, dan pertambangan kepada SIL dan limit kredit maksimal menjadi sebesar Rp77.000.000. Bunga pinjaman 8,9% per tahun, untuk direviu sewaktu-waktu.

Based on the Deed of Loan Agreement No. 56 dated on June 24, 2011 by Wachid Hasyim, S.H., Notary in Surabaya, which has been amended many times with the latest is Amendment X with Deed of Loan Agreement No. 97 dated August 10, 2016 by Yatiningsih S.H., H.M., Notary in Surabaya. This facility was amended extending the period of facility up to June 27, 2019 and increasing the maximum credit limit to Rp77,000,000. The purpose of the facility is for working capital on transportation business, cement trade, industrial goods and mining of SIL. Interest rate of the loans is at 8.9% per annum, subject for review at any given time.

Fasilitas kredit ini dijamin dengan: - Kendaraan dengan total nilai penjaminan

sebesar Rp104.421.083.

This credit facility is secured with: - Vehicle with maximum amount of

Rp104,421,083. - Piutang Dagang dengan nilai sebesar

Rp331.628.249 - Accounts receivable amounting to

Rp331,628,249. Pada tanggal 31 Desember 2018 dan 2017, saldo utang bank atas fasilitas ini adalah masing-masing sebesar RpNihil dan Rp30.000.000.






(Continued)

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Kredit Modal Kerja Pembelian Semen Working Capital Loan for Cement Purchase

Berdasarkan Akta Perjanjian Utang No.47 tanggal 24 Mei 2011 dari Wachid Hasyim, SH., Notaris di Surabaya yang telah diubah beberapa kali sampai dengan Addendum VIII dengan Akta Perjanjian Utang No. 96 tanggal 10 Agustus 2016, PT Bank Mandiri (Persero), Tbk menyetujui perpanjangan jangka waktu fasilitas dan penambahan limit fasilitas Kredit Modal Kerja kepada SIL sampai dengan tanggal 27 Juni 2019 dengan pagu maksimum kredit menjadi sebesar Rp62.000.000. Fasilitas tersebut digunakan untuk tujuan modal kerja dan pembayaran tagihan transaksi semen. Fasilitas kredit tersebut dibebani bunga sebesar 9,5% per tahun, untuk direviu sewaktu-waktu. Jaminan atas fasilitas tersebut bersifat cross collateral dan cross default dengan fasilitas Bank Garansi dalam Addendum XIII Perjanjian Fasilitas Bank Garansi dengan Akta No.95, tanggal 10 Agustus 2016 dari Yatiningsih, S.H., M.H., Notaris di Surabaya.

Based on the Deed of Loan Agreement No. 47 dated on May 24, 2011 by Wachid Hasyim, SH., Notary in Surabaya and has been amended several with the latest amendment VIII with Deed of Loan Agreement No. 96 on August 10, 2016, PT Bank Mandiri (Persero), Tbk agreed to extend and increase the Working Capital Credit facility to SIL until June 27, 2019 with maximum limit of Rp62,000,000. This facility is used for working capital and settlement for cement bill transaction. The interest rate of the facility is 9.5% per annum, subject for review at any given time. The collateral for this facility are cross collateral and cross default with facilities in bank guarantee amendment XIII Bank Facility Agreement deed No.95 dated on August 10, 2016 by Yatiningsih, S.H., M.H., Notary in Surabaya.

Pada tanggal 31 Desember 2018 dan 2017, saldo utang bank atas fasilitas ini masing-masing sebesar RpNihil dan Rp32.691.086.


Fasilitas Bank Garansi Bank Guarantee Facilities Berdasarkan surat perjanjian utang No. 95 tanggal 10 Agustus 2016, PT Bank Mandiri (Persero), Tbk, memberikan fasilitas Bank Garansi kepada SIL dan telah diperpanjang terakhir sampai dengan 27 Juni 2019 dengan limit bank garansi sebesar Rp327.000.000.

Based on Loan Agreement No. 95 on August 10, 2016, PT Bank Mandiri (Persero), Tbk provided bank guarantee facility to SIL which was recently extended until June 27, 2019. Limit of bank guarantee amounted to Rp327,000,000.

Fasilitas pinjaman tersebut diatas dijamin dengan: - Tanah beserta bangunan, mesin,

peralatan dan perlengkapan berlokasi di Tulungagung, Malang, Banyuwangi, Bojonegoro, Blora, dan Semarang dengan hak tanggungan dengan total nilai Rp34.159.300.

- Truk atas nama SIL dengan nilai pengikatan Rp2.149.000.

- Persediaan dan piutang dengan nilai pengikatan masing-masing sebesar Rp1.971.754 dan Rp331.628.249.

The loan facilities above are secured with:

- Land, building, machine, and equipment located in Tulungangung, Malang, Banyuwangi, Bojonegoro, Blora, and Semarang with total mortgage value amounting to Rp34,159,300.

- Trucks under the name of SIL with the amount of Rp2,149,000.

- Inventories and receivables with commitment value amounting to Rp1,971,754 and Rp331,628,249 respectively.

Fasilitas tersebut mensyaratkan SIL untuk memelihara rasio keuangan tertentu. Pada tanggal 31 Desember 2018 dan 2017, SIL tidak bisa memenuhi salah satu rasio keuangan, namun telah menerima waiver letter dari PT Bank Mandiri (Persero) Tbk, sebelum penerbitan laporan keuangan konsolidasian.

The facilities above require SIL to maintain certain financial ratios. As of December 31, 2018 and 2017, SIL was not able to comply with one of the financial ratios but has received waiver letter from PT Bank Mandiri (Persero) Tbk, before the issuance of the Group’s consolidated statements.







(Continued)

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Pada tanggal 24 Maret 2016, SID, entitas anak SIL, menandatangani perjanjian fasilitas Bank Garansi dengan PT Bank Mandiri (Persero) Tbk. Fasilitas ini telah diperbaharui yang terakhir kali terkait perubahan limit Bank Garansi menjadi sebesar Rp50.000.000 dengan jangka waktu sampai dengan 31 Januari 2019. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman pada fasilitas ini masing-masing adalah Rp290.000.000 dan RpNihil.

On March 24, 2016, SID, subsidiary of SIL, entered into Bank Guarantee facility agreement with PT Bank Mandiri (Persero) Tbk. This facility has been amended with latest amendment regarding the changes of the Bank Guarantee limit into Rp50,000,000 with term until January 31, 2019. As of December 31, 2018 and 2017, the outstanding balance of this facility amounted to Rp290,000,000 and RpNil, respectively.

Fasilitas kredit ini mensyaratkan SID melakukan kewajiban untuk melapor antara lain jika terdapat perubahan susunan pemegang saham dan pengurus, investasi saham baru dan fasilitas pinjaman baru. Pada tanggal 31 Desember 2017, SID telah memenuhi ketentuan yang dipersyaratkan. Pada tanggal 31 Desember 2018, salah satu persyaratan untuk melapor tersebut tidak terpenuhi dan SID telah mendapatkan waiver letter dari PT Bank Mandiri (Persero) Tbk terkait dengan pelanggaran tersebut.

This credit facility requires SID to maintain certain financial ratios and to report the changes in share capital and management structure, any new investment in shares, new loan facility and/or borrowing in SID. As of December 31, 2017, SID has comply with the stipulated requirements.As of December 31, 2018, one of the reporting stipulation was not met and SID has received waiver letter from PT Bank Mandiri (Persero) Tbk on the related noncompliance.

Fasilitas Jasa Notional Pooling Pada tanggal 2 Agustus 2012, SIL menandatangani perjanjian fasilitas notional pooling dengan PT Bank Mandiri (Perseo) Tbk bersama-sama dengan PT Semen Indonesia (Persero) Tbk Grup dan entitas anak, dengan amandemen terakhir tanggal 20 Maret 2018 mengenai perjanjian pelayanan jasa Notional Pooling, jangka waktu fasilitas, serta surat persetujuan dan penetapan limit defisit. Fasilitas ini berakhir tanggal 19 Maret 2019. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman pada fasilitas ini masing-masing adalah Rp548.500.000 dan RpNihil.

Notional Pooling Service On August 2, 2012, SIL entered into notional pooling with PT Bank Mandiri (Persero) Tbk together with PT Semen Indonesia (Persero) Tbk Group and its subsidiaries with latest amendment on March 20, 2018 pertaining to Notional Pooling services agreement, maturity date and letter of approval and deficit limit. The facility will mature on March 19, 2019. As of December 31, 2018 and 2017, outstanding balance of this credit facility amounted to Rp548,500,000 and RpNil, respectively.

5. PT Semen Gresik (SG) 5. PT Semen Gresik (SG) Fasilitas Non-Cash Loan Non-Cash Loan Facility Pada tanggal 11 Maret 2014, SG menandatangani perjanjian fasilitas non-cash loan (NCL) dalam bentuk Letter of Credit (LC) dengan PT Bank Mandiri (Persero) Tbk dengan nilai fasilitas maksimum sebesar Rp1.400.000.000 dan telah berakhir pada 21 September 2017. Fasilitas ini dijamin secara fidusia dengan barang yang diimpor/dibeli dengan menggunakan fasilitas ini dan/atau bank garansi yang dimiliki SG. Tingkat bunga yang dikenakan untuk fasilitas LC adalah sesuai dengan ketentuan yang berlaku di Bank.

On March 11, 2014, SG entered into a non-cash loan (NCL) facility agreement in the form of a Letter of Credit (LC) facility with PT Bank Mandiri (Persero) Tbk for a maximum amount of Rp1,400,000,000 and has ended on September 21, 2017. This facility was secured by the fiduciary transfer of the imported/purchased goods acquired using these facilities and/or bank guarantees of SG. The interest rate for LC facilities is in accordance with the rate applied in the bank.







(Continued)

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Pada tanggal 24 Maret 2016, SID, entitas anak SIL, menandatangani perjanjian fasilitas Bank Garansi dengan PT Bank Mandiri (Persero) Tbk. Fasilitas ini telah diperbaharui yang terakhir kali terkait perubahan limit Bank Garansi menjadi sebesar Rp50.000.000 dengan jangka waktu sampai dengan 31 Januari 2019. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman pada fasilitas ini masing-masing adalah Rp290.000.000 dan RpNihil.

On March 24, 2016, SID, subsidiary of SIL, entered into Bank Guarantee facility agreement with PT Bank Mandiri (Persero) Tbk. This facility has been amended with latest amendment regarding the changes of the Bank Guarantee limit into Rp50,000,000 with term until January 31, 2019. As of December 31, 2018 and 2017, the outstanding balance of this facility amounted to Rp290,000,000 and RpNil, respectively.

Fasilitas kredit ini mensyaratkan SID melakukan kewajiban untuk melapor antara lain jika terdapat perubahan susunan pemegang saham dan pengurus, investasi saham baru dan fasilitas pinjaman baru. Pada tanggal 31 Desember 2017, SID telah memenuhi ketentuan yang dipersyaratkan. Pada tanggal 31 Desember 2018, salah satu persyaratan untuk melapor tersebut tidak terpenuhi dan SID telah mendapatkan waiver letter dari PT Bank Mandiri (Persero) Tbk terkait dengan pelanggaran tersebut.

This credit facility requires SID to maintain certain financial ratios and to report the changes in share capital and management structure, any new investment in shares, new loan facility and/or borrowing in SID. As of December 31, 2017, SID has comply with the stipulated requirements.As of December 31, 2018, one of the reporting stipulation was not met and SID has received waiver letter from PT Bank Mandiri (Persero) Tbk on the related noncompliance.

Fasilitas Jasa Notional Pooling Pada tanggal 2 Agustus 2012, SIL menandatangani perjanjian fasilitas notional pooling dengan PT Bank Mandiri (Perseo) Tbk bersama-sama dengan PT Semen Indonesia (Persero) Tbk Grup dan entitas anak, dengan amandemen terakhir tanggal 20 Maret 2018 mengenai perjanjian pelayanan jasa Notional Pooling, jangka waktu fasilitas, serta surat persetujuan dan penetapan limit defisit. Fasilitas ini berakhir tanggal 19 Maret 2019. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman pada fasilitas ini masing-masing adalah Rp548.500.000 dan RpNihil.

Notional Pooling Service On August 2, 2012, SIL entered into notional pooling with PT Bank Mandiri (Persero) Tbk together with PT Semen Indonesia (Persero) Tbk Group and its subsidiaries with latest amendment on March 20, 2018 pertaining to Notional Pooling services agreement, maturity date and letter of approval and deficit limit. The facility will mature on March 19, 2019. As of December 31, 2018 and 2017, outstanding balance of this credit facility amounted to Rp548,500,000 and RpNil, respectively.

5. PT Semen Gresik (SG) 5. PT Semen Gresik (SG) Fasilitas Non-Cash Loan Non-Cash Loan Facility Pada tanggal 11 Maret 2014, SG menandatangani perjanjian fasilitas non-cash loan (NCL) dalam bentuk Letter of Credit (LC) dengan PT Bank Mandiri (Persero) Tbk dengan nilai fasilitas maksimum sebesar Rp1.400.000.000 dan telah berakhir pada 21 September 2017. Fasilitas ini dijamin secara fidusia dengan barang yang diimpor/dibeli dengan menggunakan fasilitas ini dan/atau bank garansi yang dimiliki SG. Tingkat bunga yang dikenakan untuk fasilitas LC adalah sesuai dengan ketentuan yang berlaku di Bank.

On March 11, 2014, SG entered into a non-cash loan (NCL) facility agreement in the form of a Letter of Credit (LC) facility with PT Bank Mandiri (Persero) Tbk for a maximum amount of Rp1,400,000,000 and has ended on September 21, 2017. This facility was secured by the fiduciary transfer of the imported/purchased goods acquired using these facilities and/or bank guarantees of SG. The interest rate for LC facilities is in accordance with the rate applied in the bank.





(Continued)

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Pada tanggal 31 Desember 2017, nilai LC yang telah diterbitkan dan masih berjalan berdasarkan fasilitas ini adalah sebesar masing-masing RpNihil dan EUR861.900. Tidak terdapat fasilitas LC yang telah jatuh tempo dan belum dibayar pada tanggal 31 Desember 2017.

As of December 31, 2017, the outstanding LC amount under this facility amounted to RpNil and EUR861,900, respectively. There is no amount under this facility, which is due and unpaid as of December 31, 2017.

Selama fasilitas ini belum lunas, SG berkewajiban untuk memenuhi syarat-syarat seperti yang diatur dalam perjanjian. Pada tanggal 31 Desember 2017, SG telah memenuhi semua persyaratan yang telah diatur di dalam perjanjian.

Before the settlement of this facility, SG has an obligation to comply with all conditions as stipulated in the agreement. As of December 31, 2017, SG has complied with all conditions as stipulated in the agreement.

Fasilitas Non Cash Loan (LC Impor/SKBDN) sub limit Trust Receipt (“TR”) dan Bank Garansi (“BG”)

Non-Cash Loan Facility (LC Import/SKBDN) sub limit Trust Receipt (“TR”) and Bank Guarantee

Pada tanggal 27 Juni 2017, SG memperoleh fasilitas Non-Cash loan dari PT Bank Mandiri (Persero) Tbk yang merupakan Addendum XVI atas perjanjian berdasarkan surat Bank OPS.CRO/CCL.439/ADD/2017 antara Perseroan dengan PT Bank Mandiri (Persero) Tbk, untuk memenuhi kebutuhan operasional KSO SG – SI. Pada tanggal 26 Juni 2018, SG memperpanjang fasilitas Non-cash loan dengan limit Rp 150.000.000 yang digunakan untuk pembelajaan kegiatan operasional.

On June 27, 2017, SG obtained Non-cash loan facility from PT Bank Mandiri (Persero) Tbk which is a XVI Addendum of the letter of agreement from Bank No. OPS.CRO/CCL.439/ADD/2017 between the Company and PT Bank Mandiri (Persero) Tbk to support KSO SG – SI operational needs. On June 26, 2018, SG is extended Non-cash loan facility with limit of Rp15,000,000 used for buying operational activities.

Pada tanggal 31 Desember 2018 dan 2017, nilai LC yang telah diterbitkan dan masih berjalan berdasarkan fasilitas ini adalah sebesar masing-masing nihil dan EUR5.422.673 atau setara dengan Rp87.704.249, USD 446.231 atau setara dengan Rp6.045.535, JPY2.770.000 atau setara dengan Rp332.982. Tidak terdapat fasilitas LC yang telah jatuh tempo dan belum dibayar pada tanggal 31 Desember 2018 dan 2017.

As at December 31, 2018 and 2017, the outstanding LC amounts under this facility were nil and EUR5,422,673 or equivalent to Rp87,704,249, USD 446,231 or equivalent to Rp6,045,535, JPY2,770,000 or equivalent to Rp332,982, respectively. There are no amounts under this facility which are due and unpaid as of December 31, 2018 and 2017.

Fasilitas Transaksi Treasury Treasury Line Facility Pada tanggal 17 Juni 2014, SG menandatangani perjanjian jasa pelayanan transaksi treasury dengan PT Bank Mandiri (Persero) Tbk. Fasilitas ini digunakan dalam rangka melakukan pengadaan dan pembelian valuta asing untuk pembelanjaan modal rutin dan kegiatan operasional lainnya dengan nilai fasilitas sebesar USD15.000.000, jatuh tempo pada tanggal 27 Juni 2015. Fasilitas ini telah diperpanjang dan peningkatan limit menjadi sebesar USD55.000.000, yang akan jatuh tempo pada tanggal 27 Juni 2019. Fasilitas ini dijamin dengan fasilitas Non-cash Loan, Joint Collateral dan Cross Default dengan fasilitas lainnya. Pada tanggal 31 Desember 2018 dan 2017, tidak ada transaksi yang masih berjalan atas fasilitas ini.

On June 17, 2014, SG entered into a treasury line agreement with PT Bank Mandiri (Persero) Tbk. The facility is used for selling and buying foreign currency for daily capital expenditure and operational activities. The maximum facility is USD15,000,000 which is due to expire on June 27, 2015. The facility limit was increased to USD55,000,000, and this facility was extended and is due to expire on June 27, 2019. This facility is secured by the collateral for non-cash Loan, joint collateral and cross default with other facilities. As of December 31, 2018 and 2017, there are no outstanding transaction under this facility.







(Continued)

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Fasilitas Kredit Modal Kerja Working Capital Credit Facility Pada tanggal 10 Juni 2016, SG menandatangani perjanjian fasilitas kredit modal kerja dengan PT Bank Mandiri (Persero) Tbk. Fasilitas ini dibagi menjadi dua bagian sebesar Rp500.000.000 dengan sub-limit fasilitas NCL sebesar Rp300.000.000 dengan tujuan masing-masing untuk pembiayaan kebutuhan modal kerja operasional pada saat pabrik mulai beroperasi dan untuk pembelian bahan baku untuk operasi dan peralatan operasional. Fasilitas ini telah diperpanjang dan berlaku sampai dengan 27 Juni 2019. Suku bunga yang berlaku untuk fasilitas ini adalah reference rate (suku bunga BI) ditambah dengan margin yang berasal dari selisih antara suku bunga awal dikurangi reference rate. Tingkat suku bunga awal yang berlaku adalah 8,4% pada saat penandatanganan perjanjian dan suku bunga margin sebesar 1,65%. Pada tanggal 31 Desember 2018 dan 2017, saldo fasilitas tersebut sebesar RpNihil dan Rp85.000.000.

On June 10, 2016, SG has signed working capital credit facility agreement with PT Bank Mandiri (Persero) Tbk. The facility is divided into two (2) parts amounting to Rp500,000,000 with NCL sub-limits facility amounting to Rp300,000,000 with purposes respectively for working capital operational funding when the plant starts operation and purchase of material for operation and operational equipment. This facility has been extended and is valid until June 27, 2019. The interest rate applied for this facility is based on reference rate (BI Rate) plus margin from difference between beginning interest rate less reference rate. The beginning interest rate is 8.4% upon signing of the agreement and margin interest rate is 1.65%. As of December 31, 2018 and 2017, the outstanding balance under this facility amounted to RpNil and Rp85,000,000.

Pada tanggal 16 Pebruari 2017, berdasarkan surat Penetapan Limit Defisit Notional Pooling No. 0013/KU.01.04/253000/02.2017, Perseroan menyetujui pemberian tambahan limit kepada SG sebagai Anggota Notional Pooling dengan nilai penarikan Rp360.000.000 dengan tingkat bunga 8,25% menggunakan fasilitas Notional Pooling PT Bank Mandiri (Persero) Tbk.

In February 16, 2017, based on the Notional Pooling Deficit Limit statement letter, No.0013/KU.01.04/253000/02.2017, The Company, approve of granting additional limit for SG as the member of Notional Pooling with total withdrawal amounted to Rp360,000,000 with interest rate of 8.25% by using Notional Pooling facility from PT Bank Mandiri (Persero) Tbk.

Saldo fasilitas ini pada tanggal 31 Desember 2018 dan 2017 sebesar RpNihil dan Rp210.000.000.

As of December 31, 2018 and 2017, balance for this facility is amounting to RpNil and Rp210,000,000.

6. United Tractors Semen Gresik

6. United Tractor Semen Gresik

Fasilitas Jasa Notional Pooling

Notional Pooling Service

Pada tahun 2018 UTSG melalui Perseroan, mendapatkan fasilitas Notional Pooling dari Bank Mandiri (Persero) Tbk. untuk kredit modal kerja sebesar Rp200.000.000 dengan bunga terakhir sebesar LPS (Lembaga Penjamin Simpanan) + 2% dengan jangka waktu pinjaman sampai dengan 19 Maret 2019. UTSG melakukan penarikan atas fasilitas tersebut sebesar Rp99.105.829 di tahun 2018.

In 2018, UTSG through the Company, obtained the notional pooling facility from Bank Mandiri (Persero) Tbk. for working capital credit amounting to Rp200,000,000 with the latest interest of LPS (Lembaga Penjamin Simpanan) + 2% and will mature on March 19, 2019. In 2018, UTSG has withdrawn from the facility amounting to Rp99,105,829.

7. Industri Kemasan Semen Gresik 7. Industri Kemasan Semen Gresik



Pada tahun 2018, IKSG menggunakan fasilitas Notional Pooling dari PT Bank Mandiri (Persero) Tbk. sebesar Rp29.800.000 dengan tingkat bunga pinjaman menggunakan LPS + 2%. Fasilitas ini akan berakhir pada 19 Maret 2019.

In 2018, IKSG used the Notional Pooling facility from PT Bank Mandiri (Persero) Tbk amounting to Rp29,800,000 with the interest rate of LPS + 2%. This facility will expire on March 19, 2019.







(Continued)

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Fasilitas Kredit Modal Kerja Working Capital Credit Facility Pada tanggal 10 Juni 2016, SG menandatangani perjanjian fasilitas kredit modal kerja dengan PT Bank Mandiri (Persero) Tbk. Fasilitas ini dibagi menjadi dua bagian sebesar Rp500.000.000 dengan sub-limit fasilitas NCL sebesar Rp300.000.000 dengan tujuan masing-masing untuk pembiayaan kebutuhan modal kerja operasional pada saat pabrik mulai beroperasi dan untuk pembelian bahan baku untuk operasi dan peralatan operasional. Fasilitas ini telah diperpanjang dan berlaku sampai dengan 27 Juni 2019. Suku bunga yang berlaku untuk fasilitas ini adalah reference rate (suku bunga BI) ditambah dengan margin yang berasal dari selisih antara suku bunga awal dikurangi reference rate. Tingkat suku bunga awal yang berlaku adalah 8,4% pada saat penandatanganan perjanjian dan suku bunga margin sebesar 1,65%. Pada tanggal 31 Desember 2018 dan 2017, saldo fasilitas tersebut sebesar RpNihil dan Rp85.000.000.

On June 10, 2016, SG has signed working capital credit facility agreement with PT Bank Mandiri (Persero) Tbk. The facility is divided into two (2) parts amounting to Rp500,000,000 with NCL sub-limits facility amounting to Rp300,000,000 with purposes respectively for working capital operational funding when the plant starts operation and purchase of material for operation and operational equipment. This facility has been extended and is valid until June 27, 2019. The interest rate applied for this facility is based on reference rate (BI Rate) plus margin from difference between beginning interest rate less reference rate. The beginning interest rate is 8.4% upon signing of the agreement and margin interest rate is 1.65%. As of December 31, 2018 and 2017, the outstanding balance under this facility amounted to RpNil and Rp85,000,000.

Pada tanggal 16 Pebruari 2017, berdasarkan surat Penetapan Limit Defisit Notional Pooling No. 0013/KU.01.04/253000/02.2017, Perseroan menyetujui pemberian tambahan limit kepada SG sebagai Anggota Notional Pooling dengan nilai penarikan Rp360.000.000 dengan tingkat bunga 8,25% menggunakan fasilitas Notional Pooling PT Bank Mandiri (Persero) Tbk.

In February 16, 2017, based on the Notional Pooling Deficit Limit statement letter, No.0013/KU.01.04/253000/02.2017, The Company, approve of granting additional limit for SG as the member of Notional Pooling with total withdrawal amounted to Rp360,000,000 with interest rate of 8.25% by using Notional Pooling facility from PT Bank Mandiri (Persero) Tbk.

Saldo fasilitas ini pada tanggal 31 Desember 2018 dan 2017 sebesar RpNihil dan Rp210.000.000.

As of December 31, 2018 and 2017, balance for this facility is amounting to RpNil and Rp210,000,000.

6. United Tractors Semen Gresik

6. United Tractor Semen Gresik



Pada tahun 2018 UTSG melalui Perseroan, mendapatkan fasilitas Notional Pooling dari Bank Mandiri (Persero) Tbk. untuk kredit modal kerja sebesar Rp200.000.000 dengan bunga terakhir sebesar LPS (Lembaga Penjamin Simpanan) + 2% dengan jangka waktu pinjaman sampai dengan 19 Maret 2019. UTSG melakukan penarikan atas fasilitas tersebut sebesar Rp99.105.829 di tahun 2018.

In 2018, UTSG through the Company, obtained the notional pooling facility from Bank Mandiri (Persero) Tbk. for working capital credit amounting to Rp200,000,000 with the latest interest of LPS (Lembaga Penjamin Simpanan) + 2% and will mature on March 19, 2019. In 2018, UTSG has withdrawn from the facility amounting to Rp99,105,829.

7. Industri Kemasan Semen Gresik 7. Industri Kemasan Semen Gresik



Pada tahun 2018, IKSG menggunakan fasilitas Notional Pooling dari PT Bank Mandiri (Persero) Tbk. sebesar Rp29.800.000 dengan tingkat bunga pinjaman menggunakan LPS + 2%. Fasilitas ini akan berakhir pada 19 Maret 2019.

In 2018, IKSG used the Notional Pooling facility from PT Bank Mandiri (Persero) Tbk amounting to Rp29,800,000 with the interest rate of LPS + 2%. This facility will expire on March 19, 2019.





(Continued)

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8. Sinergi Informatika Semen Indonesia (SISI)

8. Sinergi Informatika Semen Indonesia (SISI)



Pada tanggal 20 Maret 2018, SISI melakukan penandatanganan perjanjian pelayanan jasa Notional Pooling dengan Perseroan, yang difasilitasi oleh P.T. Bank Mandiri (Persero) Tbk, dengan mendapatkan jumlah kredit maksimum sebesar Rp40.700.000 dengan tingkat suku bunga LPS (Lembaga Penjamin Simpanan) + 2%. Fasilitas ini akan berakhir pada tanggal 19 Maret 2019. Sehingga, saldo hutang bank pada tanggal 31 Desember 2018 dan 2017 masing-masing menjadi sebesar Rp40.000.000 dan RpNihil.

On March 20, 2018, SISI signed a Notional Pooling service agreement with the Company, facilitated by P.T. Bank Mandiri (Persero) Tbk, by obtaining a maximum credit amount of Rp40,700,000 through P.T. Bank Mandiri (Persero) Tbk, with an interest rate of LPS (Lembaga Penjamin Simpanan) + 2%. This facility will expire on March 19, 2019. The balance of the bank loan as of December 31, 2018 and 2017 amounted to Rp40,000,000 and RpNil, respectively.

9. Semen Indonesia Beton (SIB) 9. Semen Indonesia Beton (SIB) Fasilitas Jasa Notional Pooling Notional Pooling Service Pada tanggal 20 Maret 2018, SIB menandatangani perjanjian pelayanan jasa notional pooling dengan PT Bank Mandiri (Persero) Tbk. Dengan perjanjian ini, SIB dapat melakukan penarikan dari rekening peserta pooling. Penarikan dapat dilakukan selama nilai limit defisit sebesar Rp 200.000 dan saldo konsolidasi pooling masih mencukupi. Nilai minimum saldo konsolidasi pooling ditetapkan sebagai 5% dari total saldo positif rekening pooling.

On March 20, 2018, SIB signed a notional pooling agreement with PT (Bank Mandiri) Persero Tbk. With this agreement, SIB is able to withdraw cash from the participant’s account. Withdrawal can be performed as long as the deficit limit amounting to Rp 200.000 and the pooling account consolidated balance is still sufficient. The minimum balance of consolidated pooling account is determined as 5% from total positive balance of the pooling account.

Tingkat bunga yang dikenakan untuk fasilitas notional pooling adalah sebesar 2% di atas beban bunga LPS. SIB juga dikenakan biaya tetap sebesar Rp 5.000 per bulan atas fasilitas ini. Fasilitas ini berlaku selama 1 tahun sejak perjanjiannya ditandatangani oleh para pihak sampai dengan 19 Maret 2019.

The interest rate for notional pooling facility is 2% above LPS interest rate.SIB is also charged a fixed fee amounted to Rp 5,000 per month for this facility. This facility valid for 1 year since it was signed until March 19, 2019.

Pada tanggal 31 Desember 2018, saldo dari fasilitas pinjaman ini adalah Rp 503.437.000.

As of December 31, 2018, the total outstanding loan from this facility amounted to Rp 503,437,000.

10. Sinergi Mitra Investama (SMI) 10. Sinergi Mitra Investama (SMI) Fasilitas Jasa Notional Pooling Notional Pooling Service Pada tanggal 20 Maret 2018, SMI melakukan penandatanganan perjanjian pelayanan jasa Notional Pooling dengan Persero, yang difasilitasi oleh P.T. Bank Mandiri (Persero) Tbk, dengan mendapatkan jumlah kredit maksimum sebesar Rp150.000.000. Dengan adanya perjanjian tersebut SMI dapat mengajukan pinjaman KMK jangka pendek ke Perseroan melalui P.T. Bank Mandiri (Persero) Tbk, dengan tingkat suku bunga (LPS+ 2%). Sehingga, saldo hutang bank pada tanggal 31 Desember 2018 dan 2017 menjadi sebesar Rp45.000.000 dan RpNihil.

On March 20, 2018, SMI signed a Notional Pooling service agreement with the Company, facilitated by P.T. Bank Mandiri (Persero) Tbk, by obtaining a maximum credit amount of Rp150,000,000. With the agreement can submit a short-term KMK loan to the Company through P.T. Bank Mandiri (Persero) Tbk, with an interest rate (LPS + 2%). So, balance the bank loan on December 31, 2018 and 2017 amounting Rp45,000,000 and RpNil, respectively.







(Continued)

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PT Bank Negara Indonesia (Persero) Tbk PT Bank Negara Indonesia (Persero) Tbk 1. Perseroan 1. The Company

Pada 17 April 2012, Perseroan menandatangani perjanjian pemberian fasilitas pembukaan Letter of Credit (LC) dengan PT Bank Negara Indonesia (Persero) Tbk dengan maksimum fasilitas sebesar USD25.000.000. Fasilitas ini diperpanjang sampai dengan tanggal 16 April 2019. Perseroan dikenakan bunga sebagaimana yang diatur di dalam perjanjian.

On April 17, 2012, the Company entered into an agreement for supply and management for Letter of Credit (LC) with PT Bank Negara Indonesia (Persero) Tbk for a maximum facility of USD25,000,000. There facility has been recently extended until April 16, 2019. The Company is being charged with an interest as stipulated in the agreement.

Pada tanggal 31 Desember 2018 dan 2017, tidak terdapat LC yang telah diterbitkan dan masih berjalan. Tidak terdapat fasilitas LC yang telah jatuh tempo dan masih belum dibayar pada tanggal 31 Desember 2018 dan 2017.

As of December 31, 2018 and 2017, there are no outstanding LC amounts under this facility. There are no amounts under this facility, which are due and unpaid as of December 31, 2018 and 2017.

Fasilitas ini mensyaratkan Perseroan untuk memelihara rasio keuangan tertentu dan kewajiban untuk melapor antara lain jika adanya perubahan modal dan susunan pengurus, melakukan investasi saham baru, memperoleh fasilitas kredit dan/atau pinjaman dari pihak lain dan melakukan pembayaran dividen. Pada tanggal 31 Desember 2018 dan 2017, Perseroan telah memenuhi semua rasio keuangan yang dipersyaratkan.

This facility requires the Company to maintain certain financial ratios and requires the Company to report the changes in share capital and management structure, any new investment in shares, new loan facility and/or borrowing and dividends payment. As of December 31, 2018 and 2017, the Company is in compliance with all of the financial covenants.

Pada tanggal 17 April 2012, Perseroan menandatangani perjanjian fasilitas valuta asing dengan PT Bank Negara Indonesia (Persero) Tbk dengan nilai fasilitas maksimum sebesar setara USD10.000.000, dengan jangka waktu sampai dengan 16 April 2013. Fasilitas tersebut telah diperpanjang sampai dengan tanggal 16 April 2019 dimana diberikan tambahan fasilitas derivatif dengan nilai fasilitas maksimum sebesar setara USD134.705.882. Pada tanggal 31 Desember 2018 dan 2017, fasilitas ini belum digunakan.

On April 17, 2012, the Company entered into a forex line facility agreement with PT Bank Negara Indonesia (Persero) Tbk for a maximum facility amount of USD10,000,000, due on April 16, 2013. The facility has been extended up to April 16, 2019 to include derivative line facility with maximum forex and derivative facility amount of USD134,705,882. As of December 31, 2018 and 2017, the Company did not use this facility.

2. PT Semen Padang (SP) dan Entitas Anak 2. PT Semen Padang (SP) and its Subsidiary

Berdasarkan Surat Perjanjian Kredit No. 2012-130/KMK pada tanggal 28 Agustus 2012, entitas anak SP, PT Sepatim Batamtama (SB), memperoleh fasilitas kredit modal kerja dari PT Bank Negara Indonesia (Persero) Tbk dengan jumlah plafond maksimum sebesar Rp4.600.000 dengan tingkat bunga 13,50% per tahun. Fasilitas tersebut diberikan selama jangka waktu 12 bulan. Fasilitas ini terakhir kali diperpanjang kembali sampai dengan tanggal 26 Agustus 2018. Fasilitas perjanjian bank ini secara fidusia dijamin dengan persediaan semen dan suku cadang, piutang usaha dengan kriteria umur dibawah 60 hari, kas dan setara kas yang dibatasi penggunaannya (Catatan 5), tanah, bangunan, kendaraan, mesin serta tagihan atas pengerjaan cooper slag.

Based on the Letter of Credit Agreement for Working Capital No. 2012-130/KMK on August 28, 2012, subsidiary of SP, PT Sepatim Batamtama (SB), obtained working capital loan from PT Bank Negara Indonesia (Persero) Tbk with maximum facility of Rp4,600,000 with an interest rate of 13.50% per annum. This facility was granted for 12 months and was most recently extended until August 26, 2018. These securities are secured by the fiduciary of cement and sparepart inventories, accounts receivable with age below than 60 days, restricted cash and cash equivalents (Note 5), land, building, vehicle, machine and bill for the working cooper slag.







(Continued)

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PT Bank Negara Indonesia (Persero) Tbk PT Bank Negara Indonesia (Persero) Tbk 1. Perseroan 1. The Company

Pada 17 April 2012, Perseroan menandatangani perjanjian pemberian fasilitas pembukaan Letter of Credit (LC) dengan PT Bank Negara Indonesia (Persero) Tbk dengan maksimum fasilitas sebesar USD25.000.000. Fasilitas ini diperpanjang sampai dengan tanggal 16 April 2019. Perseroan dikenakan bunga sebagaimana yang diatur di dalam perjanjian.

On April 17, 2012, the Company entered into an agreement for supply and management for Letter of Credit (LC) with PT Bank Negara Indonesia (Persero) Tbk for a maximum facility of USD25,000,000. There facility has been recently extended until April 16, 2019. The Company is being charged with an interest as stipulated in the agreement.

Pada tanggal 31 Desember 2018 dan 2017, tidak terdapat LC yang telah diterbitkan dan masih berjalan. Tidak terdapat fasilitas LC yang telah jatuh tempo dan masih belum dibayar pada tanggal 31 Desember 2018 dan 2017.

As of December 31, 2018 and 2017, there are no outstanding LC amounts under this facility. There are no amounts under this facility, which are due and unpaid as of December 31, 2018 and 2017.

Fasilitas ini mensyaratkan Perseroan untuk memelihara rasio keuangan tertentu dan kewajiban untuk melapor antara lain jika adanya perubahan modal dan susunan pengurus, melakukan investasi saham baru, memperoleh fasilitas kredit dan/atau pinjaman dari pihak lain dan melakukan pembayaran dividen. Pada tanggal 31 Desember 2018 dan 2017, Perseroan telah memenuhi semua rasio keuangan yang dipersyaratkan.

This facility requires the Company to maintain certain financial ratios and requires the Company to report the changes in share capital and management structure, any new investment in shares, new loan facility and/or borrowing and dividends payment. As of December 31, 2018 and 2017, the Company is in compliance with all of the financial covenants.

Pada tanggal 17 April 2012, Perseroan menandatangani perjanjian fasilitas valuta asing dengan PT Bank Negara Indonesia (Persero) Tbk dengan nilai fasilitas maksimum sebesar setara USD10.000.000, dengan jangka waktu sampai dengan 16 April 2013. Fasilitas tersebut telah diperpanjang sampai dengan tanggal 16 April 2019 dimana diberikan tambahan fasilitas derivatif dengan nilai fasilitas maksimum sebesar setara USD134.705.882. Pada tanggal 31 Desember 2018 dan 2017, fasilitas ini belum digunakan.

On April 17, 2012, the Company entered into a forex line facility agreement with PT Bank Negara Indonesia (Persero) Tbk for a maximum facility amount of USD10,000,000, due on April 16, 2013. The facility has been extended up to April 16, 2019 to include derivative line facility with maximum forex and derivative facility amount of USD134,705,882. As of December 31, 2018 and 2017, the Company did not use this facility.


Berdasarkan Surat Perjanjian Kredit No. 2012-130/KMK pada tanggal 28 Agustus 2012, entitas anak SP, PT Sepatim Batamtama (SB), memperoleh fasilitas kredit modal kerja dari PT Bank Negara Indonesia (Persero) Tbk dengan jumlah plafond maksimum sebesar Rp4.600.000 dengan tingkat bunga 13,50% per tahun. Fasilitas tersebut diberikan selama jangka waktu 12 bulan. Fasilitas ini terakhir kali diperpanjang kembali sampai dengan tanggal 26 Agustus 2018. Fasilitas perjanjian bank ini secara fidusia dijamin dengan persediaan semen dan suku cadang, piutang usaha dengan kriteria umur dibawah 60 hari, kas dan setara kas yang dibatasi penggunaannya (Catatan 5), tanah, bangunan, kendaraan, mesin serta tagihan atas pengerjaan cooper slag.

Based on the Letter of Credit Agreement for Working Capital No. 2012-130/KMK on August 28, 2012, subsidiary of SP, PT Sepatim Batamtama (SB), obtained working capital loan from PT Bank Negara Indonesia (Persero) Tbk with maximum facility of Rp4,600,000 with an interest rate of 13.50% per annum. This facility was granted for 12 months and was most recently extended until August 26, 2018. These securities are secured by the fiduciary of cement and sparepart inventories, accounts receivable with age below than 60 days, restricted cash and cash equivalents (Note 5), land, building, vehicle, machine and bill for the working cooper slag.





(Continued)

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Utang bank fasilitas kredit modal kerja pada 31 Desember 2018 dan 2017 adalah sebesar RpNihil dan Rp600.000.

Bank loans from working capital loan facility as of December 31, 2018 and 2017, amounted to RpNil and Rp600,000, respectively.

Pada tahun 2007, SP menandatangani perjanjian berupa fasilitas pembukaan Letter of Credit (LC) dan fasilitas Foreign Exchange Line dengan PT Bank Negara Indonesia (Persero) Tbk dengan nilai maksimum fasilitas masing-masing sebesar USD8.500.000 dan USD5.000.000.

In 2007, SP entered into an agreement for letters of credit (LC) and foreign exchange line facilities with PT Bank Negara Indonesia (Persero) Tbk with maximum facilities of USD8,500,000 and USD5,000,000, respectively.

Fasilitas ini terakhir kali diperpanjang kembali hingga tanggal 16 April 2019 dengan nilai maksimum fasilitas masing-masing sebesar USD30.000.000 dan USD40.000.000. Fasilitas ini dijamin secara fidusia dengan barang, bahan baku, bahan pembantu dan suku cadang yang diimpor/dibeli dengan fasilitas ini.

The facilities were most recently extended until April 16, 2019 with maximum facilities amount of USD30,000,000 and USD40,000,000, respectively. These facilities are secured by the fiduciary transfer of goods, raw materials, supporting materials and spareparts imported/ purchased utilizing these facilities.

Atas setiap pembukaan letter of credit, SP diwajibkan untuk menyetor margin deposit sebesar 10% dari nilai nominal letter of credit yang diterbitkan.

SP is required to make margin deposits of 10% of the nominal amounts of letters of credit issued under such facilities.

Fasilitas ini mensyaratkan SP untuk memelihara rasio keuangan tertentu dan kewajiban melapor apabila terjadi perubahan susunan Komisaris dan Direksi, modal dan susunan pemegang saham dan melakukan pembayaran dividen, investasi baru, fasilitias kredit atau pinjaman dari pihak lain serta penyampaian laporan keuangan secara berkala. Pada tahun 2018 dan 2017, SP dapat memenuhi rasio keuangan yang disyaratkan dalam perjanjian. Fasilitas ini dijamin dengan persediaan senilai Rp138.000.000.

These facilities require SP to maintain certain financial ratios and to report changes in the Board of Commissioners and Directors, share capital and shareholders, and payments of dividends, new investment, credit facilities or loans obtained from other parties and submission of financial statements periodically. In 2018 and 2017, SP fulfilled the required financial ratios as mentioned in the loan agreement. These facilities are secured by inventory amounting to Rp138,000,000.

Nilai LC yang telah diterbitkan dan masih berjalan berdasarkan fasilitas ini adalah EUR625.634, USD331.945 dan Rp2.059.750 pada tahun 2018 dan EUR2.990.612, USD94.823 dan Rp85.507.500 pada tahun 2017. Tidak terdapat fasilitas LC yang telah jatuh tempo dan belum dibayar pada tanggal 31 Desember 2018.

The outstanding LC amounts under this facility were EUR625,634 USD331,945 and Rp2,059,750 in 2018 and EUR2,990,612, USD94,823 and Rp85,507,500 in 2017. There are no amounts under this facility which are due and unpaid as of December 31, 2018.

Berdasarkan Surat Perjanjian Kredit No. BIN/3.2/073/R pada tanggal 3 Mei 2017, entitas anak SP, memperoleh fasilitas kredit modal kerja dari BNI dengan jumlah plafond maksimum sebesar Rp25.000.000 ribu dengan tingkat bunga 11,00% per tahun. Fasilitas ini terakhir kali diperpanjang kembali selama 12 bulan atau sampai dengan 16 April 2019. Fasilitas perjanjian kredit modal kerja dan kredit investasi jangka panjang dengan bank ini secara fidusia dijamin piutang usaha, kendaraan, bangunan dan sarana prasarana, mesin dan peralatan dengan jumlah senilai Rp147.962.210.

Based on the Letter of Credit Agreement for working capital No. BIN/3.2/073/R on May 3, 2017, a subsidiary of SP, obtained working capital loan from BNI with maximum facility of Rp25,000,000 thousand with an interest rate of 11,00% per annum. This facility is granted for 12 months and was most recently extended to April 16, 2019. The working capital loan and long-term investment credit are secured by the fiduciary account receivable, vehicles, buildings and improvements, machine and equipments with total amounting to Rp147,962,210.







(Continued)

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Saldo utang bank fasilitas kredit modal kerja pada tanggal 31 Desember 2018 dan 2017 adalah sebesar Rp14.636.266 dan Rp761.539.

The outstanding balance of working capital loan as of December 31, 2018 and 2017 amounted to Rp14,636,266, and Rp761,539.

PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Rakyat Indonesia (Persero) Tbk 1. PT Semen Padang (SP) 1. PT Semen Padang (SP)

Pada tanggal 29 Mei 2013, SP menandatangani perjanjian berupa pemberian fasilitas Non Cash Loan berupa Penangguhan Jaminan Impor (LC/SKBDN) dan Kredit Modal Kerja Impor dengan PT Bank Rakyat Indonesia (Persero) Tbk dengan nilai maksimum untuk masing-masing fasilitas sebesar USD15.000.000. Fasilitas ini terakhir kali diperpanjang hingga tanggal 29 Mei 2018 dan tidak diperpanjang kembali. Fasilitas ini dijamin dengan barang atau bahan baku, bahan pendukung, dan suku cadang atau barang lainnya yang diimpor.

On May 29, 2013, SP entered into an agreement for Non Cash Loan facilities such as Penangguhan Jaminan Impor and Kredit Modal Kerja Impor with PT Bank Rakyat Indonesia (Persero) Tbk involving maximum of each facilities amounting to USD15,000,000. These facilities were most recently extended to May 29, 2018 and were not extended. This facilities are secured by raw materials, supporting materials and spareparts or purchased utilizing these facilities.

Fasilitas ini mensyaratkan SP untuk memberitahukan apabila terjadi perubahan susunan pengurus, anggaran dasar, dan modal saham, menyampaikan jika ada tindakan penyertaan saham atau peningkatan nilai penyertaan, merger, akuisisi, go public, dan penjualan aset yang melebihi Rp200.000.000.

These facilities require SP to report changes in management structure, constitution and share capital, report any investment in shares or increase the value of investment, mergers, acquisition, going public, and selling assets of more than Rp200,000,000.

Pada tanggal 31 Desember 2018 dan 2017, nilai LC yang telah diterbitkan dan masih berjalan berdasarkan fasilitas ini adalah sebesar masing-masing EUR55.500. Tidak terdapat fasilitas LC yang telah jatuh tempo dan belum dibayar pada tanggal 31 Desember 2018 dan 2017.

As of December 31, 2018 and 2017, the outstanding LC under this facility amounted to EUR55,500. There is no amount under this facility, which is due and unpaid as of December 31, 2018 and 2017.

2. PT Semen Indonesia Logistik (SIL) dan

Entitas Anak 2. PT Semen Indonesia Logistik (SIL) and its

Subsidiaries

SIL mendapatkan fasilitas Surat Kredit Berdokumen Dalam Negeri (SKBDN) akibat dari transaksi operasional perdagangan semen dengan VUB. Saldo fasilitas SKBDN pada 31 Desember 2018 dan 2017 masing-masing sebesar RpNihil dan Rp8.352.779.

SIL obtained Import Letter of Credit Facility (SKBDN) as a result of cement trading with VUB. As of December 31, 2018 and 2017, outstanding balance of SKBDN facility amounted to RpNil and Rp8,352,779, respectively.

PT Varia Usaha Lintas Segara (VULS), entitas anak SIL, memperoleh fasilitas kredit modal kerja dari PT Bank Rakyat Indonesia (Persero) Tbk yang telah beberapa kali diperpanjang sampai dengan 16 Agustus 2019 dengan Akta No 49 tanggal 21 Oktober 2016. Fasilitas ini memiliki bunga 12,5% per tahun dan dijamin dengan piutang usaha sejumlah 35.000.000 dan akta hipotek kapal dengan nilai penjaminan Rp9.463.000.

PT Varia Usaha Lintas Segara (VULS), subsidiary SIL, obtained working capital credit facility from PT Bank Rakyat Indonesia (Persero) Tbk which has been extended several times up to August 16, 2019 with Deed No 49 dated October 21, 2016. The facility bears interest of 12.5% per annum and secured with trade receivables totaling to Rp35,000,000 and ship mortgage deed with guarantee value of Rp9,463,000.

Fasilitas ini mensyaratkan VULS untuk memelihara rasio keuangan tertentu dan memperoleh persetujuan bank jika VULS menerima pinjaman baru dari bank atau lembaga keuangan lainnya, mengikatkan diri sebagai penjamin utang atau menjaminkan harta kekayaannya kepada pihak lain.

This facility requires VULS to maintain certain financial ratio and obtain bank approval if VULS receive new loans from bank or other financial institutions, grants guarantees or pledges its assets to any other parties.







(Continued)

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Saldo utang bank fasilitas kredit modal kerja pada tanggal 31 Desember 2018 dan 2017 adalah sebesar Rp14.636.266 dan Rp761.539.

The outstanding balance of working capital loan as of December 31, 2018 and 2017 amounted to Rp14,636,266, and Rp761,539.

PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Rakyat Indonesia (Persero) Tbk 1. PT Semen Padang (SP) 1. PT Semen Padang (SP)

Pada tanggal 29 Mei 2013, SP menandatangani perjanjian berupa pemberian fasilitas Non Cash Loan berupa Penangguhan Jaminan Impor (LC/SKBDN) dan Kredit Modal Kerja Impor dengan PT Bank Rakyat Indonesia (Persero) Tbk dengan nilai maksimum untuk masing-masing fasilitas sebesar USD15.000.000. Fasilitas ini terakhir kali diperpanjang hingga tanggal 29 Mei 2018 dan tidak diperpanjang kembali. Fasilitas ini dijamin dengan barang atau bahan baku, bahan pendukung, dan suku cadang atau barang lainnya yang diimpor.

On May 29, 2013, SP entered into an agreement for Non Cash Loan facilities such as Penangguhan Jaminan Impor and Kredit Modal Kerja Impor with PT Bank Rakyat Indonesia (Persero) Tbk involving maximum of each facilities amounting to USD15,000,000. These facilities were most recently extended to May 29, 2018 and were not extended. This facilities are secured by raw materials, supporting materials and spareparts or purchased utilizing these facilities.

Fasilitas ini mensyaratkan SP untuk memberitahukan apabila terjadi perubahan susunan pengurus, anggaran dasar, dan modal saham, menyampaikan jika ada tindakan penyertaan saham atau peningkatan nilai penyertaan, merger, akuisisi, go public, dan penjualan aset yang melebihi Rp200.000.000.

These facilities require SP to report changes in management structure, constitution and share capital, report any investment in shares or increase the value of investment, mergers, acquisition, going public, and selling assets of more than Rp200,000,000.

Pada tanggal 31 Desember 2018 dan 2017, nilai LC yang telah diterbitkan dan masih berjalan berdasarkan fasilitas ini adalah sebesar masing-masing EUR55.500. Tidak terdapat fasilitas LC yang telah jatuh tempo dan belum dibayar pada tanggal 31 Desember 2018 dan 2017.

As of December 31, 2018 and 2017, the outstanding LC under this facility amounted to EUR55,500. There is no amount under this facility, which is due and unpaid as of December 31, 2018 and 2017.

2. PT Semen Indonesia Logistik (SIL) dan

Entitas Anak 2. PT Semen Indonesia Logistik (SIL) and its

Subsidiaries

SIL mendapatkan fasilitas Surat Kredit Berdokumen Dalam Negeri (SKBDN) akibat dari transaksi operasional perdagangan semen dengan VUB. Saldo fasilitas SKBDN pada 31 Desember 2018 dan 2017 masing-masing sebesar RpNihil dan Rp8.352.779.

SIL obtained Import Letter of Credit Facility (SKBDN) as a result of cement trading with VUB. As of December 31, 2018 and 2017, outstanding balance of SKBDN facility amounted to RpNil and Rp8,352,779, respectively.

PT Varia Usaha Lintas Segara (VULS), entitas anak SIL, memperoleh fasilitas kredit modal kerja dari PT Bank Rakyat Indonesia (Persero) Tbk yang telah beberapa kali diperpanjang sampai dengan 16 Agustus 2019 dengan Akta No 49 tanggal 21 Oktober 2016. Fasilitas ini memiliki bunga 12,5% per tahun dan dijamin dengan piutang usaha sejumlah 35.000.000 dan akta hipotek kapal dengan nilai penjaminan Rp9.463.000.

PT Varia Usaha Lintas Segara (VULS), subsidiary SIL, obtained working capital credit facility from PT Bank Rakyat Indonesia (Persero) Tbk which has been extended several times up to August 16, 2019 with Deed No 49 dated October 21, 2016. The facility bears interest of 12.5% per annum and secured with trade receivables totaling to Rp35,000,000 and ship mortgage deed with guarantee value of Rp9,463,000.

Fasilitas ini mensyaratkan VULS untuk memelihara rasio keuangan tertentu dan memperoleh persetujuan bank jika VULS menerima pinjaman baru dari bank atau lembaga keuangan lainnya, mengikatkan diri sebagai penjamin utang atau menjaminkan harta kekayaannya kepada pihak lain.

This facility requires VULS to maintain certain financial ratio and obtain bank approval if VULS receive new loans from bank or other financial institutions, grants guarantees or pledges its assets to any other parties.





(Continued)

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Jumlah utang bank pada tanggal 31 Desember 2018 dan 2017 yang terkait dengan fasilitas ini adalah sejumlah RpNihil dan Rp4.834.912.

The outstanding loan from this facility as of December 31, 2018 and 2017 amounted to RpNil and Rp4,834,912, respectively.

Ho Chi Minh City Development Joint-Stock Commercial Bank

Ho Chi Minh City Development Joint-Stock Commercial Bank

Pada tanggal 24 April 2018, TLCC menandatangani perjanjian Kredit Modal Kerja dengan HD Bank, maksimum fasilitas kredit perjanjian ini adalah sejumlah VND70 miliar. Fasilitas ini dijamin dengan persediaan dan ini berlaku selama 12 bulan dengan tingkat suku bunga sesuai tingkat suku bunga 6,4%.

On April 24, 2018, TLCC signed Working Capital Credit Agreement with HB Bank for a maximum credit facility amounting to VND70 billion. This facility is secured by inventory and is valid for 12 months and bears an interest rate of 6.4% per annum.

Pada tanggal 31 Desember 2018 saldo pinjaman jangka pendek sebesar VND55.969.449 atau Rp34.980.904.

As of December 31, 2018, balance of short-term borrowing amounting to VND55,969,449 or Rp34,980,904.

Vietnam Prosperity Joint Stock Commercial Bank

Vietnam Prosperity Joint Stock Commercial Bank

Pada tanggal 14 Maret 2017, TLCC menandatangani perjanjian Kredit Modal Kerja dengan Vietnam Prosperity Joint Stock Commercial Bank, maksimum fasilitas kredit perjanjian ini adalah sejumlah VND70 miliar. Fasilitas ini dijamin dengan persediaan dan ini berlaku selama 12 bulan dengan tingkat suku bunga sesuai tingkat suku bunga 5,8%.

On March 14, 2017, TLCC signed Working Capital Credit Agreement with Vietnam Prosperity Joint Stock Commercial Bank for a maximum credit facility amounting to VND70 billion. This facility is secured by inventory and is valid for 12 months and bears an interest rate of 5.8% per annum.

Pada tanggal 31 Desember 2018 saldo pinjaman jangka pendek sebesar VND29.508.018 atau Rp18.442.511.

As of December 31, 2018 balanc of short-term borrowing amounting to VND29,508,018 or Rp18,442,511.

Sapa Vietnam Joint Stock Company Sapa Vietnam Joint Stock Company

TLCC menandatangani tiga (3) perjanjian pinjaman dengan Sapa Vietnam JSC, dengan pokok awal pinjaman sebesar VND21 miliar, pada tanggal 27 September 2012 sebesar VND8 miliar, tanggal 31 Agustus 2012 sebesar VND5,5 miliar, dan pada tanggal 29 Desember 2012 sebesar VND7,5 miliar. Pinjaman ini dibayar setiap tiga bulan sejak tanggal pencairan. Tingkat suku bunga berkisar antara 12% sampai dengan 13% per tahun. Pada tahun 2014, seluruh pokok pinjaman telah dilunasi.

TLCC entered into three (3) loan agreements for an original principal of VND21 billion with Sapa Vietnam JSC, on September 27, August 31, and December 29, 2012 amounting to VND8 billion, VND5.5 billion, and VND7.5 billion, respectively. The loans are repaid every three months from drawdown date. Interest rate is ranging from 12% to 13% per annum. In 2014, all of loan principal was settled.

Pada tanggal 31 Desember 2018 dan 2017 jumlah pinjaman jangka pendek berupa bunga pinjaman sebesar VND6.222.444 atau Rp3.889,028, dan VND6.222.444 atau Rp3.702.353

As of December 31, 2018 and 2017, the total short-term borrowing consists of interest due amounting to VND6,222,444 or 3,889,028, and VND6,222,444 or Rp3,702,353.

TLCC dalam proses negosiasi dengan Sapa Vietnam JSC untuk memperpanjang jangka waktu pembayaran bunga pinjaman.

TLCC is in negotiation with Sapa Vietnam JSC for the extension of repayment of overdue loan interest.







(Continued)

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b. Jangka panjang b. Long-term

2018 2017

Pinjaman bank: Bank loans:Pihak ketiga: Third parties:

PT Bank ICBC Indonesia 85.765.994 98.234.920 PT Bank ICBC IndonesiaPT Bank CIMB Niaga Tbk 11.008.200 15.726.000 PT Bank CIMB Niaga TbkSurat Utang Jangka Menengah - 64.929.028 Medium Term Notes (MTN)PT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Jaw a Timur, Tbk - 17.558.858 Jaw a Timur, TbkPT Bank Muamalat Indonesia Tbk - 7.730.508 PT Bank Muamalat Indonesia TbkPT Bank Central Asia Tbk - 6.345.768 PT Bank Central Asia Tbk


Pihak berelasi Related parties:PT Bank Negara Indonesia PT Bank Negara Indonesia

(Persero) Tbk 4.564.481.300 318.586.919 (Persero) TbkPT Bank Mandiri (Persero) Tbk 291.168.105 3.363.286.345 PT Bank Mandiri (Persero) TbkPT Bank Rakyat Indonesia PT Bank Rakyat Indonesia (Persero) Tbk 3.908.000 22.004.000 (Persero) TbkBank Sindikasi Syndicated Bank

PT Bank Mandiri (Persero) Tbk - 1.415.702.281 PT Bank Mandiri (Persero) Tbk

Subjumlah 4.859.557.405 5.119.579.545 Subtotal

Jumlah 4.956.331.599 5.330.104.627 TotalDikurangi bagian yang akan

jatuh tempo dalam satu tahun (83.738.982) (602.177.467) Less: current portion

Biaya transaksi yang belum diamortisasi (453.951) (12.806.596) Unamortized transaction costs

Bagian jangka panjang 4.872.138.666 4.715.120.564 Long-term liabilities



2018 2017

PT Bank Mandiri (Persero) Tbk 3.066.331.953 848.080 PT Bank Mandiri (Persero) TbkBank Sindikasi - PT Bank Bank Sindikasi - PT Bank

Mandiri Persero) Tbk 1.415.702.281 3.190.591.970 Mandiri Persero) TbkSurat Utang Jangka Menengah 64.929.028 - Surat Utang Jangka MenengahPT Bank Rakyat Indonesia PT Bank Rakyat Indonesia

(Persero) Tbk 18.096.000 13.100.000 (Persero) TbkPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Jaw a Timur, Tbk 17.558.857 9.922.470 Jaw a Timur, TbkPT Bank ICBC Indonesia 12.468.016 3.044.218 PT Bank ICBC IndonesiaPT Bank Muamalat Indonesia Tbk 7.730.508 - PT Bank Muamalat Indonesia TbkPT Bank Negara Indonesia PT Bank Negara Indonesia

(Persero) Tbk 25.945.937 8.224.512 (Persero) TbkPT Bank Central Asia Tbk 6.345.768 7.961.732 PT Bank Central Asia TbkStandard Chartered Bank - 917.282.333 Standard Chartered BankPT Bank CIMB Niaga Tbk - 6.637.950 PT Bank CIMB Niaga TbkPT Bank DBS Indonesia - 791.842 PT Bank DBS IndonesiaPT Bank DKI - 135.000 PT Bank DKI

Jumlah 4.635.108.348 4.158.540.107 Total







(Continued)

- 83 -

b. Jangka panjang b. Long-term

2018 2017

Pinjaman bank: Bank loans:Pihak ketiga: Third parties:

PT Bank ICBC Indonesia 85.765.994 98.234.920 PT Bank ICBC IndonesiaPT Bank CIMB Niaga Tbk 11.008.200 15.726.000 PT Bank CIMB Niaga TbkSurat Utang Jangka Menengah - 64.929.028 Medium Term Notes (MTN)PT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Jaw a Timur, Tbk - 17.558.858 Jaw a Timur, TbkPT Bank Muamalat Indonesia Tbk - 7.730.508 PT Bank Muamalat Indonesia TbkPT Bank Central Asia Tbk - 6.345.768 PT Bank Central Asia Tbk


Pihak berelasi Related parties:PT Bank Negara Indonesia PT Bank Negara Indonesia

(Persero) Tbk 4.564.481.300 318.586.919 (Persero) TbkPT Bank Mandiri (Persero) Tbk 291.168.105 3.363.286.345 PT Bank Mandiri (Persero) TbkPT Bank Rakyat Indonesia PT Bank Rakyat Indonesia (Persero) Tbk 3.908.000 22.004.000 (Persero) TbkBank Sindikasi Syndicated Bank

PT Bank Mandiri (Persero) Tbk - 1.415.702.281 PT Bank Mandiri (Persero) Tbk


Jumlah 4.956.331.599 5.330.104.627 TotalDikurangi bagian yang akan

jatuh tempo dalam satu tahun (83.738.982) (602.177.467) Less: current portion

Biaya transaksi yang belum diamortisasi (453.951) (12.806.596) Unamortized transaction costs

Bagian jangka panjang 4.872.138.666 4.715.120.564 Long-term liabilities



2018 2017

PT Bank Mandiri (Persero) Tbk 3.066.331.953 848.080 PT Bank Mandiri (Persero) TbkBank Sindikasi - PT Bank Bank Sindikasi - PT Bank

Mandiri Persero) Tbk 1.415.702.281 3.190.591.970 Mandiri Persero) TbkSurat Utang Jangka Menengah 64.929.028 - Surat Utang Jangka MenengahPT Bank Rakyat Indonesia PT Bank Rakyat Indonesia

(Persero) Tbk 18.096.000 13.100.000 (Persero) TbkPT Bank Pembangunan Daerah PT Bank Pembangunan Daerah

Jaw a Timur, Tbk 17.558.857 9.922.470 Jaw a Timur, TbkPT Bank ICBC Indonesia 12.468.016 3.044.218 PT Bank ICBC IndonesiaPT Bank Muamalat Indonesia Tbk 7.730.508 - PT Bank Muamalat Indonesia TbkPT Bank Negara Indonesia PT Bank Negara Indonesia

(Persero) Tbk 25.945.937 8.224.512 (Persero) TbkPT Bank Central Asia Tbk 6.345.768 7.961.732 PT Bank Central Asia TbkStandard Chartered Bank - 917.282.333 Standard Chartered BankPT Bank CIMB Niaga Tbk - 6.637.950 PT Bank CIMB Niaga TbkPT Bank DBS Indonesia - 791.842 PT Bank DBS IndonesiaPT Bank DKI - 135.000 PT Bank DKI

Jumlah 4.635.108.348 4.158.540.107 Total





(Continued)

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PT Bank ICBC Indonesia PT Bank ICBC Indonesia PT Semen Indonesia Beton (SIB) PT Semen Indonesia Beton (SIB) Pada tanggal 21 Oktober 2016 berdasarkan Akta Notaris No 89 oleh Sitaresmi Puspadewi Subianto S.H, Notaris di Jakarta, SIB memperoleh fasilitas Pinjaman Cicilan Tetap (PTI) dengan maksimum fasilitas kredit sejumlah Rp100.000.000 dengan ketersediaan fasilitas selama 6 bulan. Perjanjian ini berlangsung untuk jangka waktu 72 bulan sejak tanggal perjanjian.

On October 21, 2016, based on Notarial Deed No. 89 by Sitaresmi Puspadewi Subianto S.H, Notary in Jakarta, SIB obtained credit facilities Fixed Loan On installment (PTI) with maximum credit facility of Rp100,000,000 with the availability period of 6 months. The agreement has maturity period of 72 months from the date of the agreement.

Fasilitas kredit ini digunakan untuk pembiayaan pembelian alat berat, kendaraan, mesin dan peralatan pendukung terkait dengan batching plant. Tingkat suku bunga yang diterapkan sebesar 9,90% p.a dan dapat berubah sewaktu-waktu sesuai dengan ketentuan yang berlaku.

This credit facility is for financing purchases of heavy equipment, vehicles, machinery, and ancillary equipment for the acquisition of batching plants. The interest rate is 9.90% per annum and can be changed any time in accordance with applicable regulations.

Jaminan yang diberikan SIB atas pinjaman ini adalah batching plant, kendaraan dan alat berat yang baru akan dibeli dengan nilai minimum 125% dari limit PTI.

The collaterals for this facility are batching plants, vehicles, and new heavy equipment which will be purchased with minimum value of 125% of the limit PTI.

Fasilitas ini mensyaratkan SIB untuk memberitahukan kepada bank jika ada tambahan pinjaman dari pihak ketiga, dan pembayaran dividen. Selain itu, SIB juga harus mendapatkan persetujuan dari bank jika memberikan pinjaman (diluar kegiatan usaha normal) atau memberikan jaminan kepada pihak lain. Pada tanggal 31 Desember 2018 dan 2017, SIB telah memenuhi rasio keuangan yang telah diatur dalam perjanjian kredit.

This facility requires SIB to notify the bank if there are additional loans from third parties and dividend payment. In addition, SIB has to obtain approval from the bank if SIB provides loans (outside of normal course business) or provides guarantees to other parties. As of December 31, 2018 and 2017, SIB has fulfilled the financial ratios required in the credit agreement.

Utang bank pada tanggal 31 Desember 2018 dan 2017 terkait dengan fasilitas ini masing-masing sebesar Rp85.765.994 dan Rp93.234.920.

Outstanding bank loan as of December 31, 2018 and 2017 related to this facility amounted to Rp85,765,994 and Rp93,234,920, respectively.

Berdasarkan perjanjian dengan PT Bank ICBC Indonesia pada tanggal 21 Oktober 2016 disepakati bahwa fasilitas kredit PTDA (Pinjaman Tetap on Demand A) dan PTI (Pinjaman Tetap on Installment) dijamin secara fidusia dengan persediaan, piutang dagang dan klaim yang dimiliki sampai dengan nilai penjaminan sampai dengan sebesar Rp125.000.000.

Based on agreement with PT Bank ICBC Indonesia dated October 21, 2016 both parties agreed the facilities of PTDA (Fixed Loan on Demand A) and PTI (Fixed Loan on Installment) were secured by the fiduciary on inventories, trade accounts receivable and others claims with guarantee value up to Rp125,000,000.

PT Bank CIMB Niaga Tbk PT Bank CIMB Niaga Tbk PT Industri Kemasan Semen Gresik (IKSG) PT Industri Kemasan Semen Gresik (IKSG) Pada tanggal 28 Januari 2016, IKSG memperoleh fasilitas kredit investasi untuk pembelian 1 line mesin jenis tuber dan bottomer dari PT Bank CIMB Niaga Tbk dengan jumlah maksimum sebesar Rp25.200.000 dengan jangka waktu 5 tahun atau 60 kali angsuran dan akan jatuh tempo pada tanggal 13 April 2021. Tingkat suku bunga efektif pinjaman untuk tahun 2018 dan 2017 adalah 10,5% dan 10,25% per tahun.

On January 28, 2016, IKSG obtained an investment credit facility from PT Bank CIMB Niaga Tbk with a maximum credit amount of Rp25,200,000 with a credit period of 5 years until April 13, 2021 or 60 times installments and was used to purchase 1 (one) line machine type tuber and bottomer. The loan bears an interest rate in 2018 and 2017 at 10.5% and 10.25% per annum.







(Continued)

- 85 -

Pinjaman ini dijamin dengan mesin dan peralatan tertentu (Catatan 15) dan juga piutang usaha (Catatan 7).

These loans are collateralized by certain machineries and equipment (Note 15) and also trade accounts receivable (Note 7).

Perjanjian pinjaman tersebut mencakup persyaratan tertentu antara lain tanpa persetujuan dari bank terlebih dahulu, IKSG tidak diizinkan untuk mengubah susunan dewan direksi, komisaris dan pemegang saham, menambah utang selain utang yang sudah ada, kecuali dalam rangka menjalankan usaha, dan melakukan pembayaran dividen kepada pemegang saham melebihi 60% dari keuntungan tiap periode.

The loan agreements contain certain covenants which among others, without prior approval from the bank, IKSG is not allowed to change the composition of the board of commissioners, directors and shareholders, incur additional indebtedness, except those for ordinary business and payment of dividends to stockholders exceeding 60% of IKSG’s profit for every period.

Pada tanggal 31 Desember 2018 dan 2017, nilai saldo atas fasilitas tersebut adalah sebesar Rp11.008.200 dan Rp15.726.000.

As of December 31, 2018 and 2017, outstanding balance of the facility amounted to Rp11,008,200 and Rp15,726,000, respectively.

Fasilitas ini mensyaratkan IKSG untuk memelihara rasio keuangan tertentu, pada tanggal 31 Desember 2018, salah satu rasio keuangan tidak terpenuhi dan telah menerima waiver letter dari PT CIMB Niaga.

This facility requires IKSG to maintain certain financial ratios. As of December 31, 2018, IKSG was not able to complay one of the financial ratios and already received waiver letter from PT CIMB Niaga.

Surat Utang Jangka Menengah Medium Term Notes PT Varia Usaha Beton (VUB) entitas anak PT Semen Indonesia Beton (SIB)

PT Varia Usaha Beton (VUB) the subsidiary of PT Semen Indonesia Beton (SIB)

Pada bulan Agustus 2015, VUB telah menerbitkan Medium Term Notes I Varia Usaha Beton Seri A ("MTN"). MTN I Seri A tersebut merupakan sebagian dari jumlah keseluruhan nilai pokok MTN yaitu maksimal sebesar Rp100.000.000, yang diterbitkan secara berseri. Jumlah pokok MTN I Seri A yang ditawarkan adalah sebesar Rp30.000.000 dengan tingkat bunga tetap sebesar 11,45% per tahun dan jatuh tempo pada tanggal 20 Agustus 2018. Pembayaran bunga MTN I Seri A dibayarkan setiap 3 bulan sekali. Pembayaran pertama bunga MTN I Seri A dilakukan pada tanggal 20 November 2015.

In August 2015, VUB has issued a Medium Term Notes I Varia Usaha Beton Series A ("MTN"). MTN I Series A is a portion of principal MTN with a maximum value of Rp100,000,000, published in several serials. The principal amount of MTN I Series A offered amounted to Rp30,000,000 with interest rate of 11.45% p.a and will be due on August 20, 2018. Interest payment of MTN I Series A paid every 3 months. The first interest payment of MTN I Series A was on November 20, 2015.

Pada bulan September 2016, VUB telah menerbitkan Medium Term Notes I Varia Usaha Beton Seri B (“MTN”). Jumlah pokok MTN I Seri B yang ditawarkan sebesar Rp35.000.000 dengan tingkat bunga tetap sebesar 11,45% per tahun dan akan jatuh tempo pada tanggal 20 Agustus 2018. Pembayaran bunga MTN I Seri B dibayarkan setiap 3 bulan sekali. Pembayaran pertama bunga MTN I Seri B dilakukan pada tanggal 14 Desember 2016.

In September 2016, VUB has issued Medium Term Notes I Varia Usaha Beton Series B ("MTN"). Total principal amount of MTN I Series B amounting to Rp35,000,000 with a fixed interest rate of 11.45% per annum and will mature on August 20, 2018. The interest payment of MTN I Series B shall be paid quarterly. The first payment of the interest of MTN I Seri B was made on December 14, 2016.

Pada bulan Agustus 2018, Perusahaan telah melunasi MTN I Varia Usaha Beton Seri A dan Seri B sebesar Rp30.000.000 dan Rp35.000.000 berserta bunganya sebesar Rp865.808 dan Rp735.623.

In August 2018, the Company has repaid the Series A and Series B Concrete Varia I Term Medium Notes ("MTN") amounting to Rp30,000,000 and Rp35,000,000 along with interest amounting to Rp865,808 and Rp735,623, respectively.

Saldo Surat Utang Jangka Menengah pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar RpNihil dan Rp64.929.028.

The outstanding balance of Medium Term Notes as of December 31, 2018 and 2017 amounted to RpNil and Rp64,929,028, respectively.







(Continued)

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Pinjaman ini dijamin dengan mesin dan peralatan tertentu (Catatan 15) dan juga piutang usaha (Catatan 7).

These loans are collateralized by certain machineries and equipment (Note 15) and also trade accounts receivable (Note 7).

Perjanjian pinjaman tersebut mencakup persyaratan tertentu antara lain tanpa persetujuan dari bank terlebih dahulu, IKSG tidak diizinkan untuk mengubah susunan dewan direksi, komisaris dan pemegang saham, menambah utang selain utang yang sudah ada, kecuali dalam rangka menjalankan usaha, dan melakukan pembayaran dividen kepada pemegang saham melebihi 60% dari keuntungan tiap periode.

The loan agreements contain certain covenants which among others, without prior approval from the bank, IKSG is not allowed to change the composition of the board of commissioners, directors and shareholders, incur additional indebtedness, except those for ordinary business and payment of dividends to stockholders exceeding 60% of IKSG’s profit for every period.

Pada tanggal 31 Desember 2018 dan 2017, nilai saldo atas fasilitas tersebut adalah sebesar Rp11.008.200 dan Rp15.726.000.

As of December 31, 2018 and 2017, outstanding balance of the facility amounted to Rp11,008,200 and Rp15,726,000, respectively.

Fasilitas ini mensyaratkan IKSG untuk memelihara rasio keuangan tertentu, pada tanggal 31 Desember 2018, salah satu rasio keuangan tidak terpenuhi dan telah menerima waiver letter dari PT CIMB Niaga.

This facility requires IKSG to maintain certain financial ratios. As of December 31, 2018, IKSG was not able to complay one of the financial ratios and already received waiver letter from PT CIMB Niaga.

Surat Utang Jangka Menengah Medium Term Notes PT Varia Usaha Beton (VUB) entitas anak PT Semen Indonesia Beton (SIB)

PT Varia Usaha Beton (VUB) the subsidiary of PT Semen Indonesia Beton (SIB)

Pada bulan Agustus 2015, VUB telah menerbitkan Medium Term Notes I Varia Usaha Beton Seri A ("MTN"). MTN I Seri A tersebut merupakan sebagian dari jumlah keseluruhan nilai pokok MTN yaitu maksimal sebesar Rp100.000.000, yang diterbitkan secara berseri. Jumlah pokok MTN I Seri A yang ditawarkan adalah sebesar Rp30.000.000 dengan tingkat bunga tetap sebesar 11,45% per tahun dan jatuh tempo pada tanggal 20 Agustus 2018. Pembayaran bunga MTN I Seri A dibayarkan setiap 3 bulan sekali. Pembayaran pertama bunga MTN I Seri A dilakukan pada tanggal 20 November 2015.

In August 2015, VUB has issued a Medium Term Notes I Varia Usaha Beton Series A ("MTN"). MTN I Series A is a portion of principal MTN with a maximum value of Rp100,000,000, published in several serials. The principal amount of MTN I Series A offered amounted to Rp30,000,000 with interest rate of 11.45% p.a and will be due on August 20, 2018. Interest payment of MTN I Series A paid every 3 months. The first interest payment of MTN I Series A was on November 20, 2015.

Pada bulan September 2016, VUB telah menerbitkan Medium Term Notes I Varia Usaha Beton Seri B (“MTN”). Jumlah pokok MTN I Seri B yang ditawarkan sebesar Rp35.000.000 dengan tingkat bunga tetap sebesar 11,45% per tahun dan akan jatuh tempo pada tanggal 20 Agustus 2018. Pembayaran bunga MTN I Seri B dibayarkan setiap 3 bulan sekali. Pembayaran pertama bunga MTN I Seri B dilakukan pada tanggal 14 Desember 2016.

In September 2016, VUB has issued Medium Term Notes I Varia Usaha Beton Series B ("MTN"). Total principal amount of MTN I Series B amounting to Rp35,000,000 with a fixed interest rate of 11.45% per annum and will mature on August 20, 2018. The interest payment of MTN I Series B shall be paid quarterly. The first payment of the interest of MTN I Seri B was made on December 14, 2016.

Pada bulan Agustus 2018, Perusahaan telah melunasi MTN I Varia Usaha Beton Seri A dan Seri B sebesar Rp30.000.000 dan Rp35.000.000 berserta bunganya sebesar Rp865.808 dan Rp735.623.

In August 2018, the Company has repaid the Series A and Series B Concrete Varia I Term Medium Notes ("MTN") amounting to Rp30,000,000 and Rp35,000,000 along with interest amounting to Rp865,808 and Rp735,623, respectively.

Saldo Surat Utang Jangka Menengah pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar RpNihil dan Rp64.929.028.

The outstanding balance of Medium Term Notes as of December 31, 2018 and 2017 amounted to RpNil and Rp64,929,028, respectively.





(Continued)

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PT Bank Pembangunan Daerah Jawa Timur Tbk

PT Bank Pembangunan Daerah Jawa Timur Tbk

PT Semen Indonesia Logistik (SIL) PT Semen Indonesia Logistik (SIL) Berdasarkan Akta perjanjian kredit dan pengakuan utang No. 21 tanggal 2 Oktober 2014 dari Yatiningsih, SH, MH, Notaris di Surabaya, dan melalui Surat Permohonan untuk memperoleh Fasilitas Kredit Investasi yang diajukan oleh SIL No.00997.121/KU.01.01/04.14 tanggal 2 April 2014, PT Bank Pembangunan Daerah Jawa Timur, Tbk telah memberikan kredit kepada SIL dengan pagu kredit sebesar Rp49.500.000 dengan tingkat bunga 10,25% per tahun, untuk direviu sewaktu-waktu. Fasilitas ini berakhir pada tanggal 1 Oktober 2019 dan dijamin dengan jaminan fidusia atas 113 unit kendaraan truk bak, dump truck dan bulk carrier dengan nilai penjaminan sebesar Rp37.800.000.

Based on Loan Agreement and Acknowledgment of Debt No. 21 dated October 2, 2014 by Yatiningsih, SH, MH, Notary in Surabaya and through an application for a proposed investment credit facility by SIL No. 00997.121 / KU.01.01 / 04.14 on April 2, 2014, PT Bank Pembangunan Daerah Jawa Timur Tbk provided credit to SIL with a maximum amount of Rp49,500,000 with an interest rate of 10.25% per annum, subject to review at any given time. This facility will expire on October 1, 2019 and is secured by a fiduciary on 113 trucks, dump truck and bulk carriers with a guarantee amount of Rp37,800,000.

Fasilitas ini mensyaratkan SIL untuk menjaga arus kas yang positif, memberitahukan kepada bank jika SIL mengikatkan diri sebagai penjamin utang atau menjaminkan harta kekayaannya kepada pihak lain, melakukan pembayaran dividen kepada pemegang saham dan melakukan investasi pada perusahaan lain yang berisiko tinggi. Pada tanggal 31 Desember 2018, SIL telah memenuhi persyaratan yang diatur dalam perjanjian kredit.

These facilities require SIL to maintain the positive cash flow, inform the bank if SIL grants guarantees or pledges its assets to any other parties, pay the dividends to the shareholders and make a high risk investment in other companies. As of December 31, 2018, SIL has fullfilled all of the requirements stated in the loan agreement.

Saldo pinjaman pada tanggal 31 Desember 2018 dan 2017 masing-masing adalah sejumlah RpNihil dan Rp17.558.858.

The balance of the loan as of December 31, 2018 and 2017 amounted to RpNil and Rp17,558,858, respectively.

PT Bank Muamalat Indonesia, Tbk PT Bank Muamalat Indonesia, Tbk PT Semen Indonesia Logistik (SIL) dan entitas anak

PT Semen Indonesia Logistik (SIL) and subsidiaries

Berdasarkan Akta Notaris Agil Suwarto, S.T., S.H., M.Kn., dengan Akta No. 37 tanggal 13 April 2017, entitas anak dari SIL, VUBA memperoleh Fasilitas pembiayaan murabahah dengan tujuan pembelian 10 unit dump truck. Jumlah maksimum fasilitas sebesar Rp11.000.000. Jangka waktu kredit selama 42 bulan mulai 17 Oktober 2016 hingga 17 April 2020. Tingkat efektif pada tahun 2017 sebesar 11% per tahun. Agunan kredit atas perjanjian tersebut, antara lain: a. Sebidang tanah dengan HGB No. 34,

berlokasi Desa Gending, Kebomas, Gresik, seluas 695 m2 atas nama VUBA.

b. Sebidang tanah dengan HGB No. 35, berlokasi Desa Gending, Kebomas, Gresik, seluas 1.193 m2 atas nama VUBA

Based on Notarial Deed No. 17 by Agil Suwarto, S.T., S.H., M.Kn., dated April 13, 2017, a subsidiary of SIL, VUBA obtained murabahah financing facility with the purpose of the purchase of ten (10) units of dump trucks with maximum facility amount of Rp11,000,000. Time period of this facility is 42 months starting from October 17, 2016 until April 17, 2020. The effective interest rate for 2017 is 11% per annum. The collaterals provided in relation to this credit agreement are: a. A piece of land with HGB No. 34, located at

Gending Village, Kebomas, Gresik, covering an area of 695 m2 under the name of VUBA.

b. A piece of land with HGB No. 35, located Gending Village, Kebomas, Gresik, covering an area of 1,193 m2 under the name of VUBA.

Pada tanggal 15 November 2018, fasilitas pembayaran ini telah dilunasi oleh VUBA. Pada tanggal 31 Desember 2017, nilai saldo atas fasilitas tersebut adalah sebesar Rp7.730.508.

On November 15, 2018, this credit facility has been fully paid by VUBA. As of December 31, 2017, outstanding balance of this credit facility amounted to Rp 7,730,508.







(Continued)

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PT Bank Central Asia, Tbk PT Bank Central Asia, Tbk PT Semen Indonesia Beton (SIB) dan Entitas Anak

PT Semen Indonesia Beton (SIB) and its Subsidiary

Berdasarkan Perjanjian Kredit tanggal 23 April 2014 dengan No. 0484/SPPK/0018/2014 yang telah dilegalisasi oleh Notaris Sitaresmi Puspadewi Subianto, S.H., dengan Akta No. 16 tanggal 9 Juni 2014, VUB entitas anak dari SIB, memperoleh Fasilitas kredit investasi dengan tujuan renovasi bangunan, pembelian mesin produksi, alat berat, kendaraan dan alat produksi. Jumlah maksimum fasilitas sebesar Rp42.000.000. Fasilitas ini telah diperpanjang berdasarkan Surat Pemberitahuan Pemberian Kredit No.3330/SPPK/0018/2015 tanggal 29 Juni 2015 yang menyatakan jangka waktu kredit 24 Juni 2014 sampai 24 Juni 2018. Tingkat suku bunga terhadap pinjaman ini adalah 11% per tahun, untuk direviu sewaktu-waktu.

Based on the Credit Agreement dated April 23, 2014 with No. 0484/SPPK/0018/2014 which has been legalized by Notary Sitaresmi Puspadewi Subianto, S.H., with the notarial deed No. 16 dated June 9, 2014, VUB, a subsidiary of SIB, obtained Investment Credit Facility with the purpose of building renovation, purchase of production machinery, heavy equipment, vehicles and production tools with maximum facility amount of Rp42,000,000. This facility had been extended by the Notice of Credit No. 3330/SPPK/0018/2015 dated June 29, 2015 stating the credit period is from June 24, 2014 until June 24, 2018. Interest rate for this facility is 11% per annum, subject for review at any given time.

Agunan kredit atas perjanjian tersebut, antara lain:

The collaterals provided in relaton to this credit agreement are:

a. Sebidang tanah dengan HGB No. 20, Desa Pringgabaya, Lombok Timur, Nusa Tenggara Barat, seluas 16.546 m2 atas nama VUB dengan bangunan di atasnya;

a. A piece of land with HGB No. 20, Pringgabaya Village, East Lombok, Nusa Tenggara Barat, covering an area of 16,546 m2 in the name of VUB with buildings on it;

b. Beberapa mesin, alat berat, kendaraan produksi dan peralatan produksi; dan

b. Some machines, heavy equipment, vehicle production and production equipment; and

c. Piutang minimal Rp8.000.000. c. Minimum trade receivables of Rp8,000,000

Fasilitas ini mensyaratkan VUB untuk menjaga rasio keuangan, memberitahukan kepada bank apabila VUB melakukan tambahan pinjaman, melakukan pengubahan pengurus, dan melakukan perubahan pemegang saham. Pada tanggal 31 Desember 2018, VUB telah memenuhi persyaratan yang diatur dalam perjanjian kredit.

These facilities require VUB to maintain financial ratio, and report to the bank loan obtained from other parties, changes in the composition the Board of Directors and shareholders. As of December 31, 2018, VUB has fullfilled the requirement stated in the loan agreement.

Pada tanggal 31 Desember 2018 dan 2017, nilai saldo atas fasilitas tersebut masing-masing sebesar RpNihil dan Rp6.345.768.

As of December 31, 2018 and 2017, the outstanding balance of loan from this credit facility amounted to RpNil and Rp6,345,768.

PT Bank Negara Indonesia (Persero) Tbk


1. Perseroan

Berdasarkan Akta No. 38 atas persetujuan membuka kredit tertanggal 26 September 2018, yang diibuat oleh Ariani L Rachim, Notaris di Jakarta, Perseroan memperoleh fasilitas kredit untuk keperluan pinjaman dan pendanaan ulang untuk Perseroan dan entitas anak sebesar Rp5.000.000.000.

1. The Company

Based on the Deed No. 38 about the opening credits approval dated September 26, 2018, which are rendered by Ariani L Rachim, Notary in Jakarta, The Company obtained credit facilities for the needs of Group corporate loans and refinancing amounting to Rp5,000,000,000.







(Continued)

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PT Bank Central Asia, Tbk PT Bank Central Asia, Tbk PT Semen Indonesia Beton (SIB) dan Entitas Anak

PT Semen Indonesia Beton (SIB) and its Subsidiary

Berdasarkan Perjanjian Kredit tanggal 23 April 2014 dengan No. 0484/SPPK/0018/2014 yang telah dilegalisasi oleh Notaris Sitaresmi Puspadewi Subianto, S.H., dengan Akta No. 16 tanggal 9 Juni 2014, VUB entitas anak dari SIB, memperoleh Fasilitas kredit investasi dengan tujuan renovasi bangunan, pembelian mesin produksi, alat berat, kendaraan dan alat produksi. Jumlah maksimum fasilitas sebesar Rp42.000.000. Fasilitas ini telah diperpanjang berdasarkan Surat Pemberitahuan Pemberian Kredit No.3330/SPPK/0018/2015 tanggal 29 Juni 2015 yang menyatakan jangka waktu kredit 24 Juni 2014 sampai 24 Juni 2018. Tingkat suku bunga terhadap pinjaman ini adalah 11% per tahun, untuk direviu sewaktu-waktu.

Based on the Credit Agreement dated April 23, 2014 with No. 0484/SPPK/0018/2014 which has been legalized by Notary Sitaresmi Puspadewi Subianto, S.H., with the notarial deed No. 16 dated June 9, 2014, VUB, a subsidiary of SIB, obtained Investment Credit Facility with the purpose of building renovation, purchase of production machinery, heavy equipment, vehicles and production tools with maximum facility amount of Rp42,000,000. This facility had been extended by the Notice of Credit No. 3330/SPPK/0018/2015 dated June 29, 2015 stating the credit period is from June 24, 2014 until June 24, 2018. Interest rate for this facility is 11% per annum, subject for review at any given time.

Agunan kredit atas perjanjian tersebut, antara lain:

The collaterals provided in relaton to this credit agreement are:

a. Sebidang tanah dengan HGB No. 20, Desa Pringgabaya, Lombok Timur, Nusa Tenggara Barat, seluas 16.546 m2 atas nama VUB dengan bangunan di atasnya;

a. A piece of land with HGB No. 20, Pringgabaya Village, East Lombok, Nusa Tenggara Barat, covering an area of 16,546 m2 in the name of VUB with buildings on it;

b. Beberapa mesin, alat berat, kendaraan produksi dan peralatan produksi; dan

b. Some machines, heavy equipment, vehicle production and production equipment; and

c. Piutang minimal Rp8.000.000. c. Minimum trade receivables of Rp8,000,000

Fasilitas ini mensyaratkan VUB untuk menjaga rasio keuangan, memberitahukan kepada bank apabila VUB melakukan tambahan pinjaman, melakukan pengubahan pengurus, dan melakukan perubahan pemegang saham. Pada tanggal 31 Desember 2018, VUB telah memenuhi persyaratan yang diatur dalam perjanjian kredit.

These facilities require VUB to maintain financial ratio, and report to the bank loan obtained from other parties, changes in the composition the Board of Directors and shareholders. As of December 31, 2018, VUB has fullfilled the requirement stated in the loan agreement.

Pada tanggal 31 Desember 2018 dan 2017, nilai saldo atas fasilitas tersebut masing-masing sebesar RpNihil dan Rp6.345.768.

As of December 31, 2018 and 2017, the outstanding balance of loan from this credit facility amounted to RpNil and Rp6,345,768.



1. Perseroan

Berdasarkan Akta No. 38 atas persetujuan membuka kredit tertanggal 26 September 2018, yang diibuat oleh Ariani L Rachim, Notaris di Jakarta, Perseroan memperoleh fasilitas kredit untuk keperluan pinjaman dan pendanaan ulang untuk Perseroan dan entitas anak sebesar Rp5.000.000.000.

1. The Company

Based on the Deed No. 38 about the opening credits approval dated September 26, 2018, which are rendered by Ariani L Rachim, Notary in Jakarta, The Company obtained credit facilities for the needs of Group corporate loans and refinancing amounting to Rp5,000,000,000.





(Continued)

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Perseroan wajib membayar kepada Bank bunga sebesar JIBOR 3 bulan + 1% (satu persen), apabila suku bunga dari refference tersebut dibawah 8% (delapan persen) maka suku bunga yang berlaku adalah 8,00% (delapan koma nol persen) per tahun yang dihitung dari baki debet. Besarnya suku bunga kredit sebagaimana disebut di atas sewaktu-waktu dapat ditinjau kembali untuk disesuaikan dengan tarif suku bunga yang berlaku di Bank. Pembayaran bunga sebagaimana dimaksud di atas wajib dilakukan oleh Perseroan setiap 3 bulan.

The company must pay the Bank of Interest a 3-month JIBOR + 1% (one percent), if the interest rate of the refference is below 8% (eight percent) then the applicable interest rate is 8.00% (eight point zero percent) per annum calculated from the Debit Tray. The amount of loan interest as mentioned above can be reviewed from time to time to be adjusted to the applicable interest rate at the Bank. Interest payments as referred to above must be paid by debtor every 3 months.

Perseroan wajib melakukan pelunasan secara sekaligus pada saat jatuh tempo fasilitas kredit. Jangka waktu kredit adalah 24 bulan sejak tanggal penarikan fasilitas kredit.

The Company must conduct a repayments at the same time at the maturity of the credit facility. The credit period is 24 months from the date of withdrawal of the credit facility.

Perseroan harus mempertahankan rasio keuangan tertentu. Pada tanggal 31 Desember 2018, Perseroan telah memenuhi seluruh rasio keuangan.

Based on the facility agreement, the Company is required to maintain certain financial ratios. As of December 31, 2018, the Company has met all financial ratios

Pada tanggal 31 Desember 2018 saldo utang bank terkait dengan fasilitas ini sebesar Rp4.234.512.150. Penarikan tersebut dilakukan pada 27 September 2018 melalui Surat Perihal Permohonan Penarikan Kredit Corporate Loan No. 0008808 / KU / SUP / 50000793 / 2000 / 09.2018.

As of December 31, 2018, loan outstanding from these fascilities amounted to Rp4,234,512,150. The withdrawal was carried out on September 27, 2018 through Request for Withdrawal of Corporate Loan Letter No. 0008808 / KU / SUP / 50000793 / 2000 / 09.2018.

2. UTSG 2. UTSG

a) Pada 17 Mei 2017, UTSG memperoleh fasilitas kredit investasi dari PT Bank Negara Indonesia (Persero) Tbk dengan jumlah kredit maksimum sebesar Rp88.000.000 untuk pembelian alat berat dengan tingkat bunga 9,45% per tahun dan jatuh tempo dalam jangka waktu 60 bulan.

On May 17, 2017, UTSG obtained investment credit facility from PT Bank Negara Indonesia (Persero) Tbk with credit amount of Rp88,000,000 which was used to acquire heavy equipment and bears interest at 9.45% per annum with due date in 60 months.

Pinjaman dari PT Bank Negara Indonesia (Persero) Tbk dijamin dengan aset UTSG yang dibeli menggunakan dana yang diperoleh dari fasilitas kredit tersebut. Pada tanggal 31 Desember 2018 dan 2017 saldo utang bank atas fasilitas ini Rp65.686.872 dan Rp84.912.298.

a) This loan from PT Bank Negara Indonesia (Persero) Tbk is secured by the UTSG’s assets that were acquired using the funds from such credit facility. As of December 31, 2018 and 2017, the outstanding balance of loan from this facility amounted to Rp65,686,872 and Rp84,912,298.

b) UTSG harus mempertahankan rasio keuangan tertentu. Pada tanggal 31 Desember 2018 dan 2017, UTSG telah memenuhi seluruh rasio keuangan.

b) Based on the facility agreement, UTSG is required to maintain certain financial ratios. As of December 31, 2018 and 2017, UTSG has met all financial ratios.







(Continued)

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Pada tahun 2015, sesuai dengan Akta Notaris No. 48 M.Kholid Artha S.H., tanggal 15 Pebruari 2015, entitas anak SP, BSA mengalihkan fasilitas kredit investasi dari PT Bank Central Asia kepada PT Bank Negara Indonesia (Persero) Tbk. Jangka waktu kredit adalah selama 60 bulan sejak ditandatanganinya perjanjian kredit tersebut atau sampai dengan tanggal 10 Pebruari 2020 dengan tingkat suku bunga sebesar 11% per tahun.

In 2015, based on Notarial Deed No. 48 M.Kholid Artha S.H., dated February 15, 2015, a subsidiary of SP, BSA, transferred the investment credit facility from PT Bank Central Asia to PT Bank Negara Indonesia (Persero) Tbk. The credit period was 60 months from the signing of the agreement or until February 10, 2020 with interest rate of 11% per annum.

Pada tanggal 31 Desember 2018 dan 2017, saldo utang bank atas fasilitas ini masing-masing sebesar Rp2.170.000 dan Rp3.910.000.

As of December 31, 2018 and 2017, the outstanding balance of loan from this facility amounted to Rp2,170,000 and Rp3,910,000, respectively.

Perjanjian pinjaman tersebut mensyaratkan BSA mempertahankan tingkat rasio keuangan tertentu. Pada tanggal 31 Desember 2018 dan 2017, BSA telah memenuhi semua persyaratan pinjaman.

The loan agreement relating to the above facilities requires BSA to maintain certain financial ratios. As of December 31, 2018 and 2017, BSA has complied with all the loan covenants.

4. PT Krakatau Semen Indonesia (KSI) 4. PT Krakatau Semen Indonesia (KSI)

Pada tanggal 29 Juni 2016 dengan akta No. 123 dari Muhammad Kholid Artha, S.H, Notaris di Jakarta, KSI menandatangani perjanjian Kredit Investasi dengan PT Bank Negara Indonesia (Persero) Tbk maksimum fasilitas kredit perjanjian ini adalah sejumlah Rp276.500.000. Tujuan fasilitas ini adalah untuk untuk pembangunan Pabrik Slag dengan kapasitas 750.000 ton/tahun, pinjaman ini berlaku sampai dengan dengan 28 Juni 2023 dengan tingkat suku bunga 10% per tahun, untuk direviu sewaktu-waktu. Agunan atas fasilitas ini adalah segala harta kekayaan, baik yang sudah ada maupun akan ada di kemudian hari akan menjadi jaminan.

On June 29, 2016 with Deed No. 123 from Muhammad Kholid Artha, S.H, Notary in Jakarta, KSI signed Investment Credit Facility with PT Bank Negara Indonesia (Persero) Tbk for a maximum credit facility amounting to Rp276,500,000. The purpose of this facility is to build Slag Factory with capacity of 750,000 ton a year and the loan is valid until June 28, 2023 with interest rate of 10% per annum, subject for review at any given time. Collateral for this facility is all of KSI assets, either already existing or will existing in the future.

Pada tanggal 29 Juni 2016 dengan Akta No. 124 dari Muhammad Kholid Artha, S.H, Notaris di Jakarta, KSI menandatangani perjanjian Kredit Investasi Interest During Constructions (IDC) dengan PT Bank Negara Indonesia (Persero) Tbk, maksimum fasilitas kredit perjanjian ini adalah sejumlah Rp24.500.000. Tujuan fasilitas ini adalah untuk pembiayaan 70% biaya bunga atas fasilitas Kredit Investasi Pokok selama masa konstruksi. Pinjaman ini berlaku sampai dengan 28 Juni 2023 dengan tingkat suku bunga 10% per tahun, untuk direviu sewaktu-waktu. Agunan atas fasilitas ini adalah segala harta kekayaan, baik yang sudah ada maupun yang akan ada di kemudian hari.

On June 29, 2016 based on Deed No. 124 by Muhammad Kholid Artha, S.H, Notary in Jakarta, KSI signed Investment Credit Facility with PT Bank Negara Indonesia (Persero) Tbk, for a maximum credit facility amounting to Rp24,500,000. The purpose of this facility is to finance 70% of interest for Investment Credit Facility during constructions. The loan is valid until June 28, 2023 with interest rate at 10% per annum, subject for review at any given time. Collateral for this facility is all of KSI assets, either already existing or will exist in the future.







(Continued)

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Pada tahun 2015, sesuai dengan Akta Notaris No. 48 M.Kholid Artha S.H., tanggal 15 Pebruari 2015, entitas anak SP, BSA mengalihkan fasilitas kredit investasi dari PT Bank Central Asia kepada PT Bank Negara Indonesia (Persero) Tbk. Jangka waktu kredit adalah selama 60 bulan sejak ditandatanganinya perjanjian kredit tersebut atau sampai dengan tanggal 10 Pebruari 2020 dengan tingkat suku bunga sebesar 11% per tahun.

In 2015, based on Notarial Deed No. 48 M.Kholid Artha S.H., dated February 15, 2015, a subsidiary of SP, BSA, transferred the investment credit facility from PT Bank Central Asia to PT Bank Negara Indonesia (Persero) Tbk. The credit period was 60 months from the signing of the agreement or until February 10, 2020 with interest rate of 11% per annum.

Pada tanggal 31 Desember 2018 dan 2017, saldo utang bank atas fasilitas ini masing-masing sebesar Rp2.170.000 dan Rp3.910.000.

As of December 31, 2018 and 2017, the outstanding balance of loan from this facility amounted to Rp2,170,000 and Rp3,910,000, respectively.

Perjanjian pinjaman tersebut mensyaratkan BSA mempertahankan tingkat rasio keuangan tertentu. Pada tanggal 31 Desember 2018 dan 2017, BSA telah memenuhi semua persyaratan pinjaman.

The loan agreement relating to the above facilities requires BSA to maintain certain financial ratios. As of December 31, 2018 and 2017, BSA has complied with all the loan covenants.

4. PT Krakatau Semen Indonesia (KSI) 4. PT Krakatau Semen Indonesia (KSI)

Pada tanggal 29 Juni 2016 dengan akta No. 123 dari Muhammad Kholid Artha, S.H, Notaris di Jakarta, KSI menandatangani perjanjian Kredit Investasi dengan PT Bank Negara Indonesia (Persero) Tbk maksimum fasilitas kredit perjanjian ini adalah sejumlah Rp276.500.000. Tujuan fasilitas ini adalah untuk untuk pembangunan Pabrik Slag dengan kapasitas 750.000 ton/tahun, pinjaman ini berlaku sampai dengan dengan 28 Juni 2023 dengan tingkat suku bunga 10% per tahun, untuk direviu sewaktu-waktu. Agunan atas fasilitas ini adalah segala harta kekayaan, baik yang sudah ada maupun akan ada di kemudian hari akan menjadi jaminan.

On June 29, 2016 with Deed No. 123 from Muhammad Kholid Artha, S.H, Notary in Jakarta, KSI signed Investment Credit Facility with PT Bank Negara Indonesia (Persero) Tbk for a maximum credit facility amounting to Rp276,500,000. The purpose of this facility is to build Slag Factory with capacity of 750,000 ton a year and the loan is valid until June 28, 2023 with interest rate of 10% per annum, subject for review at any given time. Collateral for this facility is all of KSI assets, either already existing or will existing in the future.

Pada tanggal 29 Juni 2016 dengan Akta No. 124 dari Muhammad Kholid Artha, S.H, Notaris di Jakarta, KSI menandatangani perjanjian Kredit Investasi Interest During Constructions (IDC) dengan PT Bank Negara Indonesia (Persero) Tbk, maksimum fasilitas kredit perjanjian ini adalah sejumlah Rp24.500.000. Tujuan fasilitas ini adalah untuk pembiayaan 70% biaya bunga atas fasilitas Kredit Investasi Pokok selama masa konstruksi. Pinjaman ini berlaku sampai dengan 28 Juni 2023 dengan tingkat suku bunga 10% per tahun, untuk direviu sewaktu-waktu. Agunan atas fasilitas ini adalah segala harta kekayaan, baik yang sudah ada maupun yang akan ada di kemudian hari.

On June 29, 2016 based on Deed No. 124 by Muhammad Kholid Artha, S.H, Notary in Jakarta, KSI signed Investment Credit Facility with PT Bank Negara Indonesia (Persero) Tbk, for a maximum credit facility amounting to Rp24,500,000. The purpose of this facility is to finance 70% of interest for Investment Credit Facility during constructions. The loan is valid until June 28, 2023 with interest rate at 10% per annum, subject for review at any given time. Collateral for this facility is all of KSI assets, either already existing or will exist in the future.





(Continued)

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Perjanjian pinjaman tersebut mensyaratkan KSI mempertahankan rasio keuangan tertentu yang dihitung berdasarkan laporan keuangan. Pada tanggal 31 Desember 2018 dan 2017, KSI telah memenuhi semua persyaratan pinjaman.

The loan agreement relating to the above facilities requires KSI to maintain certain financial ratios computed based on its financial statements. As of December 31, 2018 and 2017, KSI has complied with all the loan covenants.

Pada tanggal 31 Desember 2018 dan 2017, saldo utang bank atas fasilitas ini masing-masing sejumlah Rp261.658.325 dan Rp229.202.112.

As of December 31, 2018 and 2017, the outstanding bank loan for this facility amounted to Rp261,658,325 and Rp229,202,112 respectively.

PT Bank Mandiri (Persero) Tbk PT Bank Mandiri (Persero) Tbk PT Semen Gresik (SG) PT Semen Gresik (SG)

Pada tanggal 10 Juni 2016, SG menandatangani perjanjian kredit investasi dengan PT Bank Mandiri (Persero) Tbk. Fasilitas ini digunakan untuk pendanaan penyelesaian proyek Rembang dengan nilai fasilitas pokok Rp3.116.000.000 ditambah dengan IDC (Interest During Construction) sebesar Rp350.000.000 dengan grace period dan periode penarikan maksimal 18 bulan sejak penandatanganan Perjanjian Kredit dan jangka waktu fasilitas selama 10 tahun sejak perjanjian kredit. Dalam perjanjian ini dijelaskan komposisi pembiayaan proyek Rembang yang dibagi menjadi 37,43% yang berasal dari self-financing dan 62,57% dari kredit investasi.

On June 10, 2016, SG entered into a credit investment agreement with PT Bank Mandiri (Persero) Tbk. The facility is used for funding the completion of Rembang project with principal facility amount of Rp3,116,000,000 with additional IDC (Interest During Construction) amounting to Rp350,000,000 with grace period and maximum withdrawal period of 18 months after the Credit Agreement was signed and the due date of this facility is 10 years after credit agreement. In this agreement, the funding for the Rembang project is composed of 37.43% from self-financing and 62.57% from credit investment.

Suku bunga kredit yang digunakan dalam fasilitas ini adalah reference rate (suku bunga acuan yang diumumkan oleh Bank Indonesia) ditambah dengan margin (selisih antara suku bunga awal dengan reference rate). Tingkat suku bunga rata-rata selama 2018 dan 2017 masing-masing sebesar 7,85% dan 7,35%.

The interest rate in this credit facility is based on reference rate (reference interest rate announced by Bank Indonesia) plus margin (the gap between last interest rate with reference rate). Effective average interest rate in 2018 and 2017 are 7.85% and 7.35%, respectively.

SG juga berkewajiban untuk membayar upfront fee sebesar 0,1% yang dihitung dari limit kredit dan dibayarkan secara proporsional per penarikan.

SG also has responsibility to pay upfront fee of 0.1% from credit limit and paid as proportional for each withdrawal.

Saldo utang bank pada tanggal 31 Desember 2017 terkait dengan fasilitas adalah sebesar Rp3.044.505.591. Pinjaman ini telah dilunasi pada tanggal 22 September 2018.

The outstanding bank loan as of December 31, 2017 amounted to Rp3,044,505,591. This loan was fully paid on September 22, 2018.

PT Semen Indonesia Logistik (SIL) dan entitas anak

PT Semen Indonesia Logistik (SIL) and its subsidiaries

Pinjaman Transaksi Khusus (PTK) Pinjaman Transaksi Khusus (PTK) Pada tanggal 15 Desember 2015, SIL menandatangani perjanjian Fasilitas Pinjaman Transaksi Khusus 3 No. CRO.KP/240/PTK/15 dengan PT Bank Mandiri (Persero) Tbk. Fasilitas pinjaman ini mempunyai limit pinjaman sebesar Rp32.417.000 dengan jangka waktu 5 tahun sampai dengan 14 Desember 2020. Pinjaman ini memiliki tingkat bunga sebesar 9,5% per tahun. Saldo pinjaman ini pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar RpNihil dan Rp19.878.890.

On December 15, 2015, SIL entered into Special Transaction Loan Facility 3 through agreement No. CRO.KP/240/PTK/15 with PT Bank Mandiri (Persero) Tbk with maximum credit limit of Rp32,417,000 and credit term of 5 years until December 14, 2020. This facility bears interest of 9.5% per annum. As of December 31, 2018 and 2017, outstanding loan from of this credit facility amounted to RpNil and Rp 19,878,890, respectively.







(Continued)

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Perjanjian ini memiliki grace period enam bulan sejak ditandatanganinya perjanjian kredit. Suku bunga pinjaman sebesar 10,50% p.a. Pada tanggal 13 Juni 2016 melalui surat No. CBG.CB2/213/2016, SIL mendapatkan surat pemberitahuan perubahan suku bunga untuk PTK 2 dan PTK 3 yang semula masing-masing sebesar 10,00% dan 10,50% menjadi 9,75%.

This agreement has a grace period of six months since the date of the loan agreement. Interest rate was set at 10.50% per annum. On June 13, 2016, through the letter No. CBG.CB2/213/2016, SIL obtained a notification for the change of interest rate for “PTK facility 2” and “PTK facility 3” originally at 10.00% and 10.50%, respectively, to 9.75%

Kredit Investasi Investment Credit

Pada tanggal 10 Agustus 2016 dengan akta No. 98 dari Yatiningsih, S.H., M.H., Notaris di Surabaya, SIL mendapatkan Fasilitas Kredit Investasi 1 dari PT Bank Mandiri (Persero) Tbk dengan nilai maksimal kredit sebesar Rp245.000.000 yang berlaku sampai dengan 10 Pebruari 2022. Perjanjian ini memiliki availability period dan grace period 12 bulan sejak penandatanganan Perjanjian Kredit. Suku bunga pinjaman sebesar 9,50% per tahun, untuk direviu sewaktu-waktu. Suku bunga sewaktu-waktu dapat berubah dengan pemberitahuan tertulis kepada SIL. Pinjaman ini digunakan untuk membiayai pembelian kendaraan.

On August 10, 2016, based on Notarial Deed No. 98 by Yatiningsih, S.H., M.H., Notary in Surabaya, SIL obtained Investment Credit Facility 1 from PT Bank Mandiri (Persero) Tbk with a maximum credit limit of Rp245,000,000 valid until February 10, 2022. This agreement has the availability period and a grace period of 12 months from the signing of the Credit Agreement Interest rate was set at 9.50% per annum, subject for review at any given time. Interest rate may change anytime with written notice to SIL. The loan was used to finance the purchase of vehicles.

Agunan atas fasilitas kredit ini adalah: 1. Kendaraan yang dibiayai dengan Fasilitas

Kredit Investasi I atas obyek jaminan fidusia kendaraan bermotor yang untuk pertama kali diserahkan kepada Bank sebanyak 86 unit kendaraan, dengan nilai obyek Rp38.241.702.

2. Agunan tersebut bersifat joint collateral dan cross default dengan seluruh agunan fasilitas kredit lainnya atas SIL di Bank.

Collateral for this credit facility are: 1. Vehicles financed by Investment Credit

Facility I which are the motor vehicles submitted to the Bank for the first time comprising of 86 units of vehicles, with value of Rp38,241,702.

2. These collaterals are joint collateral and cross default with all collateral on other credit facilities on behalf of SIL in the Bank.

Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman masing-masing sebesar Rp241.224.534 dan Rp244.898.005.

As of December 31, 2018 and 2017, the outstanding balance of the loan amounted to Rp241,224,534 and Rp244,898,005, respectively.

Pada tanggal 10 Agustus 2016 dengan Akta Notaris No. 98 dari Yatiningsih, S.H., M.H., Notaris di Surabaya, SIL mendapatkan Fasilitas Kredit Investasi 2 dari PT Bank Mandiri (Persero) Tbk dengan nilai maksimal kredit sebesar Rp50.000.000, yang berlaku sampai dengan 10 Agustus 2022. Perjanjian ini memiliki availability period dan grace period 12 bulan sejak penandatanganan Perjanjian Kredit. Suku bunga pinjaman sebesar 9,50% p.a untuk direviu sewaktu-waktu. Suku bunga sewaktu-waktu dapat berubah dengan pemberitahuan secara tertulis kepada SIL. Pinjaman ini digunakan untuk membiayai pembangunan gudang/bengkel.

On August 10, 2016 with Notarial Deed No. 98 from Yatiningsih, S.H., M.H., Notary in Surabaya, SIL obtained Investment Credit Facility 2 from PT Bank Mandiri (Persero) Tbk up to a maximum credit of Rp50,000,000 valid until August 10, 2022. This agreement has the availability period and a grace period of 12 months from the signing of the Credit Agreement. Lending rates by 9.50% p.a. subject for review at any given time. Interest may change any time with written notice to SIL. This loan was used to finance the construction of a warehouse/workshop.







(Continued)

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Perjanjian ini memiliki grace period enam bulan sejak ditandatanganinya perjanjian kredit. Suku bunga pinjaman sebesar 10,50% p.a. Pada tanggal 13 Juni 2016 melalui surat No. CBG.CB2/213/2016, SIL mendapatkan surat pemberitahuan perubahan suku bunga untuk PTK 2 dan PTK 3 yang semula masing-masing sebesar 10,00% dan 10,50% menjadi 9,75%.

This agreement has a grace period of six months since the date of the loan agreement. Interest rate was set at 10.50% per annum. On June 13, 2016, through the letter No. CBG.CB2/213/2016, SIL obtained a notification for the change of interest rate for “PTK facility 2” and “PTK facility 3” originally at 10.00% and 10.50%, respectively, to 9.75%

Kredit Investasi Investment Credit

Pada tanggal 10 Agustus 2016 dengan akta No. 98 dari Yatiningsih, S.H., M.H., Notaris di Surabaya, SIL mendapatkan Fasilitas Kredit Investasi 1 dari PT Bank Mandiri (Persero) Tbk dengan nilai maksimal kredit sebesar Rp245.000.000 yang berlaku sampai dengan 10 Pebruari 2022. Perjanjian ini memiliki availability period dan grace period 12 bulan sejak penandatanganan Perjanjian Kredit. Suku bunga pinjaman sebesar 9,50% per tahun, untuk direviu sewaktu-waktu. Suku bunga sewaktu-waktu dapat berubah dengan pemberitahuan tertulis kepada SIL. Pinjaman ini digunakan untuk membiayai pembelian kendaraan.

On August 10, 2016, based on Notarial Deed No. 98 by Yatiningsih, S.H., M.H., Notary in Surabaya, SIL obtained Investment Credit Facility 1 from PT Bank Mandiri (Persero) Tbk with a maximum credit limit of Rp245,000,000 valid until February 10, 2022. This agreement has the availability period and a grace period of 12 months from the signing of the Credit Agreement Interest rate was set at 9.50% per annum, subject for review at any given time. Interest rate may change anytime with written notice to SIL. The loan was used to finance the purchase of vehicles.

Agunan atas fasilitas kredit ini adalah: 1. Kendaraan yang dibiayai dengan Fasilitas

Kredit Investasi I atas obyek jaminan fidusia kendaraan bermotor yang untuk pertama kali diserahkan kepada Bank sebanyak 86 unit kendaraan, dengan nilai obyek Rp38.241.702.

2. Agunan tersebut bersifat joint collateral dan cross default dengan seluruh agunan fasilitas kredit lainnya atas SIL di Bank.

Collateral for this credit facility are: 1. Vehicles financed by Investment Credit

Facility I which are the motor vehicles submitted to the Bank for the first time comprising of 86 units of vehicles, with value of Rp38,241,702.


Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman masing-masing sebesar Rp241.224.534 dan Rp244.898.005.

As of December 31, 2018 and 2017, the outstanding balance of the loan amounted to Rp241,224,534 and Rp244,898,005, respectively.

Pada tanggal 10 Agustus 2016 dengan Akta Notaris No. 98 dari Yatiningsih, S.H., M.H., Notaris di Surabaya, SIL mendapatkan Fasilitas Kredit Investasi 2 dari PT Bank Mandiri (Persero) Tbk dengan nilai maksimal kredit sebesar Rp50.000.000, yang berlaku sampai dengan 10 Agustus 2022. Perjanjian ini memiliki availability period dan grace period 12 bulan sejak penandatanganan Perjanjian Kredit. Suku bunga pinjaman sebesar 9,50% p.a untuk direviu sewaktu-waktu. Suku bunga sewaktu-waktu dapat berubah dengan pemberitahuan secara tertulis kepada SIL. Pinjaman ini digunakan untuk membiayai pembangunan gudang/bengkel.

On August 10, 2016 with Notarial Deed No. 98 from Yatiningsih, S.H., M.H., Notary in Surabaya, SIL obtained Investment Credit Facility 2 from PT Bank Mandiri (Persero) Tbk up to a maximum credit of Rp50,000,000 valid until August 10, 2022. This agreement has the availability period and a grace period of 12 months from the signing of the Credit Agreement. Lending rates by 9.50% p.a. subject for review at any given time. Interest may change any time with written notice to SIL. This loan was used to finance the construction of a warehouse/workshop.





(Continued)

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Agunan atas fasilitas kredit ini adalah: 1. Aset proyek yang dibiayai dengan Fasilitas

Kredit Investasi 2.

2. Agunan tersebut bersifat joint collateral dan cross default dengan seluruh agunan fasilitas kredit lainnya atas SIL di Bank

Collateral for this credit facility are: 1. Assets of projects financed by Investment

Credit Facility 2.


Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman sebesar Rp6.366.696 dan Rp6.920.321.

As of December 31, 2018 and 2017, the outstanding balance for this loan amounted to Rp6,366,696 and Rp6,920,321.

Fasilitas ini mensyaratkan SIL untuk memelihara rasio keuangan tertentu. Perjanjian ini juga mensyaratkan SIL untuk tidak membagikan dividen kepada pemegang saham dan memperoleh fasilitas kredit atau pinjaman dari pihak lain. Pada tanggal 31 Desember 2018 dan 2017, salah satu rasio keuangan tidak terpenuhi dan SIL telah menerima waiver letter dari PT Bank Mandiri (Persero) Tbk. SIL telah memenuhi semua persyaratan terkait dengan perjanjian bank pada tanggal 31 Desember 2018 dan 2017.

This facility requires SIL to maintain certain financial ratios. The agreement also requires SIL to not distribute dividends to the shareholders and receive other loans from other parties. As of December 31, 2018 and 2017, SIL was not able to comply one of the financial ratios and SIL already received waiver letter from PT Bank Mandiri (Persero) Tbk. SIL already fulfilled all of the requirement with bank loan as of December 31, 2018 and 2017.

PT Semen Indonesia Beton (SIB) dan Entitas Anak

PT Semen Indonesia Beton (SIB) and Its Subsidiary

Berdasarkan Akta No. 11 tanggal 5 Agustus 2016 dari Sitaresmi Puspadewi Subianto, S.H, notaris di Surabaya, entitas anak SIB, VUB menandatangani fasilitas kredit investasi dengan PT Bank Mandiri (Persero) Tbk dengan maksimum fasilitas sebesar Rp63.400.000. Tujuan fasilitas ini adalah untuk tujuan pembiayaan modal kerja tahun 2016 hingga tahun 2017 dengan Cost of Project Rp79.250.000. Jangka waktu fasilitas ini adalah 72 bulan termasuk availability period selama 12 bulan dan akan berakhir tanggal 5 Agustus 2022. Tingkat suku bunga fasilitas ini adalah sebesar 10,5% per tahun.

Based on Deed No. 11 dated August 5, 2016 by Sitarasmi Puspadewi Subianto, S.H., notary in Surabaya, a subsidiary of SIB, VUB signed Credit Investment Facility with PT Bank Mandiri (Persero) Tbk with maximum credit facility amounting to Rp63,400,000. The purposes of this facility is to finance capital expenditure for the period from 2016 and 2017 with Cost of Project amounting to Rp79,250,000. The term of this facilty is 72 months which included the availability period of 12 months and will be due on August 5, 2022. The interest rate for this facility is 10.5% per annum.

Agunan atas fasilitas ini adalah mesin dan alat berat senilai Rp10.097.125.

The collateral provided for this facility is machinery and heavy equipment amounting to Rp10,097,125.

Utang bank yang outstanding pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp43.576.875 dan Rp47.083.538.

The outstanding loan amount as of December 31, 2018 and 2017 amounted to Rp43,576,875 and Rp47,083,538, respectively.

Fasilitas ini mensyaratkan VUB untuk memelihara rasio keuangan tertentu, tanpa persetujuan tertulis dari bank VUB tidak diperkenankan untuk mengikatkan diri sebagai penjamin utang atau menjaminkan harta kekayaannya kepada pihak lain, merubah susunan pengurus dan pemegang saham, memperoleh fasilitas kredit atau pinjaman dari pihak lain kecuali dalam transaksi usaha wajar dan mengubah bentuk dan tata susunan obyek agunan kredit. Pada tanggal 31 Desember 2018 dan 2017, VUB telah memenuhi semua persyaratan yang diatur dalam perjanjian kredit.

This facility requires VUB to maintain several financial covenants, and without written consent from the bank, VUB is not allowed to grant guarantee or pledge its assets to any other parties, change members of Board of Directors and Shareholders, obtain new facilities and loan from other parties unless it is in the normal business course and change the form and the arrangement of collateral. As of December 31, 2018 and 2017, VUB has fulfilled all of the requirements stipulated in the credit facility.







(Continued)

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PT Bank Rakyat Indonesia Tbk PT Bank Rakyat Indonesia Tbk PT Semen Indonesia Logistik (SIL) dan Entitas Anak

PT Semen Indonesia Logistik (SIL) and its Subsidiaries

Berdasarkan Akta Perjanjian Utang No. 97 tanggal 28 Pebruari 2014 dari Drs. Slamet Wahjudi, SH., MKn., Notaris di Gresik yang telah diadendum sampai dengan adendum IX tanggal 8 Januari 2015, PT Bank Rakyat Indonesia (Persero) Tbk, memberikan fasilitas kredit investasi dalam bentuk Pseudo R/C sebesar Rp62.000.000 untuk pembelian 85 unit armada transportasi.

Based on Deed of Loan Agreement No. 97 dated on February 28, 2014 by Drs. Slamet Wahjudi, SH., M.Kn., Notary in Gresik, which was amended until amendment IX dated January 8, 2015, PT Bank Rakyat Indonesia (Persero) Tbk, provided a loan facility in the form of Pseudo R/C amounting to Rp62,000,000 for the purchase of 85 units of the transport fleet.

Jangka waktu kredit 60 bulan sejak 28 Pebruari 2014 dengan tingkat suku bunga sebesar 10,25% per tahun bersifat reviewable disesuaikan dengan tingkat suku bunga yang berlaku di PT Bank Rakyat Indonesia (Persero) Tbk. Kredit ini dijamin dengan 85 unit Truk baru yang dibiayai oleh fasilitas ini dengan nilai Rp76.041.981, persediaan dengan nilai Rp1.000.000, piutang usaha dengan nilai Rp10.000.000, dan agunan tambahan berupa 369 truk serta tanah dan bangunan dengan nilai Rp65.609.496.

The loan maturity is 60 months from February 28, 2014 with interest rate of 10.25% per year and is subject to review and adjusted to the prevailing interest rates of PT Bank Rakyat Indonesia (Persero) Tbk. This loan facility is guarateed by 85 units of new truck financed by this facility amounting to Rp76,041,981, inventory amounting to Rp1,000,000, accounts receivable amounting to Rp10,000,000 and additional collateral of 369 trucks and land & buildings amounting to Rp65,609,496.

Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman masing-masing sebesar RpNihil dan Rp16.800.000. Pembayaran utang bank terkait dengan fasilitas ini pada tahun 2018 dan 2017 masing-masing sebesar Rp16.800.000 dan Rp13.100.000.

As of December 31, 2018 and 2017, the outstanding balance for this loan amounted to RpNil and Rp16,800,000, respectively. The payment of bank loan related with this facility in 2018 and 2017 amounted to Rp16,800,000 and Rp13,100,000 respectively.

Tidak terdapat persyaratan rasio keuangan yang harus dipenuhi oleh SIL berdasarkan perjanjian ini.

There are no requirements on financial ratio that must be fulfilled by SIL based on this agreement.

Berdasarkan Akta No. 39 atas persetujuan membuka kredit tertanggal 18 November 2013, yang diibuat oleh Anis Mohamad, Notaris di Gresik, entitas anak SIL, SID memperoleh fasilitas kredit untuk jaminan atas pembelian dan pengiriman produk dari Perseroan kepada Distributor. Pada tahun 2017 sesuai dengan SPPK No. R.1069/KC/IX/ADK/12/2017 limit kredit fasilitas pinjaman dirubah menjadi Rp20.000.000 dengan jangka waktu sampai dengan tanggal 29 Desember 2018. SID juga memperoleh fasilitas kredit investasi sebesar Rp6.500.000 dengan jangka waktu sampai dengan 28 Desember 2021.

Based on the Deed No. 39 about the opening credits approval dated November 18, 2013, which are rendered by Anis Mohamad, Notary in Gresik, a subsidiary of SIL, SID obtained a credit facility for guarantee on the purchase and delivery of products from the Distributor. In 2017, the credit limit of the facility was increased to Rp20,000,000 by SPPK No. R.1069/KC/IX/ADK/12/2017 and was due on December 29, 2018. SID also obtained an investment credit facility of Rp6,500,000 which will due on December 28, 2021.

Fasilitas ini dijamin dengan: 1. Piutang Usaha sebesar Rp25.000.000. 2. Persediaan sebesar Rp12.827.715.

This facility is secured by: 1. Accounts Receivable amounting to

Rp25,000,000.

2. Inventories amounting to Rp12,827,715.







(Continued)

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PT Bank Rakyat Indonesia Tbk PT Bank Rakyat Indonesia Tbk PT Semen Indonesia Logistik (SIL) dan Entitas Anak

PT Semen Indonesia Logistik (SIL) and its Subsidiaries

Berdasarkan Akta Perjanjian Utang No. 97 tanggal 28 Pebruari 2014 dari Drs. Slamet Wahjudi, SH., MKn., Notaris di Gresik yang telah diadendum sampai dengan adendum IX tanggal 8 Januari 2015, PT Bank Rakyat Indonesia (Persero) Tbk, memberikan fasilitas kredit investasi dalam bentuk Pseudo R/C sebesar Rp62.000.000 untuk pembelian 85 unit armada transportasi.

Based on Deed of Loan Agreement No. 97 dated on February 28, 2014 by Drs. Slamet Wahjudi, SH., M.Kn., Notary in Gresik, which was amended until amendment IX dated January 8, 2015, PT Bank Rakyat Indonesia (Persero) Tbk, provided a loan facility in the form of Pseudo R/C amounting to Rp62,000,000 for the purchase of 85 units of the transport fleet.

Jangka waktu kredit 60 bulan sejak 28 Pebruari 2014 dengan tingkat suku bunga sebesar 10,25% per tahun bersifat reviewable disesuaikan dengan tingkat suku bunga yang berlaku di PT Bank Rakyat Indonesia (Persero) Tbk. Kredit ini dijamin dengan 85 unit Truk baru yang dibiayai oleh fasilitas ini dengan nilai Rp76.041.981, persediaan dengan nilai Rp1.000.000, piutang usaha dengan nilai Rp10.000.000, dan agunan tambahan berupa 369 truk serta tanah dan bangunan dengan nilai Rp65.609.496.

The loan maturity is 60 months from February 28, 2014 with interest rate of 10.25% per year and is subject to review and adjusted to the prevailing interest rates of PT Bank Rakyat Indonesia (Persero) Tbk. This loan facility is guarateed by 85 units of new truck financed by this facility amounting to Rp76,041,981, inventory amounting to Rp1,000,000, accounts receivable amounting to Rp10,000,000 and additional collateral of 369 trucks and land & buildings amounting to Rp65,609,496.

Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman masing-masing sebesar RpNihil dan Rp16.800.000. Pembayaran utang bank terkait dengan fasilitas ini pada tahun 2018 dan 2017 masing-masing sebesar Rp16.800.000 dan Rp13.100.000.

As of December 31, 2018 and 2017, the outstanding balance for this loan amounted to RpNil and Rp16,800,000, respectively. The payment of bank loan related with this facility in 2018 and 2017 amounted to Rp16,800,000 and Rp13,100,000 respectively.

Tidak terdapat persyaratan rasio keuangan yang harus dipenuhi oleh SIL berdasarkan perjanjian ini.

There are no requirements on financial ratio that must be fulfilled by SIL based on this agreement.

Berdasarkan Akta No. 39 atas persetujuan membuka kredit tertanggal 18 November 2013, yang diibuat oleh Anis Mohamad, Notaris di Gresik, entitas anak SIL, SID memperoleh fasilitas kredit untuk jaminan atas pembelian dan pengiriman produk dari Perseroan kepada Distributor. Pada tahun 2017 sesuai dengan SPPK No. R.1069/KC/IX/ADK/12/2017 limit kredit fasilitas pinjaman dirubah menjadi Rp20.000.000 dengan jangka waktu sampai dengan tanggal 29 Desember 2018. SID juga memperoleh fasilitas kredit investasi sebesar Rp6.500.000 dengan jangka waktu sampai dengan 28 Desember 2021.

Based on the Deed No. 39 about the opening credits approval dated November 18, 2013, which are rendered by Anis Mohamad, Notary in Gresik, a subsidiary of SIL, SID obtained a credit facility for guarantee on the purchase and delivery of products from the Distributor. In 2017, the credit limit of the facility was increased to Rp20,000,000 by SPPK No. R.1069/KC/IX/ADK/12/2017 and was due on December 29, 2018. SID also obtained an investment credit facility of Rp6,500,000 which will due on December 28, 2021.

Fasilitas ini dijamin dengan: 1. Piutang Usaha sebesar Rp25.000.000. 2. Persediaan sebesar Rp12.827.715.

This facility is secured by: 1. Accounts Receivable amounting to

Rp25,000,000.

2. Inventories amounting to Rp12,827,715.





(Continued)

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3. Beberapa bidang tanah dengan sertifikat SHGB No 786, 787, 03, 04, 08 dan 02 yang berlokasi di Bekasi, Jember, Sukabumi dan Ciamis.

3. Several pieces of land with certificates number SHGB No 786, 787, 03, 04, 08 and 02 which are located at Bekasi, Jember, Sukabumi, and Ciamis.

Pada tanggal 31 Desember 2018 dan 2017 saldo utang bank terkait dengan fasilitas ini masing-masing sebesar Rp3.908.000 Rp5.204.000.

As of December 31, 2018 and 2017, loan outstanding from these fascilities amounted to Rp3,908,000 and Rp5,204,000, respectively.

Bank Sindikasi - PT Bank Mandiri (Persero) Tbk

Syndicated Banks - PT Bank Mandiri (Persero) Tbk

PT Semen Padang (SP) PT Semen Padang (SP) Pada tahun 2014, SP dengan PT Bank Mandiri (Persero) Tbk melakukan perjanjian kredit sindikasi berdasarkan Akta Perjanjian No. 12 tanggal 8 Mei 2014. Pinjaman diberikan kepada SP untuk pembiayaan proyek Indarung VI dengan jangka waktu fasilitas kredit selama 42 bulan dan tanggal jatuh tempo kredit adalah 8 tahun sejak tanggal penandatanganan.

In 2014, SP entered into syndicated credit agreement with PT Bank Mandiri (Persero) Tbk based on Deed No. 12, dated May 8, 2014. The loan granted to SP to finance projects with total investment of Indarung VI projects with credit term of 42 months and the loan maturity date is 8 years from the signing date.

Fasilitas kredit yang tersedia maksimum 53% dari total investasi proyek Indarung VI atau sebesar Rp1.950.000.000 yang terdiri dari:

Credit facilities available are at a maximum at 53% of the total Indarung VI project or amounting to Rp1,950,000,000 which consist of:

Fasilitas kredit investasi pokok dengan

jumlah maksimum Rp1.754.945.000 dengan sub limit fasilitas NCL adalah Rp1.000.000.000 atau ekuivalennya dalam mata uang selain Rupiah.

Principal investment credit facility amounting maximum to Rp1,754,945,000 with sub-limit NCL facility of Rp1,000,000,000 or its equivalents in currencies other than Rupiah.

Fasilitas kredit investasi bunga selama konstruksi (Interest During Construction) dengan jumlah maksimum sebesar Rp233.618.000 yang ditampung dalam rekening penampungan dan dikelola oleh Bank Mandiri selaku escrow agent dengan tetap mempertahankan komposisi 53:47 dari pinjaman.

Investment credit facility interest during construction with maximum amount of Rp233,618,000 which was placed in the escrow account managed with Bank Mandiri as escrow agent by maintaining a 53:47 composition of the loan.

Suku bunga untuk fasilitas ini berdasarkan time deposit 3 bulan. PT Bank Mandiri (Persero) Tbk membebankan bunga selama konstruksi (KI IDC) setiap 3 bulan yang akan digunakan sebagai dasar pencatatan bunga selama konstruksi dan pengakuan pendapatan bunga kreditur. Bunga selama masa konstruksi sebesar 55% berasal dari self financing tetap harus dibayar oleh Debitur, dan sebesar 45% dicatatkan sebagai tambahan outstanding fasilitas KI IDC.

i. Interest rate of this facility is estimated based on three months time deposit. PT Bank Mandiri (Persero) Tbk charged the interest during construction (KI IDC) every three months which is used as the basis to record the interest expenses during construction and creditor interest income recognition. Interest expenses during construction for 55% comes from self financing that must be paid by Debtor, and for 45% recorded as the additional outstanding investment credit facility KI IDC.







(Continued)

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Jumlah nilai agunan tidak kurang dari 142,8% dari total fasilitas kredit yang berupa jaminan fidusia atas bangunan-bangunan, mesin-mesin, peralatan dan perlengkapan terkait kontrak suplier Paket 1A, Paket 1B, Paket II, Paket III, Paket IV, Paket V Proyek Indarung VI, tagihan rekening penampungan, klaim asuransi, tagihan bank garansi dari Kontraktor atau Suplier serta jaminan fidusia atas bangunan-bangunan, mesin-mesin, peralatan dan perlengkapan terkait kontrak suplier paket lainnya yang ada dan yang akan ada di kemudian hari yang nantinya akan berada di lokasi Proyek Indarung VI.

The amount of collateral is not less than 142.8% of the total credit facility consisting of collateral in the form of buildings, machinery, equipment and related supplies contract Suppliler Package 1A, Package 1B, Package II, Package III, Package IV, Package V, Indarung VI project, bill escrow account, insurance claim, bank guarantee on the bill of the Contractor or Supplier and Fiduciary on buildings, machinery, equipment and related supplies contract leads other packages available and that there will be at a later date which will be located at the Project site Indarung VI.

Fasilitas ini mensyaratkan SP untuk memelihara rasio keuangan tertentu.

This facilities require SP to maintain certain financial ratios.

Pada tanggal 23 Agustus 2018, SP telah melunasi seluruh pinjaman ini. Saldo utang Bank Sindikasi pada tanggal 31 Desember 2017 sebesar Rp1.405.338.495, dan disajikan secara neto setelah dikurangi dengan biaya pinjaman yang belum diamortisasi sebesar Rp10.363.786.

On August 23, 2018, this loan has full been fully paid by SP. The syndicated loan balance as of December 31, 2017 amounted to Rp1,405,338,495 and is presented net of an unamortized transaction cost of loan amounting to Rp10,363,786.

21. UTANG OBLIGASI 21. BONDS PAYABLE

2018 2017

Pokok pinjaman 3.000.000.000 3.000.000.000 Principal loanBiaya transaksi yang belum diamortisasi (5.098.390) (6.295.641) Unamortized transaction cost

Jumlah 2.994.901.610 2.993.704.359 Total

Pada bulan Juni 2017, Perseroan telah menerbitkan Obligasi melalui Penawaran Umum Berkelanjutan Obligasi I Semen Indonesia (PUB I) Tahap I Tahun 2017 dengan jumlah pokok sebesar Rp3.000.000.000 dan jangka waktu lima tahun sejak tanggal emisi. Obligasi diperdagangkan di Bursa Efek Indonesia dan mendapatkan peringkat AA+ dari PT Pemeringkat Efek Indonesia (Pefindo).

In June 2017, the Company issued Bonds through a Semen Indonesia Sustainable Bond Offering I (PUB I) Phase I Year 2017 with a principal amount of Rp3,000,000,000 and a term of five years from the date of issuance. This Bonds is traded on the Indonesia Stock Exchange and was given a rating of rating AA+ by PT Pemeringkat Efek Indonesia (Pefindo).

Obligasi ditawarkan dengan nilai 100% dari jumlah pokok obligasi dengan tingkat bunga tetap sebesar 8,60% per tahun dan dibayarkan setiap tiga bulan. Obligasi akan jatuh tempo pada tanggal 20 Juni 2022. Bertindak selaku wali amanat adalah PT Bank Tabungan Negara (Persero) Tbk.

Bonds are offered at 100% of the principal amount of the bonds with a fixed interest rate of 8.60% per annum and is paid quarterly. The Bonds will mature on June 20, 2022. Acting as a trustee is PT Bank Tabungan Negara (Persero) Tbk.

Utang obligasi tersebut ditujukan untuk pelunasan utang kredit sindikasi dan modal kerja dalam rangka pembiayaan operasional.

The bonds are intended for the repayment of syndicated loan and working capital in the framework of operational financing.

Obligasi ini tidak dijamin dengan agunan khusus, tetapi dijamin dengan jaminan yang bersifat umum. Hak pemegang obligasi adalah paripassu tanpa hak preferen dengan hak-hak kreditur Perseroan lainnya baik yang ada sekarang maupun di kemudian hari, kecuali hak-hak kreditur Perseroan yang dijamin secara khusus dengan kekayaan Perseroan baik yang telah ada maupun yang akan ada dikemudian hari.

These bonds are not secured by special collateral, but are guaranteed by general guarantees. The right of the bondholder is paripassu without any preferential rights with the rights of the other creditors of the Company, either present or in the future, except for the rights of the creditor of the Company which is specifically guaranteed by the Company's existing and future wealth.







(Continued)

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Jumlah nilai agunan tidak kurang dari 142,8% dari total fasilitas kredit yang berupa jaminan fidusia atas bangunan-bangunan, mesin-mesin, peralatan dan perlengkapan terkait kontrak suplier Paket 1A, Paket 1B, Paket II, Paket III, Paket IV, Paket V Proyek Indarung VI, tagihan rekening penampungan, klaim asuransi, tagihan bank garansi dari Kontraktor atau Suplier serta jaminan fidusia atas bangunan-bangunan, mesin-mesin, peralatan dan perlengkapan terkait kontrak suplier paket lainnya yang ada dan yang akan ada di kemudian hari yang nantinya akan berada di lokasi Proyek Indarung VI.

The amount of collateral is not less than 142.8% of the total credit facility consisting of collateral in the form of buildings, machinery, equipment and related supplies contract Suppliler Package 1A, Package 1B, Package II, Package III, Package IV, Package V, Indarung VI project, bill escrow account, insurance claim, bank guarantee on the bill of the Contractor or Supplier and Fiduciary on buildings, machinery, equipment and related supplies contract leads other packages available and that there will be at a later date which will be located at the Project site Indarung VI.

Fasilitas ini mensyaratkan SP untuk memelihara rasio keuangan tertentu.

This facilities require SP to maintain certain financial ratios.

Pada tanggal 23 Agustus 2018, SP telah melunasi seluruh pinjaman ini. Saldo utang Bank Sindikasi pada tanggal 31 Desember 2017 sebesar Rp1.405.338.495, dan disajikan secara neto setelah dikurangi dengan biaya pinjaman yang belum diamortisasi sebesar Rp10.363.786.

On August 23, 2018, this loan has full been fully paid by SP. The syndicated loan balance as of December 31, 2017 amounted to Rp1,405,338,495 and is presented net of an unamortized transaction cost of loan amounting to Rp10,363,786.

21. UTANG OBLIGASI 21. BONDS PAYABLE

2018 2017

Pokok pinjaman 3.000.000.000 3.000.000.000 Principal loanBiaya transaksi yang belum diamortisasi (5.098.390) (6.295.641) Unamortized transaction cost

Jumlah 2.994.901.610 2.993.704.359 Total

Pada bulan Juni 2017, Perseroan telah menerbitkan Obligasi melalui Penawaran Umum Berkelanjutan Obligasi I Semen Indonesia (PUB I) Tahap I Tahun 2017 dengan jumlah pokok sebesar Rp3.000.000.000 dan jangka waktu lima tahun sejak tanggal emisi. Obligasi diperdagangkan di Bursa Efek Indonesia dan mendapatkan peringkat AA+ dari PT Pemeringkat Efek Indonesia (Pefindo).

In June 2017, the Company issued Bonds through a Semen Indonesia Sustainable Bond Offering I (PUB I) Phase I Year 2017 with a principal amount of Rp3,000,000,000 and a term of five years from the date of issuance. This Bonds is traded on the Indonesia Stock Exchange and was given a rating of rating AA+ by PT Pemeringkat Efek Indonesia (Pefindo).

Obligasi ditawarkan dengan nilai 100% dari jumlah pokok obligasi dengan tingkat bunga tetap sebesar 8,60% per tahun dan dibayarkan setiap tiga bulan. Obligasi akan jatuh tempo pada tanggal 20 Juni 2022. Bertindak selaku wali amanat adalah PT Bank Tabungan Negara (Persero) Tbk.

Bonds are offered at 100% of the principal amount of the bonds with a fixed interest rate of 8.60% per annum and is paid quarterly. The Bonds will mature on June 20, 2022. Acting as a trustee is PT Bank Tabungan Negara (Persero) Tbk.

Utang obligasi tersebut ditujukan untuk pelunasan utang kredit sindikasi dan modal kerja dalam rangka pembiayaan operasional.

The bonds are intended for the repayment of syndicated loan and working capital in the framework of operational financing.

Obligasi ini tidak dijamin dengan agunan khusus, tetapi dijamin dengan jaminan yang bersifat umum. Hak pemegang obligasi adalah paripassu tanpa hak preferen dengan hak-hak kreditur Perseroan lainnya baik yang ada sekarang maupun di kemudian hari, kecuali hak-hak kreditur Perseroan yang dijamin secara khusus dengan kekayaan Perseroan baik yang telah ada maupun yang akan ada dikemudian hari.

These bonds are not secured by special collateral, but are guaranteed by general guarantees. The right of the bondholder is paripassu without any preferential rights with the rights of the other creditors of the Company, either present or in the future, except for the rights of the creditor of the Company which is specifically guaranteed by the Company's existing and future wealth.





(Continued)

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22. LIABILITAS SEWA PEMBIAYAAN 22. FINANCE LEASE LIABILITIES Pembayaran sewa minimum masa datang atas liabilitas sewa pembiayaan dan nilai kini dari pembayaran sewa minimum adalah sebagai berikut:

Future minimum lease payments under finance leases together with the present value of the net minimum lease payments are as follows:

2018 2017 2018 2017a. Berdasarkan pembayaran minimum a. Minimum lease payments

sew a adalah sebagai berikut: are as follow s:Akan jatuh tempo dalam: Due w ithin:

1 tahun 183.426.334 245.294.768 88.384.638 73.447.182 1 year1 - 5 tahun 426.390.639 613.671.753 149.827.019 402.189.730 1 - 5 yearsLebih dari 5 tahun 497.993.216 600.437.804 123.465.849 39.591.100 Over 5 years

Jumlah pembayaran sew a Total future minimum lease masa depan 1.107.810.189 1.459.404.325 361.677.506 515.228.012 payments

Dikurangi beban keuangandi masa depan (746.132.682) (944.176.313) - - Less: future f inance charges

Nilai kini pembayaran Present value of minimum leaseminimum sew a 361.677.507 515.228.012 361.677.506 515.228.012 payments

Bagian yang jatuh tempodalam satu tahun (88.384.638) (125.271.821) Current maturities

Kewajiban Sewa Jangka Long-term LeasePanjang - Bersih 273.292.868 389.956.191 Liabilities - Net

Nilai kini pembayaran

Pembayaran minimum sewa/M inimum lease payments M inimum lease payments

Present value ofminimum sewa/

2018 2017

b. Berdasarkan lessor b. By lessor:Bangunan Buildings

Dana Pensiun Semen Gresik 10.864.086 - Dana Pensiun Semen GresikPT PBM Biringkasi Raya 9.497.433 39.591.100 PT PBM Biringkasi Raya

Kendaraan Motor vehiclesPT Mitsubishi UFJ Lease & Finance 12.101.196 15.361.974 PT Mitsubishi UFJ Lease & FinancePT United Tractors Pandu PT United Tractors Pandu

Engineering 6.035.767 8.009.278 EngineeringPT Serasi Auto Raya 5.178.116 9.859.012 PT Serasi Auto RayaPT Go Rental 2.376.620 4.664.036 PT Go RentalPT Karang Putih Sejati 1.952.843 2.673.485 PT Karang Putih SejatiPT Adi Sarana Armada Tbk 1.898.316 2.998.985 PT Adi Sarana Armada TbkPT BTMU BRI Finance 1.100.843 2.505.235 PT BTMU BRI FinancePT Bara Bentala Indonesia 698.422 2.640.878 PT Bara Bentala IndonesiaKoperasi Karyaw an Semen Tonasa 250.893 1.050.370 Koperasi Karyaw an Semen TonasaPT Hino Finance Indonesia - 15.201.542 PT Hino Finance IndonesiaPT Indomobil Finance - 6.696.013 PT Indomobil FinancePT Orix Indonesia Finance - 6.687.788 PT Orix Indonesia FinancePT Toyota Astra Financial Service - 4.944 PT Toyota Astra Financial Service

Kapal VesselsPT Pelayaran Tonasa Lines 286.302.685 346.504.082 PT Pelayaran Tonasa LinesPT Indobaruna Bulk Transport 4.493.113 12.677.218 PT Indobaruna Bulk TransportPT Sw adaya Lestari Lines 495.514 6.199.328 PT Sw adaya Lestari Lines

Alat berat Heavy equipmentPT Takari Kokoh Sejahtera 10.014.678 14.046.243 PT Takari Kokoh SejahteraPT Astra Sedayu Finance 8.416.981 17.856.501 PT Astra Sedayu Finance

Total liabilitas sew a pembiayaan 361.677.506 515.228.012 Total f inance lease liabilitiesDikurangi bagian yang jatuh tempo

dalam w aktu satu tahun (88.384.638) (125.271.821) Less current maturities

Bagian jangka panjang 273.292.868 389.956.191 Long-term liabilities

Nilai kini pembayaranminimum sewa/Present value of

minimum lease payments







(Continued)

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Selama tahun 2018 dan 2017, liabilitas sewa pembiayaan dikenakan bunga masing-masing yang berkisar antara 6,13% - 28,96% per tahun dan 5,54% - 26,36% per tahun.

In 2018 and 2017, the financial leases are subject to interest at rates ranging from 6.13% - 28.96% per annum and 5.54% - 26.36% per annum, respectively.

Dana Pensiun Semen Gresik, Koperasi Karyawan Semen Tonasa, Yayasan Kesejahteraan Semen Tonasa, PT Pelayaran Tonasa Lines, dan PT PBM Biringkasi Raya adalah pihak berelasi (Catatan 43).

Dana Pensiun Semen Gresik, Koperasi Karyawan Semen Tonasa, Yayasan Kesejahteraan Semen Tonasa, PT Pelayaran Tonasa Lines, and PT PBM Biringkasi Raya are related parties (Note 43).

23. UTANG USAHA 23. TRADE PAYABLES


Rupiah 3.239.192.986 3.486.068.909 RupiahDong Vietnam 330.906.132 315.589.856 Vietnamese DongEuro 121.217.059 161.265.985 EuroDolar Amerika Serikat 76.880.639 106.512.693 United States DollarsYen 488.727 24.409 YenMata uang asing lainnya 547.073 727.450 Other foreign currencies


Pihak berelasi: Related parties:Rupiah 692.357.283 853.484.814 RupiahDong Vietnam 12.361.173 7.258 Vietnamese DongEuro 2.197.706 2.894.740 EuroDolar Amerika Serikat - 500.841 United States Dollars


Jumlah 4.476.148.778 4.927.076.955 Total

Umur utang usaha adalah sebagai berikut: The aging of trade payables is as follows:

2018 2017

Lancar 3.710.716.950 2.740.980.308 CurrentLew at jatuh tempo: Overdue:

1 - 45 hari 113.992.744 1.562.203.334 1 - 45 days46 - 135 hari 297.382.027 271.267.771 46 - 135 days136 - 365 hari 231.641.748 275.474.686 136 - 365 daysLebih dari 365 hari 122.415.309 77.150.856 Over 365 days

Jumlah 4.476.148.778 4.927.076.955 Total

Utang usaha berasal dari pembelian barang dan jasa. Untuk rincian transaksi dan saldo dengan pihak berelasi diungkapkan dalam Catatan 43.

The trade payables involve purchases of goods and services. Details of related party transactions and balances are disclosed in Note 43.

24. UTANG LAIN-LAIN 24. OTHER PAYABLES a. Utang Lain-lain - Lancar a. Other Payables – Current

2018 2017

Pihak ketiga: Third parties:Utang potongan gaji karyaw an 80.108.895 45.955.763 Salary deduction payablesUtang pembelian aset tetap 30.538.868 68.651.863 Purchase of f ixed assets payablesUang titipan 16.676.570 37.954.679 Deposits receivedLainnya 134.265.973 83.679.534 Others



Jumlah 308.319.709 322.466.957 Total







(Continued)

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Selama tahun 2018 dan 2017, liabilitas sewa pembiayaan dikenakan bunga masing-masing yang berkisar antara 6,13% - 28,96% per tahun dan 5,54% - 26,36% per tahun.

In 2018 and 2017, the financial leases are subject to interest at rates ranging from 6.13% - 28.96% per annum and 5.54% - 26.36% per annum, respectively.

Dana Pensiun Semen Gresik, Koperasi Karyawan Semen Tonasa, Yayasan Kesejahteraan Semen Tonasa, PT Pelayaran Tonasa Lines, dan PT PBM Biringkasi Raya adalah pihak berelasi (Catatan 43).

Dana Pensiun Semen Gresik, Koperasi Karyawan Semen Tonasa, Yayasan Kesejahteraan Semen Tonasa, PT Pelayaran Tonasa Lines, and PT PBM Biringkasi Raya are related parties (Note 43).

23. UTANG USAHA 23. TRADE PAYABLES


Rupiah 3.239.192.986 3.486.068.909 RupiahDong Vietnam 330.906.132 315.589.856 Vietnamese DongEuro 121.217.059 161.265.985 EuroDolar Amerika Serikat 76.880.639 106.512.693 United States DollarsYen 488.727 24.409 YenMata uang asing lainnya 547.073 727.450 Other foreign currencies


Pihak berelasi: Related parties:Rupiah 692.357.283 853.484.814 RupiahDong Vietnam 12.361.173 7.258 Vietnamese DongEuro 2.197.706 2.894.740 EuroDolar Amerika Serikat - 500.841 United States Dollars


Jumlah 4.476.148.778 4.927.076.955 Total

Umur utang usaha adalah sebagai berikut: The aging of trade payables is as follows:

2018 2017

Lancar 3.710.716.950 2.740.980.308 CurrentLew at jatuh tempo: Overdue:

1 - 45 hari 113.992.744 1.562.203.334 1 - 45 days46 - 135 hari 297.382.027 271.267.771 46 - 135 days136 - 365 hari 231.641.748 275.474.686 136 - 365 daysLebih dari 365 hari 122.415.309 77.150.856 Over 365 days

Jumlah 4.476.148.778 4.927.076.955 Total

Utang usaha berasal dari pembelian barang dan jasa. Untuk rincian transaksi dan saldo dengan pihak berelasi diungkapkan dalam Catatan 43.

The trade payables involve purchases of goods and services. Details of related party transactions and balances are disclosed in Note 43.

24. UTANG LAIN-LAIN 24. OTHER PAYABLES a. Utang Lain-lain - Lancar a. Other Payables – Current

2018 2017

Pihak ketiga: Third parties:Utang potongan gaji karyaw an 80.108.895 45.955.763 Salary deduction payablesUtang pembelian aset tetap 30.538.868 68.651.863 Purchase of f ixed assets payablesUang titipan 16.676.570 37.954.679 Deposits receivedLainnya 134.265.973 83.679.534 Others



Jumlah 308.319.709 322.466.957 Total





(Continued)

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Utang lain-lain kepada pihak berelasi terutama berkaitan dengan transaksi penyediaan jasa untuk proyek pembangunan pabrik baru dan pembelian aset tetap lainnya. Untuk rincian transaksi dan saldo dengan pihak berelasi diungkapkan dalam Catatan 43.

Other payables to related parties mainly pertain to the services for the construction of new plants and other fixed assets. Details of related party transactions and balances are disclosed in Note 43.

b. Liabilitas Jangka Panjang Lainnya b. Other Non-Current Liabilities

2018 2017

Provisi kontrak asuransi Provison on qualif iying insurance kualif ikasian (Catatan 42) 175.643.823 - contract (Note 42)

Pembelian investasi 23.178.830 36.533.412 Purchase of investmentPendapatan sew a jangka panjang Long-term unearned

yang ditangguhkan 7.846.915 7.746.916 rental incomePendapatan tangguhan 1.073.557 2.526.312 Deferred income

Jumlah 207.743.125 46.806.640 Total

25. BEBAN AKRUAL 25. ACCRUED EXPENSES

2018 2017

Pengangkutan 181.161.611 115.269.442 TransportationJasa profesional 163.154.490 35.627.600 Professional feesPemeliharaan 158.561.641 72.314.254 MaintenancePromosi peningkatan penjualan 58.119.220 149.877.033 Sales promotionBeban pengantongan 39.779.907 21.885.039 Packer feesAsuransi, sew a dan ekspedisi 38.730.900 16.779.288 Insurance, rent and expeditionBiaya operasional 27.670.031 34.899.863 Operational expenseBunga 21.365.092 24.125.994 InterestListrik 8.110.168 6.125.964 ElectricityBina lingkungan 6.204.995 8.430.465 Community developmentRetribusi pertambangan 4.935.966 6.369.801 Mining rights feesLain-lain (di baw ah Rp1.000.000) 193.635.442 138.348.930 Others (each below Rp1,000,000)

Jumlah 901.429.463 630.053.673 Total

26. UTANG PAJAK 26. TAXES PAYABLE

2018 2017

Perseroan The CompanyPPh badan (Catatan 40) 2.366.506 - Corporate Income tax (Note 40)Utang pajak lain Other taxes payable

Pajak Pertambahan Nilai 80.840.954 1.296.830 Value Added TaxPPh Pasal 21 12.067.556 7.154.452 Income tax Article 21PPh Pasal 22 5.985.485 230.936 Income tax Article 22PPh Pasal 23 dan 26 679.420 712.523 Income tax Articles 23 and 26PPh Pasal 25 - 48.158.367 Income tax Article 25Pajak Penghasilan Final 809.896 2.263.027 Final income tax


Entitas anak SubsidiariesPPh badan 145.721.320 25.887.741 Corporate Income taxUtang pajak lain: Other taxes payable:

PPh Pasal 21 25.856.769 38.911.697 Income tax Article 21PPh Pasal 23 dan 26 17.297.282 20.019.038 Income tax Articles 23 and 26PPh Pasal 22 3.772.379 16.082.801 Income tax Article 22Pajak Penghasilan Final 1.406.037 6.775.645 Final income taxPajak Bumi dan Bangunan 6.263.494 1.400.381 Land and Building TaxPajak Pertambahan Nilai 45.240.978 71.960.673 Value Added TaxLain-lain 14.475.257 4.833.605 Others


Jumlah 362.783.333 245.687.716 Total







(Continued)

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Pada tanggal 31 Januari 2018, Perseroan memperoleh surat penegasan perlakuan perpajakan KSO dengan No. S-42/PJ/2018 dari Direktorat Jenderal Pajak. Perseroan saat ini masih memperlakukan mekanisme perpajakan pada KSO tersebut sesuai dengan surat No. S-8215/WPJ.19/KP.03/2013 tanggal 7 Juni 2013 dari Kantor Pelayanan Pajak Wajib Pajak Besar Tiga. Pada tanggal 19 Desember 2018, Perusahaan telah mengirimkan surat kepada Dirjen Pajak terkait dengan perlakuan perpajakan atas KSO. Sampai dengan tanggal penerbitan laporan keuangan konsolidasian ini, hasil dari klarifikasi kedua surat ini belum dapat diketahui atau diestimasi oleh manajemen.

On January 31, 2018, the Company received affirmation letter No. S-42/PJ/2018 from Directorate General of Taxation about the treatment of taxation in KSO. Currently, such treatment of taxation mechanism by the Company in KSO are in accordance with letter No. S-8215/WPJ.19/KP.03/2013 dated June 7, 2013 from Tax Service Office Large Taxpayer Three. On December 19, 2018, the Company has sent response letter to Directorate General of Taxation about the threatment of taxation in KSO. As of the issuance date of these consolidated financial statements, the results of the clarifications of these two letters have not been determined or estimated by management.

Perseroan ditunjuk sebagai Wajib Pajak Pungut (“WAPU”) Pajak Penghasilan PPh 22 berdasarkan Peraturan Menteri Keuangan (PMK) No. 107/PMK.10/2015 tentang Penunjukan Badan Usaha Milik Negara sebagai WAPU Pajak Penghasilan PPh 22 oleh Direktorat Jenderal Pajak pada tanggal 9 Juni 2015, yang berlaku efektif pada tanggal 8 Agustus 2015.

The Company was appointed as an income tax Article 22 collector ("WAPU") based on the Ministry of Finance regulation (PMK) No. 107/PMK.10/2015 concerning the appointment of State Owned Enterprises as WAPU Income Tax Article. 22 by Directorate General of Taxes (DGT) on June 9, 2015, effective on August 8, 2015.

Perseroan ditunjuk sebagai Wajib Pajak Pungut (“WAPU”) Pajak Pertambahan Nilai berdasarkan Peraturan Menteri Keuangan (PMK) Nomor: 85/PMK.03/2012 tentang Penunjukan Badan Usaha Milik Negara sebagai WAPU Pajak Pertambahan Nilai oleh Direktorat Jenderal Pajak pada tanggal 20 Juni 2012, yang berlaku efektif per tanggal 1 Juli 2012.

The Company was appointed as a value added tax collector ("WAPU") based on the Ministry of Finance regulation (PMK) Number: 85/PMK.03/2012 concerning the appointment of State Owned Enterprises as WAPU VAT by Directorate General of Taxes (DGT) on June 20, 2012, effective on July 1, 2012.

27. UANG MUKA PENJUALAN 27. SALES ADVANCES Uang muka penjualan merupakan uang muka yang diterima dari pelanggan entitas anak (IKSG, SIL, KIG, UTSG, KSI dan SIB) dalam rangka penjualan kantong semen, semen, tanah kawasan industri, pekerjaan reklamasi, bahan baku semen, dan beton siap pakai.

Sales advances represent receipts from subsidiaries’ (IKSG, SIL, KIG, UTSG, KSI and SIB) customers for sale of cement bag, cement, industrial real estate land, reclamation service, cement materials, and readymix concrete.

28. PROVISI JANGKA PANJANG 28. LONG-TERM PROVISIONS

ProvisiNilai tambahan Jumlah

(pengurangan)/ yang digunakan Penyesuaian Nilaitercatat awal/ Additional dan penyesuaian/ nilai kini tercatat akhir/Beginning (deduction) Amount realized Present value Ending

balance provision and adjustment adjsutment balance

Restorasi tanah tambang 118.336.623 (7.804.417) (4.320.892) 3.233.066 109.444.380 Quarry restorationEstimasi biaya pembongkaran Estimated cost of dismantling

aset tetap 105.698.951 10.287.502 (2.402.717) 5.159.930 118.743.666 of fixed assets

Jumlah 224.035.574 2.483.085 (6.723.609) 8.392.996 228.188.046 Total

JumlahNilai Provisi yang digunakan Penyesuaian Nilai

tercatat awal/ tambahan/ dan penyesuaian/ nilai kini tercatat akhir/Beginning Additional Amount realized Present value Ending


Restorasi tanah tambang 113.074.539 2.779.733 (3.947.601) 6.429.952 118.336.623 Quarry restorationEstimasi biaya pembongkaran Estimated cost of dismantling


Jumlah 182.760.693 33.129.821 (7.029.516) 15.174.576 224.035.574 Total

31 Desember 2018 / December 31, 2018








(Continued)

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Pada tanggal 31 Januari 2018, Perseroan memperoleh surat penegasan perlakuan perpajakan KSO dengan No. S-42/PJ/2018 dari Direktorat Jenderal Pajak. Perseroan saat ini masih memperlakukan mekanisme perpajakan pada KSO tersebut sesuai dengan surat No. S-8215/WPJ.19/KP.03/2013 tanggal 7 Juni 2013 dari Kantor Pelayanan Pajak Wajib Pajak Besar Tiga. Pada tanggal 19 Desember 2018, Perusahaan telah mengirimkan surat kepada Dirjen Pajak terkait dengan perlakuan perpajakan atas KSO. Sampai dengan tanggal penerbitan laporan keuangan konsolidasian ini, hasil dari klarifikasi kedua surat ini belum dapat diketahui atau diestimasi oleh manajemen.

On January 31, 2018, the Company received affirmation letter No. S-42/PJ/2018 from Directorate General of Taxation about the treatment of taxation in KSO. Currently, such treatment of taxation mechanism by the Company in KSO are in accordance with letter No. S-8215/WPJ.19/KP.03/2013 dated June 7, 2013 from Tax Service Office Large Taxpayer Three. On December 19, 2018, the Company has sent response letter to Directorate General of Taxation about the threatment of taxation in KSO. As of the issuance date of these consolidated financial statements, the results of the clarifications of these two letters have not been determined or estimated by management.

Perseroan ditunjuk sebagai Wajib Pajak Pungut (“WAPU”) Pajak Penghasilan PPh 22 berdasarkan Peraturan Menteri Keuangan (PMK) No. 107/PMK.10/2015 tentang Penunjukan Badan Usaha Milik Negara sebagai WAPU Pajak Penghasilan PPh 22 oleh Direktorat Jenderal Pajak pada tanggal 9 Juni 2015, yang berlaku efektif pada tanggal 8 Agustus 2015.

The Company was appointed as an income tax Article 22 collector ("WAPU") based on the Ministry of Finance regulation (PMK) No. 107/PMK.10/2015 concerning the appointment of State Owned Enterprises as WAPU Income Tax Article. 22 by Directorate General of Taxes (DGT) on June 9, 2015, effective on August 8, 2015.

Perseroan ditunjuk sebagai Wajib Pajak Pungut (“WAPU”) Pajak Pertambahan Nilai berdasarkan Peraturan Menteri Keuangan (PMK) Nomor: 85/PMK.03/2012 tentang Penunjukan Badan Usaha Milik Negara sebagai WAPU Pajak Pertambahan Nilai oleh Direktorat Jenderal Pajak pada tanggal 20 Juni 2012, yang berlaku efektif per tanggal 1 Juli 2012.

The Company was appointed as a value added tax collector ("WAPU") based on the Ministry of Finance regulation (PMK) Number: 85/PMK.03/2012 concerning the appointment of State Owned Enterprises as WAPU VAT by Directorate General of Taxes (DGT) on June 20, 2012, effective on July 1, 2012.

27. UANG MUKA PENJUALAN 27. SALES ADVANCES Uang muka penjualan merupakan uang muka yang diterima dari pelanggan entitas anak (IKSG, SIL, KIG, UTSG, KSI dan SIB) dalam rangka penjualan kantong semen, semen, tanah kawasan industri, pekerjaan reklamasi, bahan baku semen, dan beton siap pakai.

Sales advances represent receipts from subsidiaries’ (IKSG, SIL, KIG, UTSG, KSI and SIB) customers for sale of cement bag, cement, industrial real estate land, reclamation service, cement materials, and readymix concrete.

28. PROVISI JANGKA PANJANG 28. LONG-TERM PROVISIONS

ProvisiNilai tambahan Jumlah

(pengurangan)/ yang digunakan Penyesuaian Nilaitercatat awal/ Additional dan penyesuaian/ nilai kini tercatat akhir/Beginning (deduction) Amount realized Present value Ending


Restorasi tanah tambang 118.336.623 (7.804.417) (4.320.892) 3.233.066 109.444.380 Quarry restorationEstimasi biaya pembongkaran Estimated cost of dismantling


Jumlah 224.035.574 2.483.085 (6.723.609) 8.392.996 228.188.046 Total

JumlahNilai Provisi yang digunakan Penyesuaian Nilai

tercatat awal/ tambahan/ dan penyesuaian/ nilai kini tercatat akhir/Beginning Additional Amount realized Present value Ending


Restorasi tanah tambang 113.074.539 2.779.733 (3.947.601) 6.429.952 118.336.623 Quarry restorationEstimasi biaya pembongkaran Estimated cost of dismantling


Jumlah 182.760.693 33.129.821 (7.029.516) 15.174.576 224.035.574 Total







(Continued)

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Restorasi tanah tambang dilakukan setiap tahun sesuai dengan rencana reklamasi yang disampaikan kepada otoritas terkait. Pembongkaran aset tetap akan dilakukan pada saat selesainya masa sewa lahan terkait aset tetap tersebut.

Quarry restoration is carried out every year based on restoration plan reported to the authority. Dismantling of fixed assets will be realized at the end of land rent period of related fixed assets.

Penambahan provisi terkait atas aset tambang dan properti lainnya yang diperoleh selama tahun berjalan. Sedangkan peningkatan selama tahun berjalan berkaitan dengan penyesuaian atas provisi sebagai hasil dari pendiskontoan kewajiban tersebut.

Additional provision related to new mining and other properties acquired during the year, while the increase during the year pertains to adjustment made to the provision as the result of discounting the obligation.

29. MODAL SAHAM 29. SHARE CAPITAL Sesuai dengan daftar pemegang saham yang dikeluarkan oleh Biro Administrasi Efek, PT Datindo Entrycom, susunan pemegang saham Perseroan pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

Based on the list of shareholders issued by the Securities Administration Bureau, PT Datindo Entrycom, the Company’s shareholders and their ownership interests as of December 31, 2018 and 2017 are as follows:

Saham(ribuan lembar)/ Nilai Nominal

Shares Saham/(thousand Par value of % Kepemilikan/of shares) shares Ownership

Saham seri A Dw iw arna Series A Dw iw arna share:Pemerintah Negara Government of theRepublik Indonesia 0,001 0,1 0,00000020 Republic of Indonesia

Saham seri B Series B share:Pemerintah Negara Government of theRepublik Indonesia 3.025.406 302.540.600 51,00557697 Republic of Indonesia

Masyarakat (masing-masing dibaw ah 5%) 2.906.114 290.611.400 48,99000000 Public (each below 5%)

Jumlah 5.931.520 593.152.000 100,00 Total

2018 dan/and 2017

Berdasarkan Akta No. 61 tanggal 13 Oktober 2017, yang dibuat dihadapan Leolin Jayayanti, S.H.,M.Kn, Notaris di Jakarta, pemegang saham menyetujui perubahan Modal Dasar Perusahaan menjadi sebesar Rp2.000.000.000, terbagi atas 20.000.000.000 saham, yang terbagi dari 1 saham seri A Dwiwarna dan dan 19.999.999.999 saham seri B masing-masing saham dengan nilai nominal Rp100. Dari modal dasar telah ditempatkan sebesar Rp593.151.999, yang diambil bagian oleh Negara Republik Indonesia sebanyak 3.025.405.999 saham seri B atau sebesar Rp302.540.599 dan masyarakat sebanyak 2.906.114.000 saham seri B atau sebesar Rp290.611.400. Perusahaan telah menerima Surat Keputusan Menteri Hukum dan Hak Asasi Manusia Republik Indonesia No. AHU-002462.AH.01.02 Tahun 2017 tentang persetujuan perubahan anggaran dasar Perusahaan.

Based on Notarial Deed No. 61 dated October 13, 2017, by notary Leolin Jayayanti, S.H., M.Kn, notary in Jakarta, the stockholders have approved the change of the Company’s authorized capital to Rp2,000,000,000, which is divided into 20,000,000,000 shares, consisting of one share of series A Dwiwarna and 19,999,999,999 shares of series B, each shares with a par value of Rp100. From the authorized capital stock, Rp593,151,999 has been issued, which were acquired by the Republic of Indonesia about 3,025,405,999 series B shares or Rp302,540,599 and public with 2,906,114,000 series B shares or Rp290,611,400. The Company has received the Decision Letter No. AHU-002462.AH.01.02 from Minister of Law and Human Rights of the Republic of Indonesia Year 2017 related with the amendements of the Company article of association

Pemegang saham Seri A memperoleh hak istimewa tertentu sebagai tambahan diluar yang diperoleh saham Seri B. Hak istimewa tersebut mencakup hak menyetujui (a) perubahan anggaran dasar (b) pengangkatan dan pemberhentian anggota dewan komisaris dan direksi (c) persetujuan penggunaan laba (d) pemindah tangan asset (e) penyertaan dan pengurangan penyertaan modal (f) penggabungan, peleburan, pengambilalihan, pemisahan dan pembubaran.

The holder of Series A shares has certain special rights in addition to the rights held by the holders of the series B shares. These special rights include the right to approve (a) amendements to the Articles of Association, (b) the appointment and dismissal of the members of the Boards of commissioners and directors, (c) approval for use the Company’s net profits (d) transfer of assets (e) participation and disposal of investee (f) merger, acquisition, separation and liquidation.







(Continued)

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30. TAMBAHAN MODAL DISETOR 30. ADDITIONAL PAID-IN CAPITAL Pada 31 December 2018 dan 2017, akun ini terdiri dari:

As of December 31, 2018 and 2017, this account represents:

2018 2017

Agio saham 1.252.065.600 1.252.065.600 Share premiumBiaya emisi efek ekuitas (4.710.160) (4.710.160) Share issuance costsSelisih nilai perolehan dengan hasil Difference betw een the cost and the

penjualan saham yang diperoleh proceeds from the sale of treasurykembali 210.902.460 210.902.460 stock

Jumlah 1.458.257.900 1.458.257.900 Total

Pada tahun 1990, Perseroan melakukan penjualan 40.000.000 saham bernilai Rp40.000.000 melalui penawaran umum kepada masyarakat. Hasil penjualan adalah Rp280.000.000. Perseroan mencatat modal disetor Rp40.000.000 dan jumlah agio saham sebesar Rp240.000.000.

In 1990, the Company sold 40,000,000 shares with a nominal value of Rp40,000,000 through a public offering. The proceeds were Rp280,000,000 of which Rp40,000,000 was recorded as paid-up capital and Rp240,000,000 was recorded as additional paid-in capital.

Pada tahun 1995, Perseroan melakukan penjualan 444.864.000 saham bernilai nominal Rp444.864.000 melalui penawaran umum terbatas kepada masyarakat dengan hak memesan efek terlebih dahulu. Hasil penjualan adalah sebesar Rp1.456.929.600. Perseroan mencatat modal disetor Rp444.864.000 dan Rp1.012.065.600 sebagai agio saham.

In 1995, the Company sold 444,864,000 shares with a nominal value of Rp444,864,000 through a public offering with pre-emptive rights. The proceeds were Rp1,456,929,600 of which Rp444,864,000 was recorded as paid-up capital and Rp1,012,065,600 was recorded as additional paid-in capital.

Pada tanggal 30 Januari 2009, Perseroan mengadakan Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) untuk mengukuhkan Pelaksanaan Pembelian Kembali Saham Perseroan tanggal 13 Oktober 2008 sampai dengan tanggal 9 Januari 2009 sebanyak 68.032.000 lembar saham dengan nilai transaksi Rp198.672.291. Harga perolehan per lembar saham sudah termasuk biaya jasa perantara dan kustodian.

On January 30, 2009, the Company held an Extraordinary General Meeting of Shareholders (EGMS) to ratify the Company’s Share Buyback Program effective from October 13, 2008 up to and including January 9, 2009 involving the acquisition of 68,032,000 shares at a total cost of Rp198,672,291. The acquisition cost per share includes brokers’ commissions and custodian fees.

Pada tanggal 7 Oktober 2009 Perseroan menjual saham yang dibeli kembali (68.032.000 lembar saham dengan harga Rp6.075 (nilai penuh) per lembar saham) senilai Rp413.294.400. Selisih antara nilai perolehan dengan hasil penjualan setelah dikurangi biaya jasa perantara dan kustodian sebesar Rp210.902.460 diakui sebagai tambahan modal disetor.

On October 7, 2009 the Company sold its treasury stock (68,032,000 shares at Rp6,075 (full amount) per share) for an amount of Rp413,294,400. The difference of Rp210,902,460 between the costs and the proceeds from sales, net of intermediary and custodian fees, was recognized as additional paid-in capital.

31. DIVIDEN 31. DIVIDENDS Berdasarkan Rapat Umum Pemegang Saham Tahunan (RUPST) tahun 2018 yang diselenggarakan pada tanggal 30 April 2018, yang tertuang dalam Akta Notaris No. 155, pemegang saham memutuskan, antara lain, untuk membagi dividen per lembar saham sebesar Rp135,83 (angka penuh) dengan total pembayaran Rp805.678.362.

Based on the Annual General Meeting of Shareholders (AGMS) in 2018 which was held on April 30, 2018, as stated on Notarial Deed No. 155 the shareholders approved, among others, the distribution of dividend per share amounting to Rp135.83 (full amount) for a total amount paid of Rp805,678,362.







(Continued)

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30. TAMBAHAN MODAL DISETOR 30. ADDITIONAL PAID-IN CAPITAL Pada 31 December 2018 dan 2017, akun ini terdiri dari:

As of December 31, 2018 and 2017, this account represents:

2018 2017

Agio saham 1.252.065.600 1.252.065.600 Share premiumBiaya emisi efek ekuitas (4.710.160) (4.710.160) Share issuance costsSelisih nilai perolehan dengan hasil Difference betw een the cost and the

penjualan saham yang diperoleh proceeds from the sale of treasurykembali 210.902.460 210.902.460 stock

Jumlah 1.458.257.900 1.458.257.900 Total

Pada tahun 1990, Perseroan melakukan penjualan 40.000.000 saham bernilai Rp40.000.000 melalui penawaran umum kepada masyarakat. Hasil penjualan adalah Rp280.000.000. Perseroan mencatat modal disetor Rp40.000.000 dan jumlah agio saham sebesar Rp240.000.000.

In 1990, the Company sold 40,000,000 shares with a nominal value of Rp40,000,000 through a public offering. The proceeds were Rp280,000,000 of which Rp40,000,000 was recorded as paid-up capital and Rp240,000,000 was recorded as additional paid-in capital.

Pada tahun 1995, Perseroan melakukan penjualan 444.864.000 saham bernilai nominal Rp444.864.000 melalui penawaran umum terbatas kepada masyarakat dengan hak memesan efek terlebih dahulu. Hasil penjualan adalah sebesar Rp1.456.929.600. Perseroan mencatat modal disetor Rp444.864.000 dan Rp1.012.065.600 sebagai agio saham.

In 1995, the Company sold 444,864,000 shares with a nominal value of Rp444,864,000 through a public offering with pre-emptive rights. The proceeds were Rp1,456,929,600 of which Rp444,864,000 was recorded as paid-up capital and Rp1,012,065,600 was recorded as additional paid-in capital.

Pada tanggal 30 Januari 2009, Perseroan mengadakan Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) untuk mengukuhkan Pelaksanaan Pembelian Kembali Saham Perseroan tanggal 13 Oktober 2008 sampai dengan tanggal 9 Januari 2009 sebanyak 68.032.000 lembar saham dengan nilai transaksi Rp198.672.291. Harga perolehan per lembar saham sudah termasuk biaya jasa perantara dan kustodian.

On January 30, 2009, the Company held an Extraordinary General Meeting of Shareholders (EGMS) to ratify the Company’s Share Buyback Program effective from October 13, 2008 up to and including January 9, 2009 involving the acquisition of 68,032,000 shares at a total cost of Rp198,672,291. The acquisition cost per share includes brokers’ commissions and custodian fees.

Pada tanggal 7 Oktober 2009 Perseroan menjual saham yang dibeli kembali (68.032.000 lembar saham dengan harga Rp6.075 (nilai penuh) per lembar saham) senilai Rp413.294.400. Selisih antara nilai perolehan dengan hasil penjualan setelah dikurangi biaya jasa perantara dan kustodian sebesar Rp210.902.460 diakui sebagai tambahan modal disetor.

On October 7, 2009 the Company sold its treasury stock (68,032,000 shares at Rp6,075 (full amount) per share) for an amount of Rp413,294,400. The difference of Rp210,902,460 between the costs and the proceeds from sales, net of intermediary and custodian fees, was recognized as additional paid-in capital.

31. DIVIDEN 31. DIVIDENDS Berdasarkan Rapat Umum Pemegang Saham Tahunan (RUPST) tahun 2018 yang diselenggarakan pada tanggal 30 April 2018, yang tertuang dalam Akta Notaris No. 155, pemegang saham memutuskan, antara lain, untuk membagi dividen per lembar saham sebesar Rp135,83 (angka penuh) dengan total pembayaran Rp805.678.362.

Based on the Annual General Meeting of Shareholders (AGMS) in 2018 which was held on April 30, 2018, as stated on Notarial Deed No. 155 the shareholders approved, among others, the distribution of dividend per share amounting to Rp135.83 (full amount) for a total amount paid of Rp805,678,362.





(Continued)

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Berdasarkan Rapat Umum Pemegang Saham Tahunan (RUPST) tahun 2017 yang diselenggarakan pada tanggal 31 Maret 2017, yang tertuang dalam Akta Notaris No. 203, pemegang saham memutuskan, antara lain, untuk membagi dividen per lembar saham sebesar Rp304,92 (angka penuh) dengan total pembayaran Rp1.808.638.483.

Based on the Annual General Meeting of Shareholders (AGMS) in 2017 which was held on March 31, 2017, as stated on Notarial Deed No. 203, the shareholders approved, among others, the distribution of dividend per share amounting to Rp304,92 (full amount) for a total amount paid of Rp1,808,638,483.

32. KEPENTINGAN NON-PENGENDALI 32. NON-CONTROLLING INTERESTS

a Kepentingan non-pengendali atas ekuitas entitas anak

a Non-controlling interests in equity of subsidiaries

2018 2017

Thang Long Cement JSC 696.098.615 666.421.746 Thang Long Cement JSCPT Semen Indonesia Logistik 251.565.988 256.477.762 PT Semen Indonesia LogistikPT Semen Indonesia Aceh 235.518.248 242.722.145 PT Semen Indonesia AcehPT Kaw asan Industri Gresik 106.923.487 101.489.727 PT Kaw asan Industri GresikPT Industri Kemasan Semen Gresik 96.808.176 94.580.768 PT Industri Kemasan Semen GresikPT United Tractors Semen Gresik 87.357.152 84.064.852 PT United Tractors Semen GresikPT Krakatau Semen Indonesia 55.821.937 62.902.493 PT Krakatau Semen IndonesiaPT Bima Sepaja Abadi 12.798.263 12.717.698 PT Bima Sepaja AbadiPT Semen Kupang Indonesia 959.881 952.440 PT Semen Kupang IndonesiaPT Semen Gresik 515.635 485.258 PT Semen GresikPT Semen Indonesia Beton 25.874 30.330 PT Semen Indonesia Beton

PT. SGG Energi Prima (182.716) 1.212.258 namely PT. SGG Energi Prima

Jumlah 1.544.210.540 1.524.057.477 Total

PT Sinergi Mitra Investama dahulu bernama PT Sinergi Mitra Investama / previously

b Bagian laba (rugi) yang diatribusikan kepada

kepentingan non-pengendali b Profit (loss) attributable to non-controlling

interests

2018 2017

PT United Tractors Semen Gresik 13.209.329 24.366.095 PT United Tractors Semen GresikPT Kaw asan Industri Gresik 8.569.520 7.751.739 PT Kaw asan Industri GresikPT Industri Kemasan Semen Gresik 5.302.379 12.274.065 PT Industri Kemasan Semen GresikPT Semen Indonesia Logistik 186.581 1.470.425 PT Semen Indonesia Logistik PT Bima Sepaja Abadi 82.003 160.116 PT Bima Sepaja AbadiPT Semen Gresik 30.377 (17.544) PT Semen GresikPT Semen Kupang Indonesia 7.441 (38.519) PT Semen Kupang IndonesiaPT Semen Indonesia Beton (3.854) 871 PT Semen Indonesia BetonPT Sinergi Mitra Investama (1.335.470) 146.637 PT Sinergi Mitra InvestamaThang Long Cement JSC (5.175.028) (7.139.087) Thang Long Cement JSCPT Krakatau Semen Indonesia (7.080.556) 1.971.830 PT Krakatau Semen IndonesiaPT Semen Indonesia Aceh (7.203.897) (11.935.467) PT Semen Indonesia Aceh

Jumlah 6.588.825 29.011.161 Total

Ringkasan informasi keuangan pada entitas anak yang memiliki kepentingan non-pengendali yang material ditetapkan di bawah ini. Ringkasan informasi keuangan di bawah ini merupakan jumlah sebelum eliminasi intra grup.

Summarized financial information in respect of non-wholly owned subsidiaries that has material non-controlling interest to the Group are set out below. The summarized financial information below represents amounts before intragroup eliminations.







(Continued)

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Thang Long Cement Joint Stock Company Thang Long Cement Joint Stock Company

2018 2017

Aset Lancar 234.675.116 352.489.679 Current assetsAset tidak lancar 2.245.838.618 2.235.162.522 Non-current assetsJumlah Aset 2.480.513.734 2.587.652.201 Total Assets

Liabilitas Jangka Pendek 745.236.377 677.983.999 Current liabilitiesLiabilitas Jangka Panjang 293.136.713 560.529.791 Non-current liabilitiesEkuitas yang dapat diatribusikan kepada Equity attributable to ow ners

pemilik entitas induk 1.441.840.213 1.349.138.856 of the companyKepentingan non-pengendali 300.431 (445) Non-controlling interestJumlah liabilitas dan ekuitas 2.480.513.734 2.587.652.201 Total Liabilities and Equity

Pendapatan 1.518.384.301 1.358.022.271 RevenueBeban (1.493.405.853) (1.338.839.692) ExpensesLaba tahun berjalan 24.978.448 19.182.579 Profit for the year

Penghasilan komprehensif lain Other comprehensive incomeSelisih kurs dari penjabaran Exchange difference from

kegiatan usaha luar negeri (178.556.769) (276.378.987) translation of foreign operationJumlah laba (rugi) komprehensif Total comprehensive income (loss)

tahun berjalan (153.578.321) (257.196.408) for the year

Laba (rugi) yang dapat diatribusikan kepada: Profit (loss) attributable toPemilik entitas Induk 24.989.680 19.181.695 Ow ners of the companyKepentingan non-pengendali (11.232) 884 Non-controlling interests

Laba tahun berjalan 24.978.448 19.182.579 Profit for the year

Jumlah penghasilan komprehensif yang Total comprehensive income dapat diatribusikan kepada attributable toPemilik entitas Induk 24.989.680 (174.283.596) Ow ners of the companyKepentingan non-pengendali (11.232) (82.912.812) Non-controlling interests

Jumlah penghasilan komprehensif lain Total other comprehensive income tahun berjalan 24.978.448 (257.196.408) for the year

Arus kas dari aktivitas operasi 294.230.478 246.307.161 Cash flow s from operating activitiesArus kas untuk aktivitas investasi (1.058.718) (2.663.550) Cash flow s for investing activitiesArus kas untuk aktivitas pendanaan (268.717.961) (320.770.283) Cash flow s for f inancing activities

PT Semen Indonesia Aceh PT Semen Indonesia Aceh

2018 2017

Aset Lancar 2.187.710 11.738.092 Current assetsAset tidak lancar 603.728.302 585.197.886 Non-current assetsJumlah Aset 605.916.012 596.935.978 Total Assets

Liabilitas Jangka Pendek 109.777.320 85.529.217 Current liabilities

Ekuitas 496.138.692 511.406.762 Equity Jumlah liabilitas dan ekuitas 605.916.012 511.406.762 Total Liaibities and Equity

Beban (15.268.070) (25.010.830) ExpensesJumlah laba (rugi) komprehensif Total comprehensive income (loss)


Arus kas untuk aktivitas operasi (83.062.057) (2.060.860) Cash flow s for operating activitiesArus kas untuk aktivitas investasi (7.826.692) (87.085.288) Cash flow s for investing activitiesArus kas dari aktivitas pendanaan 92.528.596 91.400.000 Cash flow s from financing activities







(Continued)

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Thang Long Cement Joint Stock Company Thang Long Cement Joint Stock Company

2018 2017

Aset Lancar 234.675.116 352.489.679 Current assetsAset tidak lancar 2.245.838.618 2.235.162.522 Non-current assetsJumlah Aset 2.480.513.734 2.587.652.201 Total Assets

Liabilitas Jangka Pendek 745.236.377 677.983.999 Current liabilitiesLiabilitas Jangka Panjang 293.136.713 560.529.791 Non-current liabilitiesEkuitas yang dapat diatribusikan kepada Equity attributable to ow ners

pemilik entitas induk 1.441.840.213 1.349.138.856 of the companyKepentingan non-pengendali 300.431 (445) Non-controlling interestJumlah liabilitas dan ekuitas 2.480.513.734 2.587.652.201 Total Liabilities and Equity

Pendapatan 1.518.384.301 1.358.022.271 RevenueBeban (1.493.405.853) (1.338.839.692) ExpensesLaba tahun berjalan 24.978.448 19.182.579 Profit for the year

Penghasilan komprehensif lain Other comprehensive incomeSelisih kurs dari penjabaran Exchange difference from

kegiatan usaha luar negeri (178.556.769) (276.378.987) translation of foreign operationJumlah laba (rugi) komprehensif Total comprehensive income (loss)


Laba (rugi) yang dapat diatribusikan kepada: Profit (loss) attributable toPemilik entitas Induk 24.989.680 19.181.695 Ow ners of the companyKepentingan non-pengendali (11.232) 884 Non-controlling interests


Jumlah penghasilan komprehensif yang Total comprehensive income dapat diatribusikan kepada attributable toPemilik entitas Induk 24.989.680 (174.283.596) Ow ners of the companyKepentingan non-pengendali (11.232) (82.912.812) Non-controlling interests

Jumlah penghasilan komprehensif lain Total other comprehensive income tahun berjalan 24.978.448 (257.196.408) for the year

Arus kas dari aktivitas operasi 294.230.478 246.307.161 Cash flow s from operating activitiesArus kas untuk aktivitas investasi (1.058.718) (2.663.550) Cash flow s for investing activitiesArus kas untuk aktivitas pendanaan (268.717.961) (320.770.283) Cash flow s for f inancing activities

PT Semen Indonesia Aceh PT Semen Indonesia Aceh

2018 2017

Aset Lancar 2.187.710 11.738.092 Current assetsAset tidak lancar 603.728.302 585.197.886 Non-current assetsJumlah Aset 605.916.012 596.935.978 Total Assets

Liabilitas Jangka Pendek 109.777.320 85.529.217 Current liabilities

Ekuitas 496.138.692 511.406.762 Equity Jumlah liabilitas dan ekuitas 605.916.012 511.406.762 Total Liaibities and Equity

Beban (15.268.070) (25.010.830) ExpensesJumlah laba (rugi) komprehensif Total comprehensive income (loss)


Arus kas untuk aktivitas operasi (83.062.057) (2.060.860) Cash flow s for operating activitiesArus kas untuk aktivitas investasi (7.826.692) (87.085.288) Cash flow s for investing activitiesArus kas dari aktivitas pendanaan 92.528.596 91.400.000 Cash flow s from financing activities





(Continued)

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PT Semen Indonesia Logistik dan Entitas Anak PT Semen Indonesia Logistik and its subsidiaries

2018 2017

Aset Lancar 1.252.824.887 1.053.708.960 Current assetsAset tidak lancar 1.181.203.571 1.273.167.233 Non-current assets

Jumlah Aset 2.434.028.458 2.326.876.193 Total Assets

Liabilitas Jangka Pendek 1.514.499.728 1.371.023.544 Current liabilitiesLiabilitas Jangka Panjang 309.946.635 356.274.468 Non-current liabilitiesEkuitas yang dapat diatribusikan kepada Equity attributable to ow ners

pemilik entitas induk 608.864.745 597.645.917 of the companyKepentingan non-pengendali 717.350 1.932.264 Non-controlling interest

Jumlah liabilitas dan ekuitas 2.434.028.458 2.326.876.193 Total Liaibities and Equity

Pendapatan 4.922.079.400 4.682.111.384 RevenueBeban (4.890.876.350) (4.632.212.833) Expenses


Penghasilan komprehensif lain Other Comprehensive incomePengukuran kembali atas Remeasurements of defined

liablilitas imbalan pasti 1.427.163 (10.488.779) benefit obligation

Jumlah laba komprehensif tahun berjalan 32.630.213 39.409.772 Total comprehensive income for the year

Laba yang dapat diatribusikan kepada: Profit attributable to:Pemilik entitas Induk 30.451.877 49.851.337 Ow ners of the companyKepentingan non-pengendali 751.173 47.214 Non-controlling interests


Jumlah laba komprehensif yang dapat Total comprehensive income diatribusikan kepada attributable to Pemilik entitas Induk 31.875.268 39.366.987 Ow ners of the CompanyKepentingan non-pengendali 754.945 42.385 Non-controlling interests

Jumlah laba komprehensif Total comprehensive incometahun berjalan 32.630.213 39.409.372 for the year

Arus kas dari aktivitas operasi 118.210.068 236.122.989 Cash flow s from operating activitiesArus kas untuk aktivitas investasi (50.830.227) (468.773.158) Cash flow s for investing activitiesArus kas dari aktivitas pendanaan (40.009.211) 216.471.603 Cash flow s from financing activities







(Continued)

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33. PENDAPATAN 33. REVENUE

2018 2017

Pihak berelasi Related partiesSemen 1.845.416.517 1.986.027.835 CementBeton 771.892.299 454.253.917 Ready mix concreteJasa penambangan 85.023.279 107.707.688 Mining servicesLain-lain 63.567.782 73.127.056 Others


Pihak ketiga Third partiesSemen 23.876.281.257 22.511.902.933 CementTerak 2.006.908.117 590.622.439 ClinkerBeton siap pakai 1.474.523.232 1.614.528.555 Ready mix concreteKantong semen 92.875.650 63.028.998 Cement bagsPersew aan tanah kaw asan industri 33.597.138 29.935.363 Industrial estate land rentalJasa penambangan 26.090.944 142.030.662 Mining servicesTanah kaw asan industri 12.375.000 17.490.450 Industrial real estateJasa peledakan 2.734.148 39.141.665 Blasting servicesLain-lain 396.340.607 183.866.615 Others


Jumlah 30.687.625.970 27.813.664.176 Total

Tidak ada penjualan kepada satu pelanggan yang melebihi 10% dari jumlah pendapatan.

There were no sales to any party representing more than 10% of total revenue.

Lihat Catatan 43 untuk rincian transaksi dan saldo dengan pihak berelasi.

Refer to Note 43 for details of related parties transactions and balances.

34. BEBAN POKOK PENDAPATAN 34. COST OF REVENUE

2018 2017 *)

Pemakaian bahan baku 1.876.243.851 1.877.330.717 Raw materials usedTenaga kerja 1.201.875.087 1.487.791.639 LaborBeban pabrikasi 17.896.491.771 16.767.895.077 Manufacturing overhead

Jumlah beban produksi 20.974.610.709 20.133.017.433 Total manufacturing costs

Persediaan barang dalam proses Work in progress inventoriesPada aw al tahun 867.063.144 520.903.760 At the beginning of the yearPembelian 88.463.933 86.728.725 PurchasesPada akhir tahun (689.587.263) (867.063.144) At the end of the year

Harga pokok produksi 21.240.550.523 19.873.586.774 Cost of goods manufactured

Persediaan barang jadi Finished goods inventoriesPada aw al tahun 682.574.004 362.605.852 At the beginning of the yearPembelian 30.920.446 300.446.787 PurchasesPada akhir tahun (596.949.328) (682.574.004) At the end of the year

Jumlah 21.357.095.645 19.854.065.409 Total

Tidak ada pembelian dari satu pemasok yang melebihi 10% dari jumlah pendapatan.

There were no purchases from any suppliers representing more than 10% of total revenue.


Refer to Note 43 for details of related party transactions and balances.








(Continued)

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33. PENDAPATAN 33. REVENUE

2018 2017

Pihak berelasi Related partiesSemen 1.845.416.517 1.986.027.835 CementBeton 771.892.299 454.253.917 Ready mix concreteJasa penambangan 85.023.279 107.707.688 Mining servicesLain-lain 63.567.782 73.127.056 Others


Pihak ketiga Third partiesSemen 23.876.281.257 22.511.902.933 CementTerak 2.006.908.117 590.622.439 ClinkerBeton siap pakai 1.474.523.232 1.614.528.555 Ready mix concreteKantong semen 92.875.650 63.028.998 Cement bagsPersew aan tanah kaw asan industri 33.597.138 29.935.363 Industrial estate land rentalJasa penambangan 26.090.944 142.030.662 Mining servicesTanah kaw asan industri 12.375.000 17.490.450 Industrial real estateJasa peledakan 2.734.148 39.141.665 Blasting servicesLain-lain 396.340.607 183.866.615 Others


Jumlah 30.687.625.970 27.813.664.176 Total

Tidak ada penjualan kepada satu pelanggan yang melebihi 10% dari jumlah pendapatan.

There were no sales to any party representing more than 10% of total revenue.


Refer to Note 43 for details of related parties transactions and balances.

34. BEBAN POKOK PENDAPATAN 34. COST OF REVENUE

2018 2017 *)

Pemakaian bahan baku 1.876.243.851 1.877.330.717 Raw materials usedTenaga kerja 1.201.875.087 1.487.791.639 LaborBeban pabrikasi 17.896.491.771 16.767.895.077 Manufacturing overhead

Jumlah beban produksi 20.974.610.709 20.133.017.433 Total manufacturing costs

Persediaan barang dalam proses Work in progress inventoriesPada aw al tahun 867.063.144 520.903.760 At the beginning of the yearPembelian 88.463.933 86.728.725 PurchasesPada akhir tahun (689.587.263) (867.063.144) At the end of the year

Harga pokok produksi 21.240.550.523 19.873.586.774 Cost of goods manufactured

Persediaan barang jadi Finished goods inventoriesPada aw al tahun 682.574.004 362.605.852 At the beginning of the yearPembelian 30.920.446 300.446.787 PurchasesPada akhir tahun (596.949.328) (682.574.004) At the end of the year

Jumlah 21.357.095.645 19.854.065.409 Total

Tidak ada pembelian dari satu pemasok yang melebihi 10% dari jumlah pendapatan.

There were no purchases from any suppliers representing more than 10% of total revenue.


Refer to Note 43 for details of related party transactions and balances.






(Continued)

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35. BEBAN PENJUALAN 35. SELLING EXPENSES

2018 2017 *)

Ongkos angkut dan bongkar 1.769.245.165 1.848.293.610 Transportation and handlingGaji, upah dan manfaat 216.232.052 197.313.228 Salaries, w ages and benefitsPromosi 153.685.912 253.105.574 PromotionPerjalanan dinas 22.194.312 16.021.699 Business tripsPemeliharaan 11.241.218 8.544.085 MaintenancePenyusutan dan amortisasi 10.250.462 10.974.709 Depreciation and amortizationPenelitian, pengembangan Research, development and

jasa profesional 7.125.762 10.357.693 Professional feesLain-lain 47.027.720 67.112.076 Others

Jumlah 2.237.002.603 2.411.722.674 Total

36. BEBAN UMUM DAN ADMINISTRASI 36. GENERAL AND ADMINISTRATION EXPENSES

2018 2017 *)

Salaries, w ages, employeeGaji, upah, kesejahteraan w elfare and Director's &

dan bonus Direksi & Komisaris 1.102.853.963 1.176.191.699 Commisioner's BonusJasa profesional 254.157.062 96.903.822 Professional feesPenyusutan dan amortisasi 162.349.089 188.777.776 Depreciation and amortizationPemeliharaan 160.724.467 124.543.130 MaintenancePajak, asuransi, dan sew a 136.698.747 164.268.610 Taxes, insurance and rental Program kemitraan bina Partnership program

lingkungan 116.861.501 192.854.039 community developmentKeperluan kantor 114.359.728 189.589.192 Office suppliesPerjalanan dinas 73.440.627 91.630.613 Business tripsPemakaian bahan, listrik, air Supplies, electricity, w ater

dan telepon 59.255.786 47.379.849 and telephonePromosi dan jamuan 51.049.536 66.076.882 Promotion and entertainmentPenurunan (pemulihan) nilai piutang Impairment (reversal) loss of

(Catatan 7 dan 8) 43.426.548 (5.529.516) receivable (Notes 7 and 8)Pendidikan, latihan dan Education, training and

pengembangan 32.477.353 47.654.666 developmentImbalan pasca kerja lainnya - 498.166.910 Other post employment benefitLain-lain 12.607.998 36.129.764 Others

Jumlah 2.320.262.405 2.914.637.436 Total

37. PENGHASILAN (BEBAN) OPERASI LAINNYA 37. OTHER OPERATING INCOME (EXPENSES)

2018 2017

Sew a 39.114.719 59.971.385 RentalKeuntungan (kerugian) selisih kurs 30.760.713 61.921.414 Foreign exchange gain (loss)Penghasilan penanganan limbah 19.723.905 49.917.762 Income from w aste treatment Klaim dan denda 9.022.357 9.246.593 Claims and penaltiesLaba penjualan aset tetap Gain on sale of f ixed assets

(Catatan 15) 3.179.523 5.642.450 (Note 15)Penjualan barang usang 3.854.021 4.784.377 Sales of scrap materialsPenurunan nilai goodwill (Catatan 17) (60.000.000) - Impairment of goodw ill (Note 17)Lain-lain 61.718.564 26.583.402 Others

Jumlah 107.373.802 218.067.383 Total








(Continued)

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38. PENGHASILAN KEUANGAN DAN BEBAN KEUANGAN

38. FINANCE INCOME AND FINANCE COSTS

a. Penghasilan keuangan a. Finance income

2018 2017

Deposito berjangka 100.550.842 114.097.765 Time depositsRekening giro 79.750.648 45.826.224 Current accountsLain-lain 1.671.343 8.748.697 Others

Jumlah 181.972.833 168.672.686 Total

b. Beban keuangan b. Finance costs

2018 2017

Kredit investasi 338.113.546 324.158.012 Investment loansObligasi 259.197.250 136.727.920 BondsKredit modal kerja 225.801.031 116.757.731 Working capital loansSew a pembiayaan 107.565.229 126.058.326 Financial leaseBiaya pembongkaran aset tetap 8.392.996 15.174.576 Dismantling costs of f ixed assetsLain-lain 20.189.035 37.571.510 Others

Jumlah 959.259.087 756.448.075 Total

39. PENGHASILAN KOMPREHENSIF LAIN 39. OTHER COMPREHENSIVE INCOME

2018 2017 *)

Mutasi neto lindung nilai arus kas Net movement on cash flow hedgesKerugian tahun berjalan - (56.801) Loss arising during the year

Keuntungan (kerugian) aktuarial Unrealized gain (loss) on definedprogram pensiun manfaat pasti 413.113.083 (399.261.278) benefit pension plansDikurangi: Less:

Pajak penghasilan terkait (97.606.073) 97.034.342 Related income tax

315.507.010 (302.226.936)

Selisih kurs penjabaran laporan Exchange difference due to translationkeuangan of f inancial statements

Translation of subsidiary's f inancialPenjabaran laporan entitas anak 116.162.487 (33.148.049) statements

Keuntungan (kerugian) komprehensif Other comprehensive income (loss)lain tahun berjalan, setelah pajak 431.669.497 (335.431.786) for the year, net of tax

Sepanjang tahun 2017, Entitas Anak (SG) melakukan lindung nilai arus kas melalui instrumen derivatif forward contract dengan tujuan mengurangi resiko pergerakan kurs spot atas komitmen pasti pembelian peralatan. Entitas Anak (SG dan SP) juga melakukan lindung nilai non-derivatif menggunakan giro dalam mata uang EUR, dimana selisih kurs yang timbul dari translasi EUR diakui didalam penghasilan komprehensif lain selama lindung nilai tersebut efektif.

During 2017, a Subsidiary (SG) entered into a forward contract cash flow hedge derivative instruments with purpose to reduce the risk of spot rate fluctuation on firm commitments for the procurement of main equipment which were constructed under cash flows hedge. The Subsidiaries (SG and SP) also entered into non-derivative hedge using EUR current account, to which the difference resulting from translation of EUR account, is recorded in other comprehensive income only if the hedging effectiveness is met.








(Continued)

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38. PENGHASILAN KEUANGAN DAN BEBAN KEUANGAN

38. FINANCE INCOME AND FINANCE COSTS

a. Penghasilan keuangan a. Finance income

2018 2017

Deposito berjangka 100.550.842 114.097.765 Time depositsRekening giro 79.750.648 45.826.224 Current accountsLain-lain 1.671.343 8.748.697 Others

Jumlah 181.972.833 168.672.686 Total

b. Beban keuangan b. Finance costs

2018 2017

Kredit investasi 338.113.546 324.158.012 Investment loansObligasi 259.197.250 136.727.920 BondsKredit modal kerja 225.801.031 116.757.731 Working capital loansSew a pembiayaan 107.565.229 126.058.326 Financial leaseBiaya pembongkaran aset tetap 8.392.996 15.174.576 Dismantling costs of f ixed assetsLain-lain 20.189.035 37.571.510 Others

Jumlah 959.259.087 756.448.075 Total

39. PENGHASILAN KOMPREHENSIF LAIN 39. OTHER COMPREHENSIVE INCOME

2018 2017 *)

Mutasi neto lindung nilai arus kas Net movement on cash flow hedgesKerugian tahun berjalan - (56.801) Loss arising during the year

Keuntungan (kerugian) aktuarial Unrealized gain (loss) on definedprogram pensiun manfaat pasti 413.113.083 (399.261.278) benefit pension plansDikurangi: Less:

Pajak penghasilan terkait (97.606.073) 97.034.342 Related income tax

315.507.010 (302.226.936)

Selisih kurs penjabaran laporan Exchange difference due to translationkeuangan of f inancial statements

Translation of subsidiary's f inancialPenjabaran laporan entitas anak 116.162.487 (33.148.049) statements

Keuntungan (kerugian) komprehensif Other comprehensive income (loss)lain tahun berjalan, setelah pajak 431.669.497 (335.431.786) for the year, net of tax

Sepanjang tahun 2017, Entitas Anak (SG) melakukan lindung nilai arus kas melalui instrumen derivatif forward contract dengan tujuan mengurangi resiko pergerakan kurs spot atas komitmen pasti pembelian peralatan. Entitas Anak (SG dan SP) juga melakukan lindung nilai non-derivatif menggunakan giro dalam mata uang EUR, dimana selisih kurs yang timbul dari translasi EUR diakui didalam penghasilan komprehensif lain selama lindung nilai tersebut efektif.

During 2017, a Subsidiary (SG) entered into a forward contract cash flow hedge derivative instruments with purpose to reduce the risk of spot rate fluctuation on firm commitments for the procurement of main equipment which were constructed under cash flows hedge. The Subsidiaries (SG and SP) also entered into non-derivative hedge using EUR current account, to which the difference resulting from translation of EUR account, is recorded in other comprehensive income only if the hedging effectiveness is met.






(Continued)

- 108 -

Sehubungan dengan pembayaran atas pembelian peralatan dimana transaksi lindung nilai yang dilakukan telah secara efektif saling hapus perubahan arus kas yang diatribusikan terhadap risiko yang dilindung nilai, perubahan nilai wajar yang diakui dalam penghasilan komprehensif lain direklasifikasi ke nilai peralatan yang dilindung nilai (Catatan 15).

In connection with the payment for purchase of main equipment where the hedging transaction undertaken has effectively offset the change in cash flow attributable to the risk being hedged, the changes in fair value recognized in other comprehensive income are reclassified to the value of the hedged item (Note 15).

Pada tanggal 31 Desember 2017, perubahan nilai wajar lindung nilai arus kas yang masih belum terealisasi, dicatat dalam beban komprehensif lain sebesar 56.801.

As of December 31, 2017, net change in fair value of cash flow hedge recognized in other comprehensive as expense amounted to Rp56,801.

Pada tanggal 31 Desember 2018, tidak ada instrument derivatif kontrak forward di SG yang masih berjalan.

As of December 31, 2018, there is no outstanding forward contract derivative instrument in SG.

40. PAJAK PENGHASILAN 40. INCOME TAX

Beban pajak Grup terdiri dari: Tax expense of the Group consists of the following:

2018 2017 *)

Perseroan The CompanyKini 291.539.748 208.515.156 CurrentTangguhan 142.925.539 19.105.794 DeferredPenyesuaian yang diakui

pada tahun berjalan atas Adjusment recognized inpajak kini yang berasal dari current year in relation totahun sebelumnya - (4.549.426) the prior year current tax


Entitas anak SubsidiariesKini 431.832.066 281.839.687 CurrentTangguhan 152.957.734 98.975.856 Deferred


Konsolidasian ConsolidatedKini 723.371.814 490.354.843 CurrentTangguhan 295.883.273 118.081.650 DeferredPenyesuaian yang diakui

pada tahun berjalan atas Adjusment recognized inpajak kini yang berasal dari current year in relation totahun sebelumnya - (4.549.426) the prior year current tax

Jumlah 1.019.255.087 603.887.067 Total

Perseroan telah memenuhi persyaratan memperoleh penurunan tarif PPh Badan sebesar 5% masing-masing untuk tahun fiskal 2018 dan 2017 berdasarkan Peraturan Pemerintah Nomor 81 Tahun 2007.

The Company met the requirements for reduction of income tax rate by 5% for fiscal years 2018 and 2017, in accordance with the Government Regulation No. 81 Year 2007.








(Continued)

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Rekonsiliasi antara laba sebelum pajak penghasilan yang ditunjukkan dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian dengan taksiran laba kena pajak untuk periode yang berakhir pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

The reconciliation between profit before income tax as shown in the consolidated statements of profit or loss and other comprehensive income and estimated taxable income for the years ended December 31, 2018 and 2017 are as follows:

2018 2017 *)

Laba konsolidasian sebelum Consolidated profit beforebeban pajak penghasilan 4.104.959.323 2.253.893.318 income tax

Laba entitas anak sebelum Subsidiaries’ profit beforebeban pajak penghasilan (1.980.577.794) (1.260.847.293) income tax

Bagian atas laba bersih entitas Share in net profitsasosiasi (1.606.458) 9.637.333 of associates

Disesuaikan dengan jurnal Adjusted for consolidationeliminasi konsolidasi 42.463.916 (4.732.425) eliminations

Laba sebelum pajak penghasilan Profit before income tax -Perseroan 2.165.238.987 997.950.933 the Company

Perbedaan permanen: Permanent differences:

Perbedaan nilai buku fiskal dan Differences between fiscal and commercialkomersial atas aset tetap (14.027.009) 1.325.561 net carrying amount of fixed assets

Penyisihan promosi peningkatan penjualan 69.134.306 47.519.670 Provision for sales promotion expenseKesejahteraan karyawan 33.761.515 104.879.720 Employee welfare

Partnership progam and community Sumbangan bina lingkungan 32.628.765 107.370.645 developmentJamuan tamu 11.325.204 11.571.930 Entertainment ExpensesPendapatan yang telah dikenakan Income subject to final tax,

pajak penghasilan final (154.070.374) (137.498.737) recorded on a net of tax basisLain-lain 62.367.537 39.017.491 Others

41.119.944 174.186.280

Perbedaan temporer: Temporary differences:

Perbedaan nilai buku fiskal dan Fiscal and commercialkomersial atas aset tetap, net carrying amounts of fixedbeban tangguhan, dan assets, deferred charges, andaset tak berwujud (709.216.751) (452.486.293) intangible assets

Tunjangan produktivitas dan uang jasa (138.642.145) (72.358.278) Productivity allowances and incentivesLiabilitas imbalan kerja 69.741.830 498.821.651 Employee benefits l iabil itiesCadangan persediaan usang Allowance for obsolete and

dan bergerak lambat 17.220.339 (2.915.284) slow moving inventoriesAset sewa pembiayaan 285.046 (12.464.485) Leased assetsCadangan penurunan nilai piutang (4.231.236) 1.070.189 Allowance for impairment of receivablePenyisihan lainnya 16.182.726 (89.228.933) Other provisions

(748.660.191) (129.561.433)

Laba kena pajak - Perseroan 1.457.698.740 1.042.575.780 Taxable income - the Company

Beban pajak penghasilan Income tax expense ofPerseroan - kini 291.539.748 208.515.156 the Company - current

Beban pajak penghasilan Income tax expense ofentitas anak - kini 431.832.066 281.839.687 the Subsidiaries - current

723.371.814 490.354.843








(Continued)

- 109 -

Rekonsiliasi antara laba sebelum pajak penghasilan yang ditunjukkan dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian dengan taksiran laba kena pajak untuk periode yang berakhir pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

The reconciliation between profit before income tax as shown in the consolidated statements of profit or loss and other comprehensive income and estimated taxable income for the years ended December 31, 2018 and 2017 are as follows:

2018 2017 *)


Laba entitas anak sebelum Subsidiaries’ profit beforebeban pajak penghasilan (1.980.577.794) (1.260.847.293) income tax

Bagian atas laba bersih entitas Share in net profitsasosiasi (1.606.458) 9.637.333 of associates

Disesuaikan dengan jurnal Adjusted for consolidationeliminasi konsolidasi 42.463.916 (4.732.425) eliminations

Laba sebelum pajak penghasilan Profit before income tax -Perseroan 2.165.238.987 997.950.933 the Company

Perbedaan permanen: Permanent differences:

Perbedaan nilai buku fiskal dan Differences between fiscal and commercialkomersial atas aset tetap (14.027.009) 1.325.561 net carrying amount of fixed assets

Penyisihan promosi peningkatan penjualan 69.134.306 47.519.670 Provision for sales promotion expenseKesejahteraan karyawan 33.761.515 104.879.720 Employee welfare

Partnership progam and community Sumbangan bina lingkungan 32.628.765 107.370.645 developmentJamuan tamu 11.325.204 11.571.930 Entertainment ExpensesPendapatan yang telah dikenakan Income subject to final tax,

pajak penghasilan final (154.070.374) (137.498.737) recorded on a net of tax basisLain-lain 62.367.537 39.017.491 Others

41.119.944 174.186.280

Perbedaan temporer: Temporary differences:

Perbedaan nilai buku fiskal dan Fiscal and commercialkomersial atas aset tetap, net carrying amounts of fixedbeban tangguhan, dan assets, deferred charges, andaset tak berwujud (709.216.751) (452.486.293) intangible assets

Tunjangan produktivitas dan uang jasa (138.642.145) (72.358.278) Productivity allowances and incentivesLiabilitas imbalan kerja 69.741.830 498.821.651 Employee benefits l iabil itiesCadangan persediaan usang Allowance for obsolete and

dan bergerak lambat 17.220.339 (2.915.284) slow moving inventoriesAset sewa pembiayaan 285.046 (12.464.485) Leased assetsCadangan penurunan nilai piutang (4.231.236) 1.070.189 Allowance for impairment of receivablePenyisihan lainnya 16.182.726 (89.228.933) Other provisions

(748.660.191) (129.561.433)

Laba kena pajak - Perseroan 1.457.698.740 1.042.575.780 Taxable income - the Company

Beban pajak penghasilan Income tax expense ofPerseroan - kini 291.539.748 208.515.156 the Company - current

Beban pajak penghasilan Income tax expense ofentitas anak - kini 431.832.066 281.839.687 the Subsidiaries - current

723.371.814 490.354.843






(Continued)

- 110 -

Perhitungan beban dan utang pajak kini Perseroan adalah sebagai berikut:

Current tax expense and payable of the Company are computed as follows:

2018 2017

Beban pajak kini (291.539.748) (208.515.156) Current tax expenseDikurangi pembayaran pajak dimuka 289.173.242 640.844.140 Less prepaid taxes

Pajak kini lebih bayar/(kurang bayar) Current tax overpayment/(underpayment)(Catatan 12 dan 26) (2.366.506) 432.328.984 (Notes 12 and 26)

Laba fiskal tahun 2018 menjadi dasar dalam pengisian Surat Pemberitahuan Pajak (SPT) tahunan PPh Badan 2018.

The taxable income for 2018 will be the basis in the preparation of the 2018 annual Corporate Tax Returns (SPT).

Pajak Tangguhan Deferred Tax

DibebankanDikreditkan ke penghasilan

(dibebankan) komprehensifke laporan lain/laba rugi/ Charged to Akuisisi

1 Januari/ Credited/ other entitas anak/ 31 Desember/January 1, (charged) to comprehensive Acquisition of December 31,

2018 profit or loss income subsidiaries 2018Aset pajak tangguhan - neto Deferred tax asset - netPerseroan The Company

Aset tetap 457.587.744 (167.331.237) - - 290.256.507 Fixed assetsNilai wajar aset atas Fair v alue assets

akuisisi entitas anak (87.110.139) 6.806.499 - - (80.303.640) of acquisition subsidiaryAset sewa pembiay aan - 57.009 - - 57.009 Leassed assetsBeban tangguhan dan Def erred charges and intangible

aset takberwujud 4.488.344 25.487.887 - - 29.976.231 assetsLiabilitas imbalan kerja 145.624.428 13.948.366 (22.550.108) - 137.022.686 Employ ee benef its liabilitiesCadangan persediaan usang dan Allowance f or obsolete and slow

bergerak lambat 14.260.009 3.444.068 - - 17.704.077 mov ing inv entoriesCadangan penurunan nilai piutang 2.600.444 (846.247) - - 1.754.197 Allowance f or impairment of receiv ablesTunjangan produktiv itas Productiv ity allowances and

dan uang jasa 49.835.572 (27.728.429) - - 22.107.143 and incentiv e compensationPeny isihan lain-lain 20.486.774 3.236.545 - - 23.723.319 Other prov isions

Jumlah 607.773.176 (142.925.539) (22.550.108) - 442.297.529 Subtotal

Entitas anak SubsidiariesAset tetap (97.885.526) 107.736.449 - - 9.850.923 Fixed assetsAset sewa pembiay aan 97.638 (5.584.977) - - (5.487.339) Leased assetsCadangan penurunan nilai piutang 11.109.898 (683.441) - - 10.426.457 Allowance f or impairment of receiv ablesLiabilitas imbalan kerja 139.905.174 (95.006.459) (27.077.358) - 17.821.357 Employ ee benef its liabilitiesCadangan persediaan usang dan Allowance f or obsolete and slow

bergerak lambat 7.547.995 (7.365.398) - - 182.597 mov ing inv entoriesTunjangan produktiv itas Productiv ity allowances and

dan uang jasa 51.000.972 (47.536.747) - - 3.464.225 incentiv e compensationCadangan biay a bongkar 7.238.968 (6.198.607) - - 1.040.361 Allowance f or dismantle costAkumulasi rugi f iskal 25.806.245 5.813.878 - - 31.620.123 Accumulated f iscal lossNilai wajar aset atas Fair v alue assets of acquisition

akuisisi entitas anak - (15.596.436) - - (15.596.436) subsidiariesPeny isihan lain-lain 11.757.003 (819.301) - - 10.937.702 Other prov isions

Jumlah 156.578.367 (65.241.039) (27.077.358) - 64.259.970 Subtotal

Jumlah aset pajak tangguhan - neto 764.351.543 (208.166.578) (49.627.466) - 506.557.499 Total def erred tax assets - net

Liabilitas pajak tangguhan - neto Deferred tax liabilities - netEntitas anak Subsidiaries

Aset tetap (242.711.095) (304.993.556) - - (547.704.651) Fixed assetsNilai wajar aset atas Fair v alue assets of acquisition

akuisisi entitas anak (19.275.713) 19.275.713 - - - subsidiariesAset sewa pembiay aan (17.191.068) 7.781.573 - - (9.409.495) Leased assetsLiabilitas imbalan kerja 119.984.277 85.933.677 (47.978.607) - 157.939.347 Employ ee benef its liabilitiesCadangan persediaan usang dan Allowance f or obsolete and slow

bergerak lambat 6.539.750 12.384.303 - - 18.924.053 mov ing inv entoriesCadangan penurunan nilai piutang 13.033.609 1.649.826 - - 14.683.435 Allowance f or impairment of receiv ablesTunjangan produktiv itas Productiv ity allowances and

dan uang jasa 38.237.988 2.930.471 - - 41.168.459 incentiv e compensationAkumulasi rugi f iskal 18.990.221 23.345.979 - - 42.336.200 Fiscal loss carry f orwardPeny isihan lain-lain 10.853.845 63.975.319 - - 74.829.164 Other prov isions

Jumlah liabilitas pajak tangguhan - neto (71.538.186) (87.716.695) (47.978.607) - (207.233.488) Total def erred tax liabilites - net

Manf aat pajak tangguhan - neto (295.883.273) (97.606.073) Def erred tax income - net







(Continued)

- 111 -

Dikreditkan(dibebankan)

ke penghasilanDikreditkan komprehensif

(dibebankan) lain/ke laporan Creditedlaba rugi/ (charged) to Akuisisi


2017 profit or loss income subsidiaries 2017 *)Aset pajak tangguhan - neto Deferred tax asset - netPerseroan The Company

Aset tetap 552.318.257 (94.730.513) - - 457.587.744 Fixed assetsAset sewa pembiay aan 2.492.897 (2.492.897) - - - Leased assetsNilai wajar aset atas Fair v alue assets

akuisisi entitas anak (93.916.638) 6.806.499 - - (87.110.139) of acquisition subsidiaryBeban tangguhan dan Def erred charges and intangible

aset takberwujud 255.090 4.233.254 - - 4.488.344 assetsLiabilitas imbalan kerja 35.193.509 99.764.325 10.666.594 - 145.624.428 Employ ee benef its liabilitiesCadangan persediaan usang dan Allowance f or obsolete and slow

bergerak lambat 14.843.066 (583.057) - - 14.260.009 mov ing inv entoriesCadangan penurunan nilai piutang 2.386.406 214.038 - - 2.600.444 Allowance f or impairment of receiv ablesTunjangan produktiv itas Productiv ity allowances and

dan uang jasa 64.307.228 (14.471.656) - - 49.835.572 and incentiv e compensationPeny isihan lain-lain 38.332.561 (17.845.787) - - 20.486.774 Other prov isions

Jumlah 616.212.376 (19.105.794) 10.666.594 - 607.773.176 Subtotal

Entitas anak SubsidiariesAset tetap (60.459.000) (37.426.526) - - (97.885.526) Fixed assetsAset sewa pembiay aan (947.796) 1.045.434 - - 97.638 Leased assetsCadangan penurunan nilai piutang 8.198.544 2.911.354 - - 11.109.898 Allowance f or impairment of receiv ablesLiabilitas imbalan kerja 94.471.017 (5.402.497) 50.836.654 - 139.905.174 Employ ee benef its liabilitiesCadangan persediaan usang dan Allowance f or obsolete and slow

bergerak lambat 7.240.026 307.969 - - 7.547.995 mov ing inv entoriesTunjangan produktiv itas Productiv ity allowances and

dan uang jasa 58.711.636 (7.710.664) - - 51.000.972 incentiv e compensationCadangan biay a bongkar 6.655.214 583.754 - - 7.238.968 Allowance f or dismantle costAkumulasi rugi f iskal 20.072.446 5.733.799 - - 25.806.245 Accumulated f iscal lossPeny isihan lain-lain 2.337.860 9.399.921 - 19.222 11.757.003 Other prov isions

Jumlah 136.279.947 (30.557.456) 50.836.654 19.222 156.578.367 Subtotal

Jumlah aset pajak tangguhan - neto 752.492.323 (49.663.250) 61.503.248 19.222 764.351.543 Total def erred tax assets - net


Aset tetap (184.205.165) (58.505.930) - - (242.711.095) Fixed assetsNilai wajar aset atas Fair v alue assets

akuisisi entitas anak (22.954.986) 3.679.273 - - (19.275.713) of acquisition subsidiaryAset sewa pembiay aan (2.631.711) (14.559.357) - - (17.191.068) Leased assetsLiabilitas imbalan kerja 75.840.201 8.612.982 35.531.094 - 119.984.277 Employ ee benef its liabilitiesCadangan persediaan usang dan Allowance f or obsolete and slow

bergerak lambat 5.980.879 558.871 - - 6.539.750 mov ing inv entoriesCadangan penurunan nilai piutang 15.337.060 (2.303.451) - - 13.033.609 Allowance f or impairment of receiv ablesTunjangan produktiv itas Productiv ity allowances and

dan uang jasa 51.518.798 (13.280.810) - - 38.237.988 incentiv e compensationAkumulasi rugi f iskal 14.540.287 4.449.934 - - 18.990.221 Fiscal loss carry f orwardPeny isihan lain-lain 7.923.757 2.930.088 - - 10.853.845 Other prov isions

Jumlah liabilitas pajak tangguhan - neto (38.650.880) (68.418.400) 35.531.094 - (71.538.186) Total def erred tax liabilites - net

Manf aat pajak tangguhan - neto (118.081.650) 97.034.342 Def erred tax income - net








(Continued)

- 111 -

Dikreditkan(dibebankan)

ke penghasilanDikreditkan komprehensif

(dibebankan) lain/ke laporan Creditedlaba rugi/ (charged) to Akuisisi


2017 profit or loss income subsidiaries 2017 *)Aset pajak tangguhan - neto Deferred tax asset - netPerseroan The Company

Aset tetap 552.318.257 (94.730.513) - - 457.587.744 Fixed assetsAset sewa pembiay aan 2.492.897 (2.492.897) - - - Leased assetsNilai wajar aset atas Fair v alue assets

akuisisi entitas anak (93.916.638) 6.806.499 - - (87.110.139) of acquisition subsidiaryBeban tangguhan dan Def erred charges and intangible

aset takberwujud 255.090 4.233.254 - - 4.488.344 assetsLiabilitas imbalan kerja 35.193.509 99.764.325 10.666.594 - 145.624.428 Employ ee benef its liabilitiesCadangan persediaan usang dan Allowance f or obsolete and slow

bergerak lambat 14.843.066 (583.057) - - 14.260.009 mov ing inv entoriesCadangan penurunan nilai piutang 2.386.406 214.038 - - 2.600.444 Allowance f or impairment of receiv ablesTunjangan produktiv itas Productiv ity allowances and

dan uang jasa 64.307.228 (14.471.656) - - 49.835.572 and incentiv e compensationPeny isihan lain-lain 38.332.561 (17.845.787) - - 20.486.774 Other prov isions

Jumlah 616.212.376 (19.105.794) 10.666.594 - 607.773.176 Subtotal

Entitas anak SubsidiariesAset tetap (60.459.000) (37.426.526) - - (97.885.526) Fixed assetsAset sewa pembiay aan (947.796) 1.045.434 - - 97.638 Leased assetsCadangan penurunan nilai piutang 8.198.544 2.911.354 - - 11.109.898 Allowance f or impairment of receiv ablesLiabilitas imbalan kerja 94.471.017 (5.402.497) 50.836.654 - 139.905.174 Employ ee benef its liabilitiesCadangan persediaan usang dan Allowance f or obsolete and slow

bergerak lambat 7.240.026 307.969 - - 7.547.995 mov ing inv entoriesTunjangan produktiv itas Productiv ity allowances and

dan uang jasa 58.711.636 (7.710.664) - - 51.000.972 incentiv e compensationCadangan biay a bongkar 6.655.214 583.754 - - 7.238.968 Allowance f or dismantle costAkumulasi rugi f iskal 20.072.446 5.733.799 - - 25.806.245 Accumulated f iscal lossPeny isihan lain-lain 2.337.860 9.399.921 - 19.222 11.757.003 Other prov isions

Jumlah 136.279.947 (30.557.456) 50.836.654 19.222 156.578.367 Subtotal

Jumlah aset pajak tangguhan - neto 752.492.323 (49.663.250) 61.503.248 19.222 764.351.543 Total def erred tax assets - net


Aset tetap (184.205.165) (58.505.930) - - (242.711.095) Fixed assetsNilai wajar aset atas Fair v alue assets

akuisisi entitas anak (22.954.986) 3.679.273 - - (19.275.713) of acquisition subsidiaryAset sewa pembiay aan (2.631.711) (14.559.357) - - (17.191.068) Leased assetsLiabilitas imbalan kerja 75.840.201 8.612.982 35.531.094 - 119.984.277 Employ ee benef its liabilitiesCadangan persediaan usang dan Allowance f or obsolete and slow

bergerak lambat 5.980.879 558.871 - - 6.539.750 mov ing inv entoriesCadangan penurunan nilai piutang 15.337.060 (2.303.451) - - 13.033.609 Allowance f or impairment of receiv ablesTunjangan produktiv itas Productiv ity allowances and

dan uang jasa 51.518.798 (13.280.810) - - 38.237.988 incentiv e compensationAkumulasi rugi f iskal 14.540.287 4.449.934 - - 18.990.221 Fiscal loss carry f orwardPeny isihan lain-lain 7.923.757 2.930.088 - - 10.853.845 Other prov isions

Jumlah liabilitas pajak tangguhan - neto (38.650.880) (68.418.400) 35.531.094 - (71.538.186) Total def erred tax liabilites - net

Manf aat pajak tangguhan - neto (118.081.650) 97.034.342 Def erred tax income - net






(Continued)

- 112 -

Rekonsiliasi antara beban pajak penghasilan seperti yang tercantum dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian dengan hasil perkalian laba akuntansi sebelum pajak penghasilan Perseroan dan tarif pajak yang berlaku adalah sebagai berikut:

Reconciliation between income tax expense as shown in the consolidated statements profit or loss and other comprehensive income and income tax expense calculated using prevailing tax rates is as follows:

2018 2017 *)


Penyesuaian terkait dengan konsolidasi: Adjustment related to consolidation:Bagian atas laba bersih entitas

asosiasi (1.606.458) 9.637.333 Share in net profit of associatesDisesuaikan dengan jurnal Adjusted for consolidation

eliminasi konsolidasi 42.463.916 (4.732.425) elimination

4.145.816.781 2.258.798.226 Beban pajak penghasilan sesuai

tarif pajak 829.163.356 451.759.645 Tax calculated at statutory ratePerbedaan tarif antara perseroan Difference tax rate betw een

dan entitas anak serta koreksi the Company and its subsidiariesfiskal entitas anak 181.867.743 116.187.390 and subsidiaries' f iscal correction

Pengaruh pajak atas perbedaan tetap 8.223.988 35.940.032 Tax effect of permanent differences

Jumlah beban pajak 1.019.255.087 603.887.067 Total tax expense

Berdasarkan peraturan perpajakan Indonesia, Grup menghitung, menetapkan, dan membayar sendiri jumlah pajak yang terutang. SPT konsolidasian tidak diperkenankan dalam peraturan perpajakan di Indonesia. Direktorat Jenderal Pajak (DJP) dapat menetapkan dan mengubah kewajiban pajak dalam batas waktu lima tahun sejak tanggal terutangnya pajak.

Under the taxation laws of Indonesia, the Group submits tax returns on the basis of self assessment. Consolidated tax returns are not permitted under Indonesian taxation laws. The Directorate General of Taxes (DGT) may assess or amend taxes within five years from the date the tax becomes due.

Perseroan Company Pada tahun 2018, Perseroan menerima Surat Perintah Membayar Kelebihan Pajak (SPMKP) No. 80206/051-00206-2018 tanggal 22 Mei 2018 tentang pengembalian kelebihan pajak tahun buku 2016 sesuai SKPKPP No. KEP-00044.PPH/WPJ.19/KP.0303/2018 sebesar Rp90.340.213. Pengembalian tersebut dikompensasi dengan STP tahun buku 2017 sebesar Rp21.755.172 sehingga nilai bersih yang diterima Perseroan sebesar Rp68.585.041. Perseroan mengajukan banding atas keputusan surat pajak tersebut.

In 2018, the Company received Tax Overpayment Refund Order (SPMKP) No. 80206/051-00206-2018 dated May 22, 2018 regarding the refund of tax year 2016 in accordance with SKPKPP No. KEP-00044.PPH/WPJ.19/KP.0303/2018 amounting to Rp90,340,213. The reversal is compensated with STP fiscal year 2017 amounting to Rp21,755,172 so that the net value received by the Company amounted to Rp68,585,041. The Company filed an objection letter againts services.

Pada tanggal 30 Maret 2017, Perseroan telah menerima Surat Ketetapan Pajak Lebih Bayar (SKPLB) yang menyatakan bahwa lebih bayar pajak penghasilan badan tahun 2015 sebesar Rp8.526.880. Selisih hasil SKPLB dengan catatan Perseroan dibebankan sebesar Rp8.166.724 pada tahun berjalan. Pada bulan Juni 2017, Perseroan telah mengajukan keberatan atas sisa lebih bayar pajak.

On March 30, 2017, the company has received a Tax Overpayment Assessment Letter (SKPLB) for 2015 corporate income tax amounting to Rp8,526,880 in 2017. The difference between SKPLB and the carrying amount prepaid tax amounting to Rp8,166,724 was charged to 2017 profit or loss. On June 2017, the Company filed an objection letter against SKPLB.








(Continued)

- 113 -

41. LABA PER SAHAM

41. EARNINGS PER SHARE

Perhitungan laba per saham dasar adalah sebagai berikut:

The computation of basic earnings per share is as follows:

2018 2017 *)

Laba yang dapat diatribusikan Net profit attributable to the equity holderskepada pemilik entitas induk untuk of parent entity for computationperhitungan laba per saham dasar 3.079.115.411 1.620.995.090 of basic earnings per share

Total rata-rata tertimbang Weighted average number ofsaham yang beredar (lembar) 5.931.520.000 5.931.520.000 shares outstanding (shares)

Laba per saham dasar, Basic earnings per share,yang dapat diatribusikan attributable to the equity holderskepada pemilik entitas induk of parent entity

Laba per saham dasar Basic earnings per share(Rupiah penuh) 519 273 (full amount)

Perseroan tidak menghitung laba per saham dilusian karena Perseroan tidak mempunyai efek berpotensi saham biasa yang bersifat dilutif.

The Company did not calculate diluted earnings per share because there was no identified effect or dilutive potential ordinary share.

42. LIABILITAS IMBALAN KERJA 42. EMPLOYEE BENEFITS LIABILITIES

Estimasi liabilitas imbalan kerja tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

The estimated employee benefits liabilities as of December 31, 2018 and 2017 are as follows:

Imbalan kerja jangka pendek Short-term employee benefits

2018 2017

Productivity allow ances,Tunjangan produktivitas, uang jasa, incentives, and Directors'

bonus Direktur dan Komisaris 299.616.953 649.400.133 and Commissioners' bonusesTunjangan pegaw ai lainnya 92.956.120 76.850.700 Other employee allow ances

Jumlah 392.573.073 726.250.833 Total

Imbalan kerja jangka panjang Long-term employee benefits

2018 2017 *)

Liabilitas imbalan pensiun 530.716.821 810.231.948 Pension benefits liabilitiesLiabilitas imbalan pasca kerja lainnya 510.922.755 553.297.744 Other post employment benefit liabilitiesLiabilitas imbalan kerja lainnya 391.619.727 414.349.314 Other employee benefits liabilities

Jumlah 1.433.259.303 1.777.879.006 Total








(Continued)

- 113 -

41. LABA PER SAHAM

41. EARNINGS PER SHARE

Perhitungan laba per saham dasar adalah sebagai berikut:

The computation of basic earnings per share is as follows:

2018 2017 *)

Laba yang dapat diatribusikan Net profit attributable to the equity holderskepada pemilik entitas induk untuk of parent entity for computationperhitungan laba per saham dasar 3.079.115.411 1.620.995.090 of basic earnings per share

Total rata-rata tertimbang Weighted average number ofsaham yang beredar (lembar) 5.931.520.000 5.931.520.000 shares outstanding (shares)

Laba per saham dasar, Basic earnings per share,yang dapat diatribusikan attributable to the equity holderskepada pemilik entitas induk of parent entity

Laba per saham dasar Basic earnings per share(Rupiah penuh) 519 273 (full amount)

Perseroan tidak menghitung laba per saham dilusian karena Perseroan tidak mempunyai efek berpotensi saham biasa yang bersifat dilutif.

The Company did not calculate diluted earnings per share because there was no identified effect or dilutive potential ordinary share.

42. LIABILITAS IMBALAN KERJA 42. EMPLOYEE BENEFITS LIABILITIES

Estimasi liabilitas imbalan kerja tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

The estimated employee benefits liabilities as of December 31, 2018 and 2017 are as follows:

Imbalan kerja jangka pendek Short-term employee benefits

2018 2017

Productivity allow ances,Tunjangan produktivitas, uang jasa, incentives, and Directors'

bonus Direktur dan Komisaris 299.616.953 649.400.133 and Commissioners' bonusesTunjangan pegaw ai lainnya 92.956.120 76.850.700 Other employee allow ances

Jumlah 392.573.073 726.250.833 Total

Imbalan kerja jangka panjang Long-term employee benefits

2018 2017 *)

Liabilitas imbalan pensiun 530.716.821 810.231.948 Pension benefits liabilitiesLiabilitas imbalan pasca kerja lainnya 510.922.755 553.297.744 Other post employment benefit liabilitiesLiabilitas imbalan kerja lainnya 391.619.727 414.349.314 Other employee benefits liabilities

Jumlah 1.433.259.303 1.777.879.006 Total






(Continued)

- 114 -

Program Imbalan Pasti Defined Benefits Plans

a. Dana Pensiun a. Pension Fund

Perseroan memperoleh persetujuan dari Menteri Keuangan Republik Indonesia dengan Surat Keputusan No. B7774/DJM/III.5/12/1976 tanggal 18 Desember 1976 untuk mendirikan Dana Pensiun Semen Gresik yang merupakan dana pensiun manfaat pasti yang dikelola oleh pengurus yang terpisah, yang memberikan manfaat pasti bagi seluruh karyawan yang telah memenuhi persyaratan tertentu apabila karyawan tersebut pensiun, cacat atau meninggal dunia.

The Company received an approval from the Minister of Finance of the Republic of Indonesia in Decision Letter No. B7774/DJM/III.5/12/1976 dated December 18, 1976 to establish a separate trustee-administered pension fund, Dana Pensiun Semen Gresik, from which all employees, after serving a qualifying period, are entitled to defined benefits on retirement, disability or death.

Entitas anak (SP dan ST) masing-masing memperoleh persetujuan dari Menteri Keuangan Republik Indonesia untuk mendirikan dana pensiun manfaat pasti yang dikelola oleh pengurus yang terpisah berdasarkan Surat Keputusan No. S065/MK-II/1979 tanggal 3 April 1979 untuk Dana Pensiun Semen Padang dan No. S-016/MK.13/1989 tanggal 5 Januari 1989 yang telah diubah dengan Surat Keputusan No. Kep-405/KM.17/1999 tanggal 5 Nopember 1999 untuk Dana Pensiun Semen Tonasa yang memberikan manfaat pasti bagi seluruh karyawan yang telah memenuhi persyaratan tertentu apabila karyawan tersebut pensiun, cacat atau meninggal dunia.

Subsidiaries (SP and ST) received approvals from the Minister of Finance of the Republic of Indonesia to establish separate trustee-administered pension funds based on Decision Letter No. S065/MK-II/1979 dated April 3, 1979 for Dana Pensiun Semen Padang and based on Decision Letter No. S-016/MK.13/1989 dated January 5, 1989 as amended by Decision Letter No. Kep-405/KM.17/1999 dated November 5, 1999 for Dana Pensiun Semen Tonasa, from which all employees, after serving a qualifying period, are entitled to defined benefits on retirement, disability or death.

b. Imbalan Pasca Kerja Lainnya b. Other Post Employement Benefits

Perseroan dan entitas anak (SP) bekerjasama dengan Asuransi Jiwa Bersama Bumiputera 1912 (AJB BP) untuk mengelola beberapa imbalan kerja untuk karyawan yang berhak. Manfaat program pada AJB BP tersebut memenuhi persyaratan atas jumlah dan jadual seluruh imbalan terutang yang sesuai dengan yang diperjanjikan oleh SP kepada karyawan, sehingga nilai wajar aset program diukur dalam jumlah yang sama dengan kewajibannya. Sejak 6 Juni 2017, Perseroaan telah mengakhiri kerjasama tersebut (Catatan 52). Adapun manfaat pasca kerja lainnya dalam program tersebut berupa:

The Company and its subsidiary (SP) had cooperation agreements with Asuransi Jiwa Bersama Bumiputera 1912 (AJB BP) to manage several employee benefits programs for eligible employees. Program benefits on AJB BP qualifying program exactly match the amount and timing of benefits under the benefit program which both the Company, SP and employees agreed, thus the fair value of plan is deemed to be present value of the related obligation. On June 6, 2017, the Company had ended these cooperation agreements (Note 52). The employee benefit obligation from such programs are included in other post-employment benefits. Details are as follows:

1) Program tunjangan kesejahteraan hari

tua (TKHT) 1) Old-age benefit program (TKHT)

Berdasarkan kerja sama tersebut, SP membayar premi asuransi kepada AJB BP masing-masing sebesar 5% dan 8% dari gaji dasar asuransi karyawan, dimana tingkat kenaikan tahunan gaji dibatasi maksimum sebesar 7,5% per tahun. Manfaat yang diberikan kepada karyawan diatur secara rinci dalam perjanjian tersebut. AJB BP harus membayar manfaat program tersebut kepada karyawan yang berhak atau kepada tanggungan mereka pada saat karyawan mencapai usia 56 tahun, mengundurkan diri, atau meninggal atau cacat berdasarkan perkalian tertentu dari gaji dasar asuransi pada saat manfaat program tersebut terutang.

Based on such agreement, SP pay insurance premiums to AJB BP at rates of 5% and 8%, respectively, of employees’ insurable salaries, which salaries are subject to a maximum annual increase of 7.5% per annum. The benefits provided to employees were arranged in detail in the agreement. .AJB BP is obligated to pay program benefits to eligible employees or their dependants upon employees attaining 56 years of age, upon resignation, or in event of death or disability of the employees, based on specified multiples of employees’ insurable salaries at the time benefits are due to be paid.







(Continued)

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Jumlah beban SP sehubungan dengan program ini untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp5.279.913 dan Rp5.400.521

The total SP expense in relation to these programs for the years ended December 31, 2018 and 2017 amounted to Rp5,279,913 dan Rp5,400,521, respectively.

2) Program bantuan pemeliharaan

kesehatan purnakarya (BPKP) 2) Pensioners health care assistance

program (BPKP)

SP membayar premi bulanan kepada AJB BP masing-masing sebesar 4,5% dari gaji dasar asuransi karyawan, dimana tingkat kenaikan tahunan gaji dasar asuransi tersebut dibatasi maksimum sebesar 7,5% pertahun. Manfaat yang diberikan kepada karyawan diatur secara rinci dalam perjanjian tersebut. AJB BP harus membayar manfaat program tersebut setiap tahun kepada karyawan yang berhak selama peserta masih hidup setelah karyawan mencapai usia 56 tahun, mengundurkan diri, meninggal atau cacat berdasarkan perkalian tertentu dari gaji dasar asuransi pada saat manfaat program tersebut terutang.

SP paid monthly premium to AJB BP of 4.5% from the basic salary of employee insurance, where the basic annual salary increase rate of insurance was limited to maximum of 7.5% per year. The benefits provided to employees were arranged in detail in the agreement. AJB BP is obligated to pay annual program benefits to eligible employees during their remaining lives upon employees attaining 56 years of age, upon resignation, or in event of death or disability of the employees, based on specified multiplies of employees’ insurable salaries at the time benefits are due to be paid.

Total beban SP sehubungan dengan program ini untuk tahun yang berakhir pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp2.186.472 dan Rp1.797.070.

The total SP expense in relation to this program for the year ended December 31, 2018 and 2017 amounted to Rp2,186,472 and Rp1,797,070, respectively.

3) Program kesejahteraan karyawan (MPP)

3) Employee welfare program (MPP)

SP membayar premi bulanan kepada AJB BP sebesar 3% dari gaji dasar asuransi karyawan, dimana kenaikan tingkat kenaikan gaji dasar asuransi tersebut dibatasi maksimum sebesar 7,5% pertahun. Manfaat yang diberikan kepada karyawan diatur secara rinci dalam perjanjian tersebut. AJB BP harus membayar manfaat program tersebut kepada karyawan yang berhak atau kepada tanggungan mereka pada saat karyawan mencapai usia 56 tahun, mengundurkan diri, meninggal atau cacat berdasarkan perkalian tertentu dari gaji dasar asuransi pada saat manfaat program tersebut terutang.

SP paid monthly premium to AJB BP of 3% of the basic salary of employee insurance, where the increase in the basic salary increase rate of insurance was limited to a maximum of 7.5% per year. The benefits provided to employees were arranged in detail in the agreement. AJB BP is obligated to pay annual program benefits to eligible employees or their dependants upon employees attaining 56 years of age, upon resignation, or in event of death or disability of the employees, based on specified multiples of employees’ insurable salaries at the time benefits are due to be paid.

Total beban SP sehubungan dengan program ini untuk periode yang berakhir pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp1.001.091 dan Rp739.910.

The total SP expense in relation to this program during the years ended December 31, 2018 and 2017 amounted to Rp1,001,091 dan Rp739,910, respectively.

Berdasarkan evaluasi dari Manajemen SP atas kondisi aset yang memenuhi syarat sesuai dengan kontrak asuransi, SP membentuk cadangan untuk semua program tersebut pada tanggal 31 Desember 2018 sebesar Rp 175.643.823 (Catatan 24).

Based on SP’s management assessment of the condition the assets under SP’s qualifiying insurance contracts, SP recognized a provision for all the programs as of December 31, 2018 amounting to Rp 175,643,823 (Note 24).







(Continued)

- 115 -

Jumlah beban SP sehubungan dengan program ini untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp5.279.913 dan Rp5.400.521

The total SP expense in relation to these programs for the years ended December 31, 2018 and 2017 amounted to Rp5,279,913 dan Rp5,400,521, respectively.

2) Program bantuan pemeliharaan

kesehatan purnakarya (BPKP) 2) Pensioners health care assistance

program (BPKP)

SP membayar premi bulanan kepada AJB BP masing-masing sebesar 4,5% dari gaji dasar asuransi karyawan, dimana tingkat kenaikan tahunan gaji dasar asuransi tersebut dibatasi maksimum sebesar 7,5% pertahun. Manfaat yang diberikan kepada karyawan diatur secara rinci dalam perjanjian tersebut. AJB BP harus membayar manfaat program tersebut setiap tahun kepada karyawan yang berhak selama peserta masih hidup setelah karyawan mencapai usia 56 tahun, mengundurkan diri, meninggal atau cacat berdasarkan perkalian tertentu dari gaji dasar asuransi pada saat manfaat program tersebut terutang.

SP paid monthly premium to AJB BP of 4.5% from the basic salary of employee insurance, where the basic annual salary increase rate of insurance was limited to maximum of 7.5% per year. The benefits provided to employees were arranged in detail in the agreement. AJB BP is obligated to pay annual program benefits to eligible employees during their remaining lives upon employees attaining 56 years of age, upon resignation, or in event of death or disability of the employees, based on specified multiplies of employees’ insurable salaries at the time benefits are due to be paid.

Total beban SP sehubungan dengan program ini untuk tahun yang berakhir pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp2.186.472 dan Rp1.797.070.

The total SP expense in relation to this program for the year ended December 31, 2018 and 2017 amounted to Rp2,186,472 and Rp1,797,070, respectively.

3) Program kesejahteraan karyawan (MPP)

3) Employee welfare program (MPP)

SP membayar premi bulanan kepada AJB BP sebesar 3% dari gaji dasar asuransi karyawan, dimana kenaikan tingkat kenaikan gaji dasar asuransi tersebut dibatasi maksimum sebesar 7,5% pertahun. Manfaat yang diberikan kepada karyawan diatur secara rinci dalam perjanjian tersebut. AJB BP harus membayar manfaat program tersebut kepada karyawan yang berhak atau kepada tanggungan mereka pada saat karyawan mencapai usia 56 tahun, mengundurkan diri, meninggal atau cacat berdasarkan perkalian tertentu dari gaji dasar asuransi pada saat manfaat program tersebut terutang.

SP paid monthly premium to AJB BP of 3% of the basic salary of employee insurance, where the increase in the basic salary increase rate of insurance was limited to a maximum of 7.5% per year. The benefits provided to employees were arranged in detail in the agreement. AJB BP is obligated to pay annual program benefits to eligible employees or their dependants upon employees attaining 56 years of age, upon resignation, or in event of death or disability of the employees, based on specified multiples of employees’ insurable salaries at the time benefits are due to be paid.

Total beban SP sehubungan dengan program ini untuk periode yang berakhir pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp1.001.091 dan Rp739.910.

The total SP expense in relation to this program during the years ended December 31, 2018 and 2017 amounted to Rp1,001,091 dan Rp739,910, respectively.

Berdasarkan evaluasi dari Manajemen SP atas kondisi aset yang memenuhi syarat sesuai dengan kontrak asuransi, SP membentuk cadangan untuk semua program tersebut pada tanggal 31 Desember 2018 sebesar Rp 175.643.823 (Catatan 24).

Based on SP’s management assessment of the condition the assets under SP’s qualifiying insurance contracts, SP recognized a provision for all the programs as of December 31, 2018 amounting to Rp 175,643,823 (Note 24).





(Continued)

- 116 -

Setelah pengakhiran kontrak kerjasama dengan AJB BP, Perseroan melakukan swakelola benefit paska kerja lainnya tersebut. Entitas anak (ST) juga melakukan swakelola atas imbalan pasca kerja sejenis yang berupa TKHT.

After the termination of the cooperation agreement with AJB BP, the Company has self-managed other post-employment benefits. Subsidiary (ST) also self-manage post-employment benefits which is employee welfare.

c. Imbalan kerja lainnya c. Other employee benefits

Beban imbalan kerja lainnya yang dibebankan pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian merupakan jumlah bersih dari:

Other employee benefits expenses recognized in the consolidated statements of profit or loss and other comprehensive income consists of the net total of the following amounts:

Asumsi aktuarial utama yang digunakan untuk menentukan estimasi liabilitas imbalan kerja karyawan dalam program imbalan pasti pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

The principal actuarial assumptions used to estimate liabilities for employee benefits under defined benefits plans as at December 31, 2018 and 2017 were as follows:

2018 2017

Tingkat mortalita Tabel Mortalita Indonesia 2011 (TMI'II)/ Tabel Mortalita Indonesia 2011 (TMI'II)/ Mortality rateIndonesia Mortality Table 2011 (TMI'II) Indonesia Mortality Table 2011 (TMI'II)

Usia pensiun normal 56 tahun/years 56 tahun/years Normal retirement ageTingkat cacat 10% dari tingkat mortalita/ 10% dari tingkat mortalita/ Disability rate

of mortality rate of mortality rateTingkat kenaikan gaji: Rate of salary increase:

Program pensiun 7,5% per tahun/per annum 7,5% per tahun/per annum Pension planImbalan kerja lainny a 10% per tahun/per annum 10% per tahun/per annum Other employ ee benef its

Tingkat diskonto tahunan 8,14% - 9,59% per tahun/per annum 6,72% - 7,20% per tahun/per annum Annual discount rateTingkat pengembalian Expected return on plan

inv estasi 8,09% - 8,41% per tahun/per annum 6,93% - 7,20% per tahun/per annum assets

Tingkat pengunduran diri 1% (ST: 0,5%) untuk 1% (ST: 0,5%) untuk Voluntary resignation rateumur di bawah 30 tahun umur di bawah 30 tahun

dan menurun secara linear dan menurun secara linearsampai 0% pada umur 54 tahun sampai 0% pada umur 54 tahun(SP: 44 tahun)/ 1% (ST: 0,5%) (SP: 44 tahun)/ 1% (ST: 0,5%)at less than 30 years of age at less than 30 years of ageand reducing linearly to 0% and reducing linearly to 0%

at 54 (SP: 44 years) years of age at 54 (SP: 44 years) years of age

Aset dana pensiun terutama terdiri dari deposito berjangka, surat-surat berharga dan investasi jangka panjang dalam bentuk saham, reksadana, obligasi, tanah dan bangunan.

Pension fund assets mainly consist of time deposits, marketable securities, and long-term investments in shares of stock, mutual funds, bonds and land and buildings.

Tingkat pengembalian investasi yang diharapkan atas aset program ditentukan berdasarkan ekspektasi pasar pada tanggal pelaporan, berlaku untuk periode sampai kewajiban diselesaikan.

The expected rate of return on plan assets is determined based on the market expectations prevailing on that date, applicable to the period over which the obligation is to be settled.







(Continued)

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Imbalan Pensiun Pension Benefits

Beban imbalan kerja yang dibebankan pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian merupakan jumlah neto dari:

Amounts recognized in the consolidated statement of profit or loss and other comprehensive income consists of the net total of the following amounts:

Dana Pensiun/Pension Fund

Imbalan Pasca Kerja Lainnya/

Other post employment

benefit

Biaya jasa kini 52.301.698 15.507.041 65.235.866 133.044.605 Current service costBiaya jasa lalu 6.076.404 - 6.076.404 Past service costBeban bunga neto 58.576.144 43.313.513 30.058.530 131.948.187 Net interest expensePengukuran kembali liabilitas Remeasurement of the net liabilities

imbalan jangka panjang lainnya - - (9.358.658) (9.358.658) of other long-term benefitsKeuntungan dari penyelesaian - - 8.094.208 8.094.208 Gains from settlements

Komponen dari biaya imbalan pasti Components of defined benefit costs yang diakui dalam laba rugi 116.954.246 58.820.554 94.029.946 269.804.746 recognized in profit or loss

Pengukuran kembali liabilitas Remeasurement on the netimbalan pasti - neto: defined benefit liability:

Perubahan dampak batas atas Change in the effect of the asset ceiling,aset, tidak termasuk bunga neto 61.780.939 - - 61.780.939 excluding amount of net interest expense

(Keuntungan) kerugian aktuarial Actuarial (gains) losses arising yang timbul dari perubahan from changes in f inancial asumsi keuangan (452.405.334) (59.251.800) (52.516.814) (564.173.948) assumptions

Kerugian aktuarial yang timbul dari Actuarial losses arising from penyesuaian atas pengalaman 1.324.076 (16.069.906) (7.929.873) (22.675.703) experience adjustments

Imbal hasil aset program (tidak termasuk jumlah yang dimasukkan Return on plan assets (excluding amounts dalam beban bunga neto) 111.955.629 - - 111.955.629 included in net interest expense)

Komponen beban imbalan pasti Components of defined benefit costsyang diakui dalam penghasilan recognised in other comprehensive komprehensif lain (277.344.690) (75.321.706) (60.446.687) (413.113.083) income

Jumlah (160.390.444) (16.501.152) 33.583.259 (143.308.337) Total

Program Imbalan Pasti/Defined Benefits Plans

Imbalan kerja lainnya/Other

employee benefit

2018

Jumlah/Total




benefit

Biaya jasa kini 60.094.353 6.933.037 60.739.741 127.767.131 Current service costBiaya jasa lalu 135.399 - - 135.399 Past service costBeban bunga neto 36.999.451 4.146.376 27.588.371 68.734.198 Net interest expensePengukuran kembali liabilitas Remeasurement of the net liabilities

imbalan jangka panjang lainnya - - 5.363.559 5.363.559 of other long-term benefitsKeuntungan dari penyelesaian - - 9.944.498 9.944.498 Gains from settlements




(Keuntungan) kerugian aktuarial Actuarial (gains) losses arising yang timbul dari perubahan from changes in f inancial asumsi keuangan 514.621.945 - 46.095.696 560.717.641 assumptions

Kerugian aktuarial yang timbul dari Actuarial losses arising from penyesuaian atas pengalaman 24.528.302 - 27.452.629 51.980.931 experience adjustments

Imbal hasil aset program (tidak termasuk jumlah yang dimasukkan Return on plan assets (excluding amounts dalam beban bunga neto) (369.524.524) - - (369.524.524) included in net interest expense)

Komponen beban imbalan pasti Components of defined benefit costsyang diakui dalam penghasilan recognised in other comprehensive komprehensif lain 325.712.952 - 73.548.325 399.261.277 income

Jumlah 422.942.155 11.079.413 177.184.494 611.206.062 Total

2017Program Imbalan Pasti/Defined

Benefits Plans


employee benefit

Jumlah/Total







(Continued)

- 117 -

Imbalan Pensiun Pension Benefits

Beban imbalan kerja yang dibebankan pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian merupakan jumlah neto dari:

Amounts recognized in the consolidated statement of profit or loss and other comprehensive income consists of the net total of the following amounts:




benefit

Biaya jasa kini 52.301.698 15.507.041 65.235.866 133.044.605 Current service costBiaya jasa lalu 6.076.404 - 6.076.404 Past service costBeban bunga neto 58.576.144 43.313.513 30.058.530 131.948.187 Net interest expensePengukuran kembali liabilitas Remeasurement of the net liabilities

imbalan jangka panjang lainnya - - (9.358.658) (9.358.658) of other long-term benefitsKeuntungan dari penyelesaian - - 8.094.208 8.094.208 Gains from settlements




(Keuntungan) kerugian aktuarial Actuarial (gains) losses arising yang timbul dari perubahan from changes in f inancial asumsi keuangan (452.405.334) (59.251.800) (52.516.814) (564.173.948) assumptions

Kerugian aktuarial yang timbul dari Actuarial losses arising from penyesuaian atas pengalaman 1.324.076 (16.069.906) (7.929.873) (22.675.703) experience adjustments

Imbal hasil aset program (tidak termasuk jumlah yang dimasukkan Return on plan assets (excluding amounts dalam beban bunga neto) 111.955.629 - - 111.955.629 included in net interest expense)

Komponen beban imbalan pasti Components of defined benefit costsyang diakui dalam penghasilan recognised in other comprehensive komprehensif lain (277.344.690) (75.321.706) (60.446.687) (413.113.083) income

Jumlah (160.390.444) (16.501.152) 33.583.259 (143.308.337) Total



employee benefit

2018

Jumlah/Total




benefit

Biaya jasa kini 60.094.353 6.933.037 60.739.741 127.767.131 Current service costBiaya jasa lalu 135.399 - - 135.399 Past service costBeban bunga neto 36.999.451 4.146.376 27.588.371 68.734.198 Net interest expensePengukuran kembali liabilitas Remeasurement of the net liabilities

imbalan jangka panjang lainnya - - 5.363.559 5.363.559 of other long-term benefitsKeuntungan dari penyelesaian - - 9.944.498 9.944.498 Gains from settlements




(Keuntungan) kerugian aktuarial Actuarial (gains) losses arising yang timbul dari perubahan from changes in f inancial asumsi keuangan 514.621.945 - 46.095.696 560.717.641 assumptions

Kerugian aktuarial yang timbul dari Actuarial losses arising from penyesuaian atas pengalaman 24.528.302 - 27.452.629 51.980.931 experience adjustments

Imbal hasil aset program (tidak termasuk jumlah yang dimasukkan Return on plan assets (excluding amounts dalam beban bunga neto) (369.524.524) - - (369.524.524) included in net interest expense)

Komponen beban imbalan pasti Components of defined benefit costsyang diakui dalam penghasilan recognised in other comprehensive komprehensif lain 325.712.952 - 73.548.325 399.261.277 income

Jumlah 422.942.155 11.079.413 177.184.494 611.206.062 Total

2017Program Imbalan Pasti/Defined

Benefits Plans


employee benefit

Jumlah/Total





(Continued)

- 118 -

Liabilitas neto imbalan pensiun yang diakui di laporan posisi keuangan konsolidasian adalah sebagai berikut:

The net liability for pension benefits recognized in the consolidated statements of financial position is as follows:

2018 2017

Nilai kini dari kew ajiban 2.625.876.023 2.953.587.974 Present value of benefits liabilitiesNilai w ajar aset (2.095.159.202) (2.143.356.026) Fair value of plan assets

Liabilitas bersih 530.716.821 810.231.948 Net liability

Mutasi nilai kini liabilitas imbalan adalah sebagai berikut:

Movements of the present value of defined benefits obligations is as follows:




benefit

Nilai kini liabilitas imbalan, Present value of the benefit pada 1 Januari 2.953.587.974 553.297.745 414.349.314 3.921.235.033 obligations, at January 1Biaya jasa kini 52.301.698 15.507.041 65.235.866 133.044.605 Current service costBiaya jasa lalu 6.076.404 - - 6.076.404 Past service costBiaya bunga 203.293.420 43.313.513 30.058.530 276.665.463 Interest costKeuntungan aktuarial yang timbul Actuarial gains arising from

dari liabilitas lain-lain - 5.532.917 5.532.917 other long-termbenefitsKeuntungan dari kurtailmen - 8.094.208 8.094.208 Gains from settlements(Keuntungan) dan kerugian aktuarial (Gains) and losses on actuarial

pada liabilitas: liabilities:- (Keuntungan) kerugian aktuarial - Actuarial (gains) losses from

dari perubahan asumsi keuangan (452.405.334) (59.251.800) (52.516.814) (564.173.948) change in f inancial assumption- Kerugian aktuarial dari - Actuarial losses from experience

penyesuaian atas pengalaman 1.324.076 (16.069.906) (7.929.873) (22.675.703) adjustmentsPembayaran manfaat pensiun (144.222.657) (25.873.838) (71.204.421) (241.300.916) Pension benefits paidKontribusi peserta 5.920.442 - - 5.920.442 Participant contributionsNilai kini liabilitas imbalan, Present value of defined benefits

pada 31 Desember 2.625.876.023 510.922.755 391.619.727 3.528.418.505 obligation, December 31

2018



employee benefit

Jumlah/ Total




benefit

Nilai kini liabilitas imbalan, Present value of the benefit pada 1 Januari 2.285.343.866 49.361.621 333.732.892 2.668.438.379 obligations, at January 1Biaya jasa kini 60.094.353 6.933.037 61.271.234 128.298.624 Current service costBiaya jasa lalu 118.770 498.166.910 - 498.285.680 Past service costBiaya bunga 192.378.440 4.146.375 27.700.577 224.225.392 Interest costKeuntungan dari kurtailmen - - 9.944.498 9.944.498 Gains from settlements(Keuntungan) dan kerugian aktuarial (Gains) and losses on actuarial

pada liabilitas: liabilities:- (Keuntungan) kerugian aktuarial - Actuarial (gains) losses from

dari perubahan asumsi keuangan 514.621.945 - 50.683.182 565.305.127 change in f inancial assumption- Kerugian aktuarial dari - Actuarial losses from experience

penyesuaian atas pengalaman 24.528.302 24.712.862 49.241.164 adjustmentsPembayaran manfaat pensiun (129.184.579) (5.310.199) (93.695.931) (228.190.709) Pension benefits paidKontribusi peserta 5.686.877 - - 5.686.877 Participant contributionsNilai kini liabilitas imbalan, Present value of defined benefits

pada 31 Desember 2.953.587.974 553.297.744 414.349.314 3.921.235.032 obligation, December 31

2017



employee benefit

Jumlah/ Total

Biaya jasa lalu imbalan pasca kerja lainnya merupakan berasal dari penghentian program asuransi Perseroan (Catatan 52) dan dibebankan di tahun 2017 laporan laba rugi penghasilan komprehensif lain dalam akun “Beban umum dan administrasi”.

Past service cost of other post employment benefit arising from cancellation of qualifying insurance contract agreements (Note 52) was charged to the 2017 statements of profit or loss and comprehensive income as part of “General and administrative expenses”.







(Continued)

- 119 -

Perubahan dalam nilai wajar aset program adalah sebagai berikut:

Changes in the fair value of plan assets are as follows:

2018 2017

Nilai w ajar aset program pada 1 Januari 2.143.356.026 1.845.408.397 Fair value of plan assets at January 1Pendapatan bunga 159.607.529 154.892.102 Interest incomePengukuran kembali atas Remeasurement on the net

nilai w ajar neto aset program: fair value of plan assets:Keuntungan aktuarial Actuarial gains on plan pada aset program (111.955.629) 369.524.524 assets

Kontribusi pemberi kerja 109.017.289 51.789.309 Employer contributionsKontribusi peserta 7.867.580 5.686.878 Participant contributionsPembayaran manfaat (140.135.809) (127.857.955) Benefits paidPenyesuaian atas aset program (72.597.784) (156.087.229) Adjustment for asset programNilai wajar aset program Fair value of plan assets

pada 31 Desember 2.095.159.202 2.143.356.026 at December 31

Kategori utama aset program sebagai persentase dari nilai wajar jumlah aset program adalah sebagai berikut:

The major categories of plan assets as a percentage of the fair value of the total plan assets are as follows:

2018 2017

Surat Berharga Negara 32% 29% Government bondsKas dan deposito 9% 9% Cash and time depositSaham 10% 10% StocksObligasi 16% 15% Corporate BondsReksadana 8% 12% Mutual fundsTanah dan bangunan 12% 11% Land and buildingsPenempatan langsung 13% 13% Direct placement

Jumlah 100% 100% Total

Asumsi aktuarial yang signifikan untuk penentuan kewajiban imbalan pasti adalah tingkat diskonto dan kenaikan gaji yang diharapkan. Sensitivitas analisis di bawah ini ditentukan berdasarkan masing-masing perubahan asumsi yang mungkin terjadi pada akhir periode pelaporan, dengan semua asumsi lain konstan.

Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

Program Kew ajibanimbalan pasti/ imbalan kerja lainnya/

Defined Other employeebenefit plans benefits

Tingkat diskonto Initial discount rateTingkat diskonto +1% (1.744.691.940) (279.611.405) Discount rate +1%Tingkat diskonto -1% 2.199.918.565 345.388.806 Discount rate -1%

Tingkat kenaikan gaji Future salary increment rateTingkat kenaikan gaji +1% 1.927.122.563 378.932.999 Salary increment rate +1%Tingkat kenaikan gaji -1% (1.825.717.700) (279.856.851) Salary increment rate -1%

31 Desember/ December 31, 2018

Program Kew ajibanimbalan pasti/ imbalan lainnya/

Defined Other employeebenefit plan benefits obligations










(Continued)

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Perubahan dalam nilai wajar aset program adalah sebagai berikut:

Changes in the fair value of plan assets are as follows:

2018 2017

Nilai w ajar aset program pada 1 Januari 2.143.356.026 1.845.408.397 Fair value of plan assets at January 1Pendapatan bunga 159.607.529 154.892.102 Interest incomePengukuran kembali atas Remeasurement on the net

nilai w ajar neto aset program: fair value of plan assets:Keuntungan aktuarial Actuarial gains on plan pada aset program (111.955.629) 369.524.524 assets

Kontribusi pemberi kerja 109.017.289 51.789.309 Employer contributionsKontribusi peserta 7.867.580 5.686.878 Participant contributionsPembayaran manfaat (140.135.809) (127.857.955) Benefits paidPenyesuaian atas aset program (72.597.784) (156.087.229) Adjustment for asset programNilai wajar aset program Fair value of plan assets

pada 31 Desember 2.095.159.202 2.143.356.026 at December 31

Kategori utama aset program sebagai persentase dari nilai wajar jumlah aset program adalah sebagai berikut:

The major categories of plan assets as a percentage of the fair value of the total plan assets are as follows:

2018 2017

Surat Berharga Negara 32% 29% Government bondsKas dan deposito 9% 9% Cash and time depositSaham 10% 10% StocksObligasi 16% 15% Corporate BondsReksadana 8% 12% Mutual fundsTanah dan bangunan 12% 11% Land and buildingsPenempatan langsung 13% 13% Direct placement

Jumlah 100% 100% Total

Asumsi aktuarial yang signifikan untuk penentuan kewajiban imbalan pasti adalah tingkat diskonto dan kenaikan gaji yang diharapkan. Sensitivitas analisis di bawah ini ditentukan berdasarkan masing-masing perubahan asumsi yang mungkin terjadi pada akhir periode pelaporan, dengan semua asumsi lain konstan.

Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

Program Kew ajibanimbalan pasti/ imbalan kerja lainnya/

Defined Other employeebenefit plans benefits




Program Kew ajibanimbalan pasti/ imbalan lainnya/

Defined Other employeebenefit plan benefits obligations








(Continued)

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Durasi rata-rata dari kewajiban imbalan pada tanggal 31 Desember 2018 adalah 13 tahun untuk program dana pensiun dan 15 tahun untuk program manfaat lainnya (2017: 13 tahun dan 15 tahun).

The average duration of the benefit obligation at December 31, 2018 is 13 years for pension benefits and 15 years for other employee benefits (2017: 13 years and 15 years).

Pada tanggal 31 Desember 2018 dan 2017, Grup diharapkan membayar iuran masing-masing sebesar Rp24.151.768 dan Rp24.403.794 untuk program manfaat pasti selama tahun anggaran berikutnya.

As of December 31, 2018 and 2017, the Group expected to make a contribution amounting to Rp24,151,768 and Rp24,403,794, respectively to the defined benefit plans during the next financial year.

Program Iuran Pasti Defined Contribution Plans Dana Pensiun Lembaga Keuangan (DPLK) Dana Pensiun Lembaga Keuangan (DPLK) Karyawan Perseroan mengikuti program pensiun iuran pasti yang meliputi semua karyawan tetap. Program ini dikelola oleh Dana Pensiun Lembaga Keuangan PT Bank Negara Indonesia (Persero) Tbk (DPLK BNI) dan DPLK Allianz-Indonesia yang akta pendiriannya telah disahkan oleh Menteri Keuangan Republik Indonesia dengan Surat Keputusan masing-masing No. KEP-1100/KM.17/1998 dan No. KEP-129/KM.10/2007, tanggal 23 Nopember 1998 dan 9 Juli 2007. Imbalan pensiun akan diberikan apabila karyawan tersebut pensiun, cacat atau meninggal dunia. Iuran untuk program pensiun tersebut adalah sebesar 20% dari gaji bulanan karyawan dan menjadi beban Perseroan.

The Company’s employees joined a defined contribution plan covering all permanent employees. The plan is managed by Dana Pensiun Lembaga Keuangan PT Bank Negara Indonesia (Persero) Tbk (DPLK BNI) and DPLK Allianz-Indonesia, for which the deed of establishments were approved by the Minister of Finance of the Republic of Indonesia in Decision Letters No. KEP-1100/KM.17/1998 and No. KEP-129/KM.10/2007, respectively, dated November 23, 1998 and July 9, 2007. Employees, after serving a qualifying period, are entitled to benefits on retirement, disability or death. Pension fund contributions are 20% of the employees’ monthly salaries, which are borne by the Company.

Entitas anak (SP dan ST) memberikan imbalan iuran pasti untuk karyawan tetap yang diselenggarakan masing-masing oleh DPLK Avrist Assurance dan DPLK Jiwasraya. SP dan ST memberikan kontribusi bulanan kepada DPLK masing-masing sebesar 18% dari gaji prestasi optimal dan 5% dari gaji dasar pensiun. Entitas anak mengakui utang iuran pada DPLK pada tahun dimana karyawan memberikan jasanya. Untuk SP terdapat tambahan kontribusi sebesar 18,46% dari gaji dasar pensiun untuk karyawan tetap yang diangkat setelah tanggal 1 Oktober 2007.

The Company’s subsidiaries (SP and ST) provide defined contribution benefits for all of their permanent employees, which plans are managed by DPLK Avrist Assurance and DPLK Jiwasraya, respectively. SP and ST make monthly contributions to the DPLK amounting to 18% of employees’ take home pay salaries and 5% pensionable based salaries, respectively. The subsidiaries recognize contributions payable to the DPLK when an employee has rendered service during the year. Additional contribution amounting to 18.46% of the employees’ pensionable base salaries for permanent employees’ SP hired after October 1, 2007.

Jumlah beban sehubungan dengan program ini untuk periode yang berakhir pada tanggal-tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp69.430.644 dan Rp92.521.287

The total expense in relation to these programs during the years ended December 31, 2018 and 2017 amounted to Rp69,430,644 and Rp92,521,287, respectively.

Entitas anak (UTSG dan IKSG) menyelenggarakan program pensiun iuran pasti untuk semua karyawan tetapnya yang dikelola masing-masing oleh Dana Pensiun Astra Dua dan Dana Pensiun Lembaga Keuangan Tugu Mandiri.

The subsidiaries (UTSG and IKSG) established a defined contribution plan covering all its permanent employees, which are managed by Dana Pensiun Astra Dua and Dana Pensiun Lembaga Keuangan Tugu Mandiri.

Iuran pensiun yang ditanggung karyawan UTSG dan IKSG masing-masing adalah 3,2% dan 3,5% dari penghasilan dasar pensiun (PhDP), sedangkan yang ditanggung UTSG dan IKSG masing-masing adalah 6,4% dan 6,5% dari PhDP.

Contribution paid by UTSG and IKSG’s employees are 3.2% and 3.5%, respectively of the pension base salaries, while UTSG and IKSG paid 6.4% and 6.5%, respectively of the pension base salaries.

Jumlah beban sehubungan dengan program ini untuk tahun yang berakhir pada 31 Desember 2018 dan 2017 masing-masing sebesar Rp2.238.813 dan Rp2.985.082.

The total expense in relation to these programs during the year ended December 31, 2018 and 2017 amounted to Rp2,238,813 and Rp2,985,082, respectively.







(Continued)

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43. SIFAT DAN TRANSAKSI PIHAK BERELASI 43. NATURE OF RELATIONSHIP AND TRANSACTIONS WITH RELATED PARTIES

Sifat Hubungan dengan Pihak Berelasi Nature of Relationships with Related Parties

Sifat Hubungan Pihak berelasi/Related parties Relationship

Pemegang saham Pemerintah Republik Indonesia/ Government of Republic of Indonesia

Shareholder

Entitas sepengendali: Badan Usaha Milik Negara (BUMN)

BPJS Kesehatan BPJS Ketenagakerjaan Perum Perhutani Unit II Jatim PT Adhi Karya (Persero) Tbk PT Adhi Persada Beton PT Adhi Persada Gedung PT Aneka Jasa Gradika PT Aneka Tambang (Persero) Tbk PT Asuransi Ekspor Indonesia (Persero) PT Asuransi Jasa Indonesia (Persero) PT Asuransi Jiwa Inhealth Indonesia PT Asuransi Jiwasraya (Persero) PT Asuransi Kredit Indonesia (Persero) PT Bank Mandiri (Persero) Tbk PT Bank Negara Indonesia (Persero) Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Rakyat Indonesia Agroniaga Tbk PT Bank Syariah BRI PT Bank Syariah Mandiri PT Bank Tabungan Negara (Persero) Tbk PT Barata Indonesia (Persero) PT Boma Bisma Indra (Persero) PT Brantas Abipraya (Persero) PT Bukit Asam Prima PT Bukit Asam Tbk PT Dahana (Persero) PT Hakaaston PT Hutama Karya (Persero) PT Iglas (Persero) PT Jasamarga Toll Road Maintenance PT Kereta Api Indonesia (Persero) PT Krakatau Bandar Samudera PT Krakatau Daya Listrik PT Krakatau Engineering PT Krakatau Posco PT Krakatau Steel (Persero) Tbk PT Nindya Karya (Persero) PT Pelabuhan Indonesia II (Persero) PT Pelabuhan Indonesia III (Persero) PT Pelabuhan Indonesia IV (Persero) PT Pelayaran Nasional Indonesia (Persero) PT Pembangunan Perumahan (Persero) Tbk PT Perkebunan Nusantara X (Persero) PT Pertamina (Persero) PT Pertamina Patra Niaga PT Perusahaan Listrik Negara (Persero) PT Perusahaan Perdagangan

Indonesia (Persero) PT Petrokimia Gresik (Persero) PT Petrokimia Kayaku PT Petrokopindo Cipta Selaras PT Petrosida Gresik PT Pindad (Persero) PT Pos Indonesia (Persero) PT PP Presisi Tbk PT PP Urban PT Pupuk Kalimantan Timur

Entities under common control: State-owned Enterprise (SOE)







(Continued)

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43. SIFAT DAN TRANSAKSI PIHAK BERELASI 43. NATURE OF RELATIONSHIP AND TRANSACTIONS WITH RELATED PARTIES

Sifat Hubungan dengan Pihak Berelasi Nature of Relationships with Related Parties

Sifat Hubungan Pihak berelasi/Related parties Relationship

Pemegang saham Pemerintah Republik Indonesia/ Government of Republic of Indonesia

Shareholder

Entitas sepengendali: Badan Usaha Milik Negara (BUMN)

BPJS Kesehatan BPJS Ketenagakerjaan Perum Perhutani Unit II Jatim PT Adhi Karya (Persero) Tbk PT Adhi Persada Beton PT Adhi Persada Gedung PT Aneka Jasa Gradika PT Aneka Tambang (Persero) Tbk PT Asuransi Ekspor Indonesia (Persero) PT Asuransi Jasa Indonesia (Persero) PT Asuransi Jiwa Inhealth Indonesia PT Asuransi Jiwasraya (Persero) PT Asuransi Kredit Indonesia (Persero) PT Bank Mandiri (Persero) Tbk PT Bank Negara Indonesia (Persero) Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Rakyat Indonesia Agroniaga Tbk PT Bank Syariah BRI PT Bank Syariah Mandiri PT Bank Tabungan Negara (Persero) Tbk PT Barata Indonesia (Persero) PT Boma Bisma Indra (Persero) PT Brantas Abipraya (Persero) PT Bukit Asam Prima PT Bukit Asam Tbk PT Dahana (Persero) PT Hakaaston PT Hutama Karya (Persero) PT Iglas (Persero) PT Jasamarga Toll Road Maintenance PT Kereta Api Indonesia (Persero) PT Krakatau Bandar Samudera PT Krakatau Daya Listrik PT Krakatau Engineering PT Krakatau Posco PT Krakatau Steel (Persero) Tbk PT Nindya Karya (Persero) PT Pelabuhan Indonesia II (Persero) PT Pelabuhan Indonesia III (Persero) PT Pelabuhan Indonesia IV (Persero) PT Pelayaran Nasional Indonesia (Persero) PT Pembangunan Perumahan (Persero) Tbk PT Perkebunan Nusantara X (Persero) PT Pertamina (Persero) PT Pertamina Patra Niaga PT Perusahaan Listrik Negara (Persero) PT Perusahaan Perdagangan

Indonesia (Persero) PT Petrokimia Gresik (Persero) PT Petrokimia Kayaku PT Petrokopindo Cipta Selaras PT Petrosida Gresik PT Pindad (Persero) PT Pos Indonesia (Persero) PT PP Presisi Tbk PT PP Urban PT Pupuk Kalimantan Timur

Entities under common control: State-owned Enterprise (SOE)





(Continued)

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PT Rekayasa Industri (Persero) PT Semen Baturaja (Persero) Tbk PT Sucofindo (Persero) PT Surveyor Indonesia (Persero) PT Tambang Batubara Bukit Asam (Persero) Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Telekomunikasi Seluler PT Varuna Tirta Prakasya (Persero) PT Waskita Beton Precast PT Waskita Karya (Persero) Tbk PT Wijaya Karya (Persero) Tbk PT Wijaya Karya Industri dan Konstruksi PT Wijaya Karya Realty Tbk PT Wijaya Karya Beton Tbk

Entitas asosiasi PT Swadaya Graha

PT Igasar

Associates

Perusahaan yang dikendalikan oleh suatu entitas yang memiliki pengaruh signifikan pada entitas anak

Geleximco Trading and Investment Joint Stock Company

Hanoi General Export - Import Company (Geleximco)

Sapa Vietnam Joint Stock Company Southern General Import dan Export Joint

Stock Company Thang Long Power Joint Stock Company PT United Tractors Tbk

Companies controlled by an entity which has significant influence over subsidiary

Entitas dimana

Perseroan memiliki pengaruh signifikan secara tidak langsung

Koperasi Warga Semen Gresik PT Cipta Nirmala PT Konsulta Semen Gresik PT Swabina Gatra PT Swabina Gatra Travel

Entities which the Company has indirect significant influence

Entitas dimana entitas anak memiliki pengaruh signikan secara tidak langsung

Koperasi Karyawan Semen Indonesia Beton Koperasi Karyawan Semen Padang Koperasi Karyawan Semen Tonasa Koperasi Karyawan Usaha Sejahtera

Bersama Koperasi Karyawan Warga Varia Usaha

Beton Koperasi Warga UTSG PT Andalan Multi Kencana PT EMKL Topabiring PT Eternit Gresik PT Graha Sarana Gresik PT Kabau Sirah Semen Padang PT Kanitra Mitra Jaya Utama PT Pamapersada Nusantara PT Pasoka Sumber Karya PT PBM Biringkasi Raya PT Pelayaran Tonasa Lines PT Prima Karya Manunggal PT Selo Giri Makmur PT Sumatera Utara Perkasa Semen PT United Tractors Pandu Engineering PT Yasiga Sarana Utama Tonasa Tour & Travel Yayasan Igasar Yayasan Kesehjateraan Semen Tonasa Yayasan Rumah Sakit Semen Padang Semen Indonesia Foundation

Entities which subsidiaries have indirect significant influence







(Continued)

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a. Transaksi-Transaksi Pihak Berelasi a. Transactions with Related Parties

Rincian transaksi dengan pihak berelasi adalah sebagai berikut:

The details of transactions with related parties are as follows:

2018 2017

Penjualan produk Sale of goodsEntitas sepengendali - BUMN: Under common control - SOE:PT Adhi Karya (Persero) Tbk 239.966.392 301.375.162 PT Adhi Karya (Persero) TbkPT Pembangunan PT PembangunanPerumahan (Persero) Tbk 168.210.211 39.024.930 Perumahan (Persero) Tbk

PT Waskita Karya (Persero) Tbk 110.184.276 89.284.626 PT Waskita Karya (Persero) TbkPT Wijaya Karya (Persero) Tbk 97.231.261 75.177.476 PT Wijaya Karya (Persero) TbkPT PP Presisi Tbk 60.533.634 - PT PP Presisi TbkPT Semen Baturaja (Persero) Tbk 59.120.191 116.484.200 PT Semen Baturaja (Persero) TbkPT Adhi Persada Beton 35.117.257 - PT Adhi Persada BetonPT Hutama Karya (Persero) 34.891.587 1.515.314 PT Hutama Karya (Persero)PT Nindya Karya (Persero) 29.593.636 - PT Nindya Karya (Persero)PT Brantas Abipraya (Persero) 22.620.181 3.357.561 PT Brantas Abipraya (Persero)PT Perusahaan Perdagangan PT Perusahaan PerdaganganIndonesia (Persero) 21.347.009 16.213.848 Indonesia (Persero)

PT Waskita Beton Precast 20.731.111 6.633.656 PT Waskita Beton PrecastPT PP Urban 12.656.622 - PT PP UrbanPT Hakaaston 12.655.058 - PT HakaastonPT Wijaya Karya Beton Tbk 7.574.966 - PT Wijaya Karya Beton TbkPT Krakatau Steel (Persero) Tbk 7.065.441 3.468.120 PT Krakatau Steel (Persero) TbkPT Pupuk Kalimantan Timur 3.389.400 7.425.810 PT Pupuk Kalimantan TimurPT Krakatau Engineering 3.287.915 - PT Krakatau EngineeringPT Adhi Persada Gedung 1.785.352 - PT Adhi Persada GedungPT Wijaya Karya Realty Tbk 1.741.148 - PT Wijaya Karya Realty TbkPT Petrokimia Gresik (Persero) 1.263.490 17.090.326 PT Petrokimia Gresik (Persero)PT Rekayasa Industri - 18.840.622 PT Rekayasa IndustriPT Petrokopindo Cipta Selaras - 3.196.507 PT Petrokopindo Cipta SelarasLain-lain (masing-masing Othersdi baw ah Rp 1.000.000) - 988.660 (each below Rp 1,000,000)

Sub jumlah 950.966.137 700.076.818 Subtotal

Entitas asosiasi: Associates:PT Igasar 151.389.772 192.851.158 PT IgasarPT Sw adaya Graha 11.108.883 23.971.141 PT Sw adaya GrahaSub jumlah 162.498.655 216.822.299 Subtotal

Pihak berelasi lainnya: Other related parties:Koperasi Warga Semen Gresik 1.526.908.328 1.479.674.623 Koperasi Warga Semen GresikKoperasi Karyaw an Koperasi Karyaw anSemen Padang 76.654.937 80.771.570 Semen Padang

Koperasi Karyaw an Warga Koperasi Karyaw an Warga Varia Usaha Beton 25.463.073 - Varia Usaha Beton

PT Eternit Gresik 16.572.192 48.366.082 PT Eternit GresikPT Pasoka Sumber Karya 4.099.171 4.709.789 PT Pasoka Sumber KaryaPT Prima Karya Manunggal 535.910 87.189.361 PT Prima Karya ManunggalPT Graha Sarana Gresik - 2.656.401 PT Graha Sarana GresikLain-lain (masing-masing Othersdi baw ah Rp1.000.000) 2.201.475 849.553 (each below Rp 1,000,000)

Sub jumlah 1.652.435.086 1.704.217.379 Subtotal

Jumlah 2.765.899.877 2.621.116.496 Total

Sebagai persentase terhadap As a percentage ofjumlah pendapatan 9,01% 9,42% total revenue

Entitas adalah suatu program imbalan pasca kerja untuk imbalan kerja dari Perseroan atau entitas anak

Dana Pensiun Semen Gresik Dana Pensiun Semen Padang Dana Pensiun Semen Tonasa

Entities is a post-employment benefit plan for the benefit of employees of the Company or subsidiaries







(Continued)

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a. Transaksi-Transaksi Pihak Berelasi a. Transactions with Related Parties

Rincian transaksi dengan pihak berelasi adalah sebagai berikut:

The details of transactions with related parties are as follows:

2018 2017

Penjualan produk Sale of goodsEntitas sepengendali - BUMN: Under common control - SOE:PT Adhi Karya (Persero) Tbk 239.966.392 301.375.162 PT Adhi Karya (Persero) TbkPT Pembangunan PT PembangunanPerumahan (Persero) Tbk 168.210.211 39.024.930 Perumahan (Persero) Tbk

PT Waskita Karya (Persero) Tbk 110.184.276 89.284.626 PT Waskita Karya (Persero) TbkPT Wijaya Karya (Persero) Tbk 97.231.261 75.177.476 PT Wijaya Karya (Persero) TbkPT PP Presisi Tbk 60.533.634 - PT PP Presisi TbkPT Semen Baturaja (Persero) Tbk 59.120.191 116.484.200 PT Semen Baturaja (Persero) TbkPT Adhi Persada Beton 35.117.257 - PT Adhi Persada BetonPT Hutama Karya (Persero) 34.891.587 1.515.314 PT Hutama Karya (Persero)PT Nindya Karya (Persero) 29.593.636 - PT Nindya Karya (Persero)PT Brantas Abipraya (Persero) 22.620.181 3.357.561 PT Brantas Abipraya (Persero)PT Perusahaan Perdagangan PT Perusahaan PerdaganganIndonesia (Persero) 21.347.009 16.213.848 Indonesia (Persero)

PT Waskita Beton Precast 20.731.111 6.633.656 PT Waskita Beton PrecastPT PP Urban 12.656.622 - PT PP UrbanPT Hakaaston 12.655.058 - PT HakaastonPT Wijaya Karya Beton Tbk 7.574.966 - PT Wijaya Karya Beton TbkPT Krakatau Steel (Persero) Tbk 7.065.441 3.468.120 PT Krakatau Steel (Persero) TbkPT Pupuk Kalimantan Timur 3.389.400 7.425.810 PT Pupuk Kalimantan TimurPT Krakatau Engineering 3.287.915 - PT Krakatau EngineeringPT Adhi Persada Gedung 1.785.352 - PT Adhi Persada GedungPT Wijaya Karya Realty Tbk 1.741.148 - PT Wijaya Karya Realty TbkPT Petrokimia Gresik (Persero) 1.263.490 17.090.326 PT Petrokimia Gresik (Persero)PT Rekayasa Industri - 18.840.622 PT Rekayasa IndustriPT Petrokopindo Cipta Selaras - 3.196.507 PT Petrokopindo Cipta SelarasLain-lain (masing-masing Othersdi baw ah Rp 1.000.000) - 988.660 (each below Rp 1,000,000)


Entitas asosiasi: Associates:PT Igasar 151.389.772 192.851.158 PT IgasarPT Sw adaya Graha 11.108.883 23.971.141 PT Sw adaya GrahaSub jumlah 162.498.655 216.822.299 Subtotal

Pihak berelasi lainnya: Other related parties:Koperasi Warga Semen Gresik 1.526.908.328 1.479.674.623 Koperasi Warga Semen GresikKoperasi Karyaw an Koperasi Karyaw anSemen Padang 76.654.937 80.771.570 Semen Padang

Koperasi Karyaw an Warga Koperasi Karyaw an Warga Varia Usaha Beton 25.463.073 - Varia Usaha Beton

PT Eternit Gresik 16.572.192 48.366.082 PT Eternit GresikPT Pasoka Sumber Karya 4.099.171 4.709.789 PT Pasoka Sumber KaryaPT Prima Karya Manunggal 535.910 87.189.361 PT Prima Karya ManunggalPT Graha Sarana Gresik - 2.656.401 PT Graha Sarana GresikLain-lain (masing-masing Othersdi baw ah Rp1.000.000) 2.201.475 849.553 (each below Rp 1,000,000)


Jumlah 2.765.899.877 2.621.116.496 Total

Sebagai persentase terhadap As a percentage ofjumlah pendapatan 9,01% 9,42% total revenue

Entitas adalah suatu program imbalan pasca kerja untuk imbalan kerja dari Perseroan atau entitas anak

Dana Pensiun Semen Gresik Dana Pensiun Semen Padang Dana Pensiun Semen Tonasa

Entities is a post-employment benefit plan for the benefit of employees of the Company or subsidiaries





(Continued)

- 124 -

2018 2017Pembelian produk dan jasa Purchases of goods and servicesEntitas sepengendali - BUMN: Under common control - SOE:PT Perusahaan Listrik Negara PT Perusahaan Listrik Negara(Persero) 1.260.781.947 1.192.838.700 (Persero)

PT Pertamina (Persero) 168.071.400 219.284.474 PT Pertamina (Persero)PT Kereta Api Indonesia PT Kereta Api Indonesia(Persero) 59.774.082 98.851.947 (Persero)

BPJS Ketenagakerjaan 48.021.254 17.326.203 BPJS Ketenagakerjaan PT Pindad (Persero) 47.546.973 27.765.312 PT Pindad (Persero)PT Asuransi Jasa PT Asuransi JasaIndonesia (Persero) 45.082.572 25.243.163 Indonesia (Persero)

PT Petrokima Gresik (Persero) 44.919.465 68.143.169 PT Petrokima Gresik (Persero)PT Pelabuhan Indonesia II PT Pelabuhan Indonesia II(Persero) 39.545.476 51.237.815 (Persero)

PT Telekomunikasi Indonesia PT Telekomunikasi Indonesia(Persero) Tbk 34.823.215 - (Persero) Tbk

PT Waskita Karya (Persero) Tbk 30.989.277 46.026.920 PT Waskita Karya (Persero) TbkPT Asuransi Jiw a Inhealth PT Asuransi Jiw a InhealthIndonesia 24.121.290 10.249.902 Indonesia

PT Dahana (Persero) 22.572.576 17.529.715 PT Dahana (Persero)PT Krakatau Bandar Samudra 14.917.500 - PT Krakatau Bandar SamudraPT Varuna Tirta Prakasya (Persero) 11.119.671 27.730.129 PT Varuna Tirta Prakasya (Persero)PT Sucofindo (Persero) 11.027.270 16.290.725 PT Sucofindo (Persero)PT Pelabuhan Indonesia IV PT Pelabuhan Indonesia IV(Persero) 7.947.894 3.608.418 (Persero)

BPJS Kesehatan 6.726.753 - BPJS KesehatanPT Hutama Karya (Persero) 3.278.000 - PT Hutama Karya (Persero)Perum Perhutani Unit II Jatim 3.086.964 - Perum Perhutani Unit II JatimPT Bukit Asam Prima 2.670.176 14.505.805 PT Bukit Asam PrimaPT Telekomunikasi Seluler 2.553.570 5.085.512 PT Telekomunikasi SelulerPT Asuransi Jiw asraya (Persero) 1.657.489 - PT Asuransi Jiw asraya (Persero)PT Pembangunan Perumahan PT Pembangunan Perumahan(Persero) 1.462.136 22.162.094 (Persero)

PT Surveyor Indonesia (Persero) 1.423.203 - PT Surveyor Indonesia (Persero)PT Bukit Asam Tbk 249.484 2.771.217 PT Bukit Asam TbkPT Adhi Karya (Persero) Tbk - 44.581.887 PT Adhi Karya (Persero) TbkPT Nindya Karya (Persero) - 15.314.397 PT Nindya Karya (Persero)PT Wijaya Karya Industri dan PT Wijaya Karya Industri danKonstruksi - 7.606.187 Konstruksi

PT Barata Indonesia (Persero) - 1.490.616 PT Barata Indonesia (Persero)Lain-lain (masing-masing Othersdi baw ah Rp 1.000.000) 1.855.753 1.271.369 (each below Rp 1,000,000)


Entitas asosiasi: Associates:PT Sw adaya Graha 246.878.261 230.367.948 PT Sw adaya GrahaPT Igasar 26.081.767 50.601.644 PT Igasar








(Continued)

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2018 2017Purchases of goods and

Pembelian produk dan jasa (lanjutan) services (continued)Pihak berelasi lainnya: Other related parties:Dana Pensiun Semen Gresik 1.230.112.878 13.866.871 Dana Pensiun Semen GresikKoperasi Warga Semen Gresik 297.891.490 283.378.732 Koperasi Warga Semen GresikPT Pelayaran Tonasa Lines 258.041.426 136.956.555 PT Pelayaran Tonasa LinesPT Sw abina Gatra 239.683.802 192.816.343 PT Sw abina GatraPT Pasoka Sumber Karya 139.766.345 255.149.069 PT Pasoka Sumber KaryaPT PBM Biringkasi Raya 115.093.400 98.270.740 PT PBM Biringkasi RayaKoperasi Karyaw an Koperasi Karyaw anSemen Tonasa 113.085.643 64.357.696 Semen Tonasa

Dana Pensiun Semen Padang 103.754.779 30.188.803 Dana Pensiun Semen PadangPT EMKL Topabiring 103.244.955 66.765.617 PT EMKL TopabiringKoperasi Keluarga Besar Koperasi Keluarga BesarSemen Padang 86.694.430 89.014.397 Semen Padang

PT United Tractors Tbk 80.655.361 206.184.393 PT United Tractors TbkPT Yasiga Sarana Utama 76.979.590 65.757.449 PT Yasiga Sarana UtamaPT Prima Karya Manunggal 67.870.643 45.679.829 PT Prima Karya ManunggalKoperasi Karyaw an Warga Koperasi Karyaw an WargaVaria Usaha Beton 37.991.601 - Varia Usaha Beton

PT Kanitra Mitra Jayautama 30.805.317 19.697.161 PT Kanitra Mitra JayautamaPT Sumatera Utara PT Sumatera UtaraPerkasa Semen 29.768.261 25.710.731 Perkasa Semen

PT Konsulta Semen Gresik 24.721.875 17.075.988 PT Konsulta Semen GresikPT Sw abina Gatra Travel 22.567.657 7.214.539 PT Sw abina Gatra TravelPT Selo Giri Makmur 22.220.439 - PT Selo Giri MakmurSemen Indonesia Fundation 13.649.909 - Semen Indonesia FundationPT Kabau Sirah Semen Padang 13.279.000 15.235.474 PT Kabau Sirah Semen PadangPT Cipta Nirmala 7.107.788 4.025.409 PT Cipta NirmalaYayasan Igasar 6.129.060 10.001.835 Yayasan IgasarYayasan Kesejahteraan Semen Yayasan Kesejahteraan SemenTonasa 5.827.020 2.683.700 Tonasa

Koperasi Karyaw an Warga Koperasi Karyaw an WargaSemen Indonesia Beton 4.374.064 - Semen Indonesia Beton

Koperasi Warga UTSG 3.681.744 5.931.430 Koperasi Warga UTSGYayasan Rumah Sakit Yayasan Rumah SakitSemen Padang 2.513.857 11.390.131 Semen Padang

PT United Tractors Pandu PT United Tractors PanduEngineering 861.000 4.798.750 Engineering

Dana Pensiun Semen Tonasa - 17.429.658 Dana Pensiun Semen TonasaLain-lain (masing-masing Othersdi baw ah Rp1.000.000) 3.675.319 32.733.700 (each below Rp1,000,000)


Jumlah 5.311.234.071 3.940.200.268 Total

Beban pokok pendapatan 21.356.526.500 19.854.065.409 Cost of revenueBeban penjualan 2.246.818.969 2.411.722.674 Selling expensesBeban umum dan administrasi 2.323.366.279 2.421.984.391 General and administration expenses

Jumlah beban 25.926.711.748 24.687.772.474 Total expensesSebagai persentase terhadap As a percentage of total jumlah beban 20,49% 15,96% expenses

Kompensasi manajemen Compensation of keykunci (Catatan 1) 76.997.111 99.372.379 management (Note 1)

Sebagai persentase terhadap As a percentage of totaljumlah beban penjualan, selling, general andumum dan administrasi 1,68% 2,06% administration expenses







(Continued)

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2018 2017Purchases of goods and

Pembelian produk dan jasa (lanjutan) services (continued)Pihak berelasi lainnya: Other related parties:Dana Pensiun Semen Gresik 1.230.112.878 13.866.871 Dana Pensiun Semen GresikKoperasi Warga Semen Gresik 297.891.490 283.378.732 Koperasi Warga Semen GresikPT Pelayaran Tonasa Lines 258.041.426 136.956.555 PT Pelayaran Tonasa LinesPT Sw abina Gatra 239.683.802 192.816.343 PT Sw abina GatraPT Pasoka Sumber Karya 139.766.345 255.149.069 PT Pasoka Sumber KaryaPT PBM Biringkasi Raya 115.093.400 98.270.740 PT PBM Biringkasi RayaKoperasi Karyaw an Koperasi Karyaw anSemen Tonasa 113.085.643 64.357.696 Semen Tonasa

Dana Pensiun Semen Padang 103.754.779 30.188.803 Dana Pensiun Semen PadangPT EMKL Topabiring 103.244.955 66.765.617 PT EMKL TopabiringKoperasi Keluarga Besar Koperasi Keluarga BesarSemen Padang 86.694.430 89.014.397 Semen Padang

PT United Tractors Tbk 80.655.361 206.184.393 PT United Tractors TbkPT Yasiga Sarana Utama 76.979.590 65.757.449 PT Yasiga Sarana UtamaPT Prima Karya Manunggal 67.870.643 45.679.829 PT Prima Karya ManunggalKoperasi Karyaw an Warga Koperasi Karyaw an WargaVaria Usaha Beton 37.991.601 - Varia Usaha Beton

PT Kanitra Mitra Jayautama 30.805.317 19.697.161 PT Kanitra Mitra JayautamaPT Sumatera Utara PT Sumatera UtaraPerkasa Semen 29.768.261 25.710.731 Perkasa Semen

PT Konsulta Semen Gresik 24.721.875 17.075.988 PT Konsulta Semen GresikPT Sw abina Gatra Travel 22.567.657 7.214.539 PT Sw abina Gatra TravelPT Selo Giri Makmur 22.220.439 - PT Selo Giri MakmurSemen Indonesia Fundation 13.649.909 - Semen Indonesia FundationPT Kabau Sirah Semen Padang 13.279.000 15.235.474 PT Kabau Sirah Semen PadangPT Cipta Nirmala 7.107.788 4.025.409 PT Cipta NirmalaYayasan Igasar 6.129.060 10.001.835 Yayasan IgasarYayasan Kesejahteraan Semen Yayasan Kesejahteraan SemenTonasa 5.827.020 2.683.700 Tonasa


Koperasi Warga UTSG 3.681.744 5.931.430 Koperasi Warga UTSGYayasan Rumah Sakit Yayasan Rumah SakitSemen Padang 2.513.857 11.390.131 Semen Padang

PT United Tractors Pandu PT United Tractors PanduEngineering 861.000 4.798.750 Engineering

Dana Pensiun Semen Tonasa - 17.429.658 Dana Pensiun Semen TonasaLain-lain (masing-masing Othersdi baw ah Rp1.000.000) 3.675.319 32.733.700 (each below Rp1,000,000)


Jumlah 5.311.234.071 3.940.200.268 Total

Beban pokok pendapatan 21.356.526.500 19.854.065.409 Cost of revenueBeban penjualan 2.246.818.969 2.411.722.674 Selling expensesBeban umum dan administrasi 2.323.366.279 2.421.984.391 General and administration expenses

Jumlah beban 25.926.711.748 24.687.772.474 Total expensesSebagai persentase terhadap As a percentage of total jumlah beban 20,49% 15,96% expenses

Kompensasi manajemen Compensation of keykunci (Catatan 1) 76.997.111 99.372.379 management (Note 1)

Sebagai persentase terhadap As a percentage of totaljumlah beban penjualan, selling, general andumum dan administrasi 1,68% 2,06% administration expenses





(Continued)

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2018 2017

Penghasilan keuangan Finance incomeEntitas sepengendali - BUMN: Under common control - SOE:PT Bank Mandiri (Persero) Tbk 75.928.597 15.351.234 PT Bank Mandiri (Persero) TbkPT Bank Negara Indonesia PT Bank Negara Indonesia(Persero) Tbk 7.957.103 11.377.877 (Persero) Tbk

PT Bank Rakyat Indonesia PT Bank Rakyat Indonesia(Persero) Tbk 5.231.111 7.962.174 (Persero) Tbk

PT Bank Syariah Mandiri 7.047 10.002 PT Bank Syariah MandiriPT Bank Tabungan Negara PT Bank Tabungan Negara(Persero) Tbk 5.122 5.966.769 (Persero) Tbk


Entitas asosiasi: Associates:PT Igasar 838.736 772.269 PT Igasar

Jumlah 89.967.716 41.440.325 Total

Jumlah penghasilan keuangan 181.972.833 168.672.686 Total f inance incomeSebagai persentase terhadap As a percentage of jumlah penghasilan keuangan 49,44% 24,57% total f inance income

Beban keuangan Finance costsEntitas sepengendali - BUMN: Under common control - SOE:PT Bank Mandiri (Persero) Tbk 261.348.993 - PT Bank Mandiri (Persero) Tbk

100.245.035 -

Pihak berelasi lainnya: Other related party:Sew a pembiayaan Finance leaseDana Pensiun Semen Gresik 1.171.756 - Dana Pensiun Semen Gresik

Jumlah 362.765.784 - Total

Jumlah beban keuangan 959.259.087 756.448.075 Total f inance costsSebagai persentase terhadap As a percentage ofjumlah beban keuangan 37,82% 0,00% total f inance costs



Transaksi lainnya dengan pihak berelasi tidak material.

All other transactions with related parties are not considered material.







(Continued)

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b. Saldo dengan pihak berelasi b. Balances with related parties

2018 2017Aset AssetsKas dan setara kas Cash and cash equivalentsEntitas sepengendali - BUMN: Under common control - SOE:PT Bank Mandiri (Persero) Tbk 2.251.780.360 1.252.276.929 PT Bank Mandiri (Persero) TbkPT Bank Rakyat Indonesia PT Bank Rakyat Indonesia(Persero) Tbk 884.168.314 323.234.789 (Persero) Tbk

PT Bank Negara Indonesia PT Bank Negara Indonesia(Persero) Tbk 683.330.606 316.946.640 (Persero) Tbk

PT Bank Tabungan Negara PT Bank Tabungan Negara(Persero) Tbk 442.483.657 305.567.757 (Persero) Tbk

PT Bank Syariah Mandiri 16.486.928 14.077.057 PT Bank Syariah Mandiri PT Bank Rakyat Indonesia PT Bank Rakyat IndonesiaAgroniaga Tbk 6.000.000 6.500.000 Agroniaga Tbk

Jumlah 4.284.249.865 2.218.603.172 Total

Sebagai persentase terhadapjumlah aset 8,37% 4,53% As a percentage of total assets

Kas dan setara kas yang Restricted cash and cashdibatasi penggunaannya equivalentsEntitas sepengendali - BUMN: Under common control - SOE:PT Bank Negara Indonesia PT Bank Negara Indonesia(Persero) Tbk 882.402 13.855.648 (Persero) Tbk

PT Bank Rakyat Indonesia PT Bank Rakyat Indonesia(Persero) Tbk 100.000 190.396 (Persero) Tbk

PT Bank Mandiri (Persero) Tbk - 612.841 PT Bank Mandiri (Persero) Tbk

Jumlah 982.402 14.658.885 Total


Investasi jangka pendek Short-term invesmentsEntitas sepengendali - BUMN : Under common control - SOE :Pihak berelasi lainnya Other related partyPT Sw abina Gatra 6.189.831 6.189.831 PT Sw abina GatraPT Eternit Gresik 1.861.173 1.861.173 PT Eternit GresikPT Sumatera Utara PT Sumatera UtaraPerkasa Semen 402.000 402.000 Perkasa Semen

Jumlah 8.453.004 8.453.004 Total








(Continued)

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b. Saldo dengan pihak berelasi b. Balances with related parties

2018 2017Aset AssetsKas dan setara kas Cash and cash equivalentsEntitas sepengendali - BUMN: Under common control - SOE:PT Bank Mandiri (Persero) Tbk 2.251.780.360 1.252.276.929 PT Bank Mandiri (Persero) TbkPT Bank Rakyat Indonesia PT Bank Rakyat Indonesia(Persero) Tbk 884.168.314 323.234.789 (Persero) Tbk

PT Bank Negara Indonesia PT Bank Negara Indonesia(Persero) Tbk 683.330.606 316.946.640 (Persero) Tbk

PT Bank Tabungan Negara PT Bank Tabungan Negara(Persero) Tbk 442.483.657 305.567.757 (Persero) Tbk

PT Bank Syariah Mandiri 16.486.928 14.077.057 PT Bank Syariah Mandiri PT Bank Rakyat Indonesia PT Bank Rakyat IndonesiaAgroniaga Tbk 6.000.000 6.500.000 Agroniaga Tbk

Jumlah 4.284.249.865 2.218.603.172 Total


Kas dan setara kas yang Restricted cash and cashdibatasi penggunaannya equivalentsEntitas sepengendali - BUMN: Under common control - SOE:PT Bank Negara Indonesia PT Bank Negara Indonesia(Persero) Tbk 882.402 13.855.648 (Persero) Tbk

PT Bank Rakyat Indonesia PT Bank Rakyat Indonesia(Persero) Tbk 100.000 190.396 (Persero) Tbk

PT Bank Mandiri (Persero) Tbk - 612.841 PT Bank Mandiri (Persero) Tbk

Jumlah 982.402 14.658.885 Total


Investasi jangka pendek Short-term invesmentsEntitas sepengendali - BUMN : Under common control - SOE :Pihak berelasi lainnya Other related partyPT Sw abina Gatra 6.189.831 6.189.831 PT Sw abina GatraPT Eternit Gresik 1.861.173 1.861.173 PT Eternit GresikPT Sumatera Utara PT Sumatera UtaraPerkasa Semen 402.000 402.000 Perkasa Semen

Jumlah 8.453.004 8.453.004 Total






(Continued)

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2018 2017Aset (lanjutan) Assets (continued)Piutang usaha - neto Trade receivables - netEntitas sepengendali - BUMN: Under common control - SOE:PT Adhi Karya (Persero) Tbk 165.944.304 165.415.159 PT Adhi Karya (Persero) TbkPT Pembangunan Perumahan PT Pembangunan Perumahan(Persero) 154.070.641 79.865.517 (Persero)

PT Wijaya Karya (Persero) Tbk 63.833.038 39.605.942 PT Wijaya Karya (Persero) TbkPT Wijaya Karya Beton Tbk 50.399.459 - PT Wijaya Karya Beton TbkPT PP Presisi Tbk 44.163.017 - PT PP Presisi TbkPT Waskita Karya (Persero) Tbk 38.997.390 42.612.984 PT Waskita Karya (Persero) TbkPT Hutama Karya (Persero) 38.847.848 11.753.328 PT Hutama Karya (Persero)PT Adhi Persada Beton 36.201.935 - PT Adhi Persada BetonPT Semen Baturaja (Persero) Tbk 27.300.365 15.944.917 PT Semen Baturaja (Persero) TbkPT PP Urban 17.494.746 - PT PP UrbanPT Nindya Karya (Persero) 16.357.336 12.793.175 PT Nindya Karya (Persero)PT Hakaaston 13.744.222 - PT HakaastonPT Waskita Beton Precast 12.634.216 7.294.820 PT Waskita Beton PrecastPT. Perusahaan Perdagangan PT. Perusahaan Perdagangan Indonesia (Persero) 6.177.262 1.961.510 Indonesia (Persero)

PT Brantas Abipraya (Persero) 5.969.160 6.536.920 PT Brantas Abipraya (Persero)PT Wijaya Karya Industri dan PT Wijaya Karya Industri dan Konstruksi 3.561.147 - Konstruksi

PT Rekayasa Industri (Persero) 3.439.051 9.482.618 PT Rekayasa Industri (Persero)PT Krakatau Steel (Persero) Tbk 2.888.016 1.586.093 PT Krakatau Steel (Persero) TbkPT Adhi Persada Gedung 2.209.543 - PT Adhi Persada GedungPT Wijaya Karya Realty Tbk 1.933.803 - PT Wijaya Karya Realty TbkPT Krakatau Engineering 1.449.770 1.133.268 PT Krakatau EngineeringPT Jasa Marga Toll Road Maintenance 1.179.518 - PT Jasa Marga Toll Road MaintenancePT Petrokima Gresik (Persero) 133.086 2.471.085 PT Petrokima Gresik (Persero)PT Pupuk Kalimantan Timur 40 1.942.855 PT Pupuk Kalimantan TimurLain-lain (masing-masing Othersdi baw ah Rp1.000.000) 1.355.236 359.907 (below Rp1,000,000)


Entitas asosiasi: Associates:PT Igasar 51.706.549 60.449.421 PT IgasarPT Sw adaya Graha 8.063.210 19.642.509 PT Sw adaya Graha


Pihak berelasi lainnya: Other related parties:Koperasi Warga Semen Gresik 299.765.971 299.138.436 Koperasi Warga Semen GresikPT Prima Karya Manunggal 104.021.020 33.177.802 PT Prima Karya ManunggalThang Long Pow er Joint Stock Thang Long Pow er Joint StockCompany 12.653.564 12.046.193 Company

Koperasi Karyaw an Semen Padang 11.901.379 12.907.025 Koperasi Karyaw an Semen PadangPT Pelayanan Tonasa Lines 2.070.264 - PT Pelayanan Tonasa LinesPT Eternit Gresik 284.355 14.706.623 PT Eternit GresikLain-lain (masing-masing Othersdi baw ah Rp1.000.000) 125.462 1.666.979 (each below Rp1,000,000)


Jumlah 1.200.875.923 854.495.086 Total


Piutang lain-lain - neto Other receivables - netEntitas sepengendali - BUMN: Under common control - SOE:PT Perkebunan Nusantara X (Persero) 1.062.604 531.302 PT Perkebunan Nusantara X (Persero)PT Waskita Karya (Persero) Tbk 1.001.750 1.001.750 PT Waskita Karya (Persero) TbkLain-lain (masing-masing Othersdi baw ah Rp1.000.000) 1.550.185 1.727.717 (each below Rp1,000,000)




Pihak berelasi lainnya: Other related parties:Yayasan Rumah Sakit Semen Padang 20.259.130 17.428.201 Yayasan Rumah Sakit Semen PadangSemen Indonesia Foundation 3.106.091 2.094.103 Semen Indonesia FoundationPT PBM Biringkasi Raya 1.040.559 - PT PBM Biringkasi RayaLain-lain (masing-masing Othersdi baw ah Rp1.000.000) 3.652.087 1.929.727 (each below Rp1,000,000)


Jumlah 45.305.835 36.343.891 Total

Sebagai persentase terhadap jumlah aset 0,09% 0,07% As a percentage of total assets







(Continued)

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2018 2017Liabilitas LiabilitiesUtang usaha Trade payablesEntitas sepengendali - BUMN: Under common control - SOE:PT Perusahaan Listrik Negara PT Perusahaan Listrik Negara(Persero) 217.650.672 252.237.722 (Persero)

PT Pindad (Persero) 24.099.650 8.096.627 PT Pindad (Persero)PT Petrokimia Gresik (Persero) 13.582.452 27.607.730 PT Petrokimia Gresik (Persero)PT Pertamina (Persero) 12.935.094 19.210.494 PT Pertamina (Persero)PT Kereta Api Indonesia PT Kereta Api Indonesia(Persero) 12.867.801 9.045.389 (Persero)

PT Krakatau Posco 10.540.002 6.216.233 PT Krakatau PoscoPT Pelabuhan Indonesia II PT Pelabuhan Indonesia II(Persero) 8.635.536 28.736.701 (Persero)

PT Pembangunan Perumahan PT Pembangunan Perumahan(Persero) Tbk 6.793.411 7.155.677 (Persero) Tbk

BPJS Ketenagakerjaan 5.081.207 - BPJS KetenagakerjaanPT Dahana (Persero) 4.136.274 6.544.700 PT Dahana (Persero)PT Varuna Tirta Prakasya (Persero) 3.875.966 3.522.996 PT Varuna Tirta Prakasya (Persero)PT Sucofindo (Persero) 2.714.120 3.886.445 PT Sucofindo (Persero)PT Adhi Karya (Persero) Tbk 2.574.443 2.574.443 PT Adhi Karya (Persero) TbkPT Asuransi Jasa Indonesia (Persero) 1.888.450 - PT Asuransi Jasa Indonesia (Persero)PT Telekomunikasi Indonesia PT Telekomunikasi Indonesia(Persero) Tbk 915.209 9.258.445 (Persero) Tbk

PT Nindya Karya (Persero) - 9.310.804 PT Nindya Karya (Persero)PT Bukit Asam Prima - 6.677.475 PT Bukit Asam PrimaPT Asuransi Jiw a Inhealth PT Asuransi Jiw a InhealthIndonesia - 2.004.978 Indonesia

Lain-lain (masing-masing Othersdi baw ah Rp1.000.000) 517.609 1.191.665 (each below Rp1,000,000)




Entitas dengan pengaruh signif ikan Entity w ith signif icant influenceatas entitas anak: over a subsidiary:Geleximco 11.767.423 7.258 Geleximco

Pihak berelasi lainnya: Other related parties:PT Sw abina Gatra 55.125.184 85.231.873 PT Sw abina GatraKoperasi Warga Semen Gresik 44.811.898 55.727.950 Koperasi Warga Semen GresikPT Pelayaran Tonasa Lines 30.552.465 36.089.938 PT Pelayaran Tonasa LinesPT Pasoka Sumber Karya 30.376.405 34.522.487 PT Pasoka Sumber KaryaKoperasi Karyaw an Warga Koperasi Karyaw an WargaVaria Usaha Beton 24.069.506 11.371.827 Varia Usaha Beton

PT PBM Biringkasi Raya 21.798.243 28.124.857 PT PBM Biringkasi RayaPT Yasiga Sarana Utama 20.472.570 12.946.233 PT Yasiga Sarana UtamaKoperasi Karyaw an Koperasi Karyaw anSemen Tonasa 19.536.161 15.232.496 Semen Tonasa

PT United Tractors Tbk 14.312.243 25.905.067 PT United Tractors TbkPT Kanitra Mitra Jaya Utama 7.899.766 10.389.050 PT Kanitra Mitra Jaya UtamaPT Konsulta Semen Gresik 6.505.723 13.495.058 PT Konsulta Semen GresikPT EMKL Topabiring 4.657.386 8.757.566 PT EMKL TopabiringKoperasi Karyaw an Semen Padang 4.230.335 7.962.920 Koperasi Karyaw an Semen PadangPT Prima Karya Manunggal 3.621.799 4.518.245 PT Prima Karya ManunggalPT Sumatera Utara PT Sumatera UtaraPerkasa Semen 2.319.706 2.053.017 Perkasa Semen

PT Selo Giri Makmur 2.232.157 2.193.461 PT Selo Giri MakmurKoperasi Karyaw an Usaha Koperasi Karyaw an Usaha Sejahtera Bersama 2.222.244 8.227.207 Sejahtera Bersama


PT Sw abina Gatra Travel 1.501.868 7.608.427 PT Sw abina Gatra TravelPT Cipta Nirmala 1.259.308 2.252.655 PT Cipta NirmalaLain-lain (masing-masing Othersdi baw ah Rp1.000.000) 7.550.634 12.484.900 (each below Rp1,000,000)


Jumlah utang usaha Total trade payablesdengan pihak berelasi 706.916.162 856.887.653 to related parties







(Continued)

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2018 2017Liabilitas LiabilitiesUtang usaha Trade payablesEntitas sepengendali - BUMN: Under common control - SOE:PT Perusahaan Listrik Negara PT Perusahaan Listrik Negara(Persero) 217.650.672 252.237.722 (Persero)

PT Pindad (Persero) 24.099.650 8.096.627 PT Pindad (Persero)PT Petrokimia Gresik (Persero) 13.582.452 27.607.730 PT Petrokimia Gresik (Persero)PT Pertamina (Persero) 12.935.094 19.210.494 PT Pertamina (Persero)PT Kereta Api Indonesia PT Kereta Api Indonesia(Persero) 12.867.801 9.045.389 (Persero)

PT Krakatau Posco 10.540.002 6.216.233 PT Krakatau PoscoPT Pelabuhan Indonesia II PT Pelabuhan Indonesia II(Persero) 8.635.536 28.736.701 (Persero)

PT Pembangunan Perumahan PT Pembangunan Perumahan(Persero) Tbk 6.793.411 7.155.677 (Persero) Tbk

BPJS Ketenagakerjaan 5.081.207 - BPJS KetenagakerjaanPT Dahana (Persero) 4.136.274 6.544.700 PT Dahana (Persero)PT Varuna Tirta Prakasya (Persero) 3.875.966 3.522.996 PT Varuna Tirta Prakasya (Persero)PT Sucofindo (Persero) 2.714.120 3.886.445 PT Sucofindo (Persero)PT Adhi Karya (Persero) Tbk 2.574.443 2.574.443 PT Adhi Karya (Persero) TbkPT Asuransi Jasa Indonesia (Persero) 1.888.450 - PT Asuransi Jasa Indonesia (Persero)PT Telekomunikasi Indonesia PT Telekomunikasi Indonesia(Persero) Tbk 915.209 9.258.445 (Persero) Tbk

PT Nindya Karya (Persero) - 9.310.804 PT Nindya Karya (Persero)PT Bukit Asam Prima - 6.677.475 PT Bukit Asam PrimaPT Asuransi Jiw a Inhealth PT Asuransi Jiw a InhealthIndonesia - 2.004.978 Indonesia

Lain-lain (masing-masing Othersdi baw ah Rp1.000.000) 517.609 1.191.665 (each below Rp1,000,000)




Entitas dengan pengaruh signif ikan Entity w ith signif icant influenceatas entitas anak: over a subsidiary:Geleximco 11.767.423 7.258 Geleximco

Pihak berelasi lainnya: Other related parties:PT Sw abina Gatra 55.125.184 85.231.873 PT Sw abina GatraKoperasi Warga Semen Gresik 44.811.898 55.727.950 Koperasi Warga Semen GresikPT Pelayaran Tonasa Lines 30.552.465 36.089.938 PT Pelayaran Tonasa LinesPT Pasoka Sumber Karya 30.376.405 34.522.487 PT Pasoka Sumber KaryaKoperasi Karyaw an Warga Koperasi Karyaw an WargaVaria Usaha Beton 24.069.506 11.371.827 Varia Usaha Beton

PT PBM Biringkasi Raya 21.798.243 28.124.857 PT PBM Biringkasi RayaPT Yasiga Sarana Utama 20.472.570 12.946.233 PT Yasiga Sarana UtamaKoperasi Karyaw an Koperasi Karyaw anSemen Tonasa 19.536.161 15.232.496 Semen Tonasa

PT United Tractors Tbk 14.312.243 25.905.067 PT United Tractors TbkPT Kanitra Mitra Jaya Utama 7.899.766 10.389.050 PT Kanitra Mitra Jaya UtamaPT Konsulta Semen Gresik 6.505.723 13.495.058 PT Konsulta Semen GresikPT EMKL Topabiring 4.657.386 8.757.566 PT EMKL TopabiringKoperasi Karyaw an Semen Padang 4.230.335 7.962.920 Koperasi Karyaw an Semen PadangPT Prima Karya Manunggal 3.621.799 4.518.245 PT Prima Karya ManunggalPT Sumatera Utara PT Sumatera UtaraPerkasa Semen 2.319.706 2.053.017 Perkasa Semen

PT Selo Giri Makmur 2.232.157 2.193.461 PT Selo Giri MakmurKoperasi Karyaw an Usaha Koperasi Karyaw an Usaha Sejahtera Bersama 2.222.244 8.227.207 Sejahtera Bersama


PT Sw abina Gatra Travel 1.501.868 7.608.427 PT Sw abina Gatra TravelPT Cipta Nirmala 1.259.308 2.252.655 PT Cipta NirmalaLain-lain (masing-masing Othersdi baw ah Rp1.000.000) 7.550.634 12.484.900 (each below Rp1,000,000)


Jumlah utang usaha Total trade payablesdengan pihak berelasi 706.916.162 856.887.653 to related parties





(Continued)

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2018 2017

Liabilitas (lanjutan) Liabilities (continued)Utang lain-lain Other payablesEntitas sepengendali - BUMN: Under common control - SOE:PT Petrokima Gresik (Persero) 11.549.069 17.246.048 PT Petrokima Gresik (Persero)PT Telekomunikasi Indonesia 3.243.152 - PT Telekomunikasi IndonesiaPT Pelabuhan Indonesia III (Persero) 2.158.495 - PT Pelabuhan Indonesia III (Persero)PT Krakatau Daya Listrik 1.983.127 - PT Krakatau Daya ListrikPT Sucofindo (Persero) 1.352.520 - PT Sucofindo (Persero)PT Bank Rakyat Indonesia PT Bank Rakyat Indonesia(Persero) Tbk 1.251.037 - (Persero) Tbk

PT Surveyor Indonesia 581.504 - PT Surveyor IndonesiaPT Asuransi Jasa PT Asuransi JasaIndonesia (Persero) 480.721 - Indonesia (Persero)

PT Krakatau Bandar Samudera 426.951 - PT Krakatau Bandar SamuderaPT Asuransi Jiw asraya (Persero) 270.000 6.351.675 PT Asuransi Jiw asraya (Persero)BPJS Ketenagakerjaan - 4.621.025 BPJS KetenagakerjaanPT Pos Indonesia (Persero) - 165.647 PT Pos Indonesia (Persero)


Entitas asosiasi: Associates:PT Sw adaya Graha - 5.694.074 PT Sw adaya Graha

Pihak berelasi lainnya: Other related parties:PT United Tractors, Tbk 13.354.582 44.094.155 PT United Tractors, TbkKoperasi Karyaw an Usaha Koperasi Karyaw an UsahaSejahtera Bersama 3.668.345 - Sejahtera Bersama

PT Sw abina Gatra 2.453.854 4.558.962 PT Sw abina GatraYayasan Kesejahteraan Yayasan KesejahteraanSemen Tonasa 1.258.383 - Semen Tonasa

PT Konsulta Semen Gresik - 1.766.086 PT Konsulta Semen GresikLain-lain (masing-masing Othersdi baw ah Rp100.000) 2.697.663 1.727.446 (below Rp100,000 each)

Subjumlah 23.432.827 52.146.649 SubtotalJumlah utang lain-lain Total other payablesdengan pihak berelasi 46.729.403 86.225.118 to related parties

Jumlah utang dengan pihak berelasi 753.645.565 943.112.771 Total payables to related parties

Sebagai persentase terhadapjumlah liabilitas 4,16% 5,09% As a percentage of total liabilities

Liabilitas jangka pendek Short-term liabilitiesPinjaman Borrow ingsEntitas sepengendali - BUMN: Under common control - SOE:PT Bank Mandiri (Persero) Tbk 1.265.842.829 357.691.086 PT Bank Mandiri (Persero) TbkPT Bank Negara Indonesia PT Bank Negara Indonesia(Persero) Tbk 14.636.266 1.361.539 (Persero) Tbk

PT Bank Rakyat Indonesia PT Bank Rakyat Indonesia(Persero) Tbk - 13.187.691 (Persero) Tbk

Pihak berelasi lainnya Other related partySapa Vietnam Joint Stock Sapa Vietnam Joint StockCompany 3.889.029 3.702.353 Company

Jumlah 1.284.368.124 375.942.669 Total

Sebagai persentase terhadapjumlah liabilitas 7,09% 2,03% As a percentage of total liabilities







(Continued)

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2018 2017Liabilitas (lanjutan) Liabilities (continued)Liabilitas jangka panjang Long-term liabilitiesPinjaman Bank Bank loansEntitas sepengendali - BUMN: Under common control - SOE:PT Bank Negara Indonesia PT Bank Negara Indonesia(Persero) Tbk 4.564.481.300 318.586.919 (Persero) Tbk

PT Bank Mandiri (Persero) Tbk 291.168.105 3.363.286.345 PT Bank Mandiri (Persero) TbkPT Bank Rakyat Indonesia PT Bank Rakyat Indonesia(Persero) Tbk 3.908.000 22.004.000 (Persero) Tbk

Sindikasi PT Bank Mandiri Syndicated PT Bank Mandiri (Persero) Tbk - 1.415.702.281 (Persero) Tbk

Subjumlah 4.859.557.405 5.119.579.545 SubtotalSebagai persentase terhadapjumlah liabilitas 26,84% 27,64% As a percentage of total liabilities

Liabilitas sew a pembiayaan Finance lease liabilitiesPihak berelasi lainnya Other related partiesPT Pelayaran Tonasa Lines 286.302.685 346.504.082 PT Pelayaran Tonasa LinesDana Pensiun Semen Gresik 10.864.086 - Dana Pensiun Semen GresikPT PBM Biringkasi Raya 9.497.433 39.591.100 PT PBM Biringkasi RayaPT United Tractors Pandu PT United Tractors Pandu Engineering 6.035.767 8.009.278 EngineeringKoperasi Karyaw an Semen Koperasi Karyaw an Semen Tonasa 250.893 1.050.370 Tonasa


Jumlah liabilitas jangka panjang 5.172.508.269 5.514.734.375 Total long-term liabilitiesSebagai persentase terhadapjumlah liabilitas 28,57% 29,77% As a percentage of total liabilities

Dalam kegiatan normal usaha, Perseroan melakukan transaksi dengan pihak berelasi. Semua transaksi dengan pihak berelasi telah dilakukan dengan kebijakan dan syarat yang telah disepakati bersama.

In the normal course of business, the Group enters into certain transactions with parties. All transactions with related parties have met the agreed terms and conditions.

44. INFORMASI SEGMEN

44. SEGMENT INFORMATION

Segmen Usaha

Business Segments

Grup melaporkan segmen-segmen berdasarkan PSAK 5 (revisi 2015) berdasarkan segmen usaha sebagai berikut:

The Group’s reportable segments under PSAK 5 (revised 2015) are based on the following business segments:

1. Manufaktur semen dan pendukungnya (Produksi

semen); 2. Produksi non semen yang terdiri dari

penambangan batu kapur dan tanah liat, pembuatan kantong kemasan, pengembangan kawasan industri, beton siap pakai, jasa sistem informasi, logistik, dan perdagangan.

1. Cement manufacturing and support (Cement production);

2. Non-cement productions consist of limestone and clay mining, cement bag manufacturing, industrial real estate, readymix concrete, IT services, logistics, and trading.







(Continued)

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2018 2017Liabilitas (lanjutan) Liabilities (continued)Liabilitas jangka panjang Long-term liabilitiesPinjaman Bank Bank loansEntitas sepengendali - BUMN: Under common control - SOE:PT Bank Negara Indonesia PT Bank Negara Indonesia(Persero) Tbk 4.564.481.300 318.586.919 (Persero) Tbk

PT Bank Mandiri (Persero) Tbk 291.168.105 3.363.286.345 PT Bank Mandiri (Persero) TbkPT Bank Rakyat Indonesia PT Bank Rakyat Indonesia(Persero) Tbk 3.908.000 22.004.000 (Persero) Tbk

Sindikasi PT Bank Mandiri Syndicated PT Bank Mandiri (Persero) Tbk - 1.415.702.281 (Persero) Tbk

Subjumlah 4.859.557.405 5.119.579.545 SubtotalSebagai persentase terhadapjumlah liabilitas 26,84% 27,64% As a percentage of total liabilities

Liabilitas sew a pembiayaan Finance lease liabilitiesPihak berelasi lainnya Other related partiesPT Pelayaran Tonasa Lines 286.302.685 346.504.082 PT Pelayaran Tonasa LinesDana Pensiun Semen Gresik 10.864.086 - Dana Pensiun Semen GresikPT PBM Biringkasi Raya 9.497.433 39.591.100 PT PBM Biringkasi RayaPT United Tractors Pandu PT United Tractors Pandu Engineering 6.035.767 8.009.278 EngineeringKoperasi Karyaw an Semen Koperasi Karyaw an Semen Tonasa 250.893 1.050.370 Tonasa


Jumlah liabilitas jangka panjang 5.172.508.269 5.514.734.375 Total long-term liabilitiesSebagai persentase terhadapjumlah liabilitas 28,57% 29,77% As a percentage of total liabilities

Dalam kegiatan normal usaha, Perseroan melakukan transaksi dengan pihak berelasi. Semua transaksi dengan pihak berelasi telah dilakukan dengan kebijakan dan syarat yang telah disepakati bersama.

In the normal course of business, the Group enters into certain transactions with parties. All transactions with related parties have met the agreed terms and conditions.

44. INFORMASI SEGMEN

44. SEGMENT INFORMATION

Segmen Usaha

Business Segments

Grup melaporkan segmen-segmen berdasarkan PSAK 5 (revisi 2015) berdasarkan segmen usaha sebagai berikut:

The Group’s reportable segments under PSAK 5 (revised 2015) are based on the following business segments:

1. Manufaktur semen dan pendukungnya (Produksi

semen); 2. Produksi non semen yang terdiri dari

penambangan batu kapur dan tanah liat, pembuatan kantong kemasan, pengembangan kawasan industri, beton siap pakai, jasa sistem informasi, logistik, dan perdagangan.

1. Cement manufacturing and support (Cement production);

2. Non-cement productions consist of limestone and clay mining, cement bag manufacturing, industrial real estate, readymix concrete, IT services, logistics, and trading.





(Continued)

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Berikut ini adalah informasi segmen berdasarkan segmen usaha:

Segment information based on business segments is presented below:

2018

Jumlah sebelumProduksi semen/ Produksi non semen/ eliminasi / Total

Cement Non-Cement before Eliminasi/ Konsolidasian/production production eliminations Eliminations Consolidated

PENDAPATAN REVENUEPenjualan pada pihak ketiga Sales to third parties

dan pihak-pihak berelasi 22.362.733.144 8.324.892.826 30.687.625.970 - 30.687.625.970 and related partiesPenjualan antar segmen 4.396.542.654 2.415.089.517 6.811.632.171 (6.811.632.171) - Inter-segment sales

Jumlah penghasilan 26.759.275.798 10.739.982.343 37.499.258.141 (6.811.632.171) 30.687.625.970 Total revenue

LABA USAHA OPERATING INCOMEHasil segmen 4.747.874.662 220.598.554 4.968.473.216 (87.834.096) 4.880.639.120 Segment resultPenghasilan keuangan 179.702.558 11.836.027 191.538.585 (9.565.752) 181.972.833 Finance incomeBeban keuangan (759.731.124) (209.093.715) (968.824.839) 9.565.752 (959.259.087) Finance costsBagian atas laba (rugi) bersih Equity in net profit (loss)

entitas asosiasi (52.004.189) 14.753.697 (37.250.492) 38.856.950 1.606.458 of associates

Laba sebelum pajak penghasilan 4.115.841.907 38.094.563 4.153.936.470 (48.977.146) 4.104.959.324 Profit before income taxBeban pajak penghasilan (997.045.172) (29.016.412) (1.026.061.584) 6.806.498 (1.019.255.086) Income tax expense

Laba bersih tahun berjalan 3.118.796.735 9.078.151 3.127.874.886 (42.170.648) 3.085.704.238 Net profit for the yearLaba yang dapat diatribusikan kepada : Net profit attributable to :

Pemilik entitas induk 3.131.045.677 2.702.293 3.133.747.970 (54.632.557) 3.079.115.413 Equity holders of parent entityKepentingan nonpengendali (12.248.942) 6.375.858 (5.873.084) 12.461.909 6.588.825 Non-controlling interest

Laba bersih tahun berjalan 3.118.796.735 9.078.151 3.127.874.886 (42.170.648) 3.085.704.238 Net profit for the yearSTATEMENTS OF FINANCIAL

LAPORAN POSISI KEUANGAN POSITIONAset segmen 45.570.552.149 6.939.560.510 52.510.112.659 (1.439.860.137) 51.070.252.522 Segment assetsInvestasi pada entitas asosiasi 1.549.194.328 109.316.766 1.658.511.094 (1.572.873.386) 85.637.708 Investments in associates

Jumlah aset 51.155.890.230 Total assets

Liabilitas segmen 14.932.650.072 5.158.256.376 20.090.906.448 (1.671.311.743) 18.419.594.705 Segment liabilities

INFORMASI LAINNYA OTHER INFORMATIONPengeluaran modal 1.402.374.279 235.649.986 1.638.024.265 161.253.800 1.799.278.065 Capital expendituresPenyusutan, deplesi Depreciation, depletion

dan amortisasi 1.351.539.070 310.494.903 1.662.033.973 34.032.498 1.696.066.471 and amortization expense

2017 *)

Jumlah sebelumProduksi semen/ Produksi non semen/ eliminasi / Total

Cement Non-Cement before Eliminasi/ Konsolidasian/production production eliminations Eliminations Consolidated

PENDAPATAN REVENUEPenjualan pada pihak ketiga Sales to third parties

dan pihak-pihak berelasi 21.337.749.355 6.475.914.821 27.813.664.176 - 27.813.664.176 and related partiesPenjualan antar segmen 3.439.038.708 2.960.773.138 6.399.811.846 (6.399.811.846) - Inter-segment sales

Jumlah penghasilan 24.776.788.063 9.436.687.959 34.213.476.022 (6.399.811.846) 27.813.664.176 Total revenue

LABA USAHA OPERATING INCOMEHasil segmen 2.509.638.158 368.644.552 2.878.282.710 (26.976.670) 2.851.306.040 Segment resultPenghasilan keuangan 159.463.977 10.454.656 169.918.633 (1.245.947) 168.672.686 Finance incomeBeban keuangan (680.641.029) (128.353.423) (808.994.452) 52.546.377 (756.448.075) Finance costsBagian atas laba (rugi) bersih Equity in net profit (loss)

entitas asosiasi 89.497.851 11.837.691 101.335.542 (110.972.875) (9.637.333) of associates

Laba sebelum pajak penghasilan 2.077.958.957 262.583.476 2.340.542.433 (86.649.115) 2.253.893.318 Profit before income taxBeban pajak penghasilan (549.588.639) (61.104.927) (610.693.566) 6.806.499 (603.887.067) Income tax expense

Laba bersih tahun berjalan 1.528.370.318 201.478.549 1.729.848.867 (79.842.616) 1.650.006.251 Net profit for the yearLaba yang dapat diatribusikan kepada : Net profit attributable to :

Pemilik entitas induk 1.557.195.399 196.864.378 1.754.059.777 (123.210.107) 1.630.849.670 Equity holders of parent entityKepentingan nonpengendali (28.825.081) 4.614.171 (24.210.910) 43.367.491 19.156.581 Non-controlling interest

Laba bersih tahun berjalan 1.528.370.318 201.478.549 1.729.848.867 (79.842.616) 1.650.006.251 Net profit for the yearSTATEMENTS OF FINANCIAL

LAPORAN POSISI KEUANGAN POSITIONAset segmen 43.867.058.433 6.345.662.458 50.212.720.891 (1.227.735.318) 48.984.985.573 Segment assetsInvestasi pada entitas asosiasi 1.652.901.599 103.353.748 1.756.255.347 (1.672.590.707) 83.664.640 Investments in associates

Jumlah aset 49.068.650.213 Total assets

Liabilitas segmen 16.076.498.720 4.484.580.008 20.561.078.728 (1.538.461.155) 19.022.617.573 Segment liabilities

INFORMASI LAINNYA OTHER INFORMATIONPengeluaran modal 2.257.673.886 1.059.857.771 3.317.531.657 187.294.549 3.504.826.206 Capital expendituresPenyusutan, deplesi Depreciation, depletion

dan amortisasi 1.731.111.490 286.267.312 2.017.378.802 35.623.403 2.053.002.205 and amortization expense








(Continued)

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Segmen Geografis

Geographical Segments

Tabel berikut menunjukkan distribusi dari aset konsolidasian, pengeluaran modal dan pendapatan Grup berdasarkan segmen geografis:

The following table shows the distribution of the Group’s consolidated assets, capital expenditures and revenue by geographical segment:

2018 2017

Aset AssetsJaw a 28.983.818.499 26.565.475.566 JavaLuar Jaw a 19.533.164.091 19.726.710.559 Outside JavaAsia Tenggara 2.480.513.733 2.587.652.201 South East Asia

Jumlah 50.997.496.323 48.879.838.326 Subtotal

Investasi pada entitas asosiasi 85.637.708 83.664.640 Investments in associates

Jumlah 51.083.134.031 48.963.502.966 Total

2018 2017

Pengeluaran modal Capital expendituresJaw a 1.172.854.469 2.266.924.499 JavaLuar Jaw a 538.256.364 1.227.837.441 Outside JavaAsia Tenggara 63.773.013 10.064.264 South East Asia

Jumlah 1.774.883.846 3.504.826.204 Total

Pendapatan RevenueDalam Negeri Domestic

Jaw a 17.496.750.706 13.705.449.863 JavaLuar Jaw a 10.047.020.204 11.860.808.956 Outside Java


Luar Negeri InternationalAsia 3.143.855.060 2.247.405.357 Asia


Jumlah 30.687.625.970 27.813.664.176 Total

Grup berdomisili di Indonesia dan Vietnam. The Group is domiciled in Indonesia and Vietnam.

45. IKATAN DAN PERJANJIAN SIGNIFIKAN 45. COMMITMENTS AND SIGNIFICANT AGREEMENTS

a. Pada tanggal 2 Agustus 2012, Perseroan bersama

beberapa entitas anak menandatangani perjanjian fasilitas Notional Pooling (NP) dengan PT Bank Mandiri (Persero) Tbk. Fasilitas ini merupakan layanan Cash Management yang menawarkan suatu mekanisme saldo konsolidasi pooling untuk optimalisasi pengelolaan dana internal peserta pooling dengan disertai pemberian bunga oleh Bank kepada masing-masing peserta pooling. Berdasarkan adendum pertama yang ditandatangani tanggal 27 Maret 2013, jangka waktu perjanjian adalah selama satu tahun terhitung sejak ditandatanganinya Perjanjian oleh para pihak dan otomatis diperpanjang setiap tahun dengan maksimum selama lima tahun secara terus menerus sepanjang tidak dilakukan pengakhiran oleh salah satu pihak.

a. On August 2, 2012, the Company and certain subsidiaries entered into a Notional Pooling Facility Agreement (NP) with PT Bank Mandiri (Persero) Tbk. This facility is a cash management service that offers a pooling consolidated balance mechanism to optimize the pooling participants’ internal fund management with interest to each pooling participant. Based on the first addendum signed on March 27, 2013, term of the agreement is for one year after the signing of the agreement by the parties and is automatically renewed every year with a maximum of five years as long as not terminated by each parties.







(Continued)

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Segmen Geografis

Geographical Segments

Tabel berikut menunjukkan distribusi dari aset konsolidasian, pengeluaran modal dan pendapatan Grup berdasarkan segmen geografis:

The following table shows the distribution of the Group’s consolidated assets, capital expenditures and revenue by geographical segment:

2018 2017

Aset AssetsJaw a 28.983.818.499 26.565.475.566 JavaLuar Jaw a 19.533.164.091 19.726.710.559 Outside JavaAsia Tenggara 2.480.513.733 2.587.652.201 South East Asia

Jumlah 50.997.496.323 48.879.838.326 Subtotal

Investasi pada entitas asosiasi 85.637.708 83.664.640 Investments in associates

Jumlah 51.083.134.031 48.963.502.966 Total

2018 2017

Pengeluaran modal Capital expendituresJaw a 1.172.854.469 2.266.924.499 JavaLuar Jaw a 538.256.364 1.227.837.441 Outside JavaAsia Tenggara 63.773.013 10.064.264 South East Asia

Jumlah 1.774.883.846 3.504.826.204 Total

Pendapatan RevenueDalam Negeri Domestic

Jaw a 17.496.750.706 13.705.449.863 JavaLuar Jaw a 10.047.020.204 11.860.808.956 Outside Java


Luar Negeri InternationalAsia 3.143.855.060 2.247.405.357 Asia


Jumlah 30.687.625.970 27.813.664.176 Total

Grup berdomisili di Indonesia dan Vietnam. The Group is domiciled in Indonesia and Vietnam.

45. IKATAN DAN PERJANJIAN SIGNIFIKAN 45. COMMITMENTS AND SIGNIFICANT AGREEMENTS

a. Pada tanggal 2 Agustus 2012, Perseroan bersama

beberapa entitas anak menandatangani perjanjian fasilitas Notional Pooling (NP) dengan PT Bank Mandiri (Persero) Tbk. Fasilitas ini merupakan layanan Cash Management yang menawarkan suatu mekanisme saldo konsolidasi pooling untuk optimalisasi pengelolaan dana internal peserta pooling dengan disertai pemberian bunga oleh Bank kepada masing-masing peserta pooling. Berdasarkan adendum pertama yang ditandatangani tanggal 27 Maret 2013, jangka waktu perjanjian adalah selama satu tahun terhitung sejak ditandatanganinya Perjanjian oleh para pihak dan otomatis diperpanjang setiap tahun dengan maksimum selama lima tahun secara terus menerus sepanjang tidak dilakukan pengakhiran oleh salah satu pihak.

a. On August 2, 2012, the Company and certain subsidiaries entered into a Notional Pooling Facility Agreement (NP) with PT Bank Mandiri (Persero) Tbk. This facility is a cash management service that offers a pooling consolidated balance mechanism to optimize the pooling participants’ internal fund management with interest to each pooling participant. Based on the first addendum signed on March 27, 2013, term of the agreement is for one year after the signing of the agreement by the parties and is automatically renewed every year with a maximum of five years as long as not terminated by each parties.





(Continued)

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Pada tanggal 20 Maret 2018, telah dilakukan perubahan dan pernyataan kembali perjanjian pelayanan jasa Notional Pooling antara PT Bank Mandiri (Pesero) Tbk dengan PT Semen Indonesia (Persero) Tbk dan peserta Pooling.

On March 20, 2018, Notional Pooling service agreement between PT Bank Mandiri (Pesero) Tbk and PT Semen Indonesia (Persero) Tbk and Pooling participants was amended.

Saldo fasilitas ini pada 31 Desember 2018 dan 2017 masing-masing sebesar Rp1.415.840.000 dan Rp210.000.000.

As of December 31, 2018 and 2017, balance for this facility is amounting to Rp1,415,840,000 and Rp210,000,000.

b. Pada tanggal 28 Agustus 2014, Perseroan dan

entitas anak melakukan perjanjian Cash Pooling dengan PT Bank Mandiri (Persero) Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Negara Indonesia (Persero) Tbk dan PT Bank CIMB Niaga Tbk. Perjanjian ini mengoptimalkan dan mensinergikan dana Grup. Jangka waktu perjanjian adalah selama satu (1) tahun terhitung sejak ditandatanganinya Perjanjian oleh para pihak dan otomatis diperpanjang setiap tahun dengan maksimum selama lima (5) tahun secara terus menerus sepanjang tidak dilakukan pengakhiran oleh salah satu pihak.

b. On August 28, 2014, the Company and its subsidiaries entered into Cash Pooling agreement with PT Bank Mandiri (Persero) Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Negara Indonesia (Persero) Tbk and PT Bank CIMB Niaga Tbk. The agreement optimizes and synergizes the Group’s funds. The term of the agreement is for one (1) year after the signing of the agreement by the parties and is automatically renewed every year with a maximum of five (5) years as long as not terminated by each parties.

c. Pada tahun 2015, SP menandatangani perjanjian

berupa fasilitas Mandiri Supplier Financing berupa fasilitas pembayaran atas pengadaan barang dan/atau jasa kebutuhan operasional SP kepada supplier dengan PT Bank Mandiri (Persero) Tbk dengan nilai maksimum fasilitas sebesar Rp500.000.000. Fasilitas ini berlaku sampai dengan 27 Juni 2019. Jumlah fasilitas yang telah digunakan per 31 Desember 2018 dan 2017 masing-masing sebesar Rp103.601.064 dan Rp124.859.724.

c. In 2015, SP entered into an agreement for Mandiri Supplier Financing facility for the procurement of goods and or services operational requirements to the supplier of SP with PT Bank Mandiri (Persero) Tbk with maximum facility of Rp500,000,000. This facility is valid until June 27, 2019. The facility used up as of December 31, 2018 and 2017 amounted to Rp103,601,064 and Rp124,859,724 respectively.

d. Pada tanggal 1 Nopember 2016, UTSG

mengadakan perjanjian kerjasama dengan PT Semen Baturaja (Persero) Tbk tentang Jasa Sewa Alat Muat dan Jasa Angkutan Batu Kapur & Tanah Liat di lokasi tambang milik PT Semen Baturaja (Persero) Tbk. Perjanjian ini berlaku selama 36 bulan.

d. On November 1, 2016, UTSG entered into an agreement with PT Semen Baturaja (Persero) Tbk for Unloading Equipment Rental Service and Limestones & Clay Transportation Service at the mining area of PT Semen Baturaja (Persero) Tbk. This agreement valid for 36 months.

e. Pada tanggal 17 Januari 2018, UTSG

mengadakan perjanjian dengan PT Semen Baturaja (Persero) Tbk untuk jasa sewa alat bor dan tenaga ahli peledakan batu kapur, dimana Perusahaan akan membantu aktivitas pengeboran dan peledakan serta membantu pemenuhan kebutuhan batu kapur. Perjanjian ini berlaku selama 16 bulan.

e. On January 17, 2018, UTSG entered into agreements with PT Semen Baturaja (Persero) Tbk for Drilling Machine Rental Service and Service of Experts Limestone blasting at the factory of PT Semen Baturaja (Persero) Tbk, whereas the Company will assist for drilling and blasting activities and assist to fulfill the needs of limestone. This agreement is valid for 16 months.







(Continued)

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f. Pada tanggal 15 September 2014, Perseroan dan Deutsche Bank menandatangi perjanjian Pembayaran (“Payment Processing Agreement”) dimana Deutsche Bank setuju untuk menyediakan jasa layanan pembayaran dalam kapasitasnya sebagai agen pembayar kepada Perseroan. Sehubungan dengan jumlah yang telah dibayarkan Deutsche Bank kepada pemasok Perseroan, Perseroan mempunyai kewajiban kepada Deutsche Bank untuk melunasi jumlah pembayaran tersebut paling lambat pada tanggal pembayaran transaksi. Jumlah klaim yang belum dibayar tidak boleh melebihi USD50.000.000. Pada tanggal 31 Desember 2018 dan 2017, jumlah pembayaran yang terutang masing-masing sebesar Rp102.135 dan Rp2.048.970 disajikan sebagai bagian dari utang usaha kepada pihak ketiga (Catatan 23).

f. On September 15, 2014, the Company and Deutsche Bank entered into Payment Processing Agreement in which Deutsche Bank has agreed to provide certain payment services in its capacity as the paying agent of the Company. Regarding payment amount by Deutsche Bank to supplier, the Company has an obligation to Deutsche Bank to pay such payment amount at the latest on the transaction payment date. The outstanding amount of claims shall not exceed USD50,000,000. As of December 31, 2018 and 2017, the outstanding claims amounted to Rp102,135, and Rp2,048,970, was presented as part of trade payables to third party (Note 23).

g. Perseroan dan entitas anak (SP, ST dan SG)

memiliki beberapa ikatan untuk pembelian persediaan dari beberapa pemasok masing-masing sebesar Rp1.372.963.020, Rp520.348.705, Rp3.528.732.568 dan Rp42.385.811 per 31 Desember 2018; dan RpNihil, Rp726.018.588, Rp172.971.691 dan Rp646.720.746 per 31 Desember 2017. Komitmen pembelian tersebut termasuk komitmen pembelian menggunakan fasilitas non-cash loan yang dimiliki oleh SP dan SG dari PT Bank Mandiri (Persero) Tbk dan PT Bank Negara Indonesia (Persero) Tbk sebesar USD347.265, EUR38.839.199, dan Rp4.816.233.923 pada 31 Desember 2018; dan USD541.054, EUR8.746.781, dan Rp88.909.700 pada 31 Desember 2017 sebagaimana dijelaskan dalam Catatan 20. Penyerahan produk akan dilakukan secara berkala selama jangka waktu tertentu.

g. The Company and its subsidiaries (SP, ST and SG) have various commitments to purchase inventories from various suppliers amounting to Rp1,372,963,020, Rp520,348,705, Rp3,528,732,568 and Rp42,385,811 as of December 31, 2018; and RpNil, Rp726,018,588, Rp172,971,691 and Rp646,720,746 as of December 31, 2017. Such commitments include purchase commitments which will involve the use of non-cash loan facilities owned by SP and SG from PT Bank Mandiri (Persero) Tbk and PT Bank Negara Indonesia (Persero) Tbk in the amount of USD347,265, EUR38,839,199, and Rp4,816,233,923 as of December 31, 2018; and USD541,054, EUR8,746,781, and Rp88,909,700 as of December 31, 2017 as disclosed in Note 20. The products will be delivered within specified periods.

h. Pada tanggal 31 Desember 2018, Perseroan dan

entitas anak (SP) memiliki beberapa ikatan pembelian batubara dari beberapa pemasok sebanyak 1.300.000 ton per tahun dengan harga Rp510 per ton untuk periode 2013 sampai dengan 2021. Harga tersebut akan disesuaikan terhadap nilai kalori, kadar abu, sulfur dan air.

h. As of December 31, 2018, the Company and its subsidiary (SP) have several commitments to purchase coal from several suppliers with total quantity of 1,300,000 tons per year with price Rp510 per ton for year 2013 to 2021. This price is subject to adjustments against caloritic value, ash content, sulfur and water.

Harga dasar tersebut akan ditinjau secara periodik sebelum masa berlaku perjanjian berakhir dan untuk menyesuaikan harga dengan nilai tukar Rupiah terhadap mata uang Dolar Amerika Serikat dan harga dasar galian bahan bakar minyak untuk industri.

Such price will be renewed periodically before the agreement expires and the price will be adjusted with the foreign exchange rate from Rupiah to United States Dollar and basic price of High Speed Diesel (HSD) for Industries.

Sehubungan dengan perjanjian jual beli batubara tersebut, pemasok diwajibkan untuk menyerahkan jaminan pelaksanaan.

In relation to such coal purchase agreement, suppliers are obliged to submit their performance guarantee.







(Continued)

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f. Pada tanggal 15 September 2014, Perseroan dan Deutsche Bank menandatangi perjanjian Pembayaran (“Payment Processing Agreement”) dimana Deutsche Bank setuju untuk menyediakan jasa layanan pembayaran dalam kapasitasnya sebagai agen pembayar kepada Perseroan. Sehubungan dengan jumlah yang telah dibayarkan Deutsche Bank kepada pemasok Perseroan, Perseroan mempunyai kewajiban kepada Deutsche Bank untuk melunasi jumlah pembayaran tersebut paling lambat pada tanggal pembayaran transaksi. Jumlah klaim yang belum dibayar tidak boleh melebihi USD50.000.000. Pada tanggal 31 Desember 2018 dan 2017, jumlah pembayaran yang terutang masing-masing sebesar Rp102.135 dan Rp2.048.970 disajikan sebagai bagian dari utang usaha kepada pihak ketiga (Catatan 23).

f. On September 15, 2014, the Company and Deutsche Bank entered into Payment Processing Agreement in which Deutsche Bank has agreed to provide certain payment services in its capacity as the paying agent of the Company. Regarding payment amount by Deutsche Bank to supplier, the Company has an obligation to Deutsche Bank to pay such payment amount at the latest on the transaction payment date. The outstanding amount of claims shall not exceed USD50,000,000. As of December 31, 2018 and 2017, the outstanding claims amounted to Rp102,135, and Rp2,048,970, was presented as part of trade payables to third party (Note 23).

g. Perseroan dan entitas anak (SP, ST dan SG)

memiliki beberapa ikatan untuk pembelian persediaan dari beberapa pemasok masing-masing sebesar Rp1.372.963.020, Rp520.348.705, Rp3.528.732.568 dan Rp42.385.811 per 31 Desember 2018; dan RpNihil, Rp726.018.588, Rp172.971.691 dan Rp646.720.746 per 31 Desember 2017. Komitmen pembelian tersebut termasuk komitmen pembelian menggunakan fasilitas non-cash loan yang dimiliki oleh SP dan SG dari PT Bank Mandiri (Persero) Tbk dan PT Bank Negara Indonesia (Persero) Tbk sebesar USD347.265, EUR38.839.199, dan Rp4.816.233.923 pada 31 Desember 2018; dan USD541.054, EUR8.746.781, dan Rp88.909.700 pada 31 Desember 2017 sebagaimana dijelaskan dalam Catatan 20. Penyerahan produk akan dilakukan secara berkala selama jangka waktu tertentu.

g. The Company and its subsidiaries (SP, ST and SG) have various commitments to purchase inventories from various suppliers amounting to Rp1,372,963,020, Rp520,348,705, Rp3,528,732,568 and Rp42,385,811 as of December 31, 2018; and RpNil, Rp726,018,588, Rp172,971,691 and Rp646,720,746 as of December 31, 2017. Such commitments include purchase commitments which will involve the use of non-cash loan facilities owned by SP and SG from PT Bank Mandiri (Persero) Tbk and PT Bank Negara Indonesia (Persero) Tbk in the amount of USD347,265, EUR38,839,199, and Rp4,816,233,923 as of December 31, 2018; and USD541,054, EUR8,746,781, and Rp88,909,700 as of December 31, 2017 as disclosed in Note 20. The products will be delivered within specified periods.

h. Pada tanggal 31 Desember 2018, Perseroan dan

entitas anak (SP) memiliki beberapa ikatan pembelian batubara dari beberapa pemasok sebanyak 1.300.000 ton per tahun dengan harga Rp510 per ton untuk periode 2013 sampai dengan 2021. Harga tersebut akan disesuaikan terhadap nilai kalori, kadar abu, sulfur dan air.

h. As of December 31, 2018, the Company and its subsidiary (SP) have several commitments to purchase coal from several suppliers with total quantity of 1,300,000 tons per year with price Rp510 per ton for year 2013 to 2021. This price is subject to adjustments against caloritic value, ash content, sulfur and water.

Harga dasar tersebut akan ditinjau secara periodik sebelum masa berlaku perjanjian berakhir dan untuk menyesuaikan harga dengan nilai tukar Rupiah terhadap mata uang Dolar Amerika Serikat dan harga dasar galian bahan bakar minyak untuk industri.

Such price will be renewed periodically before the agreement expires and the price will be adjusted with the foreign exchange rate from Rupiah to United States Dollar and basic price of High Speed Diesel (HSD) for Industries.

Sehubungan dengan perjanjian jual beli batubara tersebut, pemasok diwajibkan untuk menyerahkan jaminan pelaksanaan.

In relation to such coal purchase agreement, suppliers are obliged to submit their performance guarantee.





(Continued)

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i. Sesuai Akta Perjanjian No. 3 tanggal 5 Agustus 2004 yang dibuat antara Nagari Lubuk Kilangan dengan SP di hadapan Dasrizal, S.H., notaris di Padang, SP mengadakan perikatan dengan masyarakat Lubuk Kilangan (Nagari Lubuk Kilangan) untuk memperoleh hak penambangan seluas 412,03 ha di tanah Bukit Karang Putih dengan termin pembayaran 30%, 30% dan 40% masing-masing di bulan Juni 2004, 2005 dan 2006.

i. Based on Deed of Agreement No. 3 dated August 5, 2004 made between the Nagari Lubuk Kilangan community and SP by Dasrizal, S.H., notary in Padang, SP entered into an agreement with the Nagari Lubuk Kilangan community (Nagari Lubuk Kilangan) to obtain mining rights covering an area of 412.03 hectars (ha) in Bukit Karang Putih area with terms of payment of 30%, 30% and 40% to be paid in June 2004, 2005 and 2006, respectively.

Perolehan hak tersebut sesuai dengan Surat Keputusan Gubernur Sumatera Barat No. 503.545/9/EXPL/DTB-1997 tanggal 6 Juni 1997 dan hasil Peta Bidang dari BPN. Setelah dilakukan pengukuran ulang oleh Badan Pertanahan Nasional (BPN) sesuai Peta Bidang No. 183/2005 tanggal 12 Mei 2005 didapatkan luas sebenarnya 429 ha sehingga jumlah kompensasi diperkirakan Rp12.879.459, diluar kompensasi bentuk lain sebesar Rp2.100.000.

The acquisition of the rights was in accordance with the Decision Letter of Governor of West Sumatera No. 503.545/9/EXPL/DTB-1997 dated June 6, 1997 and results of mapping the area by the National Land Board. Remeasurement of the area by the National Land Board based on the area mapping No. 183/2005 on May 12, 2005 resulted in the actual area involved being 429 ha. As a result, compensation was estimated to be Rp12,879,459, excluding other compensation of Rp2,100,000.

Pada tanggal 7 Juni 2006, Badan Pertanahan Nasional Kota Padang mengirim surat kepada SP yang menyatakan bahwa dari 429 ha di tanah Bukit Karang Putih, 256 ha termasuk dalam kawasan hutan lindung. Dan hal ini sejalan dengan Surat Keputusan Menteri Kehutanan No. 422/KPTS-II/1999 tentang Penunjukan Kawasan Hutan diwilayah Propinsi Daerah Tingkat I Sumatera Barat seluas ± 2.600.268 ha.

On June 7, 2006, the National Land Board of Padang sent a letter to SP stating that out of 429 ha in the Bukit Karang Putih area, 256 ha were included in a forest conservation area. This position was supported by a Decision Letter from the Minister of Forestry No. 422/KPTS-II/1999 on determining of forestry area in Province of West Sumatera about ± 2,600,268 ha.

Pada tanggal 16 Juni 2006, SP mengirim surat kepada Ketua Karapatan Adat Nagari Lubuk Kilangan yang menyatakan bahwa SP akan menunda pembayaran sebesar 40% yang seharusnya dibayar pada bulan Juni 2006 sampai masalah ini diselesaikan oleh masyarakat Nagari Lubuk Kilangan.

On June 16, 2006, SP sent a letter to the Chairman of Karapatan Adat Nagari Lubuk Kilangan Leader stating that SP would delay the 40% payment which should have been paid in June 2006 until the forest conservation issue is resolved by Nagari Lubuk Kilangan.

Dalam usulan Rencana Tata Ruang Wilayah (RTRW) Propinsi Sumatera Barat tahun 2009 yang dibuat oleh Pemerintah Daerah, lahan seluas 429 ha tersebut diusulkan untuk diubah statusnya dari hutan lindung menjadi Areal Penggunaan Lain (APL).

In the proposed Plan for Provincial Area Management of the West Sumatera province for 2009 which was prepared by the Local Government, the status of the 429 ha of land was proposed to be changed from a forest conservation area to a forest concession right.

Berdasarkan hasil pengukuran terakhir yang dilakukan oleh Dinas Kehutanan provinsi Sumatera Barat tertanggal 24 Agustus 2011, lahan 429 ha tersebut menjadi lebih kurang 517 ha yang terdiri dari Areal Penggunaan Lain seluas lebih kurang 114 ha, Hutan Lindung seluas lebih kurang 54 ha, Hutan Suaka Alam seluas lebih kurang 107 ha dan Hutan Produksi Terbatas seluas lebih kurang 242 ha.

Based on the recent measurement taken by Forestry Section of West Sumatera province dated August 24, 2011, the land of 429 ha became approximately 517 hectares, which consist of Area for other purposes of approximately 114 ha, Forest Conservation of approximately 54 ha, Natural Forest Conservation of approximately 107 hectares and Limited Production Forest of approximately 242 ha.







(Continued)

- 137 -

Perda Tata Ruang Kota Padang telah disahkan oleh walikota Padang melalui Peraturan Daerah Kota Padang No. 4 tahun 2012 tanggal 5 Juni 2012 dengan menetapkan di area 429 ha terdapat area hutan suaka alam wisata kurang lebih 69 ha, hutan produksi terbatas kurang lebih 242 ha dan area penggunaan lain kurang lebih 114 ha.

The Regulation on the city layout has been approved by the Padang City Mayor through the Mayoral Regulation of Padang City No. 4 year 2012 dated June 5, 2012, stipulating that the area of 429 ha are forest preserves tourist area of approximately 69 ha, approximately of limited production forest area of 242 ha and the other uses approximately 114 hectares.

Dikarenakan adanya perubahan pada tata ruang Kota Padang, mengenai peruntukan kawasan hutan pada area 412 ha, maka pada tanggal 31 Oktober 2012 telah dilakukan addendum terhadap perjanjian No. 03 tanggal 5 Agustus 2004 antara Nagari Lubuk Kilangan dengan SP, yang meliputi perubahan:

Due to changes in the spatial layout of Padang City, regarding the designation of forest areas in the size of 412 ha, an addendum has been made on October 31, 2012 to the agreement No. 03, dated August 5, 2004 between SP with Nagari Kilangan Lubuk, which include changes in:

Luas lahan yang semula 412 ha menjadi 356 ha.

The area of land which was originally 412 ha to 356 ha.

Nilai kompensasi lahan tahap III dari semula

Rp3.000 per m2 menjadi Rp3.990 per m2 sehingga total nilai kompensasi menjadi kurang lebih Rp13.331.760.

Phase III land compensation value from Rp3,000 per m2 to Rp3,990 per m2 with the total value of compensation approximately amounted to Rp13,331,760.

Izin Pinjam Pakai atas areal hutan produksi terbatas seluas kurang lebih 242 ha telah diperoleh oleh SP berdasarkan Keputusan Menteri Kehutanan No.SK.467/Menhut-II/2013 tertangal 28 Juni 2013. Atas dasar telah diperolehnya izin pinjam pakai dari Menteri Kehutanan maka SP telah melakukan pembayaran tahap III kepada KAN Lubuk Kilangan sesuai dengan Perjanjian antara KAN dan SP berikut perubahan-perubahannya.

Usage permissions over a limited production forest area of approximately 242 ha have been acquired by SP based on the Ministry of Forestry No.SK.467/Menhut-II/2013 dated June 28, 2013. On the basis of having obtained the use permit from the Minister of Forestry, SP has made phase III payments to the KAN Lubuk Kilangan in accordance with the Agreement between KAN and SP, following the amendments.

Sampai dengan tanggal 31 Desember 2018 dan 2017, SP telah mengeluarkan dana masing-masing sebesar Rp22.681.326 dan Rp23.230.005 untuk memperoleh hak penambangan; Rp77.181.273 dan Rp54.356.914 untuk penyiapan fasilitas lahan penambangan yang dicatat sebagai aset dalam pembangunan - tanah (Catatan 15).

As of December 31, 2018 and 2017, SP has spent Rp22,681,326 and Rp23,230,005, respectively to obtain mining rights; Rp77,181,273 and Rp54,356,914 for preparation of mining area facilities which was recorded as construction in progress - land (Note 15).

j. Entitas anak (TLCC) memiliki ikatan untuk

sewa operasi berdasarkan kontrak. Jumlah minimum pembayaran sewa dimasa mendatang berdasarkan sewa operasi yang tidak dapat dibatalkan adalah sebagai berikut:

j. TLCC, a subsidiary, has an operating lease commitment under its contractual arrangements. The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

VND 000 Rp 000

Dalam 1 tahun/Within 1 year 7.006.856 4.379.285 Antara 1 dan 5 tahun/Between 1 year and 5 years 26.715.218 16.697.011 Lebih dari 5 tahun/Over 5 years 187.007.834 116.879.896 Jumlah minimum pembayaran/Total minimum payments 220.729.908 137.956.192

31 Desember 2018/December 31, 2018







(Continued)

- 137 -

Perda Tata Ruang Kota Padang telah disahkan oleh walikota Padang melalui Peraturan Daerah Kota Padang No. 4 tahun 2012 tanggal 5 Juni 2012 dengan menetapkan di area 429 ha terdapat area hutan suaka alam wisata kurang lebih 69 ha, hutan produksi terbatas kurang lebih 242 ha dan area penggunaan lain kurang lebih 114 ha.

The Regulation on the city layout has been approved by the Padang City Mayor through the Mayoral Regulation of Padang City No. 4 year 2012 dated June 5, 2012, stipulating that the area of 429 ha are forest preserves tourist area of approximately 69 ha, approximately of limited production forest area of 242 ha and the other uses approximately 114 hectares.

Dikarenakan adanya perubahan pada tata ruang Kota Padang, mengenai peruntukan kawasan hutan pada area 412 ha, maka pada tanggal 31 Oktober 2012 telah dilakukan addendum terhadap perjanjian No. 03 tanggal 5 Agustus 2004 antara Nagari Lubuk Kilangan dengan SP, yang meliputi perubahan:

Due to changes in the spatial layout of Padang City, regarding the designation of forest areas in the size of 412 ha, an addendum has been made on October 31, 2012 to the agreement No. 03, dated August 5, 2004 between SP with Nagari Kilangan Lubuk, which include changes in:

Luas lahan yang semula 412 ha menjadi 356 ha.

The area of land which was originally 412 ha to 356 ha.

Nilai kompensasi lahan tahap III dari semula

Rp3.000 per m2 menjadi Rp3.990 per m2 sehingga total nilai kompensasi menjadi kurang lebih Rp13.331.760.

Phase III land compensation value from Rp3,000 per m2 to Rp3,990 per m2 with the total value of compensation approximately amounted to Rp13,331,760.

Izin Pinjam Pakai atas areal hutan produksi terbatas seluas kurang lebih 242 ha telah diperoleh oleh SP berdasarkan Keputusan Menteri Kehutanan No.SK.467/Menhut-II/2013 tertangal 28 Juni 2013. Atas dasar telah diperolehnya izin pinjam pakai dari Menteri Kehutanan maka SP telah melakukan pembayaran tahap III kepada KAN Lubuk Kilangan sesuai dengan Perjanjian antara KAN dan SP berikut perubahan-perubahannya.

Usage permissions over a limited production forest area of approximately 242 ha have been acquired by SP based on the Ministry of Forestry No.SK.467/Menhut-II/2013 dated June 28, 2013. On the basis of having obtained the use permit from the Minister of Forestry, SP has made phase III payments to the KAN Lubuk Kilangan in accordance with the Agreement between KAN and SP, following the amendments.

Sampai dengan tanggal 31 Desember 2018 dan 2017, SP telah mengeluarkan dana masing-masing sebesar Rp22.681.326 dan Rp23.230.005 untuk memperoleh hak penambangan; Rp77.181.273 dan Rp54.356.914 untuk penyiapan fasilitas lahan penambangan yang dicatat sebagai aset dalam pembangunan - tanah (Catatan 15).

As of December 31, 2018 and 2017, SP has spent Rp22,681,326 and Rp23,230,005, respectively to obtain mining rights; Rp77,181,273 and Rp54,356,914 for preparation of mining area facilities which was recorded as construction in progress - land (Note 15).

j. Entitas anak (TLCC) memiliki ikatan untuk

sewa operasi berdasarkan kontrak. Jumlah minimum pembayaran sewa dimasa mendatang berdasarkan sewa operasi yang tidak dapat dibatalkan adalah sebagai berikut:

j. TLCC, a subsidiary, has an operating lease commitment under its contractual arrangements. The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

VND 000 Rp 000







(Continued)

- 138 -

VND 000 Rp 000



Berikut ini adalah beberapa perjanjian signifikan atas sewa operasi TLCC:

The following are the significant agreements for operating lease TLCC:

Pada tanggal 27 Pebruari 2002, TLCC memiliki ikatan dengan Hiep Phuoc Joint Venture Company untuk menyewa tanah seluas 102.646 m2 untuk Grinding Plant selama 46 tahun di Area Industrial Hiep Phuoc sejak tanggal 27 Februari 2002 hingga 29 Desember 2048.

On February 27, 2002, TLCC entered into a commitment with Hiep Phuoc Joint Venture Company to rent land with area of 102,646 square meters (m2) for the Grinding Plant for 46 years at Hiep Phuoc Industrial Zone from February 27, 2002 to December 29, 2048.

Pada tanggal 6 Januari 2011, TLCC memiliki

ikatan dengan Quang Ninh’s People Committee untuk menyewa tanah seluas 819.846,8 m2 di Thong Nhat dan Son Duong Communes, Distrik Hoanh Bo, Provinsi Quang Ninh untuk jalan, pengolahan kapur, dan transportasi untuk tanah liat. Sewa selama 30 tahun dari 18 Desember 2009 sampai dengan 18 Desember 2039.

Menurut Keputusan No.1958/QD-UB tentang insentif investasi untuk TLCC, biaya sewa lahan ini dikecualikan untuk TLCC selama 7 tahun sampai dengan May 2017. Tarif sewa adalah VND160/m2/tahun

On January 6, 2011, TLCC entered into a commitment with Quang Ninh’s People Committee to rent land of 819,846.8 m2 at Thong Nhat and Son Duong Communes, Hoanh Bo District, Quang Ninh province for road, lime processing and clay transportation. The duration of rent is 30 years from December 18, 2009 to December 18, 2039. According to Decision No.1958/QD-UB about investment incentives to TLCC, rental fee of this land is exempted to TLCC for 7 years until May 2017. Rental fee is VND160/m2/year.

Pada tanggal 27 Maret 2014, TLCC memiliki

ikatan dengan Quang Ninh’s People Committee untuk menyewa tanah seluas 18.262 m2 di Le Loi dan Son Duong Communes, Distrik Hoanh Bo, Provinsi Quang Ninh untuk jalan, pengolahan kapur, dan transportasi untuk tanah liat. Sewa selama 50 tahun dari 18 September 2002 sampai dengan 18 September 2052.

On Maret 27, 2014, TLCC entered into a commitment with Quang Ninh’s People’s Committee to rent land with an area of 18,262 m2 at Le Loi and Son Duong Communes, Hoanh Bo District, Quang Ninh province for road, lime processing and clay transportation. The duration of rent is 50 years from September 18, 2002 to September 18, 2052.

Menurut Keputusan No.1958/QD-UB tentang insentif investasi untuk TLCC, biaya sewa lahan ini dikecualikan untuk TLCC selama 7 tahun sampai Desember 2017. Tarif sewa adalah VND 363/m2/tahun.

Pada tanggal 15 Juni 2015, TLCC memiliki ikatan dengan Quang Ninh’s People Committee untuk menyewa tanah seluas 58.557 m2 di Le Loi dan Son Duong Communes, Distrik Hoanh Bo, Provinsi Quang Ninh untuk eksplorasi tanah liat di pertambangan Yen My. Sewa selama 14 tahun dari 15 Juni 2015 sampai dengan 31 Desember 2030.

According to Decision No.1958/QD-UB on investment incentives to TLCC, rental fee of this land is exempted to TLCC for 7 years to December 2017. Rental fee is VND 363/m2/year.

On June 15, 2015, TLCC entered into a commitment with Quang Ninh’s People’s Committee to rent land with an area of 58,557 m2 at Le Loi and Son Duong Communes, Hoanh Bo District, Quang Ninh province for clay exploration at Ye My Mining. The duration of rent is 14 years from June 15, 2015 to December 31, 2030.







(Continued)

- 139 -

Menurut keputusan No.2867/QD-UB, biaya sewa tanah TLCC dalam eksplorasi tanah liat untuk kegiatan produksi adalah VND 1.883/m2/tahun.

According to Decision No.2867/QD-UB on rental fee for land of TLCC for clay exploration for production activity is VND 1,883/m2/year.

Pada tanggal 30 November 2016, TLCC

memiliki ikatan dengan Quang Ninh’s People Committee untuk menyewa tanah seluas 1.480.382 m2 di Le Loi Commune, Distrik Hoanh Bo, Propinsi Quang Ninh untuk pabrik utama, jalan dan stasiun. Sewa selama 36 tahun dari 30 November 2011 sampai dengan 1 Oktober 2052.

Biaya Sewa dibayarkan tahunan dan dihitung dengan tingkat bunga tetap mulai dari 18 Oktober 2016 sampai dengan 18 Oktober 2021. Tarif biaya sewa 5 tahun pertama adalah sebesar VND 2.655-5309/m2/tahun untuk pabrik utama dan VND300-508/m2/tahun untuk jalan dan stasiun. Sesudah itu, kontrak baru akan ditandatangani dengan biaya sewa yang baru.

On November 30, 2016, TLCC entered into a commitment with Quang Ninh’s People Committee to rent land with an area of 1,480,382 m2 at Le Loi Commune, Hoanh Bo District, Quang Ninh province for main plant, road and stations. The duration of rent is 36 years from November 30, 2011 to October 1, 2052.

Rental fee is payable annually and is calculated at fixed rate for the period from October 18, 2016 to October 18, 2021. The rental fee rates for the first 5 years are VND 2,655-5,309/m2/year for the main factory and VND 300-508/m2/year for road and stations.After that time, new contract will be signed with new rates of rental.

Pada tanggal 27 Februari 2017, TLCC memiliki ikatan dengan Galeximco Hanoi untuk menyewa kantor seluas 335 m2 dan 70 m2 di lantai 7 gedung Geleximco di Jl. 36 Hoang Cau, Hanoi. Jangka waktu sewa adalah 2 tahun dari 27 Februari 2017 sampai dengan 27 Februari 2019.

On February 27, 2017, TLCC entered into a commitment with Galeximco Hanoi to rent 335 m2 and 70 m2 of office on the 7th floor of Geleximco building at 36 Hoang Cau Street, Hanoi. The duration of rent is 2 years from February 27, 2017 to February 27, 2019.

Biaya sewa adalah VND405.000/m2/bulan dan akan dibayarkan setiap bulan.

Rental fee is VND405,000/m2/month and will be paid monthly.

k. Berdasarkan Perjanjian No 40 tanggal 14 Maret

2013 dihadapan Evva Yerry Mahmudah, S.H., Notaris dan Pejabat Pembuat Akta Tanah di Gresik, KIG telah melakukan perjanjian dengan Ir. Bagus Narjatmo dan Moh. Khozin (selaku kuasa jual) sehubungan dengan rencana pembelian lahan kurang lebih 200 hektar yang berlokasi di desa Golokan, Desa Purwodadi, Desa Srowo, Desa Tanjungawan, di Kecamatan Sidayu dan Kecamatan Ujung Pangkah dengan harga dan syarat seperti yang tertera dalam perjanjian.

k. Agreement No. 40 dated March 14, 2013 before Evva Yerry Mahmudah, S.H., Notary and Land Deed Officer in Gresik, KIG has entered into an agreement with Ir. Bagus Narjatmo and Moh. Khozin (as selling power) in connection with the plan to purchase 200 ha of land located in the village Golokan, Purwodadi, Village Srowo, Tanjungawan village, in Sidayu district and Ujung Pangkah sub-district with price and conditions as stipulated in the agreement.

Sampai dengan 31 Desember 2018 jumlah pembelian yang telah dibayarkan adalah sebesar Rp125.431.273. Manajemen berpendapat bahwa tidak terdapat kesulitan dalam pengurusan hak atas tanah tersebut.

As of December 31, 2017, total purchases paid amounted to Rp125,431,273. Management believes that there will be no difficulties in obtaining the landright certificate.







(Continued)

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Menurut keputusan No.2867/QD-UB, biaya sewa tanah TLCC dalam eksplorasi tanah liat untuk kegiatan produksi adalah VND 1.883/m2/tahun.

According to Decision No.2867/QD-UB on rental fee for land of TLCC for clay exploration for production activity is VND 1,883/m2/year.

Pada tanggal 30 November 2016, TLCC

memiliki ikatan dengan Quang Ninh’s People Committee untuk menyewa tanah seluas 1.480.382 m2 di Le Loi Commune, Distrik Hoanh Bo, Propinsi Quang Ninh untuk pabrik utama, jalan dan stasiun. Sewa selama 36 tahun dari 30 November 2011 sampai dengan 1 Oktober 2052.

Biaya Sewa dibayarkan tahunan dan dihitung dengan tingkat bunga tetap mulai dari 18 Oktober 2016 sampai dengan 18 Oktober 2021. Tarif biaya sewa 5 tahun pertama adalah sebesar VND 2.655-5309/m2/tahun untuk pabrik utama dan VND300-508/m2/tahun untuk jalan dan stasiun. Sesudah itu, kontrak baru akan ditandatangani dengan biaya sewa yang baru.

On November 30, 2016, TLCC entered into a commitment with Quang Ninh’s People Committee to rent land with an area of 1,480,382 m2 at Le Loi Commune, Hoanh Bo District, Quang Ninh province for main plant, road and stations. The duration of rent is 36 years from November 30, 2011 to October 1, 2052.

Rental fee is payable annually and is calculated at fixed rate for the period from October 18, 2016 to October 18, 2021. The rental fee rates for the first 5 years are VND 2,655-5,309/m2/year for the main factory and VND 300-508/m2/year for road and stations.After that time, new contract will be signed with new rates of rental.

Pada tanggal 27 Februari 2017, TLCC memiliki ikatan dengan Galeximco Hanoi untuk menyewa kantor seluas 335 m2 dan 70 m2 di lantai 7 gedung Geleximco di Jl. 36 Hoang Cau, Hanoi. Jangka waktu sewa adalah 2 tahun dari 27 Februari 2017 sampai dengan 27 Februari 2019.

On February 27, 2017, TLCC entered into a commitment with Galeximco Hanoi to rent 335 m2 and 70 m2 of office on the 7th floor of Geleximco building at 36 Hoang Cau Street, Hanoi. The duration of rent is 2 years from February 27, 2017 to February 27, 2019.

Biaya sewa adalah VND405.000/m2/bulan dan akan dibayarkan setiap bulan.

Rental fee is VND405,000/m2/month and will be paid monthly.

k. Berdasarkan Perjanjian No 40 tanggal 14 Maret

2013 dihadapan Evva Yerry Mahmudah, S.H., Notaris dan Pejabat Pembuat Akta Tanah di Gresik, KIG telah melakukan perjanjian dengan Ir. Bagus Narjatmo dan Moh. Khozin (selaku kuasa jual) sehubungan dengan rencana pembelian lahan kurang lebih 200 hektar yang berlokasi di desa Golokan, Desa Purwodadi, Desa Srowo, Desa Tanjungawan, di Kecamatan Sidayu dan Kecamatan Ujung Pangkah dengan harga dan syarat seperti yang tertera dalam perjanjian.

k. Agreement No. 40 dated March 14, 2013 before Evva Yerry Mahmudah, S.H., Notary and Land Deed Officer in Gresik, KIG has entered into an agreement with Ir. Bagus Narjatmo and Moh. Khozin (as selling power) in connection with the plan to purchase 200 ha of land located in the village Golokan, Purwodadi, Village Srowo, Tanjungawan village, in Sidayu district and Ujung Pangkah sub-district with price and conditions as stipulated in the agreement.

Sampai dengan 31 Desember 2018 jumlah pembelian yang telah dibayarkan adalah sebesar Rp125.431.273. Manajemen berpendapat bahwa tidak terdapat kesulitan dalam pengurusan hak atas tanah tersebut.

As of December 31, 2017, total purchases paid amounted to Rp125,431,273. Management believes that there will be no difficulties in obtaining the landright certificate.





(Continued)

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46. ASET DAN LIABILITAS MONETER DALAM MATA UANG ASING

46. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

Pada tanggal 31 Desember 2018 dan 2017, Grup mempunyai aset dan liabilitas moneter dalam mata uang asing sebagai berikut:

As of December 31, 2018 and 2017, the Group had monetary assets and liabilities denominated in foreign currencies as follows:

Mata uang Mata uang Asing Asing

(jumlah penuh)/ Ekuivalen (jumlah penuh)/ EkuivalenForeign Rupiah/ Foreign Rupiah/

currencies Equivalent in currencies Equivalent in(full amounts) Rupiah (full amounts) Rupiah

Aset: Assets:Kas dan setara kas USD 38.458.935 556.923.838 23.934.080 324.258.920 Cash and cash equiv alents

EUR 1.566.836 25.945.289 6.867.674 111.075.111 SGD 3.519 37.317 14.377 145.687

Piutang usaha USD 12.303.336 178.164.614 8.157.367 110.516.005 Trade receiv ablesPiutang lain-lain USD 7.974 115.470 21.828 295.728 Other receiv ables

Jumlah aset 761.186.528 546.291.451 Total assets

Liabilitas: Liabilities:Utang usaha EUR 7.452.695 123.414.765 10.149.909 164.160.725 Trade pay ables

USD 5.309.070 76.880.639 7.898.844 107.013.534 JPY 3.727.468 488.727 203.039 24.409 GBP 22.772 418.385 23.739 432.473 CHF - - 10.470 144.932 SGD 7.447 78.960 7.447 75.464 AUD 4.870 49.728 7.065 74.582

Utang lain-lain EUR 45.725 662.138 758.200 12.262.835 Other liabilitiesUSD 1.652 23.917 877.276 11.885.339

Jumlah liabilitas 202.017.259 296.074.293 Total liabilities

Aset neto 559.169.269 250.217.158 Net Assets

2018 2017

Pada tanggal 31 Desember 2018 dan 2017, kurs konversi yang digunakan Grup serta kurs yang berlaku pada tanggal 30 Maret 2019 sebagai berikut:

The conversion rates used by the Group on December 31, 2018 and 2017 the prevailing rates on March 30, 2019 are as follows:

30 Maret / 31 Desember / 31 Desember /M arch 30, December 31, December 31,

2019 2018 2017Rp Rp Rp

Mata Uang Foreign currency1 USD 14.244 14.481 13.548 1 USD1 SGD 10.507 10.603 10.134 1 SGD100 JPY 12.856 13.112 12.022 100 JPY1 EUR 15.995 16.560 16.174 1 EUR1 GBP 18.609 18.373 18.218 1 GBP1 AUD 10.098 10.211 10.557 1 AUD1 CHF 14.309 14.710 13.842 1 CHF







(Continued)

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47. REKONSILIASI LIABILITAS YANG TIMBUL DARI AKTIVITAS PENDANAAN

47. RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES

Tabel di bawah ini menjelaskan perubahan dalam liabilitas Grup yang timbul dari aktivitas pendanaan, termasuk perubahan yang timbul dari arus kas dan perubahan nonkas. Liabilitas yang timbul dari aktivitas pendanaan adalah liabilitas yang arus kas, atau arus kas masa depannya, diklasifikasikan dalam laporan arus kas konsolidasian Grup sebagai arus kas dari aktivitas pendanaan.

The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s consolidated statement of cash flows as cash flows from financing activities.

Perubahaan transaksi

non kas/ Bunga yangArus kas Non-cash changes yang dikapitalisasi

dari aktivitas Perolehan ke pokok/pendanaan/ aset tetap/ Interest

1 Januari 2018/ Financing Acquisition Biaya transaksi/ capitalization 31 Desember 2018/January 1, 2018 cash flows of fixed assets Transaction cost to principle December 31, 2018

Utang bank 6.510.361.278 (60.519.014) - - 57.694.723 6.507.536.987 Bank loansUtang obligasi 2.993.704.359 - - 1.197.251 - 2.994.901.610 BondsLiabilitas sewa pembiayaan 515.228.012 (174.708.585) 21.158.079 - - 361.677.506 Finance lease obligationsKas dan setara kas yang Restricted cash and cash

dibatasi penggunaannya 28.733.149 (2.599.281) 5.198.562 - - 31.332.430 equivalents

Jumlah 10.048.026.798 (237.826.880) 26.356.641 1.197.251 57.694.723 9.895.448.533 Total

48. KATEGORI DAN KELAS INSTRUMEN KEUANGAN

48. CATEGORIES AND CLASSES OF FINANCIAL INSTRUMENTS

Liabilitas padaPinjaman yang biaya perolehandiberikan dan Tersedia diamortisasi/

piutang/ untuk dijual/ Liabilities at Loans and Available-for- amortizedreceivables sale cost

31 Desember 2018 December 31, 2018

Aset Keuangan Lancar Current Financial AssetsKas dan setara kas 5.229.240.165 - - Cash and cash equiv alentsKas dan setara kas y ang Restricted cash and

dibatasi penggunaanny a 31.332.430 - - cash equiv alentsInv estasi jangka pendek - 8.453.004 - Short-term inv estmentsPiutang usaha Trade receiv ables

Pihak ketiga 4.585.339.434 - - Third partiesPihak berelasi 1.200.875.923 - - Related parties

Piutang lain-lain Other receiv ablesPihak ketiga 128.196.069 - - Third partiesPihak berelasi 45.305.835 - - Related parties

Liabilitas Keuangan Jangka Pendek Current Financial LiabilitiesPinjaman jangka pendek - - 1.551.659.339 Short-term borrowingsUtang usaha Trade pay ables

Pihak ketiga - - 3.769.232.616 Third partiesPihak berelasi - - 706.916.162 Related parties

Utang lain-lain Other pay ablesPihak ketiga - - 261.590.306 Third partiesPihak berelasi - - 46.729.403 Related parties

Beban akrual - - 927.547.540 Accrued expensesLiabilitas jangka panjang y ang jatuh Current maturities of

tempo dalam satu tahun long-term liabilitiesPinjaman bank - - 83.738.982 Bank loansLiabilitas sewa pembiay aan - - 88.384.638 Finance lease liabilities

Liabilitas Keuangan Jangka Panjang Non-current Financial LiabilitiesLiabilitas jangka panjang Long-term liabilities

Pinjaman bank - - 4.872.138.666 Bank loansUtang obligasi - - 2.994.901.610 Bonds pay ableLiabilitas sewa pembiay aan - - 273.292.868 Finance lease liabilities

Jumlah 11.220.289.856 8.453.004 15.576.132.130 Total







(Continued)

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47. REKONSILIASI LIABILITAS YANG TIMBUL DARI AKTIVITAS PENDANAAN

47. RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES

Tabel di bawah ini menjelaskan perubahan dalam liabilitas Grup yang timbul dari aktivitas pendanaan, termasuk perubahan yang timbul dari arus kas dan perubahan nonkas. Liabilitas yang timbul dari aktivitas pendanaan adalah liabilitas yang arus kas, atau arus kas masa depannya, diklasifikasikan dalam laporan arus kas konsolidasian Grup sebagai arus kas dari aktivitas pendanaan.

The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s consolidated statement of cash flows as cash flows from financing activities.

Perubahaan transaksi

non kas/ Bunga yangArus kas Non-cash changes yang dikapitalisasi

dari aktivitas Perolehan ke pokok/pendanaan/ aset tetap/ Interest

1 Januari 2018/ Financing Acquisition Biaya transaksi/ capitalization 31 Desember 2018/January 1, 2018 cash flows of fixed assets Transaction cost to principle December 31, 2018

Utang bank 6.510.361.278 (60.519.014) - - 57.694.723 6.507.536.987 Bank loansUtang obligasi 2.993.704.359 - - 1.197.251 - 2.994.901.610 BondsLiabilitas sewa pembiayaan 515.228.012 (174.708.585) 21.158.079 - - 361.677.506 Finance lease obligationsKas dan setara kas yang Restricted cash and cash

dibatasi penggunaannya 28.733.149 (2.599.281) 5.198.562 - - 31.332.430 equivalents

Jumlah 10.048.026.798 (237.826.880) 26.356.641 1.197.251 57.694.723 9.895.448.533 Total

48. KATEGORI DAN KELAS INSTRUMEN KEUANGAN

48. CATEGORIES AND CLASSES OF FINANCIAL INSTRUMENTS






Pihak ketiga 4.585.339.434 - - Third partiesPihak berelasi 1.200.875.923 - - Related parties









Jumlah 11.220.289.856 8.453.004 15.576.132.130 Total





(Continued)

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Pihak ketiga 4.031.171.228 - - Third partiesPihak berelasi 854.495.086 - - Related parties









Jumlah 8.661.507.996 8.453.004 15.898.891.234 Total

49. TUJUAN DAN KEBIJAKAN MANAJEMEN MODAL DAN RISIKO KEUANGAN

49. FINANCIAL RISK AND CAPITAL MANAGEMENT OBJECTIVES AND POLICIES

Grup terpengaruh terhadap risiko pasar, risiko kredit, dan risiko likuiditas. Manajemen menerapkan manajemen risiko atas risiko-risiko tersebut dengan melakukan evaluasi atas risiko keuangan dan kerangka pengelolaan risiko keuangan yang tepat untuk Grup. Pengelolaan resiko tersebut memberikan keyakinan kepada manajemen bahwa aktivitas keuangan dikelola secara pruden sesuai kebijakan dan prosedur yang tepat dan risiko keuangan diidentifikasi, diukur dan dikelola sesuai dengan kebijakan dan risk appetite.

The Group is exposed to market risk, credit risk and liquidity risk. Management applies risk management for such risks by evaluating the financial risks and the appropriate financial risk governance framework for the Group. Such risk management provides assurance to management that prudent financial activities are managed according to appropriate policies and procedures and financial risks are identified, measured and managed in accordance with policies and risk appetite.







(Continued)

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Manajemen menerapkan kebijakan pengelolaan risiko-risiko sebagaimana dirangkum di bawah ini:

The management applies policies for managing each of these risks which is summarized below:

Risiko pasar Market risk Risiko pasar adalah risiko nilai wajar arus kas masa depan suatu instrumen keuangan akan berfluktuasi karena perubahan harga pasar. Harga pasar mengandung tiga tipe risiko: risiko tingkat suku bunga, risiko nilai tukar mata uang asing dan risiko harga. Instrumen keuangan yang terpengaruh oleh risiko pasar termasuk kas dan setara kas, piutang usaha, piutang lain-lain, utang usaha, utang lain-lain, utang jangka panjang, dan beban yang masih harus dibayar.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risk: interest rate risk, foreign currency risk, and price risk. Financial instruments affected by market risk included cash and cash equivalent, trade receivables, other receivables, trade payable, other payables, long-term payable, and accrued expenses.

Risiko nilai tukar mata uang asing Foreign currency risk Risiko nilai tukar mata uang asing adalah risiko perubahan nilai wajar arus kas di masa datang dari suatu instrumen keuangan yang berfluktuasi sebagai akibat perubahan nilai tukar mata uang asing yang digunakan oleh Grup. Eksposur Grup terhadap fluktuasi nilai tukar terutama berasal dari utang pengadaan barang dan jasa dalam mata uang USD dan EUR, serta piutang dari penjualan ekspor dalam mata uang USD.

Foreign currency risk is a risk in the fair value of future cash flows of a financial instrument fluctuates as a result of changes in foreign currency exchange rates used by the Group. Exposure of the Group against exchange rate fluctuation is mainly derived from debt arising from the procurement of goods and services denominated in USD and EUR, as well as receivables from USDdenominated export sales.

Perusahaan memiliki kebijakan untuk mengatur risiko nilai tukar tersebut dengan melakukan penyelarasan penerimaan dan pembayaran untuk setiap jenis mata uang yang dijalankan secara natural tanpa lindung nilai maupun dengan lindung nilai. Perusahaan melakukan kontrak instrumen keuangan derivatif untuk meminimalkan resiko melemahnya nilai mata uang asing termasuk diantaranya cross currency swap (CCS). Instrumen keuangan derivatif ini tidak ditetapkan dan tidak memenuhi persyaratan sebagai akuntansi lindung nilai. Perubahan nilai wajar instrumen keuangan derivatif ini langsung diakui sebagai laba rugi.

The Group has a policy to manage the exchange rate risk by aligning receipts and disbursement for each type of currency that is executed naturally with or without hedging. The Company enters into derivative financial instrument to manage its exposure to foreign exchange rate risk including cross currency swap. These derivative financial instrument are not designated and do not qualify as accounting hedge and therefore changes in its fair values are recognized immediately in profit or loss.

Tingkat sensitivitas yang digunakan oleh manajemen adalah dasar atas fluktuasi nilai tukar mata uang asing selama tahun 2018. Berikut ini adalah analisis sensitivitas efek 2% perubahan kurs mata uang asing terhadap laba setelah pajak dengan semua variabel lain dianggap tetap:

The sensitivity rate used by the management is the basis of fluctuation of the foreign exchange during 2018. The sensitivity analysis used the 2% fluctuation in the foreign exchange rates to profit after tax with other variance considered as constant is as follow:

Dampak USD/USD impact

Laba rugi 13.946.274 Profit or loss

Tidak ada dampak terhadap ekuitas selain dampak yang disajikan terhadap laba atau rugi.

There is no impact on equity other than the shown impact on profit or loss.

Risiko harga Price risk Risiko harga adalah risiko fluktuasi nilai instrumen keuangan sebagai akibat perubahan harga pasar, terlepas dari apakah perubahan tersebut disebabkan oleh faktor-faktor spesifik dari instrumen individual atau penerbitnya atau faktor-faktor yang mempengaruhi seluruh instrumen yang diperdagangkan di pasar.

Price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual instrument or its issuer or factors affecting all instruments traded in the market.







(Continued)

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Manajemen menerapkan kebijakan pengelolaan risiko-risiko sebagaimana dirangkum di bawah ini:

The management applies policies for managing each of these risks which is summarized below:

Risiko pasar Market risk Risiko pasar adalah risiko nilai wajar arus kas masa depan suatu instrumen keuangan akan berfluktuasi karena perubahan harga pasar. Harga pasar mengandung tiga tipe risiko: risiko tingkat suku bunga, risiko nilai tukar mata uang asing dan risiko harga. Instrumen keuangan yang terpengaruh oleh risiko pasar termasuk kas dan setara kas, piutang usaha, piutang lain-lain, utang usaha, utang lain-lain, utang jangka panjang, dan beban yang masih harus dibayar.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risk: interest rate risk, foreign currency risk, and price risk. Financial instruments affected by market risk included cash and cash equivalent, trade receivables, other receivables, trade payable, other payables, long-term payable, and accrued expenses.

Risiko nilai tukar mata uang asing Foreign currency risk Risiko nilai tukar mata uang asing adalah risiko perubahan nilai wajar arus kas di masa datang dari suatu instrumen keuangan yang berfluktuasi sebagai akibat perubahan nilai tukar mata uang asing yang digunakan oleh Grup. Eksposur Grup terhadap fluktuasi nilai tukar terutama berasal dari utang pengadaan barang dan jasa dalam mata uang USD dan EUR, serta piutang dari penjualan ekspor dalam mata uang USD.

Foreign currency risk is a risk in the fair value of future cash flows of a financial instrument fluctuates as a result of changes in foreign currency exchange rates used by the Group. Exposure of the Group against exchange rate fluctuation is mainly derived from debt arising from the procurement of goods and services denominated in USD and EUR, as well as receivables from USDdenominated export sales.

Perusahaan memiliki kebijakan untuk mengatur risiko nilai tukar tersebut dengan melakukan penyelarasan penerimaan dan pembayaran untuk setiap jenis mata uang yang dijalankan secara natural tanpa lindung nilai maupun dengan lindung nilai. Perusahaan melakukan kontrak instrumen keuangan derivatif untuk meminimalkan resiko melemahnya nilai mata uang asing termasuk diantaranya cross currency swap (CCS). Instrumen keuangan derivatif ini tidak ditetapkan dan tidak memenuhi persyaratan sebagai akuntansi lindung nilai. Perubahan nilai wajar instrumen keuangan derivatif ini langsung diakui sebagai laba rugi.

The Group has a policy to manage the exchange rate risk by aligning receipts and disbursement for each type of currency that is executed naturally with or without hedging. The Company enters into derivative financial instrument to manage its exposure to foreign exchange rate risk including cross currency swap. These derivative financial instrument are not designated and do not qualify as accounting hedge and therefore changes in its fair values are recognized immediately in profit or loss.

Tingkat sensitivitas yang digunakan oleh manajemen adalah dasar atas fluktuasi nilai tukar mata uang asing selama tahun 2018. Berikut ini adalah analisis sensitivitas efek 2% perubahan kurs mata uang asing terhadap laba setelah pajak dengan semua variabel lain dianggap tetap:

The sensitivity rate used by the management is the basis of fluctuation of the foreign exchange during 2018. The sensitivity analysis used the 2% fluctuation in the foreign exchange rates to profit after tax with other variance considered as constant is as follow:

Dampak USD/USD impact

Laba rugi 13.946.274 Profit or loss


There is no impact on equity other than the shown impact on profit or loss.

Risiko harga Price risk Risiko harga adalah risiko fluktuasi nilai instrumen keuangan sebagai akibat perubahan harga pasar, terlepas dari apakah perubahan tersebut disebabkan oleh faktor-faktor spesifik dari instrumen individual atau penerbitnya atau faktor-faktor yang mempengaruhi seluruh instrumen yang diperdagangkan di pasar.

Price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual instrument or its issuer or factors affecting all instruments traded in the market.





(Continued)

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Grup terkena dampak risiko harga yang terutama diakibatkan oleh pembelian batu bara yang merupakan komponen utama biaya produksi. Harga batu bara tersebut dipengaruhi oleh beberapa faktor, antara lain permintaan, pasokan, nilai tukar, dan cuaca. Dampak risiko harga tersebut mengakibatkan kenaikan biaya produksi. Grup tidak serta merta dapat mengalihkan kenaikan harga tersebut kepada pelanggannya.

The Group is exposed to price risk that is mainly due to the purchase of coal which is the main component of production costs. The price of coal is influenced by several factors, including demand, supply, exchange rates, and weather. The impact of price risk of production costs will rise. The Group does not necessarily able to pass on these price increases to its customers.

Kebijakan Grup untuk meminimalkan risiko yang berasal dari fluktuasi harga batu bara adalah antara lain dengan mengadakan kontrak pembelian yang berjangka waktu 12 bulan atau kurang dan pembelian secara bersama antara Grup kepada pemasok agar mendapatkan harga yang menguntungkan.

The Group’s policy to minimize risks arising from fluctuations in the price of coal is among other things entered into purchase contracts for a period of 12 months or less and a joint purchase between the Group to suppliers in order to obtain favorable prices.

Risiko suku bunga atas arus kas Cash flows interest rate risk Risiko suku bunga atas arus kas merupakan suatu risiko dimana arus kas masa datang suatu instrumen keuangan akan berfluktuasi akibat perubahan suku bunga pasar. Eksposur yang ada saat ini terutama berasal dari utang jangka panjang atas fasilitas kredit investasi untuk proyek pembangunan pabrik semen di entitas anak (SP dan SG) dalam mata uang rupiah dengan suku bunga mengambang. Pinjaman dengan suku bunga mengambang menimbulkan risiko arus kas kepada entitas anak.

Cash flows interest rate risk is a risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Current exposure related to this risk mainly arises from the rupiah denominated long-term investment credits for cement plant project in subsidiaries (SP and SG) which bear floating interest rate. Loans at variable rates expose the subsidiary to cash flows risk.

Saat ini, Grup tidak mempunyai kebijakan formal untuk lindung nilai atas risiko suku bunga. Kebijakan yang diambil oleh manajemen dalam mengantisipasi risiko suku bunga yaitu dengan mengevaluasi secara periodik perbandingan suku bunga tetap terhadap suku bunga mengambang sejalan dengan perubahan suku bunga yang relevan di pasar. Manajemen juga melakukan survey di perbankan untuk mendapatkan perkiraan mengenai suku bunga yang relevan.

Currently, the Group does not have a formal hedging policy for interest rate exposures. Measures taken by management in anticipation of interest rate risk is to evaluate periodically, comparing fixed rates to floating interest rates in line with relevant changes in interest rates in the market. Management is also conducting a survey of banks to obtain an estimate of the relevant interest rate.

Profil pinjaman bank dari Grup adalah sebagai berikut:

The Group’s bank loans profile is as follows:

2018 2017

Pinjaman dengan suku bunga tetap 1.714.000.578 2.014.851.774 Loans w ith fixed interest ratesPinjaman dengan suku bunga

mengambang 4.793.536.409 4.495.509.504 Loans w ith floating interest rate

Jumlah 6.507.536.987 6.510.361.278 Total

Dampak fluktuasi suku bunga 100 basis poin (bps) terhadap laba setelah pajak dengan semua variabel lain tetap:

The effect of interest rates fluctuation of 100 basis points (bps) to profit after tax with all other variables constant is as follows:

2018 2017

Naik 100 bps (65.075.370) (47.938.894) Increase 100 bps47.938.894 Turun 100 bps 65.075.370 47.938.894 Decrease 100 bps


There is no impact on equity other then the shown impact on profit or loss.

Risiko kredit

Credit risk

Risiko kredit adalah risiko kerugian yang dihadapi Grup sebagai akibat wanprestasi dari pihak ketiga dan pihak berelasi. Pihak ketiga yang dimaksud yaitu distributor dan pihak lawan yang gagal memenuhi kewajiban kontraktual mereka.

Credit risk is the risk that the Group will incur a loss from defaulted third parties and related parties. Third parties refer to the distributors and counter parties that fail to discharge their contractual obligations.







(Continued)

- 145 -

Kebijakan manajemen dalam mengantisipasi risiko kredit yang timbul dari distributor adalah sebagai berikut:

Management policies in anticipation of this credit risk from the distributors are as follows:

1. Grup hanya akan melakukan hubungan usaha dengan pihak ketiga yang diakui, kredibel dan bankable.

1. The Group will only do business relationships with third parties who are recognized, credible and bankable.

2. Mempunyai kebijakan untuk penjualan kredit dan

semua pihak ketiga yang akan melakukan perdagangan secara kredit harus melalui prosedur verifikasi kredit.

2. Have a policy for credit sales and all third parties who will make credit trade have to go through credit verification procedures.

3. Meminta kepada pihak ketiga yang akan

melakukan perdagangan kredit dengan Grup untuk memberikan jaminan berupa aset tetap, deposito berjangka atau bank garansi.

3. Request third parties who will do credit trade with the Group to provide collateral in the form of fixed assets, time deposit or bank guarantee.

4. Memberikan batasan atau plafon kepada pihak

ketiga yang akan melakukan perdagangan kredit dengan Grup sebesar jaminannya.

4. Provide limits or ceiling to a third party who will do credit trade with the Group equivalent to the amount of their guarantees.

5. Melakukan pemantauan atas jumlah piutang

secara terus menerus untuk mengurangi risiko piutang tak tertagih.

5. Monitor the amount of receivables on an ongoing basis to reduce the risk for doubtful accounts.

Grup meminimalkan risiko kredit aset keuangan seperti kas setara kas dengan mempertahankan saldo kas minimum dan memilih bank yang berkualitas untuk penempatan dana.

The Group minimizes credit risks on financial assets such as cash and cash equivalent by maintaining minimum cash balance and select qualified bank for the placement of funds.

Eksposur maksimum risiko kredit adalah sebesar nilai tercatat sebagaimana di ungkapkan pada Catatan 5, 6, 7 dan 8. Tidak ada risiko kredit yang terpusat secara signifikan.

The maximum exposure to the credit risk is represented by the carrying amount as shown in Notes 5, 6, 7 and 8. There is no significant concentration of credit risk.

Risiko likuiditas Liquidity risk

Risiko likuiditas adalah suatu risiko yang dapat terjadi dimana aset jangka pendek tidak dapat menutupi liabilitas jangka pendek.

Liquidity risk is a risk that occurs when current assets cannot cover current liabilities.

Mengingat bahwa kebutuhan dana Grup saat ini cukup signifikan sebagai akibat dari meningkatnya aktivitas pengembangan atau perluasan bisnis, maka dalam mengelola risiko likuiditas, Grup terus menerus memantau dan menjaga tingkat kas dan setara kas agar memadai untuk membiayai kebutuhan operasional Grup.

Given that funding requirements of the Group is currently significant as a result of increased activity of development or expansion of business, then in managing liquidity risk, the Group continues to monitor and maintain levels of adequacy of cash and cash equivalents to finance the operational needs of the Group.

Selain itu, Grup juga secara rutin mengevaluasi proyeksi arus kas untuk mengatasi dampak dari fluktuasi arus kas, termasuk jadwal jatuh tempo liabilitas jangka panjang dan terus menelaah kondisi pasar keuangan untuk inisiatif penempatan dan penggalangan dana yang meliputi pinjaman bank, penerbitan ekuitas pasar modal dan ekuitas utang.

In addition, the Group also regularly evaluates cash flow projections and actual cash to cope with the impact of fluctuations in cash flow, including the maturity schedule of long-term liabilities and continue to examine the condition of financial markets to placement and fund-raising initiatives, including bank loans, issuance of equity and debt securities.







(Continued)

- 145 -

Kebijakan manajemen dalam mengantisipasi risiko kredit yang timbul dari distributor adalah sebagai berikut:

Management policies in anticipation of this credit risk from the distributors are as follows:

1. Grup hanya akan melakukan hubungan usaha dengan pihak ketiga yang diakui, kredibel dan bankable.

1. The Group will only do business relationships with third parties who are recognized, credible and bankable.

2. Mempunyai kebijakan untuk penjualan kredit dan

semua pihak ketiga yang akan melakukan perdagangan secara kredit harus melalui prosedur verifikasi kredit.

2. Have a policy for credit sales and all third parties who will make credit trade have to go through credit verification procedures.

3. Meminta kepada pihak ketiga yang akan

melakukan perdagangan kredit dengan Grup untuk memberikan jaminan berupa aset tetap, deposito berjangka atau bank garansi.

3. Request third parties who will do credit trade with the Group to provide collateral in the form of fixed assets, time deposit or bank guarantee.

4. Memberikan batasan atau plafon kepada pihak

ketiga yang akan melakukan perdagangan kredit dengan Grup sebesar jaminannya.

4. Provide limits or ceiling to a third party who will do credit trade with the Group equivalent to the amount of their guarantees.

5. Melakukan pemantauan atas jumlah piutang

secara terus menerus untuk mengurangi risiko piutang tak tertagih.

5. Monitor the amount of receivables on an ongoing basis to reduce the risk for doubtful accounts.

Grup meminimalkan risiko kredit aset keuangan seperti kas setara kas dengan mempertahankan saldo kas minimum dan memilih bank yang berkualitas untuk penempatan dana.

The Group minimizes credit risks on financial assets such as cash and cash equivalent by maintaining minimum cash balance and select qualified bank for the placement of funds.

Eksposur maksimum risiko kredit adalah sebesar nilai tercatat sebagaimana di ungkapkan pada Catatan 5, 6, 7 dan 8. Tidak ada risiko kredit yang terpusat secara signifikan.

The maximum exposure to the credit risk is represented by the carrying amount as shown in Notes 5, 6, 7 and 8. There is no significant concentration of credit risk.

Risiko likuiditas Liquidity risk

Risiko likuiditas adalah suatu risiko yang dapat terjadi dimana aset jangka pendek tidak dapat menutupi liabilitas jangka pendek.

Liquidity risk is a risk that occurs when current assets cannot cover current liabilities.

Mengingat bahwa kebutuhan dana Grup saat ini cukup signifikan sebagai akibat dari meningkatnya aktivitas pengembangan atau perluasan bisnis, maka dalam mengelola risiko likuiditas, Grup terus menerus memantau dan menjaga tingkat kas dan setara kas agar memadai untuk membiayai kebutuhan operasional Grup.

Given that funding requirements of the Group is currently significant as a result of increased activity of development or expansion of business, then in managing liquidity risk, the Group continues to monitor and maintain levels of adequacy of cash and cash equivalents to finance the operational needs of the Group.

Selain itu, Grup juga secara rutin mengevaluasi proyeksi arus kas untuk mengatasi dampak dari fluktuasi arus kas, termasuk jadwal jatuh tempo liabilitas jangka panjang dan terus menelaah kondisi pasar keuangan untuk inisiatif penempatan dan penggalangan dana yang meliputi pinjaman bank, penerbitan ekuitas pasar modal dan ekuitas utang.

In addition, the Group also regularly evaluates cash flow projections and actual cash to cope with the impact of fluctuations in cash flow, including the maturity schedule of long-term liabilities and continue to examine the condition of financial markets to placement and fund-raising initiatives, including bank loans, issuance of equity and debt securities.





(Continued)

- 146 -

Tabel berikut merinci sisa jatuh tempo kontrak untuk liabilitas keuangan non-derivatif dengan periode pembayaran yang disepakati. Tabel telah disusun berdasarkan arus kas yang tidak didiskonto dari liabilitas keuangan berdasarkan tanggal terawal di mana Grup dapat diminta untuk membayar. Tabel mencakup arus kas bunga dan pokok. Untuk arus bunga tingkat mengambang, jumlah tidak didiskontokan berasal dari kurva suku bunga pada akhir periode pelaporan. Jatuh tempo kontrak didasarkan pada tanggal terawal di mana Grup mungkin akan diminta untuk membayar.

The tables below detail the remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Group may be required to pay.

Tingkat bunga

efektif

rata-rata

tertimbang/ Kurang dari

Weighted satu tahun/ Diatas

average Less than 1-5 tahun 5 tahun/ Jumlah/

interest rate one year 1-5 years 5+ years Total

Tanpa bunga Non-interest bearing

Utang usaha - 4.476.148.778 - - 4.476.148.778 Trade payables Beban akrual - 927.547.540 - - 927.547.540 Accrued expenses Utang lain-lain - 308.319.709 - - 308.319.709 Other payablesInstrumen tingkat bunga variabel Variable interest rate instruments

Liabilitas sewa pembiayaan 7,14% - 26,36% 18.707.447 21.038.493 - 39.745.940 Finance lease liabilities

Pinjaman bank 8,10% - 10,78% 846.076.027 272.542.691 - 1.118.618.718 Bank loansInstrumen tingkat bunga tetap Fixed interest rate instruments

Liabilitas sewa pembiayaan 6,13% - 18,25% 155.353.709 415.801.561 496.908.979 1.068.064.249 Finance lease liabilities

Pinjaman bank 5,8% - 13% 1.034.810.554 5.752.862.911 - 6.787.673.465 Bank loans

Utang obligasi 8,00% - 3.234.493.738 3.234.493.738 Bonds payable

7.766.963.764 9.696.739.394 496.908.979 17.960.612.137


Tingkat bunga

efektif

rata-rata

tertimbang/ Kurang dari

Weighted satu tahun/ Diatas

average Less than 1-5 tahun 5 tahun/ Jumlah/

interest rate one year 1-5 years 5+ years Total

Tanpa bunga Non-interest bearing

Utang usaha - 4.927.076.955 - - 4.927.076.955 Trade payables Beban akrual - 630.053.673 - - 630.053.673 Accrued expenses Utang lain-lain - 322.466.957 36.533.412 - 359.000.369 Other payablesInstrumen tingkat bunga variabel Variable interest rate instruments

Liabilitas sewa pembiayaan 7,14% - 18,25% 49.119.860 173.878.390 170.128.669 393.126.919 Finance lease liabilities

Pinjaman bank 8,10% - 12,75% 1.574.570.905 4.197.120.971 - 5.771.691.876 Bank loansInstrumen tingkat bunga tetap Fixed interest rate instruments

Liabilitas sewa pembiayaan 5,95% - 12,80% 37.478.990 42.772.248 41.849.856 122.101.094 Finance lease liabilities

Pinjaman bank 8,15% - 11,00% 220.669.809 517.999.593 - 738.669.402 Bank loans

Utang obligasi 8,00% - 2.993.704.359 - 2.993.704.359 Bonds payable

7.761.437.149 7.962.008.973 211.978.525 15.935.424.647


Jumlah yang dicakup di atas untuk instrumen suku bunga variabel untuk liabilitas keuangan non-derivatif harus berubah jika perubahan suku bunga variabel berbeda dengan estimasi suku bunga yang ditentukan pada akhir periode pelaporan.

The amounts included above for variable interest rate instruments for non-derivative financial liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.







(Continued)

- 147 -

Tabel berikut merinci ekspektasi jatuh tempo untuk aset keuangan non-derivatif Grup. Tabel disusun berdasarkan jatuh tempo kontrak tak terdiskonto dari aset keuangan termasuk bunga yang akan diperoleh dari aset tersebut. Dicantumkannya informasi aset keuangan non-derivatif diperlukan dalam rangka untuk memahami manajemen risiko likuiditas Grup mengingat likuiditas dikelola atas dasar aset dan liabilitas bersih.

The following table details the Group’s expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the Group liquidity risk management as the liquidity is managed on a net asset and liability basis.

Tingkat bunga

ef ektifrata-rata

tertimbang/Weighted Kurang dariaverage satu tahun/ Diataseffective Less than 1-5 tahun/ 5 tahun/ Jumlah/

interest rate one year 1-5 years 5+ years Total%

Tanpa bunga Non-interest bearingKas dan setara kas 16.490.353 - - 16.490.353 Cash and cash equiv alents

Piutang usaha Trade account receiv ablePihak berelasi 1.200.875.923 - - 1.200.875.923 Related partiesPihak ketiga 4.585.339.434 - - 4.585.339.434 Third parties

Piutang lain-lain Other account receiv ablePihak berelasi 45.305.835 - - 45.305.835 Related partiesPihak ketiga 128.196.069 - - 128.196.069 Third parties

Inv estasi jangka pendek 8.453.004 - - 8.453.004 Short-term inv estments

Instrumen tingkat bunga Variable interest rate variabel instrumentsBank 1,05% - 2% 2.166.491.747 - - 2.166.491.747 Cash in banksDeposito berjangka 5,18% 42.072.000 - - 42.072.000 Time deposit

Instrumen tingkat bunga tetap Fixed interest rate instrumentsBank 0% - 2% 254.897.396 - - 254.897.396 Cash in banksKas y ang dibatasi penggunaanny a 4,44% 32.723.590 - - 32.723.590 Restricted cashDeposito berjangka 3,5% - 8,25% 2.967.588.884 - - 2.967.588.884 Time deposit

Jumlah 11.448.434.235 - - 11.448.434.235 Total

2018 2018

Tingkat bunga

ef ektifrata-rata




Piutang usaha Trade account receiv ablePihak Berelasi 854.434.424 - 60.662 854.495.086 Related partiesPihak Ketiga 4.027.487.216 - 3.684.012 4.031.171.228 Third parties

Piutang lain-lain Other account receiv ablePihak Berelasi 36.343.891 - - 36.343.891 Related partiesPihak Ketiga 73.004.526 - - 73.004.526 Third parties




Jumlah 8.819.510.566 - 3.744.674 8.823.255.240 Total

2017 2017







(Continued)

- 147 -

Tabel berikut merinci ekspektasi jatuh tempo untuk aset keuangan non-derivatif Grup. Tabel disusun berdasarkan jatuh tempo kontrak tak terdiskonto dari aset keuangan termasuk bunga yang akan diperoleh dari aset tersebut. Dicantumkannya informasi aset keuangan non-derivatif diperlukan dalam rangka untuk memahami manajemen risiko likuiditas Grup mengingat likuiditas dikelola atas dasar aset dan liabilitas bersih.

The following table details the Group’s expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the Group liquidity risk management as the liquidity is managed on a net asset and liability basis.

Tingkat bunga

ef ektifrata-rata




Piutang usaha Trade account receiv ablePihak berelasi 1.200.875.923 - - 1.200.875.923 Related partiesPihak ketiga 4.585.339.434 - - 4.585.339.434 Third parties

Piutang lain-lain Other account receiv ablePihak berelasi 45.305.835 - - 45.305.835 Related partiesPihak ketiga 128.196.069 - - 128.196.069 Third parties




Jumlah 11.448.434.235 - - 11.448.434.235 Total

2018 2018

Tingkat bunga

ef ektifrata-rata




Piutang usaha Trade account receiv ablePihak Berelasi 854.434.424 - 60.662 854.495.086 Related partiesPihak Ketiga 4.027.487.216 - 3.684.012 4.031.171.228 Third parties

Piutang lain-lain Other account receiv ablePihak Berelasi 36.343.891 - - 36.343.891 Related partiesPihak Ketiga 73.004.526 - - 73.004.526 Third parties




Jumlah 8.819.510.566 - 3.744.674 8.823.255.240 Total

2017 2017





(Continued)

- 148 -

Pengukuran nilai wajar Fair value measurements

Nilai wajar instrumen keuangan yang dicatat pada biaya perolehan diamortisasi

Fair value of financial instruments carried at amortized cost

Kecuali sebagaimana tercantum dalam tabel berikut, direksi menganggap bahwa nilai tercatat aset keuangan dan liabilitas keuangan diakui dalam laporan keuangan konsolidasian mendekati nilai wajarnya.

Except as detailed in the following table, the directors consider that the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values.

Nilai Tercatat/ Nilai W ajar/ Nilai Tercatat/ Nilai W ajar/

Carrying Value Fair Value Carrying Value Fair Value

Liabilitas Keuangan Financial LiabilitiesLiabilitas sewa pembiayaan 361.677.506 361.677.506 515.228.012 515.228.012 Finance lease liabilitiesPinjaman bank jangka panjang 4.955.877.648 4.781.613.393 5.317.298.031 5.330.104.627 Long-term bank loansUtang obligasi 2.994.901.610 2.969.040.000 2.993.704.359 3.000.000.000 Bonds payable

Total Liabilitas Keuangan 8.312.456.764 8.112.330.899 8.826.230.402 8.845.332.639 Total Financial Liabilities

31 Desember/December 31, 2018 31 Desember/December 31, 2017

Teknik penilaian dan asumsi yang diterapkan untuk tujuan pengukuran nilai wajar

Valuation techniques and assumptions applied for the purposes of measuring fair value

Nilai wajar aset keuangan dan liabilitas keuangan ditentukan sebagai berikut:

The fair values of financial assets and financial liabilities are determined as follows:

Nilai wajar aset keuangan dan liabilitas keuangan

dengan syarat dan kondisi standar dan diperdagangkan di pasar aktif ditentukan dengan mengacu pada harga pasar.

The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices.

Nilai wajar instrumen derivatif dihitung

menggunakan harga kuotasian. Bila harga tersebut tidak tersedia, analisis arus kas diskonto dilakukan dengan menggunakan kurva hasil yang berlaku selama instrumen untuk non-opsional derivatif, dan model harga opsi untuk derivatif opsional. Kontrak valuta berjangka mata uang asing diukur dengan menggunakan kurs kuotasi dan kurva yield yang berasal dari suku bunga kuotasi mencocokkan jatuh tempo kontrak. Swap suku bunga diukur pada nilai kini dari arus kas masa depan yang diestimasi dan didiskontokan berdasarkan kurva imbal hasil yang berasal dari suku bunga kuotasi.

The fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates.

Nilai wajar aset keuangan dan liabilitas

keuangan lainnya (tidak termasuk yang dijelaskan di atas) ditentukan sesuai dengan model penentuan harga yang berlaku umum berdasarkan analisis discounted cash flow menggunakan harga dari transaksi pasar yang dapat diamati saat ini dan kutipan dealer untuk instrumen sejenis.

The fair values of other financial assets and financial liabilities (excluding those described above) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes for similar instruments.

Nilai wajar seluruh aset keuangan dan liabilitas keuangan Grup, kecuali kas di bank, deposito berjangka dan deposito on call diukur menggunakan input level 3 yang mencakup input untuk aset dan liabilitas keuangan yang bukan berdasarkan data pasar yang dapat diobservasi. Kas di bank, deposito berjangka dan call deposits diukur menggunakan input level 2 yang mencakup input selain harga kuotasian dalam Level 1, yang dapat diobservasi untuk aset atau liabilitas keuangan, baik secara langsung maupun tidak langsung.

The fair value of the Group’s financial assets and liabilities, except cash in banks, time deposits and call deposits are measured using input level 3 which include inputs for the financial assets or liability that are not based on observable market data. Cash in banks, time deposits and call deposits are measured using input level 2 which include other than quoted prices included within Level 1, that are observable for the financial asset or liability, either directly or indirectly.







(Continued)

- 149 -

Pengelolaan modal Capital management

Tujuan utama pengelolaan modal Grup adalah untuk memastikan pemeliharaan rasio modal yang sehat untuk mendukung usaha dan memaksimalkan imbalan bagi pemegang saham.

The primary objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximize shareholder value.

Grup disyaratkan untuk memelihara tingkat permodalan tertentu oleh perjanjian pinjaman. Persyaratan permodalan eksternal tersebut telah dipenuhi oleh entitas terkait pada tanggal 31 Desember 2018 dan 2017. Selain itu, Grup juga dipersyaratkan oleh Undang-undang No. 40 Tahun 2007 tentang Perseroan Terbatas, efektif sejak tanggal 16 Agustus 2007, untuk mengalokasikan sampai dengan 20% dari modal saham diterbitkan dan dibayar penuh ke dalam dana cadangan yang tidak boleh didistribusikan. Persyaratan permodalan eksternal tersebut telah dipertimbangkan oleh Grup serta telah diputuskan pada Rapat Umum Pemegang Saham (“RUPS”).

The Group is required under their respective loan agreements to maintain the level of existing share capital. This externally imposed capital requirement has been complied with by the relevant entities as of December 31, 2018 and 2017. In addition, the Group is also required by the Law No. 40 Year 2007 regarding Limited Liability Entities, effective August 16, 2007, to allocate and maintain a non-distributable reserve fund until the said reserve reaches 20% of the issued and fully paid share capital. This externally imposed capital requirements are considered by the Group and decided at the Annual General Meeting of Shareholders (“AGMS”).

Grup mengelola struktur permodalan dan melakukan penyesuaian, bila diperlukan, berdasarkan perubahan kondisi ekonomi. Untuk memelihara dan menyesuaikan struktur permodalan, Grup dapat menyesuaikan pembayaran dividen kepada pemegang saham, menerbitkan saham baru atau mengusahakan pendanaan melalui pinjaman. Tidak ada perubahan atas tujuan, kebijakan maupun proses selama periode yang berakhir pada tanggal-tanggal 31 Desember 2018 dan 2017.

The Group manages its capital structure and makes adjustments to it, if necessary, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, issue new shares or raise debt financing. No changes were made in the objectives, policies or processes during the period ended December 31, 2018 dan 2017.

Grup mengawasi modal dengan menggunakan rasio pengungkit (gearing ratio), dengan membagi jumlah pinjaman berbunga dengan jumlah ekuitas yang dapat diatribusikan kepada pemilik entitas induk. Kebijakan Grup adalah menjaga rasio pengungkit dalam kisaran dari perusahaan terkemuka di Indonesia untuk mengamankan akses terhadap pendanaan pada biaya yang rasional. Termasuk dalam total pinjaman berbunga adalah pinjaman bank jangka pendek, pinjaman bank jangka panjang, dan liabilitas sewa pembiayaan.

The Group monitors its capital using gearing ratios, by dividing interest bearing loan by total equity attributable to equity holders of the parent entity. The Group’s policy is to maintain its gearing ratio within the range of gearing ratios of the leading companies in Indonesia in order to secure access to finance at a reasonable cost. Included in interest bearing loans are short-term bank loans and long-term bank loans, and finance lease liabilities.

Rasio pengungkit pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

The gearing ratios as of December 31, 2018 and 2017 are as follow:

2018 2017

Pinjaman bank 6.507.536.897 6.510.361.278 Bank loansUtang obligasi 2.994.901.610 2.993.704.359 Bonds payableLiabilitas sew a pembiayaan 361.677.506 515.228.012 Finance lease liabilities

Jumlah pinjaman yang berbunga 9.864.116.013 10.019.293.649 Total interest bearing loans

Jumlah ekuitas yang dapat diatribusikan Total equity attributable to ow nerskepada pemilik entitas induk 31.507.384.135 28.914.994.825 of the parent entity

Rasio pengungkit (x) 0,31 0,35 Gearing ratio (x)







(Continued)

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Pengelolaan modal Capital management

Tujuan utama pengelolaan modal Grup adalah untuk memastikan pemeliharaan rasio modal yang sehat untuk mendukung usaha dan memaksimalkan imbalan bagi pemegang saham.

The primary objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximize shareholder value.

Grup disyaratkan untuk memelihara tingkat permodalan tertentu oleh perjanjian pinjaman. Persyaratan permodalan eksternal tersebut telah dipenuhi oleh entitas terkait pada tanggal 31 Desember 2018 dan 2017. Selain itu, Grup juga dipersyaratkan oleh Undang-undang No. 40 Tahun 2007 tentang Perseroan Terbatas, efektif sejak tanggal 16 Agustus 2007, untuk mengalokasikan sampai dengan 20% dari modal saham diterbitkan dan dibayar penuh ke dalam dana cadangan yang tidak boleh didistribusikan. Persyaratan permodalan eksternal tersebut telah dipertimbangkan oleh Grup serta telah diputuskan pada Rapat Umum Pemegang Saham (“RUPS”).

The Group is required under their respective loan agreements to maintain the level of existing share capital. This externally imposed capital requirement has been complied with by the relevant entities as of December 31, 2018 and 2017. In addition, the Group is also required by the Law No. 40 Year 2007 regarding Limited Liability Entities, effective August 16, 2007, to allocate and maintain a non-distributable reserve fund until the said reserve reaches 20% of the issued and fully paid share capital. This externally imposed capital requirements are considered by the Group and decided at the Annual General Meeting of Shareholders (“AGMS”).

Grup mengelola struktur permodalan dan melakukan penyesuaian, bila diperlukan, berdasarkan perubahan kondisi ekonomi. Untuk memelihara dan menyesuaikan struktur permodalan, Grup dapat menyesuaikan pembayaran dividen kepada pemegang saham, menerbitkan saham baru atau mengusahakan pendanaan melalui pinjaman. Tidak ada perubahan atas tujuan, kebijakan maupun proses selama periode yang berakhir pada tanggal-tanggal 31 Desember 2018 dan 2017.

The Group manages its capital structure and makes adjustments to it, if necessary, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, issue new shares or raise debt financing. No changes were made in the objectives, policies or processes during the period ended December 31, 2018 dan 2017.

Grup mengawasi modal dengan menggunakan rasio pengungkit (gearing ratio), dengan membagi jumlah pinjaman berbunga dengan jumlah ekuitas yang dapat diatribusikan kepada pemilik entitas induk. Kebijakan Grup adalah menjaga rasio pengungkit dalam kisaran dari perusahaan terkemuka di Indonesia untuk mengamankan akses terhadap pendanaan pada biaya yang rasional. Termasuk dalam total pinjaman berbunga adalah pinjaman bank jangka pendek, pinjaman bank jangka panjang, dan liabilitas sewa pembiayaan.

The Group monitors its capital using gearing ratios, by dividing interest bearing loan by total equity attributable to equity holders of the parent entity. The Group’s policy is to maintain its gearing ratio within the range of gearing ratios of the leading companies in Indonesia in order to secure access to finance at a reasonable cost. Included in interest bearing loans are short-term bank loans and long-term bank loans, and finance lease liabilities.

Rasio pengungkit pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

The gearing ratios as of December 31, 2018 and 2017 are as follow:

2018 2017

Pinjaman bank 6.507.536.897 6.510.361.278 Bank loansUtang obligasi 2.994.901.610 2.993.704.359 Bonds payableLiabilitas sew a pembiayaan 361.677.506 515.228.012 Finance lease liabilities

Jumlah pinjaman yang berbunga 9.864.116.013 10.019.293.649 Total interest bearing loans

Jumlah ekuitas yang dapat diatribusikan Total equity attributable to ow nerskepada pemilik entitas induk 31.507.384.135 28.914.994.825 of the parent entity

Rasio pengungkit (x) 0,31 0,35 Gearing ratio (x)





(Continued)

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50. INFORMASI PENTING LAINNYA 50. OTHER SIGNIFICANT INFORMATION

1) Proyek WHRPG 1) The WHRPG Project

Pada tanggal 15 Januari 2009, Direktur Jenderal Industri Agro dan Kimia - Kementerian Perindustrian Republik Indonesia (“DJIAK-Menperin”) menandatangani nota kesepahaman mengenai The Model Project for Waste Heat Recovery Power Generation in the Cement Industry (“WHRPG”) dengan The New Energy and Industrial Technology Development Organization, Jepang (“NEDO”). Pada tanggal 17 Mei 2010, SP mengadakan perjanjian kerjasama dengan DJIAK-Menperin sehubungan dengan pelaksanaan nota kesepahaman WHRPG tersebut.

On January 15, 2009, the Director General of Agro and Chemical Industry - Ministry of Industry of the Republic of Indonesia ("DJIAK-Menperin") signed a memorandum of understanding regarding the Model Project for Waste Heat Recovery Power Generation in the Cement Industry ("WHRPG") with The New Energy and Industrial Technology Development Organization, Japan ("NEDO"). On May 17, 2010, SP entered into cooperation agreements with DJIAK-Menperin with respect to the implementation of the memorandum of understanding of the WHRPG.

WHRPG adalah model proyek percontohan dengan menambahkan peralatan yang mengkonversikan panas gas buang menjadi energi listrik sehingga penggunaan batubara dan emisi gas CO2 menjadi berkurang. Proyek ini bertujuan untuk memperbaiki kualitas lingkungan dan juga meningkatkan daya saing dan produktifitas industri semen. Pada proyek ini, peralatan pihak NEDO dipasang pada fasilitas pabrik SP dan SP berkewajiban menyediakan infrastruktur dan peralatan pendukung dari proyek tersebut. Sampai dengan 31 Desember 2018 dan 2017, SP telah mengeluarkan dana sebesar Rp92.929.828 untuk infrastruktur dan peralatan pendukung yang dicatat sebagai aset tetap (Catatan 15).

WHRPG is a model demonstration project by adding equipment that convert hot exhaust gases into electrical energy so that the use of coal and CO2 emissions can be reduced. This project aims to improve the quality of environment and also to enhance the competitiveness and productivity of the cement industry. On this project, NEDO’s equipment are installed on SP’s plant facilities and SP shall provide the infrastructure and support equipment of the project. As of December 31, 2018 and 2017, SP has incurred expenditure of Rp92,929,828 for the infrastructure and support equipment, which are recorded as fixed assets (Note 15).

Perjanjian kerjasama ini berlangsung untuk jangka waktu 10 (sepuluh) tahun dan mulai berlaku sejak perjanjian kerjasama ditandatangani. Selama jangka waktu perjanjian ini SP memiliki kewajiban sebagai berikut:

This cooperation agreement is for a period of ten (10) years and shall be effective since the agreement was signed. During the term of this agreements SP has the following obligations:

Melakukan diseminasi dan demonstrasi teknologi WHRPG yang akan difasilitasi oleh kementerian Perindustrian RI.

To conduct dissemination and demonstration of the WHRPG technology that will be facilitated by the Ministry of Industry of the Republic of Indonesia.

Mengoperasikan dan melakukan

perawatan peralatan WHRPG dengan biaya sendiri.

To operate and perform maintenance of the WHRPG equipment at its own expense.

Bertanggung jawab atas kerusakan dan

kehilangan peralatan WHRPG. To be responsible for the damage and loss

of the WHRPG equipment.

Melaporkan kinerja peralatan WHRPG setiap bulan April dan Oktober dalam setiap tahunnya kepada pihak NEDO. Sesuai dengan perjanjian kerjasama, peralatan WHRPG tersebut diharapkan dapat menghasilkan energi listrik sebesar 8,5MW.

To be reporting the performance of the WHRPG equipment every April and October of each year to NEDO. In accordance with the cooperation agreement, the WHRPG equipment is expected to generate electrical energy up to 8.5MW.

Proyek tersebut telah dapat beroperasi dan telah diresmikan oleh Menteri Perindustrian RI dan perwakilan dari NEDO pada tanggal 26 Oktober 2011.

The Project has been operating and was inaugurated by the Minister of Industry of RI and a representative from NEDO on October 26, 2011.







(Continued)

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Pada tanggal 2 Januari 2013, Kementerian Perindustrian Republik Indonesia melalui Direktur Jenderal Basis Industri Manufaktur menyerahkan penggunaan dan pemanfaatkan mesin dan peralatan WHRPG kepada SP. Pada tanggal 31 Desember 2018, program masih berjalan dan tidak terdapat perubahan ketentuan.

On January 2, 2013, the Ministry of Industry of the Republic of Indonesia through the Director General of Basic Manufacturing Industry granted the operation and utilization of WHRPG equipment to SP. As of December 31, 2018, the program still continues and there are no changes in the terms of agreement.

2) Grup menghadapi tuntutan-tuntutan hukum

sebagai berikut: 2) The Group is involved in the following legal

cases: a. Pada tanggal 24 Oktober 2008, SP mengajukan

gugatan No. 99/Pdt.G/2008PN.PDG terhadap PT Berkala International (PT BI) di Pengadilan Negeri Padang (PN Padang) akibat kegagalan PT BI untuk memenuhi kewajibannya menyerahkan batubara pada tahun 2008 sesuai dengan perjanjian jual beli antara SP dan PT BI. Dalam gugatannya, SP juga menyampaikan permohononan untuk membatalkan perjanjian jual beli batubara tersebut kepada PN Padang.

a. On October 24, 2008, SP filed lawsuit No. 99/Pdt.G/2008 PN.PDG against PT Berkala International (PT BI) in the Padang District Court PN Padang for the failure of PT BI to deliver coal in 2008 as agreed in a sales and purchase agreement between SP and PT BI. In its lawsuit, SP also appealed for the cancellation of the aforementioned sales and purchase agreement to PN Padang.

Berkenaan dengan Surat Kredit Berdokumen Dalam Negeri (SKBDN) yang telah diterbitkan dan diakseptasi oleh Bank Mandiri (Bank Penerbit) sehubungan dengan perjanjian jual beli, SP telah mengajukan permohonan kepada PN Padang untuk melarang Bank Mandiri, PT BI, PT Eksplorasi Mantap Indonesia (selaku beneficiary), PT Maybank Indocorp (selaku bank koresponden) (Maybank) untuk mencairkan/ mengklaim/ mengakseptasi/ mendebit rekening milik SP pada Bank Mandiri hingga keputusan dalam perkara ini mempunyai kekuatan hukum tetap.

In relation to the domestic Letter of Credit (SKBDN) issued and accepted by Bank Mandiri (Issuing Bank) for the purpose of the sales and purchase agreement, SP has requested PN Padang to issue an injunction to prevent Bank Mandiri, PT BI, PT Eksplorasi Mantap Indonesia (as beneficiary), PT Maybank Indocorp (as correspondent bank) (Maybank) or any parties or their representatives to liquidate/claim/accept/ debit SP’s account at Bank Mandiri until a final decision on this case has been issued.

Pada tanggal 17 April 2009, PN Padang mengeluarkan Putusan yang mengabulkan permohonan Provisi dan gugatan SP sebagai berikut:

On April 17, 2009, PN Padang issued its decision in favor of SP as follows:

Melarang kepada PT BI, Bank Mandiri,

PT Eksplorasi Mantap Indonesia, Maybank Indocorp atau pihak manapun juga maupun kuasa kuasanya untuk mencairkan/ mengklaim/ mengakseptasi/ mendebit rekening milik SP ataupun rekening lainnya yang ada pada Bank Mandiri, atas dasar adanya pengajuan SKBDN sampai dengan putusan dalam perkara ini mempunyai kekuatan hukum yang tetap.

- Forbids PT BI, Bank Mandiri, PT Eksplorasi Mantap Indonesia, Maybank Indocorp on any other parties as well as their attorneys to withdraw/claim/ accept/deduct SP account or other accounts of SP in Bank Mandiri based on the presentation of a SKBDN until a final decision on this case is issued.

Membatalkan Perjanjian Jual Beli

batubara antara SP dengan PT BI, berikut segala akibat hukumnya.

- States that PT BI and PT Eksplorasi Mantap Indonesia have breached the contract agreement betwen them and SP.







(Continued)

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Pada tanggal 2 Januari 2013, Kementerian Perindustrian Republik Indonesia melalui Direktur Jenderal Basis Industri Manufaktur menyerahkan penggunaan dan pemanfaatkan mesin dan peralatan WHRPG kepada SP. Pada tanggal 31 Desember 2018, program masih berjalan dan tidak terdapat perubahan ketentuan.

On January 2, 2013, the Ministry of Industry of the Republic of Indonesia through the Director General of Basic Manufacturing Industry granted the operation and utilization of WHRPG equipment to SP. As of December 31, 2018, the program still continues and there are no changes in the terms of agreement.

2) Grup menghadapi tuntutan-tuntutan hukum

sebagai berikut: 2) The Group is involved in the following legal

cases: a. Pada tanggal 24 Oktober 2008, SP mengajukan

gugatan No. 99/Pdt.G/2008PN.PDG terhadap PT Berkala International (PT BI) di Pengadilan Negeri Padang (PN Padang) akibat kegagalan PT BI untuk memenuhi kewajibannya menyerahkan batubara pada tahun 2008 sesuai dengan perjanjian jual beli antara SP dan PT BI. Dalam gugatannya, SP juga menyampaikan permohononan untuk membatalkan perjanjian jual beli batubara tersebut kepada PN Padang.

a. On October 24, 2008, SP filed lawsuit No. 99/Pdt.G/2008 PN.PDG against PT Berkala International (PT BI) in the Padang District Court PN Padang for the failure of PT BI to deliver coal in 2008 as agreed in a sales and purchase agreement between SP and PT BI. In its lawsuit, SP also appealed for the cancellation of the aforementioned sales and purchase agreement to PN Padang.

Berkenaan dengan Surat Kredit Berdokumen Dalam Negeri (SKBDN) yang telah diterbitkan dan diakseptasi oleh Bank Mandiri (Bank Penerbit) sehubungan dengan perjanjian jual beli, SP telah mengajukan permohonan kepada PN Padang untuk melarang Bank Mandiri, PT BI, PT Eksplorasi Mantap Indonesia (selaku beneficiary), PT Maybank Indocorp (selaku bank koresponden) (Maybank) untuk mencairkan/ mengklaim/ mengakseptasi/ mendebit rekening milik SP pada Bank Mandiri hingga keputusan dalam perkara ini mempunyai kekuatan hukum tetap.

In relation to the domestic Letter of Credit (SKBDN) issued and accepted by Bank Mandiri (Issuing Bank) for the purpose of the sales and purchase agreement, SP has requested PN Padang to issue an injunction to prevent Bank Mandiri, PT BI, PT Eksplorasi Mantap Indonesia (as beneficiary), PT Maybank Indocorp (as correspondent bank) (Maybank) or any parties or their representatives to liquidate/claim/accept/ debit SP’s account at Bank Mandiri until a final decision on this case has been issued.

Pada tanggal 17 April 2009, PN Padang mengeluarkan Putusan yang mengabulkan permohonan Provisi dan gugatan SP sebagai berikut:

On April 17, 2009, PN Padang issued its decision in favor of SP as follows:

Melarang kepada PT BI, Bank Mandiri,

PT Eksplorasi Mantap Indonesia, Maybank Indocorp atau pihak manapun juga maupun kuasa kuasanya untuk mencairkan/ mengklaim/ mengakseptasi/ mendebit rekening milik SP ataupun rekening lainnya yang ada pada Bank Mandiri, atas dasar adanya pengajuan SKBDN sampai dengan putusan dalam perkara ini mempunyai kekuatan hukum yang tetap.

- Forbids PT BI, Bank Mandiri, PT Eksplorasi Mantap Indonesia, Maybank Indocorp on any other parties as well as their attorneys to withdraw/claim/ accept/deduct SP account or other accounts of SP in Bank Mandiri based on the presentation of a SKBDN until a final decision on this case is issued.

Membatalkan Perjanjian Jual Beli

batubara antara SP dengan PT BI, berikut segala akibat hukumnya.

- States that PT BI and PT Eksplorasi Mantap Indonesia have breached the contract agreement betwen them and SP.





(Continued)

- 152 -

Menyatakan batal SKBDN yang diterbitkan dalam rangka Perjanjian Jual Beli batubara antara SP dengan PT BI, berikut segala akibat hukumnya.

- Terminated the sales purchasing contract betwen PT BI and SP and all of its legal consequences.

Selanjutnya atas putusan PN Padang tersebut, Bank Mandiri dan Maybank mengajukan banding ke Pengadilan Tinggi Sumatera Barat. Pada tanggal 27 Januari 2010 telah dikeluarkan Putusan Pengadilan Tinggi Sumatera Barat yang menguatkan putusan PN Padang.

Bank Mandiri and Maybank filed an appeal to the High Court of West Sumatera in relation to PN Padang’s decision. On January 27, 2010, the High Court of West Sumatera issued a decision confirming PN Padang’s decision.

Pada tanggal 8 Juli 2010, SP telah mengajukan kontra memori kasasi dan telah dikeluarkan putusan kasasi dari Mahkamah Agung No. 217 K/PDT/2011 pada tanggal 20 Mei 2011 yang memenangkan SP dan menolak permohonan kasasi dari PT Bank Maybank Indocorp dan PT Bank Mandiri (Persero) Tbk. Relass atas putusan kasasi tersebut diterima pada tanggal 10 Nopember 2011.

On July 8, 2010, SP has filed a counter against the appeal. Based on the decision of the Supreme Court No. 217 K/PDT/2011 on May 20, 2011, SP has won and the appeal from PT Bank Maybank Indocorp and PT Bank Mandiri (Persero) Tbk were rejected. Notification of the court (relass) for the decision of the appeal was received on November 10, 2011.

Terhadap putusan Kasasi Mahkamah Agung, Bank Mandiri telah mengajukan Peninjauan Kembali (PK) kepada Mahkamah Agung dimana relaas pemberitahuan Peninjauan Kembali yang diajukan oleh Bank Mandiri diterima oleh SP pada tanggal 23 Mei 2012. Atas Peninjauan Kembali tersebut, pada tanggal 20 Juni 2012 SP mengajukan Kontra Memori yang selajutnya telah dilimpahkan oleh Pengadilan Negeri Padang kepada Mahkamah Agung berdasarkan surat No.W3.P1/4100/HK.02/VI/2012, pada tanggal 27 Juni 2012.

In response to the decision of Supreme Court on the appeal, Bank Mandiri has submitted its Judicial Review (PK) to the Supreme Court and the notification of the Judicial Review (PK) requested by Bank Mandiri has been received by SP on May 23, 2012. To counter the Judicial Review from Bank Mandiri, on June 20, 2012, SP filed its contra memory to the Supreme Court by District Court of Padang through its letter No.W3.P1/4100/HK.02/VI/2012 dated June 27, 2012.

Pada tanggal 14 Maret 2013, Mahkamah Agung, ditingkat Peninjauan Kembali, mengeluarkan putusan No.527/PK/Pdt/2012 yang membatalkan semua putusan sebelumnya dan mengadili sendiri dengan mengabulkan sebagian permohonan SP, yaitu antara lain: menyatakan PT BI dan PT Eksplorasi Mantap Indonesia telah wan prestasi, dan menyatakan batal perjanjian jual beli batu bara antara BI dengan SP dan memberlakukan SKBDN yang diterbitkan dalam rangka Perjanjian Jual Beli batubara antara SP dengan BI.

On March 14, 2013, the Supreme Court, at the level of judicial review, with its letter No.527/PK/Pdt/2012, cancelled all previous decision and judged by granting some requests of SP, among other things: declare PT BI and PT Eksplorasi Mantap Indonesia have defaulted and cancelled coal purchase agreement between BI and SP and enforced SKBDN issued for coal purchase Agreement between SP and BI.

SP telah mencadangkan di dalam laporan keuangan konsolidasian 31 Desember 2008 potensi kerugian yang mungkin timbul dari akseptasi SKBDN oleh Bank Mandiri sejumlah Rp23.760.000. Pada tahun 2009 SP dengan niat baik sudah menempatkan dana pada PT Bank Mandiri (Persero) Tbk senilai Rp30.000.000 yang diperlukan untuk menyelesaikan liabilitas sampai ada putusan yang berkekuatan hukum tetap. Pada tanggal 30 Januari 2014, SP telah melakukan pembayaran sebesar Rp25.903.089.

SP has made a provision as of December 31, 2008, for possible losses which may arise from the acceptance of the domestic letter of credit (SKBDN) by Bank Mandiri in the amount of Rp23,760,000. In 2009, SP placed funds in good faith in Bank Mandiri amounting to Rp30,000,000 to provide funds required for settlement of amounts involving this matter, if any, depending on the final resolution of the court result on this case. On January 30, 2014, SP made a payment of Rp25,903,089.







(Continued)

- 153 -

Pada tanggal 4 Nopember 2014 PN Jakarta Pusat mengeluarkan putusan yang mengabulkan gugatan SP sebagai berikut:

On November 4, 2014, PN Jakarta Pusat issued its decision in favor of SP as follows:

a. Menyatakan PT Berkala Internasional

dan PT Eksplorasi Mantap International telah melakukan perbuatan melawan hukum (onrechtmatigdaad) sebagaimana diatur dalam pasal 1365 KUH Perdata.

a. Stated that PT Berkala Internasional and PT Eksplorasi Mantap International has commited an unlawful act as stipulated (onrechtmatigdaad) in Article 1365 of the Civil Code.

b. Memutuskan bahwa PT Berkala

Internasional dan PT Eksplorasi Mantap International mengganti kerugian kepada SP secara tanggung renteng sebesar Rp26.050.404 secara tunai dan sekaligus.

b. Ordered PT Berkala Internasional and PT Eksplorasi Mantap International to indemnify jointly to SP amounting to Rp26,050,404 in cash and at the same time.

Selanjutnya atas putusan PN Jakarta Pusat tersebut, PT Berkala Internasional dan PT Eksplorasi Mantap International mengajukan banding ke Pengadilan Tinggi Jakarta sebagaimana tertuang dalam Akta Permohonan Banding nomor 172/SRT.PDT.BDG/2014/PN.JKT.PST jo nomor 49/PDT.G/2014/PN.JKT.PST tanggal 17 Nopember 2014.

Furthermore, related to PN Jakarta Pusat’s decision, PT Berkala Internasional and PT Eksplorasi Mantap International filed an appeal to the High Court of Jakarta as stated in the Deed of Appeal number 172/SRT.PDT.BDG/2014/PN.JKT.PST jo number 49/PDT.G/2014/PN.JKT.PST dated November 17, 2014.

Pada Pebruari 2016, SP mengajukan kontra memori banding ke Pengadilan Tinggi Jakarta. Pada 21 Agustus 2017 Pengadilan tinggi Jakarta mengeluarkan putusan yang menguatkan putusan PN Jakarta Pusat tanggal 4 November 2014 No. 49/PDT.G/2014/PN.CKT.PST. Atas putusan Pengadilan Tinggi Jakarta tersebut, pada tanggal 25 Oktober 2017 PT Berkala International dan PT Eksplorasi Mantap Indonesia mengajukan Memori Kasasi ke Mahkamah Agung Republik Indonesia. Selanjutnya pada tanggal 9 Januari 2018 SP telah mengajukan Kontra Memori Kasasi ke Mahkamah Agung Republik Indonesia melalui Pengadilan Negeri Jakarta Pusat Kelas 1A Khusus sebagaimana tertuang dalam Akta Penerimaan Kontra Memori Kasasi No.143/Srt.Pdt.Kas/2017/PN.JKT.PST Sampai dengan laporan keuangan konsolidasian ini diterbitkan SP masih menunggu keputusan kasasi dari Mahkamah Agung Republik Indonesia.

In February 2016, SP filed an appeal to the High Court of Jakarta. On August 21, 2017 the High Court of Jakarta issued a Decision reinforcing the PN Jakarta Pusat decision dated November 4, 2014 No. 49/PDT.G/2014/PN.CKT.PST Upon the decision of the High Court of Jakarta, on October 25, 2017, PT Berkala International and PT Eksplorasi Mantap Indonesia submitted Cassation Brief to the Supreme Court of Republic of Indonesia. Furthermore, on January 9, 2018, SP has filed a Cassation Memorandum Contra to the Supreme Court of the Republic of Indonesia through PN Jakarta Pusat Special Class 1A as set forth in the Deed of Cassation Memorandum Contra Acceptance No.143/Srt.Pdt.Kas /2017/PN.JKT.PST. Until the issuance of this consolidation financial statements, SP is still awaiting the cassation decision from the Supreme Court of Republic of Indonesia.







(Continued)

- 153 -

Pada tanggal 4 Nopember 2014 PN Jakarta Pusat mengeluarkan putusan yang mengabulkan gugatan SP sebagai berikut:

On November 4, 2014, PN Jakarta Pusat issued its decision in favor of SP as follows:

a. Menyatakan PT Berkala Internasional

dan PT Eksplorasi Mantap International telah melakukan perbuatan melawan hukum (onrechtmatigdaad) sebagaimana diatur dalam pasal 1365 KUH Perdata.

a. Stated that PT Berkala Internasional and PT Eksplorasi Mantap International has commited an unlawful act as stipulated (onrechtmatigdaad) in Article 1365 of the Civil Code.

b. Memutuskan bahwa PT Berkala

Internasional dan PT Eksplorasi Mantap International mengganti kerugian kepada SP secara tanggung renteng sebesar Rp26.050.404 secara tunai dan sekaligus.

b. Ordered PT Berkala Internasional and PT Eksplorasi Mantap International to indemnify jointly to SP amounting to Rp26,050,404 in cash and at the same time.

Selanjutnya atas putusan PN Jakarta Pusat tersebut, PT Berkala Internasional dan PT Eksplorasi Mantap International mengajukan banding ke Pengadilan Tinggi Jakarta sebagaimana tertuang dalam Akta Permohonan Banding nomor 172/SRT.PDT.BDG/2014/PN.JKT.PST jo nomor 49/PDT.G/2014/PN.JKT.PST tanggal 17 Nopember 2014.

Furthermore, related to PN Jakarta Pusat’s decision, PT Berkala Internasional and PT Eksplorasi Mantap International filed an appeal to the High Court of Jakarta as stated in the Deed of Appeal number 172/SRT.PDT.BDG/2014/PN.JKT.PST jo number 49/PDT.G/2014/PN.JKT.PST dated November 17, 2014.

Pada Pebruari 2016, SP mengajukan kontra memori banding ke Pengadilan Tinggi Jakarta. Pada 21 Agustus 2017 Pengadilan tinggi Jakarta mengeluarkan putusan yang menguatkan putusan PN Jakarta Pusat tanggal 4 November 2014 No. 49/PDT.G/2014/PN.CKT.PST. Atas putusan Pengadilan Tinggi Jakarta tersebut, pada tanggal 25 Oktober 2017 PT Berkala International dan PT Eksplorasi Mantap Indonesia mengajukan Memori Kasasi ke Mahkamah Agung Republik Indonesia. Selanjutnya pada tanggal 9 Januari 2018 SP telah mengajukan Kontra Memori Kasasi ke Mahkamah Agung Republik Indonesia melalui Pengadilan Negeri Jakarta Pusat Kelas 1A Khusus sebagaimana tertuang dalam Akta Penerimaan Kontra Memori Kasasi No.143/Srt.Pdt.Kas/2017/PN.JKT.PST Sampai dengan laporan keuangan konsolidasian ini diterbitkan SP masih menunggu keputusan kasasi dari Mahkamah Agung Republik Indonesia.

In February 2016, SP filed an appeal to the High Court of Jakarta. On August 21, 2017 the High Court of Jakarta issued a Decision reinforcing the PN Jakarta Pusat decision dated November 4, 2014 No. 49/PDT.G/2014/PN.CKT.PST Upon the decision of the High Court of Jakarta, on October 25, 2017, PT Berkala International and PT Eksplorasi Mantap Indonesia submitted Cassation Brief to the Supreme Court of Republic of Indonesia. Furthermore, on January 9, 2018, SP has filed a Cassation Memorandum Contra to the Supreme Court of the Republic of Indonesia through PN Jakarta Pusat Special Class 1A as set forth in the Deed of Cassation Memorandum Contra Acceptance No.143/Srt.Pdt.Kas /2017/PN.JKT.PST. Until the issuance of this consolidation financial statements, SP is still awaiting the cassation decision from the Supreme Court of Republic of Indonesia.





(Continued)

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b. Pada tanggal 4 Agustus 2016, PT Wijaya Karya Industri & Konstruksi (WIKON) mengajukan permohonan pengalihan pekerjaan proyek pekerjaan Mechanical Construction Paket (MC) 2 dan 3 sehubungan dengan pembangunan Indarung VI dari WIKON ke SP. Total nilai kontrak pekerjaan MC 2 dan 3 adalah Rp108.997.500. SP menyetujui permohonan atas pengalihan pekerjaan tersebut efektif tanggal 4 Agustus 2016 dimana biaya atas pengalihan pekerjaan tersebut akan diperhitungkan dengan tagihan dari WIKON. Pada tanggal 4 Mei 2017 disepakati pemutusan kontrak MC2 dan MC3 terhitung sejak tanggal 4 Agustus 2016 dengan posisi progress pekerjaan MC 2 dan MC 3 masing-masing sebesar 59,13% dan 42,28%.

b. On August 4, 2016, PT Wijaya Karya Industri & Konstruksi (WIKON) submitted a request for the transfer of the workload of the Mechanical Construction Projects (MC) 2 and 3 in connection with the construction of Indarung VI from WIKON to SP. The total contract value of MC 2 and 3 is Rp108,997,500. SP approved the application for the transfer of the workload effective on August 4, 2016 and the additional cost arising from the transfer of workload will be incorporated to billing calculation from WIKON. On May 4, 2017, it was agreed that the termination of MC2 and MC3 contract is effective from August 4, 2016, with the status of MC 2 and MC 3 work progress is 59.13% and 42.28%, respectively.

WIKON menyampaikan klaim pertama permohonan tambahan biaya pelaksanaan MC 2 dan 3 pertama sebesar Rp90.207.065 ribu pada tahun 2016 dan berdasarkan Notulen Rapat koordinasi penyelesaian permasalahan pekerjaan MC 2 dan 3 tanggal 9 Juni 2017 antara SP dan WIKON, klaim yang disepakati adalah sebesar Rp385.494 dimana SP telah mencatat klaim ini sebagai beban akrual pada tanggal 31 Desember 2017.

WIKON submitted the first claim for application of additional cost of MC 2 and 3 projects amounting to Rp90,207,065 thousand in 2016 and based on the Minutes of Coordination Meeting on the settlement of MC 2 and 3 work issues dated June 9, 2017 between SP and WIKON, the claim that was agreed and validated by both party amounting to Rp385,494, which has been recorded as accrued expense on December 31, 2017.

Kemudian pada tanggal 8 Nopember 2017, WIKON melakukan revisi atas klaim tersebut dimana klaim tersebut meningkat menjadi Rp173.344.543. SP telah meminta WIKON untuk menyampaikan dokumen pendukung atas bukti-bukti valid klaim tersebut yang akan dievaluasi lebih lanjut oleh SP. Sampai dengan laporan keuangan konsolidasian ini diterbitkan, SP masih menunggu dokumen bukti-bukti pendukung atas klaim tersebut.

Subsequently, on November 8, 2017, WIKON submited revised claim wherein the claim increased to Rp173,344,543. SP has requested WIKON to submit supporting documents for the valid evidence of such claim which will be further evaluated by SP. Until the issuance of consolidated financial statements, SP is still awaiting supporting documents for the claim.

Pada tanggal 26 Pebruari 2018, SP menyampaikan surat penolakan atas klaim WIKON karena klaim tersebut tidak didukung dengan bukti-bukti yang lengkap dan benar. Selain itu SP juga menegaskan kembali klaim kepada WIKON pada tanggal 6 Juni 2017 terkait kegagalan untuk menyelesaikan pekerjaan dengan klaim senilai Rp19.339.968 ribu dan tanggal 9 Agustus 2017 terkait biaya tambahan untuk supervisi pekerjaan akibat keterlambatan pekerjaan MC 2 dan 3 akibat penarikan tenaga kerja oleh WIKON periode Juli – Agustus 2016 senilai Rp6.779.349 ribu

On February 26, 2018, SP submitted a rejection letter for WIKON's claim because the claim was not supported by complete and valid evidence. In addition, SP also reaffirmed the claim to WIKON on June 6, 2017 related to the failure to complete work with claims amounting to Rp19,339,968 thousand and August 9, 2017 related to additional costs for supervision of work due to delays in MC 2 and 3 work progress due to labor withdrawal by WIKON for the period July - August 2016 amounting to Rp6,779,349 thousand.

Sejak penolakan klaim tanggal 26 Pebruari 2018 sampai dengan laporan konsolidasian ini diterbitkan, WIKON belum menyerahkan bukti-bukti pendukung yang lengkap dan benar terkait klaimnya kepada SP.

Since the rejection of the claim dated February 26, 2018 until the issuance of consolidated financial statements, WIKON has not submitted complete and valid supporting evidence regarding its claim to SP.







(Continued)

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SP tidak membentuk penyisihan atas klaim tersebut karena manajemen berkeyakinan bahwa SP memiliki posisi yang kuat dan hasil akhir klaim tersebut tidak akan berdampak signifikan terhadap laporan keuangan.

SP has not recognized any liability in relation to the above mentioned claim as management believes that SP has a strong position and that the final outcome of the claim will not have a significant impact on the financial statements.

c. Pada tanggal 2 Agustus 2017, terdapat

Gugatan Tata Usaha Negara dari Giring dkk kepada Kepala Kantor Agraria & Tata Ruang/ BPN Kab. Tuban di PTUN Surabaya dengan obyek sengketa Surat Kepala Kantor Agraria & Tata Ruang/ BPN Kab. Tuban Nomor: 1064/100-35.23/V/2017, tanggal 5 Mei 2017, perihal Penjelasan atas permohonan pengukuran an. Giring dkk (8 orang/ bidang) Desa Gaji, Kec. Kerek, Kab. Tuban

c. On August 2, 2017, there was a State Administration Lawsuit from Giring et al to the Head of Agrarian Office & Spatial / BPN Kab. Tuban in PTUN Surabaya with the object of dispute Letter Head of Office of Agrarian & Spatial / BPN Kab. Tuban Number: 1064 / 100-35.23 / V / 2017, dated May 5, 2017, regarding the Explanation of the request for measurement. Giring et al (8 people / field) Gaji Village, Kec. Kerek, Kab. Tuban

Perkara ini merupakan permasalahan yang sama dengan Gugatan Tata Usaha Negara dari Daru dkk., namun dengan obyek gugatan tata usaha negara yang berbeda.

This case is the same issue as the State Administrative Lawsuit from Daru et al., but with the object of different state administrative lawsuits.

Pada tanggal 1 Maret 2018 PTUN Surabaya menerbitkan Putusan yang menolak gugatan Penggugat untuk seluruhnya. Atas Putusan PTUN Surabaya tersebut, Penggugat mengakukan permohonan banding di Pengadilan Tinggi Tata Usaha Negara Surabaya dan masih berproses sampai dengan 31 Desember 2018.

On March 1, 2018, PTUN Surabaya issued a Decision that rejected the Plaintiff's claim in its entirety. On the Decision of the Administrative Court of Surabaya, the Plaintiff has filed an appeal with the State Administrative Court of Surabaya and still proceeds to December 31, 2018.

Pada tanggal 14 Maret 2018, Penggugat mengajukan banding ke Pengadilan Tinggi Tata Usaha Surabaya. Pada tanggal 31 Juli 2018 Pengadilan Tinnggi Tata Usaha Negara Surabaya telah menerbitkan Putusan No. 91/B/2018/PT.TUN.SBY pada kasus banding yang menguatkan keputusan pengadilan tingkat pertama.

On March 14, 2018, the Plaintiff filed an appeal to the Surabaya High Administrative Court. At the date of 31 July 2018 Surabaya State Administrative High Court has issued Decision No. 91 / B / 2018 / PT.TUN.SBY on an appeal case that upheld the decision of the first level court.

Atas Putusan Banding Pengadilan Tinggi Tata Usaha Negara Surabaya tersebut, Penggugat mengajukan upaya hukum Kasasi di Mahkamah Agung.

Based on the Appeal Decision of the Surabaya State High Administrative Court, the Plaintiff filed an appeal to the Supreme Court.

Hingga tanggal laporan keuangan konsolidasian diterbitkan, hal ini masih dalam pemeriksaan di Mahkamah Agung.

As of the issuance date of these consolidated financial statements, the examination still under investigation at the Supreme Court.

d. Pada tanggal 10 Pebruari 2015, VULS

mendaftarkan gugatan wanprestasi CV Mahakarya Mandiri Sejahtera atas piutang usaha yang belum dilunasi beserta denda keterlambatan 2% per bulan sebesar Rp3.268.670 ke Pengadilan Negeri Gresik dengan gugatan sita jaminan atas aset tanah dan bangunan milik CV Mahakarya Mandiri Sejahtera.

d. On February 10, 2015, VULS filed a civil suit against CV Mahakarya Mandiri Sejahtera pertaining to unpaid trade accounts receivable including interest charges of 2% per month amounting to Rp3,268,670 to Gresik District Court with a lawsuit against the assets of land and buildings owned by CV Mahakarya Mandiri Sejahtera.







(Continued)

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SP tidak membentuk penyisihan atas klaim tersebut karena manajemen berkeyakinan bahwa SP memiliki posisi yang kuat dan hasil akhir klaim tersebut tidak akan berdampak signifikan terhadap laporan keuangan.

SP has not recognized any liability in relation to the above mentioned claim as management believes that SP has a strong position and that the final outcome of the claim will not have a significant impact on the financial statements.

c. Pada tanggal 2 Agustus 2017, terdapat

Gugatan Tata Usaha Negara dari Giring dkk kepada Kepala Kantor Agraria & Tata Ruang/ BPN Kab. Tuban di PTUN Surabaya dengan obyek sengketa Surat Kepala Kantor Agraria & Tata Ruang/ BPN Kab. Tuban Nomor: 1064/100-35.23/V/2017, tanggal 5 Mei 2017, perihal Penjelasan atas permohonan pengukuran an. Giring dkk (8 orang/ bidang) Desa Gaji, Kec. Kerek, Kab. Tuban

c. On August 2, 2017, there was a State Administration Lawsuit from Giring et al to the Head of Agrarian Office & Spatial / BPN Kab. Tuban in PTUN Surabaya with the object of dispute Letter Head of Office of Agrarian & Spatial / BPN Kab. Tuban Number: 1064 / 100-35.23 / V / 2017, dated May 5, 2017, regarding the Explanation of the request for measurement. Giring et al (8 people / field) Gaji Village, Kec. Kerek, Kab. Tuban

Perkara ini merupakan permasalahan yang sama dengan Gugatan Tata Usaha Negara dari Daru dkk., namun dengan obyek gugatan tata usaha negara yang berbeda.

This case is the same issue as the State Administrative Lawsuit from Daru et al., but with the object of different state administrative lawsuits.

Pada tanggal 1 Maret 2018 PTUN Surabaya menerbitkan Putusan yang menolak gugatan Penggugat untuk seluruhnya. Atas Putusan PTUN Surabaya tersebut, Penggugat mengakukan permohonan banding di Pengadilan Tinggi Tata Usaha Negara Surabaya dan masih berproses sampai dengan 31 Desember 2018.

On March 1, 2018, PTUN Surabaya issued a Decision that rejected the Plaintiff's claim in its entirety. On the Decision of the Administrative Court of Surabaya, the Plaintiff has filed an appeal with the State Administrative Court of Surabaya and still proceeds to December 31, 2018.

Pada tanggal 14 Maret 2018, Penggugat mengajukan banding ke Pengadilan Tinggi Tata Usaha Surabaya. Pada tanggal 31 Juli 2018 Pengadilan Tinnggi Tata Usaha Negara Surabaya telah menerbitkan Putusan No. 91/B/2018/PT.TUN.SBY pada kasus banding yang menguatkan keputusan pengadilan tingkat pertama.

On March 14, 2018, the Plaintiff filed an appeal to the Surabaya High Administrative Court. At the date of 31 July 2018 Surabaya State Administrative High Court has issued Decision No. 91 / B / 2018 / PT.TUN.SBY on an appeal case that upheld the decision of the first level court.

Atas Putusan Banding Pengadilan Tinggi Tata Usaha Negara Surabaya tersebut, Penggugat mengajukan upaya hukum Kasasi di Mahkamah Agung.

Based on the Appeal Decision of the Surabaya State High Administrative Court, the Plaintiff filed an appeal to the Supreme Court.

Hingga tanggal laporan keuangan konsolidasian diterbitkan, hal ini masih dalam pemeriksaan di Mahkamah Agung.

As of the issuance date of these consolidated financial statements, the examination still under investigation at the Supreme Court.

d. Pada tanggal 10 Pebruari 2015, VULS

mendaftarkan gugatan wanprestasi CV Mahakarya Mandiri Sejahtera atas piutang usaha yang belum dilunasi beserta denda keterlambatan 2% per bulan sebesar Rp3.268.670 ke Pengadilan Negeri Gresik dengan gugatan sita jaminan atas aset tanah dan bangunan milik CV Mahakarya Mandiri Sejahtera.

d. On February 10, 2015, VULS filed a civil suit against CV Mahakarya Mandiri Sejahtera pertaining to unpaid trade accounts receivable including interest charges of 2% per month amounting to Rp3,268,670 to Gresik District Court with a lawsuit against the assets of land and buildings owned by CV Mahakarya Mandiri Sejahtera.





(Continued)

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Setelah menjalani proses sidang, pada tanggal 13 Oktober 2015 putusan sela telah dijatuhkan oleh Majelis Hakim Perkara Perdata No. 10/PDT.G/2015/PN.GSK yaitu pada intinya mengabulkan sebagian dari gugatan yang diajukan oleh VULS dan menolak tuntutan provisi VULS untuk melakukan sita jaminan.

On October 13, 2015, the panel of judges has handed down its verdict, with verdict No.10/PDT.G/2015/PN.GSK which declares to approve the lawsuit filed by VULS and refuses for confiscating the collateral.

Atas keputusan tersebut, CV Mahakarya Mandiri Sejahtera mengajukan banding. Setelah menjalani proses sidang, pada tanggal 8 Juni 2016 putusan sela dijatuhkan oleh Majelis Hakim Perkara Perdata No. 10/PDT.PLW/2015/PN.GSK yaitu pada intinya menolak banding yang diajukan oleh CV Mahakarya Mandiri Sejahtera. Atas putusan ini CV Mahakarya Mandiri Sejahtera mengajukan banding ke Pengadilan Tinggi Surabaya.

Pertaining to above verdict, CV Mahakarya Mandiri Sejahtera filed an appeal. After the trial process, on June 8, 2016, the panel of judges has handed down its verdict No. 10/PDT.PLW/2015/PN.GSK which rejected the appeal filed by CV Mahakarya Mandiri Sejahtera. As the result of this trial, CV Mahakarya Mandiri Sejahtera filed objection to the High Court of Surabaya.

Sesuai dengan surat keputusan No. 550/PDT/2016/PT SBY tanggal 21 September 2016, Pengadilan Tinggi Surabaya mengabulkan pengajuan banding CV Mahakarya Mandiri Sejahtera. VULS mengajukan kasasi atas keputusan ini kepada Mahkamah Agung Republik Indonesia pada tanggal 9 Desember 2016.

Based on decision letter No. 550/PDT/2016/PT SBY dated September 21, 2016, the High Court of Surabaya approved the objection filed of CV Mahakarya Mandiri Sejahtera. VULS filed an appeal to the Supreme Court of Republic Indonesia on December 9, 2016.

Pada tanggal 30 Januari 2018, VULS menerima surat keputusan dari Mahkamah Agung No. 3142K/Pdt/2018 dan Mahkamah Agung menolak permohonan kasasi VULS.

On January 30, 2018, VULS received decision letter from the High Court No. 3142K/Pdt/2018 and the High Court refused company’s appeal objection.

3) Berdasarkan Keputusan No.1488/QD-TTg yang

dikeluarkan oleh Perdana Menteri Vietnam pada tanggal 29 Agustus 2011 yang meratifikasi atas rencana pengembangan industri semen di Vietnam untuk periode 2011 - 2020 dengan visi sampai 2030, proyek pabrik semen TLCC2 telah termasuk dalam daftar proyek yang disetujui. Namun, berdasarkan Keputusan No. 1588/QD-UBND yang dikeluarkan oleh Komite Rakyat Provinsi Quang Ninh pada tanggal 28 Juli 2014 untuk persetujuan rencana konstruksi regional Provinsi Quang Ninh untuk visi 2030 hingga 2050 dan setelah 2050, lokasi proyek pabrik semen TLCC2 kemungkinan akan direlokasi ke area lain. Sampai dengan tanggal penerbitan laporan keuangan konsolidasian, TLCC2 telah mengirimkan dokumen kepada otoritas terkait untuk memohon perijinan melanjutkan proyek konstruksi namun hingga saat ini belum mendapatkan tanggapan. Manajemen yakin bahwa pabrik semen TLCC2 tidak akan direlokasi sesuai dengan Keputusan No.1488/QD-TTg.

3) According to Decision No.1488/QD-TTg issued by the Prime Minister of Vietnam dated on August 29, 2011 ratifying the cement industry development plan in Vietnam for the period 2011 - 2020 with vision to 2030, the cement plant project of TLCC2 was included in the approved list of projects. However, according to Decision No. 1588/QD-UBND issued by People’s Committee of Quang Ninh Province dated on July 28, 2014 for approval of regional construction plan of Quang Ninh Province to 2030 vision toward 2050 and beyond 2050, the site of TLCC2 cement plant project may be re-allocated to another area. As of the issuance date of the consolidated financial statements, TLCC2 had sent a document to relevant authorities requesting for permission to continue the project construction but has not yet received any feedback. The management believes that the Company’s cement plant would not be subject to reallocation as per Decision No.1488/QD-TTg.







(Continued)

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51. TRANSAKSI NON-KAS 51. NON-CASH TRANSACTIONS

Transaksi investasi dan pendanaan non-kas Grup adalah sebagai berikut:

Non-cash investing and financing transactions of the Group are as follow:

2018 2017

Perolehan aset tetap melalui Acquisition of f ixed assets throughreklasif ikasi uang muka dan utang 169.614.838 197.403.160 reclassif ication of advance and payables

Perolehan aset tetap melalui Acquisition of f ixed assets throughsew a pembiayaan 21.158.079 21.591.962 f inance lease

Kapitalisasi estimasi biaya Capitalization of the estimated cost ofpembongkaran aset tetap 16.881.757 30.350.088 f ixed assets dismantling

Biaya pinjaman dikapitalisasi Unpaid borrow ing costs yang belum dibayar - 92.014.200 capitalized

52. PENYAJIAN KEMBALI LAPORAN KEUANGAN

KONSOLIDASIAN TAHUN SEBELUMNYA 52. RESTATEMENT OF PRIOR YEAR’

CONSOLIDATED FINANCIAL STATEMENTS

Pada periode tahun 2000 sampai dengan 2013, Perseroan telah menandatangani beberapa perjanjian kerjasama kontrak asuransi dengan AJB BP untuk mendanai program manfaat pasti Perseroan yaitu BPKP, TKHT, dan MPP (Catatan 42).

In various periods from 2000 to 2013, the Company entered into several insurance contract cooperation agreements with AJB BP to fund the Company’s defined benefit programs for the BPKP, TKHT, and MPP (Note 42).

Pada tanggal 29 Maret 2017, Perseroan telah mengirimkan surat kepada AJB BP perihal pengakhiran perjanjian kerja sama kontrak asuransi yang efektif sejak tanggal 1 Juli 2017. Setelah melakukan permintaan pengakhiran tersebut, Perseroan dan AJB BP pada tanggal 6 Juni 2017 melakukan pertemuan dan menyetujui hal-hal sebagai berikut:

On March 29, 2017, the Company sent a letter to AJB BP on its intention to terminate the above insurance contract cooperation agreements effective July 1, 2017. Following the request for termination, the Company and AJB BP met on June 6, 2017 and agreed among others the following:

Tanggal pengakhiran adalah 1 Juli 2017. Data yang digunakan sebagai dasar untuk

perhitungan hak dan kewajiban kedua belah pihak adalah tanggal 30 April 2017 (tanggal penilaian) dan setiap transaksi setelah tanggal tersebut sampai tanggal pengakhiran akan disesuaikan.

Pada tanggal 15 Juni 2017, AJB BP mengajukan perhitungan atas jumlah yang terhutang kepada Perseroan pada tanggal valuasi berdasarkan posisi AJB BP saat klausal pengakhiran yang disebutkan dalam perjanjian asuransi. Melalui surat yang dikirimkan ke AJB BP pada tanggal 4 Juli 2017, Perseroan menyatakan tidak menyetujui perhitungan AJB BP. Tidak ada kesepakatan yang terjadi sampai dengan 31 Desember 2017.

The termination date is July 1, 2017. The data used as basis for the calculation of the

rights and obligation of both parties is as at April 30, 2017 (valuation date) and any transactions after such date until the termination date will be adjusted.


Ketika kedua pihak masih melakukan proses rekonsiliasi hak dan kewajiban berdasarkan pandangan masing-masing pihak atas kewajiban pengakhiran, pada tanggal 15 Januari 2018, Perseroan kembali bertemu dengan AJB BP dengan tujuan untuk mengajukan pembatalan pengakhiran. Namun berita acara pertemuan tersebut belum ditanda tangani oleh pihak AJB BP. Pada tanggal 19 Januari 2018, AJB BP menyerahkan Corporate Guarantee kepada Perseroan yang menyatakan bahwa AJB BP menjamin keamanan pengelolaan dana yang diterima sebagai pembayaran premi, dan karenanya, AJB BP akan melaksanakan kewajibannya sebagaimana diatur dalam kontrak perjanjian.








(Continued)

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51. TRANSAKSI NON-KAS 51. NON-CASH TRANSACTIONS

Transaksi investasi dan pendanaan non-kas Grup adalah sebagai berikut:

Non-cash investing and financing transactions of the Group are as follow:

2018 2017

Perolehan aset tetap melalui Acquisition of f ixed assets throughreklasif ikasi uang muka dan utang 169.614.838 197.403.160 reclassif ication of advance and payables

Perolehan aset tetap melalui Acquisition of f ixed assets throughsew a pembiayaan 21.158.079 21.591.962 f inance lease

Kapitalisasi estimasi biaya Capitalization of the estimated cost ofpembongkaran aset tetap 16.881.757 30.350.088 f ixed assets dismantling

Biaya pinjaman dikapitalisasi Unpaid borrow ing costs yang belum dibayar - 92.014.200 capitalized

52. PENYAJIAN KEMBALI LAPORAN KEUANGAN

KONSOLIDASIAN TAHUN SEBELUMNYA 52. RESTATEMENT OF PRIOR YEAR’

CONSOLIDATED FINANCIAL STATEMENTS

Pada periode tahun 2000 sampai dengan 2013, Perseroan telah menandatangani beberapa perjanjian kerjasama kontrak asuransi dengan AJB BP untuk mendanai program manfaat pasti Perseroan yaitu BPKP, TKHT, dan MPP (Catatan 42).

In various periods from 2000 to 2013, the Company entered into several insurance contract cooperation agreements with AJB BP to fund the Company’s defined benefit programs for the BPKP, TKHT, and MPP (Note 42).

Pada tanggal 29 Maret 2017, Perseroan telah mengirimkan surat kepada AJB BP perihal pengakhiran perjanjian kerja sama kontrak asuransi yang efektif sejak tanggal 1 Juli 2017. Setelah melakukan permintaan pengakhiran tersebut, Perseroan dan AJB BP pada tanggal 6 Juni 2017 melakukan pertemuan dan menyetujui hal-hal sebagai berikut:

On March 29, 2017, the Company sent a letter to AJB BP on its intention to terminate the above insurance contract cooperation agreements effective July 1, 2017. Following the request for termination, the Company and AJB BP met on June 6, 2017 and agreed among others the following:

Tanggal pengakhiran adalah 1 Juli 2017. Data yang digunakan sebagai dasar untuk

perhitungan hak dan kewajiban kedua belah pihak adalah tanggal 30 April 2017 (tanggal penilaian) dan setiap transaksi setelah tanggal tersebut sampai tanggal pengakhiran akan disesuaikan.

Pada tanggal 15 Juni 2017, AJB BP mengajukan perhitungan atas jumlah yang terhutang kepada Perseroan pada tanggal valuasi berdasarkan posisi AJB BP saat klausal pengakhiran yang disebutkan dalam perjanjian asuransi. Melalui surat yang dikirimkan ke AJB BP pada tanggal 4 Juli 2017, Perseroan menyatakan tidak menyetujui perhitungan AJB BP. Tidak ada kesepakatan yang terjadi sampai dengan 31 Desember 2017.

The termination date is July 1, 2017. The data used as basis for the calculation of the

rights and obligation of both parties is as at April 30, 2017 (valuation date) and any transactions after such date until the termination date will be adjusted.


Ketika kedua pihak masih melakukan proses rekonsiliasi hak dan kewajiban berdasarkan pandangan masing-masing pihak atas kewajiban pengakhiran, pada tanggal 15 Januari 2018, Perseroan kembali bertemu dengan AJB BP dengan tujuan untuk mengajukan pembatalan pengakhiran. Namun berita acara pertemuan tersebut belum ditanda tangani oleh pihak AJB BP. Pada tanggal 19 Januari 2018, AJB BP menyerahkan Corporate Guarantee kepada Perseroan yang menyatakan bahwa AJB BP menjamin keamanan pengelolaan dana yang diterima sebagai pembayaran premi, dan karenanya, AJB BP akan melaksanakan kewajibannya sebagaimana diatur dalam kontrak perjanjian.






(Continued)

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Pada tanggal 21 Januari 2019, AJB BP mengeluarkan surat bahwa sebelum surat pengakhiran yang diajukan oleh Perseroan dapat dibatalkan, maka Perseroan perlu memastikan kecukupan dan ketersediaan saldo dana untuk menyelesaikan semua kewajiban manfaatnya sesuai yang tertuang pada program manfaat.

On January 21, 2019, AJB BP issued a letter that before the cancellation letter submitted by the Company can be revoked, the Company needs to ensure the adequacy of availability of fund balance to settle all past service benefit obligations under the benefit programs.

Berdasarkan kondisi di atas, pengakhiran perjanjian kerja sama kontrak asuransi efektif sejak 2017 dan pembatalan pengakhiran yang diajukan Perseroan belum efektif. Berdasarkan klausul didalam kontrak perjanjian kerjasama, AJB BP berkewajiban untuk mengembalikan dana pengelolaan asuransi sesuai dengan perhitungan aktuaria yang disepakati oleh Perseroan dan AJB BP. Kewajiban kepada karyawan berdasarkan program tersebut menjadi kewajiban Perseroan sampai pembatalan pengakhiran yang diajukan oleh Perseroan menjadi efektif. Berdasarkan status kontrak perjanjian kerjasama per 31 Desember 2017 dan klausul terkait pengakhiran perjanjian kerjasama tersebut, Perseroan mencatat penyesuaian tahun sebelumnya untuk mencatat piutang saldo dana dan kewajiban imbalan kerja masing-masing sebesar Rp5.513.865 dan Rp498.166.911 per tanggal 31 Desember 2017.

Based on the above condition, the termination of the insurance cooperation agreements was effective in 2017 and request for revocation of the termination letter submitted by the Company has not been effective. Based on the terms of the insurance cooperations agreements, AJB BP is obliged to return the insurance management funds in accordance with actuarial calculation agreed upon by the Company and AJB BP. The employee benefits obligation under the benefit programs becomes the liability of the Group until the revocation of termination letter submitted by the Company becomes effective. Due to the status of the insurance cooperation contracts as of December 31, 2017 and the terms relating to termination, the Group has recorded a prior year adjustment to record the plan asset and the past service benefits obligation amounting to Rp5,513,865 and Rp498,166,911, respectively, as of December 31, 2017.

Laporan posisi keuangan konsolidasian pada tanggal 31 Desember 2017 sebelum dan sesudah penyajian kembali adalah sebagai berikut:

The consolidated statements of financial position as of December 31, 2017 before and after restatement are as follows:

Dilaporkan Jumlahsebelumnya/ penyajian kembali/ DisajikanAs previously Restatement kembali/

reported amount As restated

Aset pajak tangguhan 664.718.161 99.633.382 764.351.543 Deferred tax assetsAset tidak lancar lainnya 343.697.366 5.513.865 349.211.231 Other non-current assets

Long-term employee benefitsLiabilitas imbalan kerja jangka panjang 1.279.712.096 498.166.911 1.777.879.007 liabilitiesSaldo laba Retained earnings

- Belum ditentukan penggunaannya 26.480.022.941 (393.019.663) 26.087.003.278 - Unappropriated

31 Desember/December 31, 2017

Laporan laba rugi dan penghasilan komprehensif lain Perseroan untuk tahun yang berakhir pada tanggal 31 Desember 2017 sebelum dan sesudah penyesuaian kembali adalah sebagai berikut:

The Company's income statement and other comprehensive income for the year ended December 31, 2017 are as follows:

Dilaporkan Setelahsebelumnya/ DisajikanAs previously Penyesuaian/ kembali/

reported Adjustment After restatement

Beban umum dan administrasi (2.421.984.391) (492.653.045) (2.914.637.436) General and administration expensesBeban pajak penghasilan (703.520.449) 99.633.382 (603.887.067) Income tax expenseLaba tahun berjalan yang Net profit for the year

dapat diatribusikan kepada: attributable to:Pemilik entitas induk 2.014.014.753 (393.019.663) 1.620.995.090 Ow ners of the parent entity

Penghasilan komprehensif Total comprehensive incomeyang diatribusikan kepada: attributable to:Pemilik entitas induk 1.688.437.547 (393.019.663) 1.295.417.884 Ow ners of the parent entity

Untuk tahun yang berakhir 31 Desember 2017/For the year ended December 31, 2017

Laporan posisi keuangan pada tanggal 1 Januari 2017 tidak disajikan karena tidak ada dampak keuangan untuk tahun yang berakhir pada tanggal 31 Desember 2016.

The statement of financial position as at January 1, 2017 has not been presented as there has been no financial impact for the year ended December 31, 2016.







(Continued)

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53. PERISTIWA SETELAH PERIODE PELAPORAN 53. EVENT AFTER THE REPORTING PERIOD a. Pada tanggal 12 November 2018, Perseroan

bersama PT Semen Indonesia Industri Bangunan, entitas anak telah menandatangani Conditional Sale and Purchase Agreement dengan Holderfin B.V. untuk melakukan akuisisi atas 80,64% saham PT Holcim Indonesia Tbk, sebuah Perusahaan publik yang berdomisili di Jakarta yang bergerak dalam industri semen.

a. On November 12, 2018, the Company and PT Semen Indonesia Industri Bangunan, subsidiary has entered into a Conditional Sale and Purchase Share Agreement with Holderfin B.V., to acquire 80.64% share ownership of PT Holcim Indonesia Tbk, a public company based in Jakarta which is engaged in cement industry.

Akuisisi telah diselesaikan pada tanggal 31 Januari 2019 dengan nilai akuisisi sebesar USD916.929.814 (setara dengan Rp12.958.648.084) dan telah diumumkan Perseroan kepada publik pada tanggal 1 Februari 2019. Perusahaan juga telah memenuhi peraturan OJK yang terkait sehubungan dengan akuisisi ini.


Hingga laporan keuangan konsolidasian auditan ini diterbitkan, proses estimasi nilai wajar dari aset dan liabilitas teridentifikasi PT Holcim Indonesia Tbk yang diambil alih pada tanggal akuisisi masih berjalan sehingga belum dapat diungkapkan dalam laporan keuangan konsolidasian ini.

Until the issuance of the consolidated financial statement published, the estimated fair value of the identifiable assets and liabilities of PT Holcim Indonnesia Tbk at the date of acquisition is still in process and cannot be presented in these consolidated financial statements

Biaya transaksi (terdiri dari biaya akuntan publik, auditor independen, biaya lembaga penilai publik/biaya penilaian, biaya konsultan hukum dan biaya notaris) yang dapat diatribusikan secara langsung atas transaksi akuisisi ini sebesar Rp146.054.343 dan telah dicatat dalam laporan keuangan konsolidasian ini.

Transaction costs (consist of public accountant/ independent auditor fee, appraisal/valuer fee, law consulting fee and notarial fee) which are directly attributed to the acquisition transaction amounted to Rp146,054,343 and has been recognized in this consolidated financial statements.

Dalam rangka pembiayaan akuisisi ini, pada tanggal 12 November 2018, Perseroan dan BNP Paribas Cabang Singapore telah menandatangani perjanjian sindikasi dengan nilai total pinjaman sebesar USD926.970.862 (setara dengan Rp13.068.435.215). Perseroan telah melakukan penarikan pinjaman ini pada tanggal 29 Januari 2019.

In order to finance the acquisition, on November 12, 2018, the Company and BNP Paribas Singapore Branch have signed a loan agreement with a total loan amount of USD926,970,862 (equivalent to Rp13,068,435,215). The Company has made drawdown of loan facility on January 29, 2019.

Akuisisi PT Holcim Indonesia Tbk, diharapkan dapat menjadi langkah yang strategis bagi pertumbuhan dan pengembangan usaha Perusahaan, dan juga diharapkan dapat memberikan kontribusi positif atas kinerja Perseroan.

The acquisition of PT Holcim Indonesia Tbk is considered as a strategic move for the Company to grow and develop its business in Indonesia and provide a positive contribution to the Company's performance.

b. Pada bulan Januari dan Pebruari 2019,

PT Solusi Bangun Indonesia Tbk (d/h PT Holcim Indonesia Tbk) (SBI), entitas anak, menandatangani fasilitas pinjaman dari beberapa bank. Sehubungan dengan fasilitas pinjaman tersebut, Perseroan menjamin akan tetap menjadi pemegang saham mayoritas SBI (langsung maupun tidak langsung) selama fasilitas belum lunas.

b. On January and February, 2019, PT Solusi Bangun Indonesia Tbk (formerly PT Holcim Indonesia Tbk) (SBI), a subsidiary, entered into loan facilities with several banks. In connection with such loan facilities, the Company guarantee that it will remain a majority shareholder of SBI (direct or indirect) as long as the facility has not been paid.







(Continued)

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53. PERISTIWA SETELAH PERIODE PELAPORAN 53. EVENT AFTER THE REPORTING PERIOD a. Pada tanggal 12 November 2018, Perseroan

bersama PT Semen Indonesia Industri Bangunan, entitas anak telah menandatangani Conditional Sale and Purchase Agreement dengan Holderfin B.V. untuk melakukan akuisisi atas 80,64% saham PT Holcim Indonesia Tbk, sebuah Perusahaan publik yang berdomisili di Jakarta yang bergerak dalam industri semen.

a. On November 12, 2018, the Company and PT Semen Indonesia Industri Bangunan, subsidiary has entered into a Conditional Sale and Purchase Share Agreement with Holderfin B.V., to acquire 80.64% share ownership of PT Holcim Indonesia Tbk, a public company based in Jakarta which is engaged in cement industry.

Akuisisi telah diselesaikan pada tanggal 31 Januari 2019 dengan nilai akuisisi sebesar USD916.929.814 (setara dengan Rp12.958.648.084) dan telah diumumkan Perseroan kepada publik pada tanggal 1 Februari 2019. Perusahaan juga telah memenuhi peraturan OJK yang terkait sehubungan dengan akuisisi ini.


Hingga laporan keuangan konsolidasian auditan ini diterbitkan, proses estimasi nilai wajar dari aset dan liabilitas teridentifikasi PT Holcim Indonesia Tbk yang diambil alih pada tanggal akuisisi masih berjalan sehingga belum dapat diungkapkan dalam laporan keuangan konsolidasian ini.

Until the issuance of the consolidated financial statement published, the estimated fair value of the identifiable assets and liabilities of PT Holcim Indonnesia Tbk at the date of acquisition is still in process and cannot be presented in these consolidated financial statements

Biaya transaksi (terdiri dari biaya akuntan publik, auditor independen, biaya lembaga penilai publik/biaya penilaian, biaya konsultan hukum dan biaya notaris) yang dapat diatribusikan secara langsung atas transaksi akuisisi ini sebesar Rp146.054.343 dan telah dicatat dalam laporan keuangan konsolidasian ini.

Transaction costs (consist of public accountant/ independent auditor fee, appraisal/valuer fee, law consulting fee and notarial fee) which are directly attributed to the acquisition transaction amounted to Rp146,054,343 and has been recognized in this consolidated financial statements.

Dalam rangka pembiayaan akuisisi ini, pada tanggal 12 November 2018, Perseroan dan BNP Paribas Cabang Singapore telah menandatangani perjanjian sindikasi dengan nilai total pinjaman sebesar USD926.970.862 (setara dengan Rp13.068.435.215). Perseroan telah melakukan penarikan pinjaman ini pada tanggal 29 Januari 2019.

In order to finance the acquisition, on November 12, 2018, the Company and BNP Paribas Singapore Branch have signed a loan agreement with a total loan amount of USD926,970,862 (equivalent to Rp13,068,435,215). The Company has made drawdown of loan facility on January 29, 2019.

Akuisisi PT Holcim Indonesia Tbk, diharapkan dapat menjadi langkah yang strategis bagi pertumbuhan dan pengembangan usaha Perusahaan, dan juga diharapkan dapat memberikan kontribusi positif atas kinerja Perseroan.

The acquisition of PT Holcim Indonesia Tbk is considered as a strategic move for the Company to grow and develop its business in Indonesia and provide a positive contribution to the Company's performance.

b. Pada bulan Januari dan Pebruari 2019,

PT Solusi Bangun Indonesia Tbk (d/h PT Holcim Indonesia Tbk) (SBI), entitas anak, menandatangani fasilitas pinjaman dari beberapa bank. Sehubungan dengan fasilitas pinjaman tersebut, Perseroan menjamin akan tetap menjadi pemegang saham mayoritas SBI (langsung maupun tidak langsung) selama fasilitas belum lunas.

b. On January and February, 2019, PT Solusi Bangun Indonesia Tbk (formerly PT Holcim Indonesia Tbk) (SBI), a subsidiary, entered into loan facilities with several banks. In connection with such loan facilities, the Company guarantee that it will remain a majority shareholder of SBI (direct or indirect) as long as the facility has not been paid.





(Continued)

- 160 -

54. TANGGUNG JAWAB MANAJEMEN DAN PERSETUJUAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN

54. MANAGEMENT RESPONSIBILITY AND APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

Penyusunan dan penyajian wajar laporan keuangan konsolidasian dari halaman 1 sampai dengan 160 dan informasi tambahan Perseroan dari halaman 161 sampai dengan 162 merupakan tanggung jawab manajemen dan telah disetujui oleh Direksi untuk diterbitkan pada tanggal 30 Maret 2019.

The preparation and fair presentation of the consolidated financial statements on pages 1 to 160 and supplementary information on page 161 to 162 were the responsibilities of the management, and were approved by the Directors and authorized for issue on March 30, 2019.

********



PT SEMEN INDONESIA (PERSERO) Tbk PT SEMEN INDONESIA (PERSERO) TbkENTITAS INDUK SAJA PARENT COMPANY ONLYINFORMASI TAMBAHAN SUPPLEMENTARY INFORMATIONDAFTAR I : INFORMASI INVESTASI DALAM ENTITAS ANAK SCHEDULE I : INFORMATION ON INVESTMENT IN SUBSIDIARIES31 DESEMBER 2018 DAN 2017 DECEMBER 31, 2018 AND 2017(Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain) (Expressed in thousandsof Rupiah, unless otherwise stated)

Dimulainyakegiatan

komersial/Jenis usaha/ Start of

Entitas anak/ Domisili/ Nature of commercialSubsidiaries Domicile business 2018 2017 activities 2018 2017PT Semen Padang (“SP”) Indarung, Produsen semen/ 99,99% 99,99% 1913 9.992.063.002 10.140.568.660 dan entitas anak/ Sumatera Barat/ Cement manufacturingand its subsidiaries West Sumatera

PT Sepatim Batamtama Batam, Pengantongan semen 97,00% 97,00% 1994 35.385.583 37.404.714 (“SB”) 97% saham Kepulauan Riau dan distribusi/Cementdimiliki SP/97% shares packing and distributionowned by SP

PT Bima Sepaja Abadi Tanjung Priok, Pengantongan semen 80,00% 80,00% 1996 182.346.422 169.034.186 (”BSA”) 80% saham Jakarta dan distribusi/Cementdimiliki SP/80% shares packing and distributionowned by SP






East Java


East Java estate


PT Semen Indonesia Beton ("SIB") Jakarta Selatan/ Produksi beton siap pakai/ 99,99% 99,99% 2012 2.225.721.917 1.938.005.787 dan entitas anak/and its subsidiary South Jakarta Production ready mix concrete

DKI Jakarta



West Java


DKI Jakarta





*) Kepemilikan tidak langsung/Indirect ownership

Persentase kepemilikan/Percentage of Ownership Total assets before eliminations

Jumlah aset sebelum eliminasi/

- 161 -




Dimulainyakegiatan


Entitas anak/ Domisili/ Nature of commercialSubsidiaries Domicile business 2018 2017 activities 2018 2017PT Semen Padang (“SP”) Indarung, Produsen semen/ 99,99% 99,99% 1913 9.992.063.002 10.140.568.660 dan entitas anak/ Sumatera Barat/ Cement manufacturingand its subsidiaries West Sumatera

PT Sepatim Batamtama Batam, Pengantongan semen 97,00% 97,00% 1994 35.385.583 37.404.714 (“SB”) 97% saham Kepulauan Riau dan distribusi/Cementdimiliki SP/97% shares packing and distributionowned by SP

PT Bima Sepaja Abadi Tanjung Priok, Pengantongan semen 80,00% 80,00% 1996 182.346.422 169.034.186 (”BSA”) 80% saham Jakarta dan distribusi/Cementdimiliki SP/80% shares packing and distributionowned by SP






East Java


East Java estate


PT Semen Indonesia Beton ("SIB") Jakarta Selatan/ Produksi beton siap pakai/ 99,99% 99,99% 2012 2.225.721.917 1.938.005.787 dan entitas anak/and its subsidiary South Jakarta Production ready mix concrete

DKI Jakarta



West Java


DKI Jakarta






Persentase kepemilikan/Percentage of Ownership Total assets before eliminations

Jumlah aset sebelum eliminasi/

- 161 -


Dimulainyakegiatan




DKI JakartaThang Long Cement Joint Hanoi, Produksi semen/ 70,00% 70,00% 2008 2.480.513.733 2.587.652.201 Stock Company (”TLCC”) Vietnam Cement manufacturingdan entitas anak/and its subsidiaries




PT Semen Indonesia Logistik ("SIL") Gresik, Perdagangan, transportasi, jasa 73,65% 73,65% 1974 2.434.028.459 2.326.876.193 (d/h/formerly PT Varia Usaha) Jawa Timur/ bongkar muat dan konstruksi/dan entitas anak/and its subsidiaries East Java Trade, transportation,

and construction


PT Varia Usaha Fabrikasi ("VUFA") *) Gresik Jawa Timur/ Fabrikasi/Fabrication 48,40% 48,40% 2015 16.997.562 12.239.784 (d/h/formerly PT Megah Sejahtera East Java Bersama (MSB) 52,00% saham dimiliki SID 5,71% saham dimiliki VUBA 5,71% saham dimiliki VUDS dan 2,29% saham dimiliki VULS semuanya entitas anak SIL/ 52,00% shares owned by SID 5,71% shares owned VUBA 5,71% shares owned by VUDS and 2,29% shares owned by VULS all subsidiaries of SIL


PT Varia Usaha Dharma Segara ("VUDS") *)Gresik, Jasa Pengurusan Transportasi/ 73,65% 73,65% 1995 63.343.967 61.915.717 48,00% saham dimiliki SIL dan Jawa Timur/ Freight Forwarding 52,00% saham dimiliki SID East Java entitas anak SIL/ 48,00% shares owned by SIL and 52,00% shares owned by SID the subsidiary of SIL

PT Varia Usaha Lintas Segara ("VULS") *)Gresik, Jasa Transportasi Laut/ 73,65% 73,65% 1997 136.549.235 136.718.753 60,00% saham dimiliki SIL dan Jawa Timur/ Sea Freight 40,00% saham dimiliki VUBA East Java entitas anak SIL/ 60,00% shares owned by SIL and 40,00% shares owned by VUBA the subsidiary of SIL


Percentage of Ownership Total assets before eliminationsPersentase kepemilikan/ Jumlah aset sebelum eliminasi/

- 162 -



Halaman ini sengaja di kosongkan



PT SEMEN INDONESIA (PERSERO) Tbk PT SEMEN INDONESIA (PERSERO) TbkDAN ENTITAS ANAK AND ITS SUBSIDIARIESLAPORAN POSISI KEUANGAN KONSOLIDASIAN CONSOLIDATED STATEMENTS OF FINANCIAL POSITION31 DESEMBER 2018 DAN 2017 DECEMBER 31, 2018 AND 2017(Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain) (Expressed in thousands of Rupiah, unless otherwise stated)


ASET ASSETSASET LANCAR CURRENT ASSETSKas dan setara kas 3j,5 5.245.730.518 3.637.760.116 Cash and cash equivalentsKas dan setara kas yang dibatasi Restricted cash and cash

penggunaannya 3k,5 31.332.430 28.733.149 equivalentsInvestasi jangka pendek 3g,6 8.453.004 8.453.004 Short-term investmentsPiutang usaha Trade receivables

- Pihak ketiga, setelah dikurangi - Third parties, net of allowance cadangan penurunan nilai sebesar for impairment losses of Rp112.435.948 pada Rp112,435,948 at 31 Desember 2018 dan December 31, 2018 and Rp92.847.911 pada Rp92,847,911 at 31 Desember 2017 3g,7 4.585.339.434 4.031.171.228 December 31, 2017

- Pihak berelasi, setelah dikurangi - Related parties, net of allowance cadangan penurunan nilai sebesar for impairment losses of Rp27.967.036 pada Rp27,967,036 at 31 Desember 2018 dan December 31, 2018 and Rp28.966.934 pada Rp28,966,934 at 31 Desember 2017 3g,7,43 1.200.875.923 854.495.086 December 31, 2017

Piutang lain-lain Other receivables- Pihak ketiga, setelah dikurangi - Third parties, net of allowance

cadangan penurunan nilai sebesar for impairment losses of Rp38.787.724 pada Rp38,787,724 at 31 Desember 2018 dan December 31, 2018 and Rp12.562.386 pada Rp12,562,386 at 31 Desember 2017 3g,8 128.196.069 73.004.526 December 31, 2017

- Pihak berelasi, setelah dikurangi - Related parties, net of allowance cadangan penurunan nilai sebesar for impairment losses of Rp1.566.759 pada Rp1,566,759 at 31 Desember 2018 dan December 31, 2018 and Rp2.953.688 pada Rp2,953,688 at 31 Desember 2017 3g,8,43 45.305.835 36.343.891 December 31, 2017

Persediaan - bersih 3m,9 3.544.142.429 3.686.332.189 Inventories - netUang muka 10 162.972.049 209.115.185 AdvancesBeban dibayar dimuka 3n,11 61.727.992 95.802.638 Prepaid expensesPajak dibayar dimuka 3z,12 985.728.316 1.132.561.717 Prepaid taxesAset lancar lainnya 7.881.628 8.045.804 Other current assetsJumlah Aset Lancar 16.007.685.627 13.801.818.533 Total Current Assets

ASET TIDAK LANCAR NON-CURRENT ASSETSAset pajak tangguhan 3z,40 506.557.499 764.351.543 Deferred tax assetsInvestasi pada entitas asosiasi 3l,13 85.637.708 83.664.640 Investment in associatesProperti investasi 3o,14 132.042.739 146.461.993 Investment propertiesAset tetap, setelah dikurangi akumulasi Fixed assets, net of accumulated

penyusutan dan deplesi sebesar depreciation and depletion ofRp16.966.821.508 pada Rp16,966,821,508 at 31 Desember 2018 dan December 31, 2018 andRp15.369.481.980 pada Rp15,369,481,980 at 31 Desember 2017 3p,3w,15 32.748.895.968 32.523.309.598 December 31, 2017

Beban tangguhan - bersih 3u,16 114.671.261 115.933.340 Deferred charges - netAset takberwujud - bersih dan goodwill 3q,3r,17 1.211.665.990 1.269.644.424 Intangible assets - net and goodwillUang muka investasi 18 5.418.625 14.254.911 Advances for investmentAset tidak lancar lainnya 3cc,19 343.314.810 349.211.231 Other non-current assetsJumlah Aset Tidak Lancar 35.148.204.600 35.266.831.680 Total Non-Current AssetsJUMLAH ASET 51.155.890.227 49.068.650.213 TOTAL ASSETS



- 1 -




Nasaruddin UmarIndependent Commissioner

Sony SubrataCommissioner

Mochamad CholiqIndependent Commissioner


Hendrika Nora Osloi SinagaCommissioner

Astera Primanto Bhakti Commissioner

Wahyu HidayatCommissioner

STATEMENT LETTER BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS’ STATEMENT ON THE RESPONSIBILITY FOR THE 2018 ANNUAL REPORT OF

PT SEMEN INDONESIA (PERSERO) TBK



Doddy Sulasmono DiniawanDirector of Finance

Benny WendryDirector of Production

Agung YunantoDirector of Human Capital & Legal


Adi MunandirDirector of Marketing

& Supply Chain

Fadjar JudisiawanDirector of Strategic Business &

Enterprise Development

Tri Abdisatrijo Director of Engineering &

Project

Board of Directors

We, the undersigned, hereby declare that all information contained in the 2018 Annual Report of PT Semen Indonesia (Persero) Tbk. has been presented in its entirety, and that we assume full responsibility for the accuracy of the contents of the Company’s Annual Report.

This statement is hereby made in all integrity.

The Company Annual Report also includes the Consolidated Financial Statements of the Company for the year ended 31 December 2018 and 2017.

Jakarta, April 1, 2019



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Gresik OfficeGedung Utama Semen IndonesiaJalan Veteran, Gresik 61122Jawa Timur, IndonesiaT. +62-31-398-1732F. +62-31-398-3209

Jakarta OfficeSouth Quarter, Tower A, 19th-20th FloorJalan R.A. Kartini Kav. 8, Cilandak BaratJakarta Selatan 12430, IndonesiaT. +62-21-5261174-5F. +62-21-5261176

E. [email protected]

PT Semen Indonesia (Persero) Tbk

ANNUAL REPORT