PT Krakatau Semen Indonesia is a joint venture company between two of Indonesia's biggest state owned enterprises, Krakatau Steel (KRAS) and Semen Indonesia (SMGR). The joint venture agreement was signed on December 20th, 2013. This cooperation agreement is a symbol of synergy between two state-owned enterprises on expanding the business and to increase the competitiveness.
Based on the Ministry of Industry's letter SE-03/MBU.S/2009 and the MOU between Krakatau Steel and Semen Indonesia dated 20/12/2013 No. 22/DU/KS/Kontr/2013 and 1372/HK-06/50000082/12.2013, Krakatau Semen Indonesia was founded by the notarist act Jose Dima Satria No. 40 dated 20th of December, 2013.
Ownership's structure is divided into 50% each for Krakatau Steel and Semen Indonesia, which holds SMI as a controlling shareholder because of the ability and experience of operating grinding plants.
PT Krakatau Steel (Persero) Tbk.
A state owned enterprise with 80% of its shares are owned by the Indonesian goverment and 20 of it are owned by public. The company was founded on August 30th, 1970. By utilizing the facility left by Trikora Steel Mill Project. The project itself were founded in 1960 by the Old Order goverment of President Soekarno. This project was meant as a foundation of a strong and independent national industry.
The company, which has the production capaticty of 3.25 tonnes per year has a variety of products including sponge irons, steel billets, hot steel sheets, cold steel sheets, wire rod and the KHI pipe production plant. Through its subsidiary companies Krakatau Steel are capable of supporting the diversification of business operations of the Company, such as high value-added steel products (spiral pipes, ERW pipes, steel bars, steel profiles), industrial utilities (water, electricity), industrial infrastructure (ports , industrial areas), engineering services (construction, engineering), information technology, and health services (hospitals). All of these has made KS as the only integrated manufacturer in Indonesia.
On November 10, 2010, in the midst of the volatile market conditions, PT Krakatau Steel (Persero) managed to become a public company by carrying out an initial public offering (IPO) and listed its shares on the Indonesia Stock Exchange.
PT Semen Indonesia (Persero) Tbk.
A Holding Company of PT Semen Padang, PT Semen Gresik, PT Semen Tonasa and Thang Long Cement Vietnam, was inaugurated on 7 January 2013. The company is a transformation of PT Semen Gresik (Persero) Tbk that was established on August 7, 1957 is the first state-owned enterprise going public on July 8, 1991 at the same time state-owned enterprise holds the status of Multinational Company with the acquisition of Thang Long Cement Vietnam on December 20, 2012. Status of shareholdingare 51,1% owned by the indonesian goverment and 48,99% are owned by the public.
SMI's production capacity currently reaches 31.8 million tons of cement per year with a national market share of 44%. In addition to having four subsidiary companies in the field of cement industries, SMI's also has dozens of other subsidiaries as well as supporting institutions such as PT Varia Usaha, PT Swadaya Graha, PT Semen Gresik Industrial Packaging, PT United Tractors Semen Gresik, PT Kawasan Industri Gresik, PT SGG Energi Prima, SGG Prima PT Beton, PT Semen Indonesia Information System, Koperasi Warga Semen Gresik (KWSG), PT Swabina Slot, Semen Gresik Hospital, pension funds, educational institutions ranging from Playground to the University under the auspices Semen Indonesia Foundation.
SMI's ability are mainly supported with supporting facilities owned, among others, 23 Packing Plant, 11 Special Port with over 361 distributors and their buffer warehouses scattered throughout the territory Semen Indonesia Group product marketing. currently is completing the construction of two new plants each with a capacity of 3 million tons of cement per year in Padang, West Sumatra Rembang, Central Java. In 2016 the production capacity has reached 38 million tons of cement per year.
KSI's business areas are including GBFS trading and its cementitious derivatives with manufacturing by grinding GBFS into GGBFS that can provide added value by processing hazardous and toxic material into become environmentally friendly. Krakatau Semen Indonesia's also provide alternative ingredients mixing high strength cement composites.
KSI's grinding plant capacities are 750.000 tons per year where half of its capacities will be absorbed by SMI as a material for cement manufacturing, the rest of it will be sold to the general public.
The construction of KSI's grinding plant are worth of IDR. 440 Billion where 30% of it came from internal funds and the 70% of it came from bank loans.