F S

Annual
Report
2016
Winning
the Market through
Transformation
Winning
the Market through
Transformation
Introduction
For Indonesia’s cement industry, 2016 was the lowest year on record in the past 15
years. The plunge of demands due to limited economic growth and excess supply
as new players commenced production while import continued caused cement
prices to slump amidst the competition. The cement industry expects this tight
competition to remain, especially considering the moderate economic projections.
Competitive advantage and the ability to carry out cost transformation will be the
game changers to win the competition.
We have anticipated this condition and have taken measures to respond to

that, namely business model transformation. This is in line with our corporate
transformation, from which we will emerge as a full Strategic Holding starting
early 2017. As a holding company, we will be overseeing four cement Operating
Companies and subsidiaries in building materials as well as other cement relevant
businesses.
With respect to those initaitives, in the middle of 2016 we started developing our
business model and applied the ‘3+1 Strategy’, in which we built business groups
around three business growth pillars, complemented with Cost Transformation
initiative as the basis of our competitiveness, and Commercial Excellence
endeavors. All of these efforts are ultimately aimed for us to win the market.
The fruits of our hardwork have started to show. In spite of weak cement demand, the
Company posted operational and financial performance that is above the industry
average. At the same time, Semen Indonesia was able to lay the foundation for
robust business growth in the future.
Semen Indonesia’s special port in Tuban, East Java

with a capacity of 40.000 DWT
THEME
CONTINUITY
2013 The Future Is Here
The theme “The Future is
Here” reflects the result of our
business analysis on Indonesian
cement industry in 2013 and the
Company’s business continuity
outlook as a Strategic Holding
Company.
2014 Assuring The Move

Into Next Level
Continuing the grand plan
to become the most reliable
cement company locally and
regionally, Semen Indonesia
consistently realized several
corporate actions that covering:
business development,
competency enhancement of
all elements, improvement of
surrounding communities’ life, and
environmental quality.
2 PT Semen Indonesia (Persero) Tbk.

Enforcing Direction in a 2015
Wave of Competition
The change in Indonesia’s cement industry business environment became
apparent in 2015. Low demands due to slow economic growth and the
presence of more players have lead to an increasingly tight competition in
the domestic cement market – not just today, but also tomorrow. To lead
in the market, a cement company will need to demonstrate competitive
advantage and the ability to appropriately manage its costs.
We are ready to embrace this new environment and we have prepared a

number of strategic programs including: production facility development,
distribution facilities, and diversification or cement and non-cement
products to ensure that Semen Indonesia is present in all potential
markets in the country and in the region now and in the future.
To Semen Indonesia, 2015 is the year to

strengthen our international foundations and
synergy, boost our unique competitiveness,
and wisely realize our developmet plans.
This is the year to capture the momentum
of long-term growth and support national
infrastructure development to build the glory
of this nation.
Annual Report 2016

3
Winning The
Domestic Market
Competition
We have moved away from
productionoriented paradigm to
marketoriented paradigm by intensifying
direct to customer strategy, namely consolidating our
strengthes in the domestic market by leveraging our key
superiorities.
We have also stepped up the intensity of our

marketing communications and customer
services in order to meet customer needs
accurately whilst expanding our marketing area.
Results:
41.7%
• Leading company in the
domestic market with market share
• Domestic sales
volume at 25,8
down only 1.0% or well above
the average industry-wide sales
decrease of 5.1%.
• Total sales volume

(domestic+regional market)
up by
1.4 %
to 29,1 million
tons
SALES VOLUME OF DOMESTIC CEMENT TOTAL SALES VOLUME
(in million Tons) (in million Tons)
65 3.5% 62,0 -0.6%

59,9 61,6 29,1
60
55 -2.4% 28,7
-5.1% 28,5 1.4%
50 53,5 52,2 49,5 0.6%
45
40
35
30 26,2 -0.7% -1.1%
26,0
25 25,7
20
2014 2015 2016
2014 2015 2016
SMI AV Peer Industry Total Nasional
Kelok Sembilan in Payakumbuh city, West Sumatra,

was constructed with Semen Padang products
MAIN REPORT FROM COMPANY MANAGEMENT DISCUSSION
HIGHLIGHTS THE MANAGEMENT PROFILE AND ANALYSIS
BUSINESS OPERATIONAL CORPORATE GOVERNANCE CORPORATE SOCIAL CONSOLIDATED FINANCIAL

REVIEW IMPLEMENTATION REPORT RESPONSIBILITY REPORT STATEMENTS
IMPROVING COMPETITIVE ADVANTAGE AND

PROFITABILITY THROUGH COST TRANSFORMATION
We emphasize on cost transformation strategy to achieve cost leadership in order to
improve competitive advantage, winning the competition, and maintaining profitability.
We implement production cost control program, The results:

controlling and managing distribution expenses, • Decreased growth of COGS-to Sales Ratio.
improving operations efficiency, and reducing • Decreased growth of SGA-to Sales Ratio.
maintainance cost to suppress operating expense per • EBITDA Margin decreased by -1,1% lower than
ton directly or indirectly. the revenue decrease of 3,0% as a result of cost
transformation’s effectiveness.
• Managed to maintain Net Profit as the previous
year, amounted to Rp4,521.6 billion.
COST TO REVENUE RATIO OPERATING COST TO OPERATING COST TO EBITDA

COGS to Sales REVENUE RATIO MARGIN RATIO
(%) (%) (%)
62 ,3 17 ,7
60 ,5 17 ,4
31 ,5
57 ,1 1.8% 16 ,4 0.3% 3.8% 27 ,7
3.4
% 26 ,6
1.0%
1.1%
2014 2015 2016 2014 2015 2016 2014 2015 2016
26,987.0
26,948.0
26,134.3
REVENUES AND
NET PROFIT
(Rp Billion)
5,559.9 Revenues
4,521.5 4,521.6
Net Profit
2014 2015 2016
Annual Report 2016

7
GROWING NEW BUSINESSES
TO CAPTURE ROBUST
GROWTH IN THE FUTURE
As part of our business development strategy, we con-

tinued our investments by strengthening our growth pil-
lars underpinned by other potential business segments
to complement our core cement business.
Following the completion of two new integrated cement

plants, we have prepared another two similar projects
with total combined capacity of five million tons per an-
num.
We are also intensifying the development of non-cement

products. The potentials of products other than cement
are to complement our main businsess, increase our
competitiveness, and contribute to our total revenues.
Results:
Non-cement revenue contribution

was up 77%, to Rp1,404.7 billion.
Non-cement revenue accounted
for 5.4% of the Company’s total
revenues from just 2.9%
651.7 793.0
1,404.7
REVENUE BY
BUSINESS
26,335.4
26,155.0
24,729.6
SEGMENT
Rp billion
2014 2015 2016
Non-cement revenue
Cement revenue


Grinding Plant Cigading, West Java,

has a capacity of 1,500 million tons/year
Annual Report 2016
9
Active Participation
in Improving
Environmental Quality
We are fully committed to implement green production and to
actively partake in environmental preservation efforts. To that
end, we apply Green Management strategy in our production,
develop operational systems backed by green technologies,
and carry out continuous environmental improvement activities
– including implementing Clean Development Mechanism
(CDM) to reduce CO2 emission of our production facilities.
In addition, we are actively involved in activities to restore

post-mining areas around our facilities and in other regions.
Results:
• We hae met all environmental quality standard requirements

• Green PROPER certificates for all of our facilities in Tonasa,
Indarung, and Tuban
Clay mine road of Semen Indonesia Plant in Tuban
Fully Committed
to Improving
Community Welfare
We continue to demonstrate our full
commitment to improving community
welfare through our Community Partnership
and Social Development (PKBL) and other
community development programs. For social
and environmental activities, we disbursed
Rp186.8 billion and 78.9 billion for
Community Partnership programs.
Today, we have worked with 35,321

partners located across all of the Company’s
operational areas.


Coaching and mentoring activities to the Mentoring Partners
Annual Report 2016

13
Table of Contents
01 THEME – About Theme
02 KEBERLANJUTAN TEMA
04 TEMATIC 1 - 5
15 MAIN HIGHLIGHTS
18 Financial Highlights
22 Share Information
REPORT FROM
24 THE MANAGEMENT
26 Report from the Board of
Commissioners
Directors
50 COMPANY PROFILE
52 Company Identity
53 SEMEN INDONESIA
at a Glance
57 Business Activities
63 Vision, Mission
66 Our Journey
68 Organization Structure
70 Area Operasional
72 Board of Commissioners’
Profile
79 Board Of Directors’ Profile
86 Total Employees
87 Shareholders Information
88 Shareholders Structure
89 Subsidiaries
92 Shares Listing Chronology
93 Capital Market Supporting
Institutions
94 Awards & Certifications
98 Event Highlights

MANAGEMENT CORPORATE CORPORATE SOCIAL
102 DISCUSSION AND
274
GOVERNANCE 380 RESPONSIBILITY
ANALYSIS IMPLEMENTATION REPORT
105 Industry Review REPORT 388 Enviornmental
Responsibiilty
106 Corporate Transformation 277 GCG Implementation
111 Business Development
Commitment and 389 Employment and
Objectives Occupational Health and
Strategy Safety Responsibility
115 Business Review 280 Governance Guidelines,
Structure and Mechanisms 390 Social and Community
126 Marketing Responsibility
285 GCG Implementation
128 Project & Engineering Assessment 394 Consumer Responsibility
143 Production & R&D 287 GCG Implementation

RoadMap
157 Performance Review of
Subsidiaries 289 Awards on GCG CHECKLIST OF
173 Performance Review of
Implementation
ANNUAL REPORT
290 Board of Directors
Subsidiaries
301 General Meeting of
CONTENTS
173
176
• Cement
• Non Cement
310
Shareholders
398 BASED ON OJK
183 Other Business
Board of Commissioners
CIRCULAR LETTER NO.
• 321 Audit Committee
Segments 30 YEAR 2016 (“SEOJK
184 325 Strategy, Risk Management
Financial Performance
Review and Investment Committee 30/2016”)
200 Statements of 331 Nomination and
Consolidated Financial Remuneration Committee
Position Highlights 334 Secretary of the Board of CONSOLIDATED
216
218
Cash Flows
336
Commissioners
Corporate Secretary 410 FINANCIAL
Solvency
340 Internal Audit Unit STATEMENTS
221 Investment Policy
347 Company’s Accountant 596 Statement Letter
224 Material Information
231 Changes in Relevant Laws 349 Supervisory and Internal
Control System
and Regulations and its
Impact to the Company’s 352 Internal Audit
Performance
355 Risk Management
233 Changes of Accounting
Standard and its 357 Integrated GRC
Disclosures Implementation
Supervisory & Control
366 Code of Conduct and
BUSINESS Corporate Culture
369
234
Whistleblowing System
OPERATIONAL 372 Corporate Governance
REVIEW Guidelines Implementation
236 Human Resources

Development
256 Information Technology and
Communication
265 Company’s Innovation
Movement
Annual Report 2016

15
MAIN
HIGHLIGHTS
18 Financial Highlights
22 Share Information
Semen Indonesia Plant in Tuban, East Java

has a capacity of 14.700.000 tons/year
FINANCIAL HIGHLIGHTS
December 2016, 2015, 2014
In Million Rupiah
2016 2015 2014 a)
Statements of Consolidated Financial Position
Current Assets 10,373,159 10,538,704 11,648,545
Investments in Associate Entities 93,985 223,952 146,980
Fixed Assets 30,846,750 25,167,683 20,221,067
Intangible Assets 1,355,080 1,134,306 1,103,697
Other non-current assets 1,557,923 1,088,474 1,211,386
Total Assets 44,226,896 38,153,119 34,331,675
Current Liabilities 8,151,673 6,599,190 5,271,930
Non-current liabilities 5,500,831 4,113,131 4,054,815
Total Liabilities 13,652,505 10,712,321 9,326,745
Total Equity 30,574,391 27,440,798 25,004,930
Capital expenditure 5,169,917 5,650,020 2,493,801
Working capital, net 2,221,486 3,939,514 6,376,615
Highlights of Consolidated Profit and Loss Statements

Revenues 26,134,306 26,948,004 26,987,035
Gross Profit 9,855,872 10,645,996 11,578,877
Operating Income 5,227,113 5,945,532 7,142,178
Income for the Year 4,535,037 4,525,441 5,567,660
Total Comprehensie Income for the Year 4,368,344 4,662,164 5,642,318
Net profit attributable to holders of parent entity 4,521,596 4,521,491 5,559,902
Net profit attributable to non-controlling interests 13,441 3,950 7,758
Total 4,535,037 4,525,441 5,567,660
Comprehensive income attributable to holders of parent entity 4,395,314 4,599,417 5,631,171
Comprehensive income attributable to non-controlling interests (26,970) 62,747 11,147
Total 4,368,344 4,662,164 5,642,318
EBITDA b) 6,962,934 7,473,542 8,491,877
Market Capitalization 54,421,696 67,619,328 96,090,624
Weighted average of outstanding shares 5,931,520 5,931,520 5,931,520
Earnings per share 762 762 937
Financial Ratios
Gross profit margin (%) 37.7 39.5 42.9
Profit margin (%) 20.0 22.1 26.5
Net profit margin (%) 17.3 16.8 20.6
EBITDA Margin (%) 26.6 27.7 31.5
EBITDA to interest expense (x) 19.2 20.2 22.2
EBITDA to interest expense & loan principal payments (x) 3.0 4.6 3.4
Return on Equity (%) c) 15.6 17.1 23.1
Return on Asset (%) 10.2 11.9 16.2
Current ratio (%) 127.3 159.7 221.0
Debt to equity ratio (%) d) 21.6 15.1 16.3
Debt to asset ratio (%) e
14.2 10.5 11.4
Debt to capital ratio (%) 17.7 13.2 14.0
a) Restated with respect to new accounting standard implementation
b) Re-calculated with operating income (other than revenues and other operating expenses) plus depletion, depreciation, and amortization
c) Equity attributable to holders of parent entity
d) Total interest bearing liabilities and equity attributable to holders of parent entity


OPERATIONAL HIGHLIGHTS
Industry Unit 2016 2015 2014
Cement
Total production capacity Thousand Tons 31,800 31,800 31,800
Domestic Production Thousand Tons 25,884 26,504 26,435
Regional Production Thousand Tons 2,388 1,979 1,825
Total Production Thousand Tons 28,272 28,483 28,261
Domestic Sales Thousand Tons 25,811 26,069 26,163
Regional Sales Thousand Tons 3,300 2,640 2,363
Total Sales Thousand Tons 29,111 28,709 28,526
Packaging Industry
Pasted Woven Production Sheet 303,786 451,071 320,225
Sewn Woven Production Sheet 25,821,680 19,834,152 33,312,965
Pasted Kraft Production Sheet 236,743,090 233,919,088 229,542,343
Total Packaging Production Sheet 262,868,556 254,204,311 263,175,533
Industrial Real Estate
Sales Volume
Sales of Industrial Land M 2
- - 40,429
Sales of Shop Building Unit - 1 1
Lease Volume
Land M2 43,969 43,678 46,644
BPSP Unit 15 15 15
Warehouse Unit 72 63 82
Office Unit 1 1 1
Shop building Unit 14 14 14
Residential Unit 2 2 3
Quarrying
Mining Services
Limestone Ton 13,309,918 13,534,452 12,928,832
Clay Ton 3,563,661 3,467,709 3,542,122
Surface Miner Ton 1,500,758 1,320,135 1,267,650
Subtotal Ton 18,374,337 18,322,296 17,738,604
Other Mining Services
In BCM BCM 85,101 898,405 630,258
In Meter Meter 180,937 206,085 239,607
In Ton Ton 8,775,740 6,864,183 5,991,442
In Hour Ton 5,736 71,964 83,087
Subtotal Ton 9,047,514 8,040,637 6,944,394
Total Mining Ton 27,150,077 25,186,479 23,730,046
Total Mining BCM 85,101 898,405 630,258
Total Mining Meter 180,937 206,085 239,607
Total Mining Hour 5,736 71,964 83,087
Annual Report 2016

19
PRODUCTION CAPACITY UTILIZATION LEVEL
(DESIGN CAPACITY) CAPACITY 2016
(in million tons/annum) Total production (in %)
31.8 31.8 31.8 capacity 2016 88.9

89,6
88.9
31.8 million tons/

annum
Largest in
Indonesia
2014 2015 2016 2014 2015 2016
PRODUCTION LEVEL SALES VOLUME

(in million tons) (in million tons) /annum
28.3 28.5 28.3 Sales 28.5 28.7 29.1
Volume
29.1 million
tons
2014 2015 2016 2014 2015 2016
REVENUES
(in billion Rp)
26,987 26,948 26,134
2014 2015 2016


EBITDA NET PROFIT

(ATTRIBUTABLE TO HOLDERS OF
(in billion Rp) PARENT ENTITY)
8,492 (in billion Rp)
7,474
6,963 5,560
4,521 4,522
2014 2015 2016

2014 2015 2016
RETURN ON ASSETS / RETURN ON EQUITY/

ROA ROE
(in %) (in %)
16.2 23.1
17.1 15.6
11.9 10.2
2014 2015 2016 2014 2015 2016
EBITDA MARGIN RATIO

(%)
31.5
27.7
26.6
2014 2015 2016
Annual Report 2016

21
SHARE INFORMATION
SHAREHOLDERS
List of Shareholders – December 2016

No Shareholders Total Shares %
1 Indonesian Government 3,025,406,000 51.01%
3 Foreign Institutions 2,238,369,422 37.74%
4 Foreign Individual 1,795,400 0.03%
5 Domestic Individual 116,570,719 1.97%
6 Domestic Institutions 549,378,459 9.26%
Total 5,931,520,000 100.00%
1.97%
0.03%
9.26%
Indonesian Government
Foreign Institutions
Foreign Individual
37.74%
Domestic Individual
Domestic Institutions
51.01%
List Shareholders of non-Government – 2016

No Shareholders Total Shares %
1 Foreign Institutions 2,238,369,422 77.02%
2 Foreign Individual 1,795,400 0.06%
3 Domestic Individual 116,570,719 4.01%
4 Domestic Institutions 549,378,459 18.90%
Total 2,906,114,000 100.00%
18.90%
4.01 % Foreign Institutions
0.06% Foreign Individual

Domestic Individual
Domestic Institutions
77.02%


Quarterly Share Prices

2016
Market Cap.
Period Opening Price Highest Lowest Closing Price Total Shares Volume
(billion Rp)
1st Quarter 11.400 11.450 10.050 10.175 5.931.520.000 400.668.900

60.353
2nd Quarter 10.175 10.775 8.700 9.350 5.931.520.000 370.424.300

55.460
3rd Quarter 9.350 11.600 8.975 10.100 5.931.520.000 906.019.800

59.908
4th Quarter 10.100 10.675 8.050 9.175 5.931.520.000 387.621.800

54.422
2015
Closing Market Cap.
Period Opening Price Highest Lowest Total Shares Volume
Price (billion Rp)
1st Quarter 16,200 16,225 12,875 13,650 5,931,520,000 543,342,300 80.965

2 Quarter
nd
13,650 13,825 12,000 12,000 5,931,520,000 275,193,000 71.178
3 Quarter
rd
12,000 12,350 7,200 9,050 5,931,520,000 370,611,800 53.680
4 Quarter
th
9,200 11,500 9,100 11,400 5,931,520,000 344,603,600 67.619
SMGR (share price and trading volume) Vs IHSG (Rebased) SMGR (share price and trading volume) Vs IHSG (Rebased)
January - December 2016 January - December 2015
SMGR (LHS) IHSG (LHS) Volume (per ‘000) - (RHS) SMGR (LHS) IHSG (LHS) Volume (per ‘000) - (RHS)
Price (Rp/Share) Price (Rp/Share)

Key market data IDR USD Key market data IDR USD
22,000 80,000 22,000 50,000
Awal: Akhir: Current share price 9,175 0.00 75,000 Awal: Akhir: Current share price 11,400 0.83
20,000 SMGR : Rp. 11,400 SMGR : Rp. 9,175 20,000 SMGR : Rp. 16,200 SMGR : Rp. 11,400 45,000
IHSG : 4,593.00 IHSG : 5,296.00 70,000 IHSG : 5,226.94 IHSG : 4,593.00
52 week high 9,175 0.00 52 week high 10,225 1.10
18,000 65,000 18,000 40,000
52 week low 9,175 0.00 60,000 52 week low 7,200 0.52
16,000 16,000
market Cap, 54,421bn 4,050mn 55,000 market Cap. 67,619bn 4,901mn
35,000
14,000 50,000 14,000 -12.1%
15.3% 30,000
12,000 45,000 12,000 -29.6%
40,000 25,000
10,000 -19.5% 10,000
35,000
8,000 30,000 8,000 20,000
25,000
6,000 6,000 15,000
20,000
4,000 15,000 4,000 10,000
10,000
2,000 2,000 5,000
5,000
0 0 0
0
ec
ay
ct
/1
ec
ct
/2
ec
De
De
2/
3/
4/
6/
7/
9/
/3
2/
3/
4/
5/
6/
7/
9/
Au
Au
O
O
11
11
M
-D
-D
-D
12
3-
1-
1-
1-
3-
1-
2/
30
30
30
Jakarta Composite Index ia rebased to Semen Indonesia share price Jakarta Composite Index ia rebased to Semen Indonesia share price
Note : US$ 1 = IDR 13,436 as per Dec 31, 2016 *middle rate BI Note : US$ 1 = IDR 13,795 as per Dec 31, 2016 *middle rate BI
CORPORATE ACTIONS - SHARES

In 2016, the Company did no exercise corporate action on shares, such as: stock split, reverse stock, shares dividend,
shares bonus, or change of shares nominal value
SUSPENSION AND/OR DELISTING

The stocks of SMGR were not suspended and/or delisted during reporting year.
Annual Report 2016

23
REPORT FROM
THE MANAGEMENT
Commissioners
Directors
The Company promptly took measures in anticipating and
adapting to a business environment that is increasingly
challenging by changing its mindset from being product-
oriented to customer-oriented. The Company also began its
transformation as a cement corporation with a “3+1” Strategy,
a group of strategic tools to realizing a new, flexible business
model responsive to changes in the business landscape.
Cost Transformation is the first focus of this

initial phase and the main tool to win the
competition and maintain profitability.”
Semen Tonasa Plant, Pangkep, South Selawesi,

has a capacity of 7.400.000 tons/year
REPORT FROM
THE PRESIDENT DIRECTOR
The Company
promptly took
measures in
anticipating
and adapting
to a business
environment that
is increasingly
challenging by
changing its
mindset from being
product-oriented to
customer-oriented.
The Company
also began its
transformation as a
cement corporation
with a “3+1”
Strategy, a group
of strategic tools
to realizing a new,
flexible business
model responsive
to changes in the
business landscape.
RIZKAN CHANDRA
President Director


REPORT FROM THE PRESIDENT DIRECTOR
Cost Transformation is the first focus of this

initial phase and the main tool to win the
competition and maintain profitability.”
Dear Valued Shareholders, Economic Overview

of 2016
I would like to first extend our gratitude Indonesia’s economy in 2016 grew
to God Almighty for the blessings by 5.02%, higher than the 4.79%
that carried the Company through a in the previous year. This growth
challenging 2016. On behalf of the rate affirmed a turning point after
Board of Directors, I am pleased to the economy slowed five years
say that despite an arduous year ago, when Indonesia’s growth level
Semen Indonesia was able to maintain decelerated from 6.18% in 2010
leadership in the domestic market and (BPS) to below 5% in 2015.
performed above industry average,
both financially and operationally. Household consumption, which
Last year was particularly trying, as rose by 5.01% and contributed
the industry reached an all-time low in 56.5% to the total gross domestic
the past 15 years, making it the most product (GDP), was the main driver
difficult period for all cement players, of growth, followed by consumption
including PT Semen Indonesia of non-profit organizations and
(Persero) Tbk as Indonesia’s and investments that increased by
South East Asia’s leading cement 6.62% and 4.48%, respectively,
company. and contributed 1.16% and
32.57%. Higher commodity
prices (especially in Sumatra and
Kalimantan), job growth (in Java)
and the government’s successful
control of inflation, which was
stabilized at about 3.02%, were
some of the key factors that drove
household consumption.
Annual Report 2016

27
Indonesia’s economy still has more to offer: foreign exchange reserves stood at
US$116.4 billion, up from US$105.9 billion, the trade balance deficit dropped
and the currency’s exchange rate strengthened by 2.6% to Rp13,436/USD
from Rp13,795/USD at the end of 2015. Bank Indonesia’s (BI) benchmark
interest rate was adjusted to a Seven-day Repo Rate and stabilized at 4.75%,
decreased from about 7.5%. A tax amnesty program that was part of the
government’s efforts to improve the capacity of the state budget also showed
positive results. More than Rp4,000 trillion was declared and Rp106 trillion had
been redeemed as of December 2016. The tax amnesty will be followed by a
Tax Reform to increase Indonesia’s tax ratio, allowing the government to have
better fiscal capability and to stimulate national economic growth through
public spending.
Aside from the tax amnesty, the government also released deregulation
Economic packages to improve the business environment. As a result, Indonesia’s ease

of investment rank rose to 91 (from 115 in 2015) and its consumer confidence
developments index improved. Fitch Ratings and Moddy’s Investors Service (Moody’s), two
prompted well-regarded international rating agencies, acknowledged this development
international rating and revised their Sovereign Credit Rating Outlook for Indonesia from “stable”
agencies, Fitch to “positive” and declared an “investment grade” status for Indonesia’s credit
Ratings and Moody’s rating.
Investors Service In support of the government’s economic initiatives, BI also loosened its
(Moody’s), to improve macroprudential policies and undertook a number of key actions. Other than
the Outlook of lowering its benchmark interest rate, BI also cut its deposit interest rate,
Indonesia’s Sovereign improved the Statutory Reserve regulation, improved LDR computation and
Credit Rating from revised the LTV requirement to boost consumption of durable goods and
investment goods, like electronic products, vehicles and houses.
stable to positive and
affirmed Indonesia’s Overall, all initiatives showed encouraging results with the exception of durable
credit rating status as and investment goods, which affected the property sector – putting more
investment grade.” pressure on the cement industry throughout 2016.


Industry Overview The three pillars are the Construction Material

Demand for cement started to decrease in 2014, Business, Adjacent Business and Regional Expansion
coupled with a rise of oversupply. These conditions plus Cost Transformation. The last covers Supply
became worse in 2016; limited economic growth and Chain Optimization, Operational Efficiency and
moderate purchasing power lessened demand from Corporate Service Cost Transformation supported by
retail consumers. a strong System and Structure, People and Culture
to achieve Commercial Excellence (Active Channel
The domestic cement industry had to grapple with Management, Customer Relations Management and
this situation, especially in 2016. A number of things Brand Management).
indicated this. Among others were a growth of demand
by only 0.6%, production overcapacity, supply of Cost transformation implementation was the focus
imported products and a drop in cement prices or up in 2016. The goal was to win the competition while
to 6.5% on average. maintaining business profitability. This initiative was
combined with the Company’s efforts to consolidate
Additionally, another trend started to pick up, namely the domestic market as part of our change of mindset
a pattern of product demand that shifted from towards being a customer-oriented company. In terms
purchasing in packs to purchasing in bulk, which lead of marketing, we introduced sales area regionalization.
to lower margins. By doing so, we conveyed a message that product
marketing and sales will now cover a regional scope.
In 2017 and subsequently in 2018, overcapacity and
oversupply are projected to continue, as a number of At the same time, we also continued developing other
plants will commence commercial operations. In the business pillars. We directed all efforts to make sure the
meantime, demand will remain limited and is predicted Company is well prepared in 2017 and that all initiatives
to stay that way for the next several years. can be executed by that time in order to ensure robust
and sustainable business growth.
Strategies and Strategic Policies
Overcoming the challenging business environment, the Performance in 2016
Company has developed and formally endorsed short- Our efforts to consolidate the domestic market were
and long-term corporate strategies encapsulated in met with strong support and commitment from all
the “3+1” initiative. The Company has also defined elements in the Company. With such a solid dedication,
a corporate strategy of CHT (Customer-Holding- the Company managed to overcome the competition.
Transformation) to change the organization’s mindset Domestic sales volumes stood at 25.8 million tons, a
from being a production-oriented to a customer- contraction by only 1% from 26.1 million tons in 2015.
oriented company backed by the “3+1” strategy pillars. Delivering a strong performance, the Company was
able to maintain its leadership in the domestic market
with a 41.7% market share, a mere 0.2% correction
from the 41.9% market share in the previous year.
Annual Report 2016

29
Not only did that result demonstrate our superiority in With the decrease in average selling prices and the
the Indonesian market, it also confirmed our operational increase in sales volumes, the Company posted
capability. Our 41.7% market share was acquired with Rp26.13 trillion in consolidated revenues, decreased
only a 32% domestic production capacity and this by 3% from Rp26.95 trillion in 2015.
shows that our utilization capacity was higher than all
industry players in general. It also provides evidence of Cost Control
the success of one of our operational strategy pillars, To boost competitiveness and control costs, in 2016
Capacity Management. Our utilization rate stood at the Company introduced Cost Transformation as a
88%, above the industry average of 65%. strategic initiative, which emphasized supply chain
optimization, operational efficiency and corporate cost
The total production volume of our domestic facilities transformation. We implemented these strategies while
in 2016 was 25.9 million tons, less by 2.3% than the starting to develop new business units to diversify our
26.5 million tons in 2015. Meanwhile, the production revenue sources. Cost transformation targets two main
of regional facilities (TLCC) totaled 2.4 million tons, cost components that significantly affect a company’s
up 20.7% from 2 million tons. Overall, the Company competitiveness in the cement business, namely
produced 28.3 million tons, decreased 0.7% from the production costs (especially for fuel and electricity) and
28.5 million tons in 2015. distribution costs.
Our other initiative, marketing regionalization, delivered We also applied a number of innovative ways and
encouraging results. Our export volumes increased by approaches to our production patterns to lower energy
8.9% to 524,864 tons; combined with a TLCC sales costs and, thereby, our cost of revenues. Among others,
volume of 2.6 million tons, our total sales volumes grew we attempted to decrease our consumption figure/coal
by 1.4% to 29.1 million tons from 28.7 million tons in consumption and fuel consumption indexes. In terms
2015. of electricity use, other than optimizing power use in
factories, the Company also optimized its utilization of
The change of our marketing paradigm to being a a power plant in Tonasa and a WHRPG in Padang. As
customer-oriented company, followed by marketing a result, we managed to cut our energy expenses by
communications programs and a 4P approach, allowed 6.7% from Rp5,964 billion to Rp5,563 billion.
us to maintain our branding value. As the result, our
selling price performed above the industry average. To address distribution costs, we implemented various
Although the domestic selling price contracted by 2.9% initiatives around supply chain management, including
to Rp952,000 per ton, the industry-wide selling price evaluating our shipping contracts, engaging in freight
on average slipped by 6.5%. In the regional market, cooperation, optimizing and utilizing vessels and
we corrected our average selling price by 10.4% to optimizing land distribution modalities. Furthermore,
Rp471,000 per ton. we also started to develop a logistics business unit by
acquiring PT Varia Susaha and its subsidiaries (VU). As
a result, we were able to lower our distribution expenses
by 23.4% to Rp1,813.3 billion from Rp2,368.7 billion in
2015.


The Company also exerted better control over other Gross Profits and Operating Income
components in our cost of revenues that included Through our various efforts to better control the
packaging costs, maintenance and other fabrication Company’s costs, we managed to post Rp9,855.9
costs. In total, our cost of revenues decreased by billion in gross profits in 2016. It was a decrease by
0.1% to Rp16,278 billion from Rp16,302 billion in 2015. 7.4% from Rp10,646.0 billion in 2015, yet the decline
The COGS to sales ratio in 2016 stood at 62.3%, an was lower than the 8.1% drop in the previous year.
increase of only 1.8% from 60.5% in 2015. The increase The gross profit margin was 37.7%, decreased from
in the ratio was also lower than the 3.4% increase of 39.5% in 2015; similarly, the 1.8% decrease was an
the same ratio in 2015. improvement from the 3.4% decline of the previous
year.
The cost transformation strategies we applied to
manage operating costs included applying a scale of In terms of operating income, we posted Rp5,227.1
priorities on supporting activities, optimizing the use billion in 2016, 12.1% less than the Rp5,945.5 billion
of videoconferencing facilities and optimizing in-house in 2015. Our operating income margin was 20%,
training. The part of our operating cost component decreased by 2.1% from the 22.1% in 2015, which
that we had as mandatory to maintain was manpower. was an improvement over the 4.4% decrease in the
However, manpower efficiency was achieved through previous year.
a zero growth policy and the retirement of a number of
our employees. Net Income and Earnings per Share
In 2016, the Company recorded net other expenses
The unloading of freight and cargo are two other amounted to Rp179.7 billion. Profits before tax was
significant cost components that affect the Company’s therefore Rp5,084.6 billion, decreased by 13.1% from
total sales volumes. Furthermore, the Company Rp5,851.0 billion in 2015. Meanwhile, tax expenses
managed to lower promotional costs by 17.9% to in 2016 amounted to Rp550 billion, a drop by 58.5%
Rp265.5 billion from the Rp323.4 billion in the previous from Rp1,325 billion in 2015 as a result of a fixed asset
year. revaluation that the Company carried out with due
consideration of fiscal policies in 2016.
Overall, the Company successfully managed its
operating costs, lowering by 0.1% to Rp4,628.8 billion The Company delivered Rp4,521.6 billion in earnings
from Rp4,700.5 billion in the previous year. The SGA to attributable to the parent entity holders. This amount
Sales ratio in 2016 increased slightly by 0.3% to 17.7% was relatively stable compared to the Rp4,521.5 billion
from 17.4% in the previous year. in 2015. Earnings per share remained at Rp762 per
share.
Annual Report 2016

31
EBITDA and EBITDA Margin To that end, the Company has adopted a Supply chain
The Company’s EBITDA in 2016 was Rp6,962.9 management strategy called ‘Move Closer to the
billion, decreased by 6.8% from Rp7,473.5 billion, Customer’, which is part of the Cost Transformation
while the EBITDA margin was 26.6%, 1.1% less than implementation, the Company’s main avenue to boost
the 27.7% in 2015. As evidence of the effectiveness competitiveness and maintain business profitability. In
of the Company’s Cost Transformation initiative, the the execution of this strategy, the Company strives to
decrease of the EBITDA margin in 2016 demonstrated take greater steps to develop its capability, namely by
an improvement from 2015, during which the margin consolidating its competence in the distribution of raw
decreased by 3.7%, and from a revenue decrease of materials and finished products, as well as supporting
3%. the facilities of a new Logistics business unit. This unit
handles all facilities and activities related to logistics
The following table provides highlights of our under Semen Indonesia’s management, including
operational results. cement jetties, a shipping fleet, a land transportation
Description (billion Rp) 2016 Target 2016 Realization (%)

Cement Production Volume (Thousand Tons) 28,272 30,317 93.3
Sales Volume (Thousand Tons) 29,111 30,186 96.4
Revenues 26,134 27,941 93.5
EBITDA 6,963 7,318 95.2
Net Income 4,522 4,368 103.5
Responding to Our Challenges fleet, buffer warehouses and packing plants.

One of the main challenges in the cement business
is the shipment and distribution of the product to Preparatory steps were carefully taken in 2016. Semen
customers. The advancement of manufacturing Indonesia became the majority owner of PT Varia
technology that has revamped the efficiency of the Usaha and its subsidiaries, acquiring 73.65% of the
production process leads to a demand for more total shares of VU. Through VU, the Company envisions
efficient distribution patterns and methods to ensure developing a logistics business, optimizing its land and
that product competitiveness can be maintained until sea freight carriers for cement, managing coal cargo
it reaches its market. vessels and overseeing additional bulk carriers. These
undertakings will begin in 2017 and are expected to
result in lower distribution costs for the Company, as
well as generate new revenue sources.


Preparing a Growth Foundation Additionally, we also intensively developed our other
for Strong, Sustainable businesses that are still relevant to the cement industry
Performance in order to secure the market for our core products

in the future. As part of this endeavor, in 2016 the
Optimizing the strategic competitiveness of having
Company, through its directly controlled subsidiary PT
three main production facilities, the Company last
Semen Indonesia Beton (SIB), increased its ownership
year started to construct an additional facility in Aceh
in PT Varia Usaha Beton (VUB). The Company is
through PT Semen Indonesia Aceh and in Kupang
expanding SIB to become a leading concrete company
through PT Semen Kupang Indonesia. Combined, the
in Indonesia in both ready-mix and pre-cast concrete
additional facilities will create an additional capacity
segments. This corporate action was particularly aimed
of 5 million tons. The two integrated cement factories
at strengthening SIB in the ready-mix business.
will complement two new facilities in Rembang and
Padang, for a total capacity of 6 million tons, that are
The Company’s engagement in the downstream side
slated to commence commercial operations in 2017. To
of the cement industry is expected to increase non-
support the distribution of the output of these factories,
cement revenue contributions and proportions. In
the Company has also built additional packing plants in
2016, non-cement segments contributed Rp1,404.7
North Maluku and Bengkulu.
billion, a 77.1% increase from Rp793 billion in 2015.
The segment accounted for 5.4% of the total revenues,
In terms of product development, the Company is
up from just 2.9% in the year earlier. Going forward, the
currently completing the construction of a grinding
Company expects to continue increasing non-cement
plant in Cigading for Ground-Granulated Blast-
contributions, as business development plans also
Furnace Slag under PT Krakatau Semen Indonesia
continue to be realized.
(KSI), which is expected to produce cement slag that
is more competitive. The Company has also finished
Moreover, the Company also established a trading
upgrading existing facilities to improve production and
company, PT Semen Indonesia International (SII),
performance efficiency.
in 2016 to support and ensure product marketing
expansion. In the future, SII will also oversee the
To support Cost Transformation implementation and to
Company’s product marketing, balancing regional and
boost its environmental performance, the Company is
domestic markets. As part of a marketing mindset shift
completing a Waste Heat Recovery Power Generation
and a “direct to customer” approach, the Company
(WHRPG) plant in Tuban. The WHRPG plant will
has established a Corporate Marketing unit dedicated
produce about 30.6 MW of electricity and reduce CO2
to handling bulk and wholesale orders from real
gas emissions by 122.358 tons/year.
estate companies, contractors and other corporate
customers.
All of these business development projects are carried
out independently to ensure that they are cost efficient.
Semen Indonesia believes that its actions in 2016 will
The Company has also started to pave the way to
make the Company ready to welcome 2017 and its
capitalize its design competence to offer engineering
challenges, as well as to capture growth opportunities.
and construction services in the future.
Annual Report 2016

33
Strengthening the Competence Meanwhile, Bank Indonesia will be improving more
of Human Capital macroprudential policies, encouraging the increase of

banking liquidity levels through its policy on interest
The business model that is currently being developed
rates, implementation of an average Statutory Reserve
requires new attitudes and behaviors. Realizing this,
and an adjustment of the LDR computation that will
the Company has started to also change the mindset
allow banks to have more flexibility to manage their
of its human capital by introducing fundamental
liquidity.
changes in the HC management system, including in
providing training materials, conducting performance
With the 5.1% growth projection and certainty in terms
assessments and offering remuneration packages. The
of basic publicly and privately funded infrastructure
Company has intensified its efforts to disseminate the
development, the cement industry is looking at a
values of Synergy, Perseverance and Integrity (SMI) to
promising year ahead. The Company is projecting a
complement the CHAMPS culture that we introduced
±5% growth of domestic market demand, up from a
several years ago.
contracted growth of -0.6% in 2016. Nevertheless,
some challenges can already be predicted, namely
In 2016, the Company also started to review its Human
overcapacity from the operations of new plants in
Capital Master Plan to align it with the new business
2017 that will lead to oversupply, despite growth in
model. This includes changing HC’s role from personnel
demand. Growth trends driven by the purchase of
matters to being the agent that shapes values,
bulk cement will also continue, including purchases of
leadership and culture. We aim to create world-class
ready-mix and pre-cast concrete for construction and
Human Capital capable of being strategic enablers,
infrastructure projects.
which enabling the Company to grow as a world-class
cement company that delivers superior performance.
Anticipating both growth opportunities and challenges
2017 Outlook and Strategies in 2017, the Company will intensify its various strategic
programs to fully implement the “3+1” strategy started in
In general, economists – individuals and institutions
mid-2016. The execution of the business plans derived
alike – estimate that Indonesia will grow stronger in the
from the Adjacent Business and Regional Expansion
coming year at ±5.1% from 5.02% in 2016. Domestic
pillars, designed to increase the competitiveness
consumption and investments will remain the main
of the cement business, will continue. Additionally,
growth contributors.
the Company will also enhance its competence and
capabilities by developing the Construction Material
The government and Bank Indonesia have prepared
business to serve the construction and infrastructure
a number of policies for 2017 aimed at accelerating
segments and provide customers with the best options.
economic growth. The government plans to improve the
Cost Transformation will be consistently strengthened,
investment climate through its consistent and closely
followed by system refinement, organizational structure
monitored deregulation packages and bureaucracy
improvement and, more importantly, the development
reform initiatives. The tax amnesty and the tax and land
of reliable Human Capital.
reform programs will be continued to further expand
APBN’s capacity to stimulate economic activities.


The Company believes that all preparations that took

Changes in the Structure of the
place in 2016 have provided a solid foundation for
Board of Directors
sustainable growth. The initiatives, which started to
In the 2016 reporting period, a number of changes were
bring significant results early in their implementation,
introduced to the structure of the Board of Directors.
will provide promising added value for shareholders
During the Annual General Meeting of Shareholders
and stakeholders in the years to come.
(AGMS) on 13 May 2016, the Company respectfully
dismissed Mr. Suparni and Mr. Amat Pria Darma from
Enhancing the Quality of their respective positions as President Director and
Corporate Governance Best Director. We thanked them for their contributions to the
Practices Company.
While implementing our work programs, we also
continuously follow updates on rules and policies as
The AGMS also appointed Mr. Budi Siswoyo and Mr.
part of our commitment to good corporate governance
Darmawan Junaidi as Directors. The Board of Directors
(GCG).
welcomed and wished them productive years ahead.
This commitment is reflected in our regular assessment

On the same occasion, the AGMS also approved
of the quality of our GCG implementation. We are also
the promotion granted to me, Rizkan Chandra, from
similarly committed to comprehensively providing all
Director to President Director and mandated me
the necessary soft and hard infrastructure for GCG.
to serve the remaining term of office of the previous
The Company has concluded the process of reviewing
president director.
various procedures and rules following a change in the
corporate structure.
With these changes, the Company’s Board of Directors
currently consists of:
GCG improvement programs in 2016 included:
President Director : Rizkan Chandra
• Board Manual Update
Director : Darmawan Junaidi
• GCG Manual review and re-writing
Director : Ahyanizzaman
• Whistleblowing System Manual Update
Director : Gatot Kustyadji
• Compliance Manual Update
Director : Johan Samudra
• Graft Control Manual development
Director : Budi Siswoyo
• Dissemination of company culture, especially the
Director : Aunur Rosyidi
values of Synergy, Perseverance and Integrity
(SMI) that complement the CHAMPS culture
Annual Report 2016

35
In the view of the controlling shareholders, the In addition, to implement the Company’s CSR concept,
changes were necessary in order to respond to a more SI Peduli, the Company has realized a number
challenging business environment ahead and to the of biodiversity management programs, including
increasingly complex competition resulting from the constructing water reservoirs in post-mining areas,
overcapacity that started in 2014, the competition in developing a Mangrove Center in Sukorejo, conserving
2016 and the changes in cement consumption patterns endangered flora and fauna species, the reforestation
in urban areas. of protected forest and developing village forests.
Preserving the Planet for Future Growing Communities,

Generations Advancing Shared Prosperity
The Company remains dedicated to making sure that The Company has four pillars of CSR that we
its business growth takes into account environmental consistently implement, namely:
sustainability. For the Company, successful • “SI Cerdas”, our pillar that focuses on enhancing
environmental management – indicated among competence through educational programs;
other things by the quality of the environment – is an • “SI Prima”, our pillar of service excellence;
important pillar that underpins sustainable growth, • “SI Lestari”, our pillar of innovation, green product
welfare, the quality of life of the generations today development, eco-friendly production and other
and tomorrow. To that end, the Company applies environmental programs;
Environmental Management System ISO 14001:2004 • “SI Peduli”, the Company’s pillar of social-
and SNI 19–14001:2005 to ensure that it consistently economic programs for community welfare.
carries out green operations and that its production
facilities meet environmental quality standards. The four CSR pillars are also our channels to improve our
reputation and maintain the Company’s sustainability.
Semen Indonesia is also fully committed to conserving
the environment by joining the efforts to reduce CO2 Under the SI Peduli pillar, the Company established
emissions. The Clean Development Mechanism (CDM) capacity and welfare development programs through
is one of our efforts to achieve that goal, in which we three groups of activities: community service,
conserve energy by using biomass and developing community relations and community empowerment.
WHRPG units. We also use AFR by utilizing certain Our goal is to develop quality social environments
industrial wastes as precursors in slag production. For and promote better livelihoods as indicated by an
its environmental efforts to reduce CO2 emission, the increase in the Human Development Index (HDI) and
Company has obtained a Carbon Emission Reduction the achievement of Sustainable Development Goals
(CER) certificate, an acknowledgment from the global (SDGs).
community of Semen Indonesia’s environmental
commitment.


To that end, the Company supports Community Furthermore, we would like to thank and deeply
Partnership and Social Development initiatives and appreciate our shareholders for their trust and support,
consistently provides CSR assistance. In 2016, the our Board of Commissioners for their guidance and
Company disbursed Rp78.9 billion to Community advice and our business partners for their cooperation.
Partnership programs that reached 1,517 partners.
Meanwhile, the Company disbursed a total of Rp57.2 Last but not least, we sincerely thank all of our employees
billion through eight events for social development for their hard work, their synergy, demonstrated
programs and Rp186.8 billion for environmental perseverance and integrity throughout their work. Their
programs and social development activities. contributions were vital to the Company’s success
overcoming difficulties in 2016, marked by our stronger
We believe that our efforts will contribute to HDI performance and growth foundation for the future. We
improvement and the attainment of the global SDGs. believe that the work we have achieved so far will take
the Company farther to realize our potential and deliver
Awards the best sustainable performance in the future.
For its various operational and financial
accomplishments, in 2016 the Company received 19 Gresik, 8 March 2017
awards from different parties in a variety of categories.
Some highlights include:
• Top Brand Award 2016 from the Frontier Consulting
Group;
• Top Best 50 Companies Forbes 2016 from Forbes
Indonesia;
• Rank seventh Best Managed Companies from
Finance Asia;
• “The Most Trusted Companies 2016” in GCG
Implementation Quality, Corporate Governance Rizkan Chandra
Perception Index (CGPI). President Director
Appreciation
On behalf of the Board of Directors, we wish to
firstly extend our gratitude to our customers for their
continued trust. Their loyalty to our products has helped
us get through tough years, including the particularly
challenging 2016, and deliver encouraging results
above industry average. More than that, we have been
able to prepare a more solid foundation that will allow
Semen Indonesia to take advantage of future growth
opportunities with confidence.
Annual Report 2016

37
BOARD OF DIRECTORS
7 4 2 1
1. RIZKAN CHANDRA
President Director
2. AHYANIZZAMAN
HR & Legal Director
3. GATOT KUSTYADJI
Engineering & Project Director
4. JOHAN SAMUDRA
Production & R&D Director
5. AUNUR ROSYIDI
Marketing & Supply Chain
Director
6. DARMAWAN JUNAIDI
Finance Director
7. BUDI SISWOYO
Strategy Business &
Enterprise Development
Director
6 3 5
REPORT FROM THE BOARD
OF COMMISSIONERS
Business conditions
in 2016 were
increasingly complex.
National cement
demand weakened,
while selling
prices decreased
and competition
heightened because
of an excess in
supply. Learning from
past experiences, the
Company was able
to handle the tough
year and posted a
number of crucial
improvements that
enabled Semen
Indonesia to grow
sustainably by
overcoming all
challenges.
MAHENDRA SIREGAR
President Commissioner


REPORT FROM THE BOARD OF COMMISSIONERS
Semen Indonesia refined its overall supply chain, diversified

its revenue sources and transformed its cost structure to
deliver a better performance and be more ready to support
national development.”
Assalaamu’alaikum Wr. Wb., Nevertheless, investments and market demands did

not catch up with the economic progression – including
Distinguished Shareholders, in terms of housing and house renovation demands. As
the result, the property sector and retail demands for
Please allow us to first of all convey our appreciation cement slowed. In the meantime, the commencement
and gratitude to God Almighty. His grace has allowed of infrastructure projects pushed the need for the
PT Semen Indonesia (Persero) Tbk to get through bulk cement segment. However, in general, growth
a challenging year in 2016 and close the period with of demand slipped, as the retail products were
satisfactory results. predominantly in the cement industry. Indonesian
Cement Association (AISI) data shows that demand in
Overview of Economy and the domestic market in 2016 weakened by 0.6%.
National Cement Industry in
2016 Industrial needs, infrastructure projects and large
The global economy in 2016 grew by mere 3.1%. property developments made bulk cement account
This was mainly caused by economic slowdowns for 24.3% of total national sales, up from 23.4%, while
in European countries, Japan, China and a number retail cement sales dropped to 75.7% from 76.7%.
of other countries. For Indonesia, the impact of the
global economy was direct and visible – Indonesia’s At the same time, the cement supply coming from
GDP grew moderately at 5.02%, although this was newly constructed plants continued to rise. According
an improvement from 4.79% in 2015. Meanwhile, to ASI data, a total of 88.5 million tons of cement
inflation stood at 3.02%, the average exchange rate was produced nation-wide as of the end of 2016, but
was Rp13,436/USD1 and foreign exchange rose to consumption amounted to only 61.6 million tons –
USD111.47 billion. Indonesia’s resiliency and stability essentially resulting in an oversupply of 26.9 million
amid the dimmer global conditions inspired the tons. With more new plants in the future, surplus
confidence of many market players. Fitch Ratings, production will continue.
acknowledging Indonesia’s improvements, raised the
country’s credit rating to positive BBB- (Investment
Grade) and the Consumer Confidence Index rose to
116 from 103.5.
Annual Report 2016

41
Not only were national players contributing to the sales volumes of 25.8 million tons, only a 1% difference
excess supply in Indonesia, but so too were foreign from the 26.1 million tons in the previous year. The
companies, especially from China, that were entering decrease was far less than the decline experienced
the Indonesian market. Supply excess that started by key competitors. As a result, Semen Indonesia still
in 2015 increased in 2016, causing selling prices to controlled a 41.7% market share – a very slight change
contract by 7% on average. These challenging industry from the 41.9% in the year earlier.
conditions should be considered the “new normal” that
will persist for at least the next five years. Second, the Company was able to better manage
its costs. This was reflected in stable amount of net
At the beginning of the 2016 operational year, the income from 2015 that the Company managed to
Board of Commissioners reminded the Company deliver despite the lower revenues that followed a drop
to maintain its performance. The Board of Directors in selling prices. Revenues amounted to Rp26.13 trillion,
was expected to come up with strategic measures a mere 3% contraction from the Rp26.95 trillion in 2015
and innovative ways to structurally reduce its costs, despite the sharp plunge in selling prices. The cost
identify market alternatives and develop businesses transformation strategy led by the Board of Directors
in the downstream side of the industry, as well as was able to offset the declining sales. The COGS per
complementary businesses. ton decreased by 2% compared to the previous year.
The Company was also able to record revenues from
SEMEN INDONESIA’S other sources and ultimately generated Rp4.52 trillion
PERFORMANCE in earnings attributable to the parent entity holders – a
With the challenging business conditions in mind, fairly stable amount compared to 2015.
the Board of Commissioners believes that the Board
of Directors, the Management and all employees The third observation was made of the noticeable
successfully achieved breakthroughs and were able progress of new cement plants: Indarung VI in Padang
to define strategic policies. Their implementation and a plant in Rembang, Central Java. The progress
was appropriate and sensible. The key strategy was of both plants was reasonably satisfying despite some
to develop three growth pillars, namely the cement delays in the completion stage. We expect that both
industry, downstream and complementary industries plants can proceed to their commissioning phases
and market expansion. Underpinning these pillars by the middle of 2017 before finally commencing
were commercial excellence and cost transformation, commercial production.
system and organizational structure development and
the availability of highly competent people – strategies Other than these three important observations, we also
that were aptly called the “3+1” strategy. acknowledged how the Board of Directors had paved
the way for Semen Indonesia to diversify its funding
In the view of the Board of Commissioners, the sources, i.e. from downstream business and other
strategies were successfully implemented in their initial complementary products, including cement industry-
year. We based our judgment on three observations. related services. The contributions of non-cement
The first was the Company’s success in keeping its businesses rose in 2016 and we believe they will
national market share. Despite lower demands and continue to increase in the coming years.
heightened competition, the Company was able to post


The Board of Directors also successfully concluded

OUR OVERSIGHT ON
important phases in the development of new plants,
IMPLEMENTATION OF
among others the acceleration of the Company’s
BUSINESS DEVELOPMENT
3-million- and 2-million-ton-capacity plants in Pidie
STRATEGY
of Aceh Province and Kupang in West Nusa Tengara,
The Board of Commissioners continuously carries
respectively. We also took note of the progress of the
out oversight and advises the Board of Directors
grinding plant and slag grinding mill of Krakatau Semen
prior to and after the execution of strategic initiatives.
Indonesia in Cigading, as well as of two packing plant
These are part of our mandate set forth in the Articles
projects for strengthening the Company’s distribution
of Association and other regulations. Through our
network.
oversight, we ensure that the Board of Directors has
prepared mitigation actions against potential risks
BOARD OF DIRECTORS’ inherent to the implementation of each strategic
PERFORMANCE ASSESSMENT initiative.
In view of those results, we believe that the Board of
Directors was able to acknowledge the challenging
The Board of Commissioners also seeks to ensure that
business environment and take the learning curve
the design and implementation of strategies will bring
further by turning it into an opportunity to boost
more than short-term benefits and should make lasting
the Company’s competitiveness. We are pleased
impacts, strengthening the Company’s position in the
to report that based on the 2016 performance the
regional and national cement markets. For the Board
Board of Directors had the agility to translate our
of Commissioners, the Board of Directors has realized
recommendations into strategic initiatives and lower
all strategies properly and enabled the Company to
costs, look for new markets and develop new business
establish a strong base to anticipate and address any
lines.
changes. These improvements have also made Semen
Indonesia ready to undertake its role as the best
The Board of Directors was also able to maintain national
cement company in the country and support national
market share by changing the Company’s paradigm in
development.
response to the weakened retail demand. This action
effectively ensured the stability of the Company’s future
NATIONAL CEMENT INDUSTRY
sales volumes. In addition, the Board of Directors also
OVERVIEW AND OUTLOOK
minimized the decrease of net income, despite lower
We predict that the competitive market and oversupply
selling prices and national market demand.
trend will continue in the next five years. We also project
only moderate increases, if any, in demand for bulk
The Board of Commissioners highly appreciates
cement following the realization of basic infrastructure
these results and encourages the Board of Directors
projects. On the other hand, global economy conditions
to continue being nimble and shrewd in responding
will be marked by increased uncertainty, resulting in
to dynamic industry changes. To Management, our
limited demand growth.
message is to stay resilient and firm in facing all
challenges, to strengthen synergy and to voice the
Champion spirit throughout the Company.
Annual Report 2016

43
Addressing this situation, the Board of Commissioners IMPROVING THE QUALITY OF

will continue to remind Management and all employees CORPORATE GOVERNANCE
to optimize all potentials so that the Company’s We believe that quality corporate governance
performance will not depend heavily on demand for contributes to increasing stakeholders’ trust, which will
cement. The Board of Commissioners would like to affect business continuity. The Board of Commissioners
mandate the optimum implementation of the “3+1 mandates the Board of Directors to continuously
Strategy”. Other initiatives, such as cost transformation improve the practice of good corporate governance.
and revenue source diversification, derived from among These improvements include nurturing a GCG-driven
other things the operational activities in 2016, must be culture as reflected in the application of GCG practices
strengthened. – observing regional and international standards – in
day-to-day activities.
We also endorse the regionalization of marketing areas,
which should be reinforced by a change in marketing The Board of Commissioners and the committees
mindsets. Meanwhile, the Company’s operations as a under it – the Audit Committee, Strategy Committee,
Full Strategic Holding company starting in 2017 must Risk and Investment Management Committee and
be complemented with efficient Operating Company Nomination and Remuneration Committee – as well as
Management to boost productivity as enabled by the BoC Secretary, will steadfastly work to enhance the
optimized capacity. quality of corporate governance practices.
These efforts must be supported by the ability to COMMITTEE PERFORMANCE

improve supply chain management to ensure accurate ASSESSMENT
supply and better capability to manage inventory. It The Board of Commissioners regularly assesses the
is also important to foster the ability to independently quality of the recommendations and input from the BoC
manage plant development projects in a cost effective committees. We conclude that all committees have
and timely manner. carried out their duties appropriately. Nevertheless,
considering the landscape of the cement industry and
The Board of Commissioners and its supporting its competition, the Board of Commissioners would like
committees will continuously guide the Board of to encourage all committees to continuously improve
Directors in the implementation of the strategic initiatives their competencies and the quality of their work.
set forth in the Company’s long-term work plan (RJPP),
while taking into account business conditions and CHANGES IN THE STRUCTURE
identifying accurate risk mitigation steps. OF THE BOARD OF
COMMISSIONERS
Changes in the structure of the Board of Commissioners
took place in 2016 in accordance with the resolutions
of the Annual General Meeting of Shareholders (AGMS)
on 13 May 2016.


The meeting appointed Mr. Hambra as Commissioner A joint meeting is held at least once a month within
to assume a position previously held by Mr. Achmad Semen Indonesia pursuant to the Company’s Articles
Jazidie and Mr. Djamari Chaniago was appointed as of Association and the Board Manual. In the times
Independent Commissioner, a position previously held when business conditions are unfavorable, the Board
by Mr. Hadi Waluyo. We thank Mr. Achmad Jazidi and of Commissioners holds two joint meetings per month
Mr. Hadi Waluyo for their valuable contributions during in addition to the non-formal meetings that can take
their service on the Board. place at any time.
We also would like welcome Mr. Hambra and Mr. DEVELOPMENT OF HUMAN
Djamari Chaniago and wish them the best in their new CAPITAL POTENTIAL
positions. The Board of Commissioners needs to remind
Management that the increasingly dynamic and
As such, the composition of the Board of Commissioners challenging business environment today and tomorrow
of PT Semen Indonesia (Persero) Tbk as of 13 May requires similarly dynamic human capital development
2016 is as follows: in Semen Indonesia. Human capital development
Name Position First Appointment End of Service

Mahendra Siregar President Commissioner 26 June 2012 AGMS 2017
Hambra Commissioner 13 May 2016 AGMS 2021
Wahyu Hidayat Commissioner 25 March 2014 AGMS 2019
Marwanto Harjowiryono Commissioner 25 March 2014 AGMS 2019
Sony Subrata Commissioner 23 January 2015 AGMS 2020
Djamari Chaniago Independent Commissioner 13 May 2016 AGMS 2021
Muchammad Zaidun Independent Commissioner 25 March 2014 AGMS 2019
BOARD OF COMMISSIONERS’ should not focus on technical competence alone,
OVERSIGHT AND ADVISORY but also on a fundamental mindset shift in the
FUNCTIONS implementation of employees’ responsibilities and their

role as an integral part of the Company’s successful
The Board of Commissioners consistently exercises
business implementation.
oversight of Management’s policies, the management
mechanism and the Company’s operations carried out
The Board of Commissioners fully supports the Board
by the Board of Directors. The Board of Commissioners
of Director’s initiatives to change that mindset by
also provides guidance to the Board of Directors. For
applying a mental switch, a capacity adjustment and
that purpose, the Board of Commissioners arranges
a skills adjustment to ensure that competent and
regular joint meetings attended by both Boards. These
adequate people are available. We believe Management
meetings are our platform to discuss the Company’s
has provided equal opportunities to all employees
progress, convey suggestions, issue recommendations
to improve their capabilities and professionalism, as
and provide advice to the Board of Directors to address
well as their abilities to respond to unprecedented
issues and make decisions on matters outside the
challenges, which are part of their personal and
Board of Directors’ scope of authority.
professional development.
Annual Report 2016

45
We are confident to report that the Company’s human A two-way dialogue that is resourceful and transparent
capital shares a dedication to grow together and to between beneficiaries and stakeholders will strengthen
remain solid in the face of adversity. This business CSR commitment and participation. Meanwhile,
environment demands agility in a company to move program success evaluations will ensure the
and diversify its business. With new approaches, the improvement and goal achievement of future programs
Company no longer heavily depends on demand for – namely improved welfare in line with the Company’s
cement, but has shifted to the innovative capacity of all advancement.
employees to pursue business opportunities.
The Board of Commissioners fully supports
CORPORATE SOCIAL Management’s consistency in realizing sustainability
RESPONSIBILITY programs, including environmental conservation
The Board of Commissioners considers it important through green operations. The Company, for example,
for the Company to align its business growth with its utilized industrial waste as a precursor in the production
corporate social responsibility achievements. Social process and participated actively in environmental
responsibility implementation must be improved in quality improvement efforts, such as in reforestation
terms of coordination and participation of beneficiaries. activities around operational sites and other
We carry out CSR activities in different regions that environmental events. The Board of Commissioners
have unique identities, issues and characteristics. As shares the Company’s pride over attaining the Certified
such, CSR programs must be studied and evaluated Emission Reduction (CER) status for its existing
to ensure their appropriateness for different locations WHRPG unit. The Company will continue this with a
and must be clearly communicated to program Clean Development Mechanism (CDM) and global-
beneficiaries. scale CO2 emission reduction efforts in Tuban.


APPRECIATION
In conclusion, the Board of Commissioners would like to take this opportunity to express our gratitude to God Almighty.
With His blessings, the Company was able to get through a challenging 2016 with a strong performance, ready to
anticipate and overcome future challenges. Those results also reflect the hard work and dedication of the Board of
Directors and employees of PT Semen Indonesia (Persero) Tbk.
We would also like to thank the shareholders for their trust and input and all stakeholders for the support that enabled
the Company to deliver to the best of its abilities and continue supporting national development. May God continue
to bestow abundant blessings on us all.
Jakarta, March 2017
Wassalamu’alaikum WrWb.
Mahendra Siregar
Annual Report 2016

47
BOARD OF COMMISSIONERS
DJAMARI CHANIAGO HAMBRA SONY SUBRATA

Independent Commissioner Commissioner Commissioner


MAHENDRA SIREGAR WAHYU HIDAYAT MARWANTO HARJOWIRYONO MUCHAMMAD ZAIDUN

President Commissioner Commissioner Commissioner Independent Commissioner
Annual Report 2016

49
COMPANY
PROFILE
52 Company Identity
53 SEMEN INDONESIA
at a Glance
57 Business Activities
63 Vision, Mission
66 Our Journey
68 Organization Structure
70 Area Operasional
72 Board of Commissioners’ Profile
79 Board Of Directors’ Profile
86 Total Employees
87 Shareholders Information
88 Shareholders Structure
89 Subsidiaries
92 Shares Listing Chronology
93 Capital Market Supporting Institutions
94 Awards & Certifications
98 Event Highlights
PT Semen Indonesia (Persero) Tbk is the largest
cement producer in Indonesia and listed as the first
State-Owned Enterprise (SOE) to go regional.
Continuing its support for the nation development,

the Company is currently intensifying its downstream
cement products development, expanding market
coverage and ensuring the sufficiency of production
supplies by commencing 2 additional new cement
mills and the completion of 1 grinding plant, following
the 2nd commissioning of new mills located in Padang
and Rembang.
Cement Mill of Thang Long, Vietnam,

has a capacity of 2,300.000 tons/year
Company Identity
Company Name Line of Business Authorized Capital

PT Semen Indonesia
Cement Industry
(Persero) Tbk. Rp
2,000,000,000,000
Since 7 January 2012
Legal Basis
Government Regulation
Previous Company No. 132 year 1961 Issued and Fully
Name Paid Capital
Subsidiaries Rp
593,152,000,000
PT Semen Gresik
(Persero) Tbk (1969) 15 Subsidiaries with
mayority ownership and
7 associates
Office Address
Establishment
Shares Code
251953
PT Semen Indonesia
March SMGR
(Persero) Tbk
Office 1
Jl. Veteran Gresik 61122
Shares Listing East Java, Indonesia
T: + 62-31-398-1732
Shareholders The Company’s share was
listed in the Jakarta Stock F: + 62-31-398-3209
Exchange through IPO @: www.semenindonesia.com
Government of Indonesia exercised on 8 July 1991

with the trading code: Office 2
51.01%
SMGR The East Building, 18th Floor
Jl. DR Ide Anak Agung
Gde Agung
SWIFT Code
48.99%
Kuningan, Jakarta -12950
Public T: 62-21-5261174-5
F: 62-21-5261176
IBBKIDJA


SEMEN INDONESIA
AT A GLANCE
Main Office of Semen Indonesia

located in Gresik, East Java
PT Semen Indonesia (Persero) Tbk, previously named PT Semen Gresik

(Persero) Tbk, is a company engaged in cement industry. Inaugurated
in Gresik on 7 August 1957 by the first President of RI, the Company
initially had production capacity of 250,000 tons cement per year.
On 8 July 1991, Semen Gresik On September 1995, the

shares were listed on the Jakarta Company exercised Rights Issue
Stock Exchange and Surabaya I, which amended the shareholding
Stock Exchange (now Indonesia composition to 65% Government
Stock Exchange). The Company of RI and 35% shares owned by
is the first SOE going public by the public. On 15 September 1995,
offering 40 shares to the public. PT Semen Gresik consolidated with
Shareholding composition at the PT Semen Padang and PT Semen
time was: Government of RI 73% Tonasa. The Company’s total
and public 27%. production capacity at the time was
8.5 million tons cement per year.
Annual Report 2016

53
SEMEN INDONESIA AT A GLANCE
On 17 September 1998, the Government of RI divested

14% of its stake in the Company through open offering,
which was acquired by Cemex S. A. de C. V., a global
cement company based in Mexico. The shareholding
composition changed to 51% of the Government
of RI, 35% public, and 14% Cemex. Further, on
30 September 1999 the shareholding composition
changed to: Government of RI at 51.01%, public
23.46% and Cemex 25.53%.
On 27 July 2006, Cemex Asia Holdings Ltd. sold its

shares to Blue Valley Holdings PTE Ltd. thereby
changing shareholding composition of the Company
to 51.01%, Government of RI, 24.90%, Blue Valley
Holdings PTE Ltd., 24.09% public.
On March 2010, Blue Valley Holdings PTE Ltd, divested

all of its shares through private placements. The
Company’s shareholding composition then changed to
51.01% Government of RI and 48.99% public.
On April 2012, the Company succeeded in completing

the construction of Tuban IV plant with the capacity
of 2.5 million tons. Following the commissioning
stage, the new plant was handed over on July 2012,
followed by the inauguration of commercial operations
in October 2012.
Furthermore, in the third quarter of 2012, the Company

also succeeded in completing 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.

IKHTISAR
MAIN LAPORAN
REPORT FROM PROFIL
COMPANY ANALISA & PEMBAHASAN
MANAGEMENT DISCUSSION
HIGHLIGHTS
UTAMA MANAJEMEN
THE MANAGEMENT PERUSAHAAN
PROFILE MANAJEMEN
AND ANALYSIS
TINJAUAN
BUSINESS OPERATIONAL LAPORAN TATA
CORPORATE KELOLA
GOVERNANCE TANGGUNG
CORPORATEJAWAB
SOCIALSOSIAL LAPORAN KEUANGAN
CONSOLIDATED FINANCIAL
OPERASIONAL
REVIEW PERUSAHAAN
IMPLEMENTATION REPORT PERUSAHAAN
RESPONSIBILITY REPORT KONSOLIDASIAN
STATEMENTS
SEKILAS SEMEN INDONESIA
Packing Plant in Balikpapan, East Kalimantan
On 18 December 2012, the Company officially acquired In 2014, the Company embarked on another business
70% stakes in Thang Long Cement Joint Stock development program by commencing the construction
Company (TLCC) from Hanoi General Export-Import of 2 cement plants in Padang and Rembang. This
Joint Stock Company (Geleximco) in Vietnam, with 2.3 was followed by another decision to commence the
million tons capacity. Through this corporate action, the construction of 1 plant in Aceh.
Company becomes the first Indonesian multinational
SOE. The Company also completed the construction of
ground granuleated blast furnace slage mill in Cigading,
On 20 December 2012, the Company officially took through PT Krakatau Semen Indonesia.
the role as Strategic Holding Company. Concurrently, it
changed name from PT Semen Gresik (Persero) Tbk to In 2016, the Company established PT Semen Indonesia
PT Semen Indonesia (Persero) Tbk. International (SII) and PT Semen Indonesia Aceh (SIA),
PT Semen Kupang Indonesia (SKI) and changed the
On 20 December 2013, the Company signed deed name of PT SGG Prima Beton to PT Semen Indonesia
of joint venture establishment, PT Krakatau Semen Beton (SIB), as part of expansion plan in cement and
Indonesia (KSI), which was assigned to build slag non-cement fields.
powder waste management plant as raw materials of
cement production.
Further, on 24 December 2013, the Company continued

its Corporate Transformation process and solidified its
role as the Strategic Holding by forming new subsidiary,
PT Semen Gresik.
Annual Report 2016

55
THE COMPANY’S
ADVANTAGES
In addition to the advantages reported in
previous sections, the Company’s excellence
also includes the following features:
Distribution Reach
The Company’s distribution excellence is backed by 30
supporting warehouse units, 24 strategically located
packing plants, and 243 national distributors that
guarantee the stability of cement supply anywhere in
the archipelago. In Vietnam, TLCC has 36 distributors
throughout North, Central, and South Vietnam.
Raw Materials
The Company’s mining sites have material reserve with
the best quality and sufficient amount to ensure long-term
continuity of cement production.
Brand Image
The Company is the owner of three reputable brands. It
also controls the largest domestic (Indonesia) market share
of 41.7%, which reflects the strength of the Company’s
corporate and brand image.
The Company succeeds in managing strong financial

fundaments, thereby providing greater opportunity for the
Company to expand its production capacity as well as
other related businesses.


BUSINESS
ACTIVITIES
Business activities in cement, production and distribution of cement products
and downstream cement products.
PRODUCTION PROCESS
Preheat
Coal
Blending
Rotary Klin
Raw
Clinker
Clinker Cement Cement
Cement
Cement
Roller Press
Transporting
Annual Report 2016

57
PRODUCTS
AND SERVICES
Product Types
The 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.
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 II

Porland 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 III

Developed for constructions that require high initial
compressive strength after pouring and quick setting,
Portland Cement Type III is used in projects such as
highways, freeways, high-rise buildings, and airports.
Portland Cement Type V

Portland 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.
Suramadu Bridge
Connecting the city of Surabaya and Madura Island, East Java
using Semen Gresik products


PRODUCTS AND SERVICES
Special Blended Cement (SBC) Oil Well Cement (OWC) Class G

Packed in bulk, this specific cement was developed HRC
for Surabaya-Madura (Suramadu) bridge mega project OWC is a specific type of cement used in oil and
and is customized for constructions in saltwater natural gas wells for underwater oil wells construction.
environment. The production of OWC includes Class G, High Sulfate
Resistant (HSR) or Basic OWC. For usage in certain
Portland Pozzolan Cement (PPC) depth and temperature, additive can be added.
Hydraulic cement produced by grinding slags,
gypsums, and pozzolans. PPC is used in general Super White Cement
constructions and buildings that require sulfate and High quality white cement that can be applied for
medium hydration heat resistance, such as: bridges, interior and exterior decoration, as well as coating the
highways, houses, docks, mass concrete, dams, ceramics, profiles and others. White cement production
irrigation, and fully plated foundation. is using quality raw materials with low (below 1%) iron
content and magnesium oxide, with the whiteness
Portland Composite Cement (PCC) degree measured by differed standards.
Hydraulic binder cement produced by grinding slags,
gypsums, and one or more inorganic materials. Portland Cement
The cement type is suitable for general concrete Portland cement type I and PPC are available in the
construction, as combination of bricks, plastering, retail market, while the other types are produced by
drainages, construction of specific buildings such order and in certain quantity.
as pre-cast concrete, pre-press concrete and paving
blocks. The products are sold primarily for domestic market
with some allocation for export. They are mainly sold in
Super Masonry Cement (SMC) packs and the rest is sold in bulk.
SMC is suitable for residential construction and
irrigation system with maximum concrete structure of
K225. It is also suitable as raw materials of hollow brick
concrete roof tiles, paving blocks, and tiles.
Annual Report 2016

59
SUPPORTING
FACILITIES
SEMEN PADANG
Operates four cement mills with design capacity of 7.4
million tons cement per annum, located in Indarung,
West Sumatera. Semen Padang also operates eight
cement packing plants in Teluk Bayur, Belawan, Batam,
Tanjung Priok, Ciwandan, Malahayati, Lhokseumawe
and Dumai, as well as 14 supporting warehouse units
and 1 port.
Teluk Bayur Port

Capacity : 40,000 DWT
Depth : 12.5 m
Length : 150 m
Total docks :3
SEMEN INDONESIA
Operates four mills with design capacity of 14.7 million
tons cement per annum, located in Tuban, East Java.
Semen Gresik also operates and owned two ports,
namely Semen Gresik Special Ports in Tuban and
Gresik. Semen Gresik operates 11 units of supporting
warehouse across Java and Bali, and operates five
packing plants in Ciwandan, Banyuwangi, Sorong,
Balikpapan and Dumai.
Gresik Special Port

Type : Line Jetty
Length : 290.8 meter
Width : 15.5 meter
Depth : 9 M LWS
Packing Plant in Sorong, West Papua


Special Port of Semen Tonasa

in Biringkassi, Pangkep, South Sulawesi
has a capacity of 30,000 DWT
Tuban Special Port

Dock I
Type : Line Jetty
Length : 175 meter
Width : 45.5 meter
Capacity : 7.000 DWT
Depth : 8 M LWS
PRODUCTION LEVEL
Dock II (in million tons)
Type : Line Jetty
Length : 225 meter
Width : 45.5 meter
Capacity : 40,000 DWT 28.5
Depth : 13 M LWS 28.3 28.3
SEMEN TONASA
Operates three cement mills with design capacity of 7.4 million tons cement
per annum, located in Pangkep, South Sulawesi. Semen Tonasa also operates
and owns 9 cement packing plants equipped with jetties in Biringkassi,
Makassar, Samarinda, Banjarmasin, Pontianak, Bitung, Palu, Ambon, and 2014 2015 2016
Celukan Bawang Bali. Semen Tonasa has 5 units of supporting warehouse.
Biringkassi Port
Type : Line Jetty
Length : 445.5 meter
Depth : 13 M LWS
Annual Report 2016

61
SUPPORTING FACILITIES
THANG LONG CEMENT Thang Long Port

Operates one mill with design capacity of 2.3 million Type : Line Jetty
tons cement per annum, located in Quang Ninh Length : 160 meter
province, has its own port (Thang Long Jetty) with Capacity : 30,000 DWT
vessel load capacity of up to 30,000 DWT. For greater Depth : 9 M LWS
load capacity, the company uses Cai Lan seaport
located approximately 3 km from the company’s port. Cai Lan Port
In addition, TLCC operates grinding mills located on Type : Line Jetty
the outskirts of Ho Chi Minh City. TLCC also has 3 Length : 826 meter
cement packing plants (rotary packer). Capacity : 75,000 DWT
Depth : 12 M LWS
Grinding Plant, Ho Chi Mint, Vietnam,

capacity 1,15 juta 000 tons/year


VISION, MISSION
Vision
Being a Leading International Cement
Company in Southeast Asia.
1.
Mission
Developing cement business
and related industries oriented
customer satisfaction
2. Realizing international standard

company with competitive
advantages and synergies to
increase a sustainability added
value
3. Realizing social responsibility

and environmentally friendly
4. Providing the best value to the

stakeholders
5. Build competencies through

human resource development
Annual Report 2016

63
CORPORATE
CULTURE
Represented by CHAMPS:
C Compete with Clear and Synergized Vision

Able to direct company resources and capabilities appropriately and
accurately to compete and realize the goal of corporate synergy
H Have A High Spirit For Continuous Learning

Willing and is open to continuous learning to consistently enhance
work quality, able to adapt to changes, and able to address changes in
cement industry landscape
A Act with High Accountability

Reliable and accountable for every statement, action, and decision
M Meet Customer Expectation

Able to meet expectations, wants, and needs of customers for
products and services; deliver focused and responsive assistance
according to standard procedures
P Perform Ethically with High Integrity

Able to demonstrate philosophy, worldview, and behavior that
conform with virtuous moral and ethical values that are held
steadfastly without waver
S Strengthen Teamwork
Able to perform as a team to deliver the best performance that
creates added value for the Company and stakeholders


S SYNERY
M MILITANCE
I INTEGRITY
The Company’s Vision, Mission, and Culture statements was stipulated by the Board of Directors on 25
October 2014 and approved by the Board of Commissioners on 25 October 2014.
Annual Report 2016

65
OUR JOURNEY
1957
The Company was established with
production facility of 250,000 tons per annum
(design capacity).
1991
Initial Public Offering (IPO). Market
capitalization stood at Rp0.63 trillion.
The Company’s ownership structure:
Government of Indonesia, 73%
Public 27%
1995
• Rights Issue
• For the Acquisition of national cement
companies, PT Semen Padang (Persero)
and PT Semen Tonasa (Persero).
1998
Cemex entered as strategic partner with
share ownership of 14.0%. The Company’s
ownership structure changed to:
Public 35%
Cemex, 14.0%
Market capitalization stood at
Rp4.9 trillion
1999
Cemex increased its ownership to 26%,
The ownership structure changed to:
Public 23%
Cemex, 14.0%
Packing Facility in Thang Long Cement Mill, Market capitalization stood at
Rp6.6 trillion
Vietnam


2012 • Capitalization as of 31 December

2013 Established PT Krakatau Semen
Indonesia, a joint venture company
for slag powder waste management
2012 stood at Rp94 trillion. to be re-used as raw material in
Production capacity (installed) cement production. Established PT
reached 28.5 tons per annum. Semen Gresik continuing Corporate
• Completed the construction of 2 Transformation journey.
cement plants.
• Acquired Thang Long Cement Joint
2014
Stock Company (TLCC) in Vietnam.
• Commenced physical construction of
• Transformed into Strategic Holding new plants in Rembang and Padang
Company. Changed its name to PT (Indarung VI).
Semen Indonesia (Persero) Tbk.
• Estalished PT Sinergi Informatika
Semen Indonesia.
2010 2015
On 31 March, Blue Valley Holdings Commenced new plant development
divested its entire shares in SGMR. in Aceh.
Market capitalization (April 2010):
Rp72.31 trillion.
Ownership:
Public 49%
2016 Established PT Semen Indonesia
International (SII) and PT
Semen Indonesia Aceh (SIA), PT
2006
Blue Valley Holdings purchased Semen Kupang Indonesia (SKI)
Cemex’s entire share ownership of
and changed the name of PT
SGMR at 24.9
%
Market capitalization
value: Rp21.5 trillion.
SGG Prima Beton to PT Semen
Indonesia Beton (SIB), as part of
Ownership:
expansion in cement and non-
Government of Indonesia: 51%
cement fields.
Public : 24.1%
Blue Valley : 24.9%
Commenced second construction
phase of 2 new cement plants and 1
power plant
Annual Report 2016

67
ORGANIZATION
STRUCTURE
President Director
Rizkan Chandra
Strategy Business
Production & Engineering &
& Enterprise
R&D Director Project Director
Development Director
Johan Samudra Gatot Kustyadji
Budi Siswoyo
SVP ICT &

Strategic
Procurement
Mat Sulkan
Department of Department of Department Department of

Business Strategic R&D Process & of Design ICT Development
Planning & Capex Technology Engineering
Ilmanza
M. Ludfi Setyadi Teguh Sutrisno Nugrahadi Restuadi
Department Department Department of

Department
of Corporate of Productivity Engineering
of ICT Services
Support Business & Technical Knowledge &
Development Services Innovation
Her Arsa
Soni Asrul Sani Benny Ismanto Ahmad Aris Pambudi
Department Department of Department of

of Corporate R&D Product & Project Services
Development Application
Mufti Arimurti Rudi Hermawan Pgs Nugrahadi
Department of Project
Manajemen Achmed Vaival
Manajemen
Manajemen
Raw Material & Management
Proyek
Proyek Istiadi
Energy Expansion Proyek
Donny Avianto Durain

Parmanoan
Agus Subroto
Heru
Indrawidjajanto
Notes:
: Reporting Lines
Project Management consists of Project Team stipulated by specific Decree of the Board of Directors
Apart from the above organizational structure, the other team are appointed by the Board of Directors


Marketing & Finance

HR & Legal
Supply Chain Director
Director
Director
Darmawan
Ahyanizzaman
Aunur Rosyidi Junaidi
Portfolio Department of
Department Department
Management Strategic Finance
of Marketing of HR System
Office and Development
Planning Development
Achmad Suhandik Pgs

Tino Darusman
Tholchah M. Supriyadi
Department Department of Department of

Corporate
of Corporate Center of Dynamic Accounting &
Secretary
Marketing Learning Finance Group
Agung Wiharto
Rudi Hartono Guntoro M. Supriyadi
Department of Department
Internal Audit
Supply Chain Department of of Strategic
Group
CSR Performance
Management
Ginarko
Pgs Wahjudi Heru Pgs Achmad
Isnubroto
Rudi Hartono Thoichah
Department of
Legal & GRC
M. Soffan Heri
Department of
Assets Group
Sunartik
Annual Report 2016

69
OPERATIONAL
AREA


Integrated Cement 6 Location

Plant
Kiln 15 Units
Cement Mill 26 Units
Grinding Plant 2 Location
Cement Mill 4 Units
Warehouse 30 Location
Packing Plant 24 Location
Port 12 Location
Annual Report 2016

71
BOARD OF COMMISSIONERS’
PROFILE
Mahendra Siregar
54 years, Indonesian Citizen
EDUCATIONAL BACKGROUND
Obtained Bachelor of Economics from the Faculty of Economy, University of Indonesia
in 1986 and Master of Economics from Monash University, Australia in 1991.
PROFESSIONAL PROFILES
Legal Basis & Terms of Office
Appointed as the Company’s President Commissioner at the EGMS 26 June 2012. Current term of office as the
President Commissioner will be completed by the end of 2017.
Concurrent Posts
Commissioner of PT AKR Indonesia, Independent Commissioner of PT Unilever Indonesia, Independent
Commissioner of Sequis, Commissioner of PT Vale Indonesia.
Professional Background
He has served as Head of BKPM since October 2013-2014 after previously served as Vice Minister of Finance
of the Republic of Indonesia 2011-2013 and Vice Minister of Trade 2009-2011. Joined the Coordinating Ministry
for Economic Affairs at the end of 2001 as Special Staff of the Coordinating Minister for the Economy. Served
as Deputy Minister for International Cooperation Coordination from May 2005 to 2009. In addition, as a member
of the Adaption Fund Board of the United Nations Framework Convention on Climate Change (UNFCCC)
representing Asia in 2007-2009.
WORKSHOP/TRAINING IN 2016
He has participated in several competence improvement trainings during 2016, as follows:
• Directing the Journey in the Challenging Environment.
• Economic Outlook in 2017
Affiliations
He does not have any affiliations with other fellow members of the Board of Commissioners, members of the
Board of Directors, or the ultimate shareholder.


BOARD OF COMMISSIONERS’ PROFILE
Muchammad Zaidun
Independent Commissioner
Obtained a Professor of Investment Law from Airlangga University in 2007. Obtained a Doctorate degree in
Investment Law from Airlangga University in 2005, and Master of Social Sciences in 1996 and a Law Degree in
1981 from the same university.
Appointed as Commissioner at the AGMS 2014. Current term of office will be completed in 2019.
Concurrent Posts
Serves as the Administrator of the Indonesian Mediator Association (AMINDO) and as a Member of the
Board of Ethics of the Constitutional Court since 2011.
Has served as Dean of Faculty of Law of UNAIR (2007-2015). Has also served as the Administrator of the
Indonesian Mediator Association (AMINDO) and as Member of the Constitutional Court Ethic Board since
2011
Affiliations
Annual Report 2016

73
Djamari Chaniago
Independent Commissioner
Graduated from Akabri in 1971.
Concurrent Posts
Commissioner of PT Hasnur Group, and Commissioner of PT Bhumi Rantau Energi
Previously served as President Commissioner of PT Semen Padang. He has served as the Chief of TNI General
Staff, Commander of the Army Strategic Reserve Command.
Affiliations
He does not have any affiliations with other fellow members of the Board of Commissioners, members of
the Board of Directors, or the ultimate shareholder.


Marwanto Harjowiryono
Commissioner
Graduated with a Bachelor of Economics degree from Gajah Mada University,
Master from Vanderbilt University, Nashville, Tennessee, USA and Doctoral degree
from Gajah Mada University.
Concurrent Posts
Currently serves as Director General of Treasury, Ministry of Finance since November 2013.
Previously served as Director General of Fiscal Balance of the Ministry of Finance and Expert Staff
of the Minister of Finance on State Expenditure. He was also served as Executive Director of Asian
Development Bank.
Affiliations
Annual Report 2016

75
Hambra
Commissioner
Graduated with a Bachelor of Law from Pattimura University, and a Master of Law
from Gajah Mada University
Concurrent Posts
Currently serves as Deputy for Business Infrastructure, Ministry of SOEs.
Previously served as Expert Staff in the Strategic Communication and Industrial Relations, Ministry of SOE,
Commissioner of PT Jasa Marga (Persero) Tbk, Commissioner of PT Kereta Api Indonesia (Persero).
None
Affiliations


Wahyu Hidayat
Commissioner
Graduated with a Bachelor of Economics degree from Gajah Mada University.
Concurrent Posts
Commissioner of PT Multi Bintang Indonesia Tbk.
Previously served as Deputy Minister for Restructuring and Strategic Planning, Ministry of BUMN (2013-
2014), after previously served as Secretary of the Ministry of SOEs (2012-2013). In addition, he has served as
President Director and Commissioner in several SOEs such as Commissioner of PT Bank Mandiri (Persero)
Tbk (2012-2014).
Affiliations
Annual Report 2016

77
Sony Subrata
Commissioner
Graduated from University of New South Wales, Sydney, Australia.
Appointed as Commissioner at the EGMS 2015. Current term of office will be completed in 2020.
Concurrent Posts
Currently also serves as CEO of PT Arwuda Indonesia, CEO of PT Tridaya Nusantara Internasional and CEO of
PT Brata Nusa Pratama.
Previously served as Independent Commissioner of PT Ciputra Surya Tbk 1999-2003. Served as the Chairman
of Nation Foundation 1997-1999.
Affiliations


BOARD OF DIRECTORS’
PROFILE
Rizkan Chandra
President Director
Bachelor degree in ITB Informatics Engineering and Post Graduate (MSc in
Management of Technology) in the National University of Singapore.
Appointed as President Director at the AGMS 2016. Current term of office will be completed in 2020.
Concurrent Posts
None
Previously served as Director of Business Development and Business Strategy of PT Semen Indonesia
(Persero) Tbk (2015-2016), Director of Network, IT & Solution of PT Telekomunikasi Indonesia (Persero) Tbk
(2012-2014), Commissioner of PT Telkomsel (2012-2014), and President Director of PT Sigma Cipta Caraka
(2010-2012).
• FGD of SOE Ministry
• Futures Thinking & Strategy Development
• The National Insights of Lemhannas RI
Affiliations
Annual Report 2016

79
BOARD OF DIRECTORS’ PROFILE
Ahyanizzaman
Director of HR and Legal
Bachelor Degree in Accounting from University of Airlangga, Surabaya
Previously appointed as Finance Director at the EGMS 11 March 2011 to 2016. Reappointed as Director at the
AGMS 2016 until the GMS 2021.
Concurrent Posts
None
Previously served as Finance Director of PT Semen Indonesia (Persero) Tbk (2011-2016), President Commissioner
of PT Eternit Gresik (2014 - present), Pension Fund Supervisor (2011- present), Head of Finance Division (2006-
2010), Head of Finance and Accounting Division (2007-2011),
• Pension Fund Risk Management
• Human Capital Summit 2016
Affiliations
Board of Directors, or the ultimate shareholder.atau dengan pemegang saham utama.


Gatot Kustyadji
Director of Engineering and Projects
Bachelor Degree in Chemical Engineering from the Institute of Technology of 10 November and Bachelor
Degree in Management at University of Indonesia. Taking a Master’s Degree in Economics of Development
Planning, Andalas University. Obtained a Doctorate degree in Human Resources from Brawijaya University.
Appointed as Director at the AGMS 2014. Current term of office will be completed in 2019.
Concurrent Posts
None
Previously served as Director of HR & Legal of PT Semen Indonesia (Persero) Tbk (2014-2016), President
Director of PT Semen Gresik (2013-2014), Production and Project Director of PT Semen Tonasa (2012-2013),
Director of R & D and Operations of PT Semen Tonasa (2009-2012).
Affiliations
He does not have any affiliations with other fellow members of the Board of Commissioners, members of
the Board of Directors, or the ultimate shareholder.
Annual Report 2016

81
Johan Samudra
Director of Production and R&D
Bachelor Degree in Mechanical Engineering from Institute of Technology Bandung
and Post-Graduate in Financial Management from Andalas University.
Concurrent Posts
None
Previously served as Director of Business Development & Business Strategy of PT Semen Indonesia (Persero)
Tbk (2014-2015), President Commissioner of PT United Tractors Semen Gresik (2015-present), Vice Chairman
of Board of Management TLCC (2013-present), CEO of Thang Long Cement Vietnam (2013-2014), and Director
of Research and Development of PT Semen Padang (2003-2005).
• Workshop of Directorate of Product & R&D of SMI Group
Affiliations


Aunur Rosyidi
Director of Marketing and Supply Chain
Graduated with a Bachelor Degree in Mechanical Engineering from Institut
Teknologi Sepuluh November Surabaya and postgraduate (S2) in Economics from
Airlangga University Surabaya.
Appointed as Director of the Company at the AGMS 2015. Current term of office will be completed in 2020.
Concurrent Posts
None
Previously served as Director of Engineering and Projects of PT Semen Indonesia (Persero) Tbk (2015-2016),
Commercial Director of PT Semen Gresik (2014-2015). Served as President Commissioner of PT Kawasan
Industri Gresik and GM of Procurement & Inventory Management of PT Semen Indonesia (Persero) Tbk
(2013-2014).
Affiliations
Annual Report 2016

83
Darmawan Junaidi
Director of Finance
Studied in Civil Law at Sriwijaya University.
Concurrent Posts
None
Previously served as Head of Treasury Group of PT Bank Mandiri (Persero) Tbk (2016), SVP Regional CEO of
Bali and Nusa Tenggara of PT Bank Mandiri (Persero) Tbk (2015-2016), SVP Deputy Group Head Treasury of PT
Bank Mandiri (Persero) Tbk (2012-2015).
• Workshop Finance Strategy
Affiliations


Budi Siswoyo
Director of Business Development and Business Strategy
Bachelor Degree in Accounting from Sebelas Maret University Surakarta and Post-
Graduate in Financial Management from Monash University, Australia
Concurrent Posts
None
Previously served as President Director of Thang Long Cement Company (2015-2016), Finance Director of
Thang Long Cement Company (2013-2015), Commissioner of PT Varia Usaha (2012-2013), GM of Group
Finance Management of PT Semen Indonesia (Persero) Tbk (2010-2012), Head of Financial Management
Division of PT Semen Indonesia (Persero) Tbk (2013).
• FGD of SOE Ministry
• 18th Asia Cement Trade
Affiliations
Annual Report 2016

85
TOTAL
EMPLOYEES
Employees by Education
Education Level 2016 2015 2014
Doctorate/S3 3 3
Post Graduates/S2 400 180 447
Graduates/S1 1,243 1,373 1,269
Diploma (D1, D2, D3, D4) 1,107 791 773
Senior High School and equivalent 3,149 3,849 3,847
Total 5,902 6,196 6,336
Employees by Age
Age 2016 2015 2014
17-25 472 748 771
26-30 1.259 1.179 1.144
31-35 872 770 625
36-40 731 891 1.154
41-45 1.235 1.080 1.080
46-50 738 647 552
Above 50 595 747 1.010
Total 5.902 6.196 6.336
Employee activities in PT Semen Padang Office


SHAREHOLDERS
INFORMATION
SHAREHOLDERS COMPOSITION
Shareholders Composistion As of 31 December 2016
No Shareholders Total Shares Ownership Percentage

a. Shareholders with 5% or more Share Ownership
1 Republic of Indonesia 3.025.406.000 51,006

Shares Ownership by Members of the Board of Directors and Board of Commissioners
1 Board of Commissioners 0 0
2 Board of Directors 162.700 0,0027430
Less than 5% Shares Ownership by Public
1 Public (less than 5%) 2.905.951.300 48,994
Total 5.931.520.000 100,00
Total Shareholders and Ownership Percentage As of End of Fiscal Year Based on Classification
Types Total Shareholders Total Shares Composition (%)

National Investors
Republic of Indonesia 1 3.025.406.000 51,00558
Individual Indonesia 11.199 116.432.719 1,96295
Employees 35 138.000 0,00233
Cooperatives 6 372.200 0,00627
Foundations 25 6.548.800 0,11041
Pension Funds 167 52.959.525 0,89285
Insurance Companies 108 170.700.900 2,87786
Banks 2 35.390 0,00060
Limited Liabilities Companies 123 215.848.699 3,63901
Associates 1 5.000 0,00008
Other Entities 18 84.000 0,00142
Mutual Funds 226 102.823.945 1,73352
Sub Total 11.911 3.691.355.178 62,23288
Foreign Investors
Foreign Individual 89 1.795.400 0,03027
Foreign Institutions 951 2.238.369.422 37,76713
Sub Total 1.040 2.240.164.822 37,76713
Total 12.951 5.931.520.000 100,00000
Annual Report 2016

87
SHAREHOLDERS
STRUCTURE
REPUBLIC OF
PUBLIC
INDONESIA
51.01% 48.99%
THANG LONG PT SEMEN KUPANG PT SEMEN

PT SEMEN PADANG PT SEMEN TONASA PT SEMEN GRESIK*)
CEMENT INDUSTRY CEMENT INDUSTRY CEMENT, VN CEMENT INDUSTRY INDONESIA*) INDONESIA ACEH*)
CEMENT INDUSTRY CEMENT INDUSTRY CEMENT INDUSTRY
99.99 %
99.99 %
70.00 %
99.96 % 99.48 %
38.28%
2 SUBSIDIARIES 9 SUBSIDIARIES 2 SUBSIDIARIES

NON-CEMENT NON-CEMENT
CEMENT INDUSTRY
INDUSTRY INDUSTRY
*) under construction


SUBSIDIARIES
The Company established subsidiaries, associates and affiliates that are engaged in cement related
businesses, from cement production, distribution to products usage.
Name % Ownership Line of Total Assets Year of Address

Business (Rp) Operations
Subsidiaries
PT Semen Padang 99.99% Cement 9,210,952,435,000 1913 Head Office: Indarung – Padang,
Producer West Sumatra 25237
Telp : (0751) 815250
Faks : (0751) 815590
Jakarta Representative Office:
Graha Irama Lt.XI
Jl. HR Rasuna Said, Kuningan –
Jakarta 12950
Telp : (021) 5261272,
Faks : (021) 5261414
Email : pts@semenpadang.co.id,
http://www.semenpadang.co.id
PT Semen Gresik 99.96% Cement 4,814,349,323,000 - Jl. Veteran Gresik 61122
(**) Producer East Java, Indonesia
Telp: + 62-31-398-1732
Faks: + 62-31-398-3209
PT Semen Tonasa 99.99% Cement 8,730,454,358,000 1968 Head Office: DS.Bantoa, Kec.
Producer Minasate’ne, Kab.
Pangkep, Sulawesi Selatan 90651
Telp : (0410) 312345
Faks : (0410) 310113, 310006-8
Kantor Perwakilan Jakarta :
Graha Irama Lt.XI
Jl. HR Rasuna Said, Kuningan –
Jakarta 12950
Telp : (021) 5261161,
Faks : 5261160
Email : tonasa@sementonasa.co.id,
http://www.sementonasa.co.id
PT Thang Long 70.00% Cement 2,951,778,700,000 2008 Head Office: No. 3 Ln., 191 Lac
Joint Stock Producer Long St., Cau
Company (*) Giay District
Hanoi, Vietnam
Telp : 84 (04) 3753-4862
Faks : 84 (04) 3836-1898
Email : www.thanglongcement.com.
vn
PT SGG Energi 97.00% Coal mining, 93,906,025,000 2012 Jl. Veteran Kel Sidomoro, Kec
Prima (SEP) trading and Kebomas, Kab. Gresik
transportation
PT Semen 99.99% Ready mix 1,421,925,523,000 2012 Jl. Tebet Timur Dalam VIII X/15
Indonesia Beton concrete South Jakarta 12820
(SIB) production
PT United Tractors 55.00% Limestone and 380,306,292,000 1992 Sumberarum Village, Kerek District,
Semen Gresik clay mining Tuban Regency
Annual Report 2016

89
SUBSIDIARIES

PT Industri 60.00% Cement Bag 273,525,109,000 1994 Sucorejo Village, Jenu District,
Kemasan Semen Producer Tuban Regency, East Java
Gresik
PT Kawasan 65.00% Industrial 341,708,176,000 1991 Jl. Tridharma No.3 Gresik 61121
Industri Gresik Development
PT Semen Kupang 99.48% Cement - - Jl. Yos Sudarso, Alak, Tenau,
Indonesia (**) Production Kupang, NTT
PT Semen 38.28% Cement 466,951,438,000 - Jl. Banda Aceh – Medan KM 107
Indonesia Aceh (**) Producer Nomor 100, Gampong, Kampong
Baro, Kec. Pidie, Kab. Pidie 24151
PT Sinergi 100% Information 89,673,220,000 2014 Graha Irama (Indorama) Building,
Informatika Semen System lt11, Suite G, Jl. HR Rasuna Said
Indonesia (SISI) kav. 1-2, Jakarta Selatan 12950.
PT Semen 100% Investment 6,472,445,000 - The East Tower, lt. 18, Jln. Dr. Ide
Indonesia Anak Agung Gde Agung kav. E.3.2
Internasional nomor 1, Jakarta 12950
PT Varia Usaha 73.65% Trading, 1,753,895,831,000 1974 Jl. Veteran Nomor 129, Gresik
transportation, 61122 East Java
loading and
unloading
services and
construction
PT Krakatau Semen 50.00% Cement raw 242,366,162,000 2014 Krakatau Bandar Samudera
Indonesia material Area, Jl. Mayjen S.Parman KM
production 13 Cigading, Ciwandan, Cilegon
Banten
PT Waru Abadi 73.61% Trading 270,622,006,000 1989 Jl Raya Dr. Wahidin Sudiro Husodo
no 728A Kab. Gresik
PT Varia Usaha 73.65% Transportation 43,594,380,000 1995 Jl. Veteran 171 A Gresik, Jatim
Dharma Segara Management
Service
PT Varia Usaha 73.65% Transhipment 54,080,857,000 1997 Jl. Veteran 171 A Gresik, Jatim
Lintas Segara Service
PT Varia Usaha 73.65% Loading and 64,530,834,000 1992 Jl. Veteran 171 A Gresik, Jatim
Bahari Unloading
Service
Thang Long Joint 69.57% Cement 39,852,420,000 - Head Office: No. 3 Ln., 191 Lac
Stock Company 2 Production Long St., Cau
Giay District
Hanoi, Vietnam
Telp : 84 (04) 3753-4862
Faks : 84 (04) 3836-1898
An Phu Cement 69.93% Cement 55,900,217,000 - Head Office: No. 3 Ln., 191 Lac
Joint Stock Production Long St., Cau
Company Giay District
Hanoi, Vietnam
Telp : 84 (04) 3753-4862
Faks : 84 (04) 3836-1898


SUBSIDIARIES

PT Varia Usaha 63.15% Ready mix 594,612,752,000 1991 Jl. Letjend S Parman No. 38 Waru
Beton concrete Sidoarjo
production
PT Sepatim 97.00% / Cement packing 33,050,558,000 1994 Office Address: Jln Lumba-lumba
Batamtama melalui SP and distribution No.1 Pulau Batam –
29432
Telp. 0778-412980, 412978, 412979
Fax. 0778-412978
PT Bima Sepaja 80.00%/ Cement packing 163,322,799,000 1996 Address: Packing plant
Abadi through SP and distribution Jln Alas No.1 Depan Gudang
114 Pelabuhan Tj. Priok Jakarta
Utara
Telp. 021- 4372337, 4309688,
4372338
Fax. 021-4358223
Name % Line of Business Total Assets Year of Address

Ownership (Rp) Operations
Entitas Asosiasi | Associates
PT Swadaya Graha 33.06% Developer, civil contractors, 729,788,545,000 1985 Jl. RA Kartini 25
mechanical and electrical Gresik 61122, East
contractors, workshops and Java
manufacturing, steel fabrication,
heavy equipment rental
and maintenance services,
engineering, industrial and trading
bureau
PT Igasar 12.00% Cement distribution 110,808,188,000 1971 Complex PT SP,
Indarung, West
Sumatra
Notes
(*) TLCC was acquired on 18 Dec 2012, with 2 subsidiaries:
1. Thang Long Joint Stock Company 2 -> 99.9% shares ownership by TLCC
2. An Phu Cement Joint Stock Company -> 99.9% shares ownership by TLCC
All subsidiaries are under preparation for the construction new cement mills.
(**) Under construction stage
Annual Report 2016

91
SHARES LISTING
CHRONOLOGY
Nominal/ Total Oustanding
Date Description Total Shares Exchange
Shares (Rp) Shares
17 May 1991 IPO 7.000 40,000,000 40,000,000 BEJ
4 July 1991 Company Listing 30,000,000 70,000,000 BEJ
30 May 1995 Company Listing 78,288,000 148,288,000 BEJ
2 June 1995 Right Issue 444,864,000 593,152,000 BEJ
7 August 2007 Stock Split 1:10 5.000 5,338,368,000 5,931,520,000 BEI
13 October 2008 - 9 Buyback Shares 2.919 68,032,000 5,863,488,000 BEI
January 2009
6-7 October 2009 Sellback Shares 6.075 68,032,000 5,931,520,000 BEI
SHARES LISTING CHRONOLOGY

The Company initially listed its shares through Initial • Stock Split 1:10 on 7 August 2007, which increased
Public Offering (IPO) or ‘Go Public’ in Jakarta Stock total shares to 5.931,520,000.
Exchange (now IDX) on 8 July 1991. Since the IPO up
to reporting year 2014, the Company has exercised • Shares buy-back and sellback between 13 October
3 corporate actions that changed the volume of 2008-9 January 2009 (buyback) and 6-7 October
outstanding shares, which are: 2009 (sellback), which eventually did not affect the
volume of outstanding shares.
• Rights Issue on 2 June 1995, which changed total
shares from 148,288,000 to 593,152,000, accompa-
nied by changes in the value of authorized capital
and paid-up capital.
CHRONOLOGY OF OTHER
STOCK LISTING
CHRONOLOGY OF OTHER STOCK MANAGEMENT/EMPLOYEES STOCK
LISTING OPTION (MSOP/ESOP)
The Company did not have other stock listing. The Company has never exercised Management Stock
Option Program/MSOP) or Employee Stock Option
Program/ESOP).


CAPITAL MARKET
SUPPORTING INSTITUTIONS
Name & Address Services Fees Assignment Period
PT Datindo Entrycom Share Registrar Year 2016 2016
Puri Datindo Share Registrar of
Belakang Wisma Diners Club Secondary Market, period of
Jl Jendral Sudirman Kav. 34-35, Jakarta Feb 2017 –
10220 Jan 2018
Tel. (62-21) 5709009 Rp 40.000.000
Fax (62-21) 5709026
e-mail : www.datindo.com Fiscal year 2015:
Final Dividend
Administration Service
Fiscal Year 2015 Rp
208.002.500
By Event Org Annual GMS
Fiscal Year
2015
Rp 73.000.000(2*)
Annual GMS by Share

Registrar Rp. 39.700.000
Notary Office Notary Rp126.000.000 June-May 2016
Leolin Jayayanti, SH
Jl. Pulo Raya VI/I, Keb. Baru - Jakarta 12170
Telp. (62-21) 727 87 232
Fax. (62-21) 723 4607
Notary Office & Land Titles Registrar Notary Office

Hana Tresna Widjaja, SH. & Land Titles
Wijaya Grand Center Blok F.45 Registrar
Jl. Dharmawangsa Raya, Jakarta Selatan
12160
Telp. (62-21) 7245187
Fax. (62-21) 7202973
Banks Banking
PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia (Persero) Tbk
PT Bank Rakyat Indonesia (Persero) Tbk
PT Bank Central Asia Tbk
PT Bank CIMB Niaga Tbk
PT Bank Danamon Indonesia Tbk
Annual Report 2016

93
AWARDS &
CERTIFICATIONS
AWARDS INSTITUTIONS / EVENTS
Ranked 1st Employer of Employer Of Choice Award
Choice (EOC), from Top 10 Hay Group with SWA Magazine
Employer of Choice 2015
EOC shows the Company’s capability in
Human Resource Management (MSDM)
compared to other Companies.
Top 10 Finalist of Best Asia Sustainability Reporting

Awards 2015
Community Reporting -
Sustainability Report of Asia CSRWorks International –
Singapura
“The Best Indonesia Green Indonesia Green Awards 2016 by

La Tofi School of CSR
Awards 2016”
The Company received awards in
six categories: Water Resources
Preservation, New and Renewable
Energy Conservation, Biodiversity
Development, Pioneer of Pollution
Prevention, Integrated Waste
Processing Development, and
Pioneer of Industrial Hazardous Waste
Management.
Indonesia Original Brand 2016 SWA Magazine

as well as Living Legend Brand
2016
Based on IOB index (Indonesia Original
Brand), Semen Gresik recorded the
highest index in cement industry.
Ranking 7 Best Managed Asia’s Best Companies 2016

Companies by Finance Asia
Asia's Best Companies is a polling
survey-based award on investors and
analysts in the Asia Pacific region that
have entered the 16th year.


AWARDS & CERTIFICATIONS

Top Brand Award 2016 Frontier Consulting Group,
Jakarta
Category:
Cement and Super White Cement
Products.
Top Brand Award is an award presented
to products with superior brand
performance, measured from 3 main
parameters, namely top of mind, last
usage and future intention
TOP IT & TELCO Award TOP IT & Telco Award 2016
This event is aiming at promoting the By Itech Magazine

Companies in Indonesia to develop
Information Technology to support the
company’s business
The best BUMN Supply Chain ”BUMN Branding and

BUMN Award 2016 Marketing Award 2016”
Category By BUMN Track Magazine

Marketing of SOEs
Golden Trophy Awards Infobank BUMN Award 2016
Based on Growth and Key Ratio Infobank Magazine

performance research on 122 SOEs
during the period of 2011-2015
SEMEN INDONESIA Indonesian Human Capital

PROSPERS AT IHCS AWARDS Studies (IHCS) 2016 event
with the theme of dengan
2016 ‘Employee Engagement: The
Drive To Key Result’
IHCS is the information exchange and By
benchmarking event between human Dunamis Human Capital AND
capital practitioners, especially in the Business News Indonesia
current knowledge and information era. Magazine
Annual Report 2016

95

Top 50 Best Companies Forbes Forbes Indonesia Magazine
2016
Based on consistent sales
performance, net profit, and return
on equity during 3-5 year
Indonesia Best Performance “State Owned Enterprise

BUMN 2016 Seminar and Leadership
Award 2016”
Kategori Aneka Industri
By: IPMI International
Business School and SWA
Magazine, Jakarta
The Best Good Corporate Economic Review Magazine,

Governance of Public Jakarta
Companies in Indonesia in the
Basic Industry and Chemical
sector.
Komponen penilaian penghargaan
adalah Laporan Keuangan tahun 2015,
Laporan Tahunan 2015, kelengkapan
infrastruktur GCG, kelengkapan soft
structure GCG, dan keterbukaan
informasi perusahaan.
BEST CEO 2016 Most Admired CEO Award

2016
Rizkan Chandra, President Director of
Semen Indonesia is awarded as the Warta Ekonomi Magazine,
Best CEO Jakarta



The Most Trusted Companies “The Most Trusted
2016 Companies 2016”.
Corporate Governance
Perception Index 2015
SMI received two awards:
1. “Indonesia Trusted Company By SWA Magazine cooperated
Based on Corporate Governance with The Indonesian Institute
Perception Index” for Corporate Governance
2. “Indonesia Most Trusted Company (IICG), Jakarta
Based on Investors and Analysts
Assesment Survey”.
Corporate Governance Perception

Index (CGPI) is an annual research and
rating program on Good Corporate
Governance implementation by Public
Companies, SOE, Regional-Owned
Enterprises, Banking and private
companies.
CERTIFICATION OF MANAGEMENT SYSTEMS

NO. NAME OF SCOPE CERTIFICATION START VALIDITY PERIOD CERTIFICATE
CERTIFICATION INSTITUTIONS CERTIFICATION NUMBER
1 ISO 9001:2008 PLANT GRESIK & SGS year 1996 12 September 2015 - 12 ID03/00267
TUBAN September 2018
2 ISO 14001:2004 PLANT GRESIK & SGS year 2001 14 September 2015 - 14 ID08/01013
TUBAN September 2018
3 OHSAS 18001:2007 PLANT GRESIK & SUCOFINDO year 2008 17 December 2014 - 16 OSH 00056
TUBAN December 2017
4 SMK3 PLANT GRESIK & SUCOFINDO year 1998 14 May 2014 - SMK3.2014.SK-
TUBAN 14 May 2017 203
5 ISO 17025 LAB R&D & QUALITY KAN year 2007 25 March 2015 - LP-151-IDN
ASSURANCE 24 March 2019
Annual Report 2016

97
EVENT
HIGHLIGHTS
1 March 2016
Signing of MoU with PT Pelayaran Nasional
Indonesia (Persero)
PT Semen Indonesia (Persero) Tbk signed the

memorandum of understanding with PT Pelayaran
Nasional Indonesia (Persero) and other 22 SOEs. This
SOEs synergy cooperation was aimed at guaranteeing
the cement and cement raw material logistic
transportation.
17 March 2016
Establishment of PT Semen Indonesia Aceh
(SIA)
PT Semen Indonesia (Persero) Tbk signed the MoU

with PT Samana Citra Agung to establish PT Semen
Indonesia Aceh, a joint venture for the capacity
development in the Northern coast of Sumatra. The
establishment of PT Semen Indonesia Aceh is part
of productive investment in order to maintain the
company’s competitive advantage.
22 April 2016
Signing of MoU with Pertamina, Surveyor Indonesia and
Bank BNI
- PT Semen Indonesia (Persero) Tbk signed the memorandum

of understanding on Potential Development of Oil and Gas
Business Cooperation with PT Pertamina (Persero)
- PT Semen Indonesia (Persero) Tbk signed the memorandum of
understanding on Survey, Inspection and Consultancy Services
with PT Surveyor Indonesia (Persero).
- PT Semen Indonesia (Persero) Tbk obtained Working Capital
Loan Facility totaling Rp 1 trillion from PT Bank Negara
Indonesia (Persero) Tbk (BNI). This Loan facility will be used for
the company’s general purposes and operations.


EVENT HIGHLIGHTS
13 May 2016
The Annual General Meeting of Shareholders PT Semen
Indonesia (Persero) Tbk.
Several strategic resolutions were taken from the Annual General

Meeting of Shareholders PT Semen Indonesia (Persero) Tbk held
on 13 May 2016 in Jakarta. Among them were the appointment
of Rizkan Chandra as the President Director of Semen Indonesia
replacing Suparni, the appointment of Budi Siswoyo as Director of
Business Development and Business Strategy, as well as Darmawan
Junaidi as Director of Finance. Other resolutions were the
appointment of Djamari Chaniago and Hambra as Commissioner.
The changes in the composition of the commissioners and directors
became a new spirit for the company in pursuing an increasing
fierce competition.
9 June 2016
Establishment of PT Semen Indonesia Internasional
To ensure successful implementation of regionalization strategy in the marketing area, the Company established
PT Semen Indonesia Internasional, an investment company engages in cement commodity trading, to support the
Company’s products marketing to all regional areas in Asia and Australia.
10 June 2016
Signing of Loan Facility with Bank Mandiri
PT Semen Indonesia (Persero) Tbk signed the Bilateral

Investment and Working Capital Loan Facility with Bank
Mandiri totaling Rp3.6 trillion.
30 June 2016
Signing of MoU with PT Pelindo I
PT Semen Indonesia (Persero) Tbk signed the memorandum of

understanding on distribution and logistic business development with
PT Pelindo I.
Annual Report 2016

99
EVENT HIGHLIGHTS
30 July 2016
SOE for the Nation
Semen Indonesia participates in supporting the SOE for the Nation

Program, which was inaugurated by the President of Indonesia,
Joko Widodo. The event was held in Kupang Nusa Tenggara Timur.
The Company grants home renovation for the former-servicemen,
Teaching by SOEs, Fostering inmates, Provision of clean water
facilities, construction of daycare centers in the markets, coaching
of former national athletes, fostering remote villages and borders,
bazaar markets and healthy walks.
16 August 2016
Signing of Equity Investment of PT Semen
Indonesia (Persero) Tbk In PT Semen
Kupang Indonesia
PT Semen Indonesia (Persero) Tbk signed a share
purchase agreement of PT Semen Kupang Indonesia.
This agreement serves as one of the corporate action
aiming at maintaining and building the company’s
competitive advantage, specifically in the capacity
development in Nusa Tenggara.
7 September 2016
Capital Injection and Changed the Name of SGG Prima Beton to PT Semen
Indonesia Beton.
As part of expansion realization to downstream product segment, the Company has increased its
authorized capital and changed the name of SGG Prima Beton to PT Semen Indonesia Beton. The
Company further acquired PT SIB through the purchase of portepel stock, hence the ownership by the end
of the year was 99,99%.


EVENT HIGHLIGHTS
17 October 2016
Signing of MoU with Madina Cement Industries
As an effort for market expansion within the Asia region, Semen

Indonesia signed the MoU with Madina Cement Industries Ltd
Bangladesh on 17 October in Jakarta.
This signing was an initial step of business cooperation and strategic partnership between the two companies.
In addition, the agreement is a manifestation of Semen Indonesia’s aims at expanding its market share within
the Asia region, following its action in 2012 by acquiring Thang Long Cement Joint Stock Company (TLCC)
Vietnam.
1 November 2016
Takeover of PT Varia Usaha’s Share Ownership.
One of the effort to reduce the transportation costs of the cement industry is to rearrange the entire chain
distribution of raw materials and products. To that end, on 1 November 2016 the Company has taken over the
share ownership of PT Varia Usaha through Semen Gresik Pension Funds, making the Company’s total share
ownership to 73.65% in PT Varia Usaha. Through PT Varia Usaha, the Company further develops logistic and
port management business.
11 November 2016
Semen Indonesia Develops Pinge Tourism Village,
Tabanan, Bali
Semen Indonesia participates in the development of Tourism Village –
Pinge, Tabanan, Bali. The inauguration of this tourism village was held
directly by the SOE Minister, Rini M. Soemarno. Semen Indonesia was
installing the environmentally friendly concrete axle products in the
road to the village area and fast dry concrete in the Village Economic
Center area.
15 December 2016
Signing of Joint Borrower Facility with CIMB Niaga
PT Semen Indonesia (Persero) Tbk signed the Joint Borrower Loan
Facility for Semen Indonesia Group totaling Rp1.5 trillion with
CIMB Niaga.
Annual Report 2016

101
MANAGEMENT
DISCUSSION
AND ANALYSIS
105 Industry Review 184 Financial Performance
Review
106 Corporate Transformation
200 Statements of
111 Business Development Consolidated Financial
Strategy Position Highlights
115 Business Review 216 Cash Flows
126 Marketing 218 Solvency
128 Project & Engineering 221 Investment Policy
143 Production & R&D 224 Material Information
157 Performance Review of 231 Changes in Relevant Laws
Subsidiaries and Regulations and its
173 Performance Review of Impact to the Company’s
Subsidiaries Performance
173 • Cement 233 Changes of Accounting
Standard and its
176 • Non Cement Disclosures
183 •
Other Business
Segments
Balerang bridge in Batam, Riau Islands

was constructed with Semen Padang products
MANAGEMENT DISCUSSION
AND ANALYSIS
Employees activities in the machine workshop of Semen Indonesia

in Tuban Mill, East Java
The implementation of 3+1 Strategy to address challenging

business condition has enabled the Company to outperform
other industry players in general in 2016.
The Company is committed to ensure performance improvement

in years ahead by realizing several strategic plans that secure
sustainable growth, including building new plant, strengthening
cement business and cement downstream products as well as
expanding and fortifying marketing networks, in order to anticipate
the economic growth opportunity and the increase of cement and
cement products demands in the future. ”


MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC & INDUSTRY The Government effort in boosting domestic business
REVIEW AND BUSINESS condition through deregulation programs also
OUTLOOK prompted positive results. Ease of investment rate

in Indonesia jumped to level 91 (from 115 in 2015)
Indonesia’s Economy in 2016 along with improvement in corruption index, from
The growth level of global economy in 2016 did not 88 to 107 (2014). The Government also put effort to
meet expectation. The weakening of cross-countries improve the State Budget (APBN) in order to enhance
goods demand, the increasing global financial market state expenditures capability that would support the
volatility and the slowing down of developed countries economic growth by realizing the Tax Amnesty program
economic growth caused the downturn. The Fed’s plan since May 2016 until September 2017.
to increase interest rate and the risk from the changes
of economic policy in the United States led to the The Tax Amnesty program succeded in recording
increasing financial market volatility. Meanwhile in the declared assets figure of more than Rp4,000 trillion
Asian region, the weakening of economics growth in and this figure had reached Rp106 trillion by December
China, Japan and India were major contributors to the 2016. This program will be followed by Tax Reform
slowdown of Asia Pacific trade flows. implementation that will improve Indonesia tax ratio
so that the Government will have better capability in
Despite the less-optimized growth, there had been supporting the national economic growth through state
positive progression since the end of 3rd Quarter 2016. expenditures. These conditions increased the outlook
The economic condition in big countries in Asia, such on Government credit rating to current Investment
as China, Japan and India had shown improvement Grade by the international rating institution Fitch
due to consistent economic stimulus. This led to the Ratings. Furthermore, by early February 2017, other
increase of demands for primary mining and plantation rating agency, Moody’s Investors Service (Moody’s)
products, such as coals, nickel, tin, and CPO – and improved the Outlook Sovereign Credit Rating
price improvement. The United States Presidential Indonesia from stable to positive, as well as affirming
Election result also made speculation on its foreign Indonesia credit rate in Baa3 (Investment Grade).
economy policy more clearly.
The infrastructure development intensified in 2016
This condition significantly impacted on Indonesian due to the diversion of fuel and electricity subsidies,
export performance that has been highly dependable increasing Government expenditures portion in
on primary plantation and mining products. The domestic expenditure structure. Improvement in
selling price improvement of these primary products infrastructure and macro monetary policy also
encouraged improvement in the foreign trade balance. encouraged domestic consumption to increase. In
addition to that, the 2016 State Budget revision and
2017 State Budget development under the credible
control of new Ministry of Finance have raised business
world and consumers trust.
Annual Report 2016

105
This overall domestic condition enabled Indonesian The domestic consumption in years ahead will continue
economy to grow moderately, by 5.02% from 4.79% in to be the backbone of Indonesian economic growth.
2015. This growth also supported by improved macro The domestic consumption-based economic growth
economic conditions such as well-maintained inflation has been proven to stir Indonesia away from negative
rate by 3.02% from 3.35%, foreign exchange reserves impacts of larger global economy. By considering
reached US$116.4B from US$105.9B and new these macro indicators and policies applied by the
reference interest rate of 7 days Repo Rate stabilized Government, it is estimated that the trend of domestic
by 4.75% while Rupiah exchange rate strengthened to consumption-based economic growth, which is
IDR 13,436/US$ from 13,795/US$ at the end of 2015. currently supported by increasing real investments, will
continue in the next few years.
Indonesian Macro Economics Indicator
9.00 8.38 GDP
In the years ahead, along with the realization of several
8.36
8.00
6.96
7.75 7.50 BI Rate basic infrastructure development projects targeted to
7.00 6.50 6.50 6.50 6.23 7.50 Inflation
5.58
potential areas, including maritime potential through
6.00
6.10 6.00 5.02 5.02
5.00 4.50 5.75 the development of ports; domestic consumption will
4.79 4.75
4.00 4.30 grow and will be followed by the growth of national
3.79
3.00 3.02
2.78
3.35 production capacity to balance that demand. As such,
2.00
Indonesian economy will continue growing and demand
1.00
0.00 of national cement will continue to increase.
2009 2010 2011 2012 2013 2014 2015 2016
INDUSTRY REVIEW
140 The limited economic realization in 2016 has caused
130
116.6
126.6
116.6 117.6
115.4 contraction of cement demand in retail consumption,
120
107.5 116.36
110
106.5 111.3
117.6 which led to the decreasing in overall domestic demand
111.9
100 99.4
105.93
Int’l Reserves following the trend of declining demand since the past
96.2
(US$ Miliar)
90 two years.
80 Cons
Confidence
70
60
66.1 It has been recorded that since 2014 Indonesian cement
50 business has continued to be under the pressure of over
2009 2010 2011 2012 2013 2014 2015 2016
capacity and the slowdown of consumption growth. In
2016, that pressure increased because of the growing
An interesting fact from the 2016 economic condition
supply from new factories as well as foreign market
was the acceleration of export value in the 4th Quarter
supply, while demand for cement in domestic market
of 2016 along with the increasing selling price of
decreased by -0.6%. As a result, the average utilization
Indonesian primary products. This indicated the turning
rate of cement producers in Indonesia continued to
point of the slowdown to acceleration of growth.
decrease. This over supply condition is predicted to
continue until few years ahead.
Many economists have opined upon these macro
economic indicators, that Indonesian economy has
huge potential in the future in returning to the growth
path with better prospect.


This condition reflected on the following graphic and The domestic cement market also being marked with
table. the shift from cement bags to bulks, retail to industry,
which influenced the decision making in brand usage,
Comparison of capacity composition against from emotional bond to rational thinking by calculating
domestic cement demand in 2016 more on the economic value of bulk cement products.
PLANT UTILIZATION TREND (TONS) This condition is reflected on the following graphic.
120,000,000 100%
90%
100,000,000 80% 80 35%
23.4% 24.3% 25.6%
21.7%
VOLUME (MIO TON)

80,000,000 70%
0.6% 60% 60 25%
60,000,000 50%
40% 40 15%
40,000,000 30%
20,000,000 20% 20 5%
10%
- 0% 0 -5%
2014 2015 2016 2017F
Integrated Plant Capacity Domestic Demand Utilization
2014 2015 2016 2017F
Vol. BAG (Ton) Vol. BULK (Ton) Growth Bag YoY (%)
Chart 1
(Chart 3)
Pricing Trend in the last 3 (three) years period:
Market demand for bulk cement being predicted to

DOMESTIC NET AVERAGE PRICE (RP/TONS)
increase along with realization of infrastructure projects
supported by Government policy and budget, as
-6.5%
well as development of cities and industry/business
centres. This condition implicated the market shift from
retail market to industry market, which not only opened
new opportunity but also prompted the Company to
adjust its marketing strategy.
2014 2015 2016

Limited demand for cement in domestic market and
Average price
increasing number of new players have made product
Chart 2 marketing area limitless with growing orientation
The comparison table of capacity against national towards regional/exporting market, creating the shift
cement demand in 2016 indicates over supply position in strategy focus of Semen Indonesia from cement
of 27 million tons, which gap widen compared to the producer towards construction materials.
condition in the previous 2 (two) years (Graphic 1).
The over supply condition and decreasing demand on TOTAL EKSPOR (TON)
cement led to increasing competition level in the market 1,600,000 24%
and pressure on pricing (Graphic 2), making average 1,400,000
1,200,000
selling price of cement in 2016 corrected to -6.5%.
1,00,000
800,000
600,000
400,000
200,000
-
2014 2015 2016
(Chart 4)
Annual Report 2016

107
National Cement Production and Business Prospect of Domestic Cement Industry

Prospect The impact faced by the Company from the declining
The total national cement production in 2016 increased growth of cement demand was tremendous pressure
by 0.9% to 60,362,222 million tons from 59,761,039 on selling price, considering the new players inclination
million tons in the end of 2015. Meanwhile, the national to conduct price war. It led to below target achievement
cement consumption in 2016 decreased by 0.6% as on the Company profitability in 2016. The Company
shown on the graphic. projected that domestic selling price condition in
Indonesia in 2017 will remain under pressure. As such,
As shown in the following graphic, the growth of cement as a respond to address this business condition and
consumption in Java region in 2016 was slumped by to prepare for future growth, the Company begins to
2.9% compared to the previous year, while in Sumatra launch business development program through the
increased by 3.6%, Sulawesi increased by 13.2%, Bali implementation of “3+1 Strategy”.
and Nusa Tenggara increased by 1%, East Indonesia
increased by 6% and Kalimantan decreased by 12.3%.
Growth of Cement Consumption by Region (%)

20.0
15.0
10.0
5.0
-
Su
Ja
Ka
Su
Ba
In
N
as
(5.0)
do
w
m
lim
la
li
i
a
-
w
on
at
an
es
N
es
e
al
us
ra
ia
ta
a
n
(10.0)
Ti
Te
m
ng
ur
ga
(15.0)
ra
2014 2015 2016 2017F


As previously discussed, the Government of Indonesia would grow in the average of 5.1-5.5% with growth rate
currently has better fiscal room to support basic in 2017 predicted at 5.1%. The domestic consumption
infrastructure development, which is previously limited growth and realization of infrastructure projects are
due to enormous fuel subsidy. The agreed 2016 estimated to significantly contribute towards this
Revised State Budet Plan has enabled the Government economic growth.
to concentrate on realizing basic infrastructure
development program, including highways and port With estimation of increasing economic growth,
facilities, which have been parts of many inhibitors national cement consumption both directly coming
of real investment flow and decreasing the potential from infrastructure project activity and as a continued
growth of national economy. impact of growing economic activities caused by the
realization of these projects, will continue to increase.
The realization of these infrastructure projects in 2016
and following years will eventually increase the national Taking into account this latest condition, the Company
growth rate. The consensus of national economist predicts national cement consumption in 2017 will
stated that the national economy in following years grow by 5.0%.
Cement Consumption by Region (Tons)

70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
Su
Ja
Ka
Su
Ba
In
N
as
do
w
m
lim
la
li
io
a
-N
w
ne
at
an
na
es
er
si
us
ta
l
i
a
a
a
n
Ti
Te
m
n
ur
gg
ar
a
2014 2015 2016 2017F
Annual Report 2016

109
Prospect of Regional Cement Consumption

Since 2015, the establishment of ASEAN Economic Community (AEC) has been
integrating all economic potentials of Southeast Asian countries into new single
economic zone. Total population of this region is around 600 million people, with
Indonesian people dominating around 40%.
The economic zone integration will enable dynamic trade traffic among AEC
members, leading the expectation on higher economic growth in the region from the
previous period. Higher economic growth is expected to positively impact on cement
demand growth that supports the physical development across the region. Several
infrastructure developments plans in connecting regional growth centers has been
announced and expected to be realized in the near future, hence to enhance cement
demand in the region.
Considering their natural resouces and human resources, the economies of several
countries in ASEAN, such as Indonesia, Vietnam, Malaysia, Philippines and Thailand
are reckoned having all requirements to grow rapidly. In acknowledging the cement
consumption graphics of these ASEAN countries, it is estimated to increase rapidly
along with their economic growth. As such, the prospect of cement consumption in
regional market is also predicted to improve in the next several years.


CORPORATE
TRANSFORMATION
The intensification of Tuban facility management
with KSO model is part of Corporate
Transformation Process in becoming an exclusive
Strategic Holding, a corporate mitigation action
to face future business condition and establishing
Semen Indonesia as leading player in the regional and
Indonesian cement industry”
Annual Report 2016

111
CORPORATE TRANSFORMATION
Changes in the Strategic Holding Implementation

In following up the Corporate Transformation process, the Company takes fun-
damental changes in Strategic Holding Implementation, which are:
1. Changing the Company’s name which will serve as Strategic Holding
Functional Strategic
Holding Holding
2. Separating the Roles and Functions of Operating and Holding
3. Separating the Roles and Functions of Operating and Holding
Roles and Functions
Strategic
Operating
Cement bulk loading activity at Semen Indonesia,

Tuban Mill, East Java


4. Standardizing the governance of Operating Com- • The name reflects the Company’s identity as an
panies (i.e., Blueprint, GCG, Management System) integrated corporate group that becomes the
5. Adjusting the Business Process (i.e., by imple- pride of Indonesian people.
menting Shared Service Function)
Towards a Growth-Ready Strategic Holding

Strategic Holding
Operational Operational Fungtional
Company Holding Holding
International
Holding
1991 1995 2005 2012 2017

Independent Post-Acquisition Consolidated & Strategic Strategic Holding
Company Synergy Holding for Business
Expansion
bjectives Measures
üü Strengthening the Company’s position in 1. Changing the Company’s name to Strategic Holding
facing changes and competition Company (HoldingCo)
üü Separating and optimizing the functions of 2. Establishing new companies as Operating Company
Holding and Operating Companies (OpCo)
üü Maximizing group synergy 3. Separating the roles and functions of OpCo and HoldCo
üü Aligning corporate perception and culture 4. Standardizing OpCo governance
üü Aligning corporate performance 5. Adjusting business process
Semen Indonesia, The Name that Unifies All The Implementation of Strategic Holding, Solid
Group’s Potentials Foundation Towards Leading Growing Cement
Semen Indonesia as a name used by the Company Company
is within the consideration of several crucial aspects, In following up the realization of strategic holding
which encompasses the following: function, the Company continues in refining
• The name reflects the group’s ambition in its organization management blueprint and its
maintaining and increasing its leadership in the implementation across the Group.
national market as well as regional presence
expansion. The Company’s organization management blueprint
• The name embraces national characteristic as a is further interpreted through the development of
company that embodies all operating companies Guidance and Procedures that is integrated across the
in Indonesia. Group.
• Through the name, history and tradition of each
operating company continued to be respected.
Annual Report 2016

113
Operational Cooperation of Semen Indonesia structure. They also take strategic roles that related to
and Semen Gresik operational management and work under the President
As the establishment of PT Semen Gresik as a separate Director, Production and Research Development
subsidiary and to manage the existing operational Director, Commercial Director and Finance Director.
function in the Company, the Company will be focusing
more on increasing the benefits of better synergy The top management of Semen Gresik holds the
through the cooperation enhancement between positions as Executive Vice President (EVP) under the
operating companies. President Director and Senior Vice President (SVP)
under relevant Directors.
Semen Gresik manages the existing plant in Tuban
using the KSO model, while new plant in Rembang In order to make KSO successful, the Company
is managed like other operating units that have been conducts comprehensive review related to KSO
managed by Semen Gresik since the beginning. Operating Model and Business Process. The Corporate
Transformation team is established to monitor and
In the preparation of transferring the Tuban Mill unit ensure successful implementation of KSO. In the last
management to KSO management model, Semen phase of KSO Go-Live, the Corporate Transformation
Gresik’s top management is currently assigned to be team takes the role as a Change Agent by socializing
involved in managing the operational production unit the changes from the KSO implementation.
and is immersed into the Company’s organization
1 January 2017
Go-Live KSO
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN
2016 2017
Steps towards KSO Implementation
Manual and procedure preparation √
Group-wide manual and procedure migration and assessment √
KSO Model operating study √
KSO business process study √
Change management and Go Live preparation √
Socializatio, workshop, and publications √
Considering that the realization of preparation program has been conducted thoroughly, well-measured and well-planned; the
future management of new plants in Rembang and Tuban is believed to work well in accordance with the determined targets.


BUSINESS DEVELOPMENT
STRATEGY
We responded the tighter
competition of domestic cement
products by developing new
line of business from existing
cement business chain. We have
developed new lines of business
by putting forward synergic
approach with existing business.
As a result, we have recorded

improving performance in cement
business segment as our main line
of business and 77% increase
of non-cement business revenue
reaching Rp1.4 trilllion. We
believe the contribution of non-
cement revenue will continue to
increase in the future.”
BUDI SISWOYO
Strategy Business & Enterprise Development Director
Annual Report 2016

115
BUSINESS DEVELOPMENT STRATEGY
Program and Activity Highlights:
• The Company continued to review comprehensively in order to develop cement business model by putting
forward synergy and optimization of existing resources. Acknowledging its great strengths, the Company
continued strengthening and organizing line of business across value chain by referring to 3+1 Strategy
framework. The line of business in value chain is categorized into four groups, which are Upstream,
Midstream, Downstream and Adjacent. Business development concept by the Company was implemented
through business and geography portfolio development.
• Currently, the Company has recommended development of Midstream line of business, which encompasses
the construction of new mills in Aceh and Kupang to anticipate increasing demand of cement in the future.
• In Upstream line of business, the Company is completing the Slag Grinding Mill which product will be one
of main raw materials of cement slag that categorized as green cement. Meanwhile on packaging, the
Company has encouraged PT IKSG to enter the non-cement packaging and corrugated box business.
• The development of downstream line of business is implemented by PT Semen Indonesia, which currently
has a subsidiary Varia Usaha Beton, one of a leading concrete company in Java and being encouraged
continuously to develop bigger capacity and market coverage. In addition, the Company has also started
to develop Building Material business as part of downstream line of business.
• Considering logistics as one of competitive values in the future, the Company has become main shareholder
of PT Varia Usaha and will transform it to solid logistics company, engaging in both transportation of cement
as well as coal and management of ports owned by Company. As part of Adjacent line of business, the
development include Logistics followed by trading development through Semen Indonesia International,
construction, Information Technology and industrial area development.
In 2016, the production capacity continued to increase This challenging business condition was also a result
along with the starting operation of new cement plants of declining cement domestic market growth by -0.6%.
in Indonesia, both from domestic and foreign players, In addressing this condition and anticipating future
leading to significant increase of domestic capacity. growth opportunity, the Company believed strategy
This condition was not balanced by the increase of development was necessary to be able to maintain
domestic demand. As a result, competition became and even win the business competition, by optimizing
tighter because of oversupply of cement, which led to the Company’s excellence in creating new source of
pressure on cement selling price. growth.


As such, the Company developed and established These pillars are supported by strong System and
short term and long term corporate strategy - “3+1 Structure, People and Culture to achieve Commercial
Strategy”. Excellence (Active Channel Management, Customer
Relation Management, and Brand Management).
The main objective of this strategy development and
implementation is to achieve the Company’s Vision, LONG TERM STRATEGIC PLAN
which is to be a leading international cement company Based on ASI records, up to the end of 2016, private
in Southeast Asia. and foreign companies dominated 55.3% of national
To be A Leading
International Cement Company in
Southeast Asia
Commercial Excellence
Active Channel Management, Customer Relation Management, Brand Management
Commercial Material Adjacent Business Regional Expansion

(Cement, RMC, Aggregate, etc.)
• Capacity Management • Distribution & Retailer • Importing Countries

• Quality Management • Logistic Services • Exporting Countries
• Green Management • IT Services • Close Proximity
• Energy
• Mining Service
Cost Transformation
Supply chain Optimization, Operational Efficiency, Corporate Service Cost Transformation
System and Structure

GCG, Business Process Management, ICT, Organization Structure, Capital Structure
People and Culture

Talent Management, Development Program, CHAMPS
Diagram 1: 3+1 Strategy
Moving forward in 2017, the Company has established cement industry, while 44.7% controlled by cement
the direction of corporate strategy called CHT (Customer State-Owned Enterprises, which include Semen
Oriented - Strengthening Holding - Transformation), Indonesia, Semen Baturaja and Semen Kupang.
which aimed at transforming the Company from While national cement sales declined slightly in 2016,
production oriented company to customer oriented the Company has projected cement demand will
company supported by 3 pillars + 1. The three pillars continuously grow in the future.
are Construction Material, Adjacent Business, and
Regional Expansion, as well as Cost Transformation Several factors influencing cement demand growth are
that includes: Supply Chain Optimization, Operational elaborated below.
Efficiency, Corporate Service Cost Transformation.
Annual Report 2016

117
First, Indonesia large population with high growth rate

REALIZATION OF BUSINESS
is key potential drivers in increasing cement demand.
DEVELOPMENT WITH
OPTIMIZED VALUE
Second, the realization of government and private
The Company is committed to developing its business
expenditures in several infrastructure projects in
by maintaining sustainable growth as part of corporate
implementing Nine Agenda of Joko Widodo-Jusuf Kalla
transformation. The objectives of strategic missions in
or “NAWA CITA”.
the business development include increasing revenue
growth, increasing competitiveness with existing
Third, cement consumption per capita in Indonesia
business, strengthening intergroup performance
reaches 243kg per capita, which is still under the
that have large potential as new sources of revenue
average cement consumption per capita of especially
and added values for the Company. Understanding
ASEAN countries, such as Malaysia (751kg per capita),
this significant power, the Company continues
Vietnam (661kg per capita) and Thailand (443kg per
strengthening and managing lines of business across
capita). This gives growth opportunity for cement
value chain by referring to 3+1 Strategy. The lines
demand in the future. In 2016, cement industry
of business in value chain are categorized into four
investment in Indonesia reached IDR 15T, which means
groups, which are Upstream, Midstream, Downstream
cement industry is still attractive for domestic and
and Adjacent.
foreign investors.
The upstream business currently owned by the

Fourth, the long-term prospect of Indonesian economy
Company encompasses main raw materials mining,
will continue to grow. Eventhough several countries
coal trading, packaging for cement and granulated
around the world experience slowdown, Indonesia’s
blast furnace slag (GGBFS) grinding, which is one of
growth remains relatively high and will encourage the
raw materials in producing green cement.
increase of cement demand.
Meanwhile, the Company categorizes cement business

Fifth, Indonesia remains the destination for investment
to midstream business and is currently as the core
both in industry sectors and basic infrastructure access
business.
development, which will drive the economic potential
across region and will increase cement demand.
The downstream business is the Company’s spearhead
in winning the competition. Although the Company
Sixth, the Company as international cement company
currently owns only Ready-Mix Concrete business,
taps on new market potentials especially in developing
the Company is preparing new line of business in
ASEAN countries and South Asian countries, such
this group, namely cement-based and precast-based
as Bangladesh, Myanmar, Laos and Cambodia while
building material.
maintaining other markets in the ASEAN countries.
In addressing the potential growth of cement

consumption, the Company has established Strategic
Objectives 3 + 1 as shown in Diagram 1.


In strengthening each line of business, the Company Based on the combination of excellence in existing
focuses on reinforcing and organizing the Adjacent business and support of global standard human capital
business. The Company currently owns the Adjacent from SICC, the Company launched the formulation of
business, which encompasses Distribution and business cluster as part of sustainable business growth
Transportation, Industrial Area, Construction, Trading with quality performance in the long term. The realization
and Information Technology. of this aspiration will clear a way towards a new level
of performance for Semen Indonesia in the future.
These four lines of business continuously synergizes This will deliver the Company to becoming leading
and driven by high level of competitiveness to win the international cement company in the Southeast
competition in each of their markets. The Company Asia with cement industry as its core business and
believes that strong synergy among these groups will supported by business groups that closely relates with
create optimized value and eventually will win the cement industry operational activity.
competition.
The strategic mission of business development can be

illustrated as follows:
EXTERNAL EXTERNAL EXTERNAL

MARKET MARKET MARKET
OPTIMAL
VALUE
UP MID DOWN
STRAM STRAM STRAM
SEMEN
INDONESIA
ADJACENT
Among Group Transaction External Transaction

AS A
WINNER
EXTERNAL
MARKET
Diagram 2 Relationships Between Business Groups
Business development is implemented based on the In realizing this long-term aspiration, the Company
accumulation of existing knowledge with the support has begun the advanced corporate transformation
from individual competency enhancement, which is a phase, by strengthening the synergy foundation of
result of SICC activity as Semen Indonesia Center of Holding Company activities in cement industry and
Excellence. The development is also carried out based other subsidiaries activities that have been supporting
on consideration of synergy with existing business the Company operational activities. The strengthening
by ensuring optimization of products marketing and of foundation includes several aspects: organization
benefits for existing business. structure, working system, performance assessment
standard, development direction, etc.
Annual Report 2016

119
Overview of business group development in Semen In addressing future challenges, the Company focuses
Indonesia Group from future business chain is in developing midstream line of business as well as
described in the following section. all lines of business in the value chain. The Company
continues to drive all lines of business to reach larger
SYNERGIC BUSINESS market in addition to domestic market.
DEVELOPMENT PROGRAM
In realizing the business groups’ development plan MID-TERM BUSINESS
which will support the Company main business of DEVELOPMENT
cement; Semen Indonesia in 2016 has delivered several In order to have wider coverage, the Company
business development plans by putting forward synergy conducted synergy by utilizing the geographic
between business groups. benefits of its facility locations in three main growth
areas in Indonesia. The synergy includes several
The Company implemented business development areas, such as engineering, procurement, production,
concept through the development of business and marketing, distribution and finance that enable the
geography portfolio. The development plan is illustrated Company to suppress operational cost and increase
in Diagram 3. competitiveness.
REGIONAL
BUSINESS PORTFOLIO
ASEAN
INDONESIA
UP STREAM MID STREAM DOWN STREAM ADJACENT

Organic
2017 Inorganic BUSINESS PORTFOLIO
Diagram 3 Company Business Developments


Complementing three existing domestic areas, the UPSTREAM BUSINESS

Company is currently building the production facility DEVELOPMENT
in Aceh and Kupang. The main goal is ensuring the Ground Granulated Blast Furnace Slag
attainment of customer of cement supply. Both projects Business Development
in Aceh and Kupang are the result of cooperation with Also known as Slag Grinding Mill KSI, a production
local partners in sharing the risks. development of slag powder for supplying Cigading
Cement Plant. The future cement production has
The development of cement plant in Aceh is also one of certain benefits since it is under the green cement
the alternative expansions of new cement mills for SMI category, which is suitable for swampland and corrosive
in fulfilling cement demand in East Sumatra areas and resistant. This plant’s product will dominate Indonesian
is expected to cut off the distribution channels, which market and uses slag raw materials - the byproduct of
have been supplied by Indarung plant. The capacity steel production process. This development project is
has been planned to reach 3 million tons per year. The still ongoing with the progress reaching 60.32%.
plant is located in Pidie District. The plant development
plan in Aceh utilizes joint venture scheme between SMI Packing Business Development
(87.7%) and PT Samana Citra Agung (12.3%) with the The Company currently has 3 cement packing units for
investment value of ± Rp 5.8 trillion. 3 cement producers in Tuban, Padang, and Tonasa.
Align with the growing business and economic scales,
In addition to cement plant development in Aceh, SMI the Company has considered to increase the capability
has also prepared to build cement mill in Kupang with of these units by enabling them to produce general type
the capacity of 2 million tons per year and investment of packaging for sale in the free market. The Company
value of Rp 3.9 trillion. The cement plant is located has also been encouraging this line of business to enter
in the West Kupang Sub-District, Kupang Regency, the non-cement industry such as corrugated box.
Nusa Tenggara Timur Province. The shareholders of
Semen Kupang Indonesia consist of SMI (95.2%), DOWNSTREAM BUSINESS
Nusa Tenggara Timur Province Government (4.8%) and DEVELOPMENT
Semen Kupang (0.1%). Ready Mixed Concrete Business Development
Aligned with the Company transformation to Strategic
In an effort to realize the goal to be customer oriented Holding Company, the realization of several synergy
company and increase the distribution efficiency, the programs will be intensified allowing the synergy
Company established two cement packing facilities of all potentials owned by subsidiaries, or OpCo,
in Bengkulu and North Maluku with each capacity of both of cement industry and non-cement industry,
300,000 tons per year. These two projects have been into integrated unified entity that capable to provide
commencing since August 2016 with each investment optimum performance for the group.
value of Rp 75 billion and Rp 66 billion.
Annual Report 2016

121
The Company has been working on increasing cement 1600 Non-cement

absorption and revenue through downstream business
1.405 Revenue (Rp Billion)
1400
development by consolidating subsidiary (PT Semen 1200
Indonesia Beton) with affiliated company (PT Varia 1000
Usaha Beton). This merger is intended to be the sub- 793
800
652
holding pioneer in Ready-Mix Concrete, Precast, and 600
Aggregate area. In developing the ready-mix concrete 400
and precast business, SMI has acquired the shares of 200
PT Varia Usaha Beton (PT VUB) from Semen Gresik 0
Pension Fund (DPSG) through PT Semen Indonesia 2014 2015 2016
Beton with the transaction value of Rp 60.97 billion
and development value of Rp 700 billion. As such, PT
Semen Indonesia Beton (PT SIB) becomes the major The total non-cement revenue contribution has been
shareholder (50.90%) in PT VUB. PT SIB business targeted to increase aligned with the start of commercial
development is carried out through controlling of quarry activities of non-cement business development
and procurement of several batching plants. companies in 2016.
Building Material Business Development

Building material is one of supporting products ADJACENT BUSINESS
for cement and has positive prospect for future DEVELOPMENT
development. SMI’s plan to develop cement fiber-based Non-cement business development has been managed
downstream business has begun since mid-2016 by by optimizing the synergy of all cement business
assessing building material production companies. process chains. This way, the captive market of Semen
Indonesia Group business process has become
Cement downstream product and other non-cement revenue source for the Company as well as contributor
products business development have contributed to towards the declining cost, which is the realization of
the increasing total revenue of non-cement (revenue cost transformation.
outside slag and cement sales) for the past few years,
as illustrated in the following graphic. In addition to developing new business based on the
cement business process chain, the Company has
also developed and designing new business in order
to maintain existing business to support the long-term
sustainability.
Several business developments have been carried out

in 2016 from the business process chain and several
other supporting business prospects as explained in
the following description.


Logistics and Transportation Business Industrial Area Development

Development The Company has planned to develop industrial areas
In order to conduct distribution and transportation in former limestone and clay to be an integrated region.
cost efficiency, the Company has established one of This integration will help PT Kawasan Industry Gresik in
its subsidiaries, PT Varia Usaha as the Sub Holding managing this sector to provide improved contribution.
pioneer in Logistics area. Furthermore, the Company Similar regions will be developed in other areas.
has acquired 48.7% of PT VU’s shares from DPSG.
This acquisition occurred in 1 November 2016 with Construction Business Development
the transaction value of Rp 475.1 billion. Through The Company has planned to develop its capability
this acquisition, the Company now has a total of in construction and design area to diversify non-
73.65% shares of PT VU. PT Varia Usaha Group has 4 cement revenue. PT Swadaya Graha (Swadaya) has
business areas, including transportation, cement and the competency in this area. Swadaya currently has
building material trading, industrial goods trading and managed many developments in several Company’s
mining goods trading. Expected contribution from this construction projects. It is believed that monetizing the
acquisition is to produce additional revenue for SMI. competency in construction area will provide relatively
Future business development is directed towards improve non-cement revenue in the future.
optimization of land and sea cement transportation,
coal transport vessels management and ports Information Technology Development
management. The Company is also developing potential competency
of PT Sinergi Informatika Semen Indonesia (SISI) that
Cement Trading Business Development currently has the task to support ICT operational
In June 2016, the Company has established subsidiary and development in PT Semen Indonesia Tbk. SISI
PT Semen Indonesia International (PT SII). This continues to be developed as an institution that
company is prepared to be the regional and international capable to provide programming services as well as IT-
investment company embryo. The goal of this company based service system provider.
is to support the resiliency of cement industry and
performance growth of SMI Group by utilizing business The Company believes that the implementation of
opportunities in several countries through International synergy-based program development of all group
Trading business portfolio. Through PT SII, the members will be effective, and that it will lead to
Company strives to increase product competitiveness outstanding consolidated performance that the
through integrated supply-chain. The integrated Company can be proud of, as well as optimized
supply-chain would lead to cost efficiency; surplus/ benefits to all stakeholders.
shortage handling that ensures optimized utilization
of plant capacity; and is part of business intelligent
strategy in order to open and expand access to global
market as international company.
SMI owns 85% shares of this subsidiary while PT

Semen Padang has 15% shares, and PT Semen Tonasa
and PT Semen Gresik have each 5%.
Annual Report 2016

123
REGIONAL EXPANSION The Company’s goals in regional expansion are:

• Close distribution to main marketing area will
Cement consumption per capita in Indonesia is
create more economic cement product.
currently at the average of 243kg/capita, which is
• Realizing of company’s vision to be the leading
relatively low compared to other countries in the
cement industry player in the regional market.
region that have reached 400-500kg/capita (Thailand
• Participating in increasing role of Indonesia in the
and Vietnam) or Malaysia and Singapore that have
regional economy.
reached above 700kg/capita. Indonesia is currently one
• Decreasing national condition risk as main
of the countries in the mid-level group that strives to
marketing area through market area expansion to
accelerate its growth in order to enter the developed
regional level.
countries group in the future.
• Southeast Asia region has relatively stable
economic growth amidst the global economic
The target to be developed country can be achieved
turmoil.
through sustainable economic development. The
• As part of the effort in utilizing the business
Government has targeted the economic growth of
development potential following the enforcement
5-5.3% in 2017 and is prioritizing the infrastructure
of ASEAN Economic Community regulation.
development since 2015. As such, the potential
increase of cement demand in the future is widely
open and tangible. It provides big opportunity for the
THANG LONG JOINT STOCK
Company’s business growth as well as challenges that
COMPANY (TLCC).
In 2012, the Company had begun the development
need to be anticipated prudently.
program to Vietnam and acquired cement producer
company in Vietnam, Thang Long Joint Stock Company
The Company is currently carrying out commissioning
(“TLCC”).
project of new factories in Padang and Rembang. It
is expected that both factories will be commercially
TLCC is one of leading cement producers in Vietnam
operating by end of first quarter or early second quarter
with total production capacity of 2.3 million tons per
in 2017.
year. TLCC has in place an integrated cement mill
located in Quang Ninh Province with the supports from
In increasing the future production capacity, the
Cai Lan sea port and milling plant located at the outskirt
Company has begun the preparation of 2 new plants
of Ho Chi Minh and Mekong River transportation
development in Nangroe Aceh Darussalam and Nusa
channel, inter-regions highways as well as international
Tenggara Timur.
port, which will create effective and efficient distribution
system. TLCC also has large stocks of raw materials,
The Company has also thoroughly reviewed in
which is an opportunity for future development.
realizing inorganic expansion model. This review has
involved international independent consultants that
have delivered assessments to acquisition-targeted
companies with strong foundations and prospects
to be developed with the synergy model that would
provide long-term mutual benefits.


Future Plan
In realizing sustainable growth, moving forward TLCC
has planned to increase the production capacity. The
investment project of TLCC 2 and APCC have been
prepared and recorded in “2011-2020 Vietnam Cement
Industry Development Plan and 2030 vision”, which
has been agreed by Vietnamese Government (Prime
Minister) through the Decree No. 1488/QD-TTg in 29
August 2011. This shows that TLCC 2 and An Phu
Cement JSC (APCC) plants are principally approved for
the development in the period of 2016-2020.
NEXT REGIONAL EXPANSION

In strengthening its position in the region, the Company
is taking steps to entering the Southeast Asia and
South Asia markets. The Company has calculated
the aspects in program expansion, both organic and
inorganic expansion, including the availability of raw
material, supporting utilities, local market potential and
the synergy with the long-term company development.
The Company has signed a MoU with one of cement
companies in South Asia in 17 October 2016. The aims
are to manage the production shortage and surplus
as well as creating the additional revenue and profit
sources.
Packing Plant Ciwandan, Cilegon, Banten

memiliki kapasitas Silo sebesar 10.000 ton
Annual Report 2016

125
BUSINESS REVIEW
•
INFORMATION SEGMENT Industrial region development manages former
raw material mining area into usable area for
For the management evaluation interest and pursuant
commercial purposes and public facility
to the PSAK 5 (2015 Revision) Regulation, Semen
Indonesia provided business segment reporting in two • Ready-to-use concrete production for supplying to
large groups: Cement Production and Non-Cement construction projects
Production. Cement production is main business
• Other business activities
segment with the revenue contribution above 96% of
the Company’s consolidated total revenue in 2016.
Cement production is coming from three subsidiary The Company has sums of non-cement revenue from
entities with direct majority ownership in PT Semen these activities. Aligned with the changing paradigm of
Padang, PT Semen Tonasa and Thang Long Cement the Company business, which will develop non-cement
Joint Stock Company (TLCC), as well as from the downstream products, revenue contribution from these
production facility in Tuban that up until now the products will continue to increase in years ahead. The
reporting is still being self-managed. realization of pre-cast concrete producer company
acquisition is as described in the Sub-Chapter of
Non-cement segment consists of limestone and clay Business Development.
mining, cement packing production, industrial region
development and ready-to-use concrete as well as Semen Indonesia also provided recapitulation of
other segments. Each of these segment activities business results based on business segment, and
includes: based on geographic areas: Java Area and Outside
• Limestone and clay mining are driven to fulfil the Java and Overseas Areas that referring to the Company
Company’s requirement for raw materials product marketing potential.
• Cement packing production is driven to fulfil

The illustration of the Company revenue distribution
requirement of cement bags
based on business segment in 2014-2016 is as follows.
Company revenue distribution based on business

segment, 2014-2016
In millions (IDR)
Business Segment 2016 2015 2014 % Growth 2016 % Growth 2015
Cement Industry *) 24,729,647 26,154,977 26,335,351 -5.5% -0.7%

Non-Cement 1,404,659 793,028 651,685 77.1% 21.7%
Total Revenue 26,134,306 26,948,004 26,987,036 -3.0% 0.1%
% Contribution
Cement Industry *) 94.6% 97.1% 97.6% -2.4% -0.5%
Non-Cement 5.4% 2.9% 2.4% 2.4% 0.5%
Total 100,0% 100% 100%
*) Including slag sales


BUSINESS REVIEW
Based on above table, the revenue contribution of Non- Looking at the geographic segment, the marketing
Cement business segment in 2016 was fairly increased areas in Java contributed Rp 12,812 billion or 49% of the
by 77% to Rp 1,404.7 billion from Rp 793.0 billion in Company’s total revenue. This reflected 1.4% increase
2015. Meanwhile in 2015 revenue contribution growth from 2015, the year in which the Company recorded
of Non-Cement business segment was 21.7% to Rp 2.6% decrease from the previous year. On the contrary,
793.0 billion from Rp 651.7 billion in the previous year. marketing areas outside Java contributed Rp 11,767
billion of revenue or 45% of total domestic revenue, a
The table shows that revenue contribution of non- 9.0% decline or Rp 12,929 billion from 2015 – when
cement continues to grow. Yet considering the revenue from this area grew by 2.3%. The decrease
contribution of cement industry segment in 2015 of revenue outside Java was due to the decreasing
reaching 97.1%, then the following discussion firstly cement sales volume, especially in marketing areas in
focuses more on the description and operational Kalimantan and Bali. Meanwhile, revenue of overseas
performance of cement business segment. (regional) market in 2016 increased by 12%.
Meanwhile, the revenue distribution based on main

geographic locations, which include Java, Outside
Java and Overseas, is illustrated on the following table. Marketing areas in Java have
contributed 49% of total revenue,
Based on the table, it indicated the Company’s effort in
diversifying revenue sources and mitigating marketing
while marketing areas outside
risks in order to not be dependable on a single Java have contributed 45% of the
marketing location. In years ahead, sales contribution Company total revenue.
based on main geographic area is predicted to be more
balanced, with potentially higher realization of sales
revenue from overseas.
Pendapatan Perseroan Menurut Lokasi Geografis

Utama, 2014 - 2016
2016 2015 2014 Growth (%)
Description
Revenues (%) Revenues (%) Revenues (%) '16:'15 '15:'14
Domestics
Java 12,812,244 49.0 12,630,246 46.9 12,971,849 48.1 1.4 (2.6)
Outside Java 11,766,615 45.0 12,929,299 48.0 12,639,012 46.8 (9.0) 2.3
Overseas
Asia 1,555,447 6.0 1,388,459 5.1 1,351,420 5.0 12.0 2.7
Europe - 0.0 - - 24,755 0.1 - (100.0)
TOTAL 26,134,306 100.0 26,948,004 100.0 26,987,036 100.1 (3.0) (0.1)
Annual Report 2016

127
MARKETING
We overcome the increasingly

challenging business
condition resulted by the
competition, weaker domestic
demand, and change in
demand pattern, by applying
fundamental transformations
in the Company’s product
marketing means and
approach. Our success
is underscored by market
share leadership achieved
through the expansion
of marketing areas and
optimum management of
distribution channels to boost
AUNUR ROSYIDI
competitiveness. Marketing & Supply Chain Director
By doing so, we were able to maintain domestic market share

in 2016 by around 41.7% from 41.9% in 2015 despite 0.6%
contraction of cement consumption nationally.”


MARKETING
Program in Brief and Result Highlights:

1. Shifting marketing paradigm from production-oriented to customer-oriented, applying “direct to
customer” marketing pattern and establishing Corporate Marketing unit.
2. Expanding marketing focus from domestic to regional market to support capacity management
strategy implementation. The Company has incorporated PT Semen Indonesia Internasional to
balance sales volume in national and regional market.
3. Sharpening marketing synergy by intensifying Supply Chain Management (SCM)
implementation and adopting Outbound Logistics activities.
4. Developing and commencing the SCM roadmap implementation, including developing a WAR
Room.
5. Improving marketing communications intensity to increase the brand value of Semen Indonesia.
6. Improving customer service quality.
7. Results:
• Sales volume increased by 1.4% to 29.1 million tons.
• Leadership in domestic market was maintained at 41.7% market share; Java’s market
share grew 38%.
• National sales volume stood at 25.8 milion tons – decreased by 1.0% from 26.1 million tons
in 2015 amid the drop in sales across three major players in the domestic market.
• Export sales volume rose by 8.9% to 524,864 tons.
• Bulk sales grew 2.4%.
• Lowered distribution cost index in 3 PL Area 5, East Java by 17% to Rp132 thousand/
ton.
• Reduced fleet cycle time in Area 5, East Java by 23% and at the same time increased fleet
utilization by 24%.
Changes in Business of imported products, deceleration of consumption
Environment growth, and change of demand pattern from retail to

bulk. The challenges peaked in 2016; demand declined
As discussed in the “Industry Overview” sub-chapter,
by -0.6% and average selling price was down by -6.5%.
cement business environment in Indonesia has been
Supply excess is projected to continue for a number of
under pressure since 2014. Several aspects lead to this
years ahead.
condition, which are: production overcapacity, the entry
Annual Report 2016

129
MARKETING
Marketing Strategic Initiatives For retail customers, the Company intensified

Distributors’ active role as distribution channel.
Taking into account all risks and potentials that
For corporate customers, the Company has
contribute to the challenging situation in the cement
established Corporate Marketing Unit focusing on
industry, the Company through Marketing and Supply
handling bulk and wholesale orders to real estate
Chain Directorate initiated a series of marketing
companies, contractors, industries, and others,
strategic initiatives. The goals are to ensure that the
including to exploring the potential of product
Company generates optimum sales level and maintains
marketing synergy with other SOEs.
its leadership in the domestic market.
The Company will continue developing the

The initiatives are based on several approaches,
competence of Corporate Marketing unit. In the
namely market share & market management, revenue
future, the unit is expected to be able to market
management, and cost management. The main keys to
the products used in infrastructure development,
successful strategy implementation are:
in service and product packages, and to work and
o Optimum production capacity utilization in order to
synergize with other subsidiaries.
be able to set competitive price per unit.
o Strong brand equity considering that cement has
Change of focus to Customers
become strategic commodity.
o Transportation efficiency to enable product to
reach customers as quickly as possible on as low PARADIGM SHIFTING
cost as possible. To this end, the Company applies from Production Focus to
Customer Focus
Supply Chain Management.
To ensure that the Company maintains its position as

the market leader, the following strategic marketing
initiatives were implemented:
• Shifting Sales Paradigm from Production- PRINCIPAL
Focused to Customer-Focused
As a paradigm that considers customers as the 1. Knowing Our
Customer
end or direct users of cement products, which 2. Building Strong
Relationship with
allows the Company to directly start in engaging Customer
both retail and corporate customers. “Direct DISTRIBUTOR CORPORATE
MARKETING
to customer” is the approach applied in this
marketing strategy. CUSTOMER


MARKETING
• Expanding marketing focus from domestic to Currently, PT SIB has the capacity to produce
regional various cement downstream products, such as
This approach is intended to ensure optimum precast, ready-mix concrete, porous concrete,
level of sales volume and thereby maintaining and flash concrete. Going forward, the Company
high utilization rate of its plants. This approach plans to produce a range of building material
also corresponds with the implementation of products to meet consumers’ needs across
capacity management strategy. different segments; retail, B2B, and other types
of end users.
By expanding the marketing focus to regional
market, Semen Indonesia’s sales will no longer • Sharpening Marketing Synergy
depend solely on domestic market. Demands are The Company continues synchronizing marketing
expected to also come from other markets in the programs across all OpCos and key domestic
region, both the ASEAN Economic Community brands. One of the most important activities is
(AEC) region or beyond, as the expansion remains optimizing distribution network that includes
viable from transportation cost point of view. distribution management, evaluation, and
alignment of product channeling competence
To support the marketing expansion initiative, with local market potentials to optimize price and
the Company has incorporated PT Semen revenues.
Indonesia Internasional (PT SII). The role of the
new company is to maintain the balance of the To maximize the marketing synergy, the Company
Company’s sales volume. PT SII will assist Semen has intensified Supply Chain Management (SCM)
Indonesia to go beyond the demand-supply implementation, including adopting the Outbound
dynamics of Indonesian market. This wil result in Logistics activities to generate best results.
the Company being able to optimize the potential
of cement export when national demand is low • Marketing Communications
whilst still meeting domestic demand when the Marketing Communications has a role to maintain
market rebound. and foster the interaction between the principal
and the customers. The goal is to shape, augment,
• Developing cement derivatives to achieve and increase awareness, and it is the first step
product diversification to keep and improve customers’ satisfaction
The Company is endeavouring to move away and loyalty. Marketing communications is also
from the focus as cement producer into building one of the tools that preserve and sustains the
material solution provider. As such, the Company Company’s brand equity, which currently consists
has decided to reinforce its business in cement of three domestic brands and 1 regional cement
derivatives by consolidating PT Varia Usaha Beton brand. The Company’s aim is to bring all of its
with PT SGG Prima Beton, resulting in PT Semen brands to the regional level.
Indonesia Beton (SIB) with marketing coverage
across the nation.
Annual Report 2016

131
MARKETING
To that end, the Company optimizes technology 2. Digital announcement of important events
developments, namely using online and digital in social media, online communities, online
applications in its marketing communications news portals, etc.
activities. The apps enable a more direct
relationship with customers; this means it
is possible for Semen Indonesia to maintain
customer engagement. Various online and digital
programs include:
1. Online communication channels: corporate

website, social media (Twitter, Facebook,
Instagram, etc.), and website content on,
for example, corporate news and product
information.
3. We-Green Industry publication, a portal for

community with environmental awareness
established by Semen Indonesia.


MARKETING
The Company also maintains the use of

conventional media, especially to communicate
the tagline and brand communication that
utilizes outdoor media (billboard and distributor/
shop signs) and print media. The use of these
conventional means include efforts to disseminate
corporate message and image.
The Company’s various marketing communication

4. We-Green Industry publication, a portal for programs in 2016 are as follows:
community with environmental awareness 1. Public education through print media,
established by Semen Indonesia. including product communication to the
audience at large using national magazines,
tabloids, and newspapers
2. Utilizing outdoor media and signage for stores
outside of the Company’s marketing regions
3. Sales promo program to boost sales

4. Loyalty program, e.g. point rewards, travelling
program, gathering, merchanidising, and
training for construction workers.
• Customer Services
The Company also delivers customer services,
handling any complaints and inquiries from
customers pertaining the usage of the Company’s
products. Detailed elaboration on Customer
Other than online and digital communication Services is provided in the Corporate Social
activities, the Company continues offline activities; Responsibility Chapter.
customers gathering, customer services, customer
appreciation, and training and certification for
construction workers. The goal is to enhane
customer loyalty and to capture potential
customers.
Annual Report 2016

133
MARKETING
SALES VOLUME & MARKET National cement sales in 2016 dropped by 0.6%
SHARE IN 2016 due to lower demand in Java and Kalimantan.

Semen Indonesia’s sales also decreased by 1.1%.
In line with this, the Company’s domestic market
• Total domestic sales, export, and aggregated
share also decreased from 41.9% in 2015 to
sales volume (domestic & export)
41.7% in 2016 (chart 8).
SI CEMENT SALES
Amid weaker demand and strong competition,
31,000
29,000
28,211 28,393 28,604 the Company is in fact able to increase its market
27,000 share in Java (2015: 37.8% to 2016: 38%) – the
Thousand Tons
25,000 largest market in Indonesia.

23,000
21,000
19,000
• Domestic sales to total national sales for
17,000 Packing and Bulk
15,000
2014 2015 2016
Domestic Export Domestic TLCC Export TLCC SI CEMENT SALES
(Chart 7) 50,000
40,000
Thousand Tons
The downturn of domestic sales reflected the

30,000
stringent competition in the domestic market
20,000
because of the entry of new players whilst
demand weakened. Addressing this challenge, 10,000
the Company pushed its efforts in expanding to -

2014 2015 2016
export market, resulting in the increase of export
Bag Nasional Bag SMI Curah Nasional Curah SMI
sales trend (Chart 7).
(Chart 9)
• Domestic Market Share

Chart 9 shows that the Company’s sales trend
of and national demand for bulk cement product
SI DOMESTIC SALES
continued to grow. Considering this condition,
70,000
the Company established a new business unit,
60,000
Corporate Marketing Department.
Thousand Tons
50,000
40,000
30,000
20,000
10,000
-
2014 2015 2016
SMI Domestik NASIONAL
(Chart 8)


MARKETING
To optimize its sales performance, the Company TLCC, the Company’s subsidiary in Vietnam, sold
focuses its sales in Indonesian market. This is in line 1,766,078 of cement and slag to Vietnam domestic
with Semen Indonesia’s geographical advantage, market and export markets (including clinker)
where the Company has strategically located its amounting to 765,464 tons (3.9%) growth, i.e. to
production units in the west, central, and eastern Singapore, the Philippines, Malaysia, Srilanka, and
region of the country. The Company has also Taiwan.
enforced synergy by leveraging the closest supply TOTAL SMI GROUP SALES
source to market, brand, and regional distribution (Including TLCC)
and sales efficiency to be able to structure better 30.000 29,110.9
28,526.4 28,708.8
pricing with optimum margin.
28.000
1.4%
Thousand Tons
26.000
Cement sales volume (including white cement)
of the Company in Indonesia in 2016 reached 24.000
25,702,397 tons or decreased by 1.1% from 22.000

25,978,351 tons in 2015. Sales details are as
20.000
follows:
2014 2015 2016
(Chart 10) (including export, in thousand Tons)
Growth Growth
2014 2015 2016
NO Wilayah 2015 2016
(Ton) (Ton) (Ton)
(%) (%)
1 Sumatera 5,363,783 5,699,370 5,753,818 6.26 0.96
2 Java 13,635,712 13,035,935 12,712,644 -4.40 -2.48
3 Kalimantan 2,280,542 2,145,828 1,748,593 -5.91 -18.51
4 Sulawesi 2,856,137 3,031,851 3,374,169 6.15 11.29
5 Bali Nusa Tenggara 1,296,357 1,295,451 1,228,192 -0.07 -5.19
6 Ind, Eastern 723,387 760,355 864,727 5.11 13.73
Total 26,155,918 25,968,789 25,682,143 -0.72 -1.10
Note: excluding sales from domestic clinker and white cement (ASI data)
Cement sales in Java contributed 49.5% to the In total, the Company’s sales volume (including
total sales, or less 0.7% compared to the previous clinker) in 2016 was 29.1 million tons, up 1.4%
year, while sales from outside Java contributed from 28.7 million tons in 2015 (chart 10).
50.5% or up 0.7% from the previous year.
Semen Indonesia (Non-TLCC) Market
In addition to supplying cement to Indonesian Share in Brief
market, the Company also expanded to export Market challenges and the Company’s
market (including clinker), in part to respond performance:
to weaker domestic demand. The Company 1. National cement supply in 2016 weakened
entered markets in Timor Leste, the Philippines, by 0.6% due to lower demand in Java and
Bangladesh, and Srilanka, which generating a total Kalimantan
volume of 745.418 tons (54.7% growth).
Annual Report 2016

135
MARKETING
2. The Company’s domestic sales decreased by 2. In spite of lower demand and heightened
1.1% competition, the Company was able to
3. The Company’s domestic market share increase market share in Java (2015: 37.8%
declined albeit slightly from 41.9% in 2015 to to 2016: 38%), Indonesia’s largest market.
41.7% in 2016.
MARKETING PROGRAMS 2017
Nevertheless, through various efforts, the • Deepening market share in the bulk segment
Company was able to overcome the tough by optimizing the role of the newly established
challenges in 2016 and posted the following Corporate Marketing Department that focuses
results: on certain customers, other SOEs and private
1. The contraction of the Company’s companies; paving the way to advance industrial
domestic market share was less than cement segment, and focusing on capturing
industry average. This reflected the growth opportunities especially in the industrial
Company’s successful efforts to remain segment.
competitive among other new players
and weakened demand. • The Company will start introducing Product
Bundling sales through Corporate Marketing
Department, covering cement, concrete, building
materials, construction, and others for corporate
end-users.
Construction Land Transportation

Sea and Land
Transportation
Services
Informatics
Packagingzx SIB Swadaya
Services YUDS VULS
Graha
Cement Tonasa
Line
Cement
Coal
Cement Slag
Building Materials
Slag, Jetty Light

Fiber Board services steel Board
Industrial
zone Cement
Single Product Bunding Product
Note: SIB – Semen Indonesia Beton; VUDS – Varia Usaha Dharma Segara; VULS – Varia Usaha Lintas Segara


MARKETING
• Implementing direct selling approach for retail • Developing marketing communication programs
bag through the use of digital application that that are intended to improve the perception
would enable direct selling access to consumers, towards quality and customer engagement through
introducing co-creation program to enhance the the following activities:
role of distributors in direct selling.
a. Campaigning the improvement of product,
• Intensifying the role of Semen Indonesia packaging, and after sales service quality
Internasional (SII) as a strategic partner by
cooperating with SII to explore prospective b. Total program engagement that is integrated
export markets. This is a step to optimize export between principal and customer channels,
opportunities for Semen Indonesia Group enhancing cutomer channel and digital
subsidiaries and to strengthen the Company’s communications program.
presence in the regional market.
c. Maintaining brand equity through focused
• Stepped up efforts to add the variety of marketable brand management, branding strengthening,
derivative products, among others by: and effective distribution channel for retail and
bulk markets.
1. Improving coordination with research and
development unit to engage the market and
meet customers’ demand.
2. Systematically enhance the role of Innovation
Award as a strategic means to initiate
the development of alternative derivative
products.
3. Subsidiary empowerment and development
as the strategic tools to boost revenues,
especially subsiadiaries which businesses
are highly relevant with cement products. The
subsidiaries are the medium to introduce, sell,
and market new products.
Annual Report 2016

137
MARKETING
SUPPLY CHAIN MANAGEMENT Unlike Logistics Management that focuses on the

flow of goods and is exclusively oriented to a unified
One of the Company’s strategic initiatives is Moving
planning of corporate-wide goods and information
Closer to the Customers by applying Supply Chain
flow, in SCM the Company focuses on the integrated
Management (SCM).
flow of goods, information, and finance from upstream
to downstream area. SCM also connects businesses
In SCM, the Company integrates a series of business
and coordinates processes of the companies in the
activities across the supply chain to create added values
pipeline – from supplier to customer. The Company
for customers, both through products and services,
also collaborates with other companies, including
using available resources in the supply chain. The aims
suppliers, transporters, distributors, shops or retail
of SCM implementation are to increase revenues and
stores, subsidiaries, and other supporting affiliates to
or lowering operational costs, especially transportation
provide raw materials, to produce, and to send cement
so as to enhance the Company’s competitiveness.
to end users.
Supply Chain Management is a unit under the

coordination of Marketing Directorate. Its core function
ROLE OF SUBSIDIARIES IN
at the initial phase is to coordinate the movement
SUPPLY CHAIN MANAGEMENT
of cement production materials and distribution of
(SCM)
In SCM implementation, subsidiaries and affiliate
products as cost-efficient as possible to the Company’s
companies are strategic elements. Their integrated
entire key marketing areas. Going forward, this function
business units and the added values they generate
will be developed into goods distribution service
will favorably impact the Company. The role of
provider and is expected to be one of the Company’s
subsidiaries and affiliates will cover integration process
revenue generators. The scale-up of supply chain
from inbound stage: provisioning of raw materials and
function is the Company’s way to respond to cement
production process, and outbound stage: distribution,
industry challenges, especially in terms of managing
transportation, and customer management.
distribution cost, with a long-term goal of developing
revenue diversification opportunity.
The following is the chart flow of product distribution
and subsidiaries involved in the process.


MARKETING
• Become the most

• Building ASEAN Effective and Efficient
• SCOR Model connectivity Factory in Regional
Distributors :
Varia Usaha, KWSG

and BSA
Raw Material Production process
IKSG : Packing
Raw Material :
UTSG : Limestone and Clay

SGG EP : Coal
KWSG : Deposit, Raw Materials and Transporation : Readymix and Precast :
Additives Organizing and
Hauling Varia Usaha Semen Indonesia beton
Upstream Production process Production process Dowsntream
PT Semen Indonesia (Persero) competitiveness, the Company established a cross-

Tbk SCM IMPLEMENTATION functional SCM implementation project team in 2015
ROADMAP responsible in applying SCM according to the following
To consolidate the Company’s entire potentials into roadmap:
an integrated business process that generates high
• Become the most

Effective and Efficient
• SCOR Model • Building ASEAN Factory in Regional
Implementation connectivity
• Internal Integration • SI-Logistic • SI-Log all Indonesia
• Supplier Relationship • JIT & Agile
Management Manufacturing
and Customer
Relationship
Management 2018 2019
• Startup SCM project
• Process Design
• SI-Log Preparation
2017 • Implementation
• Total Cost
Efficiency
• Building SCM
organization
• Identify Revenue 2016 • Inbound-
outbound system
of SCM across
OpCos in
Indonesia and
across logistics
operations in
SI, nationally
Crestion & Cost
ASEAN and regionally in
2015
Reduction • HoldCo and Opco reinforcement
• SI-Log launch as • Development of ASEAN
internal integration ASEAN-based
• Business partnership SBU in SI • Total integration
• SCM-based SI-Logistic and connection
organization
• Development of SCM • Inbound and outbound Rembang and • The best IT-based
Business Process in HoldCo system strengthening Indarung 6 implementation
and OpCo • Logistics potential operations in ASEAN cement
• Phase I HR development review • Implementation industry, most
and Logistics Management • Logistics and of Warehouse profitable and
• In-depth study of cost IT infrastructure management efficient
reduction opportunities development system &
• In-depth study on costs and • Phase II HR transportation
customer improvement development and management
Logistics Management system, JIT, and
Full TPM
Annual Report 2016

139
MARKETING
implementation is envisaged to position the Company 2. Integrated sales and production planning, taking
as the most effective and efficient cement company in into account market condition, sales target, inven-
Southeast Asia. tory, and production capacity to prevent product
shortage/surplus.
In 2017, the Company is entering the advanced stage, 3. Improving Supply Chain Dashboard in the War
namely reinforcing the inbound-outbound logistics Room, enabling the Company to monitor supply
management. The Company is also implementing chain activity to support quicker decision making.
Warehouse and Transportation Management System 4. Changing vessel contract from Gross Time Charter
to realize operational excellence in supply chain to Freight Charter, increasing chartered vessel utili-
management. zation to increase efficiency and to adjust with the
trend of industrial fuel price downturn.
REALIZATION AND RESULTS IN
2016
Distribution cost decrease from 2015 in 2016:

Distribution Cost (Rp/Ton)
Rp284.4 Billion
1 (Rp/Ton) SMIG 2014 2015 2016
Contract Biaya Distribusi 144.709 141.584 131.813
GTC FC
Distribution cost – 17 %
(FR year 2014, 2015, 2016)
3PL Area5 East Java Before

Fleet Cycle Time Reduction in Area 5 – East Java before After
and after 3PL implementation: 23% 23%
2 Fleet Utilization Increase in Area 5 – East Java before

and after 3PL: 24 %
24%
Contract
Distribution cost index – 17 %
GTC FC
(Distrans Data 2015, 2016)
Cycle Time Utilization
The following are highlights of SCM and Logistics 5. Gradual implementation of third paty logistics
Distribution strategic initiatives that were gradually (3PL) to handle distribution and transportation pro-
implemented in 2016: cess to lower costs in those areas.
1. The use of RFID and GPS technologies to control
the movement of truck fleet and cement vessels in
order to shorten cycle time and idle time, thereby
increasing fleet utilization level.


MARKETING
3. Vessel program with partners and subsidiaries,

2017 PROGRAMS
consolidating partners/subsidiaries and type of
In 2017, the Company’s two new production facilities
supply/delivery of other materials (coal).
will commence their operation, namely Rembang
4. Continuing gradual Third Party Logistics imple-
and Indarung 6 plants. Both plants will be integrated
mentation and evaluation in other areas.
with other existing facilities, forming an efficient and
5. Managing vessel costs using Asset Leasing mech-
integrated supply chain.
anism.
To support the implementation of 2017 roadmap,

2017Main focus:
the Supply Chain Management will be continuing
1. Collaborative Planning, Forecasting & Replen-
Cost Transformation program that focuses on 4 key
ishment (CPFR): collaborative demand or supply
interrelated programs of 2017:
planning and forecasting with individuals and busi-
Continuation:
ness partners to enhance supply chain integration.
1. Optimizing distribution and establishing the syner-
CPFR is grouped into two:
gy between distribution channels to obtain supply
• CPFR Company and customers.
from nearest sources.
• CPFR Company and vendors.
2. Continuing contract change to freight charter for
Semen Padang and Semen Tonasa.
SI-Logistics Min-Max
Web policy PR-PO
CRM App
policy
Collaborated Collaborated
Customer Company Supplier
Planning Planning
Replenishment : Replenishment :
Product availability in the Product availability in the
market is maintained market is maintained
Annual Report 2016

141
MARKETING
2. Semen Indonesia WAR Room dashboard monitoring tool for decision making. It is developed, managed, and
controlled by the Supply Chain Department. WAR Room dashboard also functions as supply chain risk manage-
ment tool-kit, providing information for marketing intelligence and for the real time monitoring of supply chain
process at PT Semen Indonesia (Persero) Tbk.
WAR Room, Win Act and Respect for a better future.
3. Marketing Intelligence (MI), for Competitive Insight and Market Insight.
4. Internal logistics transformation in Semen Indonesia Group – transformation towards an integrated logistics is
required by Semen Indonesia Group in order to adapt and win the Competition.
These four key programs in 2017 are interrelated and aimed to realize one of the Company’s strategies of “Move
Closer to the Customer”.


PROJECT &
ENGINEERING
We seek to ensure that
the completion of new
plants construction, the
realization of additional
new plants, and other
supporting facilities are
self-managed with the
best quality, cost, and
accuracy in order to
ascertain we have the best
competitive support.
As the designer and

implementer of the
project development,
we also accumulate
all competencies from
those experiences as the
potential capital that can
be used as new revenue
sources in the future.”
GATOT KUSTYADJI
Engineering & Project Director
Annual Report 2016

143
PROJECT & ENGINEERING
Program Highlights:
1. Independently managing the execution of the production and distribution facilities constructions and prioritizing
quality, cost, and delivery according to the total cost of ownership target.
Ongoing projects in 2016 are as follows:
• The construction of Indarung VI plant in Padang
• The construction of Rembang plant (Semen Gresik) in Rembang, Central Java
• Waste Heat Recovery Power Generation (WHPRG) project
• Grinding Plant Cigading project
• The completion of Slag Grinding Mill project of KSI (Krakatau Semen Indonesia)
• The development of Packing Plant Oba Sofifie in North Maluku
• The development of Packing Plant in Bengkulu.
2. Projects completed in 2016 were upgrading programs in Padang, Tonasa, and Tuban.
3. Preparing the construction of the Cement Plant Projects owned by PT Semen Indonesia Aceh in Aceh and PT
Semen Kupang Indonesia in Kupang.


4. Establishing Semen Indonesia’s Center of Technical Services (SICTS) as a service center as well as technical
discussion of engineering and project management in addition to functioning as Project Management Office
(PMO) and Project Integrator.
5. Improving Engineering Capability and Project Management as a roadmap for the transformation of capability and
engineering maturity competencies as well as a world-class project management capability.
As part of the transformation process of PT Semen Indonesia (Persero) Tbk into a Strategic Holding, which will handle
strategic issues in business development, the Project & Engineering Directorate currently plays a strategic role in
coordinating, managing, building, and ensuring that the Company’s productive assets are in the best condition to
support its competitiveness.
In order to ensure all productive assets are in the best condition at any times, the Company shall perform the best
management, including realizing strategic and operational investments to enable all productive assets to operate with
optimum capacity and sustainable quality. As a result, output per unit will have high competitiveness.
In addition, the Company believes that a medium and a chain of command are required in order to accumulate
competencies in realizing the process of plant construction and supporting facilities. By doing so, the capabilities
can be capitalized to provide design services outside the business group and generate new sources of revenue.
Through the Project & Engineering Directorate, the Company accumulates the competencies and designs a capability
development program from various projects, maintenance, modifications, as well as development of productive assets
and supporting facilities that are self-managed. Accordingly, the Company will be able to provide reliable buildings
and constructions design service for external parties.
The Company currently concentrates on providing the best support for building, modifying, maintaining, and managing
productive assets in the form of integrated production facilities and various other supporting facilities with the best
quality, cost and delivery (QCD). As such, since the last few years, the Company, coordinated by the Directorate of
Projects & Engineering, has been building and modifying various production facilities on a self-management basis as
discussed below.
SELF-MANAGED well as supporting the efficiency and strengthening
DEVELOPMENT OF of distribution capabilities. For these purposes, the
PRODUCTION FACILITIES AND Company adopts two measures: (a) the acquisition
DISTRIBUTION of cement manufacturers, (b) execution of strategic

projects: building new plants, developing distribution
In order to support the Company’s strategy, especially
facilities such as Packing Plants & Terminals (Ports),
in the Capacity and Competitiveness Management,
building Warehouse Buffer on various islands or
the Company has conducted business expansion
destinations, Plant Upgrading (upgrading existing plant
and strengthened its competitive advantage. As
capacity) and Energy Efficiency Projects.
such, the Company has realized various investment
plans focused on increasing production capacity as
Annual Report 2016

145
The implementation of these strategies are successful in an independent-management basis in which

in increasing capacity, supporting efficiency programs, Center of Enginering (CoE) of Semen Indonesia
as well as expanding market coverage and distribution collaborated with the OpCo of Semen Padang, as
that eventually support competitiveness. The the project owner, to establish Indarung VI Project
acquisition of cement manufacturers and the execution Team and apply SMIG Project Management for the
of strategic projects are supported by engineering skills implementation and management.
and due diligence as well as information technology
that are developed continuously through excellent The Ground Breaking marked the beginning of
own-management pattern. construction was conducted on 26 May 2014. The
plant production capacity is slated for 3 million tons
The total investment in 2009 - 2016 was approximately per year.
Rp 24 trillion, with an average value of projects
managed each year of approximately Rp 3 trillion, Up to December 2016 the realization of Indarung VI
consisting of improvement investment on the existing Project has reached 97.60% of physical progress.
plants such as upgrading and flexibility maintaining as The Mechanical Completion has been completed
well as new cement plants such as Rembang, Indarung and the next stage is commissioning. Operational
VI, Aceh, and Kupang. trials for several production facilities have been
carried out, including the Packer and Cement Mill,
The construction of the new plants will increase while the other facilities are in the completion stage
the Company’s production capacity and eventually of equipment trial operation.
contribute to the Company’s revenue.
1. The Construction of Indarung VI Plant in Padang With the application of the latest technology,
The implementation of Indarung VI plant Indarung VI project will become the most modern
construction of 3 million tons per year capacity with plant with its green industry concept in Sumatra.
a total investment of Rp4,032 trillion was executed
Indarung VI Plant


2. The Construction of Rembang Plant (Semen Similar to Indarung VI, Rembang Plant project will
Gresik) in Rembang, Central Java have modern and green industry concept by using
The Rembang Plant Project with a capacity of the latest technology.
3 million tons per year was also executed in an
independent-management basis. In the execution, The Ground Breaking marked the start of
the Center of Enginering (CoE) of Semen Indonesia construction was conducted on 16 June 2014. The
collaborated with the OpCo of PT Semen Gresik as plant will have plant production capacity of 3 million
the project owner to organize a Rembang Project tons per year.
Team as well as to form counter-part and apply
Project Management SMIG for the implementation In December 2016, the Mechanical Completion
and management. has reached 98.75% of physical progress with Rp
4, 988 trillion of total investment. Some production
The Rembang Project is a green field plant facilities such as Packers and Cement Mills have
construction. The construction has more been tested with materials and the other facilities
complex execution including land acquisition and are in completion progress of commissioning stage.
preparation, supporting infrastructure development,
and production facilities construction.
Rembang Plant, Central Java
Annual Report 2016

147
3. Preparation for Plant Construction of Semen 4. Preparation of Plant Construction of Semen

Indonesia Aceh Kupang Indonesia
The Company collaborated with the strategic On 23 November 2016, the shareholders of
partners to construct new plants in strategic PT Semen Kupang Indonesia approved the
locations. One of them is in Pidie-Aceh, a project construction of a cement plant with 2-million ton
that will commence shortly. For a new plant in capacity per year in Kupang District, East Nusa
Aceh, the construction is executed by a joint- Tenggara Province.
venture company between the Company and PT
Samana Citra Agung. The plant will have 3 million As per the greement, PT Semen Kupang Indonesia
tons per year capacity. granted authority to PT Semen Indonesia Tbk
to organize the construction of Semen Kupang
Semen Indonesia plant in Aceh will be an integrated Indonesia Plant with the aim to establish fully
and efficient plant, as the quarry, plant site, and port specified cement plant and the facilities according
are located within the same area. This will result in to the scope stated in the Update Feasibility Study
highly optimum cost in terms of material incoming on Cement Factory Development in Kupang.
and outgoing.
The effective date of construction is slated to
The locations for the plant (greenfield) and quarry commence in Q1 2018 and is targeted to start
are planned in the Pidie District, Aceh Province. operating in Q4 2020 to support the markets
Currently, the Company has acquired 1,500 in eastern Indonesia, Timor Leste and parts of
hectares, including for jetties that are directly Australia.
connected to the Malacca Strait and the Indian
Ocean. Quarrying and capital investment permits 5. Upgrading Projects
for plant construction have also been obtained. At Upgrading is an effort to modify or replace the
the same time, engineering/engineering design has existing production equipment in order to increase
been accelerated so that project preparation could production capacity. The Company gradually and
commence in 2016. continually upgrades its existing plant facilities.
The improved equipment capacity includes quarry
The effective date is planned starting in Q3 2017 facilities, phyroprocess, coal mills, cement grinding,
and targeted to finish in Q3 2020 to strengthen the and distribution facilities.
position of competition in the market in Sumatra.
Taking into account the existing plants and the

development of domestic-regional markets, the
plant in Aceh will have 3 million tons capacity of
cement and are equipped with modern facilities for
cement distribution by sea.


In 2016, the Company completed a number of • Semen Gresik

capacity expansion projects, including: 1. Silo Project in Special Port, Tuban
• Semen Padang The addition of Silo in Special Port in Tuban
1. Quarry access road with the capacity of 6,000 ton/hour aims to
Quarry access road project consisted increase cement-loading capacity to supply
of land acquisition and ± 1.8 Km of road 2 vessels simultaneously, with a load speed
construction to ensure the continuity of raw of 800 ton/hour each from the capacity of
material supply and reducing social cost. 650 ton/hour and 150 ton/hour.
2. Mining Expansion Project to 412
Hectares Quarry Area 2. Piping Dust Return Raw Mill Project to
In addition to road construction, the Finish Mill Plant in Tuban
Company also conduted Mining The construction of dust transport system
Expansion Project to 412 Hectares facility from Raw Mill to Finish Mill Plant in
Mining Area to ensure the sustainability Tuban aims to ensure the continuity of dust
of limestone supply that will be used by return; hence, it increases the PPC cement
Indarung VI Plant in the future. production, as well as decreases clinker
3. Coal Mixing Facility Expansion Project factor and dust emission level.
Another project is Coal Mixing Facility
Expansion. It ensures the reliability of 3. PLC Upgrade Project in Tuban
fuel supply to the plant and the stability of The replacement of Main PLC Finish Mill
quality on the impact of coal supply with Tuban III with RS-5000 Control logic and
various qualities. addition of ECS CCR Tuban III License
4. Increase of Unloading Capacity from to reduce Break Down since the existing
Indarung to Bayur Bay type 5 PLC is obsolete and has overload
This project aimed to increase Unloading memory usage of > 82%.
Capacity from Indarung to Bayur Bay
of cement and clinker to improve the 4. Limestone Trass Flexibility Project
competitiveness of the Company and The Installation of trass and limestone
ensure the availability of cement in the transport flexibility from Tuban III Plant to
market. This project is implemented by Tuban IV aims to reduce Finish Mill down
collaborating with PT KAI by utilizing time; it ensures Finish Mill’s operating
maximum railways from Indarung (Plant effectiveness achieves cement production
Site) to Bayur Bay (dispatch facility). target in accordance with RKAP.
• Semen Tonasa
Coal Unloading Project in Biringkasi aims to
improve the efficiency in fulfilling coal needs
through optimization of coal dismantling
processes.
Annual Report 2016

149
5. Revitalization Project of Finish Mill 8 in

ONGOING STRATEGIC
Gresik
PROJECTS IN 2017
This unit produces white cement aiming
to meet the increasing needs of the white
1. Completion of Waste Heat Recovery Power
cement market. In 2016, it was expected
Generation (WHRPG) Project
to meet the market prospects with the
The construction of Waste Heat Recovery Power
completion of the project with a production
Generation (WHRPG) at Tuban Plant is a Joint
capacity of 40 tons/hour of white cement.
Crediting Mechanism (JCM) project between
Japan and Indonesian government to utilizing the
With the completion of all upgrading programs, the
exhaust heat from Tuban Plant 1, 2, 3 and 4. The
Company has completed the whole series of upgrading
plants are targeted to produce ± 30.6 MW and
programs of existing production facilities for the
reduce CO2 emissions by 122,358 tons/year.
2016 work plan, with the objective of increasing the
production capacity of existing plants.
By the end of 2016, the physical development
of the WHRPG Project has reached 91.92% and
planned to be able to generate electricity in May
2017.
Waste Heat Recovery Power Generation (WHRPG) project, in the Semen Indonesia, Tuban Plant, East Java


2. Completion of Grinding Plant Cigading Project By the end of 2016, the physical construction
Grinding Plant Cigading is located in the port area realization of KSI Slag Grinding Mill in Cigading has
of KBS (Krakatau Bandar Samudra) with cement reached 60.32%. Based on the overall progress of
release capacity of 1.2 million tons per year. Cigading project, the first product is targeted to be
generated in May 2017.
The Mechanical Completion was finished
in December 2016. The next phase, i.e. the
commissioning stage has an overall progress
reaching 98.36%. It is targeted to operate in
February 2017.
Grinding Plant in Cigading
3. Completion of Grinding Mill KSI (Krakatau 4. Packing Plant Construction, Oba Soafifie in
Semen Indonesia) Project North Maluku
KSI is a Joint Venture Company (JVC) between PT The effective date of construction of Packing Plant
Semen Indonesia Tbk with PT Krakatau Steel to Oba Sofifie in North Maluku is in Q1 2017. It is
develop a Ground Granulated Blast Furnace Slag targeted to operate in Q1 2018. Ground breaking
Plant (GGBFS) or also called Slag Grinding Mill event was conducted on 4 October 2016. By
KSI. The construction of KSI sliding grinding mill relocating the engine ex PP from Banjarmasin,
in Cigading with capacity of 125 TPH is planned to investment costs will be more competitive and
produce cement slag to be supplied to Cigading the market share in North Maluku and surrounding
Cement Plant; the cost of goods sold to Jakarta areas can be improved.
and Banten will be more competitive as the result.
Annual Report 2016

151
In addition to handling projects, the Company also

5. Packing Plant Construction, Bengkulu provides engineering and project management services
The effective date of Packing Plant construction or EPC (Engineering Procurement Construction)
in Bengkulu is planned in Q1 2017. It is targeted services beyond the needs of SMIG while improving
to operate in Q1 2018; hence, the continuity of asset and resource utilization, as well as an opportunity
supply to Bengkulu can be ensured as well as to develop SMI’s business portfolio to support the
reduced the cost of cement transport to Bengkulu performance growth of the Company.
and surrounding areas. The ground breaking was
conducted on 28 December 2016. In handling the projects, the Company will develop
the Lean & Agile approach by optimizing the Center of
The completion of various distribution supporting Engineering (CoE) for its intellectual ability and property
facility construction has positioned the Company to be as well as the ability of ICT and Project Software
better prepared in taking the opportunities to increase applications to integrate all project information. The
domestic demand and market share in the future with a communication with project sites will be up-to-date
reliable market area coverage. and data update and project information will occur
real time, which allows for quick decision-making on
STRATEGIC PLANNING issues arising on site. Eventually, the Triple Constraints
In order to meet the needs of engineering and project (Quality, Cost and Delivery) target can be achieved.
management that can drive competitiveness as well
as the ability to provide investment and operational Engineering Capability and Project
efficiency support, the Company has established the Management Improvements
Cement Center of Technical Services (SICTS) and In order to overcome the future challenges, the
the Center of Engineering (CoE) as service centers Company undertakes several strategies: integration
and technical discussions of engineering and project of internal resources, network development, and
management for the needs of external and internal management system establishment to ENGINEERING
parties. In its operations, SICTS integrates with AND PROJECT AS CENTER OF EXCELLENCE to
and optimizes existing intellectual properties by support of increase revenue, reduce cost and improve
collaborating with subsidiaries of cement companies margin.
as well as supporting and involving Universitas
Internasional Semen Indonesia (UISI). SICTS also plays Steps taken to achieve these objectives are as follows:
role as Project Management Office (PMO) and Project 1. Integration of internal resources/in-house
Integrator. resources: integrating the power of subsidiaries in
fabrication and construction as well as workshops
SICTS and CoE serve as the motor and think-tank in Padang, Tonasa and Gresik
of Semen Indonesia in managing and optimizing 2. Intergration of engineering project by plant
the existing capabilities and experiences in order to engineering (optimalization, update, retrofit, etc.)
support the Company’s strategic plans. 3. Network development in terms of engineering,
manufacturing, and construction with local or
global partners.


4. Integration of innovation activities with the Packing Plants in Bengkulu and in Oba North Maluku.
development of engineering, implementation
of innovation made, developed, and refined as The previous independent-management concept has
well as aiming at the long-term goal of copyright been successfully implemented in the Company’s
(intangible assets). strategic development projects, such as Tuban IV,
5. Establishment of integrated engineering and Tonasa V and other strategic projects: Cement Mill
project information systems with plant information and Dumai Packing Plant, Mamuju Packing Plant,
systems and other related information systems Pontianak Packing Plant, Balikpapan Packing Plant
that work with the subsidiaries in the field of and Lampung Packing Plant and New Coal Mill in
information systems. Tonasa. This demonstrates the Company’s ability
CAPACITY GROWTH SUCCEED NEXT PROJECT

Additional production volume Demonstrating the best efforts
according to work and to achieve success in the next
utilization plans projecs: SIA (Aceh) and SKI
(Kupang)
OPERATIONAL EFFICIENCY
WHRPG, Coal Mixing SUCCEED COE & CTS
Indarung; Plant Improvement Center for engineering
Projects (Tuban, Indarung, excellence & project
Tonasa); Coal Transport management of every OpCo in
Biringkassi SMI Group
NEXT PROJECT
SHORT TERM
AND LONG TERM
CORPORATE IMAGE PROGRAM &
Consistently building positive CAPABILITY DEVELOPMENT SUSTAINABILITY
public image and as part of the • Develop know-how and
Company’s efforts to meet its engineering standard and best
responsibility to the country’s practices
advancement • Improving engineering and
project management capabilities
ALTERNATIVE REVENUE
CLOSER TO CUSTOMER & STREAM
DISTRIBUTION IMPROVEMENT Studying the establishment
Implementation of packing of engineering company as a
plant and remote grinding plant Strategic Business Unit (SBU)
projects
Focuss Directorate of Engineering & Project
Enginering is one of the processes in the execution to build modern cement plants and packing plants.
of existing strategic projects, as well as assisting The independent-management concept covers the
in conducting business studies, due diligence, entire engineering, procurement, construction, and
and feasibility study. The current engineering commissioning activities.
capabilities are reliable and proven that the completed
development and ongoing projects are carried out with The intellectual property of personal, pattern,
self-management, which utilizes the Company’s own knowledge, and experience (lessons learn) involved
capabilities in engineering and project management. in engineering and projects have been crystallized
Ongoing projects are carried out independently, e.g. in an integrated engineering system medium within
Rembang Project, Indarung VI, Cement Mill Cigading, the Center of Engineering (CoE). For the future, the
and Waste Heat Power Generation (WHRPG) in Tuban. Company designes an initiative strategy up to 2022
The projects in preparation are the Semen Indonesia to make the engineering capability and mature project
Aceh Project, Semen Kupang Indonesia, as well as management a center of excellence and innovation
implementation.
Annual Report 2016

153
Roadmap for transformation leading to world-class engineering capabilities and maturity as well as and project
management:
2022 - onword
21
2019 - 20
8
- 201
2016
Worldclass Engineering
01 5 Virtual & Physical Capability Readliness
4 -2 Laboratory
201 Becoming the center for
Database Integration engineering excellence,
Becoming the center of project management, and
Engineering Simulation and innovation
Technology Enabler Becoming single resource Innovation
(database) database engineering,
research, and innovation
Develop Technology Sytem
and Database System
Grand Design
The programs completed in 2016 and continued in c. Plant Service

2017 in achieving competitive advantage with the Development and cooperation are maintained
competitors are as follows: with engineering plant service in order to
Ø Integration of Engineering Activities handle main equipment inspection services,
Engineering activities that are pereviously plant optimization, retrofit, failure analysis,
performed separately in each subsidiary (OpCo) guide, and direction to achieve excellent
will be integrated in the Center of Engineering operations of the plants.
covering activities. They are: d. Engineering Database and Information System
a. Design and Engineering Engineering Database and Information System
Design and Engineering Development is Databases and information systems includes
centrallized by opening cooperation with digital documents, software engineering, data
engineering partner to serve both internal and research, engineering data standardization,
external customers, as well as improvement engineering libraries and plant performance.
ability and certification of Engineer and Project e. Construction and Project Management.
Engineer of every discipline. Utilization partnership of construction and
b. Engineering Development and Innovation fabrication capabilities from internal and
In order to implement replication of external parties to support the completion of
existing innovations in the Cement Group the company project is developed. Several
Indonesia, the development contributes to other programs that will be developed
the efficiency of innovation products owned includes:
by the Company. In addition, it also opens o Implementation of Management
cooperation with universities or institutions Standardization Project based on the
in terms of development and research in Project Management Body of Knowledge
energy, raw materials, new technology and (PMBOK) climate and culture of CHAMP
downstream products. Cement Indonesia by upholding Synergy,
Perseverance, and Integrity (SMI).


o Consistent Implemetation of Project o Recording and discussing lessons learned

Management Plan mainly aims to out of completed projects and seeing aspects
overcome Triple Constraints (Time, shall be improved so that the future projects
Budget and Quality) through the can be completed according to the set target:
implementation of Time, Cost, and Quality time, cost and quality.
Management Plan without neglecting
other Project Management Plan Areas Ø The Development of Engineering Information
(PMP). By 2016, the Quality Management System includes:
for Project has been completed and is o Development of mobile database that can
ready to be implemented by 2017. Other be accessed and monitored by intranet and
sustainable PMP areas will be developed internet,
and implemented for all SMIG projects. o Continuing the creation, management and
o Mapping maturity of the project integration of inter-enterprise document
management and strengthening existing engineering (OpCo) database,
weaknesses by being continuously o Integrating and collaborating disseminated
internalized through knowledge sharing information and engineering skills in OpCo as
and continuous learning. well as project management with ICT Project
o Starting the Project Academy programs Optimization at Central Project Monitoring
and prospective recruitments of Project & Controlling (C-PROM) Office. With the
Engineer in collaboration with Higher development of C-PROM, information and
Education in student work program, project monitoring can be integrated. The
communication will be done easier in project
Ø Integration Engineering Development and sites and real time updates. In addition, the
Innovation issues in handling the project can be detected
Several other activities undertaken for this early and can be immediately handled.
integration includes:
o Continuing engineering standardization for
every equipment and department,
o Conducting Cement plant, process and
equipment research to identify the most
updated and efficient technologies,
Annual Report 2016

155
Accompanied by the development of Engineering Network, the Center of Engineering has become the center
of knowledge and Engineering Services Excellence, especially in cement production and in meeting internal
needs as well as SMIG backup to generate sustainable growth of the Company.


PRODUCTION AND R&D

Anticipating the intense
business competition in 2016
and the coming years, we
improve the quality of our
production management by
conducting proper periodic
maintenance supported by
accurate information system
in order to reduce production
costs as well as utilizing
optimum and stable capacity
throughout the year. To achieve
high level of competitiveness,
we also ensure the best product
quality with the innovations
and results from our R&D
implementation. Moreover, we
ensure that our production
process is environmentally
friendly according to the
applicable policies.
JOHAN SAMUDRA
Production & R&D Director
With these commitments, we are able to operate with the average

capacity utilization of 88% for domestic plants and total of 89%
from all managed production facilities. We also acquired Green
Rating for our commitment to environmental sustainability.”
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157
PRODUCTION AND R&D
Programs and result highlights:

1. Applying capacity management by optimizing the management of
operational process, improving utilization, and managing maintenance
supported by information technology-based application developed by
PT SISI.
2. Examining and applying R&D results on production, improvement on the
efficiency of material separation in the top cyclone.
3. Applying quality management strategies in production in order to improve
slag production quality.
4. Applying green management in the management of slag and cement
production processes. It includes improving the use of waste products
from other industries, such as coconut waste, as auxiliary materials, using
exhaust heat for power generation in WHRPG projects, and reducing
CO2 emissions through CDM projects.
5. Implementing energy conservation measures as part of green
management.
6. Conducting R&D in the production process, packaging materials, cement
products, and raw materials.
The Company
7. Results:
accounted for 32% of • The utilization capacity of domestic facilities has reached 88%; this
the national cement is higher than the domestic industry utilization rate of only 65%.
The realization of cement production from domestic facilities is 25.9
production capacity
million tons and 2.4 million tons from regional facilities.
in 2016 or reaching • All pollution indicators are below the regulatory threshold level.
29,5 million tons. Therefore, the 3 integrated production facilities acquired GREEN
RATING and Green Industry awards of level 5 and 4.
• A decrease in the use of coal for slag production in domestic
production facilities by -2% is recorded. It successfully limits the
increase in electricity consumption by 4.5%.
Based on the condition of cement industry in Indonesia prior to 2016 and

the projection of the domestic market in the next few years, the oversupply
condition due to the increasing production capacity but relatively limited
market growth will continue.
Taking these evolving conditions into account, the Company has carried out
fundamental changes in the business.
The Company’s framework strategy on production is implemented by

strengthening the foundations, which are the people and culture, system and
structure, as well as cost transformation (by optimizing costs across various
lines). Cement business is also strenghtened based on three main pillars:
Capacity Management, Quality Management, and Environmental Management
underpinned by Operational Excellence.


PRODUCTION AND R&D
Meanwhile, TLCC production in 2016 rose 21% to

CAPACITY / UTILIZATION
2,388,022 tons from 1,979,199 tons in 2015 due to the
MANAGEMENT
growing domestic consumption in Vietnam.
In the management of capacity / utilization of production
facilities, the focus is to manage the operation
Overall, the Company’s total cement production in
processes, increase utilization, and maintenance
2016 was 28,272,386 tons; decreased by 1% from the
management. To improve efficiency in both inbound
total production in 2015 of 28,482,843 tons.
supply chain processes, plant operations and outbound,
the implementation of information technology becomes
the key to success from the planning, implementation,
monitoring and evaluation process.
2015 2015 2014 %

1 2 3 1:2 2:3
Slag Product Domestic 21,132,116 21,002,798 21,301,171 1 (1)

Regional 1,956,734 1,847,828 1,913,325 6 (3)
Total 23,088,849 22,850,626 23,214,496 1 (2)
Cement Product Domestic 25,884,363 26,503,644 26,435,136 (2) 0
Regional 2,388,022 1,979,199 1,825,413 21 8
Total 28,272,386 28,482,843 28,260,549 (1) 1
Installed Capacity Domestic 29,500,000 29,500,000 29,500,000
Regional 2,300,000 2,300,000 2,300,000
Total 31,800,000 31,800,000 31,800,000
Utilization Domestic 88 90 90 (2) 0
Regional 104 86 79 18 7
Total 89 90 89 (1) 1
The Company’s total cement production capacity in the

Domestic Market until the end of 2016 was 29.5 million
tons, consisting of 14.7 million tons of Semen Gresik,
7.4 million tons of Semen Padang, and 7.4 million 90 88
90
tons of Semen Tonasa. The total installed capacity
was around 32% of the National production capacity, 86 72
92,250 million tons. 65
The Company’s domestic cement production in 2016

decreased by 2%, from 26,503,644 tons in 2015 to 2014 2015 2016
25,884,363 tons. The decrease in the production
National industry SMI Domestic
realization was due to the decline in market demand,
especially in the 2nd and 3rd quarters. These periods
were used to conduct recovery for the plant equipments The utilization of domestic plants decreased by 2%,
to support the market expansion plan that will be while the average utilization of domestic industries
executed in the coming years. decreased by 7%.
Annual Report 2016

159
PRODUCTION AND R&D
The Company conducts R&D on technology for effective, efficient, and

environmentally friendly cement production. It includes conducting studies in
incineration process optimization in calciner, increasing material separation
efficiency in top cyclone, and increasing the performance of preduster coal
mill to be implemented in 2017.
QUALITY MANAGEMENT
As part of the sustainable growth process, the Company strives to build
Product Quality Management in the production consistently and sustainably
in order to ensure the long-term growth of the Company. Product Quality
Management focuses on Best Fit Quality, Meet Costumer Expectation, and
Technical Services.
The Best Fit Quality is realized by maintaining high product quality to meet
customer needs, meeting quality standards of clinker and cement products
Green technologies
for consolidation at group level and standardizing laboratory accuracy index.
adopted in the Company’s
operations and the
Meeting Customer Expectation is realized by becoming more proactive in
consistent implementation
improving the identification activities of customer needs, as well as improving
of programs to improve
the adaptation of internal business processes to anticipate the dynamics
environmental condition
that occured. The Company issued special products to meet the needs of
represent the strong
specialized customers, including OPC - Premium (Ordinary Portland Cement)
commitment for improved
and Low Hydration Cement.
environmental management
amid any business Technical Service is realized by optimizing the collaboration of technical service
conditions in order to resources that are available in each operating company and becoming more
realize quality business proactive in improving technical services to the end users including; handling
development. customer complaints, product knowledge education, technical assistance and
product trial with consumers, as well as supporting new products marketing.
GREEN MANAGEMENT
The Company believes that the management and improvement of
environmental quality are integral parts of the business development program,
which is carried out by prioritizing the economic, social, and environmental
performance balances.


PRODUCTION AND R&D
For the Company, the success of environmental In addition, the Company also implements
management, demonstrated through the maintenance the continual improvement system, 5R, and
of environmental quality, is one of the pillars to ensure Suggestion Systems, which are fully integrated
the sustainable growth, prosperity and quality of life of in the Indonesian Cement Management System
the present and future generations. (SMSI).
As a commitment in realizing sustainable environmental In environmental monitoring and management, the

management, the Company made various efforts Company has established regular environmental
starting from the establishment of policies and monitoring activities combined with production
regulations to the monitoring and management of plant aspects as outlined in “SI Ramah” pillar. This routine
operational activities that affect the environment both monitoring includes monitoring on production
within the plant and in the surrounding area. aspects covering energy use, raw material use,
1. Regulatory Compliance process effectiveness, and environmental aspects
In conducting operational activities, the Company such as stack emissions monitoring, ambient air
is committed to implement the government quality monitoring, domestic wastewater quality
regulations stated in the Environmental Law monitoring and noise.
No. 32 of 2009 concerning the Protection and
Management of the Environment as well as other During 2016, the Company successfully ensured
related laws and environmental obligations. that the environmental monitoring activities were
running positive as indicated by the achievement
The Company ensures its operational activities in of environmental parameters that were always
accordance with international standards with the below the value of the Environmental Quality
Implementation of Environmental Management Standard set by the Government.
System based on ISO 14001: 2004 and SNI 19 -
14001: 2005.
Monitoring of Smokestack Emission Standard Quality

Equipments Parameter Standard Quality, mg/m3 SG SP ST
Raw Mil NO2 1,000 306.29 76.53 7.75

SO2 800 10.83 20.01 10.75

Particulate/Dust 80 11.69 18.53 67.09
Particulate (CEMs) 80 8.33 20.11 72.69
Clinker cooler Particulate/Dust 80 7.81 54.72 74.73
Coal Mill Particulate/Dust 80 9.36 61.87 65.56
Cement Mill Particulate/Dust 80 10.15 63.68 66.94
Packer Particulate/Dust 80 10.15 15.10 66.94
*Note : Based on the Policy of the MoE&F No. 13 of 1995
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161
PRODUCTION AND R&D
Smokestack Air Emission Standard Qualiry of TLCC

Equipment Parameter Standart Quality, mg/m3 Value, mg/m3
Raw Mill NO2 1000 84.32

SO2 800 14.67

Partikulat debu 80 32.76
Clinker cooler Partikulat debu 80 61
Coal Mill Partikulat debu 80 69
Cement Mill Partikulat debu 80 49
Packer Partikulat debu 80 66
*Note : Berdasarkan QCVN 23:2009 BTNMT
1. Ambience Air Standard Quality

Parameter Standar Quality, µg/Nm3 SG SP ST
CO 30,000 3,408.5 2,876.65 9.3
NOx 400 20.38 59.15 39.63
SO2 900 24.38 19.79 5.52
Oksidan, O3 235 45.33 34.59 -
Dust Particle 230 80.41 58.53 82.53
Lead, Pb 2 0.057 0.03 0.82
Hydrocarbon, HC 160 103.04 95.83 -
*Note: Based on PP No. 41 of 1999
Ambience Air Standard Quality of TLCC

Parameter Standart Quality, µg/Nm3 Value, µg/Nm3
CO 30000 < 7000
NOx 200 19,22
SO2 350 25,88
*Note: Based on QCVN 05:2013 BTNMT and QCVN 06:2009
2. Domestic Water Waste Standar Quality

Parameter Standard Quality Unit SG SP ST
pH 6.0-9.0 - 7 7.55 7.32
BOD 100 mg/L 7 35.23 19.07
TSS 100 mg/L 6 54.60 18.8
Oil/grease 10 mg/L 0.2 1.05 7
*Note: Based on the Policy of the MoE&F No. 05 of 2014


PRODUCTION AND R&D
Domestic Water Waste Standar Quality of TLCC

Parameter Standart Quality Unit Value
pH 5.5-9.0 - 6.87
BOD 78 mg/L 8.0
TSS 156 mg/L 37.0
Oil/grease 15.6 mg/L 0.060
*Note: Base on QCVN 40:2011/BTNMT
2. Resources Conservation
Initiative strategies undertaken by the Company in resource conservation are as follows:
a. Decrease in CO2 Emisions
In conducting business, Semen Indonesia continues to focus on the sustainable development through a
commitment to reduce carbon dioxide (CO2) emissions from cement manufacturing processes.
The CO2 emissions monitoring results for each OpCo are shown in the table below:
Emisi CO2, kg/ton semen
Operating Company Persen Reduksi
2016 2015
PT Semen Gresik 647 665 -2.74%
PT Semen Padang 692 690 0.29%
PT Semen Tonasa 749 712 5.18%
TLCC 664 672 -1.18%
The total CO2 specific net emission of the four plants in 2016 was 683.29kg CO2/ton of cement. This value
was higher compared to 2015, which was 682.36kg CO2/ton of cement or increased by 0.14%. There was
a slight increase in CO2 emissions in PT Semen Padang from 2015 as a result of the increase in the clinker
factor in producing cement for export, which demanded special quality. Meanwhile, the increase in PT Semen
Tonasa resulted from efforts to improve the quality of cement products that affect the increase of clinker
factor.
Striving to reduce CO2 emission, the Company has implemented several relevant programs. Some of the
programs are:
i. Utilizing biomass as an alternative fuel to substitute coal consumption. Biomass used includes rice
husk, coconut waste, and waste tobacco.
ii. Conducting blended cement products diversification to reduce clinker usage. The Company also
continuously strives to produce cement with low clinker factor.
iii. Constructing long belt for coal transport from the port to the plant. It aims to reduce the use of land
transportation.
iv. Developing and operatiing WHRPG (Waste Heat Recovery Power Generation) from clink waste heat
gas to reduce electricity consumption from PLN.
v. Developing Waste to Zero project. With it, the Company is working with the government to help reduce
municipal waste problems by converting waste into alternative fuels for plants.
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163
PRODUCTION AND R&D
b. CDM Project Total regional coal consumption of the

The Company successfully achieved the Company in 2016, namely by TLCC production
Certified Emission Reduction (CER) from facility, was 300,769 tons, increased by 6%
UNFCCC (United Nations Framework from 282,718 tons in 2015 along with the
Convention on Climate Change) on 12 increase of clinker production by 6%.
December 2016 of 213,717 tons CO2eq for
the monitoring period of 25 February 2012 Meanwhile, the total consumption of
– 29 February 2016. The reduction of CO2 domestic coal in the 2016 was 4.7 million
emission was done by Tuban Plant through tons. It decreased by 2% from coal use in the
the project “Partial Substitution of Fossil Fuel previous year of 4.8 million tons. This was due
with Biomass at Semen Gresik at Cement to the use of alternative fuels as an additional
Plant in Tuban.” substitution in the use of fuel.
In this CDM project, the Company signed a The total regional electricity consumption by
sale and purchase agreement of CER with TLCC in 2016 was 229,166 MWh. It increased
Swedish Energy Agency, Sweden in the ERPA by 11% from 205,639 MWh in 2015, along with
(Emission Reduction Purchase Agreement) on the increase of cement production by 21%.
6 May 2015.
The signing of Emission Reduction Certificate by Semen Indonesia President Director, Rizkan Chandra, and Swedish Ambassador,
Johana Brismar S.
c. Energy Conservation Meanwhile, the Company’s domestic electric

Energy use in the cement production consists energy need in 2016 rose 5% from the
of 2 types of energy; heat and electrical domestic electricity usage ratio of 2,684,626
energies. The heat energy comes from the use MWh in 2016 and 2,559,503 MWh in 2015.
of coal as the main fuel.
The coal and electricity usage realization is
The total energy cost contributes around shown in the Table of Main Energy Usage as
37% of the cost of revenue. Considering follows.
the increase of basic electricity tariffs, the
Company has consistently implemented
efficiency measures to reduce energy costs.


PRODUCTION AND R&D
Main Energy Usage Table, 2014-2016
2016 2015 2014 Change Change

Energy Type Area
(1) (2) (3) (1 / 2) (2 / 3)
Coal (Tons) Regional 300,769 282,718 315,698 6.4% -10.4%
Domestic 4,704,159 4,801,000 4,817,263 -2.0% -0.3%
Electricity
(MWh) Regional 229,166 205,639 194,041 11.4% 6.0%
Domestic 2,684,626 2,559,503 2,702,915 4.9% -5.3%
In order to support the energy conservation c.2. Alternative Fuel Use Improvement
program, the Company has implemented To improve the substitution of coal use,
several programs related to energy security the Company has used biomass and B3
efforts. The energy security efforts undertaken waste as alternative fuels. Biomass used
by the Company are as follows: includes rice husk, coconut waste, and
c.1. Energy Management System waste tobacco. Meanwhile, the B3 waste
Implementation used includes oil sludge, used bag filter,
The Company plans to immediately and used material.
implement the ISO 50001-based Energy
Management System as a tool in Currently, the Company has also built
enhancing energy management efforts and developed Municipal Solid Waste
approved by international. In 2016, technology at Ngipik Landfill in Gresik
introduction of ISO 50001 based Energy to apply RDF (Refused Derived Fuel) as
Management System was delivered by an alternative fuel. The municipal waste
conducting ISO 50001 workshops on a processed is mining waste (old waste)
group basis so that it can be implemented with a design capacity of 250 tons/day.
thoroughly. By 2017, the implementation
of ISO 50001 based Energy Management
System is expected to begin to be
realized in each OpCo.
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165
PRODUCTION AND R&D
haff loading and unloading activities for alternative energy at Semen Indonesia Tuban Plant, East Java
c.3. Mazimizing WHPRG operation in Indarung Plant and Operating WHRPG in Tuban Plant
In Padang, WHRPG has been operating since 2011. It is contributing to provide 8 MVA of additional
power. Meanwhile, at the Tuban plant, the WHRPG development project that started in 2014 will provide
an additional power of 30.6 MVA. It is planned to operate by May 2017.
d. Water Use Efficiency

The Company has a commitment in maintaining the availability and quality of water resources in the plant
areas. The Company aims to limit the maximum total water consumption of 0.25 m3/tons cement plant by
optimizing the use of surface water at least 70% of total water consumption. Every month, regular group
monitoring is conducted through the “SI Ramah” mechanism.
The implemented water use efficiency programs by the Company are as follows:
o Utilizing rainwater accommodated in the water basin as process & sanitation water
o Recycling domestic wastewater & water blowdown clarifier into ready-to-use water
o Increasing surface water supply through the Interconnection between Temandang and Tlogowaru Water
basins to contain rainwater.


PRODUCTION AND R&D
e. Raw Material Conservation

To overcome the scarcity of raw materials, both raw materials for cement making process and supporting raw
materials such as kraft paper for the manufacture of cement bags, the Company has made several efforts
such as:
e.1. Craft grammature reduction program (eco friendly bag) to minimize the use of kraft paper as a cement
making material.
Starting from the use of bags with 90 gsm grammatures, the program that began 2011 has been
currently using kraft paper with 80 gsm grammatures as raw material for cement bag. In addition to
improving packaging cost efficiency and preventing scarcity of kraft supplies, this paper grammature
reduction program succesfully enhance the Company’ reputation in terms of indirect CO2 emission
reduction. Since the decrease in grammatures of kraft paper reduces the use of paper, it also reduces
the use of trees as paper raw materials.
The process of innovation and packing production is shown below:
Packing Production Image
Pasted woven
Pasted woven
packing
packing
Laminating
Laminating
Stiched Packing
Stiched Packing
e.2. Alternative Raw Material Use

The Company has utilized industrial waste as an alternative raw material. The benefits derived are major
raw material savings and contribution in preventing further pollution from B3 wastes generated by other
industries.
The examples of B3 waste that have been successfully utilized by the Company are flyash-bottom ash,
COCS, spent earth, drilling cutting, and sludge paper. Total usage of total waste in 2016 was 167,685
tons. The target of waste usage in 2017 is 507,515 tons.
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167
PRODUCTION AND R&D
3. Biodiversity
a. Utilizing former clay mine land in Temandang and Tlogowaru, Tuban as a water basin. It serves as a place for
freshwater fish cultivation and water resources for Green Belt farmers.
b. The establishment of Mangrove Center Green Socorejo in the area around the Tuban plant has helped
maintaining biodiversity around the coast of Tuban.
Image: Condition in the Mangrove Center II area (Sokorejo)
c. Endangered Flora and Fauna Conservation

Breeding of Timor Deer as a form of responsibility of the Company to participate in preserving endangered
species conducted in Tuban plant area in collaboration with Bojonegoro Natural Conservation Agency.


PRODUCTION AND R&D
Image: Vegetation condition in the Plant’s forest area
Image: Captive breeding of Timor Deers at the Plant’s Forest. Cooperation with BKSDA Bojonegoro
Planting of West Sumatra’s endemic plant, e. PT Semen Padang plays role as a Supporter
Andalas and Indarung trees, by PT Semen in Adiwiyata Program by providing productive
Padang. tree seedlings to schools in Padang.
Reforestation (rehabilitation of watersheds)

in protected forest areas of Indarung, Limau
Manis Selatan, and Lumbung Bukit covers
275 hectares.
d. Community-based synergy project of Nagari

Forest established in collaboration with West
Sumatra Provincial Forestry Office and Faculty
of Agriculture of Andalas University in Padang.
The project has strategic targets for improving AWARDS
the economy of the people, reducing dust Various efforts in improving the environmental
emissions, and reducing unemployment in the performances continually implemented to build a
corporate environment. green company environment and as a form of the
Company’s awareness on environmental quality, led to
Gaharu tree cultivation as a project activity is the achievement by the Company in 2016 as follows:
carried out in 3 regions (Nagari): Batu Gadang, 1. Green Rating for PT Semen Gresik, PT Semen
Limau Manis Selatan, and Lumbung Bukit. Padang and PT Semen Tonasa.
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169
PRODUCTION AND R&D
PT Semen Padang achieved Green Rating Award 3. The Executor Industry of Consistent
Environmental Management Reporting
Award from East Java Provincial Government
and presented by the Governor of East Java in
Surabaya
4. Indonesian Green Award in 2016 presented by

La Tofi in cooperation with the Ministry of Industry,
Ministry of Energy and Mineral Resources, Ministry
of Public Works & Housing, and Ministry of
Environment & Forestry at Taman Tebet.
PT Semen Gresik achieved Green Rating Award
R&D TO COMPETE
As part of its transformation process, the Company
seeks to strengthen R&D activities through the Center of
Research. As discussed in “Corporate Transformation”,
the Center of Research is a part of the Cement
Indonesia Center of the Champs (SICC) initiative and
the capitalization initiative of all previous excellences of
the Company’s accumulated in the subsidiaries. It aims
to build competitive advantages of the Company and
ensure the sustainability of the business and preserve
PT Semen Tonasa achieved Green Rating Award
the environment.
2. Green Industry Award Level 5 for the fifth

Semen Indonesia Center of Research consists of
consecutive times from the Ministry of Industry in
two main activity groups handled by two related
2016 for Tuban Plant
departments. They are R&D of Process & Technology
Green Industry Award Level 5 in 2016 for PT ST
and Product & Application.
Green Industry Award Level 4 in 2016 for PT SP
The research and development activities conducted in

2016 include:


PRODUCTION AND R&D
R&D on Products and Applications tested in several locations such as parking area
Product and application research and development of International University of Semen Indonesia
activities are conducted in order to produce products (UISI), Pinge-Bali Tourism Village, and Borobudur
and applications of high quality cement with more Temple Tourism Village. It made satisfying result
efficient cost and meet the needs of various customer and is now marketed through Varia Usaha
segments. It also develops new product and application Beton. Currently, it is under development of
products to fulfill the needs and expectations of pivot concrete with ‘in-situ cast method’ and has
more dynamic customers as an effort to improve begun to be applied in some areas to anticipate
competitiveness. It includes: consumers who want concrete axle by units.
• OPC (Ordinary Portland Cement) Premium • Rapid Strength Concrete (RSC) is a fast dry
is a product developed specifically to meet concrete with an open time target of 3 hours,
the needs of manufacturer customers that are 7 hours, 12 hours and 24 hours according to
sensitive to the dry speed of their products. construction requirements. RSC has been piloted
OPC Premium has successfully meet the needs at plant sites and projects owned by the Company,
of the manufacturer of asbestos/boards and as well as at the entrance of Pinge-Bali Tourism
lightweight bricks that require quick dry for the Village. RSC is manufactured through Semen
product. Some manufacturers who already use Indonesia Beton (SIB) under the product name of
this product include: Sicha Board, Asindo Board, ‘FLASHCRETE’, and has already gained market
Eternit Gresik, Citicon, Grand Elephant, Power for Toll Jagorawi project work, Toll Merak-Jakarta,
Block, Indo Brick, etc. Toll Balaraja Road, and Serpong Toll Ringroad
• Low hydration Cement is cement product project.
development with low hydration heat specifications • Self Compacting Concrete (SCC), is a concrete
(<60 cal/gram) for special project needs in which development that has the ability to flow and
the mass concrete work applications require low compact without using a vibrator. This product
concrete temperatures, such as dam projects, is very suitable to be applied to the building with
Cisokan Dam, etc. a tightly enclosed design and arch architectural
• Slag Cement is cement products development design. This product has been applied at the plant
by utilizing side products from Krakatau Posco, site and for the work of the projects owned by the
BFS (Blast Furnace Slag). It is expected to be Company.
a diversified product of the Company which
more environmentally friendly (green) advantage R&D on Packaging
since can suppress CO2 emissions per product Packaging research and development started as a
unit. This product is perfect for customers who means to achieve higher level of efficiency, to curb the
need cement with low hydration heat with high impacts of the rising packaging material prices, and
durability. to reduce the use of kraft paper in response to global
• Porous Concrete is an environmentally friendly warming effects. To achieve these objectives we have
porous concrete as a flood prevention solution done the following:
and adds water catchment area. Porous Concrete
Application in the form of Paving Axle has been
Annual Report 2016

171
PRODUCTION AND R&D
o Maximizing the use of mor economical bags o SMIG energy efficiency program, aimed
o Changing paper specification from high to reducing power and heat energy use by
grammate above 80 gsm to lower grammage modifying equipment, optimizing process,
of 75 and 70 gsm reducing false air, and improving fan efficiency
o Lowering the TEA (Tensile Energy Absorbtion) o Optimizing OPC Cement quality in Vertical
index of kraft paper to under 3 Finish Mill by using appropriate cement
o Researching the use of woven 1 ply BBLV grinding aid
bags
Semen Indonesia Center of Research Strategic
R&D on Raw Materials and Fuel Initiatives 2017
Raw material and fuel research activities include: Process & Technology RD focuses on raw materials,
o Researching and developing the use of technology, process, cement quality control, and
other industrial wastes as alternative raw energy and environmental conservation. Research and
materials, among others: fly ash, bottom ash, development activities in these areas aim to reduce
paper sludge, spent earth, COCS (crude oil production cost, improve quality, and realize green
contaminated soil). production process, or green industry.
o Researching and developing alternative fuel:
ü Using biomass, a form of alternative fuel, to Product & Application RD focuses on developing the
achieve higher efficiency and to demonstrate the best products and product application in meeting the
Company’s real awareness on reducing green customers’ needs that have become mor specific and
house gas emission (global warming) highly varied; creating green products, proactively
ü Developing RDF (Refuse Derived Fuel) from looking for future customer solutions, and supporting
municipal solid waste as a green alternative fuel the Company’s endeavors in developing downstream
o Studying new raw material sources, among cement products such as ready-mix concrete, precast
others by mapping potential lands concrete, pre-stress concrete, building materials,
o Upgrading production facility to enable them properties, and other related applications.
to use low-calorie coal
Research and Development activities are strategic
R&D on Tecnology and Process steps for the Company to boost its performance in
The Company’s technology and process research and terms product quality, productivity, cost efficiency, and
development, aimed at having effective, efficient, and revenue diversification for the benefit of the group,
green cement production, include: sustainable development, and corporate image to
o Researching coal dryer technology to lower overcome competitive markets.
water content and increase calorific value of
low-calorie coal
o Redesigning the geometry of clinker cooler
to increase its operational capability and
capacity


PERFORMANCE REVIEW
- SUBSIDIARIES
CEMENT BUSINESS Cement Revenue Chart 2014-2016
(in Rp billion)
Cement is the Company’s core business. Until the end
27500
of 2016, three subsidiaries fully manage the operational 26,335 26,155
of integrated production facilities of PT Semen 24,730
25500
Indonesia (Persero) Tbk. Another subsidiary, PT Semen
Gresik, will manage Tuban production facility under the 23500
KSO agreement starting 2017, as well as integrated

21500
facility in Rembang, Central Java, which is currently
under construction. 19500
17500
Sales from the three subsidiaries and Tuban facility
combined dominate the Company’s total revenues, 15500
accounting for 94.6% in 2016 (see also “Business 2014 2015 2016
Review-Segment Information” sub-chapter). However, Note: including clinker sales
business environment pressure that is increasingly
challenging in the last three years has also affected The unfavorable condition of the cement industry is
revenues from cement. The below chart shows that projected to continue in several years ahead. The
cement revenue has been declining in the last two operations of new facilities in Padang and Rembang
years. in 2017 are expected to boost cement contribution to
revenues as well as to the Company’s net income.
PT Semen Padang and Subsidiaries (SP)
SP Performance
(in Rp million, unless stated otherwise)
Growth (%)
Description 2016 2015 2014
'16:'15 '15:'14
Cement Production (tons) 6,456,059 6,888,513 6,671,107 (6.3) 3.3
Capacity (tons) 7,400,000 7,400,000 7,400,000 - -
Sales (tons) 6,980,615 7,252,609 7,202,746 (3.8) 0.7
Revenue 6,221,204 6,528,321 6,408,767 (4.7) 1.9
Net profit 724,012 721,985 925,040 0.3 (22.0)
Net profit margin 11.6% 11.1% 14.4% 0.6% -3.4%
Annual Report 2016

173
PERFORMANCE REVIEW - SUBSIDIARIES
One of the Company’s subsidiaries in the cement business, SP has production capacity of 7.40 million tons. This
production capacity has been steady in the past three years. In 2016, SP cement output amounted to 6.46 million
tons or decreased by 6.3% from 2015. Sales volume of cement and slag reached 6.98 million tons or decreased by
3.85 from 2015 figure of 7.25 million tons. SP generated revenues of Rp6,221 billion or decreased by 4.7% from the
previous year.
SP’s net profit increased slightly by 0.3% to Rp724 billion from Rp721 billion in the previous year; net profit margin also
rose by 0.6% to 11.6% from 11.1%.
Others
The financial consolidated statements of PT Semen Padang and subsidiaries as of 31 December 2016 was audited
by Satrio Bing Eny & Rekan Public Accountant Firm with “unqualified” opinion on all material matters. The financial
performance and consolidated cash flows for the year ended on the said date has complied the Indonesia’s Financial
Accounting Standards.
SP has the following subsidiaries:

• PT Sepatim Batamtama (SB)
Located in Batam, Riau, SB engages in general trading, cement packaging, contractor service, other services,
and general transportation activities. SP owns 97% of Sepatim’s shares. SB has Rp33.1 billion in assets at the
end of 2016.
• PT Bima Sepaja Abadi (BSA)

BSA is located in Tanjung Priok, Jakarta and engages in general trading and agency service for other companies,
cement packaging, and other related activities to cement trade. SP owns 80% of BSA’s shares. BSA’s asset value
as of the end of 2016 stood at Rp163.3 billion.
PT Semen Tonasa (ST)

ST Performance
Growth (%)
'16:'15 '15:'14
Cement Production (tons) 5,965,929 6,067,038 6,122,011 (1.7) (0.9)
Capacity (tons) 7,400,000 7,400,000 7,400,000 - -
Sales (tons) 6,842,650 6,400,256 6,613,192 6.9 (3.2)
Revenue 5,350,128 5,256,964 5,492,515 1.8 (4.3)
Net profit 603,207 556,347 713,569 8.4 (22.0)
Net profit margin 11.3% 10.6% 13.0% 0.7% -2.4%
One of the Company’s subsidiaries in the cement business, SP’s production capacity is 7.40 million tons per year. This
production capacity has been steady in the past three years. ST’s cement output in 2016 amounted to 5.96 million
tons or decreased by 1.7% from 2015. Cement and slag sales volume reached 6.84 million tons or increased by 6.9%
from 6.40 million tons in 2015. ST generated Rp5,350 billion of revenues or up 1.8% from the previous year.


ST’s net profit also grew by 8.4% to Rp603 billion from Rp556 billion, thereby posted an increase in net profit margin
by 0.7% from 10.6% to 11.3%.
Others
The financial statements of PT Tonasa as of 31 December 2016 was audited by Satrio Bing Eny & Rekan Public
Accountant Firm with “unqualified” opinion on all material matters. The financial performance and cash flows for the
year ended on the said date has complied the Indonesia’s Financial Accounting Standards.
PT Semen Gresik (SG)

SG, one of the Company’s subsidiaries, has not commenced full commercial operations. SG’s losses decreased to
Rp3.3 billion, or by 92.9% from Rp47.1 billion in 2015. The decrease of losses derived from SG’s tax gains in 2016
amounting to Rp22.1 billion.
Starting 2017, SG will manage Tuban and Gresik facilities under KSO agreement with the Company. SG’s own facility
in Rembang is slated to commence commercial operation in 2017.
Others
The financial statements of PT Semen Gresik as of 31 December 2016 was audited by Satrio Bing Eny & Rekan Public
Accountant Firm with “unqualified” opinion on all material matters. The financial performance and cash flows for the
year ended on the said date has complied the Indonesia’s Financial Accounting Standards.
Thang Long Cement Joint Stock Company and Subsidiaries (TLCC)

TLCC Performance
Growth (%)
'16:'15 '15:'14
Cement Production (ton) 2,388,022 1,979,200 1,825,413 20.7 8.4
Capacity (ton) 2,300,000 2,300,000 2,300,000 - -
Sales (Ton) 2,587,647 2,333,898 2,476,112 10.9 (5.7)
Revenue 1,555,688 1,476,982 1,402,788 5.3 5.3
Net profit (loss) (11.522) (24.557) (7.469) (53.1) 228.8
On 18 December 2012, the Company acquired 70.00% TLCC shares, headquartered in Hanoi, Vietnam. TLCC cement
company has production capacity of 2.3 million tons per annum. This capacity has been steady in the past three years.
In 2016, TLCC produced 2.39 million tons of cement, or up 20.7% from 2015. The cement and slag sales volume
stood at 2.59 million tons or increased by 10.9% from 2.33 million tons in 2015. From this sales volume, TLCC
generated Rp1,556 billion or rose by 5.3% from the previous year.
Annual Report 2016

175
TLCC managed to decrease its losses by 53.1% from • An Phu Cement Joint Stock Company (“APCC”)
Rp24.6 billion to Rp11.5 billion. APCC engages in cement production. TLCC owns
99.90% of APCC shares. .
Others
The financial consolidated statements of TLCC and NON-CEMENT BUSINESS
subsidiaries as of 31 December 2016 was audited by The non-cement business encompasses 9 business
Deloitte Vietnam Company Ltd. Public Accountant Firm segments under 10 consolidated subsidiaries and 7
with “unqualified” opinion on all material matters. The associates. Several of these business segments were
financial performance and consolidated cash flows recently developed, prepared, and initiated at the end
for the year ended on the said date has complied the of 2016, such as pre-cast concrete business under
International Financial Reporting Standard. PT Semen Indonesia Beton (SIB), trade/investment
under PT Semen Indonesia Internasional (SII), slag
TLCC has two subsidiaries: processing under PT Krakatau Semen Indonesia (KSI),
• Thang Long Cement Joint Stock Company 2 and logistics under PT Varia Usaha (VU).
(“TLCC2”)
TLCC2 engages in cement production. TLCC Total sales performance before elimination across all
owns 99.39% of TLCC2 shares. non-cement segments in 2016 grew by 10% as shown
in the following table.
Revenue of Non-Cement Subsidiaries Before Elimination
Non-Cement Business 2016 2015 2014 % Growth

'16:'15 '15:'14
PT Semen Indonesia Beton (SIB) 1,092 523 438.1 108.7 19.4%
PT SGG Energi Prima (SGGEP) 345 146 81.8 136.4 78.7%
PT Sinergi Informatika Semen Indonesia (SISI) 107 54 - 96.6 0.0%
PT Semen Indonesia Internasional (SII) 1 - - - 0.0%
PT Varia Usaha dan entitas anak (VU) 1) 3,834 3,970 4,731.5 (3.4) -16.1%
PT Kawasan Industri Gresik (KIG) 39 34 52.0 14.3 -34.3%
PT Industri Kemasan Semen Gresik (IKSG) 273 231 238.0 18.2 -3.0%
PT United Tractors Semen Gresik (UTSG) 458 493 457.5 (7.1) 7.8%
PT Krakatau Semen Indonesia (KSI) 3 7 0.2 (62.8) 2925.5%
PT Swadaya Graha (SWG)2) 1,007 1,053 1,000.6 (4.3) 5.2%
Note:
1) Consolidation started in November 2016 (two months of consolidated revenues amounted to Rp798 billion)
2) Not consolidated


The total non-cement business revenue after elimination Concrete

indicated promising growth as shown by below chart PT Semen Indonesia Beton and Subsidiaries
(see also “Business Segment” sub-chapter). In view of PT Semen Indonesia Beton dan subsidiaries (SIB),
the various preparation steps that the Company took in formerly PT SGG Prima Beton (SGGPB), was
2016, the Company targets to have significant growth incorporated on 11 April 2012 and headquartered in
of non-cement business contribution, especially Gresik. SGGPB engages in concrete business, offering
considering that a number of segments and subsidiaries all types of concrete from ready-mix and pre-stressing
will fully operate in 2017. These subsidiaries include: SII to various pre-cast concrete types, composite
in trading, VU in logistics, KSI in slag processing, and concrete, and development of raw materials for
SIB in pre-cast concrete. concrete production. SIB commenced its commercial
operations in January 2013.
The Company believes that the performance of newly
developed subsidiaries will experience notable growth, The Company owns 99.99% of SIB’s shares; a
as the government continues to accelerate infrastructure cooperative unit, Koperasi Warga Semen Gresik, owns
projects and the substantial captive market potential the remaining 0.01%. SIB’s core activities are focused
especially in logistics cement business. Despite still on meeting concrete demands – ready-mix and pre-
being in its initial phase n 2016, this segment has stress concrete.
contributed considerably to lowering transport cost
and, as shown by above table, dominated the revenues In 2016, PT Varia Usaha Beton (VUB), a subsidiary of
of non-cement business before elimination. SGGPB, issued shares from its portfolio that has been
purchased entirely by SGGPB. The purchase increased
Going forward, the Company will continue developing SGGPB’s ownership to 50.9%. PT Varia Usaha (VU),
various business lines that can complement its core shareholder of VUB, and SGGPB agreed that SGGPB
business. as the majority shareholder will also be the controlling
entity of VUB. As of 30 June 2016, SGGPB changed
Non-Cement Revenue Contribution after Elimination its name to PT Semen Indonesia Beton (SIB) and is
directly controlled by the Company.
Non-Cement Revenue (Rp Billion)
1,405
The Company’s corporate action through SIB was part
1600
1400 of PT Semen Indonesia’s business development in the
1200 ready-mix concrete, pre-cast concrete, and masonry
1000
793 concrete segments. The Company plans to develop
800 652 SIB as a leading concrete company in Indonesia.
600
400
Profitability
200
0 In 2016, SIB posted Rp1,091 billion in revenues, grew
108.5% from Rp523.2 billion in 2015.
2014 2015 2016
Annual Report 2016

177
Net profit – including other expenses (net) of Rp8.8 • General trading activities – trading, marketing,
billion and tax expenses of Rp0.5 billion - stood at and distribution of production output and coal
Rp7.8 billion from Rp1.2 billion in the previous year. mining output to domestic and overseas markets
Net margin stood at 0.7%. Return on equity in 2016 • Transportation activities – transporting coal
reached 1.9% from 0.7% in 2015. mining output from site to transfer point, hauling,
jetty operations, and cargo port.
Others
Amir Abadi Jusuf, Aryanto, Mawar & Rekan Public The Company and Koperasi Warga Semen are the
Accountant Firm declared unqualified opinion on all shareholders of SGGEP with 97% and 3% ownership,
material aspects for the financial statements of SIB and respectively. SGGEP’s activities are focused on
subsidiaries (formerly SGGPB) for the year ended 31 complementing the Company’s main business
December 2016. especially to secure coal supply.
Subsidiaries Profitability
PT Varia Usaha Beton SGGEP started its commercial operations in May 2013.
Engaged in the downstream sector of cement industry, Almost its entire output/commodities are supplied to
VUB provides a variety of products including Ready- the Company, making its transactions as inter-company
Mix Concrete, Masonry Concrete, Pre-cast Concrete, transactions and will be eliminated in the Company’s
and Crushed Stones. consolidated statements. SGGEP’s sales to the holding
company in 2016 amounted to Rp3.9 billion.
SIB and VU are VUB’s shareholders with 50.9% and
49.1% share ownership, respectively. SGGEP’s total revenues in 2016 reached Rp354.4
billion grew 36.4% from Rp146 billion in 2015.
VUB revenue in 2016 reached Rp838.06 billion, up
7.5% from Rp779.56 billion in 2015. Profit after tax Net profit – including other expenses (net) of Rp864
reached Rp23.97 billion, grew 76% from Rp13.59 million and tax expenses of Rp3.5 billion - stood at
billion in 2015. Rp7.1 billion or rose by 130% from Rp3.1 billion in the
previous year. Net margin stood at 2.1%, a stable net
Coal Mining margin from 2015 position. Return on equity in 2016
PT SGG Energi Prima reached 20.1% from 10.9% in 2015.
PT SGG Energi Prima (SGGEP) was established in
29 December 2011 and is based in Gresik. SGGEP is
engaged in:
• Mining activities:
o Coal mining
o General enquiries
o Exploration, processing, refining, production,
storage, and post-mining
o Feasibility studies
o Constructions


Others Others
Amir Abadi Jusuf, Aryanto, Mawar & Rekan Public Gani Sigiro & Handayani Public Accountant Firm
Accountant Firm declared unqualified opinion on all declared unqualified opinion on all material aspects for
material aspects for the financial statements of PT the financial statements of SISI for the year ended 31
SGGEP for the year ended 31 December 2016. December 2016.
Information Technology Trading Company

PT Sinergi Informatika Semen Indonesia (SISI) PT Semen Indonesia International (SII)
PT Sinergi Informatika Semen Indonesia (SISI), PT Semen Indonesia International (SII) was established
established on 9 June in 2014 and based in Jakarta on 1 June 2016. Based in Jakarta, SII is engaged in:
is 85% owned by the Company. PT Semen Gresik, • General trading, including export and import
PT Semen Padang, and PT Semen Tonasa own the activities
remaining shares with 5% shares respectively. • Logistics, including freight fordwarding, port
management, and land and sea transportation
As an ICT service provider, SISI positions the service to complement export-import activities
organization as a one-stop solution provider where all • Trade and supply chain management services
ICT needs – including operational support, business • Direct and indirect investment in other
solution delivery, to ICT governance – are serviced by companies
SISI. The service packages are tailored according to
customers’ needs. The Company owns 85% of SII shares. PT Semen
Gresik, PT Semen Padang, and PT Semen Tonasa own
In 2016, SISI also serviced business entities other than the remaining shares with 5% shares respectively.
the Company albeit not generating significant value.
SII has not commenced commercial operations in
Profitability 2016 and its financial results was not audited by Public
SISI generated a total of Rp106.9 billion in revenues, or Accountant Firm.
rose by 96.5% from Rp54.4 billion in 2015.
Logistics
Net profit – including other expenses (net) of Rp307 PT Varia Usaha and Subsidiaries (VU)
million and tax expenses of Rp2.3 billion - stood at VU, a subsidiary of the Company and based in Gresik-
Rp6.8 billion or grew 178.9% from Rp2.4 billion in East Java, is engaged in general transportation and
the previous year. Net margin stood at 6% from 4.5% freight forwarding activities by trucks and/or cargo
in 2015. With these results, return on equity in 2016 train; trading including domestic interinsular export-
reached 26% from 11% in 2015. import, agency, distribution, and other trading activities,
industria activities and construction, and mining
(general study, exploration, exploitation, refining,
transporting, and sale of mining output).
Annual Report 2016

179
On 1 November 2016, the Company acquired 48.7% PT Waru Abadi

of total issued and paid-in shares of VU owned by Engaged in construction materials, especially as
Dana Pensiun Semen Gresik (DPSG). The acquisition distributor of Semen Gresik, metal, and cement fiber.
of shares increased the Company’s ownership in VU to
73.65%. Koperasi Warga Semen Gresik owned 26.35% The total revenues of PT Waru Abadi in 2016 reached
remaining shares. Rp907.15 billion or decreased by 8.6% from 2015
result of Rp992.36 billion. Profit after tax in 2016 stood
VU is directly controlled by the Company. at Rp21.45 billion or decreased by 30% from 2015
realization of Rp30.52 billion.
VU Grup Profitability
In 2016, VU Group delivered consolidated revenues of Net margin stood at 2.4% from 3% in 2015.
Rp4.6 trillion, decreased by 6.1% from Rp4.9 trillion in
the year earlier. PT Varia Usaha Bahari
PT Varia Usaha Bahari is one of PT Varia Usaha’s
Net profit – including other expenses (net) of Rp16.5 subsidiaries. Established in 1992, it engages in port
billion and tax expenses of Rp16.6 billion - stood at cargo handling services of bulk, bags, and general
Rp104.3 billion or decreased by 12.6% from Rp118.6 cargo.
billion in the previous year. Net margin stood at 2.25%
from 2.40% in 2015. With these results, return on equity In 2016, it generated total revenues of Rp75.9 billion,
in 2016 reached 17.8% from 21.2% in 2015. rose by 42% from Rp 53.4 billion in 2015. Profit after
tax stood at Rp10 billion or increased by 14.9% from
Others Rp8.7 billion in 2015.
Amir Abadi Jusuf, Aryanto, Mawar & Rekan Public
Accountant Firm declared unqualified opinion on all Net Margin stood at 13% from 16% in 2015.
material aspects for the financial statements of PT Varia
Usaha for the year ended 31 December 2016. PT Varia Usaha Dharma Segara
PT Varia Usaha Dharma Segara engages in international
Subsidiaries freight forwarding activities. Varia Usaha Dharma’
To optimally capture all business opportunities and revenues are not consolidated, as the Company does
meet the different business aspects and prerequisits, not control direct ownership of its shares.
PT Varia Usaha has a number of subsidiaries:
Revenues in 2016 amounted to Rp88.5 billion or
decreased by 49.3% from Rp174.6 billion in 2014.
Profit after tax reached Rp3.4 billion or decreased by
69.9% from Rp11.3 billion in 2015.
Net margin stood at 3.7% from 6.4% in 2015.


PT Varia Usaha Lintas Segara Others

PT Varia Usaha Lintas Segara, established in 1997 and Amir Abadi Jusuf, Aryanto, Mawar & Rekan Public
based in Gresik, engages in the national interinsular Accountant Firm declared unqualified opinion on all
services, interinsular vessel agency, export/import material aspects for the financial statements of KIG for
agency, vessel logistics, and barge owner/operator. the year ended 31 December 2016.
Revenue realized in 2016 amounted to Rp190.2 billion Packaging Bags

or increased by 74.3% from Rp109.1 billion in 2015. PT Industri Kemasan Semen Gresik (IKSG)
Profit after tax stood at Rp3.24 billion or grew 163% IKSG engages in packaging production or packaging
from 2015 realization of Rp1.24 billion. industry, trade, and services. Based in Tuban-East
Java, the Company owned 60% shares, 30% by PT
Net margin stood at 1.7% from 1.1% in 2015. Fajar Mas Murni, and 10% by PT Newlong Indonesia.
Real Estate Profitability

PT Kawasan Industri Gresik (KIG) IKSG’s total revenues in 2016 was Rp272.8 billion, up
KIG, based in GresiK-East Java, engages in industrial 18% from Rp230.87 billion in 2015.
estate business that includes the acquisition,
development, sales and lease of industrial areas, Net profit – including other expenses (net) of Rp681
warehouses, shops, and ready-use plants in and outside million and tax expenses of Rp10.3 billion - stood at
the estate. KIG is also involved the in construction of Rp29.4 billion or up by 14.4% from Rp25.7 billion in the
public facilities such as road, water service, power, and previous year. Net margin stood at 11% from 11.4%
others. The Company owns 65% shares of KIKG and in 2015. With these results, return on equity in 2016
PT Petrokimia Gresik (Pesero) owns 35% of KIKG’s reached 13% from 15% in 2015.
shares.
Others
Profitability Satrio Bing Eny & Rekan Public Accountant Firm
The total revenues in 2016 amounted to Rp39.1 billion declared unqualified opinion on all material aspects for
or up 14.3% from Rp34.2 billion in 2015. the financial statements of IKSG for the year ended 31
December 2016. The financial performance and cash
Net profit – including other expenses (net) of Rp1.4 flows for the year ended of the said date has complied
billion and tax expenses of Rp4.8 billion - stood at with the Indonesia’s financial accounting standard.
Rp2.5 billion or up by 31.6% from Rp1.8 billion in the
previous year. Net margin stood at 6.2% from 5.3%
in 2015. With these results, return on equity in 2016
reached 14.6% from 12.9% in 2015.
Annual Report 2016

181
Mining Services Net profit – including other expenses (net) of Rp10

PT United Tractors Semen Gresik (UTSG) billion and tax expenses of Rp13.9 billion - stood at
UTSG is based in Tuban, East Java and engages in Rp41 billion or up by 20% from Rp34 billion in the
mining, trading, and service delivery. The Company previous year. Net margin stood at 8.9% from 6.4%
owns 55% of UTSG shares and PT United Tractors Tbk in 2015. With these results, return on equity in 2016
owns the remaining 45%. UTSG’s main activities are reached 28% from 30% in 2015.
focused on complementing the Company’s production
activities, especially in terms of limestone and clay Others
quarrying services. Satrio Bing Eny & Rekan Public Accountant Firm
declared unqualified opinion on all material aspects for
UTSG revenues are predominantly derived from the financial statements of UTSG for the year ended 31
limestone and clay quarrying, blasting services, December 2016. The financial performance and cash
equipment lease, and clay sales. UTSG’s profitability is flows for the year ended on the said date has complied
determined by its capacity of supplying raw materials with the Indonesia’s financial accounting standard.
to the Company as efficiently as possible as well as its
capability to utilize its competence in mining and heavy Slag Processing Industry
equipment fleet management. PT Krakatau Semen Indonesia (KSI)
KSI is based in Cilegon, Banten Province. It engages
UTSG provides the majority of its services to meet in cement raw material production and its main trade
raw material needs of Tuban facility, operated by PT is processing Granulated Blast Furnace Slag (GBFS)
Semen Indonesia (Persero) Tbk in 2016. As such, most to Ground Granulated Blast Furnace Slag (GGBFS) or
of its sales are treated as intercompany transactions Slag Power that is utilized in the cement production of
and were eliminated in Semen Indonesia cconsolidated PT Semen Indonesia (Persero) Tbk.
statements. UTSG’s total transaction with the Company
in 2016 amounted to Rp114 billion or 24.9% of the total The Company and PT Krakatau Steel (Persero) Tbk are
revenues. the shareholders of KSI with 50% respective ownership.
KSI has not commenced commercial operations.
Profitability
UTSG’s total revenue in 2016 was Rp458.1 billion,
decreased by 7.1% from Rp493.3 billion in 2015.


Profitability Profitability
Total KSI revenue in 2016 was Rp2.6 billion, decreased In 2016, SWG booked Rp1 trillion in revenues,
by 63.4% from Rp7.1 billion in 2015. In 2016, the decreased by 4.8% from Rp1.05 trillion in 2015.
Company recorded Rp3.2 billion losses from Rp3.7
billion losses in 2015. Net profit – including other expenses (net) of Rp9.6
billion and tax expenses of Rp31.3 billion - stood at
Others Rp8.8 billion or decreased by 69% from Rp28.1 billion
Satrio Bing Eny & Rekan Public Accountant Firm in the previous year. Net margin stood at 0.9% from
declared unqualified opinion on all material aspects for 2.7% in 2015. With these results, return on equity in
the financial statements of KSI for the year ended 31 2016 reached 5.1% from 25% in 2015.
December 2016. The financial performance and cash
flows for the year ended on the said date has complied Others
with the Indonesia’s financial accounting standard. Amir Abadi Jusuf, Aryanto, Mawar & Rekan Public
Accountant Firm declared unqualified opinion on all
material aspects for the financial statements of SWG
OTHER BUSINESS SEGMENTS for the year ended 31 December 2016.
The Company owns a number of associates. Their
financial results are recognized in the consolidated
financial statements using equity method. The activities
of the associates vary, but in general complement the
Company’s operations. The associates are:
PT Swadaya Graha (SWG)

Based in Gresik, East Java, SWG is engages in steel
fabrication, civil contractor service, mechanical
and engineering contractor service, lease of heavy
equipment, and construction activities. SWG’s
shareholders consist of the Company with 25.0%
ownership, Dana Pensiun Semen Gresik with 62.5%
ownership, PT Varia Usaha with 8.1% ownership, and
Koperasi Warga Semen Gresik with 4.4% ownership.
Annual Report 2016

183
FINANCIAL REVIEW
The Group consistent efforts in

implementing various initiatives
under “3+1 Strategy” has enabled
the Company to deliver financial
and operational performance
that was above industry average
despite the unfavorable business
climate.
The Company’s revenues

contracted by only 3% to Rp26.1
trillion, while total sales volume
rose by 1.4% to 29.1 million
tons. Cost transformation
implementation also succeeded in
lowering the cost of revenues and
operating expenses. As a result,
the Company posted Rp4.5 trillion
of net income, or stable from 2015
position.
DARMAWAN JUNAIDI
Finance Director
With this accomplishment, the Company currently has robust foundation

to obtain a more favorable funding support to finance the development
of best cement business model, realizes commercial excellence, and
propels Semen Indonesia forward to win the competition, be the market
leader, and deliver sustainbale performance in the future.”


FINANCIAL REVIEW
Programs: • Non-cement proportion has continued to grow

1. Identfying alternative funding sources and best from 2.4% in 2014, 2.9% in 2015, to 5.4% in 2016.
schemes to support the Company’s development • The Company targets in posting sustainable
in order to grow the best cement business model grwoth of non-cement revenue contribution
2. Monitoring cost transformation initiative through measured and well thought-out
implementation as a basis of evaluation and investment decisions in the downstream sector
improvement and businesses that complement cement
3. Maintaining and safeguarding the Company’s segment. The Company also targets to grow
assets value from operational and non-operational cement revenues by expansion; the Company has
risks at accountable costs new integrated plants in Rembang and Padang,
4. Ensuring the accuracy of financial transaction slag-grinding mill in Cigading (to be operational
accounting immediately), and integrated plant in Aceh and
5. Managing cash flows to ensure the Company has Kupang (preparing for construction).
the capacity to mitigate risks
Revenues Composition (in Rp billion)
PERFORMANCE HIGHLIGHTS 28,000 26,987.0 26,948.0 26,134.3

-3.0%
27,000
651.7
793.0
REVENUE AND REVENUE COMPOSITION 26,000
1,404.7
25,000
• The Company’s revenues amounted to Rp26,134.3
24,000
26,155.0
26,335.4
billion or decreased by 3.0% from Rp26,948 billion
24,729.6
23,000
in the previous year. This decrease was impacted 22,000
by the decline of average selling price that was not 21,000
offset by the increase of sales volume. Average 22,000
selling price decreased by + 4.4%, while the total 2014 2015 2016
Non-Cement Revenues Cement Revenues
sales volume rose by 1.4%.
• The Company still outperformed the industry
average, where industry players in general Controlling Cost of Revenues and Operating
recorded up to 6.5% of selling price contraction, Expenses with Cost Transformation
while sales volume also decreased. To better control cost of revenues, operating expenses,
• Revenues in 2016 consisted of cement segment and to prepare the foundation for quality and long-term
amounted to Rp24,729.6 billion and contribution growth, the Company introduced a strategic initiative
from non-cement segment amounted to called Cost Transformation. Cost transformation
Rp1,404.7 billion. covered the following strategies:
• Cement sales contribution has been declining in
the past 3 years due to tight competition, while
non-cement contribution is improved.
Annual Report 2016

185
FINANCIAL REVIEW
• Cost control, exercised over all components of • Other fabrication cost control, including:
cost of revenues and goods sold: • Maintenance cost index efficiency and
• Energy cost control, including: reducing patch job
• Reducing coal and fuel consumption • Centralizing material outsourcing and
figure/index by maintaining its best level management
of performance
• Evaluating coal purchase, adjusting • Optimizing heavy equipment procurement through
accurately to production needs and effective and efficient procurement pattern
focusing on lowering the cost of coal per The Cost Transformation implementation
ton/slag successfully reduced the Cost of Revenues by
• Substituting diesel fuel with other types of 0.1% to Rp16,278.4 billion from Rp16,302.0 billion.
diesel at a lower cost • Cost of goods sold per ton cement and slag
• Optimizing and centralizing the purchase lowered to Rp599 thousand, decreased
of industrial fuels in order to obtain by 1.5% from Rp568 thousand.
competitive pricing • Operating expenses decreased by 1.5% to
• Optimizing electricity use index in plants, Rp4,628.8 billion from Rp4,700.5 billion in 2015
especially equipment that consumed despite inflation rate that rose to 3.02%.
large power/kWh by maintaining the best • Margin COGS to Sales and SGA to Sales was
performance level of each equipment relatively more stable compared to the previous
• Optimizing power plant and WHRPG period.
utilization
Cost of Revenues and Operating Expenses
• Distribution cost control, including: (in Rp billion)
• Evaluating vessel agreement to reach a
more optimum rate 4,700.5 4,628.8
22,000
4,436.7
• Optimizing and increase vessel utilization
20,000
through synergy to improve freight cost
18,000
efficiency
16,000
• Optimizing the use of land transport
14,000
16,278.4
vehicles, choosing suitable types of 15,408.2 16,302.0
12,000
vehicles and distribution pattern
10,000
2014 2015 2016
• Raw material cost control, including: Operating Expenses Cost of Revenues
• Optimizing raw material procurement

using the most optimum source
• Optimizing the use of materials and most
efficient composition
• Optimizing and used recycled materials


FINANCIAL REVIEW
COGS to Sales and SGA to Sales margin

TOTAL ASSETS AND FIXED
(in %)
ASSETS
70
60.5 62.3 • The Company’s total assets rose following
57.1
60
the realization of investment that has been
50 continuously carried out in the past several
40 years. As of 2016, total assets grew by 15.9%
30 to Rp44,226.9 billion from Rp38,153.1 billion in
20 16.4 17.4 17.7 2015.
• Fixed Assets rose by 22.6% in 2016 to Rp30,846.8
10
2014 2015 2016 billion from Rp25,167.7 billion in 2015. In 2015,
COGS to Sale SGA to Sale fixed asset increased by 24.5%. The Company
recorded investment realization of new plants in
Gross Profit, Operating Income, and EBITDA this account as well as packing plant, WHRPG
The successful cost control initiative managed to project, grinding plant project, and plant upgrade
decelerate the decline of gross profit, operating projects in Padang, Tonasa, and Tuban.
income, and EBITDA. • Fixed Assets dominated the Total Assets,
contributed 69.7% in 2016 and 66.0% in 2015.
Gross Profit, Operating Income, and EBITDA • The value of Total Assets in the future will continue
(in Rp billion) to increase, in line with the realization of new
12,000.0 11,578.9 production facilities.

10,646.0
11,000.0
9,855,9
• Aligned with the investment realization, the cash
10,000.0
8,491.9
and cash equivalents in the past 3 years has
9,000.0
8,000.0 7,142.2
7,473.5 continued to decline from Rp4,926.0 in 2014,
6,962.9
7,000.0 5,545.5 decreased by -19.5% to Rp3,964.0 billion in 2015,
6,000.0 5,227.1
and again by 28.5% in 2016 to Rp2,834.4 billion.
5,000.0
4,000.0 The decerase indicated the use of the Company’s
3,000.0 internal cash to fund investments.
2014 2015 2016
Gross Profit Operating Income EBITDA
44,226.9
45,000.0
38,153.1
Net Profit 40,000.0
34,331.7
35,000.0
The Company managed to maintain its net profit 30,846.8
30,000.0 25,167.7
achievement compared to the previous year.
26,155.0
24,729.6
25,000.0 20,221.1
20,000.0
Net Proft (in Rp billion)
15,000.0
6,000.0 5,559.9 10,000.0

5,500.0 2014 2015 2016
5,000.0
4,521.5 4,521.6
Total Assets Fixed Assets
4,500.0
4,000.0
3,500.0
3,000.0
2,500.0
2,000.0
2014 2015 2016
Annual Report 2016

187
FINANCIAL REVIEW
LIABILITIES AND EQUITY Equity, Long-Term Liabilities, and short-term Liabilities

(in Rp billion)
• Liabilities
o The Company’s total liabilities also increased
48,000
following investment realization and growth
43,000 6,599.2
of business scale. In 2016, liabilities rose by 38,000 5,271.9 8,151.7
27.5% to Rp13,652.5 billion from Rp10,712.3 33,000 5,500.8

billion in 2015. 28,000
4,054.8
4,113.1
23,000
o Long-term Liabilities that reflects third-party
18,000 27,440.8 30,574.4
funding support also increased. With the 25,004.0
13,000
shift of funding source policy, the Company’s 8,000
Non-current liabilities in 2016 increased 2014 2015 2016
by 33.7% compared to 1.4% incrase in Current Liabilities Non-Current Liabilities Equity
2015. In nominal, Non-current liabilities in

2016 amounted to Rp5,500.8 billion from
Rp4,113.1 billion in 2015. INTRODUCTION TO FINANCIAL
o Non-current liabilities will continue to REVIEW
increase in 2017 and the years ahead, as the The following discussion on financial review reflects
Company will step up its efforts to obtain the Company’s operational results discussed under
long-term financing for investment and for the Operational Review Chapter. The following financial
refinancing of liabilities due shortly. performance discussion and analysis refer to the
Company’s Consolidated Financial Statements as at
• Equity 31 December 2016 and 2015 attached to this Annual
o The Company’s total equity has continued Report. The Consolidated Financial Statements has
to increase following the growth of earnings been audited by Public Accountant Firm Satrio Bing
contributed by its net profit in each operating Eny & Rekan and received unqualified opinion on all
year. material aspects, and that the financial position of PT
o The increase of total equity reflects the Semen Indonesia (Persero) Tbk and subsidiaries as at
Company’s ability in addressing risks in its 31 December 2016, financial performance, and cash
operational activities and financial capacity flows for the year ended on the said date are presented
in raising funds. in accordance with Indonesian Financial Accounting
o The Company’s total equity in 2016 grew by Standard.
11.4% to Rp30,574.4 billion from Rp27,440.8
billion in 2015. The financial performance analysis refers the
explanation under the Notes to Consolidated Financial
Statements that are integral to this Annual Report.


FINANCIAL REVIEW
HIGHLIGHTS OF CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

Revenues, Gross Profit, Operating Income, and Net Profit (in Rp billion)
30,000 26.987,0 26,948.0 26.134.3

25,000
20,000
15,000
7,142.2 5,945.5 5,227.1
10,000
5,559.9 4,521.5
5,000 4,521.6
0
2014 2015 2016
Revenues Operating Income Net Profit
HIghlights of Group Consoliated Profit and Loss Statements, 2014-2016

Growth (%)
Profit/Loss 2016 2015 2014
'16:'15 '15:'14
Revenues 26,134,306 26,948,004 26,987,035 (3.0) (0.1)
Cost of Revenues (16,278,434) (16,302,008) (15,408,158) (0.1) 5.8
Net profits 9,855,872 10,645,996 11,578,877 (7.4) (8.1)
Operating income (4,628,759) (4,700,465) (4,436,699) (1.5) 5.9
Net income 5,227,113 5,945,531 7,142,178 (12.1) (16.8)
Income attributable to holders of
4,521,596 4,521,491 5,559,902 0.0 (18.7)
parent entity
EBITDA* 6,962,934 7,473,542 8,491,877 (6.8) (12.0)
Total Weighted Average of
5,931,520 5,931,520 5,931,520 - -
Outstanding Shares (in thousand)
Earnings per share (Rupiah) 762 762 937 0.0 (18.7)
*(Operating income including depletion, depreciation, and amortization)
REVENUES
The Company Revenues Composition, 2014-2016
2016 2015 2014 Growth (%)
Description
Revenue (%) Revenue (%) Revenue (%) '16:'15 '15:'14
Cement1 24,729,647 94.6 26,154,977 97.1 26,335,351 97.6 (5.4) (0.7)
Non-cement 1,404,659 5.4 793,027 2.9 651,684 2.4 77.1 21.7
TOTAL 26,134,306 100.0 26,948,004 100.0 26,987,035 100.0 (3.0) (0.1)
1) Including slag sales
Annual Report 2016

189
FINANCIAL REVIEW
The Company’s revenues in 2016 amounted to subsidiaries, a group in Freight Forwarding, which
Rp26,134 billion or decreased by 3.0% compared to generated additional Rp800 billion of revenues, or
Rp26,948 billion in 2015 – which was also contracted equal to 25% of the total non-cement revenues.
form 2014. The decline in 2016 was affected by thr
decrease in cement revenues by 5.4% to Rp24,730 Other revenues generators are: Limestone and Clay
billion from Rp26,155 billion, in comparison to the quarrying that contributed Rp458 billion, decreased
0.7% decrease in the previous year. Conversely, the by 7% from Rp493 billion in the previous year; coal
contribution from non-cement segment surged by segment generated Rp345 billion, grew 136% from
77.1% from Rp793 billion to Rp1,405 billion in 2016, Rp146 billion in the previous year; packaging bags
continuing the growth trend of previous year with 2.4% contributed Rp297 billion, rose by 29% from Rp231
growth. With this increase, non-cement proportion also billion in the previous year; Information System segment
rose from 2.4% in 2014 to 5.4% in 2016. The following contributed Rp107 billion, grew 97% from Rp54 billion
table presents non-cement contribution in details: in the previous year; and other segments contributed
Non-Cement Revenues, 2014-2016

2016 2015 2014 Growth (%)
Description
Revenue (%) Revenue (%) Revenue (%) '16:'15 '15:'14
Ready-mix concrete 1,091,633 35 523,179 35 438,101 35 109 19
Freight forwarding 799,770 25 - - - - - -
Limestone and clay quarrying 458,096 15 493,280 33 457,532 36 (7) 8
Coal 345,413 11 146,124 10 81,765 6 136 79
Packaging bags 297,707 9 230,870 16 237,952 19 29 (3)
Information system 106,859 3 54,358 4 - - 97 -
Others 41,715 1 41,260 3 52,262 4 1 (21)
Total revenues 3,141,191 100 1,489,071 100 1,267,611 100 111 17
Elimination (transaction between
segments) (1,736,532) (696,044) (615,926) 149 13
Non-cement contribution 1,404,659 793,027 651,684 77 22
Redy-mix concrete was the largest revenue contributor Rp42 billion, rose by 1% from Rp41 billion in the
in the non-cement segment, generating Rp1,092 bilion previous year. In total, before segment elimination, non-
or 35% of the total non-cement revenues (before cement revenues grew 17% from 2014 to 2015, and
elimination), up 109% from Rp523 billion in 2015. The surged by 111% from 2015 to 2016.
increase was generated from the inorganic growth
through the acquisition of PT Varia Usaha Beton By target market, the Company’s revenues can be
by PT Semen Indonesia Beton in 2016. In addition, grouped as follows:
the Company also acquired PT Varia Usaha and


FINANCIAL REVIEW
Revenues by market, 2014-2016

Growth (%)
Market 2016 2015 2014
'16:'15 '15:'14
Volume (in Tons)
Indonesia 25,810,791 26,069,154 26,163,372 (1.0) (0.4)
Regional 3,300,067 2,639,650 2,362,994 25.0 11.7
Total 29,110,858 28,708,804 28,526,366 1.4 0.6
Revenues (in Rp million)
Indonesia 24,578,859 25,559,545 25,610,861 (3.8) (0.2)
Regional 1,555,447 1,388,459 1,376,175 12.0 0.9
Total 26,134,306 26,948,004 26,987,035 (3.0) (0.1)
Average price
Indonesia 952,271 980,452 978,884 (2.9) 0.2
Regional 471,338 526,001 582,368 (10.4) (9.7)
Total 897,751 938,667 946,038 (4.4) (0.8)
Volume including slag
In 2016, the Company booked domestic sales volume of 25.8 million tons or
decreased by 1% from 26.07 million tons in the previous year. The decrease
was an effect of cement oversupply that pushed the competition in the
domestic market. To overcome this, the Company also targeted regional
market by exporting its products and optimizing the presence of its subsidiary
overseas (Vietnam). The Company was able to boost regional sales volume
by 25% from 2.6 million tons to 3.3 million tons. As the result, the Company’s
aggregated sales volume rose from 28.7 million tons to 29.1 million tons, or
1.4% increase. This growth was higher compared to the growth of 2014 to
Despite stringent
2015 at 0.6%.
competition, the Company
was able to increase its
In the domestic market, the Company posted Rp24,579 billion revenues, or sales volume to 29,1
3.8% lower from Rp25,560 billion in the previous year. Meanwhile, regional million tons or increased
revenue rose by 12% to Rp1,555 billion from Rp1,388 billion in 2015. by 1,4%.
As such, the average price – calculated from total revenues divided by cement
and slag sales volume – was decreased by 4.4% from 2015, a sharper dip from
0.8% in the previous year.
Annual Report 2016

191
FINANCIAL REVIEW
COST OF REVENUES
The main components in cost of revenues with respect to cement production
are fabrication costs consisting of fuel (coal), electricity, distribution, packaging,
and others. Altough sales volume increased, the Company was able to lower its
cost of revenues through a number of efforts, including the cost transformation
initiative.
Cost Transformation
is the Company’s Cost of Revenues (in Rp billion)
response to Cost of Revenues
decreasing price
trend 18,000
16,302.0 16,278.4
17,000 15,408.2
16,000
15,000
14,000
Cost of Revenues
13,000
12,000
11,000
10,000
2014 2015 2016
Cost of Revenues, 2014-2016

2016 2015 2014 Growth (%)
Description
Beban (%) Beban (%) Beban (%) 2016:2015 2015:2014
Energy 5,562,627 34.2 5,964,400 36.6 5,865,497 38.1 -6.7 1.7
Distribution 1,813,252 11.1 2,367,693 14.5 2,422,649 15.7 -23.4 -2.3
Raw materials 826,407 5.1 873,465 5.4 873,556 5.7 -5.4 0.0
Depreciation 1,564,271 9.6 1,333,591 8.2 1,192,462 7.7 17.3 11.8
Manpower 1,534,007 9.4 1,402,508 8.6 1,372,672 8.9 9.4 2.2
Other fabrication costs 4,977,869 30.6 4,360,351 26.7 3,681,322 23.9 14.2 18.4
TOTAL 16,278,433 100.0 16,302,008 100.0 15,408,158 100.0 -0.1 5.8
The Company succeeded in lowering its cost of revenues by 0.1% from

Rp16,302 billion in 2015 to Rp16,278 billion and cost of goods sold per ton
cement and slag by 1.5% from Rp568 thousand to Rp559 thousand despite
inflation rate at 3.02%.
Energy
The Company’s energy expenses in 2016 amounted to Rp5,563 billion,
decreased by 6.7% from Rp5,694 billion in 2015. Cost transformation
strategies to control energy cost included:


FINANCIAL REVIEW
• Reducing coal and fuel consumption Raw Material Cost

figure/index by maintaining its best level of The Company recorded Rp826 billion of raw material
performance cost in 2016, decreased by 5.4% from Rp873 billion in
• Evaluating coal purchase, adjusting accurately 2015. The Company exercised a number of strategies
to production needs and focusing on lowering to better manage raw material cost, including:
the cost of coal per ton/slag • Optimizing raw material procurement using the
• Substituting diesel fuel with other types of most optimum source
diesel at a lower cost • Optimizing the use of materials and most efficient
• Optimizing and centralizing the purchase of composition
industrial fuel in order to obtain competitive • Optimizing and using recycled materials
pricing
• Optimizing electricity use index in plants, Other Fabrication Cost
especially equipment that consumed Other fabrication cost in 2016 amounted to Rp4,978
large power/kWh by maintaining the best billion, rose by 14.2% from Rp4,360 billion in 2015.
performance level of each equipment Cost components under other fabrication cost are
• Optimizing power plant and WHRPG packaging, maintenance, general and administratin,
utilization. tax, and insurance. The increase in other fabrication
costs was mainly due to the joining of a number of non-
Distribution Cost cement subsidiaries, where the financial statements
Distribution expenses in 2016 amounted to Rp1,813 was consolidated in 2016. The Company exercised the
billion or decreased by 23.4% from Rp2,368 billion following strategies to curb the increase of fabrication
in 2015. Cost transformation strategies to control costs:
distribution cost included: • Maintenance cost index efficiency and reducing
• Evaluating vessel agreement to reach a more patch job
optimum rate • Centralizing material outsourcing and management
• Optimizing and increasing vessel utilization • Optimizing the procurement of heavy equipment
through synergy to improve freight cost using effective and efficient pattern
efficiency • Increase the use of local spare parts and alternative
• Optimizing the use of land transport vehicles, spare parts, substituted lubricant products with
choosing suitable types of vehicles and products that were more competitive
distribution pattern. • Standardizing spare part needs group-wide and
conducted joint procurement to obtain competitive
pricing
• Determine the scale of priority for general and
administrative activities
Annual Report 2016

193
FINANCIAL REVIEW
GROSS PROFIT
Gross Profit, 2014-2016
Growth (%)
Profit/Loss 2016 2015 2014
'16:'15 '15:'14
Gross profit 9,855,872 10,645,996 11,578,877 (7.4) (8.1)
Gross profit margin 37.7% 39.5% 42.9% (1.8) (3.4)
The Company’s gross profit in 2016 decreased by 7.4% from Rp10,646 billion in 2015 to Rp9,856 billion in 2016. The
decrease was lower compared to the decrease in the previous year that reached 8.1%. Meanwhile, gross profit magin
stood at 37.7% from 39.5% in 2015 and 42.9% in 2014. It decreased by 1.6% in 2016 and 3.4% in the previous year.
The decrease was mainly due to decline in the Company’s revenuess (see Revenues, page 189)
OPERATING EXPENSES
Operating Expenses (in Rp billion)
OPERATING EXPENSES
5,000 4,700.5 4,628.8
4,436.7
4,500
4,000
3,500
3,000
2,500
2,000
2014 2015 2016
Operating Expenses Components, 2014-2016

2016 2015 2014 Growth (%)
Description
Expenses Expenses Expenses '16:'15 '15:'14
Selling expenses 2,719,373 2,658,737 2,694,237 2.3 -1.3
General and administration 2,163,085 2,087,885 1,937,522 3.6 7.8
Other operating (revenue) expenses (253,699) (46,157) (195,060) 449.6 -76.3
TOTAL 4,628,759 4,700,465 4,436,699 (1.5) 5.9
Operating expenses/revenue 17,7% 17,4% 16,4% 0.3 1.0


FINANCIAL REVIEW
The Company’s Operating Expenses in 2016 amounted to Rp4,629 billion, decreased by 1.5% from Rp4,700 billion
in the previous year. The Company exercised a number of strategies to control operating expenses, among others:
• Applying the scale of priority to supporting activiites, such as business travel and optimized meeting by using
video conference facilities
• Optimizing training programs by using in-house training whilst maintaining training quality
Selling Expenses
Selling expenses components, 2014-2016
2016 2015 2014 Growth (%)
Description
Expenses (%) Expenses (%) Expenses (%) '16:'15 '15:'14
Transportation and handling 2,194,813 80,7 2,077,574 78,1 2,097,602 77.9 5.6 -1.0
Promotion 265,468 9,8 323,395 12,2 351,850 13.1 -17.9 -8.1
Salaries, wages, and benefits 174,758 6,4 186,503 7,0 172,929 6.3 -6.3 7.3
Other selling expenses 84,334 3,1 71,265 2,7 71,856 2.7 18.3 -0.8
Total 2,719,373 100,0 2,658,737 100,0 2,694,237 100.0 2.3 -1.3
The main component in selling expenses in 2016 was loading and unloading expenses amounted to Rp2,195 billion
or accounted for 80.7% of the total selling expenses. This component rose by 5.6%, in line with the increase in
sales volume and other related expenses. In comparison, the same component decreased by 1.0% in 2014 to 2015.
Meanwhile, promotion expenses amounted to Rp265 billion; the Company succeeded to lower this component by
17.9%, continuing the decrease in the previous year by 8.1%. The Company also successfully controlled salaries,
wages, and other remuneration amounted to Rp175 billion represented 6.3% decrease from 2015. In total, selling
expenses rose by 2.3% from 2015 compared to 1.3% decrease in the previous year.
General and Administration

General and Administration Expenses, 2014-2016
(in Rp million Rp, unless stated otherwise)
2016 2015 2014 Growth (%)
Description
Expenses Expenses Expenses '16:'15 '15:'14
Salaries, wages, and other remuneration 1,061,095 1,131,438 934,348 -6.2 21.1
Office suplies 155,993 147,600 180,311 5.7 -18.1
Partnership program community and development 186,815 136,395 180,171 37.0 -24.3
Taxes, insurance, and rental 137,266 101,205 86,816 35.6 16.6
Depreciation, amortization, and depletion 152,569 123,094 134,331 23.9 -8.4
Other general and administration expenses 469,347 448,153 421,546 4.7 6.3
TOTAL 2,163,085 2,087,885 1,937,523 3.6 7.8
Annual Report 2016

195
FINANCIAL REVIEW
General and administrative expenses amounted to Rp2,163 billion or up by

3.6% from Rp2,088 billion in the previous year. Salaries, wages, and other
remuneration component was the largest component with Rp1,061 billion,
which the Company managed to decrease by 6.2% from the previous
year. Office supplies rose by 5.7% to Rp155 billion from the previous year.
Partnership program and community development (PKBL) amounted to
Rp186 billion increased by 35.6% from the previous year. Taxes, insurance,
and rentals amounted to Rp137 billion, increased by 35.6% from the previous
year, in line with the Company’s operational needs. Menwhile, depreciation,
amortization, and depletion amounted to Rp153 billion, up 23.9% from 2015,
as the Company’s fixed assets, and thereby general and administration
Employee training expenses, increased.
and HR competence
In terms of manpower, the Management considers this cost component as one
enhancement programs of the tools to drive individual and group-wide performance. The Company
from the Company are organized training programs, which the Company viewed as a form of
part of its investments. investment, to improve human capital competence.
OPERATING PROFIT
Operating Profit, 2014-2016
Growth (%)
Profit/Loss 2016 2015 2014
'16:'15 '15:'14
Operating profit 5,227,113 5,945,531 7,142,178 (12.1) (16.8)
Operating profit
20.0% 22.1% 26.5% (2.1)
margin (4.4)
From the previous discussion on revenues and expenses, the Company’s gross
profit in 2016 decreased by 12.1% from Rp5,945 billion in 2015 to Rp5,227
billion in 2016, while profit margin stood at 20.0% from 22.1% in 2015, or
decreased by 2.1%. This decrease was less sharp compared to previous
year’s decrease of operating profit by 16.8% and of profit margin by 4.4%.


FINANCIAL REVIEW
OTHER REVENUES (EXPENSES)
Other revenues (expenses), 2014-2016

Growth (%)
'16:'15 '15:'14
Finance Income 183,773 241,076 286,070 (23.8) (15.7)
Finance Costs (363,493) (370,005) (382,919) (1.8) (3.4)
Net revenues (expenses) (179,720) (128,929) (96,849) 39.4 33.1
The Company booked other expenses (net) amounted to Rp180 billion, increased by 39.4% from Rp129 billion in
2015. This was largely due to the decrease of interest income of Rupiah-denominated term deposit placement, as
the balance of the Company’s cash placement decreased to Rp1,1615 bilion from Rp3,353 billion at the end of 2015.
Consequently, the Company’s interest income in 2016 amounted to Rp184 billion or decreased by 23.8% from Rp241
billion in 2015. (See also “Cash and Cash Equivalents”).
PROFIT BEFORE TAX AND INCOME TAX EXPENSES

Profit before tax and income tax, 2014-2016
Growth (%)
'16:'15 '15:'14
Profit before tax 5,084,622 5,850,923 7,077,276 (13.1) (17.3)
Income Tax 549,585 1,325,482 1,509,616 (58.5) (12.2)
The Company’s profit before tax decreased by 13.1% from Rp5,851 billion to Rp5,085 billion in 2016. Meanwhile,
tax expenses in 2016 amounted to Rp550 billion, decreased by 58.5% from Rp1,325 billion in2 015. Income tax was
affected by fiscal revaluation of fixed assets exercised by the Company in 2016.
Throughout the reporting period, the Company fully complied with its tax obligations and was not involved in any tax
dipsutes.
NET PROFIT AND EARNINGS PER SHARE

Net Profit and Earnings per Share, 2014-2016
Growth (%)
Profit/Loss 2016 2015 2014
'16:'15 '15:'14
Net profit 4,521,596 4,521,491 5,559,902 0.0 (18.7)
Total shares 5,931,520 5,931,520 5,931,520 - -
Earnings per share 762 762 937 0.0 (18.7)
Annual Report 2016

197
FINANCIAL REVIEW
After tax expenses, the Company’s net profit attributable to the equity holders of parent entity (net profit) was Rp4,521
billion or relatively the same as the previous year. Without changes in the amount of outstanding shares, earnings per
share stood at Rp762, or the same as the previous year. Meanwhile, net profit and earnings per share decreased in
the previous year by 18.75%.
Net Profit by Segment, 2014-2016

2016 2015 2014 Growth (%)
Description
Profit Profit Profit '16:'15 '15:'14
Cement 4,545,982 4,661,452 5,578,622 (2.5) (16.4)
Ready-mix concrete (4,956) 1,231 (9,653) (502.4) 112.8
Freight forwarding 22,738 - - - -
Limestone and clay quarrying 41,018 34,089 6,210 20.3 448.9
Coal 7,122 3,092 625 130.3 394.9
Packaging bags 29,438 25,729 27,445 14.4 (6.3)
Information system 6,840 3,167 (1,058) 116.0 399.4
Others (721) (1,759) 19,558 59.1 (109.0)
Net Income before elimination 4,647,461 4,727,001 5,621,947 (1.7) (15.9)
Elimination (transaction between
(125,865) (205,511) (61,848)
segments)
Net income 4,521,596 4,521,490 5,559,902 0.0 (18.7)
By operational segment, the segments contributed 97.8% or Rp4,546 billion to the net profit attributable to the equity
holders of parent entity. This contribution decreased by 2% from Rp4,661 billion in the previous year. Limestone
and Clay quarrying and Packaging Bags generated Rp41 billion and Rp29 billion in profits, respectively, up from
the previous year by Rp34 billion (20.3%) and Rp26 billion (14.4%), respectively. Meanwhile, the profits from Freight
Forwarding segment recognized in 2016 stood at Rp23 billion. Profits from other operational segments were lower
than Rp10 billion. Most non-cement segments demonstrated positive profit growth except Ready-Mix concrete due
to the amount of interest expenses payable by the Company.
COMPREHENSIVE INCOME FOR THE YEAR

(in Rp million Rp, unless stated otherwise)
Growth (%)
Profit/Loss 2016 2015 2014
'16:'15 '15:'14
Comprehensive income 4,395,314 4,599,417 5,631,171 (4.4) (18.3)
Total shares 5,931,520 5,931,520 5,931,520 - -
Basic earnings per share 741 775 949 (4.4) (18.3)


FINANCIAL REVIEW
The Company recognized other comprehensive Meanwhile, EBITDA in 2016 stood at Rp6,963 billion
income from the remeasurements of defined benefit or decreased by 6.8% from Rp7,474 billion in the
obligation, net changes in fair value of available-for- previous year. However, the Company’s net income
sale investments in securities, exchange difference was relatively stable at Rp4,521 billion. Recognizing
from translation of foreign operation, and others; the decrease in revenues, net income margin increased
comprehensive income for the year after tax amounted 0.5% from 16.8% to 17.3%.
to Rp4,395 billion, decreased by 4.4% from Rp4,599
billion in 2015. There was no changes in the amount of Other than net income margin, profitability margin in
outstanding shares; basic earnings per share stood at 2016 also decreased; gross profit margin decreased
Rp741 per share or decreased by 4.4% from Rp775 per by 37.7%, operating income margin decreased by
share in 2015. 20.0%, and EBITDA margin decreased by 26.6%.
In comparison, the corresponding margins in 2015
PROFITABILITY AND MARGIN repectively stood at 39.5%, 22.1%, and 27.7%.
(Million Rp)
Profitability and Margin, 2014-2016

Growth (%)
Profit/Loss 2016 2015 2014
'16:'15 '15:'14
Gross Profit 9,855,872 10,645,996 11,578,877 (7.4) (8.1)
Gross profit margin (%) 37.7 39.5 42.9 (1.8) (3.4)
Operating income 5,227,113 5,945,531 7,142,178 (12.1) (16.8)
Operating income Margin (%) 20.0 22.1 26.5 (2.1) (4.4)
EBITDA 6,962,934 7,473,542 8,491,877 (6.8) (12.0)
EBITDA Margin (%) 26.6 27.7 31.5 (1.1) (3.7)
Net Profit 4,521,596 4,521,491 5,559,902 0.0 (18.7)
Net Income Margin (%) 17.3 16.8 20.6 0.5 (3.8)
1
Net income attributable to equity holders of parent entity
The Company’s gross profit in 2016 amounted to Overall, the change of margin this year improved/was
Rp9,586 billion or decreased by 7.4% from Rp10,646 not lower than previous year’s growth.
in the previous year. Operating income in 2016 was
Rp5,227 billion or decreased by 12.1% from Rp5,946
billion in the previous year.
Annual Report 2016

199
FINANCIAL REVIEW
HIGHLIGHTS OF CONSOLIDATED FINANCIAL POSITIONS

Highlights of Changes of Consolidated Financial Positions, 31 December 2014-2016
Financial Position Highlights (in Rp billion)

50,000
45,000
44,226.9
40,000 38,153.1
34,331.7 30,574.4
35,000
27,440.8 13,652.5
30,000 25,004.9 10,712.3
25,000 9,326.7
20,000
15,000
10,000
5,000
2014 2015 2016
Total Assets Total Liabilities Total Equity
(dalam Rp juta, kecuali dinyatakan lain)

2016 2015 2014 Growth (%)
Description
Value (%) Value (%) Value (%) '16:'15 '15:'14
Current Assets 10,373,159 23.5 10,538,704 27.6 11,648,545 33.9 (1.6) (9.5)
Non-Current Assets 33,853,737 76.5 27,614,415 72.4 22,683,130 66.1 22.6 21.7
Total Assets 44,226,896 100.0 38,153,119 100.0 34,331,675 100.0 15.9 11.1
Current-liabilities 8,151,674 59.7 6,599,190 61.6 5,271,930 56.5 23.5 25.2
Non-Current-liabilities 5,500,831 40.3 4,113,131 38.4 4,054,815 43.5 33.7 1.4
Total Liabilities 13,652,505 100.0 10,712,321 100.0 9,326,745 100.0 27.4 14.9
Equity attributable to:
- Holders of parent entity 29,035,196 95.0 26,419,542 96.3 24,046,465 96.2 9.9 9.9
- Non-controlling interest 1,539,195 5.0 1,021,256 3.7 958,465 3.8 50.7 6.6
Total Equity 30,574,391 100.0 27,440,798 100.0 25,004,930 100.0 11.4 9.7


FINANCIAL REVIEW
ASSETS
Assets Composition (in Rp billion)
10,373.2
45,000.0
40,000.0 10,538.7
35,000.0 11,648,5
30,000.0 33,853.7
25,000.0 27,614.4
20,000.0
22,683.1
15,000.0
10,000.0
5,000.0
2014 2015 2016
Current Assets Non-Current Assets
Asset Composition, 31 December 2014-2016

2016 2015 2014 Growth (%)
Description
Assets (%) Assets (%) Assets (%) '16:'15 '15:'14
Current Assets 10,373,159 23.5 10,538,704 27.6 11,648,545 33.9 (1.57) (9.53)
Non-Current Assets 33,853,737 76.5 27,614,415 72.4 22,683,130 66.1 22.59 21.74
Total Assets 44,226,896 100.0 38,153,119 100.0 34,331,675 100.0 15.92 11.13
As of 31 December 2016, the Company’s total assets was Rp44,227 billion, increased by 15.9% from the position as
at 31 December 2015 of Rp38,153 billion. The total assets consisted of 23.5% current assets and 76.5% non-current
assets. This composition changed from 2015 positions of 27.6% current assets and 72.4% non-current assets.
The change of composition was due to the decrease in the amount of current assets by 1.57% from Rp10,539 bilion
in 2015 to Rp10,373 billion in 2016. Meanwhile, non-current assets rose by 22.6% from Rp27,614 billion in 2015 to
Rp33,854 billion as of the end of 2016.
Compared to 2014, total assets increased by 11.1% in 2015. The increase was derived from 21.7% growth of non-
current assets and 9.5% decrease of current assets. The following section discusses changes in the positions of key
financial accounts that in turn affected the changes in the current and non-current assets:
44.23 trillion 15.9%

Company’s Assets
Annual Report 2016

201
FINANCIAL REVIEW
Current Assets
Current Assets Composition, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Cash and cash
2,834,444 27.3 3,964,018 37.6 4,925,950 42.3 (28.5) (19.5)
equivalents
Restricted Cash and
13,985 0.1 25,470 0.2 13,697 0.1 (45.1) 86.0
cash equivalents
Shor-term investmens 13,263 0.1 2,263 0.1 91,872 0.8 486.0 (97.5)
Trade receivables - Net 3,837,918 37.0 3,543,840 33.6 3,301,248 28.3 8.3 7.3
Other receivables - Net 180,366 1.8 84,800 0.8 131,309 1.1 112.7 (35.4)
Inventories - Net 2,671,145 25.8 2,408,974 22.9 2,811,704 24.1 10.9 (14.3)
Advances 144,944 1.4 88,747 0.8 148,717 1.3 63.3 (40.3)
Prepaid taxes 594,223 5.7 382,061 3.6 171,261 1.5 55.5 123.1
Prepaid expenses 74,385 0.7 38,531 0.4 52,787 0.5 93.1 (27.0)
Other current assets 8,486 0.1 - - - - - -
Total Current assets 10,373,159 100.0 10,538,704 100.0 11,648,545 100.0 (1.6) (9.5)
The main components in current assets were cash and cash equivalents 27.3%, net trade receivables 37.05, inventories
25.8%, prepaid taxes 5.75, and others 4.1%.
The following section discusses changes in current assets positions:
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents
The Company carried out prudent management of cash and cash equivalents through optimum cash cycle management
and development of robust portfolio management of excess cash whilst taking into account risk and return that can
generate optimum benefits.
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents, 31 Desember 2014-2016
2016 2015 2014 Growth (%)
Description
Cash 9,755 0.3 2,783 0.1 2,994 0.0 250.5 (7.1)
Bank:
Rupiah 928,160 32.5 347,028 8.7 294,269 6.0 167.5 17.9
USD 190,335 6.7 144,311 3.6 55,082 1.1 31.9 162.0
Euro 50,550 1.8 45,405 1.1 97,560 2.0 11.3 (53.5)
SGD 134 0.0 131 0.0 123 0.0 2.1 6.9
Dong Vietnam 17,403 0.6 11,897 0.3 15,053 0.3 46.3 (21.0)
Total Bank 1,186,581 41.6 548,773 13.7 462,087 9.4 116.2 18.8


FINANCIAL REVIEW
2016 2015 2014 Growth (%)

Description
Term Deposits:
Rupiah 1,618,929 56.8 3,355,139 84.1 4,300,048 87.1 (51.7) (22.0)
USD 36,714 1.3 31,693 0.8 37,320 0.8 15.8 (15.1)
Euro - - - - 105,933 2.1 - (100.0)
Dong Vietnam - - 51,101 1.3 31,264 0.6 - 63.4
Total Term Deposits 1,655,643 58.1 3,437,933 86.2 4,474,566 90.6 -51.8 -23.2
Total 2,851,979 100.0 3,989,488 100.0 4,939,646 100.0 -28.5 19.2
Short-term
investments with
maturities and 17,535 25,470 13,697 (31.2) 86.0
restricted cash and
cash equivalents
Total Cash and Cash
2,834,444 3,964,018 4,925,950 -28.5 -19.5
Equivalents
The total cash and cash equivalents in 2016 was Rp2,851 billion, decreased from Rp3,989 billion in 2015, especially
due to the decrease in cash flows from operating activities and increase in cash for investing activities with respect to
subsidiary acquisition.
The balance of cash and cash equivalents in 2016 consisted of cash amounted to Rp10 billion or 0.3% of the total
cash and cash equivalents, placement in current accounts was Rp1,187 billion or 41.6% of the total cash and cash
equivalents, and placement in term deposits and call deposits amounted to Rp1,656 billion or 58.1% of the total cash
and cash equivalents.
In line with business development activities, and part of its risk mitigation against changes in foreign exchange rates
with respect to capital expenditure, the Company placed cash and cash equivalents in several currencies::
Cash and Cash Equivalents by Currency (in Rp million)

Cash and Cash Equivalents by Currency, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Assets Assets Assets '16:'15 '15:'14
Rupiah 2,556,561 3,704,871 4,597,197 -31.0 -19.4
USD 227,058 176,014 92,411 29.0 90.5
Euro 50,550 45,405 203,493 11.3 -77.7
SGD 134 131 123 2.1 6.9
Dong Vietnam 17,676 63,067 46,422 -72.0 35.9
Total 2,851,979 3,989,488 4,939,646 -28.5 -19.2
Short-term investments with maturities
and restricted cash and cash 17,535 25,470 13,697 (31.2) 86.0
equivalents
Total Cash and Cash Equivalents 2,834,444 3,964,018 4,925,950 -28.5 -19.5
Annual Report 2016

203
FINANCIAL REVIEW
bove table, cash and cash equvalents in USD increased while placement in Euro decreased. These changes tracked
with the Company’s realized activities of the delivery of main equipment to its business projecs. The Company
allocated funds in relevant currencies to mitigate foreign exchange rate fluctuation risk (see also “Risk Management”).
Other than funds for new plants and maintenance of existing operational facilities, the Company also prepared funds
to develop supporting operational facilities as well as other facilities.
The Company also placed cash and cash equivalents to support working capital needs, e.g. the purchase of raw
materials as well as other materials, in Rupiah. This was done to enhance plant operational readiness to anticipate
future demand growth in dometic market.
The Company’s cash and cash equivalents were mainly placed as term deposits in reputable banks, among others:
di 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 others.
The placements generated interest income for the Company; the applicable interest rate for term deposits in Rupiah
was 4.00%-10.50%. (see also “Other Revenues/(Expenses, page 197).
Trade Receivables
Trade Receivables, 31 Desember 2014-2016
2016 2015 2014 Growth (%)
Description
Current 2,500,896 2,898,661 2,932,746 -13.7 -1.2
Overdue
1-45 days 737,465 313,913 265,438 134.9 18.3
46-135 days 301,362 239,105 63,654 26.0 275.6
136-365 days 217,030 80,800 21,369 168.6 278.1
Over 365 days 213,021 94,355 90,581 125.8 4.2
Total 3,969,774 3,626,834 3,373,788
Allowance for impairment losses (131,856) (82,994) (72,541) 58.9 14.4
Trade Receivables-Net 3,837,918 3,543,840 3,301,247 8.3 7.3
Revenues 26,134,306 26,948,004 26,987,035 -3.0 -0.1
Trade Receivables-Net /Revenues 14.7 13.2 12.2 11.7 7.5
The Company’s trade receivables was Rp3,838 billion or increased by 8.3% from Rp3,544 billion in 2015, where the
trade receivables increased by 7.3% from 2014. This year’s increase was due to the growth in operational activities to
meet customers’ demands and as the result of marketing strategies. In addition, the increase was also contributed by
the acquisition of subsidiaries; the total fair value of trade and other receivables of PT Varia Usaha and subsidiaries at
acquisition was Rp645 billion and VUB stood at Rp244 billion. The average age of receivables in 2016 was 54 days,
up from 48 days in the previous year.


FINANCIAL REVIEW
Inventories
Inventories, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Spare parts 1,088,081 1,027,540 1,163,504 5.9 (11.7)
Raw and indirect
materials 751,868 776,043 831,519 (3.1) (6.7)
Work in process 520,904 400,894 537,981 29.9 (25.5)
Finished goods 362,606 274,749 242,247 32.0 13.4
Goods in transit 64,338 36,309 131,959 77.2 (72.5)
Total 2,787,797 2,515,535 2,907,210 10.8 (13.5)
Allowance (116,652) (106,561) (95,506) 9.5 11.6
Inventories 2,671,145 2,408,974 2,811,704 10.9 (14.3)
Net inventories in 2016 amounted to Rp2,671 billion or increased by 10.9% compared to Rp2,409 billion in the
previous year. Meanwhile, inventories in the previous year decreased by 14.3% compared to 2014 position. The
balance of inventories in 2016 consisted of spare parts amounted to Rp1,088 billion or up 5.9% from 2015; work in
process amounted to Rp521 billion or increased by 29.9% from 2015; finished goods amounted to Rp363 billion or
up 32.0% from 2015; and goods in transit amounted to Rp64 billion or up 77.2% from 2015. Spare parts and indirect
materials amounted to Rp752 billion, rose by 3.1% from 2015. The acquisition of VU and VUB in 2016 also contributed
to the changes in inventories.
Non-Current Assets
Non-Current Assets, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Deferred Taxes 752,492 90,268 56,553 733.6 59.6
Investment in associate entities 93,985 223,952 146,980 (58.0) 52.4
Investment properties 160,694 175,123 183,318 (8.2) (4.5)
Fixed assets - Net 30,846,750 25,167,683 20,221,067 22.6 24.5
Deferred charges - Net 117,654 134,694 113,317 (12.7) 18.9
Investment advances 179,217 328,280 531,935 (45.4) (38.3)
Intangible assets 1,355,080 1,134,306 1,103,697 19.5 2.8
Other assets 347,865 360,109 326,263 (3.4) 10.4
Total Non-current assets 33,853,737 27,614,415 22,683,130 22.6 21.7
Non-current assets in 2016 consisted of fixed assets that accounted for 91.1% or amounted to Rp30,847 billion,
increased by 22.6% from 2015; intangible assets accounted for 4.0% or Rp1,355 billion, increased by 19.5% from
2015; and 2.2% deferred taxes, amounted to Rp752 billion or increased by 733.6% from 2015. Non-current assets
at the end of 2016 was Rp33,854 billion or up 22.6% from Rp27,614 billion in 2015. The increase was slightly higher
compared to previous year’s increase of 21.7%.
Annual Report 2016

205
FINANCIAL REVIEW
Fixed Assets
Fixed Assets (in Rp billion)
Fixed Assets
35,000.0 30,846.8
30,000.0
25.167.7
25,000.0
20,221.1
20,000.0
15,000.0
10,000.0
5,000.0
2014 2015 2016
Fixed assets, 31 December 2014-2016

2016 2015 2014 Growth (%)
Description
Direct ownerhsip 43,585,963 36,264,369 30,004,666 20.2 20.9
Leased assets 854,958 386,604 333,881 121.1 15.8
Total 44,440,921 36,650,973 30,338,547
Accumulated depreciation (13,594,171) (11,483,290) (10,117,480) 18.4 13.5
Total fixed assets 30,846,750 25,167,683 20,221,067 22.6 24.5
The Company’s fixed assets are grouped into two categories: direct ownership and leased assets. The total (net)
book value of fixed assets in 2016 amounted to Rp30,847 billion, increased by 22.6% from Rp25,168 billion in the
previous year. In percentages, the increase was lower than the growth of the same in the previous year at 24.5%. The
increase tracked with the completion of the construction of new plants, other buildings, and increase in leased assets
to support operational activity growth and to replace obsolete leased assets. In addition, the inorganic growth driven
by subsidiary acquisition also contributed to the changes of fixed assets (See also “Strategic Projects” page 146-157,
150-152, and “Capital Goods Investment” page 224).


FINANCIAL REVIEW
Intangible Assets
Intangible assets, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Licenses 771,421 816,854 749,378 (5.6) 9.0

Trademark 174,940 199,567 170,765 (12.3) 16.9
Computer software 173,174 173,029 172,741 0.1 0.2
Land rights renewal 11,052 10,995 10,170 0.5 8.1
Customer relations 318,761 - - - -
Goodwill 205,280 165,832 155,881 23.8 6.4
Total 1,654,628 1,366,277 1,258,935 21.1 8.5
Accumulated amortization (299,548) (231,971) (155,238) 29.1 49.4

Total Intangible assets 1,355,080 1,134,306 1,103,697 19.5 2.8
Total intangible assets (net) in 2016 was Rp1,355 billion, increased by 19.5% from Rp1,134 billion in 2015. The increase
was mainly derived from the growth in customer relations value amounted to Rp319 billion. In the previous year,
intangible assets grew only by 2.8% from 2014. Subsidiary acquisition, which induced inorganic growth, contributed
to this significant change in 2016.

Deferred Taxes Assets
Deferred Taxes Assets, 31 December 2014-2016

2016 2015 2014 Growth (%)
Description
Holding 616,212 - - -
Subsidiaries 136,280 90,268 56,553 51.0 59.6
Total Deferred Tax Assets 752,492 90,268 56,553 733.6 59.6
The Company’s deferred tax assets rose sharply by 733.6% from 2015 compared to just 59.6% in the previous year.
The growth was mainly due to difference of book and fiscal values following fiscal revaluation of assets in 2016.
Annual Report 2016

207
FINANCIAL REVIEW
LIABILITIES
Liabilities (in Rp billion)
15,000.0
13,652.5
13,000.0
10,712.3
11,000.0
9,326.7
9,000.0 3,151.7
7,000.0 6,599.2
5.500.8
5,271.9
5,000.0 4,054.8 4,113.1
3,000.0
1,000.0
2014 2015 2016
Current Liabilities Total Liabilities Non-Current Liabilities
The Company’s total liabilities as of 31 December 2016 was Rp13,653 billion, increased by 27.5% from Rp10,712
billion in the previous year. The Company’s liabilities in 2016 consisted of 59.7% Current-liabilities or amounted to
Rp8,152 billion and 40.3% non-Current liabilities or amounted to Rp5,501 billion. Current and non-Current liabilities
increased by 23.5% and 22.7%, respectively.
Liabilities, 31 December 2014-2016

2016 2015 2014 Growth (%)
Description
Liabilities (%) Liabilities (%) Liabilities (%) '16:'15 '15:'14
Current-liabilities 8,151,673 59.7 6,599,190 61.6 5,271,930 56.5 23.5 25.2
Non-Current-liabilities 5,500,831 40.3 4,113,131 38.4 4,054,815 43.5 33.7 1.4
Total Liabilities 13,652,505 100.0 10,712,321 100.0 9,326,745 100.0 27.4 14.9
The following section discusses changes in the Company’s positions of liabilities and their causes.


FINANCIAL REVIEW
Current Liabilities
Current-liabilities, 31 December 2014-2016
(in RP million, unless stated otherwise)
2016 2015 2014 Growth (%)
Description
Short-term borrowings 819,025 10.0 138,604 2.1 81,809 1.6 490.9 69.4
Trade payables 4,077,757 50.0 3,783,246 57.3 3,031,508 57.5 7.8 24.8
Other payables 305,251 3.7 194,300 2.9 215,001 4.1 57.1 (9.6)
Tax payables 363,827 4.5 275,833 4.2 271,687 5.2 31.9 1.5
Short-term employee
867,466 10.6 848,863 12.9 680,197 12.9 2.2 24.8
benefits liabilities
Accrued expenses 677,378 8.3 633,616 9.6 445,434 8.4 6.9 42.3
Sales advances 49,466 0.6 17,646 0.3 30,225 0.6 180.3 (41.6)
Current maturities of long-
991,503 12.2 707,082 10.7 516,070 9.8 40.2 37.0
term liabilities
Total Liabilitas Jangka

8,151,673 100.0 6,599,190 100.0 5,271,930 100.0 23.5 25.2
Pendek
The main components in the Company’s current liabilities as of the end of 2016 consisted of 50.0% trade payables
or Rp4,078 billion, 10.6% short-term employee benefits liabilities or Rp867 billion, 12.2% current maturities of long-
term liabilities or Rp992 billion, 8.3% accrued expenses or Rp677 billion, and 10.0% short-term borrowings or Rp819
billion. In total, current liabilities increased by 23.5% from 2015, and in comparison increased by 25.2% from 2014 to
2015.
The following discusses changes in the individual accounts and the Company’s efforts in managing the accounts:
Trade payables
Trade payables, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Current 2,486,971 61.0 2,575,547 68.1 2,241,484 73.9 -3.4 14.9
Overdue
1-45 days 608,179 14.9 648,857 17.2 480,108 15.8 -6.3 35.1
46-135 days 242,937 6.0 259,862 6.9 128,623 4.2 -6.5 102.0
136-365 days 463,875 11.4 231,739 6.1 158,676 5.2 100.2 46.0
Over 365 days 275,795 6.8 67,241 1.8 22,618 0.7 310.2 197.3
Trade payables-net 4,077,757 100.0 3,783,246 100.0 3,031,508 100.0 7.8 24.8
Trade payables at the end of 2016 rose by 7.8% to Rp4,708 billion from Rp3,783 billion in the previous year. The increase
was due to operational activities growth needed to meet production demands and due to subsidiary acquisition.
Annual Report 2016

209
FINANCIAL REVIEW
Of the total trade payables in 2016, Rp2,487 billion or 61.0% were payables not due.
To maintain its relationship with suppliers, the Company provided payment guarantee involving supplier finance as
long as all procedures and billing documents were complete. The mechanisms in place for this service to suppliers
were backed by Information Technology (see also “Information Technology” chapter page 256-264), which allowed the
Company to easily verify documents. The Company also applied e-procurement system to obtain services and goods
at standard quality and competitive prices.
Short-Term Employee Benefits Liabilities

Short-Term Employee Benefits Liabilities, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Liabilities Liabilities Liabilities '16:'15 '15:'14
Productivity, allowances, incentives, and
803,435 795,534 651,451 1.0 22.1
Directors’ and Commissioners’ bonuses
Other employee allowances 64,031 53,329 28,746 20.1 85.5
Total Short-Term Employee Benefits
867,466 848,863 680,197 2.2 24.8
Liabilities
The estimated employee benefits liabilities in 2016 amounted to Rp867 billion or increased by 2.2% from Rp849 billion
in the previous year. The increase was far lower from 24.8% increase in the previous year. This was mainly due to the
total of accruals of employee and management services.
Accrued expenses
Accrued expenses, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Sales promotion 211,909 254,756 199,207 (16.8) 27.9
Transportation 203,274 208,263 105,618 (2.4) 97.2
Insurance, rent, and partnership
program, etc. 127,429 69,274 63,161 84.0 9.7
Others (below Rp 1 billion) 134,766 101,323 77,448 33.0 30.8
Total accrued expenses 677,378 633,616 445,434 6.9 42.2
Accrued expenses at the end of 2016 stood at Rp677 billion, up 6.9% from Rp634 billion in 2015. The increase was
far lower than the increase of previous year of 42.2%.


FINANCIAL REVIEW
Long-term liabilities maturing in one year

Long-term liabilities maturing in one year, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Bank loans 866,544 630,044 463,572 37.5 35.9
Finance lease liabilities 124,959 77,038 52,497 62.2 46.8
Total current portion in long-term
991,503 707,082 516,069 40.2 37.0
liabilities
The total liabilities maturing in one year increased by 40.2% to Rp991 billion from Rp707 billion in 2015. The increase
was due to 37.5% increase in bank loans maturing within one year and the 62.2% increase in finance lease liabilities
maturing within one year. In the previous year, the current portion of long-term liabilities increased by only 37.0% or
slightly lower than this year’s increase.
Short-Term Borrowings
Short-term borrowings, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Rupiah 815,270 134,705 76,533 505.2 76.0
Dong 3,755 3,899 5,276 (3.7) (26.1)
Short-term borrowings 819,025 138,604 81,809 490.9 69.4
The Company’s short-term borrowings consisted of borrowings in Rupiah and Dong. Short-term borrowings in Rupiah
grew by 505% from Rp315 billion in 2015 to Rp815 billion in 2016. Short-term borrowings in Dong decreased by
3.7% after translated into Rupiah from Rp3.9 billion to Rp3.8 billion. In total, the Company’s short-term borrowings
surged 490.9%, far higher than the increase in the previous year at only 69.4%. The Company’s inorganic growth also
contributed to this increase in short-term borrowings in 2016.
Annual Report 2016

211
FINANCIAL REVIEW
NON-CURRENT LIABILITIES
Non-current liabilities (in billion Rp)
6,000.0 5,500.8
5,000.0
4,054.8 4,113,1
4,000.0 Long Term
Benefits Liabilities
3,000.0
Long Term Provisions
2,000.0
Non-Current Liabilities
482.6 653.6 823.0
1,000.0
175.1 185.5 182.8
-
2014 2015 2016
Non-Current Liabilities, 31 December 2014-2016

2016 2015 2014 Growth (%)
Description
Deferred Tax liabilities 38,651 107,903 70,045 -64.2 54.0
Long-term employee benefits liabilities 823,030 653,612 482,605 25.9 35.4
Non-current liabilities 4,449,848 3,155,616 3,315,145 41.0 -4.8
Long-term provisions 182,761 185,527 175,065 -1.5 6.0
Other Non-current liabilities 6,542 10,474 11,955 -37.5 -12.4
Total Non-current liabilities 5,500,831 4,113,131 4,054,815 33.7 1.4
The composition of non-current liabilities in 2016 was dominated by 80.9% long-term liabilities – net of current
maturities or amounted to Rp4,450 billion and 15.0% long-term employee benefits liabilities or amounted to Rp823
billion.
Long-term Employee Benefits Liabilities

Long-term Employee Benefits Liabilities, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Pension Benefits Liabilities 439,935 326,259 194,641 34.8 67.6
Other Employee Benefits Liabilities 333,733 279,362 251,575 19.5 11.0
Employment Benefits for Retirement
Liabilities 49,362 47,991 36,388 2.9 31.9
Employee Benefits Liabilities 823,030 653,612 482,605 25.9 35.4


FINANCIAL REVIEW
Long-term employee benefits Liabilities increased 25.9% from the previous year. This increase was mainly caused by
36.5% increase of Employment Benefits for Retirement Liabilities from the previous year. The increase of long-term
employee benefits Liabilities was lower than previous year’s 35.4%.
Long-term Liabilities
Long-term Liabilities, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Bank loan 3,988,451 2,996,681 3,183,156 33.1 (5.9)
Lease financing Liabilities 461,397 158,935 131,989 190.3 20.4
Total Long-term Liabilities less current
4,449,848 3,155,616 3,315,145 41.0 (4.8)
portion liabilities
Long-term Liabilities increased by 41% from Rp3,156 billion to Rp4,450 billion, largely contributed by bank loan
which increased by 33.1%. In addition to meeting the Company’s needs, this increase was also affected by subsidiary
acquisition in 2016.
Long-term Provisioning
Long-term Provisioning, 31 December 2014-2016
2016 2015 2014 Growth (%)
Description
Mining restoration 113,075 105,884 99,824 6.8 6.1
Estimated cost of fixed asset disassembly 69,686 79,643 75,241 (12.5) 5.8
Total long-term provisioning 182,761 185,527 175,065 (1.5) 6.0
In 2016, the Company’s long-term provision decreased by 1.5% from 2015. This was caused by the 12.5% decrease
of estimated cost of fixed assets disassembly from the previous year.
Annual Report 2016

213
FINANCIAL REVIEW
EQUITY
Equity (in Rp billion)
EQUITY
35,000.0 30,574.4
30,000.0 27,440.8
25,004.9
25,000.0
20,000.0
15,000.0
10,000.0
5,000.0
2014 2015 2016
The changes in the Company’s equity are as follows.

Equity, 31 December 2014-2016
(in Rp million, unless stated otherwise))
Growth (%)
Equity 2016 2015 2014
'16:'15 '15:'14
Equity attributable to equity holders of parent entity:
Capital share – nominal value of RP100 per share:

Authorized capital – 20,000,000,000 shares
Issued and fully paid-in capital - 593,152,000 stocks 593,152 593,152 593,152 - -
Additional paid-in capital 1,458,258 1,458,258 1,458,258 - -

Other equity components 455,801 553,155 475,229 16.4
(17.6)
Retained earnings
Appropriated 253,338 253,338 253,338 - -
Unappropriated 26,274,647 23,561,639 21,266,488 10.8
11.5
Equity attributable to equity holders of parent entity 29,035,196 26,419,542 24,046,465 9.9 9.9
Non-controlling interests 1,539,195 1,021,257 958,465 6.6
50.7
Total Equity 30,574,391 27,440,799 25,004,930 9.7
11.4
The Company’s equity balance attributed to owner of parent entity in 2016 was Rp29,035 billion, increased by 9.9%
from Rp26.420 billion in 2015. This was contributed by earnings attributable to parent entity in 2016 amounted to
Rp4.521billion.
Other equity components decreased by 17.6%, mostly due to the financial translation of foreign subsidiary.


FINANCIAL REVIEW
CAPITAL STRUCTURES AND CAPITAL STRUCTURES POLICY

Capital Structures, 31 December 2014-2016
(in Rp billion, unless stated otherwise)
2016 2015 2014 Growth (%)
Description (Rp Billion)
Value (%) Value (%) Value (%) '16:'15 '15:'14
Liabilities 13,653 30.9 10,712 28.1 9,327 27.2 27.4 14.9
Equity 30,574 69.1 27,441 71.9 25,005 72.8 11.4 9.7
Amount of Equity and Liabilities 44,227 100.0 38,153 100.0 34,332 100.0 15.9 11.1
The Company’s capital structure in 2016 consisted of 30.9% Liabilities and 69.1% Equity. Most of the Company’s
Liabilities or 66% of total Liabilities was related with the Company’s normal operational activity and business
development activity.
Capital Structure Policy

Company strives to take prudence principle into consideration when establishing capital structures policy in order to
create capital structures composition comprising balanced internal and external funding that will maximize corporate
values. The Company also strives to maintain capital structures in accordance with financial covenants required by
creditors and compliance principle.
Generally, the Company implemented the following capital structure policies:

• The capital structures always considers the balance between financial risks with return rate in order to enhance
the Company’s values.
• Optimizing capital structures by regulating ideal combination of Debt and Equity. The combination should consider
the Company’s fund requirement and cash flows capability.
• The capital structures combination is determined after sensitivity analysis delivery with various core assumptions
that the Company will possibly face.
The Company has maintained the robust level of capital structures by utilizing the gearing ratio, which divides the
total interest bearing liabilities with the total equity attributable to holders of parent entity. The Company’s policy is to
maintain the leverage within optimum range, by comparing it with similar companies in Indonesia. It is conducted to
ensure that the Company’s financial condition is in good condition in order to maintain the access towards competitive
funding sources.
Gearing Ratio, 31 December 2014-2016

Growth (%)
Equity 2016 2015 2014
'16:'15 '15:'14
Bank loan 5,674,019 3,765,328 3,728,537 50.7 1.0
Lease financing Liabilities 586,356 235,972 184,486 148.5 27.9
Interest bearing liabiliteis 6,260,375 4,001,300 3,913,023 56.5 2.3
Total equity attributable to holders of

29,035,196 26,419,542 24,046,465 9.9 9.9
parent entity
Gearing Ratio (x) 0.22 0.15 0.16 0.06 (0.0)
Annual Report 2016

215
FINANCIAL REVIEW
Through consistent implementation of capital structures policy, total interest-bearing Liabilities reached Rp6,260
billion at the end of 2016 and debt to equity ratio stood at 0.22X. This ratio increase showed that Company began
to utilize external funding for business development without closing any possibility of getting other external funding,
considering highly adequate Company’s ability to pay loan (also see “Solvability, Solvency Ratio” discussion).
NET WORKING CAPITAL

Net Working Capital, 31 December 2014-2016
Growth (%)
'16:'15 '15:'14
Current assets 10,373,159 10,538,704 11,648,545 (1.6) (9.5)
Curret Liabilities 8,151,673 6,599,190 5,271,930 23.5 25.2
Net Working Capital 2.221.486 3.939.514 6.376.615 (43.6) (38.2)
Overall, the Company’s net working capital decreased from Rp3,940 billion in 2015 to Rp2,221 billion in 2016. This
decline was related to the assets for investment expenditures policy as part of the Company development; the impact
from subsidiary entity acquisition; and the Company cash management policy in supporting marketing strategy.
CASH FLOWS
Cash flows 2014-2016
Growth (%)
Cash Flows 2016 2015 2014
'16:'15 '15:'14
Net cash flows from operating activities 5,180,011 7,288,587 6,245,842 (28.9) 16.7
Net cash flows for investing activities (5,529,207) (5,592,271) (2,405,893) (1.1) 132.4
Nett cash flows for financing activities (780,378) (2,658,247) (2,984,492) (70.6) (10.9)
Increase/(decrease) of net cash and cash
(1,129,574) (961,931) 855,457 17.4 (212.4)
equivalents
cash and cash equivalents – beginning of year 3,964,018 4,925,950 4,070,493 (19.5) 21.0
Cash and cash equivalents – end of year 2,834,444 3,964,018 4,925,950 (28.5) (19.5)
Overall, the end of year balance of cash and cash equivalents was 28.5% from the previous year. More details are
discussed as follows.


FINANCIAL REVIEW
Cash flow from operating activities

2014-2016 Cash Flow from Operating Activities
Growth (%)
'16:'15 '15:'14
Receipts from customers 26,209,691 26,682,380 26,514,971 (1.8) 0.6
Payments to suppliers (17,035,982) (15,246,599) (15,955,883) 11.7 (4.5)
Payments to employees (2,614,363) (2,441,073) (2,379,058) 7.1 2.6
Interest income received (1,544,512) (1,343,605) (1,540,547) 15.0 (12.8)
Other payments/receipts - net 165,177 (362,516) (393,642) 145.6 (7.9)
Cash from operating activities 5,180,011 7,288,587 6,245,842 (28.9) 16.7
The Company’s net cash flow gained from operating activity amounted to Rp5,180 billion, decreased by 28.9%
compared to 2015. This decrease was caused mainly by 11.7% increase of payment to suppliers in 2016 while income
from customers decreased 1.8%.
Cash Flows from/for Investing Activities

Cash Flows from/for Investment Activity, 2014-2016
Growth (%)
'16:'15 '15:'14
Fixed Assets:
- Acquisition (5,065,208) (5,168,035) (2,105,732) (2.0) 145.4
- Sale 12,242 299 22,759 3.990.5 (98.7)
Other receipts/payments – net (422,833) (55,000) - 668.8 -
Penerimaan/pembayaran lainnya - neto (53,408) (369,535) (322,919) 85.5 (14.4)
Cash from/for Investing Activities (5,529,207) (5,592,271) (2,405,893) (1.1) 132.4
Cash Flows for investing activities in 2016 was Rp5,529 billion or decreased by 1.1% from the previous year. This
capital expenditure was focused on funding the Company’s strategic investment both short-term and long-term
especially related to the effort in improving efficiency and increasing production capacity, including acquisition of
associate entity.
Cash flows from/for Financing Activities

Cash flows from/for financing activities 2014-2016
Growth (%)
'16:'15 '15:'14
Borrowings:
- Repayment (1,805,404) (1,175,181) (2,083,890) 53.6 (43.6)
- Withdrawals 3,010,864 818,341 1,583,701 267.9 (48.3)
Financing liabilities (167,333) (65,111) (57,760) 157.0 12.7
Dividend (1,818,504) (2,236,296) (2,426,543) (18.7) (7.8)
Cash flows for/from financing
activities (780,378) (2,658,247) (2,984,492) (70.6) (10.9)
Annual Report 2016

217
FINANCIAL REVIEW
Net cash flows for financing activities in 2016 was Rp780 billion, decreased by 70.6%. The decrease was mainly due
to loan withdrawals amounted to Rp3,010 billion, far above the previous year’s position (267.9%).
SOLVABILITY
The Company’s solvability is measured from three financial ratio namely liquidity, solvency, and collectability of
receivables as shown by the following table and discussion:
Key Financial Ratios

Growth (%)
Ratio 2016 2015 2014
'16:'15 '15:'14
Gross profit margin (%) 37.7 39.5 42.9 -1.8 -3.4
Operating income margin (%) 20.0 22.1 26.5 -2.1 -4.4
Net income margin (%) 17.3 16.8 20.6 0.5 -3.8
EBITDA margin (%) 26.6 27.7 31.5 -1.1 -3.7
EBITDA to interest expense (x) 19.16 20.20 22.18 (1.04) (1.98)
Return on Equity (%) *) 15.6 17.1 23.1 -1.5 -6.0
Return on Total Assets (%) 10.2 11.9 16.2 -1.6 -4.3
Current (%) 127.3 159.7 221.0 -32.4 -61.3
Liabilities to assets (%) 14.2 10.5 11.4 3.7 (0.9)
Liabilities/capital (%) 17.7 13.2 14.0 4.6 -0.8
Equity/capital (%) 86.6 90.2 89.4 -3.6 0.8
Liabilities/EBITDA (x) 0.90 0.54 0.46 0.36 0.07
EBITDA/(Interest expense + Loan
principal) (x) 2.98 4.64 3.36 (1.66) 1.28
Liabilities/Equity (%) 20.5 14.6 15.6 5.9 -1.1
Liabilities are interest-bearing liabilities
*) Equity attributable to holders of parent entity
Liquidity Ratio
Current Ratio 2014-2016
Growth (%)
'16:'15 '15:'14
Current assets 10,373,159 10,538,704 11,648,545 (1.57) (9.53)
Current liabilities 8,151,673 6,599,190 5,271,930 23.53 25.18
Current ratio (x) 1.27 1.60 2.21 (0.32) (0.61)


FINANCIAL REVIEW
This ratio indicates the Company’s solvability for maturing liabilities, computed by dividing current assets by current
liabilities. In 2016, the Company’s liquidity ratio stood at 1.27x, or decreased by 1.60 from 2015. The decrease was
due to the Company’s decisions to acquire assets as part of its investment for business development, subsidiary
acquisition, and cash management policies to support marketing strategies. The ratio shows that the Company is able
to meet its maturing short-term liabilities.
Solvency
Solvency ratio indicates the Company’s ability to meet its short and long-term liabilities, computed by dividing liabilities
by equity or total assets.
Debt to Assets 2014-2016

Growth (%)
'16:'15 '15:'14
Interest-bearing liabilities 6,260,375 4,001,301 3,913,024 56.46 2.26
Total Assets 44,226,896 38,153,119 34,331,675 15.92 11.13
Solvency (%) 14.16 10.49 11.40 3.67 (0.91)
In 2016, the Company’s solvency ratio stood at 14.16% or up 3.67% from 2015. The ratio indicates that the Company
is highly capable of meeting its liabilities.
Debt Service Coverage Ratio 2014-2016

Growth (%)
'16:'15 '15:'14
EBITDA 6,962,934 7,473,542 8,491,877 (6.83) (11.99)
Interest expense+
loan principal 2,336,231 1,610,297 2,524,570 45.08 (36.21)
DSCR (x) 2.98 4.64 3.36 (1.66) 1.28
DSCR in 2016 stood at 2.98x, lower from 4.64x in 2015. The ratio indicates that the Company is highly capable of
meeting its liabilities using proceeds from its operations.
Debt to Capital Ratio 2014-2016

Growth (%)
'16:'15 '15:'14
Interest Bearing Liabilities 6,260,375 4,001,301 3,913,024 56.46 2.26
Capital (Equity + Interest Bearing Liabilities 35,295,571 30,420,842 27,959,488 16.02 8.80
Interest Bearing Liabilities/capital 17.7 13.2 14.0 4.58 (0.84)
Meanwhile, debt to capital ratio in 2016 stood at 17.7% or decreased by 4.58% compared to the previous year.
The above tables show that the Company is able to meet its liabilities and is capable of managing its obligations in
2016.
Annual Report 2016

219
FINANCIAL REVIEW
The following table presents details of interest-bearing liabilities:

Growth (%)
Interest-Bearing Liabilities 2016 2015 2014
'16:'15 '15:'14
Long-term liabilities maturing within 1 year
Short-term liabilities 819,025 138,604 81,809 490.9 69.4
Bank loans 866,544 630,044 463,572 37.5 35.9
Finance-lease liabilities 124,959 77,038 52,497 62.2 46.7
1,810,527 845,685 597,878 114.1 41.4
Long-term liabilities less liabilities maturing within 1 year
Bank loans 3,988,451 2,996,681 3,183,156 33.1 -5.9
Finance-lease liabilities 461,397 158,935 131,989 190.3 20.4
4,449,848 3,155,616 3,315,145 41.0 -4.8
Total interest-bearing liabilities 6,260,375 4,001,301 3,913,024 56.5 2.3
Debt Management
According to its debt management practices, the Company may only withdraw new loans provided that a debt
instrument’s appropriateness can be justified and by taking into account the Company’s needs and capacity in
financing strategic investment. This policy is applied in order to ensure the Company can obtain the best requirements,
terms and conditions, and facilities.
Receivables Collectability
Collectability 2014-2016
Growth (%)
'16:'15 '15:'14
Revenues 26,134,306 26,948,004 26,987,035 (3.02) (0.14)
Recievables in average 3,690,880 3,422,544 3,301,248 8.30 7.40
ACP (days) 52 46 45 5.60 3.35
The average collection period (ACP) is computed by dividing the average amount of receivables by revenues and
multiplied with the number of days in one year (365 days). In 2016, the ACP was 52 days, up from 46 days in the
previous year, as an impact of the Company’s policies on marketing strategies.
(See also “Trade Receivables”)
Profitability
Profitability
Growth (%)
'16:'15 '15:'14
Gross profit margin (%) 37.7 39.5 42.9 (1.8) (3.4)
Operating income margin (%) 20.0 22.1 26.5 (2.1) (4.4)
Net income margin (%) 17.3 16.8 20.6 0.5 (3.8)
EBITDA margin (%) 26.6 27.7 31.5 (1.1) (3.7)


FINANCIAL REVIEW
The profitability ratios other than net income margin in • Regional expansion:
2016 decreased compared to 2015 positions as shown o Acquiring target companies (non-organic) or
by the above table. construction of new plants (organic)
(See: profitability & margin, page 199) o Can be preceded by trading activities
• Packing Plant:
Return Ratio o Development of packing plant is possible
Growth (%) when the sales volume in a certain area can
'16:'15 '15:'14 cover the total cost and that the plant will
ROA (%) 10.2 11.9 16.2 (1.62) (4.34) boost sales in the area
ROE (%) 15.6 17.1 23.1 (1.54) (6.01) • Subsidiary (non-cement):

o Means of product/asset diversification and to
Return ratio indicates the Company’s ability to generate increase cement sales volume
net income using its existing resources.
Investment criteria
Return on equity stood at 15.6%, decrease from 17.1% • Expenditure to acquire tangible or intangible
in 2015. Return on assets also decreased from 11.9% assets and capital participation that meets the
to 10.2%. following criteria:
o Acquired by means of purchase, build, and/or
The decrease on return on assets ratio was mainly due modify existing assets
to increased project development activities for new o Used in Company’s operations for
plants – now in completion phase and the addition of administrative or other purposes that generate
assets following subsidiary acquisition. direct and indirect benefits in the future
o Has life cycle of more than 1 (one) year
INVESTMENT POLICY o Satisfy the minimum CAPEX value
Investment requirements o Meets applicable accounting policies
Investment requiremets for CAPEX to develop • Mandatory CAPEX exercised to meet legal
operations and he business in general are: requirements can be exempted from the benefit
• CAPEX for operational enhancement: Internal generation requirement
Rate of Return (IRR) ≥ Weighted Average Cost of • Expenditure that does not meet CAPEX criteria,
Capital (WACC) + 3%. such as standalone research, investigation,
• CAPEX for capacity and business development: study, or observation (performed before they
IRR ≥ WACC can be recognized as CAPEX) will be excluded
• New plants (Domestic): from CAPEX and will be recognized as OPEX
o Raw/indirect materials availability and market (operational expenditure).
o Electricity supply, power plant construction is
considered
o Can be done under joint venture mechanism,
taking into account the competence and
reputation of the third party
Annual Report 2016

221
FINANCIAL REVIEW
Limit of Investment
Limit of investment is as follows:
No. Capex Group Capex Minimum Value Per item
1 Land Not limited
2 Properties Rp 250,000,000
3 Machines, heavy equipment, plant equipment, supporting instruments, Rp 500,000,000
electrics/control equipment
4 Vehicles Rp 10,000,000
5 Office and/or plant supplies/work devices Rp 10,000,000
6 Information technology Rp 250,000,000
7 Capital participation (acquisition, company establishment) Not limited
Expenditure for assets that do not meet the minimum CAPEX value requirement is not categorized as CAPEX and will
be recognized as expenses for the year; they must be managed and recorded separately from the record for financial
statements (extracomptable).
Types of Investment
There are 5 (five) types of investment:
No. Jenis Description
1 M Mandatory:
Obligatory CAPEX to meet prevailing laws and regulations
2 KO Operational Continuity:
CAPEX exercised to maintain operational continuity of a plant’s main equipment and provided that
the CAPEX can be attributed to fixed assets or the equipment, e.g. replacement of plant machine
components, according to fixed asset leveling.
3 STR Strategic:
CAPEX exercised in the interest of the Company’s long-term business development, e.g. area
acquisition for raw and indirect materials, capacity enhancement, merger & acquisition (M&A), new
product development, and other company strategic programs
4 PO Operational Enhancement:
CAPEX exercised for the purpose of optimizing operations/equipment performance, reduce costs
(efficiency) by replacing, adding, modifying equipment and/or modifying production process.
Approval and Ratification Authority

1. Approval authority
The authority to grant approval on CAPEX proposal observes the limit of authority in HoldCo and respective
OpCo.
2. Ratification Authority
The authority to ratify CAPEX observes the Articles of Association of respective companies as well as laws and
regulations.
Proposal for Investment and Supporting Documents

• CAPEX proposal must be complemented with supporting documents
• CAPEX supporting documents include: Feasibility Study (FS), CAPEX Proposal and Ratification Document by
Item (P3I) prepared by CAPEX coordinator/budget coordinator; the documents are authorized/ratified by the BoD
according to the limit of authority in HoldCo and respective OpCo


FINANCIAL REVIEW
• In general, FS documents that are required to o Item is added to meet prevailing laws and
be attached to the approval and ratification regulations
documents are:
Capex Type FS Document Keterangan
Strategic (STR) Comprehensive Feasibility Study (CFS) and CAPEX success parameters with the IRR≥WACC
exception of land acquisition for raw and indirect materials and for coal, which must
demonstrate Cost and Benefit Analysis.
Specifically for M&A, FS documents must be complemented with Due Diligence

result (DD)
Operational Simple Feasibility Study (SFS); Internal Rate of Return (IRR), Net Present Value (NPV), IRR ≥WACC+3%
Enhancement (PO) Pay Back Period, parameters of investment success.
Operational Support Objective justification and cost and benefit analysis.
(PKO)
Operational Continuity Objective justification and cost and benefit analysis.
(KO)
Mandatory (M) Objective justification, attachment of the relevant laws and regulations
All feasibility studies (FS) submitted for CAPEX are o Projects are needed based on HoldCO BoD
reviewed from technical, economic, and risk point of consideration whilst taking into account
views. The documents must be signed by relevant prevailing mechanisms and studies.
officials. Detailed guidelines are available in Company’s
procedures. • Addition of non-strategic CAPEX item subsequent
to RKAP can be authorized by the BoD of Company
Addition of Investment Item Subsequent to and reported to the Department of Strategic
RKAP Ratification Business & CAPEX planning for consolidation –
• A CAPEX item can be added subsequent to Work provided that the cumulative value of the addition
and Budget Plan (RKAP) ratification provided that is less than 10% of the ratified non-strategic
the addition does not contradict the Company’s CAPEX.
Articles of Association and CAPEX policies
• Addition of CAPEX item which value exceeds Addition of CAPEX with cumulative value of >
10% of the total CAPEX for the year must be 10% of the total non-strategic CAPEX must be
complemented with cash flow projection prepared authorized by the Company’s BoC.
by the proposing unit
• CAPEX item addition subsequent to RKAP • The proposal for additional strategic CAPEX
ratification must meet the following criteria: subsequent to RKAP ratification must be presented
o Failure to add the item may lead to disrupted by the FS team to the BoD of Holding Company
operational continuity, or the item is essential
to recover Company’s assets with respect to • Proposal for CAPEX item addition subsequent to
insurance. RKAP ratification must be submitted no later than
the end of quarter 3.
Annual Report 2016

223
MATERIAL
INFORMATION
•
MATERIAL COMMITMENT FOR Sources of capital expenditures were the
CAPITAL EXPENDITURES Company’s internal cash and banking loans

• CAPEX commitment was done in Euro
• Total Commitment
• The Company prepared the amount of fund
o The total amount of commitment for capital
required to pay the commitment in Euro. Hedging
expenditures in 2016 was Rp5,914 billion, up
transaction was undertaken in 2016 against a
from Rp5,278 billion in 2015.
number of those commitments.
• Purpose of commitment
o Hedging transaction.
The purpose of commitment was for the
In 2016, the Company undertook forward
construction of new cement plants in Padang,
transactions to avoid the risk of currency
Rembang, and Cigading. The Company required
rate fluctuation occurring from the import
the commitment to procure capital expenditures,
of main equipment needed in the indarung
i.e. main machineries and equipment for production.
and Rembang plant construction projects.
Details of commitment in 2016 are as follows:
In total, the Company entered into a total
o Capital expenditures commitment for:
of EUR1.2 million of forward transactions in
- Strategic CAPEX and new plants amounted
2016, generating gains amounted to Rp1.2
to Rp5,153 billion
billion compared the current rate at the time
- Non-strategic CAPEX amounted to Rp760
the fund was used.
billion
o The purpose of material commitment among
Hedging transactions against material commitment for
others are:
the purchase of capital expenditures were exercised
- Completion of Padang cement plant
pursuant to the hedging transaction provisions
amounted to Rp1,650 billion
applicable to an SOEA under SOE Minister Letter No.
- Completion of Rembang cement plant
S-687/MBU/10/2014.
amounted to Rp1,449 billion
- Completion of cement slag grinding plant in
Cigading amounted to Rp270 bilion
Total Commitment
In Rp million
Capital Expenditures 2016 2015 % Change

Maintain operations 760,737 738,353 3.0
Strategic projects 1,684,982 1,106,814 52.2
New plants 3,468,294 3,432,707 1.0
Total 5,914,013 5,277,874 12.1
Note: New plants 2016 were Indarung VI, Rembang, SIA, SKI


MATERIAL INFORMATION
CAPITAL EXPENDITURES • Centralized fund raising at the holding level in
REALIZATION order to obtain competitive pricing and terms

and conditions, e.g. through Joint Borrower
The total capital expenditures realized in 2016 was
agreement that allows subsidiaris to receive
Rp5,170 billion, down -8.5% from Rp5,650 billion in
lower interest rate.
2015.
FUNDING SOURCES The Company’s capital expenditure in 2016 was mostly

used to develop production capacity in order to meet
One of Semen Indonesia’s strengths as a Holding
domestic and regional market demands.
Company is its significant funding capacity to support
business development activities as discussed in other
In total, Semen Indonesia realized Rp5.2 trillion of
sections of this report (see “Business Developement
capital expenditures in 2016. Internal funding source
Strategies” sub-chapter). Currently, the Company
accounted for Rp3.7 trillion (71%), while external
has sufficient fundings to support its expansion
funding sources accounted for Rp1.5 trillion (29%) of
activities, as reflected from its fairly low utilization of
the total expenditures.
external resources. Semen Indonesia is therefore
considering of increasing external funding as part of its
The Company’s funding activities in 2016 are as follows:
business development commitment. To that end, the
1. On 22 April 2016, the Company obtained working
Company has entered into cooperation with banking
capital facility from PT Bank Negara Indonesia
institutions that are capable of providing large amount
(Persero) Tbk (BNI) with maximum facility of
of borrowings at a very competitive interest rate. The
Rp1,000,000,000. The purpose of this loan was to
Company is especially interested to engage SOE banks
meet the Company’s operational needs.
to link SOEs in financial services and in the real industry.
2. On 10 June 2016, SG signed investment loan
The use of external fund sources will be done within
agreement in amounted to Rp3,466 trillion and
the appropriate corridor to ensure that the funding will
working capital loan of Rp500 billion with PT Bank
generate optimum benefits in both short and long-term.
Mandiri (Persero) Tbk. The investment loan was
used in Rembang development project and the
To intensify the use of internal and external funds in
working capital loan will be used for Rembang
investment, the Company has applied a number of
operations.
policies and programs to ensure that investment needs
3. On 16 June 2016, ST signed the fourteenth
are met:
addendum to non-cash loan agreement with
• Maximizing corporate’s internal funds
PT Bank Mandiri (Persero) Tbk provided as
• Exploring potential external sources with the
import Letter of Credit (LC), domestic letter
most effective cost of fund
of credit/SKBDN (Sight/Usance, UPAS), and
• Controlling borrowings by maintaining the
guarantee bank. The maxium amount of facility
Company’s Investment Grade rating
is US$15,000,000 with sub-limit of supply chain
• Seeking optimum IRR in order to generate the
financial amounted to US$3,500,000. This facility
best benefits to WACC
was used to purchase raw materials, supporting
• Negotiating for covenants that will afford the
materials, fuel, and spare parts.
Company as much flexibility as possible
Annual Report 2016

225
4. On 16 June 2016, ST signed the sixth addendum at the holding level, allowing the subsidiaries to
to treasury transaction service agreement with obtain loan with competitive pricing and terms
PT Bank Mandiri (Persero) Tbk to perform and conditions. Subsidiaries and associate
sale and purchase of foreign exchange with entities of the Company have utilized this facility,
maximum facility of US$12,000,000. This facility among others:
was obtained to hedge ST’s export/import a. PT Varia Usaha utilized Rp80 billion for
transactions. national pooling refinancing and another
5. On 27 June 2016, the Company obtained working Rp125 billion to pay off its working capital
capital loan facility from PT Bank Mandiri (Persero) loan.
Tbk with maximum loan facility of Rp1 trillion to b. PT Swadaya Graha utilized Rp80 billion for
meet its operational needs. national pooling refinancing and another
6. On 21 October 2016, PT Semen Indonesia Rp20 billion to refinance it loan from PT Bank
Beton obtained working capital loan facility CIMB Niaga Tbk.
with maximum loan facility of Rp100 billion and c. PT SGG Energi Prima utilized Rp70 billion for
Rp100 billion of investment loan from PT Bank operational needs.
ICBC Indonesia. The investment loan facility was d. PT Semen Indonesia Beton utilized Rp100
attained to purchase heavy equipment, vehicles, billion to refinance its loan from PT Bank
machineries, and other supporting equipment of EXIM
batching plant, while the working capital loan was e. PT United Tractors Semen Gresik utilized
obtained to finance operational activities of PT Rp25 billion for working capital.
Semen Indonesia Beton. f. PT Sinergi Informatika Semen Indonesia
7. On 15 December 2016,the Company and utilized Rp5 billion for operational needs.
subsidiaries, namely PT Semen Indonesia Beton,
PT SGG Energi Prima, PT Swadaya Graha, PT Joint borrower facility has benefitted the Company in
Sinergi Informatika Semen Indonesia, PT Varia terms of interest rate efficiency in the value of up to
Usaha, PT Industri Kemasan Semen Gresik, PT Rp9.1 billion.
United Tractors Semen Gresik, and PT Krakatau
Semen Indonesia entered into Joint Borrower In 2017, the Company plans to immediately exercise
Loan Agreement with PT Bank CIMB Niaga Tbk to bond issuance to diversify its external funding and to
meet bridging loan needs of the companies that not rely solely on banking debt instruments. The cost
are the parties thereto with credit limit amounted of fund of bonds is also more efficient compared to
to Rp1.5 trilion. Joint borrower agreement is one investment loan from banks.
of the forms of fund raising conducted centrally


MATERIAL INFORMATION The Company’s confidence is also based on empirical
AND FACT SUBSEQUENT TO evidence that points out to significant market potential:
THE DATE OF ACCOUNTANT’S Indonesia, with a population of +254.9 million people
REPORT (BPS) as of the end of 2015, consumes only around

235 kg cement/year – below consumption index of
A material information/event occurred subsequent to
Thailand and Vietnam. In addition, data also shows
the date of report:
that infrastructure project budget has been steadily
increasing in the past two years and is projected
On 23 February 2017, the Governor of Central Java
to continue rising in the years ahead in line with the
issued Environmental Permit for the Quarrying and
country’s economic growth projection. After growing
Development of Rembang Plant by virtue of Central
5.02% in 2016, Indonesia is estimated to continue
Java Governor Decree No. 660.1/6 of 2017.
growing at around 5.1-5.5% in the next two years.
BUSINESS OUTLOOK
In view of the latest update on macro economy – where
In reference to Fitch Rating report (October 2016), the
primary commodity prices have picked up, stability
oversupply condition in the Indonesian cement industry
is seen across trade balance and inflation rate, lower
is projected to temporarily continue for medium-term.
BI benchmark interest rate to 4.75% - market players
However, the industry’s profitability has been attractive
in general and cement industry players in particular
to investors and industry players to enter Indonesian
believe that cement demand in Indonesia will improve.
cement market despite the fact that demand has been
This view is further reinforced by Bank Indonesia
falling in the past three years, even demonstrating
favorable macroprudential policy of lowering LTV
negative growth trend in 2016. From 2013-2017,
requirement, limiting interest rate imposed on deposits,
investment realization and plan to develop cement
and on the monetary side applying a more flexible
plants in Indonesia reached around Rp63 trillion in
Statutory Reserve calculation.
nominal, and full realization will increase production
capacity to 108.77 million tons per annum.
At country level, the state’s finances have improved;
Indonesia’s credit rating has been upped to Invetment
Anticipating such a stringent market competition, the
Grade and confirmed by international rating agencies –
Company – that is currently completing two integrated
Moody’s Investors Service (Moody’s) and Fitch Ratings
plants and has plan to develop another two facilities –
following fundamental macro economic improvements
has planned to expand its market overseas. From 2015,
as the result of the Government’s appropriate actions.
the Company has been intensively exploring ways
Deregulation and bureaucracy reform, tax amnesty, and
and channels to expand regionally, including to South
tax reform programs have strengthened our national
Asia, by conducting various surveys and deep market
budget plan/RAPBN, which will in turn strengthen the
investigation. Expansion plans are set to take place
Government’s capacity to stimulate economic growth
in 2017. The Company is also undertaking strategic
through public spending. This will engender productive
business development actions in the downstream
economic activities and is expected to give rise to a
sector of the industry. Additionally, it has also started
more efficient economy. Consumer confidence index
another focus in logistics to strengthen the distribution
also improved to 115.4 from 107.5 in 2015.
channels of raw materias and finished products. The
Company is confident that all initiatives will bring about
expected results, as shown by its performance in 2016.
Annual Report 2016

227
Taking into account macroeconomy background and real market situation, cement and cement downstream industries
will remain promising in the future (see also: “Cement Industry Overview” section).
TARGET VS REALIZATION
The following table compares target and realization in 2016.
Target vs. actual 2016

Description (billion Rp) 2016 Target 2016 Realization (%)
Revenues 26,134 27,941 93.5
EBITDA 6,963 7,318 95.2
Net Profit 4,522 4,368 103.5
Capital structures
- Interest bearing liability 6,260 8,026 78.0
- Equity attributable to holders of parent company 29,035 29,149 99.6
Gearing ratio (x) 0.22 0.28 (0.06)
2016 was a fairly challenging year for the Company. Due to tight competition, the Company was able to realized
93.% of its revenue target and 95.2% of its EBITDA target. Nevertheless, the Company managed to deliver net profit
of Rp4,522 billion or 3.5% above target. In terms of capital structure, the Company realized only 78% of target, or
amounting to Rp6,260 in 2016, taking into account the ideal financing scheme for the Company considering the
situation in 2016. In terms of equity, the Company realized 99.6% of the target.
PERFORMANCE TARGET 2017

Performance target 2017 and realization 2016
Uraian 2016 Target 2017* Growth target (%)
Revenue 26,134 32,440 24%
EBITDA 6,963 8,697 25%
Net Profit 4,522 4,635 3%
Capital structure
- Interest bearing liability 6,260 9,167 46%
- Equity attributable to holders of parent company 29,035 30,977 7%
Gearing ratio 0.22 0.28 0.06

*Will be regularly reviewed and take into account market condition (demand and selling price)


Taking into account latest developments and current Detailed disclosure on marketing, strategies, programs,
situation, the Company used 5.1% national economic and results can be found under the “Markerting” section
growth assumption and inflation rate at 4.0%. Based in the MDNA Chapter.
on these assumptions, national cement demand is
projected to grow at around 5.0%. The Company DIVIDEND AND DIVIDEND
estimated 24% growth of revenue, 25% growth of POLICY
EBITDA, 3% growth of net profit, and 46% increase of The Company’s dividend payout takes into account its
loan. financial condition for business development and return
for shareholders. In accordance with the Management’s
MARKETING policy, dividend payout ratio is around 40% to 50%
A new marketing strategy under the tagline “Direct of net profit. The Company’s Board of Directors,
to Customer” commenced in 2016. Carrying the with approval from the Board of Commissioners,
commitment to be closer to the customers, the may distribute interim dividend provided that the
Company has continually improved the strategy Company’s financial condition has the capacity for it.
that started effectively in mid 2016. Early on in its Interim dividend shall be part of the final dividend which
implementation, the “Direct to Customer” has brought amount is determined in the GMS.
real results of maintaining the Company’s domestic
market leadership with 40.7% market share – decrease Pursuant to the GMS 2016 resolutions, the Company
only slightly from 40.9% in the previous year, while paid 40% of dividend from its net profit, or amounted
domestic cement consumption volume contracted by to Rp1,808.6 billion or Rp304.91 per share. The
0.7%. compound annual growth rate (CAGR) of dividend paid
in the last seven years is 35.8%.
Tanggal Date of Dividend Dividend Dividend Per

Recording Date Date of Payment Fiscal Year
GMS Payout (billion Rp) Share
13 May 2016 25 May 2016 16 June 2016 2015 40% Rp1,808.6 Rp304.91
16 April 2015 28 April 2015 20 May 2015 2014 40% Rp2,226.3 Rp375.34
25 March 2014 02 May 2014 19 May 2014 2013 45% Rp2,416.6 Rp407.42
30 April 2013 03 June 2013 17 June 2013 2012 45% Rp2,181.2 Rp367.70
26 June 2012 20 July 2012 03 August 2012 2011 50% Rp1,962.7 Rp330.89
28 June 2011 01 August 2011 15 August 2011 2010 50% Rp1,816.7 Rp306.26
07 May 2008 03-Jun-08 17 June 2008 2007 50% Rp887.7 Rp149.66
Annual Report 2016

229
REALIZATION OF IPO With SIB, the Company is developing ready-mix

PROCEEDS business to strengthen its competitiveness in the
PT Semen Indonesia Tbk did not exercise IPO during cement business and to secure its market share
the reporting year. The Company also did not exercise in the bulk cement segment. Ready-mix business
any rights issue. is grown through both organic and non-organic
means.
The Company exercised IPO in 1991. The proceeds
have been utilized and details of proceed utilization are In July 2016, the Company established a
disclosed in the Prospectus issued with respect to the subsidiary PT Semen Indonesia Internasional,
IPO. which is prepared as a regional and international
investment company. In total, the Company has
OTHER MATERIAL invested authorized capital of Rp5.1 billion.
INFORMATION:
• Investment • Divestment
The Company exercised investment to improve The Company did not exercise divestment during
operational performance by increasing efficiency, reporting period.
among others by completing 2 packing plant units
in North Maluku and Bengkulu. Another investment • Acquisition
was the construction of 1 grinding plant facility Through subsidiary PT Semen Indonesia Beton
in Cigading, which is in completion phase, and (SIB) the Company acquired the shares of Varia
the construction of waste heat recovery power Usaha Beton (VUB), a ready-mix company in East
generator (WHRPG) in Tuban. Java. Following the acquisition, the Company
owns 63.15% of VUB shares. The transaction was
• Expansion completed on 29 June 2016.
The Company has been expanding its production
capacity through the development of new plants Further, the Company also increased its ownership
(organic development). The Company is currently in PT Varia Usaha (VU) by 48.7% on 1 November
undertaking the construction of two new cement 2016, resulting in the Company’s current share
plants – each of 3 million tons capacity per year in – ownership in VU of 73.65%.
Rembang (Central Java) and in Padang (Indarung
VI, West Sumatera). Additionally, the Company is The Company utilized a total of Rp475.1 billion for
preparing the development of a new plant in Aceh share acquisition.
with 3 million tons capacity per year through PT
Semen Indoneia (North Sumatera), a project in • Merger/Consolidation
cooperation with PT Samana Citra Agung. Consolidation of SIB and VUB.
The Company is also ready to commence the • Debt/Capital Restructuring

development of a new plant, 2 million tons The Company did not exercise debt/capital
capacity per year, in Kupang, East Nusa Tenggara restructuring in 2016.
in cooperation with PT Semen Kupang and the
local government of East Nusa Tenggara. The Company utilized two fund sources to realize its
investment and expansion programs, namely internal
cash and bank loan.


REGULATORY CHANGES AND Regulatory Changes
IMPACTS ON THE COMPANY’S There were no regulatory changes in 2016 that
PERFORMANCE significantly affected the Company’s operations.

However, the Company did a number of adjustments to
respond to the effective enforcement of new regulations
in 2016 and regulations issued in 2016. The regulations
are:
LAWS AND REGULATIONS IN 2014, 2015, AND 2016 THAT AFFECT THE COMPANY
NO REGULATION CONTENT IMPACT
1 Bank Indonesia Regulation SOEs are required to meet The Company exercised hedging
No: 16/20/PBI/2014 on the Hedging Ratio of minimum 25% transaction for its capital expenditure
Implementation of Prudential for foreign-denominated liabilities commitment with respect to new plant
Principles in Managing development in Padang and Rembang
External Debt of Nonbank
Corporation
2 SOE Ministry Circular No Guideline of hedging for foreign- Semen Indonesia exercised hedging
S-687/MBU/10/2014. denominated liabilities for non- transaction for its capital expenditure
financial SOE import contract with respect to new plant
development in Padang and Rembang
3 SOE Minister Regulation Guideline to Determine the PT Semen Indonesia (Persero) Tbk
No. PER-04/MBU/2014 on Remuneratin of the Board performed the necessary adjustments
the Guideline to Determine of Directors, Board of according to the regulation.
the Remuneratin of the Commissioners, and Supervisory
Board of Directors, Board Board of State Own Enterprises
of Commissioners, and
Supervisory Board of
State Own Enterprises and
regulation amendment No.
PER-02/MBU/06/2016.
4 PT BEI BoD Decision No. Pursuant to attachment I-A point PT Semen Indonesia (Persero) Tbk. has
KEP-00001/BEI/01/01- III.5, a company listed in the met the requirement under PT BEI BoD
2014 of 2014 tentang Stock Exchange must have an Decision No. KEP-00001/ BEI/01/01-
Peraturan Nomor I-A tentang Independent Director 2014 of 2014 on Regulation Number
Pencatatan Saham Dan I-A concerning the Listing of Shares
Efek Bersifat Ekuitas Selain and Equity Securities other than Shares
Saham Yang Diterbitkan oleh Issued by Listed Companies, Attachment
Perusahaan Tercatat I-A point III.5
Annual Report 2016

231
LAWS AND REGULATIONS IN 2014, 2015, AND 2016 THAT AFFECT THE COMPANY
NO REGULATION CONTENT IMPACT
5 SOE Minister Regulation Concept and guideline on the PT Semen Indonesia (Persero) Tbk
Number:Per-13/Mbu/09/2014 utilization of fixed assets of utilized its fixed assets by, among others:
on the Guideline for the SOE in order to optimize the a. Build Operate Transfer/BOT;
Utilization of Fixed Assets of productivity of fixed assets b. Build Transfer Operate /BSG;
State-Owned Enterprise c. Operatons Cooperation/KSO;
d. Business cooperative/KSU;
e. Lease; or
f. Lend-Use
6 Financial Services Authority Criteria of material information or PT Semen Indonesia (Persero) Tbk refers
(OJK) Regulation Number: facts that must be disclosed by and complies with OJK regulation on
031/POJK.04/2015 on issuers or public companies Disclosure of Information that Must be
the Disclosure of Material Announced Immediately to the Public
Information or Facts by Issuers
or Public Companies
7 Financial Services Authority Annual Report of Issuers or The Company must submit Annual
(OJK) Regulation Number: 30/ Public Companies Report 21 days before GMS and/or no
POJK.05/2016 later than 30 April from the date of the
closing of financial year.
8 Financial Services Authority Structure, format, and content of The Company produces Annual Report
Circular (OJK) Number: 30/ Annual Report according to the format and content set
POJK.05/2016 on the Format forth in the regulation
and Content of Annual Report
9 Financial Services Authority Non-bank financial services Has no significant impact to the
Regulation Number: No1/ institution, such as insurance Company
POJK.05/2016 on Investment companies, deposit insurance
in State Bonds (SBN) for corporation, employer’s pension
Non-Bank Financial Services fund, and Social and Employment
Institution dated 11 January Social Security Agencies (BPJS
2016 and BPJS Sosial) must have SBN
in its portfolio of 20-30% of the
institution’s total investment in
marketable bonds
10 Financial Services Authority SBN comprises Bonds and As producer of cement and cement
Regulation Number: 36/ Sukuk issued by national downstream products used in
POJK.05/2016 on the and regional SOEs and their infrastructure development, the
amendment to POJK No 1/ subsidiaries to finance their Company is allowed to issue bonds with
POJK.05/2016 on Investment infrastructure, with 50% portfolio more favorable interest rate and to enter
in State Bonds (SBN) for effective after 31 December into credible bond market.
Non-Bank Financial Services 2016 as regulated in relevant
Institution, dated 10 November provisions.
2016


CHANGES IN ACCOUNTING o Amendments to PSAK 4: Separate Financial
AND DISCLOSURE STANDARDS Statements.

o Amendments to PSAK 7: Related Party
The Company has applied a new standard, a number
Disclosures.
of amendments, and an interpretation to PSAK issued
o Amendments to PSAK 15: Investment in
by the Financial Accounting Standard Board of the
Associates and Joint Venture
Indonesian Institute of Accountants that are relevant
o Amendments to PSAK 16: Property, Plant and
to its operations and effective for accounting period
Equipment.
beginning on 1 January 2016, which are:
o Amendments to PSAK 19: Intangible Assets
o Amendments to PSAK 22: Business
• Effective Standards in the Current Year
combinations
In the current year, the Group has applied a new
o Amendments to PSAK 24: Employee Benefits
standard, a number of amendments, and an
o Amendments to PSAK 65: Consolidated
interpretation to PSAK issued by the Financial
Financial Statements
Accounting Standard Board of the Indonesian
o Amendments to PSAK 66: Joint Arrangements
Institute of Accountants that are relevant to its
o Amendments to PSAK 67: Disclosure of
operations and effective for accounting period
Interest in Other Entities
beginning on January 1, 2016. The amendments
o ISAK 30: Levies.
to PSAK 5 Operating Segments (i) require an entity
to disclose the judgements made by management
• Standards and Interpretation in Issue Not Yet
in applying the aggregation criteria to operating
Adopted
segments, including a brief description of the
New standards, amendments and interpretation
operating segments aggregated and the economic
effective for periods beginning on or after January
indicators assessed in determining whether the
1, 2017, with early application is permitted are the
operating segments have “similar economic
following:
characteristics”; and (ii) clarify that a reconciliation
o P SAK 1: Presentation of Financial
of the total of the reportable segments’ assets
Statements about Disclosure Initiative
to the entity’s assets should only be provided
o I SAK 31: Scope Interpretation of PSAK
if segment assets are regularly provided to the
13: Investment Property
chief operating decision-maker. The Group has
aggregated several operating segments into a
Standard and amendment to standard effective
single operating segment and made the required
for periods beginning on or after January 1, 2018,
disclosures in Note 43 in accordance with the
with early application permitted are:
amendments.
o Amendments to PSAK 16: Property,
Plant and Equipment
The appllication of the following amendments,
o PSAK 69: Agriculture
and intepretation to standards have not resulted
to material impact to disclosures or on the
As of the issuance date of the consolidated
amounts recognized in the current and prior year
financial statements, management is evaluating
consolidated financial statements:
the effect of these standards and interpretations
on the consolidated financial statements.
Annual Report 2016

233
OPERATIONAL
REVIEW
236 Human Resources
Development
256 Information Technology and
Communication
265 Company’s Innovation
Movement
Semen Indonesia Mill Rembang, Central Java,
has a capacity of 3 million tons/year
HUMAN RESOURCE
DEVELOPMENT
We are fully commited in supporting

the efforts of the Company to enhance
its competitiveness through the
implementation of various strategic
initiatives, which improve the quality of
business process in Cost Transformation
program and new business line
development, by ensuring the adequacy
of competent Human Capital with strong
integrity.
We have set 2016 as the turning point

for the implementation of a global-
standard Human Capital management,
which allows us to shape Human Capital
as strategic enabler that enables the
Company to expand into a world class
cement industry with superior and
optimal performance in supporting
the development of the nation whilst
preserving the environment”
AHYANIZZAMAN
Director of HR and Legal


HUMAN RESOURCE DEVELOPMENT
Our programs in brief:

• Business conditions have become more challenging than ever. The Company’s response to overcome them
is by introducing fundamental business model change that requires the Directorate of Human Capital to
start designing and implementing the changes in the program management and implementation pattern at
the same time.
• In this first step, improvements and changes in the entire Human Capital system have started to be
implemented, which indicates a paradigm shift in its management, including a review of the Human Capital
Master Plan.
• The HC management paradigm shift program aims to change the mindset of the whole personnel of the
Company in carrying out their duties, in their attitude, and in giving optimal contribution to the Company.
The expected outcome is to make HC as the strategic business partner.
• Changing the role of HC from personnel function to forming values, leadership, and culture.
• Establishment of programs and foundations for the Human Capital System Standardization changes,
Improvement of HC Operational Excelence, Changes in HC Development Patterns, and Crystallization of
Corporate Culture.
• Adjusting the weight of training materials by focusing on character development and welfare package
adjustments.
The Company and other Indonesian cement industries Taking these conditions into account, the Company
are encountering substantial changes in business has implemented a fundamental business strategy
conditions at present and in the coming years. Limited change starting in 2016, as has been described in
economic growth in recent years, including in 2016, has the discussion of “Business Development Strategy”.
caused cement demand growth to steadily declining, The Company is determined to become a leading
even becoming negative by 2016. This condition is cement industry at the regional level supported by the
coupled with the increasing number of new players and development of new business units related to cement
the completion of the construction of new production businesses and prioritizing operational excellence
facilities from existing players as well as the entry of which requires a strong core foundation, namely human
imported products from countries that have firstly resource competence.
experienced over capacity, such as China.
The transformation of the Company’s function into
These conditions sharply increase the level of Strategic Holding which oversees several Operating
competition because of the excessive production Companies and various new subsidiaries in the
capacity compared to the volume of demand have downstream sector of the cement industry as well as
caused a decrease in selling price of products in other related industrial sectors also requires a change
domestic markets. Industry players, as well as the in all perspective of human resources. It means that the
Company, believe that over supply conditions and whole range of the Company must be able to get out
limited economic growth will continue for several years. of the comfort zone of the cement industry that has
been undertaken so far and enter the competition zone
of cement industry and other products that require
continuous innovation and the spirit to compete.
Annual Report 2016

237
For the Company, human resource is “human 1. Changing the Mindset of HC in running the
capital” which is also the Company’s most important business process,
assests. Assets here refer to skills, knowledge, and 2. Reviewing and improving Human Capital
behavior. Therefore, in preparing the foundation for Master Plan through improvement in HC
the business growth, the Company is determined to Management System,
initiate acceleration to adequately fulfill its HC needs 3. Improving the Development Pattern of HC’s
by making changes in HC management and training Competence.
paradigms based on changes of mindset, behavior of There are three objectives aimed from this strategic
HC in carrying out their duties, and projecting the future change that are, the management of HC must be able
of the Company. to:
1) Be synchronized with the business direction in the
PARADIGM SHIFT future,
One of the paradigms that must be changed is the In order to cope with the rapid change in
mindset of every HC in order to be able to see and the business conditions and challenges, the
realize the importance of synergy among operating Company must be able to quickly change the
companies in Company’s development. Each OpCo is internal conditions as well.
a unit within HoldCo Semen Indonesia; they must be 2) Changing the derivative/business consequence
synergized to increase the profit of the Company and nature of HC management into a strategic
ensure a long-term business growth. Therefore, every business partner.
employee of the Company should be able to serve In line with the Company’s future business
anywhere among the OpCos with strong perseverance direction, Human Capital must also be on board by
and integrity. improving the readiness of human resources and
its supporting system as well as forming human
Meanwhile, Human Capital management strategy resources development in order to align with the
that previously emphasized on the success of running Company’s business development strategy in the
supporting function has changed to a strategic future as well as having potential talents.
function of the business for the Company. This means 3) Change from personnel function, discipline
that HC management strategies must be aligned with enforcement and sanctioning / rewarding to
the company’s business strategies. Changing the forming values, leadership, and culture.
function of Corporate University (CorpU), from only to In achieving the Vision and ensuring the Strategy
closing the current and future competence gap among of the Company to be successful, people and
employees to becoming a business solution provider is culture have significant roles in becoming the
just one example of how the Company implements its foundation that underpins the implementation of
new approach. the strategies.
To ensure that the paradigm shift takes place, the The following are the strategies the Company has
Company through Human Capital Directorate identifies applied in order to achieve the objectives and realize
3 strategic change areas that must be implemented the strategic changes:
starting from 2016. They are as follows:


1. High performing human capital management

HUMAN CAPITAL SYSTEM
system
STANDARDIZATION
2. Leadership capability enhancement
In this initiative, there are a number of basic matters
3. Technical capability enhancement
that start to be settled in 2016 and will continue
4. Knowledge enterprise enablement
in the coming years, namely: Re-Formulation of
5. CHAMPS Culture crystalization
Compensation & Benefit, Talent Management System
and Career Level System.
STRATEGIC INITIATIVES OF 1. Re-Formulation of Compensation & Benefit
HUMAN CAPITAL IN 2016 AND The Company is increasingly affirming the
THE FUTURE implementation of employee remuneration
The various strategic initiatives undertaken to improve
policy using competency based approach and
the Human Capital management systems consists of
employee’s performance. The purpose of the
four groups of strategic initiatives, they are: Human
remuneration package is based on the following
Capital System Standardization, Human Capital
3 basic principles:
Operational Excellence, People Investment, and
1. Pay for Person
Crystallization of Corporate Culture.
The Company makes efforts in providing
remuneration packages in accordance with
The entire intended changes of paradigms, strategies,
the competencies of individual employees.
initiatives, and objectives of the Company’s HC
management are illustrated in the following chart.
Description of The New Paradigm

HC NEW PARADIGM STRATEGY INITIATIVES
High performing Human capital system standardization

1 Be aligned with future business direction
human capital Policy Alignment (Manual & Procedures)
HC Move Forward
Compensation & Benefit Re-Formulation

Change from a business consequence into
management system
2 Talent management system
Strategic Business Partner Design Organization Scheme
Leadership capability Career Path System
enchancement Human capital operational excellence
3 Change of function from focusing on
SPPD Simplication
personnel matters, disciplinary policies,
and sanctioning/rewarding, to building
Technical capability Service desk
enchancement Reblueprint SAP HCM
values, leadership, and culture
People investment
Leader teacher & Retired Facuty
Knowledge enterprise
Predicting future capability
enablement
Professional Certification Institute (LSP)
Knowledge Mgmt Strategy & Innovation
CHAMPS culture Assesment Center & Counseling
crystalization Corporate culture crystalization
Structure follows strategy People follows the structure
Annual Report 2016

239
2. Pay for Position As part of the reformulation package of

The Company strives to providing compensation and benefits, the Company has
remuneration packages in accordance with designed formulation changes to be applied to the
the position of employees. It is indicated from assigned employees in the Operating Company.
different grading values for each position of The fundamental change is done by linking Opco’s
the employees. performance with the compensation and benefit
3. Pay for Performance package that will be received by the employees.
The Company makes efforts in providing
remuneation packages in accordance with the Performance Management System:
performance of the employees based on the In line with the remuneration structure
established KPI. reformulation, efforts to establish performance-
based culture with performance-based incentive
The Company provides remuneration in the form models are also made. Along with the Employee
of basic salary, fixed allowance (job allowance) and Performance Management sub-project, the
non-fixed allowance (attendance, meal, duties, Company sets standardization of employee
supervision, overtime, location), assistance & assessment based on KPI and Competency
donation (marriage, moving fee, bereavement, criteria. The following are the steps the Company
legal assistance) and incentives based on or has taken:
directly related to the Company’s performance for • Developing SAP by redesigning the blueprint
employees in the form of 3-month performance of HC module, among others: personnel
incentives and annual production services. development and succession planning.
• Applying Carrier Path so that employees have
The Company also provides health care services clear understanding on their self-development.
for employees and families of the insured in order • Developing assessment center to measure
to ensure smooth operation, especially in terms of competency gaps and ensure that the
the physical fitness of the employees. In addition, employees are ready to follow the required
the Company is also seeking sports activities to training programs.
encourage a healthy living culture through the • Applying performance-based reward that
provision of sports facilities, sports competitions, allows the employees to have individual KPI.
and facilities to participate in certain sports club
activities.


This system is expected to be able to form the been in the “Drive Your People” category. It means that
employees’ behavior that is in accordance with the the Talents in Semen Indonesia Group have become the
KPI of the Company. Drivers for the people around them in order to make the
Company more successful in the future.
Performance Planning
• Setting Key Performance Indicators and competence that are
consistent with business plan
• Shared ownership and commitment
an c e
r formning
Pe Plan
Performance
Mentoring/Mid-Year
Review
Perfor
Men man
Performance Performance • Discussion and continuous
an ent
ce
support to attain goals

Assessment
Management
t
or ssm
• Feedback on KPI and

o
• Actual vs target assessment

rin
competence performance
m
based on KPI and

g
competence targets se ce
As erf
• Training and feedback on P
overall performance
• Identifying areas for further
development
Performance assessment is an annual activity Further, the Company will establish talent-strengthening
conducted every quarter. programs so that their competencies will continue to
grow in order to act as “Strategic Enabler” which is
1. Talent Management System able to support the Company’s growth with its ability to
Aimed to preparing future leaders through mindset create “Bussiness Model Innovation”.
change & driver mentality formation.
The competence assessment of the talents will be
Realizing employees’ potentials, the Company provides conducted in the ranks of echelon III and IV as well.
professional and self-development opportunity as widely The Company has prepared competence improvement
as possible to all employees. In order to develop the programs for the echelon III and IV.
talents, the Company has analyzed the competencies
of existing talents by dividing them into several program 2. Career Level System
groups, namely: 1) Drive Yourself, 2) Drive Your People, With the establishment of the Company as a strategic
and 3) Drive Your Company. The result of competency holding, the Company is currently embarking on a step
analysis on all existing talents holding Echelon I and toward designing a more advanced career path system
II positions shows that about 45.2% of talents in the that is more in line with changing conditions to address
Echelon I pool (from total 104 people) and 34.2% talents future business needs and challenges.
exist in Echelon II pool (out of a total of 307 people) have
Annual Report 2016

241
For the development of employees in Semen Indonesia The Human Resource Information System is constantly
Group, the Company has also prepared a solid career reviewed for continuous improvements of implemented
ladder system for all employees of the Company, modules, as well as implementing new modules required to
including assigning them to Semen Indonesia’s improve employee management standards.
subsidiaries and affiliates where employees are
expected to improve their competence, especially Changes in the business conditions - that prompted the
leadership. Company to designing new business models through the
development of downstream business units of cement and
Some adjusted aspects in the determination of cement-related businesses – have required the entire systems
career level include: job grading criteria, job analysis, available in the existing Opcos to be re-synchronized, an effort
adabtability, team performance assessment, individual that began in 2016.
performance assessment, and innovative ability as
problem solution provider. In 2016, the Company also conducted SAP HCM blueprint re-
design, especially on Talent Management module.
HUMAN CAPITAL OPERATIONAL
EXCELLENCE PEOPLE INVESTMENT
There are three important aspects to be improved in this Various improvements are also implemented in the development
area, namely the simplification of SPPD & Service Desk, and of human resource competencies. For the Company, these
blueprint re-design of SAP HCM. are part of its investments. Improvements of competency
1. Simplification of SPPD & Service Desk development cover various aspects ranging from tools used
In order to strengthen internal communication, service to programs prepared and training materials provided. There
desk that can be used by the employees to access are five aspects of human resource investment: Leader as
information related to management and development of teacher & Retired Faculty (through CDL - Corpu), Predicting
human resources is provided. In addition, HC has also future capability (Professional Training Program), Professional
developed SPPD Simplification program to facilitate Certification Institute, Knowledge Mangement Strategy &
employees in conducting SPPD process; simplifying Innovation, and Assessment Center & Counseling.
path for a faster processing. 1. Center of Dynamic Learning Semen Indonesia
Corporate University
2. SAP HCM blueprint re-design and Human Resource The Company transformed the Learning Center into
Information System Refreshment Corporate University under the name Center of Dynamic
In order to support the human resources management Learning - Semen Indonesia Corporate University and
operation, the Company has been integrating the HR was officially opened on August 28, 2014. The purpose of
management with SAP information technology system. CDL-SI Corpu establishment is to become a provider of
There are 10 Human Resource Information System (HRIS) learning solution that can provide solutions to bussines
modules that have been implemented in the Company: issues encountered by the Company.
Organization Management, Personnel Administration,
Payroll, Time Management, Travel Management, The Company’s Corporate Transformation to become
People Development, Learning Solution, Performance a Strategic Holding that focuses more on business
Management System, Appraisal Management, and development and regional requires Institutions like CDL-
Compensation Management. SI Corpu that are more proactive in solving business
issues than merely filling the competency gaps among
the employees.


Therefore, as part of the Semen Indonesia Center of the these changes, up to the next few years, the
CHAMPS (SICC) Center of Dynamic Learning, Center of training materials for character building occupied
Dynamic Learning is responsible for providing business the highest proportion (50%) followed by business
solutions through the employees’ competencies knowledge improvement (30%) and the remaining
development of the Company, subsidiaries within the supporting materials (20%) such as team work
Group, and Partner Companies within the Company’s improvement, Basic competencies, etc.
business chains, as well as proactively responding to the
needs of current and future competencies by changing In the organizing process, learning programs
the learning orientation. are designed based on learning focus. They are
grouped into 8 academies, namely: 1) Production
To affirm the change, the Learning Council Meeting & Research Academy; 2) Marketing & Distribution
had been conducted with the Board of Directors of the Academy: 3) Engineering & Project Academy: 4)
Company and the subsidiaries in the group. The meeting Bussiness Development Academy: 5) Finance &
established the focus and policies and working program Operational Academy: 6) Leadership Academy;
of CDL - SI Corpu in 2016 - 2017, as stated in the 7) Corporate Culture school and 8) Customer &
following charter. Stakeholder Center.
In addition, the learning programs in the Company

are grouped into three major groups: Personal
Mastery, Leadership Mastery, and Business
Mastery.
i. Personal Mastery
Paersonal Mastery is a learning group with
themes related to individual competency
development programs to strengthen
the character and corporate culture. The
examples of this group are programs such as
CHAMPS Strengthening, as well as integrity
and civic literacy strengthening.
2. Training Program
Learning materials are planned and designed The strengthening of civic literacy was
based on the Learning Need Diagnosis, and held in collaboration with National Defense
intended to address the issues of employees’ Agencies of the Republic of Indonesia
competency gap in carrying out their current and for the Board of Directors and Echelon 1
future work, deriving from performance issues of Officers. As part of the effort to achieve the
a certain unachieveable working unit target, as paradigm shift, the Company increased the
well as the business issues encountered by the portion of character and corporate culture in
Company. As part of the implementation of the the content of training materials.
HC management paradigm shift, the Company
applied changes in training material policy. With
Annual Report 2016

243
The event for sharing knowledge and experience or sharing knowledge
ii. Leadership Mastery. Programs, such as Global Leadership

Leadership Mastery is a learning group Development Program for echelon 1,
associated with leadership development at Transformational Leadership Development
all levels. The Company believes that the Program for echelon 2, Operational
work climate is determined by the leader Leadership Development Program for echelon
of a working unit. Therefore, leadership 3, and Emerging Leadership Development
development becomes one of the focused Program for echelon 4, will continuously be
aspects in the development program. implemented and refined in order to ensure
the availability of qualified leaders in the
Company.
Executive Development Program

Board of Directors Semen Indonesia Group
Global Leadership
Development Program Eselon 1 (Department Head)
(GLDP)
Transformational
Leadership Development Eselon 2 (Bureau Head)
Program (TLDP)
Operational Leadership
Development Program
(OLDP)
Eselon 3 (Section Head)


Best graduates by echelon level in the leadership

training program.
THE COMPANY FOUNDATION : The Board of Directors SMI, Semen Padang, and Semen Tonasa were attending the assembly of learning council Center of Dynamic Learning
(CDL) at PPS Building, Gresik, Monday (29/8). The CDL or Semen Indonesia Corporate University is a strategic institution to educated an excellent HR.
Coaching system iii. Business mastery

Business mastery is a group of competency
Leader café, which is a medium for senior leaders to development programs primarily on the
share experience to young leaders, is continuously technical competency functions in the
implemented to complement the existing leadership Company, ranging from production, R & D,
development program. engineering, projects, marketing, distribution,
logistics, finance, human resources,
business development, to other operational
functions. Development in the business
mastery is complemented by assessment
and certification programs to ensure that the
employees are competent in the working unit
placement.
Annual Report 2016

245
Leading Program in 2016 - Chief Finance Officer Preparation
The Chief Finance Officer Preparation Training is organized in a se-

ries of efforts by the Company to prepare Finance Directors through-
out the group. This program is continually implemented. CFO Prep-
aration is one of the leading programs held in 2016. The Company
has prepared 2 batch programs followed by approximately 40 CFO
candidates to be placed as Finance Director throughout the Group
of the Company.
E Learning
- Learners can also conduct simultaneous
By 2016, the Company has completed the
virtual classroom learning with video
e-Learning development project as one of the on-
conference feature with facilitators from
line learning portals. E-Learning is a breakthrough
various operational locations of the
in delivery method that can cut the cost of learning
Company, as well as on-line discussion
according to the function of features that exist in
forums such as video conferencing and chat
it. They are as follows:
rooms.
- Learners can access the online learning
materials independently anywhere and
The enthusiasm of every personnel of the Company
anytime. In this case, the on-line learning
can be seen from the presentation of the fulfilled
materials provided vary from e-Books, online
learning target throughout 2016 as shown in the
article links, as well as materials designed
table below.
specifically for specific learning.
The Group of the Company shows that the target of

study hours on average in 2016 reaches 43.23 from
the target: 40 hours / person / year.
sd. December 2016

60.00
48.91
Average Hours of Learning
46.04 47.95
50.00 44.31
39.96 41.68
40.00 40.00
30.00
20.00
10.00
0.00
Semen Semen Semen Semen Semen SEMEN
Indonesia Indonesia Gresik Padang Tonasa INDONESIA
(2000) (7000) GROUP


3. Professional Certification Institute Within two years of its establishment, The

Since the introduction of the ASEAN Economic Professional Certification Institute of SMI
Community (APEC) in 2015, the Company Group began to show the growth of assessor,
has established a Professional Certification competency test participants and certification
Institute in cooperation with the National schemes numbers as shown in the following table.
Professional Certification Agency. This agency
was inaugurated on 30 August 2015. At the Table of Assessor, Competency Test Participant,
same time, 5 development schemes for one and Certification Scheme Numbers
year establishment of Professional Certification 2015 2016
Agency were arranged by developing them into
Competency Assessors 23 20
51 types of certification in order to improve the
Competency Test 80 103
competitiveness of employees in the region.
Participants
The Professional Certification Institute as the Certification Schemes 5 51

center of the competency certification in the
Company and subsidiaries has the following tasks:
i) designing and developing certification scheme,
ii) making assessment and competency tests, iii)
providing assessors, iv) performing certification, v)
conducting certification maintenance surveillance,
vi) establishing requirements, verifying, and
establishing Competency Test Location, vii)
maintaining the performance of assessors and
Competency Test Locations, and viii) developing
The Chairperson of BNSP and the Director of
certification services.
Human Resources & Law set up a workshop on
the preparation of the Certification Scheme of
The socialization on the importance of Company’s
Professional Certification Agency of SMI Group on 14-
readiness to win the competition in the era of the
16 December 2016
ASEAN Economic Community is consistently
conducted to encourage the employees to
4. Knowledge Management
continue developing themselves and obtain
The Company believes that Knowledge
certification according to their area of expertise.
Management is also a pillar for learning
organization. Therefore, Knowledge Management
is defined as one of the fields in SICC and is
called Center of Knowledge Management (CKM).
The CKM’s contribution is intended to support
the Company in managing the knowledge that
it already possessed and to use it to overcome
intense competition in the future.
Annual Report 2016

247
Organizational knowledge is managed within the framework of 9 competencies. The first six competencies are
knowledge sharing practices and the other 3 are the provision of supporting infrastructures, structured policies,
and commitment of the Leader in knowledge management. The 9 competencies are:
1. Expert Locator
2. Communities of Interest
3. Peer Assist
4. Shared Learning
5. Project Retrospectives
6. Community of Practice
7. Technology
8. Change Management
9. Strategy
Strategic
Collaboration
All o dr gra ledg
(Communities of
ce (Ch age
ow ive tin e s
s) ge
Pro g ur l
t nte w
nt rnin enco iona
Communities Practice)
(I kno
sse an
ing de g b tra
Expert Locator
t
ge & le to isa
of Interest
ca live usin tegi
na n ers an
pa ry es es
Sharing Learning
Ma oratior driv ll org
bil str s a )
‘Learning learning from every

ity at n
me a
while doing delivery Forum

a
str egi d
before Blog
llab iou g
as the basis cycle as

ate es
co ehav ordin
doing’ as
for career a crucial Peer
gie
risk mitigation
Peer Assist Learb & Share 3rd outcome Assist
b Acc
success Learn &

s
(Peer assists) of every

(Shared Wiki DMS Share
initiative (Project
learnings) retrospective)
Virtual Physical
Project Communities Creating a culture of knowledge exchange
through conversation (Communities of Interest)
Retrospective of Practice
Competence Networking (Expertise Locator)
Using technology appropriately

(Technological enablement)


CORPORATE CULTURE
CRYSTALIZATION
PEOPLE : BEHAVIOR
• Leader as role model
• Coaching system
SYSTEM • Competency design

• ePMS
• Training Program
• Reward : IK, Merit, Karyawan Teladan
COMUNICATION
• Internal Communication : Socialization
• External Communications
INFRASTRUCTURE • Banner, brochure, pocket book, pin,

uniform, building
• Rits, ritual, ceremonial
• Culture Guard
Strengthen the CHAMPS culture programs
The Company has reached the stage of cultural

Cultural management in the Company consists of 3
internalization in 2016. There are several ways the
elements:
Company took to continually strengthen the CHAMPS
• Primary: Leader as Role Model (One of which the
culture to the employees. In the year 2016, the spirit
Company has designed the 21st Leader Café).
of SMI – synergy, perseverance, and integrity, which
• This Primary Program will continue to be developed
translated into CHAMPS as the latest corporate culture,
into various activities, such as: Monthly CEO talk,
had also been introduced.
Leadership video blog, Management e-Message,
Town hall meeting, Casual Lunch / Dinner with
In the last 2 years, the Company has undergone 2 major
Leaders, and Leadership Spotlight.
process stages of socialization and internalization.
• Secondary: Building the pattern of exemplary
There are several ways the Company took to continually
employees as Team agents, Gymnast of Champs,
strengthen the CHAMPS culture to the employees.
Choir of Champs.
• This secondary program is still under development.
• Environment: Making cultural artefacts such as
banners, etc.
Annual Report 2016

249
Sebagai wujud komitmen untuk membangun budaya The Debate Forum is a place to practice defending
perusahaan yang positif, Perseroan telah membuat opinions and convincing others about a concept and
SK tentang Budaya Perusahaan. Selain itu, Perseroan principles, and to train critical thinking patterns with the
juga melakukan pengukuran VMS value management “why?” and “why not?” questions.
mendapatkan gambaran seberapa jauh organisasi telah
mengimplementasikan value nya dengan penilaian 360 The Dream Forum is a forum where participants can
derajat. the sensitivity of facing various possibilities that befell
the company is fostered together by using a “what if?”
Leader Cafe question.
Leader Cafe is consistently and sustainably established
as a medium for Senior Leaders, usually Board of
Directors, Commissioners, or external figures who
are qualified in an aspect of competence, to share
knowledge and experiences to other leaders. This
concept is an implementation of Shared Learning
activities in a large scale. It involves future leader
candidates of the Company such as the leaders of the
working unit as the participants. With the concept like a
cafe, the participants are expected to enjoy the process
of knowledge sharing provided by the resource person.
Throughout 2016, 9 SMI D’Forum that raised various

strategic topics have been conducted. This activity is
expected to be able to continue in the following years
and have a significant impact on the Company.
INDONESIA HUMAN CAPITAL

STUDY (IHCS) 2015
Indonesia Human Capital Study (IHCS) is a study on
human capital management within the organizations
/ companies in Indonesia. The study was conducted
by Human Resources Consultants in cooperation with
SMI D’Forum and supported by Human Capital Indonesia Forum,
SMI D’Forum is a medium for experience sharing, Association of Human Resource Management, and
which can mean as SMI Discussion Forum, SMI Debate several universities in Indonesia.
Forum, or SMI Dream Forum.
The Discussions Forum involves experts or teams from

across departments or corporations. It discusses a
hot topic in a particular field, which is relevant to the
Company’s business strategies in accordance with the
critical knowledge required.


The purposes of this study are: Penghargaan Employee of the Year

• IHCS study results can be a benchmark against The Company gives appreciation to employees who
the approach, process, and outcome of the Human are able to contribute and best role models in their
Capital System application in the Company, hence, respective working units. The award is given annually
the learning process and transformation can be in order to create a conducive and productive working
run faster toward the desired direction. climate. The prizes given to these exemplary employees
• There will be effective Human Capital which is in are Umroh to the holy land for Islamic employees and
harmony with the strategy of the organization, and spiritual tours to Jerusalem for Christian employees.
Human Capital practitioners who further strengthen
their strategic position as business partners in EMPLOYEE DEMOGRAPHY
driving the growth rate of the organization in the Along with the landscape changes in the cement
middle of Indonesia’s current economic growth as industry, the Company seeks to prepare talents who are
well as in the future. capable in supporting the competition and encouraging
• Human Capital Index Norm from various industries the growth of the Company’s business. Therefore,
in Indonesia is obtained. regeneration is a necessary process in order to make
• The Company is encouraged to assess the ensure the Company’s continuity and optimization is
effectiveness of initiatives in the area of Human required in order to make the Company becoming more
Capital that have been conducted. competitive against the competition in the industry.
• The Company can set benchmarks and direction
of improvement that need to be done in Human The demography Indonesian Cement employee is
Capital aspect in order to support the business shown in the map below.
development, hence, the vision and mission of the
Company will be achieved. DEMOGRAPHY BY EDUCATION LEVEL
At IHCS 2016, the Company was awarded as Best 3847 3849

3149
of Human Capital Index Effectiveness on Various
Industry and Best of Employee NPS on Various
1243
Industry. 1269 1373
1107
773 791
447 180 400
3 3
2014 2015 2016

Senior High Diploma 3 (DR) Undergraduate Graduate Doctorate
The Company provides wide opportunities and

support for the employees to improve their education.
It appears that there is an increase in the educational
status of employees from high school to D3 and from
Undergraduate to Graduate.
Annual Report 2016

251
The high number of employees approaching retirement

100% 2% 2% 2%
5% 5% 6% age in the composition is mitigated by accelerated
80% 10% 11% 11%
regeneration of new employees.
60% 32% 33% 32%
40%
20% 51% 49% 49% PROGRAM PLAN IN 2017

0 The competition in the cement industry in Indonesia
2014 2015 2016 which becomes more challenging means the HC must
Echelon 5 Echelon 4 Echelon 3 Echelon 2 Echelon 1 also prepare the competence of employees to be able
to win the competition.
The current employee total is 5,902 people, declining
from last year’s number of 6,196 people. The Gen Y and Gen X have become more prominent in the
Company’s continuous business process improvement Company with 80% employees comprise Gen Y and
and evaluation has enabled it to futher optimized Gen X. Certain approaches are employed for those
employee composition. employees including a personal development program
that is continuously developed by the Company to
Employee Turn Over improve their retention rate.
Per December 31, 2016, 294 people were no longer
part of the Company as employees. The Company’s To follow up the strategic initiatives in 2016, the
turn over rate in 2016 fell from 5.09% to 4.98%. Company will conduct various action programs in
2017, including:
1. Human capital system standardization, by
Attrition
focusing on the Compensation & Benefit Re-
Formulation and Talent management system.
3% 2. Human capital operational excellence,
5% by focusing on finalizing the SAP HCM
Regular retirement
Reblueprint process.
5
%
Early retirement
3. People Investment, by focusing on Knowledge
Resignation
87% Management Strategy & Innovation as well as
Decease
role consolidation of Assessment Center &
Counseling.
4. Recruitment and manning of additional
manpower to meet the organizational structure
Employee by attrition rate in new business.
5. Corporate Culture Crystalization, by focussing
1,400
on changing the mindset of the whole range of
1,200
1,000
the Company’s employees.
800
600
200
-
<=25 26-30 31-35 36-40 41-45 41-50 >= 51
year year year year year year year
2014 2014 2014


IMPLEMENTATION
OF CORPORATE
TRANSFORMATION
2. Establishing new Companies as Operating
Companies
The intensification of Tuban
facility management with
KSO model is a part of Corporate
Transformation Process in
becoming pure Strategic Holding,
a corporate mitigation action to
face future business condition and
establishing Semen Indonesia as 3. Separating the Roles and Functions of Operating
leading player in the regional and and Holding
Indonesian cement industry.”

Roles and
Functions
STEPS OF CHANGE IN
THE STRATEGIC HOLDING Strategic
IMPLEMENTATION
In following up the Corporate Transformation process,

the Company takes fundamental changes in Strategic
Operating
Holding Implementation, which are:
1. Changing Company’s name which will serve as
Strategic Holding
Functional Strategic 4. Standardizing the governance of Operating

Holding Holding Companies (i.e., Blueprint, GCG, Management
System)
5. Adjusting the Business Process (i.e., by

implementing Shared Service Function)
Annual Report 2016

253
TOWARDS A GROWTH-READY
STRATEGIC HOLDING
Strategic Holding
Operational Operational Fungtional
Company Holding Holding
International
Holding
1991 1995 2005 2012 2017

Independent Post-Acquisition Consolidated & Strategic Strategic Holding
Company Synergy Holding for Business
Expansion
Aims: Measures
üü Strengthen the Company’s position in facing 1. Changing Company’s name to Strategic Holding
changes and competition Company (HoldingCo)
üü Separating and optimizing the functions of 2. Establishing new companies as Operating Company
Holding and Operating Companies (OpCo)
üü Maximizing group synergy 3. Separating the roles and functions of OpCo and HoldCo
üü Aligning corporate perception and culture 4. Standardizing OpCo governance
üü Aligning corporate performance 5. Adjusting business process
OPERATIONAL COOPERATION Semen Gresik manages the existing factory in Tuban

OF SEMEN INDONESIA AND using the KSO model, while new factory in Rembang
SEMEN GRESIK is managed like other operational units that have been
managed by Semen Gresik since the beginning.
As PT Semen Gresik is established as a separate
subsidiary entity and will manage the existing In order to make KSO successful, Company conducts
operational function in the Company, the Company will comprehensive review related to KSO Operating Model
be focusing more in increasing the benefits of better and Business Process. Corporate Transformation
synergy through enhancing the cooperation between team is established to monitor and ensure successful
operating companies. implementation of KSO. In the last phase of KSO Go-
Live, Corporate Transformation team takes the role as
Change Agent by socializing the changes caused by
KSO implementation.


1 January 2017
Go-Live KSO
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN
2016 2017
Steps towards KSO Implementation
Manual and procedure preparation √
Group-wide manual and procedure migration and assessment √
KSO Model operating study √
KSO business process study √
Change management and Go Live preparation √
Socialization, workshop, and publications √
With the establishment of PT Semen Gresik as the Considering the realization of preparation program
new operating company, the Company encourages the has been conducted thoroughly, well-measured and
establishment of PT Semen Gresik Labor Union with well-planned; the future management of new factory in
262 employees of PT Semen Gresik as members today. Rembang and Tuban factory is believed to work well in
The registry of PT Semen Gresik Labor Union in Tuban accordance with the determined targets.
Regional Labor and Social Welfare Department was
carried out on 18 July 2016.
Annual Report 2016

255
To improve the
functions of information
and communication
technology as enabler of
the Company’s business
development, aside from
developing its function as
an operational support to
improve efficiency for the
purpose of strengthening
INFORMATION AND
the Company
competitiveness
COMMUNICATION and maintaining its

profitability.”
TECHNOLOGY
In order to anticipate and to respond to the current and future changes in
the business conditions, the Company has been working hard to improve the
important functions of Information and Communication Technology (ICT) in
supporting the Company expansion strategy, starting from system and data
provision for market research, forecasting and market simulation, raw material
reserves simulation and portfolio, performing due diligence in acquisitioning
other cement plants, project management, new production facility operations,
building synergy among production facilities, and also monitoring, evaluating,
and consolidating the Company performance report.


INFORMATION AND COMMUNICATION TECHNOLOGY
In light of the changes in ICT functions, the Company that can directly accelerate the Company business
establishes PT Sinergi Informatika Semen Indonesia (PT growth. Therefore, in line to the strategy formulation
SISI) as a subsidiary company that focuses on the ICT. and business development roadmap, the Company is
The main task of the subsidiary company is to support the consistently implementing initiatives according to the
operational activities and the development of ICT in PT ICT master plan to support the business strategy and
Semen Indonesia (Persero) Tbk. to strengthen the Company competitiveness in the
cement industry, where cost efficiency is one of the
Supported by SISI, the Company anticipates and responds main key to win the competition.
to the dynamic business conditions by developing various
applications to help improve the Company competitiveness. The Company has also formulated ICT Target Operating
At the same time, SISI is also developing various services Model to ensure the support of IT in implementing the
and bundling application programs available for third business strategy is based on these principles:
parties in order to get a source of income. • Business Process and System Standardization in
every member of Semen Indonesia group
INFORMATION AND • Level improvement on automation process
COMMUNICATION TECHNOLOGY • Control improvement
DEVELOPMENT
Quality improvement is carried out by developing the The scheme of ICT Target Operating Model to support
functions of Information Technology as the catalyst the business strategy is depicted as follows:
• Business
Drivers
Strategy • Guiding
• Business
• IT Requirements • As Is analysis Principle
Requirements
Components of Target Operating Model Other Project
Application Security IT Vision

• ERP • CRM
Architecture Architecture Organization
Colaboration Unified
• Bisiness Integration
Tools for Communication • IT Governance
Intelligence Architecture
Customer Portal Architecture
• Knowledge • Human Network

• BCM Managed Services
Management Resources Architecture
Annual Report 2016

257
ICT MASTER PLAN to revitalize and improve ERP module, as well as to
IMPLEMENTATION broaden the performance to support CRM (Customer

Relation Management) and SCM (Supply Chain
The Company has formulated ICT master plan with
Management). CRM and SCM are the keys to improve
a methodology that guarantees alignment between
the Company competitiveness in domestic and regional
every business need and ICT initiative. Every business
market to “enhance the Company’s growth”.
need and plan from all operating companies (OpCo)
is identified, from operational level to strategic level.
CRM will enable the Company to “move closer to the
Moreover, from all of the business needs and plans,
customers by providing better customer knowledge
ICT initiatives are determined to support and even to
and customer support to excel in the market. SCM will
accelerate the process of achieving the target business.
strengthen the supply chain network from the Company
It is divided into three categories; ICT Infrastructure,
by uniting and integrating the supply networks and
ICT Management, and Business Services.
improving cooperation with vendors. SCM will take the
lead and support the Company strategy to “manage
Phase II of 2014-2017 ICT master plan (ICTMP II) is the
energy security” and to “maintain the key risks”. The
continuation of Phase I (ICTMP I). Meanwhile, where
overall ICTMP II will “elevate the Company image”.
ICTMP I concentrated on the provision of a single
system ERP, allowing business process standardization
Continuous Improvement from ICTMP I to ICTMP II
among OpCo to be accomplished, ICTMP II attempts
ICTMP I ICTMP II
Core ERP Extended ERP
SAP
SAP ECC
ECC SCM CRM
SAP Core Module: Supply Chain Revitalize SAP Customer

• FICO Management: Core Module: Relationship
• SD Integrated • Maintenance Management:
• MM Management of Mangement Attract and Retain
• PP, QM Supply Network • Integrated Plant Customer Through
• PM, PS • Supplier Information Integrated :
• HR Management System • Customer Profile
• Purchasing • Analytical Report • Marketing
• Warehouse • Project • Sales
• Transportation Management • Support
• Distribution • Performance
• Delivery Management


2014-2017 ICT master plan initiatives implemented in 2016 are as follows:
Dashoard Accounting & Finance

• PAR4DIGMA • Business Planning & Consolidation
Sales & Marketing

• SILOGS
• FORCA ERP CSR
• Business Care Center • E-Commerce Mitra Binaan
• RFID Automation ICT • SIM PKBL
• GPS Tracking SUPPORT
TO SMIG
• Warehouse Management BUSINESS
Plant Maintenance
• Mobile Smart Preventive
HCM Maintenance
• Mobile Emoloy Self Service
• E-Learning
Infrastructure
• Data Centre & Network Together We Build A Better Future
• Video Confrence
ICT DEVELOPMENT DESCRIPTION FUNCTIONAL RISK REDUCTION OPORTUNITY TO

INITIATIVE CAPTURED
PAR4DIGMA V1.0 Mobile dashboard Reduce the late • Analyze more granular
Performance, Analitycal visibility of key information
& Reporting for Digital information/data • Monitor corporate
Manufacturing performance
• Early warning system
DATA CENTER & Active active Data Centre • Reduce Business • Leverage IT resources to
NETWORK disruption Risk value to business and its
• Reduce SLA strategy
violation risk
Video Conference Increase the number of tools • Reduce Business • Leverage IT resources to
Optimization and improve the quality of disruption Risk value to business and its
Video Conference • Reduce SLA strategy
violation risk
E-Commeree Mitra Information System for the • Reduce time for • Quick dealing process
Binaan management of Semen business
Indonesia partners’ online
products
SIM PBKL Information System for PBKL • Enhance automation and
management control features
Reduce complexity • Increase performance
and time in some • Process simplification
business processes • Increase customer loyalty
Annual Report 2016

259
ICT DEVELOPMENT DESCRIPTION FUNCTIONAL RISK REDUCTION OPORTUNITY TO

INITIATIVE CAPTURED
Business Care Center Integrated Information System • Reduce inefficiency • Build/educate market
‘BISNIS KOKOH’ for the customers/retails to • Increase customer loyalty
build relationships as business
partners
SILOGS (Semen Information System for • Reduce inefficiency • Process simplification
Indonesia Logistic distribution and transportation
System) management by third parties
(3PL)
FORCA (ERP Information System for Semen • Reduce inefficiency • Enhance automation and
Distributor) Indonesia Distributors’ daily • Reduce underserve control features
operational activities integrated market • Increas performance
with the system used by • Process simplification
Semen Indonesia Group • Build strong networks
with partnes
Supply Chain Control A room to monitor supply chain • Reduce unmanaged • Increas Performance
Room data in real time to accelerate operation • Process simplification
decision making process
GPS Tracking Information System to track • Reduce • Keeping position of
cement shipments to the unmonitored vehicle vehicle location and
assigned destination so that speed while reporting
the accuracy of destination real-time
and time of delivery can be
confirmed
RFID Automation Information System for freight • Reduce • Keeping track of vihicle
fleet management unmonitored vehicle while loading operation
E-Catalog Information System for a faster • Reduce complexity • Enhance automation and
and more effective business and time in some controll features
procurement business processes • Increas performance
• Process simplification
Integreted Mobile Mobile application whose • Reduce time for • Quick approval process
Office functions are integrated and business
required by every employees
such as sppd, leave,
correspondence, etc.
IT Corner A certain area equipped • Reduce uncaptured • Efective Knowledge
by computers with various knowledge sharing
software to support business
activity
E-Learning Web-based Information System • Reduce uncaptured • Efective Knowledge
which provides online training knowledge sharing
for employees that can be
accessed anywhere
New Businness ICT support on operational Reduce complexity • Enhance automation and
Planning & activities and the Company and time in some controll features
Consolidation financial automation & business processes • Increas performance
streamlining business forecast, • Process simplification
planning and consolidation


Strategy Implementation Conference equipment, allowing the user to conduct

To ensure the success of ICTMP implementation, a long-distance coordination meeting effectively and
to support the Strategic Alignment, and to improve efficiently. Therefore, decision making process can be
efficiency, the Company conducted the unification done quickly, expenses for official business travels can
of ICT organizations at the Holding level. With this be saved, and the users can save their time and energy
unification, planning, services standardization, strategy to coordinate.
executions, ICT projects monitoring, and ICT operations
are centralized. ICT Service Desk / Call Center
To give an excellent and measurable service to the
Good ICT governance is expected to support the users of ICT, ICT Service Desk/Call Center unit with
achievement of KPI and the improvement of maturity a centralized management is established. Every ICT
level as targeted. Therefore, ICT Performance and problems in Operating Company can be reported to
Management Bureau is established to specifically Service Desk unit to be registered in the system and
monitor the implementation. be given a ticket number. Moreover, the ticket will be
resolved by a technician, and the status report of the
In addition, the subsidiary, PT Sinergi Informatika completion will be reported back. Therefore, every
Semen Indonesia is functioned as a strategic partner problem and complain and the satisfaction of the users
whose main task is to support the operational continuity can be maintained.
and Information System development in all companies
of PT Semen Indonesia (Persero) Tbk. Business Process Automation
To identify and to monitor truck fleets that go in and
INFRASTRUCTURE out of the cement plants and buffer warehouse, the
DEVELOPMENT AS A Company has implemented RFID technology which
SUPPORT TO THE COMPANY automatically will input data to SAP system when they
INFORMATION SYSTEM go past a certain post. This will certainly expedite
IMPLEMENTATION product distribution.
Integrated Computer Network The performance of industrial machines in every cement

The Company has a group backbone network, allowing plant can also be monitored real time and visualized on
every data, voice, and video communication to be a dashboard to help detect potential problems as early
accessed by every end point of all subsidiaries. The as possible.
Company has also implemented server centralization
so that every business application is centralized and Global Positioning System technology is used not
can be accessed anywhere; in the offices, cement only to monitor the location of ships, but also to report
plants, packing plants, distributors, expenditures, the location of unidentified new retails. Therefore, the
vendors, or even banking offices. management of water transportations and retail can be
carried out properly.
Virtual Meeting
Virtual meeting is conducted to coordinate between In addition, mobile devices technology is also used
work units. It has also been applied between to facilitate information access and to do business
companies of Semen Indonesia Group. Almost every transactions.
meeting room is equipped with advanced Video
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261
BUSINESS IMPACTS FROM ICT ICT MANAGEMENT GUIDELINES

DEVELOPMENT The Company has ICT Management Guidelines that is
• Company Culture the cornerstone of every management process of ICT.
Single system ERP SAP has also promoted The guidelines is stated in the Decree of the Board of
equality in terminology, making intercompany Directors of PT Semen Indonesia (Persero) Tbk. No.
communication more seamless. Information 021/Kpts/Dir/2014, which was drafted by referring
transparency has improved, so the Company to ICT best practice and compliance to the external
subsidiaries can share strategies and experience to regulations relevant to the Constitution, Ministerial
face the rising competition and to take advantage Regulations, PSAK (Statement of Financial Accounting
of opportunities from the market growth. Standards), and other related law and regulations. The
aim of the guidelines is:
With the unification of ICT organizations in
holding level, the Company planning for ICT is • Ensuring that the Company has clear and effective
not conducted separately. Instead, a road map is ICT governance framework (governance frame-
professionally designed to meet the needs of all work setting and maintenance)
OpCo in the long term.
• Ensuring that the implementation, management,
• IT Shared services and monitoring of ICT investment and assets are
In accordance with the implementation of single and done optimally to support the achievements of
centralized business service in the holding, every Company’s goals; ensuring that data and informa-
business service required by OpCo is provided by tion, including ICT activities and transactions, are
ICT organization in the holding and will be charged well controlled and can meet the agreed service
according to the services received. level (ensuring benefit delivery)
By implementing the shared service, the • Ensuring optimum ICT values by maintaining the
group strategic policies and business process balance between benefits, risk level, and ICT re-
standardization can be maintained, service quality sources (ensuring risk optimization)
can be improved, and operational cost becomes
more efficient.


ICT Business Process ICT Business Reqirement

14.0 12.0 2.0 1.0 SERVICE
SERVICE REQUEST
REQUEST
Disaster Disaster Account Request Requesting
Permintaan of existing
Layanan yang telah
Recovery Recovery Management Fulfilment services
ada
17.0 10.0 4.0 3.0 SUPPORT REQUEST

3rd Party Service Level Problem Incident Requesting of existing
Services Mgmt Management Management Management services
SERVICEDESK
16.0 9.0 6.0 5.0 CHANGE REQUEST
Operation Service Catalog Realease Change Requesting of existing
Management Management Management Management services
13.0 14.0 7.0 DEVELOPMENT REQUEST

8.0 Requesting of existing
Data IT Finance Demand
SDLC services
Management Management Management
15.0 11,0 STRATEGIC REQUEST

ICT Operation Requesting of existing
Configuration ICT Strategic
Management ICT Development Planning services
Coordination Correlation between User,

ASSESSMENT ICT MATURITY
SVP ICT, Strategic Procurement, and ICT
LEVEL
Subsidiaries
To improve ICT quality, an external party is appointed
In order to meet the needs of ICT services, ICT Strategic
yearly to conduct ICT management maturity level
Department coordinates with ICT subsidiares, as well
assessment and to provide inputs related to the
as acting as ICT counterpart in handling ICT operational
Company ICT management improvement. In 2016,
activities and development of PT Semen Indonesia
the score of the Company maturity level is 4.14, which
(Persero) Tbk.
shows improvement from the previous year with the
score of 4.07.
SMIG IC 3rd
SLA/ Contract ICT Operation

ICT Performance
Services
Usage Requirement
Definition ICT Development
Coordination line between User, ICT Strategic The Company targets a higher score in maturity level
Department, and ICT subsidiaries for the next year.
Annual Report 2016

263
ENTERPRISE RESOURCE Core Process

PLANNING (ERP) SUPPORT Processes that are in line with the Company supply
TO THE COMPANY BUSINESS chain.
PROCESS Supporting Process
In accordance with the Company vision and mission, Processes conducted to provide resources for core
information system implementation in PT Semen processes.
Indonesia (Persero) Tbk. aims to meet the needs Monitoring and Improvement Process
and to give contributions in improving the welfare of Processes conducted to ensure target achievement
the Stakeholders. Therefore, the strategic step that and to improve performance.
is taken is by implementing SAP-based Enterprise
Resources Planning (ERP) Information System, which ICT Function Performance in 2016
handles every business process line with the following Processes conducted to ensure target achievement
categories: and to improve performance.
Target Achievement Activities
NO ACTIVITY TARGET ACHIEVEMENT

1 Maturity Level 4.07 4.14
2 Availability sistem ERP 99% 99.95%
3 SLA fulfillment of ICT Operational 85% 92.20%
4 Users’ satisfactory level on ICT services 78% 89%


THE COMPANY
INNOVATION MOVEMENT
Semen Indonesia Innovation Movement has

profoundly confirmed the Company existence as the
leading practice to support a sustainable growth by
achieving operational excellence toward the Company
improvement of competitive advantage in order
to face the increasingly fierce and dynamic global
competition.”
Annual Report 2016

265
THE COMPANY INNOVATION MOVEMENT
Strong innovative culture has continued to grow, as 2. Substituting fuel by using alternative fuel, utilizing
creative ideas and ingenuity of Semen Indonesia Group the overflowing raw material reserves (silica stone
(SMIG) employees have not ceased to flourish. They sticky) to reduce the utilization of high silica stone,
are fostered through SMIG innovation movement, the redesigning dimensions and cement encasement.
Semen Indonesia Innovation Management (MI-SI). An
innovative SOE, this culture is strongly entrenched INNOVATION MANAGEMENT
among employees and is founded upon three core Innovation management of Semen Indonesia (MI-SI) is
principles: managed with the spirit of quality, for the planet and for
• Problem Based; innovations that aim to solve the Indonesia. Various innovations have been tested and
Company problems. implemented to improve the competitive advantage
• Potential Based; innovations that aim to anticipate and to create leading practice in cement business by
potential problems or risks that can impact the developing Semen Indonesia Innovation Movement (GI-
Company negatively. SI). This is one of the pillars of Semen Indonesia Center
• Expectation Based; innovations that which aim to of the CHAMPS (SICC) to manage intangible assets.
seize opportunities and challenges in the Company Innovation management is developed comprehensively
business. based on the three perspectives:
INNOVATION FOR SUSTAINABLE • Human Capital; to stimulate the employees

COMPETITIVE ADVANTAGE in improving their “sense of crisis” in order to
In 2016, the Company faced challenges and fierce encourage the cultivation of creative ideas as a
competitions triggered by the addition of new players, part of the Company work and culture system by
including regional players, who prompted the capacity imparting, promoting, educating, holding innovation
to increase to 88.2 million ton; a disproportioned competition, and innovation appreciation to ensure
number when compared to the demand for cement the continuance of innovation movement of Semen
of only 66 million ton. This condition required the Indonesia employees.
Company to achieve operational excellence through
cost transformation, where the role of innovation • Organizational Capital; to develop the Innovation
becomes the most key instrument to improve the Management of Semen Indonesia by stipulating
competitive advantage of the Company as a response policies concerning innovation implementation,
to the challenges of the business environment dynamic innovation guidelines and procedures, innovation
changes. methodology standardization, and house of tools
innovation to translate their knowledge from tacit
Innovation answers the challenges by developing to explicit knowledge, and also holding innovation
creative ideas, which create strategic innovations, sharing as a medium to replicate innovation.
among others:
1. Efficiency in the usage of raw materials, energy,
maintenance costs, management optimization,
and transportation distribution.


40 113 104
37
16 16 16 45
23
PBB TPP-T-RM TPP-K-P MANAJ APA SR SS GKM PKM-TMM
TOTAL NUMBER OF BREAKTHROUGH INNOVATIONS TOTAL NUMBER OF INCREMENTAL INNOVATIONS

Total Number of Breakthrough Innovations registered Total Number of Incremental Innovations registered
in 2016 (has passed the verification process) is 124 in 2016 (has passed the verification process) is 124
innovations innovations
100%
84.68 % 87.70%
81.25 %
187
164
124
105 96
78
12 12
ST SP SG TLCC
TOTAL INNOVATION IMPLEMENTATIONS TOTAL INNOVATION
INNOVATION IMPLEMENTATIONS
The average ratio of implemented innovations is 85%
from the total number of innovations which have
passed the verification process
• Information and Communication Technology;

with the development of industrialization 4.0 (IT-
based industry), the Company has developed
a centralized Semen Indonesia Innovation
Management System application (IMS-SI) as
innovation repository/innovation database
that documents every innovation activity from
registration phase to innovation competition, as
well as paperless innovation sharing medium in all
parts of Semen Indonesia Group.
Annual Report 2016

267
Semen Indonesia Award on Innovation (SMI-AI) • Breakthrough Innovation; 5 categories:

Through Semen Indonesia Award on Innovation (SMI- o Products & Raw Materials
AI), the Company expects to create a new culture to o Mine Production Process Technology – Raw
innovate as the characterictic of Semen Indonesia mill
employee values, and to encourage all employees o Kiln Production Process Technology – Packer
of Semen Indonesia Group to be more aware in o Management
handling problems or opportunities in creating creative o Subsidiaries & Affiliations
and solutive ideas. This will add more values to the
Company’s performance, improve the competitive The above innovation clusters have been projected to
advantage, and strengthen the consolidation in the develop in the years to come by involving partners,
environment of Semen Indonesia as well as giving scholars, and the people to contribute in improving the
appreciation to the employees, business units, and Company’s competitive advantage.
corporation. This will give a positive impact to the
improvement of the Company’s performance in general. Semen Indonesia Award on Innovation 2015-2016
has produced a number of innovation works by the
SMI-AI is conducted consistently every year in all parts employees of Semen Indonesia Group which have
of the Company by developing nine categories, which been implemented and giving benefits to the Company,
are devided into 2 Innovation clusters as illustrated among others:
below:
• Incremental Innovation; 4 categories:
o 5R/5P Work groups
o Advice System
o Quality Control Group
o Quality Control Project/Medium Management
Team
SOLAR POWER INNOVATION TEAM

Designing Solar Measuring Tank to measure solar reception accurately and real time


SEMEN PADANG
1. SOLAR POWER, Developing the Solar Measurement Tanks to Measure Solar Acceptance Accurately and Real time
2. TAGEH 2/3, Modification of top hub bucket elevator R1J01 and R2J01 from the sprocket to wheel types
3. OPTIMUS HRC, Oner HRC for theory
4. TAHANAN, Optimizing the Alternative Usage of Raw Material by using Meger Methods
BETTER THAN RAW INNOVATION TEAM

Redesigning Roller Mill to be more vibration resistance
Annual Report 2016

269
SEMEN GRESIK
1. FLASH ON, Reducing the Disturbance Frequency and Downtime Duration on Bumer System 492VT5 in Tuban 2 Mill
2. BLACK GOLD, Developing the Water Stripper to Improve Coal Transport Performance during Rain Seasons
3. BETTER THAN RAW, Redeveloping the Roller to avoid switch-off because of Vibration
4. THE SULFUR TRAP, Reducing the Disturbance Frequency and Duration of Low Suction Pressure on Gas Analyzer
441AN2 in Tuban 1 Mill by 100% during 5 Months
SAHARA INNOVATION TEAM

Modifying silo cement bag filter of batching plant


SEMEN TONASA
1. PEJANTAN TANGGUH, Eliminating the Down Time Coal Mill Tonasa V because of Leaking at the Seal 545LQ02 by 100%
during 3 Months
2. SHARA, Modification of bag filter silo semen batching plant
3. DUAL BACKBONE, Dual Control System in GCT
4. JIN & JUN, Developing the Remote Control Reclaimer Coal System at CCR Tonasa V
PERFORMANCE IN 2016
The success of Semen Indonesia Innovation Movement (GISI) of the Company has confirmed that innovation has an
important role in realizing operational excellence through cost transformation, and that the Company has become
the leading practice. This is evident in the number of innovations implemented and potential benefits generated from
innovation.
100%
84.68% 87.70%
81.25 %
187
164 400.5
105
124 209.0 185.0
96
78
12 12 86.0
ST SP SG TLCC
SR SS GKM PKM-TMM
TOTAL INNOVATION IMPLEMENTATION TOTAL INNOVATION
INNOVATION IMPLEMENTATION INNOVATION POTENTIAL BENEFIT

The average ratio of implemented innovations is 85% Innovation Potential Benefit in 2016 has reached 880
from the total number of innovations which have billion as the result of implemented innovations
passed the verification process
Annual Report 2016

271
Innovation awards achieved by the Company nationally

CHALLENGES AND STRATEGIES
and internationally are:
IN 2017
1. National Innovation Convention
In line with the transformation of the Company in facing
• Tonasa Cement: 11 Gold and 1 Platinum
the increasingly tough and dynamic market condition,
• Padang Cement: 5 Silver, 6 Gold , and 2
creativity improvement is required to improve the
Platinum
Company innovation quality. The innovations need
• Gresik Cement: 5 Gold and 1 Diamond
to be more useful and successful to ensure flexibility
and adaptability of the Company to achieve leading
2. International Innovation Convention
practice in cement business. To face those challenges,
• Semen Tonasa: 2 Gold in International
the Company has set a number of strategies to improve
Convention on Quality Control Circle (ICQCC)
the culture of innovation of the Company and to
- Thailand
increase innovation benefits through the improvement
• Semen Padang: 2 Gold in ICQCC, 1 Two Star,
of innovation movement, optimization of innovation
1 Three Star and 1 Platinum di International
clinic, monitoring, and innovation replication in all
Exposition on Team Excellence (IETEX) -
Operating Companies.
Singapore
• Semen Gresik: 2 Gold in ICQCC, 1 Three
Semen Indonesia Innovation Movement (GI-SI) has
Star di IETEX and 1 Three Star di Asia Pacific
become one of the key instruments in improving the
Quality Conference (APQC) - New Zealand
competitive advantage through the achievement of
Operational Excellence, and in supporting the Company
3. Innovation Award in Environmental Sector
Cost Transformation program.
• Tonasa Cement; Green Proper Award
• Padang Cement; Green Proper Award
• Tonasa Cement; Green Proper Award


To ensure the accuracy of cement quality, Semen Indonesia Tuban plant is equipped with Robo-Lab Laboratory equipment.
Annual Report 2016

273
CORPORATE
GOVERNANCE
IMPLEMENTATION
REPORT
277 GCG Implementation Commitment and
Objectives
280 Governance Guidelines, Structure and
Mechanisms
285 GCG Implementation Assessment
287 GCG Implementation RoadMap
289 Awards on GCG Implementation
290 Board of Directors
301 General Meeting of Shareholders
310 Board of Commissioners
321 Audit Committee
325 Strategy, Risk Management and
Investment Committee
331 Nomination and Remuneration
Committee
334 Secretary of the Board of
Commissioners
336 Corporate Secretary
340 Internal Audit Unit
347 Company’s Accountant
357 Integrated GRC Implementation
Supervisory & Control
366 Code of Conduct and Corporate
Culture
369 Whistleblowing System
372 Corporate Governance Guidelines
Implementation
The implementation of
quality GCG has enabled
the Company to achieve
high accountability
from the shareholders’
perspective in promoting
its business development
plan as well as
performance deliverables.
CORPORATE
GOVERNANCE
REPORT Semen Indonesia Plant in Rembang, Central Java
Realizing the importance of accountability in every operational stage, the

Company is committed to enhance the quality of GCG by implementing all
provisions of laws, policies and working guidelines in accordance with the
up-to-date corporate management to ensure a long-term quality of business
growth and improvement on stakeholder benefits.”


CORPORATE GOVERNANCE REPORT
Commitment and Objectives of GCG

Implementation
In line with its vision and mission, the Company is committed to place GCG
as a corporate culture in the company’s management. As such, the Company
has enacted the following GCG mission:
• Actualize the corporate sustainability through management based on
principles of transparency, accountability, responsibility, independency as
well as equality and fairness.
• Actualize the empowerment of function and independency of each
Company organ namely the General Meeting of Shareholders, the Board
of Commissioners and the Board of Directors.
• Actualize the decisions making by the Company organs based on high
moral value and compliance with prevailing laws and regulations.
The Company is fully
The Company applies the Good Corporate Governance Principles to ensure committed to implement
optimum achievement of GCG implementation, including:
• Improvement on the Company’s performance through a better decision
Good Corporate
making process, operational efficiency as well as service enhancement to Governance in all
stakeholders. business processes to
• Corporate value enhancement through financial performance improvement
promote professional,
and minimize the risk of investment decision with conflict of interest.
• Increase investor trust.
transparent and efficient
• Achieve the stakeholders’ satisfaction due to the enhancement corporate management by
value and dividend. enhancing transparency,
• Direct and control the working relation between the Company’s Organs.
• Improvement on the Company’s management accountability to the
accountability,
Shareholders by also taking into account on stakeholders’ interest. responsibility and fairness.
• Encourage and support the business development, corporate resource
management and more effective risk management so as to enhance the
corporate value.
Through higher commitment and consistency on good corporate governance

implementation, the Company believes that it will be able to prevent
Corruption, Collusion and Nepotism as well as increase the oversight function
within the management of the Company.
Management commitment on GCG compliance consists of several policies

and related provisions amongst others:
Annual Report 2016

277
• All Elements of the Company’s are committed to Business Integrity

carry out all rules and policies as part of efforts in Good relationship between the Company and
applying best practises of corporate governance. Stakeholders as well as Shareholders’ long term
The commitment is shown by the Top Management value enhancement will only be achieved through the
as reflected by decisions and establishment of Company’s business integrity in every business activity.
corporate core policies based on relevant laws and
rules. Accounting Standard
• The Top Management pioneered the signing of The Company’s policy on accounting standard must
Statement Letter of Ethical Compliance, Statement reflect every financial transaction and assets change
Letter of Conflict of Interest and Statement Letter as well as ensure that all financial transactions are
of the Company’s Shares Ownership to comply accurately recorded in accordance with Indonesian
with all rules as stipulated under the Company Financial Accounting Standards.
Code of Conduct. The Statement Letter of Ethical
Compliance is signed by all the Company’s Conflict of Interest Transaction
Management level until the Executives Level. The Company has established the “Conflict of Interest”
• Determine the KPI related with GCG implementation. rule, affirming that internal and external parties of the
• Determine the roles and responsibilities of each Company having the opportunity to involve in such
function in which related with the Company’s transaction are prohibited to engage in the decision
planning, implementation and internal control making process relevant with the transaction. To
management. prevent any conflict of interest, all members of the
• The Management of Company’s internal control, Board of Director do not directly or indirectly possess
target achievement, drafting the procedure and the Company’s shares. The Board of Directors and the
disclosure control, documentation, reporting and Board of Commissioners signed the Statement Letter
providing the written statements on periodic ICOFR of Conflict of Interest and Statement Letter of the
effectiveness and self-assessment results Company’s Shares Ownership.
Related Parties and Affiliated Transactions

CORPORATE GOVERNANCE The Company entered into transaction with related
POLICY parties, i.e. the companies under Semen Indonesia
The Company continues to complete and refine the Group/ Corporate Group and other companies under
operational policy rules as part of GCG best practises the same management with and/or from Semen
implementation. In performing its business activities, Indonesia. The related party transactions are conducted
the Company applies the GCG principles in line with in a transparent and fair manner hence the interests of
its vision, mission and culture. The GCG Principles Shareholders and the Company are not detrimental.
are guideline of applied attitude and behaviour for all
elements of the Company and stakeholders by referring
to main policies among others:


Insider Trading
In addition to the Code of Conduct, the Company has issued regulation on
this matter by referring to the Law of Capital Market (Law No. 8 Year 1995,
Clarification of Article 95) on the Capital Market and BAPEPAM Regulation
prohibiting the Insider to sell or purchase the securities of listed companies,
unless the parties meet the exception as set under the BAPEPAM Regulation
No XI.C.1, on the “Insider Transaction That Are Not Prohibited”.
Procurement of Goods/ Services

The Company applies transparent and accountable procurement policy,
fulfilling the principle of effective and efficient, open and fair competition
and non-discriminative. The procurement process for goods and services
is enacted through sound competition in line with the prevailing laws and
regulations and preventing conflict of interest.
Product Quality Control

As part of the Company’s responsibility towards customers and its products,
the Company implements integrated quality management system on product The Company strives to
and service quality control. disclose key information
timely, accurately, clear
Remuneration
The remuneration system of the Board of Commissioners and Board of Directors and objective
is based on the principles of fairness and the Company‘s performance. The
Board of Commissioners’ remuneration is stipulated based on the Company’s
remuneration level that is determined by the GMS. The Board of Directors’
remuneration is stipulated by the GMS by taking into account the proposal of
the Board of Commissioners.
Disclosure of Information
The information disclosure is based on information classification policy that
is developed in accordance with the Articles of Association and prevailing
laws. The un-classified information can be published and accessed by public
through available means and facilities.
Significant information are disclosed timely, accurately, clearly, and objectively

in the Company’s Annual Reports and Financial Statements to the Shareholders
and relevant Government Agencies, in line with the Articles of Association and
prevailing laws.
Annual Report 2016

279
Performance Management and implementing corporate social responsibility to the

The Company set out the Key Performance Indicators communities, including the communities’ welfare in the
(KPI) as the performance measurement that shall be surrounding areas and environment, while the working
achieved by the management and serve as the target standards applied by the Company are prioritizing the
achievement benchmark in operations strategy. The ethics, honesty, transparency and accountability that
Company is currently implementing performance are applicable to all levels and elements of organization.
measurement on holding levels and are cascading
into the Company’s operations on functional levels. To Structures
ensure the conformity of KPI with the achievement of Pursuant to Law No. 40 Year 2007 concerning Limited
the vision and mission, the Company constantly enacts Liability Companies, the corporate organs are consisted
the vertical and horizontal alignment. of the General Meeting of Shareholders (GMS),
Board of Commissioners and Board of Directors. The
The overall performance management policy is Company’s management follows two boards system,
implemented with Balanced Scorecard that include namely the Board of Commissioners and Board of
measurements based on the perspectives of financial, Directors, with distinctive authority and responsibilities
customers, internal business processes, and learning in line with its functions as mandated in the Articles of
and growth. In its implementations, KPI achievement Association and prevailing laws.
progress and corporate performance optimization
programs are regularly discussed and reported to the Under the Board of Commissioners, the functional
Board of Commissioners. committees have been established to empower the
supervisory function, namely the Audit Committee,
the Nomination and Remuneration Committee as
GOVERNANCE GUIDELINES, well as Risk Management Strategy and Investment
STRUCTURE AND MECHANISM Committee (RMSIC). As also under the Board of
The corporate governance has already well Directors, the operating units has been formed with
implemented and based on ethical, transparent and the duties to control, monitor and responsible on GCG
Trustworthy work ethics. The Company has also in implementation, as well as to serve as working partners
place the comprehensive governance structures: of the committees under the Board of Commissioners,
taking into account the stakeholders’ interests, as illustrated in below chart.
managing business risks, maintaining good image,
Board of Board of Directors

Commissioners
Department Department Department

RMSIC Audit Nomination & Department Corporate Internal of Legal & of Quality
Governance Management of Corporate
Committee Committee of HR System
Remuneration
Committee Secretary Audit Risk & & OHS
Social
Development Responsibility
Compliance Environment


There are strong relations between the GCG units managers in the Company, namely the Corporate Secretary who
responsible for the Board Governance (communication and coordination function with the Board of Directors, the
Board of Commissioners and the Committees under the Board of Commissioners), Legal and GRC Department
(operational governance function, policy-making, and compliance) and Internal Audit as shown in below diagram:
PTSI GCG GUIDELINES

Refers to Company Law, SOE Law, Government Law, Articles of Association, GCG OJK, and
Common Practices (Asean GCG Standard, etc)
Whistleblowing Policy and Discipline

Corporate Secretary Legal & GRC Department
Committeess Charter, External
Enforcement Process Policy,

Internal Audit Charter, Board
Overight & Audit System
Auditing & Assessment
Structure, and System

Board Governance Operational Governance
GCG Policy, ICT Governance, ICOFR, ERM,
Board Manual, Integrity Pact, Whistleblowing System, Compliance, Human
Management Contract Capital, Procurement, and other policies
Corporate Ethics and SIG Culture Values Guidelines

Business Ethics, Code of Conduct, CHAMPS
Guidelines
In order to improve the implementation quality of GCG best practices principles, the Company has completed the
required governance infrastructure and continues to review and refine its soft-structure, such as the guidelines and
policies in accordance with the GCG principles to improve the corporate governance management. The soft-structure
of policy framework includes the Board Manual, GCG Implementation Guidelines, the Company’s Code of Conduct
and other Policies signed by the Board of Commissioners and the Board of Directors.
INFRASTRUCTURE SOFT STRUCTURE

√ GMS √ Corporate Culture
√ The Board of Commissioners √ GCG Guideline
√ The Board of Directors √ Company’s Code of Conduct
√ Board Manual
√ Commissioners’ supporting committees √ Charter

• Audit Committee √ Corporate Policy
• Strategy, Investment and Risk Committee
• Nomination and Remuneration Committee √ SMSI
• Manual (level 1)
• Procedure (level 2)
√ Corporate Secretary • Work Instruction
√ Risk Management • Record
√ Internal Audit √ Whistle Blower System

√ External l Audit √ Gratification Control Guidelines
Annual Report 2016

281
The Company ensures infrastructure and soft b. GCG Guidelines. It is structured as a guideline and
structure reliability in the implementation of GCG, to provide direction in the Company’s management
among others by developing the GCG guidelines and to the Shareholders, Board of Commissioners,
related guidelines such as Board Manual, the Board Board of Directors, Supporting Organs of the Board
of Commissioners Charter, Internal Audit Charter, of Commissioners and Stakeholders. The Company
Code of Conduct, Whistle Blower System Guideline, updated its GCG Guidelines in 2016 by referring to
Gratification Control Guidelines, Governance Guideline, the current laws and regulations, including the OJK
ICT, etc. These guidelines are updated and socialized Regulations.
to relevant stakeholders.
c. Whistleblowing System Guideline. The
The Company utilizes adequate information technology Whistleblowing System (“WBS”) is a system to
to support GCG implementation among others through accommodate, process and follow up as well as
the corporate website, eGRCA application (apps for provide report on submitted Information with regards
GCG, Risk Management & Compliance), GCG index to violations in the Company’s environment. The
self- assessment application, document management Company established the Whistleblowing System
system application, intranet, online legal application Guidelines (WBS Guidelines) through the Board of
(related with corporate internal rules such as the Board Directors Decree. The WBS Guideline is a policy to
of Directors Decree, announcement, etc), which are increase compliance on prevailing rules and ethical
utilized as communication media and socialization of standards as well as to prevent any violation.
GCG implementation.
In the implementation of WBS, the Company
Until 2016, the update has been done on the following established a Whistleblowing System Team, which
guidelines: consists of Corporate Secretary, Head of Legal &
GRC, Buerau Head of Legal, Bureu Head of GRC,
a. Board Manual. It is a working guideline between the and Bureau Head of Corporate Activities. During
Board of Commissioners and the Board of Directors. 2016 the Team received 3 reports and the entire
The Board Manual covers elaboration of duties and report has been acted upon.
authorities of the Board of Commissioners and the
Board of Directors as well as agreement on working d. Compliance Guideline. The Company is committed
mechanisms and employment relations between to manage corporate compliance management by
the two organs by referring to prevailing laws and implementing and complying with prevailing laws
regulations, Articles of Association and directives and regulations. Compliance Management is an
from the Shareholders as determined in the General entire system implemented by the Company to
Meeting of Shareholders (GMS). The Company identify, monitor and ensure that:
has updated the Board Manual by referring to the
latest laws and regulations. Inter alia The Indonesian
Corporate Governance Manual (ICGM), Financial
Authority Services (OJK), Year 2014 and OJK
Regulation.


• There are no internal policies that conflict with • Compliance to various adopted standards,
each other. including but not limited to health, safety and
environmental (HSE) and ISO aspects, as
• There are no internal policies that conflict with
well as ensuring that the compliance level of
higher laws and regulations as well as the
assessment criteria is applied in the Company
adopted best practices standard.
throughout its activities in the country (such
• All decisions and activities of the Company have as PROPER) and overseas.
observed and complied with prevailing internal • Compliance with prevailing laws, both within
and external regulations. the legal jurisdiction of the Republic of
• All information submitted to stakeholders for Indonesia and overseas.
decision-making, such as but not limited to • Development of a comprehensive list
the Financial Statements, has been properly of corporate obligations registry and
presented in accordance with the applicable documentation of various regulations, legal
rules, standards and regulations. obligations (contracts and engagements), and
standardization/ certification results.
Compliance Management
Corporate
Compliance
Obligation
Compliance with toward Prevailing
Registry &
ICOFR & adopted Standard (eg. Regulations
Documentation
CSA HSE, PROPER, ISO,
etc)
The elements of Compliance system as shown e. Gratification Control Guidelines. The Company
in the diagram are elements from the scope of is committed to support the Indonesian Corruption
Compliance Management in the Company that Eradication Commission (KPK) efforts in eradicating
includes but not limited to: corruption by signing the Commitment Letter of
• Compliance to standards and internal control Gratification Control with the KPK. As a manifestation
on financial reporting/ ICoFR (Internal Control of the above mentioned commitments, the Company
over Financial Reporting) with Control Self- prepares the Gratification Control Guidelines as
Assessment. a reference to the administration of acceptance,
granting, rejection and reporting of gratuities within
the company. These guidelines have been stipulated
in the Board of Directors’ Decree.
Annual Report 2016

283
4
Submission through TPG
(max. since the receipt of gratification) TPG
I II
2 Analysis results on
Reporting Recapitulation
& Acceptance
Verification on Document
completeness Revision
1 Submission through
Reporting Recapitulation & Acceptance
(max. one time since the receipt of reporting)
5
Direct Email Fax Letters

KPK
Whistleblower Complete the Forms/
Gratification Report 3
i ii iii
Verification on Data request & Analysis & Status

completeness Description Determination
6 The Submission of KPK

Decree on the Determination
7 Submission of Gratification according to point 5
(max. 7 working days upon the receipt of the Decree by the Whistleblower) of Gratification Ownership
Status to the Whistleblower
Gambar Alur Pelaporan Gratifikasi
Corporate Governance Mechanism
In the implementation of the Company’s GCG Directors. This is in accordance with the Company’s
structure, the Shareholders (through GMS forum) can Articles of Association and prevailings laws and
make important decisions related to investments in regulations.
the Company. The decisions made at the GMS are
based on the interests of the Company. The GMS or The management of the company and the
Shareholders can not intervene in the duties, functions implementation of GMS resolutions are conducted by
and authorities of the Board of Commissioners and the the Board of Directors. The Board of Commissioners
Board of Directors without prejudice to the power of then exercises the supervisory and advisory functions
the GMS to exercise their rights in accordance with the to ensure that the Company’s objectives and GMS
Article of Association and the Laws and Regulations. decisions are implemented and achieved. With such
With equal position, the shareholders will prudently duties and responsibilities in maintaining the Company
consider its decisions for the long-term interest of the sustainability, the Board of Commissioners is assisted
Company. Following the decision, the GMS will submit by Supporting Committees while the Board of Directors
all authorities of supervision and implementation of the is assisted by the operating units associated with the
decision to the Board of Commissioners and Board of governance mechanism.


GCG IMPLEMENTATION In 2015, for the first time, the Company conducted a
ASSESSMENT self-assessment GCG Index through Self Assessment

Internal Team (“self assessment 2015”). The
The Company conducts GCG practices assessment in
methodology is to evaluate the follow-up actions
order to measure the depth of GCG implementation as
in 46 Area of Improvement (“AOI”) based on the
well as obtaining feedbacks for future improvements.
recomendation of 2014 self-assessment results, i.e.
The implementation of GCG Implementation
eight AOIs have been completed and 36 were in the
Assessment in 2016 is conducted by using the following
follow-up process.
criterias:
6. Based on Secretary of State Minister for State
In 2016, the Company is assisted by PT Sinergi Daya
Owned Enterprises (SOE) Decree No. SK-16/S.
Prima to undertake the 2016 GCG implementation
MBU/2012 regarding the Indicator of Parameter
assessment by using the same methodology as in
Assessment and Evaluation on the Implementation
2014. The GCG Index score in 2016 was 92.23. The
of Good Corporate Governance in State-Owned
result of 2016 GCG assessment uses a different
Enterprises (SOE) issued on 6 June 2012 (“ SOE
assessment method with the previous self-assessment
Scorecard”).
in 2015, hence the 2016 result of 92.23 will be relevant
7. Corporate Governance Perception Index (“CGPI
to compare with the 2014 assessment result by an
Index”) by the Indonesian Institute Of Corporate
independent assessor of BPKP of East Java Province.
Governance (IICG).
8. Asean Good Corporate Governance Scorecard
(“Asean CG Scorecard”) by the Indonesian Institute YEAR GCG INDEX SCORE INDEPENDENT ASSESSOR
For Corporate Directorship (IICD). 2009 83.88 BPKP of East Java Province
2010 88.371 BPKP of East Java Province
GCG Assessment Based On SOE Scorecard 2011 88.91 BPKP of East Java Province
Since 2009, the Company has performed the GCG 2012 84.57 BPKP of East Java Province
practices assessment in order to measure the depth of 2014 91. 38 BPKP of East Java Province
GCG implementation as well as gaining feedbacks for 2015 93.31 Self Assessment Internal Team
future improvements. The assessment was carried out 2016 92.23 PT Sinergi Daya Prima
using the Company Corporate Governance Scorecard
issued by the State Minister of State Owned Enterprises GCG Assessment Based On CGPI Index
based on the Secretary of State Minister of State This is the first time of the Company’s participation in the
Owned Enterprises Decree No. SK-16/S.MBU/2012 2016 CGPI Index. The CGPI Index program uses three
regarding the Indicator of Parameter Assessment and (3) scopes of GCG implementation in a sustainability
Evaluation on the Implementation of Good Corporate perspective comprising compliance, conformance,
Governance in State-Owned Enterprises issued on 6 and performance. The weight of the CGPI assessment
June 2012. uses the ANP (Analytical Network Process) method to
Annual Report 2016

285
measure the level of importance and relationships among the aspects, scope,
and focus as well as assessment stages in the CGPI Index methodology. The
CGPI Index rating uses assessment norms based on the range of achieved
score with the categorization of the term “Trusted”. The weight of the CGPI
Index assessment and the score obtained by the Company are as follows:
NO ASSESSMENT STAGES WEIGHT RATING SCORE (PT SMI) PARTICIPANT AVERAGE SCORES
1. Self Assessment 30 25.74 25.41
2. Document Completion 26 21.37 20.94
3. Formulation of Paper 15 12.64 12.37
4. Observation 29 23.85 23.52
Total Scores 100 83.59 82.24
Based on the CGPI Index score of 83.59, the Company earned the title:
“Trusted.”
GCG Assessment Based on ASEAN GCG Scorecard

The Asean CG Scorecard is a qualitative tool for measuring compliance of public
companies in ASEAN towards the GCG guidelines according to international
standards-based exemplary practices, in particular to GCG principles issued
by the Organization for Economic Cooperation and Development (OECD). The
weight of the Asean CG Scorecard assessment and the score obtained by the
Company are as follows:
NO OECD PRINCIPLES (MAIN PRINCIPLES IN ASSESSMENT) WEIGHT RATING PT SMI SCORES AVERAGE SCORE OF 10 ISSUERS
1. Rights of Shareholders 10 4.4 2.4
2. Equal Treatment Between Shareholders 15 7.94 5.6
3. Role of Stakeholders 10 9.52 7.8
4. Disclosure and Transparency 25 21.95 19.3
5. Roles of the Board of Commissioners 40 29.73 27.9
TOTAL SCORES 100 77.57 67.99
The Company obtained the score of 77.57 and achived the “Fair” title.


Follow up on GCG Assessment Recommendation

Reffering to the results of the 2016 GCG assessment based on SOE Scorecard,
CGPI Index and Asean CG Scorecard, some recommendations are obtained
as follows:
RECOMMENDATION FOLLOW UPS

Updating the Board Manual and GCG Guidelines A draft of updated Board Manual and GCG Guidelines
being adjusted with the Company’s condistion as has been prepared in accordance with the conditions of
holding company. the Company as a holding company.
The Company has not conducted any socialization There has been socialization on gratification control to
regarding gratification control to its partners, Subsidiaries acting as partners.
especially vendors / suppliers.
To update the Gratification Control Guidelines being The Gratification Control Guidelines has been updated
adjusted with the provisions and rules of the Corruption as per August 2016 (Revised Document 1).
Eradication Commission (KPK).
Performance appraisal system of the Board of The draft of performance assessment system has
Commissioners and the Board of Directors is available; been formulated to be ratified to comple the Board of
however it has not been ratified and implemented Commissioners’s KPI.
consistently.
Assessment of supplier performance has not been The supplier assessment Will be done in stages.
entirety undertaken (only done to some suppliers for a
particular scope of work).
Complete the information submitted in the company's The Articles of Association and Code of Ethics in English
website including the Company's Articles of format have been uploaded in the Company’s website .
Association and Code of Conduct in English format.
The audited annual financial report to be released 60 Has been done for the 2016 annual report.
days after closing.
GCG IMPLEMENTATION ROADMAP

The purpose and initial objectives of the Company’s GCG implementation
roadmap are to enhance the management’s commitment in implementing
the GCG followed by improvement stages and consistency of its
implementation. The Company has established an outlook of the Company’s
GCG implementation stages with the objectives to become an ethical and
responsible company by building good corporate governance practices as a
culture in the management of the company, as follows:
Annual Report 2016

287
AN ETHICAL AND RESPONSIBLE COMPANY
INFRASTRUCTURE &
CONTINUOUS IMPROVEMENT TARGET
SOFT STRUCTURE
• Company’s Organ • Implementation • GCG as culture in managing

• The Board of Commissioners • Review the Company.
supporting Organ • Assessment
• GCG Guideline • Audit
• Code of Conduct
• Board Manual
• Charter
• IT Governance
• Reporting Guideline
• Whistle Blowing Policy
• System and Procedure
GCG Implementation Quality Improvement

survey in early 2014, reviewing the perception
Plan
in measurement and evaluation of the Board
As a follow up and high commitment on sustainability
of Directors and the Board of Commissioners
of GCG practices at all operational levels, the Company
Commitment on clean and free of gratification,
has planned key activities related to GCG practices.
fraud, and Corruption, Collusion and Nepotism.
The activities are as follows:
The final assessment result shown that the
Company obtained the category "Committed"
1. Completing all soft structures in accordance with
with the internal efforts/ application documents
prevailing regulations and best practices for GCG
score of 8.59 from 10.00 and from the perceptual/
implementation as well as reviewing the existing
questionnaires score of 8.28 from 10.00.
improvements in order to improve the quality of
GCG implementation. 4. Since 2009, the Company has conducted GCG
Index assessment with the objective to measure
2. Regular monitoring, reporting, and reviewing the
the depth of GCG practices implementation and
GCG implementation as well as facilitating the
obtaining feedback for future improvements.
independent assessment of GCG implementation
The assessment was implemented by using the
in the Company to obtain GCG implementation
Company Corporate Governance Scorecard
feedbacks.
parameters, from the State Minister of State
3. Participating in Clean SOEs program, in accordance Owned Enterprises. In addition, the Company also
with the State Minister of SOE Circular No: SE-05/ follows other GCG assessments, which include the
MBU/2013 on Roadmap towards Clean SOEs. Corporate Governance Perception Index (CGPI)
The Company with the assessment team of and the Asean Good Corporate Governance
BPKP Representative of East Java Province, Scorecard.
has conducted the first phase of Clean SOEs


5. To become GCG implementation and Risk GCG IMPLEMENTATION

Management benchmark for other companies AWARDS
(SOEs, private companies, etc.). Several The Company’s successful implementation of good
companies using the Company as benchmark corporate governance has consistently led to the
among others are PT Pusri Palembang, PT Kereta awards presented by independent institutions in
Api, PT Semen Baturaja, Indonesia Deposit various perspectives in 2016, including:
Insurance Corporation (LPS), Inspectorate Ministry • GCG Awards 2016 as the Trusted Company Based
of Finance, Perum Jasa Tirta, PT PAL, PT Inalum Investors and Analyst’s Assessment Survey from
Medan, and University of Indonesia. SWA & IICG magazine in 2016.
• GCG Awards 2016 as the Trusted Company Based
The Company will consistently realize various programs on CGPI Index from SWA & IICG magazine in 2016.
aimed at improving the quality of GCG implementation • “Best GCG of Issuers in Basic Industries and
as part of GCG quality improvement program, which is Chemical Sector “ from Economic Review.
carried out in stages with the following states.
Year <2006 Year 2006 - 2009 Year 2009 - 2012 Year 2012 - 2015
Good Corporate Citizen
Good Management of GCG
Good Corporate Governance
IMPLEMENTATION Becoming the good corporate

PREPARATION citizen through social
Controling the operations responsibility
through good internal
control, risk control and WBS
In compliance with all implementation
GCG laws and regulations
(mandatory & voluntary)
GOOD CORPORATE GOVERNANCE & VALUES CREATION
Annual Report 2016

289
BOARD OF DIRECTORS members of the Board of Directors outside the

Board of Directors Meetings’ approval shall be taken
The Board of Directors as the Company’s Organ
as personal liability of respective Director until the
performs its duties in managing the Company for
Board of Directors Meeting approves such action.
the corporate interests and in line with its goals and
objectives, and represents the Company both in and
Composition and Changes of Members of
out of court by complying the prevailing laws, Articles
the Board of Directors
of Association, and GMS Resolutions.
The composition of the Board of Directors is
determined based on the Company’s complexity
by taking into account the effectiveness, accuracy
The Board of Directors is responsible and speed in decision making as well as to act
independently by having no interests that may
on the management of the company and
interfere its ability to perform the independent and
ensuring its sustainability, as well as critical duties.
accountability of its management to the
GMS The process of nomination and appointment of
Directors from outside the SOEs shall be done
in order to consider the opinion from minority
Shareholders as a manifestation in protecting the
a. Board of Directors Scope of Works, Duties minority shareholders’s interest.
and Responsibilities  
Structure Composition Changes
The structure of each member of the Board of During 2016, the composition of the Board
Directors including the President Director is equal, of Directors has been changed one time. In
with the duty of the President Director to coordinate accordance with the AGMS result on 13 May
the activities of the Board of Directors. The Board 2016, in which Suparni and Amat Pria Darma were
of Directors may take decisions, including within the honourably discharge and Darmawan Junaidi and
Board of Directors Meeting, and to implement the Budi Siswoyo were appointed as Directors, as well
decisions in accordance with segregation of duties as reappointment of Ahyanizzaman. As such, the
and authorities although the collegial responsibilities composition of the Company’s Board of Directors
are still remain in force. Any action performed by is as follows:
Name Position Start Ended

Rizkan Chandra President Director 23 Jan 2015 GMS Year 2020
Ahyanizzaman Director of Legal and Human Resource 13 May 2016 GMS Year 2021
Gatot Kustyadji Director of Engineering and Project 27 Mar 2014 GMS Year 2019
Johan Samudra Director of Production and Research and Development 27 Mar 2014 GMS Year 2019
Aunur Rosyidi Director of Commercial and Supply Chain 16 Apr 2015 GMS Year 2020
Darmawan Junaidi Director of Finance 13 May 2016 GMS Year 2020
Budi Siswoyo Director of Business Development and Business 13 May 2016 GMS Year 2020
Startegy


Board of Directors Independency and Determination of the Company's

Concurrent Positions Management Policy by the Board of
Based on the Articles of Association and Board Directors
Manual of the Board of Commissioners and The policies adopted by the Board of Directors may
Directors, there are no familiy relations between be in the form of a policy adopted from the Board
fellow members of Directors with members of the of Directors Meeting, or it may also be individually
Board of Commissioners, up to the third degree both taken in the absence of such meeting.
vertically and horizontally or relationship by marriage
(inlaws). To achieve proper management by the
Board of Directors for the interests of the Company,
The policies adopted by the Board
the Board of Directors independency serves as an
important factor and shall be maintained. To this of Directors shall have the same
end, the Company stipulates the following: substance and continuously carried
• Apart from the Board of Directors, no other out so it becomes the Company’s daily
parties are allowed to perform or engage in the
management of the Company;
requirements, hence the respective
• The Board of Directors shall take objective Director shall propose to the Board
decision making, without conflict of interests and of Directors to make the undertaken
free from pressures of any parties;
policy as a binding regulation
• The Board of Directors shall not perform activities
that may disrupt the independency in managing
the Company.
The Board of Directors shall comply with the

The Board of Directors’ members shall not hold
following principles in establishing the policy:
concurrent position in the management and
• In the event where a policy being adopted by
supervision of similar companies, except the
the Board of Directors consists of substance
supervisory position in subsidiaries. For this purpose,
related to the Company's image, material risks or
the approval of the Board of Commissioners is
consequences, then the policy shall be approved
required for further report to the GMS.
by the Board of Directors Meeting;
Current members of the Board of Directors of PT • In the event where the abovementioned policy
Semen Indonesia (Persero) Tbk have fulfilled the is made by the Director of the Company in
requirements as Independent Director as stipulated accordance with its sector/ scope of duty, then
in the provision III.1.5. of the Board of Directors of the respective Director shall be responsible for
PT BEI Decree Number: Kep-00001/BEI/01-2014, the policy until such policy is approved by the
Board of Directors Meeting;
• In the event where the policies adopted by the

Board of Directors have the same substance
and continuously carried out and becomes
the Company’s daily requirements, then the
respective Director shall propose to the Board
of Directors to make the policy undertaken as a
binding regulation;
Annual Report 2016

291
• In adopting a policy or decision towards an issue, • Does not have direct or indirect conflict of
each Director shall consider several matters, interests on the management actions that may
including: cause losses;
• Good faith; • Has taken measures to prevent the onset or
• Rationale considerations and sufficient continuation of the losses;
information; • Shall not represents the Company if the conflict
• Adequate investigation on existing issues and of interests with the Company are arising;
possible mitigation including the positive and • In principle, the Board of Directors is working in
negative impacts to the Company; a collegial manner, the decision of each member
• Made based on considerations solely for the serves as the decision of the Board of Directors
benefit of the Company; as an organ.
• Coordination with other Directors especially
for a policy with direct or indirect impact to Each member of the Board of Directors may perform
the duties and authorities as well as policies and take decision in line with its segregation of duties
of other Directors. and authority, however the collegial responsibility is
applicable.
• In carrying out its daily obligations, the Board of
Directors should always consider the conformity The Company’s management functions by the Board
action with the Company’s plan and objectives; of Directors include 5 (five) main duties, which are
• The delegation of the authority of the Board of • Management
Directors to the Employee or other party shall be The Board of Directors formulates the corporate
stated in a written document and approved by vision, mission and values, short term and
the President Director; long term programs, controlling the resources
• The forms of the Company’s management effectively and efficiently, taking into account the
policies such as Decree and others are regulated minority shareholders’ interests fairly, and has a
in a separate Corporate document. clear charter.  
• Risk Management 
The Board of Directors Scope of Works and The Board of Directors develops and implements
Management Functions risk management covering all operations aspects
Pursuant to the articles of association, the Board
of the Company.  
of Directors performs the management functions to
lead and manage the Company in line with the goals • Internal Control
and objectives set forth, which are: The Board of Directors establishes internal
• To maintain and manage the Company’s assets; control unit to monitor and prevent the possibility
• To manage with good intentions and prudence of frauds or failures in the implementation of the
principles for the interests, and in line with the Company’s strategy.
Company’s goals and objectives; • Communication
 The Board of Directors assures the continuity
of internal communication or inter section and
external with the stakeholders.


• Social Responsibility Board of Directors Job Descriptions

The Board of Directors also formulates and The following are job description of each member of
ensures the implementation of corporate social the Board of Directors:
responsibility programs, in line with the prevailing • President Director has the duty to coordinate
laws.   other members of the Board of Directors, to
ensure the implementation of duties are in
Moreover, the Board of Directors also has the line with the vision, mission, business targets,
duty to assure that any information related to strategy, policies and work programs set forth.
the responsibility of the Directorates from each Specifically, the President Director is responsible
section shall constantly available for the Board of to harmonize all Company’s strategic initiatives,
Commissioners.   coordinating operations duty in internal audit,
human resources, communication, ensuring the
The Board of Directors shall develops the Annual compliance on laws and regulations, as well as
Reports that contains among others the Financial coordinating risk management and business
Statements, Corporate Performance report, Social development. Moreover, to also consistently
and Environmental Responsibility report, details of control and evaluate GCG principles application
issues occured during relevant fiscal year. The GMS and code of conduct in the Company.  
will be requested to approve the Annual Reports,
• Director of Finance is responsible to coordinate,
and ratify the Financial Statements.
control, and evaluate operations duty in finance,
budgeting, accounting fields, to ensure funding
Duties and authorities of the Board of Directors
for the Company’s development and information
among others are:
technology system.  
• The Board of Directors is fully responsible in the
implementation of duties for the interests of the • Director of Commercial is responsible on Sales,
Company. The Board of Directors main duties Distribution, Transportation and marketing
are: (a) leading and managing the Company in development,
line with the Company’s goals and objectives; • Director of Production is responsible
and (b) maintaining and managing the Company’s to coordinate, control and evaluate the
assets. implementation of operations duties on raw
• The Board of Directors is responsible to formulate materials production, slag production, cement
and determine the corporate vision, mission, and production as well as technical, work safety,
values, as well as Corporate Long Term Plan, and environmental and developing the production
Work and Budget Plan, following the discussion process efficiency program.
and approval of the Board of Commissioners and • Director of Operations & R&D is responsible
GMS. to coordinate, control and evaluate the
• Every member of the Board of Directors shall with implementation of operations duties on
good intentions and responsibility to perform procurement and inventory management, design,
duties and actions in line with the provisions in and research & development and maintain the
the Articles of Association, GMS resolutions, product quality assurance.
Long Term Plan, Work and Budget Plan, as
well as prevailing Laws and founded by GCG
principles.
Annual Report 2016

293
• Director of Human Resources is responsible b. Board Manual of Board of Directors

to coordinate, control and evaluate the In performing its roles and functions in the company’s
implementation of operations duties on Human management as well as managing relations with the
Resources, corporate assets management, and Board of Commissioners, the Board of Directors
compliance on prevailing regulations and laws, refers to the Board Manual. The Board Manual is
as well as implementation of risk management in specifically elaborated in Chapter III which includes:
the Company. • Board of Directors’ Functions  
• Board of Directors’ Requirements  
• Director of Business Development and Business
• Board of Directors’ Membership  
Strategy is responsible to coordinate, control
• Board of Directors’ Composition & Independency
and evaluate the operations duty implementation
• Board of Directors’ Position Ethics 
on business strategy and development, capex
• Board of Directors’ Duties and Responsibilities
investment strategy management, group energy
• Board of Directors’ Division of Duties 
development, and raw material conservation.
• Decision Making by the Board of Directors 
• Board of Directors’ Accountability 
Board of Directors Collective Responsibility
• Board of Directors’ Performance Evaluation
The policies adopted by the Board of Directors
• Board of Directors’ Orientation and Capability
are policies resulted from the Board’s meetings, or
Enhancement Program
a policy being individually adopted without such
meeting. The actions performed by members of
Requirements and Diversity of the Board of
the Board of Directors that are taken outside of the
Directors’ Composition
Board of Directors’ meetings, become the individual
The Board of Directors’ requirements in general and
responsibility until such actions are being approved
specific are elaborated in the Board Manual which
by the Board of Directors’ meeting.
includes:
• He/she never serves as the Director or Member
Every member of the Board of Directors is fully
of the Board of Commissioners that were found
responsible, individualy and collectively on the
at fault for causing the company to be declared
Company’s losses, in which are derived from the
bankrupt within 5 years prior to the appointment;
member’s mishandlings or negligence in performing
• He/she never been convicted of a criminal act
duties in line with the regulations and laws.
in the financial sector within 5 years prior to the
appointment as a Director candidate;
• Shall not hold concurrent positions as the Board
Every member of the Board of Directors of Directors and Board of Commissioners in
is fully responsible, individualy similar companies, except the position of the
and collectively on the Company’s Board of Commissioners in Subsidiaries;
losses, in which are derived from the • Shall not hold other concurrent positions as
member’s mishandlings or negligence executives in the structural and functional
in performing duties in line with the positions of the central government agencies/
regulations and laws institutions and/or regional and/or military;


• Shall not hold other concurrent positions that On changes of leadership, the Company will propose
may cause conflict of interests directly or internal candidates through the selection carried
indirectly with the Company and or against the out by the Adhoc Committee and facilitate by the
prevailing regulations and laws. Board of Commissioners. The internal candidates
• Adequate and relevant knowledge with its selection will then be proposed to the SOEs Ministry
positions;   for fit and proper test.
• Experience and expertise in cement industry;  
• Capability in performing strategic supervision c. Board of Directors Remuneration
for the company’s growth;   Stipulation Basic and Procedures
• Understanding the management issues related The Board of Directors’ remuneration amount is set
to one of the management functions. out in the annual GMS (see also the “Commissioners’
Remuneration Stipulation”). The analysis of
To determine the Board of Directors’ composition, remuneration amount is performed by independent
the Company has the policy to consider the consultant with strong experience and database in
background experience and competence of handling similar services. The Board of Directors’
each Directors’ candidate. The Company always remuneration amount is established by taking into
take into account the competency backgrounds account the prevailing rules.
in mechanical engineering, mining, general
management and finance. The Company sets out the Board of Directors’
remuneration by considering the profit achievement
The policy on requirements of the Board of target, ability in maintaining business sustainability
Directors composition refers to the Regulation and development.
of SOEs Minister No. Per-16/MBU/2012 on the
Second Amendment of SOEs’ Regulation No. Per- Indicator of Remuneration
01/MBU/2012 concerning the Requirements and The Company, through the Board of Commissioners,
Procedures of the Appointment and Termination of considers five main factors in establishing the Board
Members of the Board of Commissioners and Board of Directors’ remuneration proposal, which are:
of Directors in State-Owned Enterprises. • Service allowances to cover the required costs
in  performing business.  
Board of Directors Succession Policy • Respect the competence and experience,
To prepare future leaders, the Company held required by the Company.  
Leadership Development Program and Talent • Commitment in dedicating a full time of energy
Management acceleration program. The potential and aspiration in performing the corporate duties.
candidates included in the Talent Pool will go • Ability to mitigate risks, and provision of benefit
through a series of training programs with the main on measures that may bring risk to the concerned
objectives to improve management capability, personal.  
business development strategy, strategic plan • Respect the target achievement in line with the
evaluation and others. established key performance indicators.
Annual Report 2016

295
Brief procedures on establishment of the Board of 4. The Board of Commissioners discusses the
Directors’ remuneration in 2016, are as follows: proposal from the Nomination & Remuneration
1. The Nomination and Remuneration Committee Committee, and stipulates the proposal of the
request the remuneration analysis of 2016 for 2016 remuneartion for the Board of Directors to
members of the Board of Directors from the be submitted to the majority shareholders.
independent consultant.
5. The GMS delegates the authority and proxy
2. The Independent Consultant formulates basic to the Board of Commissioners following the
remuneration criteria by taking into account approval of the majority shareholders to set
the Regulation of SOEs Minister No. Per-04/ out the tantiem amounts for fiscal year 2016,
MBU/2014 dated 10 March 2014, conducts and set the salary/ honorarium, allowances and
remuneration survey on the of peers industry, facilities for the Board of Directors and Board of
and develops comprehensive remuneration Commissioners year 2016.
recommendation with the basic considerations
and alternatives to the Nomination & 6. Letter of SOEs Minister No. S-50/
Remuneration Committee. D3.MBU/06/2016 dated 28 June 2016
concerning the Stipulation of salary/ honorarium,
3. The Nomination & Remuneration Committee benefits and facilities for 2016 as well as tantiem
develops the 2016 remuneration recommendation of financial year 2015 performance and Salary or
for members of the Board of Directors by taking Honorarium for the year 2016 for members of the
into account the analysis results of consultant to Board of Directors and Board of Commissioners
the Board of Commissioners, complete with its of PT Semen Indonesia (Persero) Tbk.
considerations’ references.
Summary of remuneration procedure for the Board of Directors is shown in the following charts:
• Requesting input from an Independent Consultant*) in stipulating the

NRC remuneration basic determination
• Providing recommendation on the Remuneration basic and amount to the

NRC Board of Commissioners
• Discussion on NRC proposal and submit the recommendation on

BOC remuneration amount to the GMS
• Stipulate the amount of the Board of Directors’ salary year 2015 and
tantiem of the Board of Directors year 2014
GMS
• Salary and Tantiem of the Board of Directors


Remarks : Based on the Minister Regulation, the GMS

*) Independent Consultant formulates the basic stipulates the Board of Directors remuneration. The
consideration of remuneration by taking into remuneration components are consisted of short-
account the: term compensation, Post-position compensation
• Minister of SOE Regulation No. Per-04/ and /or long term includes :
MBU/2014 dated 10 March 2014 Article 5, • The salary portion of Director is set out at 90%
• the remuneration survey result, from the President Director.
• time availability,
• Board of Directors’ Allowances
• capability to mitigate the risk,
• KPI target achievement ◊ Religious Idul Firtri Allowances of 1 (one)
month salary.
◊ Communication allowances at costs.

The remuneration of the Board of
Commissioners and the Board of ◊ Post-position compensation in the form
Directors is based on five main of post-position insurance, pension fund
factors and maintained check and insurance, or other forms effective as of
balances mechanism the appointment period up to the tenure
completion. The premium borned by the
Company are maximum 25% (twenty five
percent) from salary in one year that was
Remuneration Amount and Components budgeted in the annual Work and Budget
The Board of Directors receives fixed and non- Plan.
fixed remunerations that consists of salary,
allowances, tantiem and facilities, as well as other ◊ Provision on 1 (one) official house for each
allowances, in which the total are recommended Director, including amenities, maintenance
by the Nomination & Remuneration Committee and and security.
Board of Commissioners, and stipulated by the • Directors’ Facilities

GMS. The tantiem amount was provided based on
◊ Provision of 1 (one) official vehicle including
the Company’s performance and achievement of
maintenance and operations costs for each
Directors’ KPI. The details of remuneration received
Director, in which the types and amounts
by all members of the Board of Directors are
are stipulated by taking into account the
reported in the GMS. (See also the description of the
appropriateness aspects and the Company’s
Board of Commissioners honorarium/remuneration
financial capability.
stipulation).
◊ Provision of healthcare facilities to each
The Board of Directors’ remuneration stipulation Director in accordance with the applicable
refers to the Decree of the Board of Commissioners regulations in the Company.
036/SI/DK/RHS/06.2016 for the Board of Directors
and 005/SI/Kep.DK/04.2016 for the Board of
Commissioners dated 28 June 2016, which
was established based on the Minister of SOE
Regulation No: PER-04/MBU/2014 concerning the
Guidelines of Remuneration Stipulation of the Board
of Directors, Commissioners, and Supervisory
Board of State- Owned Enterprises.
Annual Report 2016

297
◊ Provision of legal assistance facilities in the d. The Board of Directors Meeting

event of actions/conducts for and on behalf of To coordinate all activities, monitor and anticipate
the Director’s position that related to the goals issues related to the operations of the Company, the
and objectives as well as business activities Board of Directors holds regular meetings.
of the Company.
The Board of Directors Meeting Policy
◊ Provision of Club Membership/Corporate
• The meetings can be held at anytime as
Member at maximum 2 (two) memberships
necessary on the request of the President
by taking into account the capability of
Director or propose by one- third of total Board
the Company. The facility is in the form of
of Directors’ members and on written request
enrollment and annual fees.
by the Board of Commissioners. The Board
• Tantiem/Performance Incentives of Directors’ meetings are legitimates and has
The stipulation of tantiem/performance the rights to ratify any resolutions and binding
incentives for the Directors as set out in the based upon the attendance by more than three
Minister Regulations, among others are: quarter of the Board of Directors’ members or its
legitimate proxies.
◊ Tantiem is provided in the event where SOE
• In every Board’s meetings, each Director is
generates profits in the relevant fiscal year.
entitled to one vote and provide one vote as the
◊ Tantiem for the Directors is provided as the proxy on other Director. The Board of Directors’
annual working compensation based on resolutions shall be taken in consensus for
the Company’s performance in which the agreement, in the event of balanced votes, the
amounts are approved by the General Meeting President Director shall determine the decisions.
of Shareholders. The Board of Directors shall perform legitimate
decisions and binding without the Board’s
The details of remuneration received by the
meeting, in which all members of the Board
Board of Directors in 2016 are as follows :
of Directors approved and signed the written
documents.
(In Rp)
Name Honorarium THR Tantiem Tax Allowance Total
Rizkan Chandra 1,676,387,094 145,000,000 5,569,040,948 701,874,815 8,092,302,857
Ahyanizzaman 1,566,000,001 130,500,000 5,569,040,948 777,949,116 8,043,490,065
Gatot Kustyadji 1,566,000,001 130,500,000 5,569,040,948 610,163,316 7,875,704,265
Johan Samudra 1,566,000,000 130,500,000 5,569,040,948 778,106,316 8,043,647,264
Aunur Rosyidi 1,566,000,001 130,500,000 3,712,693,966 1,330,893,210 6,740,087,177
Darmawan Junaidi 993,483,842 130,500,000 - 535,429,700 1,659,413,542
Drs Budi Siswoyo 993,483,842 130,500,000 - 1,379,843,100 2,503,826,942
Suparni 636,129,065 - 6,187,823,276 159,918,200 6,983,870,541
Amat Pria Darma A 572,516,159 - 5,569,040,948 134,804,900 6,276,362,007


• Standard timeline for the Board of Directors • Standard timeline for decision making is as
decision is from the complete submission of mentioned in The Board of Directors Meeting
proposed action and with supporting documents Policy.
and other information or at latest seven (7) working
days for circular decision and communicated Frequency, Attendance Level and Agenda of The
to the organizational level under the Board of Board of Directors Meeting
Directors related to the decision, Not later than 3 During 2016, the Company has convened 84
(three) work since legalized/ signed. meetings of the Board of Directors,in which consists
• The Minutes of the Board of Directors Meeting of 66 Internal Meetings, 12 Group Corporate
shall be made by a person present at the Meeting Meetings (Cement), and 6 Group Corporate
designated by the Meeting Chairman and shall be Meetings (Non-Cement). The participants in the
signed by the Meeting Chairman and a Director Board of Directors Meeting are adjusted based on
who present and appointed for such action, if the Agenda discussion.
minutes is made by the Notary, then such signing
is not required. The Agenda discussion of Internal Meeting includes
the internal coordination and consolidation,
Decision Making Mechanism by the Board performance, and strategic issues related to the
of Directors Company. As for the agenda of Corporate Meetings
• The formal decision making by the Board of include; (I) strategic initiatives of monthly pending
Directors consist of (1) Decision making through matters, (ii) evaluation and performance analysis,
The Board of Directors Meeting; (2) Decision capex, and (iii) others (project capex and progress).
Making outside the Meeting ( through circular),
etc.
Attendance of the Board of Directors in the Meeting

Internal Corporate Corporate Non Cement
Name %
M A M A M A
Rizkan Chandra 66 64 12 11 6 6 96%
Ahyanizzaman 66 54 12 10 6 6 92%
Gatot Kustyadji 66 58 12 12 6 6 90%
Johan Samudra 66 61 12 11 6 6 92%
Aunur Rosyidi 66 59 12 12 6 6 91%
Darmawan Junaidi * 44 42 7 7 6 6 96%
Budi Siswoyo * 44 39 7 7 6 6 91%
Suparni ** 22 21 5 6 - - 96%
Amat Pria Darma ** 22 29 5 5 - - 92%
* Appointed at the AGMS on 14 Mary 2016 M : Meeting
** Terminated at the AGMS on 14 May 2016 A : Attendance
Annual Report 2016

299
The Board of Directors Joint Meeting with e. Orientation Program And Capability
the Board of Commissioners Enhancements
The Board of Commissioners and the Board of Orientation Program
Directors are the corporate organs with equal With diverse background of education, experience
standing before the law. The good working or representatives of interest, the implementation of
relationship between the Board of Commissioners Orientation Program is important to be conducted.
and the Board of Directors is one of the most
important things for each of these organs to work Orientation Program for Capability
according to their respective functions effectively Enhancement
and efficiently. Capability Enhancement Program is one of
4. Meetings of the Board of Directors inviting important programs for the Board of Directors to
the Board of Commissioners and / or other keep updated on the latest developments of the
parties shall be convened at least twice a year Company’s business activities and other knowledge
(semiannually and yearly) and based on GCG related to the implementation of the duties of the
principles of transparency, accountability, Board of Commissioners.
responsibility, independence and fairness.
5. The Board of Directors may invite the Board List of Directors Competency
of Commissioners or a member of the Board Enhancement Program Implementation
of Commissioners to explain, provide input or In order to improve the quality of supervision and
conduct a discussion as reference for the Board guidance regarding the management and future
of Directors to perform its functions. development of the Company, the Board of Directors
has conducted various competency improvement
programs, both within and outside the Company.
The Directors’ competency improvement program
implemented by the Company in 2016 is as follows:
Board of Directors’ Training

Name Date Programs
28/05/2016 FGD SOE Ministry

Rizkan Chandra 12/09/2016 Futures Thinking & Strategy Development
05/12/2016 National Insight of Lemhannas RI
20/09/2016 Pension Fund Risk Management

Ahyanizzaman 27/10/2016 Human Capital Summit 2016
Gatot Kustyadji 05/12/2016 National Insight of Lemhannas RI
29/09/2016 Directorate of Prod. & R&D SMI Group Workshop
Johan Samudra
Aunur Rosyidi 05/12/2016 National Insight of Lemhannas RI
13/09/2016 Finance Strategy Workshop
Darmawan Junaidi
28/05/2016 FGD SOE Ministry
Budi Siswoyo 25/10/2016 18th Asia Cement Trade


Performance Evaluation of the Board of Independent Commissioner to ascertain all decision

Directors making mechanism and meeting implementation
1. The performance evaluation of the Board of are able to accommodate the minority shareholders’
Directors shall be conducted by the Board of voting.
Commissioners;
2. Performance appraisal of the Board of Directors Procedures of General Meeting of Shareholders
based on general criteria as follows: Implementation
a. The performance of the Board of Directors The procedure of the GMS is in accordance with Law
collectively to the achievement of the company No.40 of 2007 concerning Limited Liability Company
in accordance with the criteria established by and BAPEPAM Regulation no. IX.I.1 concerning the
the Board of Commissioners; plan and implementation of the General Meeting of
b. Achievement of the performance of the Shareholders.
individual Director refers to KPI approved by
the Board of Commissioners; The General Meeting of Shareholders (GMS), divided
c. Implementation of GCG principles both into: Annual General Meeting of Shareholders
individually and collegially. ("AGMS"), is a routine agenda every year and held at
least once; And the Extraordinary General Meeting
f. Assessment of the Directors Committee of Shareholders ("EGM"), whose execution time
The Company does not have a committee to support may occur beyond the AGMS.
the Board of sDirectors' duties.
1. During 2015, the Company has held two (2)
g. General Meeting of Shareholders (GMS) GMS namely one (1) Extraordinary GMS which
General Meeting of Shareholders (GMS) is the was convened on 23 January 2015 and one (1)
highest organ in the Company. GMS serves a forum Annual GMS which was held on 16 April 2015.
for the shareholders in taking significant decision a. The EGMS was held in Raflesia Grand
in which authority are not delegated to the Board Ballroom Balai Kartini Jl.Gatot Subroto, South
of Directors and Board of Commissioners based Jakarta, with only one Agenda item on the
on the provisions of Articles of Association and Change of Management of the Company.
prevailing regulations. The Implementation of EGMS was in
accordance with the rules, which is preceded
The authority includes mandate of accountability by announcement of notice, invitations and
of the Board of Commissioners and Board of announcement of meeting results.
Directors related to the Company’s management, ii. The Notice was announced on 24
amendment of articles of association, appointment December 2014 at newspaper namely
and dismissal of Directors and Members of the Bisnis Indonesia, Jawa Pos, Jakarta Post,
Board of Commissioners, decisions on division of Company’s website.
duties and authority of management between the iii. The Invitation was announced on 8
Directors and others. January 2015 at newspaper namely
Bisnis Indonesia, Jawa Pos, Jakarta Post,
In GMS, all shareholders, both majority and minority Company’s website.
has equal rights to vote in the decision making on iv. The GMS meeting result was announced
every investment plan as well as other corporate on 27 January 2015 at newspaper namely
plans. In order to ensure the protection of minority Bisnis Indonesia, Jawa Pos, Jakarta Post,
shareholders’ interests, the Company assigned the Company’s website.
Annual Report 2016

301
b. The AGMS was held in Raflesia Grand ii. The Invitation was announced on 25
Ballroom Balai Kartini Jl.Gatot Subroto, South March 2015 at newspaper namely Bisnis
Jakarta, with seven Agenda items. Indonesia, Jawa Pos, Jakarta Post,
The AGMS Implementation was in accordance Company’s website.
with the rules, which is preceded by notice, iii. The AGMS meeting result was announced
invitations and announcement of meeting on 20 April 2015 at newspaper namely
results. Bisnis Indonesia, Jawa Pos, Jakarta Post,
i. The Notice was announced on 10 Company’s website.
March2015 at newspaper namely Bisnis
Indonesia, Jawa Pos, Jakarta Post, The Decision of EGMS in 2015 along with its follow
Company’s website. up items are as follows :
No Resolution of EGMS 23 January 2015 Follow Up

1 Conforming the honorable discharge of Mr. Dwi Soetjipto as President Director of The decision takes effect
the Company effective as of November 28, 2014 with gratitude for the contribution immediately
of energy and thoughts given during his tenure as President Director.
2 To divert the position of Mr. Suparni into President Director with tenure of The decision takes effect
continuing the remaining term of office immediately
3 To appoint Mr. Rizkan Chandra as member of the Board of Directors of the The decision takes effect
Company from the closing of this Meeting, until the closing of GMS year 2020 immediately
without prejudice to the GMS right to dismiss the person at any time.
4 By the dismissal and appointment of members of the Board of Directors, the The decision takes effect
membership of the Board of Directors shall be as follows: immediately
Name Position Ended
Sdr. Suparni President Director GMS Year 2017
Sdr. Ahyanizzaman Director GMS Year 2016
Sdr. Amat Pria Darma Director GMS Year 2015
Sdr. Gatot Kustyadji Director GMS Year 2017
Sdr. Johan Samudra Director GMS Year 2019
Sdr. Rizkan Chandra Director GMS Year 2019
Sdr. Aunur Rosyidi Director GMS Year 2020
5 To honorably discharged Mr. Farid Prawiranegara (Late) as Independent The decision takes effect
Commissioner, due to his death as of 21 August 2014 with gratitude for his immediately
dedication during his tenure as the Board of Commissioners of the Company.
6 To appoint Mr. Sony Subrata as member of the Board of Commissioners of the The decision takes effect
Company from the closing of this Meeting, untik the closing of GMS year 2020 immediately
without prejudice to the GMS right to dismiss the person at any time


No Resolution of EGMS 23 January 2015 Follow Up

7 By the dismissal and appointment of members of the Board of Commissioners, The decision takes effect
the membership of the Board of Commissioners shall be as follows: immediately
Name Position Ended

Sdr. Mahendra President Commissioner GMS Year 2017
Sdr. Hadi Waluyo Independent Commissioner GMS Year 2016
Sdr. Muhammad Zaidun Independent Commissioner GMS Year 2019
Sdr. Achmad Jazidie Commissioner GMS Year 2017
Sdr. Marwanto Harjowirjono Commissioner GMS Year 2019
Sdr. Wahyu Hidayat Commissioner GMS Year 2019
Sdr. Sony Subrata Commissioner GMS Year 2020
8 Affirming the prohibition of Concurrent Position of the Board of Commissioners The decision takes effect
and the Board of Directors in SOE. immediately
9 Determine the amount of end of tenure allowance for member of the Board of The Board of
Commissioners and the Board of Directorswhich which tenure has been expired Commissioners issued the
by the closing of this meeting as regulated under the Minister of SOE Regulation Board of Commissioners
No. PER-04/MBU/2014 concerning Guidelines for Income Stipulation of the Board Decree no. 004/SI/Kep.
of Directors, Board of Commissioners and Supervisory Board of State-Owned DK/04.2014 year 2104 on
Enterprises. Remuneration of the Board
of Commissioners of PT
Semen Indonesia (Persero)
Tbk and the Board of
Commissioners Decree No.
005/SI/Kep.DK/04.2014 Year
2104 on Remuneration of
the Board of Directors of PT
Semen Indonesia (Persero)
Tbk.
10 Granting authority with substitution right to the Board of Directors to restate the Deed No 37 Dated 30
decision of EGMS in a notarial deed and to further notify the changes of members January 2015 has been
of the Board of Commissioners and the Board of Directors to the Department of made before Leolin
Legal and Human Rights of the Republic of Indonesia. Jayayanti, SH. Notary.
Meanwhile the 2015 AGMS decision 2015 along with its follow up items are as follows :
Agenda AGMS Decision dated 16 April 2015 Follow up
1 • Approved the Annual Report 2014 and ratified the Supervisory Report
conducted by the Board of Commissioners for the year of 2014.
• Approved the Company’s Financial Statement ended 31 December 2014
which had been audited by the Public Accountant Office Osman Bing The decision takes effect
Satrio & Eny, member firm of Deloitte Touche Tohmatsu Limited as well as immediately
gave full release and discharge (Volledig acquit et de charge) to the Board
of Directors and the Board of Commissioners for their management and
supervision during the financial year ended on 31 December 2014.
Annual Report 2016

303

2 • Ratified the Financial Statetement of the Partnership and Community
Development Program (Program Kemitraan dan Bina Lingkungan) for
the financial year ended on 31 December 2013 and gave full release and
discharge (acquit et de charge) to the Board of Directors and the Board of
Commissioners for their management and supervision of Partnership and
Community Development Program during the financial year ended on 31
December 2013.
• Approved the Financial Statement of the Partnership and Community
Development Program (Program Kemitraan dan Bina Lingkungan) PT
The decision takes effect
Semen Indonesia (Persero) Tbk , ended on 31 December 2014 which
immediately
had compiled based on PKBL Financial Statement audited by the Public
Accountant Office Osman Bing Satrio & Eny, member firm of Deloitte
Touche Tohmatsu Limited and gave full release and discharge (acquit et de
charge) to the Board of Directors and the Board of Commissioners for their
management and supervision of Partnership and Community Development
Program during the financial year 2014.
• Further, the Annual Report of Partnership and Community Development
Program of PT Semen Padang and PT Semen Tonasa were ratified by
shareholders.
3 • Approved the distribution of the Net Profit of the Company for the financial • Shares distribution was
year 2014 amounted Rp5,565,857,595,000.0 as follows: conducted on 20 May
o A sum of 40% or amounting to Rp2,226,343,038,000.0 or Rp375,34 2015
per share designated as the 2014 Financial Year dividend. A sum of • The decision on reserve
51.01% is proportion of Government of Republic of Indonesia as a fund takes effect
majority shareholder or amounting to Rp1.135.559.112.204,53 and immediately
48.99% as public porsion or amounting Rp1,090,783,925,795.47.
o The rest 60% or amounting Rp3,399,514,557,000.0 is allocated as the

Company’s reserved fund.
4 Grant power and authority to the Company’s Board of Commissioners Letter of SOE Minister No.
with prior approval from Majority Shareholders to determine tantiem for the SR-154/MBU/D2/2014
2014 Financial Year to all members of the Board of Directors and Board of dated 7 April 2014 and
Commissioners who served during financial year 2014, as well as the salary/ SR-175/MBU/D2/2014
honorarium, allowances and also other facilities for the members of the Board dated 17 April 2014 on the
of Directors and the Board of Commissioners for the year of 2015. Determination of Tantiem
in 2013 and Payroll or
Honorarium Year 2014 for
Board of Directors and
Commissioners of PT Semen



5 • Re-appointed Public Accountant Office Osman Bing Satrio & Eny, member • The decision on
firm of Deloitte Touche Tohmatsu Limited to perform the general audit on appointment of Public
the Company’s Consolidated Financial Statements for the financial year of Accountant takes effect
2015 and other period in the year of 2015. immediately
• Re-appointed Public Accountant Office Osman Bing Satrio & Eny, member • Engangement Letter No.
firm of Deloitte Touche Tohmatsu Limited to perform the general audit on No162/05/14/GA/EIW
the Financial Statement of Partnership and Community Development dated 13 May 2014 On
Program for the financial year of 2015. General Audit .
• Grant power and authority to the Board of Commissioners to: • Engangement Letter No
o Appoint a replacement Public Accountant Office and to determine the 163/05/14/GA/EIW dated
conditions and requirements of its appointment in the case that the 13 May 2014 on Audit
appointed Public Accountant Office for any reasons whatsoever fails PKBL
to complete the audit, including legal reasons and the capital market
regulations or fail to agree on the cost of audit services’ fee.
o Grant the authority to the Board of Commissioners to determine

the honorarium and other terms applicable to the appointed Public
Accountant Office.
6 • Approved the changes of Article 12 of the Company’s Articles of Association, The decision takes effect
and adjustment to the Indonesia Financial Services Authority (OJK) immediately
Regulations No. 32/POJK.04/2014 regarding Plan and Implementation
of General Meeting of Shareholders for Public Company and Financial
Service Authority Regulation No. 33/POJK.04/2014 regarding the Board
of Director and Board of Commissioner of an Issuer or a Public Company.
• Approved to restate the entire provisions of the Articles of Association in
connection with the changes as referred to in point 1 (one) above.
• Provided power and authority to the Board of Directors with the right of
substitution to perform all necessary actions relating to the decision of
the meeting including collate and restate the articles of association as
the decision in a notarial deed and report these changes to the relevant
authorities for approval and perform all necessary actions in accordance
withprevailing laws and regulations.
Annual Report 2016

305

7 • Approved the honorable discharge of Mr, Suharto as member of the The decision takes effect
Company’s Board of Directors, as of the closing of the meeting with immediately
gratitution for the contribution of labor and thought given during their term
of service as members of Board of Directors;
• Appointed Mr. Aunur Rosyidi as members of the Board of Directors as of The decision takes effect
the closing of the meeting with a five years term of office, until the closing immediately
of Annual General Meeting of Shareholders in 2020, or have ended their
term of office (whichever occurs first), without prejudice to the right of
General Meeting of Shareholders to dismiss those member at any time;
• By the dismissal and appointment of the Board of Directors, the full The decision takes effect
composition of the Board of Directors shall be as below: immediately
Name Position Ended
Sdr. Suparni President Director GMS Year 2017
Sdr. Amat Pria Darma Direktur GMS Year 2017 The decision takes effect
Sdr. Gatot Kustyadji Direktur GMS Year 2019 immediately
Sdr. Johan Samudra Direktur GMS Year 2019
Sdr. Rizkan Chandra Direktur GMS Year 2020
Sdr. Aunur Rosyidi Direktur GMS Year 2020
• Members of the Board of Director who are appointed and still serving The decision takes effect
in other positions that are prohibited by regulations should resign or be immediately
terminated from those positions.
• Grant power and authority to the Board of Directors with the right of The Board of Directors
substitution to state in a notarial deed and to notify the changes of has made Notarial Deed
composition of the Board of Directors to the Ministry of Law and Human pertaining with such changes
Rights of the Republic of Indonesia. in Deed No. 42 dated 16
April 2014 made before
Leolin Jayayanti, SH., Notary
The GMS is convened at Mutiara Dua Ballroom

2. Resolutions of the AGMS of the 2016
Hotel JW Marriot Jl.Dr. Ide Anak Agung Gde Agung
Report and Follow up Agreement.
Kav. E3.2, South Jakarta. The announcement of
In 2016, the Company held only one AGM.
the GMS has been made in accordance with the
The AGMS convened on 13 May 2016 has
following provisions:
been conducted in accordance with the rules
• The Notice was announced on 6 April 2016
and mechanism and attended quorum by
at newspaper namely Bisnis Indonesia, Stock
shareholders and/ or represents 4,601,816,119
Exchange Website, Company’s website.
shares or 77.58% of 5,931,520,000 shares
• The Invitation was announced on 21 April 2015
issued/ placed by the Company.
at newspaper namely Bisnis Indonesia, Stock
Exchange Website, Company’s website.


• The AGMS meeting result was announced The resolutions of the AGMS which are carried out
on 17 May 2016 at newspaper namely according to the agenda and follow-up that have
Bisnis Indonesia, Stock Exchange Website, been conducted as the implementation of meeting
Company’s website. decision are described in brief as follows:
Agenda Resolution of AGMS 13 May 2016 Follow Up

• The approval of Annual Report regarding condition and performance of • The decision takes
the Company during Fiscal Year 2015 including Board of Commissioner effect immediately
Supervision Task Implementation Report during Fiscal Year 2015.
• To legalize Financial Statement of the Company of fiscal year 2015 that
has been audited by Public Accountant Office of Osman Bing Satrio &
Eny, member frim from Deloitte Touche Tohmatsu Limited according to
the Report in the letter No. GA116 0060 SI EIW dated 15 February 2016
1 with the opinion, “It is proper, in all material matters, financial position of
PT Semen Indonesia (Persero) Tbk and the entities and cash flow for the
year ended on the mentioned date according to the Financial Accounting
Standard in Indonesia”, and gave full release and discharge (volledig
acquit et de charge) to Board of Directors and Board of Commissioner
upon the management and supervision actions that have been performed
during Fiscal Year 2015, as long as not a criminal action and/ or violate
the provision and procedure of applicable law and recorded in Financial
Report of the Company and not against the law regulations.
• To ratify Annual Report of Partnership Program and Environmental • The decision takes
Development of PT Semen Indonesia (Persero) Tbk. Fiscal year ended in effect immediately
December 31st 2015 that as compiled based on PKBl Financial Report
audited by Public Accountant Office of Osman Bing Satrio & Eny, member
firm of Deloitte Touche Tohmatsu Limited according to the Report in the
letter No. GA116 0072 SIPKBL EIW dated February 17th 2016 with the
opinion, “It is proper, in all material matters, the financial position of
Partnership Program and Environmental Development Unit of PT Semen
Indonesia (Persero) Tbk dated December 31st 2015, as well as activity
report and cash flow for the year which ends on the mentioned date,
2
according to the Standard of Entity Financial Accounting Without Public
Accountability “, as well as ggave full release and discharged (acquit
et de charge) to Board of Directors and Board of Commissioner upon
the management and supervision actions of Partnership Program and
Environmental Development that have been performed during Fiscal Year
2015, as long as not criminal action and/ or violate the provision and
procedure of applicable law and recorded in PKBL Annual Report of the
Company and not against the law regulations. Later for Annual Report of
Partnership Program and Environmental Development of Book Year 2015
the Child Entity is legalized by Shareholders of Subsidiaries.
Annual Report 2016

307

• Approve to enact the Government Regulation of SOE No. Per-09/ • The decision takes
MBU/07/2015 dated July 3, 2015 regarding the Partnership Program and effect immediately
Community Development Program for State Owned Enterprises, including
3 the regulatory amendments, as from the enactment of legislation intended
to be a guideline of the Company in implementing the Partnership Program
and Community Development Program with regard to the provisions in
the field of Capital Market.
1. Approving and determining the use of Net Income of Limited Liability • The decision takes
Company of Semen Indonesia (Persero) Tbk for Fiscal Year 2015 effect immediately
amounted to IDR 4.521.490.578.000,00 designated as follows: • Dividend payout on
a. A cash dividend of 40% or IDR 1.808.596.231.200,00 or equivalent 16 June 2016
IDR 304,91 per share. The part of Shareholder of the Republic of
Indonesia for IDR 922.484.943.058,00 and the rest is the part of Public
Shareholders.
4 b. Remaining profits after deducting dividend allocated as a reserve.
2. Providing power and authorization the Board of Directors of Company
with the right of substitution to set a timetable and procedures of payment
of dividend for the Fiscal Year 2015 in accordance with applicable
regulations.
3. The amount of funds the Community Development Program of the
Indonesian Cement Group for the Fiscal Year 2016 amounted to IDR
80.200.000.000,00 or equivalent to 1.77% of the net profit of the Company
for the Fiscal Year 2015.
• Meeting provides the authority and power to the Board of Commissioners
with the prior approval of Shareholders of the Republic of Indonesia to
determine the amount of the bonus for the Fiscal Year 2015 and the salary
including facility and allowances for the Board of Directors for 2016.
• Establishing the amount of the performance bonus to the Board of
5 Commissioners for the Fiscal Year 2015 and honorarium including facility
and allowances for the Fiscal Year 2016 in accordance with applicable
regulations, further authorizing to the Board of Commissioners after
consultation with shareholders of the Republic of Indonesia to pour the
decision in detail in the decision of The Board of Commissioners on behalf
of the GMS.
• GMS appoints Public Accountant Office Osman Bing Satrio & Eny, (a • The decision takes
member firm of Deloitte Touche Tohmatsu Limited) to implement the effect immediately
Public Audit for the Consolidated Financial Statements of Company for
the Fiscal Year 2016 and other periods in the Fiscal Year 2016.
• GMS appoints Public Accountant Office Osman Bing Satrio & Eny (a
member firm of Deloitte Touche Tohmatsu Limited) to implement the
Public Audit for the Financial Statements the Use of Funds of Partnership
and Community Development Program for the Fiscal Year 2016.
6 • GMS delegates the authority and power to the Board of Commissioners to:
o Appoint replacement Public Accountant Office and set out the conditions
and requirements of the appointment if the Public Accountant Office has
been appointed cannot perform or continue the duties for any reason,
including legal reasons and Legislations in the field of capital market or
not reached an agreement regarding the amount of audit services.
o Set out the amount of audit fee and the requirement of other proper
appointment of the Public Accountant Office.



1. GMS dismisses with respect:
Mr. SUPARNI as President DIrector
Mr. AHYANIZZAMAN as DIrector
Mr. AMAT PRIA DARMA as DIrector
Mr.HADI WALUYO as Independent Commissioner
Mr. ACHMAD JAZIDIE as Commissioner
as of the close of the Meeting with gratitude for the contribution of labor
and thought given for the office.
2. GMS switches the position of Mr. RIZKAN CHANDRA as Managing
Director with a term to continue the remaining term before.
3. GMS Appointed :
Mr. AHYANIZZAMAN as Director
Mr. DARMAWAN JUNAIDI as Director
Mr. BUDI SISWOYO as Director
Mr. DJAMARI CHANIAGO as Independent Commissioner
Mr. HAMBRA sebagai as Commisioner
Appointment of the members of Directors and Board of Commissioners
are valid from the close of the General Meeting of Shareholders (GMS) of
Limited Liability Company of Semen Indonesia (Persero), Tbk. and ended
up with the closing of the Annual GMS of the fifth since the appointment
in question, with due regard to the legislation in the field of capital market
and without prejudice to the right of the GMS to dismiss at any time.
7
4. With the effect of the dismissal and appointment of members of the
Board of Commissioners and the Board of Directors, the membership
structure of the Board of Commissioners and the Board of Directors to
be as follows:
Name Position Ended

Sdr. Rizkan Chandra President Director GMS Year 2020
Sdr. Gatot Kustyadji Director GMS Year 2019
Sdr. Johan Samudra Director GMS Year 2019
Sdr. Aunur Rosyidi Director GMS Year 2020
Sdr. Dharman Junaidi Director GMS Year 2021
Sdr. Budi Siswoyo Director GMS Year 2021
5. Giving power and authority to the Board of Directors of Company with

the right of substitution to do all the necessary measures relating to this
agenda decision in accordance with the legislation in force, including to
declare in a separate Notary Deed and notifying the composition of the
Board of the Company to the Ministry of Justice and Human Rights, in
accordance with applicable regulations.
Annual Report 2016

309
THE BOARD OF In performing supervisory duties, the Board of
COMMISSIONERS Commissioners has the rights to request any required

information from the Board of Directors and therefore
Pursuant to Law No. 40 Year 2007 concerning Limited
shall be provided by the Board of Director. The Board
Liability Companies (“Corporate Law”) , the Board
of Commissioners has also the authority to temporary
of Commissioners is responsible for supervisory
terminate member of the Board of Directors that
duties and advisory to the management’s policy, the
violates the Company’s articles of association, as well
Company’s management in general pertaining with its
as the prevailing regulations and laws.
business and on the Company itself as well as provide
advise to the Board of Directors. The supervisory
Board Manual of the Board of Commissioners
and advisory are enacted for the Company’s interests
As part of the quality improvement of GCG best
and in line with the corporate goals and objectives.
practices implementation, in performing its supervisory
The Board of Commissioners that consists of seven
and advisory duties to the Board of Directors, the Board
(7) members serves as the assembly and each
of Commissioners refers to the Board Manual.
member of the Board of Commissioners shall not act
independently, but based on the decree of the Board
The working codes of the Board of Commissioners in
of Commissioners. The Government Regulation No.
the Board Manual are specifically elaborated in Chapter
12 Year 1998 concerning the Company (PERSERO)
II, as follows:
regulates that the Board of Commissioners of State-
• Board of Commissioners’ Functions 
Owned Enterprices (“SOEs”) has the rights to appoint a
• Board of Commissioners’ Requirements 
Secretary of the Board of Commissioners.
• Board of Commissioners’ Composition 
• President Commissioner 
Every member of the Board of Commissioners shall
• Independent Commissioner 
have good intentions, prudence, and responsible in
• Board of Commissioners’ Position Ethics 
enacting supervisory and advisory duties to the Board
• Board of Commissioners’ Duties and Authority 
of Directors, for the interests of the Company, and in
• Board of Commissioners’ Decision Making 
line with the Company’s goals and objectives. Every
• Board of Commissioners’ Accountability 
member of the Board of Commissioners shall have
• Board of Commissioners’ Performance Evaluation
personal responsibility on the Company’s losses in
which are derived due to any mishandling or negligence
Evaluation of the Board of Commissioners
by the members in performing its duties.
Requirements and Diversity of the Board of
Commissioners’ Composition
In the event of bankruptcy due to the mishandling
or negligence of the Board of Commissioners in
The Board of Commissioners’ requirements is
performing supervisory on the Board of Directors’
elaborated in the Board Manual which firmly stated the
management, and in the event of no sufficient funds
General and Specific Requirements, among others are:
from the Company’s assets to settle the obligations
• He/she never serves as the Director or Member of
due to the bankruptcy, every member of the Board of
the Board of Commissioners that were responsible
Commissioners has the collective responsibility with
for affecting a company to go bankrupt within 5
the Board of Directors on the outstanding liabilities.
years prior to the appointment;  


• He/she never been convicted of a criminal act The supervisory and advisory are performed for the
in the financial sector within 5 years prior to the Company’s interests and in line with the Company’s
appointment;   goals and objectives. (Clause 108 Corporate Law).
• He/she is not a board member of political parties
and/or legislative candidates;   The Board of Commissioners shall perform with good
• He/she is not currently served the position with intentions, prudence, and is responsible in supervisory
potential conflict of interest towards the Company, and advisory duties to the Board of Directors, for
or is willing to resign upon the appointment as the interests of the Company and in line with with
Member of the Board of Commissioners;   the Company’s goals and objectives. Every member
• He/she has an adequate knowledge on the of the Board of Commissioners shall have personal
company’s business;   responsibility on the Company’s losses in which are
• He/she has the capability to perform strategic derived due to any mishandling or negligence by the
supervision for the company’s growth;   members in performing its duties. In the event of the
• He/she has the understanding on matters regarding Board of Commissioners’ composition comprised 2
the company’s management that related to one of (two) members or more, the members has the collective
the management’s functions. responsibility (Clause 114 Corporate Law).
Meanwhile to determine the composition of the Board The Board of Commissioners’ members are not
of Commissioners’ members, the Company put in accountable on the losses upon the presentation of
place the policy to consider background experience following evidences: (a) has performed the supervisory
and competency of each member of the Board of duties with good intentions and prudence principles
Commissioners. As an example, considering that the for the interests of the Company, and in line with the
Company’s operations both in product marketing and Company’s goals and objectives; (b) does not have
distribution are strongly related to   the construction direct or indirect personal interests on the management
and inter-regions transportation, thus the composition actions that brought the Company’s losses; and (c)
of the Board of Commissioners are assigned with the has provided advices to the Board of Directors on the
competency background in military, government, and prevention or continuation of the losses (Clause 114
transportation. Corporate Law).
Policy related with composition requirements of In performing supervisory duties, the Board of
the Board of Diretors, refers to the Regulation of Commissioners has the rights to request any required
SOEs Minister Per-03/MBU/02/2015 concerning the information from the Board of Directors and shall be
Requirement and Procedures of Appointment and provided. The Board of Commissioners has also the
Termination of the Board of Commissioners and Board authority to temporary terminate member of the Board
of Directors’ Members of State-Owned Enterprises. of Directors that violates the Company’s articles of
association, as well as the prevailing regulations and
Duties and Responsibilities laws.
The Board of Commissioners carried out the supervisory
duties to the Board of Directors, on the management’s Working Mechanisms
policy, general management of the Company and its In supporting its supervisory duties, the Board of
business, as well as providing advisory to the Board of Commissioners is assisted by the Committees, and
Directors. Secretary.
Annual Report 2016

311
For effective supervisory duties, the Board of Independent Commissioner

Commissioners established 3 (three) interconnected Independent Commissioner is a member of the
Committees, namely Audit Committee; Strategy, Risk Board of Commissioners that are not affiliated with
Management and Investment Committee (SRMIC), and the Board of Directors, other member of the Board
Nomination & Remuneration Committee (NRC). The of Commissioners, and controlling shareholders. Also
Committee’s composition is divided into two types, free from business relations or other relations that may
namely the Chairman and Member, which are the influence its capability to act independently or act
Board of Commissioners’ members and non-members solely for the Company’s interests.  
(professionals). Members of non-Commissioners
committee consist of two (2) persons for each The mission of Independent Commissioner is to
Committee originate from experienced professional encourage the creation of an objective environment and
area. The secretary of the Board of Commissioners, fairness in various interests, including the company and
which came from experienced professional area, stakeholders’ interests as the main principles in decision
provides full time assistance. making by the Board of Commissioners. Several
matters related to the Independent Commissioner, are
With the Committee’s position as the Board of as follows:
Commissioners’ assistant, it is comprehensible that the
Work Program of the Board of Commissioners is the • Independent Commissioner has the main
“umbrella” for the Committees’ Work Program, in which responsibility to encourage the implementation
the strategic duties and responsibilities are still under of good corporate governance principles in the
the Board of Commissioners Work Program, whilist Company through the Board of Commissioners’
the technical operations are cascaded into Committee empowerment, so as to achieve effective
Work Program, but remains an integral part of the implementation of supervisory and advisory duties
Board of Commissioners' Work Program. to the Board of Directors, and provide added value
to the company.  
The Board of Commissioners, In providing advise and • The composition of Independent Commissioner
recommendation to the Board of Directors and consists of at least 30% (thirty per hundred) from
in stakeholders’ treatments, refers to the following the Board of Commissioners’ members.  
principles: • In implementing good responsibilities, the
• The Board of Commissioners conducted the Independent Commissioner proactively urges the
supervisory duties on management policy of the Board of Commissioners to carry out supervisory
Company and its business activities and provide and advisory to the Board of Directors related to,
advise to the Board of Directors in performing the but not limited, on the following matters:
Company’s management ◊ ensuring of effective corporate business strategy,
• The Policy is based on good faith, prudence and including monitoring on schedules, budgets, and
responsibility towards the interests of the Company, effectiveness of the strategy;
and in line with the Company’s goals and objectives.  ◊ assurance on the appointment of professional
• Transparent policy implementation to the Board of executives and managers;
Directors and stakeholders.   ◊ ensuring of effective corporate information,
• The policy is based on objectivity, as well as fair and control system, and audit system;
consistent treatments on data and information that ◊ assurance of proper identification and
are disseminated by the Board of Directors to the management of risks and risks potential;
Board of Commissioners.


◊ assurance of proper implementation and of the Company’s financial area. Other members
compliance on GCG principles and practices; have the education background in legal and mass
◊ ensuring of the implementation of corporate communication.
supervisory and management are in compliance
towards all prevailing regulations; The composition of the Board of Commissioners
• The Independent Commissioner acts as the ensures the supervision competency in the industrial
Chairman of the Audit Committee. as well as financial area. Upon fulfillment of this basic
requirement, the Company believes that the Board of
Independency of the Board of Commissioners Commissioners will be able to provide of credible and
All members of the Board of Commissioners act independent opinions and supervision.
independently and free from any parties’ intervention.
The Company shall hav at minimum two Independent Board of Commissioners’ Appointment and
Commissioners from the total seven members in the Termination
latest management, or 30% of total members who The member of the Board of Commissioners are
have fulfilled prevailing regulations. The Company’s appointed and terminated by the GMS through
Independent Commissioners does not have business nomination process in accordance with the prevailing
or affiliated and family relations with members of the laws and the nomination is binding to the GMS.
Board of Directors’ or fellow members of the Board of
Commissioners up to the third degree, vertically and For SOE, the fit and proper test process is conducted
horizontally or relationship by marriage. in accordance with the prevailing regulations, in order
to ensure that respective Commissioner is free from
Some members of Independent Commissioner have affiliation and other conflict of interests, and fulfillment
education background and expertise in economic of minority shareholders’ interests.
and finance, to ensure competency in the supervision
The composition of the Board of Commissioner in 2016:
Name Position First Appointment Basis End of Tenure

Achmad Jazidie Independent Commissioner 10 December 2007 AGMS 2017
Wahyu Hidayat Independent Commissioner 25 March 2014 AGMS 2019
Hadi Waluyo Commissioner 11 March 2011 AGMS 2016
Muchammad Zaidun Komisaris 25 March 2014 AGMS 2019
Annual Report 2016

313
The composition of the Board of Commissioners To tie aspirations and decisions on significant matters
is in accordance with the AGMS decision, which related to the Company’s business and operations
was held on 13 May 2016, consist of one President continuity, the Board of Commissioners and the Board of
Commissioner and 6 Commissioners. From the total Directors as two main organs constantly held a periodic
seven (7) members of The Board of Commissioners, meeting. The coordination between the Board of
two (2) members are the Independent Commissioners. Commissioners and the Board of Directors is conducted
through the Board of Commissioners’ meetings by
The composition of the Board of Commissioners are
as follows:
Name Position First Appointment Basis End of Tenure

Hambra Commissioner 13 May 2016 AGMS 2021
Wahyu Hidayat Commissioner 25 March 2014 AGMS 2019
Djamari Chaniago Independent Commissioner 13 May 2016 AGMS 2021
Muchammad Zaidun Independent Commissioner 25 March 2015 AGMS 2019
BOARD OF COMMISSIONERS inviting the Board of Directors. The meetings are

AND BOARD OF DIRECTORS held every month by the Board of Commissioners, to
COORDINATIONS  discuss previous month performance of the Company,
To achieve the Company’s long term goals, the Board of the Board of Directors’ monthly plan to gain existing
Commissioners and Board of Directors have stipulated opportunities, as well as strategic issues that required
and agreed on joint performance benchmarks, and the Board of Commissioners’ approval.
to held periodic evaluation and controlling in the joint
meeting of the Board of Commissioners and The Board Moreover, the Board of Commissioners and the
of Directors. Board of Directors also conduct meetings outside
the scheduled monthly meetings, to address urgent
The Board of Commissioners and the Board of matters for immediate conclusions. This is enacted in
Directors have clear duties and authorities in line with its line with the accountability and responsibility principles
functions as mandated in the Articles of Association and in GCG implementation.
prevailing laws (fiduciary responsibility). Both organs
have the responsibility to maintain the Company’s long In order to fulfill the joint responsibility of the Board
term business sustainability. Therefore, both organs of Commissioners and the Board of Directors in
shall posses same aspirations on the corporate vision, maintaining the long term business sustainability, the
mission, values and strategies. two highest organs agreed to set out four principals
targets as the benchmark of joint performance, which
are:


• Proper implementation of internal control and risk Board of Commissioners Meeting

management. Proses pengawasan terhadap kegiatan operasional
• Achievement of optimum returns for the Perseroan dilakukan melalui mekanisme rapat-rapat
shareholders. diantaranya sebagai berikut;
• Protection of the stakeholders’ interests in fair 1. Rapat Gabungan Dewan Komisaris dan Direksi.
manner. Rapat Gabungan (RaGab) membahas tentang
• Fair leadership succession for the sustainable kinerja bulanan Perseroan dan diselenggarakan
management in all lines of organization. 1 kali dalam sebulan, pada minggu kedua setiap
bulan.
The above duties are not easy to achieve, thereby the 2. Rapat Ad-Hoc/khusus
two highest organs set out an intensive communication Rapat Ad-Hoc/khusus Dewan Komisaris-Direksi,
agenda in the form of monthly meetings, ad-hoc untuk membahas hal-hal khusus yang strategis
meetings as well as other interactive communication atau yang spesifik, dilakukan sesuai kebutuhan.
media depending on the urgency. 3. Rapat Internal Dewan Komisaris
Rapat Internal Dewan Komisaris, diselenggarakan
The most significant working agenda of the Company satu kali dalam sebulan. Salah satunya dilakukan
that becomes main discussion in the meetings of the sebelum RaGab. Dewan Komisaris dapat juga
Board of Commissioners and Directors, among others mengundang Komite-komite, dll.
are: 4. Rapat atau Kunjungan Kerja
• Stipulation of long term plans, strategy including Rapat atau Kunjungan Kerja ke Anak Perusahaan
work plans and annual budgets. (SP, ST, SG), 1 kali dalam 3 bulan sebagai sarana
• Discussion of policy to ensure the fulfillment and komunikasi /pertemuan, diadakan bergantian di
compliance on the regulations. setiap lokasi Anak Perusahaan.
• The Company’s Articles of Association and
prevention of conflict of interests.   Joint Meetings Mechanisms
• Stipulation of the Company’s assessment policy, 1. The President Commissioner approves the final
business units and its supporting human resources.  agenda and extends written submission to the
• Discussion and stipulation of organization structure Board of Directors.
up to one level below the Board of Directors to 2. Monthly/annual agenda are coordinated by the
support the achievement of the Company’s vision, Board of Commissioners’ Secretary and Corporate
mission and values through the strategy set forth.   Secretary.
3. Meetings materials/supplement items are
Meetings Frequency Policy of the Board of submitted by the Corporate Secretary to the Board
Commissioners of Commissioners’ Secretary prior to the Joint
Pursuant to the Regulation of State Minister of SOE No. Meetings.
PER-01/M-MBU/2011 dated 1 August 2011 concerning 4. The Board of Directors report in the meetings are
the Implementation of Good Corporate Governance in pertaining to:
the State-Owned Enterprises, in particular to Article 14 a. Progress and the Company’s performance
and the Provisions of the Articles of Association, the evaluation for the previous month.
Board of Commissoners’ Meetings shall be conducted b. Report or strategic discussion in accordance
periodically at least once a month, and the Meeting to the annual/ monthly agenda  as agreed by
may invite the Board of Directors. the Board of Commissioners and the Board of
Annual Report 2016

315
Directors, as well as discussions to matters requiring approval from the Board of Commissioners which was
conveyed by the Board ofDirectors prior to the Meeting.
5. For matters that required more depth and focus discussion, the Board of Directors may convey at a special
meeting (Ad-Hoc).
The Minutes of Meeting is submitted by the Board of Commissioners’ Secretary to the Corporate Secretary.
The arrangement of the meeting are as follows:
Topics of Discussion Duration Submitted by
• Opening, agenda and direction of the Board of Commissioners 5 minutes President

Information
Commissioner
• Summary of previous month performance achievement

(Finance, Marketing, Production, Profitability)
30 minutes Board of Directors’
Monitoring • Target vs Achievement
• Explanation on deviation, action Plan and corrective measure
• Agenda submitted by BoC to the previous BoD, in accordance Board of Directors’,

with the annual BoD-BoC meeting agenda, which required 1-2 hours PIC, Board of
allignment and in-depth discussion, as well as report on Commissioners’
Discussion
matters requiring the approval of the Board of Commissioners.
• Rekapitulation on meetings decision, notes, and directions of President

Recapitulation the Board of Commissioners, as well as the Board of Directors’ 30 minutes Commissioner &
of Approval/ feedback. President Director
Acceptance
10 minutes President
• Closed or un-closed topics and/ or next items, if any.
Closing Commissioner
Synchronization of meeting agenda with the management cycles

The joint meeting agenda of the Board of Commissioners and Directors are aligned with the management cycles, as
ilustrated in the following chart:
Management
Cycle Q1 Q2 Q3 Q4
6. KPI Corporate Plan/ Mangement • Quantify RJP Work & Budget
Focus • Company Rolling Agenda: into financial Plan
• KPI • 5 years goals • Strategic plans. • Quantify goals
7. Company’s Work Meeting • Key Driver • Organization • Quantify RJP into financial
8. SI Strategic Holding • Revisions into operating plans (Work &
Implementation plans. Budget Plan)
Participants BOD, Senior Management of related subjects, PIC of related subjects
BOC Timeline Q1 Q2 Q3 Q4
9. Evaluation Approve the Corporate Review/ Approve the Review/ Approve
Overview • Company 2017 KPI Plan Corporate Plan: • RJAP 2018
• BOD KPI • Review target vs. • Organization
10. BOC’s Directive at actual • Strategic
Focus work meetings • Review rolling/ • Non Organic
11. Review: SI corporate plan update üü Acquisition
Strategic Holding üü Investment
Implementation üü Diversification
• BOD, BOC • BOD, BOC • BOD, BOC • BOD, BOC

Participants • Jan: BOCBOD SI • Key Person • Key Person • Key Person


Based on synchronization of management cycle with the above timeline of the Board of Commissioners, the Meeting
agenda can be promptly on targets planned, with proper preparation both for the Board of Directors and the Board
of Commissioners.
Throughout 2016, the attendance of the Board of Commissioners are as follows:
No. Agenda Q1 Q2 Q3 Q4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
I Joint Meeting BOC & BOD 18 16 17 18 12 15 18 19 17 17 15 15
1 Monthly Update
• Production
• Commerce KPI KPI KPI
• Profitability Q1 Q2 Q3
• Elaboration on Deviation “Target vs
Realization”
2 CAPEX evaluation, 2016 KPI
3 Optimization of Strategic Holding
(Cost Transformation)
4 IFRS Internal Control/ Audit Issues/
Quarterly Financial Statemet to the
Public
5 Huan Resource Development
6 ICT Development, CSR
7 2017 RKAP and KPI Discussuon
8 Site Visit to Gresik Gresik Gresik Gresik
II BOC and BOD Special Meeting - 24 24 26 - 23 15 16 26 13/31 - 6

1 Subsidiaries Evaluation
2 Optimization of Strategic Holding
(Cost Efficiency)
3 Commerce Strategy (Syynchrinization
of production, transportation and
Commerce)
4 Progress of New factories (Update %
completion)
5 Progress In Organic Non Cement
(Regional Expansion)
6 Corporate Plan Rolling 2017-2021
In 2016, the attendace of Commissioners in the Board of Commissioners meetings are as follows:
Total BOC BOC
Special Workin
Name Position Meeting Internal % BOD % % %
Meeting Meeting
Attendance Meeting Meeting
Mahendra Siregar President Commissioner 36 12 100% 12 100% 10 100% 2 100%
Hadi Waluyo 1)
Independent Commissioner 14 5 100% 5 100% 3 100% 1 100%
Muchammad Zaidun Independent Commissioner 30 10 83% 10 83% 9 90% 1 50%
Achmad Jazidie 2)
Commissioner 14 5 100% 5 100% 3 100% 1 100%
Wahyu Hidayat Commissioner 34 12 100% 12 100% 8 80% 2 100%
Marwanto Harjowiryono Commissioner 25 9 75% 9 75% 7 70% 0 0%
Sony Subrata Commissioner 22 7 58% 7 58% 6 60% 2 100%
Djamari Chaniago 3) Independent Commissioner 19 6 86% 6 86% 6 86% 1 100%
Hambra 4)
Komisaris 10 3 43% 3 43% 4 57% 0 0%
1) 2)
Tenure has been completed at the AGMS 13 May 2016
3) 4)
Appointed at the AGMS 13 May 2016
Annual Report 2016

317
Minutes of Meeting/ Recommendation and Memo To assure the achievement on its duties, the Board of
of the Board of Commissioners Commissioners conducts periodic self- assessment on
In 2016, apart from advisory and directions through performance, and report thoroughly to the Annual GMS
meeting forums with the Board of Directors, the Board for approval. The GMS is the authorized party with the
of Commissioners has issued letters and or decrees authority to assess of the implementation of duties of
both addressed to the Board of Directors or between the Board of Commissioners.
the Committees with the following recaps: 42 letters,
13 decrees and 30 internal memos.
In relation with the approval of GMS implementation of Subsidiaries and compliance with rules accord-
4 Outgoing Letters
ing to the Articles of Association
4 Outgoing Letters 12 Memos 2 Decrees Regarding:

• audit findings supervisory
• ensuring the alignment of Financial Statements with prevailing laws
and regulations
• strengthening of Internal Control, monitoring risk of ‘fraud’
• follow up on Whistle Blowers
• recommendation on Auditors selection
17 Outgoing Letters 15 Memos 2 Decrees Regarding:

• supervision, review, approval on strategic policy
• corporate plan & work & budget plan
• evaluation of investment risk
• approval on investment in accordance with the Articles of Association
Regarding :
10 Outgoing Letters 3 Memos 9 Decrees
• HR supervision
• proposal/ nomination of the Board of Directors of Subsidiaries
• recommendation on the Board of Directors and Board of
Commissioners’ Remunaration
Implementation of Duties of the Board of Procedures of Remuneration Stipulation and

Commissioners Amounts of the Board of Commissioners 
In line with the prevailing laws, the Board of The remuneration amounts of the Board of
Commissioners carried out the supervisory duties on Commissioners is stipulated annually in the GMS
the management’s policy, general management of together with the determination of remuneration amount
the Company and its business, as well as providing of the Board of Directors. The remuneration amount for
advisory to the Board of Directors. The supervisory members of the Board of Commissioners are proposed
and advisory are implemented for the interests of the to the GMS, based on the performance achievements
Company, and in line with the Company’s goals and and in line with the analysis and recommendations of
objectives (Law No. 40 year 2007). the Nomination & Remuneration Committee (NRC).
To implement supervisory duties on the operations In formulating the credible basis of stipulation and
management by the Board of Directors, the Board of recommendation of amounts, the NRC engaged an
Commissioners refers to the prevailing laws and the independent consultant. With the support of strong
Company’s Articles of Association. database from market surveys of similar companies


and peers, and by considering the NRC’s directives, Commissioner. Total remunerations received by the
the independent consultant formulates main factors Board of Commissioners’ members are reported to
in providing recommendation of the remuneration the GMS. The amount of tantiem provided to the
amounts. Board of Commissioners and Directors’ members are
stipulated based on the Company’s performance and
The Board of Commissioners receives fixed and KPI achievements of the Board of Commissioners and
non- fixed remuneration that consists of honorarium, Directors.
allowance and other monthly facilities as well as
tantiem as annual performance incentive, in which total The remuneration stipulation refers to the Regulation of
are recomended by the Nomination & Remuneration SOE State Minister No: PER-04/MBU/2014 concerning
Committee, and decided by the shareholders in the the Guidelines of Remuneration Stipulation of the
Annual GMS. Board of Directors, Board of Commissioners, and
Supervisory Board of SOE. Based on this Regulation,
A brief illustration of Remuneration Stipulation the principles of remuneration stipulation of the Board
Procedures of the Board of Commissioners is provided of Commissioners is set out by the GMS, with the
in below chart: following components:
• 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 10 March 2014
• Remuneration survery of peers industry
NRC • Success in risk mitigation
• The Company’s capability, competence and experience
• Propose the Remuneration basic and amount to the Board of Commissioners (BOC)
NRC
• Discuss the NRC recommendation and propose the remuneration amount to the GMS
BOC
• Delegating the stipulation on honorarium and tantiem implementation to the Board of

GMS Commissioners following the approval of Shareholders Series A.
• The Board of Commissioners’ honorarium and tantiem
Remuneration Structure of each member of a. Salary/Honorarium;  

the Board of Commissioners b. Allowances;  
The remuneration of Commissioner can be different c. Facilities; and  
in line with the duty and responsibility of each d. Tantiem/Performance Incentives.  
Annual Report 2016

319
The remuneration given to each member of the Board of Commissioners

shall be conducted based on decision of the Annual General Meeting of
Shareholders of the fiscal year 2016.
The remuneration amount of the Board of Commissioners for 2016 are as

follows:
Name Honorarium Allowances Tantiem (Netto) Holiday Tax Total
Bonus Allowances
Mahendra Siregar 783,000,000 153,822,240 2,784,520,474 65,250,000 409,312,258 4,195,904,972
Muchammad Zaidun 704,700,000 138,440,016 2,506,068,427 58,725,000 353,874,072 3,761,807,515
Marwanto Harjowiryono 704,700,000 138,440,016 2,506,068,427 58,725,000 350,016,972 3,757,950,415

Wahyu Hidayat 704,700,000 138,440,016 2,506,068,427 58,725,000 355,802,471 3,763,735,914
Sony Subrata 704,700,000 138,440,016 2,506,068,427 58,725,000 274,513,272 3,682,446,715

Hambra 1)
447,067,729 87,827,534 - 58,725,000 218,769,200 812,389,463
Djamari Chaniago 1)
447,067,729 87,827,534 - 58,725,000 224,554,700 818,174,963
Achmad Jazidie 2) 257,632,271 50,612,482 2,506,068,427 - 39,414,750 2,853,727,930
Hadi Waluyo 2) 257,632,271 50,612,482 2,506,068,427 - 42,414,750 2,856,727,930
1)
Appointed at the AGMS on 13 May 2016
2)
Tenure completed at the AGMS dated 13 Mat 2016
Board of Commissioners Competence Improvement Program

To improve the quality in supervisory and directives in the Company’s
management as well as development in the future, the Board of Commissioners
has participated in several competency improvement programs, both in and
outside the Company. The program conducted in 2016 are as follows:
Training Date Organizers Venue Participants

Directing the Journey in the 19/01/2016 PT Semen Indonesia Jakarta Mahendra Siregar, Hadi Waluyo, Achmad
Challenging Environment (Persero) Tbk Jazidie, Wahyu Hidayat, Sony Subrata.
Economic Outlook tahun 18/08/2016 PT Semen Indonesia Jakarta Achmad Jazidie, Wahyu Hidayat,
2017 (Persero) Tbk Muchammad Zaidun


AUDIT COMMITTEE management. The periodic meeting discuss among

The Audit Committee was established to comply with others business process on financial statement including
the laws and regulations in Indonesia for public listed monitoring and evaluation towards independency of
companies and State-Owned Enterprises (SOEs) in view independent auditor and provide independent opinion
of increasing complexity of the duties and functions on any disagreement between the management and
of the Board of Commissioners in implementing the independent auditor with regards to the given service.
supervision and advisory towards the Company. The consolidated financial statemet is the responsibility
of the Management.
Duties and Responsiblities
The Audit Committee has the duties, among others are, The oversight responsibility of the Audit Committee
to ensure the target achievement of (i) Fair presentation is regulated in the Audit Committee Charter, which
of the Company’s financial information in accordance is implemented based on the resolution of the Board
with accounting standards in Indonesian and prevailing of Commissioners. The Audit Committee Charter
regulations (ii) provide independent opinion in the is regularly evaluated and adjusted to ensure its
event of disagreement between the management conformity with the regulation of Financial Services
and Accoutant on the given service (iii) provide Authority (OJK) and prevailing regulations.
recommendation to the Board of Commissioners on
appointment of accountant based on independency, The Audit Committee’s Members are collectively
scope of work and compensation (iv) the Company’s responsible towards the effectiveness of Audit
internal control structure being effectively implemented Committee’s duties implementation. This is to enable
including to assess complaints pertaining with the focus of every member on certain duties, and to
accountant process and financial statement (v) assure the fulfillment of Audit Committee’s mandates.
internal and external audit being implemented based
on prevailing audit standards. (vi) the Company’s Audit Committee’s Members Qualifications
compliance to Capital Market regulations and other The qualifications of expertise and eduction background
regulations related with the Company’s activities. of Audit Committee’s Members can be viewed in the
section of Audit Committee Profile.
Implementation of Duties and Responsibilities
The Audit Committee performs oversight duties Audit Committee Composition and Independency 
through periodic meeting with relevant parties such The Audit Committee composition from 1 January 2016
as independent auditor, Internal audit Unit and until 13 May 2016 is as follows.
Annual Report 2016

321
No. Name Position

1 Hadi Waluyo *)
Chairman – (Independent Commissioner)
2 Achmad Jazidie*) Member – (Non-Independent Commissioner – without voting rights)
3 Sahat Pardede Member (Professional – Independent Party )
4 Elok Tresnaningsih Member (Professional – Independent Party )
*) Discharge as Independent Commissioner or Commissioner at the AGMS dated 13 May 2016,
The Audit Committee composition from 14 May 2016 until 31 December 2016
is as follows:
No. Name Position
1 Djamari Chaniago*) Chairman – (Independent Commissioner)
2 Hambra*) Member – (Non-Independent Commissioner – without voting rights)
3 Sahat Pardede Member (Professional – Independent Party)
4 Elok Tresnaningsih Member (Professional – Independent Party)
*) Appointed as Independent Commissioner or Commissioner at the AGMS dated 13 May 2016.
All members of the Audit Committee has fulfilled the independence requirements
of members of the Audit Committee in accordance with GCG practice rules
in which all members of the Audit Committee are not employed or have the
authority and responsibility to plan, lead, control or oversee the Company’s
activities within the last 6 (six), has no direct or indirect shareholding in the
Company, has no affiliation with the Board of Commissioners, the Board of
Directors and the controlling shareholders of the Company, and has no direct
or indirect business relationship, related to the Company’s business activities.
In particular, to maintain the independency of the Audit Committee, the non-
independent Commissioner does not have a voting right for decision in the
event of decision-making in the Audit Committee.
Meetings Frequency and Attendance Level

During 2016, the Audit Committee convened internal meetings, attended the
Joint Meeting of the Board of Directors and The Boad of Commissioners,
convened Special Meetings and Working Meetings with attendance as shown
in the table. The meetings are held and in accordance with the Charter of
the Audit Committee and facilitate the implementation of the duties and
responsibilities of each member of the Audit Committee.


Total BOC BOC

Special IA Work
AUDIT COMMITTEE Meeting Internal % BOC % % % %
Meeting Meetings Meeting
Hadi Waluyo 1) Chairman – Independent 24 5 100% 5 100% 3 100% 10 100% 1 100%

Commissioner
Achmad Jazidie 2) Member/ Commissioner 22 5 100% 5 100% 3 100% 8 1 100%
Djamari Chaniago 3) Chairman – Independent 30 6 86% 6 86% 6 86% 11 80% 1 100%
Commissioner
Hambra 4) Member/ Commissioner 13 3 43% 3 43% 4 57% 3 27% 0 0%
Sahat Pardede Member 40 8 67% 10 83% 2 100% 20 95% 0 0%
Elok Tresnaningsih Member 49 12 100% 12 100% 2 100% 21 100% 2 100%
1 2
) ) Tenure completed on 13 May 2016
2
) Mr.. Djamari Chaniago replaced Mr. Hadi Waluyo as Chairman of Audit COmitee based on Board of Commissioners Decree 006/SI/Kep.DK/05.2016 - 16 May 2016
2
) Mr Hambara replaced Mr. Achmad Jazidie as member of Audit Committee based on Board of Commissioners Decree 006/SI/Kep.DK/05.2016 - 16 May 2016
Brief Report of Audit Committee Duties • Evaluation and suggestion on the appointment
Implementation of Public Accountant Firm to the Board of
• Financial information review. The oversight on Commissioners. At Quarter I 2061, the Audit
financial reporting process is carried out through Committee has proposed to the Board of
periodical meetings with Independent Auditors, Commissioners the appointment of Independent
Internal Audit Unit, and Management, to disicuss Auditor, Public Accounting Firm Osman Bing Satrio
and analyze subjects on internal control, accounting, & Eny (“KAP OBS&E”), a firm member of Deloitte
auditing and financial reporting. Touche Tohmatsu Limited, to conduct general audit
on the Consolidated Financial Statements and
• Discussion with the Management of the the Annual Report of Partnership and Community
Company. For the consolidated financial statements Development Program (PKBL) for fiscal year
of fiscal year 2016, the Audit Committee has 2016. The Board of Commissioners approved and
reviewed and discussed the audited consolidated extended the proposal to the GMS through the
financial statements with the Management of the Board of Directors. The Annual GMS dated 30 May
Company including discussion of the quality of the 2016 has approved the appointment of KAP OBS&E,
adopted accounting standards, the significant use as the Independent Auditor to to conduct general
of judgments, and the adequacy of disclosures audit on the Consolidated Financial Statements and
in the consolidated financial statements. The the Annual Report of PKBL for fiscal year 2016.
Company's management has confirmed to the
Audit Committee on responsibility towards that • Review of auditing by Internal Auditor. The
the financial statements that has been prepared Audit Committee is empowering and cooperating
with integrity and objective and in accordance with with the Internal Audit by focusing on its auditing
Indonesian financial accounting standards. implementation, in both operations audit as well as
in the oversight of financial statements presentation
and evaluation of internal control. Periodically, the
Audit Committee and internal auditors discuss the
realization of established work programs and the
need for personnel and infrastructure to complete
the work program.
Annual Report 2016

323
• Discussion with Independent Auditor. The Audit The Audit Committee and Independent Auditor
Committee discussed and reviewed the financial discussed the independency of Public Accountant
statements with the independent auditor. The Firm and its auditors on the Management and
Independent Auditor is responsible to provide opinion the Company including matters stated in the
on the fairness of the audited consolidated financial independency letter of Public Accountant Firm that
statements presentation based on the financial required by the auditing standards.
accounting standards in Indonesia. The review also
includes consideration quality (judgement) that • Company’s Annual Report. The Audit Committee
utilized by the Management in the development of provides recommendation to the Board of Directors
financial statements and other matters required by upon reviewed and discussion as stated above. The
the auditing standards, for further discussion and Board of Commissioners has approved the inclusion
communication with the Audit Committee. Komite of consolidated financial statements into the annual
Audit. report of 2016, which then reported to the OJK.
Audit Committee Profile
Sahat Pardede
Member of Audit Committee of the Company since July 2008. Currently also serves
as Expert Staff of the Supervisory Commission of the Special Unit 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.
Obtained an accounting diploma from Sekolah Tinggi Akuntansi Negara, Jakarta and
earned his master's degree in business administration from Saint Mary's University,
Canada.
Elok Tresnaningsih
Member of Audit Committee of the Company since 1 October 2013. Currently active
as a lecturer at the Department of Accounting Faculty of Economics, University of
Indonesia (FEUI) and Venture Manager FEUI. Experienced as Deputy Head of FEUI's
Accounting Development Center, management consultant at several companies and
Audit Committee at State-Owned Enterprises.
Bachelor of Economics majoring in Accounting from Faculty of Economics University of

Indonesia and graduated Master of Accounting Science from University of Indonesia in
2007.


STRATEGY, RISK MANAGEMENT 5. Evaluation and provide improvement inputs towards
AND INVESTMENT COMMITTEE  risk identification and mitigation for the Company’s
development projects, including new cement mills
The Strategy, Risk Management and Investment
construction, and investments or purchase of
Committee (SRMIC) is established by the Board
cement mills abroad.  
of Commissioners to assist in the oversight and
6. Reviewing the Board of Directors’ proposals on
advisory to the Directors on the overall or specific
the investment/divestment and capital expenditure
Company’s management in line with the laws, and
within certain value limits, and monitoring its
Articles of Association, specifically matters pertaining
implementaiton.  
to the development and implementation of strategic
7. Reviewing the corporate strategic actions proposal,
corporate actions, and to ensure the implementation of
and monitoring its implementation process.
risk management principles in the Company, as well as
to analyze and review the Company’s investment plans.
The SRMIC duties, responsibilities, and authority are
regulated in the Decree of SRMIC Charter, which are
Duties and Responsibilities
periodically reviewed.
The SRMIC performs a professional and independent
duties and responsibilities. The SRMIC main duties
Qualification of SRMIC’s Members
and responsibilities are assisting the Board of
The qualification of expertise and education background
Commissioners in monitoring and evaluation of the
of SRMIC’s Members can be viewed in the SRMIC’s
development and implementation of: strategic plans,
Profile section.
Work and Budget Plan, risk management system, and
investment plans, with the following details:
SRMIC Composition and Independency
1. Comprehensively reviewing the proposal of the
The following is SRMIC composition in 2016:
Board of Directors on the Corporate Long Term Plan
(RJPP) , and the Corporate Work and Budget Plan No. Name Position
1 Mahendra Siregar Chairman –President
(RKAP).  
Commissioner
2. Reviewing the implementation RJPP and RKAP, to 2 Marwanto Harjowiryono Member – Commissioner
be in line with the targets ratified by the Board of 3 Wahyu Hidayat Member – Commissioner
Commissioners.   4 Syafrizal Member – Commissioner
3. Evaluation of development and implementation 5 Yuki Indrayadi(*) Member – Commissioner
of risk system carried out by the Company and 6. Harini Agustina(**) Member – Commissioner
providing advices on further improvements.   Remarks:
(*) Completed on 31 October 2016
4. Evaluation and suggestion on improvements (**) Effective as of 1 September 2016 based on the Board of
towards risk identification and mitigation that can Commissioners Decree 008/SI/Kep.DK/09.2016
jeopardize the target achievements of the RKAP.  
Annual Report 2016

325
The SRMIC’s members comprising professionals with 1. Provide input to the Board of Commissioners for
adequate competency in their fields, with at least 5 the focus of supervision throughout 2016.
(five) years experience. The members have never had 2. Conduct analysis and evaluation of the Company's
relations with the Company or family relations with monthly performance report and convened
other members of Commissoners and Directors. The meetings and discussions with the relevant
SRMIC’s members background are diversed, including Management units to monitor monthly performance
strategic management, performance management, risk achievements against the 2016 RKAP and submit
management, mining engineering, banking/finance and suggestions and recommendations on necessary
accounting. This background diversity is aimed to fulfill remedial measures.
required competency and independency in opinion or 3. Perform monitoring and evaluation, as well as
recommendations. providing inputs to the company's strategy in
securing raw material supply, safeguarding the
Meeting Frequency and Attendance continuity of fuel supply especially coal, as well
The attendance of SRMIC during 2016 can be viewed as marketing innovations and cement distribution
on below table. patterns conducted to target market share (market
share) of 43.7%.
THE STRATEGY, RISK MANAGEMENT AND Total BOC BOC
Special SRMIC Work
INVESTMENT COMMITTEE Meeting Internal % BOD % % % %
Meeting Meeting Meeting
Mahendra Siregar Chairman SRMIC/ 36 12 100% 12 100% 10 100% 2 100%

President Commisioner
Wahyu Hidayat Member of SRMIC / 34 12 100% 12 100% 8 80% 2 100%
Commissioner
Marwanto Member of SRMIC / 25 9 75% 9 86% 7 70%
Harjowiryono Commissioner
Syafrizal Member of SRMIC 44 11 92% 11 57% 9 90% 11 92% 2 100%
Yuki Indrayadi 1) Member of SRMIC 36 10 100% 10 100% 8 100% 6 100% 2 100%
Harini Agustina 2) Member of SRMIC 19 4 100% 4 100% 4 100% 7 100%
Yuki Indrayadi 1) tenure completed on 31 October 2016
Harini Agustina 2) Replacing Yuki Indrayadi on 1 September 2016 based on the Boarf of Commissioner Decree No 008/SI/Kep.DK/09.2016
Report on Strategy, Management and 4. Conduct monthly monitoring of the implementation

Investment Committee in 2016 of the 2016 Capex program and periodically
Implementation of functions and roles of the evaluates every quarter of the 2016 Capex
activities of the Strategy, Risk Management and implementation.
Investment Committee in accordance with its duties 5. Monitoring the progress and realization of
and responsibilities throughout 2016 can be briefly strategic projects (Cement Mill Cigading, WHRG
described as follows: Plant Tuban, Bengkulu Packing Plan, North
Maluku Packing Plan, and new Indarung VI plant
construction projects and new Rembang plant.


6. Provide input to the Board of Commissioners 1. Review on Application for Approval of

in considering the approval of changes in the Establishment of International Trade Company
investment of Rembang's new plant project, the 2. Review of Application for Approval of Investment
provision of the Rembang project funding facility, Change of Rembang Project
the lease agreement and additional building in 3. Review of Revised Proposal of Establishment of
Banyuwangi packing plant, and the addition of International Trade Company
Bengkulu packing plant and North Maluku packing 4. Review of the Land and Building Plan Approval
plant. Approval at Banyuwangi Packing Plant
7. Provide input to the Board of Commissioners in 5. Review of Application for Approval of Provision of
considering the approval of the establishment of Rembang Project Funding Facility
the International Trade Company, the construction 6. Review of the Approval Approval of the Holcim
of a new plant in Aceh and the realization of the Acquisition Plan (Lanka) Ltd. & Its Subsidiary - Sri
initial phase of its construction, and approval for Lanka
the establishment of Integrated Cement Plant in 7. Review of the Approval Approval of Holcim
Kupang. Acquisition Mechanism (Lanka) Ltd.
8. Providing input to the Board of Commissioners 8. Review of Approval of Acquisition Approval of PT
in considering the granting of a license to grant Semen Kupang Indonesia
the loan facility and as a guarantee in the joint 9. Review of Proposed Budget Approval Approval of
borrower transaction. PP Bengkulu
9. Providing input to the Board of Commissioners in 10. Review of Proposed Approval of Change & Budget
considering the approval of the Holchim Acquisition Placement of Carry Over PP North Maluku
Plan (Lanka) and its subsidiaries in Sri Lanka. 11. Review of Application for Approval of Provision of
10. Provide input to the Board of Commissioners in Loan Facility and As Underwriter in Joint Borrower
considering the approval of the proposed share Transaction
purchase of PT. Varia Usaha owned by Dana 12. Review of the Application for Approval of
Pensiun Semen Gresik Establishment of Integrated Cement Plant in
11. Reviewing the proposed Work Plan and Corporate Kupang through the Subsidiary of PT Semen
Budget (RKAP) of 2017 and synchronization of the Kupang Indonesia and the Approval of the
Company's COR, as well as reviewing the initiation Implementation of Shareholder Resolution beyond
of the Company's Long Term Corporate Update the General Meeting of Shareholders.
(RJPP) 2015-2019. 13. Approval of Purchase of Shares of PT Varia
Enterprises Owned by Semen Gresik Pension
The activities of the SRMI Committee and its Fund
recommendations to the Board of Commissioners in 14. Review of the Proposed Work Plan and Budget of
relation to the work realization previously described are the Company (RKAP) Year 2017.
as follows:
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327
Some notes from SRMIC during 2016 are as follows: 6. Strengthening operational synergies in efficient
management of product allocation, Inter-Company
STRATEGY AREA Sales (ICS), and centralized export / imports in
1. The need for road map reinforcement, including the Holding Companies and International Trading
improvement of the projected financial statements, Companies.
of all business clusters listed in the RJPP 2015- 7. The need to increase the productivity of production
2019. facilities in Semen Indonesia Group, among others
2. In anticipating the phenomenon of oversupply through standardization of production system.
in the national cement industry market that will 8. Enhancement of research and development
continue in 2017, which will impact on the decline activities to support the efficiency and
of cement selling prices, and potentially reduce competitiveness of the company in the fields
the level of income, it is necessary to maintain and of energy, fuel, raw materials, packaging, AFR
even upgraded the cost transformation program (Alternative Fuel & Raw Material), environment,
that has been proclaimed since mid year 2016, to quality, product and product application.
maintain profit obtained by the company. 9. The need to strengthen distribution channels
3. The need for the formulation and implementation to expand the network and market penetration,
of a comprehensive marketing strategy by fully among others, with the implementation of
exploiting the potential of synergies and taking integrated Supply Chain Management (SCM) and
into account the addition of production capacity Customer Relationship Management (CRM).
by competitors whereby during 2016 there has 10. The need to increase the internal capability
been a very dynamic development in the seizure of Semen Indonesia Group (SMIG) in offering
of the domestic cement market share by domestic complete cement solution that suits customer
cement producers. needs.
4. There is a need for special attention to the 11. The need for intensive efforts to plan and
improvement of the capability and reliability of the implement the development of non-cement
Company's slag and cement production facilities, businesses that support the improvement of
in order to ensure that these facilities can produce the Company's consolidated revenue, such as
at least a production level consistent with the business development of PT. SGG Energi Prima,
targets set out in the RKAP 2017. PT. Semen Indonesia Beton, PT. Cement Indonesia
5. It is necessary to continue efforts and innovations International, and the acquisition of Varia Usaha
for cost efficiency of production by utilizing best Group
practices on OpCos to be applied jointly at the 12. The need to improve the readiness of human
holding level. 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
of Human Capital Master Plan program.
13. The need to improve the Company's targeted CSR
program, and have a direct impact on communities,
the environment, and stakeholders.


RISK MANAGEMENT AREA FIELD OF INVESTMENT

1. The need to optimize capex and investment funding, 5. It is necessary to continue the effort of adjustment to
especially if external financing needs increase along the procedure of filing and approval of investment in
with the increase of capex and investment programs connection with holding company pattern adopted
and related to the development of non-cement by PT. Cement Indonesia, Tbk.
business. 6. The need to improve the quality of planning,
2. Management needs to intensively oversee the discipline of proposed budget, and implementation
implementation of new plant project development of Capex in the environment of Semen Indonesia
plans within the Cement Indonesia Group Group.
environment within budget and on schedule basis 7. The need for a post-project evaluation of the
such as the Cement Plant Construction Project in completed Capex Strategic projects in order to obtain
Aceh and the Cement Plant in Kupang. Lesson-Learned to improve the implementation of
3. Intensive efforts are needed to meet emission other Strategic Investment Projects in the future.
quality standards from the operation of all plants 8. Continuing efforts to safeguard and oversee the
within the Semen Indonesia Group. implementation of new cement plant construction
4. The need to continuously improve the plans within the Semen Indonesia Group to fit the
effectiveness of the implementation of the risk schedule with due regard to the principles of good
management system developed by the Company governance.
so as to achieve a higher level of maturity level in all
operating companies.
Profile of Strategy, Risk Management and Investment Committee

Member of Corporate Strategy, Risk Management and Investment Committee
since October 2010. Experienced in conducting research and consulting services in
exploration and mining since 1998. Currently active as a lecturer in Mining Engineering
Program, Faculty of Mining and Petroleum Engineering (FTTM), Bandung Institute of
Technology (ITB).
Undergraduate degree in Mining Engineering Department ITB and graduated as a

Bachelor of Engineering in 1996, graduated as a Master of Engineering in Engineering
Studies Program in Mining Engineering ITB in 2000, and graduated as Doctor of
Engineering in 2006 from Department of Earth Resources Engineering, Graduate
SYAFRIZAL School of Engineering, Kyushu University, Japan.
Annual Report 2016

329
Member of the Company's Strategic, Risk Management and Investment Committee

from November 2013 to 31 October 2016. Experienced in corporate planning, capital
market, and supervisory administration of the Board of Commissioners. In addition
to his experience as head of research at a securities company, he has served as
a member of the Planning and Risk Assessment Committee, and Secretary of the
Board of Commissioners at PT Telekomunikasi Indonesia Tbk. Currently also active
as a Lecturer at the Faculty of Engineering Swiss German University, BSD City, South
Tangerang.
He graduated with a Bachelor of Engineering degree from the Department of Industrial

YUKI INDRAYADI Engineering ITB (graduated in 1996), followed by Master of Engineering, simulation
of manufacturing system (graduated in 1998), and Doctor of Applied Sciences,
manufacturing system (passed 2002) from Katholieke Universiteit Leuven, Belgium.
Member of the Company's Strategic, Risk Management and Investment Committee

since September 2016. From the beginning of his career until 2008, he was active
as a practitioner in corporate strategy management, project management, quality
management, human resource management and supply chain management at several
national companies Such as Bakrie School Management, a telecommunication
company and a water company affiliated with the Bandung Institute of Technology.
After 2008, he was active as a consultant in the same field by partnering with DPS
Consulting (partner of the National Committee on Policy Governance). Currently also
active as a lecturer in Industrial Engineering Program, Faculty of Industrial Technology,
Trisakti University.
HARINI AGUSTINA He graduated with a Bachelor of Engineering degree at the Department of Industrial
Engineering ITB (graduated in 1998) followed by Master of Transportation, Institut
Teknologi Bandung (graduated in 2004), and then continued his doctoral degree in
Management Economics at Gajah Mada University (2008 until now - leave).


NOMINATION AND REMUNERATION • Provide oversight input and advices as well as

COMMITTEE recommendation in HR management.  
The Nomination & Remuneration Committee (NRC) as
the supporting organ of the Board of Commissioners Qualifications of Nomination & Remuneration
performing its duties based on Financial Services Committee
Authority Regulation No.34/POJK.04/2014 on the Qualifications of expertise and education background
Nominaton and Remuneration Committee of Issuer of Nomination & Remuneration Committee’s (NRC)
and Public Company; the Board Manual of PT Semen Members can be viewed in the section of NRC profile.
Indonesia (Persero) Tbk, Nomination & Remuneration
Committee Charter, and the Decree of the Board of Independency and Composition of the Nomination
Commissioners of PT Semen Indonesia (Persero) Tbk and Remuneration Committee
No. 011/SI/Kep.DK/05-2013 dated 17 May 2013 jo the The composition of the NRC in 2016 are as follows:
Decree of the Board of Commissioners of PT Semen No. Name Position
Indonesia (Persero) Tbk No. 008/SI/Kep.DK/04.2014 1 Muchammad Zaidun Chirman- Independent
Commissioner
dated 17 April 2014.
2 Wahyu Hidayat Member- Commissioner
3 Irham Dilmy Member- Professional
The NRC has the role to assist the Board of
Commissioners of PT Semen Indonesia (Persero) Tbk
All NRC’s members have never had a relation with the
in providing recommendation of oversight and advices
Company or family relatios with fellow members of the
to the Board of Commissioners, and performing other
Board of Commissioners and Directors (independent).
specific duties, including:
• Determine the selection criteria and procedures of
Meeting Frequency and Attendance
nomination and recommendation on total member
The composition and attendance of Nomination &
as well as selection process of the Board of
Remuneration Committee during 2016 are as follows.
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  
BOC
NOMINATION AND REMUNERATION Total Meeting BOC Internal NRC Work
% BOD % % %
COMMITTEE Attendance Meeting Meeting Commitee
MEeting
Muchammad Zaidun Chairman / 31 12 100% 12 100% 5 50% 2 100%
Independent
Commissioner
Wahyu Hidayat Member/ 36 12 100% 12 100% 10 100% 2 100%
Commissioner
Irham Dilmy Member/ 30 9 75% 10 83% 10 100% 1 50%
Commissioner
Annual Report 2016

331
Nomination and Remuneration Committee Talent Pool programs to obtain the final results
Report and implementation of the Company's human
The NRC duties completed in 2016 include: resources policy as a means to obtain competent
1. Evaluating and propose improvements in and outstanding human resources in order to
human resource development, employee career respond to business challenges through advice and
development to be better prepared to face recommendation;
the national and regional markets challange.
Ensure synergy of human resource function with The main challenge of the Company in 2016 is how to
future company need by anticipating business change the mindset of the overall elements of leaders
development and expansion abroad, especially for and executors at all fronts to cope with the changing
finance and marketing at level of echelon 1 and 2. landscape of the cement industry, market decline and
2. By utilizing the advice of the remuneration consultant, the increasing competition of national and regional
Willis Towers Watson, the NRC formulates the cement industries. In order to achieve this, a special and
remuneration proposals to the majority shareholders comprehensive policy in the area of human resource
for the Board of Directors and the Board of management is in line with rapidly changing market
Commissioners for the fiscal year 2016 and tantiem developments. In an effort to improve the capability
of the 2015 fiscal year submitted to the GMS of of all elements of management and executing at the
2016 and recommendations on the remuneration of holding level, PT Semen Indonesia (Persero) Tbk,
the Board of Commissioners and Board of Directors as well as operating companies in the cement area
starting from the beginning of 2016. consisting of PT Semen Padang, PT Semen Tonasa,
3. Implemeting the KPI of the Board of Commissioners PT Semen Gresik and Thang Long Cement Joint-Stock
and the Board of Directors in a collegial manner Company (TLCC) to be able to move quickly with a
for 2016 as the basis for the implementation of the high level of agility, the Board of Commissioners of the
nomination and remuneration function in accordance Company, through the Nomination and Remuneration
with the needs; Committee, will always strive to provide inputs in the
4. Monitoring the implementation of the Human context of monitoring and submitting suggestions and
Resource Management Project, especially in recommendations.
the implementation of Talent Management and


Profile of the Nomination and Remuneration Commitees
Became a member of the Nomination and Remuneration Committee since 1

December 2014. Experienced in the field of Human Resource Management
for more than 30 years in the environment of multinational companies,
international organizations and SOEs, currently serves as Vice Chairman
and Commissioner of the State Civil Service Commission Non-structural
independent under the President of the Republic of Indonesia, for term of
2014-2019.
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); Irham Dilmy
Policy Analyst, The World Bank, Washington, DC (1989-1990); Manager,
Organization, Compensation & Benefits, ARCO Indonesia (1982-1989).
Completed the S-1 in Political Science / International Relations at FISIP

University of 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 University of Indonesia.
Annual Report 2016

333
THE BOARD OF 2. In addition to duties as stated in the point (1),
COMMISSIONERS SECRETARY Secretary of the Board of Commisisoners/

Supervisory Board as the head of Secretariat,
The Board of Commissioners’ Secretary (Secretary)
implements other duties, as follows:
has the administrative duties in assisting the Board
a. Ensuring the compliance of the Board of
of Commisisoners in its supervisory and advisory as
Commisisoners/Supervisory Board on the laws
well as fiduciary duties. As the head of the Board of
and regulations, as well as implements GCG
Commissioners’ Secretariat, the Secretary manages
principles;
three (3) full time Secretariat Staffs.
b. Providing information required by the Board
of Commisisoners/Supervisory Board in
The Secretary is assigned from the Professional
implementing its advisory, and fiduciary duties;
fields with experience in secretariat management,
c. Coordinating the Committee’s members, result
administrative, HR, regulatory/compliances, corporate
of assessment/analysis/ recommendation from
communication, and oversight management in finance/
the Committee to support the supervisory and
internal control, strategic planning, as well as corporate
advisory duties of the Board of Commisisoners/
risks, especially for listed companies.
Supervisory Board;
d. As the liaison officer of the Board of
Duties and Responsibilities
Commisisoners/Supervisory Board with other
1. The Secretary of the Board of Commissioners/
party. .
Supervisory Board is responsible to assist the Board
of Commissioners /Supervisory Board in a form of:
3. For orderly administration and implementation of
a. Composing the agenda for the meetings of the
good corporate governance, the Secretariat of the
Board of Commisisoners and Board of Directors,
Board of Commisisoners/ Supervisory Board shall
preparing the meeting material including
assure the proper document filing of the activities as
briefing sheet for the Board of Commissioners/
stated in point (1).
Supervisory Board;
4. In performing its duties, Secretary of the Board
b. Preparing the minutes of Board of Commissioners/
of Commisisoners/Supervisory Board shall has
Supervisory Board Meeting in accordance with
the authority to coordinate and request the
the Company’s Article of Association.
information and or statements from the executives,
c. To administrate the Board of Commissioners /
employees and or related parties with regards to the
Supervisory Board documentation, incoming
implementation of duties and functions of the Board
letters, outgoing letters, minutes of meeting or
of Commisisoners.
other documents.
5. Secretary of the Board of Commisisoners shall
d. Formulate the draft of Working and Budget Plan
maintain confidentiality of information, data, and
of the Board of Commissioners.
documents which is obtained in performing its
e. Formulating the draft of the Board of
function and duties.
Commisisoners/ Supervisory Board Reports;  
f. Conducting other duties from the Board of
Commisisoners/Supervisory Board.  


2016 Duties/Activities Implementation Report:

PIC
NO ACTIVITIES OUTPUT
L S
1 Development of Annual Commissioners activity plans NED + Committee Annual Activity Plan
2 Development of annual report (Commissioners’ section) NED + Committee Annual Report
3 Development of supervisory report for submission to the NED GMS NED NED Report
4 Coordinated the committees’ reports as the supporting organs of the NED NED Meeting Material
Board of Commissioners
5 Organized the meetings/coordination with the Board s of Directors NED NED Meeting Agenda and
and its elements; and to provide opinions on topics of discussion, if Minutes of Meeting
required.
6 Provided the response on periodical reports of the Board of Dekom NED Minutes of Meeting and
Directors (quarterly, annualy), as well as at anytime that are required Letters
concerning corporate development, and to promptly report the duties
implementation results to the Shareholders.
7 Updates on the Company’s growth, both from internal  provided by NED NED Minutes of Meeting and
the Company as well as external information, from the media or other Letter
resources.
8 To give opinion and advise to GMS the on the appointment and Dekom KNR NR Recommendation
dismissal of the Board of Directors.
9 Developed the supervisory annual report of the Board of NED NED NED Report
Commissioners.
10 Developed the Governance mechanism, supervisory and advisory NED NED Report
functions, in line with the prevailing laws and based on the GCG
principles.
Profile of the Secretary of the Board of Commissioners
As the Head of the Secretariat of the Board of Commissioners (Sekdekom) of PT Semen

Indonesia (Persero) Tbk., From 15 November 2011 until now. Previously worked for PT
Telkom Indonesia (Persero) Tbk., As Secretary of the Board of Commissioners (2004-
2003), and as Country Rep. From Drive Robotic Inc., IT company based in Palo Alto,
SFO, USA (2009 to 2010). Early career started at ARCO Indonesia Oil & Gas Comp.,
(1986 - 1999), among others in Human Capital and Training, Project Support & Control,
Contracts Administration., Production Engineering. The year 2000 sd 2004 worked as
Team Leader of Institution Relationship International with IBRA, responsible for LOI
Reporting and liasson officer with IMF / WB.
Ninda E. Djohaeri
BSc educated from Richland College, Dallas, USA, and various trainings in Petroleum
Engineering, Petroleum Contracts, Leadership, Directorship and Oversight Management,
Regulatory / Compliances.
Annual Report 2016

335
CORPORATE SECRETARY The legal basis for the appointment of Corporate

Corporate Secretary is a structural position under Secretary in accordance with Decree of the Board
and directly responsible to the Board of Directors. of Directors No: DIR/P/0023/2012.
Corporate Secretary assists the Board of Directors in
conducting good relations between the Company as c. Competency Training and Development
a listed company with Regulators as well as capital In accordance with the provisions of Article 7 of
market suporting institutions, investors, public and POJK No. 35 / POJK.04 / 2014 in order to improve
stakeholders in general, including the information knowledge and understanding to assist the
management related to the corporate business execution of its duties, Corporate Secretary must
environment. follow education and / or training. Therefore, in the
last few years the Corporate Secretary has attended
the Training / Workshop / Seminar, among others as
follows:
Corporate Secretary ensures the fluency 1. Markplus Conference 2016

2. 17th Asia Cement Trade Summit
of communication between the Company 3. National Awareness of Lemhanas RI
and stakeholders as well as to ensure the 4. KPKU / IQA
accessibility of information disclosures to 5. Workshop on Economics, Leadership, and
the stakeholders that are suitable to the Human Resources
proper needs of stakeholders. 6. Cement Indonesia Global Leadership

Development Program
7. Workshop on GCG Improvement & Sharing
Discussion
8. Good Corporate Governance Workshop
a. Name of Corporate Secretary and Domicile
9. Journalism Training and Media Handling
10. Indonesia Macro Economy Seminar
11. Seminar on Socialization of Capital Market
Regulation
12. Indonesian Economic Outlook: Managing
Assets and Liabilities in Dynamic Markets
Corporate secretary is
13. Certified Investor Relations Training
held by
14. Achieving Greatness Seminar in a Turbulent
Agung Wiharto
World
Domicile in Gresik
15. 15. The 12th Annual Company Secretary
Conference
b. Education & Position History
Graduated with a Bachelor degree in Communication
d. Corporate Secretary Duties
Studies from Gadjah Mada University in 1993.
In the organizational structure of the Company,
Joined the Company in 1994. Became Head of
the Corporate Secretary is directly responsible
Documentation & Information Section (1996-2001),
to the President Director. In accordance to POJK
Head of Jakarta Representative Section (2001-
No. 35/POJK.04/2014 The Corporate Secretary is
2002), and Head of Investor Relations Bureau (2006-
appointed and dismissed based on the decision of
2012). He has served as Corporate Secretary since
the Board of Directors. On 1 2012, based on Board
2012 until now.
of Directors' decision no. DIR/P/0023/2012 has
decided to appoint Agung Wiharto as Corporate
Secretary.


President Director
Corporate Secretary
Corporate Secretariat & Corporate

Jakarta Office Bureau
Communication Bureau Protocol Bureau Activity Bureau
Organization Structure and Profile
Function
investors, analysts and other market participants; (iv)
The Corporate Secretary has the functions and
coordinate the submission of the Company's Annual
responsibilities in formulating the Company's policy,
Report and periodic Financial Reports to the capital
planning and communication control. The functions
market authorities and stock exchange authorities;
of the Corporate Secretary include among others (i)
(v) Coordinate The implementation of the Board of
ensuring fluent communication between the company
Directors 'meeting, the Board of Directors' meeting
and its stakeholders, (ii) ensuring the availability
with the Board of Commissioners and the General
of information which may be accessible by the
Meeting of Shareholders.
stakeholders based on stakeholders' reasonable needs,
(iii) ensuring that the Company fulfill the obligations
The function of the Corporate Secretary is implemented
related to the capital market and Shareholders in
in several functions as follows:
accordance with the prevailing provisions, (iv) fostering
• Compliance officer, to follow and provide input to
the company's identity and image to support the
the Board of Directors on the updates of applicable
improvement of the Company's value, (v) managing
laws and regulations and ensure that the Company
the Company's internal and external communications
complies with these regulations / regulations.
media and directing the subsidiaries in the undertaken
• Stakeholders relation, providing services to the
corporate communications activities.
Shareholders, Board of Commissioners, Board
of Directors and other stakeholders including but
In addition to the aforesaid functions, the Corporate
not limited to investors for information related
Secretary has the tasks of (i) controlling the
to the conditions in accordance with Articles of
management of communication strategies to build the
Association and prevailing laws and regulations.
Company’s image (ii) acting as a representative of the
This service demonstrates the application of the
Company and liaison officers between the Company
Company's transparency and disclosure principles
and all stakeholders in communicating the accurate
to Stakeholders.
and prompt communication of the Company's
• Liaison officer / contact person, acting as liaison
activities; (iii) Control the delivery of Company's
officer between the Company and Bapepam-LK,
performance information and corporate action to the
stock exchange, and the public.
capital market authorities, stock exchange authorities,
Annual Report 2016

337
• Business information, providing immediate ◊ disclosure of information to the public, including

information to the Stakeholders on actual events the availability of information on the Web Site of
that occurs in response to any positive and negative Issuer or Public Company;
rumor or issue. ◊ ensuring timely delivery of reports to the Financial
Services Authority;
◊ convene and make documentation of the General
Meeting of Shareholders;
Corporate Secretary conducts four ◊ to organization and make documentation of
functions, namely as a Compliance meetings of the Board of Directors and/ or the

Board of Commissioners; and
officer, stakeholder’s relations, liaison
◊ implement the orientation program of the
officer/contact person and business company for the Board of Directors and/ or the
information. Board of Commissioners.
• As a liaison between Issuer or Public Company with
shareholders, the Financial Services Authority, and
other stakeholders.
Duties and responsibilities • The Corporate Secretary is required to provide
The duties and responsibilities of the Corporate periodic report at least 1 (one) time in 1 (one) year
Secretary are described in Bapepam-LK Regulation on the implementation of the corporate secretary's
IX.14 on the establishment of the Corporate Secretary function to the Board of Directors and copied to the
as well as the Decree of the Minister of SOEs no. KEP- Board of Commissioners.
117/M-MBU/2002 on the Implementation of GCG
Practices on State-Owned Enterprises, and the latest Implementation of Duties in 2016
is the Regulation of the Financial Services Authority Activities being implemented by far include managing
No. 35/POJK.04/2014 dated December 8, 2014 on relationships with investors, public and internal relation,
Corporate Secretary of Issuers or Public Companies. addressing internal data, and providing input to the
Board of Directors of the Company to comply with the
The duties and responsibilities and obligations of the Capital Market Law and its implementing regulations,
Corporate Secretary are as follows: including the implementation of Governance in the
• To follow the development of the Capital Market, in Company.
particular to prevailing laws and regulations in the
Capital Market; As a corporate liaison with the capital market
• To provide input to the Board of Directors and community and other external parties with interest,
Board of Commissioners of the Issuers or Public the Corporate Secretary together with the Investor
Companies to comply with the provisions of laws Relations Section ensures the fulfillment of the
and regulations in the Capital Market; disclosure aspect as one of GCG principles to the
• To assist the Board of Directors and Board of capital market community, fostering relationships
Commissioners in the implementation of corporate with securities and bond investors as well as other
governance which includes: securities, analysts, Journalist, trustee, rating agency,
Self Regulatory Organization (SRO), and other related
financial communities.


To ensure that information disclosure is accurate In 2016, several activities related to the stakeholders
and recorded, processed, summarized and reported that have been undertaken by the Corporate Secretary
within a certain period of time, in accordance with the together with Investor Relations among others have
prevailing disclosure requirements and as guidance convened the AGMS; Attending every meeting of the
of the Corporate Secretary in carrying out his duties, Board of Commissioners and Board of Directors Meeting
the Company issues communication policies set forth and making minutes of the Board of Commissioners
in the GCG Guidelines and "External Communication Meeting and Board of Directors Meeting; Communicate
Procedures ". 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,
The Company strives to harmonize the analyst meeting, conference, exhibition and holding
communication with the stakeholders to press conference and teleconference.
continuously attain positive contribution
and provide added value Table of Activities of Information Deliverables to
Shareholders, Analysts, Investors and other
Stakeholders.
No Activities 2016
Communication and Disclosure of Information 1 Analyst & Investor Visit 135
In order to comply with regulations and improve 2 Conference 15
effective communication, the Company organizes 3 Public Expose 1
media gathering, press conference, media visit, public 4 Non Deal Roadshow 3
expose, conference call, investor gathering, analyst 5 Letters to the Regulators and Capital 44
meeting, non-deal roadshow, forum investors and Market Supervisory
press release distribution to communicate operational 6 Annual Report 1
development and The latest corporate financial 7 Press Release 74
condition. In addition, the Company also provides 8 Pers Conference 75
information for all employees through the Internal 9 Media Visit 8
Communication Program. This is done, to ensure 10 Media Gathering 15
equality in the dissemination of information to all
stakeholders.
Annual Report 2016

339
INTERNAL AUDIT UNIT

Appointment and Dismissal of Head of Internal Audit Group
The head of the Internal Audit Group is appointed and dismissed by the President Director upon the approval from the
Board of Commissioners. As of 31 December 2016 the Head of Internal Audit Group is held by Mr. Ginarko Isnubroto.
Profile of Internal Audit Group Head

Ginarko Isnubroto has been the Head of Internal Audit Group of the Company since 1 January 2015 in accordance
with the Decree of the Board of Directors No. 0056/2014.
Previously served as:
• GM Of Group Finance Department (2014),
• GM Of Group Finance Management (2013),
• VP Office Of The CEO Officer President Directorate (2013),
• VP Office Of The CEO Officer (2012), and
• VP Chief Finance Officer Finance Directorate (2011).
Started to join the Company since 1992 as Trainee in Accounting Section.
Graduated with an undergraduate degree in Accounting at Airlangga University in 1992 and then continued his
Master's Degree in Strategic Management in Faculty of Economics and Business at Gadjah Mada University in
2012. In addition to formal education, Ginarko Isnubroto has attended various certified and un-certified seminars
and trainings, to improve main competencies in finance and audit as well as other relevant areas. Ginarko Isnubroto
obtained Certified Risk Governance Professional (CRGP) in 2015.


Auditor Certification and Qualification • EC Council Network Security Administrator (ENSA),

As mandated by Bapepam regulations (now OJK), IPPF and
international audit standards and Internal Audit Charter, • Health and Safety Management System (SMK3).
the Company's auditors are required to constantly
update their knowledge and improve audit skills. In this In 2016, several internal auditors have undergone
regards, the Head of Internal Audit Group has taken the staging education and trainings for certification
policy to carry out the mandate by conducting auditor consists of PIA, QIA, CISA, and CEH certifications.
certification in accordance with its field of duty.
To meet the competence of internal auditors, in
The followings are the certifications being followed and relation to standard fulfillment, business development
have been obtained, several workshops, and important demands, and changes of system that affecting the
seminars that have been followed by auditors. operation of the Company, a continuous program of
Certification Total
Professional Internal Audit (PIA) 16
Qualified Internal Audit (QIA) 9
Certified Risk Management (CRM) 1
Certified Information System Audit (CISA) 2
Certified Risk Governance Proffesional (CRGP) 1
Certified Ethical Hacking (CEH) 1
EC Council Network Security Administrator (ENSA) 3
Certified Risk Management Officer (CRMO) 1
The Company is planning to improve the quality of competency improvement has been conducted for all
internal audit implementation through the improvement internal auditors at PT Semen Indonesia (Persero) Tbk.
of competence and qualification of internal auditors (SI) and SP and ST.
with professional certification which includes:
• Profesional Internal Auditor (PIA), Furthermore, through education and certification in
• Qualified Internal Auditor (QIA), the area of internal audit, the Company also seeks to
• Certified Risk Management (CRM), improve the competence of human resources in the
• Certified Internal Auditor (CIA), field of auditing through participation in workshops,
• Certified Information System Auditor (CISA), seminars and conferences held by external parties on
• Certified Control Self Assesment (CCSA), topics relevant to their work.
• Certified Risk Governance Professional (CRGP),
• Certified Ethical Hacking (CEH),
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Workshops / Seminars / Conferences / Training that have been followed during 2016 are as follows :
No Title Auditor
1 Operational Leadership Development Program (OLDP) Taufiq, Andi, Yusuf, Rudy, Rendra
2 Communication and Presentation Skill for Executive Erfanti
3 Auditing for Audit Committees Ginarko, Erfanti, Daniel
4 FKSPI: Role of Internal Auditor as Counterpart Teguh

FKSPI: Revaluation of Fixed Asset and Compensation
5 Taufiq
Accounting
6 SOPAC Conference 2016 On-Site Learning Ginarko, Daniel
7 Operational Audit Rudy
8 Management of Audit Duties Bany, Rendra, Rudy
9 Communication and Audit pshycology Budi, Rendra
10 Internal Audit for Managerial Level Deddy
11 Achievement Motivation Training Teguh

Assessment of Maturity Level of Risk Management
12 Erfanti, Shinta
Implementation
13 Tax Amnesty and Aset Revaluation Shinta, Taufiq, Dian
Ginarko, Daniel, Dian, Andi, Rahayu, Budi,
14 Customs Audit
Deddy, Taufiq
15 Seminar & Munas FKSPI 2016 Nenet, Rendra
16 Internal Audit National Seminar Deddy
17 Audit Report Writing Workshop Seluruh Personil Internal Audit Grup
18 Problem Solving & Decision Making Learning Taufiq
19 KPKU Workshop Daniel
20 PKBL National Workshop Daniel
21 Workshop Asean Corporate Governance Scorecard Deddy
Human Resource Development Internal Audit Group

The competency development of the Company’s auditor has been compiled according to the existing job group in the
Internal Audit Group to achieve the expected competencies by implementing the learning intent as follows:


Job Group Competency Requirement Learning Intent

Ka.IA, Kabiro, Kasi, Internal Auditor Certification Auditor professional certification in accordance with
Karu (PIA, QIA, CRM, CIA, CISA, CEH, Bapepam / IPPF / Internal Audit Charter standard and job
CRMA, CCSA, CRGP, ENSA, description
SMK3)
Kasi, Karu Marketing Audit Training To learn the development and audit governance on
marketing
Kasi, Karu Audit Training Procurement A thorough and systematic understanding of procurement
process of goods and services and prevailing regulations.
Kabiro, Kasi, Karu Customs Training § To understand prevailing customs rules
§ Able to act according to rules
§ Able to improve the Company’s import process
Kabiro, Kasi, Karu Company’s Business Process § To understand the business processes that run in the
Training Company
§ To facilitate data searching in the audit process
§ To speed up the root problem analysis
Kasi, Karu HR Audit Training To learn the development and audit on HR
Kasi, Karu Training on Audit of To understand the various techniques in transportation

Transportation Management management and distribution and audit procedures.
Kasi, Karu Taxes & Accounting Training To learn on taxes and lates accounting development
Kabiro, Kasi, Karu Project Audit Traning Application of project planning, scheduling, controlling,
and decision support concept and methodologies
Kabiro, Kasi, Karu Pelatihan Audit ICT To understand and mastering audit technique on ICT
business process
Kabiro, Kasi, Karu Training on Recent PSAK § To improve capabilities and competencies related to
the field of Financial Reporting.
§ Discuss the accounting issues faced by the Company
over the years and find a solution
Kabiro, Kasi, Karu IFRS Training § To understand the importance of IFRS application
§ To understand IFRS scope and principal concept
§ To understand accounting treatment in IFRS
§ To understand reporting and disclosure concept in
IFRS
§ To understand the difference between IFRS and PSAK
and PSAK convergence into IFRS
§ To master Financial Analysis and Interpretation in IFRS
and its comparison with PSAK
Kabiro, Kasi, Karu Enterprise Risk Management Extend knowledge of ERM implementation effectively
Training
Kasi, Karu Risk Based Audit Training § Insight for internal auditors through new paradigm and
practical steps in auditing
§ To understand details of all risk-based internal audit
process
§ To implement techniques used in testing and review the
audit paper works
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343
Job Group Competency Requirement Learning Intent

Kabiro, Kasi, Karu Training on Updating COSO § To understand the concept of internal control by using
COSO-based approach
§ To understand the concept of COSO that can improve
the performance of the audit department
§ To understand the COSO concept refers to Sarbanes -
Oxley
§ To learn about COSO based IC applications
ICoFR Training § To understand, control and prevent the occurrence of
misstatement in the financial statements
§ To understand techniques to define risks and internal
controls in business processes
§ To understand techniques in evaluating internal control
design and operation
§ To understand system review and test of control
Kabiro, Kasi, Karu Control Self Assessment Training Provides a general understanding on CSA and its benefits
to the company's management and staff, so that CSA
implementation in the organization can work well and is
fully supported by all the management and staff involved.
Kabiro, Kasi, Karu GRC Audit Training Provide an overview of how the audit implementation
process relates to the Company's governance activities.
Kabiro, Kasi, Karu Training on anti fraud system Provides an overview of activities related to fraud, fraud
audit detection, and designing systems to prevent fraud.
Kabiro, Kasi, Karu Financial Statement Fraud To understand the theory, and practical advice that can
help identify and stop fraud on the Financial Statement.
Kasi, Karu SAP Training § To understand business process in SAP system
§ To facilitate data search in audit process
Kasi, Karu Qlikview Training Tools to extract, process and display the data from Oracle
database
Kabiro, Kasi, Karu COBIT Enterprise IT Governance Implementation Guideline
Ka.IA, Kabiro, Kasi, National and International Provide insight into the development of the latest auditing
Karu Seminar of Internal Audit knowledge
Kabiro, Kasi, Karu Audit on IT Forensic Improve the ability of IT auditors in analyzing an event
while performing the examination
Kasi, Karu Effective Writing Provide required skills to write an effective audit report as
reference for management decision making.
Keterangan:
Ka.IA : Head of Internal Audit
Kabiro : Head of Bureau
Kasi : Head of Section
Karu : Head of Group


Duties and Responsibilities of Internal Audit Group Implementation of Group Audit Internal Tasks
Throughout 2016, the audit activities are conducted
In accordance with the Internal Audit Charter, the under the Advanced Risk Based Audit which includes
Internal Audit Group Unit responsible to assist the Operational Audits, Strategic Capex and Special Audit,
Company in achieving its objectives by: as follows:
• Developing and implementing the Annual Internal • Operational Audit, conducted discussion of several
Audit Work Plan includes examination and issues and follow-up actions, including Marketing
assessment of the efficiency and effectiveness of business processes, CSR, Accounting & Finance
finance, accounting, operations, human resources, (Analytical Review and ICoFR), Energy and Product
procurement, marketing, information technology Design, Production Performance, ICT, and Non-
and other activities. Cement Subsidiaries Audit.
• Provide suggestions for improvements and objective • Strategic Capex Audit, a joint audit conducted
information on activities being examined at all levels between the Internal Audit Group, Internal Audit SP
of management. and Internal Audit ST. During 2016, audits have been
• Monitoring, analyzing and reporting on the follow-up conducted on Indarung VI and Rembang Projects.
implementation of recommended improvement • Special Audit, carried out based on the instructions
• Conducting a review and / or audit of periodic from the President Director of SI and/ or the
financial statements of th Company. Commissioner with the specified audit area.
• Carry out duties as counterpart in coordinating with
external auditors and other supervisory institutions. All follow-up actions on the findings and
• Conduct analysis, assessment, recommendation, recommendations from the Internal Audit Group
consultation and convey information about the conducted by Auditee will be periodically monitored by
activity being reviewed. utilizing a web-based follow up monitoring application
which is developed in inhouse development by the
Audit conducted by the Internal Audit Group Unit aims Company through the ICT Service Department.
to:
a. Assist the management to achieve Company’s 2016 Audit Finding Results and Follow Up On Audit
objectives by conducting impartial valuation Results
and consultation activities to ensure effective Until the end of 2016, the Internal Audit Group
implementation of risk management, internal control has conducted an audit with a total of 1,217
systems, and corporate governance processes. recommendations. Recommendations that have
b. Provide rational, complete, accurate and timely been followed up are 1,017 recommendations, 55
recommendations to management to improve are in the process of implementation, and 145 will be
performance, achieve performance and prevent / implemented in 2017.
avoid possible irregularities.
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345
The completion progress of recommendations made by 26 audited

Departments as follows:
Total In Progress Open

Total Department Closed
Recommendation
BSC BSU TBS TT BT
26 1.217 1.017 52 1 2 1 144
Persentase: 83.57% 4.27% 0.08% 0.16% 0.08% 11.83%
Remarks:
Closed : Recommendations that have been followed up by auditee
BSC : On progress (Controlable).
BSU : On Progress (Uncontrolable)..
TBS : Have been followed up yet according to recommendation.
TT : Not able to be followed up.
BT : Have not been followed up.


COMPANY’S AUDITOR • Eny Indria (Partner In Charge)

• Xenia Ubhakti (Examiner)
The Public Accounting Firm independently performs
• Dahnu Teguh Adrianto (Examiner)
the fairness checking of transactions and financial
position of the Company. The designated Independent
As per Contract 0782/PG.04.03/733010/07.2016,
External Auditor shall not be under the control of the
dated 29 July 2016, the audit team of KAP Osman Bing
Board of Commissioners, the Board of Directors or any
Satriyo & Eny who audited the Annual Financial Report
other parties with any kind of interest.
of Partnership and Community Development Program
in the Company are:
The designated External Independent Auditor is
• Eny Indria (Partner In Charge)
responsible for submitting opinion on the position
• Xenia Ubhakti (Examiner)
and compliance of the audited consolidated financial
• Yusuf Karim (Examiner)
statements in accordance with prevailing general
accounting principles in Indonesia.
Table of Public Accountants appointed by PT Semen

Fiscal
Accountant Public Accountant Firm Contract Agreement Audit Fees Opinion
Year
0974/HK-06 “Fair without
2013 Deloitte KAP Osman Bing Satriyo & Eny Rp3,825,000,000
/50000733/07.2013 exception”
/50029553/05.2014 exception”
/733010/06.2015 exception”
0783/PG.04.03 “Fair without
/733010/07.2016 exception”
Company’s Accounting Firm Year 2016 Designated external auditor confirm its independency
The Annual General Meeting of Shareholders dated to the Company and responsible for conveying an
May 13, 2016 has decided to appoint Public Accounting independent opinion on the conformity of the audited
Firm (KAP) Osman Bing Satrio & Eny member firm of financial statements in accordance with prevailing
Deloitte Touche Tohmatsu Limited under license No. general accounting principles in Indonesia
KMK.758/KM.1/2007 to examine and state its opinion
on the financial statements of the Company for the year Period of Assignment, Duties and Honorarium
ended on 31 December 2016. In accordance with the prevailing provisions
(Government Regulation of the Republic of Indonesia
As per Contract 0783/PG.04.03/733010/07.2016 dated No. 20 of 2015 on Public Accountant Practices),
29 July 2016, the audit team of KAP Osman Bing the provision of audit services to historical financial
Satriyo & Eny who audited the Consolidated Financial information to an entity (including a SOEs) by a Public
Statements of the Company are: Accountant shall be limited to a maximum of 5 (five)
respective fiscal year. Such limitation also applies to
Public Accountants who are Associated Parties.
Annual Report 2016

347
Assignment to KAP Osman Bing Satrio & Eny is the In addition, the KAP Osman Bing Satriyo & Eny is
fourth year assignment to conduct a general audit of also appointed to perform General Audit services
the Company's financial statements. on the Partnership and Community Development
Program under the Contract between PT Semen
Based on the contract on Provision of General Audit Indonesia (Persero) Tbk. With Public Accountant
Services of Consolidated Financial Statements of PT Office Osman Bing Satrio & Eny number 0783/
Semen Indonesia (Persero) Tbk. For Fiscal Year 2016, PG.04.03/733010/07.2016 dated July 29, 2016 with the
the cost of the general audit services of the Consolidated following scope of work:
Financial Statements amounting Rp5.05 billion includes • Perform a general audit on the financial statements
the cost of Out of Pocket Expenses (OPE). Meanwhile, of PKBL of PT Semen Indonesia (Persero) Tbk.
the contract on the General Audit Services of Work on (The Company) for the fiscal year ended on 31
Partnership and Community Development Program December 2016 in accordance with the audit
of PT Semen Indonesia (Persero) Tbk. For Fiscal Year standards established by the Indonesian Institute of
2016, the cost of the General Audit's work on the Certified Public Accountants ("Indonesian standard
Partnership and Community Development Program auditing").
amounting to Rp755.78 million includes OPE fees. • Reviewing internal control structures including
IT-based information systems used by PKBL
Scope of Auditor Services and submitting proposals/ recommendations for
KAP Osman Bing Satrio & Eny is appointed under improvement of internal control structures in the
Contract between PT Semen Indonesia (Persero) Tbk. form of a Management Letter Letter.
With Public Accounting Firm Osman Bing Satrio & Eny • Conducting engagement to implement agreed
number 0783/PG.04.03/733010/07.2016 dated 29 procedures for Agreed Upon Procedures (PKBL)
July 2016 to perform audit and state its opinion on the by PT Semen Indonesia (Persero) Tbk. With audit
financial statements of the Company for the financial findings follow-up in 2015 and the application of
year ended on 31 December 2016 with the scope of certain aspects of:
work, among others: • Regulation of the Minister of State-Owned
• Provide general Audit Services to the Company's Enterprises which regulates the Partnership
Consolidated Financial Statements for the Year Program of State-Owned Enterprises with Small
Ended December 31, 2016 and performs a general Business and Community Development Program.
audit of the consolidated financial statements of • Circular Letter of the Minister of SOE Number
Thang Long Cement Joint Stock Company (IFRS SE-433/MBU/2003 dated 16 September 2003
Conversion) for purpose of consolidation of PT on Guidelines for Implementation of Partnership
Semen Indonesia (Persero) Tbk. Program of SOEs with Small Business and
• Submit an Independent Auditor's Report on the Community Development Program.
Company's Consolidated Financial Statements • Other rules and regulations relating to the
for the Fiscal Year ending 31 December 2016 implementation of current and future SOE
in Indonesian and English in which format and Partnership Program with Small Enterprises and
content are in accordance with prevailing reporting Community Development Programs as long as
standards, made in hard copy or soft copy. this work is still ongoing.
• Provide improvement recommendations for the
Company's internal control system in the form of
Management Letter.


Based on Document of Engagement between PT • To ensure the availability of correct, complete

Semen Indonesia (Persero) Tbk. With Public Accounting and timely financial and managerial informations,
Firm Osman Bing Satrio & Eny number 6600021864 particulary relevant informations required in decision
dated 16 May 2016, the Company appoints KAP makings.  
Osman Bing Satriyo & Eny to perform the Audit Agreed • To achieve efficiency and effectiveness in the
Upon Procedures (AUP) on Precautionary Practice Company’s business, covering the utilization of
Application Report (KPPK) PT Semen Indonesia assets and other resources in order to protect the
(Persero) Tbk. For Fiscal Year 2015 in accordance with Company from risk of loss.
Bank Indonesia Regulation (PBI) No. 16/22/PBI/2014 • To reduce the loss impacts, financial frauds and
concerning Reporting of Foreign Exchange Flows violations of prudential aspects.
and Reporting on Activities of Prudential Principles in
NonBank Corporate Foreign Debt Management. Operations and Financial Control
The Company implemented Operations and Financial
INTERNAL CONTROL AND Control System in tiers covering all elements of the
MONITORING SYSTEM Company. The internal control environment needs to
Internal Control and Monitoring System is a mechanism be managed in a diciplined, structured, high integrity
of monitoring process established by the Company at and aligned with the employee ethics and competency.
on going basis, in which the design and implementation
mostly are depended on the commitment of the Board The Board of Commissioners implemented the
of Commissioners, Board of Directors and Operational Operations and Financial Control System through
Management. The Company is highly commited to monitoring and advisory related with adequacy and
continously enhance the Internal Control System fairness process in formulating the financial statement
according to the Article 26 and 28 of the State-Owned as wella as well as risk management by prioritizing the
Enterprises (SOEs) Ministry Regulation No. PAER- principle of prudency. TheBoard of Commissioners was
01/2011 (in lieu of the Decree of SOEs Ministry No- assisted by Audit Commitee.
KEP-11/M- MBU/2002 regarding the Implementation of
Good Corporate Governance in SOEs). The Company The Board of Directors implemented internal control
is commited always improve the Internal Control system through:
System. The Company is determined to implement • Consistent implementation of the Company’s policy
the controlling activities in every functional level in the and procedures.
organization structure. • Compliance with the prevailing laws and regulations
related to the Company’s business, risk management,
The Company’s objectives to implement internal strategic plans, segregation of duties, delegation of
control and monitoring are: authorities, as well as proper accounting policy.
• To ensure the compliance of all prevailing regulations
and laws in all operations activities. Including in this
matter is provisions and regulations issued by the
government, capital market supervisory authorities,
as well as established internal policies, provisions
and regulations.  
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349
As such, the Board of Directors established an effective Internal Control over Financial Reporting
internal control system to secure the Company The Company has implemented an internal control
investments and assets. system related to the financial statements initiated since
2010, called Internal Control Over Financial Reporting
Evaluation on Effectiveness of Internal (ICoFR). In 2014, ICoFR has been designated as the
Control and Monitoring Company’s internal control system.
The Company continuously conducts the evaluation
on effectiveness of sustainable internal control and As the Company’s business grows, the internal
monitoring. In ensuring the reliability of financial control activities related to the financial statements
statements, the Company implemented Internal Control by 2015 shall be assessed and updated. By 2016, the
over Financial Reporting (ICoFR) Program. In addition, assessment is done and the results are still relatively
the Company constantly conducts the main risks the same as in 2015.
oversight and mitigation as part of the internal control
and monitoring activity, carried out by the operating Implementation of the updating of ICoFR activities is
units and Internal Audit Unit. done by using the COSO Framework 2013 approach,
which consists of five basic components, namely:
The Company had carried out the assessment on 1. Control Environment
effectiveness of internal control upon the financial 2. Risk Assessment
reporting as of 31 December 2015, applying the criteria 3. Control Activities
established by Internal Control-Integrated Framework 4. Information and Communication
published by Committee of Sponsoring Organizations 5. Monitoring Activity
of the Tradeway Commissions (“COSO”). Based on this
assessment, the Company’s management concluded In the preparation of ICoFR reporting, there are three
that the internal control of financial reporting of the main aspects that must be considered, namely:
Company had been performed effectively.
A Entity Level Control (ELC)
The Company had carried out the B Transactional Level Control (TLC)
assessment on effectiveness of internal
control upon the financial reporting C Information Technology General Control (TGC)
based on criteria established by

Internal Control-Integrated Framework The description of each aspect is as follows:
1. Entity Level Control
published by Committee of Sponsoring
The implementation of the entity level updates,
Organizations of the Tradeway the Company uses 17 principles that describe the
Commissions (“COSO”). The result details of the internal control framework (COSO
concluded that the internal control of Framework 2013).
financial reporting of the Company had 2. Transactional Level Control and IT General Control
been performed effectively. The implementation of updates on transactional
levels and information technology includes several
business process lines including:


a. Transaction level control Follow-up on the mapped control attribute becomes

• Revenue business process a test material for audit activity based on Risk Based
• Inventory & Production business processes Audit performed by Internal Audit.
• Spending business processes
• Fixed Assets business process Aside from being part of the internal control system, the
• Payroll & personality binsis process implementation and audit of ICoFR is an integral part
• Tax business process of the Company’s integrated GRC system. Therefore,
• Equity business processes the results of the ICoFR update are included in the
• Business processes Close books & financial Company’s system & infrastructure, namely the Web-
reporting based Governance, Risk & Compliance and Audit
Single Platform (E-GRCA Application) application. Thus,
b. IT General Control internal control activities, risk monitoring of financial
• Development and program change Business statements along with audits at Semen Indonesia
process. Group and Subsidiaries can be easily monitored in an
• Computer operation business process integrated manner.
• Access control business process
From the results of the implementation of business

process flow updates, it can be seen several
changes in the number of control attributes. The
control attributes are mapped into the risk control
table (Risk Control Matrix) associated with financial
reporting, with the following details:
Total Risks
Work Units Total Controlling Attributes
High Moderate Low
Accounting and Finance Department 157 51 102 4
Procurement Department 91 14 76 1
HR Department 45 6 38 1
Commerce Department 24 12 11 1
ICT Group Department 24 6 18
Distribution and Transportation
14 5 8 1
Department
Quality Assurance, HSE and Environment
9 3 6
Department
Engineering Department 4 4
Raw Material Production Department 2 2
R&D Product Application Department 2 1 1
HR System Development Department 2 2
Group Financial Department 1 1
Internal Audit 1 1
Total 376 100 268 8
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351
INTERNAL AUDIT
Internal Audit is an Internal Supervisory Unit of the Company whose duties are
to conduct assurance as well as independent and objective consultation, that
designed to create added value and improve the operations effectiveness of
the Company. Internal Audit assists the Company to achieve its goals, through
a systematic and regular approach, evaluate and improve the effectiveness of
risk management, control and progress upon the governance in the business
operation of the Company and its subsidiaries.
Internal Audit Charter
In performing its duties, Internal Audit refers to the Audit Charter that has been
ratified by the President Director and approved by Independent Commissioner
as the Head of Audit Committee on 9 June 2015. In addition to its functions
as work guidelines, Internal Audit Charter also acted in strengthening the roles
and responsibilities, and the basic presence and implementation of Internal
Audit duties. Thereby, the Internal Audit Charter shall be disseminated to all
employees and related parties, in order to develop mutual understanding and
good teamwork, in realizing the Company’s Vision, Mission and Goals.
The content of Internal Audit Charter includes:

No Content Description Subjects
1 Chapter I Internal Audit Discuss the background, vision and mission, also the objectives
of the charter
2 Chapter II Internal Audit Describe the definition and objective, structure and position,
authority, scope of duties of Internal Audit, roles and
responsibilities, auditor requirement and communications
3 Chapter III Standard of Operations As the references that shall be met by the auditors who perform
audit, contains the professional requirement and compentencies
of Internal Audit, internal control, management of Internal Audit,
follow up implementation and oversight.
4 Chapter IV Code of Conduct As the disciplinary guidance for the internal auditors to act
exceeding the regulatory references, and contains auditor
standard of conducts.
5 Chapter V Synergy of Internal Audit A division of strategic functions that must be carried by the
Functions Company as HoldCo and operational functions that must be
implemented by OpCo in accordance with blueprint strategic
holding
6 Chapter VI Closure The enforcement date of the charter


Internal Audit Activities are part of the Corporate 2. Objectivity

Governance process that provides reasonable a. Will not participate in any activity or relationship
assurance of internal control systems, risk management, that may interfere with, or deem interrupt,
compliance with rules and regulations, as well as the the appropriateness of the assessment. This
accuracy and reliability of financial statement. So as to participation includes activities or relationships
provide added value to the Company and improve the that may conflict with the interests of the
operational effectiveness of the organization. organization.
b.
The Internal Audit in carrying out its activities refers c. Will not accept anything that may interfere,
to the International Professional Practices Framework or deemded considered to interfere with the
(IPPF) standard published by The Institute of Internal professionalism of the assessment.
Auditors. Alignment of Internal Audit activities with d. Must disclose all known material facts, if not
IPPF is periodically tested by independent institutions disclosed, may interfere with the reporting of
as well as by the Company's Internal. The alignment activities being examined.
test of internal audit activities with IPPF covers the 3. Confidentiality
business activities of the Company and its subsidiaries a. Must be careful in the use and protection of
through "Quality Assurance Review". information obtained in the task.
b. Will not use the information for personal interest
Auditor Code of Conduct or which in any way would be contrary to
Internal Auditor in performing its functions and duties, statutory provisions or prejudice to the legitimate
shall refer to the applicable Code of Conduct in general. and ethical objectives of the organization.
Internal Audit of The Company also has an Auditor Code 4. Competence
of Ethics as stipulates in the Internal Audit Charter: a. It will only provide the service as long as it has
1. Integrity the necessary knowledge, skills and experience.
a. Must perform it task with honesty, diligence, b. Must perform internal audit in accordance with
and responsibility. IPPF.
b. Must comply with law and make disclosures c. Will continuously improve the capability and
as required by the provisions of legislation and effectiveness and quality of service.
profession.
c. Must not engage in any illegal activity, or The position of the Group Internal Audit Work
engage in embarrassing acts for the internal or Unit
organizational audit profession. To ensure its independency, the position of the Internal
d. Must contribute to the legitimate and ethical Audit Group on the Company's organizational structure
objectives of the organization. lies at the level prescribed in such a way, to ensure
the independent exercise of its authority, free from the
intervention of the other party.
The structure of the Internal Audit Group within the

organization of the Company is illustrated in the
following chart.
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353
ORGANIZATION STRUCTURE
INTERNAL AUDIT GROUP
President Director
INDPENDENT
COMMISSIONER
AUDIT COMMITTEE
INTERNAL AUDIT LEGAL & GRC

DEPARTMENT HEAD
GROUP DEPARTMENT
AUDIT AUDIT AUDIT

ICT AUDIT
ENGINEERING ENGINEERING ENGINEERING
BUREAU
BUREAU BUREAU BUREAU
Head of Internal Audit Group and Number of Internal Audit Officers of the Group
The Internal Audit Unit of the Group is headed by a 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, 2016 is as
follows:
Internal Audit Group
Group Group Group

Accounting & Commercial Audit Engineering Audit ICT Audit Bureau
Financial Audit Bureau Bureau
Bureau Auditor: 2 persons
Auditor: 4 persons Auditor: 3 persons Auditor: 5 persons
The above structure of Internal Audit Group (other than the ICT Audit Bureau) is also applied in the Operating Company
(PT Semen Padang (SP) and PT Semen Tonasa (ST)).
The total members of internal auditors in 2016 are:

HEAD OF
No CHANGES HEAD AUDITORS IA STAFFS TOTAL
BUREAU
1 PT Semen Indonesia (Persero) 1 2 12 2 17
2 PT Semen Padang 1 3 20 2 26
3 PT Semen Tonasa 1 3 10 1 15
TOTAL 58


RISK MANAGEMENT Ø Stage of Preparation (2005 - 2008)

a. Company’s Risk Management System The preparation phase is carried out to prepare
the infrastructure needed for the implementation
of risk management implemented within 3 years.
Improve the quality of risk Ø Implementation Stage (2009 - 2012)

management to recognize and The system that has been designed and analyzed
mitigate the impact of risks while in the next preparation stage is implemented at
the implementation stage.
recognizing and exploiting growth
opportunities from in depth risk Ø Development Stage (2013 - 2017)
mitigation efforts to support the The Company develops the structures and
development of the Company’s systems that have been implemented to test the
consistency and sustainability of the Company's
competitiveness to address increased targeted system completed by 2016, the
competition levels and ensure long- activities undertaken include:
term quality of business growth Implementation of Risk Based Audit;
• Integration of risk management with policies
and procedures owned by the Company;
• Preparation of evaluation guidelines for
In realizing the various business development
Risk Maturity Level of the Company for self
programs as well as conducting routine business
assessment;
activities to actualize the company's vision while
• Implement Value at Risk;
maintaining good corporate governance practices,
• Implementation of Internal Control of
the Company is encountered with various risks as
Financial Reporting (ICOFR);
challenges that must be overcome which in the
• Implementation of Key Risk Indicator (KRI)
process can offer opportunities for business growth.
and Key Control Indicator (KCI) for Key
Performance Indicator (KPI);
To overcome such risks, as well as to identify the
• Measurement of Risk Maturity Level by
attached business development opportunities,
independent institutions;
assurance on the realization of the various
• Implementation of ISO 31000 framework;
strategic plans of the Company and ensure
• Implementation of Integrated Governance,
business continuity, the Company, since 2005, has
Risk & Compliance (Integrated GRC);
implemented Enterprise Wide Risk Management
• Initiation of implementation of Corporate
(EWRM) that is integrated throughout the company's
Loss Event Database;
management system. EWRM has been consistently
• Initiation of Corporate Risk Modeling
and continuously applied to all business processes
implementation;
and strategic and operational decision making.
• Website Development Governance, Risk
& Compliance Single Platform (E-GRC
- The risk management of the Company is built
Application);
through several stages:
• Initiation of Business Continuity Management
(BCM) implementation.
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355
Integrated Governance, Risk & Compliance commitment to the professional and responsible
(Integrated GRC) management of the company and becomes the basis for
More complex activities of the companies operating in the development of Integrated GRC systems, structures
various regions in the country and abroad as a result and infrastructure applicable to Semen Indonesia Group
of the realization of the planned of development and and Subsidiaries. With integrated governance, risk,
expansion, has exposed the Company to increasingly and compliance (GRC), the management of assurance
diverse challenges. These challenges include: an functions is implemented more effectively and
appropriate investment decision-making process, efficiently and is supported by a system of monitoring
supervision of the implementation of investment and reporting its implementation throughout the Semen
activities, the management of Subsidiaries, changes Indonesia Group and Subsidiaries.
in the business environment, and compliance with
applicable laws and regulations, both within the country Integrated GRC Main Framework and
and overseas operating units. These challenges must Components
be understood and managed effectively so that the The key components within the Company's Integrated
Company can realize its objectives and maintain GRC framework are:
optimum and sustainable growth. • Corporate Values and Culture,
• Corporate Governance,
In relation to the above, the Company develops • Enterprise Risk Management (ERM),
professional and responsible corporate governance • Compliance Management System, and
practices through the implementation of GCG, • Integration Enabler: GRC single-platform.
Enterprise Risk Management (ERM), and Corporate
Compliation System (CCS) in an integrated manner. The relation and processes among the five integrated
The Company sets out the Policy and Guidelines for GRC components are shown in Figure 1 as follows:
the Implementation of Integrated GRC as a form of
I. SIG Values and Culture
II. Corporate C Group & Board Governance – Principles, Manual, Charters, Structures
Governance Strategic Planning, and Report Assurance, Certification & Audit
III. Enterprise Risk Target Determination, Strategic Group Portfolio & Group KPI-KRI & KPI-KRI & Business
Management Decision Making and Corporate Investment Risk OPRISK Integrated Integrated Continuity
Strategy Formulation Management Management SM SM Management
Documentation
IV. Compliance Compliance with Laws
HSE Standard and Registry of the
ICOFR & CSA KCI and Regulations
Management System Implementation Company’s obligation
and compliance
Information and Communication Technology (ICT) – Single – GRC
V. Integration
Platform Across Group
Enabler


SUPERVISORY AND CONTROL empowering the Commissioner’s Committees,
OF INTEGRATED GRC External Auditors, and GRC functions (Internal

Audit, Risk Management and Compliance).
Integrated GRC System off The Company embraces the
concept of integrated involvement at all lines with the
Risk Management Framework
competencies and human capital SIG integrity. This is
The Company has transformed the risk management
because the performance, growth, and sustainability of
standard which previously used the AS / NZS standard
the Company are determined by its the human capital.
to ISO 31000 standard. By the application of ISO 31000
Three Lines of Defense are pivoted to the President
and supported by the House of Risk of the Company,
Director as the one with he highest responsibility for
both become core infrastructure in the implementation
the Integrated daily management can be mandated to
of risk management of the Company.
the designated Director.
C - Level Officers GRC Excutives dan Risk &

Compliance Managers Unit-unit kerja
1 Chief Risk & Complience

Officer Corporate Risk & Compliance Officer
Fungsi GRC
2
3 BOC
CEO (GRC Champion) Chief Audit
Officer Fungsi Internal Audit
Refers to the above Figure 2, the supervisory and ISO 31000 is an international standard used in risk
control lines of GRC are as follows: management implementation guidelines published
1. The foremost line is the owner of the business by the International Organization for Standardization
process owner. (ISO) and is not developed for certification purposes.
2. The mid line is the assurance functions of ISO 31000 being issued on 13 November 2009, is a
governance, risk management and compliance. standard development of AS / NZS 4360: 2004 issued
3. The last line shall be the functions of the highest by Standard Australia.
responsible persons in the application of GRC,
consisting of the Internal Audit function; CEO as GRC
Champion who acts as the highest responsible for
the implementation of GRC; and BOC which plays
an important role for the effectiveness of oversight
and monitoring of the Company's operations by
Annual Report 2016

357
As a guideline for the implementation of risk implementation of risk management as well as

management, the Company developed an internal facilitates and communicates all activities related to the
system and frame of reference namely the "House of implementation of risk management, and others.
Risk Cement Indonesia" (HORSI). HORSI governs all
risk management infrastructure owned by the Company In risk management, a close appears in relationship
so that the implementation of the Company's risk between GRC Unit as Corporate Risk Manager,
management is aligned and supports the Company's business process owner as Risk Coordinator, and
performance. Internal Audit Unit as Risk Control. Risk management
Risk
Management
Information System (IT)
Risk Based Audit Risk Management Evaluation
Risk Risk
Assessment Mitigation
Monitoring &
Reporting
Review
Organization Risk Evaluation

Risk Policy Risk Procedure
Structure Guideline
House of Risk PT Semen Indonesia (Persero) Tbk
Organizational Structure of Risk Management is the responsibility of the business process owner,
The Company has established a Governance, Risk & hence all business process owners are responsible for
Compliance Unit ("GRC Unit") that acts as coordinator risk, risk control, and risk / mitigation management. The
in the implementation of risk management. The Unit company appoints a risk officer across all business
designs among others a risk management system, processes that are responsible for managing risk and
the framework & road map for the development performing risk monitoring.
and improvement of infrastructure required for the


Risk Assessment, Key Risk Indicator, dan Key b. Assessment and Mitigation of High Level
Control Indicator Corporate Risk
Periodically, business process owners perform risk The Company regularly conducts annual risk
assessment and in 2012 the risk assessment has been assessments. In 2016, the Company has assessed
equipped with Key Risk Indicator (KRI) and Key Control the business processes and KPI of the Company
Indicator (KCI) which are used to detect potential risks and has identified 321 (three hundred and twenty-
in achieving the Key Performance Indicator (KPI) of the one) significant risks in all departments. From
Company. Therefore the KRI can be used as a leading the identified significant risks, the Company sets
indicator of KPI achievement. It is expected that the a high level corporate risk to anticipate the most
identification of KRI and KCI are able to improve the significant potential risk as obstacles to achieve
assurance of achieving the Company’s target (KPI) as the Company's objectives.
the early warning of potential risk indicators as well as
the control measures have been done. To transform the potential risks into opportunities
that can generate profitabilities for the Company,
The risk assessment process which is undertaken by the Company has identified several mitigation
the business process owner / risk owner has been and measures for all risks, especially for high level
determined to be one of the mandatory KPIs (KPI corporate risk in order to minimize the possibility
generic), which is quarterly evaluated and monitored. and impact of risk occurrence.
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 The Company Has Identified 321
risk assessment is assessed on the effectiveness of the significant Risk and implemented risk
control and treatment (risk mitigation) by the Internal
Mitigation for High Corporate Risk
Audit Unit. In addition, the result of risk assessment is
also used as input in conducting risk-based audit.
category
Several identified risks under the category of “ High

Level Category Risk” which have been mitigated
in 2016 covers the risk as per below table.
Annual Report 2016

359
Name of RIsks Risk Indicator Mitigation

Risk of Market Share - Slowing of Economic Condition - Strengthening mass communication with
strategies according to Brand Brandy
- New entrants with aggressive strategy Development study results
- Decrement of Customer Loyalty and - Perform intelligence functions to new market

Satisfaction potential
- 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 (specially - Ensure 100% minimum supply according
from China) to main market target with supply chain
management implementation
- More active competitor’s activities and build
new mill and grinding plant - To penetrate new potential market
(extensification) and intensification of
existing market
Risk of Raw Material - Obstacles in the mastery of new plant - Monitoring on each stage of new plant
construction materials in Rembang construction
- Increased utility of production equipment - Cooperation with strategic partners in land

tenure
- Obstacles in land acquisition
- Tenure of land through subsidiaries /
- Limitations of supply and quality of raw affiliates
materials
- Routine monitoring of relevant agencies on
- Constraints of clay licensing the progress of licensing and formulating an
acceleration strategy
Risk of Capex Management - Development of company’s related factory / - Take a social and environmental approach
new packing plant before capex projects
- Rejection by NGO and communities related - Collaborate (joint venture) with local
to the establishment of new plant company
Risk of Environment and - The public concerns on environmental - Planning and realization of quality and
Social impacts of the Company's operations and targeted social responsibility programs in
the establishment of a cement plant. accordance with local wisdom.
- Exceeded BML measurement indicator. - Approach to community and community

leaders.
- Application of SHE management and proper

environment.
Risk of Research and - The emergence of new product types or - Perform market research to monitor the
Development product derivatives that have not been sales of cement product and its derivatives.
reviewed by the Company
- Cooperate with education institution and
other R&D institutions


Name of RIsks Risk Indicator Mitigation

Risk of HR - Lack of human resource productivity. - Implementation of HCMP in improving
employee competency.
- Dissatisfaction over career path.
- Provision of competency-based
- Increased strategic projects that require remuneration.
highly competent personnel
- Implementation of Knowledge Management.
- Conduct MPP and policies in accordance

with the increasing HR needs
Risk of Damaged on Main - Unstable production output - Routine Maintenance.
Production Machine/
Equipment - Overheating - Setting optimization of production pattern.
- Poor production process - Operation synergy between opcos to

get best practice of production and
- Production exceeds the design capacity as maintenance.
previously specified
Risk of Distribution and - Extreme weather disturbance - Optimize the packing plant utilization.
Transportation
- Limited transportation facilities - Optimization of the distribution and
transportation synergies of the Group.
Risk of Environmental - Decrease in production quality - Optimizing the HSE Management through
Pollution environmental monitoring programs,
- The emergence of corporate environmental environmental governance programs, and
issues in social media resource conservation programs
- Implementation of Clean Development

Mechanism
Corporate Image - Increased negative corporate issues in social - Implementing Good Corporate Governance,
media Risk Management, & Compliance
- The existence of lawsuits against corporate - Optimize the CSR program

activities
Risk of Legal and Compliance - Rejection and turmoil in surrounding - Carry out business activities in accordance
(lawsuit potential) communities and related NGOs with applicable laws and regulations.
- - Approach to community, leaders, DPDR, etc.

Risk of Financial (Funding - Fluctuation of Rupiah against forex - Banking/ well performed creditors/ healthy.
and Liquidation) exchange
- Hedging implemtation.
- Conducting group financial management

synergies (Cash Pooling, Notional Pooling).
Risk of Social and - Concerns on environmental impacts of the - Application and of SHE management proper
Environment Company's operations. environment.
- Exceeding BML measurement indicator. - Planning and realization of quality and

targeted social responsibility programs.
Annual Report 2016

361
Through various sustainable actions of mitigation and machinery to improve the efficiency and
towards main risks under the category of high utilization of production equipement, hence
risk , in 2015 The Company succeed to manage high process of production and environmental
and lowering the risk category from extreme to friendly can be achieved.
medium or manageable risk as per below table :
No Name of Risks Risk Rating 2015 Risk Rating 2016

1 Raw Material Risk Medium Medium
2 Production Capacity Risk Medium Low
3 Business Competition Risk High High
4 Customer Satisfaction and Loyatly RIsk Medium Medium
5 Damaged on main Production machine/ equipment Risk Medium Low
6 Information Technology Risk High Medium
7 Distribution and transportation Risk Medium Medium
8 Foreign exchange Risk Medium Low
9 HR Risk Medium Medium
10 Social and environmental Risk Medium Medium
As illustrated on the table of the Company’s High • Product Capacity Risk

Risks in 2015 and 2016, the Company succeeded The Company undertakes mitigation
in mitigating high risks category to become medium measures to overcome the production
or manageable risks and medium risk category capacity risk through organic and non-organic
into low risk that can be waived by mitigation growth. The organic growth is implemented
programs as a rotine internal control. The risks and through aqcusition of a cement company in
its mitigation programs are as follows: Vietnam (Tang Long Cement Company). The
• Damage on Main Machine/ Equipment. non-organic growth is implemented through
The Company managed to implement building projects such as Tuban IV, Tonasa
mitigation measures to overcome the risk V, Pabrik Rembang, Grinding Plant Cigading
of damage on main Machine/Equipment by and Pabrik Indarung VI. The Company also
in increasing the synergy between Opcos in optimize product to enhace the utilization of
Tuban, Padang, and Tonasa. Through several production facilities and increase production
operating mills with similar production issues, output.
the Company is able to identify and design
effective maintenance acivities and able for
sharing metode to achieve the best operational
excellence. The synergy is also executed
with the Company’s competitor through
Indonesian Cement Association to jointly
review the technology in production process


Currenty, the Compay is in the process of Given the importance of risk management
building the new factory in Sumatera and Nusa in preventing the Company from its impact,
Tenggara Timer with total capacity of 5 million management and all related elements will further
tonn per year. The Company also implements enhance its efforts to make risk management a
program of upgrading the existing facilities culture in the implementation of all activities.
to improve the yield of current production
capacity. The Company always review any
opportunity to develop the capacity through c. Evaluation on the Effectiveness of Risk
non-organic growth within or outside the Management Maturity (Risk Management
country. Maturity Level)
The Company periodically evaluates risk
• Risiko Teknologi Informasi management maturity level by using the US: NZS
Mitigation measures that has been criteria, through refinement and improvement
successfully done by the Company is of implementation quality of risk management.
through differentiation by establishing of a The evaluation was conducted on seven
subsidiary in the area of IT, namely PT Sinergi criteria consisting of context determination,
Informatika Cement Indonesia (PT SISI). risk identification, risk analysis and evaluation,
With the existence of subsidiary in the area risk management, risk control, information and
of information technology, the company can communication, and monitoring and review.
develop and obtain the latest technology
that can be utilize to improve the company’s Evaluation of the effectiveness of risk
performance with the help of applications management implementation provides a range
based on information technology that can of assessment results from scores 1 to 5,
be accessed not only for the optimization of starting from initial (level 1), repeatable (level
internal business processes but also company 2), defined (level 3), managed (level 4), and
partners and customers. optimized (level 5).
• Foreign Exchange Risk From the evaluation result by using document

The Company has successfully undertaken verification method, questionnaires, and also
mitigation measures to address foreign interview with related parties, the Company
exchange risk with hedging policies on obtained maturity level score of 3,90 for risk
strategic projects as well as related business management implementation in fiscal year 2015.
processes and affected by the value of
foreign exchange. In addition, optimization of The increment of score from 3.70 (in 2014) to
cash pooling and notional pooling activities 3.90 indicates that risk management conducted
continues to improve the Company's financial by the Company is more optimal and always
capability improved. Various work programs which will be
done in recent and future years, it is expected
that the Company will get the value of maturity
level (maturity level) which continues to improve.
Annual Report 2016

363
Maturity Values
No MR Implementation Components
2009 2011 2013 2015
1. Context Implementation 3.71 4.01 4.24 4.6
2. Risk Identification 4.08 3.3 3.75 3.8
3. Risk Analyis 3.84 3.12 3.75 4.4
4. Risk Evaluation 3.84 4.16 3.75 3.1
5. Risk Handling 3.20 3.12 3.21 4.7
6. Communication and Consultation 3.22 3.02 2.86 3.5
7. Review and Monitoring 1.75 3.75 3.54 3.3
Total Maturity Score 3.39 3.48 3.70 3.90
The Company continuously strives to improve

and develop a risk management system, with
LITIGATION
The Group faces the following legal demands:
various plans / work programs to be undertaken
b. On October 24, 2008, Labor Union (LU) filed a
in 2017. Therefore, it is expected that in the
lawsuit. No.99 / Pdt.G / 2008PN.PDG against PT
next period the Company will get an increased
Berkala International (PT BI) at Padang District
maturity level.
Court (PN Padang) due to the failure of PT BI to fulfill
its obligations to hand over coal in 2008 pursuant
Asean Risk Award 2016
to the sale and purchase agreement between
In addition to following the Risk Maturity
SP and PT BI. In its lawsuit, SP also submitted a
Level Assessment as mentioned above, the
request to revoke the coal sale agreement to PN
Company in 2016 also participated in the Asean
Padang.
Risk Award 2016, organized by Enterprise Risk
Management Academy (ERMA) and CRMS
With regard to the Domestic Letters of Credit
Indonesia. There are eight (8) categories
(SKBDN) issued and accepted by Bank Mandiri
consisting of ASEAN GRC Award, ASEAN Risk
(Issuer Bank) in connection with the sale and
Champion, Risk Innovation, Risk Technology,
purchase agreement, SP has applied to PN Padang
Public Initiative, Risk Educator, Public Risk,
to prohibit Bank Mandiri, PT BI, PT Eksplorasi
and Risk Advocate. The Company successfully
Mantap Indonesia (as beneficiary), PT Maybank
nominated for ASEAN Risk Champion and
Indocorp (as the correspondent bank) (Maybank)
ASEAN GRC Award.
to disburse / claim / approve / debit SP's account
at Bank Mandiri until the decision in this case has
permanent legal power.


On 17 April 2009, PN Padang issued a decision by the SP on May 23, 2012. On review June 20,
granting the provision of the provision and the SP 2012 SP filed a Count A subsequent Memory has
lawsuit as follows: been delegated by the Padang District Court to the
• Prohibits PT Bank Indonesia, Bank Mandiri, Supreme Court based on letter No.W3.P1 / 4100 /
PT Exploration Mantap Indonesia, Maybank HK.02 / VI / 2012, on 27 June 2012.
Indocorp or any other party as well as their
proxies to disburse / claim / approve / debit On March 14, 2013, the Supreme Court, at the
SP accounts or other accounts available at level of Review, issued a Decree No.527 / PK / Pdt
Bank Mandiri, on the basis of the submission / 2012 which annulled all previous judgments and
of SKBDN up to The decision in this case has adjudicated itself by granting partial application of
a permanent legal force. SP, among others: declaring BI and PT Exploration
• Revoke the Sale and Purchase Agreement of Steady Indonesia Wan achievement, and declared
coal between SP and PT BI, together with all void the sale and purchase agreement between
legal consequences BI and SP and imposed a SKBDN issued in the
• To declare a decree of SKBDN issued in framework of the Sale and Purchase of coal
connection with the Sales and Purchase agreement between SP and BI.
Agreement between SP and PT BI, together
with all legal consequences. SP has been reserved in the consolidated financial
statements of December 31, 2008 potential losses
Subsequent to the decision of PN Padang, Bank that may arise from acceptance of SKBDN by
Mandiri and Maybank appealed to the High Court Bank Mandiri amounting to Rp23,760,000. In 2009
of West Sumatra. On 27 January 2010 has been the SP with good intent has placed the funds in PT
issued a High Court of West Sumatra Decision Bank Mandiri (Persero) Tbk worth Rp30.000.000
which strengthens the decision of PN Padang. which is required to settle liability until there is a
decision with permanent legal force. On January
On July 8, 2010, SP has filed a counter appeal 30, 2014, SP made a payment of Rp25.903.089.
of cassation and has issued a decision of appeal
from the Supreme Court. 217 K / PDT / 2011 on 20 On 4 November 2014 the Central Jakarta District
May, 2011 which won SP and rejected the appeal Court issued a ruling which granted the SP
request from PT Bank Maybank Indocorp and PT litigation as follows:
Bank Mandiri (Persero) Tbk. Relass on the decision a. Stating PT Berkala Internasional and PT
of the cassation was received on 10 November Eksplorasi Mantap International have
2011. committed a lawful act (onrechtmatigdaad) as
regulated in article 1365 Civil Code.
With respect to the Supreme Court's decision, b. Decides that PT Berkala Internasional and PT
Bank Mandiri has filed a Judicial Review (PK) to Eksplorasi Mantap International compensate
the Supreme Court in which the relay submission SP for the joint liability of Rp26,050,404 in
review submitted by Bank Mandiri was received cash and all at once.
Annual Report 2016

365
Subsequent to the decision of the Central Jakarta As of the date of completion of these consolidated
District Court, PT Berkala Internasional and PT financial statements, the Plaintiffs have not filed
Eksplorasi Mantap International appealed to the a Cassation lawsuit in the Supreme Court so that
Jakarta High Court as stated in the Deed of Appeal the Company's Environmental License Law has
Number 172/SRT.PDT.BDG/2014/PN.JKT.PST jo permanent legal force (Inkracht van Gewijsde).
number 49/PDT.G/2014/PN.JKT.PST dated 17
November 2014. On May 4, 2016, the Plaintiffs filed a Judicial
Review (PK) lawsuit arguing it had found a novum
In April 2015, SP filed a counter appeal against the (new evidence). For the efforts of the PK Law, the
Jakarta High Court. Until the financial statements Governor of Central Java and Cement Indonesia
are issued there has been no decision on the case has filed a PK Memory Counter on 2 June 2016.
and still awaiting appeal process in Jakarta High This PK's remedy process has been processed in
Court. the Supreme Court and has been terminated on
October 5, 2016, but the Company has officially
b. On 1 September 2014, Joko Priyanto and 6 (six) accepted the PK Decision November 17, 2016.
residents of Rembang and WALHI filed a lawsuit On the verdict of the PK, the Company undertakes
of the state to the Governor of Central Java as several further steps, among others, by altering
Defendant, on the Environmental Permit of the the Environmental Permit of the Company that
Establishment of Cement Factory in Rembang accommodates the Judges' Judgment of Judges
owned by the Company. 660/177 dated June 7, of the Judicial Commission, so that the Rembang
2012 issued by the Governor of Central Java at the Plant can continue to operate.
State Administrative Court of Semarang ("PTUN
Semarang"), with the registration number of the ADMINISTRATIVE SANCTIONS
case 064/G/2014/PTUN Semarang. During 2016, the Company does not get any sanction
from the Capital Market authorities or other authorities.
With respect to the state administrative lawsuit,
the Company as an interested party has formally CODE OF CONDUCT
entered into the parties as Intervening Defendant a. Principal Content of the Code.
II. Ethical Guidelines.
As a commitment to carry out its business activities
On April 16, 2015, PTUN Semarang rejected to create long term corporate value, the Company
WALHI's lawsuit and decided that the develops and establishes ethical guidelines for
Environmental Permit for the establishment of the all employes as set forth in the Company's Code
Company's Cement Plant in Rembang remains of Conduct document. The Code of Conduct
valid and legal. is a commitment consisting of the Company's
business ethics and the behavioral ethics of every
Based on the PTUN Semarang Decision, WALHI employee in Company which is structured to
filed an appeal to the State Administrative High influence, shape, organize and conduct behavioral
Court of Surabaya (PT TUN Surabaya) and on conformity based on ethical sensibility, ethical
November 3, 2015 PT TUN Surabaya issued reasoning and ethical conduct so as to achieve
a Decision on Case No. 135 which essentially consistent output in accordance with the work
strengthen the Verdict in PTUN Semarang. culture of the company in achieving its vision and
mission. The Code of Conduct applies and binds
every employee.


Every employee of the Company shall sign b. Socialization of the Dissemination of Code of
a statement of compliance with the Code of Ethics and Enforcement Efforts.
Conduct. Similar to parties with interest to the The Company is committed to disseminate,
Company such as partners, suppliers and others internalize, and monitor the Company's Code
are required to respect and implement the Code of of Conduct to all employees of the Company as
Ethics while interacting with the Company. well as external parties of the Company with the
aim that each individual understands and able to
The Principles of the Company's Code of implement the Guidelines.
Conduct which must be met by the Company's
Employees include: (a) Integrity and Commitment The socialization, internalization and
of Employees; (B) Employment Relations related to implementation of the Code of Conduct are
Work Environment which are Free of Discrimination, conducted effectively and thoroughly by Corporate
Harassment, Immunity, Threat and Violence; Secretary, Legal & GRC Department, and Internal
Inter-Company Cooperation; And Superiors and Audit. The Company also conducts socialization as
Subordinates; (C) Compliance with Laws and an effort to introduce, disseminate information with
Regulation; (D) Conflict of Interest and Misuse of regards to the provisions in the Code of Conduct
Position; (E) Fair Employment; (F) Confidentiality to all levels within the company as well as external
of Data and Information and Disclosure Policy; (G) parties related to the company.
Intellectual Property Rights; (H) Use of Electronic
Communications; (I) Insider Trading; (J) Award c. Implementation of the Code for all levels of the
and Receipt of Gifts (Gratification); (K) Donation; organization
(L) Bribery; (M) Political Activity; (N) Protection and The Company Code of Conduct applies and
Use of Company Assets; (O) Safety, Occupational binds to every employees and at all levels of
Health and Environment (K3L); (P) Data Recording, the organization. Every Company’s employee is
Reporting and Documentation; (Q) Misuse of required to sign a statement of compliance with
Narcotics, Illicit Drugs, Liquor and Gambling; (R) the Company's Code of Ethics. Similar tovparties
Corporate Image. with an 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.
Annual Report 2016

367
d. Types of Sanctions for Offenders of Code The Corporate Culture is structured in the acronym
Non-compliance with provisions in the Code of "CHAMPS" containing the following cultural values:
Ethics is categorized as a violation and a crime C ompete with a clear & Synergized Vision
(which crimes includes corruption and economic H ave a High Spirit for Continous Learning
crime, as well as general criminal conduct). Non- A ct with high Accountability
compliance is categorized as a crime and will M eet customer expectation
be followed up according to prevailing laws and P erform ethically with high integrity
regulations, and non-compliance categorized as a S trenghthening Teamwork
violation will be followed up in accordance with the
provisions of Employee Discipline that has been The word CHAMPS is a fragment of the English word
established company. "CHAMPION" which means "winner", while the letter S
at the end of the word CHAMPS denotes "more than
e. Number of Offenders Code and Sanctions one person" so that every person in the Company is
given a winner that will bring victory to the Company amidst
Throughout 2016 there is no violation of the the tough competition Faced by the Company.
Code of Conduct conducted by the Board of
Commissioners, Board of Directors, Employees The Company also has Spirit SMI namely:
and their families. S inergy
M ilitan
REINFORCEMENT OF I ntegrity
CORPORATE CULTURE
The Company continuously strives to improve The three spirits of Semen Indonesia are the
understanding of the corporate culture that has been sterilization of CHAMPS culture which consists of 6
established as the foundation of the Company's work. cultural characters. Synergy becomes the spirit of
With the same corporate culture, it is expected that the 2 character CHAMPS culture that meet customer
the Company's pace will become more synergistic and expectation and strengthen teamwork. It becomes the
together will achieve the established vision. One of the spirit for the Company to synergize with customers
efforts is strengthening the CHAMPS culture. through teamwork.
The CHAMPS culture continues to be strengthened Militants as the second spirit includes compete culture
to all employees as a form of employee identity. with clear and synergized vision and have a high
This Corporate Culture is a synergy of the Corporate spirit for continuous learning. Implementation of the
Culture that exists throughout the Company and its company's vision and the spirit to continue learning is
Subsidiaries. The process of establishing a corporate a manifestation of militancy towards the company
culture begins with the awareness that the Company
needs to bring the entire Group of Companies together. Integrity includes the culture of Act with high
accountability and perform ethically with high integrity.


Spirit SMI encourages the implementation of corporate

culture.
S pirit SMI
EMPLOYEE AND MANAGEMENT • Telephone: (031) 3981732 ext 3132 and / or

SHARE OWNERSHIP PROGRAM 3026
• PO Box: Box 5000
EMPLOYEE AND/OR MANAGEMENT • Email semenindonesiabersih@
The Company has never held a share ownership semenindonesia.com
program for employees and / or management (ESOP/ • Letters: The Reporting Team of Violation
MSOP). Reporting (TP3)
• PT Semen Indonesia (Persero) Tbk
• Jl. Veteran, Gresik 61122
WHISTLEBLOWING SYSTEM
b. Whistleblower Protection
a. Procedures for Submitting Reporting The Company is committed to implement
Violations whistleblower with good intentions and the
The WBS Guidelines also describe the procedures company will comply with all prevailing laws
for reporting and violation handling procedures, and best practices in whistlebowing systems.
complete with the reporting scheme in accordance Any employee who is a whistlebower with good
with the alleged reporting. Reporting violations can intention shall be protected from the act of
be done through the following channels: termination, demotion or relegation, harassment
or discrimination in all its form and disadvantage
record in his personal data files.
Annual Report 2016

369
The Company applied sanctioned on misuse d. Complaint Manager

of WBS and it is affirmed that the parties (both The Board of Directors is responsible for the
internal and external) who submit reports in the implementation of the reporting system of
form of slander or false statements shall be subject violations in the Company and the Board of
to sanctions including legal proceedings and not Commissioners is responsible for supervising the
obtaining either the confidentiality or protection of implementation of such system. The Board of
the Reporting Entity. Directors and the Board of Commissioners jointly
established an organization of violations reporting
c. The handling of complaints in the Company. This organization is centralistic
The procedure and settlement on suspected covering the management of whistleblowing
violation report is conducted in accordance with reporting in the Company and Subsidiaries.
the mechanism as set forth in the guidelines of
violation reporting system which is the mechanism The organization of violations reporting consists of
process of violation report management, allegedly four main elements, namely:
committed by: • Whistleblowing Executives Team (TP3), has
§ Company’s Employees. the  duties to:  
§ Board of Directors, Members of the Board of − Accept, register and group the
Commissioners (Individuals) and Supporting whistleblowing by the suspect category.
Organizations of the Board of Commissioners. − Implement a whistleblower protection
§ Board of Commissioners of the Company program in accordance with the
(Board). established policies, including to maintain
§ Board of Directors and Board of the confidentiality of the whistleblower
Commissioners of Subsidiaries and suspect (the presumption of
§ Subsidiaries' employees innocents).
§ Complaints related to the accounting and − Maintain regular communication with the
financial reporting process of the issuer or whistleblower.
Public Company. − Submit an activity report every 6 months
to the Board of Commissioners.
The Company classifies the whistleblowing into • Investigation Team, consists of Internal
three types, with varying methods in handlings, Investigation Team, External Investigation
which are Team, and Subsidiary Investigation Team.
• Category I (Corruption and Economic Crime);
• Category 2 (Crimes related to common The overall task is to conduct further
crimes): investigation of the substance of reported
• Category 3 (Company policy related violation with a view to seek and gather the
violations): necessary evidence to ensure the indication
of violation.
The Company guarantees the confidentiality of
whistleblower the identity, unless such disclosure
is necessary in relation to the report or investigation
conducted by the authorities. The Company
provide the appropriate award for a provable report
and where the complainant was not involved.


• Board of Commissioners, with the main task. • Board of Directors, with main task:
− Selection, confirmation (from the − perform selection, confirmation (from
category aspect of violation types, the the category aspect of violation types,
party responsible and completeness the party responsible and completeness
of the document) and verify, as well of the document) and verify, and as well
as taking the decision on the reports as taking the decision on the reports
for follow up or filing with regards to for follow up or filing with regards to
violations committed by members of violations committed by the Employee.
the Board of Commissioners, Board of − The Board of Directors has the authority
Directors and Supporting Organs of the to assign investigation Team to
Board of Commissioners. investigate violations committed by the
− In the event where such violation report Board of Commissioners, Directors and
is decided to be followed up, then the Employees of Subsidiaries
Board of Commissioners:
o Assign the Investigation Team
to investigate if the violation e. Results of Complaint Management and
is committed by a member of Development of Treatement
the Board of Commissioners Throughout 2016, the total whistleblowing case
(individuals), Board of Directors and and treatment are 7 cases that have been reported
Supporting Organs of the Board of through the WBS mechanism, 5 cases by means
Commissioners, or of email semenindonesiabersih@semenindonesia.
com and 2 cases through a writtem letter being
o Provide recommendation to the
addressed to the TP3 Team. The results is 7 cases
Board of Directors (as Shareholders
that have been settled until the end of 2016 i.e
of Subsidiary) to follow-up through
5 cases have been completed and closed and 2
investigation process, in the event
cases are still in the process of completion of "in
where such violation is conducted
progress".
by the Board of Commissioners and
Board of Directors of Subsidiary.
Category and Whistleblowing Information:

Description Total Remarks
Total Reports 7 Accepted whistleblowing case
Met the requirement 3 to be followed up
4 not to be followed up
Whistleblowing Category 2 Category I (Corruption and Economic Crime);
5 Other Category – outside civil crime and Company policy

Settlement Process 5 Completed
2 On progress for follow up
Annual Report 2016

371
IMPLEMENTATION OF However, to improve the quality of governance
GOVERNANCE GUIDELINES IN implementation, the Company conducts periodic
THE COMPANY assessments, which results and recommendations are

used as a reference to improve the implementation of
The Company has owned the Governance Manual,
the Governance Manual.
which is used as a guidance from all organs of the
company in performing its duties, functions and
As a commitment to the implementation of best practice,
responsibilities in managing the organization. All
the Company ensures that the basic principles of GCG
implementing rules and operational policies are issued
are applied to every aspect of business and across all
by taking into account on the Regulatory Provisions,
levels. The basic principles of Corporate Governance
the Articles of Association , the GMS Results, as part
include transparency, accountability, responsibilty,
of the implementation of the Corporate Governance
independency and equity. This is described briefly in
Manual.
the following:
GCG PRINCPLES DESCRIPTION

Transparency The transparency principle is implemented through several activities and intensive
communication media and professionally managed among others:
• Submission of Information Disclosure or Material Facts in order to fulfill the principle of
information disclosure that has significant meaning for stakeholders as a consideration for
investment decision making.
• Submission of information on material transactions and affiliated transactions to
Shareholders through OJK. The Company is obliged to deliver information on material
transactions to the public at least in one national newspaper in Bahasa Indonesia and
submit transaction documents to the Financial Services Authority within 2 (two) working
days after the transaction agreement is signed.
• During the year 2016, the Company has submitted information and company data, as
presented in "Information Disclosure Tables - Mailing Letter with Regulator and Capital
Market Supervisor", "Information Delivery Activity Table to Shareholders, Analysts,
Investors and other Stakeholders", " Table List of Press Releases "and Company Website
Information as well as Social & Digital Media.
Accountability • The Company implements accountability principle by emphasizing on the improvement

of functions and roles of every Company’s Organs and Management, thus corporate
management can be properly implemented.
• Stipulation of standard procedures on Internal Audit to ensure the implementation of
check and balance mechanism in the implementation of the Company’s internal control
system. In performing its duties, the Internal Audit refers to Internal Audit Charter.
• Stipulation of Key Performance Indicators (KPI) of the Company’s organs with the
cascading mechansim from corporate KPI up to the lowest operating units to assure
consistency and harmony in the Company’s targets, strategy, vision and mission.


GCG PRINCPLES DESCRIPTION

Responsibility • The Company implements the responsibility principle by firmly upholds prudence
principles and ensuring the compliance on prevailing regulations and laws.
• The policies enacted to improve the quality implementation of responsibility principle are:
Compliance Management Policy, Risk Management Policy, Business Continuity Plan, Risk
Management Implementation, Corporate Social Responsibility (CSR), implementation of
management system (ISO), and others.
• Management of responsibility principle can be seen in the related information "Semen
Indonesia Management System - Pillars of Best Corporate Good Practice Manufacturing
Implementation”.
Independency • All Employees, Board of Directors and Board of Commissioners shall always perform
their duties professionally without any conflict of interest and pressure from any party and
prevent the occurrence of decision making containing conflict of interest
• Conflict of Interest Transaction Policy. The Company prohibits every Company’s employee
in a conflict of interest situation.
• The Company requires members of the Board of Commissioners and Members of the
Board of Directors to disclose the ownership of shares in the company and / or in other
companies into the Special Register as required by applicable laws and regulations.
• During 2016 the Company has received 51 reports of gratification receipts with verification
results by Bureau of Governance, Risk & Compliance (Bureau of GRC) as the Gratification
Control Unit of the Company that 2 gratification receipts are considered as bribes, with
the settlement has been submitted to the KPK to become state property. 39 gratuities
are the official gratuities belong to the company and have been submitted to the Orphan
Foundation by the Gratification Control Unit. While 10 gratification receipts are official
gratifications are not considered bribes and have been informed to be the property of the
complainant.
Fairness • The Company implements the fairness principle by equal treatment to all stakeholders
between rights and obligations provided to and by the Company.
• The Company opens information access to all stakeholders to provide recommendations
for the Company’s progress, however the Company also stipulates information
confidentiality that limits the information access to unauthorized parties.
• Prohibition of Insider Trading. Insider Trading is material information owned by Insiders
that is not yet available to the public.
• Implementation of E-procurement and CSMS (Performance Appraisal of Suppliers) in
the Procurement Process of Goods / Services. In order to improve services in the area
of procurement of goods and services according to GCG principles, the Company
implements e-procurement in the procurement process of goods and services.
Annual Report 2016

373
IMPLEMENTATION OF as views of shareholders or investors, and get
MANAGEMENT PRINCIPLES advice and input for the business interests and
IN ACCORDANCE TO sustainability. Such communication is sought
GOVERNANCE MANUAL through:
GUIDELINES FROM OJK • Implementation of clear communication

policies with shareholders or investors.
In accordance with the Decree of the Financial Services
• Explanation of policies, procedures and
Authority No. 21 / POJK.04 / 2015 dated November 16,
means of communication on the Company's
2015 on "Implementation of Governance Guidelines
website.
of Public Company " and Circular of the Financial
− Principle 3 - Strengthening the Membership and
Services Authority No: 32 / SEOJK.04 / 2015 dated
Composition of the Board of Commissioners.
November 17, 2015 on " Governance Guidelines
Recognizing the severity of business conditions
For Public Company", the Company has adopted
and development plans that will cover the
8 principles of corporate governance under the
archipelago and regional areas, covering Asia
Governance Guidelines of Public Company as set
and Australia, the Company strives to have the
forth in the POJK no 21. The brief explanation on the
ideal composition of the Board of Commissioners
application corporate management principles that have
and Board of Directors so as to overcome and
been executed in accordance with these provisions are
mitigate all risks arising from current or future
as follows.
business conditions and trying to change into an
− Principle 1 - Increase the Value of General
opportunity for business growth. The Company
Shareholders Meeting (AGM)
seeks to achieve this through:
The Company realizes that the shareholders,
• Determine the number of members of the
have the right to participate in the management
Board of Commissioners by considering the
of the company through decision making in the
business conditions.
GMS. Therefore, in order to increase the value of
• Determine the composition of members of
GMS implementation, Semen Indonesia follows
the Board of Commissioners by taking into
all laws and regulations that regulate the GMS
account the diversity of skills, knowledge and
implementation, and ensures that:
experience to match the challenges faced.
• Voting for agenda decision making in GMS
has been executed by taking into account on
− Principle 4 - Improving the Quality of the
minority shareholders, closed and promoting
Implementation of Duties and Responsibilities
independence.
of the Board of Commissioners.
• The GMS is always attended by all members
The Board of Commissioners of Semen Indonesia
of the Board of Directors and members of the
continues to perform its duties in good faith, with
Board of Commissioners of the Company.
full responsibility and prudence in the long term
• The Company provides a summary of the
interest of the Company. Therefore, to ensure that
results of the GMS's resolutions on the
the supervisory and advisory duties are properly
company's webpage for the past 1 year.
implemented, the Company ensures that:
• There has been a resignation policy for
− Principle 2 - Improve Communication Quality
members of the Board of Commissioners who
with Shareholders or Investors.
are indicated / involved in financial crimes.
The Company seeks to enhance the role and
• Has owned and implemented a succession
participation of shareholders or investors through
policy of members of the Board of Directors
effective and sustainable communication. The
which is run through the active role of the
objective is to identify the expectations as well
Nomination and Remuneration Committee


− Principle 5 - Strengthen the Membership • The Company has the policies and mechanism
and Composition of the Board of Directors. of resignation of members of the Board of
Semen Indonesia established an ideal Board of Directors who are indicated / involved in
Directors composition that has the competence financial crime.
and ability to run the company's transparently,
professionally, effectively and efficiently so as to − Principle 7 - Improve Aspects of Corporate
build trust from the stakeholders. To ensure the Governance through Stakeholder Participation.
achievement of the composition, the Company The Company continues to work with all
always ensures: stakeholders in order to ensure that the
• Determination on the number of members implementation of the Corporate Governance
and composition of the Board of Directors covers all important and fundamental aspects of
has considered the business conditions, corporate management by ensuring that:
challenges to be overcome, and the • The Company has a policy of early detection
effectiveness of decision making. and prevention of insider trading.
• Determination on the members of the Board of • The Company owns and implements a
Directors in charge of accounting and finance policy of selection and enhancement of the
is conducted by considering the expertise, competence of suppliers / vendors.
knowledge and competence in the field of • The Company has anti-corruption and anti
financial management and accounting. fraud policies.
• Determination of the composition of the • Has owned and implemented a violation
members of the Board of Directors is reporting policy.
conducted by taking into account on the • Owning and implementing long-term
diversity of skills, knowledge, and experience incentive policies to the Board of Directors
required. and employees.
− Principle 6- Improve the Quality of Duties and − Principle 8 - Improve the Implementation of
Responsibilities of the Board of Directors. Information Disclosure.
In order for the Board of Directors to perform Semen Indonesia implements a disclosure
their duties properly, efficiently and effectively in policy with the support of the latest information
accordance with the provisions of legislation solely technology to ensure the accuracy of the
for the benefit of the Company, Semen Indonesia information submitted. To ensure that all important
implements the policy of division of duties and information of the company can be recognized
authority among the members of the Board of by stakeholders in a timely manner, the Company
Directors. In order to ensure quality improvement applies:
of the company's management every period, The • Use of information technology widely.
Company ensures that: • Disclosure policy of the final beneficiaries of
• The Board of Directors of Semen Indonesia has shareholders with a percentage above 5% or
and exercises its own self assessment policy group of controlling shareholders.
to evaluate and improve its performance.
• The parameters underlying the Board of
Directors' appraisal are disclosed in the
Annual Report.
Annual Report 2016

375
ACCESS AND INFORMATION - Sustainable Performance

Contains information about PKBL, Corporate
Company website. Presented in both Indonesian
Programs, SIF, and Sustainable Reporting.
and English languages at www.semenindonesia.com
and corporate email info@semenindonesia.com. The
- Products and Layouts
company website has been developed in accordance
Contains information about Company Product
with the criteria and privision stipulated by the Financial
Types, Distribution Channels, Technical Services
Services Authority as stated in OJK Regulation
and product innovations.
No. 8 / POJK.4 / 2015 on the Website of Issuers or
Public Companies. To support a sound management
- News and Press
system, the Company has a standardize working
Contains information about announcements,
administration on website management. The Company
news, press releases, and galleries.
continues to ensure compliance with the disclosure of
information to the public. Compliance to the public is
- Careers
to provide access to information through the delivery
Contains information about career and recruitment.
of reports and other important information through the
Company’s website presented in the Indonesian and
English at www.semenindonesia.com and corporate
email info@semenindonesia.com. To support a sound
management system, the Company has standardize
working administration on website management.
The information presented on the company website

includes:
- Company Profile
Contains information about CEO messages,
Company Profile, Vision and Mission of the
Company, Management and Committees and
Awards Received by the Company
- Corporate Governance
Contains information on Company Policy,
Guidelines, Structure, Procurement Mechanism
and Management System.
- Investor Relations
Contains information on Annual Reports, Financial The Company continues to develop the features and
Statements, Quarterly reports on operational and updates of the company’s website content so that it
financial performance, Monthly sales reports, can continue to provide convenience and disclosure to
GMS, Notices, and Investor Relations. the public to obtain the Company’s information.


o Social media and Digital The Company’s social media accounts are:
Social media and digital play a significant role in
Facebook,
the Company. Since its utilization in May 2014
social media & digital has contributed greatly to the Https://www.facebook.com/semenindonesiagroup
Company both in the formation of a positive image Twitter,
of the Company, the intensity of interaction with
Https://twitter.com/semenku
the public as well as a product promotion media.
Youtube,
Important functions that can promote the Company
Https://www.youtube.com/c/semenindonesiagroup
are among others promotional media products,
enhancing the Company’s positive image, and Instagram,
as a means to facilitate and increase the intensity Https://www.instagram.com/semenindonesia/
of communication between the Company and its
Google Plus,
subsidiaries, affiliates, partners and customers.
Https://plus.google.com/+Semenindonesiagroup/
Integration with the company website becomes posts
one of the optimization step in social and digital
media utilization so that contribution in supporting
the progress of Company become more leverage.
MANAGEMENT SYSTEM OF SEMEN INDONESIA – IMPLEMENTATION

PILLARS OF GOOD CORPORATE MANUFACTURING
RATE GOVERN
STAKEHOLDERS
R PO AN REGULATIONS
EXPECTATIONS
CO CE
ISO
OD
(G
9001
GO
CG
I S
)
OTHERS ISO
14001
SISTEM
COSTOMERS BUSSINESS
MANAJEMEN
NEEDS R K COMPETITION
SMK3 ISOMEC
17025
ISO 31000
OHSAS
STANDARD 18001 ENVIRONMENTS
DEVELOPMENT
Image 1
Management System of Semen Indonesia
Annual Report 2016

377
In line with the company's mission to realize an SMSI is implemented by all employees of the Company
international standard company with competitive and the implementation of the Semen Indonesia
advantage and synergy to increase sustainable Management System (SMSI) is expected to increase
added value, the company implements integrated added value for shareholders in particular and other
management which refers to the principles of Good Stakeholders in general.
Corporate Governance called Indonesian Cement
Management System SMSI) Management and Development of Semen
Indonesian Management System (SMSI)
SMSI is a pillar of GCG implementation in a company that The Semen Indonesia Management System (SMSI) is
reflects GCG principles of transparency, accountability, built on the business processes of the Company with
responsibilty, independency and fairness. an integration base on ISO 9001 Quality Management
System, Environmental Management System
(ISO14001), OHS Management System (SMK3-OHSAS
18001), Mining Safety Management System and
SMSI is a media of all business Laboratory Testing Management System ISO / IEC
17025) is expected to be able to build a comprehensive
process provisions of the Company and flexible Management System in response to
which assure and ensures that all the dynamics of change of corporate strategy and
of the Company's activities are organization by staying focused on stakeholders

expectation.
carried out in accordance with
the principles of Good Corporate In its management, the Company established the P2M-
Governance SMSI Team (Improvement and Quality Improvement-

SMSI) with the following duties and responsibilities:
• Review, refine and improve the Semen Indoenesia
Management System;
• Conduct study and preparation of development of
Management System that has been successfully
Semen Indoenesia Management System.
integrated in Semen Indonesia Management System,
• Integrate other management systems into the
among others:
Semen Indoenesia Management System;
• Quality Management System (ISO 9001),
• Coordinate with management system managers in
• Environmental Management System (ISO 14001),
each operating company to improve and enhance
• K3 Management System (SMK3 & OHSAS 18001),
the Semen Indoenesia Management System.
• Laboratory Testing Management System (ISO /
• Improving the effectiveness of the implementation
IEC 17025),
of the Semen Indoenesia Management System
• Mining Safety Management System (SMKP),
• Provide stimulus and improve understanding of the
• Risk Management System (ISO 31000) and
implementation of Indonesia Cement Management
• Other Management Systems.
System.


As an effort to manage Semen Indonesia Management • Able to maintain the OHSAS 18001 Certificate from
System (SMSI), an Integrated Audit has been carried Sucofindo Indonesia as a cement manufacturing
out in both internal and external audits to ensure the company.
implementation of the management system is carried • Able to escort the implementation of ISO 9001 on
out effectively, consistently and consistently. strategic projects of the company.
• Able to obtain SNI Product User Certificate (SPPT)
Meanwhile, Development of Semen Indonesia for all products produced.
Management System is designed in accordance with • Able to obtain TKDN Certificate (Domestic Content
the needs and development of the company. One of the Level) for products produced both bulk and zak.
development that has been successfully implemented • The recipient of the Health and Safety Management
in 2016 is the Safety Management System of Mining. System (SMK3) Award from the Governor of East
Road Map development of Mining Safety Management Java with satisfactory category for 3 consecutive
System starts from gap analysis, document preparation, years.
integration, management system implementation, • Improved score at Emerging Industry Leader level
internal audit implementation and management review in Criteria of Superior Performance Assessment
and reporting of results to related institutions. based on Malcolm Baldrige Critera by Ministry of
SOE.
The performance of Semen Indonesia Management • Green PROPER Award from the Ministry of
System (SMSI) in 2016, has resulted in the following Environment.
performance: • Green Level V Awards held by the Ministry of
• Able to maintain Accreditation Certificate from Industry of the Republic of Indonesia.
National Accreditation Committee as Testing
Laboratory (LP-151-IDN). These achievements represent the company's
• Able to maintain ISO 9001 and ISO 14001 commitment to the Earth, For Quality, and For
Certificate from SGS Indonesia as a cement Indonesia.
manufacturing company.
Annual Report 2016

379
CORPORATE
SOCIAL
RESPONSIBILITY
REPORT
388 Corporate Social
Responsibility Report
389 Enviornmental
Responsibiilty
390 Employment and
Occupational Health and
Safety Responsibility
394 Social and Community
Responsibility


“Enhancing
REVIEW
the quality of corporate
IMPLEMENTATION REPORT
social responsibility
RESPONSIBILITY REPORT STATEMENTS
implementation that covers all stakeholders and

founded upon four CSR pillars as well as the principles
of good corporate governance. Our pursuit is to
cultivate two-way interaction that mutually benefits
all parties involved in order to create quality growth
whilst promoting community welfare and environmental
preservation.”
Semen Padang Plant located in
381
Indarung, Padang, West Sumatra.
Annual Report 2016
Enhancing the quality of
corporate social responsibility
implementation that covers
all stakeholders and founded
upon four CSR pillars as well
CORPORATE as the principles of good

corporate governance. Our
SOCIAL
pursuit is to cultivate two-
way interaction that mutually
benefits all parties involved in
RESPONSIBILITY order to create quality growth

whilst promoting community
REPORT
welfare and environmental
preservation
PT Semen Indonesia (Persero) Tbk focuses its social responsibility activities, under
the Company’s CSR program, into four areas, namely: environment; employment and
occupational health and safety; community development, and customer service.


CORPORATE SOCIAL RESPONSIBILITY REPORT
The Financial Services Authority (OJK) Circular No.30/ • Customer Responsibility

SEOJK.04/2016 concerning the Format and Content Our responsibility to our customers is elucidated
of Annual Report of Issuers or Public Companies, under the sub-chapter “Customer First” in this
sub-point H-2 of Point 2 “Description of Annual chapter. Comprehensive elaboration on our
Report Content” under Section III on Annual Report customer responsibility programs is provided
Content states that “Issuers or Public Companies in our Sustainability Report under “Enhancing
that present information on social and environmental Competitiveness” chapter.
responsibilities in a separate report, such as the Social
and Environmental Responsibility Report” or the LEGAL BASIS OF CORPORATE
“Sustainability Report” are exempted from disclosing SOCIAL RESPONSIBILITY
information on their social and environmental • Law No. 8 of 1999 on Customer Protection
responsibility activities in the Annual Report. Pursuant • Law No. 13 of 2003 on Manpower
to this provision, the Company does not elaborate is • Law No. 40 of 2007 Limited Liability Company and
Social and Environmental Responsibility activities in Government Regulation No. 47 of 2012 on Social
details in this Annual Report. Our CSR transparency is and Environmental Responsibility
provided in the following sections: • Ministerial Regulation No. Per-09/MBU/07/2015
• Environmental Responsibility on Community Partnership and Environmental
“Green Management” policy is partially elaborated Development Programs of State-Owned Enterprises
under MDNA sub-chapter “Green Management • Law No. 25 of 2007 on Investment
Implementation”. • Law No. 13 of 2011 on Handling of the Poor and
A comprehensive explanation on various Needy
environmental programs of the Company is provided • Social Minister Regulation No. 13 of 2012 on the
under “Energy Transformation” and “Environmental Provincial Private Sector Accountability Forum in
Transformation” chapters of the 2016 Sustainability Administering Social Welfare
Report.
• Employment and Occupational Health and Safety GOALS
(OHS) Responsibility The Company remains steadfastly committed to
Activities pertaining employment practices are promoting welfare and conserving the environment and
explained under “HR Management” chapter. A to adopt these areas as part of its business focus and
detailed elaboration on our OHS programs and strategies. The goals are in line with the Company’s
policies are provided in the Sustainability Report vision to be Southeast Asia’s leading international
under OHS chapter. cement company, and the Company consistently
• Community Development Responsibility endeavors to harmonize its operational and profit
The scope of elaboration in this report is limited performance with social responsibility performance
to Community Partnership and Environmental – developing healthy and clean environment and
Programs. contributing to social welfare.
Annual Report 2016

383
the communities. The environment is similarly crucial

as it provides a place for the Company, its employees,
and business activities to continue, to live, and to take
place.
Profile
The growth of the Company brings positive impacts,
including:
• Increased allocation of profits to social and
environmental responsibility programs
• Vibrant economic activities around the Company
People Planet
POLICIES
The success of triple bottom line implementation,
which brings economic, social, and environmental
pursuits together, is the measure of the Company’s
“3P Harmonization” successful sustainable development efforts. “Green

Producitivity” is an environmental-oriented concept
that the Company develops, aiming to improve family
welfare and environmental quality, and ultimately save
The alignment of the fundamental 3Ps requires the the ecosystem for our future generations.
Company to meet its responsibility to all stakeholders,
comprising: shareholders, investors, employees, Following its change into Strategic Holding Company,
society, customers, business partners, and local Semen Indonesia has started to formulate new,
governments. comprehensive framework that would provide a clear
corridor for the delivery of Community Partnership and
The surrounding communities and the environment Environmental Development Programs. The Company
are most affected, favorably and adversely, by reforms its program goals, implementation strategy,
the Company’s presence and activities of mining, and activity focus based on best GCG practices and
manufacturing, and transporting. The communities three performance pillars in order to realize sustainable
are central to the Company’s business and it is the growth.
responsibility of Semen Indonesia to grow together with


Sustainable
Growth
THREE CORE PILLARS
ECONOMY ENVIRONMENT SOCIAL

(Profit) (Planet) (People)
to deliver sustainably to provide positive

to control adverse
growing financial social impacts for the
environmental impacts
performance society
Good Corporate Governance (GCG)

Transparancy Accountability Responsibility Independency Fairness
Resources, Values, Culture, and Code of Ethics
STRATEGIC OBJECTIVES • To develop development mechanisms for small

The Company’s strategic objectives of its social businesses and cooperatives regardless of their
responsibility programs are: relevance with the Company’s business through
• To realize a harmonious relationship with funding and continuous assistance founded
communities upon the principles of equity, independence,
• To help the growth of small businesses and professionalism, and ethics.
cooperatives, enabling them to be independent, • To conserve the environment and improve the
resilient, and competitive entities that are able to livelihood of communities through education,
contribute to job creation through professional healthcare, and welfare assistance programs
management practices
Annual Report 2016

385
The Company has identified effectiveness parameters CSR THEME, PILLARS, AND PROGRAM
of the four strategic objectives: their alignment with Theme
Semen Indonesia’s vision and mission, improvement The Company’s CSR theme for period 2011-2015 is
of community welfare, improvement of environmental SYNERGIZED. An acronym, Synergized embodies the
quality, Corporate Image enhancement, and added spirit of Educating the Nation with Semen Indonesia.
value for stakeholders. The Company focuses its CSR This is also the theme for the Company’s endeavors
activities on local communities, consumers, business towards Sustainable Development.
partners, employees, and the environment.
Sub-Theme
CSR FUNDS RECAPITULATION Strengthening the main theme, our sub-theme is “To
The four areas of the Company’s corporate social Sustainably Enhancing the People and Safeguarding
responsibility programs are: Natural Resources”
1. Environment
2. Employmen practices and Occupational Health Pillars
and Safety The Company has four key pillars to implement the
3. Social and community development SYNERGIZED theme and to solidify community
4. Consumers empowerment efforts:
Funds expended (in billion Rupiah) are detailed as

follows:
Social and Environmental Responsibility* 186,82 136,40 180,17
Community Partnership Program 78,86 69,59 88,16
Social Development Programs 57,20 0,03 0,41
*) including environmental development programs
CSR Blue Print - SI CERDAS – education pillar

Showing its strong commitment to corporate social - SI PRIMA – service excellence pillar
responsibility (CSR) programs, a CSR blue print was - SI LESTARI – environmental pillar
concluded in 2013. Semen Indonesia CSR Blue Print - SI PEDULI – social-economic pillar
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, bu more than that CSR is
a medium to enhance the Company’s reputation and to
realize business sustainability.


Educational Programs
Education is an important priority of Semen Indonesia, a part of enhancing people quality
both within and outside the Compay 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 workers
SI CERDAS o Local business partners
o Potential local workers through vocational and skill building programs
• Employee involvement as volunteers in employee volunteering/social hour program
Products and Customer Service

Under SI Prima pillar, Semen Indonesia will continue to deliver service excellence and 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.
SI PRIMA
Environment
Operatonal 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.
SI LESTARI
Social-Economy
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.
SI PEDULI
Annual Report 2016

387
Enhancing the
quality of corporate
social responsibility
implementation that
covers all stakeholders
and founded upon
ENVIORNMENTAL four CSR pillars as

well as the principles
RESPONSIBIILTY
of good corporate
governance. Our pursuit
is to cultivate two-
way interaction that
mutually benefits all
parties involved in order
to create quality growth
whilst promoting
community welfare
and environmental
preservation”
Under SI Lestari pillar, corporate social responsibility on the environment is realized through various programs and
thorugh applying environmental policies in production and other operational activities.
Detailed explanation on Environmental Management programs that the Company carried out during reporting period
2016 is presented under Green Management sub-chapter, page 160-169.
The Company also involves local communities in environmnetla activities as part of its CSR program in educating and
raising awareness on environmental preservation.
For comprehensive elaboration on the Company’s environmental programs, readers are encouraged to peruse Energy
Transformation and Environmental Transformation chapters in our 2016 Sustainability Report.


EMPLOYMENT AND
OCCUPATIONAL HEALTH AND
SAFETY RESPONSIBILITY
Employment
Elaboration on the Company’s employment responsibility and employee management practices is presented under
Operational Review-Human Resource Management Chapter.
Occupational Health and Safety

The Company is highly committed to reduce the level of work incident and absenteeism by applying robust
occupational health and safety (OHS) management. Through OHS management, the Company creates a conducive,
safe, and healthy work environment. To that end, the Company implements rigorous work procedures in compliance
with accredited operational system, the Work Safety and Health (SMK3) system, OHSAS 18001:2007, and work
incident prevention programs, such as the 5R program and Feedback System.
OHS programs and OHS performance and evaluation are detailed in Semen Indonesia Sustainability Report under
Health Promotion and Workers’ Safety Chapter.
Annual Report 2016

389
SOCIAL AND
COMMUNITY
RESPONSIBILITY
The Company realizes community welfare improvement To ensure that the activities generate optimum impacts
pursuant to Law No. 40 of 2007, Government using available funds, the Company has divided its
Regulation No. 47 of 2012, and Law No. 25 of 2007 operational areas into three major categories of Ring 1,
on Investment. As an SOE, we also observe the Ring 2, and Ring 3.
Regulation of the Minister of State Owned Enterprises
No.PER- 08/MBU/2013 on Partnership Program of Program/activity implementation aims to improve
State-Owned Enterprises with Small Enterprises and social and economic condition and to raise community
Community Development programs, updated by virtue welfare to the standard of Human Development Index
of Ministerial Regulation No.PER-09/MBU/07/2015 on (HDI) and Sustainable Development Goals (SDGs).
Community Partnership and Community Development
Programs of State-Owned Enterprises. The programs are part of SI Peduli pillar.


SOCIAL AND COMMUNITY RESPONSIBILITY
Semen Indonesia CSR Activities
SEMEN INDONESIA
Community Services Community Relation Community Empowerment
Proactively cultivating mutually Community empowerment Empowering communities’ business

beneficial relationship with local by providing public, religious, potentials to stimulate economic
communities, focusing on preven- educational, social welfare, growth and equitable development:
tive efforts to avoid and anticipate and health facilities as well as • Growth of real sectors
social discontent infrastructure support • Increased income per capita at
regional level
• Growth of local business players
• Financial institutions
• Jobs
Development of
Environmental, Social
and Economy
IPM Achievement PROSPERITY Achievement SDGs
Note : MDGs in the chart is replaced with SDGs
Semen Indonesia CSR Activities

As one of the leading SOEs, the Company implements Community Partnership Program
Community Partnership and Social Development Until end of 2015, Semen Indonesia Group has worked
Programs, which target to enhance economic and with 33,804 partners mainly located in Padang,
social capacity to raise the quality of livelihoods and Pangkep Gresik Tuban, and Rembang. The partners are
level of welfare. Through this Community Partnership micro to medium business owners engaging in trade,
program, the Company provides working capital culinary business, agribusiness, creative industry, and
loan to help micro, small, medium enterprises and other various small-scale industries.
cooperatives (UMKMK) expanding their businesses.
Meanwile, thorugh Social Development Program the In 2016, utilizing revolving funds, the Company
Company delivers assistance for the provisioning of provided soft working capital loan program to 1,517
public facilities and infrastructure as well as relief for parners. In total, Semen Indonesia Group has assisted
disaster victims. 35,321 partners.
Annual Report 2016

391
Total Partners
Realization until 2015 Realization until 2016 Total Partners Until end of 2016
33.804 1.517 35.321
Partnership Program Fund Realization (Million Rp)

Fund Realization 2015 Fund Realization 2016 Total Funding Until 2016
790,19 78,86 869,05
Other than delivering Community Partnerhsip Program Java, Padang City in West Sumatera, and Pangkep
to communities around Semen Indonesia’s existing District in South Sulawesi.
plants in Tuban, the Company has also been providing
loans to SMEs in Rembang since 2013. In total, until • Healthcare Services
the end of 2016, the Company has provided Rp9.97 Part of Semen Indonesia regular program,
billion to 485 SMEs in the industry, service, trade, and the Company delivered public check-up and
livestock farming sectors. medication service, assistance for health posts,
and cataract surgery. In addition, the Company was
Social Development Programs also engaged in constructing decent housing.
In 2016, the Company carried out the following Social
Development programs: Other than the regular program, Semen Indonesia
• Disaster Relief helped renovating 30 units of homes of families
The Company through Semen Indonesia Peduli around Rembang Plant. House renovation program
donated logistics in the value of Rp1.31 billion for targeted disadvantaged families and beneficiary
families affected by floods and draught in Gresik registration had been done together with village
and Rembang. officers to ensure program accuracy.
The Company also contributed in earthquake In total, the Company disbursed Rp1.94 billion for
response efforts to help vicims in Pidie Jaya District, health improvement activities in 2016.
Aceh Province, by deploying Quick-Response Team
(TRC) and distributed its assistance of 1,000 tons of • Public Facilities/infrastructure
cement, clean water, worship places rehabilitation In 2016, Semen Indonesia constructed village
in the value of Rp500 million, set up health post, entry gates, widened village roads, constributed
distributed logistics aid, and set up BUMN Peduli rain water reservoir, renovated village office, built
command post. Quran reading center, renovated security posts,
and helped providing drilled wells. The entry gates
• Education/Training project in particular was chosen to highlight the
Semen Indonesia disbursed a total of Rp11.24 villages’ presence, providing clear demarcation of
billion of scholarship to 2,653 students from the village to residents and visitors alike.
elementary, junior secondary, senior secondary, to
university levels. Scholarship beneficiaries were In total, Semen Indonesia disbursed Rp17.27 billion
students from Tuban and Gresik districts in East for public facilities project.


• Worship Facilities For social and community assistance program, the

Various religious activities undertaken by the Company disbursed a total of Rp16.46 billion.
Company include: donation for religious celebrations
and activities; donation for the construction of • Education, training, internship, marketing, pro-
worship places and the establishment of religious motional, and other assistance to develop the
organizations; cement donation for the construction capacity of program partners.
of worship places; donation of worship clothing, Other than providing working capital loan and
i.e. sarong, female worship attire (mukena), and investment assistance to 1,517 program partners,
logistics donation during the fasting month; the Company also delivered other means of
donation of sacrificial animal during the Eid-ul Adha assistance, namely education, training internship,
celebration; donation for orphans and obligatory marketing, promotional, and other activities to
alms; and Haj preparation assistance. boost partners’ productivity and competitiveness.
The Company disbursed a total of Rp3.84 billion for To this end, Semen Indonesia disbursed a total of
religious acivities. Rp3.31 bilion.
• Environmental Conservation Programs Additionally, in East Nusa Tenggara, Semen Indonesia

The Company was actively engaged in environmental also backs a national program of SOE for the nation.
conservation programs, including planting mediuam Last year, Semen Indonesia helped renovating 17
strips, coastal reforestation, reforestation of critical houses of Indonesian veterans and took part in SOE
lands, provisioning of productive plants and pot Teaches, Students and the Archipelago, and other
plants, assistance and empowerment of Green Belt programs held by the SOE ministry to celebrate
farmers; and activities to create bio pore absorption Indonesian independence. This included the flag
holes. ceremony, visitation and development of inmates, clean
water provisioning, development of childcare center
Semen Indonesia disbursed a total of Rp1.08 billion in markets, assistance for former national athletes,
for environmental programs. development of villages in remote, broder, and conflict-
prone areas; 5-km healthy walk, market bazaar, local
• Social and Community Assistance competitions, and extending support for the Ministry
The Company also delivered social and community of Tourism by building toilet and washing facilities in
assistance programs, including village resiliency Borobudur tourism site as well as building Village
proram Desa Perkasa and One Village One Product Economy Center (BALKONDES) in Candirejo Village,
(OVOP) focusing on weaved sarong. The programs Borobudur sub-district of Magelang District.
were focused on improving the economy of villages
located around the Company.
Annual Report 2016

393
CONSUMER
RESPONSIBILITY
Implementing its responsibility towards all consumers,

Policy
the Company always maintains the quality of its
Consumers, both distibutors and end-users are our
products during manufacturing to transportation
stakeholders that affect the continuity of our business.
processes, reflecting service excellence pillar of SI
Acknowledging their important roles, the Company
Prima.
is dedicated to consistently improve its services and
customer protection efforts. This is conforms to Law
Some of our responsibility to consumers/customers
No. 8 of 1999 on Customer Proteection.
implementation is elaborated under sub-chapter
“Customer First” in this chapter, while a comprehensive
CUSTOMER FIRST
report on consumer responsibility can be perused in
Realizing its responsibility to customers, the Company
our Sustainability Report, “Enhancing Competitveness”
undertakes the following activities:
chapter.
• Customer Service
• Consumer Health and Safety Protection
The following section focuses on reporting our policies
• Customer Satisfaction Survey
and customer services.


CONSUMER RESPONSIBILITY
Consumer Health and Safety Protection

To ensure consumer safety, cement products
The Company addresses all complaints manufactured by the Company and subsidiaries are
and is committed to improving service limited to 40 kilogram and 50 kilogram packages,
and product quality pursuant to the maximum load that is ergonomically
allowed to be carried manually by hand without any
assisting device.
All products of the Company manufactured and sold

Customer Service to customers are equipped with information on quality
Commited to build a two-way communication with and other specifications. Displayed on all products’
customers and to enhance its customer service quality, package exterior, the information includes:
the Company has carried out the following: 1. Corporate logo of the manufacturing company
• Opening various channels for customer complaint, 2. Product name
namely toll free hotline, postal address, email, and 3. Number of Industry National Standard (SNI)
SMS that can be utilized by end-users, shops, and 4. Weight in package
distributors 5. Type of cement
• Issuing customer bulletin with Semen Gresik 6. Use instruction
Distribution Channel to communicate with 7. Customer line
customers
• Souvenirs to distributors’ leaders on birthday Customer Satisfaction Survey
occasions 1. Customer Satisfaction Index
In an increasingly competitive market with new
Addressing Customer Grievance players that constantly entering the industry, the
The Company addresses all customer grievances in Company is dedicated to improve and or maintain
2016. The actions taken by Semen Indonesia include: the level of customer satisfaction.
• All reports were welcomed, recorded, and
responded immediately To that end, the Company conducts regular survey
• Semen Indonesia and technical service team to study the level of customer satisfaction relative
conducted site visits to customers who lodged to the services it delivers. For the Company, this
their complaints to clarify any issues annual survey is a valuable service performance
• If necessary, technical service team and mobile monitoring tool.
facility team carried out lab test on samples
contested by a customer
The Company also carried out comprehensive

evaluation with respect to complaints and coordinated
with relevant parties to prevent recurring complaints.
Additionally, the Company through its technical
service team carried out regular visits to factories,
ready mix companies, and construction projects to
deliver Product Knowledge presentation, and provide
assistance in cement processing phase.
Annual Report 2016

395
Survey result, the Customer Satisfaction Index The above chart shows that the Company’ efforts
(CSI) for distribution and customer channels in and commitment to fulfill and maintain customer
2015 and 2016 are as follows satisfaction amid market competition have enabled
Semen Indonesia to maintain the level of customer
satisfaction.
Semen Indonesia’s CSI
2. Customer Loyalty Index
100 In line with the efforts to maintain customer
satisfaction, Semen Indonesia is also committed to
50 improve customer loyalty – an important element,
especially considering the multitude of brands
0
in the market that may threaten the loyalty of
2015 2016
existing cement company customers. To maintain
CSI 89 89 customer loyalty level, the Company has designed
various customer loyalty programs.


Customer Access
THE COMPANY’S CLI To inform product varities and use to customers, the
100 Company provides information through the following
platforms:
50
• Corporate website
0
Customers/consumers can navigate the website to
2015 2016
CLI 85 90 find complete information products and individual
product use
(Grafik 6) • Semen Indonesia Contact Center

• Consumer Complaint Service in each OpCo
Reclamation area is utilized by the communities

for fish cultivation water pond.
Annual Report 2016

397
CHECKLIST OF ANNUAL REPORT CONTENTS
NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
Chapters Sub Chapters Stipulation
References Comply
General a. The Annual Report shall at least includes the following Point 1a &
Stipulation information: 1b SEOJK
1). highlights of key financial data; 30/2016 18
2). shares information (if any); 22
3). Board of Directors’ report; 26
4). Board of Commissioners’ report; 40
5). profile of Issuers or Public Companies; 50
6). management discussion and analysis 102
7). corporate governance of Issuers or Public 274
Companies;
8). environmental and social responsibility of Issuers or 380
Public Companies; 410
9). audited annual financial statements; and
10). letter of statements of members of the Board 596
of Directors and members of the Board of
Commissioners regarding the responsibility on the
Annual Report;
b. The Annual Report shall present information such as V
pictures, graphs, tables and/or diagrams completed
with titles and/or clear description, for easy reading and
understanding;
Key Financial Key Financial Data Highlights containing the financial Point 2a 18-19
Data Highlights information in comparison for 3 (three) financial years or SEOJK
since the commencement of business if the Issuers or Public 30/2016
Companies has been running its business activities for less
than 3 (three) years, at least shall includes:
1) revenue/sales;
2) gross profit;
3) profit (loss);
4) total profit (loss) attributable to equity holders of the
parent entity and attributable to non controlling interest;
5) total comprehensive profit (loss);
6) total comprehensive profit (loss) attributable to equity
holders of the parent entity and attributable to non
controlling interest;
7) profit (loss) per share;
8) total assets;
9) total liabilities;
10) total equity;
11) return on assets (ROA);
12) return on equity (ROE);
13) return on revenue/sales ratio;
14) current ratio;
15) debt to equity;
16) debt to total assets; and
17) financial information and ratio
Shares Shares information (if any) at least includes: Point 2b
Information 1) outstanding shared for every quarter (if any) in comparison SEOJK
for 2 (two) financial years, at least covering: 30/2016
a) total outstanding shares;
b) market capitalization based on the prices 22
c) where the shares are listed at the Stock Exchange; 23
d) the highest, lowest, and closing share prices based 92
on the prices where the shares are listed at the Stock
Exchange; and 23
e) trading volume where the shares are listed at the
Stock Exchange;
23



NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
References Comply
2) in the event of corporate actions, such as stock split,
reverse stock, share dividend, share bonus, and changes
of share nominal value, the share information shall add at
least on:
a) date of corporate actions;
b) ratio of stock split, reverse stock, share dividend,
share bonus, and changes of share nominal value; 92
c) total outstanding shares before and after the 92
corporate actions; and
d) share prices before and and after the corporate
actions; 92
3) In the event of suspension and/or (delisting) within the
financial year, the Public Companies shall disclose the
background; and 92
4) in the event of continued suspension and/or delisting up
to the end of Annual Report period, the Public Companies 23
shall explain the follow up actions in settling the said Tidak ada
suspension or delisting; suspensi saham
23
Tidak ada
suspensi saham
Board of The Board of Directors’ Report at least includes: Point 2c
Directors’ Report 1) brief analysis on the Issuers or Public Companies SEOJK
performance, at least including: 30/2016
a) strategy and strategic policy of Issuers or Public 29
Companies;
b) comparison on results achievement and targets; and 32
c) challenges faced by the Issuers or Public
Companies; 32
2) business prospects;
3) corporate governance of Issuers or Public Companies; 34
and
4) changes of the composition of members of the Board of 35
Directors and the reasons of the changes (if any);
35-36
Board of The Board of Commissioners’ Report at least includes: Point 2d
Commissioners’ 1) performance assessment of the Board of Directors on the SEOJK
Report management of Issuers or Public Companies; 30/2016 43
2) supervisory on the strategy implementation of Issuers or
Public Companies;
3) view on business prospects of Issuers or Public 43
Companies developed by the Board of Directors;
4) view on the corporate governance implementation of 43-44
Issuers or Public Companies
5) changes of the composition of members of the Board of
Commissioners and the reasons of the changes (if any);
6) frequency and advisory to members of the Board of 44
Directors;
45
45
Profile of Issuers General Profile The profile of Issuers or Public Companies at least covering: Point 2e
or Public 1) name of Issuers or Public Companies including if there are SEOJK
Companies changes of name, reason of changes, and effective date 30/2016 52
of the changes on financial year;
2) access to Public Companies including branch offices
or representative offices that allows public to obtain
information on Issuers or Public Companies, includes: 52
3) brief history of Issuers or Public Companies;
53-56
Annual Report 2016

399
NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
References Comply
4) vision and mission of Issuers or Public Companies;
5) business activity based on the latest articles of
association, business activity carried out during financial 63
year, as well as type of products and/or services;
6) organization structure of Issuers or Public Companies in 57
diagram, at least up to the structure of 1 (one) under the
Board of Directors, including names and positions;
68-69
Board of 7) Board of Directors’ Profile, at least includes:
Directors’ Profile a) name and position according to duties and
responsibilities
b) latest photography
c) age
d) citizenship
e) educational background
f) professional background, including information on:
(1) legal appointment basis as member of the
Board of Directors in the said Issuers or Public
Companies;
(2) concurrent post, both as member of the
Board of Directors, member of the Board of 79-85
Commissioners, and/or member of committee as
well as other positions (if any); and
(3) work experience with the terms inside or outside
Issuers or Public Companies;
g) education and/or trainings participated by
members of the Board of Directors for competency
improvement during financial year (if any); and
h) affiliates with other members of the Board of
Directors; members of the Board of Commissioners,
and ultimate shareholders (if any), including the
names of affiliates;
Board of 8) Board of Directors’ Profile, at least includes:
Commissioners’ a) name;
Profile b) latest photography;
c) age;
d) citizenship;
e) educational background;
f) professional background, including information on:
(1) legal appointment basis as member of the Board
of Commissioners that are not Independent
Commissioner in the said Issuers or Public
Companies;
(2) legal reference of the first appointment as
member of the Board of Commissioners that are
as Independent Commissioner in the said Issuers
or Public Companies;
(3) concurrent post, both as member of the Board
of Commissioners, member of the Board of
Directors, and/or member of committee as well
as other positions (if any); and 72-78
(4) work experience with the terms inside or outside
g) education and/or trainings participated by members
of the Board of Commissioners for competency
improvement during financial year (if any);
h) affiliates with other members of the Board of
Commissioners, and ultimate shareholders (if any),
including the names of affiliates; and
i) independence statement of the Independent 72-78
Commissioner in the event that the Independent
Commissioner has already been serving for more
than 2 (two) periods (if any);



NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
References Comply
Changes of the 9) in the event of changes of the composition of members Tidak ada
composition of of the Board of Directors and/or members of the Board perubahan
BOD and BOC of Commissioners that took place after the ending of setelah tahun
financial year until the end of submission period of the buku pelaporan
Annual Report, the composition that has to be stated in
the Annual Report are the latest and previous composition
of members of the Board of Directors and/or members of
the Board of Commissioners;
Employees 10) total employees and description on education and age 86-87
levels in the financial year;
Shares 11) name of shareholders and percentage of ownership at the
Ownership and end of financial year, which consists of:
Subsidiaries a) shareholders with 5% (five percent) or more shares of
the Issuers or Public Companies;
b) members of the Board of Directors and members of
the Board of Commissioners that have ownership in 22
the Issuers or Public Companies;
c) group of public shareholders, namely each
shareholders group
22
12) total shareholders and ownership percentage as of the
ending of financial year based on classification:
a) local institutional ownership; 22
b) foreign institutional ownership; 22
c) local individual ownership; and foreign individual
ownership; 22
13) information on ultimate and controlling shareholders of the
Issuers or Public Companies, both directly or indirectly,
up to the individual ownerships, presented in diagram or
bagan; 22
14) name of subsidiaries, associates, joint ventures where
the Issuers or Public Companies has joint control entity,
including ownership percentage, business line, total
assets, and operating status of the Issuers or Public
Companies (if any); For Subsidiaries, to add the address
information; 89-91
15) share listing chronology, total shares, nominal value, and
offering price from the beginning of listing to the ending
of financial year including the name of stock exchange
where the shares of the Issuers or Public Companies are
listed (if any); 92
16) other Securities listing chronology other than Securities
stated on point 15), which at least includes the Securities
name, year of issuance, maturity date, offering values, and
Securities rating (if any); 92
17) name and address of capital market institution and/or
supporting professions; 93
18) if the capital market supporting professions are available
with periodical fees to the Issuers or Public Companies,
please state the information on services, fees, and
assignment period; and 93
Annual Report 2016

401
NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
References Comply
Awards 19) awards and/or certifications received by the Issuers or
Public Companies of national and international scales in
the ending of fiscal year (if any), which covers:
a) name of awards and/or certifications;
b) agency or institution that grants the awards; and 94-97
c) validity for the awards and/or certificates (if any);
Management Management discussion and analysis covers the analysis and Point 2f
discussion and discussion on financial statements and other key information SEOJK
analysis with emphasize on material changes in fiscal year, which 30/2016
covers at least:
Operational 1) operational review per business segment according to
Review per the industrial types of the Issuers or Public Companies, at
business least regarding: 173-175
segment a) production, which covers the process, capacity, and - Segmen
development; Semen
b) revenues/sales; and 176-182 -
Segmen Non-
Semen
c) profitability; 182-183
- Segmen
Lainnya
Comprehensive 2) comprehensive financial performance that covers financial
financial performance in comparison of 2 (two) ended fiscal years,
performance explanation on the changes and its impact, at least
regarding:
a) current assets, non current assets, and total assets; 201-207
b) current liabilities, non current liabilities, and total 208-213
liabilities;
c) equity; 214
d) revenues/sales, expenses, profit (loss), other 189-199

comprehensive income, and total comprehensive
profit (loss); and
e) cash flows; 216-218
Solvency and 3) solvency by presenting the relevant ratio calculation;

Collectability
218-221
4) collectability receivables level of the Issuers or Public
Companies by presenting the relevant ratio calculation;
220
Capital structure 5) capital structure and management policy on capital
structure including determination of policy;
215-216
Capital goods 6) discussion on material commitments for capital
investment with at least the following explanation:
a) objectives of the commitments; 224
b) sources of fund expected to meet the commitment; 224 , 226
c) currencies of denomination; and 224
d) steps planned by the Issuers or Public Companies to 224

protect foreign currency risk;



NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
References Comply
7) discussion on capital investment realized at the end of
fiscal year, at least covering;
a) capital investment types; 225
b) capital investment objectives; and 225
c) material information and subsequent events (if any); 225
8) material information and subsequent events (if any); 227
Others 9) business prospects of the Issuers or Public Companies

related with the industry condition, general economy and
international market including quantitative supporting data
from the trusted resources; 227-228
10) comparison between target/projection of beginning

of fiscal year with realization, regarding: a) revenue/
sales; b) profit (loss); c) capital structure; or d) other
issues considered important by the Issuers or Public
Companies; 228
11) target/projection to be achieved by the Issuers or Public
Companies for the next 1 (one) year, regarding:
a) revenue/sales;
b) profit/loss;
c) capital structure; 228
d) dividend policy; or
e) other issues considered important by the Issuers of
Public Companies;
12) marketing aspects on goods and/or services of the
Issuers or Public Companies, at least on marketing
strategy and market share; 130-133, 229
13) dividend information for 2 (two) ended fiscal years, at
least on:
a) dividend policy;
b) date of cash dividend payout and/or date of non
cash dividend payout; 229
c) total dividend per share (cash and/or non cash); and
d) total dividend payout per year;
14) realization of the use of Public Offering proceeds, with the
stipulation:
a) if during fiscal year, the Issuers has the obligation to
submit the realization of proceeds, then the realiza-
tion in cumulative shall be disclosed up to the end of
fiscal year; and 220
b) if there are changes in the use of the proceeds as

regulated in the Financial Services Authority on the
Realization of Public Offering Proceeds Usage Re-
port, the Issuers are required to explain the changes;
15) material information (if any), among others on investment,
expansion, divestment, merger, acquisition, debt/capital
restructuring, affiliates transaction, and transaction with
conflict of interest, implemented during fiscal year, among
others covering: a) transaction date, value, and object; b)
name of the party conducted the transaction; c) affiliates
nature (if any); d) explanation on transaction fairness; and
e) fulfillment of related rules; 230
Annual Report 2016

403
NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
References Comply
16) changes on the laws and regulations that significantly
impacted the Issuers or Public Companies and its impact 231-232
to the financial statements (if any); and
17) changes of accounting policy, background and its impact 233
to the financial statements (if any);
Corporate Board of 1) Board of Directors, covering among others: Point 2g 293-294
Governance of Directors a) duties and responsibilities of each member of the SEOJK
Issuers or Public Board of Directors; 30/2016
Companies
b) material information and subsequent events (if any); Point 2g 294
SEOJK
c) procedures, stipulation basis, structure, and amount 30/2016 295-298
of remuneration of each member of the Board of
Directors, as well as relations between remuneration
and the performance of Issuers or Public Companies;
d) policy and implementation of the Board of Directors’ 298-300,
meeting frequency, including joint meetings with the
Board of Commissioners, and attendance level of 315-317
members of the Board of Directors;
e) information on the GMS resolutions of the previous

1 (one) year, covering: (1) GMS resolutions that has
been realized during fiscal year; and (2) background 301-306
reasons of the unrealized resolutions;
f) information on the GMS resolutions of the fiscal year,

covering: (1) GMS resolutions that has been realized
during fiscal year; and (2) background reasons of the 306-309
unrealized resolutions; and
g) performance assessment of the committee that Tidak ada

supporting the Board of Directors’ duties; Komite di
tingkat Direksi
Board of 2) Board of Commissioners, covering among others:
Commissioners a) duties and responsibilities of the Board of
Commissioners; 311
b) statement of the establishment of Board of
Commissioners Charter;
c) procedures, stipulation basis, structure, and amount 310
of remuneration of each member of the Board of
Commissioners; 318-320
d) policy and implementation of the Board of
Commissioners ‘meeting frequency, including joint 315-318
meetings with the Board of Directors, and attendance
level of members of the Board of Directors;
e) the Issuers or Public Companies policy on
performance assessment of members of the
Board of Directors and members of the Board of
Commissioners and its implementation, at least
covering: (1) performance assessment procedures; 301-318
(2) criteria; and (3) the assessors;
f) performance assessment of committee that
supporting the Board of Commissioners’ duties; and
(notes: included in the Board of Commissioners’
report) 44
g) if the Board of Commissioners does not established
the Nomination and Remuneration Committee, the
following at least to be informed: (1) background
reason to not establish the committee; and (2)
nomination and remuneration procedures carried out 331-332
during fiscal year;



NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
References Comply
Audit Committe 4) Audit Committee, covering at least:
a) name and position in the committee membership; 322
b) age; 324
c) citizenship; 324
d) educational background; 324
e) professional background, covering information on:
(1) legal reference of the appointment as
committee’s member; 324
(2) concurrent post, as members of the Board
of Commissioners, members of the Board of
Directors, and/or members of the committee as
well as other position (if any); and 324
(3) work experience and period inside or outside
the Issuers or Public Companies; 324
f) period and term of office of member of Audit
Committee; 322
321-322
g) independence statement of Audit Committee;
h) policy and implementation of Audit Committee’s
meeting frequency and level of attendance of
member of Audit Committee; 322-323
i) education and/or training participated in fiscal year
(if any); and 323
j) implementation of Audit Committee’s activity during
fiscal year in accordance with the Audit Committee
Charter; 323
Other 5) Other committees established by the Issuers or Public Companies in
Committees order to support the function and duties of the Board of Directors and/
or Board of Commissioners, such as Nomination and Remuneration
Committee:
a) name and its position in the committee membership;
325
b) age;
329-330
c) citizenship; 329-330
d) educational background; 329-330
e) professional background, including information on:
(1) legal reference of appointment as committee’s member; 325
(2) concurrent post, both as members of the Board of
Commissioners, members of the Board of Directors, and/or
members of the committee as well as other position (if any);
and
(3) work experience and its period both inside and outside of 329-330
329-330
f) period and terms of office of committee’s members;
325
g) duties and responsibilities; 325
h) statement of the establishment of committee charter; 326
i) committee independence statements;
j) policy and implementation of committee’s meeting frequency and 326
level of attendance of committee’s members; 326
k) education and/or trainings participated in the fiscal year (if any);
and n.a
l) brief implementation of committee’s activities during fiscal year; 326-329
Annual Report 2016

405
NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
References Comply
Corporate 6) Corporate Secretary, covering among others:
Secretary
a) name; 336
b) domicile; 336
c) professional background, covering information on:
(1) legal reference of appointment as corporate 336

secretary; and
(2) work experience and its period both inside and 336
outside of Issuers or Public Companies;
d) educational background; 336
e) education and/or trainings participated in the fiscal 336

year; and
f) brief implementation of Corporate Secretary duties 337-339
during fiscal year;
Internal Audit 7) Internal Audit Unit, covering among others:
Unit
a) name of Head of Internal Audit Unit; 340
b) professional background, covering information on: 340
c) legal reference of appointment as head of Internal 340

Audit Unit; and
(1) work experience and its period both inside and 340
outside of Issuers or Public Companies;
(2) qualifications or certifications as internal audit 340
profession (if any);
d) education and/or trainings participated in the fiscal 342
year;
e) structure and composition of Internal Audit Unit; 353-354
f) duties and responsibilities; 345-346, 353
g) statement of the establishment of IAU charter; and 352-353
h) brief implementation of Internal Audit Unit duties 345-346

during fiscal year;
Internal Control 8) Internal control system implemented by Issuers of Public
System Companies, at least covering:
a) financial and operations control, as well as 349-350

compliance with other laws and regulations; and
b) effectiveness of internal control system; 350



NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
References Comply
Risk 9) Risk management system implemented by the Issuers or
Management Public Companies, at least on:
System a) general view on risk management system of Issuers 356-357
or Public Companies;
b) type of risks and its mitigation; and 360-363
c) effectiveness of risk management system of the
363-364
Significant 10) Significant litigation faced by the the Issuers or Public
Litigation Companies, subsidiaries, members of the Board of
Directors and members of the Board of Commissioners (if
any), among others covering:
a) principal cases/lawsuits; 364-366
b) settlement status of cases/lawsuits; and 364-366
c) impact on the condition of the Issuers or Public

Companies 364-366
Administrative 11) Information on administrative sanctions to the Issuers
Sanctions or Public Companies, members of the Board of
Commissioners and Board of Directors, by the Capital 366
Market authority and other authorities during fiscal year
(if any);
Code of Conduct 12) information on code of conduct of the Issuers or Public
Companies covering:
a) principals of code of conduct; 366-367
b) dissemination of code of conduct and enforcement
measures; and
367-368
c) statement of the application of code of conduct for
members of the Board of Directors, members of
the Board of Commissioners, and employees of the 367
Corporate 13) information on corporate culture or corporate values (if
Culture any); 368-369
ESOP Program 14) shares ownership program for employees and/or
management implemented by the Issuers or Public
Companies (if any), among others on:
a) total shares and/or option;
369
b) implementation period;
c) requirements for the employees and/or management
that have the rights; and
d) execution price;
Whistle Blowing 15) whistleblowing system at the Issuers or Public

Companies (if any), among other covering:
a) whistleblowing submission mechanisms; 369
b) whistleblower protection; 369-370
c) whistleblowing handling; 370
370-371
d) whistleblowing management; and
e) result of whistleblowing handling, at least covering:
(1) total whistleblowing received and processed
during fiscal year; and 371
(2) whistleblowing follow up; 371
Annual Report 2016

407
NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
References Comply
GCG 16) Implementation on Corporate Governance Guidelines of
Implementation the Issuers or Public Companies that issued Sequrities
Equity, covering:
a) statement on implemented recommendation; and/or 385-287,
372-374
b) explanation on recommendation that has not been
implemented, with the reasons and implementation
alternatives (if any); 285-287
Social 17) Information on social and environmental responsibility Point 2h
Responsibility of the Issuers or Public Companies covering the policy, SEOJK
(CSR) programs, and allocated costs, among others related to 30/2016
the following aspects:
a) environmental, among others are:
(1) waste management system of the Issuers or
Public Companies; 160-169
(2) complaint mechanism on environment; and
161
(3) environmental certifications; 161
b) employment, occupational health & safety, among

others:
(1) gender equality and work opportunitites;
(2) work facility and safety; 389
(3) employees turnover; 389
(4) work accident level; 389
(5) education and/or trainings; 246
(6) remuneration; and 239-240
(7) complaint mechanism on employment;

242
c) social and community development, among others
(1) local manpower usage; 393
(2) community empowerment around the Issuers

or Public Companies among others through 391-393
the utilization of raw material produced by the
communities or education provision;
(3) improvement of social facility and infrastructure; 392-393



NO. 30 YEAR 2016 (“SEOJK 30/2016”)
Legal Comply/Not
References Comply
(4) other forms of donation; and 392-393
(5) communication on policy and procedures

of anti corruption at the Issuers or Public
Companies, as well as training on anti
corruption (if any);
369
d) responsibility on goods and/or services, among
others:
(1) health and safety of consumers; 394-395
(2) information on goods and/or services; and 395
(3) facility, total, and resolving of consumers

complaint. 395
In the event of the Issures or Public Companies presented
the above point 1 in a separate report such as social and
environmental report of sustainability report, the Issuers or Laporan
Public Companies are exempted to disclose the social and Keberlanjutan
environmental information in the Annual Report; and Dibuat Terpisah
The report is submitted to the Financial Services Aurhotrity
along with the submission of the Annual Report;
Audited Financial 18) Report is developed with due observance to the Fnancial Point 2i
Statements Accounting Standard in Indonesia and has been audited SEOJK
by the Accountant. The financial statements cover the 30/2016
accountability of financial statements as regulated in the
Capital Market laws and regulations that regulated the
410-595
responsibilities of the Board of Directors on the financial
statements or Capital Market laws and regulations that
regulates the periodical report of Securities Companies in
the event of Issuers as the Securities Companies;
BoD and BoC 19) Statement letter of members of the Board of Directors Point 2j
Statement Letter and members of the Board of Commissioners on SEOJK
the responsibility of the Annual Report developed in 30/2016
accordance with the format of Statement Letter of 596-597
Members of the Board of Directors and Members of the
Board of Commissioners on the Responsibility on the
Annual Report as stated in the Enclosure that serves as
one part of the Circular Letter of the Financial Services
Authority.
Annual Report 2016

409
CONSOLIDATED
FINANCIAL
STATEMENTS
596 Statement Letter
Special Port of PT Semen Padang
in Teluk Bayur, Padang, West Sumatra.

PT SEMEN INDONESIA (PERSERO) Tbk PT SEMEN INDONESIA (PERSERO) Tbk

DAN ENTITAS ANAK AND ITS SUBSIDIARIES
DAFTAR ISI TABLE OF CONTENTS
Halaman/
Page
SURAT PERNYATAAN DIREKSI DIRECTORS’ STATEMENT LETTER
LAPORAN AUDITOR INDEPENDEN INDEPENDENT AUDITORS’ REPORT
LAPORAN KEUANGAN KONSOLIDASIAN - CONSOLIDATED FINANCIAL STATEMENTS -

Pada tanggal 31 Desember 2016 dan 2015 dan As of December 31, 2016 and 2015 and for
untuk tahun-tahun yang berakhir pada tanggal the years ended December 31, 2016 and 2015
31 Desember 2016 dan 2015
Laporan Posisi Keuangan Konsolidasian 1 Consolidated Statements of Financial Position
Laporan Laba Rugi dan Penghasilan 3 Consolidated Statements of Profit or Loss and
Komprehensif Lain Konsolidasian Other Comprehensive Income
Laporan Perubahan Ekuitas Konsolidasian 4 Consolidated Statements of Changes in Equity
Laporan Arus Kas Konsolidasian 5 Consolidated Statements of Cash Flows
Catatan atas Laporan Keuangan Konsolidasian 6 Notes to Consolidated Financial Statements
INFORMASI TAMBAHAN SUPPLEMENTARY INFORMATION
Daftar I : Informasi Investasi dalam Entitas Anak 178 Schedule I : Information on Investment in
Subsidiaries
Annual Report 2016

413


LAPORAN POSISI KEUANGAN KONSOLIDASIAN CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
TANGGAL 31 DESEMBER 2016 DAN 2015 AS OF DECEMBER 31, 2016 AND 2015
(Disajikan dalam ribuan Rupiah, (Expressed in thousands of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)
31 Desember / 31 Desember /
December 31, Catatan/ December 31,
2016 Notes 2015
ASET ASSETS
ASET LANCAR CURRENT ASSETS
Kas dan setara kas 2.834.444.371 5 3.964.018.180 Cash and cash equivalents
Kas dan setara kas yang Restricted cash and cash
dibatasi penggunaannya 13.984.560 5 25.469.712 equivalents
Investasi jangka pendek 13.262.624 6 2.263.173 Short-term investments
Piutang usaha Trade receivables
- Pihak ketiga, setelah dikurangi - Third parties, net of allowance
cadangan penurunan nilai for impairment losses of
sebesar Rp109.333.448 Rp109,333,448 at
pada 31 Desember 2016 December 31, 2016
dan Rp61.893.997 and Rp61,893,997 at
pada 31 Desember 2015 3.199.717.689 7 2.716.270.338 December 31, 2015
- Pihak berelasi, setelah - Related parties, net of allowance
dikurangi cadangan penurunan for impairment losses of
nilai sebesar Rp22.522.624 Rp22,522,624 at
dan Rp21.099.684 and Rp21,099,684 at
pada 31 Desember 2015 638.200.521 7,42 827.569.631 December 31, 2015
Piutang lain-lain Other receivables
- Pihak ketiga, setelah dikurangi - Third parties, net of allowance
cadangan penurunan nilai for impairment losses of
sebesar Rp10.095.155 Rp10,095,155 at
dan Rp3.511.243 and Rp3,511,243 at
pada 31 Desember 2015 154.747.650 8 56.818.134 December 31, 2015
- Pihak berelasi, setelah - Related parties, net of allowance
dikurangi cadangan penurunan for impairment losses of
nilai sebesar Rp909.208 Rp909,208 at
dan Rp1.269.578 and Rp1,269,578 at
pada 31 Desember 2015 25.617.852 8,42 27.982.398 December 31, 2015
Persediaan - bersih 2.671.144.517 9 2.408.974.072 Inventories - net
Uang muka 144.944.397 10 88.747.138 Advances
Beban dibayar dimuka 74.384.913 11 38.530.615 Prepaid expenses
Pajak dibayar dimuka 594.222.863 12 382.060.519 Prepaid taxes
Aset lancar lainnya 8.486.870 - Other current assets
Jumlah Aset Lancar 10.373.158.827 10.538.703.910 Total Current Assets
ASET TIDAK LANCAR NON-CURRENT ASSETS

Aset pajak tangguhan 752.492.323 39 90.267.923 Deferred tax assets
Investasi pada entitas asosiasi 93.984.643 13 223.952.239 Investment in associates
Properti investasi 160.694.045 14 175.123.263 Investment properties
Aset tetap, setelah dikurangi Fixed assets, net of accumulated
akumulasi penyusutan dan deplesi depreciation and depletion of
sebesar Rp13.594.170.672 Rp13,594,170,672 at
dan Rp11.483.289.749 and Rp11,483,289,749 at
pada 31 Desember 2015 30.846.750.207 15 25.167.682.710 December 31, 2015
Beban tangguhan 117.653.721 16 134.693.976 Deferred charges
Aset takberwujud - bersih 1.355.079.570 17 1.134.306.236 Intangible assets - net
Uang muka investasi 179.217.050 18 328.280.118 Advances for investment
Aset tidak lancar lainnya 347.865.596 19 360.108.557 Other non-current assets
Jumlah Aset Tidak Lancar 33.853.737.155 27.614.415.022 Total Non-Current Assets
JUMLAH ASET 44.226.895.982 38.153.118.932 TOTAL ASSETS
*) Disajikan kembali (catatan 3) *) As restated (Note 3)

Lihat catatan atas laporan keuangan konsolidasian See accompanying notes to consolidated financial
yang merupakan bagian yang tidak terpisahkan dari statements which are an integral part of the consolidated
laporan keuangan konsolidasian. financial statements.
-1- Annual Report 2016

417
LAPORAN POSISI KEUANGAN KONSOLIDASIAN CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
TANGGAL 31 DESEMBER 2016 DAN 2015 AS OF DECEMBER 31, 2016 AND 2015
kecuali dinyatakan lain) (Lanjutan) unless otherwise stated) (Continued)
31 Desember / 31 Desember /
December 31, Catatan/ December 31,
2016 Notes 2015
LIABILITAS DAN EKUITAS LIABILITIES AND EQUITY

LIABILITAS JANGKA PENDEK CURRENT LIABILITIES
Pinjaman jangka pendek 819.024.714 20,42 138.603.568 Short-term borrowings
Utang usaha Trade payables
- Pihak ketiga 3.249.070.457 22 2.709.634.659 - Third parties
- Pihak berelasi 828.686.605 22,42 1.073.611.340 - Related parties
Utang lain-lain Other payables
- Pihak ketiga 266.382.815 23 151.290.680 - Third parties
- Pihak berelasi 38.868.025 23,42 43.009.298 - Related parties
Beban yang masih harus dibayar 677.378.424 24 633.616.432 Accrued expenses
Utang pajak 363.827.010 25 275.833.026 Taxes payable
Short-term employee benefits
Liabilitas imbalan kerja jangka pendek 867.466.489 41 848.863.477 liabilities
Uang muka penjualan 49.466.442 26 17.645.606 Sales advances
Liabilitas jangka panjang yang jatuh Current maturities of
tempo dalam satu tahun long-term liabilities
- Pinjaman bank 866.543.711 20,42 630.043.935 - Bank loans
- Liabilitas sewa pembiayaan 124.958.736 21 77.037.601 - Finance lease liabilities
Jumlah Liabilitas Jangka Pendek 8.151.673.428 6.599.189.622 Total Current Liabilities
LIABILITAS JANGKA PANJANG NON-CURRENT LIABILITIES
Liabilitas pajak tangguhan 38.650.880 39 107.902.730 Deferred tax liabilities
Long-term employee benefits
Liabilitas imbalan kerja jangka panjang 823.029.982 41 653.612.297 liabilities
Liabilitas jangka panjang
setelah dikurangi yang jatuh tempo Long-term liabilities
dalam satu tahun net of current maturities
- Pinjaman bank 3.988.450.846 20,42 2.996.680.899 - Bank loans
- Liabilitas sewa pembiayaan 461.397.183 21 158.934.642 - Finance lease liabilities
Provisi jangka panjang 182.760.693 27 185.526.840 Long-term provisions
Liabilitas jangka panjang lainnya 6.541.513 23 10.473.501 Other non-current liabilities
Jumlah Liabilitas Jangka Panjang 5.500.831.097 4.113.130.909 Total Non-Current Liabilities
Jumlah Liabilitas 13.652.504.525 10.712.320.531 Total Liabilities
EKUITAS EQUITY
Ekuitas 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 Rp100 (full amount) per share
Modal dasar - 20.000.000.000 saham Authorized - 20,000,000,000 shares
Modal ditempatkan dan disetor Issued and fully paid
penuh - 5.931.520.000 saham 593.152.000 28 593.152.000 5,931,520,000 shares
Tambahan modal disetor 1.458.257.900 29 1.458.257.900 Additional paid-in capital
Selisih transaksi ekuitas dengan Difference in value of equity transaction
pihak non-pengendali 28.928.287 48 - with non-controlling interest
Komponen ekuitas lainnya 426.872.903 553.155.266 Other components of equity
Saldo laba Retained earnings
- Ditentukan penggunaannya 253.338.000 253.338.000 - Appropriated
- Belum ditentukan penggunaannya 26.274.646.670 23.561.638.624 - Unappropriated
Jumlah ekuitas yang dapat
diatribusikan kepada Total equity attributable to the
pemilik entitas induk 29.035.195.760 26.419.541.790 owners of the parent entity
Kepentingan non-pengendali 1.539.195.697 31 1.021.256.611 Non-controlling interests
Jumlah Ekuitas 30.574.391.457 27.440.798.401 Total Equity
JUMLAH LIABILITAS DAN EKUITAS 44.226.895.982 38.153.118.932 TOTAL LIABILITIES AND EQUITY
Lihat catatan atas laporan keuangan konsolidasian See accompanying notes to consolidated financial
yang merupakan bagian yang tidak terpisahkan dari statements which are an integral part of the consolidated
laporan keuangan konsolidasian. financial statements.

-2-

PT SEMEN INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK PT SEMEN INDONESIA (PERSERO) Tbk AND ITS SUBSIDIARIES
LAPORAN LABA RUGI DAN CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND
PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN OTHER COMPREHENSIVE INCOME
UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2016 DAN 2015 FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
(Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain) (Expressed in thousands of Rupiah, unless otherwise stated)
Catatan/
2016 Notes 2015
PENDAPATAN 26.134.306.138 32 26.948.004.471 REVENUE
BEBAN POKOK PENDAPATAN (16.278.433.690) 33 (16.302.008.098) COST OF REVENUE
LABA KOTOR 9.855.872.448 10.645.996.373 GROSS PROFIT
Beban penjualan (2.719.372.979) 34 (2.658.736.792) Selling expenses

Beban umum dan administrasi (2.163.084.920) 35 (2.087.885.344) General and administration expenses
Penghasilan operasi lainnya - neto 253.698.752 36 46.157.493 Other operating income - net
Penghasilan keuangan 183.772.800 37 241.075.757 Finance income
Beban keuangan (363.493.284) 37 (370.004.717) Finance costs
Bagian laba bersih entitas asosiasi 37.228.726 13 34.320.727 Share in net profit of associates
LABA SEBELUM PAJAK PENGHASILAN 5.084.621.543 5.850.923.497 PROFIT BEFORE INCOME TAX
Manfaat pajak penghasilan (549.584.720) 39 (1.325.482.459) Income tax benefit
LABA BERSIH TAHUN BERJALAN 4.535.036.823 4.525.441.038 NET PROFIT FOR THE YEAR
PENGHASILAN KOMPREHENSIF LAIN OTHER COMPREHENSIVE INCOME

Pos-pos yang tidak akan Items that will not be reclassified
direklasifikasi ke laba rugi: to profit or loss:
Pengukuran kembali atas Remeasurements of defined
liabilitas imbalan pasti (42.796.098) 38 (83.486.981) benefit obligation
Manfaat pajak penghasilan 10.840.615 38,39 22.485.951 Income tax benefit
liabilitas imbalan pasti - setelah pajak (31.955.483) 38 (61.001.030) benefit obligation - net of tax
Pos-pos yang akan Items that may be reclassified
direklasifikasi ke laba rugi: subsequently to profit or loss:
Net changes in fair value of
Perubahan neto nilai wajar investasi available-for-sale investments in
efek tersedia untuk dijual - 38 492.451 securities
Mutasi neto lindung nilai arus kas 1.157.903 38 (1.101.102) Net movement on cash flow hedges
Selisih kurs dari penjabaran Exchange difference from translation
kegiatan usaha luar negeri (135.895.379) 38 198.332.979 of foreign operation
Jumlah penghasilan komprehensif lain Total other comprehensive income
tahun berjalan - setelah pajak (166.692.959) 136.723.298 for the year - net of tax
JUMLAH LABA KOMPREHENSIF TOTAL COMPREHENSIVE INCOME
TAHUN BERJALAN 4.368.343.864 4.662.164.336 FOR THE YEAR
LABA YANG DAPAT DIATRIBUSIKAN KEPADA: NET PROFIT ATTRIBUTABLE TO:

Pemilik entitas induk 4.521.596.208 40 4.521.490.578 Owners of parent entity
Kepentingan nonpengendali 13.440.615 31 3.950.460 Non-controlling interests
LABA BERSIH TAHUN BERJALAN 4.535.036.823 4.525.441.038 NET PROFIT FOR THE YEAR
JUMLAH LABA KOMPREHENSIF YANG DAPAT TOTAL COMPREHENSIVE INCOME

DIATRIBUSIKAN KEPADA: ATTRIBUTABLE TO:
Pemilik entitas induk 4.395.313.845 4.599.417.054 Owners of parent entity
Kepentingan nonpengendali (26.969.981) 62.747.282 Non-controlling interests
JUMLAH LABA KOMPREHENSIF TOTAL COMPREHENSIVE INCOME
TAHUN BERJALAN 4.368.343.864 4.662.164.336 FOR THE YEAR
Laba per saham dasar Basic earnings per share

(dinyatakan dalam angka penuh (expressed in Rupiah full
Rupiah per saham) 762 40 762 amount per share)
Lihat catatan atas laporan keuangan konsolidasian yang merupakan See accompanying notes to consolidated financial statements which
bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. are an integral part of the consolidated financial statements.
-3-
Annual Report 2016

419
LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2016 DAN 2015 FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
Selisih Komponen Ekuitas Lainnya/ Saldo laba/
transaksi Other Components of Equity Retained earnings
ekuitas dengan Keuntungan dan Selisih kurs Ekuitas yang
pihak non-pengendali/ kerugian aktuarial dari penjabaran dapat diatribusikan
Difference in value Revaluasi investasi atas kewajiban Cadangan kegiatan usaha kepada pemilik
Tambahan of equity transaction efek tersedia imbalan pasti/ lindung nilai luar negeri/ Belum entitas induk/ Kepentingan
modal disetor/ with untuk dijual/ Actuarial gains arus kas/ Exchange difference Ditentukan ditentukan Equity attributable non-pengendali/
Catatan/ Modal saham/ Additional non-controlling AFS investments or losses of Cash flow hedge from translation penggunaannya/ penggunaannya/ to owners of Non-controlling Jumlah ekuitas/
Notes Capital stock paid-in capital interest revaluation defined benefits reserve of foreign operation Appropriated Unappropriated the parent entity interests Total equity
Saldo per 1 Januari 2015 593.152.000 1.458.257.900 - (492.451) 114.758.379 - 360.962.862 253.338.000 21.266.487.985 24.046.464.675 958.465.329 25.004.930.004 Balance as of January 1, 2015
Laba tahun berjalan - - - - - - - - 4.521.490.578 4.521.490.578 3.950.460 4.525.441.038 Profit for the year
Komponen ekuitas lainnya 38 - - - 492.451 (60.298.148) (1.101.102) 138.833.275 - - 77.926.476 58.796.822 136.723.298 Other components of equity
Kepentingan non-pengendali Non-controlling interests
sehubungan akuisisi entitas anak - - - - - - - - - - 10.000.000 10.000.000 of newly established subsidiaries
Dividen 30 - - - - - - - - (2.226.339.939) (2.226.339.939) (9.956.000) (2.236.295.939) Dividends
Saldo per 31 Desember 2015 593.152.000 1.458.257.900 - - 54.460.231 (1.101.102) 499.796.137 253.338.000 23.561.638.624 26.419.541.790 1.021.256.611 27.440.798.401 Balance as of December 31, 2015
Laba tahun berjalan - - - - - - - - 4.521.596.208 4.521.596.208 13.440.615 4.535.036.823 Profit for the year
Komponen ekuitas lainnya 38 - - - - (32.523.501) 1.157.903 (94.916.765) - - (126.282.363) (40.410.596) (166.692.959) Other components of equity
Kepentingan non-pengendali Non-controlling interests of newly
sehubungan dengan pendirian established and acquired
dan akuisisi entitas anak serta subsidiaries and corresponding
perubahan ekuitas yang terkait - - 28.928.287 - - - - - - 28.928.287 554.825.394 583.753.681 change in equity
Dividen 30 - - - - - - - - (1.808.588.162) (1.808.588.162) (9.916.327) (1.818.504.489) Dividends
Saldo per 31 Desember 2016 593.152.000 1.458.257.900 28.928.287 - 21.936.730 56.801 404.879.372 253.338.000 26.274.646.670 29.035.195.760 1.539.195.697 30.574.391.457 Balance as of December 31, 2016
Lihat catatan atas laporan keuangan konsolidasian yang merupakan See accompanying notes to consolidated financial statements
bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. which are an integral part of the consolidated financial statements.
PT Semen Indonesia (Persero) Tbk.

420

LAPORAN ARUS KAS KONSOLIDASIAN CONSOLIDATED STATEMENTS OF CASH FLOWS
UNTUK TAHUN-TAHUN YANG BERAKHIR FOR THE YEARS ENDED
31 DESEMBER 2016 DAN 2015 DECEMBER 31, 2016 AND 2015
2016 2015
ARUS KAS DARI AKTIVITAS OPERASI CASH FLOWS FROM OPERATING ACTIVITIES
Penerimaan dari pelanggan 26.209.690.579 26.682.379.871 Receipts from customers
Pembayaran kepada pemasok (17.035.981.917) (15.246.599.163) Payments to suppliers
Pembayaran kepada karyawan (2.614.362.538) (2.441.072.759) Payments to employees
Penghasilan bunga yang diterima 183.772.800 241.075.757 Interest income received
Penarikan (penempatan)
kas dan setara kas Withdrawal (placement) of restricted
yang dibatasi penggunaannya 11.485.152 (11.772.901) cash and cash equivalents
Pembayaran pajak penghasilan (1.544.512.150) (1.343.605.458) Payment of income taxes
Pembayaran bunga dan beban keuangan (178.424.986) (684.458.377) Payment of interest and finance charges
Penerimaan lainnya - neto 148.344.036 92.639.567 Others receipts - net
Arus Kas Neto Yang Diperoleh Dari Net Cash Flows Provided by
Aktivitas Operasi 5.180.010.976 7.288.586.537 Operating Activities
ARUS KAS DARI AKTIVITAS INVESTASI CASH FLOWS FROM INVESTING ACTIVITIES
Aset tetap: Fixed Assets:
Pembelian aset tetap (5.065.208.221) (5.168.034.789) Acquisition of fixed assets
Hasil penjualan aset tetap 12.241.805 299.272 Proceeds from sale of fixed assets
Akuisisi entitas anak (422.832.696) - Acquisition of subsidiaries
Akuisisi entitas asosiasi - (55.000.000) Acquisition of an associate
Penerimaan dari saham entitas anak Proceeds from issuance of shares
yang dikeluarkan kepada kepentingan of subsidiary to a
non-pengendali 20.601.100 10.000.000 non-controlling interest
Uang muka investasi (89.848.189) (450.141.500) Advances for investment
Penambahan beban tangguhan (14.688.648) (30.773.814) Additions to deferred charges
Penambahan aset takberwujud (171.812) (1.070.207) Additions to intangible assets
Pencairan investasi jangka pendek - neto 14.945.463 90.101.698 Withdrawal of short-term investments - net
Dividen yang diterima 15.754.598 12.348.697 Dividends received
Arus Kas Neto Yang Digunakan Untuk Net Cash Flows Used in
Aktivitas Investasi (5.529.206.600) (5.592.270.643) Investing Activities
ARUS KAS DARI AKTIVITAS PENDANAAN CASH FLOWS FROM FINANCING ACTIVITIES
Pembayaran kembali utang bank Repayment of long-term
jangka panjang (1.118.500.385) (514.910.387) borrowings
Pembayaran kembali utang bank Repayment of short-term
jangka pendek (686.904.444) (660.270.531) borrowings
Pembayaran kewajiban sewa pembiayaan (167.333.069) (65.111.499) Payment of finance lease liabilities
Pembayaran dividen: Payment of dividends:
Pemilik entitas induk (1.808.588.162) (2.226.339.939) Equity holders of parent entity
Kepentingan non-pengendali (9.916.327) (9.956.000) Non-controlling interest
Perolehan utang bank Proceeds from long-term
jangka panjang 1.812.861.839 309.275.000 borrowings
Perolehan utang bank Proceeds from short-term
jangka pendek 1.198.002.363 509.066.091 borrowings
Arus Kas Neto Yang Digunakan Untuk Net Cash Flows Used in
Aktivitas Pendanaan (780.378.185) (2.658.247.265) Financing Activities
Penurunan neto Net decrease in

kas dan setara kas (1.129.573.809) (961.931.371) cash and cash equivalents
Cash and cash equivalents
Kas dan setara kas pada awal tahun 3.964.018.180 4.925.949.551 at the beginning of the year
KAS DAN SETARA KAS CASH AND CASH EQUIVALENTS

PADA AKHIR TAHUN 2.834.444.371 3.964.018.180 AT THE END OF THE YEAR
Komponen kas setara kas terdiri dari: Components of cash and cash equivalents:
Kas 9.754.581 2.782.678 Cash on hand
Bank 1.172.596.669 523.303.043 Cash in banks
Deposito berjangka 1.652.093.121 3.437.932.459 Time deposits
2.834.444.371 3.964.018.180
Lihat catatan atas laporan keuangan konsolidasian yang merupakan See accompanying notes to consolidated financial statements
bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. which are an integral part of the consolidated financial statements.
-5-
Annual Report 2016

421
CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE CONSOLIDATED
KONSOLIDASIAN TANGGAL FINANCIAL STATEMENTS
31 DESEMBER 2016 DAN 2015 DAN AS OF DECEMBER 31, 2016 AND 2015 AND
PADA TANGGAL 31 DESEMBER 2016 DAN 2015 DECEMBER 31, 2016 AND 2015
kecuali dinyatakan lain) unless otherwise stated)
1. UMUM 1. GENERAL
a. Pendirian dan Informasi Umum a. Establishment and General Information
PT Semen Indonesia (Persero) Tbk PT Semen Indonesia (Persero) Tbk

(“Perseroan“) didirikan dengan nama NV Pabrik (the “Company”) was established on March 25,
Semen Gresik pada tanggal 25 Maret 1953 1953 as NV Pabrik Semen Gresik based on
dengan Akta Notaris Raden Mr. Soewandi Notarial Deed No. 41 of Raden Mr. Soewandi.
No. 41. Pada tanggal 17 April 1961, NV Pabrik On April 17, 1961, NV Pabrik Semen Gresik
Semen Gresik dijadikan Perusahaan Negara has become a state enterprise (Persero) based
(Persero) berdasarkan Peraturan Pemerintah on Government Regulation No. 132 year 1961,
No. 132 tahun 1961, kemudian berubah menjadi and subsequently became PT Semen Gresik
PT Semen Gresik (Persero) berdasarkan Akta (Persero) by virtue of Notarial Deed No.81
Notaris J.N. Siregar, S.H. No.81 tanggal dated October 24, 1969 of J.N. Siregar, S.H.
24 Oktober 1969.
Anggaran Dasar Perseroan telah mengalami The Company’s Articles of Association have been
beberapa kali perubahan dan yang terakhir amended several times, the most recent was
antara lain mengenai perubahan Dewan Direksi concerning, among others, the change in the
berdasarkan Akta No. 122 tanggal 16 Mei 2016 Board of Directors based on National Deed
yang dibuat dihadapan Leolin Jayayanti, S.H, No. 122 dated May 16, 2016 of Leolin Jayayanti,
Notaris di Jakarta. Perubahan ini telah SH, Notary in Jakarta. This amendment was
dilaporkan kepada Menteri Hukum dan Hak reported to Ministry of Law and Human Rights of
Asasi Manusia Republik Indonesia. the Republic of Indonesia.
Ruang lingkup kegiatan utama Perseroan The scope of activities of the Company in
menurut Anggaran Dasar adalah menjalankan accordance with its Articles of Association is to
usaha dalam bidang industri persemenan. engage in the cement industry. The Company
Lokasi pabrik semen Perseroan dan Entitas and its subsidiaries (“the Group”) cement plants
Anak (“Grup“) berada di Gresik dan Tuban di are located in Gresik and Tuban in East Java,
Jawa Timur, Indarung di Sumatera Barat, Indarung in West Sumatera, Pangkep in South
Pangkep di Sulawesi Selatan dan Quang Ninh di Sulawesi and Quang Ninh in Vietnam. The
Vietnam. Hasil produksi Grup dipasarkan di Group's products are marketed domestically
dalam dan di luar negeri. and internationally.
Perseroan berkedudukan dan berkantor pusat di The Company’s head office is located at
Jl. Veteran, Gresik 61122, Jawa Timur. Jl. Veteran, Gresik 61122, East Java. The
Perseroan memulai kegiatan komersialnya pada Company commenced commercial operations
tanggal 7 Agustus 1957. on August 7, 1957.
Pemegang saham pengendali Perseroan adalah The Company's controlling shareholder is the
Pemerintah Republik Indonesia. Government of the Republic of Indonesia.
422 PT Semen Indonesia (Persero) Tbk. - 6-



Susunan Dewan Komisaris dan Direksi The members of the Company’s Board of
Perseroan, Komite Audit, Kepala Internal Audit Commissioners and Directors, member of Audit
dan Sekretaris Perusahaan pada tanggal Committee, Head of Internal Audit, and
31 Desember 2016 dan 2015 adalah sebagai Corporate Secretary as at December 31, 2016
berikut: and 2015 were as follows:
2016 2015
Dew an Kom isaris Board of Com m issioners
Komisaris Utama Mahendra Siregar Mahendra Siregar President Commissioner
Komisaris Hambra Achmad Jazidie Commissioner
Komisaris Marw anto Harjow iryono Marw anto Harjow iryono Commissioner
Komisaris Wahyu Hidayat Wahyu Hidayat Commissioner
Komisaris Sony Subrata Sony Subrata Commissioner
Komisaris Independen Djamari Chaniago Hadi Waluyo Independent Commissioner
Komisaris Independen Muchammad Zaidun Muchammad Zaidun Independent Commissioner
Dew an Direksi Board of Directors

Direktur Utama Rizkan Chandra Suparni President Director
Direktur Darmaw an Junaidi Ahyanizzaman Director
Direktur Budi Sisw oyo Rizkan Chandra Director
Direktur Aunur Rosyidi Amat Pria Darma Director
Direktur Gatot Kustyadji Aunur Rosyidi Director
Direktur Ahyanizzaman Gatot Kustyadji Director
Direktur Johan Samudra Johan Samudra Director
Kom ite Audit Audit Com m ittee

Ketua Djamari Chaniago Hadi Waluyo Chairman
Anggota Hambra Achmad Jazidie Member
Anggota Sahat Pardede Sahat Pardede Member
Anggota Elok Tresnaningsih Elok Tresnaningsih Member
Kepala Internal Audit Ginarko Isnubroto Ginarko Isnubroto Head of Internal Audit
Sekretaris Perusahaan Agung Wiharto Agung Wiharto Corporate Secretary
Personil manajemen kunci meliputi Dewan Key management personnel are the Company’s
Komisaris dan Direksi Perseroan. Kompensasi Board of Commissioners and Directors.
imbalan kerja jangka pendek yang dibayarkan Short-term compensation paid to the key
kepada personil manajemen kunci Perseroan management personnel of the Company for the
untuk periode yang berakhir pada 31 Desember period ended December 31, 2016 amounted to
2016 sebesar Rp71.436.355 (31 Desember Rp71,436,355 (December 31, 2015:
2015: Rp91.632.377). Tidak ada kompensasi Rp91,632,377). There is no compensation of
dalam bentuk imbalan pascakerja, imbalan kerja post-employment benefits, other long-term
jangka panjang lainnya, pesangon pemutusan benefits, termination benefits, and share-based
kontrak kerja dan pembayaran berbasis saham. payment.
Pada tanggal 31 Desember 2016 dan 2015, Grup As of December 31, 2016 and 2015, the Group
mempunyai masing-masing 6.828 dan 6.981 had 6,828 and 6,981 employees, respectively.
karyawan.
Annual Report 2016

423
- 7-
b. Entitas Anak b. Consolidated Subsidiaries
Kepemilikan saham Perseroan pada entitas The Company’s ownership interests in

anak yang dikonsolidasi adalah sebagai berikut: consolidated subsidiaries are as follows:
Dimulainya
kegiatan
Jenis usaha/ Persentase kepemilikan/ komersial/ Jumlah aset sebelum eliminasi/
Entitas anak/ Domisili/ Nature of Percentage of ownership Start of commercial Total assets before eliminations
Subsidiaries Domicile business 2016 2015 activities 2016 2015
PT Semen Padang (“SP”) Indarung, Produsen semen/ 99,99% 99,99% 1913 9.210.952.435 7.393.030.784
dan entitas anak/ Sumatera Barat/ Cement manufacturing
and its subsidiaries West Sumatera
PT Sepatim Batamtama Batam, Pengantongan semen 97,00% 97,00% 1994 33.050.558 29.396.686
(“SB”) 97% saham Kepulauan Riau dan distribusi/Cement
dimiliki SP/97% shares packing and distribution
owned by SP
PT Bima Sepaja Abadi T anjung Priok, Pengantongan semen 80,00% 80,00% 1996 163.322.799 182.661.386
(”BSA”) 80% saham Jakarta dan distribusi/Cement
owned by SP
PT Semen T onasa (“ST ”) Pangkep, Produsen semen/ 99,99% 99,99% 1968 8.730.454.358 8.367.129.199
Sulawesi Selatan/ Cement manufacturing
South Sulawesi
PT Semen Gresik (“SG”) Gresik, Produksi semen/ 99,96% 99,96% - 4.814.349.323 3.175.043.752
Jawa T imur/ Cement manufacturing
East Java
PT United T ractors Semen T uban, Penambangan 55,00% 55,00% 1992 380.306.292 324.265.574
Gresik (“UT SG”) Jawa T imur/ batu kapur dan tanah liat/
East Java Limestone and clay mining
PT Industri Kemasan T uban, Produsen kantong semen/ 60,00% 60,00% 1994 273.525.109 236.139.375
Semen Gresik (“IKSG”) Jawa T imur/ Cement bag manufacturing
East Java
PT Kawasan Industri Gresik, Pengembangan kawasan 65,00% 65,00% 1991 341.708.176 345.076.082
Gresik (“KIG”) Jawa T imur/ industri/Industrial real
East Java estate
PT SGG Energi Prima (”SEP”) Gresik, Pertambangan, perdagangan 97,00% 97,00% 2012 93.906.025 39.186.122
Jawa T imur/ dan pengangkutan Batubara/
East Java Mining, trade and coal
transportations
PT Semen Indonesia Beton ("SIB")

dan entitas anak/and its subsidiary Gresik, Produksi beton siap pakai/ 99,99% 99,99% 2012 1.421.925.523 554.984.487
dahulu bernama/previously named Jawa T imur/ Production ready mix concrete
PT SGG Prima Beton ("SPB") East Java
PT Varia Usaha Beton ("VUB") Sidoarjo, Produksi beton siap pakai/ 63,15% - 1991 594.612.752 -
50,90% saham dimiliki SIB dan Jawa T imur/ Ready mix concreate production
49,10% saham dimiliki VU East Java
50,90% shares owned by SIB and
49,10% shares owned by VU
PT Krakatau Semen Cilegon, Produksi bahan baku semen/ 50,00% 50,00% 2014 242.366.162 95.063.941
Indonesia ("KSI") Jawa Barat/ Cement material manufacturing
West Java
PT Sinergi Informatika Jakarta Selatan, Sistem Informasi/ 100,00% 100,00% 2014 89.673.220 48.773.225
Semen Indonesia ("SISI") DKI Jakarta Information system
T hang Long Cement Joint Hanoi, Produksi semen/ 70,00% 70,00% 2008 2.951.778.700 3.182.910.109
Stock Company (”T LCC”) Vietnam Cement manufacturing
dan entitas anak/and its subsidiaries
T hang Long Cement Joint Hanoi, Produksi semen/ 69,57% 69,57% - 39.852.420 39.022.404
Stock Company 2 Vietnam Cement manufacturing
(”T LCC2”) 99,39% saham
dimiliki T LCC/99.39% shares
owned by TLCC
An Phu Cement Joint Hanoi, Produksi semen/ 69,93% 69,93% - 55.900.217 59.867.825
Stock Company (”APCC”) Vietnam Cement manufacturing
99,90% saham
dimiliki T LCC/99.90% shares
owned by TLCC
PT Semen Indonesia Aceh Produksi semen/ 38,28% - - 466.951.438 -

Aceh ("SIA") Cement manufacturing
PT Semen Indonesia Jakarta Selatan, Investasi/Investment 100,00% - - 6.472.445 -

International ("SII") DKI Jakarta
PT Semen Kupang Kupang Produksi semen/ 99,48% - - - -

Indonesia ("SKI") NT T Cement manufacturing
PT Varia Usaha ("VU") Gresik, Perdagangan, transportasi, jasa 73,65% - 1974 1.753.895.831 -
dan entitas anak/ Jawa T imur/ bongkar muat dan konstruksi/
and its subsidiaries East Java Trade, transportation,
and construction
PT Waru Abadi ("WA") Gresik, Perdagangan/Trading 73,61% - 1989 270.622.006 -

99.50% saham dimiliki VU/ Jawa T imur/
99,50% shares owned by VU East Java
PT Varia Usaha Bahari ("VUBA") Gresik, Jasa Bongkar Muat/ 73,65% - 1992 64.530.843 -
100% saham dimiliki VU Jawa T imur/ Stevedoring Services
100% shares owned by VU East Java
PT Varia Usaha Dharma Segara ("VUDS") Gresik, Jasa Pengurusan T ransportasi/ 73,65% - 1995 43.594.380 -
100% saham dimiliki VU Jawa T imur/ Freight Forwarding
PT Varia Usaha Lintas Segara ("VULS") Gresik, Jasa T ransportasi Laut/ 73,65% - 1997 54.080.857 -
100% saham dimiliki VU Jawa T imur/ Sea Freight



Pada tanggal 1 Juni 2016, berdasarkan Akta On June 1, 2016, based on Notarial Deed No.
Notaris No. 12, Notaris Leolin Jayayanti, S.H., 12, Notary of Leolin Jayayanti, S.H., M.Kn., the
M.Kn., Perseroan mendirikan PT Semen Company established PT Semen Indonesia
Indonesia International (SII). Akta ini disahkan International (SII). The deed was approved by
oleh Menteri Hukum dan Hak Asasi Manusia Minister of Law and Human Rights of the
Republik Indonesia dalam surat keputusan No. Republic of Indonesia in his Decision Letter
AHU-0027320.AH.01.01.tahun 2016, tanggal 6 No. AHU-0027320.AH.01.01.tahun 2016, dated
Juni 2016. Hingga 31 Desember 2016, SII belum June 6, 2016. As of December 31, 2016, SII has
beroperasi secara komersial. not yet started its commercial operation.
Pada tanggal 17 Maret 2016, berdasarkan Akta On March 17, 2016, based on Notarial Deed
Notaris No. 40, Notaris Leolin Jayayanti, S.H, No. 40, Notary of Leolin Jayayanti, S.H, the
Perseroan dan PT Samana Citra Agung (SCA) Company and PT Samana Citra Agung (SCA)
mendirikan Perusahaan dengan nama established a Company, PT Semen Indonesia
PT Semen Indonesia Aceh (SIA). Akta ini Aceh (SIA). The deed was approved by Minister
disahkan oleh Menteri Hukum dan Hak Asasi of Law and Human Rights of the Republic of
Manusia Republik Indonesia dalam surat Indonesia in his decision letter
keputusan No. AHU-0014511.AH.01.01.tahun No. AHU-0014511.AH.01.01.tahun 2016, dated
2016, tanggal 18 Maret 2016. Pada tanggal March 18, 2016. As of December 31, 2016, SIA
31 Desember 2016, SIA belum beroperasi has not yet started its commercial operation.
secara komersial.
Direksi Perseroan menilai apakah Grup memiliki The directors of the Company assessed
pengendalian atas SIA berdasarkan whether or not the Group has control over SIA
kemampuan Grup untuk mengarahkan kegiatan based on the practical abilitiy of the Group to
yang relevan dari SIA secara sepihak. Dalam direct the relevant activities of SIA unilaterally.
membuat pertimbangannya, Direksi In making their judgment, the directors
mempertimbangkan surat kuasa dari SCA considered the letter of power of attorney from
kepada Perseroan untuk melaksanakan SCA to the Company in which to exercise power
kewenangan sebagai pemegang saham as majority shareholder in the General Meeting
mayoritas dalam Rapat Umum Pemegang of Shareholder of SIA. After assessment, the
Saham SIA. Setelah penilaian, direksi directors concluded that the Group has a
menyimpulkan bahwa Grup memiliki hak suara sufficiently dominant voting interest to direct the
yang cukup dominan untuk mengarahkan relevant activities of SIA.
kegiatan yang relevan dari SIA dan karenanya
Grup memiliki pengendalian atas SIA.
Pada tanggal 19 Desember 2016 sesuai On December 19, 2016, based on Decision of
Keputusan Para Pemegang Saham Diluar Rapat Shareholder outside General Meeting of
Umum Pemegang Saham, para pemegang Shareholder, the shareholders agreed to
saham menyetujui penambahan modal saham increase its investment in SIA to become
ditempatkan di SIA menjadi 454.500 saham 454,500 shares with par value per share of
dengan nilai per lembar saham Rp1.000.000 Rp1,000,000 with the ownership of the
dengan kepemilikan Perseroan adalah 173.990 Company is 173,990 or by 38.28%.
saham atau sebanyak 38,28%.
Pada tanggal 7 September 2016, berdasarkan Akta On September 17, 2016, based on Notarial
Notaris No. 20, Notaris Fatimah Zakiyyah, S.Si, Deed No. 20, Notary of Fatimah Zakiyyah, S.Si,
S.H,M.Kn, para pemegang saham SIB menyetujui S.H,M.Kn, the shareholders of the SIB agreed
penambahan modal dasar dan modal ditempatkan to increase its authorized and issued capital and
SIB dan menyetujui perubahan nama SIB semula change its name from PT SGG Prima Beton to
PT SGG Prima Beton menjadi PT Semen become PT Semen Indonesia Beton (SIB). The
Indonesia Beton. Akta ini dietujui oleh Menteri deed was approved by Minister of Law and
Hukum dan Hak Asasi Manusia Republik dalam Human Rights of the Republic of Indonesia in
surat keputusan No. AHU-0016229.AH.01.02 his decision letter No. AHU-0016229.AH.01.02
tahun 2016 tanggal 7 September 2016. tahun 2016, dated September 7, 2016.
Annual Report 2016

425
Berdasarkan Akta Notaris No. 131 tanggal Based on Notarial Deed No. 131 dated June 29,
29 Juni 2016, Notaris Dr. Slamet Wahyudi, S.H., 2016, Notary Dr. Slamet Wahyudi, S.H., M.Kn
M.Kn, VUB menerbitkan saham portepel VUB issued stock portfolio of 2,900,000 shares
sejumlah 2.900.000 lembar saham dengan nilai with a value Rp60,972,500 which were
Rp60.972.500 dan dibeli seluruhnya oleh SIB. purchased entirely by SIB. The deed was
Akta ini disahkan oleh Menteri Hukum dan Hak approved by Minister of Law and Human Rights
Asasi Manusia Republik Indonesia dalam surat of the Republic of Indonesia in its decision letter
keputusan No. AHU-AH.01.03-0068600, tanggal No. AHU-AH.01.03-0068600, dated August 3,
3 Agustus 2016. 2016.
Berdasarkan Akta Notaris No. 2 tanggal Based on Notarial Deed No. 2 dated
1 Nopember 2016, Notaris Fatimah Zakkiyah S.Si, November 1, 2016, Notary Fatimah Zakkiyah
S.H,M.Kn, the shareholders of PT Varia Usaha S.Si, S.H,M.Kn, the shareholders of PT Varia
(VU) setuju terhadap penjualan 349.350 lembar Usaha (VU) agreed to sell the ownership of
saham DPSG kepada Perseroan dengan 349,350 shares of DPSG to the Company with
persentase kepemilikan sebesar 48,7%, sehingga 48.7% percentage ownership, thus, increasing
persentase kepemilikan Perseroan pada VU the Company’s percentage of ownership to VU
meningkat menjadi 73,65% pada tanggal 31 of 73.65% as of December 31, 2016 (24.95%
Desember 2016 (24,95% pada tanggal 31 as of December 31, 2015). The deed was
Desember 2015). Akta ini disetujui oleh Menteri approved by Minister of Law and Human Rights
Hukum dan Hak Asasi Manusia Republik Indonesia of the Republic Indonesia in its decision letter
dalam surat keputusan No. AHU-AH.01.03-01- No AHU-AH.01.03-01-0103732 dated
0103732 tanggal 30 Nopember 2016. November 30, 2016.
PT Semen Kupang Indonesia (SKI) didirikan PT Semen Kupang Indonesia (SKI) established
berdasarkan Akta Notaris No. 170 tanggal based on Notarial Deed No. 170 dated
28 Januari 2016, Notaris Verawati Ivoney Tefa, January 28, 2016, Notary of Verawati Ivoney
S.H, M.K.. Akta ini disetujui oleh Menteri Hukum Tefa, S.H, M.K.. The deed was approved by
dan Hak Asasi Manusia Republik Indonesia Minister of Law and Human Rights of the
dalam surat keputusan No. AHU- Republic of Indonesia in his Decision Letter No.
0005184.AH.01.01.tahun 2016, tanggal 28 AHU-0005184.AH.01.01.tahun 2016, dated
Januari 2016. Hingga 31 Desember 2016, SKI January 28, 2016. As of December 31, 2016, SKI
belum beroperasi secara komersial. has not yet started its commercial operation.
Pada tanggal 9 Desember 2016, berdasarkan On December 9, 2016, based on Notarial Deed
Akta Notaris No. 30, Notaris Ny. Leolin No. 30, notary Notaris Ny. Leolin Jayayanti,
Jayayanti, S.H., M.Kn., tentang perubahan S.H., M.Kn., regarding the change of Article of
anggaran dasar PT Semen Kupang Indonesia Association of PT Semen Kupang Indonesia
(SKI), para pemegang saham SKI menyetujui (SKI), the shareholders of SKI agreed to
penambahan modal dasar SKI menjadi sebesar increase its authorized capital becoming
Rp500.000.000 terbagi atas 500.000 lembar Rp500,000,000 which consists of 500,000
saham dan menyetujui penambahan modal shares and agreed to increase its issued capital
ditempatkan dan disetor SKI menjadi 192.000. becoming 192,000, thus, increasing the
Sehingga kepemilikan Perseroan pada SKI Company’s percentage ownership of SKI
meningkat menjadi 99,48% pada tanggal become 99.48% as of December 31, 2016. This
31 Desember 2016. Akta ini disetujui oleh deed was approved by Minister of Law and
Menteri Hukum dan Hak Asasi Manusia Republik Human Rights of the Republic of Indonesia in its
Indonesia dalam surat keputusan No. AHU- decision letter No. AHU-0024987.AH.01.02
0024987.AH.01.02 tanggal 23 Desember 2016. dated December 23, 2016.

- 10 -


c. Penawaran Umum Efek Perseroan c. Public Offering of Shares of the Company
Perseroan mendapat persetujuan melalui The Company obtained the approval of the
Keputusan Menteri Keuangan Minister of Finance in his decision
No. 859/KMK.01/1987 tanggal 23 Desember No. 859/KMK.01/1987 dated December 23,
1987, juncto Keputusan Menteri Keuangan 1987, as amended by Decree
No. 1548/KMK.013/1990 tanggal 4 Desember No. 1548/KMK.013/1990 dated December 4,
1990 untuk menawarkan saham kepada 1990, to offer its shares to the public. Based on
masyarakat. Berdasarkan izin Menteri Keuangan the approval of the Minister of Finance cq Head
cq Ketua Badan Pengawas Pasar Modal dan of Capital Market and Financial Institutions
Lembaga Keuangan (“BAPEPAM-LK”) No. S- Supervisory Agency ("BAPEPAM-LK") No.S-
622.PM/1991 tanggal 17 Mei 1991 Perseroan 622.PM/1991 dated May 17, 1991, the
melakukan Penawaran Umum Perdana kepada Company conducted an Initial Public Offering of
masyarakat atas 40.000.000 saham dengan 40,000,000 shares with nominal amount of
nominal per saham Rp1.000 (angka penuh) Rp1,000 (full amount) and offering price of
dengan harga perdana per saham sebesar Rp7,000 (full amount) per share. On July 4,
Rp7.000 (angka penuh). Pada tanggal 4 Juli 1991, BAPEPAM-LK approved the listing of
1991, BAPEPAM-LK menyetujui pencatatan 70,000,000 of the Company’s shares on the
saham sebanyak 70.000.000 saham di Bursa Jakarta Stock Exchange and Surabaya Stock
Efek Jakarta dan Bursa Efek Surabaya Exchange (currently merged as the Indonesia
(sekarang bergabung menjadi Bursa Efek Stock Exchange).
Indonesia).
Pada tanggal 30 Mei 1995, Bursa Efek Indonesia On May 30, 1995, the Indonesia Stock
menyetujui pencatatan tambahan 78.288.000 Exchange approved the additional listing of
saham Perseroan. Pada tanggal 20 Juli 1995, 78,288,000 of the Company’s shares. On
BAPEPAM-LK menyetujui Penawaran Umum July 20, 1995, BAPEPAM-LK agreed to a rights
Terbatas sejumlah 444.864.000 saham biasa issue of 444,864,000 common shares on a
dengan dasar tiga saham baru untuk setiap three to one basis.
saham yang beredar.
Pada tanggal 7 Agustus 2007, Perseroan telah On August 7, 2007 the Company executed a
melakukan pemecahan saham dengan stock split with a ratio of 1:10. Total issued
perbandingan 1:10. Jumlah lembar saham shares after the stock split became
Perseroan yang beredar setelah pemecahan 5,931,520,000 shares with an opening share
saham tersebut menjadi sebesar 5.931.520.000 price after exercising the stock split of Rp5,000
lembar saham dengan harga pasar saham awal (full Rupiah amount).
setelah pelaksanaan pemecahan saham
tersebut adalah Rp5.000 (Rupiah penuh).
Pada tanggal 31 Desember 2016, seluruh saham As of December 31, 2016, all of the Company’s
Perseroan atau sejumlah 5.931.520.000 lembar 5,931,520,000 outstanding shares are listed on
saham telah dicatatkan pada Bursa Efek the Indonesia Stock Exchange.
Indonesia.
- 11 -
Annual Report 2016
427
2. PENERAPAN PERNYATAAN STANDAR 2. ADOPTION OF NEW AND REVISED

AKUNTANSI KEUANGAN (“PSAK”) BARU DAN STATEMENTS OF FINANCIAL ACCOUNTING
REVISI PSAK SERTA INTERPRETASI STÁNDAR STANDARDS (“PSAK”) AND INTERPRETATION
AKUNTANSI KEUANGAN (“ISAK”) OF FINANCIAL ACCOUNTING STANDARDS
(“ISAK”)
a. Standar yang Berlaku Efektif pada Tahun a. Effective Standards in the Current Year
Berjalan
Dalam tahun berjalan, Grup telah menerapkan In the current year, the Group has applied a new
standar baru, sejumlah amandemen dan standard, a number of amendments, and an
interpretasi PSAK yang dikeluarkan oleh Dewan interpretation to PSAK issued by the Financial
Standar Akuntansi Keuangan dari Ikatan Akuntan Accounting Standard Board of the Indonesian
Indonesia yang relevan dengan operasinya dan Institute of Accountants that are relevant to its
efektif untuk periode akuntansi yang dimulai pada operations and effective for accounting period
1 Januari 2016. Amandemen PSAK 5 Segmen beginning on January 1, 2016. The amendments
Operasi (i), mensyaratkan entitas untuk to PSAK 5 Operating Segments (i) require an
mengungkapkan pertimbangan yang dibuat oleh entity to disclose the judgements made by
manajemen dalam menerapkan kriteria management in applying the aggregation criteria
penggabungan segmen operasi, termasuk to operating segments, including a brief
deskripsi singkat tentang segmen operasi yang description of the operating segments
telah digabungkan dan indikator ekonomik yang aggregated and the economic indicators
telah dinilai dalam menentukan bahwa segmen assessed in determining whether the operating
operasi yang digabungkan memiliki karakteristik segments have “similar economic
ekonomik yang serupa; dan (ii) mengklarifikasi characteristics”; and (ii) clarify that a
bahwa rekonsiliasi total aset segmen dilaporkan reconciliation of the total of the reportable
terhadap aset entitas hanya diungkapkan jika aset segments’ assets to the entity’s assets should
segmen secara regular disediakan kepada only be provided if segment assets are regularly
pengambil keputusan operasional. Grup provided to the chief operating decision-maker.
menggabungkan beberapa segmen operasi The Group has aggregated several operating
menjadi satu segmen operasi tunggal dan segments into a single operating segment and
membuat pengungkapan yang disyaratkan dalam made the required disclosures in Note 43 in
Catatan 43 sesuai dengan amandemen. accordance with the amendments.
Penerapan amandemen dan interpretasi standar The appllication of the following amendments,
berikut tidak memiliki pengaruh signifikan atas and intepretation to standards have not resulted
pengungkapan atau jumlah yang dicatat di dalam to material impact to disclosures or on the
laporan keuangan konsolidasian pada tahun amounts recognized in the current and prior year
berjalan dan tahun sebelumnya: consolidated financial statements:
 Amandemen PSAK 4: Laporan Keuangan   Amendments to PSAK 4: Separate Financial

Tersendiri Statements
 Amandemen PSAK 7: Pengungkapan Pihak-   Amendments to PSAK 7: Related Party
pihak Berelasi Disclosures
 Amandemen PSAK 15: Investasi pada Entitas   Amendments to PSAK 15: Investment in
Asosiasi dan Ventura Bersama Associates and Joint Venture
 Amandemen PSAK 16: Aset Tetap   Amendments to PSAK 16: Property, Plant and
Equipment
 Amandemen PSAK 19: Aset Takberwujud   Amendments to PSAK 19: Intangible Assets
 Amandemen PSAK 22: Kombinasi Bisnis  Amendments to PSAK 22: Business
combinations
 Amandemen PSAK 24: Imbalan Kerja   Amendments to PSAK 24: Employee Benefits
 Amandemen PSAK 65: Laporan Keuangan   Amendments to PSAK 65: Consolidated
Konsolidasian Financial Statements
 Amandemen PSAK 66: Pengaturan Bersama   Amendments to PSAK 66: Joint
Arrangements
 Amandemen PSAK 67: Pengungkapan   Amendments to PSAK 67: Disclosure of
Kepentingan dalam Entitas Lain Interest in Other Entities
 ISAK 30: Pungutan  ISAK 30: Levies



b. Standar dan Interpretasi telah Diterbitkan tapi b. Standards and Interpretation in Issue Not Yet
Belum Diterapkan Adopted
Amandemen standar dan interpretasi berikut New standards, amendments and interpretation
efektif untuk periode yang dimulai pada atau effective for periods beginning on or after
setelah 1 Januari 2017, dengan penerapan dini January 1, 2017, with early application is
diperkenankan yaitu: permitted are the following:
 PSAK 1: Penyajian Laporan  PSAK 1: Presentation of Financial

Keuangan tentang Prakarsa Pengungkapan Statements about Disclosure Initiative
 ISAK 31: Interpretasi atas Ruang Lingkup  ISAK 31: Scope Interpretation of PSAK 13:
PSAK 13: Properti Investasi Investment Property
Standar dan amandemen standar berikut efektif Standard and amendment to standard effective
untuk periode yang dimulai pada atau setelah for periods beginning on or after January 1, 2018,
tanggal 1 Januari 2018, dengan penerapan dini with early application permitted are:
diperkenankan yaitu:
 Amandemen PSAK 16: Aset Tetap  Amendments to PSAK 16: Property, Plant
and Equipment
 PSAK 69: Agrikultur  PSAK 69: Agriculture
Sampai dengan tanggal penerbitan laporan As of the issuance date of the consolidated
keuangan konsolidasian, manajemen sedang financial statements, management is evaluating
mengevaluasi dampak dari standar dan the effect of these standards and interpretations
interpretasi terhadap laporan keuangan on the consolidated financial statements.
konsolidasian.
3. IKHTISAR KEBIJAKAN AKUNTANSI PENTING 3. SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES
a. Pernyataan Kepatuhan a. Statement of Compliance
Laporan keuangan konsolidasian ini telah The consolidated financial statements have
disusun dan disajikan sesuai dengan Standar been prepared and presented in accordance
Akuntansi Keuangan di Indonesia, yang with Indonesian Financial Accounting
mencakup pernyataan dan interpretasinya yang Standards, which comprise the statements and
dikeluarkan oleh Dewan Standar Akuntansi interpretation issued by the Financial
Keuangan - Ikatan Akuntan Indonesia dan Accounting Standard Board of the Indonesian
peraturan-peraturan serta pedoman dan Institute of Accountants and the regulations and
penyajian dan pengungkapan laporan keuangan the guidelines on financial statements and
yang diterbitkan oleh Otoritas Jasa Keuangan disclosures issued by Financial Services
(OJK). Authority (OJK).
b. Dasar Penyusunan b. Basis of Preparation

Laporan keuangan konsolidasian, kecuali untuk The consolidated financial statements, except
laporan arus kas konsolidasian, disusun for the consolidated statements of cash flows,
menggunakan dasar akrual. Dasar are prepared under the accrual basis of
pengukurannya menggunakan biaya historis, accounting. The measurement basis used is
kecuali beberapa akun tertentu yang historical cost, except for certain accounts
menggunakan dasar pengukuran lain which are measured on the bases described in
sebagaimana diuraikan dalam kebijakan the related accounting policies for those
akuntansi masing-masing akun tersebut. Mata accounts. The presentation currency used in
uang penyajian yang digunakan untuk the preparation of the consolidated financial
penyusunan laporan keuangan konsolidasian statements in the Indonesian Rupiah (Rp).
adalah mata uang Rupiah (Rp).
Biaya historis umumnya didasarkan pada nilai Historical cost is generally based on the fair
wajar dari imbalan yang diberikan dalam value of the consideration given in exchange for
pertukaran barang dan jasa. goods and services.
Annual Report 2016

429
Nilai wajar adalah harga yang akan diterima Fair value is the price that would be received to
untuk menjual suatu aset atau harga yang akan sell an asset or paid to transfer a liability in an
dibayar untuk mengalihkan suatu liabilitas dalam orderly transaction between market
suatu transaksi teratur antara pelaku pasar pada participants at the measurement date,
tanggal pengukuran, terlepas apakah harga regardless of whether that price is directly
tersebut dapat diobservasi secara langsung atau observable or estimated using another
diestimasi menggunakan teknik penilaian lain. valuation technique. In estimating the fair value
Dalam mengestimasi nilai wajar aset atau of an asset or a liability, the Group takes into
liabilitas, Grup memperhitungkan karakteristik account the characteristics the asset or a
aset atau liabilitas, jika pelaku pasar liability if market participants would take those
memperhitungkan karakteristik tersebut ketika characteristics into account when pricing the
menentukan harga aset atau liabilitas pada asset or liability at the measurement date. Fair
tanggal pengukuran. Nilai wajar untuk tujuan value for measurement and/or disclosure
pengukuran dan/atau pengungkapan dalam purposes in these consolidated financial
laporan keuangan konsolidasian ditentukan statements is determined on such a basis,
berdasarkan basis tersebut, kecuali untuk except for share-based payment transactions
transaksi pembayaran berbasis saham dalam that are within the scope of PSAK 53, leasing
ruang lingkup PSAK 53, transaksi sewa dalam transactions that are within the scope of
ruang lingkup PSAK 30, dan pengukuran yang PSAK 30, and measurements that have some
memiliki beberapa kemiripan dengan nilai wajar similarities to fair value but are not fair value,
tetapi bukan merupakan nilai wajar, seperti nilai such as net realizable value in PSAK 14 or
realisasi neto dalam PSAK 14 dan nilai pakai value in use in PSAK 48.
dalam PSAK 48.
Selain itu, untuk tujuan pelaporan keuangan, In addition, for financial reporting purposes, fair
pengukuran nilai wajar dikategorikan ke Level 1, value measurements are categorized into Level
2 atau 3 berdasarkan tingkat input untuk 1, 2 or 3 based on the degree to which the
pengukuran nilai wajar yang dapat diobservasi inputs to the fair value measurements are
dan signifikansi input pada pengukuran nilai observable and the significance of the inputs to
wajar secara keseluruhan, yang digambarkan the fair value measurement in its entirety, which
sebagai berikut: are described as follows:
 Input Level 1 adalah harga kuotasian (tanpa  Level 1 inputs are quoted prices
penyesuaian) di pasar aktif untuk aset atau (unadjusted) in active markets for identical
liabilitas yang identik yang dapat diakses assets or liabilities that the entity can
entitas pada tanggal pengukuran; access at the measurement date;
 Input Level 2 adalah input, selain harga   Level 2 inputs are inputs, other than
kuotasian yang termasuk dalam Level 1, quoted prices included within Level 1,
yang dapat diobservasi untuk aset atau which are observable for the asset or
liabilitas, baik secara langsung maupun liability, either directly or indirectly; and
tidak langsung; dan
 Input Level 3 adalah input yang tidak dapat   Level 3 inputs are unobservable inputs for
diobservasi untuk aset atau liabilitas. the asset or liability.
Laporan arus kas konsolidasian disusun dengan The consolidated statement of cash flows is
menggunakan metode langsung dengan prepared using the direct method with
mengelompokkan arus kas dalam aktivitas classifications of cash flows into operating,
operasi, investasi, dan pendanaan. investing, and financing activities.
c. Dasar Konsolidasian c. Basis of Consolidation

Laporan keuangan konsolidasian The consolidated financial statements
menggabungkan laporan keuangan Perseroan incorporate the financial statements of the
dan entitas yang dikendalikan oleh Perseroan Company and entities controlled by the
(entitas anak). Pengendalian tercapai dimana Company (its subsidiaries). Control is achieved
Perseroan memiliki kekuasaan atas investee; where the Company has the power over the
eksposur atau hak atas imbal hasil variabel dari investee; is exposed, or has rights, to variable
keterlibatannya dengan investee; dan returns from its involvement with the investee;
kemampuan untuk menggunakan kekuasaannya and has the ability to use its power to affect its
atas investee untuk mempengaruhi jumlah imbal returns.
hasil investor.



Perseroan menilai kembali apakah entitas The Company reassesses whether or not it
tersebut adalah investee jika fakta dan keadaan controls an investee if facts and circumstances
yang mengindikasikan adanya perubahan indicate that there are changes to one or more
terhadap satu atau lebih dari tiga elemen of the three elements of control listed above.
pengendalian yang disebutkan di atas.
Ketika Perseroan memiliki kurang dari hak suara When the Company has less than a majority of
mayoritas di-investee, ia memiliki kekuasaan the voting rights of an investee, it has power
atas investee ketika hak suara investor cukup over the investee when the voting rights are
untuk memberinya kemampuan praktis untuk sufficient to give it the practical ability to direct
mengarahkan aktivitas relevan secara sepihak. the relevant activities of the investee
Perseroan mempertimbangkan seluruh fakta unilaterally. The Company considers all
dan keadaan yang relevan dalam menilai apakah relevant facts and circumstances in assessing
hak suara Perseroan cukup untuk memberikan whether or not the Company’s voting rights in
Perseroan kekuasaan, termasuk (i) ukuran an investee are sufficient to give it power,
kepemilikan hak suara Perseroan relatif including (i) the size of the Company’s holding
terhadap ukuran dan penyebaran kepemilikan of voting rights relative to the size and
pemilik hak suara lain; (ii) hak suara potensial dispersion of holding of the other vote holders;
yang dimiliki oleh Perseroan, pemegang suara (ii) potential voting rights held by the Company,
lain atau pihak lain; (iii) hak yang timbul dari other vote holders or other parties; (iii) rights
pengaturan kontraktual lain; dan (iv) setiap fakta arising from other contractual arrangements;
dan keadaan tambahan apapun and (iv) any additional facts and circumstances
mengindikasikan bahwa Perseroan memiliki, that indicate that the Company has, or does not
atau tidak memiliki, kemampuan kini untuk have, the current ability to direct the relevant
mengarahkan aktivitas yang relevan pada saat activities at the time that decisions need to be
keputusan perlu dibuat, termasuk pola suara made, including voting patterns at previous
pemilikan dalam RUPS sebelumnya. shareholders’ meetings.
Konsolidasi entitas anak dimulai ketika Consolidation of a subsidiary begins when the
Perseroan memperoleh pengendalian atas Company obtains control over the subsidiary
entitas anak dan akan dihentikan ketika and ceases when the Company losing the
Perseroan kehilangan pengendalian pada control of the subsidiary. Specifically, income
entitas anak. Secara khusus, pendapatan dan and expense of a subsidiary acquired or
beban entitas anak diakuisisi atau dijual selama disposed of during the year are included in the
tahun berjalan termasuk dalam laporan laba rugi consolidated statement of profit or loss and
dan penghasilan komprehensif lain other comprehensive income from the date the
konsolidasian dari tanggal diperolehnya Company gains control until the date when the
pengendalian Perseroan sampai tanggal ketika Company ceases to control the subsidiary.
Perseroan berhenti untuk mengendalikan entitas
anak.
Laba rugi dan setiap komponen penghasilan Profit or loss and each component of other
komprehensif lain diatribusikan kepada pemilik comprehensive income are attributed to the
entitas induk dan untuk kepentingan owners of the Company and to the non-
non-pengendali. Perseroan juga controlling interest. Total comprehensive
mengatribusikan total laba komprehensif entitas income of subsidiaries is attributed to the
anak kepada pemilik entitas induk dan owners of the Company and the non-controlling
kepentingan non-pengendali meskipun hal interest even if this results in the non-controlling
tersebut mengakibatkan kepentingan interest having a deficit balance.
non-pengendali memiliki saldo defisit.
Jika diperlukan, penyesuaian dapat dilakukan When necessary, adjustment are made to the
terhadap laporan keuangan entitas anak agar financial statements of subsidiaries to bring
kebijakan akuntansi sesuai dengan kebijakan their accounting policies in line with the Group’s
akuntansi Grup. accounting policies.
Seluruh aset dan liabilitas dalam intra kelompok All intragroup assets and liabilities, equity,
usaha, ekuitas, pendapatan, biaya dan arus kas income, expenses and cash flows relating to
yang berkaitan dengan transaksi dalam transactions between members of the Group
kelompok usaha dieliminasi secara penuh pada are eliminated in full on consolidation.
saat konsolidasian.
Annual Report 2016

431
Perubahan kepemilikan Grup pada entitas anak Changes in the Group’s ownership interest in
yang tidak mengakibatkan kehilangan subsidiaries that do not result in the Group
pengendalian Grup atas entitas anak dicatat losing control over the subsidiaries are
sebagai transaksi ekuitas. Jumlah tercatat dari accounted for as equity transactions. The
kepemilikan Grup dan kepentingan carrying amounts of the Group’s interest and
non-pengendali disesuaikan untuk the non-controlling interest are adjusted to
mencerminkan perubahan kepentingan reflect the changes in their relative interest in
relatifnya dalam entitas anak. Selisih antara the subsidiaries. Any difference between the
jumlah tercatat kepentingan non-pengendali amount by which the non-controlling interest are
yang disesuaikan dan nilai wajar imbalan yang adjusted and the fair value of the consideration
dibayar atau diterima diakui secara langsung paid or received is recognized directly in equity
dalam ekuitas dan diatribusikan dengan pemilik and attributed to owners of the Company.
entitas induk.
Ketika Grup kehilangan pengendalian pada When the Group losses control of a subsidiary,
entitas anak, keuntungan atau kerugian diakui a gain or loss is recognized in profit or loss and
dalam laba rugi dan dihitung sebagai perbedaan is calculated as the difference between (i) the
antara (i) agregat nilai wajar pembayaran yang aggregate of the fair value of the consideration
diterima dan nilai wajar sisa kepemilikan received and the fair value of any retained
(retained interest) dan (ii) jumlah tercatat interest and (ii) the previous carrying amount of
sebelumnya dari aset (termasuk goodwill), dan the assets (including goodwill), and liabilities of
liabilitas dari entitas anak dan setiap kepentingan the subsidiary and any non-controlling interest.
non-pengendali. Seluruh jumlah yang diakui All amounts previously recognized in other
sebelumnya dalam penghasilan komprehensif comprehensive income in relation to that
lain yang terkait dengan entitas anak yang subsidiary are accounted for as if the Group had
dicatat seolah-olah Grup telah melepaskan directly disposed of the related assets or
secara langsung aset atau liabilitas terkait entitas liabilities of the subsidiary (i.e. reclassified to
anak (yaitu direklasifikasi ke laba rugi atau profit or loss or transferred to another category
ditransfer ke kategori lain dari ekuitas of equity as specified/permitted by applicable
sebagaimana ditentukan / diizinkan oleh standar accounting standards). The fair value of any
akuntansi yang berlaku). Nilai wajar setiap sisa investment retained in the former subsidiary at
investasi pada entitas anak terdahulu pada the date when control is lost is regarded as the
tanggal hilangnya pengendalian dianggap fair value on initial recognition for subsequent
sebagai nilai wajar pada saat pengakuan awal accounting under PSAK 55, Financial
untuk akuntansi berikutnya dalam PSAK 55, Instruments: Recognition and Measurement or,
Instrumen Keuangan: Pengakuan dan when applicable, the cost on initial recognition
Pengukuran atau, ketika berlaku, biaya of an investment in an associate or a jointly
perolehan pada saat pengakuan awal dari controlled entity.
investasi pada entitas asosiasi atau ventura
bersama.
Kepentingan non-pengendali pada entitas anak Non-controlling interests in subsidiaries are

di identifikasi secara terpisah dan disajikan identified separately and presented within
dalam ekuitas. Kepentingan pemegang saham equity. The interest of non-controlling
nonpengendali awalnya diukur baik pada nilai shareholders initially measured either at fair
wajar atau pun pada proporsi pemilikan value or at the non-controlling interests’
kepentingan non-pengendali dari nilai wajar aset proportionate share of the recognized amounts
neto yang dapat diidentifikasi dari pihak yang at the fair value of the acquiree’s identifiable net
diakuisisi. Pilihan pengukuran dilakukan untuk asset. The choice of measurement is made on
setiap akuisisi dengan dasar akuisisi. Setelah acquisition by acquisition basis. Subsequent to
akuisisi, jumlah tercatat kepentingan acquisition, the carrying amount of non-
non-pengendali adalah jumlah kepemilikan pada controlling interests is the amount of those
pengakuan awal ditambah bagian kepentingan interests at initial recognition plus non-
non-pengendali dari perubahan selanjutnya controlling interests’ share of subsequent
dalam ekuitas. Jumlah laba rugi komprehensif changes in equity. Total comprehensive income
entitas anak diatribusikan kepada pemilik of subsidiaries is attributed to the owners of the
Perseroan dan pada kepentingan Company and to the non-controlling interests
non-pengendali bahkan jika hal ini even if this results in the non-controlling
mengakibatkan kepentingan non-pengendali interests having deficit balance.
mempunyai saldo defisit.

- 16 -


d. Kombinasi Bisnis d. Business Combination
Akuisisi bisnis dicatat dengan menggunakan Acquisitions of businesses are accounted for
metode akuisisi. Imbalan yang dialihkan dalam using the acquisition method. The
suatu kombinasi bisnis diukur pada nilai wajar, consideration transferred in a business
yang dihitung sebagai hasil penjumlahan dari combination is measured at fair value, which is
nilai wajar tanggal akuisisi atas seluruh aset yang calculated as the sum of the acquisition-date
dialihkan oleh Grup, liabilitas yang diakui oleh fair values of the assets transferred by the
Grup kepada pemilik sebelumnya dari pihak Group, liabilities incurred by the Group to the
yang diakuisisi dan kepentingan ekuitas yang former owners of the acquiree, and the equity
diterbitkan oleh Grup dalam pertukaran interests issued by the Group in exchange for
pengendalian dari pihak yang diakuisisi. Biaya- control of the acquiree. Acquisition-related
biaya terkait akuisisi diakui di dalam laba rugi costs are recognized in profit or loss as
pada saat terjadinya. incurred.
Pada tanggal akuisisi, aset teridentifikasi yang At the acquisition date, the identifiable assets
diperoleh dan liabilitas yang diambil alih diakui acquired and the liabilities assumed are
pada nilai wajar kecuali untuk aset dan liabilitas recognized at their fair value except for certain
tertentu yang diukur sesuai dengan standar yang assets and liabilities that are measured in
relevan. accordance with the relevant standards.
Goodwill diukur sebagai selisih lebih dari nilai Goodwill is measured as the excess of the sum
gabungan dari imbalan yang dialihkan, jumlah of the consideration transferred, the amount of
setiap kepentingan non-pengendali pada pihak any non-controlling interests in the acquiree,
diakuisisi dan nilai wajar pada tanggal akuisisi and the fair value of the acquirer’s previously
kepentingan ekuitas yang sebelumnya dimiliki held equity interest in the acquire (if any) over
oleh pihak pengakuisisi pada pihak diakuisisi the net of the acquisition-date amounts of the
(jika ada) atas jumlah neto dari aset identifiable assets acquired and the liabilities
teridentifikasi yang diperoleh dan liabilitas yang assumed. If, after the reassessment, the net of
diambilalih pada tanggal akuisisi. Jika, setelah the acquisition-date amounts of the identifiable
penilaian kembali, jumlah neto dari aset assets acquired and liabilities assumed
teridentifikasi yang diperoleh dan liabilitas yang exceeds the sum of the consideration
diambilalih pada tanggal akuisisi melebihi jumlah transferred, the amount of any non-controlling
imbalan yang dialihkan, jumlah dari setiap interests in the acquiree and the fair value of the
kepentingan non-pengendali pada pihak acquirer’s previously held interest in the
diakuisisi dan nilai wajar pada tanggal akuisisi acquiree (if any), the excess is recognized
kepentingan ekuitas yang sebelumnya dimiliki immediately in profit or loss as a bargain
oleh pihak pengakuisisi pada pihak diakuisisi purchase option.
(jika ada), selisih lebih diakui segera dalam laba
rugi sebagai pembelian dengan diskon.
Kepentingan non-pengendali yang menyajikan Non-controlling interests that are present

bagian kepemilikan dan memberikan mereka ownership interests and entitle their holders to
hak atas bagian proposional dari aset neto a proportionate share of the entity’s net assets
entitas dalam hal terjadi likuidasi pada awalnya in the event of liquidation may be initially
diukur baik pada nilai wajar ataupun pada bagian measured either at fair value or at the non-
proporsional kepemilikan kepentingan controlling interests’ proportionate share of the
non-pengendali atas aset neto teridentifikasi dari acquiree’s identifiable net assets. The choice of
pihak yang diakuisisi. Pilihan dasar pengukuran measurement basis is made on a
dilakukan atas dasar transaksi. Kepentingan transaction-by-transaction basis. Other types of
nonpengendali jenis lain diukur pada nilai wajar non-controlling interests are measured at fair
atau, jika berlaku, pada dasar pengukuran lain value or, when applicable, on the basis
yang ditentukan oleh standar akuntansi lain. specified in another accounting standard.
Bila imbalan yang dialihkan oleh Grup dalam When the consideration transferred by the
suatu kombinasi bisnis termasuk aset atau Group in a business combination includes
liabilitas yang berasal dari pengaturan imbalan assets or liabilities resulting from a contingent
kontinjen, imbalan kontinjen tersebut diukur pada consideration arrangement, the contingent
nilai wajar pada tanggal akuisisi dan termasuk consideration is measured at its acquisition date
sebagai bagian dari imbalan yang dialihkan fair value and included as part of the
dalam suatu kombinasi bisnis. consideration transferred in a business
combination.
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Annual Report 2016
433
Perubahan dalam nilai wajar atas imbalan Changes in the fair value of the contingent
kontinjen yang memenuhi syarat sebagai consideration that qualify as measurement
penyesuaian periode pengukuran disesuaikan period adjustments are adjusted
secara retrospektif, dengan penyesuaian terkait retrospectively, with corresponding adjustments
terhadap goodwill. Penyesuaian periode against goodwill. Measurement period
pengukuran adalah penyesuaian yang berasal adjustments are adjustments that arise from
dari informasi tambahan yang diperoleh selama additional information obtained during the
periode pengukuran (yang tidak melebihi satu measurement period (which cannot exceed one
tahun sejak tanggal akuisisi) tentang fakta-fakta year from the acquisition date) about facts and
dan kondisi yang ada pada tanggal akuisisi. circumstances that existed at the acquisition
date.
Akuntansi selanjutnya atas perubahan dalam The subsequent accounting for changes in the
nilai wajar atas imbalan kontinjen yang tidak fair value of the contingent consideration that do
memenuhi syarat sebagai penyesuaian periode not qualify as measurement period adjustments
pengukuran tergantung pada bagaimana depends on how the contingent consideration is
imbalan kontinjen tersebut diklasifikasikan. classified. Contingent consideration that is
Imbalan kontinjen yang diklasifikasikan sebagai classified as equity is not remeasured at
ekuitas tidak diukur kembali pada tanggal subsequent reporting dates and its subsequent
sesudah tanggal pelaporan dan penyelesaian settlement is accounted for within equity.
selanjutnya dicatat dalam ekuitas. Imbalan Contingent consideration that is classified as an
kontinjen yang diklasifikasikan sebagai aset atau asset or liability is remeasured subsequent to
liabilitas diukur setelah tanggal pelaporan sesuai reporting dates in accordance with the relevant
dengan standar akuntansi yang relevan dengan accounting standards, as appropriate, with the
mengakui keuntungan atau kerugian terkait corresponding gain or loss being recognized in
dalam laba rugi atau dalam penghasilan profit or loss or in other comprehensive income.
komprehensif lain.
Bila suatu kombinasi bisnis dilakukan secara When a business combination is achieved in
bertahap, kepemilikan terdahulu Grup atas pihak stages, the Group’s previously held equity
terakuisisi diukur kembali ke nilai wajar pada interest in the acquiree is remeasured to fair
tanggal akuisisi dan keuntungan atau value at the acquisition date and the resulting
kerugiannya, jika ada, diakui dalam laba rugi. gain or loss, if any, is recognized in profit or loss.
Jumlah yang berasal dari kepemilikan sebelum Amounts arising from interests in the acquire
tanggal akuisisi yang sebelumnya telah diakui prior to the acquisition date that have previously
dalam penghasilan komprehensif lain been recognized in other comprehensive
direklasifikasi ke laba rugi dimana perlakuan income are reclassified to profit or loss where
tersebut akan sesuai jika kepemilikannya such treatment would be appropriate if that
dilepas/dijual. interests were disposed of.
Jika akuntansi awal untuk kombinasi bisnis If the initial accounting for a business
belum selesai pada akhir periode pelaporan saat combination is incomplete by the end of the
kombinasi terjadi, Grup melaporkan jumlah reporting period in which the combination
sementara untuk pos-pos yang proses occurs, the Group reports provisional amounts
akuntansinya belum selesai dalam laporan for the items for which the accounting is
keuangannya. Selama periode pengukuran, incomplete. Those provisional amounts are
pihak pengakuisisi menyesuaikan, aset atau adjusted during the measurement period, or
liabilitas tambahan yang diakui, untuk additional assets or liabilities are recognized, to
mencerminkan informasi baru yang diperoleh reflect new information obtained about facts and
tentang fakta dan keadaan yang ada pada circumstances that existed as of the acquisition
tanggal akuisisi dan, jika diketahui, akan date that, if known, would have affected the
berdampak pada jumlah yang diakui pada amount recognized as of that date.
tanggal tersebut.



e. Transaksi dan Penjabaran Laporan e. Foreign Currency Transactions and

Keuangan Dalam Mata Uang Asing Translation
Pembukuan tersendiri dari masing-masing The individual books of accounts of each

entitas anak, kecuali TLCC, diselenggarakan subsidiary, except TLCC, are maintained in
dalam mata uang Rupiah, mata uang dari Indonesian Rupiah, the currency of the primary
lingkungan ekonomi utama dimana entitas economic environment in which the entity
beroperasi (mata uang fungsionalnya). operates (its functional currency).
Dalam penyusunan laporan keuangan setiap In preparing the financial statements of each
entitas individual grup, transaksi dalam mata individual group entity, transactions in
uang asing selain mata uang fungsional entitas currencies other than the entity’s functional
(mata uang asing) diakui pada kurs yang berlaku currency (foreign currencies) are recognized at
pada tanggal transaksi. Pada setiap akhir perode the rates of exchange prevailing at the dates of
pelaporan, pos moneter dalam valuta asing the transactions. At the end of each reporting
dijabarkan kembali pada kurs yang berlaku pada period, monetary items denominated in foreign
tanggal tersebut. Pos-pos non-moneter yang currencies are retranslated at the rates
diukur pada nilai wajar dalam valuta asing prevailing at that date. Non-monetary items
dijabarkan kembali pada kurs yang berlaku pada carried at fair value that are denominated in
tanggal ketika nilai wajar ditentukan. Pos foreign currencies are retranslated at the rates
non-moneter diukur dalam biaya historis dalam prevailing at the date when the fair value was
valuta asing yang tidak dijabarkan kembali. 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 Exchange differences on monetary items are
rugi pada periode saat terjadinya kecuali untuk: recognized in profit or loss in the period in which
they arise except for:
 Selisih kurs atas pinjaman valuta asing yang  Exchange differences on foreign currency
berkaitan dengan aset dalam konstruksi borrowing relating to assets under
untuk penggunaan yang produktif di masa construction for future productive use,
depan, termasuk dalam biaya perolehan which are included in the cost of those
aset tersebut ketika dianggap sebagai assets when they are regarded as an
penyesuaian atas biaya bunga atas adjustment to interest costs on those
pinjaman valuta asing. foreign currency borrowing.
 Selisih kurs atas transaksi yang ditetapkan  Exchange differences on transaction

untuk tujuan lindung nilai risiko valuta asing entered into in order to hedge certain
tertentu (lihat Catatan 3.dd dibawah ini untuk foreign currency risks (see Note 3.dd below
kebijakan akuntansi lindung nilai). for hedge accounting policies).
 Selisih kurs atas pos moneter piutang atau   Exchange differences on monetary items
utang pada kegiatan dalam valuta asing receivable from or payable to a foreign
yang penyelesaiannya tidak direncanakan currency operation for which settlement is
atau tidak mungkin terjadi (membentuk neither planned nor likely to occur
bagian dari investasi bersih dalam kegiatan (therefore forming part of the net
usaha luar negeri), yang pada awalnya investment in the foreign operation), which
diakui pada penghasilan komprehensif lain are recognized initially in other
dan direklasifikasi dari ekuitas ke laba rugi comprehensive income and reclassified
pada pembayaran kembali pos moneter. from equity to profit or loss on repayment of
the monetary items.
Annual Report 2016

435
Pembukuan TLCC diselenggarakan dalam Dong The books of TLCC’s account are maintained in
Vietnam. Untuk tujuan penyajian laporan Vietnam Dong. For the purposes of presenting
keuangan konsolidasian, aset dan liabilitas these consolidated financial statements, the
kegiatan usaha luar negeri Grup dijabarkan ke assets and liabilities of the Group’s foreign
dalam Rupiah dengan menggunakan kurs yang operations are translated into Indonesian
berlaku pada akhir periode pelaporan. Pos Rupiah using exchange rates prevailing at the
penghasilan dan beban dijabarkan end of each reporting period. Income and
menggunakan kurs rata-rata untuk periode expense items are translated at the average
tersebut, kecuali kurs berfluktuasi secara exchange rates for the period, unless exchange
signifikan selama periode tersebut, dalam hal ini rates fluctuate significantly during that period, in
kurs yang berlaku pada tanggal transaksi yang which case the exchange rates at the dates of
digunakan. Selisih kurs yang timbul diakui dalam the transactions are used. Exchange
penghasilan komprehensif lain dan diakumulasi differences arising, if any, are recognized in
dalam ekuitas (dan diatribusikan pada other comprehensive income and accumulated
kepentingan non-pengendali). in equity (and attributed to non-controlling
interests as appropriate).
Pada pelepasan kegiatan usaha luar negeri On the disposal of foreign operation (i.e.: a
(contoh: pelepasan dari seluruh kepentingan disposal of the Group’s entire interest in foreign
Grup pada kegiatan usaha luar negeri, atau operation, or disposal involving loss of control
pelepasan melibatkan hilangnya pengendalian over a subsidiary that includes a foreign
pada entitas anak yang mencakup kegiatan operation, or a partial disposal of an interest in
usaha luar negeri, atau pelepasan parsial atas a joint arrangement or an associate that
kepentingan dalam pengaturan bersama atau includes a foreign operation of which the
entitas asosiasi yang mencakup kegiatan retained interest becomes a financial asset), all
operasi luar negeri, merupakan aset keuangan of the exchange differences accumulated in
yang mencakup kegiatan usaha luar negeri), equity in respect of that operation attributable to
seluruh jumlah selisih kurs yang terkait dengan the owners of the Company are reclassified to
kegiatan usaha luar negeri yang telah profit or loss.
diatribusikan ke pemilik entitas induk
direklasifikasi ke laba rugi.
Selanjutnya, dalam pelepasan sebagian dari In addition, in relation to a partial disposal of a

entitas anak yang mencakup kegiatan usaha luar subsidiary that includes a foreign operation that
negeri, yang tidak mengakibatkan hilangnya does not result in the Group losing control over
pengendalian Grup atas entitas anak, entitas the subsidiary, the proportionate share of
mereatribusi bagian yang sebanding dari jumlah accumulated exchange differences are re-
kumulatif selisih kurs yang diakui dalam attributed to non-controlling interests and are
penghasilan komprehensif lain ke kepentingan not recognized in profit or loss. For all other
non pengendali pada kegiatan usaha luar negeri partial disposals (i.e., partial disposal of
tersebut dan tidak diakui dalam laba rugi. Untuk associates or joint arrangements that do not
seluruh pelepasan sebagian kepentingannya result in the Group losing significant influence or
(contoh: pelepasan sebagian dari entitas joint control), the proportionate share of the
asosiasi atau pengaturan bersama yang tidak accumulated exchange differences is
mengakibatkan hilangnya pengaruh signifikan reclassified to profit or loss.
atau pengendalian bersama Grup), bagian
proporsional dari jumlah kumulatif kurs
direklasifikasi ke laba rugi.
Goodwill dan penyesuaian nilai wajar aset Goodwill and fair value adjustments to
teridentifkasi yang diperoleh dan liabilitas yang identifiable assets acquired and liabilities
dalihkan melalui akuisisi dari kegiatan usaha luar assumed through acquisition of a foreign
negeri diperlakukan sebagai aset dan liabilitas operation are treated as assets and liabilities of
dari kegiatan usaha luar negeri dan dijabarkan the foreign operation and translated at the rate
pada kurs yang berlaku pada akhir periode of exchange prevailing at the end of each
pelaporan. Selisih kurs yang timbul diakui pada reporting period. Exchange differences arising
penghasilan komprehensif lain. are recognized in other comprehensive income.

- 20 -


f. Transaksi Pihak-pihak Berelasi f. Transactions with Related Parties
Pihak-pihak berelasi adalah orang atau entitas A related party is a person or entity that is
yang terkait dengan Grup (entitas pelapor): related to the Group (the reporting entity):
a. Orang atau anggota keluarga dekatnya a. A person or a close member of that

mempunyai relasi dengan entitas pelapor person's family is related to the reporting
jika orang tersebut: entity if that person:
i. memiliki pengendalian atau i. has control or joint control over the

pengendalian bersama atas entitas reporting entity;
pelapor;
ii. memiliki pengaruh signifikan atas ii. has significant influence over the
entitas pelapor; atau reporting entity; or
iii. merupakan personil manajemen kunci iii. is a member of the key management
entitas pelapor atau entitas induk dari personnel of the reporting entity or of a
entitas pelapor. parent of the reporting entity.
b. Suatu entitas berelasi dengan entitas c. b. An entity is related to the reporting entity if
pelapor jika memenuhi salah satu hal any of the following conditions applies:
berikut:
i. Entitas dan entitas pelapor adalah i. The entity, and the reporting entity are
anggota dari kelompok usaha yang members of the same group (which
sama (artinya entitas induk, entitas means that each parent, subsidiary
anak, dan entitas anak berikutnya and fellow subsidiary is related to the
saling berelasi dengan entitas lainnya). others).
ii. Satu entitas adalah entitas asosiasi ii. One entity is an associate or joint
atau ventura bersama dari entitas lain venture of the other entity (or an
(atau entitas asosiasi atau ventura associate or joint venture of a member
bersama yang merupakan anggota of a group of which the other entity is
suatu kelompok usaha, yang mana a member).
entitas lain tersebut adalah
anggotanya).
iii. Kedua entitas tersebut adalah ventura iii. Both entities are joint ventures of the
bersama dari pihak ketiga yang sama. same third party.
iv. Satu entitas adalah ventura bersama iv. One entity is a joint venture of a third
dari entitas ketiga dan entitas yang lain entity and the other entity is an
adalah entitas asosiasi dari entitas associate of the third entity.
ketiga.
v. Entitas tersebut adalah suatu program v. The entity is a post-employment
imbalan pasca kerja untuk imbalan kerja benefit plan for the benefit of
dari salah satu entitas pelapor atau employees of either the reporting
entitas yang terkait dengan entitas entity, or an entity related to the
pelapor. Jika entitas pelapor adalah reporting entity. If the reporting entity
entitas yang menyelenggarakan is itself such a plan, the sponsoring
program tersebut, maka entitas sponsor employers are also related to the
juga berelasi dengan entitas pelapor. reporting entity.
vi. Entitas yang dikendalikan atau vi. The entity is controlled or jointly
dikendalikan bersama oleh orang yang controlled by a person identified in (a).
diidentifikasi dalam huruf (a).
vii. Orang yang diidentifikasi dalam huruf vii. A person identified in (a) (i) has
(a) (i) memiliki pengaruh signifikan atas significant influence over the entity or
entitas atau merupakan personil is a member of the key management
manajemen kunci entitas (atau entitas personnel of the entity (or a parent of
induk dari entitas). the entity).
- 21 -
Annual Report 2016
437
viii. Entitas, atau anggota dari kelompok viii. The entity, or any member of a group
yang mana entitas merupakan bagian of which it is a part, provides key
dari kelompok tersebut, menyediakan management personnel services to
jasa personil manajemen kunci kepada the reporting entity or to the parent of
entitas pelapor atau kepada entitas the reporting entity.
induk dari entitas pelapor.
Seluruh transaksi yang dilakukan dengan pihak- All transactions with related parties, whether or
pihak berelasi, baik dilakukan dengan kondisi not made at similar terms and conditions as
dan persyaratan dengan pihak ketiga maupun those done with third parties, are disclosed in
tidak, diungkapkan pada laporan keuangan the consolidated financial statements.
konsolidasian.
g. Aset Keuangan g. Financial Assets

Seluruh aset keuangan diakui dan dihentikan All financial assets are recognized and
pengakuannya pada tanggal diperdagangkan derecognized on trade date where the purchase
dimana pembelian dan penjualan aset keuangan or sale of a financial asset is under a contract
berdasarkan kontrak yang mensyaratkan whose terms require delivery of the financial
penyerahan aset keuangan dalam kurun waktu asset within the timeframe established by the
yang ditetapkan oleh kebiasaan pasar yang market concerned, and are initially measured at
berlaku, dan awalnya diukur sebesar nilai wajar fair value plus transaction costs, except for
ditambah biaya transaksi, kecuali untuk aset those financial assets classified as at fair value
keuangan yang diukur pada nilai wajar melalui through profit or loss (FVTPL), which are initially
laba rugi yang awalnya diukur sebesar nilai measured at fair value.
wajar.
Aset keuangan Grup diklasifikasikan sebagai The Group’s financial assets are classified as
berikut: follows:
 Tersedia untuk dijual  Available-for-Sale (AFS)

 Pinjaman yang diberikan dan piutang  Loans and Receivable
Aset keuangan tersedia untuk dijual (AFS) Available-for-sale (AFS)
Investasi Grup yang diklasifikasikan sebagai The Group’s investments classified as AFS are
aset keuangan tersedia untuk dijual adalah investments in share of stock in which the equity
investasi saham dengan kepemilikan ekuitas interest is less than 20% that are not quoted in
kurang dari 20% yang tidak mempunyai kuotasi an active market and whose fair value cannot
harga pasar dipasar aktif dan nilai wajarnya tidak be reliably measured. These are measured at
dapat diukur secara andal, dinyatakan sebesar cost less impairment.
biaya perolehan, dikurangi penurunan nilai.
Saham milik Grup yang tercatat di bursa dan Shares held by the Group that are traded in an
diperdagangkan pada pasar aktif diklasifikasikan active market are classified as AFS and are
sebagai AFS dan dinyatakan pada nilai wajar. stated at fair value.
Keuntungan atau kerugian yang timbul dari Gains and losses arising from changes in fair
perubahan nilai wajar diakui dalam penghasilan value are recognized in other comprehensive
komprehensif lainnya dan dan diakumulasi di income and accumulated in equity as AFS
ekuitas sebagai revaluasi investasi aset Investment Revaluation, with the exception of
keuangan tersedia untuk dijual, kecuali untuk impairment losses, interest calculated using the
kerugian penurunan nilai, bunga yang dihitung effective interest method, and foreign exchange
dengan metode suku bunga efektif dan laba rugi gains and losses on monetary assets, which are
selisih kurs atas aset moneter yang diakui pada recognized in profit or loss. Where the
laba rugi. Jika investasi dilepas atau mengalami investment is disposed of or is determined to be
penurunan nilai, akumulasi laba atau rugi yang impaired, the cumulative gain or loss previously
sebelumnya diakumulasi pada revaluasi accumulated in AFS Investment Revaluation is
investasi aset keuangan tersedia untuk dijual, reclassified to profit or loss.
direklas ke laba rugi.



Dividen atas instrumen ekuitas aset keuangan Dividends on AFS equity instruments, if any, are
tersedia untuk dijual, jika ada, diakui pada laba recognized in profit or loss when the Group’s
rugi pada saat hak Grup untuk memperoleh right to receive the dividends is established.
pembayaran dividen ditetapkan.
Pinjaman yang diberikan dan piutang Loans and receivables

Kas dan setara kas, kecuali kas, piutang Cash and cash equivalents, except cash on
pelanggan dan piutang lain-lain dengan hand, receivable from customers and other
pembayaran tetap atau telah ditentukan dan receivables that have fixed or determinable
tidak mempunyai kuotasi di pasar aktif payments that are not quoted in an active
diklasifikasi sebagai “pinjaman yang diberikan market are classified as “loans and
dan piutang”, yang diukur pada biaya perolehan receivables”, which are measured at amortized
yang diamortisasi dengan menggunakan metode cost using the effective interest method less
suku bunga efektif dikurangi penurunan nilai. impairment.
Bunga diakui dengan menggunakan metode Interest is recognized by applying the effective
suku bunga efektif, kecuali piutang jangka interest method, except for short-term
pendek dimana pengakuan bunga tidak material. receivables when the recognition of interest
would be immaterial.
Metode suku bunga efektif Effective interest method
Metode suku bunga efektif adalah metode yang The effective interest method is a method of
digunakan untuk menghitung biaya perolehan calculating the amortized cost of a financial
diamortisasi dari instrumen keuangan dan instrument and of allocating interest income or
metode untuk mengalokasikan pendapatan expense over the relevant period. The effective
bunga atau biaya selama periode yang relevan. interest rate is the rate that exactly discounts
Suku bunga efektif adalah suku bunga yang estimated future cash receipts or payments
secara tepat mendiskontokan estimasi (including all fees and points paid or received
penerimaan atau pembayaran kas masa depan that form an integral part of the effective interest
(mencakup seluruh komisi dan bentuk lain yang rate, transaction costs and other premiums or
dibayarkan dan diterima oleh para pihak dalam discounts) through the expected life of the
kontrak yang merupakan bagian yang tak financial instrument, or where appropriate, a
terpisahkan dari suku bunga efektif, biaya shorter period to the net carrying amount on
transaksi dan premium dan diskonto lainnya) initial recognition.
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.
Pendapatan diakui berdasarkan suku bunga Income is recognized on an effective interest

efektif. basis.
Penurunan nilai aset keuangan Impairment of financial assets
Aset keuangan dievaluasi terhadap indikator Financial assets are assessed for indicators of
penurunan nilai pada setiap tanggal pelaporan. impairment at each reporting date. Financial
Aset keuangan diturunkan nilainya bila terdapat assets are impaired when there is objective
bukti objektif, sebagai akibat dari satu atau lebih evidence that, as a result of one or more events
peristiwa yang terjadi setelah pengakuan awal that occurred after the initial recognition of the
aset keuangan, dan peristiwa yang merugikan financial asset, the estimated future cash flows
tersebut berdampak pada estimasi arus kas of the investment have been affected.
masa depan atas aset keuangan yang dapat
diestimasi secara andal.
Untuk investasi ekuitas AFS yang tercatat dan For listed and unlisted equity investments
tidak tercatat di bursa, penurunan yang signifikan classified as AFS, a significant or prolonged
atau jangka panjang dalam nilai wajar dari decline in the fair value of the security below its
instrumen ekuitas di bawah biaya perolehannya cost is considered to be objective evidence of
dianggap sebagai bukti obyektif terjadinya impairment.
penurunan nilai.
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439
Untuk aset keuangan lainnya, bukti obyektif For all other financial assets, objective evidence
penurunan nilai termasuk sebagai berikut: of impairment could include:
 kesulitan keuangan signifikan yang dialami  significant financial difficulty of the issuer or
penerbit atau pihak peminjam; atau counterparty; or
 pelanggaran kontrak, seperti terjadinya  default or delinquency in interest or

wanprestasi atau tunggakan pembayaran principal payments; or
pokok atau bunga; atau
 terdapat kemungkinan bahwa pihak  a probability that the borrower will enter
peminjam akan dinyatakan pailit atau bankruptcy or financial re-organisation.
melakukan reorganisasi keuangan.
Untuk kelompok aset keuangan tertentu, seperti For certain categories of financial asset, such
piutang, aset yang dinilai tidak akan diturunkan as receivables, assets that are assessed not to
secara individual akan dievaluasi penurunan be impaired individually are, in addition,
nilainya secara kolektif. Bukti objektif dari assessed for impairment on a collective basis.
penurunan nilai portofolio piutang dapat Objective evidence of impairment for a portfolio
termasuk pengalaman Grup atas tertagihnya of receivables could include the Group’s past
piutang di masa lalu, peningkatan keterlambatan experiences of collecting payments, an
penerimaan pembayaran piutang dari rata-rata increase in the number of delayed payments in
periode kredit, dan juga pengamatan atas the portfolio past the average credit period, as
perubahan kondisi ekonomi nasional atau lokal well as observable changes in national or local
yang berkorelasi dengan default atas piutang. economic conditions that correlate with default
on receivables.
Untuk aset keuangan yang diukur pada biaya For financial assets carried at amortized cost,
perolehan yang diamortisasi, jumlah kerugian the amount of the impairment is the difference
penurunan nilai merupakan selisih antara jumlah between the asset’s carrying amount and the
tercatat aset keuangan dengan nilai kini dari present value of estimated future cash flows,
estimasi arus kas masa depan yang discounted at the financial asset’s original
didiskontokan menggunakan suku bunga efektif effective interest rate.
awal dari aset keuangan.
Untuk aset keuangan yang dicatat pada biaya For financial asset carried at cost, the amount
perolehan, jumlah kerugian penurunan nilai of the impairment loss is measured as the
diukur berdasarkan selisih antara jumlah tercatat difference between the asset’s carrying amount
aset keuangan dan nilai kini estimasi arus kas and the present value of the estimated future
masa depan yang didiskontokan pada tingkat cash flows discounted at the current market rate
imbal hasil yang berlaku di pasar untuk aset of return for a similar financial asset. Such
keuangan yang serupa. Kerugian penurunan impairment loss cannnot be reversed in
nilai tersebut tidak dapat dibalik pada periode subsequent periods.
berikutnya.
Jumlah tercatat aset keuangan tersebut The carrying amount of the financial asset is
dikurangi dengan kerugian penurunan nilai reduced by the impairment loss directly for all
secara langsung atas seluruh aset keuangan, financial assets with the exception of
kecuali piutang yang jumlah tercatatnya receivables, where the carrying amount is
dikurangi melalui penggunaan akun cadangan reduced through the use of an allowance
piutang. Jika piutang tidak tertagih, piutang account. When a receivable is considered
tersebut dihapuskan melalui akun cadangan uncollectible, it is written off against the
piutang. Pemulihan kemudian dari jumlah yang allowance account. Subsequent recoveries of
sebelumnya telah dihapuskan dikreditkan amounts previously written off are credited
terhadap akun cadangan. Perubahan jumlah against the allowance account. Changes in the
tercatat akun cadangan piutang diakui dalam carrying amount of the allowance account are
laba rugi. recognized in profit or loss.
Jika aset keuangan AFS dianggap menurun When an AFS financial asset is considered to
nilainya, keuntungan atau kerugian kumulatif be impaired, cumulative gains or losses
yang sebelumnya telah diakui dalam ekuitas previously recognized in equity are reclassified
direklasifikasi ke laba rugi. to profit or loss.

- 24 -


Kecuali untuk instrumen ekuitas AFS, jika, pada With the exception of AFS equity instruments,
periode berikutnya, jumlah kerugian penurunan if, in a subsequent period, the amount of the
nilai berkurang dan pengurangan tersebut dapat impairment loss decreases and the decrease
dikaitkan secara obyektif dengan peristiwa yang can be related objectively to an event occurring
terjadi setelah penurunan nilai diakui, kerugian after the impairment was recognized, the
penurunan nilai yang diakui sebelumnya dibalik previously recognized impairment loss is
melalui laba rugi hingga nilai tercatat investasi reversed through profit or loss to the extent that
pada tanggal pemulihan penurunan nilai tidak the carrying amount of the investment at the
melebihi biaya perolehan diamortisasi sebelum date the impairment is reversed does not
adanya pengakuan kerugian penurunan nilai exceed what the amortized cost would have
dilakukan. been had the impairment not been recognized.
Dalam hal efek ekuitas AFS, kerugian penurunan In respect of AFS equity investments,
nilai yang sebelumnya diakui dalam laba rugi impairment losses previously recognized in
tidak boleh dibalik melalui laba rugi. Setiap profit or loss are not reversed through profit or
kenaikan nilai wajar setelah penurunan nilai loss. Any increase in fair value subsequent to
diakui secara langsung ke penghasilan an impairment loss is recognized directly in
komprehensif lain. other comprehensive income.
Penghentian pengakuan aset keuangan Derecognition of financial assets
Grup menghentikan pengakuan aset keuangan The Group derecognizes a financial asset only
jika dan hanya jika hak kontraktual atas arus kas when the contractual rights to the cash flows
yang berasal dari aset keuangan berakhir, atau from the asset expires, or when it transfers the
Grup mentransfer aset keuangan dan secara financial asset and substantially all the risks and
substansial mentransfer seluruh risiko dan rewards of ownership of the asset to another
manfaat atas kepemilikan aset kepada entitas entity. If the Group neither transfers nor retains
lain. Jika Grup tidak mentransfer serta tidak substantially all the risks and rewards of
memiliki secara substansial atas seluruh risiko ownership and continues to control the
dan manfaat kepemilikan serta masih transferred asset, the Group recognizes its
mengendalikan aset yang ditransfer, maka Grup retained interest in the asset and an associated
mengakui keterlibatan berkelanjutan atas aset liability for amounts it may have to pay. If the
yang ditransfer dan liabilitas terkait sebesar Group retains substantially all the risks and
jumlah yang mungkin harus dibayar. Jika Grup rewards of ownership of a transferred financial
memiliki secara substansial seluruh risiko dan asset, the Group continues to recognize the
manfaat kepemilikan aset keuangan yang financial asset and also recognizes a
ditransfer, Grup masih mengakui aset keuangan collateralised borrowing for the proceeds
dan juga mengakui pinjaman yang dijamin received.
sebesar pinjaman yang diterima.
Dalam penghentian pengakuan aset keuangan On derecognition of financial asset in its

secara keseluruhan, selisih antara jumlah entirety, the difference between the asset’s
tercatat aset dan jumlah pembayaran dan carrying amount and the sum of the
piutang yang diterima dan keuntungan atau consideration received and receivable and the
kerugian kumulatif yang telah diakui dalam cumulative gain or loss that had been
penghasilan komprehensif lain dan terakumulasi recognized in other comprehensive income and
dalam ekuitas diakui dalam laba rugi. accumulated in equity is recognized in profit or
loss.
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441
Dalam penghentian pengakuan aset keuangan On derecognition of financial asset other than
terhadap satu bagian saja (misalnya ketika Grup its entirety (e.g., when the Group retains an
masih memiliki hak untuk membeli kembali option to repurchase part of a transferred
bagian aset yang ditransfer), Grup asset), the Group allocates the previous
mengalokasikan jumlah tercatat sebelumnya dari carrying amount of the financial asset between
aset keuangan tersebut pada bagian yang tetap the part it continues to recognize under
diakui berdasarkan keterlibatan berkelanjutan continuing involvement, and the part it no longer
dan bagian yang tidak lagi diakui berdasarkan recognizes on the basis of the relative fair
nilai wajar relatif dari kedua bagian tersebut pada values of those parts on the date of the transfer.
tanggal transfer. Selisih antara jumlah tercatat The difference between the carrying amount
yang dialokasikan pada bagian yang tidak lagi allocated to the part that is no longer recognized
diakui dan jumlah dari pembayaran yang and the sum of the consideration received for
diterima untuk bagian yang tidak lagi diakui dan the part no longer recognized and any
setiap keuntungan atau kerugian kumulatif yang cumulative gain or loss allocated to it that had
dialokasikan pada bagian yang tidak lagi diakui been recognized in other comprehensive
tersebut yang sebelumnya telah diakui dalam income is recognized in profit or loss.
penghasilan komprehensif lain diakui pada laba A cumulative gain or loss that had been
rugi. Keuntungan dan kerugian kumulatif yang recognized in other comprehensive income is
sebelumnya diakui dalam penghasilan allocated between the part that continues to be
komprehensif lain dialokasikan pada bagian recognized and the part that is no longer
yang tetap diakui dan bagian yang dihentikan recognized on the basis of the relative fair
pengakuannya, berdasarkan nilai wajar relatif values of those parts.
kedua bagian tersebut.
h. Liabilitas Keuangan dan Instrumen Ekuitas h. Financial Liabilities and Equity Instruments
Klasifikasi sebagai liabilitias atau ekuitas Classification as debt or equity
Liabilitas keuangan dan instrumen ekuitas yang Financial liabilities and equity instruments
diterbitkan oleh Grup diklasifikasi sesuai dengan issued by the Group are classified according to
substansi perjanjian kontraktual dan definisi the substance of the contractual arrangements
liabilitas keuangan dan instrumen ekuitas. entered into and the definitions of a financial
liability and an equity instrument.
Instrumen ekuitas Equity instruments
Instrumen ekuitas adalah setiap kontrak yang An equity instrument is any contract that
memberikan hak residual atas aset Grup setelah evidences a residual interest in the assets of an
dikurangi dengan seluruh liabilitasnya. Instrumen entity after deducting all of its liabilities. Equity
ekuitas yang diterbitkan oleh Grup dicatat instruments issued by the Group are recorded
sebesar hasil penerimaan bersih setelah at the proceeds received, net of direct issue
dikurangi biaya penerbitan langsung. costs.
Pembelian kembali instrumen ekuitas Perseroan Repurchase of the Company’s own equity
(saham treasuri) diakui dan dikurangkan secara instruments (treasury shares) is recognized and
langsung dari ekuitas. Keuntungan dan kerugian deducted directly in equity. No gain or loss is
yang timbul dari pembelian, penjualan, recognized in profit or loss on the purchase,
penerbitan atau pembatalan instrumen ekuitas sale, issue or cancellation of the Company’s
Perseroan tersebut tidak diakui dalam laba rugi. own equity instruments.
Liabilitas keuangan Financial liabilities
Liabilitas keuangan diklasifikasikan sebagai Financial liabilities are classified at amortized
biaya perolehan diamortisasi. cost.
Liabilitas keuangan pada biaya perolehan Financial liabilities at amortized cost
diamortisasi
Liabilitas keuangan meliputi utang usaha dan Financial liabilities, which include trade and
lainnya, pinjaman bank dan pinjaman lainnya, other payables, bank loans and other
pada awalnya diukur pada nilai wajar, setelah borrowings, are initially measured at fair value,
dikurangi biaya transaksi, dan selanjutnya diukur net of transaction costs, and subsequently
pada biaya perolehan yang diamortisasi measured at amortized cost using the effective
menggunakan metode suku bunga efektif. interest method.



Penghentian pengakuan liabilitas keuangan Derecognition of financial liabilities

Grup menghentikan pengakuan liabilitas The Group derecognizes financial liabilities
keuangan, jika dan hanya jika, liabilitas Grup when, and only when, the Group’s obligations
telah dilepaskan, dibatalkan atau kadaluarsa. are discharged, cancelled or expires. The
Selisih antara jumlah tercatat liabilitas keuangan difference between the carrying amounts of the
yang dihentikan pengakuannya dan imbalan financial liability and the consideration paid and
yang dibayarkan dan utang diakui dalam laba payable is recognized in profit or loss.
rugi.
i. Saling Hapus antar Aset Keuangan dan i. Netting of Financial Assets and Financial
Liabilitas Keuangan Liabilities
Aset dan liabilitas keuangan Grup saling hapus The Group only offsets financial assets and
dan nilai bersihnya disajikan dalam laporan liabilities and presents the net amount in the
posisi keuangan konsolidasian jika dan hanya consolidated statement of financial position
jika: where it:
 saat ini memiliki hak yang berkekuatan  currently has a legal enforceable right to
hukum untuk melakukan saling hapus atas set off the recognized amount; and
jumlah yang telah diakui tersebut; dan
 berniat untuk menyelesaikan secara neto  intends either to settle on a net basis, or to
atau untuk merealisasikan aset dan realize the asset and settle the liability
menyelesaikan liabilitasnya secara simultaneously.
simultan.
j. Kas dan Setara Kas j. Cash and Cash Equivalents
Untuk tujuan penyajian arus kas, kas dan setara For cash flow presentation purposes, cash and
kas terdiri dari kas, bank dan semua investasi cash equivalents consist of cash on hand and in
yang jatuh tempo dalam waktu tiga bulan atau banks and all unrestricted investments with
kurang dari tanggal perolehannya dan yang tidak maturities of three months or less from the date
dijaminkan serta tidak dibatasi penggunaannya. of placement.
k. Kas yang Dibatasi Penggunaannya k. Restricted Cash

Kas dan setara kas yang ditempatkan sebagai Cash and cash equivalents which are placed as
margin deposito atas fasilitas letter of credit, dan margin deposits for letter of credit, and
jaminan utang bank disajikan sebagai collateralized for bank loan facilities are
”Kas dan setara kas yang dibatasi classified as “Restricted cash and cash
penggunaannya.” equivalents”.
l. Investasi Jangka Pendek l. Short-term Investment

Investasi saham kurang dari 20% dan deposito Investment in shares less than 20% and time
berjangka yang jatuh tempo lebih dari tiga bulan deposits with maturities of more than three
disajikan sebagai “Investasi jangka pendek”. months are classified as “Short-term
investment”.
m. Investasi pada Entitas Asosiasi m. Investments in Associates

Entitas asosiasi adalah suatu entitas dimana An associate is an entity over which the Group
Grup mempunyai pengaruh yang signifikan. has significant influence. Significant influence is
Pengaruh signifikan adalah kekuasaan untuk the power to participate in the financial and
berpartipasi dalam keputusan kebijakan operating policy decisions of the investee but is
keuangan dan operasional investee tetapi tidak not control or joint control over those policies.
mengendalikan atau mengendalikan bersama
atas kebijakan tersebut.
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Penghasilan dan aset dan liabilitas dari entitas The results of operations and assets and
asosiasi digabungkan dalam laporan keuangan liabilities of associates are incorporated in these
konsolidasian dicatat dengan menggunakan consolidated financial statements using the
metode ekuitas, kecuali ketika investasi equity method of accounting, except when the
diklasifikasikan sebagai dimiliki untuk dijual, investment is classified as held for sale, in
sesuai dengan PSAK 58 (revisi 2014), Aset Tidak which case, it is accounted for in accordance
Lancar yang Dimiliki untuk Dijual dan Operasi with PSAK 58 (revised 2014), Non-current
yang Dihentikan. Dengan metode ekuitas, Assets Held for Sale and Discontinued
investasi pada entitas asosiasi diakui di laporan Operations. Under the equity method, an
posisi keuangan konsolidasian sebesar biaya investment in an associate is initially recognized
perolehan dan selanjutnya disesuaikan untuk in the consolidated statement of financial
perubahan dalam bagian kepemilikan Grup atas position at cost and adjusted thereafter to
laba rugi dan penghasilan komprehensif lain dari recognize the Group’s share of the profit or loss
entitas asosiasi yang terjadi setelah perolehan. and other comprehensive income of the
Ketika bagian Grup atas kerugian entitas associate. When the Group’s share of losses of
asosiasi melebihi kepentingan Grup pada entitas an associate exceeds the Group’s interest in
asosiasi (yang mencakup semua kepentingan that associate (which includes any long-term
jangka panjang, yang secara substansi, interests that, in substance, form part of the
membentuk bagian dari investasi bersih Grup Group’s net investment in the associate), the
dalam entitas asosiasi), Grup menghentikan Group discontinues recognizing it’s share of
pengakuan bagiannya atas kerugian further losses. Additional losses are recognized
selanjutnya. Kerugian selanjutnya diakui hanya only to the extent that the Group has incurred
apabila Grup mempunyai kewajiban bersifat legal or constructive obligations or made
hukum atau konstruktif atau melakukan payments on behalf of the associate.
pembayaran atas nama entitas asosiasi.
Investasi pada entitas asosiasi dicatat dengan Investments in associates is accounted for
menggunakan metode ekuitas dari tanggal pada using the equity method from the date on the
saat investasi menjadi entitas asosiasi. Setiap investee becomes an associate. Any excess of
kelebihan biaya perolehan investasi atas bagian the cost of acquisition over the Group’s share of
Grup atas nilai wajar bersih dari aset yang the net fair value of identifiable assets, liabilities
teridentifikasi, liabilitas dan liabilitas kontinjen and contingent liabilities of the associate
asosiasi yang diakui pada tanggal akuisisi, recognized at the date of acquisition, is
diakui sebagai goodwill. Goodwill termasuk recognized as goodwill. Goodwill is included
dalam jumlah tercatat investasi, dan diuji within the carrying amount of the investment
penurunan nilai sebagai bagian dari investasi. and assessed for impairment as part of that
Setiap kelebihan dari kepemilikan Grup dari nilai investment. Any excess of the Group’s share of
wajar bersih dari aset yang teridentifikasi, the net fair value of the identifiable assets,
liabilitas dan liabilitas kontinjen atas biaya liabilities and contingent liabilities over the cost
perolehan investasi, sesudah pengujian kembali, of acquisition, after reassessment, are
segera diakui di dalam laba rugi pada periode recognized immediately in profit or loss in the
dimana investasinya diperoleh. period which the investment is acquired.
Persyaratan dalam PSAK 55 Instrumen The requirements of PSAK 55, Financial

Keuangan: Pengakuan dan Pengukuran, Instruments: Recognition and Measurement,
diterapkan untuk menentukan apakah perlu are applied to determine whether it is necessary
untuk mengakui setiap penurunan nilai to recognize any impairment loss with respect
sehubungan dengan investasi pada entitas to the Group’s investment in an
asosiasi Grup. Jika perlu, jumlah tercatat associate. When necessary, the entire carrying
investasi yang tersisa (termasuk goodwill) diuji amount of the investment (including goodwill)
penurunan nilai sesuai dengan PSAK 48, is tested for impairment in accordance with
Penurunan Nilai Aset, sebagai suatu aset PSAK 48, Impairment of Assets, as a single
tunggal dengan membandingkan antara jumlah asset by comparing its recoverable amount
terpulihkan (mana yang lebih tinggi antara nilai (higher of value in use and fair value less costs
pakai dan nilai wajar dikurangi biaya pelepasan) to sell) with its carrying amount. Any
dengan jumlah tercatatnya. Rugi penurunan nilai impairment loss recognized forms part of the
yang diakui pada keadaan tersebut tidak carrying amount of the investment.
dialokasikan pada setiap aset yang membentuk
bagian dari nilai tercatat investasi pada entitas
asosiasi.



Setiap pembalikan dari penurunan nilai diakui Any reversal of that impairment loss is
sesuai dengan PSAK 48 (revisi 2014) sepanjang recognized in accordance with PSAK 48
jumlah terpulihkan dari investasi tersebut (revised 2014) to the extent that the recoverable
kemudian meningkat. amount of the investment subsequently
increases.
Grup menghentikan penggunaan metode The Group discontinues the use of the equity
ekuitas dari tanggal ketika investasinya berhenti method from the date when the investment
menjadi investasi pada entitas asosiasi atau ceases to be an associate or when the
ketika investasi diklasifikasi sebagai dimiliki investment is classified as held for sale. Upon
untuk dijual. Pada saat pelepasan suatu entitas disposal of an associate that results in the
asosiasi yang mengakibatkan Grup kehilangan Group losing significant influence over that
pengaruh signifikan atas entitas asosiasi, associate, any retained investment is measured
investasi yang tersisa diukur pada nilai wajar at fair value at that date and the fair value is
pada tanggal tersebut dan nilai wajarnya regarded as its fair value on initial recognition
dianggap sebagai nilai wajar pada saat as a financial asset in accordance with PSAK
pengakuan awal sebagai suatu aset keuangan 55. The difference between the previous
sesuai dengan PSAK 55. Selisih antara jumlah carrying amount of the associate attributable to
tercatat sebelumnya atas entitas asosiasi the retained interest and the fair value is
diatribusikan ke sisa kepemilikan dan nilai wajar included in the determination of the gain or loss
termasuk dalam penentuan keuntungan atau on disposal of the associate. In addition, the
kerugian atas pelepasan entitas asosiasi. Group accounts for all amounts previously
Selanjutnya, Grup memperhitungkan seluruh recognized in other comprehensive income in
jumlah yang sebelumnya diakui dalam relation to that associate on the same basis as
penghasilan komprehensif lain yang terkait would be required if that associate had directly
dengan entitas asosiasi tersebut dengan disposed of the related assets or
menggunakan dasar yang sama dengan yang liabilities. Therefore, if a gain or loss previously
diperlukan jika entitas asosiasi telah melepaskan recognized in other comprehensive income by
secara langsung aset dan liabilitas yang terkait. that associate would be reclassified to profit or
Oleh karena itu, jika keuntungan atau kerugian loss on the disposal of the related assets or
yang sebelumnya telah diakui dalam liabilities, the Group reclassifies the gain or loss
penghasilan komprehensif lain oleh entitas from equity to profit or loss (as a reclassification
asosiasi akan direklasifikasi ke laba rugi atas adjustment) when the equity method is
pelepasan aset atau liabilitas yang terkait, maka discontinued.
Grup mereklasifikasi keuntungan atau kerugian
dari ekuitas ke laba rugi (sebagai penyesuaian
reklasifikasi) sejak Grup menghentikan
menggunakan metode ekuitas.
Jika Grup mengurangi bagian kepemilikan pada When the group reduces its ownership interest
entitas asosiasi tetapi Grup tetap menerapkan in an associate but the Group continues to use
metode ekuitas, Grup mereklasifikasi ke laba the equity method, the Group reclassifies to
rugi proporsi keuntungan yang telah diakui profit or loss the proportion of the gain that had
sebelumnya dalam penghasilan komprehensif previously been recognized in other
lain yang terkait dengan pengurangan bagian comprehensive income relating to that
kepemilikan (jika keuntungan atau kerugian reduction in ownership interest (if that gain or
tersebut akan direklasifikasi ke laba rugi atas loss would be reclassified to profit or loss on the
pelepasan aset atau liabilitas yang terkait). disposal of the related assets or liabilities).
Ketika Grup melakukan transaksi dengan entitas When a group entity has transactions with its
asosiasi, keuntungan dan kerugian yang timbul associate, profits and losses resulting from the
dari transaksi dengan entitas asosiasi diakui transaction with the associate are recognized in
dalam laporan keuangan konsolidasian Grup the Group’s consolidated financial statements
hanya sebesar kepemilikan dalam entitas only to the extent of its interest in the associate
asosiasi yang tidak terkait dengan Grup. that are not related to the Group.
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n. Persediaan n. Inventories
Persediaan dinyatakan berdasarkan biaya Inventories are stated at cost or net realizable
perolehan atau nilai realisasi bersih, mana yang value, whichever is lower. Cost is determined
lebih rendah. Biaya perolehan ditentukan using the weighted average method for finished
dengan metode rata-rata tertimbang untuk goods and work-in-progress and using the
barang jadi dan barang dalam proses serta moving average method for raw and indirect
metode rata-rata bergerak untuk bahan baku, materials and spare parts. The cost of finished
penolong dan suku cadang. Harga perolehan goods and work-in-progress comprises of raw
barang jadi dan barang dalam proses terdiri dari and indirect materials, direct labor, other direct
biaya bahan baku, tenaga kerja langsung, biaya- costs and related production overheads. Net
biaya langsung lainnya dan biaya overhead yang realizable value is the estimated selling price in
dinyatakan sebesar nilai yang terkait dengan the ordinary course of business, less the
produksi. Nilai realisasi bersih adalah taksiran estimated costs of completion and the
harga jual dalam kegiatan usaha normal estimated selling cost necessary to make the
dikurangi taksiran biaya penyelesaian dan sale.
taksiran biaya yang diperlukan untuk melakukan
penjualan.
Cadangan persediaan usang dan bergerak The allowance for obsolete and slow moving
lambat dihitung setelah dikurangi persediaan inventories is calculated after deducting safety
pengaman. stock.
o. Beban Dibayar Dimuka o. Prepaid Expenses
Beban dibayar dimuka diamortisasi selama Prepaid expenses are amortized over their
manfaat masing-masing beban dengan beneficial periods using the straight-line
menggunakan metode garis lurus. method.
p. Properti Investasi p. Investment Properties
Properti investasi adalah properti (tanah atau Investment properties are properties (land or a
bangunan atau bagian dari suatu bangunan atau building – or part of a building – or both or
kedua-duanya atau prasarana) yang dikuasai infrastructures) which are held by subsidiaries
entitas anak (KIG dan SP) untuk menghasilkan (KIG and SP) to earn rentals or for capital
rental atau untuk kenaikan nilai atau keduanya. appreciation or both. Investment properties are
Properti investasi diukur sebesar nilai perolehan measured at cost less accumulated
setelah dikurangi akumulasi penyusutan dan depreciation and any accumulated impairment
akumulasi kerugian penurunan nilai. losses.
Penyusutan bangunan dan prasarana dihitung Depreciation of buildings and infrastructure is

dengan menggunakan metode garis lurus computed using the straight-line method based
berdasarkan taksiran masa manfaat ekonomis on the estimated useful life of the assets for 10
aset antara 10 sampai 30 tahun. to 30 years.
Tanah dinyatakan berdasarkan biaya perolehan Land is stated at cost and is not depreciated.
dan tidak disusutkan.
Masa manfaat ekonomis, nilai residu dan nilai The estimated useful lives, residual values and
penyusutan direviu setiap akhir tahun dan depreciation method are reviewed at each year
pengaruh dari perubahan estimasi tersebut end, with the effect of any changes in estimated
berlaku prospektif. accounted for on a prospective basis.
Properti investasi mencakup juga properti dalam Investment property includes properties in the
proses pembangunan dan akan digunakan process of development and will be used as
sebagai properti investasi setelah selesai. investment property after completion.
Akumulasi biaya perolehan dan biaya Accumulated acquisition and development
pembangunan (termasuk biaya pinjaman yang costs (including borrowing costs incurred) are
terjadi) diamortisasi pada saat selesai dan siap amortized when completed and ready for use.
untuk digunakan.

- 30 -


Properti investasi dihentikan pengakuannya An investment property is derecognized upon

pada saat dilepaskan atau ketika properti disposal or when the investment property is
investasi tidak digunakan lagi secara permanen permanently withdrawn from use and no future
dan tidak memiliki manfaat ekonomi masa depan economic benefits are expected from the
yang diperkirakan dari pelepasannya. disposal. Any gain or loss arising on
Keuntungan atau kerugian yang timbul dari derecognition of the property (calculated as the
penghentian atau pelepasan properti investasi difference between the net disposal proceeds
ditentukan dari selisih antara hasil neto and the carrying amount of the asset) is
pelepasan dan jumlah tercatat aset dan diakui included in profit or loss in the period in which
dalam laba rugi pada periode terjadinya the property is derecognized.
penghentian atau pelepasan.
Transfer ke properti investasi dilakukan jika, dan Transfers are made to investment properties
hanya jika, terdapat perubahan penggunaan when, and only when, there is a change in use,
yang ditunjukkan dengan berakhirnya evidenced by the end of owner occupation,
pemakaian oleh pemilik, dimulainya sewa commencement of an operating lease with
operasi ke pihak lain. Transfer dari properti another party. Transfers are made from
investasi dilakukan jika, dan hanya jika, terdapat investment properties when, and only when,
perubahan penggunaan yang ditunjukkan there is a change in use, evidenced by
dengan dimulainya penggunaan oleh pemilik commencement of owner occupation or
atau dimulainya pengembangan untuk dijual. commencement of development with a view to
sale.
q. Aset Tetap q. Fixed Assets
Aset tetap yang dimiliki untuk digunakan dalam Fixed assets held for use in the production or
produksi atau penyediaan barang atau jasa atau supply of goods or services, or for
untuk tujuan administratif dicatat berdasarkan administrative purposes, are stated at cost, less
biaya perolehan setelah dikurangi akumulasi accumulated depreciation and any
penyusutan dan akumulasi kerugian penurunan accumulated impairment losses. Such cost
nilai. Biaya perolehan termasuk biaya includes the cost of replacing part of the fixed
penggantian bagian aset tetap saat biaya assets when that cost is incurred, if the
tersebut terjadi, jika memenuhi kriteria recognition criteria are met. Such cost also
pengakuan. Biaya perolehan juga termasuk includes estimated costs of dismantling and
estimasi biaya pembongkaran, dan pemindahan removing of the item and restoring the site on
aset tetap, dan restorasi lokasi aset. which the asset is located.
Biaya legal untuk mendapatkan hak atas tanah Legal costs to obtain land rights when land was
ketika tanah diperoleh pertama kali diakui first acquired is recognized as part of the cost of
sebagai bagian dari harga perolehan tanah. land.
Suku cadang utama dan peralatan siap pakai Major spare parts and stand-by equipment are
diklasifikasikan sebagai aset tetap bila classified as fixed assets when they are
diperkirakan akan digunakan dalam operasi expected to be used in operations during more
selama lebih dari satu tahun. than one year.
Penyusutan (selain tanah dan tanah Depreciation (except for land and mining
pertambangan) diakui sebagai penghapusan properties) is recognized so as to write-off the
biaya perolehan aset dikurangi nilai residu cost of assets less residual values using the
dengan menggunakan metode garis lurus straight-line method based on the estimated
berdasarkan taksiran masa manfaat ekonomis useful lives of the assets as follows:
aset tetap sebagai berikut:
Tahun/
Years
Bangunan, jalan, jembatan dan Buildings, roads, bridges and

pelabuhan 15 - 40 harbors
Mesin-mesin 2 - 30 Machineries
Alat-alat berat dan kendaraan 5 - 10 Heavy equipment and vehicles
Perlengkapan dan peralatan kantor 2-8 Furniture and office equipment
- 31 -
Annual Report 2016
447
Aset sewa pembiayaan disusutkan berdasarkan Assets held under finance leases are
taksiran masa manfaat ekonomis yang sama depreciated over their expected useful lives on
dengan aset yang dimiliki sendiri atau disusutkan the same basis as owned assets or where
selama jangka waktu yang lebih pendek antara shorter, the term of the relevant lease.
periode masa sewa dan umur manfaatnya.
Masa manfaat ekonomis, nilai residu dan metode The estimated useful lives, residual values and
penyusutan direviu setiap akhir tahun dan depreciation method are reviewed at each year
pengaruh dari setiap perubahan estimasi end, with the effect of any changes in estimate
tersebut berlaku prospektif. accounted for on a prospective basis.
Tanah pertambangan dideplesi dengan Mining properties are depleted using the unit of
menggunakan metode unit produksi berdasarkan production method based on estimated
estimasi cadangan. reserves.
Tanah dicatat sesuai dengan biaya perolehannya Land is stated at cost and is not depreciated.
dan tidak disusutkan.
Aset tetap dihentikan pengakuannya pada saat Fixed assets is derecognized upon disposal or
dilepaskan atau saat tidak ada manfaat when no future economic benefits are expected
ekonomis masa depan yang diharapkan dari from its use or disposal. Any gain or loss arising
penggunaan atau pelepasannya. Laba atau rugi on derecognition of the asset (calculated as the
yang timbul dari penghentian pengakuan aset difference between the net disposal proceeds
(dihitung sebagai perbedaan antara jumlah neto and the carrying amount of the asset) is
hasil pelepasan dan jumlah tercatat dari aset) included in profit or loss in the year in which the
diakui dalam laporan laba rugi pada tahun aset asset is derecognized.
tersebut dihentikan pengakuannya.
Biaya konstruksi bangunan, jalan, jembatan, The costs of the construction of buildings,
pelabuhan, pembangkit tenaga listrik dan pabrik roads, bridges, harbors, power and cement
semen serta pemasangan mesin dikapitalisasi plants and the installation of machinery are
sebagai aset dalam penyelesaian. Biaya capitalized as construction in progress. Interest
bunga dan biaya pinjaman lain, seperti pinjaman and other borrowing costs, such as fees on
yang digunakan untuk mendanai proses loans used in financing the construction of a
pembangunan aset tertentu, dikapitalisasi sampai qualifying asset, are capitalized up to the date
dengan saat proses pembangunan tersebut when the construction is completed. These
selesai. Biaya-biaya ini direklasifikasi ke akun aset costs are reclassified into fixed asset accounts
tetap pada saat proses konstruksi atau when the construction or installation is
pemasangan selesai. Penyusutan aset dimulai complete. Depreciation of an asset begins when
pada saat aset tersebut siap untuk digunakan, it is available for use, i.e. when it is in the
yaitu pada saat aset tersebut berada pada lokasi location and condition necessary for it to be
dan kondisi yang diinginkan agar aset siap capable of operating in the manner intended by
digunakan sesuai dengan keinginan dan maksud management. The costs of construction in
manajemen. Biaya perolehan atas aset dalam progress include the transfer of foreign
penyelesaian termasuk transfer keuntungan dan exchange gains and losses on qualifying cash
kerugian selisih kurs atas lindung nilai arus kas flow hedges for the acquisition of assets.
berkaitan dengan pengadaan aset tersebut.
Beban pemeliharaan dan perbaikan dibebankan The cost of maintenance and repairs is charged
pada laba rugi pada saat terjadinya. Biaya-biaya to profit or loss as incurred. Other costs
lain yang terjadi selanjutnya yang timbul untuk incurred subsequently to add to, replace part of,
menambah, mengganti atau memperbaiki aset or service an item of property, plant and
tetap dicatat sebagai biaya perolehan aset jika equipment, are recognized as asset if, and only
dan hanya jika besar kemungkinan manfaat if it is probable that future economic benefits
ekonomis di masa depan berkenaan dengan associated with the item will flow to the entity
aset tersebut akan mengalir ke entitas dan biaya and the cost of the item can be measured
perolehan aset dapat diukur secara andal. reliably.



r. Aset Takberwujud r. Intangible Assets
i. Goodwill i. Goodwill
Goodwill yang timbul dari kombinasi Goodwill arising in a business combination

bisnis diakui sebagai aset pada tanggal is recognized as an asset at the date that
diperolehnya pengendalian (tanggal akuisisi). control is acquired (the acquisition date).
Goodwill diukur sebagai selisih dari Goodwill is measured as the excess of the
penjumlahan imbalan yang dialihkan, jumlah sum of the consideration transferred, the
setiap kepentingan non-pengendali pada amount of any non-controlling interest in
pihak yang diakuisisi dan nilai wajar dari the acquiree and the fair value of the
kepentingan ekuitas yang sebelumnya acquirer’s previously held equity interest (if
dimiliki pihak pengakuisisi pada pihak yang any) in the entity over net of the acquisition-
diakuisisi (jika ada) atas jumlah selisih bersih date amounts of the identifiable assets
dari aset teridentifikasi yang diperoleh dan acquired and the liabilities assumed.
liabilitas yang diambil alih pada tanggal
akuisisi.
Jika setelah penilaian kembali, kepemilikan If, after reassessment, the Group’s interest
Grup pada nilai wajar aset bersih yang in the fair value of the acquiree’s
teridentifikasi dari pihak yang diakuisisi identifiable net assets exceeds the sum of
melebihi dari imbalan yang dialihkan, jumlah the consideration transferred, the amount
setiap kepentingan non-pengendali pihak of any non-controlling interest in the
yang diakuisisi dan nilai wajar dari acquiree and the fair value of the acquirer’s
kepentingan ekuitas yang sebelumnya previously held equity interest in the
dimiliki pihak pengakuisisi pada pihak yang acquiree (if any), the excess is recognized
diakuisisi (jika ada), selisihnya diakui segera immediately in profit or loss as a bargain
dalam laba atau rugi sebagai pembelian purchase gain.
dengan diskon.
Untuk tujuan uji penurunan nilai, goodwill For the purpose of impairment testing,
dialokasikan pada setiap unit penghasil kas goodwill is allocated to each of the Group’s
dari Grup yang diharapkan memberikan cash-generating units expected to benefit
manfaat dari sinergi kombinasi bisnis from the synergies of the combination. A
tersebut. Unit penghasil kas yang telah cash-generating unit to which goodwill has
memperoleh alokasi goodwill diuji penurunan been allocated is tested for impairment
nilainya secara tahunan, dan ketika terdapat annually, or more frequently when there is
indikasi bahwa unit tersebut mengalami an indication that the unit may be impaired.
penurunan nilai. Jika jumlah terpulihkan dari If the recoverable amount of the cash-
unit penghasil kas kurang dari jumlah generating unit is less than its carrying
tercatatnya, rugi penurunan nilai dialokasikan amount, the impairment loss is allocated
pertama untuk mengurangi jumlah tercatat first to reduce the carrying amount of any
aset atas setiap goodwill yang dialokasikan goodwill allocated to the unit and then to
pada unit dan selanjutnya ke aset lainnya dari the other assets of the unit pro-rata on the
unit dibagi prorata atas dasar jumlah tercatat basis of the carrying amount of each asset
setiap aset dalam unit tersebut. Rugi in the unit. An impairment loss recognized
penurunan nilai yang diakui atas goodwill for goodwill is not reversed in subsequent
tidak dapat dibalik pada periode berikutnya. period.
Pada pelepasan unit penghasil kas, jumlah On disposal of the cash-generating unit, the
yang dapat diatribusikan dari goodwill attributable amount of goodwill is included in
termasuk dalam penentuan laba atau rugi the determination of the profit or loss on
atas pelepasan. disposal.
Kebijakan Grup atas goodwill yang timbul The Group’s policy for goodwill arising on
dari akusisi entitas asosiasi dijelaskan pada the acquisition of an associate is described
Catatan 3m. in Note 3m.
Annual Report 2016

449
ii. Merk dan Lisensi ii. Trademarks and Licenses
Merk dan lisensi memiliki masa manfaat Separately acquired trademarks and licenses
yang terbatas dan dicatat sebesar harga are shown at historical cost. Trademarks and
perolehan dikurangi akumulasi amortisasi licenses acquired in a business combination
dan akumulasi kerugian penurunan nilai. are recognized at fair value at the acquisition
Jika merk dan lisensi yang diperoleh date. Trademarks and licenses have a finite
sebagai bagian dari kombinasi bisnis, maka useful life and are carried at cost less
biaya perolehannya adalah nilai wajar pada accumulated amortization. Amortization is
tanggal akuisisi. Amortisasi dihitung dengan calculated using the straight-line method to
menggunakan metode garis lurus untuk allocate the cost of trademarks and licenses
mengalokasikan harga perolehan merk dan over their estimated useful lives of 10 to 40
lisensi selama estimasi masa manfaatnya years.
antara 10 sampai 40 tahun.
iii. Piranti Lunak Komputer iii. Computer Software
Biaya pengembangan yang dapat secara Development cost that are directly
langsung diatribusikan kepada disain dan attributable to the design and testing of
pengujian produk piranti lunak yang dapat identifiable and unique software products
diidentifikasi dan unik yang dikendalikan controlled by the Group is recognized as
oleh Grup diakui sebagai aset takberwujud intangible assets and amortized over their
dan diamortisasi selama estimasi masa estimated useful lives, which does not
manfaat, yang tidak lebih dari lima tahun. exceed five years.
Biaya yang dapat diatribusikan secara Directly attributable costs that are
langsung dikapitalisasi sebagai bagian capitalized as part of the software product
produk piranti lunak mencakup beban include the software development
pekerja pengembang piranti lunak dan employee costs and an appropriate portion
bagian overhead yang relevan. of relevant overheads.
Pengeluaran pengembangan yang lain yang Other development expenditures that do

tidak memenuhi kriteria ini diakui sebagai not meet these criteria are recognized as
beban pada saat terjadinya. Biaya an expense as incurred. Development
pengembangan yang sebelumnya diakui costs previously recognized as an expense
sebagai beban tidak dapat diakui sebagai are not recognized as an asset in a
aset pada periode berikutnya. subsequent period.
Biaya yang terkait dengan pemeliharaan Cost associated with maintaining computer
program piranti lunak komputer diakui software programs are recognized as an
sebagai beban pada saat terjadinya. expense as incurred.
iv. Perpanjangan Hak atas Tanah iv. Renewal of Land Rights
Biaya legal pengurusan hak atas tanah pada The legal cost of land rights upon
saat perolehan tanah tersebut diakui acquisition of the land is recognized as part
sebagai bagian dari biaya perolehan tanah of the cost of land under property, plant and
aset tetap dan properti investasi. equipment and investment property.
Biaya pembaruan atau pengurusan The cost of renewal or extension of legal

perpanjangan hak atas tanah diakui sebagai rights on land is recognized as an
aset takberwujud dan diamortisasi selama intangible asset and amortized over the
periode hak atas tanah sebagaimana period of land rights as stated in the
tercantum dalam kontrak atau umur contract or economic life of the asset,
ekonomis aset, mana yang lebih pendek. whichever is shorter.
Aset takberwujud yang melekat pada suatu Intangible assets embedded to a physical
komponen fisik dan bukan merupakan bagian component and are not a significant part of a
yang signifikan dari suatu aset fisik, diakui physical asset, is recognized as part of the
sebagai bagian dari aset berwujud dan tangible asset and treated as fixed assets.
diperlakukan sebagai aset tetap.

- 34 -


Umur manfaat suatu aset takberwujud yang Useful life of an intangible asset incurred from
timbul dari hak kontraktual atau hak hukum contractual rights or other legal rights shall not
lainnya tidak boleh melebihi periode hak exceed the period of contractual rights or other
kontraktual atau hak hukum lainnya tersebut. legal rights. However, if the contractual rights or
Akan tetapi, jika hak kontraktual atau hak hukum other legal rights can be renewed, the useful life
lainnya tersebut dapat diperbaharui, maka umur includes a renewed period, only if there is an
manfaat mencakup periode yang diperbaharui, evidence to support renewal by the entity
hanya jika terdapat bukti yang mendukung without significant cost.
pembaruan yang dilakukan oleh entitas tanpa
biaya yang signifikan.
Suatu aset tak berwujud dihentikan An intangible asset is derecognized upon

pengakuannya pada saat dilepaskan atau ketika disposal or when no future benefits are
tidak ada lagi manfaat masa depan expected from its use or disposal.
yang diharapkan dari penggunaan atau
pelepasannya.
Laba atau rugi yang timbul dari penghentian Any gain or loss arising on derecognition of the
pengakuan aset (dihitung sebagai perbedaan asset (calculated as the difference between the
antara jumlah neto hasil pelepasan dan jumlah net disposal proceeds and the carrying amount
tercatat dari aset) diakui dalam laporan laba rugi of the asset) is recognized in profit or loss in the
pada tahun aset tersebut dihentikan year in which the asset is derecognized.
pengakuannya.
s. Penurunan Nilai Aset Non-Keuangan kecuali s. Impairment of Non-Financial Assets Except

Goodwill Goodwill
Pada setiap akhir periode pelaporan, Grup At the end of each reporting period, the Group
menelaah nilai tercatat aset non-keuangan untuk reviews the carrying amount of non-financial
menentukan apakah terdapat indikasi bahwa assets to determine whether there is any
aset tersebut telah mengalami penurunan nilai. indication that those assets have suffered an
Jika terdapat indikasi tersebut, nilai yang dapat impairment loss. If any such indication exists,
diperoleh kembali dari aset diestimasi untuk the recoverable amount of the asset is
menentukan tingkat kerugian penurunan nilai estimated in order to determine the extent of the
(jika ada). Bila tidak memungkinkan untuk impairment loss (if any). Where it is not possible
mengestimasi nilai yang dapat diperoleh kembali to estimate the recoverable amount of an
atas suatu aset individu, Grup mengestimasi nilai individual asset, the Group estimates the
yang dapat diperoleh kembali dari unit penghasil recoverable amount of the cash generating unit
kas atas aset. to which the asset belongs.
Estimasi terpulihkan adalah nilai tertinggi antara Estimated recoverable amount is the higher of
nilai wajar dikurangi biaya pelepasan dan nilai fair value less cost to sell and value in use. In
pakai. Dalam menilai nilai pakai, estimasi arus assessing value in use, the estimated future
kas masa depan didiskontokan ke nilai kini cash flows are discounted to their present value
menggunakan tingkat diskonto sebelum pajak using a pre-tax discount rate that reflects
yang menggambarkan penilaian pasar kini dari current market assessments of the time value of
nilai waktu uang dan risiko spesifik atas aset money and the risks specific to the asset for
yang mana estimasi arus kas masa depan belum which the estimates of future cash flows have
disesuaikan. not been adjusted.
Jika jumlah terpulihkan dari aset non-keuangan If the recoverable amount of the non-financial
(unit penghasil kas) kurang dari nilai tercatatnya, asset (cash generating unit) is less than its
nilai tercatat aset (unit penghasil kas) dikurangi carrying amount, the carrying amount of the
menjadi sebesar jumlah terpulihkan dan rugi asset (cash generating unit) is reduced to its
penurunan nilai diakui langsung ke laba rugi. recoverable amount and an impairment loss is
recognized immediately to profit or loss.
Kebijakan akuntansi untuk penurunan nilai aset Accounting policy for impairment of financial
keuangan dijelaskan dalam Catatan 3g; assets is discussed in Note 3g; while
penurunan nilai untuk goodwill dijelaskan dalam impairment for goodwill is discussed in Note
Catatan 3r.i. 3r.i.
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Annual Report 2016
451
t. Sewa t. Leases
Sewa diklasifikasikan sebagai sewa pembiayaan Leases are classified as finance leases
jika sewa tersebut mengalihkan secara whenever the terms of the lease transfer
substansial seluruh risiko dan manfaat yang substantially all the risks and rewards of
terkait dengan kepemilikan aset. Sewa lainnya, ownership to the lessee. All other leases are
yang tidak memenuhi kriteria tersebut, classified as operating leases.
diklasifikasikan sebagai sewa operasi.
Sebagai lessor As lessor
Pendapatan sewa dari sewa operasi diakui Rental income from operating leases is
sebagai pendapatan dengan dasar garis lurus recognized on a straight-line basis over the term
selama masa sewa. Biaya langsung awal yang of the relevant lease. Initial direct costs incurred
terjadi dalam proses negosiasi dan pengaturan in negotiating and arranging an operating lease
sewa operasi ditambahkan dalam jumlah tercatat are added to the carrying amount of the leased
aset sewaan dan diakui dengan dasar garis lurus asset and recognized on a straight-line basis
selama masa sewa. over the lease term.
Sebagai lessee As lessee
Aset pada sewa pembiayaan dicatat pada awal Assets held under finance leases are initially
masa sewa sebesar nilai wajar aset sewaan recognized as assets of the Group at their fair
Grup yang ditentukan pada awal kontrak atau, value at the inception of the lease or, if lower, at
jika lebih rendah, sebesar nilai kini dari the present value of the minimum lease
pembayaran sewa minimum. Liabilitas kepada payments. The corresponding liability to the
lessor disajikan di dalam laporan posisi lessor is included in the consolidated
keuangan konsolidasian sebagai liabilitas sewa statements of financial position as a finance
pembiayaan. lease obligations.
Aset sewa pembiayaan disusutkan berdasarkan Assets held under finance leases are
taksiran masa manfaat ekonomis yang sama depreciated over their expected useful lives on
dengan aset yang dimiliki sendiri atau disusutkan the same basis as owned assets or where
selama jangka waktu yang lebih pendek antara shorter, the term of the relevant lease.
periode masa sewa dan umur manfaatnya.
Pembayaran sewa dipisahkan antara bagian Minimum lease payments are apportioned
yang merupakan beban keuangan dan bagian between the finance charge and the reduction
yang merupakan pelunasan kewajiban sewa. of the outstanding liability. The finance charge
Beban keuangan dialokasikan pada setiap is required to be allocated to each period during
periode selama masa sewa, sehingga the lease term so as to produce a constant
menghasilkan tingkat suku bunga periodik yang periodic rate of interest on the remaining
konstan atas saldo liabilitas. Rental kontinjen balance of the liability. Contingent rents are
dibebankan pada periode terjadinya. Beban required to be charged as expenses in the
keuangan dicatat dalam laporan laba rugi dan periods in which they are incurred. Finance
penghasilan komprehensif lain konsolidasian. charges are reflected in the consolidated
statement of profit or loss and other
comprehensive income.
Untuk sewa operasi, Grup mengakui Under an operating lease, the Group
pembayaran sewa sebagai beban dengan dasar recognizes lease payments as an expense on a
garis lurus (straight-line basis) selama masa straight-line basis over the lease term, except
sewa, kecuali terdapat dasar sistematis lain yang where another systematic basis is more
dapat lebih mencerminkan pola waktu dari representative of the time pattern in which
manfaat aset yang dinikmati pengguna. Rental economic benefits from the leased asset are
kontinjen diakui sebagai beban di dalam periode consumed. Contingent rentals arising under
terjadinya. operating leases are recognized as an expense
in the period in which they are incurred.



Dalam hal insentif diperoleh dalam sewa operasi, In the event that lease incentives are received
insentif tersebut diakui sebagai liabilitas. to enter into operating leases, such incentives
Keseluruhan manfaat dari insentif diakui sebagai are recognized as a liability. The aggregate
pengurangan dari biaya sewa dengan dasar benefit of incentives is recognized as a
garis lurus kecuali terdapat dasar sistematis lain reduction of rental expense on a straight-line
yang lebih mencerminkan pola waktu dari basis, except where another systematic basis is
manfaat yang dinikmati pengguna. more representative of the time pattern in which
economic benefits from the leased asset are
consumed.
u. Beban Tangguhan u. Deferred Charges
Pengeluaran tertentu yang memiliki masa Certain expenditures which have benefits of
manfaat lebih dari satu tahun, ditangguhkan dan more than one year are deferred and amortized
diamortisasi sesuai dengan taksiran masa using the straight-line method over the period of
manfaatnya dengan menggunakan metode garis the expected benefit.
lurus.
v. Provisi v. Provision
Provisi diakui ketika Grup memiliki kewajiban kini Provisions are recognized when the Group has
(baik bersifat hukum maupun bersifat konstruktif) a present obligation (legal or constructive) as a
sebagai akibat peristiwa masa lalu, kemungkinan result of a past event, it is probable that the
besar Grup diharuskan menyelesaikan Group will be required to settle the obligation,
kewajiban dan estimasi yang andal mengenai and a reliable estimate can be made of the
jumlah kewajiban tersebut dapat dibuat. amount of the obligation.
Jumlah yang diakui sebagai provisi adalah hasil The amount recognized as a provision is the
estimasi terbaik pengeluaran yang diperlukan best estimate of the consideration required to
untuk menyelesaikan kewajiban kini pada akhir settle the present obligation at the end of the
periode pelaporan, dengan mempertimbangkan reporting period, taking into account the risks
risiko dan ketidakpastian yang meliputi and uncertainties surrounding the obligation.
kewajibannya. Apabila suatu provisi diukur Where a provision is measured using the cash
menggunakan arus kas yang diperkirakan untuk flows estimated to settle the present obligation,
menyelesaikan kewajiban kini, maka nilai its carrying amount is the present value of those
tercatatnya adalah nilai kini dari arus kas. cash flows.
Ketika beberapa atau seluruh manfaat ekonomi When some or all of the economic benefits
untuk penyelesaian provisi yang diharapkan required to settle a provision are expected to be
dapat dipulihkan dari pihak ketiga, piutang diakui recovered from a third party, a receivable is
sebagai aset apabila terdapat kepastian bahwa recognized as an asset if it is virtually certain
penggantian akan diterima dan jumlah piutang that reimbursement will be received and the
dapat diukur secara andal. amount of the receivable can be measured
reliably.
w. Biaya Pinjaman w. Borrowing Costs
Biaya pinjaman yang dapat diatribusikan secara Borrowing costs directly attributable to the
langsung dengan perolehan, konstruksi atau acquisition, construction or production of
pembuatan aset kualifikasian, yang merupakan qualifying assets, which are assets that
aset yang membutuhkan waktu yang cukup lama necessarily take a substantial period of time to
agar siap untuk digunakan atau dijual, get ready for their intended use or sale, are
ditambahkan pada biaya perolehan aset added to the cost of those assets, until such
tersebut, sampai dengan saat aset secara time as the assets are substantially ready for
substansial siap untuk digunakan atau dijual. their intended use or sale.
Penghasilan investasi diperoleh atas investasi Investment income earned on the temporary
sementara dari pinjaman yang secara spesifik investment of specific borrowings pending their
belum digunakan untuk pengeluaran aset expenditure on qualifying assets is deducted
kualifikasian dikurangi dari biaya pinjaman yang from the borrowing costs eligible for
dikapitalisasi. capitalization.
Annual Report 2016
453
Semua biaya pinjaman lainnya diakui dalam laba All other borrowing costs are recognized in
rugi pada periode terjadinya. 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 Revenue is measured at the fair value of the
yang diterima atau dapat diterima, pendapatan consideration received or receivable. Revenue
dikurangi dengan estimasi retur pelanggan, rabat is reduced for estimated customer returns,
dan cadangan lain yang serupa. rebate and other similar allowances.
Penjualan barang Sale of goods
Pendapatan dari penjualan barang harus diakui Revenue from sale of goods is recognized when
bila seluruh kondisi berikut dipenuhi: all of the following conditions are satisfied:
 Grup telah memindahkan risiko dan manfaat  The Group has transferred to the buyer the
secara signifikan kepemilikan barang significant risks and rewards of ownership
kepada pembeli; of the goods;
 Grup tidak lagi melanjutkan pengelolaan  The Group retains neither continuing
yang biasanya terkait dengan kepemilikan managerial involvement to the degree
atas barang ataupun melakukan usually associated with ownership nor
pengendalian efektif atas barang yang effective control over the goods sold;
dijual;
 Jumlah pendapatan dapat diukur dengan  The amount of revenue can be measured
andal; reliably;
 Kemungkinan besar manfaat ekonomi yang  It is probable that the economic benefits
terkait dengan transaksi akan mengalir associated with the transaction will flow to
kepada Grup tersebut; dan the Group; and
 Biaya yang terjadi atau akan terjadi  The cost incurred or to be incurred in
sehubungan transaksi penjualan tersebut respect of the transaction can be measured
dapat diukur dengan andal. reliably.
Penjualan jasa Rendering of services
Pendapatan dari kontrak atas penyediaan jasa Revenue from contract to provide services is
diakui dengan acuan pada tingkat penyelesaian recognized by reference to the percentage of
berdasarkan kontrak. Pendapatan atas jasa completion of the contract. Revenue from
penambangan dan peledakan diakui pada saat mining and blasting services is recognized
jasa telah diserahkan. when the service is rendered.
Penjualan properti Sale of properties
Entitas anak (KIG) mengakui penjualan A subsidiary (KIG) recognizes the sale of
bangunan rumah dan bangunan sejenis lainnya houses and other similar types of buildings and
beserta kavling tanahnya dengan menggunakan land using the full accrual method, if all of the
metode akrual penuh apabila seluruh kriteria following criteria are satisfied: a sale is
berikut terpenuhi: proses penjualan telah selesai, consummated, the selling price is collectible,
harga jual akan tertagih, tagihan KIG tidak akan KIG’s receivable is not subject to future
bersifat subordinasi di masa yang akan datang subordination to other loans which will be
terhadap pinjaman lain yang akan diperoleh obtained by the buyer, and KIG has transferred
pembeli, dan KIG telah mengalihkan risiko dan to the buyer the usual risks and rewards of
manfaat kepemilikan unit bangunan kepada ownership in a transaction that is in substance
pembeli melalui suatu transaksi yang secara a sale and KIG does not have a substantial
substansi adalah penjualan dan KIG tidak lagi continuing involvement with the property.
berkewajiban atau terlibat secara signifikan
dengan bangunan tersebut.



Penjualan kavling tanah tanpa bangunan diakui Sales of land without buildings are recognized
dengan syarat jumlah pembayaran oleh pembeli provided that down payments from customers
telah mencapai 20% dari harga jual, harga jual are a minimum of 20% of the sales price, the
akan tertagih, tagihan KIG tidak subordinasi sales proceeds are considered to be collectible,
terhadap pinjaman lain, proses pengembangan KIG’s receivable will not be subordinated to
tanah telah selesai sehingga penjual tidak other loans, the process of land development
berkewajiban lagi untuk menyelesaikan tanah has been completed that the seller is no longer
kavling yang dijual, seperti kewajiban untuk obligated to develop the lots sold, such as the
mematangkan tanah kavling atau kewajiban obligation to construct amenities or other
untuk membangun fasilitas-fasilitas pokok yang facilities applicable to the lots sold as provided
dijanjikan oleh atau yang menjadi kewajiban in the agreement between the seller and the
penjual, sesuai dengan pengikatan jual beli atau buyer or regulated by law and the sale consists
ketentuan peraturan perundang-undangan dan only of the lots of land, without any involvement
hanya kavling tanah saja yang dijual tanpa of the seller in the construction of the building
diwajibkan keterlibatan KIG dalam pendirian on the lots sold.
bangunan di atas tanah kavling tersebut.
Pendapatan dividen Dividend revenue
Pendapatan dividen dari investasi diakui ketika Dividend revenue from investments is
hak pemegang saham untuk menerima recognized when the shareholders’ rights to
pembayaran ditetapkan. receive payment has been established.
Pendapatan bunga Interest revenue
Pendapatan bunga diakru berdasarkan waktu Interest revenue is accrued on time basis, by
terjadinya dengan acuan jumlah pokok terutang reference to the principal outstanding and at the
dan tingkat bunga yang berlaku. applicable interest rate.
Beban Expenses
Beban diakui pada saat terjadinya atau sesuai Expenses are recognized when incurred or
dengan masa manfaatnya. 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 Short-term employee benefits are employee
kerja yang jatuh tempo dalam jangka waktu dua benefits which are due for payment within
belas bulan setelah akhir periode pelaporan dan twelve months after the reporting period and
diakui pada saat pekerja telah memberikan jasa recognized when the employees have rendered
kerjanya. the related service.
Imbalan pascakerja Post-employment benefits
Grup memiliki program imbalan pascakerja yang The Group has post-employment benefits
terdiri atas program imbalan pasti dan iuran comprise of defined benefit and defined
pasti. contribution plans.
Program imbalan pasti adalah program pensiun A defined benefit plan is a pension plan that
yang menetapkan jumlah imbalan pensiun yang defines the amount of pension benefit that will
akan diterima oleh karyawan pada saat pensiun, be received by the employee upon retirement,
yang biasanya tergantung pada faktor-faktor, which generally depends on certain factors
seperti masa kerja dan jumlah kompensasi. such as years of service and compensation.
Annual Report 2016

455
Program pensiun iuran pasti adalah program Defined contribution plans are pension plans
pensiun dimana Grup membayar iuran tetap under which the Group pays fixed contributions
kepada sebuah entitas yang terpisah dan tidak into a separate entity and have no legal and
memiliki kewajiban hukum atau kewajiban constructive obligation to pay further
konstruktif untuk membayar iuran lebih lanjut bila contributions if the fund does not have sufficient
dana tersebut tidak memiliki aset yang cukup assets to pay all employee benefits related to
untuk membayar imbalan kerja terkait dengan the employees’ services in the current and prior
jasa yang diberikan oleh karyawan pada periode periods.
berjalan dan sebelumnya.
a) Program Imbalan Pasti a) Defined Benefit Plans
i) Program Pensiun Imbalan Pasti - i) Defined Benefit Pension Plans - the

Perseroan dan entitas anak (SP dan Company and its subsidiaries (SP and
ST) menyelenggarakan program ST) have defined benefit pension plans
pensiun imbalan pasti yang dikelola covering all of their permanent
oleh Dana Pensiun untuk seluruh employees which is managed by a
karyawan tetapnya sebagaimana Pension Fund as stipulated in the
ditetapkan dalam Peraturan Perseroan Company’s and subsidiaries’ (SP and
dan entitas anak (SP dan ST). Jumlah ST) regulations. Total contributions
kontribusi terdiri dari kontribusi consist of employee contributions of 5%
karyawan yang dihitung sebesar 5% of employees’ basic pensionable
dari penghasilan dasar pensiun dan salaries and the Company’s and its
kontribusi Perseroan dan entitas anak subsidiaries’ contributions computed
yang dihitung secara aktuaria. on an actuarial basis.
ii) Program imbalan pasti lainnya dalam iii)ii) Other defined benefit plans in the form
bentuk manfaat pascakerja sesuai of benefits in accordance with Labor
dengan UU Ketenagakerjaan No. Law No. 13/2003 and others.
13/2003 dan lain-lain.
Grup menghitung selisih antara imbalan For normal pension scheme, the Group
berdasarkan undang-undang yang berlaku calculates and recognizes the higher of the
dengan manfaat yang diterima dari program benefits under the Labow Law and those
pensiun untuk pensiun normal. under such pension plan.
Biaya penyediaan imbalan ditentukan The cost of providing benefits is determined

dengan menggunakan metode Projected using the Projected Unit Credit method,
Unit Credit dengan penilaian aktuaria yang with actuarial valuations being carried out
dilakukan pada setiap akhir periode at the end of each annual reporting period.
pelaporan tahunan. Pengukuran kembali, Remeasurement, comprising actuarial
terdiri dari keuntungan dan kerugian gains and losses, the effect of the changes
aktuarial, perubahan dampak batas atas to the asset ceiling (if applicable) and the
aset (jika ada) dan dari imbal hasil atas aset return on plan assets (excluding interest),
program (tidak termasuk bunga), yang is reflected immediately in the consolidated
tercermin langsung dalam laporan posisi statement of financial position with a
keuangan konsolidasian yang dibebankan charge or credit recognised in other
atau dikreditkan dalam penghasilan comprehensive income in the period in
komprehensif lain periode terjadinya. which they occur. Remeasurement
Pengukuran kembali diakui dalam recognised in other comprehensive income
penghasilan komprehensif lain tercermin is reflected in unrealized gain/loss on
dalam pos keuntungan/kerugian aktuaria employee benefits under other
imbalan kerja pada penghasilan comprehensive income in equity and will
komprehensif lain di ekuitas dan tidak akan not be reclassified to profit or loss. Past
direklasifikasi ke laba rugi. Biaya jasa lalu service cost is recognised in profit or loss in
diakui dalam laba rugi pada periode the period of a plan amendment. Net
amandemen program. Bunga neto dihitung interest is calculated by applying the
dengan mengalikan tingkat diskonto pada discount rate at the beginning of the period
awal periode imbalan pasti dengan liabilitas to the net defined benefit liability or asset.
atau aset imbalan pasti neto.



Biaya imbalan pasti dikategorikan sebagai Defined benefit costs are categorised as
berikut: follows:
 Biaya jasa (termasuk biaya jasa kini,  Service cost (including current service
biaya jasa lalu serta keuntungan dan cost, past service cost, as well as gains
kerugian kurtailmen dan penyelesaian). and losses on curtailments and
settlements).
 Beban atau pendapatan bunga neto.  Net interest expense or income.
 Pengukuran kembali.  Remeasurement.
Grup menyajikan dua komponen pertama The Group presents the first two
dari biaya imbalan pasti di laba rugi. components of defined benefit costs in
Keuntungan dan kerugian kurtailmen dicatat profit or loss. Curtailment gains and losses
sebagai biaya jasa lalu. are accounted for as past service costs.
Liabilitas imbalan pensiun yang diakui pada The retirement benefit obligation
laporan posisi keuangan konsolidasian recognised in the consolidated statement of
sehubungan dengan program imbalan financial position in respect of defined
pascakerja imbalan pasti merupakan defisit benefit post-employment plans represents
atau surplus aktual dalam program imbalan the actual deficit or surplus in the Group’s
pasti Grup. Surplus yang dihasilkan dari defined benefit plans. Any surplus resulting
perhitungan ini terbatas pada nilai kini from this calculation is limited to the present
manfaat ekonomik yang tersedia dalam value of any economic benefits available in
bentuk pengembalian dana program dan the form of refunds from the plans or
pengurangan iuran masa depan ke reductions in future contributions to the
program. plans.
b) Program Iuran Pasti b) Defined Contribution Plans
Beban sehubungan dengan program iuran The expenses relating to defined
pasti dihitung berdasarkan persentase contribution plans are determined based on
tertentu dari gaji dasar pensiun atau gaji certain percentages of the basic
dasar asuransi dari setiap peserta program pensionable salaries or insurable salaries
yang menjadi tanggungan Perseroan dan of respective participants which are borne
entitas anak. Perseroan dan entitas anak by the Company and its subsidiaries. The
mengakui utang iuran atau utang premi Company and its subsidiaries recognize
asuransi dalam periode dimana karyawan contributions payable or insurance
memberikan jasanya. premiums payable when an employee has
rendered service during the period.
Imbalan kerja jangka panjang lainnya Other long-term employee benefits
Perseroan dan entitas anak memberikan The Company and its subsidiaries provide other
imbalan kerja jangka panjang lainnya dalam long-term employee benefits in the form of long
bentuk cuti panjang dan penghargaan masa service leave and loyalty awards. The cost of
kerja. Perhitungan imbalan kerja jangka panjang providing other long-term employee benefits is
lainya menggunakan metode Projected Unit determined using Projected Unit Credit method.
Credit. Seluruh keuntungan atau kerugian All actuarial gains or losses and past service
aktuaria dan biaya jasa lalu dibebankan cost are recognized immediately.
langsung.
Jumlah yang diakui sebagai kewajiban untuk The other long-term employee benefits
imbalan kerja jangka panjang lainya di laporan obligation recognized in the consolidated
posisi keuangan konsolidasian adalah nilai kini statement of financial position represents the
kewajiban imbalan pasti per tanggal pelaporan. present value of defined benefit obligation at the
reporting date.
Annual Report 2016

457
z. Perpajakan z. Taxation
Pajak saat terutang berdasarkan laba kena pajak The tax currently payable is based on taxable
untuk suatu tahun. Laba kena pajak berbeda dari profit to the year. Taxable profit differs from
laba sebelum pajak seperti yang dilaporkan profit before tax as reported in the consolidated
dalam laporan laba rugi dan penghasilan statement of profit or loss and other
komprehensif lain karena pos pendapatan atau comprehensive income because of items of
beban yang dikenakan pajak atau dikurangkan income or expense that are taxable or
pada tahun berbeda dan pos-pos yang tidak deductible in other years and items that are
pernah dikenakan pajak atau tidak dapat never taxable or deductible.
dikurangkan.
Beban pajak kini ditentukan berdasarkan laba Current tax expense is determined based on
kena pajak dalam periode yang bersangkutan the taxable income for the year computed using
yang dihitung berdasarkan tarif pajak yang prevailing tax rates.
berlaku.
Pajak tangguhan diakui atas perbedaan Deferred tax is recognized on temporary
temporer antara jumlah tercatat aset dan differences between the carrying amounts of
liabilitas dalam laporan keuangan konsolidasian assets and liabilities in the consolidated
dengan dasar pengenaan pajak yang digunakan financial statements and the corresponding tax
dalam perhitungan laba kena pajak. Liabilitas bases used in the computation of taxable profit.
pajak tangguhan umumnya diakui untuk seluruh Deferred tax liabilities are generally recognized
perbedaan temporer kena pajak. Aset pajak for all taxable temporary differences. Deferred
tangguhan umumnya diakui untuk seluruh tax assets are generally recognized for all
perbedaan temporer yang dapat dikurangkan deductible temporary differences to the extent
sepanjang kemungkinan besar bahwa laba kena that is probable that taxable profits will be
pajak akan tersedia sehingga perbedaan available against which those deductible
temporer dapat dimanfaatkan. Aset dan liabilitas temporary differences can be utilized. Such
pajak tangguhan tidak diakui jika perbedaan deferred tax assets and liabilities are not
temporer timbul dari pengakuan awal (bukan recognized if the temporary differences arises
kombinasi bisnis) dari aset dan liabilitas suatu from the initial recognition (other than in a
transaksi yang tidak mempengaruhi laba kena business combination) of assets and liabilities in
pajak atau laba akuntansi. Selain itu, liabilitas a transaction that affects neither the taxable
pajak tangguhan tidak diakui jika perbedaan profit nor the accounting profit. In addition,
temporer timbul dari pengakuan awal goodwill. deferred tax liabilities are not recognized if the
temporary differences arises from the initial
recognition of goodwill.
Aset dan liabilitas pajak tangguhan diukur Deferred tax assets and liabilities are measured
dengan menggunakan tarif pajak yang at the tax rates that are expected to apply in the
diharapkan berlaku dalam periode ketika period in which the liability is settled or the asset
liabilitas diselesaikan atau aset dipulihkan realized, based on the tax rates (and tax laws)
berdasarkan tarif pajak (dan peraturan pajak) that have been enacted, or substantively
yang telah berlaku atau secara substantif telah enacted, by the end of the reporting period.
berlaku pada akhir periode pelaporan.
Pengukuran aset dan liabilitas pajak tangguhan The measurement of deferred tax assets and
mencerminkan konsekuensi pajak yang sesuai liabilities reflects the tax consequences that
dengan cara Grup memperkirakan, pada akhir would follow from the manner in which the
periode pelaporan, untuk memulihkan atau Group expects, at the end of the reporting
menyelesaikan jumlah tercatat aset dan period, to recover or settle the carrying amount
liabilitasnya. of their assets and liabilities.
Jumlah tercatat aset pajak tangguhan ditelaah The carrying amount of deferred tax asset is
ulang pada akhir periode pelaporan dan dikurangi reviewed at the end of each reporting period
jumlah tercatatnya jika kemungkinan besar laba and reduced to the extent that it is no longer
kena pajak tidak lagi tersedia dalam jumlah yang probable that sufficient taxable profits will be
memadai untuk mengkompensasikan sebagian available to allow all or part of the asset to be
atau seluruh aset pajak tangguhan tersebut. recovered.

- 42 -


Pajak kini dan pajak tangguhan diakui sebagai Current and deferred tax are recognized as an
beban atau penghasilan dalam laba rugi periode, expense or income in profit or loss, except when
kecuali untuk pajak penghasilan yang timbul dari they relate to items that are recognized outside
transaksi atau peristiwa yang diakui, di luar laba of profit or loss (whether in other
rugi (baik dalam penghasilan komprehensif lain comprehensive income or directly in equity), in
maupun secara langsung di ekuitas), dalam hal which case the tax is also recognized outside of
tersebut pajak juga diakui di luar laba rugi atau profit or loss, or where they arise from the initial
yang timbul dari akuntansi awal kombinasi bisnis. accounting for a business combination.
Jika Grup melakukan revaluasi aset tetap hanya If the Group revalued its fixed assets only for tax
untuk tujuan pajak, maka konsekuensi pajak purposes, the tax consequences arising from the
yang timbul dari revaluasi tersebut diakui dalam revaluation are recognized in profit or loss. In the
laba rugi. Pada periode entitas memperoleh period of the Group obtaining the approval from
persetujuan dari otoritas perpajakan, maka: the tax authorities, then:
a) jumlah pajak yang telah dibayar diakui a) The amount of taxes paid is recognized as
sebagai beban pajak dalam laba rugi; income tax expense in profit or loss;
b) Timbul perbedaan temporer yang dapat b) Deductibe temporary differences arise,

dikurangkan, karena dasar pengenaan because the tax bases of assets become
pajak atas aset tetap menjadi lebih tinggi higher than the carrying amount per
dari jumlah tercatat secara akuntansi. accounting. The temporary differences give
Perbedaan temporer tersebut rise to deferred tax assets as economic
menimbulkan aset pajak tangguhan karena benefits will flow to the entity in the form of
manfaat ekonomik akan mengalir ke a reduction in taxable income in the future
entitas dalam bentuk pengurangan laba when the carrying amount of the asset is
kena pajak di masa depan ketika jumlah restored. The increase in the tax base after
tercatat aset tersebut dipulihkan. Kenaikan revaluation resulted in the amount of
dasar pengenaan pajak setelah revaluasi depreciation for tax to be larger than the
mengakibatkan jumlah penyusutan secara accounting depreciation in the future.
pajak menjadi lebih besar dibandingkan Deferred tax derived from temporary
penyusutan secara akuntansi di masa differences are recognized in profit or loss.
depan. Pajak tangguhan yang berasal dari
perbedaan temporer ini diakui dalam laba
rugi.
aa. Laba per Saham aa. Earnings per Share
Laba per saham dasar dihitung dengan membagi Basic earnings per share is computed by
laba bersih yang diatribusikan kepada pemilik dividing net profit attributable to the owners of
entitas induk dengan jumlah rata-rata tertimbang the Company by the weighted average number
saham yang beredar pada tahun yang of shares outstanding during the year.
bersangkutan.
Laba per saham dilusian dihitung dengan Diluted earnings per share is computed by
membagi laba bersih yang diatribusikan kepada dividing net profit attributable to the owners of
pemilik entitas induk dengan jumlah rata-rata the Company by the weighted average number
tertimbang saham biasa yang telah disesuaikan of shares outstanding as adjusted for the effects
dengan dampak dari semua efek berpotensi of all dilutive potential ordinary shares.
saham biasa yang dilutif.
bb. Dividen bb. Dividends
Pembagian dividen kepada pemegang saham Dividend distributions to the Company’s

Perseroan diakui sebagai liabilitas dalam laporan shareholders are recognized as a liability in the
keuangan konsolidasian pada periode saat consolidated financial statements in the period
dividen tersebut disetujui oleh para pemegang the dividends are approved by the Company’s
saham Perseroan. shareholders.
Pembagian dividen interim kepada pemegang Interim dividend distributions to the Company’s
saham Perseroan diakui sebagai liabilitas shareholders are recognized as a liability based
berdasarkan keputusan Direksi dengan on decisions of the Board of Director with the
persetujuan Dewan Komisaris. approval from the Board of Commissioners.
- 43 -
Annual Report 2016
459
cc. Tanah untuk Pengembangan cc. Land for Development
Tanah untuk pengembangan dinyatakan The cost of land for development is stated at
sebesar nilai yang lebih rendah antara biaya cost or net realizable value, whichever is lower.
perolehan dan nilai realisasi bersih. Biaya The costs of land for development consist of the
perolehan tanah untuk pengembangan meliputi acquisition and purchase costs of land,
biaya perolehan tanah ditambah kapitalisasi borrowing costs and other costs related to the
biaya pinjaman dan biaya lainnya sehubungan acquisition of land.
dengan perolehan tanah.
dd. Akuntansi Lindung Nilai dd. Hedge Accounting
Grup menunjuk instrumen lindung nilai tertentu, The Group designates certain hedging
termasuk derivatif, derivatif melekat dan instruments, which include derivatives,
non-derivatif sehubungan dengan risiko embedded derivatives and non-derivatives in
perubahan nilai tukar baik sebagai lindung nilai respect of foreign currency risk, as either fair
atas nilai wajar, lindung nilai atas arus kas atau value hedges, cash flow hedges, or hedges of
lindung nilai atas investasi neto pada usaha net investments in foreign operations. Hedges
kegiatan usaha luar negeri. Lindung nilai risiko of foreign exchange risk on firm commitments
perubahan nilai tukar atas komitmen dicatat are accounted for as cash flow hedges.
sebagai lindung nilai atas arus kas.
Pada awal dimulainya hubungan lindung nilai, At the inception of the hedge relationship, the
Grup mendokumentasi hubungan antara Group documents the relationship between the
instrumen lindung nilai dan item yang dilindung hedging instrument and the hedged item, along
nilai, bersama dengan tujuan manajemen risiko with its risk management objectives and its
dan strategi pelaksanaan lindung nilai. strategy for undertaking various hedge
Selanjutnya, pada saat dimulainya lindung nilai transactions. Furthermore, at the inception of
dan secara berkelanjutan, Grup the hedge and on an ongoing basis, the Group
mendokumentasikan apakah instrumen lindung documents whether the hedging instrument is
nilai sangat efektif dalam rangka saling hapus highly effective in offsetting changes in fair
perubahan dalam nilai wajar atau perubahan values or cash flows of the hedged item
arus kas dari item yang dilindung nilai yang dapat attributable to the hedged risk.
diatribusikan pada risiko lindung nilai.
Lindung nilai atas arus kas Cash flow hedges
Bagian efektif dari perubahan nilai wajar derivatif The effective portion of changes in the fair value
yang ditujukan dan memenuhi kualifikasi sebagai of derivatives that are designated and qualify as
lindung nilai arus kas diakui sebagai penghasilan cash flow hedges is recognized in other
komprehensif lainnya dan terakumulasi sebagai comprehensive income and accumulated under
cadangan lindung nilai arus kas. Keuntungan the heading of cash flow hedging reserve. The
atau kerugian yang terkait dengan bagian yang gain or loss relating to the ineffective portion is
tidak efektif langsung diakui dalam laba rugi. recognized immediately in profit or loss.
Jumlah yang sebelumnya diakui sebagai Amounts previously recognized in other
penghasilan komprehensif lainnya dan comprehensive income and accumulated in
terakumulasi dalam ekuitas direklasifikasi ke equity are reclassified to profit or loss in the
laba rugi pada periode ketika item yang dilindung periods when the hedged item is recognized in
nilai diakui dalam laba rugi, di baris yang sama profit or loss, in the same line of the
dari laporan laba rugi dan penghasilan consolidated statement of profit or loss and
komprehensif lain konsolidasian dengan item other comprehensive income with the
yang dilindung nilai diakui. Namun, ketika suatu recognized hedged item. However, when the
lindung nilai atas prakiraan transaksi yang hedged forecast transaction results in the
kemudian menimbulkan pengakuan aset recognition of a non-financial asset or a non-
non-keuangan atau liabilitas non-keuangan, financial liability, the gains and losses
keuntungan dan kerugian yang sebelumnya previously recognized in other comprehensive
diakui sebagai penghasilan komprehensif income and accumulated in equity are
lainnya dan terakumulasi di ekuitas dipindahkan transferred from equity and included in the initial
dari ekuitas dan termasuk dalam pengukuran measurement of the cost of the non-financial
awal biaya dari aset non-keuangan atau liabilitas asset or non-financial liability.
non-keuangan.

- 44 -


Akuntansi lindung nilai dihentikan pada saat Hedge accounting is discontinued when the
Grup membatalkan hubungan lindung nilai, Group revokes the hedging relationship, when
ketika instrumen lindung nilai kadaluwarsa atau the hedging instrument expires or is sold,
dijual, dihentikan atau dieksekusi, atau ketika terminated, or exercised, or it no longer qualifies
tidak lagi memenuhi persyaratan akuntansi for hedge accounting. Any gain or loss
lindung nilai. Keuntungan dan kerugian diakui recognized in other comprehensive income and
dalam penghasilan komprehensif lainnya dan accumulated in equity at that time remains in
terakumulasi di ekuitas saat itu tetap berada di equity and is recognized when the forecast
bagian ekuitas dan akan diakui pada saat transaction is ultimately recognized in profit or
prakiraan transaksi yang pada akhirnya diakui loss. When a forecast transaction is no longer
dalam laba rugi. Ketika prakiraan transaksi tidak expected to occur, the gain or loss accumulated
lagi diharapkan akan terjadi, akumulasi in equity is recognized immediately in profit or
keuntungan atau kerugian dalam ekuitas loss.
langsung diakui dalam laba rugi.
ee. Informasi Segmen ee. Segment Information

Segmen operasi diidentifikasi berdasarkan Operating segments are identified on the basis
laporan internal mengenai komponen dari Grup of internal reports about components of the
yang secara reguler direviu oleh “pengambil Group that are regularly reviewed by the “chief
keputusan operasional” dalam rangka operating decision maker” in order to allocate
mengalokasikan sumber daya dan menilai resources to the segments and to assess their
kinerja segmen operasi. performances.
Segmen operasi adalah suatu komponen dari An operating segment is a component of an
entitas: entity:
a) yang terlibat dalam aktivitas bisnis yang a) that engages in business activities from
mana memperoleh pendapatan dan which it may earn revenues and incurred
menimbulkan beban (termasuk pendapatan expenses (including revenues and
dan beban terkait dengan transaksi dengan expenses relating to the transactions with
komponen lain dari entitas yang sama); other components of the same entity);
b) yang hasil operasinya dikaji ulang secara b) whose operating results are reviewed
reguler oleh pengambil keputusan regularly by the entity’s chief operating
operasional untuk membuat keputusan decision maker to make decision about
tentang sumber daya yang dialokasikan resources to be allocated to the segments
pada segmen tersebut dan menilai and assess its performance; and
kinerjanya; dan
c) dimana tersedia informasi keuangan yang c) for which discrete financial information is
dapat dipisahkan. available.
Informasi yang digunakan oleh pengambil Information reported to the chief operating
keputusan operasional dalam rangka alokasi decision maker for the purpose of resource
sumber daya dan penillaian kinerja mereka allocation and assessment of performance is
terfokus pada kategori dari setiap produk. more specifically focused on the category of
each product.
4. PERTIMBANGAN KRITIS AKUNTANSI DAN 4. CRITICAL ACCOUNTING JUDGEMENTS AND

ESTIMASI AKUNTANSI YANG SIGNIFIKAN SIGNIFICANT ACCOUNTING ESTIMATES
Dalam penerapan kebijakan akuntansi Grup, yang In the application of the Group accounting policies,
dijelaskan dalam Catatan 3, direksi diwajibkan untuk which are described in Note 3, the directors are
membuat pertimbangan, estimasi dan asumsi required to make judgments, estimates and
tentang jumlah tercatat aset dan liabilitas yang tidak assumptions about the carrying amounts of assets
tersedia dari sumber lain. Estimasi dan asumsi yang and liabilities that are not readily apparent from other
terkait didasarkan pada pengalaman historis dan sources. The estimates and associated
faktor-faktor lain yang dianggap relevan. Hasil assumptions are based on historical experience and
aktualnya mungkin berbeda dari estimasi tersebut. other factors that are considered to be relevant.
Actual results may differ from these estimates.
- 45 -
Annual Report 2016
461
Estimasi dan asumsi yang mendasari ditelaah secara The estimates and underlying assumptions are
berkelanjutan. Revisi estimasi akuntansi diakui dalam reviewed on an ongoing basis. Revisions to
periode dimana estimasi tersebut direvisi jika revisi accounting estimates are recognized in the period
hanya mempengaruhi periode tersebut, atau pada which the estimate is revised if the revision affects
periode revisi dan periode masa depan jika revisi only that period, or in the period of the revision and
mempengaruhi periode saat ini dan masa depan. future periods if the revision affects both current and
future periods.
Pertimbangan Kritis dalam Penerapan Kebijakan Critical Judgments in Applying Accounting
Akuntansi Policies
Di bawah ini adalah pertimbangan kritis, selain dari Below are the critical judgments, apart from those
estimasi yang telah diatur, dimana direksi telah involving estimations, that the directors have made
membuat suatu proses penerapan kebijakan in the process of applying the Group accounting
akuntansi Grup dan memiliki pengaruh paling policies and that have the most significant effect on
signifikan terhadap jumlah yang diakui dalam laporan the amounts recognized in the consolidated financial
keuangan konsolidasian. statements.
Sewa Lease
Grup mempunyai perjanjian-perjanjian sewa dimana The Group entered into lease agreements where the
Grup bertindak sebagai leasee untuk beberapa aset Company and its subsidiaries act as lessee for
tetap tertentu. Grup mengevaluasi apakah terdapat certain fixed assets. The Group evaluates whether
risiko dan manfaat yang signifikan dari aset sewa there are significant risks and rewards of assets
yang dialihkan berdasarkan PSAK No. 30 (revisi transferred under PSAK No. 30 (revised 2014),
2014), “Sewa”, yang mensyaratkan Grup untuk "Leases", which requires the Group to make
membuat pertimbangan dan estimasi dari pengalihan judgments and estimates of the transfer of risks and
risiko dan manfaat terkait dengan kepemilikan aset. rewards incidental to ownership.
Grup mengadakan perjanjian sewa bangunan, kapal The Group entered into a lease of buildings, ships,
laut, kendaraan dan peralatan kantor tertentu. Grup vehicles and certain office equipment. The Group
telah menentukan, berdasarkan evaluasi atas syarat had determined, based on an evaluation of the
dan ketentuan dalam perjanjian, bahwa secara terms and conditions of the agreement, that
substansial seluruh risiko dan manfaat yang terkait substantially all the risks and rewards incidental to
dengan kepemilikan aset yang disewa dialihkan di ownership of these leased assets were transferred
Grup sehingga perjanjian sewa tersebut diakui to the Group, therefore the lease agreement are
sebagai sewa pembiayaan. Penjelasan lebih lanjut recognized as a finance lease. Further details are
diungkapkan dalam Catatan 21. disclosed in Note 21.
Pengendalian atas SIA Control over SIA

Catatan 1b menjelaskan bahwa SIA adalah entitas Note 1b describes that SIA is a subsidiary of the
anak dari Grup meskipun Grup memiliki kepemilikan Group even though the Group has only 38.28%
hanya 38.28%. ownership interest.
Direksi Perseroan menilai apakah Grup memiliki The directors of the Company assessed whether or
pengendalian atas SIA berdasarkan kemampuan not the Group has control over SIA based on the
Grup untuk mengarahkan kegiatan yang relevan dari practical abilitiy of the Group to direct the relevant
SIA secara sepihak. Dalam membuat activities of SIA unilaterally. In making their
pertimbangannya, Direksi mempertimbangkan surat judgment, the directors considered the letter of
kuasa dari SCA kepada Perseroan untuk power of attorney from SCA to the Company in
melaksanakan kewenangan sebagai pemegang which to exercise power as majority shareholder in
saham mayoritas dalam Rapat Umum Pemegang the General Meeting of Shareholder of SIA. After
Saham SIA. Setelah penilaian, direksi menyimpulkan assessment, the directors concluded that the Group
bahwa Grup memiliki hak suara yang cukup dominan has a sufficiently dominant voting interest to direct
untuk mengarahkan kegiatan yang relevan dari SIA the relevant activities of SIA.
dan karenanya Grup memiliki pengendalian atas SIA.



Kombinasi bisnis Business combination
Proses awal atas akuisisi entitas anak dan entitas The initial process on the acquisition of subsidiaries
asosiasi melibatkan identifikasi dan penentuan nilai and associates involves identifying and determining
wajar yang akan dialokasikan untuk aset dan liabilitas the fair values to be assigned to the identifiable
yang dapat diidentifikasi dari entitas yang diakuisisi. assets and liabilities of the acquired entities. The fair
Nilai wajar aset tetap dan aset takberwujud values of fixed assets and intangible assets are
ditentukan oleh penilai independen dengan mengacu determined by independent valuers by reference to
pada harga pasar atau nilai sekarang dari arus kas market prices or present value of expected net cash
bersih yang diharapkan dari aset tersebut. Setiap flows from the assets. Any changes in the
perubahan dalam asumsi dan estimasi yang assumptions used and estimates made in
digunakan dalam menentukan nilai wajar entitas yang determining the fair values of the acquired entity will
diakuisisi akan berdampak pada jumlah tercatat dari impact the carrying amount of these assets and
aset dan liabilitas ini. liabilities.
Sumber Estimasi Ketidakpastian Key Sources of Estimation Uncertainty
Rugi penurunan nilai pada pinjaman dan piutang Impairment loss on loans and receivables
Grup mengevaluasi pelanggan tertentu jika terdapat The Group evaluates specific customers where it
informasi bahwa pelanggan tersebut tidak dapat has information that certain customers are unable to
memenuhi kewajiban keuangannya. Dalam hal meet their financial obligations. In these cases, the
tersebut, Grup mempertimbangkan, berdasarkan Group uses judgment, based on the best available
fakta dan situasi yang tersedia, termasuk namun tidak facts and circumstances, including but not limited to,
terbatas pada, jangka waktu hubungan dengan the length of its relationship with the customer,
pelanggan, kualitas jaminan yang diterima dan status quality of collateral received and the customer’s
kredit dari pelanggan berdasarkan catatan kredit current credit status based on any available third
pihak ketiga yang tersedia dan faktor pasar yang party credit reports and known market factors, to
telah diketahui, untuk mencatat cadangan yang record specific allowance for customers against
spesifik atas jumlah piutang pelanggan guna amounts due to reduce its receivable amounts that
mengurangi jumlah piutang yang diharapkan dapat the Group expect to collect. These specific
diterima oleh Grup. Cadangan yang spesifik ini allowances are re-evaluated and adjusted as
dievaluasi kembali dan disesuaikan jika diterima additional information received affects the amounts
tambahan informasi yang mempengaruhi jumlah of allowance for impairment losses on trade
cadangan penurunan nilai piutang. receivables.
Bila Grup memutuskan bahwa tidak terdapat bukti If the Group determine that no objective evidence of
obyektif atas penurunan nilai pada evaluasi individual impairment exists for an individually assessed
atas piutang, baik yang nilainya signifikan maupun receivables, whether significant or not, it includes
tidak, Grup menyertakannya dalam kelompok piutang the asset in a group of financial assets with similar
dengan risiko kredit yang serupa karakteristiknya dan credit risk characteristics and collectively assesses
melakukan evaluasi kolektif atas penurunan nilai. them for impairment. The characteristics chosen are
Karakteristik yang dipilih mempengaruhi estimasi relevant to the estimation of future cash flows for
arus kas masa depan atas kelompok piutang groups of such receivables by being indicative of the
tersebut karena merupakan indikasi bagi customers’ ability to pay all amounts due.
kemampuan pelanggan untuk melunasi jumlah
terutang.
Arus kas masa depan pada kelompok piutang yang Future cash flows in a group of receivables that are
dievaluasi secara kolektif untuk penurunan nilai collectively evaluated for impairment are estimated
diestimasi berdasarkan pengalaman kerugian historis on the basis of historical loss experience for the
bagi piutang usaha dengan karakteristik risiko kredit trade receivables with credit risk characteristics
yang serupa dengan piutang usaha pada kelompok similar to those in the group. Further details are
tersebut. Penjelasan lebih lanjut diungkapkan dalam disclosed in Notes 7 and 8.
Catatan 7 dan 8.
Annual Report 2016

463
Penilaian instrumen keuangan Valuation of financial instruments

Seperti dijelaskan dalam Catatan 47, Grup As described in Note 47, the Group uses valuation
menggunakan teknik penilaian yang meliputi input techniques that include inputs that are not based on
yang tidak didasarkan pada data pasar yang dapat observable market data to estimate the fair value of
diobservasi untuk mengestimasi nilai wajar dari certain types of financial instruments.
beberapa jenis instrumen keuangan. Catatan 47 Note 47 provides detailed information about the key
memberikan informasi yang rinci mengenai asumsi assumptions used in the determination of the fair
utama yang digunakan dalam menentukan nilai wajar value of financial instruments, as well as the detailed
instrumen keuangan, serta analisis sensitivitas yang sensitivity analysis for these assumptions.
rinci untuk asumsi tersebut.
Direksi berpendapat bahwa teknik penilaian yang The directors believe that the chosen valuation
dipilih dan asumsi yang digunakan adalah tepat techniques and assumptions used are appropriate
dalam menentukan nilai wajar dari instrumen in determining the fair value of financial instruments.
keuangan.
Taksiran masa manfaat ekonomis aset tetap dan Estimated useful lives of fixed assets and
properti investasi investment properties
Manajemen menentukan estimasi masa manfaat dan Management determines the estimated useful lives
beban penyusutan dari aset tetap dan properti and depreciation of fixed assets and investment
investasi. Depresiasi dihitung berdasarkan biaya property. Depreciation is calculated based on the
komponen-komponen aset tetap dikurangi dengan various components of the cost of fixed assets less
nilai sisa. Estimasi utama mencakup estimasi masa the residual value. The main estimate includes the
manfaat pabrik semen yang bisa berbeda dengan estimated useful life of the cement plant which could
masa manfaat sesungguhnya. Masa manfaat differ from the actual useful life. Actual useful life will
sesungguhnya akan bergantung pada berbagai faktor depend on various factors such as maintenance,
seperti pemeliharaan, perkembangan teknologi, technology development, cement market, etc.
pasar semen, dan sebagainya. Nilai sisa pabrik juga Residual value of the plant is also difficult to
sulit diestimasi karena lamanya masa manfaat pabrik estimate because of the length of the useful life of
dan ketidakpastian akan kondisi ekonomi. Nilai sisa the plant and the uncertainty of economic
diestimasi setiap tahun berdasarkan kondisi teknis conditions. The residual value is estimated annualy
peralatan tersebut. based on the technical condition of the equipment.
Jika estimasi masa manfaat dan nilai sisa harus If the estimated useful lives and residual values
direvisi, penambahan beban depresiasi dapat terjadi should be revised, additional depreciation expense
di masa yang akan datang. Penjelasan lebih lanjut may occur in the future. Further details are disclosed
diungkapkan dalam Catatan 14 dan 15. in Notes 14 and 15.
Penurunan nilai aset non-keuangan Impairment of non-financial assets
Penurunan nilai muncul saat nilai tercatat aset atau An impairment exists when the carrying amount of
Unit Penghasil Kas (UPK) melebihi nilai an asset or a Cash Generating Unit (CGU) exceeds
terpulihkannya, yang lebih besar antara nilai wajar its recoverable amount, which is the higher of its fair
dikurangi biaya untuk menjual dan nilai pakainya. value less costs to sell and its value in use. The fair
Nilai wajar dikurangi biaya untuk menjual didasarkan value less costs to sell calculation is based on the
pada harga yang akan diterima untuk menjual suatu price that would be received to sell an asset or paid
aset atau harga yang akan dibayar untuk to transfer a liability in an orderly transaction
mengalihkan suatu liabilitas dalam transaksi teratur between market participants at measurement date
antara pelaku pasar pada tanggal pengukuran less incremental costs for disposing the asset.
dikurangi dengan biaya tambahan yang dapat
diatribusikan dengan pelepasan aset.



Perhitungan nilai pakai didasarkan pada model arus The value in use calculation is based on a
kas yang didiskontokan. Perhitungan nilai pakai discounted cash flow model. The value in use
mengharuskan manajemen untuk mengestimasi arus calculation requires the management to estimate
kas masa mendatang yang diharapkan akan the future cash flows expected to arise from the
diperoleh dari unit penghasil kas menggunakan cash-generating unit using an appropriate growth
tingkat pertumbuhan dan diskonto yang wajar dalam rate and a suitable discount rate in order to calculate
menghitung nilai kini. Proyeksi arus kas tidak present value. The future cash flow projection does
termasuk aktivitas restrukturisasi yang belum ada not include restructuring activities that are not yet
perikatannya atau investasi signifikan di masa depan committed to or significant future investments that
yang akan meningkatkan kinerja dari UPK yang diuji. will enhance the asset’s performance of the CGU
Nilai terpulihkan paling sensitif terhadap tingkat being tested. The recoverable amount is most
diskonto yang digunakan untuk model arus kas yang sensitive to the discount rate used for the discounted
didiskontokan seperti halnya dengan arus kas masuk cash flow model as well as the expected future cash
masa depan yang diharapkan dan tingkat inflows and the growth rate used for extrapolation
pertumbuhan yang digunakan untuk tujuan purposes. The management believes that no
ekstrapolasi. Manajemen berkeyakinan bahwa tidak impairment loss is required as of December 31,
diperlukan pencatatan kerugian penurunan nilai pada 2016 and 2015.
tanggal 31 Desember 2016 dan 2015.
Imbalan pascakerja Post-employment benefits
Nilai kini liabilitas imbalan pascakerja tergantung The present value of post-employment liability
pada beberapa faktor yang ditentukan dengan dasar depends on several factors that are determined by
aktuarial berdasarkan beberapa asumsi. Asumsi actuarial basis based on several assumptions.
yang digunakan untuk menentukan biaya bersih Assumptions used to determine the net cost of post-
imbalan pascakerja mencakup tingkat diskonto, employment benefits include a discount rate, salary
tingkat kenaikan gaji, dan tingkat pengembalian increase rate, and expected return on plan assets.
investasi. Perubahan asumsi-asumsi ini akan Changes in these assumptions will affect the
mempengaruhi jumlah tercatat liabilitas imbalan carrying amounts of post-employment liabilities.
pascakerja.
Tingkat diskonto ditentukan pada akhir periode The appropriate discount rate at the end of the
pelaporan, yakni tingkat suku bunga untuk reporting period is the interest rate used in
menentukan nilai kini arus kas keluar masa depan determining the present value of estimated future
estimasian yang diharapkan untuk menyelesaikan cash outflows expected to settle the post-
liabilitas imbalan pascakerja. Dalam menentukan employment liabilities. In determining the
tingkat suku bunga yang sesuai, Grup appropriate level of interest rates, the Group
mempertimbangkan tingkat suku bunga obligasi considers the interest rates of government bonds
pemerintah yang didenominasikan dalam mata uang denominated in Rupiah, the currency in which the
Rupiah, mata uang yang mana imbalan akan dibayar, benefits will be paid, and which has a similar time
dan yang memiliki jangka waktu yang serupa dengan period with a period of related post-employment
jangka waktu liabilitas imbalan pascakerja yang benefits liability.
terkait.
Asumsi utama yang digunakan untuk penentuan The key assumption used for determining other
liabilitas imbalan pascakerja lainnya termasuk asumsi post-employment liabilities included current market
kondisi pasar saat ini. Informasi tambahan conditions. Additional information is disclosed in
diungkapkan pada Catatan 41. Note 41.
Annual Report 2016

465
Provisi pajak Provision for tax
Pertimbangan signifikan dilakukan dalam Significant judgment is involved in determining the

menentukan provisi atas pajak penghasilan badan provision for corporate income tax and other taxes
maupun pajak lainnya atas transaksi tertentu. on certain transactions. Uncertainties exist with
Ketidakpastian timbul terkait dengan interpretasi dari respect to the interpretation of complex tax
peraturan perpajakan yang kompleks dan jumlah dan regulations and the amount and timing of future
waktu dari penghasilan kena pajak di masa depan. taxable income. In determining the amount to be
Dalam menentukan jumlah yang harus diakui terkait recognized in respect of an uncertain tax liability, the
dengan liabilitas pajak yang tidak pasti, Grup Group applies similar considerations as it would use
menerapkan pertimbangan yang sama yang akan in determining the amount of a provision to be
digunakan dalam menentukan jumlah cadangan yang recognized in accordance with PSAK No. 57
harus diakui sesuai dengan PSAK No. 57 (revisi (revised 2014), “Provisions, Contingent Liabilities
2014), “Provisi, Liabilitas Kontinjensi, dan Aset and Contingent Asset”. The Group makes an
Kontinjensi”. Grup membuat analisa terhadap semua analysis of all tax positions related to income taxes
posisi pajak yang terkait dengan pajak penghasilan to determine if a tax liability for unrecognized tax
untuk menentukan jika liabilitas pajak untuk manfaat benefit should be recognized.
pajak yang belum diakui harus diakui.
Grup mengakui liabilitas atas pajak penghasilan The Group recognizes liabilities for expected
badan berdasarkan estimasi apakah akan terdapat corporate income tax issues based on estimates of
tambahan pajak penghasilan badan. Penjelasan lebih whether additional corporate income tax will be due.
rinci diungkapkan dalam Catatan 39. Further details are disclosed in Note 39.
Aset pajak tangguhan Deferred tax assets

Aset pajak tangguhan diakui atas seluruh perbedaan Deferred tax assets are recognized for all deductible
temporer yang dapat dikurangkan, sepanjang besar temporary differences, to the extent that it is
kemungkinannya bahwa penghasilan kena pajak probable that taxable profit will be available against
akan tersedia sehingga perbedaan temporer tersebut which the deductible temporary differences can be
dapat digunakan. Estimasi signifikan oleh utilized. Significant management estimates are
manajemen disyaratkan dalam menentukan total aset required to determine the amount of deferred tax
pajak tangguhan yang dapat diakui, berdasarkan saat assets that can be recognized, based upon the likely
penggunaan dan tingkat penghasilan kena pajak timing and the level of the future taxable profits
serta strategi perencanaan pajak masa depan. together with future tax planning strategies. Further
Penjelasan lebih rinci diungkapkan dalam Catatan details are disclosed in Note 39.
39.
Penyisihan penurunan nilai persediaan usang dan Allowance for obsolete and slow moving inventories
bergerak lambat
Cadangan persediaan usang dan bergerak lambat Allowance for obsolete and slow moving inventories
diestimasi berdasarkan fakta dan situasi yang is estimated based on the best available facts and
tersedia, termasuk namun tidak terbatas kepada, circumstances, including but not limited to, the
kondisi fisik persediaan yang dimiliki, harga jual inventories’ own physical conditions, their market
pasar, estimasi biaya penyelesaian dan estimasi selling prices, estimated costs of completion and
biaya yang timbul untuk penjualan. Cadangan estimated costs to be incurred for their sales. The
dievaluasi kembali dan disesuaikan jika terdapat allowance is reevaluated and adjusted as additional
tambahan informasi yang mempengaruhi jumlah information received affects the amount estimated.
yang diestimasi. Penjelasan lebih rinci diungkapkan Further details are disclosed in Note 9.
dalam Catatan 9.



Provisi untuk biaya restorasi tanah tambang Provision for quarry restoration
Grup melakukan penelaahan atas provisi restorasi The Group asseses its quarry restoration provision
tanah tambang pada akhir periode laporan. Dalam at end of reporting period. Significant estimates and
penentuan jumlah provisi untuk restorasi tanah assumptions are made in determining the provision
tambang diperlukan estimasi dan asumsi yang for quarry restoration as there are numerous factors
signifikan karena terdapat banyak faktor yang that will affect the ultimate liability payable. These
mempengaruhi jumlah terutang pada akhirnya. factors include estimates of the extent and costs of
Faktor-faktor tersebut mencakup estimasi untuk restoration activities, technological changes,
waktu dan jumlah biaya untuk aktivitas restorasi, regulatory changes, cost increases as compared to
perubahan teknologi, perubahan peraturan, the inflation rates and changes in discount rates.
peningkatan biaya dibandingkan dengan tingkat Those uncertainties may result in future actual
inflasi dan perubahan tingkat bunga diskonto. expenditure differing from the amounts currently
Ketidakpastian tersebut dapat mengakibatkan jumlah provided. The provision at end of reporting period
pengeluaran aktual di masa mendatang dapat represents management’s best estimate of the
berbeda dengan jumlah yang dicadangkan saat ini. present value of the future restoration costs
Jumlah provisi pada akhir periode pelaporan required. Further details are disclosed in Note 27.
merupakan estimasi terbaik manajemen atas nilai kini
dari biaya restorasi masa mendatang yang
diperlukan. Penjelasan lebih rinci diungkapkan dalam
Catatan 27.
Kewajiban pembongkaran dan pemindahan aset Obligation for dismantling and removal of fixed
tetap assets
Kewajiban pembongkaran dan pemindahan aset Obligation for dismantling and removal of fixed
tetap diakui dalam tahun terjadinya jika estimasi yang assets is recognized in the year in which it is
memadai terhadap nilai wajar dapat dibuat. incurred if reasonable estimates of fair value can be
Pengakuan kewajiban tersebut mensyaratkan made. Recognition of liabilities requires estimation
estimasi terhadap biaya untuk restorasi/membongkar of the cost for restoration / dismantling for each
untuk setiap lokasi dan berdasarkan estimasi terbaik location and based on the best estimate of the
dari pengeluaran yang diperlukan untuk expenditure required to settle the liabilities of the
menyelesaikan liabilitas dari restorasi/pembongkaran restoration/dismantling in the future, discounted
di masa depan, didiskontokan dengan menggunakan using a pre-tax rate that reflects current market rate
tarif sebelum pajak yang mencerminkan harga pasar for the time value of money and appropriate, certain
saat ini untuk nilai waktu dari uang yang sesuai risks of liability. Further details are disclosed in
dengan risiko tertentu dari kewajiban. Penjelasan Note 27.
lebih rinci diungkapkan dalam Catatan 27.
Penurunan nilai goodwil Impairment of goodwill
Menentukan apakah suatu goodwill turun nilainya Determining whether goodwill is impaired requires
mengharuskan estimasi nilai pakai unit penghasil kas an estimation of the value in use of the cash-
dimana goodwill dialokasikan. Perhitungan generating units to which goodwill has been
nilai pakai mengharuskan manajemen untuk allocated. The value in use calculation requires the
mengestimasi arus kas masa depan yang diharapkan management to estimate the future cash flows
timbul dari unit penghasil kas yang menggunakan expected to arise from the cash-generating unit
tingkat pertumbuhan yang tepat dan tingkat diskonto using an appropriate growth rate and a suitable
yang sesuai untuk perhitungan nilai kini. discount rate in order to calculate present value.
Manajemen berkeyakinan bahwa tidak diperlukan Management believes that there is no impairment
pencatatan kerugian penurunan nilai pada tanggal 31 loss required as of December 31, 2016 and 2015.
Desember 2016 dan 2015.
Annual Report 2016

467
5. KAS DAN SETARA KAS 5. CASH AND CASH EQUIVALENTS
2016 2015
Kas 9.754.581 2.782.678 Cash on hand
Bank 1.186.581.229 548.772.755 Cash in banks
Deposito berjangka dan call deposits 1.655.643.121 3.437.932.459 Time and call deposits
Subjumlah 2.851.978.931 3.989.487.892 Subtotal
Dikurangi: Less:
Investasi jangka pendek: Short-term investments:
Deposito dengan jatuh tempo lebih dari Time deposits w ith maturities
tiga bulan of more than three months
Rupiah: Rupiah:
Pihak ketiga: Third parties:
PT Bank Muamalat Tbk 1.250.000 - PT Bank Muamalat Tbk
PT Bank Central Asia Tbk 500.000 - PT Bank Central Asia Tbk
Subjumlah 1.750.000 - Subtotal
Pihak berelasi : Related parties :
PT Bank Rakyat Indonesia PT Bank Rakyat Indonesia
(Persero) Tbk 1.800.000 - (Persero) Tbk
Subjumlah (Catatan 6) 3.550.000 - Subtotal (Note 6)
dibatasi penggunaannya equivalents
Rupiah: Rupiah:
PT Bank Jateng 4.148.560 - PT Bank Jateng
Pihak berelasi: Related parties:
PT Bank Mandiri (Persero) Tbk 5.011.407 6.805.414 PT Bank Mandiri (Persero) Tbk
PT Bank Negara Indonesia PT Bank Negara Indonesia
(Persero) Tbk 4.083.315 15.698.373 (Persero) Tbk
(Persero) Tbk 741.278 - (Persero) Tbk
Subjumlah = 9.836.000 22.503.787 Subtotal
Subjumlah 13.984.560 22.503.787 Subtotal
Dolar Amerika Serikat: United States Dollar:
PT Bank Mandiri (Persero) Tbk - 2.965.925 PT Bank Mandiri (Persero) Tbk
Jumlah 2.834.444.371 3.964.018.180 Total
Kas di bank yang dibatasi penggunaannya pada Restricted cash in bank PT Bank Jateng of
PT Bank Jateng sebesar Rp4.148.560 merupakan Rp4,148,560 represents the Company’s fund placed
dana Perseroan yang ditempatkan sebagai jaminan as a guarantee for land reclamation in Rembang as
reklamasi tanah di Rembang pada tanggal of December 31, 2016.
31 Desember 2016.
Kas di bank yang dibatasi penggunaannya pada Restricted cash in bank PT Bank Negara Indonesia
PT Bank Negara Indonesia (Persero) Tbk terdiri atas: (Persero) Tbk consists of:
a. Rekening bank entitas anak (SP) sebesar a. A subsidiary (SP)’s cash in bank of
Rp4.044.533 pada tanggal 31 Desember 2016 Rp4,044,533 as of December 31, 2016
(31 Desember 2015: Rp15.490.360) merupakan (December 31, 2015: Rp15,490,360)
jaminan atas fasilitas pinjaman dari BNI milik represents the collateral required in relation to
Grup (Catatan 20). the Group’s credit facility (Note 20).



b. Rekening bank entitas anak (UTSG) sebesar c. b. A subsidiary (UTSG)’s cash in bank of
Rp38.782 pada tanggal 31 Desember 2016 Rp38,782 as of December 31, 2016,
(31 Desember 2015: Rp208.013) merupakan (December 31, 2015: Rp208,013) represents
dana yang ditempatkan sebagai jaminan bank the fund placed as a bank guarantee for
garansi Trase Toll Batang Semarang dan Trase Toll Batang Semarang and reclamation of
reklamasi ESDM Rembang. ESDM Rembang.
Kas dan setara kas yang dibatasi penggunaannya Restricted cash and cash equivalents in PT Bank
pada PT Bank Rakyat Indonesia (Persero) Tbk Rakyat Indonesia (Persero) Tbk amounting to
sebesar Rp741.278 pada 31 Desember 2016 Rp741,278 as of December 31, 2016 are used for
digunakan untuk kebutuhan SP yang didanai dengan operational needs of SP, which were funded by
menggunakan fasilitas Letter of Credit (LC). Letter of Credit facility (LC).
Kas di bank yang dibatasi penggunaannya pada Restricted cash in bank PT Bank Mandiri (Persero)
PT Bank Mandiri (Persero) Tbk terdiri atas: Tbk consists of:
a. Rekening bank entitas anak (SP) sebesar b. a. A subsidiary (SP)’s cash in bank of
Rp4.895.663 pada tanggal 31 Desember 2016 Rp4,895,663 as of December 31, 2016,
(31 Desember 2015: Rp6.086.741) merupakan (December 31, 2015: Rp6,086,741) represents
dana yang ditempatkan dalam rangka the fund placed in relation to the construction of
pembangunan proyek Indarung VI. Indarung VI.
b. Rekening penampungan milik entitas anak (ST) b. The escrow accounts of subsidiary (ST)’s
sebesar Rp115.744 pada tanggal 31 Desember amounting Rp115,744 as of December 31,
2016 (31 Desember 2015: Rp18.673) 2016, (December 31, 2015: Rp18,673) is in
sehubungan dengan pendanaan pembangunan relation to the financing of supporting facility for
fasilitas pendukung Tonasa V dan pembangkit Tonasa V cement plant and the power plant
tenaga listrik berdasarkan perjanjian kredit under the provision of the syndicated loan
sindikasi. agreement.
c. Rekening bank entitas anak (UTSG) sebesar c. A subsidiary (UTSG)’s cash in bank of
Rp700.000 dan USD215.000 atau setara dengan Rp700,000 and USD215,000 or equivalent to
Rp2.965.925 sampai dengan 31 Desember 2015 Rp2,965,925 as of December 31, 2015
merupakan dana yang ditempatkan sebagai represents the fund placed as a bank guarantee
jaminan bank garansi trase Toll Batang for Trase Toll Batang Semarang.
Semarang.
a. Kas a. Cash on hand
2016 2015
Rupiah 9.471.720 2.703.622 Rupiah

Dong Vietnam 273.277 69.265 Vietnamese Dong
Dolar Amerika Serikat 9.584 9.791 United States Dollars
Jumlah 9.754.581 2.782.678 Total
b.
Annual Report 2016

469
b. Bank b.b. Cash in banks
2016 2015
Rupiah: Rupiah:
PT Bank Central Asia Tbk 44.566.304 5.279.578 PT Bank Central Asia Tbk
PT Bank CIMB Niaga Tbk 28.299.987 2.967.129 PT Bank CIMB Niaga Tbk
PT Bank Nagari 16.174.371 3.825.299 PT Bank Nagari
PT BPD Jabar & Banten 9.577.974 - PT BPD Jabar & Banten
PT Bank Bukopin Tbk 9.094.544 4.450.920 PT Bank Bukopin Tbk
PT Bank Panin 7.352.010 7.144.873 PT Bank Panin
PT Bank Permata Tbk 3.303.865 5.277.267 PT Bank Permata Tbk
PT Bank DBS Indonesia 3.108.536 - PT Bank DBS Indonesia
PT Bank Muamalat Tbk 2.092.586 86.925 PT Bank Muamalat Tbk
PT BPD Jatim Tbk 969.008 482.051 PT BPD Jatim Tbk
PT Bank Sulselbar 592.291 885.124 PT Bank Sulselbar
PT Bank ICBC Indonesia 125.390 - PT Bank ICBC Indonesia
Deutsche Bank, Surabaya 123.872 124.103 Deutsche Bank, Surabaya
PT Bank UOB Indonesia 60.368 96.284 PT Bank UOB Indonesia
Citibank, Surabaya 7.149 7.221 Citibank, Surabaya
PT Bank Danamon PT Bank Danamon
Indonesia Tbk 6.531 7.254 Indonesia Tbk
Standard Chartered Bank 545 1.553.584 Standard Chartered Bank
PT Bank DKI 542 - PT Bank DKI
PT Bank Tabungan Pensiunan PT Bank Tabungan Pensiunan
Nasional Tbk - 251.713 Nasional Tbk
PT Bank Tabungan Negara PT Bank Tabungan Negara
PT Bank Syariah Mandiri 2.406.824 771.545 PT Bank Syariah Mandiri
Jumlah 928.159.834 347.027.651 Total
(Dilanjutkan) (Forward)

- 54 -


2016 2015
Dolar Amerika Serikat: United States Dollars:
Standard Chartered Bank 106.648.862 52.039.164 Standard Chartered Bank
PT Bank CIMB Niaga Tbk 3.592.531 175.425 PT Bank CIMB Niaga Tbk
Vietnam Prosperity Joint Stock Vietnam Prosperity Joint Stock
Commercial Bank 1.153.053 631.842 Commercial Bank
Citibank 636.705 653.791 Citibank
Ho Chi Minh City Development Ho Chi Minh City Development
Joint-Stock Commercial Bank 549.655 205.154 Joint-Stock Commercial Bank
PT Bank Bukopin Tbk 432.872 285.744 PT Bank Bukopin Tbk
An Binh Bank 10.490 5.437 An Binh Bank
PT BPD Jatim Tbk 4.904 - PT BPD Jatim Tbk
Bank for Investment and Bank for Investment and
Development of Vietnam - 5.476 Development of Vietnam
Lain-lain 9.027 9.337 Others
(Persero) Tbk 97.033 1.697.155 (Persero) Tbk
Jumlah 190.334.528 144.311.476 Total
Euro: Euro:
PT Bank CIMB Niaga Tbk 2.416.875 390.943 PT Bank CIMB Niaga Tbk
Vietnam Prosperity Joint-Stock Vietnam Prosperity Joint-Stock
Commercial Bank 34.796 50 Commercial Bank
Vietnam Maritime Commercial Vietnam Maritime Commercial
Joint Stock Bank 1.851 - Joint Stock Bank
Development of Vietnam 182 1.939 Development of Vietnam
Vietnam Technological and Vietnam Technological and
Commercial Bank 13 194.413 Commercial Bank
Standard Chartered Bank - 4.668.021 Standard Chartered Bank
(Persero) Tbk 124.006 11.385.274 (Persero) Tbk
Jumlah 50.549.873 45.404.871 Total
- 55 -
Annual Report 2016
471
2016 2015
Dolar Singapura: Singapore Dollars:
PT Bank Mandiri (Persero) Tbk 134.154 131.357 PT Bank Mandiri (Persero) Tbk
Dong Vietnam: Vietnamese Dong:

Vietnam Bank for Agriculture Vietnam Bank for Agriculture
and Rural Development 6.325.863 3.858.931 and Rural Development
Ho Chi Minh City Development Ho Chi Minh City Development
Joint-Stock Commercial Bank 5.748.014 543.734 Joint-Stock Commercial Bank
Standard Chartered Bank 1.860.185 4.035.536 Standard Chartered Bank
Á Châu Bank 1.713.770 1.205.284 Á Châu Bank
Vietnam Prosperity Joint Stock Vietnam Prosperity Joint Stock
Commercial Bank 1.420.832 1.812.780 Commercial Bank
Development of Vietnam 141.495 51.752 Development of Vietnam
JSC Bank for Foreign Trade JSC Bank for Foreign Trade
of Vietnam 33.148 116.514 of Vietnam
Vietnam Joint Stock Commercial Vietnam Joint Stock Commercial
Bank for Industry and Trade 11.684 8.562 Bank for Industry and Trade
United Overseas Bank 10.456 - United Overseas Bank
Technological and Commercial Technological and Commercial
Joint Stock Bank 51 36.038 Joint Stock Bank
Vietnam Maritime Commercial Vietnam Maritime Commercial
Joint Stock Bank - 30.266 Joint Stock Bank
Orient Commercial Joint Stock Orient Commercial Joint Stock
Bank - 10.848 Bank
Jumlah 1.186.581.229 548.772.755 Total

- 56 -


c. Deposito berjangka dan call deposits c. Time and call deposits
2016 2015
Rupiah: Rupiah:
PT Bank Muamalat Tbk 108.879.466 64.000.000 PT Bank Muamalat Tbk
PT BPD Jaw a Barat PT BPD Jaw a Barat
dan Banten Tbk 102.000.000 75.000.000 dan Banten Tbk
PT Bank Nagari 75.000.000 105.000.000 PT Bank Nagari
PT Bank Panin Tbk 67.000.000 72.000.000 PT Bank Panin Tbk
PT Bank Permata Tbk 31.200.000 48.000.000 PT Bank Permata Tbk
PT Bank Internasional PT Bank Internasional
Indonesia Tbk - 40.000.000 Indonesia Tbk
PT Bank Sulselbar 15.000.000 7.000.000 PT Bank Sulselbar
PT Bank Tabungan Pensiunan PT Bank Tabungan Pensiunan
Nasional Tbk 11.479.988 45.000.000 Nasional Tbk
PT Bank Himpunan PT Bank Himpunan
Saudara 1906 Tbk 9.000.000 9.000.000 Saudara 1906 Tbk
PT Bank Syariah Mega Indonesia 5.000.000 - PT Bank Syariah Mega Indonesia
PT Bank Jateng 4.148.560 - PT Bank Jateng
PT Bank Danamon Indonesia Tbk - 342.000.000 PT Bank Danamon Indonesia Tbk
PT Bank Mega Tbk - 269.000.000 PT Bank Mega Tbk
PT Bank Central Asia Tbk 500.000 13.000.000 PT Bank Central Asia Tbk
Subjumlah 655.508.014 1.965.550.000 Subtotal
Jumlah 1.618.929.014 3.355.138.912 Total
Dolar Amerika Serikat: United States Dollars:
Pihak ketiga Third parties:
PT Bank Mandiri (Persero) Tbk 1.082 2.965.924 PT Bank Mandiri (Persero) Tbk
Jumlah 36.714.107 31.693.142 Total
Dong Vietnam: Vietnamese Dong:
Vietnam Prosperity Joint-Stock Vietnam Prosperity Joint-Stock
Commercial Bank (VP) - 51.100.405 Commercial Bank (VP)
Jumlah 1.655.643.121 3.437.932.459 Total
Suku bunga tahunan atas deposito berjangka dan call Annual interest rates on time and call deposits are
deposits adalah sebagai berikut: as follows:
2016 2015
Rupiah 4,00% - 10,50% 4,25% - 10,75% Rupiah
Dolar Amerika Serikat 0,50% - 1,50% 0,50% - 1,50% United States Dollars
Dong Vietnam - 0,55% Vietnamese Dong
Rincian transaksi dan saldo dengan pihak berelasi Details of related party transactions and balances
diungkapkan dalam Catatan 42. are disclosed in Note 42.
- 57 -
Annual Report 2016
473
6. INVESTASI JANGKA PENDEK 6. SHORT-TERM INVESTMENTS

2016 2015
Kepemilikan saham dibaw ah 20% Share ow nership less than 20%
PT Sw abina Gatra 6.189.831 - PT Sw abina Gatra
PT Eternit Gresik 1.861.173 1.861.173 PT Eternit Gresik
PT Megah Sejahtera Bersama 1.259.620 - PT Megah Sejahtera Bersama
PT Sumatera Utara Perkasa Semen 402.000 402.000 PT Sumatera Utara Perkasa Semen
Deposito dengan jatuh tempo Time deposits w ith maturities
lebih dari tiga bulan (Catatan 5) 3.550.000 - of more than three months (Note 5)
Jumlah 13.262.624 2.263.173 Total
Untuk tujuan pengelompokkan instrumen keuangan, For the purpose of financial instrument classification,
investasi saham kurang dari 20% dikelompokkan investment in shares less than 20% of are classified
sebagai investasi AFS. as AFS investment.
7. PIUTANG USAHA 7. TRADE RECEIVABLES
2016 2015
Rupiah 3.253.008.382 2.705.018.518 Rupiah
Dong Vietnam 33.919.352 38.583.431 Vietnamese Dong
Dolar Amerika Serikat 22.123.403 34.562.386 United States Dollars
3.309.051.137 2.778.164.335
Dikurangi: Less:
Cadangan penurunan nilai (109.333.448) (61.893.997) Allow ance for impairment losses
3.199.717.689 2.716.270.338
Rupiah 648.268.837 835.736.154 Rupiah
660.723.145 848.669.315
Dikurangi: Less:
638.200.521 827.569.631
Jumlah 3.837.918.210 3.543.839.969 Total
Sebelum menerima pelanggan baru, Grup Before accepting new customer, the Group uses an
menggunakan sistem penilaian secara internal untuk internal assessment system to assess the potential
menilai potensi pelanggan. Untuk selanjutnya customer. In addition further restrictions attributable
batasan yang diatribusikan kepada pelanggan to the customer are evaluated at least 2 times a year.
ditinjau minimal 2 kali setahun.



Rincian pelanggan dengan nilai piutang melebihi 5% The details of the customer with the value of
dari jumlah saldo piutang usaha adalah sebagai receivables that exceeds 5% of the total trade
berikut: receivable balance are as follows:
2016 2015
Persentase dari Persentase dari

Saldo piutang usaha/ total piutang usaha/ Saldo piutang usaha/ total piutang usaha/
Trade receivable As a percentage of Trade receivable As a percentage of
Pelanggan/Customer balance trade receivable balance balance trade receivable balance
Koperasi Warga Semen Gresik 249.822.267 6,51% 258.552.693 7,30%

PT Varia Usaha - - 281.776.575 7,95%
Umur piutang usaha bersih adalah sebagai berikut: The aging of net trade receivables is as follows:
2016 2015
Lancar 2.500.895.876 2.898.661.338 Current

Lew at jatuh tempo: Overdue:
1 - 45 hari 737.460.417 310.057.398 1 - 45 days
46 - 135 hari 296.886.520 237.473.786 46 - 135 days
136 - 365 hari 214.451.073 79.769.602 136 - 365 days
Lebih dari 365 hari 88.224.324 17.877.845 Over 365 days
Jumlah 3.837.918.210 3.543.839.969 Total
Piutang usaha yang diungkapkan di atas termasuk Trade receivables disclosed above include amounts
jumlah yang telah jatuh tempo pada akhir periode that are past due at the end of the reporting period
pelaporan dimana Grup tidak mengakui cadangan for which the Group has not recognized an
kerugian penurunan nilai piutang karena belum ada allowance for impairment losses because there has
perubahan yang signifikan dalam kualitas kredit dan not been a significant change in credit quality and
jumlah piutang masih dapat dipulihkan. the amounts are still considered recoverable.
Mutasi cadangan kerugian penurunan nilai piutang The movement in the allowance for impairment
adalah sebagai berikut: losses on trade receivables is as follows:
2016 2015
Saldo aw al 82.993.681 72.540.759 Beginning balance
Akuisisi entitas anak 34.053.888 - Aqcuisition of subsidiary
Penambahan (Catatan 35) 14.808.503 10.452.922 Additions (Note 35)
Saldo akhir 131.856.072 82.993.681 Ending balance
Dalam menentukan pemulihan dari piutang usaha, In determining the recoverability of a trade
Grup mempertimbangkan setiap perubahan dalam receivable, the Group considers any change in the
kualitas kredit dari piutang usaha dari tanggal awal credit quality of the trade receivable from the date
kredit diberikan sampai dengan akhir periode credit was initially granted up to the end of the
pelaporan. Konsentrasi risiko kredit terbatas karena reporting period. The concentration of credit risk is
basis pelanggan adalah besar dan tidak saling limited as the customer base is large and unrelated.
berhubungan.
Annual Report 2016

475
Berikut ini merupakan umur piutang usaha yang Age of impaired trade receivables are as follows:
diturunkan nilainya:
2016 2015
1 - 45 hari 4.998 3.855.907 1 - 45 days
46 - 135 hari 4.475.959 1.630.797 46 - 135 days
136 - 365 hari 2.578.525 1.030.234 136 - 365 days
Jumlah 131.856.072 82.993.681 Total
Berdasarkan hasil kajian keadaan piutang masing- Based on a review of the status of the individual
masing pelanggan pada akhir periode pelaporan, receivable accounts at end of reporting period, the
manajemen Grup berkeyakinan bahwa cadangan management of the Group believes that the
penurunan nilai telah memadai untuk menutup allowance for impairment losses is adequate to
kemungkinan kerugian atas tidak tertagihnya piutang cover possible losses from uncollectible receivables.
usaha.
Pada tanggal 31 Desember 2016 dan 2015, sebesar As of December 31, 2016 and 2015, 77% and 92% of
77% dan 92% piutang usaha dengan nilai masing- trade receivables with total value amounting to
masing sebesar Rp2.962.845.686 dan Rp2,962,845,686 and Rp3,253,602,809, respectively
Rp3.253.602.809 dijamin dengan jaminan berupa are collateralized by bank guarantees, time deposits,
bank garansi, deposito berjangka, asuransi kredit, credit insurance, and tangible assets (land, buildings
dan harta berwujud (tanah, bangunan dan kendaraan and vehicles) by the customers.
bermotor) oleh pelanggan.
Manajemen berpendapat bahwa piutang usaha yang Management believes that trade receivables that are
belum jatuh tempo dan tidak diturunkan nilainya neither past due nor impaired have good credit
memiliki kualitas kredit yang baik. quality.
Piutang usaha tertentu digunakan sebagai jaminan Certain trade receivables are used as collateral for
atas fasilitas pinjaman non-cash dan fasilitas kredit non-cash loan facilities and credit investment
investasi (Catatan 20). facilities (Note 20).
8. PIUTANG LAIN-LAIN 8. OTHER RECEIVABLES

2016 2015
Pihak ketiga 164.842.805 60.329.377 Third parties
Dikurangi: Less:
154.747.650 56.818.134
Pihak berelasi 26.527.060 29.251.976 Related parties

Dikurangi: Less:
Cadangan penurunan nilai (909.208) (1.269.578) Allow ance for impairment losses
25.617.852 27.982.398
Jumlah 180.365.502 84.800.532 Total



Mutasi cadangan penurunan nilai piutang lain-lain The movements in the allowance for impairment
adalah sebagai berikut: losses of other receivables is as follows:
2016 2015
Penambahan (Catatan 35) 6.223.542 - Additions (Note 35)
Pengurangan - (6.615.026) Reversal
Berdasarkan hasil kajian keadaan akun piutang lain- Based on a review of the status of the individual
lain setiap debitur pada akhir periode pelaporan, other receivable accounts at the end of reporting
manajemen Grup berkeyakinan bahwa cadangan period, management of the Group believes that the
penurunan nilai telah memadai untuk menutup allowance for impairment losses is adequate to
kemungkinan kerugian atas tidak tertagihnya piutang cover possible losses from uncollectible other
lain-lain. receivables.
Piutang lain-lain pihak berelasi adalah berkaitan Other receivables with related parties are pertaining
dengan persewaan tanah dan bangunan kepada to land and building rental to related parties and
pihak berelasi dan jasa lainnya. Akun tersebut tidak other services. These accounts are not subject to
dikenakan bunga dan jatuh tempo dalam 1 tahun. interest and due within 1 year
9. PERSEDIAAN – BERSIH 9. INVENTORIES - NET
2016 2015
Barang jadi 362.605.852 274.749.045 Finished goods
Barang dalam proses 520.903.760 400.894.282 Work in process
Bahan baku dan penolong 751.868.356 776.043.288 Raw and indirect materials
Suku cadang 1.088.080.920 1.027.539.702 Spare parts
Barang dalam perjalanan 64.337.988 36.308.556 Goods in transit
2.787.796.876 2.515.534.873
Dikurangi: Less:
Cadangan persediaan usang Allow ance for obsolete
dan bergerak lambat (116.652.359) (106.560.801) and slow moving inventories
Jumlah 2.671.144.517 2.408.974.072 Total
Manajemen Grup berkeyakinan bahwa cadangan The management of the Group believes that the
persediaan usang dan bergerak lambat telah allowance for obsolete and slow moving inventories
mencukupi untuk menutup kemungkinan kerugian is adequate to cover possible losses from obsolete
yang timbul dari persediaan usang dan bergerak and slow moving inventories.
lambat.
Mutasi cadangan persediaan usang dan bergerak The movement in the allowance for obsolete and
lambat adalah sebagai berikut: slow moving inventories is as follows:
2016 2015

Akuisisi entitas anak 1.563.329 - Acquisition of subsidiaries
Penambahan 8.528.229 11.055.212 Additions
Pada tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, certain
persediaan tertentu dijadikan jaminan atas pinjaman inventories are pledged as collateral for borrowings
tertentu (Catatan 20). (Note 20).
Annual Report 2016

477
Pada tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, inventories of
persediaan Grup telah diasuransikan terhadap risiko the Group are covered by insurance against the risk
kerugian yang disebabkan oleh bencana alam, of loss due to natural disaster, fire, and other risks
kebakaran, dan risiko kerugian lainnya dengan nilai with a total coverage of Rp1,423,822,822 and
pertanggungan masing-masing sebesar Rp1,468,943,965, respectively.
Rp1.423.822.822 dan Rp1.468.943.965.
Menurut pendapat manajemen Grup, nilai The management of the Group believes that the
pertanggungan asuransi tersebut telah memadai insurance coverage is adequate to cover possible
untuk menutupi kerugian yang mungkin timbul dari losses arising from such risks.
risiko-risiko tersebut.
10. UANG MUKA 10. ADVANCES

2016 2015
Pembelian: Purchases
Lokal 60.295.826 35.305.921 Domestic
Impor 20.557.306 26.079.698 Imports
Dinas operasional 47.741.960 19.147.976 Operational
Lain-lain (di baw ah Rp10.000.000) 16.349.305 8.213.543 Others (each below Rp10,000,000)
Jumlah 144.944.397 88.747.138 Total
11. BEBAN DIBAYAR DI MUKA 11. PREPAID EXPENSES

2016 2015
Asuransi 12.825.365 12.488.275 Insurance

Sew a 33.541.455 10.157.746 Rent
Jumlah 74.384.913 38.530.615 Total
12. PAJAK DIBAYAR DI MUKA 12. PREPAID TAXES

2016 2015
Perseroan The Com pany
Pajak Penghasilan Badan Corporate Income Tax
(Catatan 39): (Note 39):
2016 146.900.890 - 2016
2015 34.091.982 - 2015
Entitas anak Subsidiaries

Pajak Penghasilan Badan 100.123.904 55.429.890 Corporate Income Tax
Pajak Pertambahan Nilai 312.883.782 326.542.785 Value Added Tax
Lain-lain (di baw ah Rp1.000.000) 222.305 87.844 Others (each below Rp1,000,000)

Jumlah 594.222.863 382.060.519 Total



13. INVESTASI PADA ENTITAS ASOSIASI 13. INVESTMENT IN ASSOCIATES

Persentase kepemilikan dan
hak suara yang dimiliki Grup/
Percentage of ownership
Tempat interest and voting power Nilai investasi/
Nama entitas asosiasi/ Aktivitas utama/ kedudukan/ held by the Group Investment amount
Name of associates Principal activity Domicile 2016 2015 2016 2015
PT Swadaya Graha Kontraktor dan persewaan alat-alat berat/ Gresik 33.06% 25,00% 93.306.644 32.277.419
Contractor and lessor of heavy equipment
PT Varia Usaha Jasa distribusi dan pengangkutan/ Gresik - 24,95% - 136.090.233
Distribution and transportation services
PT Varia Usaha Beton Produksi beton siap pakai/ Sidoarjo - 36,67% - 55.000.000
Ready mix concrete production
PT Igasar Distribusi semen/Cement distribution Padang 12,00% 12,00% 677.999 584.587
Jumlah / Total 93.984.643 223.952.239
Seluruh entitas asosiasi dicatat dengan All of the above associates are accounted for using
menggunakan metode ekuitas dalam laporan the equity method in these consolidated financial
keuangan konsolidasian ini. statements.
Persentase kepemilikan entitas anak (SP) pada The percentage ownership of the subsidiary (SP) in
PT Igasar kurang dari 20% namun kepemilikan PT Igasar is less than 20%, but such ownership is
tersebut diklasifikasi sebagai investasi pada entitas classified as investments in associate as SP has
asosiasi karena SP mempunyai pengaruh signifikan significant influence on PT Igasar through Koperasi
pada PT Igasar melalui Koperasi Keluarga Besar Keluarga Besar Semen Padang.
Semen Padang.
Sebagaimana dijelaskan pada Catatan 1b dan 48, As disclosed in Notes 1b and 48, as of June 30,
pada tanggal 30 Juni 2016 VUB menjadi entitas anak 2016, VUB became a subsidiary of SIB.
dari SIB.
Sejak 1 Nopember 2016, VU menjadi entitas anak Since November 1, 2016, VU became subsidiary of
Perseroan. Perseroan menambah kepemilikan pada the Company. The Company increased its
PT Swadaya Graha (SWG) menjadi 33,06% melalui ownership on PT Swadaya Graha (SWG) to
akuisisi VU yang dilakukan oleh Perseroan (Catatan become 33.06% through acquisition of VU (Notes 1
1 dan 48). and 48).
Ringkasan informasi keuangan entitas asosiasi The summarized financial information below
dibawah ini merupakan jumlah yang disajikan dalam represents amounts shown in the associates’
laporan keuangan entitas asosiasi yang disusun financial statements prepared in accordance
sesuai dengan Standar Akuntansi Keuangan Indonesian Financial Accounting Standards.
Indonesia.
PT Swadaya Graha PT Varia Usaha PT Varia Usaha Beton PT Igasar
2016 2015 2016 2015 2016 2015 2016 2015
Rp Rp Rp Rp Rp Rp Rp Rp
Aset Lancar 608.405.605 527.568.391 - 1.088.653.036 - 350.565.773 83.453.086 94.093.926 Current assets
Aset tidak lancar 121.382.940 59.360.068 - 642.073.426 - 121.240.578 27.355.102 29.801.698 Non-current assets
Jumlah Aset 729.788.545 586.928.459 - 1.730.726.462 - 471.806.351 110.808.188 123.895.624 Total Assets
Liabilitas Jangka Pendek 484.109.551 405.541.844 - 992.606.820 - 335.528.270 85.498.583 99.259.691 Current liabilities
Liabilitas Jangka Panjang 73.428.169 69.952.124 - 179.219.537 - 57.465.083 19.659.612 23.396.717 Non-current liabilities
Ekuitas yang dapat diatribusikan Equity attributable to owners
kepada pemilik entitas induk 172.250.825 111.434.491 - 529.282.817 - 78.812.998 5.649.993 1.239.216 of the Company
Kepentingan nonpengendali - - - 29.617.288 - - - - Non-controlling interest
Jumlah liabilitas dan ekuitas 729.788.545 586.928.459 - 1.730.726.462 - 471.806.351 110.808.188 123.895.624 Total Liaibities and Equity
Pendapatan 1.007.325.833 1.053.035.734 3.833.607.104 4.936.417.299 - 779.557.942 414.382.086 445.194.748 Revenue

Beban (998.523.569) (1.024.898.088) (3.751.496.370) (4.817.776.701) - (765.969.047) (408.833.536) (444.614.856) Expenses
Laba (rugi) tahun berjalan 8.802.264 28.137.646 82.110.734 118.640.598 - 13.588.895 5.548.550 579.892 Profit (loss) for the year
Laba (rugi) yang dapat diatribusikan

kepada: Profit (loss) attributable to
Pemilik entitas Induk 8.802.264 28.137.646 (5.609.297) 113.474.740 - 13.588.895 5.548.550 579.892 Owners of the Company
Kepentingan non-pengendali - - (653.128) 5.165.858 - - - Non-controlling interests
Laba (rugi) tahun berjalan 8.802.264 28.137.646 (6.262.425) 118.640.598 - 13.588.895 5.548.550 579.892 Profit (loss) for the year
Penghasilan komprehensif lain yang Other comprehensive income

dapat diatribusikan kepada attributable to
Pemilik entitas Induk 60.455.363 (1.335.574) 77.148.270 (3.051.591) - (350.095) - - Owners of the Company
Kepentingan non-pengendali - - (1.299.961) (130.689) - - - - Non-controlling interests
Jumlah penghasilan komprehensif lain 60.455.363 (1.335.574) 75.848.309 (3.182.280) - (350.095) - - Total other comprehensive income
tahun berjalan for the year
Jumlah laba komprehensif yang Total comprehensive income

dapat diatribusikan kepada attributable to
Pemilik entitas Induk 69.257.627 26.802.072 - 100.639.948 - 13.238.800 5.548.550 579.892 Owners of the Company
Kepentingan non-pengendali - - - 4.548.876 - - - - Non-controlling interests
Jumlah laba konmprehensif tahun berjalan 69.257.627 26.802.072 - 105.188.824 - 13.238.800 5.548.550 - Total comprehensive income
for the year
Annual Report 2016

479
Berikut ini merupakan rekonsiliasi dari ringkasan Reconciliation of the above summarized financial
informasi keuangan di atas terhadap jumlah tercatat information to the carrying amount of interest in the
dari bagian entitas asosiasi yang diakui dalam associates recognized in the consolidated financial
laporan keuangan konsolidasian: statements are as follows:
PT Swadya Graha PT Varia Usaha PT Varia Usaha Beton PT Igasar

2016 2015 2016 2015 2016 2015 2016 2015
Aset bersih entitas asosiasi 172.250.825 111.434.491 - 529.282.817 - 78.812.998 5.649.993 1.239.216 Net assets of the associate
Proporsi bagian kepemilikan Proportion of the Group's
Grup 33,06% 25,00% - 24,95% - 36,67% 12,00% 12,00% ownerships interest
Ekuitas yang diatribusikan
ke Grup 56.946.123 27.858.623 - 132.056.063 - 28.900.726 677.999 148.706 Equity attributable to Group
Goodwill - - - - - 1.328.371 - - Goodwill
Penyesuaian nilai wajar Fair value adjustment of
aset tetap - - - - - 24.770.903 - - fixed assets
Penyesuaian nilai wajar Fair value adjustments
dari akuisisi VU 30.517.106 - - - - - - - arising from acquisition of VU
Penyesuaian 5.843.415 4.418.796 - 4.034.170 - - - 435.881 Adjustments
Nilai tercatat Carrying amount

bagian Grup 93.306.644 32.277.419 - 136.090.233 - 55.000.000 677.999 584.587 of the Group's interest
Nilai aset bersih

Saldo dialihkan (dari)/ke Saldo
31 Desem ber Bagian perusahaan asosiasi, 31 Desem ber
2015/ laba (rugi) Pelepasan dan lain-lain/ 2016/ Persentase
Balance at bersih/ Net asset transfer Balance at kepem ilikan/
December 31, Akuisisi/ Equity in net Dividen/ (from)/to associates, December 31, Percentage of
Nam a entitas asosiasi 2015 Acquisition profit (loss) Dividends disposals and others 2016 ownership Nam e of associates
Perseroan The Company

PT Sw adaya Graha 32.277.419 - 17.314.407 (2.110.369) 45.825.187 93.306.644 33,06% PT Sw adaya Graha
PT Varia Usaha 136.090.233 - 19.248.493 (11.327.748) (144.010.978) - - PT Varia Usaha
PT Varia Usaha Beton 55.000.000 - - (1.744.067) (53.255.933) - - PT Varia Usaha Beton
Entitas anak (SP) - Subsidiary (SP)
PT Igasar 584.587 - 665.826 (572.414) - 677.999 12,00% PT Igasar
223.952.239 - 37.228.726 (15.754.598) (151.441.724) 93.984.643
Saldo Saldo
1 Januari Bagian 31 Desember
2015/ laba (rugi) 2015/ Persentase
Balance at bersih/ Balance at kepemilikan/
January 1, Akuisisi/ Equity in net Dividen/ December 31, Percentage of
Nama entitas asosiasi 2015 Acquisition profit (loss) Dividends 2015 ownership Name of associates

PT Swaday a Graha 27.546.584 - 6.700.565 (1.969.730) 32.277.419 25,00% PT Swaday a Graha
PT Varia Usaha 118.918.624 - 27.550.575 (10.378.966) 136.090.233 24,95% PT Varia Usaha
PT Varia Usaha Beton - 55.000.000 - - 55.000.000 36,67% PT Varia Usaha Beton
Entitas anak (SP) Subsidiary (SP)
PT Igasar 515.000 - 69.587 - 584.587 12,00% PT Igasar
146.980.208 55.000.000 34.320.727 (12.348.696) 223.952.239
14. PROPERTI INVESTASI 14. INVESTMENT PROPERTIES
1 Januari/ 31 Desem ber/

January 1, Penam bahan/ Pengurangan/ Reklasifikasi/ December 31,
2016 Additions Deductions Reclassifications 2016
Biaya perolehan Acquisition cost
Tanah 3.843.234 - - - 3.843.234 Land
Bangunan dan prasarana 230.371.288 725.000 - - 231.096.288 Buildings and infrastructure
Jumlah 234.214.522 725.000 - - 234.939.522 Total
Akum ulasi penyusutan Accum ulated depreciation

Bangunan dan prasarana 59.091.259 15.154.218 - - 74.245.477 Buildings and infrastructure
Nilai tercatat neto 175.123.263 160.694.045 Net carrying amount

- 64 -


1 Januari/ 31 Desember/
January 1, Penambahan/ Pengurangan/ Reklasifikasi/ December 31,
2015 Additions Deductions Reclassifications 2015
Biaya perolehan Acquisition cost
Tanah 3.944.747 - (101.513) - 3.843.234 Land
Bangunan dan prasarana 223.035.511 1.497.500 (231.723) 6.070.000 230.371.288 Buildings and infrastructure
Jumlah 226.980.258 1.497.500 (333.236) 6.070.000 234.214.522 Total
Akumulasi penyusutan Accumulated depreciation

Bangunan dan prasarana 43.662.412 15.457.813 (28.966) - 59.091.259 Buildings and infrastructure
Nilai tercatat neto 183.317.846 175.123.263 Net carrying amount
Pada tanggal 31 Desember 2016, berdasarkan As of December 31, 2016, based on the internal
valuasi internal dari Manajemen nilai wajar properti valuation carried out by the Management the fair
investasi milik SP adalah sebesar Rp117.307.095. value of SP’s investment properties amounted to
Rp117,307,095.
Pada tanggal 31 Desember 2016, nilai wajar properti As of December 31, 2016, the fair value of KIG’s
investasi milik KIG adalah sebesar Rp423.294.000. investment properties amounted to Rp423,294,000.
Nilai wajar ini berdasarkan laporan penilaian dari This was based on the valuation report carried out
KJPP Samsul Hadi, Wahyono Adi, Hendra Gunawan by KJPP Samsul Hadi, Wahyono Adi, Hendra
dan Rekan tanggal 30 Mei 2016. Gunawan and Partners dated May 30, 2016.
Pendekatan yang digunakan oleh penilai adalah: The approach used by the assessor are:
1. Penilaian tanah menggunakan pendekatan nilai 1. Assessment of land used market value
pasar; approach;
2. Penilaian bangunan menggunakan pendekatan 2. Assessment of buildings used the cost
biaya. approach.
Berdasarkan penilaian internal, nilai wajar properti Based on internal valuation, the fair value of
investasi entitas anak (SP dan KIG) pada tanggal investment properties as of December 31, 2015 of
31 Desember 2015, sebesar Rp456.594.206. the subsidiaries (SP and KIG) amounted to
Rp456,594,206.
Nilai wajar properti diatas didasarkan pada teknik The fair values of investment properties are based
penilaian yang mencakup input untuk aset atau on valuation techniques that include inputs that are
liabilitas yang bukan berdasarkan data pasar yang not based on observable market data (unobservable
dapat diobservasi (input yang tidak dapat inputs), using Level 3 fair value measurements.
diobservasi) menggunakan level 3 pengukuran nilai
wajar.
Beban penyusutan sebesar Rp15.154.218 dan Depreciation expense in 2016 and 2015 amounting
Rp15.457.813 masing-masing untuk tahun 2016 dan to Rp15,154,218 and Rp15,457,813, respectively
2015 dicatat sebagai beban pokok pendapatan. were recorded under cost of revenue.
Penghasilan sewa properti investasi tahun 2016 dan Rental income on investment properties in 2016 and
2015 masing-masing sebesar Rp30.138.959 dan 2015 amounted to Rp30,138,959 and
Rp26.262.539. Rp26,262,539, respectively.
- 65 -
Annual Report 2016
481
15. ASET TETAP 15. FIXED ASSETS
Akuisisi anak
1 Januari/ perusahaan/ Selisih kurs/ 31 December/
January 1, Acquisition of Penambahan/ Pengurangan/ Reklasifikasi/ Foreign December 31,
2016 subsidiaries Additions Deductions Reclassifications exchange 2016
Biaya perolehan: Acquisition cost:
Pemilikan Langsung Direct Ownership

Tanah 228.355.778 152.868.805 7.396.548 (4.410) - - 388.616.721 Land
Tanah pertambangan 191.176.570 2.166.524 401.091.365 - 65.617.470 - 660.051.929 Mining properties
Bangunan, jalan, jembatan Buildings, roads, bridges
dan pelabuhan 7.535.015.673 262.028.055 90.079.027 (4.069.989) 187.966.546 (49.113.741) 8.021.905.571 and harbors
Mesin-mesin 19.684.714.643 95.150.630 194.572.532 (34.125.474) 498.945.203 (90.400.800) 20.348.856.734 Machinery
Alat-alat berat dan Heavy equipment and
kendaraan 1.021.051.927 1.042.630.340 47.513.669 (32.518.544) 23.466.009 (500.668) 2.101.642.733 vehicles
Perlengkapan dan peralatan Furniture and office
kantor 634.551.077 81.147.679 33.786.905 (201.989) 31.559.496 (125.067) 780.718.101 equipment
Aktiva dalam penyelesaian: Construction in progress:
Tanah 712.062.918 - 77.168.498 - (65.617.470) - 723.613.946 Land
dan pelabuhan 979.106.571 22.589.879 1.146.882.043 - (231.541.073) (2.338.502) 1.914.698.918 and harbors
Mesin-mesin 2.536.360.180 496.335 1.857.083.347 - (478.477.202) - 3.915.462.660 Machinery
Alat - alat berat Heavy equipment and
kendaraan 9.565.404 4.774.105 58.044.651 - (19.669.311) - 52.714.849 vehicles
Peralatan 88.571.310 1.491.458 547.822.707 - (12.249.668) - 625.635.807 Equipment
Pabrik semen 2.643.836.627 - 1.408.208.108 - - - 4.052.044.735 Cement plant
36.264.368.678 1.665.343.810 5.869.649.400 (70.920.406) - (142.478.778) 43.585.962.704
Aset sewa pembiayaan Leased Assets
Bangunan 141.135.734 - 80.314.184 - - - 221.449.918 Buildings
kendaraan 209.317.526 4.172.500 437.402.561 (53.534.851) - - 597.357.736 vehicles
kantor 36.150.521 - - - - - 36.150.521 equipment
386.603.781 4.172.500 517.716.745 (53.534.851) - - 854.958.175
36.650.972.459 1.669.516.310 6.387.366.145 (124.455.257) - (142.478.778) 44.440.920.879
Akumulasi penyusutan Accumulated depreciation

dan deplesi: and depletion:
Pemilikan Langsung Direct Ownership

Tanah pertambangan 98.738.990 403.259 3.252.936 - - - 102.395.185 Mining properties
dan pelabuhan 2.204.400.765 33.962.298 250.568.977 (3.791.531) - (13.087.006) 2.472.053.503 and harbours
Mesin-mesin 7.745.741.522 43.138.779 1.107.029.463 (24.493.014) - (43.776.965) 8.827.639.785 Machinery
Alat-alat berat dan Heavy equipment and
kendaraan 798.654.517 491.957.671 93.846.253 (30.443.766) - (70.500) 1.353.944.175 vehicles
kantor 478.497.395 42.310.646 59.463.378 (194.105) - (17.798) 580.059.516 equipment
11.326.033.189 611.772.653 1.514.161.007 (58.922.416) - (56.952.269) 13.336.092.164
Aset sewa pembiayaan Leased Assets
Bangunan 81.728.138 - 34.917.965 - - - 116.646.103 Buildings
kendaraan 60.463.323 434.635 87.606.242 (22.680.793) - - 125.823.407 vehicles
kantor 15.065.099 - 543.899 - - - 15.608.998 equipment
157.256.560 434.635 123.068.106 (22.680.793) - - 258.078.508
11.483.289.749 612.207.288 1.637.229.113 (81.603.209) - (56.952.269) 13.594.170.672
Nilai tercatat neto 25.167.682.710 30.846.750.207 Net carrying amount
Beban penyusutan dan deplesi aset tetap Depreciation and depletion expense of fixed assets
dialokasikan sebagai berikut: were allocated as follows:
2016 2015
Beban pabrikasi 1.564.270.726 1.333.591.265 Manufacturing overhead
Beban penjualan, umum dan Selling, general and administration
administrasi 72.958.387 93.500.782 expenses
Jumlah 1.637.229.113 1.427.092.047 Total
Hak atas tanah Grup berupa Sertifikat Hak Milik The Group’s land represents freehold land (“SHM”)
(“SHM”) dan Sertifikat Hak Guna Bangunan and land-use rights (“SHGB”). The SHGB will expire
(“SHGB”). SHGB memiliki masa berlaku antara tahun between 2017 until 2044. Management believes that
2017 hingga 2044. Manajemen berpendapat bahwa the SHGB are extendable.
SHGB tersebut dapat diperpanjang.



Pada tanggal 31 Desember 2016 tingkat The completion stage of construction in progress as
penyelesaian atas aset dalam penyelesaian adalah of December 31, 2016 is as follows:
sebagai berikut:
Estim asi
tahun
Persentase penyelesaian/
penyelesaian/ Estimated
Completion completion
percentage year
Tanah pertambangan 16% - 98% 2017 Mining properties

Bangunan, jalan, jembatan Building, roads, brodges
dan pelabuhan 1% - 98% 2017 and harbors
Mesin-mesin 2% - 98% 2017 Machineries
Perlengkapan 22% - 95% 2017 Equipment
Pabrik Semen 78% - 98% 2017 Cement plants
Untuk tahun yang berakhir pada tanggal For the year ended December 31, 2016 and 2015, the
31 Desember 2016 dan 2015, biaya perolehan construction costs of cement and power plants
pembangunan pabrik semen dan pembangkit listrik include capitalized borrowing costs of
termasuk biaya pinjaman yang dikapitalisasi sebesar Rp254,915,315 and Rp178,283,354, respectively,
masing-masing Rp254.915.315 dan Rp178.283.354, and foreign currency exchange differences arose
selisih kurs mata uang asing yang merupakan lindung from hedging commitments for the procurement of
nilai atas komitmen pengadaan peralatan utama main equipment of Rp27,985,118 and Rp29,063,919,
masing-masing sebesar Rp27.985.118 dan respectively. Borrowing costs consist of interest
Rp29.063.919. Biaya pinjaman terdiri dari biaya expense and amortization of transaction costs on
bunga dan amortisasi biaya transaksi atas pinjaman bank loans. The average capitalization rates were
bank. Tingkat kapitalisasi rata-rata adalah 8.00% - 10.58% and 12.46% in 2016 and 2015.
8.00% - 10,58% dan 12,46% pada tahun 2016 dan
2015.
Penambahan aset tetap yang berasal dari transaksi Addition of fixed assets from a non-cash
non-kas aktivitas investasi dan pendanaan untuk transactions in investing and financing activities for
periode yang berakhir pada tanggal 31 Desember period ended December 31, 2016 and 2015, are as
2016 dan 2015 masing-masing adalah sebagai follows:
berikut:
 Setoran modal pemegang saham minoritas  Capital infusion of minority shareholder in the
dalam bentuk tanah masing-masing sebesar form of land of Rp280,510,000 and RpNil
Rp280.510.000 dan RpNihil. respectively.
 Reklasifikasi dari uang muka proyek dan hutang  Reclassification of project advances and
masing-masing sebesar Rp414.297.041 dan payables of Rp414,297,041 and
Rp653.796.641. Rp653,796,641, respectively.
 Aset sewa pembiayaan masing-masing sebesar  Assets under finance leases of Rp517,716,794
Rp517.716.794 dan Rp83.917.837. and Rp83,917,837, respectively.
 Kapitalisasi beban pinjaman yang belum dibayar  Capitalization of unpaid borrowing costs of
masing-masing sebesar Rp104.820.280 dan Rp104,820,280 and Rp3,289,386, respectively.
Rp3.289.386.
 Kapitalisasi biaya pembongkaran masing-  Capitalization of costs of dismantling of

masing sebesar Rp5.538.858 dan Rp3.812.720. Rp5,538,858 and Rp3,812,720, respectively.
Aset tetap tertentu digunakan sebagai jaminan atas Certain fixed assets are used as collateral for non-
fasilitas pinjaman non-kas dan fasilitas kredit cash loan facilities and credit investment facilities
investasi (Catatan 20). (Note 20).
Annual Report 2016
483
Jumlah tercatat aset tetap yang telah disusutkan The carrying amount of fixed assets that are fully
penuh dan masih digunakan pada tanggal depreciated and still in used for production as of
31 Desember 2016 dan 2015 masing-masing December 31, 2016 and 2015, amounted to
sebesar Rp3.674.715.441 dan Rp2.679.102.744. Rp3,674,715,441 and Rp2,679,102,744, respectively.
Berdasarkan penilaian internal, nilai wajar aset Based on internal valuation, the fair value of fixed
tetap pada tanggal 31 Desember 2016 dan 2015 assets as of December 31, 2016 and 2015 amounted
masing-masing sebesar Rp44.949.658.226 dan to Rp44,949,658,226 and Rp39,187,142,267,
Rp39.187.142.267. Nilai wajar aset tetap diukur respectively. The fair value of the Group’s
menggunakan input level 3. investment properties are measured using input
level 3.
Aset tetap yang tidak digunakan sementara untuk Fixed assets which are not used in operations as of
aktivitas operasi pada tanggal 31 Desember 2016 December 31, 2016 and 2015 amounted to
dan 2015 adalah sebesar Rp63.301.974 dan Rp63,301,974 dan Rp86,498,251, respectively.
Rp86.498.251.
Rincian laba penjualan aset tetap adalah sebagai Details of gain on sale of fixed assets are as follows:
berikut:
2016 2015
Hasil penjualan neto 12.241.805 299.272 Net proceeds from sale
Tanah 4.410 - Land
Bangunan 796.615 - Building
Alat berat 32.477.433 765.850 Heavy equipment
Mesin 2.573.788 - Machinery
Peralatan 64.126 - Equipment
35.916.372 765.850
Akumulasi penyusutan: Accumulated depreciation:
Bangunan (518.157) - Building
Alat berat (30.394.993) (493.222) Heavy equipment
Mesin (2.487.037) - Machinery
Peralatan (64.126) - Equipment
(33.464.313) (493.222)
Nilai tercatat neto 2.452.059 272.628 Net carrying amount
Laba penjualan aset tetap (Catatan 36) 9.789.746 26.644 Gain on sale of fixed assets (Note 36)
Pada tanggal 31 Desember 2016 dan 2015, seluruh On December 31, 2016 and 2015, all of fixed assets
aset tetap dan properti investasi, kecuali tanah, telah and investment properties, excluding land, were
diasuransikan dengan jumlah pertanggungan insured with total coverage of Rp44,462,999,063
masing-masing sebesar Rp44.462.999.063 dan and Rp42,476,724,923, respectively.
Rp42.476.724.923.
Manajemen Grup berpendapat bahwa jumlah Management of the Group believes that the
pertanggungan asuransi tersebut memadai untuk insurance coverage is adequate to cover possible
menutup kemungkinan kerugian atas aset yang losses on the assets insured.
dipertanggungkan.



16. BEBAN TANGGUHAN 16. DEFERRED CHARGES
2016 2015
Sew a jangka panjang 95.954.279 100.012.930 Long-term prepaid rent

Instalasi listrik dan telepon 25.340.595 25.340.595 Telephone and electrical installation
Implementasi perangkat lunak 586.500 - Softw are implementation
Lain-lain 46.686.330 49.584.487 Others
168.567.704 174.938.012
Akumulasi amortisasi (50.913.983) (40.244.036) Accumulated amortization
Jumlah 117.653.721 134.693.976 Total
Sewa jangka panjang merupakan biaya sewa tanah Long-term prepaid rent represents land rentals,
yang diamortisasi selama dua puluh hingga lima which are amortized over twenty to fifty years.
puluh tahun.
Biaya instalasi telepon dan listrik diamortisasi selama The cost of telephone and electrical installations are
lima tahun. amortized over five years.
17. ASET TAKBERWUJUD - BERSIH 17. INTANGIBLE ASSETS- NET
Akuisisi
1 Januari/ entitas anak/ Selisih kurs/ 31 Desember/
January 1, Acquisition of Penambahan/ Pengurangan/ Foreign December 31,
2016 subsidiary Additions Deductions exchange 2016
Lisensi 816.853.956 3.746.015 - - (49.179.012) 771.420.959 Licenses

Merek dagang 199.566.769 - - - (24.626.896) 174.939.873 Trademark
Piranti perangkat lunak 173.028.889 - 171.812 - (26.435) 173.174.266 Computer sof tware
Pengurusan perpanjangan
hak atas tanah 10.995.312 99.246 - 42.500 - 11.052.058 Land rights renewal
Hubungan pelanggan - 318.760.596 - - - 318.760.596 Customer relation
Goodwill 165.832.259 45.587.563 - - (6.139.975) 205.279.847 Goodwill
1.366.277.185 368.193.420 171.812 42.500 (79.972.318) 1.654.627.599
Akumulasi amortisasi Accumulated amortization

dan penurunan nilai: and impairment:
Lisensi 59.499.078 76.178 19.286.200 - (2.006.236) 76.855.220 Licenses

Merek dagang 54.233.667 - 17.571.086 - (1.828.696) 69.976.057 Trademark
Piranti perangkat lunak 114.153.815 - 33.219.038 - (26.435) 147.346.418 Computer sof tware
hak atas tanah 4.084.389 2.931 1.283.014 - - 5.370.334 Land rights renewal
231.970.949 79.109 71.359.338 - (3.861.367) 299.548.029
Nilai tercatat neto 1.134.306.236 1.355.079.570 Net carry ing amount
Annual Report 2016

485
1 Januari/ Selisih kurs/ 31 Desember/

January 1, Penambahan/ Pengurangan/ Foreign December 31,
2015 Additions Deductions exchange 2015
Lisensi 749.377.632 - - 67.476.324 816.853.956 Licenses

Merek dagang 170.765.236 - - 28.801.533 199.566.769 Trademark
Piranti perangkat lunak 172.741.046 245.000 - 42.843 173.028.889 Computer sof tware
hak atas tanah 10.170.105 825.207 - - 10.995.312 Land rights renewal
Goodwill 155.881.265 - - 9.950.994 165.832.259 Goodwill
1.258.935.284 1.070.207 - 106.271.694 1.366.277.185
Akumulasi amortisasi Accumulated amortization

dan penurunan nilai: and impairment:
Lisensi 37.468.882 19.638.295 - 2.391.901 59.499.078 Licenses

Merek dagang 34.153.047 17.900.391 - 2.180.229 54.233.667 Trademark
Piranti perangkat lunak 80.814.073 33.262.270 - 77.472 114.153.815 Computer sof tware
hak atas tanah 2.802.027 1.282.362 - - 4.084.389 Land rights renewal
155.238.029 72.083.318 - 4.649.602 231.970.949
Nilai tercatat neto 1.103.697.255 1.134.306.236 Net carry ing amount
Merk, lisensi dan hubungan pelanggan merupakan Trademark, licenses and customer relation
aset takberwujud yang diakui sehubungan dengan represent intangible assets recognized in
akusisi TLCC dan VU. connection with the acquisition of TLCC and VU.
Beban amortisasi aset takberwujud seluruhnya Amortization of intangible assets is recorded to
dicatat pada beban penjualan dan beban umum dan selling and general and administration expenses in
administrasi dalam laporan laba rugi dan penghasilan the consolidated statements of profit or loss and
komprehensif lain konsolidasian. other comprehensive income.
18. UANG MUKA INVESTASI 18. ADVANCES FOR INVESTMENT

2016 2015
Proyek Pabrik Rembang 119.532.355 203.710.456 Rembang Plant Project
Pabrik Semen Indarung VI 42.533.282 113.529.703 Indarung VI Cement Plant
Pembelian barang investasi 17.151.413 11.039.959 Purchase of investment goods
Jumlah 179.217.050 328.280.118 Total
Akun ini merupakan uang muka pembelian barang This account represents advances for capital
modal dan akan direklasifikasi ke dalam aset dalam expenditures and will be reclassified into
penyelesaian pada saat pengiriman peralatan construction in progress upon delivery of the related
kepada Grup. equipment to the Group.
19. ASET TIDAK LANCAR LAINNYA 19. OTHER NON-CURRENT ASSETS
2016 2015
Uang muka pembelian tanah 116.188.259 116.188.259 Advance for purchase of land
Tanah untuk pengembangan 94.929.247 107.955.343 Land for development
Aset reklamasi tambang 53.902.131 59.943.061 Reclamation asset
Jaminan 35.273.380 18.295.152 Security deposits
Piutang jangka panjang 17.283.810 42.591.128 Long-term receivables
Lainnya 30.288.769 15.135.614 Others
Jumlah 347.865.596 360.108.557 Total
Uang muka pembelian tanah adalah pembelian tanah Advance for purchase of land consists of purchase
oleh entitas anak (KIG) seluas 2.587.707 meter of 2,587,707 square meters land by a subsidiary
persegi yang berlokasi di Tuban, Gresik dan (KIG) located in Tuban, Gresik and Rembang which
Rembang dengan tujuan untuk dijual di masa yang are intended to be sold in the future.
akan datang.

- 70 -


20. PINJAMAN 20. BORROWINGS
a. Jangka pendek a. Short-term
31 Desem ber / 31 Desem ber /

December 31, December 31,
2016 2015
Rupiah Rupiah
PT Bank CIMB Niaga Tbk 240.913.197 - PT Bank CIMB Niaga Tbk
Indonesia Eximbank 126.495.472 134.704.585 Indonesia Eximbank
PT Bank ICBC Indonesia 13.173.623 - PT Bank ICBC Indonesia

PT Bank Mandiri (Persero) Tbk 408.186.224 - PT Bank Mandiri (Persero) Tbk
Jumlah 815.270.090 134.704.585 Total
Dong Vietnam Vietnamese Dong
Sapa Vietnam JSC 3.754.624 3.898.983 Sapa Vietnam JSC
Jumlah 819.024.714 138.603.568 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 Based on Deed of Credit Agreement No. 53
tanggal 15 Desember 2016 dari Nyonya Djumini dated on December 15, 2016 from Nyonya
S.H.,M.Kn., Perseroan dan beberapa entitas Djumini S.H.,M.Kn., the Company and several
anak memperoleh fasilitas kredit dari subsidiaries obtained credit facilities from
PT Bank CIMB Niaga Tbk yang terdiri dari: PT Bank CIMB Niaga Tbk consisting of:
 Fasilitas Pinjaman Tetap 1, yang digunakan  Fixed Credit Facilities 1, which will be used
untuk memenuhi kebutuhan pinjaman to meet the bridging loan of the the Company
talangan Perseroan dan entitas anak dengan and several subsidiaries amounting to
jumlah fasilitas sebesar Rp1.500.000.000. Rp1,500,000,000.
 Fasilitas Pinjaman Tetap 2, yang merupakan  Fixed Credit Facilities 2, which is the
sublimit fasilitas pinjaman 1, yang digunakan sub-limits of fixed facilities 1 and will be used
untuk memenuhi kebutuhan modal kerja for working capital, with total maximum facility
dengan jumlah pemakaian secara keseluruhan for the Company and several subsidiaries
untuk Perseroan dan beberapa entitas anak amounting to Rp1,500,000,000.
adalah sebesar Rp1.500.000.000.
 Fasilitas Letter of Credit dan/atau Surat Kredit  Letter of Credit Facility and/or Import Letter
Berdokumen Dalam Negeri (SKBDN), yang of Credit Facility (SKBDN), which will be
digunakan untuk memenuhi kebutuhan modal used for working capital and/or for opening
kerja dan/atau pembukaan LC-SKBDN dalam LC-SKBDN in form of sight or usance to third
bentuk Sight atau Usance kepada pihak ketiga, party, which is the sub-limits of fixed facilities
merupakan sublimit fasilitas pinjaman 1, dengan 1, with total maximum facility for the
jumlah pemakaian secara keseluruhan untuk Company and several subsidiaries
Perseroan dan beberapa entitas anak adalah amounting to Rp1,500,000,000.
sebesar Rp1.500.000.000.
- 71 -
Annual Report 2016
487
 Fasilitas Negosiasi Wesel Ekspor, dengan  Export Bill Negotiation Facility for the
tujuan negosiasi sight atau usance LC- purpose of negotiation sight or usance LC-
SKBDN yang bersifat sublimit dengan SKBDN, which is the sub-limits of fixed
Fasilitas Pinjaman Tetap-1 dengan jumlah facilities 1 with total maximum facility
keseluruhan maksimum sebesar amounting to Rp150,000,000.
Rp150.000.000.
Fasilitas ini berlaku sampai dengan These facilities are valid until December 15,
15 Desember 2018 dengan suku bunga Jakarta 2018 with interest rate average Jakarta
Interbank Offerred (JIBOR) rata – rata 3 bulan Interbank Offered (JIBOR) 3 months plus
ditambah dengan 0,95% per tahun, dikenakan 0.95% per annum, 0.0625% per transaction for
biaya 0,0625% per transaksi untuk Letter of Letter of Credit and discount rate 8.5% per
Credit dan biaya diskonto 8,5% per tahun untuk annum for Export Bill subject to changes based
Wesel Ekspor yang dapat berubah – rubah on market condition. Maturity period for each
tergantung kondisi pasar. Jatuh tempo untuk drawdown from Fixed Credit Facilities 1 and 2
setiap penarikan Fasilitas Pinjaman Tetap 1 are 12 months and 6 monts, respectively.
adalah 12 bulan dan untuk Fasilitas Pinjaman
Tetap 2 adalah 6 bulan.
Fasilitas pinjaman tersebut diatas diperoleh tanpa The above facilities are clean basis collateral,
agunan (clean basis), dan mewajibkan Perseroan and require the the Company and several
dan beberapa entitas anak untuk memberitahukan subsidiaries to inform the Bank in writing in the
kepada Bank secara tertulis dalam hal Perseroan event the the Company and several
dan beberapa entitas anak akan melakukan subsidiaries will take action to sell/divert
tindakan menjual/mengalihakan harta, khususnya assets, especially if the nominal exceed 20% of
jika nominal melebihi 20% dari ekuitas, the equity, pledge their assets and obtaining
menjaminkan kekayaan dan mendapatkan serta and providing loan, change the composition of
memberikan pinjaman, mengubah susunan direksi, the Directors, board of Commissioners and
dewan komisaris dan pemegang saham, shareholders, publish and distribute dividends
mengumumkan dan membagikan dividen kepada to shareholders, and perform merger,
pemegang saham, dan melakukan penggabungan consolidation, acquisition and disposal that
usaha,peleburan, pengambilalihan dan pemisahan would change the capital structure.
Pada tanggal 31 Desember 2016, fasilitas As of December 31, 2016, these facilities were
tersebut sudah digunakan oleh entitas anak already used by the Company’s subsidiaries
Perseroan sejumlah Rp240.913.197. amounting to Rp240,913,197. The payment
Pembayaran yang dilakukan kepada bank terkait made to the bank associated with this loan by
pinjaman ini oleh SIB pada tahun 2016 sebesar SIB in 2016 amounting to Rp723 related to
Rp723 terkait dengan bunga pinjaman. interest of loan.
Indonesia Eximbank Indonesia Eximbank

PT Semen Indonesia Beton (SIB) PT Semen Indonesia Beton (SIB)
Pada tanggal 3 Desember 2014, SIB On December 3, 2014, SIB entered into
menandatangi perjanjian pembiayaan untuk financing agreement for export capital work
fasilitas Kredit Modal Kerja Ekspor I, Fasilitas facility I, export capital work facility II and
Kredit Modal Kerja II dan fasiltas jaminan dengan guarantee facility with Indonesia Eximbank with
Indonesia Eximbank dengan maksimum fasilitas maximum facilities amounting to Rp5,000,000,
masing-masing sebesar Rp5.000.000, Rp257,500,000 and Rp2,500,000, respectively.
Rp257.500.000 dan Rp2.500.000. Fasilitas ini These facilities were secured by the fiduciary
dijamin secara fidusia dengan persediaan, inventories, trade receivables and fixed assets.
piutang dagang dan aset tetap. Jangka waktu The term of these facilities is for 12 months. The
fasilitas 12 bulan. Tingkat bunga yang dikenakan interest rate for capital work facility I and export
untuk fasilitas kredit modal kerja Ekspor I dan II capital work facility II is 10% and can be
adalah 10% per annum dan dapat berubah changed any time based on information from
sewaktu-waktu sesuai dengan ketentuan yang Indonesia Eximbank, while for guarantee
berlaku di Indonesia Eximbank, sedangkan facility, the guarantee fee is ranging 0.65%-
untuk fasilitas jaminan, imbal jasa penjaminan 1.5%. The facilities have been extended up to
adalah sebesar 0,65%-1,5%. Fasilitas ini telah December 2, 2017.
diperpanjang dengan perpanjangan terakhir
sampai dengan tanggal 2 Desember 2017.

- 72 -


Fasilitas ini mensyaratkan SIB untuk memelihara These facilities require SIB to maintain certain
rasio keuangan tertentu berdasarkan laporan financial ratios based on the audited financial
keuangan yang telah diaudit dan memberikan information and give notification to the bank
pemberitahuan kepada bank jika melakukan regarding capital investment. SIB has obtained
penyertaan modal. SIB telah memperoleh the approval from the bank regarding its
persetujuan bank terkait dengan penyertaan investment to VUB. As of December 31, 2015,
modal pada VUB. Pada tanggal 31 Desember one of the financial ratio was not met and as
2015, salah satu rasio keuangan tidak terpenuhi indicated in loan agreement, SIB has notified
dan sesuai dengan perjanjian kredit, SIB telah the Bank. As of December 31, 2016, SIB has
memberitahukan kepada Bank. Pada tanggal fulfilled the financial ratios required in the credit
31 Desember 2016, SIB telah memenuhi rasio agreement.
keuangan yang diatur dalam perjanjian kredit.
Pada tanggal 31 Desember 2016 dan As of December 31, 2016 and 2015, the total
2015, saldo dari fasilitas pinjaman ini masing- outstanding loan from this facility amounted to
masing sebesar Rp126.495.472 dan Rp126,495,472 and Rp134,704,585,
Rp134.704.585. SIB melakukan pembayaran respectively. SIB has made payment to the
kepada bank terkait dengan pinjaman ini pada bank associated with this loan in 2016
tahun 2016 sebesar Rp318.585.806. amounting to Rp318,585,806.
PT Bank ICBC Indonesia PT Bank ICBC Indonesia
Pada tanggal 21 Oktober 2016 dengan akta No. On October 21, 2016, based on Notarial Deed
89 dari Sitaresmi Puspadewi Subianto S.H, No. 89 from Sitaresmi Puspadewi Subianto S.H,
Notaris di Jakarta, SIB menandatangani fasilitas Notary in Jakarta, SIB signed Fix Loan On
Pinjaman Tetap on Demand A (PTDA) dengan Demand A (PTDA) facilities with maximum
maksimum fasilitas kredit sejumlah credit facilities of Rp100,000,000 with the
Rp100.000.000 dengan jangka waktu 1 tahun availability period of 1 year for financing
untuk pembiayaan pembangunan pabrik dan construction of plant and purchasing
pembelian mesin, dengan sub limit: machineries with sub-limits:
1. Surat Kredit Berdokumen Dalam Negeri 1. Import Letter of Credit Facility (SKBDN)
(SKBDN) dengan limit Rp100.000.000. with limit Rp100,000,000.
2. Discrepant Negosiasi/Diskonto SKBDN 2. Discrepancy Negotiation/Discounted
dengan limit Rp100.000.000. SKBDN with limit Rp100,000,000.
3. Usuance Payable at Sigth (UPAS) dengan 3. Usuance Payable at Sigth (UPAS) with limit
limit Rp100.000.000. Rp100,000,000.
4. Trust Receipt Financing (TR) dengan limit 4. Trust Receipt Financing (TR) with limit
Rp100.000.000. Rp100,000,000.
5. Bank Garansi (BG) sebesar Rp30.000.000. 5. Bank Guarantee (BG) sebesar
Rp30,000,000.
Tingkat suku bunga atas PTDA, Diskonto Interest rate for PTDA, Discounted SKBDN and
SKBDN dan TR adalah 9,75% per tahun dan TR is 9.75% per annum and for UPAS is 9.25%
untuk UPAS adalah 9,25% per tahun. Agunan per annum. Collateral for this facility is SIB’s
atas fasilitas ini adalah Persediaan milik SIB Inventory which located in some SIB’s plants.
yang berada di beberapa plant SIB.
Fasilitas ini mensyaratkan SIB untuk These facilities require SIB to convey
menyampaikan informasi terkait dengan information relating with dividends payment to
pembayaran dividen kepada pemegang saham the shareholders and new loan agreement with
dan perjanjian pinjaman tambahan dengan pihak third parties. As of December 31, 2016, SIB has
ketiga. Pada tanggal 31 Desember 2016, SIB fulfilled all of the requirements in the agreement.
telah memenuhi persyaratan yang disebutkan
diperjanjian.
Pada tanggal 31 Desember 2016, jumlah saldo As of December 31, 2016, outstanding loans
utang terkait dengan fasilitas ini adalah sebesar from these facilities amounted to Rp13,173,623.
Rp13.173.623. SIB belum melakukan SIB has not made the payment related with this
pembayaran terkait dengan pinjaman ini pada loan in 2016.
tahun 2016.
- 73 -
Annual Report 2016
489
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 On October 31, 2001, the Company
menandatangani perjanjian fasilitas non-cash entered into a non-cash loan (NCL)
loan (NCL) dalam bentuk letter of credit (LC) facilities agreement in the form of a letter of
dengan PT Bank Mandiri (Persero) Tbk credit (LC) facility with
dengan nilai fasilitas maksimum sebesar PT Bank Mandiri (Persero) Tbk for a
setara USD50.000.000 dan sub limit fasilitas maximum equivalent amount of
trust receipt (TR) sebesar setara USD50,000,000 and a sub-limit trust
USD25.000.000. Fasilitas ini dijamin secara receipts (TR) facility of equivalent
fidusia dengan barang yang diimpor/dibeli USD25,000,000. These facilities were
dengan menggunakan fasilitas ini dan/atau secured by the fiduciary transfer of the
bank garansi yang dimiliki Perseroan. imported/purchased goods acquired using
Fasilitas ini telah beberapa kali diperpanjang these facilities and/or bank guarantees of
dengan perpanjangan terakhir sampai the Company. The facilities have been
dengan tanggal 27 Juni 2017. Tingkat bunga extended several times and most recently
yang dikenakan untuk fasilitas LC dan TR have been extended up to June 27, 2017.
adalah sesuai dengan ketentuan yang The interest rate for LC and TR facilities are
berlaku di Bank. in accordance with the rate applied in the
Bank.
Pada tanggal 31 December 2016 dan As of December 31, 2016 and

2015, nilai LC yang telah diterbitkan dan 2015, the outstanding LC amounts under
masih berjalan berdasarkan fasilitas ini this facility were USD3,545,548 and
adalah masing-masing sebesar EUR6,748,219; and, USD4,345,727,
USD3.545.548, and EUR6.748.219; dan, EUR4,805,248 and JPY1,215,720,000,
USD4.345.727, EUR4.805.248, and respectively. There are no amounts under
JPY1.215.720.000. Tidak terdapat fasilitas this facility which are due and unpaid as of
LC yang telah jatuh tempo dan belum dibayar December 31, 2016 and 2015.
pada tanggal 31 Desember 2016 dan 2015.
Fasilitas ini mensyaratkan Perseroan untuk These facilities require the Company to
memelihara rasio keuangan tertentu dan maintain certain financial ratios and to
kewajiban untuk melapor antara lain jika report, among others, when the Company
Perseroan mengumumkan atau membayar declares or pays dividends, provides loans
dividen, memberikan pinjaman kepada pihak to third parties, pledges its shares, grants
ketiga, menggadaikan sahamnya, guarantees or pledges its assets to any
mengikatkan diri sebagai penjamin utang other parties. As of December 31, 2016 and
atau menjaminkan harta kekayaannya 2015, the Company is in compliance with all
kepada pihak lain. Pada tanggal of the financial covenants.
31 Desember 2016 dan 2015, Perseroan
telah memenuhi semua rasio keuangan yang
dipersyaratkan.
Fasilitas Modal Kerja Working Capital Facility

Pada tanggal 2 Agustus 2012, Perseroan On August 2, 2012, the Company obtained
mendapat fasilitas Standby Loan dari Standby Loan facility from PT Bank Mandiri
PT Bank Mandiri (Persero) Tbk sebesar (Persero) Tbk of Rp1,000,000,000. Based
Rp1.000.000.000. Berdasarkan adendum on the fifth amendment dated
kelima tanggal 28 Juni 2016, tingkat bunga June 28, 2016 the interest rate is 8.4% per
yang berlaku adalah sebesar 8,4% per annum with reference rate method based
tahun dengan metode reference rate on Published Rate Time Deposit (PRTD) of
berdasarkan Published Rate Time Deposit Bank Mandiri for 3 months.
(PRTD) Bank Mandiri untuk 3 bulan. Suku The interest rate will be reviewed every
Bunga akan direviu setiap 3 bulan. Fasilitas 3 months. This facility has been extended
ini telah diperpanjang sampai dengan up to June 27, 2017.
tanggal 27 Juni 2017.

- 74 -


Fasilitas ini mensyaratkan Perseroan untuk This facility requires the Company to
memelihara rasio keuangan tertentu. Pada maintain certain financial ratios. As of
tanggal 31 Desember 2016 dan 2015, December 31, 2016 and 2015, the
Perseroan telah memenuhi semua rasio Company is in compliance with all of the
keuangan yang dipersyaratkan. financial covenants.
Pada tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, total
saldo pinjaman jangka pendek dari fasilitas outstanding short-term borrowing from this
ini masing-masing sebesar Rp300.000.000 facility amounted to Rp300,000,000 and
dan RpNihil. Perseroan belum melakukan RpNil, respectively. The Company has not
pembayaran terkait dengan pinjaman ini made the payment related with this facility
pada tahun 2016. in 2016.
Fasilitas Transaksi Treasury Treasury Line Facility
Pada tanggal 21 Juni 2010, Perseroan On June 21, 2010, the Company entered
menandatangani perjanjian jasa pelayanan into a treasury line agreement with
transaksi treasury dengan PT Bank Mandiri PT Bank Mandiri (Persero) Tbk. This
(Persero) Tbk. Perjanjian ini telah agreement has been amended most
diadendum terakhir pada tanggal recently on June 28, 2015. The facility is
28 Juni 2015. Fasilitas ini digunakan untuk used for selling and buying foreign currency
melakukan penjualan dan pembelian valuta for daily capital expenditure and operational
asing dalam rangka pembelanjaan modal activities. The maximum facility is
rutin dan kegiatan operasional lainnya. Nilai USD50,000,000 which is due to expire on
fasilitas sebesar USD50.000.000 yang akan June 27, 2017. This facility is secured by
jatuh tempo pada tanggal 27 Juni 2017. the collateral for Non Cash Loan, Working
Fasilitas ini dijamin dengan agunan yang Capital facilities and cross collateral and
digunakan untuk fasilitas Non Cash Loan, cross default with other facilities. As of
Kredit Modal Kerja dan cross collateral dan December 31, 2016 and 2015, the
cross default dengan agunan fasilitas Company did not use this facility.
lainnya. Pada tanggal 31 Desember 2016
dan 2015, fasilitas ini belum digunakan.
2. PT Semen Padang (SP) 2. PT Semen Padang (SP)
Pada tanggal 5 September 2012, SP On September 5, 2012, SP entered into
menandatangani perjanjian fasilitas non- non-cash loan facilities agreement with
cash loan dengan PT Bank Mandiri PT Bank Mandiri (Persero) Tbk for a letter
(Persero) Tbk dengan nilai letter of credit of credit facility of Rp150,000,000 with
maksimum sebesar Rp150.000.000 dengan sub-limit trust receipts of Rp75,000,000,
sub-limit trust receipt sebesar treasury line and bills purchase line
Rp75.000.000, fasilitas treasury line dan facilities with maximum credit
bills purchase line digunakan USD10,000,000 and USD2,200,000
masing-masing maksimum sebesar respectively. These facilities are secured by
USD10.000.000 dan USD2.200.000 fiduciary with accounts receivable, fixed
Fasilitas ini dijamin secara fidusia dengan assets such as land SHGB No. 24 on behalf
piutang usaha, aset tetap berupa tanah of SP and its buildings, infrastructure, plant
SHGB No. 24 atas nama SP beserta machinery and equipment thereon. These
bangunan, prasarana, mesin pabrik dan facilities were most recently extended until
peralatan diatasnya. Fasilitas ini terakhir kali June 27, 2017.
diperpanjang kembali hingga tanggal
27 Juni 2017.
Fasilitas ini mensyaratkan SP untuk These facilities require SP to maintain
memelihara rasio keuangan tertentu dan certain financial ratios and to report on
kewajiban melapor apabila terjadi changes in the Board of Directors and
perubahan susunan Direksi dan Dewan Commissioners, share capital and
Komisaris, dan modal dan susunan shareholders, and payments of dividends
pemegang saham dan melakukan and credit facilities and/or loans obtained
pembayaran dividen, fasilitias kredit from other parties. As of December 31,
dan/atau pinjaman dari pihak lain. Pada 2016 and 2015, SP has fulfilled all the
tanggal 31 Desember 2016 dan 2015, SP required ratios as stated in the agreement.
telah memenuhi rasio keuangan yang
disyaratkan dalam perjanjian.
- 75 -
Annual Report 2016
491
Pada tanggal 31 Desember 2016 dan As of December 31, 2016 and 2015, there
2015, tidak ada nilai LC yang telah is no outstanding LC amount under these
diterbitkan dan masih berjalan berdasarkan facilities. There are no amounts under these
fasilitas ini. Tidak terdapat fasilitas LC yang facilities which are due and unpaid as of
telah jatuh tempo dan belum dibayar pada December 31, 2016 and 2015.
3. PT Semen Tonasa (ST) 3. PT Semen Tonasa (ST)
Pada tanggal 16 Juni 2016, ST On June 16, 2016, ST signed the

menandatangani adendum keempat belas fourteenth addendum to the non-cash loan
dari perjanjian fasilitas non-cash loan dalam facilities in the form of import letters of
bentuk letter of credit (LC) impor, SKBDN credit (LC), Domestic LC (SKBDN-
(Sight/Usance/UPAS) dan Bank Garansi sight/usance/UPAS) and bank guarantee
dengan PT Bank Mandiri (Persero) Tbk agreement with PT Bank Mandiri (Persero)
dengan nilai fasilitas maksimal sebesar Tbk involving a maximum facility of
USD15.000.000 dengan sub limit supply USD15,000,000 with a sub-limit supply
chain financial sebesar USD3.500.000. chain financial facility of USD3,500,000.
Fasilitas ini akan jatuh tempo pada tanggal The facilities are due to expire on June 27,
27 Juni 2017 dan dijamin secara fidusia 2017 and are secured by the fiduciary to
dengan barang-barang yang dibeli/diimpor transfer of the purchased/imported goods
dan hipotik tanah di Pangkep. Tujuan dari and a mortgage over land rights located in
fasilitas ini adalah untuk pembiayaan dalam Pangkep. The purpose of these facilities is
rangka pembelian bahan baku, bahan to finance for the purchase of raw
pembantu, bahan bakar dan suku cadang. materials, supporting materials, fuel and
spare parts.
Pada tanggal 31 Desember 2016, tidak ada As of December 31, 2016, these LC has
nilai LC yang telah digunakan berdasarkan not been used under this facility.
fasilitas ini.
Pada tanggal 16 Juni 2016, ST On June 16, 2016, ST signed an

menandatangani adendum perjanjian jasa addendum treasury line agreement with
pelayanan transaksi treasury dengan PT PT Bank Mandiri (Persero) Tbk for sale and
Bank Mandiri (Persero) Tbk untuk purchase transaction of foreign exchange
melakukan transaksi penjualan dan currency, involving a maximum facility of
pembelian foreign exchange valuta dengan USD12,000,000. The facility is due to
nilai fasilitas maksimal sebesar expire on June 27, 2017 and is secured by
USD12.000.000. Fasilitas ini akan jatuh cross collateral and cross default with other
tempo pada tanggal 27 Juni 2017 dan facilities (excluding syndicated credit
dijamin dengan cross collateral dan cross facility). The purpose of this facility is to
default dengan fasilitas lainnya (kecuali hedge the export/import transactions of ST.
fasilitas kredit bank sindikasi). Tujuan dari
fasilitas ini adalah untuk kepentingan
lindung nilai atas transaksi ekspor/impor ST.
Sampai tanggal 31 Desember 2016 dan As of December 31, 2016 and 2015, this
2015, fasilitas ini belum digunakan. facility remains unused.

- 76 -


4. PT Varia Usaha (VU) 4. PT Varia Usaha (VU)
Berdasarkan akta perjanjian utang No. 56 Based on the Deed of Loan Agreement
tanggal 24 Juni 2011 dari Wachid Hasyim, No. 56 dated on June 24, 2011 from
S.H., Notaris di Surabaya, yang telah diubah Wachid Hasyim, S.H., Notary in Surabaya,
beberapa kali sampai dengan Addendum IX which has been amended many times with
atas akta perjanjian utang no. 97 tanggal 10 the latets is Amendment IX with Deed of
Agustus 2016 dari Yatinigsih S.H., M.H,, Loan Agreement No. 97 dated on August
Notaris di Surabaya, PT Bank Mandiri 10, 2016 from Yatiningsih S.H.. H.M.,
(Persero), Tbk memberikan perpanjangan Notary in Surabaya, PT Bank Mandiri
jangka waktu dan penambahan limit kredit (Persero), Tbk provides for extension and
fasilitas kredit modal kerja dengan jangka addition of credit limit for working capital
waktu fasilitas sampai dengan 27 Juni 2017 credit facility with period of facility up to
untuk tujuan modal kerja di bidang usaha June 27, 2017, for the purpose of working
angkutan, perdagangan semen, barang capital on transportation business, cement
industri, dan pertambangan kepada VU dan trade, industrial goods and mining of VU
limit kredit maksimal menjadi sebesar and the maximum credit limit changes to
Rp77.000.000. Bunga pinjaman 9,5% per Rp77,000,000. Loan interest rate 9.5% per
tahun, untuk direviu sewaktu-waktu. annum, subject for review at any given
time.
Fasilitas kredit ini dijamin dengan: This credit facility is secured with:
- Kendaraan dengan total nilai penjaminan - Vehicle with maximum amount of
sebesar Rp104,421,083. Rp104,421,083.
- Piutang Dagang dengan nilai sebesar - Accounts receivable amounting to
Rp331.628.249 Rp331,628,249.
Pada tanggal 31 Desember 2016, saldo As of December 31, 2016, the outstanding
utang bank atas fasilitas ini adalah sebesar bank loan amounted to Rp57,759,406.
Rp57.759.406.
Berdasarkan Akta Perjanjian Utang No.47 Based on the Deed of Loan Agreement No.
tanggal 24 Mei 2011 dari Wachid Hasyim, 47 dated on May 24, 2011 from Wachid
SH., Notaris di Surabaya yang telah diubah Hasyim, SH., Notary in Surabaya and has
beberapa kali sampai dengan Addendum VII been amended several with the latest
dengan Akta Perjanjian Utang No. 96 amendment VII with Deed of Loan
tanggal 10 Agustus 2016, PT Bank Mandiri Agreement No. 96 on August 10, 2016, PT
(Persero), Tbk menyetujui perpanjangan Bank Mandiri (Persero), Tbk agreed to
jangka waktu fasilitas dan penambahan limit extend and increase the Working Capital
fasilitas Kredit Modal Kerja kepada VU Credit facility to VU until June 27, 2017 with
sampai dengan tanggal 27 Juni 2017 limit maximum Rp62,000,000. This facility
dengan pagu maksimum kredit menjadi is used for working capital and settlement
sebesar Rp62.000.000. Fasilitas tersebut for cement bill transaction. The interest
digunakan untuk tujuan modal kerja dan rate of the facility is 9.5% per annum,
pembayaran tagihan transaksi semen. subject for review at any given time. The
Fasilitas kredit tersebut dibebani bunga collateral for this facility are cross collateral
sebesar 9,5% per tahun, untuk direviu and cross default with facilities in bank
sewaktu-waktu. Jaminan atas fasilitas guarantee amendment XII Bank Facility
tersebut bersifat cross collateral dan cross Agreement deeds No.95 dated on August
default dengan fasilitas Bank Garansi dalam 10, 2016 from Yatiningsih, S.H., M.H.,
Addendum XII Perjanjian Fasilitas Bank Notary in Surabaya.
Garansi dengan Akta No.95, tanggal 10
Agustus 2016 dari Yatiningsih, S.H., M.H.,
Notaris di Surabaya.
utang bank atas fasilitas ini adalah sebesar bank loan is amounted to Rp50,426,818.
Rp50.426.818.
- 77 -
Annual Report 2016
493
Berdasarkan surat perjanjian utang No. 95 Based on Loan Agreement No. 95 on

tanggal 10 Agustus 2016, PT Bank Mandiri August 10, 2016, PT Bank Mandiri
(Persero), Tbk, memberikan fasilitas Bank (Persero), Tbk gives bank guarantee
Garansi kepada VU dengan jangka waktu facility to VU with period of facility up to
fasilitas sampai dengan 27 Juni 2017 June 27, 2017. Limit of bank guarantee as
dengan limit bank garansi pada December 31, 2016 amounting to
31 Desember 2016 sebesar Rp327,000,000.
Rp327.000.000.
Saldo fasilitas bank garansi pada The balance of bank guarantee facility as
31 Desember 2016 adalah sebesar RpNihil. of December 31, 2016 amounted to RpNil.
Fasilitas pinjaman ini dijamin dengan: This loan facility is secured with:
- Tanah beserta bangunan, mesin, - Land, building, machine, and
peralatan dan perlengkapan berlokasi di equipment located in Tulungangung,
Tulungagung, Malang, Banyuwangi, Malang, Banyuwangi, Bojonegoro,
Bojonegororo, Blora, dan Semarang Blora, and Semarang with total
dengan hak tanggungan dengan total nilai mortgage value amounting to
Rp34.159.300. Rp34,159,300.
- Truk atas nama PT Varia Usaha dengan
nilai pengikatan Rp2.149.000. - Trucks under the name of VU with the
- Persediaan dan piutang dengan nilai amount of Rp2,149,000.
pengikatan masing-masing sebesar - Inventory and receivable with
Rp1.971.754 dan Rp331.628.249. commitment value amounting to
Rp1,971,754 and Rp331,628,249
respectively.
Fasilitas ini mensyaratkan VU untuk These facilities require VU to maintain certain

memelihara rasio keuangan tertentu. Pada financial ratios. As of December 31, 2016, VU
tanggal 31 Desember 2016, VU tidak bisa was not able to comply with one of the
memenuhi salah satu rasio keuangan, dan financial ratio and already received waiver
telah menerima waiver letter dari letter from PT Bank Mandiri (Persero) Tbk.
PT Bank Mandiri (Persero) Tbk.
Perjanjian ini juga mensyaratkan VU untuk The agreement also requires VU not to
tidak membagikan dividen kepada distribute dividend to the shareholders and
pemegang saham dan memperoleh fasilitas received additional loans from other
kredit atau pinjaman dari pihak lain. VU telah parties. VU already fulfilled those
memenuhi persyaratan tersebut pada requirement in the loan agreement as of
tanggal 31 Desember 2016. December 31, 2016.
Pembayaran utang bank terkait dengan Payment of bank loan related with short
fasilitas pinjaman PT Bank Mandiri term borrowing from PT Bank Mandiri
(Persero) Tbk jangka pendek untuk periode (Persero) Tbk in 2016 amounted to
2016 adalah sebesar Rp336.920.520. Rp336,920,520.
5. PT Semen Gresik (SG) 5. PT Semen Gresik (SG)

Pada tanggal 11 Maret 2014, SG On March 11, 2014, SG entered into a non-
menandatangani perjanjian fasilitas non-cash cash loan (NCL) facility agreement in the
loan (NCL) dalam bentuk Letter of Credit (LC) form of a Letter of Credit (LC) facility with
dengan PT Bank Mandiri (Persero) Tbk PT Bank Mandiri (Persero) Tbk for a
dengan nilai fasilitas maksimum sebesar maximum amount of Rp1,400,000,000 and
Rp1.400.000.000 dan memiliki jangka waktu for the period up to September 21, 2017.
sampai 21 September 2017. Fasilitas ini This facility was secured by the fiduciary
dijamin secara fidusia dengan barang yang transfer of the imported/purchased goods
diimpor/dibeli dengan menggunakan fasilitas acquired using these facilities and/or bank
ini dan/atau bank garansi yang dimiliki SG. guarantees of SG. The interest rate for LC
Tingkat bunga yang dikenakan untuk fasilitas facilities is in accordance with the rate
LC adalah sesuai dengan ketentuan yang applied in the bank.
berlaku di Bank.

- 78 -


Pada tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, the
nilai LC yang telah diterbitkan dan masih outstanding LC amount under this facility
berjalan berdasarkan fasilitas ini adalah was EUR1,952,216 or equivalent to
sebesar masing-masing EUR1.952.216 Rp27,646,404 and EUR5,894,803 or
atau setara dengan Rp27.646.404 dan equivalent to Rp88,832,780, respectively.
EUR5.894.803 atau setara dengan There is no amount under this facility,
Rp88.832.780. Tidak terdapat fasilitas LC which is due and unpaid as of December
yang telah jatuh tempo dan belum dibayar 31, 2016 and 2015.
pada tanggal 31 Desember 2016 dan 2015.
Selama fasilitas ini belum lunas, SG Before the settlement of this facility, SG
berkewajiban untuk memenuhi syarat-syarat has obligation to comply with all conditions
seperti yang diatur dalam perjanjian. Pada as stipulated in the agreement. As of
tanggal 31 Desember 2016 dan 2015, SG December 31, 2016 and 2015, SG has
telah memenuhi semua persyaratan yang complied with all conditions as stipulated in
telah diatur di dalam perjanjian. the agreement.
Pada tanggal 17 Juni 2014, SG On June 17, 2014, SG entered into a
menandatangani perjanjian jasa pelayanan treasury line agreement with PT Bank
transaksi treasury dengan PT Bank Mandiri Mandiri (Persero) Tbk. The facility is used
(Persero) Tbk. Fasilitas ini digunakan dalam for selling and buying foreign currency for
rangka melakukan pengadaan dan daily capital expenditure and operational
pembelian valuta asing untuk pembelanjaan activities. The maximum facility is
modal rutin dan kegiatan operasional USD15,000,000 which is due to expire on
lainnya dengan nilai fasilitas sebesar June 27, 2015. On February 24, 2016, the
USD 15.000.000, jatuh tempo pada tanggal
facility is extended for a 16-month period
27 Juni 2015. Pada 24 Pebruari 2016,
and an increase in the limit to
fasilitas ini diperpanjang dengan jangka
waktu 16 bulan dan peningkatan limit USD55,000,000, which is due to expire on
menjadi sebesar USD55.000.000, yang June 27, 2017. This facility is secured by
akan jatuh tempo pada tanggal 27 Juni the collateral for Non-cash Loan, joint
2017. Fasilitas ini dijamin dengan fasilitas collateral and cross default with other
Non-cash Loan, Joint Collateral dan Cross facilities. As of December 31, 2016 and
Default dengan fasilitas lainnya. Pada 2015, no outstanding transaction under this
tanggal 31 Desember 2016 dan 2015, tidak facility.
ada transaksi yang masih berjalan atas
fasilitas ini.
Fasilitas Kredit Modal Kerja Working Capital Credit Facility
Pada tanggal 10 Juni 2016, SG menandatangani On June 10, 2016, SG has signed working
perjanjian fasilitas kredit modal kerja dengan PT capital credit facility with PT Bank Mandiri
Bank Mandiri (Persero) Tbk. Fasilitas ini dibagi (Persero) Tbk. The facility is divided on two
menjadi dua bagian sebesar Rp 500.000.000 part amounted Rp 500,000,000 with sublimit
dengan sublimit fasilitas NCL sebesar Rp facility NCL amounted Rp 300,000,000 with
300.000.000 dengan tujuan purposes respectively for working capital
masing – masing untuk pembiayaan kebutuhan operational funding when the plant start
modal kerja operasional perusahaan pada saat operation and purchase material for operation
and operational equipment. This facility valid
pabrik mulai beroperasi dan untuk pembelian
until June 9, 2017. The interest rate applied for
bahan baku untuk operasi dan peralatan
this facility is reference rate (BI Rate) plus
operasional perusahaan. Fasilitas ini berlaku margin from difference between beginning
sampai dengan 9 Juni 2017. Suku bunga yang interest rate less reference rate. The
berlaku untuk fasilitas ini adalah reference rate beginning interest rate is 8,4% upon signing of
(suku bunga BI) ditambah dengan margin yang the agreement and margin interest rate 1,65%.
berasal dari selisih antara suku bunga awal As of December 31, 2016, the Company did
dikurangi reference rate. Tingkat suku bunga not use this facility.
awal yang berlaku adalah 8.4% pada saat
penandatanganan perjanjian dan suku bunga
margin sebesar 1.65%. Pada tanggal
31 Desember 2016, fasilitas ini belum
digunakan.
- 79 -
Annual Report 2016
495
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 On May 29, 2013, SP entered into an

menandatangani perjanjian berupa agreement for Non Cash Loan facilities
pemberian fasilitas Non Cash Loan berupa such as Penangguhan Jaminan Impor and
Penangguhan Jaminan Impor (LC/SKBDN) Kredit Modal Kerja Impor with PT Bank
dan Kredit Modal Kerja Impor dengan Rakyat Indonesia (Persero) Tbk involving
PT Bank Rakyat Indonesia (Persero) Tbk maximum of each facilities amounting to
dengan nilai maksimum untuk masing- USD15,000,000. These facilities were most
masing fasilitas sebesar USD15.000.000. recently extended to May 29, 2017. This
Fasilitas ini terakhir kali diperpanjang kembali facilities are secured by raw materials,
hingga tanggal 29 Mei 2017. Fasilitas ini supporting materials and spareparts or
dijamin dengan barang atau bahan baku, purchased utilizing these facilities.
bahan pendukung, sparepart atau barang
lainnya yang diimpor.
Fasilitas ini mensyaratkan SP untuk These facilities require SP to report

memberitahukan apabila terjadi perubahan changes management structure,
susunan pengurus, anggaran dasar, dan constitution and share capital, report any
modal saham, menyampaikan jika ada investment in shares or increase the value
tindakan penyertaan saham atau of investment, mergers, acquisition, going
peningkatan nilai penyertaan, merger, public, and selling assets of more than
akuisisi, go public, dan penjualan aset yang Rp200,000,000.
melebihi Rp200.000.000.
Pada tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, there
tidak ada nilai LC yang telah diterbitkan dan is neither outstanding LC amounts nor
masih berjalan atau telah jatuh tempo dan amounts which are due and unpaid under
belum dibayar berdasarkan fasilitas ini. these facilities.
2. PT Varia Usaha (VU) dan Entitas Anak 2. PT Varia Usaha (VU) and its Subsidiaries
Berdasarkan Addendum Suplesi Kredit dan Based on the Addendum of Supplemental

Penggantian Sebagian Jaminan No. 122 Credit and Collateral Partial Replacement
tanggal 28 Desember 2012 oleh Notaris No. 122 dated December 28, 2012 by
Mutik Asfihani, S.H. M.Kn. dengan PT Bank Notary Mutik Asfihani, S.H. M.Kn. with
Rakyat Indonesia (Persero), Tbk. yang PT Bank Rakyat Indonesia (Persero), Tbk,
terakhir diperbarui dengan SPPK and the latest renewal with SPKK
No. R.854/KC-IX/ADK/12/2015 tanggal No. R.854/KC-XI/ADK/12/2015 dated
30 Desember 2015, VU memperoleh kredit December 30, 2015, VU obtained a credit
dalam bentuk: facility in the form of:
- Kredit Modal Kerja (KMK) I sebesar - Working Capital Credit (WCC) I
Rp20.860.000 yang telah berakhir pada amounting to Rp20,860,000 which
tanggal 30 Nopember 2016. Saldo already due on November 30, 2016. The
pinjaman pada 31 Desember 2016 outstanding balance of bank loans as of
sebesar Rp63. December 31, 2016 is amounting to
Rp63.
- Bank Garansi sebesar Rp50.000.000 - The bank guarantee amounting
sebagai jaminan pembelian semen dari Rp50,000,000 for which will be due on
Perseroan yang akan jatuh tempo pada August 15, 2017. As of December 31,
tanggal 15 Agustus 2017. Saldo fasilitas 2016, the balance of bank guarantee is
bank garansi pada 31 Desember 2016 RpNil.
sebesar RpNihil.
Fasilitas kredit tersebut dibebani bunga The interest rate of the facility is 12.5% per
sebesar 12,5% per tahun sampai dengan annum up to July 11, 2016 and 10,25% per
11 Juli 2016 dan 10,25% per tahun efektif annum effective on July 12, 2016.
sejak 12 Juli 2016.

- 80 -


VU juga wajib memberikan agunan berupa: VU is also obliged to give a warrant of:
- Piutang usaha perdagangan semen - The account receivable of cement
senilai Rp10.000.000. trading amounting to Rp10,000,000.
- Persediaan senilai Rp1.000.000 yang - The inventory amounting to
diikat dengan jaminan fidusia. Rp1,000,000 with fiduciary collateral.
- 369 unit truk senilai Rp64.710.000. - 369 units truck amounting to
Rp64,710,000.
- Sertifikat tanah No. 2 dan No. 3 yang - Certificates of land with Nos. 2 and 3
terletak di Bangkalan Madura senilai located in Bangkalan Madura
Rp900.000. amounting to Rp900,000.
VU mendapatkan fasilitas Surat Kredit VU also get Import Letter of Credit Facility
Berdokumen Dalam Negeri (SKBDN) akibat (SKBDN) as a result of Cement trading with
dari transaksi operasional perdagangan VUB. As of December 31, 2016, the
semen dengan VUB. Pada outstanding SKBDN amounting to
tanggal 31 Desember 2016, SKBDN yang Rp18,001,045.
belum dibayarkan adalah sebesar
Rp18.001.045.
PT Varia Usaha Lintas Segara (VULS) PT Varia Usaha Lintas Segara (VULS)
memperoleh fasilitas kredit modal kerja dari obtained working capital credit facility from
PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Rakyat Indonesia (Persero) Tbk
yang telah beberapa kali diperpanjang which has been extended several times up
sampai dengan 16 Agustus 2017 dengan to August 16, 2017 with Deed No 49 dated
Akta No 49 tanggal 21 Oktober 2016 . October 21, 2016. The facility bears
Fasilitas ini memiliki bunga 12.5% per tahun interest of 12.5% per annum and secured
dan dijamin dengan piutang usaha with trade receivables totaling to
sejumlah 35,000,000 dan akte hipotek
Rp 35,000,000 and ship mortgage deed
kapal dengan nilai penjaminan
with guarantee value of Rp 9,463,000.
Rp 9.463.000.
Fasilitas ini mensyaratkan VULS untuk This facility requires VULS to maintain
memelihara rasio keuangan tertentu dan certain financial ratio and obtain bank
memperoleh persetujuan bank jika VULS approval if VULS receive new loans from
menerima pinjaman baru dari bank atau bank or other financial institutions, grants
lembaga keuangan lainnya, mengikatkan diri guarantees or pledges its assets to any
sebagai penjamin utang atau menjaminkan other parties. As of December 31, 2016,
harta kekayaannya kepada pihak lain. Pada one of the financial ration was not met and
tanggal 31 Desember 2016, salah satu rasio VULS has obtained waiver letter from
keuangan tidak terpenuhi dan VULS telah PT Bank Rakyat Indonesia (Persero) Tbk.
mendapatkan waiver letter dari PT Bank
Rakyat Indonesia (Persero) Tbk.
Jumlah utang bank pada tanggal The outstanding loan from this facility as of
31 Desember 2016 yang terkait dengan December 31, 2016 amounted to
fasilitas ini adalah sejumlah Rp7.246.893. Rp7,246,893.
Pembayaran utang bank terkait dengan Payment of bank loan related to short term
fasilitas jangka pendek dengan PT Bank facility with PT Bank Rakyat Indonesia
Rakyat Indonesia (Persero) Tbk pada (Persero) Tbk in 2016 amounted to
periode 2016 adalah sejumlah Rp31,397,395.
Rp31.397.395.
Annual Report 2016

497
- 81 -
PT Bank Negara Indonesia (Persero) Tbk PT Bank Negara Indonesia (Persero) Tbk
1. Perseroan 1. The Company
Pada 17 April 2012, Perseroan On April 17, 2012, the Company entered
menandatangani perjanjian pemberian into an agreement for supply and
fasilitas pembukaan Letter of Credit (LC) management for Letter of Credit (LC) with
dengan PT Bank Negara Indonesia PT Bank Negara Indonesia (Persero) Tbk
(Persero) Tbk dengan maksimum fasilitas for a maximum facility of USD25,000,000.
sebesar USD25.000.000. Berdasarkan On April 23, 2014, the facilities have been
surat persetujuan perubahan perjanjian extended up to April 16, 2017. The
tanggal 23 April 2014, fasilitas ini Company is being charged with an interest
diperpanjang sampai dengan tanggal as stipulated in the agreement.
16 April 2017. Perseroan dikenakan bunga
sebagaimana yang diatur di dalam
perjanjian.
nilai LC yang telah diterbitkan dan masih outstanding LC amounts under this facility
berjalan berdasarkan fasilitas ini adalah were EURNil, and EUR1,438,114,
masing-masing EURNihil, dan EUR1.438.114. respectively. There are no amounts under
Tidak terdapat fasilitas LC yang telah jatuh this facility, which are due and unpaid as of
tempo dan masih belum dibayar pada tanggal December 31, 2016 and 2015.
31 Desember 2016 dan 2015.
Fasilitas ini mensyaratkan Perseroan untuk This facility requires the Company to
memelihara rasio keuangan tertentu dan maintain certain financial ratios and
kewajiban untuk melapor antara lain jika requires the Company to report the
adanya perubahan modal dan susunan changes in share capital and management
pengurus, melakukan investasi saham baru, structure, any new investment in shares,
memperoleh fasilitas kredit dan/atau new loan facility and/or borrowing and
pinjaman dari pihak lain dan melakukan dividends payment. As of
pembayaran dividen. Pada tanggal December 31, 2016 and 2015, the
31 Desember 2016 dan 2015, Perseroan Company is in compliance with all of the
telah memenuhi semua rasio keuangan financial covenants.
yang dipersyaratkan.
Pada tanggal 17 April 2012, Perseroan On April 17, 2012, the Company entered
menandatangani perjanjian fasilitas into a forex line facility agreement with
valuta asing dengan PT Bank Negara PT Bank Negara Indonesia (Persero) Tbk
Indonesia (Persero) Tbk dengan nilai for a maximum facility amount of
fasilitas maksimum sebesar setara USD10,000,000, due on April 16, 2013.
USD10.000.000, dengan jangka waktu The facility has been extended up to
sampai dengan 16 April 2013. Fasilitas April 16, 2017 to include derivative line
tersebut diperpanjang sampai dengan facility with maximum forex and derivative
tanggal 16 April 2017 dimana diberikan facility amount of USD134,705,882. As of
tambahan fasilitas derivatif dengan nilai December 31, 2016 and 2015, the
fasilitas maksimum sebesar setara Company did not use this facility.
USD134.705.882. Pada tanggal
31 Desember 2016 dan 2015, fasilitas ini
belum digunakan.
Berdasarkan Surat Perjanjian Kredit Based on the Letter of Credit Agreement for
No. 92 pada tanggal 22 April 2016, working capital No. 92 on April 22, 2016,
Perseroan, memperoleh fasilitas kredit the Company obtained working capital loan
modal kerja dari PT Bank Negara Indonesia from PT Bank Negara Indonesia (Persero)
(Persero) Tbk (BNI) dengan jumlah plafond Tbk (BNI) with maximum facility of
maksimum sebesar Rp1.000.000.000 Rp1,000,000,000 with an interest rate set
dengan tingkat bunga ditetapkan sebesar at Bank Indonesia’s 3 month reference rate
suku bunga Bank Indonesia 3 bulan plus 2%. This facility was granted for
ditambah 2%. Fasilitas tersebut diberikan 12 months.
selama jangka waktu 12 bulan.

- 82 -


fasilitas ini belum digunakan. 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. Based on the Letter of Credit Agreement for
2012-130/KMK pada tanggal 28 Agustus Working Capital No. 2012-130/KMK on
2012, entitas anak SP, PT Sepatim August 28, 2012, subsidiary of SP,
Batamtama (SB), memperoleh fasilitas PT Sepatim Batamtama (SB), obtain
kredit modal kerja dari PT Bank Negara working capital loan from PT Bank Negara
Indonesia (Persero) Tbk dengan jumlah Indonesia (Persero) Tbk with maximum
plafond maksimum sebesar Rp4.600.000 facility of Rp4,600,000 with an interest rate
dengan tingkat bunga 13,50% per tahun. of 13.50% p.a. This facility is granted for 12
Fasilitas tersebut diberikan selama jangka months and were most recently extended to
waktu 12 bulan. Fasilitas ini terakhir kali August 26, 2017. These securities are
diperpanjang kembali sampai dengan secured by the fiduciary of cement and
tanggal 26 Agustus 2017. Fasilitas sparepart inventories, account receivable
perjanjian bank ini secara fidusia dijamin with age below than 60 days, restricted
dengan persediaan semen dan suku cash and cash equivalents (Note 5), land,
cadang, piutang usaha dengan kriteria umur building, vehicle, machine and bill for the
dibawah 60 hari, kas dan setara kas yang working cooper sludge.
dibatasi penggunaannya (Catatan 5), tanah,
bangunan, kendaraan, mesin serta tagihan
atas pengerjaan cooper sludge.
Utang bank fasilitas kredit modal kerja pada Bank loans from working capital loan facility
31 Desember 2016 adalah sebesar as of December 31, 2016, amounted to
Rp1.253.573. Rp1,253,573.
Pada tahun 2007, SP menandatangani In 2007, SP entered into an agreement for

perjanjian berupa fasilitas pembukaan Letter letters of credit (LC) and foreign exchange
of Credit (LC) dan fasilitas Foreign line facilities with PT Bank Negara
Exchange Line dengan PT Bank Negara Indonesia (Persero) Tbk (Bank Negara
Indonesia (Persero) Tbk (Bank Negara Indonesia) involving maximum facilities
Indonesia) dengan nilai maksimum fasilitas of USD 8,500,000 and USD 5,000,000,
masing-masing sebesar USD 8.500.000 dan respectively. The facilities were most
USD 5.000.000. Fasilitas ini terakhir kali recently extended to April 16, 2017 and
diperpanjang kembali hingga tanggal 16 involve maximum facilities of
April 2017 dengan nilai maksimum fasilitas USD 30,000,000 and USD 5,000,000,
masing-masing sebesar USD 30.000.000 respectively. These facilities are secured by
dan USD 5.000.000. Fasilitas ini dijamin the fiduciary transfer of goods, raw
secara fidusia dengan barang, bahan baku, materials, supporting materials and
bahan pembantu dan suku cadang yang spareparts imported/purchased utilizing
diimpor/dibeli dengan fasilitas ini. these facilities.
Atas setiap pembukaan letter of credit, SP SP is required to make margin deposits of

diwajibkan untuk menyetor margin deposit 10% of the nominal amounts of letters of
sebesar 10% dari nilai nominal letter of credit credit issued under such facilities.
yang diterbitkan.
- 83 -
Annual Report 2016
499
Fasilitas ini mensyaratkan SP untuk These facilities require SP to maintain

memelihara rasio keuangan tertentu dan certain financial ratios and to report
kewajiban melapor apabila terjadi changes in the Board of Commissioners
perubahan susunan Komisaris dan Direksi, and Directors, share capital and
modal dan susunan pemegang saham dan shareholders, and payments of dividends,
melakukan pembayaran dividen, investasi new investment, credit facilities or loans
baru, fasilitias kredit atau pinjaman dari obtained from other parties and submission
pihak lain serta penyampaian laporan of financial statements periodically. As of
keuangan secara berkala. Pada tanggal December 31, 2016, SP fulfilled the
31 Desember 2016, SP dapat memenuhi required financial ratios as mentioned in the
rasio keuangan yang disyaratkan dalam loan agreement. These facilities are
perjanjian. Fasilitas ini dijamin dengan secured by inventory amounting to
persediaan senilai Rp138.000.000. Rp138,000,000.
Pada tanggal 31 Desember 2016, nilai LC As of December 31, 2016, the outstanding
yang telah diterbitkan dan masih berjalan LC amounts under this facility were
berdasarkan fasilitas ini adalah EUR2,571,626 and USD5,641,880. There
EUR2.571.626 dan USD5.641.880. Tidak are no amounts under this facility which are
terdapat fasilitas LC yang telah jatuh tempo due and unpaid as of December 31, 2016.
dan belum dibayar pada tanggal
31 Desember 2016.
3. PT Krakatau Semen Indonesia (KSI) 3. PT Krakatau Semen Indonesia (KSI)
Pada tanggal 29 Juni 2016 dengan Akta On June 29, 2016, Deed No. 125 from
No. 125 dari Muhammad Kholid Artha,S,H., Muhammad Kholid Artha,S.H., Notary in
Notaris di Jakarta, KSI menandatangani Jakarta, KSI signed Working Capital Credit
perjanjian Kredit Modal Kerja dengan with PT Bank Negara Indonesia Tbk for a
PT Bank Negara Indonesia Tbk, maksimum maximum credit facility amounting to
fasilitas kredit perjanjian ini adalah sejumlah Rp25,000,000. The purposes of this facility
Rp25.000.000. Tujuan fasilitas ini adalah is for working capital credit, the loan valid
untuk kredit modal kerja Pabrik Slag Powder, until June 28, 2017 with interest reate
pinjaman ini berlaku sampai dengan dengan 9.75% per annum, subject for review at any
28 Juni 2017 dengan tingkat suku bunga given time. This facility is collateralized with
9,75% per tahun, untuk direviu sewaktu- all assets owned by KSI.
waktu. Agunan atas fasilitas ini adalah
seluruh aset milik KSI.
Utang bank pada tanggal 31 Desember 2016 The loan outstanding as of

terkait dengan fasilitas ini adalah RpNihil. December 31, 2016 amounting to RpNil.
Sapa Vietnam JSC Sapa Vietnam JSC
TLCC menandatangani tiga perjanjian pinjaman TLCC entered into three loan agreements for an
dengan Sapa Vietnam JSC, dengan pokok awal original principal of VND21 billion with Sapa
pinjaman sebesar VND21 miliar, pada tanggal Vietnam JSC, on September 27, August 31, and
27 September 2012 sebesar VND8 miliar, tanggal December 29, 2012 amounting to
31 Agustus 2012 sebesar VND5,5 miliar, dan VND8 billion, VND5.5 billion, and VND7.5
pada tanggal 29 Desember 2012 sebesar VND7,5 billion, respectively. The loans are repaid every
miliar. Pinjaman ini dibayar setiap tiga bulan sejak three months from drawdown date. Interest rate
tanggal pencairan. Tingkat suku bunga berkisar is ranging from 12% to 13% per annum. In 2014,
antara 12% sampai dengan 13% per tahun. Pada all of loan principal has been settled.
tahun 2014, seluruh pokok pinjaman telah
dilunasi.
Pada tanggal 31 Desember 2016 dan 2015 As of December 31, 2016 and 2015, the total
jumlah pinjaman jangka pendek berupa bunga short-term borrowing consists of interests due
pinjaman masing-masing sebesar amounting to VND6,222,444 or Rp3,754,624
VND6.222.444 atau Rp3.754.624 dan and VND6,222,444 or Rp3,898,983,
VND6.222.444 atau Rp3.898.983. respectively.

- 84 -


b. Jangka panjang b. Long-term

2016 2015
Pinjaman bank: Bank loans:
Bank Sindikasi Syndicated Bank
Standard Chartered Bank 917.282.333 1.185.340.608 Standard Chartered Bank
Surat Utang Jangka Menengah 64.807.361 - Medium Term Notes (MTN)
PT Bank Pembangunan Daerah PT Bank Pembangunan Daerah
Jaw a Timur, Tbk 27.481.328 - Jaw a Timur, Tbk
PT Bank ICBC Indonesia 18.520.000 - PT Bank ICBC Indonesia
PT Bank Central Asia Tbk 14.307.500 - PT Bank Central Asia Tbk
PT Bank DBS Indonesia 791.842 - PT Bank DBS Indonesia
PT Bank DKI 135.000 - PT Bank DKI
Pihak berelasi Related parties:
Bank Sindikasi Syndicated Bank
PT Bank Mandiri PT Bank Mandiri
(Persero) Tbk 2.825.775.671 2.457.988.279 (Persero) Tbk
PT Bank Mandiri PT Bank Mandiri
(Persero), Tbk 31.900.000 - (Persero), Tbk
Jumlah 4.879.102.338 3.660.844.280 Total
Dikurangi bagian yang akan
jatuh tempo dalam satu tahun (866.543.711) (630.043.935) Less: current portion
Biaya transaksi yang
belum diamortisasi (24.107.781) (34.119.446) Unamortized transaction cost
Bagian jangka panjang 3.988.450.846 2.996.680.899 Long-term liabilities
Bank Sindikasi - Standard Chartered Bank Syndicated Banks - Standard Chartered

Bank
Thang Long Cement Joint Stock Company Thang Long Cement Joint Stock Company
(TLCC) (TLCC)
Pada tanggal 28 April 2014, TLCC On April 28, 2014, TLCC entered into a
menandatangani perjanjian pinjaman sindikasi syndicated loan agreement with Standard
dengan Standard Chartered Bank, PT Bank Chartered Bank, PT Bank Mandiri (Persero) Tbk
Mandiri (Persero) Tbk dan Sumitomo Mitsui Bank and Sumitomo Mitsui Bank Corporation
Corporation sebesar USD99.000.000 dan VND21 amounting to USD99,000,000 and VND21
miliar. Kredit investasi ini dijamin dengan: (i) billion. The investment credit is secured by: (i)
sponsor undertaking and Off-take Agreement Sponsor Undertaking and Off-take Agreement
dengan PT Semen Indonesia (Persero) Tbk; (ii) with PT Semen Indonesia (Persero) Tbk; (ii) All
seluruh aktiva tetap TLCC; (iii) semua rekening fixed assets of TLCC; (iii) all TLCC Onshore-
dalam negeri TLCC, piutang ekspor dan hingga Accounts, export receivables and up to 50% of
50% dari piutang dalam negeri; (iv) saham domestic receivables; (iv) Geleximco’s shares at
Geleximco di TLCC dengan nilai nominal sebesar TLCC amounting to VND 500 billion. This loan
VND500 miliar. Pinjaman ini akan jatuh tempo will mature in 2019 with the option to extend for
pada tahun 2019 dengan opsi perpanjangan another 1 year. The interest rate is set at Libor-
selama 1 tahun. Tingkat bunga ditetapkan 3 month plus 3.3% for USD99,000,000 and cost
sebesar Libor-3 bulan ditambah 3,3% untuk of fund plus 3.3% for VND21 billion.
USD99.000.000 dan biaya bunga ditambah 3,3%
untuk VND21 miliar.
- 85 -
Annual Report 2016
501
Fasilitas ini mensyaratkan TLCC untuk This facility requires TLCC to maintain certain
mempertahankan rasio keuangan tertentu. Pada financial ratios. As of December 31, 2016 and
tanggal 31 Desember 2016 dan 2015 TLCC tidak 2015, certain ratios were not met and TLCC has
dapat memenuhi beberapa rasio keuangan dan received waiver letter on the related covenants
TLCC telah menerima waiver letter dari Bank from the Syndicated Bank.
Sindikasi untuk persyaratan rasio tersebut.
Sehubungan dengan perjanjian pinjaman In relation to the syndicated loan agreement

sindikasi diatas, pada tanggal 20 Juni 2014, above, on June 20, 2014, the Company signed
Perseroan menandatangani perjanjian sponsor a sponsor undertaking agreement with Standard
undertaking agreement dengan Standard Chartered Bank (Vietnam) Limited. This
Chartered Bank (Vietnam) Limited. Perjanjian ini agreement requires the Company to own at least
mensyaratkan Perseroan untuk memiliki paling 70% of TLCC issued shares and a majority of the
sedikit 70% saham TLCC dan hak suara voting rights attaching to all issued shares of
mayoritas atas saham yang dikeluarkan TLCC, TLCC, hold directly or indirectly management
memiliki pengendalian secara langsung atau control and right to appoint majority of the
tidak langsung atas manajemen, hak untuk members of the Board of Directors, not dispose
menunjuk mayoritas Dewan Direksi, tidak of any of its shares in TLCC which cause the
melepaskan kepemilikan di TLCC yang akan ownership to be below 70%, exercise its rights
menyebabkan kepemilikan Perseroan di TLCC and obligations under the off take agreement,
kurang dari 70%, melaksanakan hak dan demand payment or repayment shareholder
kewajiban Perseroan sesuai dengan off take loan in accordance to the requirements as
agreement, meminta pembayaran dari TLCC stipulated in the loan agreement.
sehubungan dengan pinjaman dari pemegang
saham (shareholder loan) sesuai dengan
persyaratan dalam perjanjian.
Sampai dengan tanggal 31 Desember 2016 dan As of December 31, 2016 and 2015, total
2015, jumlah pinjaman bank sindikasi ini masing- outstanding syndicated bank loan amounted to
masing sebesar Rp917.282.333 dan Rp917,282,333 and Rp1,185,340,608,
Rp1.185.340.608. Pembayaran utang bank respectively. The payment of bank loan related
terkait dengan fasilitas ini pada tahun 2016 with this facility in 2016 amounting to
adalah sebesar Rp513.309.140. Rp513,309,140.
Surat Utang Jangka Menengah Medium Term Notes
PT Semen Indonesia Beton (SIB) dan Entitas PT Semen Indonesia Beton (SIB) and its
Anak Subsidiary
Pada bulan Agustus 2015, entitas anak SIB, In August 2015, VUB, a subsidiary of SIB, VUB,
VUB, telah menerbitkan Medium Term Notes I issued a Medium Term Notes I Varia Usaha
Varia Usaha Beton Seri A ("MTN"). MTN I Seri A Beton Series A ("MTN"). MTN I Series A is a
tersebut merupakan sebagian dari jumlah portion of principal MTN with a maximum value
keseluruhan nilai pokok MTN yaitu maksimal of Rp100,000,000, published in several serials.
sebesar Rp100.000.000, yang diterbitkan secara The principal amount of MTN I Series A offered
berseri. Jumlah pokok MTN I Seri A yang amounted to Rp30,000,000 with interest rate of
ditawarkan adalah sebesar Rp30.000.000 11.45% p.a and will be due on August 20, 2018.
dengan tingkat bunga tetap sebesar 11,45% per Interest payment of MTN I Series A paid every
tahun dan akan jatuh tempo pada tanggal 3 months. The first interest payment of MTN I
20 Agustus 2018. Pembayaran bunga MTN I Series A is on November 20, 2015 and the last
Seri A dibayarkan setiap 3 bulan sekali. payment will pay with the principal repayment of
Pembayaran pertama bunga MTN I Seri A MTN I Series A.
dilakukan pada tanggal 20 November 2015 dan
pembayaran terakhir bersamaan dengan
pelunasan pokok MTN I Seri A tersebut.
Berdasarkan Akta Notaris No.107, 109 dan 110 Based on Notarial Deed Nos. 107,109 and 110
tanggal 19 Agustus 2015 oleh Arry Supratno, on August, 19 2015 by Arry Supratno, SH.
SH., notaris di Jakarta, VUB menunjuk Notary in Jakarta, VUB appointed PT Mandiri
PT Mandiri Sekuritas sebagai Arranger, Sekuritas as an Arranger, PT Kustodian Sentra
PT Kustodian Sentral Efek Indonesia (KSEI) Efek Indonesia (KSEI) as a Paying Agent, PT
sebagai Agen Pembayaran, PT Bank Mandiri Bank Mandiri (Persero), Tbk as a Monitoring
(Persero), Tbk sebagai Agen Pemantauan untuk Agent for MTN I Series A.
MTN I Seri A.
- 86 -


Nilai Surat Utang Jangka Menengah yang telah The Medium Term Notes issued as of
diterbitkan pada tanggal 31 Desember 2016 December 31, 2016 amounted to
adalah sebesar Rp64.807.361. Pembayaran Rp64,807,361. The payment of bank loan
utang bank terkait dengan fasilitas ini pada tahun related with this facility in 2016 amounting to
2016 adalah sebesar Rp3.011.506. Rp3,011,506.
MTN I Seri A dijamin dengan piutang usaha MTN I Series A secured by trade receivables to
dengan nilai penjaminan sebesar Rp36.000.000. the value of guarantee of Rp36,000,000.
PT Bank Pembangunan Daerah Jawa Timur PT Bank Pembangunan Daerah Jawa Timur
Tbk Tbk
PT Varia Usaha (VU) PT Varia Usaha (VU)
Berdasarkan Akta perjanjian kredit dan Based on Loan Agreement and

pengakuan utang No. 21 tanggal 2 Oktober 2014 Acknowledgment of Debt No. 21 dated October
dari Yatiningsih, SH, MH, Notaris di Surabaya, 2, 2014 from Yatiningsih, SH, MH, Notary in
dan melalui Surat Permohonan untuk Surabaya and through an application for a
memperoleh Fasilitas Kredit Investasi yang proposed investment credit facility by VU
diajukan oleh VU No.00997.121/KU.01.01/04.14 No. 00997.121 / KU.01.01 / 04.14 on April 2,
tanggal 2 April 2014, bahwa PT Bank 2014, that PT Bank Pembangunan Daerah
Pembangunan Daerah Jawa Timur, Tbk telah Jawa Timur,Tbk gives credit to VU with a
memberikan kredit kepada VU dengan pagu maximum amount of Rp49,500,000 with an
kredit sebesar Rp49.500.000 dengan tingkat interest rate of 11.25% per annum, subject to
bunga 11,25% per tahun, untuk direviu review at any given time. This facility expires on
sewaktu-waktu. Fasilitas ini berakhir pada October 1, 2019 and is secured by a fiduciary
tanggal 1 Oktober 2019 dan dijamin dengan on 113 Vehicle trucks, dump truck and bulk
jaminan fidusia atas 113 unit Kendaraan truk carriers with a guarantee amount of
bak, dump truck dan bulk carrier dengan nilai Rp37,800,000.
penjaminan sebesar Rp37.800.000.
Fasilitas ini mensyaratkan VU untuk menjaga These facilities require VU to maintain the
arus kas yang positif, memberitahukan kepada positive cash flow, inform the bank if VU grants
bank jika mengikatkan diri sebagai penjamin guarantees or pledges its assets to any other
utang atau menjaminkan harta kekayaannya parties, pay the dividends to the shareholders
kepada pihak lain, melakukan pembayaran and make an high risk investment in other
dividen kepada pemegang saham dan melakukan Company. As of December 31, 2016, VU has
investasi pada perusahaan lain yang berisiko fullfilled financial ratio required by the loan
tinggi. Pada tanggal 31 Desember 2016, VU telah agreement.
memenuhi rasio keuangan yang diatur dalam
perjanjian kredit.
Saldo pinjaman pada 31 Desember 2016 adalah The balance of the loan as of December 31,
sejumlah Rp27.481.328. Pembayaran utang 2016 amounted to Rp27,481,328. The payment
bank terkait dengan fasilitas ini pada tahun 2016 of bank loan related with this facility in 2016
adalah sebesar Rp1.653.745. amounted to Rp1,653,745.
PT Bank CIMB Niaga Tbk PT Bank CIMB Niaga Tbk
PT United Tractors Semen Gresik (UTSG) PT United Tractors Semen Gresik (UTSG)
Pada tanggal 19 Agustus 2010, UTSG On August 19, 2010, UTSG obtained credit
memperoleh fasilitas kredit investasi ketiga facility amounting to Rp94,150,000 which was
sebesar Rp94.150.000 yang digunakan untuk used to buy heavy equipments, and its was
membeli alat berat, dan terealisasi dalam lima realized in five withdrawal. Balance of bank loan
kali penarikan. Saldo utang bank pada 31 as of December 31, 2015 amounting to
Desember 2015 sebesar Rp2.534.178 Rp2,534,178 represent fourth and fifth
merupakan penarikan keempat dan kelima, dan withdrawal and it was settled in 2016.
telah dilunasi pada tahun 2016.
- 87 -
Annual Report 2016
503
PT Industri Kemasan Semen Gresik (IKSG) PT Industri Kemasan Semen Gresik (IKSG)
Pada tanggal 28 Januari 2016, IKSG On January 28, 2016, IKSG obtained an
memperoleh fasilitas kredit investasi untuk investment credit facility to purchase 1 line
pembelian 1 line mesin jenis tuber dan bottomer machine type tuber and bottomer from PT Bank
dari PT Bank CIMB Niaga Tbk dengan jumlah CIMB Niaga Tbk with a maximum credit amount
maksimum sebesar Rp25.200.000 dengan of Rp25,200,000 with a credit period of 5 years
jangka waktu 5 tahun atau 60 kali angsuran dan until April 13, 2021 or 60 times installments. The
akan jatuh tempo pada tanggal 13 April 2021. loan bears interest for the year 2016 at effective
Tingkat suku bunga efektif pinjaman untuk tahun rate at 10.5% per annum.
2016 adalah 10,5% per tahun.
Pinjaman ini dijamin dengan mesin dan peralatan These loans are collateralized by certain
tertentu (Catatan 15) dan juga piutang usaha machineries and equipment (Note 15) and also
(Catatan 7). trade accounts receivables (Note 7).
Perjanjian pinjaman tersebut mencakup The loan agreements contain certain covenants
persyaratan tertentu antara lain tanpa which among others, without prior approval from
persetujuan dari bank terlebih dahulu, IKSG tidak the bank, IKSG is not allowed to change the
diizinkan untuk mengubah susunan dewan composition of the board of commissioners,
direksi, komisaris dan pemegang saham, directors and shareholders, incur additional
menambah utang selain utang yang sudah ada, indebtedness, except those for ordinary
kecuali dalam rangka menjalankan usaha, dan business and payment of dividends to
melakukan pembayaran dividen kepada stockholders exceed 60% of the Company’s
pemegang saham melebihi 60% dari keuntungan profit for every period.
tiap periode.
Pada tanggal 31 Desember 2016, nilai saldo atas As of December 31, 2016, outstanding balance
fasilitas tersebut adalah sebesar Rp20.443.800. of the facility amounted to Rp20,443,800. The
Pembayaran utang bank terkait dengan fasilitas payment of bank loan related with this facility in
ini pada tahun 2016 adalah sebesar 2016 amounted to Rp3,145,200.
Rp3.145.200.
PT Bank ICBC Indonesia PT Bank ICBC Indonesia
Pada tanggal 21 Oktober 2016 berdasarkan Akta On October 21, 2016, based on Notarial Deed
Notaris No 88 oleh Sitaresmi Puspadewi No. 90 by Sitaresmi Puspadewi Subianto S.H,
Subianto S.H, Notaris di Jakarta, SIB Notary in Jakarta, SIB obtained credit facilities
memperoleh fasilitas Pinjaman Cicilan Tetap Fixed Loan On installment (PTI) with maximum
(PTI) dengan maksimum fasilitas kredit sejumlah credit facility of Rp100,000,000 with the
Rp100.000.000 dengan ketersediaan fasilitas availability for 6 months. The agreement has
selama 6 bulan. Perjanjian ini berlangsung untuk maturity period of 72 months from the date of
jangka waktu 72 bulan sejak tanggal perjanjian. agreement.
Fasilitas kredit ini digunakan untuk pembiayaan This credit facility is for financing purchases of
pembelian alat berat, kendaraan, mesin dan heavy equipment, vehicles, machinery, and
peralatan pendukung terkait dengan batching ancillary equipment for the acquisition of
plan. Tingkat suku bunga yang diterapkan batching plan. The interest rate is 10.25% p.a
sebesar 10,25% p.a dan dapat berubah and can be changed any time in accordance
sewaktu-waktu sesuai dengan ketentuan yang with applicable regulations.
berlaku.
Jaminan yang diberikan SIB atas pinjaman ini The collaterals for this facility are batching plant,
adalah batching plant, kendaraan dan alat berat vehicles, and new heavy equipment which will
yang baru akan dibeli dengan nilai minimum be purchased with minimum value of 125% of
125% dari limit PTI. the limit PTI.

- 88 -


Fasilitas ini mensyaratkan SIB untuk This facility requires SIB to notify the bank if
memberitahukan kepada bank jika ada there are additional loans from third parties and
tambahan pinjaman dari pihak ketiga, dan dividend payment. In addition, SIB had to get
pembayaran dividen. Selain itu, SIB juga harus approval from the bank if provides loans
mendapatkan persetujuan dari bank jika (outside of normal course business) or provide
memberikan pinjaman (diluar kegiatan usaha guarantees to other parties. As of December 31,
normal) atau memberikan jaminan kepada pihak 2016, SIB has fulfilled all of the requirement in
lain. Pada tanggal 31 Desember 2016, SIB telah the agreement.
memenuhi semua persyaratan yang diatur dalam
perjanjian kredit ini.
Utang bank pada tanggal 31 Desember 2016 Outstanding bank loan as of December 31,
terkait dengan fasilitas ini adalah sebesar 2016 related to this facility amounted to
Rp18.520.000. Belum terdapat pembayaran Rp18,520,000. There has been no payment
terkait dengan fasilitas ini pada tahun berjalan. related with this facility in the current period.
Pada tanggal 21 Oktober 2016 berdasarkan Akta On October 21, 2016 based on Notarial Deed
Notaris No.90 oleh Sitaresmi Puspadewi No. 90 by Sitaresmi Puspadewi Subianto S.H,
Subianto S.H, Notaris di Jakarta, menyatakan Notary in Jakarta, PTDA (short term borrowing)
bahwa fasilitas kredit PTDA (pinjaman jangka and PIT facilities were secured by the fiduciary
pendek) dan PIT dijamin secara fidusia dengan on inventories, trade accounts receivable and
persediaan, piutang dagang dan klaim yang others claims with guarantee value up to
dimiliki sampai dengan nilai penjaminan sampai Rp125,000,000.
dengan sebesar Rp125.000.000.
PT Bank Central Asia, Tbk PT Bank Central Asia, Tbk
PT Semen Indonesia Beton (SIB) dan Entitas PT Semen Indonesia Beton (SIB) and its
Anak Subsidiary
Berdasarkan Perjanjian Kredit Based on the Credit Agreement

No. 0484/SPPK/0018/2014 tanggal 23 April 2014 No. 0484/SPPK/0018/2014 dated April 23, 2014
yang telah dilegalisasi oleh Notaris Sitaresmi which has been legalized by Notary Sitaresmi
Puspadewi Subianto, S.H., dengan Akta No. 16 Puspadewi Subianto, S.H., with the number Act.
tanggal 9 Juni 2014, entitas anak dari SIB, 16 on June 9, 2014, a subsidiary from SIB, VUB
VUB memperoleh Fasilitas kredit investasi obtained Investment Credit Facility with the
dengan tujuan renovasi bangunan, pembelian purpose of building renovation, purchase of
mesin produksi, alat berat, kendaraan dan alat production machine, heavy equipment, vehicles
produksi. Jumlah maksimum fasilitas sebesar and means of production with maximum
Rp42.000.000. Fasilitas ini telah diperpanjang facilities of Rp42,000,000. This facility has been
berdasarkan Surat Pemberitahuan Pemberian extended by the Notice of Credit No.
Kredit No.3330/SPPK/0018/2015 tanggal 29 Juni 3330/SPPK/0018/2015 date June 29, 2015
2015 yang menyatakan jangka waktu kredit stating the credit period on June 24, 2014 until
24 Juni 2014 sampai 24 Juni 2018. Tingkat suku June 24, 2018. Interest rate for this facility is
bunga terhadap pinjaman ini adalah 11% per 11% per annum, subject for review at any given
tahun, untuk direviu sewaktu-waktu. time.
Agunan kredit atas perjanjian tersebut, antara The Collateral of credit on the agreement, are:
lain:
a. Sebidang tanah dengan HGB No. 20, Desa a. A piece of land with HGB No. 20,
Pringgabaya, Lombok Timur, Nusa Pringgabaya Village, East Lombok, Nusa
Tenggara Barat, seluas 16.546 m2 atas Tenggara Barat, covering an area of
nama VUB dengan bangunan di atasnya. 16,546 m2 in the name of VUB with
buildings on it.
b. Beberapa mesin, alat berat, kendaraan b. Some machines, heavy equipment, vehicle
produksi dan peralatan produksi. production and production equipment.
c. Piutang minimal Rp8.000.000. c. Minimum trade receivables of Rp8,000,000
- 89 -
Annual Report 2016
505
Fasilitas ini mensyaratkan VUB untuk menjaga These facilities require the VUB to maintain
rasio keuangan, memberitahukan kepada bank financial ratio, loan obtained from other parties,
apabila VUB melakukan tambahan pinjaman, changes of Board of Directors and
melakukan pengubahan pengurus, dan shareholders. As of December 31, 2016, VUB
melakukan perubahan pemegang saham. Pada has fullfilled of the requirement stated in the
tanggal 31 Desember 2016, VUB telah loan agreement.
memenuhi persyaratan yang diatur dalam
perjanjian kredit.
Pada tanggal 31 Desember 2016, nilai saldo As of December 31, 2016, outstanding balance
atas fasilitas tersebut adalah sebesar of the facilities amounted to Rp14,307,500. The
Rp14.307.500. Pembayaran utang bank terkait payment of bank loan related with this facility for
dengan fasilitas ini pada tahun 2016 adalah 2016 amounted to Rp11,279,121.
sebesar Rp11.279.121.
PT Bank DBS Indonesia PT Bank DBS Indonesia
PT Semen Indonesia Beton (SIB) dan Entitas PT Semen Indonesia Beton (SIB) and Its
Anak Subsidiary
Berdasarkan Perjanjian Fasilitas Perbankan Based on Banking Facility Agreement

No. 082/STC-DBSI/III/2012 tanggal 1 Maret No. 082/STCDBS/III/2012 dated March 1, 2012
2012 dan ketentuan Pasal 2 Perjanjian Fasilitas and Article 22 from Banking Facility Agreement
Perbankan No. 62 tanggal 27 Mei 2013 oleh No. 62 dated May 27, 2013 by Notary Siti Nurul
Notaris Siti Nurul Yuliami, S.H., M.Kn,. VUB Yuliami, S.H., M.Kn,. VUB obtained loan facility
memperoleh fasilitas kredit dengan jumlah with a maximum value of Rp40,000,000 from
maksimum sebesar Rp40.000.000 dari PT Bank PT Bank DBS Indonesia.
DBS Indonesia.
Fasilitas ini telah mengalami beberapa kali This facility has been amended several times,
perubahan, berdasarkan Perubahan dan based on the changes and the affirmation of
Penegasan Kembali atas Perjanjian Fasilitas Return on Banking Facility Agreement
Perbankan No. 011/PFPA-DBSI/V/1- No. 011 / PFPA-DBSI / V / 1-2 / East / 2016
2/East/2016 tanggal 24 Mei 2016 atas dated May 24, 2016 on changing the limit to
perubahan plafond menjadi sebesar Rp52,857,096. Loan maturity date is 3 years
Rp52.857.096. Jangka waktu fasilitas adalah 3 from each of drawdown date.
tahun dari tiap tanggal penarikan.
Pinjaman ini dijamin dengan fidusia mesin 1 This loan is secured by fiduciary on machine 1
dengan nilai penjaminan sekurang-kurangnya to guarantee value for Rp43,750,000, fiduciary
Rp43.750.000, fidusia mesin 2 dengan nilai on machine 2 to guarantee value for
penjaminan sekurang-kurangnya Rp31.250.000, Rp31,250,000, and fiduciary on receivable to
dan fidusia piutang dengan nilai penjaminan guarantee value for Rp50,000,000.
sekurang-kurangnya Rp50.000.000.
Fasilitas ini mensyaratkan VUB untuk menjaga This facility requires VUB to maintain certain
rasio keuangan tertentu, tanpa persetujuan dari financial ratios, without any consent of the bank,
bank, VUB tidak akan mengumumkan dan atau VUB will not declare or pay dividend, grants
membayar dividend, mengikatkan diri sebagai guarantees or pledges its assets to any other
penjamin terhadap pihak ketiga, dan megajukan parties, and filed for banckruptcy. As of
permohonan pailit. Pada tanggal 31 Desember December 31, 2016, VUB has fulfilled all the
2016, VUB telah memenuhi semua persyaratan requirements stipulated in the agreements.
yang diatur dalam perjanjian.
Pada tanggal 31 Desember 2016, nilai saldo atas As of December 31, 2016, the outstanding
fasilitas tersebut adalah sebesar Rp791.842. balance of the facility amounting to Rp791,842.
Pembayaran utang bank terkait dengan fasilitas The payment of bank loan related with this
ini pada tahun 2016 adalah sebesar Rp2.094.012. facility for 2016 amounted to Rp2,094,012.

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PT Bank DKI PT Bank DKI
PT Varia Usaha (VU) dan Entitas Anak PT Varia Usaha (VU) and its Subsidiaries
Berdasarkan Akta Notaris No. 2 mengenai Based on the Deed No. 2 of the investment
perjanjian kredit investasi tanggal 7 Januari 2014 credit agreement dated January 7, 2014 by Dr.
oleh Dr. Slamet Wahjudi, SH., M.Kn., notaris di Slamet Wahyudi, SH., M.Kn., notary in Gresik,
Gresik, entitas anak VU, PT Varia Usaha Bahari subsidiary of VU, PT Varia Usaha Bahari
(VUBA), memperoleh fasilitas kredit investasi (VUBA) obtained an investment credit facility
dari PT Bank DKI dengan tingkat bunga 10,25% from PT Bank DKI with an interest rate of
per tahun dan plafond maksimal Rp5.000.000. 10.25% per year and a maximum ceiling
Atas fasilitas pinjaman ini dijamin dengan 10 unit Rp5,000,000 and will be due on January 7,
truk dengan nilai penjaminan sebesar 2017. This loan facility is secured by 10 trucks
Rp7.100.000 dan dituangkan dalam Akta Notaris to guarantee value for Rp7,100,000 and forth in
No. 4 mengenai jaminan fidusia tanggal 7 Deed No. 4 of fiduciary dated January 7, 2014
Januari 2014 oleh notaris yang sama. by the same notary.
Jangka waktu kredit selama 3 tahun jatuh tempo The loans terms of 3 years and will be due at
pada tanggal 7 Januari 2017. January 7, 2017.
VUBA diharuskan untuk mendapatkan VUBA requires to get approval from bank
persetujuan bank terkait dengan perubahan related with changing of Board of Directors and
sususan pengurus dan pemegang saham, Shareholders, transfer collateral, distribute
memindahtangankan jaminan, membagikan dividend, payment of shareholders loan, grants
dividen, melunasi utang pemegang saham, guarantees or pledges its assets to any other
mengikatkan diri sebagai penjamin utang dan parties and borrow funds from
meminjam dana dari bank/institusi/lembaga bank/institution/other financial institutions.
keuangan lainnya. Pada tanggal tanggal 19 VUBA has received ratification from PT Bank
Oktober 2016, VUBA telah mendapatkan ratifikasi DKI related with approval of changing of
dari PT Bank DKI terkait dengan persetujuan directors and distributing dividend dated
perubahan pengurus dan pembagian dividen. October 19, 2016.
Selain persyaratan tersebut, VUBA juga Beside the above requirements, VUBA also
diharuskan untuk memenuhi rasio keuangan pada need to comply with financial ratio as of
tanggal 31 Desember 2016, dan VUBA telah December 31, 2016 and VUBA already fulfilled
memenuhi persyaratan rasio keuangan tersebut. the requirement related with financial ratio.
Pada tanggal 31 Desember 2016, saldo utang As of December 31, 2016, the balance of loan
bank atas fasilitas ini adalah sebesar from this facility is amounted to Rp135,000. The
Rp135,000. Pembayaran utang bank terkait payment of bank loan related with this facility in
dengan fasilitas ini pada tahun 2016 adalah 2016 amounting to Rp1,668,000.
Bank Sindikasi - PT Bank Mandiri (Persero) Syndicated Banks - PT Bank Mandiri

Tbk (Persero) Tbk
PT Semen Tonasa (ST) PT Semen Tonasa (ST)
Sehubungan dengan pembangunan pabrik In relation to the construction of Tonasa V

semen Tonasa V (“Tonasa V”) dan pembangkit cement plant (“Tonasa V”) and 2x35 megawatt
listrik 2x35 megawatt (“Pembangkit Listrik”), power plants (“Power Plant”), on June 22, 2009,
pada tanggal 22 Juni 2009, ST menandatangani ST entered into a syndicated loan agreement
perjanjian kredit sindikasi dengan PT Bank with PT Bank Mandiri (Persero) Tbk (as Lead
Mandiri (Persero) Tbk (selaku Pimpinan Bank), PT Bank Rakyat Indonesia (Persero)
Sindikasi), PT Bank Rakyat Indonesia Tbk, PT Bank Central Asia Tbk, PT BPD Jatim
(Persero) Tbk, PT Bank Central Asia Tbk, Tbk and PT Bank Sulawesi Selatan (collectively
PT BPD Jatim Tbk, dan PT Bank Sulawesi called “Syndicated Banks”) for a maximum
Selatan (selanjutnya disebut sebagai Bank facility amount of Rp3,547,000,000 or 68% of
Sindikasi) dengan fasilitas kredit maksimum the Tonasa V and Power Plant investment
sebesar Rp3.547.000.000 atau 68% dari jumlah amount.
nilai investasi untuk Tonasa V dan Pembangkit
Listrik.
Annual Report 2016
507
- 91 -
Fasilitas kredit tersebut terdiri dari: These facilities comprise of the following:
1. Fasilitas kredit investasi dengan jumlah 1. Investment credit facility with a maximum
maksimum Rp3.166.000.000. Fasilitas ini facility amount of Rp3,166,000,000. This
termasuk fasilitas NCL dalam bentuk fasilitas facility includes an NCL facility in the form of
LC dan/atau SKBDN. LC and/or SKBDN.
2. Fasilitas kredit investasi bunga masa 2. Credit facility for interest during the
konstruksi sebesar maksimum construction period with a maximum facility
Rp381.000.000. Fasilitas ini hanya dapat amount of Rp381,000,000. This facility is
digunakan untuk melunasi 68% dari beban only to be used for payment of 68% of
bunga selama masa tenggang sebagaimana interest charges during the grace period as
didefinisikan dalam perjanjian kredit sindikasi defined in the syndicated credit agreement.
tersebut.
Fasilitas kredit sindikasi tersebut dijamin dengan The syndicated loan agreement is secured by
aset tetap berupa tanah, bangunan, mesin- ST’s fixed assets comprising of land, buildings,
mesin, dan peralatan milik ST. Fasilitas tersebut machinery and equipment. This facility is also
juga mendapat jaminan berupa corporate guaranteed by a corporate guarantee, a cash
guarantee, cash deficit guarantee, dan cost deficit guarantee, and a cost overrun guarantee
overrun guarantee dari Perseroan. from the Company.
Bank Sindikasi mengenakan bunga The Syndicated Banks charge floating interest
mengambang berdasarkan prime lending rate at prime lending rate of each Syndicated Banks.
dari masing-masing Bank Sindikasi. The loan is repayable in quarterly installments
Pembayaran pokok kredit sindikasi akan starting from September 2013 through June
dilakukan secara cicilan triwulanan mulai 2019.
September 2013 sampai dengan Juni 2019.
Sesuai dengan perjanjian pinjaman sindikasi, ST In accordance with the syndicated loan
dibatasi untuk tidak melunasi antara lain, utang agreement, ST is restricted not to settle, among
yang timbul dari pengumuman dividen dan utang others, payable arising from the declaration of
lain-lain kepada ST sehubungan dengan dividends and other payable to ST in connection
pelaksanaan cash deficit guarantee, sebelum ST with the implementation of the cash deficit
memenuhi ketentuan yang ada dalam perjanjian guarantee, before ST can fulfill clauses in the
kredit sindikasi. syndicated loan agreement.
Sampai dengan tanggal 31 Desember 2016 dan As of December 31, 2016 and 2015, ST has made
2015, ST telah melakukan penarikan pinjaman total drawdown of Rp2,660,000,000. The recorded
sebesar Rp2.660.000.000 dan mengakui utang accrued interest on the syndicated loan, as of
bunga atas pinjaman sindikasi pada tanggal 31 December 31, 2016 and 2015, amounted to
Desember 2016 dan 2015 masing-masing Rp199,041,802 and Rp238,866,962, respectively.
sebesar Rp199.041.802 dan Rp238.866.962.
Tingkat bunga kontraktual untuk pinjaman ini The interest rate for this syndicated loan ranged
sebesar 9,92% hingga 10,36% selama tahun from 9.92% to 10.36% per annum in 2016 and
2016 dan 10,35% hingga 10,36% selama tahun 10.35% to 10.36% per annum in 2015. The
2015. Suku bunga efektif untuk pinjaman ini effective interest rate is 11.20% and 11.19% per
masing-masing sebesar 11,20% dan 11,19% annum in 2016 and 2015, respectively.
selama tahun 2016 dan 2015.
Pinjaman ini dijamin dengan beberapa These loans are collateralized by some of the
persediaan dan aset tetap ST secara pari-pasu ST’s inventories and fixed assets, on a pari-
(Catatan 9 dan 15). passu basis (Notes 9 and 15).
Fasilitas ini mensyaratkan ST untuk memelihara This facility requires ST to maintain certain
rasio keuangan tertentu dan kewajiban melapor financial ratios and to report among others when
antara lain perubahan susunan Dewan Direksi there any changes in the composition of the
dan/atau Komisaris serta susunan modal dan Board of Directors and/or Commissioners, and
pemegang saham ST. Pada tanggal 31 ST’s capital structure and shareholders. As of
Desember 2016 dan 2015, ST telah memenuhi December 31, 2016 and 2015, ST is in
semua rasio keuangan yang dipersyaratkan. compliance with all of the financial covenants.

- 92 -


Saldo utang Bank Sindikasi pada tanggal The syndicated loan outstanding balance as of
31 Desember 2016 dan 2015 masing-masing December 31, 2016 and 2015 amounted to
sebesar Rp1.785.253.475 dan Rp2.134.801.215, Rp1,785,253,475 and Rp2,134,801,215,
dan disajikan secara neto setelah dikurangi respectively and is presented net of an
dengan biaya pinjaman yang belum diamortisasi unamortized cost of loan amounting to
masing-masing sebesar Rp10.565.321 dan Rp10,565,321 and Rp18,437,689 respectively.
Rp18.437.689. Pembayaran utang bank terkait The payment of bank loan related with this
dengan fasilitas ini pada tahun 2016 adalah facility for 2016 amounting to Rp563,874,234.
PT Semen Padang (SP) PT Semen Padang (SP)
Pada tahun 2014, SP dengan PT Bank Mandiri In 2014, SP with PT Bank Mandiri Persero
(Persero) Tbk. melakukan perjanjian kredit (Tbk). entered into syndicated credit agreement
sindikasi berdasarkan Akta Perjanjian No. 12 based on Deed No. 12, dated May 8, 2014. Loan
tanggal 8 Mei 2014. Pinjaman diberikan kepada granted to SP to finance projects with total
SP untuk pembiayaan proyek Indarung VI investment of Indarung VI projects with credit
dengan jangka waktu fasilitas kredit selama 42 term of 42 months and the loan maturity date is
bulan dan tanggal jatuh tempo kredit adalah 8 8 years from the signing date.
tahun sejak tanggal penandatanganan.
Fasilitas kredit yang tersedia maksimum 53% Credit facilities available are at a maximum at
dari total investasi proyek Indarung VI atau 53% of the total Indarung VI project or
sebesar Rp1.950.000.000 yang terdiri dari: amounting to Rp1,950,000,000 consist of:
 Fasilitas kredit investasi pokok dengan   Principal investment credit facility amounting
jumlah maksimum Rp1.754.945.000 dengan maximum to Rp1,754,945,000 with sub-limit
sub limit fasilitas NCL adalah NCL facility of Rp1,000,000,000 or its
Rp1.000.000.000 atau ekuivalennya dalam equivalent in currencies other than Rupiah.
mata uang selain Rupiah.
 Fasilitas kredit investasi bunga selama   Investment credit facility interest during
konstruksi (Interest During Construction) construction with maximum amount of
dengan jumlah maksimum sebesar Rp233,618,000 which was placed in the
Rp233.618.000 yang ditampung dalam escrow account managed with Bank Mandiri
rekening penampungan dan dikelola oleh as escrow agent by maintaining a 53:47
Bank Mandiri selaku escrow agent dengan composition of the loan.
tetap mempertahankan komposisi 53:47 dari
pinjaman.
Suku bunga untuk fasilitas ini berdasarkan time i. Interest rate of this facility is estimated based on
deposit 3 bulan. PT Bank Mandiri Persero (Tbk). three months time deposit. PT Bank Mandiri
membebankan bunga selama konstruksi (KI Persero (Tbk). charged the interest during
IDC) setiap 3 bulan yang akan digunakan construction (KI IDC) every three months which
sebagai dasar pencatatan bunga selama is used as the basis to record the interest
konstruksi dan pengakuan pendapatan bunga expenses during construction and creditor
kreditur. Bunga selama masa konstruksi sebesar interest income recognition. Interest expenses
55% berasal dari self financing tetap harus during construction for 55% comes from self
dibayar oleh Debitur, dan sebesar 45% financing that must be paid by Debtor, and for
dicatatkan sebagai tambahan outstanding 45% recorded as the additional outstanding
fasilitas KI IDC. investment credit facility KI IDC.
ii.
Pada tanggal 31 Desember 2016 dan 2015, iii. As of December 31, 2016 and 2015, the
fasilitas ini telah digunakan sebesar outstanding balance of this facility amounted to
Rp1.000.000.000. Rp1,000,000,000.
- 93 -
Annual Report 2016
509
Jumlah nilai agunan tidak kurang dari 142,8% The amount of collateral is not less than 142.8%
dari total fasilitas kredit yang berupa jaminan of the total credit facility consisting of collateral
fidusia atas bangunan-bangunan, mesin-mesin, in the form of buildings, machinery, equipment
peralatan dan perlengkapan terkait kontrak and related supplies contract Suppliler Package
suplier Paket 1A, Paket 1B, Paket II, Paket III, 1A, Package 1B, Package II, Package III,
Paket IV, Paket V Proyek Indarung VI, tagihan Package IV, Package V, Indarung VI project, bill
rekening penampungan, klaim asuransi, tagihan escrow account, insurance claim, bank
bank garansi dari Kontraktor atau Suplier serta guarantee on the bill of the Contractor or
jaminan fidusia atas bangunan-bangunan, Supplier and Fiduciary on buildings, machinery,
mesin-mesin, peralatan dan perlengkapan equipment and related supplies contract leads
terkait kontrak suplier paket lainnya yang ada other packages available and that there will be
dan yang akan ada di kemudian hari yang at a later date which will be located at the Project
nantinya akan berada di lokasi Proyek Indarung site Indarung VI.
VI.
Fasilitas ini mensyaratkan SP untuk memelihara This facilities require SP to main certain
rasio keuangan tertentu. financial ratios.
Pada tanggal 31 Desember 2016, SP telah As of December 31, 2016, SP fulfilled the
menenuhi seluruh rasio keuangan yang financial ratios as mentioned in the loan
dipersyaratkan dalam perjanjian. agreement.
Saldo utang Bank Sindikasi pada tanggal The syndicated loan balance as of
31 Desember 2016 dan 2015 masing-masing December 31, 2016 and 2015 amounted to
sebesar Rp1.016.414.415 dan Rp289.067.618, Rp1,016,414,415 and Rp289,067,618,
dan disajikan secara neto setelah dikurangi respectively and is presented net of an
dengan biaya pinjaman yang belum diamortisasi unamortized cost of loan amounted to
masing-masing sebesar Rp13.542.460 dan Rp13,542,460 and Rp15,681,757 respectively.
Rp15.681.757. Tidak terdapat pembayaran There is no payment related with these facilities
terkait dengan fasilitas ini pada tahun 2016. in 2016.
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 On June 10, 2016, SG entered into a credit
perjanjian kredit investasi dengan PT Bank investment agreement with PT Bank Mandiri
Mandiri (Persero) Tbk. Fasilitas ini digunakan (Persero) Tbk. The facility is used for funding
untuk pendanaan penyelesaian proyek the completion of Rembang project with
Rembang dengan nilai fasilitas pokok principal facility amount of Rp3,116,000,000
Rp3.116.000.000 ditambah dengan IDC (Interest with additional IDC (Interest During
During Construction) sebesar Construction) amounting to Rp350,000,000 with
Rp350.000.000 dengan grace period dan grace period and withdrawal period maximum
periode penarikan maksimal 18 bulan sejak of 18 months after the Credit Agreement has
penandatanganan Perjanjian Kredit dan jangka signed and the due date of this facility is 10
waktu fasilitas selama 10 tahun sejak perjanjian years after credit agreement. In this agreement
kredit. Dalam perjanjian ini dijelaskan komposisi the funding for the Rembang project is
pembiayaan proyek Rembang yang dibagi composed of 37.43% from self-financing and
menjadi 37.43% yang berasal dari self-financing 62.57% from credit investment.
dan 62,57% dari kredit investasi.
Suku bunga kredit yang digunakan dalam Credit interest rate used in this facility are
fasilitas ini adalah reference rate (suku bunga reference rate (reference interest rate
acuan yang diumumkan oleh Bank Indonesia) announced by Bank Indonesia) plus margin (the
ditambah dengan margin (selisih antara suku gap from last interest rate with reference rate).
bunga awal dengan reference rate). Tingkat suku Effective average interest rate in 2016 is 8.10%.
bunga rata-rata selama 2016 adalah 8,10%.
SG juga berkewajiban untuk membayar upfront  SG also has responsibility to pay upfront fee of
fee sebesar 0,1% yang dihitung dari limit kredit 0.1% from credit limit and paid as proportional
dan dibayarkan secara proporsional per for each withdrawal. The outstanding bank loan
penarikan. Utang bank pada tanggal as of December 31, 2016 amounted to
31 Desember 2016 terkait dengan fasilitas Rp736,512,077.
adalah sebesar Rp736.512.077.




Fasilitas ini mensyaratkan SG untuk memelihara These facilities require SG to maintain certain
rasio keuangan tertentu dan kewajiban untuk financial ratios and require SG to acknowledge
memberitahukan antara lain jika adanya the changes in share capital and management
perubahan modal dan susunan pengurus, structure, any new investment, new loan facility
melakukan investasi baru, memperoleh fasilitas and/or borrowing and dividends payment. As of
kredit dan/atau pinjaman dari pihak lain dan December 31, 2016, SG has met all financial
melakukan pembayaran dividen. Pada tanggal ratios stated in the agreement.
31 Desember 2016, SG memenuhi semua rasio
keuangan yang disyaratkan dalam perjanjian.
PT Varia Usaha (VU) PT Varia Usaha (VU)
Pinjaman Transaksi Khusus (PTK) Special Transactions Loan (STL)

Berdasarkan Akta perjanjian hutang No.39, Based on Deed of Loan Agreement No. 39
tanggal 13 Desember 2012 dari Isy Karimah dated December 13, 2012 from Isy Karimah
Syakir, S.H., M.Kn., notaris di Surabaya yang Syakir, S.H., M.Kn., Notary in Surabaya with
terakhir diperbarui dengan Surat latest changes in the letter of
Perjanjian No.CBG.CBD2/D04.377/2013 agreement No. CBG.CBD2/D04.377/2013
tanggal 21 Nopember 2013, PT Bank Mandiri dated November 21, 2013, PT Bank Mandiri
(Persero) Tbk. telah melakukan penyesuaian (Persero) Tbk has adjusted the term and
ketentuan dan syarat fasilitas atas Pinjaman condition of the limit Special Transaction Loan
Transaksi Khusus (PTK) 2 yang diberikan (STL) facility 2 which has given to VU, the limit
kepada VU sehingga limit pinjaman menjadi of the loan becoming amounting to
sebesar Rp49.218.169 dengan jangka waktu Rp49,218,169 with maturity from June 2013
fasilitas dari Juni 2013 sampai dengan 23 until December 23, 2017. This facility is
Desember 2017. Fasilitas kredit ini dijamin guaranted by 91 trucks with a value amounting
dengan 91 unit truk dengan nilai sebesar to Rp70,311,570. Over that facilities, VU is
Rp70.311.570. Atas fasilitas kredit tersebut VU being charged with interest rate at 10% per
dibebani bunga sebesar 10% per tahun, untuk annum, subject to review at any given time.
direviu sewaktu-waktu.
Saldo pinjaman pada 31 Desember 2016 adalah The outstanding balance as of December 31,
sebesar Rp15.618.169. 2016 amounted to Rp15,618,169.
Berdasarkan akta perjanjian hutang No. 83 Based on Deed of Loan Agreement No. 83
tanggal 15 Desember 2015 dari Yatiningsih, dated on December 15, 2015 from Yatiningsih,
S.H., M.H., Notaris di Surabaya, PT Bank Mandiri S.H., M.H., Notary in Surabaya, PT Bank
(Persero) Tbk, memberikan Pinjaman Transaksi Mandiri (Persero) Tbk give Special Transaction
Khusus (PTK) 3, dengan nilai maksimal kredit Loan facility 3 with a maximum value of
sebesar Rp32.417.000, jangka waktu 5 tahun Rp32,417,000 and valid up to 5 years from
dari 14 Desember 2015 sampai dengan December 14, 2015 until December 14, 2020.
14 Desember 2020. Fasilitas kredit tersebut That facility is guarantee by fiduciary of 25 units
dijamin dengan jaminan fidusia atas 25 (dua trucks amounting to Rp20,833,829.
puluh lima) unit truk dengan nilai sebesar
Rp20.833.829.
Perjanjian ini memiliki grace period 6 bulan sejak This agreement has a grace period of 6 months
ditandatanganinya perjanjian kredit. Suku bunga since the date of the loan agreement. Interest
pinjaman sebesar 10,50% p.a. Pada tanggal 13 rate is 10.50% p.a. On June 13, 2016, through
Juni 2016 melalui surat No. CBG.CB2/213/2016, the letter No. CBG.CB2/213/2016, VU obtained
VU mendapatkan surat pemberitahuan a notification for changes of interest rate for
perubahan suku bunga untuk PTK 2 dan PTK 3 Special Transaction Loan facility 2 and 3
yang semula masing-masing sebesar 10% dan originally each 10% and 10.50% to 9.75%
10,50% menjadi 9,75%.
Saldo pinjaman pada 31 Desember 2016 The outstanding balance as of December 31,
sejumlah Rp27.078.890. 2016 amounted to Rp27,078,890.
Annual Report 2016

511
Kredit Investas (KI) Investment Credit
Pada tanggal 10 Agustus 2016 dengan akta On August 10, 2016, with Notarial Deeds No. 98
No. 98 dari Yatiningsih, S.H., M.H., Notaris di from Yatiningsih, S.H., M.H., Notary in
Surabaya, VU mendapatkan Fasilitas Kredit Surabaya, VU obtained Investment Credit
Investasi 1 dari PT Bank Mandiri (Persero) Tbk Facility 1 from PT Bank Mandiri (Persero) Tbk up
dengan nilai maksimal kredit sebesar to a maximum credit of Rp245,000,000 valid until
Rp245.000.000 yang berlaku sampai dengan February 10, 2022. This agreement has the
10 Pebruari 2022. Perjanjian ini memiliki availability period and a grace period of 12
availability period dan grace period 12 bulan months from the signing of the Credit
sejak penandatanganan Perjanjian Kredit. Suku Agreement. Lending rates by 9.50% p.a, subject
bunga pinjaman sebesar 9,50% p.a, untuk for review at any given time. Interest rate may
direviu sewaktu-waktu. Suku bunga sewaktu- change anytime with written notice to VU. The
waktu dapat berubah denga pemberitahuan loan was used to finance the purchase of
tertulis kepada VU. Pinjaman ini digunakan untuk vehicles.
membiayai pembelian kendaraan.
Agunan atas fasilitas kredit ini adalah: Collateral for this credit facility are:
1. Kendaraan yang dibiayai dengan Fasilitas 1. Vehicles financed by Investment Credit
Kredit Investasi I atas obyek jaminan fidusia Facility I for objects fiduciary motor vehicles
kendaraan bermotor yang untuk pertama for the first time submitted ti the Bank as
kali diserahkan kepada Bank sebanyak 86 much as 86 units of vehicles, with value
Unit kendaraan, dengan Nilai Obyek object Rp38,241,702.
Rp38.241.702
2. Agunan tersebut bersifat joint collateral dan 2. These collaterals are joint collateral and
cross default dengan seluruh agunan cross default with all collateral on other
fasilitas kredit lainnya atas VU di Bank. credit facilities on behalf of VU in the Bank.
pinjaman adalah sebesar Rp132.605.531. balance of the loan amounted to
Rp132,605,531.
Pada tanggal 10 Agustus 2016 dengan Akta On August 10, 2016 with Notarial Deeds No.98
Notaris No. 98 dari Yatiningsih, S.H., M.H., from Yatiningsih, S.H., M.H., Notary in
Notaris di Surabaya, VU mendapatkan Fasilitas Surabaya, VU obtained Investment Credit
Kredit Investasi 2 dari PT Bank Mandiri (Persero) Facility 2 from PT Bank Mandiri (Persero) Tbk
Tbk dengan nilai maksimal kredit sebesar up to a maximum credit of Rp50,000,000 valid
Rp50.000.000, yang berlaku sampai dengan until August 10, 2022. This agreement has the
10 Agustus 2022. Perjanjian ini memiliki availability period and a grace period of 12
availability period dan grace period 12 bulan months from the signing of the Credit
sejak penandatanganan Perjanjian Kredit. Suku Agreement. Lending rates by 9.50% p.a. subject
bunga pinjaman sebesar 9,50% p.a untuk direviu for review at any given time. Interest may
sewaktu-waktu.. Suku bunga sewaktu-waktu change any time with written notice to VU. This
dapat berubah dengan pemberitahuan secara loan was used to finance the construction of a
tertulis kepada VU. Pinjaman ini digunakan untuk warehouse/workshop.
membiayai pembangunan gudang/bengkel.
Agunan atas fasilitas kredit ini adalah: Collateral for this credit facility are:
1. Aset proyek yang dibiayai dengan Fasilitas 1. Assets of projects financed by Invstment
Kredit Investasi 2. Credit Facility 2.
2. Agunan tersebut bersifat joint collateral dan 2. These collaterals are joint collateral and
cross default dengan seluruh agunan cross default with all collateral on other
fasilitas kredit lainnya atas VU di Bank credit facilities on behalf of VU in the Bank.
Pada tanggal 31 Desember 2016, saldo pinjaman As of December 31, 2016, the outstanding
adalah sebesar Rp6.920.321. balance of the loan amounted to Rp6,920,321.



Fasilitas ini mensyaratkan VU untuk memelihara This facility requires VU to maintain certain
rasio keuangan tertentu. Pada tanggal 31 financial ratios. As of December 31, 2016, one
Desember 2016, salah satu rasio keuangan tidak of the financial ratio was not met and VU already
terpenuhi dan VU telah menerima waiver letter received waiver letter from the Bank.
dari Bank.
Perjanjian ini juga mensyaratkan VU untuk tidak The agreement also requires VU to not
membagikan dividen kepada pemegang saham distribute dividends to the shareholders and
dan memperoleh fasilitas kredit atau pinjaman receive other loans from other parties. VU
dari pihak lain. VU telah memenuhi semua already fulfilled all of the requirement with bank
persyaratan terkait dengan perjanjian bank pada loan as of December 31, 2016.
tanggal 31 Desember 2016.
Pembayaran utang bank terkait dengan fasilitas Payment of bank loan related with long term
pinjaman jangka panjang dengan PT Bank loan with PT Bank Mandiri (Persero) Tbk for
Mandiri (Persero) Tbk untuk periode 2016 adalah period 2016 is amounting to Rp5,300,000.
PT Semen Indonesia Beton (SIB) dan Entitas PT Semen Indonesia Beton (SIB) and Its
Anak Subsidiary
Berdasarkan Akta No. 11 tanggal 5 Agustus 2016 Based on Deed No. 11 dated August 5, 2016
dari Sitaresmi Puspadewi Subianto, S.H, notaris from Sitarasmi Puspadewi Subianto, S.H.,
di Surabaya, entitas anak SIB, VUB notary in Surabaya, subsidiary of SIB, VUB
menandatangani fasilitas kredit investasi dengan signed Credit Investment Facility with PT Bank
PT Bank Mandiri (Persero) Tbk. dengan Mandiri (Persero) Tbk. with maximum credit
maksimum fasilitas sebesar Rp63.400.000. facility amounting to Rp63,400,000. The
Tujuan fasilitas ini adalah untuk tujuan purposes of this facility is to finance capital
pembiayaan modal kerja tahun 2016 hingga expenditure for periode 2016 and 2017 with
tahun 2017 dengan Cost of Project Cost of Project amounting to Rp79,250,000. The
Rp79.250.000. Jangka waktu fasilitas ini adalah period of term of this facilty is 72 months which
72 bulan termasuk availability period selama 12 included the availability period 12 months and
bulan dan akan berakhir tanggal 5 Agustus 2022. will be ended on August 5, 2022.
Tingkat suku bunga fasilitas ini adalah sebesar The interest rate for this facility is 10.5% per
10,5% per annum. annum.
Agunan atas fasilitas ini adalah mesin dan alat The Collateral for this facility is machine and
berat senilai Rp10.097.125. heavy equipment amounting to Rp10,097,125.
Utang bank yang outstanding pada tanggal The outstanding loan amount as of
31 Desember 2016 adalah sebesar December 31, 2016 is amounting to
Rp7.969.125. Pembayaran utang bank terkait Rp7,969,125. The payment of bank loan for
dengan fasilitas ini pada tahun 2016 adalah period 2016 is amounting to Rp605,250.
sebesar Rp605.250.
Fasilitas ini mensyaratkan VUB untuk This facility requires VUB to maintain several
memelihara rasio keuangan tertentu, tanpa financial covenants, without written consent
persetujuan tertulis dari bank VUB tidak from the bank, VUB are not allowed to grant
diperkenankan untuk mengikatkan diri sebagai guarantee or pledge its assets to any other
penjamin utang atau menjaminkan harta parties, changes of Board of Directors and
kekayaannya kepada pihak lain, merubah Shareholders, obtain new facilities and loan
susunan pengurus dan pemegang saham, from other parties unless in normal business
memperoleh fasilitas kredit atau pinjaman dari course and changing of form and the
pihak lain kecuali dalam transaksi usaha wajar arrangement of collateral. As of December 31,
dan mengubah bentuk dan tata susunan obyek 2016, VUB has fulfilled all of the requirements
agunan kredit. Pada tanggal 31 Desember 2016, stated in the credit facility.
VUB telah memenuhi semua persyaratan yang
diatur dalam perjanjian kredit.
Annual Report 2016

513
- 97 -
PT Bank Rakyat Indonesia Tbk PT Bank Rakyat Indonesia Tbk

PT Varia Usaha (VU) dan Entitas Anak PT Varia Usaha (VU) and its Subsidiaries
Berdasarkan Akta Perjanjian Utang No. 97 Based on Deed of Loan Agreement No. 97
tanggal 28 Pebruari 2014 dari Drs. Slamet dated on February 28, 2014 from Drs. Slamet
Wahjudi, SH., MKn., Notaris di Gresik yang telah Wahjudi, SH., M.Kn., Notary in Gresik,
diadendum sampai dengan adendum IX tanggal amendment until amendment IX dated on
8 Januari 2015, PT Bank Rakyat Indonesia January 8, 2015, PT Bank Rakyat Indonesia
(Persero) Tbk, memberikan fasilitas kredit (Persero) Tbk, give a loan facility in the form of
investasi dalam bentuk Pseudo R/C sebesar Pseudo R/C amounting to Rp62,000,000 for the
Rp62.000.000 untuk pembelian 85 unit armada purchase of 85 units of the transport fleet. The
transportasi. Jangka waktu kredit 60 bulan sejak loan maturity is 60 months from
28 Pebruari 2014 dengan tingkat suku bunga February 28, 2014 with interest rate of 10.25%
sebesar 10,25% per tahun bersifat reviewable per year is reviewable adapted to the prevailing
disesuaikan dengan tingkat suku bunga yang interest rates in Bank BRI. This loan facility is
berlaku di Bank BRI. Kredit ini dijamin dengan 85 guarateed by 85 units new truck units financed
unit Truk baru yang dibiayai oleh fasilitas ini by this facility amounting to Rp76,041,981,
dengan nilai Rp76.041.981, persediaan dengan inventory amounting to Rp1,000,000, accounts
nilai Rp1.000.000, piutang usaha dengan nilai receivable amount to Rp10,000,000 and
Rp10.000.000, dan agunan tambahan berupa additional collateral of 369 trucks and land &
369 truk serta tanah dan bangunan dengan nilai buildings amounting to Rp65,609,496.
Rp65.609.496.
pinjaman adalah sebesar Rp29.900.000. balance for this loan amounted to
Pembayaran utang bank terkait dengan fasilitas Rp29,900,000. The payment of bank loan
ini pada tahun 2016 adalah sebesar related with this facility for 2016 amounted to
Rp2.100.000. Rp2,100,000.
Tidak terdapat persyaratan rasio keuangan yang There is no requirements on financial ratio
harus dipenuhi oleh VU berdasarkan perjanjian should be fulfilled by VU based on this
ini. agreement.
Berdasarkan Akta No. 39 atas persetujuan Based on the Deed No. 39 about the opening
membuka kredit tertanggal 18 November 2013, credits approval dated November 18, 2013,
yang diibuat oleh Anis Mohamad, Notaris di which are rendered by Anis Mohamad, Notary
Gresik, entitas anak VU, PT Waru Abadi (WA), in Gresik, a subsidiary of VU, PT Waru Abadi
memperoleh fasilitas kredit untuk jaminan atas (WA), obtained a credit facility for guarantees on
pembelian dan pengiriman produk dari the purchase and delivery of products from
Perseroan kepada Distributor. Perubahan the Company to the Distributor. Last Modified by
terakhir berdasarkan SPPK No. R.983/KC- the SPPK No. R.983/KC-IX/ADK/11/2016
IX/ADK/11/2016 terkait dengan perubahan limit related with changes of credit limit became
kredit menjadi Rp15.000.000 dan perpanjangan Rp15,000,000 and extension of loan agreement
waktu perjanjian sampai dengan tanggal until November 13, 2017.
13 Nopember 2017.
Fasilitas ini dijamin dengan: This facility is secured by:

1. Piutang Usaha sebesar Rp25.000.000. 1. Accounts Receivable amounting to
Rp25,000,000.
2. Persediaan sebesar Rp27.691.200. 2. Inventories amounting to Rp27,691, 200.
3. Beberapa bidang tanah dengan sertfikat 3. Several pieces of land with certificate
SHGB No 786, 787, 03 dan 04 yang berlokasi number SHGB No 786, 787, 03 and 04
di Bekasi dan Jember. which are located at Bekasi and Jember.

- 98 -


Pada tanggal 31 Desember 2016 saldo utang As of December 31, 2016, loan outstanding
bank terkait dengan fasilitas ini adalah sebesar from this facility is amounting to Rp2,000,000.
Rp2.000.000.
PT Bank Negara Indonesia (Persero) Tbk PT Bank Negara Indonesia (Persero) Tbk
1. UTSG 1. UTSG
Pada tahun 2012, UTSG memperoleh fasilitas In 2012, UTSG obtained investment credit
kredit investasi dari PT Bank Negara Indonesia facility from PT Bank Negara Indonesia
(Persero) Tbk, Cabang Kedungdoro Surabaya (Persero) Tbk, Kedungdoro Surabaya
dengan jumlah maksimum kredit sebesar Branch with maximum credit amount of
Rp71.849.997 untuk pembelian alat berat Rp71,849,997 which was used to acquire
dengan realisasi penarikan sebagai berikut: heavy equipment with withdrawals
realization as follows:
a) Realisasi penarikan pertama pada tanggal a) The first withdrawal was on March 28,
28 Maret 2012 sebesar Rp8.288.280. 2012 amounting to Rp8,288,280. The
Tingkat bunga pinjaman per tahun loan bears interest at 12.75% per
sebesar 12,75%. Jangka waktu pinjaman annum. It has a credit period of 5 years
5 tahun dan akan jatuh tempo pada until March 28, 2017. As of
tanggal 28 Maret 2017. Pada tanggal 31 December 31, 2016 and 2015, the
Desember 2016 dan 2015, outstanding balance of loan from this
saldo utang bank atas fasilitas ini masing- facility amounted to Rp431,280 and
masing sebesar Rp431.280 dan Rp2,177,280, respectively.
Rp2.177.280.
b) Realisasi penarikan kedua pada tanggal c) b) The second withdrawal was on

27 Desember 2012 sebesar December 27, 2012 amounting to
Rp12.838.935. Tingkat bunga pinjaman Rp12,838,935. The loan bears interest
per tahun adalah 12,75%. Jangka waktu at the rate of 12.75% per annum. It has
pinjaman 5 tahun dan akan jatuh tempo a credit period of 5 years until
pada tanggal 26 Desember 2017. Pada December 26, 2017. As of
tanggal 31 Desember 2016 dan 2015 December 31, 2016 and 2015,
saldo utang bank atas fasilitas ini masing- the outstanding balance of loan from
masing sebesar Rp2.713.935 dan this facility amounted to Rp2,713,935
Rp5.413.935. and Rp5,413,935, respectively.
Pembayaran utang bank terkait dengan The payment of bank loan related with this
fasilitas ini pada tahun 2016 adalah sebesar facility for 2016 amounting to Rp4,446,000.
Rp4.446.000.
Pinjaman dari PT Bank Negara Indonesia d) The loan from PT Bank Negara Indonesia
(Persero) Tbk dijamin dengan aset UTSG yang (Persero) Tbk is secured by the UTSG’s
dibeli menggunakan dana yang diperoleh dari assets that were acquired using the funds
fasilitas kredit tersebut. from such credit facility.
UTSG harus mempertahankan rasio keuangan e) UTSG is required to maintain certain

tertentu. Pada tanggal 31 Desember 2016, financial ratio. As of December 31, 2016
UTSG telah memenuhi seluruh rasio and December 31, 2016, UTSG has met all
keuangan. financial ratios.
f)
- 99 -
Annual Report 2016
515
2. PT Semen Padang (SP) dan Entitas Anak 2. PT Semen Padang (SP) and its Subsidiary
Pada tahun 2015, sesuai dengan Akta Notaris In 2015, based on Notarial Deed No. 48
No. 48 M.Kholid Artha S.H., tanggal 15 M.Kholid Artha S.H., dated February 15,
Pebruari 2015, entitas anak SP, BSA 2015, subsidiary of SP, BSA, transferred
mengalihkan fasilitas kredit investasi dari BCA the investment credit facility from BCA to
kepada PT Bank Negara Indonesia (Persero) PT Bank Negara Indonesia (Persero) Tbk.
Tbk. Jangka waktu kredit adalah selama 60 The credit period was 60 months from the
bulan sejak ditandatanganinya perjanjian signing of the agreement or until February
kredit tersebut atau sampai dengan tanggal 10 10, 2020 with interest rate of 11% per
annum.
Pebruari 2020 dengan tingkat suku bunga
sebesar 11% per tahun.
saldo utang bank atas fasilitas ini masing- outstanding balance of loan from this facility
masing sebesar Rp5.650.000 dan amounted to Rp5,650,000 and
Rp7.390.000. Pembayaran utang bank terkait Rp7,390,000, respectively. The payment of
dengan fasilitas ini pada tahun 2016 adalah bank loan related with this facility for 2016
sebesar Rp3.480.000. amounting to Rp3,480,000.
Perjanjian pinjaman tersebut mensyaratkan The loan agreement relating to the above
BSA mempertahankan rasio keuangan facilities requires BSA to maintain certain
tertentu yang dihitung berdasarkan laporan financial ratios computed based on its
keuangan. Pada tanggal 31 Desember 2016 financial statements. As of December 31,
dan 2015, BSA telah memenuhi semua 2016 and 2015, BSA is in compliance with
persyaratan pinjaman. all the loan covenants.
3. PT Krakatau Semen Indonesia (KSI) 3. PT Krakatau Semen Indonesia (KSI)
Pada tanggal 29 Juni 2016 dengan akta No. On June 29, 2016 with Deed No. 123 from
123 dari Muhammad Kholid Artha, S.H, Notaris Muhammad Kholid Artha, S.H, Notary in
di Jakarta, KSI menandatangani perjanjian Jakarta, KSI signed Investment Credit
Kredit Investasi dengan PT Bank Negara Facility with PT Bank Negara Indonesia
Indonesia (Persero) Tbk. Maksimum fasilitas (Persero) Tbk. Maximum credit facility
kredit perjanjian ini adalah sejumlah amounting to Rp276,500,000. The
Rp276.500.000. Tujuan fasilitas ini adalah purposes of this facility is to build Slag
untuk untuk pembangunan Pabrik Slag Factory with capacity 750,000 ton a year,
the loan is valid until
dengan kapasitas 750.000 ton/tahun,
June 28, 2023 with interest rate of 10% per
pinjaman ini berlaku sampai dengan dengan
annum, subject for review at any given
28 Juni 2023 dengan tingkat suku bunga 10% time. Collateral for this facility is all of KSI
per tahun, untuk direviu sewaktu-waktu. assets, either already exist or will exist in
Agunan atas fasilitas ini adalah segala harta the future would be guaranteed.
kekayaan, baik yang sudah ada maupun akan
ada di kemudian hari akan menjadi jaminan.
Pada tanggal 29 Juni 2016 dengan Akta No. On June 29, 2016 with Deed No. 124 from
124 dari Muhammad Kholid Artha, S.H, Notaris Muhammad Kholid Artha, S.H, Notary in
di Jakarta, KSI menandatangani perjanjian Jakarta, KSI signed Investment Credit
Kredit Investasi Interest During Constructions Facility with PT Bank Negara Indonesia
(IDC) dengan PT Bank Negara Indonesia (Persero) Tbk, for a maximum credit facility
(Persero) Tbk, maksimum fasilitas kredit amounting to Rp24,500,000. The purposes
perjanjian ini adalah sejumlah Rp24.500.000. of this facility is to finance 70% of interest
Tujuan fasilitas ini adalah untuk pembiayaan for Investment Credit Facility during
constructions, the loan is valid until June
70% biaya bunga atas fasilitas Kredit Investasi
28, 2023 with interest rate at 10% per
Pokok selama masa konstruksi, pinjaman ini
annum, subject for review at any given
berlaku sampai dengan 28 Juni 2023 dengan time. Collateral for this facility is all of KSI
tingkat suku bunga 10% per annum, untuk assets, either already exist or will exist in
direviu sewaktu-waktu. Agunan atas fasilitas the future would be guaranteed.
ini adalah segala harta kekayaan, baik yang
sudah ada maupun akan ada di kemudian hari
akan menjadi jaminan.

- 100 -


Perjanjian pinjaman tersebut mensyaratkan The loan agreement relating to the above
KSI mempertahankan rasio keuangan tertentu facilities requires KSI to maintain certain
yang dihitung berdasarkan laporan keuangan. financial ratios computed based on its
KSI tidak dapat memenuhi rasio tertentu dan financial statements. As of December 31,
telah mendapatkan waiver dari PT Bank 2016 KSI did not meet one of the financial
Negara Indonesia (Persero) Tbk. ratio and has received waiver letter from
PT Bank Negara Indonesia (Persero) Tbk.
Pada tanggal 31 Desember 2016, saldo utang As of December 31, 2016, the outstanding
bank atas fasilitas ini adalah sejumlah bank loan for this facility amounted to
Rp22.158.174. Tidak ada pembayaran Rp22,158,174. There is no payment
pinjaman pada tahun 2016 terkait dengan related with this loan in 2016.
pinjaman ini.
21. LIABILITAS SEWA PEMBIAYAAN 21. FINANCE LEASE LIABILITIES
Pembayaran sewa minimum masa datang atas Future minimum lease payments under finance
liabilitas sewa pembiayaan dan nilai kini dari leases together with the present value of the net
pembayaran sewa minimum adalah sebagai berikut: minimum lease payments are as follows:
Nilai kini pembayaran

minimum sew a/
Pembayaran minimum sew a/ Present value of
M inimum lease payments M inimum lease payments
2016 2015 2016 2015
a. 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 258.985.412 99.842.458 124.958.736 77.037.601 1 year
1 - 5 tahun 776.862.688 140.523.954 316.549.845 122.641.173 1 - 5 years
Lebih dari 5 tahun 317.784.207 38.608.505 144.847.338 36.293.469 Over 5 years
Jumlah pembayaran sew a
masa depan 1.353.632.307 278.974.917 586.355.919 235.972.243 Total future lease payment
Dikurangi beban keuangan
di masa depan (767.276.388) (43.002.674) - - Less: future finance charges
Nilai kini pembayaran Present value of minimum lease
minimum sew a 586.355.919 235.972.243 586.355.919 235.972.243 payments
Bagian yang jatuh tempo
dalam satu tahun (124.958.736) (77.037.601) Current maturity
Kew ajiban Sew a Jangka Long-term Lease
Panjang - Bersih 461.397.183 158.934.642 Liabilities - Net
- 101 -
Annual Report 2016
517
Nilai kini pem bayaran

m inim um sew a/
Present value of
minimum lease payments
2016 2015
b. Berdasarkan lessor b. By lessor:
Bangunan Buildings
PT PBM Biringkasi Raya 43.365.035 11.089.899 PT PBM Biringkasi Raya
Dana Pensiun Semen Gresik 12.464.485 18.651.767 Dana Pensiun Semen Gresik
Kendaraan Motor vehicles
Hino Finance Indonesia 29.774.405 42.670.970 Hino Finance Indonesia
PT Serasi Auto Raya 13.217.380 2.156.810 PT Serasi Auto Raya
PT Indomobil Finance 10.962.424 14.758.031 PT Indomobil Finance
PT Orix Indonesia Finance 10.948.960 14.739.904 PT Orix Indonesia Finance
PT United Tractors Pandu Engineering 9.491.621 - PT United Tractors Pandu Engineering
PT Go Rental 6.776.720 - PT Go Rental
PT Bara Bentala Indonesia 4.786.558 6.255.838 PT Bara Bentala Indonesia
PT BTMU BRI Finance 4.295.935 - PT BTMU BRI Finance
PT Adi Sarana Armada Tbk 3.458.393 50.085 PT Adi Sarana Armada Tbk
Koperasi Karyaw an Semen Tonasa 2.646.535 4.022.529 Koperasi Karyaw an Semen Tonasa
Yayasan Kesejahteraan Yayasan Kesejahteraan
Semen Tonasa 1.114.253 906.148 Semen Tonasa
PT Intercom Mobilindo 426.309 1.978.256 PT Intercom Mobilindo
PT Karang Putih Sejati 178.473 - PT Karang Putih Sejati
PT Astra International 61.363 - PT Astra International
PT Toyota Astra Financial Service 60.246 - PT Toyota Astra Financial Service
PT Mandiri Finance - 108.724 PT Mandiri Finance
Kapal Vessels
PT Pelayaran Tonasa Lines 352.550.400 - PT Pelayaran Tonasa Lines
PT Indobaruna Bulk Transport 23.486.126 66.885.483 PT Indobaruna Bulk Transport
PT Sw adaya Lestari Lines 11.478.971 16.365.987 PT Sw adaya Lestari Lines
Peralatan kantor Office equipment
PT Projectindo Teknow indata 287.513 3.087.915 PT Projectindo Teknow indata
Alat berat Heavy equipment
PT Astra Sedayu Finance 26.818.397 18.179.885 PT Astra Sedayu Finance
PT Takari Kokoh Sejahtera 17.705.417 - PT Takari Kokoh Sejahtera
PT JA Mitsui Leasing Indonesia - 14.064.012 PT JA Mitsui Leasing Indonesia
Total liabilitas sew a pembiayaan 586.355.919 235.972.243 Total finance lease liabilities
Dikurangi bagian yang jatuh tempo
dalam w aktu satu tahun (124.958.736) (77.037.601) Less current portion
Bagian jangka panjang 461.397.183 158.934.642 Long-term liabilities
Selama periode 2016 dan 2015, liabilitas sewa In 2016 and 2015, the financial leases are subject to
pembiayaan dikenakan bunga yang berkisar antara interest at rates ranging from 6.91% - 26.36% per
6,91% - 26,36% per tahun. annum.
Dana Pensiun Semen Gresik, Koperasi Karyawan Dana Pensiun Semen Gresik, Koperasi Karyawan
Semen Tonasa, Yayasan Kesejahteraan Semen Semen Tonasa, Yayasan Kesejahteraan Semen
Tonasa, PT Pelayaran Tonasa Lines, dan PT PBM Tonasa, PT Pelayaran Tonasa Lines, and PT PBM
Biringkasi Raya adalah pihak berelasi (Catatan 42). Biringkasi Raya are related parties (Note 42).

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22. UTANG USAHA 22. TRADE PAYABLES

2016 2015
Rupiah 2.740.713.778 2.294.228.799 Rupiah
Euro 133.543.830 71.361.233 Euro
Dolar Amerika Serikat 31.882.961 79.697.097 United States Dollars
Mata uang asing lainnya 6.435.172 94.057 Other foreign currencies
Pihak berelasi Related parties:
Rupiah 828.127.390 1.062.839.368 Rupiah
Dong Vietnam 286.534 425.450 Vietnamese Dong
Euro 246.044 516.613 Euro
Dolar Amerika Serikat 26.637 9.829.909 United States Dollars
Jumlah 4.077.757.062 3.783.245.999 Total
Umur utang usaha adalah sebagai berikut: The aging of trade payables is as follows:
2016 2015
Lancar 2.486.970.538 2.575.546.634 Current
1 - 45 hari 608.179.303 648.856.515 1 - 45 days
46 - 135 hari 242.937.018 259.862.216 46 - 135 days
136 - 365 hari 463.874.756 231.739.509 136 - 365 days
4.077.757.062 3.783.245.999
Utang usaha berasal dari pembelian barang dan jasa. The trade payables involve purchases of goods and
Untuk rincian transaksi dan saldo dengan pihak services. Details of related party transactions and
berelasi diungkapkan dalam Catatan 42. balances are disclosed in Note 42.
23. UTANG LAIN-LAIN 23. OTHER PAYABLES
a. Utang Lain-lain - Lancar a. Other Payables - Current
2016 2015
Utang pembelian aset tetap 111.081.842 86.275.212 Purchase of fixed assets payables
Uang titipan 34.670.761 23.328.519 Deposits received
Utang potongan gaji karyaw an 22.074.372 13.858.405 Salary deduction payables
Lainnya 98.555.840 27.828.544 Others
Pihak berelasi 38.868.025 43.009.298 Related parties
Jumlah 305.250.840 194.299.978 Total
Utang lain-lain kepada pihak berelasi terutama Other payables to related parties mainly pertain
berkaitan dengan transaksi penyediaan jasa to the services for the construction of new plants
untuk proyek pembangunan pabrik baru dan and other fixed assets. Details of related party
pembelian aset tetap lainnya. Untuk rincian transactions and balances are disclosed in Note
transaksi dan saldo dengan pihak berelasi 42.
diungkapkan dalam Catatan 42.
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Annual Report 2016
519
b. Liabilitas Jangka Panjang Lainnya b. Other Non-Current Liabilities
2016 2015
Pendapatan sew a jangka panjang Long-term unearned
yang ditangguhkan 5.087.562 5.434.993 rental income
Pendapatan tangguhan 1.326.557 4.933.366 Deferred income
Retensi 127.394 105.142 Retention
Jumlah 6.541.513 10.473.501 Total
24. BEBAN YANG MASIH HARUS DIBAYAR 24. ACCRUED EXPENSES
2016 2015
Promosi peningkatan penjualan 211.909.024 254.756.222 Sales promotion
Pengangkutan 203.274.045 208.263.044 Transportation
Beban konstruksi 35.407.561 - Construction expense
Asuransi, sew a dan ekspedisi 28.095.720 27.679.397 Insurance, rent and expedition
Jasa profesional 26.446.301 9.544.869 Professional fees
Bunga 14.940.713 7.495.844 Interest
Pemeliharaan 12.564.635 1.261.397 Maintenance
Retribusi pertambangan 3.952.060 8.045.475 Mining rights fees
Listrik 3.274.982 3.292.261 Electricity
Tagihan dalam proses 1.326.557 1.326.557 Bills in progress
Beban pengantongan 1.248.468 294.766 Packer fees
Bina lingkungan 172.373 10.333.230 Partnership program
677.378.424 633.616.432
25. UTANG PAJAK 25. TAXES PAYABLE
2016 2015
PPh badan (Catatan 39) 55.593.457 21.289.540 Corporate Income tax (Note 39)
Utang pajak lain Other taxes payable
PPh Pasal 21 15.652.273 6.162.163 Income tax Article 21
PPh Pasal 23 dan 26 4.838.731 4.462.394 Income tax Articles 23 and 26
Pajak penghasilan final 731.658 1.619.730 Final income tax
PPh badan 70.342.501 36.397.988 Corporate Income tax
Utang pajak lain Other taxes payable
PPh Pasal 23 dan 26 7.204.805 3.381.215 Income tax Articles 23 and 26
Pajak penghasilan final 8.882.651 4.009.974 Final income tax
Pajak Bumi dan Bangunan 5.529.302 5.349.640 Land and Building Tax
Lain-lain 10.508.375 9.371.412 Others
Jumlah 363.827.010 275.833.026 Total

- 104 -


Perseroan ditunjuk sebagai Wajib Pajak Pungut The Company was appointed as an income tax
(“WAPU”) Pajak Penghasilan PPh 22 berdasarkan Article 22 collector ("WAPU") based on the Ministry
Peraturan Menteri Keuangan (PMK) of Finance regulation (PMK) No. 107/PMK.10/2015
No. 107/PMK.10/2015 tentang Penunjukan Badan concerning the appointment of State Owned
Usaha Milik Negara sebagai WAPU Pajak Enterprises as WAPU Income Tax Article. 22 by
Penghasilan PPh 22 oleh Direktorat Jenderal Pajak Directorate General of Taxes (DGT) on June 9,
pada tanggal 9 Juni 2015, yang berlaku efektif pada 2015, effective on August 8, 2015.
tanggal 8 Agustus 2015.
Perseroan ditunjuk sebagai Wajib Pajak Pungut The Company was appointed as a value added tax
(“WAPU”) Pajak Pertambahan Nilai berdasarkan collector ("WAPU") based on the Ministry of Finance
Peraturan Menteri Keuangan (PMK) Nomor: regulation (PMK) Number: 85/PMK.03/2012
85/PMK.03/2012 tentang Penunjukan Badan Usaha concerning the appointment of State Owned
Milik Negara sebagai WAPU Pajak Pertambahan Enterprises as WAPU VAT by Directorate General
Nilai oleh Direktorat Jenderal Pajak pada tanggal of Taxes (DGT) on June 20, 2012, effective on
20 Juni 2012, yang berlaku efektif per tanggal July 1, 2012.
1 Juli 2012.
26. UANG MUKA PENJUALAN 26. SALES ADVANCES
Uang muka penjualan merupakan uang muka yang Sales advances represent receipts from
diterima dari pelanggan entitas anak (ST, KIG, subsidiaries’ (ST, KIG, UTSG, KSI and SIB)
UTSG, KSI dan SIB) dalam rangka penjualan semen, customers for sales of cement, industrial real estate
tanah kawasan industri, pekerjaan reklamasi, bahan land, reclamation service, cement materials, and
baku semen, dan beton siap pakai. readymix concrete.
27. PROVISI JANGKA PANJANG 27. LONG-TERM PROVISIONS
31 Desember 2016 / December 31 , 2016

Jumlah Peningkatan
Nilai Provisi yang terjadi selama Nilai
tercatat awal/ tambahan/ dan penyesuaian/ tahun berjalan/ tercatat akhir/
Beginning Additional Amount realized Increase during Ending
balance provision and adjustment the year balance
Restorasi tanah tambang 105.884.189 4.236.121 (3.049.387) 6.003.616 113.074.539 Quarry restoration
Estimasi biay a pembongkaran Estimated cost of dismantling
aset tetap 79.642.651 6.652.892 (23.829.723) 7.220.334 69.686.154 of f ixed assets
Jumlah 185.526.840 10.889.013 (26.879.110) 13.223.950 182.760.693 Total
31 Desember 2015 / December 31 , 2015

Jumlah Peningkatan
Nilai Provisi yang terjadi selama Nilai
tercatat awal/ tambahan/ dan penyesuaian/ tahun berjalan/ tercatat akhir/
Beginning Additional Amount realized Increase during Ending
balance provision and adjustment the year balance
Restorasi tanah tambang 99.823.896 3.156.152 (2.982.799) 5.886.940 105.884.189 Quarry restoration
Estimasi biay a pembongkaran Estimated cost of dismantling
aset tetap 75.241.057 656.568 (857.153) 4.602.179 79.642.651 of f ixed assets
Jumlah 175.064.953 3.812.720 (3.839.952) 10.489.119 185.526.840 Total
Restorasi tanah tambang dilakukan setiap tahun Quarry restoration is carried out every year based
sesuai dengan rencana reklamasi yang disampaikan on restoration plan reported to the authority.
kepada otoritas terkait. Pembongkaran aset tetap Dismantling of fixed assets will be realized at the end
akan dilakukan pada saat selesainya masa sewa of land rent period of related fixed assets.
lahan terkait aset tetap tersebut.
Penambahan provisi terkait atas aset tambang dan Additional provision are relate to new mining and
properti lainnya yang diperoleh selama tahun other properties acquired during the year, while the
berjalan. Sedangkan peningkatan selama tahun increase during the year pertains to adjustment
berjalan berkaitan dengan penyesuaian atas provisi made to the provision as the result of discounting the
sebagai hasil dari pendiskontoan kewajiban tersebut. obligation.
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Annual Report 2016
521
28. MODAL SAHAM 28. SHARE CAPITAL

Sesuai dengan daftar pemegang saham yang Based on the list of shareholders issued by the
dikeluarkan oleh Biro Administrasi Efek, PT Datindo Securities Administration Bureau, PT Datindo
Entrycom, susunan pemegang saham Perseroan Entrycom, the Company’s shareholders and their
pada tanggal 31 Desember 2016 dan 2015 adalah ownership interests as of December 31, 2016 and
sebagai berikut: 2015 are as follows:
2016 dan/and 2015
Saham
(ribuan lembar)/ Nilai Nominal
Shares Saham/
(thousand Par value of % Kepemilikan/
of shares) shares Ownership
Government of the Republic
Pemerintah Republik Indonesia 3.025.406 302.540.600 51,01 of Indonesia
Masyarakat (masing-masing
dibaw ah 5%) 2.906.114 290.611.400 48,99 Public (each below 5%)
Jumlah 5.931.520 593.152.000 100,00 Total
29. TAMBAHAN MODAL DISETOR 29. ADDITIONAL PAID-IN CAPITAL

Pada 31 December 2016 dan 2015, akun ini terdiri As of December 31, 2016 and 2015, this account
dari: represents:
2016 2015
Agio saham 1.252.065.600 1.252.065.600 Share premium
Biaya emisi efek ekuitas (4.710.160) (4.710.160) Share issuance costs
Selisih nilai perolehan dengan hasil Difference betw een the cost and the
penjualan saham yang diperoleh proceeds from the sale of treasury
kembali 210.902.460 210.902.460 stock
Jumlah 1.458.257.900 1.458.257.900 Total
Pada tahun 1990, Perseroan melakukan penjualan In 1990, the Company sold 40,000,000 shares with
40.000.000 saham bernilai Rp40.000.000 melalui a nominal value of Rp40,000,000 through a public
penawaran umum kepada masyarakat. Hasil offering. The proceeds were Rp280,000,000 of
penjualan adalah Rp280.000.000. Perseroan which Rp40,000,000 was recorded as paid-up
mencatat modal disetor Rp40.000.000 dan jumlah capital and Rp240,000,000 was recorded as
agio saham sebesar Rp240.000.000. additional paid-in capital.
Pada tahun 1995, Perseroan melakukan penjualan In 1995, the Company sold 444,864,000 shares with
444.864.000 saham bernilai nominal Rp444.864.000 a nominal value of Rp444,864,000 through a public
melalui penawaran umum terbatas kepada offering with pre-emptive rights. The proceeds were
masyarakat dengan hak memesan efek terlebih Rp1,456,929,600 of which Rp444,864,000 was
dahulu. Hasil penjualan adalah sebesar recorded as paid-up capital and Rp1,012,065,600
Rp1.456.929.600. Perseroan mencatat modal disetor was recorded as additional paid-in capital.
Rp444.864.000 dan Rp1.012.065.600 sebagai agio
saham.
Pada tanggal 30 Januari 2009, Perseroan On January 30, 2009, the Company held an
mengadakan Rapat Umum Pemegang Saham Luar Extraordinary General Meeting of Shareholders
Biasa (RUPSLB) untuk mengukuhkan Pelaksanaan (EGMS) to ratify the Company’s Share Buyback
Pembelian Kembali Saham Perseroan tanggal Program effective from October 13, 2008 up to and
13 Oktober 2008 sampai dengan tanggal 9 Januari including January 9, 2009 involving the acquisition
2009 sebanyak 68.032.000 lembar saham dengan of 68,032,000 shares at a total cost of
nilai transaksi Rp198.672.291. Harga perolehan per Rp198,672,291. The acquisition cost per share
lembar saham sudah termasuk biaya jasa perantara includes brokers’ commissions and custodian fees.
dan kustodian.

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Pada tanggal 7 Oktober 2009 Perseroan menjual On October 7, 2009 the Company sold its treasury
saham yang dibeli kembali (68.032.000 lembar stock (68,032,000 shares at Rp6,075 (full amount)
saham dengan harga Rp6.075 (nilai penuh) per per share) for an amount of Rp413,294,400. The
lembar saham) senilai Rp413.294.400. Selisih antara difference of Rp210,902,460 between the costs and
nilai perolehan dengan hasil penjualan setelah the proceeds from sales, net of intermediary and
dikurangi biaya jasa perantara dan kustodian sebesar custodian fees, was recognized as additional paid-
Rp210.902.460 diakui sebagai tambahan modal in capital.
disetor.
30. DIVIDEN 30. DIVIDENDS
Berdasarkan Rapat Umum Pemegang Saham Based on the Annual General Meeting of
Tahunan (RUPST) tahun 2016 yang diselenggarakan Shareholders (AGMS) in 2016 which was held on
pada tanggal 13 Mei 2016 yang tertuang dalam Akta May 13, 2016 as stated in Notarial Deed
Notaris No. 122/NOT/V/2016 Leolin Jayayanti, S.H., No. 122/NOT/V/2016 of Leolin Jayayanti, S.H.,
tanggal 16 Mei 2016, pemegang saham dated May 16, 2016, the shareholders approved,
memutuskan, antara lain, untuk membagi dividen per among others, the distribution of dividend per share
lembar saham sebesar Rp304,91 (angka penuh) amounting to Rp304.91 (full amount) for a total
dengan total pembayaran Rp1.808.588.162. amount paid of Rp1,808,588,162.
Berdasarkan Rapat Umum Pemegang Saham Based on the Annual General Meeting of
Tahunan (RUPST) tahun 2015 yang diselenggarakan Shareholders (AGMS) in 2015 which was held on
pada tanggal 16 April 2015 yang tertuang dalam Akta April 16, 2015 as stated in Notarial Deed
Notaris No. 144/NOT/IV/2015 Leolin Jayayanti, S.H., No. 144/NOT/IV/2015 of Leolin Jayayanti, S.H.,
tanggal 17 April 2015, pemegang saham dated April 17, 2015, the shareholders approved,
memutuskan, antara lain, untuk membagi dividen per among others, the distribution of dividend per share
lembar saham sebesar Rp375,34 (angka penuh) amounting to Rp375.34 (full amount) for a total
dengan total pembayaran Rp2.226.339.939. amount paid of Rp2,226,339,939.
31. KEPENTINGAN NON-PENGENDALI 31. NON-CONTROLLING INTERESTS
a Kepentingan non-pengendali atas ekuitas a Non-controlling interests in equity of

entitas anak subsidiaries
2016 2015
Thang Long Cement Joint Thang Long Cement Joint

Stock Company 683.505.250 741.448.101 Stock Company
PT Semen Indonesia Aceh 274.657.612 - PT Semen Indonesia Aceh
PT Varia Usaha 260.825.431 - PT Varia Usaha
PT Kaw asan Industri Gresik 93.737.988 92.862.990 PT Kaw asan Industri Gresik
PT Industri Kemasan Semen Gresik 85.250.471 78.713.174 PT Industri Kemasan Semen Gresik
PT United Tractors Semen Gresik 65.236.123 51.093.893 PT United Tractors Semen Gresik
PT Krakatau Semen Indonesia 60.930.663 42.927.188 PT Krakatau Semen Indonesia
PT Bima Sepaja Abadi 12.463.320 12.836.178 PT Bima Sepaja Abadi
PT SGG Energi Prima 1.065.621 852.145 PT SGG Energi Prima
PT Semen Kupang Indonesia 990.957 - PT Semen Kupang Indonesia
PT Semen Gresik 502.802 504.287 PT Semen Gresik
PT Semen Indonesia Beton 29.459 18.655 PT Semen Indonesia Beton
Jumlah 1.539.195.697 1.021.256.611 Total
- 107 -
Annual Report 2016
523
b Bagian laba (rugi) yang diatribusikan kepada b Profit (loss) attributable to non-controlling
kepentingan non-pengendali interests
2016 2015
PT United Tractors Semen Gresik 18.744.221 14.588.892 PT United Tractors Semen Gresik
PT Industri Kemasan Semen Gresik 11.683.038 10.362.065 PT Industri Kemasan Semen Gresik
PT Varia Usaha 6.291.076 - PT Varia Usaha
PT Kaw asan Industri Gresik 874.998 635.215 PT Kaw asan Industri Gresik
PT SGG Energi Prima 213.476 92.762 PT SGG Energi Prima
PT Semen Indonesia Beton (297) 143 PT SGG Prima Beton
PT Semen Gresik (1.485) (21.155) PT Semen Gresik
PT Semen Kupang Indonesia (9.043) - PT Semen Kupang Indonesia
PT Bima Sepaja Abadi (204.434) 846.535 PT Bima Sepaja Abadi
PT Krakatau Semen Indonesia (1.586.525) (1.818.914) PT Krakatau Semen Indonesia
PT Semen Indonesia Aceh (5.852.388) - PT Semen Indonesia Aceh
Thang Long Cement JSC (16.712.022) (20.735.083) Thang Long Cement JSC
Jumlah 13.440.615 3.950.460 Total
Ringkasan informasi keuangan pada entitas anak Summarized financial information in respect of
yang memiliki kepentingan non-pengendali yang non-wholly owned subsidiaries that has material
material ditetapkan di bawah ini. Ringkasan informasi non-controlling interest to the Group are set out
keuangan di bawah ini merupakan jumlah sebelum below. The summarized financial information below
eliminasi intra grup. represents amounts before intragroup eliminations.
Thang Long Cement Joint Stock Company Thang Long Cement Joint Stock Company
2016 2015
Aset Lancar 515.912.545 479.968.280 Current assets

Aset tidak lancar 2.435.866.155 2.702.941.829 Non-current assets
Jumlah Aset 2.951.778.700 3.182.910.109 Total Assets
Liabilitas Jangka Pendek 737.672.914 597.490.841 Current liabilities

Liabilitas Jangka Panjang 866.068.214 1.175.275.853 Non-current liabilities
Ekuitas yang dapat diatribusikan kepada Equity attributable to ow ners
pemilik entitas induk 1.348.038.901 1.409.831.488 of the company
Kepentingan nonpengendali (1.329) 311.927 Non-controlling interest
Jumlah liabilitas dan ekuitas 2.951.778.700 3.182.910.109 Total Liaibities and Equity
Pendapatan 1.555.687.884 1.476.981.754 Revenue

Beban (1.567.210.340) (1.501.539.798) Expenses
Rugi tahun berjalan (11.522.456) (24.558.044) Loss for the year
Penghasilan komprehensif lain Other comprehensive income

Selisih kurs dari penjabaran Exchange difference from
kegiatan usaha luar negeri (394.192.626) (145.275.989) translation of foreign operation
Jumlah laba komprehensif tahun berjalan (405.715.082) (169.834.033) Total comprehensive income for the year
Rugi yang dapat diatribusikan kepada: Loss attributable to

Pemilik entitas Induk (11.522.062) (25.928.247) Ow ners of the company
Kepentingan non-pengendali (394) (936) Non-controlling interests
Rugi tahun berjalan (11.522.456) (25.929.183) Loss for the year

- 108 -


2016 2015
Penghasilan komprehensif lain yang dapat Other comprehensive income

diatribusikan kepada attributable to
Pemilik entitas Induk (287.456.900) (126.250.301) Ow ners of the company
Kepentingan non-pengendali (118.258.182) (43.583.732) Non-controlling interests
Jumlah penghasilan komprehensif lain Total other comprehensive income
tahun berjalan (405.715.082) (169.834.033) for the year
Arus kas dari aktivitas operasi 287.167.647 254.575.068 Cash flow s from operating activities
Arus kas for aktivitas investasi (4.312.664) (12.151.574) Cash flow s for investing activities
Arus kas for aktivitas pendanaan (226.987.792) (194.410.934) Cash flow s for financing activities
PT Semen Indonesia Aceh PT Semen Indonesia Aceh
2016 2015
Rp Rp
Aset Lancar 18.098.211 - Current assets

Aset tidak lancar 448.853.227 - Non-current assets
Jumlah Aset 466.951.438 - Total Assets
Liabilitas Jangka Pendek 21.933.846 - Current liabilities

Liabilitas Jangka Panjang - - Non-current liabilities
pemilik entitas induk 445.017.592 - of the company
Jumlah liabilitas dan ekuitas 466.951.438 - Total Liaibities and Equity
Pendapatan - - Revenue
Beban (9.482.408) - Expenses
Jumlah laba komprehensif Total comprehensive income
tahun berjalan (9.482.408) - for the year
Arus kas untuk aktivitas operasi (9.473.773) - Cash flow for operating activities
Arus kas untuk aktivitas investasi (71.213.177) - Cash flow for investing activities
Arus kas dari aktivitas pendanaan 97.000.000 - Cash flow from financing activities
- 109 -
Annual Report 2016
525
PT Varia Usaha dan Entitas Anak PT Varia Usaha and its subsidiaries
2016 2015
Rp Rp
Aset Lancar 897.505.965 - Current assets

Aset tidak lancar 856.389.866 - Non-current assets
Jumlah Aset 1.753.895.831 - Total Assets
Liabilitas Jangka Pendek 924.209.813 - Current liabilities

Liabilitas Jangka Panjang 244.445.116 - Non-current liabilities
pemilik entitas induk 584.453.750 - of the company
Kepentingan nonpengendali 787.152 - Non-controlling interest
Jumlah liabilitas dan ekuitas 1.753.895.831 - Total Liaibities and Equity
Pendapatan 4.631.992.340 - Revenue

Beban (4.527.631.230) - Expenses
Laba tahun berjalan 104.361.110 - Profit for the year
Penghasilan komprehensif lain Other Comprehensive income

liablilitas imbalan pasti (5.068.337) - benefit obligation
Laba komprehensif tahun berjalan 99.292.773 - Comprehensive income for the year
Laba yang dapat diatribusikan kepada: Loss attributable to:

Pemilik entitas Induk 104.986.250 - ow ners of the company
Kepentingan non-pengendali (625.140) - Non-controlling interests
Laba tahun berjalan 104.361.110 - Loss for the year
Jumlah laba komprehensif yang dapat Total comprehensive income

diatribusikan kepada attributable to
Pemilik entitas Induk 100.570.205 - Ow ners of the Company
Kepentingan non-pengendali (1.277.432) - Non-controlling interests
Jumlah laba komprehensif Total comprehensive income
tahun berjalan 99.292.773 - for the year
Arus kas dari aktivitas operasi 141.230.828 - Cash flow from operating activities
Arus kas untuk aktivitas investasi (290.024.266) - Cash flow for investing activities
Arus kas dari aktivitas pendanaan 162.648.862 - Cash flow from financing activities

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32. PENDAPATAN 32. REVENUE
2016 2015
Pihak berelasi Related parties
Penjualan semen 4.474.133.128 5.063.318.376 Sales of cement
Pihak ketiga Third parties
Penjualan semen 19.821.902.959 20.894.731.164 Sales of cement
Beton siap pakai 1.090.714.611 523.179.439 Ready mix concrete
Terak 423.694.290 180.445.605 Clinker
Penjualan kantong semen 90.530.316 80.573.611 Sales of cement bags
Jasa penambangan 34.041.199 70.874.447 Mining services
Persew aan tanah kaw asan industri 25.058.959 21.179.206 Industrial estate land rental
Jasa peledakan 10.049.078 6.780.748 Blasting services
Penjualan tanah kaw asan industri - 1.100.000 Sales of industrial real estate
Lain-lain 164.181.598 105.821.875 Others
Jumlah 26.134.306.138 26.948.004.471 Total
Tidak ada penjualan kepada satu pelanggan yang There were no sales to any party representing more
melebihi 10% dari jumlah pendapatan. than 10% of total revenue.
Lihat Catatan 42 untuk rincian transaksi dan saldo Refer to Note 42 for details of related parties
dengan pihak berelasi. transactions and balances.
33. BEBAN POKOK PENDAPATAN 33. COST OF REVENUE
2016 2015
Beban pabrikasi 13.271.710.219 13.743.411.255 Manufacturing overhead
Tenaga kerja 1.534.006.732 1.402.507.878 Labor
Pemakaian bahan baku 826.407.047 873.464.911 Raw materials used
Jumlah beban produksi 15.632.123.998 16.019.384.044 Total manufacturing costs
Persediaan barang dalam proses Work-in-progress inventories
Pada aw al tahun 400.894.282 537.981.100 At the beginning of the year
Pembelian 304.423.529 75.699.655 Purchases
Pada akhir tahun (520.903.760) (400.894.282) At the end of the year
Harga pokok produksi 15.816.538.049 16.232.170.517 Cost of goods manufactured
Persediaan barang jadi Finished goods inventories
Pada aw al tahun 274.749.045 242.247.369 At the beginning of the year
Pembelian 549.752.448 102.034.987 Purchases
Pada akhir tahun (362.605.852) (274.749.045) At the end of the year
Beban pokok penjualan semen 16.278.433.690 16.301.703.828 Cost of goods sold - cement
Beban pokok penjualan tanah Cost of sales - industrial land
kaw asan industri dan lain-lain - 304.270 and others
Jumlah 16.278.433.690 16.302.008.098 Total
Tidak ada pembelian dari satu pemasok yang There were no purchases from any suppliers
melebihi 10% dari jumlah pendapatan. representing more than 10% of total revenue.
Lihat Catatan 42 untuk rincian transaksi dan saldo Refer to Note 42 for details of related party
dengan pihak berelasi. transactions and balances.
- 111 -
Annual Report 2016
527
34. BEBAN PENJUALAN 34. SELLING EXPENSES
2016 2015
Ongkos angkut dan bongkar 2.194.813.107 2.077.573.947 Transportation and handling
Promosi 265.467.816 323.395.359 Promotion
Gaji, upah dan manfaat 174.757.909 186.502.763 Salaries, w ages and benefits
Perjalanan dinas 18.843.770 17.179.537 Business trips
Penyusutan dan amortisasi 9.060.330 7.230.645 Depreciation and amortization
Penelitian, pengembangan Research, development and
jasa profesional 2.805.244 1.303.509 Professional fees
Lain-lain (masing-masing
di baw ah Rp1.000.000) 40.792.481 36.790.443 Others (each below Rp1,000,000)
Jumlah 2.719.372.979 2.658.736.792 Total
35. BEBAN UMUM DAN ADMINISTRASI 35. GENERAL AND ADMINISTRATION EXPENSES
2016 2015
Salaries, w ages, employee
Gaji, upah, kesejahteraan w elfare and Director's
dan bonus Direksi 1.061.095.093 1.131.438.046 Commissioners'
Program kemitraan Partnership program
bina lingkungan 186.815.155 136.395.321 community development
Keperluan kantor 155.992.883 147.600.105 Office supplies
Penyusutan dan amortisasi 152.569.158 123.093.950 Depreciation and amortization
Pajak, asuransi, dan sew a 137.266.469 101.204.702 Taxes, insurance and rental
Jasa profesional 81.935.827 75.932.076 Professional fees
Promosi dan jamuan 74.984.717 73.965.721 Promotion and entertainment
Perjalanan dinas 72.728.841 63.940.145 Business trips
Pemakaian bahan, listrik, air Supplies, electricity, w ater
dan telepon 44.166.294 43.850.433 and telephone
Pendidikan, latihan dan Education, training and
pengembangan 31.929.262 45.274.426 development
Penurunan nilai piutang Impairment loss of
(Catatan 7 dan 8) 21.032.045 10.452.922 receivables (Notes 7 and 8)
Lain-lain 19.157.464 22.300.934 Others
Jumlah 2.163.084.920 2.087.885.344 Total
36. PENGHASILAN (BEBAN) OPERASI LAINNYA – 36. OTHER OPERATING INCOME (EXPENSES) - NET
BERSIH
2016 2015
Penyesuaian nilai w ajar Fair value adjustment arising
akuisisi bertahap (Catatan 48) 127.280.545 - from step acquisiton (Note 48)
Penghasilan penanganan limbah 80.830.849 - Income from w aste treatment
Sew a 15.341.806 41.218.784 Rental
Laba penjualan aset tetap (Catatan 15) 9.789.746 26.644 Gain on sale of fixed assets (Note 15)
Penjualan barang usang 7.617.076 2.268.174 Sales of scrap materials
Klaim dan denda 6.553.236 8.765.956 Claims and penalties
Kerugian selisih kurs (17.719.951) (11.494.089) Foreign exchange loss
Jumlah 253.698.752 46.157.493 Total

- 112 -


37. PENDAPATAN KEUANGAN DAN BEBAN 37. FINANCE INCOME AND FINANCE COSTS
KEUANGAN
a. Penghasilan keuangan a. Finance income
2016 2015
Deposito berjangka 157.597.988 213.418.812 Time deposits

Rekening giro 16.058.025 17.172.696 Current accounts
Reksadana - 4.180.412 Mutual fund
Jumlah 183.772.800 241.075.757 Total
b. Beban keuangan b. Finance costs

2016 2015
Kredit investasi 284.204.314 311.910.399 Investment loans
Sew a pembiayaan 39.251.245 20.227.034 Financial lease
Kredit modal kerja 24.033.333 15.407.639 Working capital loans
Biaya pembongkaran aset tetap Dismantling costs of fixed assets
(Catatan 27) 13.223.950 10.489.119 (Note 27)
Jumlah 363.493.284 370.004.717 Total
38. PENGHASILAN KOMPREHENSIF LAINNYA 38. OTHER COMPREHENSIVE INCOME

2016 2015
Net changes in fair value of
Perubahan neto nilai w ajar surat available-for-sale marketable
berharga tersedia untuk dijual securities
Keuntungan periode berjalan - 4.672.863 Gain arising during the period
Dikurangi: Less:
Penyesuaian reklasifikasi atas Reclassification adjustments on
keuntungan yang diakui gain recognised on
dalam laba rugi - 4.180.412 profit and loss
- 492.451
Mutasi neto lindung nilai arus kas Net movement on cash flow hedges
Kerugian periode berjalan (1.762.342) (1.101.102) Loss arising during the period
Dikurangi: Less:
Penyesuaian reklasifikasi atas Reclassification adjustments on
kerugian yang diakui loss recognised on
dalam aset tetap (2.920.245) - fixed assets
1.157.903 (1.101.102)
Keuntungan (kerugian) aktuarial Unrealized gain (loss) on defined
program pensiun manfaat pasti (42.796.098) (83.486.981) benefit pension plans
Dikurangi: Less:
Pajak penghasilan terkait (10.840.615) 22.485.951 Income tax related
(31.955.483) (61.001.030)
Selisih kurs penjabaran laporan Exchange difference due to translation

keuangan of financial statements
Translation of subsidiary's financial
Penjabaran laporan entitas anak (135.895.379) 198.332.979 statements
Pendapatan komprehensif lain Other comprehensive income
tahun berjalan, setelah pajak (166.692.959) 136.723.298 during the year, net of tax
- 113 -
Annual Report 2016
529
Sepanjang tahun 2016 dan 2015, Entitas Anak (SG) During 2016 and 2015, a Subsidiary (SG) entered
melakukan lindung nilai arus kas melalui instrumen into a forward contract cash flow hedge derivative
derivatif forward contract dengan tujuan mengurangi instruments with purpose to reduce the risk of spot
resiko pergerakan kurs spot atas komitmen pasti rate fluctuation on firm commitments for the
pembelian peralatan. Entitas Anak (SG dan SP) juga procurement of main equipment. The Subsidiaries
melakukan lindung nilai non-derivatif menggunakan (SG and SP) also entered into non-derivative hedge
giro dalam mata uang EUR, dimana selisih kurs yang using EUR current account, to which the difference
timbul dari translasi EUR diakui didalam penghasilan resulting from translation of EUR account, is
komprehensif lain selama lindung nilai tersebut recorded in other comprehensive income only if the
efektif. hedging effectiveness is met.
Sehubungan dengan pembayaran atas pembelian In connection with the payment for purchase of main
peralatan dimana transaksi lindung nilai yang equipment where the hedging transaction
dilakukan telah secara efektif saling hapus undertaken has effectively offset the change in cash
perubahan arus kas yang diatribusikan terhadap flow attributable to the risk being hedged, the
risiko yang dilindung nilai, perubahan nilai wajar yang changes in fair value recognized in other
diakui dalam penghasilan komprehensif lain comprehensive income are reclassified to the value
direklasifikasi ke nilai peralatan yang di lindung nilai of the hedged item (Note 15).
(Catatan 15).
Pada tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, unrealized
perubahan nilai wajar lindung nilai arus kas yang change in fair value of cash flow hedge recognized
masih belum terealisasi, dicatat dalam penghasilan in other comprehensive income as income and
komprehensif lain masing-masing sebagai expense amounting to Rp1,157,903 and
penghasilan dan beban sebesar Rp1.157.903 dan Rp1,101,102, respectively.
Rp1.101.102.
39. PAJAK PENGHASILAN 39. INCOME TAX
Beban pajak Grup terdiri dari: Tax expense of the Group consists of the following:
2016 2015
Kini 633.773.899 836.669.379 Current
Tangguhan (715.176.133) (12.097.068) Deferred
Pajak atas revaluasi aset tetap 218.859.349 - Tax on fixed assets revaluation
137.457.115 824.572.311
Kini 511.163.437 462.185.073 Current
Tangguhan (122.312.841) 38.725.075 Deferred
Pajak atas revaluasi aset tetap 23.277.009 - Tax on fixed assets revaluation
412.127.605 500.910.148
Konsolidasian Consolidated
Kini 1.144.937.336 1.298.854.452 Current
Tangguhan (837.488.974) - Deferred
Pajak atas revaluasi aset tetap 242.136.358 26.628.007 Tax on fixed assets revaluation
549.584.720 1.325.482.459
Perseroan telah memenuhi persyaratan memperoleh The Company met the requirements for reduction of
penurunan tarif PPh Badan sebesar 5% masing- income tax rate by 5% for fiscal years 2016 and
masing untuk tahun fiskal 2016 dan 2015 2015, in accordance with the Government
berdasarkan Peraturan Pemerintah Nomor 81 Tahun Regulation No. 81 Year 2007.
2007.

- 114 -


Rekonsiliasi antara laba sebelum pajak penghasilan The reconciliation between profit before income tax
yang ditunjukkan dalam laporan laba rugi dan as shown in the consolidated statements of profit or
penghasilan komprehensif lain konsolidasian dengan loss and other comprehensive income and
taksiran laba kena pajak dan beban pajak kini untuk estimated taxable income and current tax expense
periode yang berakhir pada tanggal 31 Desember for the period ended December 31, 2016 and 2015
2016 dan 2015 adalah sebagai berikut: are as follows:
2016 2015
Laba konsolidasian sebelum Consolidated prof it bef ore
beban pajak penghasilan 5.084.621.543 5.850.923.497 income tax
Laba entitas anak sebelum Subsidiaries’ prof it bef ore
beban pajak penghasilan (1.806.941.723) (1.728.819.862) income tax
Bagian atas laba bersih entitas Share in net prof its
asosiasi (37.228.726) (34.320.727) of associates
Disesuaikan dengan jurnal Adjusted f or consolidation
eliminasi konsolidasi 25.884.693 107.246.321 eliminations
Laba sebelum pajak penghasilan Income bef ore income tax -
Perseroan 3.266.335.787 4.195.029.229 the Company
Perbedaan permanen: Permanent dif f erences:

Dif f erences between
Perbedaan nilai buku f iskal dan f iscal and commercial
komersial atas aset tetap 19.846.387 (24.084.224) net carry ing amount of f ixed assets
Kesejahteraan kary awan 47.670.806 35.919.409 Employ ee welf are
Peny isihan promosi Prov ision f or sales promotion
peningkatan penjualan 75.654.224 3.962.981 expense
Denda pajak 1.475.340 53.420 Tax Penalties
Pendapatan y ang telah dikenakan Income subject to f inal tax,
pajak penghasilan f inal (143.563.599) (257.648.912) recorded on a net of tax basis
Lain-lain 7.302.041 161.322.860 Others
8.385.199 (80.474.466)
Perbedaan temporer: Temporary dif f erences:

Perbedaan nilai buku f iskal dan Fiscal and commercial
komersial atas aset tetap, net carry ing amounts of f ixed
beban tangguhan, dan assets, def erred charges, and
aset tak berwujud (64.661.976) (135.498.195) intangible assets
Aset sewa pembiay aan (1.311.732) 6.127.192 Leased assets
Liabilitas imbalan kerja 29.217.824 50.121.869 Employ ee benef its liabilities
Cadangan persediaan usang Allowance f or obsolete and
dan bergerak lambat 4.717.071 3.832.788 slow mov ing inv entories
Allowance f or impairment of
Cadangan penurunan nilai piutang (1.531.160) 5.678.086 receiv able
Tunjangan produktiv itas dan uang jasa (51.495.929) 83.410.259 Productiv ity allowances and incentiv es
Peny isihan lainny a (20.785.591) 55.120.135 Other prov isions
(105.851.493) 68.792.134
Laba kena pajak - Perseroan 3.168.869.493 4.183.346.897 Taxable income - the Company
Beban pajak penghasilan Income tax expense

Perseroan - kini 633.773.899 836.669.379 the Company - current
Beban pajak penghasilan Income tax expense
entitas anak - kini 511.163.437 462.185.073 the Subsidiaries - current
1.144.937.336 1.298.854.452
Perhitungan beban dan utang pajak kini Perseroan Current tax expense and payable of the Company
adalah sebagai berikut: are computed as follows:
2016 2015
Beban pajak kini 633.773.899 836.669.379 Current tax expense

Dikurangi pembayaran pajak dimuka 780.674.789 815.379.839 Less prepaid taxes
Utang pajak/ (pajak dibayar dim uka) Taxes Payable/ (Prepaid Taxes)
(Catatan 12 dan 25) (146.900.890) 21.289.540 (Notes 12 dan 25)
- 115 -
Annual Report 2016
531
Laba fiskal tahun 2016 menjadi dasar dalam The taxable income for 2016 will be the basis in the
pengisian Surat Pemberitahuan Pajak (SPT) tahunan preparation of the 2016 annual Corporate Tax
PPh Badan 2016. Returns (SPT).
Laba fiskal dan beban pajak penghasilan kini Taxable income and current tax expense of the
Perseroan tahun 2015 telah sesuai dengan Surat Company for 2015 are in accordance with the
Pemberitahuan Pajak (SPT) yang disampaikan ke Corporate Tax Returns (SPT) submitted to the Tax
Kantor Pelayanan Pajak. Berdasarkan SPT Tahun Service Office. Based on the SPT for year 2015, the
2015, Perseroan memiliki lebih bayar pajak Company has overpayment of corporate income tax
penghasilan badan sebesar Rp34.091.982 dan amounting to Rp34,091,983 which was presented
disajikan secara neto dengan utang pajak sebesar net to the taxes payable amounting to
Rp55.381.522. Rp55,381,522.
Pada tahun 2016, Perseroan membayar utang pajak In 2016, the Company paid the taxes payable
sebesar Rp55.381.522, sehingga menghasilkan amounting to Rp55,381,522, thus resulting to
pajak dibayar di muka sebesar Rp34.091.982 prepaid tax of Rp34,091,982 in 2016 (Note 12)
(Catatan 12).
Pajak Tangguhan Deferred Tax
Dikreditkan
(dibebankan)
ke penghasilan
Dikreditkan komprehensif
(dibebankan) lain/
ke laporan Credited
laba rugi/ (charged) to Akuisisi
1 Januari/ Credited/ other entitas anak/ 31 Desember /
January 1, (charged) to comprehensive Acquisition of December 31,
2016 profit or loss income subsidiaries 2016
Aset pajak tangguhan - neto Deferred tax asset - net
Aset tetap (163.111.713) (20.916.461) - - (184.028.174) Fixed assets
Selisih nilai buku aset tetap Dif f erence in net book v alue of
karena rev aluasi aktiv a tetap f ixed asset due to rev aluation
untuk tujuan perpajakan - 736.346.431 736.346.431 of f ixed assets f or tax purposes
Aset sewa pembiay aan 2.755.243 (262.346) - - 2.492.897 Leased assets
Nilai wajar aset atas Fair v alue assets
akuisisi entitas anak - - - (93.916.638) (93.916.638) of acquisition subsidiary
Beban tangguhan dan Def erred charges and intangible
aset takberwujud (7.728.976) 7.984.066 - - 255.090 assets
Liabilitas imbalan kerja 29.916.306 5.843.565 (566.362) - 35.193.509 Employ ee benef its liabilities
Cadangan persediaan usang dan Allowance f or obsolete and slow
bergerak lambat 13.899.652 943.414 - - 14.843.066 mov ing inv entories
Cadangan penurunan nilai piutang 2.692.638 (306.232) - - 2.386.406 Allowance f or impairment of receiv ables
Tunjangan produktiv itas Productiv ity allowances and
dan uang jasa 74.606.414 (10.299.186) - - 64.307.228 and incentiv e compensation
Peny isihan lain-lain 42.489.679 (4.157.118) - - 38.332.561 Other prov isions
Jumlah (4.480.757) 715.176.133 (566.362) (93.916.638) 616.212.376 Subtotal
Aset tetap (65.025.316) (13.734.855) - 2.950.896 (75.809.275) Fixed assets
untuk tujuan perpajakan - 15.350.275 15.350.275 of f ixed assets f or tax purposes
Aset sewa pembiay aan (412.137) (393.447) - (142.212) (947.796) Leased assets
Cadangan penurunan nilai piutang 4.242.884 2.459.534 - 1.496.126 8.198.544 Allowance f or impairment of receiv ables
Liabilitas imbalan kerja 75.772.531 9.562.930 1.672.991 7.462.565 94.471.017 Employ ee benef its liabilities
bergerak lambat 6.470.151 762.336 - 7.539 7.240.026 mov ing inv entories
dan uang jasa 54.398.887 3.445.463 - 867.286 58.711.636 incentiv e compensation
Cadangan biay a bongkar 6.203.181 452.033 - - 6.655.214 Allowance f or dismantle cost
Akumulasi rugi f iskal 6.483.053 13.178.372 - 411.021 20.072.446 Accumulated f iscal loss
Peny isihan lain-lain 2.134.689 190.751 - 12.420 2.337.860 Other prov isions
Jumlah 90.267.923 31.273.392 1.672.991 13.065.641 136.279.947 Subtotal
Jumlah aset pajak tangguhan - neto 85.787.166 746.449.525 1.106.629 (80.850.997) 752.492.323 Total def erred tax assets - net
Liabilitas pajak tangguhan - neto Deferred tax liabilities - net

Aset tetap (219.678.292) (47.196.761) - (30.033.927) (296.908.980) Fixed assets
untuk tujuan perpajakan - 112.703.815 - - 112.703.815 of f ixed assets f or tax purposes
Nilai wajar aset atas Fair v alue assets
akuisisi entitas anak - 1.839.638 - (24.794.624) (22.954.986) of acquisition subsidiary
Aset sewa pembiay aan 1.092.224 (4.196.551) - 472.616 (2.631.711) Leased assets
Liabilitas imbalan kerja 53.308.935 3.867.825 9.733.986 8.929.455 75.840.201 Employ ee benef its liabilities
bergerak lambat 5.429.789 190.544 - 360.546 5.980.879 mov ing inv entories
Cadangan penurunan nilai piutang 9.518.695 (376.763) - 6.195.128 15.337.060 Allowance f or impairment of receiv ables
dan uang jasa 43.148.236 5.527.580 - 2.842.982 51.518.798 incentiv e compensation
Akumulasi rugi f iskal - 14.540.287 14.540.287 Fiscal loss carry f orward
Peny isihan lain-lain 3.758.440 4.139.835 - 25.482 7.923.757 Other prov isions
Jumlah liabilitas pajak tangguhan - neto (103.421.973) 91.039.449 9.733.986 (36.002.342) (38.650.880) Total def erred tax liabilites - net
Manf aat pajak tangguhan - neto 837.488.974 10.840.615 Def erred tax income - net

- 116 -


Dikreditkan
Dikreditkan (dibebankan)
(dibebankan) ke penghasilan
ke laporan komprehensif lain/
laba rugi/ Credited
1 Januari/ Credited/ (charged) to other 31 Desember/
January 1, (charged) to comprehensive December 31,
2015 profit or loss income 2015
Liabilitas pajak tangguhan - neto Deferred tax liabilities, net

Aset tetap (130.496.763) (32.614.950) - (163.111.713) Fixed assets
Aset sewa pembiay aan 1.529.805 1.225.438 - 2.755.243 Leased assets
Beban tangguhan dan Def erred charges and intangible
aset takberwujud (13.244.285) 5.515.309 - (7.728.976) assets
Liabilitas imbalan kerja 26.348.754 10.024.373 (6.456.821) 29.916.306 Employ ee benef its liabilities
bergerak lambat 13.133.094 766.558 - 13.899.652 mov ing inv entories
Cadangan penurunan nilai piutang 1.557.020 1.135.618 - 2.692.638 Allowance f or impairment of receiv ables
Tunjangan produktiv itas - Productiv ity allowances and
dan uang jasa 57.924.361 16.682.053 - 74.606.414 and incentiv e compensation
Peny isihan lain-lain 33.127.010 9.362.669 - 42.489.679 Other prov isions
Jumlah (10.121.004) 12.097.068 (6.456.821) (4.480.757) Subtotal

Aset sewa pembiay aan 976.556 115.668 - 1.092.224 Leased assets
Liabilitas imbalan kerja 39.004.457 6.111.302 8.193.176 53.308.935 Employ ee benef its liabilities
bergerak lambat 5.183.686 246.103 - 5.429.789 mov ing inv entories
Cadangan penurunan nilai piutang 11.244.320 (1.725.625) - 9.518.695 Allowance f or impairment of receiv ables
dan uang jasa 39.273.196 3.875.040 - 43.148.236 incentiv e compensation
Peny isihan lain-lain 2.368.978 1.389.462 - 3.758.440 Other prov isions
Jumlah (59.924.318) (51.690.831) 8.193.176 (103.421.973) Total
Jumlah liabilitas pajak tangguhan - neto (70.045.322) (39.593.763) 1.736.355 (107.902.730) Total def erred tax liabilities - net
Aset pajak tangguhan - neto Deferred tax assets - net

Aset sewa pembiay aan 280.675 (692.812) - (412.137) Leased assets
Cadangan penurunan nilai piutang 3.685.099 557.785 - 4.242.884 Allowance f or impairment of receiv ables
Liabilitas imbalan kerja 36.024.150 18.998.785 20.749.596 75.772.531 Employ ee benef its liabilities
bergerak lambat 4.923.013 1.547.138 - 6.470.151 mov ing inv entories
Tunjangan produktiv itas - Productiv ity allowances and
dan uang jasa 52.954.246 1.444.641 - 54.398.887 incentiv e compensation
Cadangan biay a bongkar 5.727.055 476.126 - 6.203.181 Allowance f or dismantle cost
Akumulasi rugi f iskal 6.668.469 (185.416) - 6.483.053 Accumulated f iscal loss
Peny isihan lain-lain 8.988.394 (6.853.705) - 2.134.689 Other prov isions
Jumlah aset pajak tangguhan - neto 56.552.571 12.965.756 20.749.596 90.267.923 Total def erred tax assets - net
Beban pajak tangguhan - neto (26.628.007) 22.485.951 Def erred tax expense - net
- 117 -
Annual Report 2016
533
Rekonsiliasi antara beban pajak penghasilan seperti Reconciliation between income tax expense as
yang tercantum dalam laporan laba rugi dan shown in the consolidated statements profit or loss
penghasilan komprehensif lain konsolidasian dengan and other comprehensive income and income tax
hasil perkalian laba akuntansi sebelum pajak expense calculated using prevailing tax rates is as
penghasilan Perseroan dan tarif pajak yang berlaku follows:
adalah sebagai berikut:
2016 2015
Laba konsolidasian sebelum Consolidated profit before
beban pajak penghasilan 5.084.621.543 5.850.923.497 income tax
Penyesuaian terkait dengan konsolidasi: Adjustment related to consolidation:
Bagian atas laba bersih entitas
asosiasi (37.228.726) (34.320.727) Equity in net income of associates
Disesuaikan dengan jurnal Adjusted for consolidation
eliminasi konsolidasi 25.884.693 107.246.321 elimination
5.073.277.510 5.923.849.091
Beban pajak penghasilan sesuai
tarif pajak 1.014.655.502 1.184.769.818 Tax calculated at statutory rate
Perbedaan tarif antara perseroan Difference tax rate betw een
dan entitas anak serta koreksi the Company and its subsidiaries
fiskal entitas anak 50.739.260 156.807.534 and subsidiaries' fiscal correction
Pajak final atas revaluasi aset tetap 218.859.349 - Final tax on fixed assets revaluation
Penyesuaian pajak tangguhan dari Deferred tax adjustment arising from
revaluasi aset tetap (736.346.431) - fixed assets revaluation
Pengaruh pajak atas perbedaan tetap 1.677.040 (16.094.893) Tax effect of permanent differences
Jum lah beban pajak 549.584.720 1.325.482.459 Total tax expense
Berdasarkan peraturan perpajakan Indonesia, Grup Under the taxation laws of Indonesia, the Group
menghitung, menetapkan, dan membayar sendiri submits tax returns on the basis of self assessment.
jumlah pajak yang terutang. SPT konsolidasian tidak Consolidated tax returns are not permitted under
diperkenankan dalam peraturan perpajakan di Indonesian taxation laws. The Directorate General of
Indonesia. Direktorat Jenderal Pajak (DJP) dapat Taxes (DGT) may assess or amend taxes within five
menetapkan dan mengubah kewajiban pajak dalam years from the date the tax becomes due.
batas waktu lima tahun sejak tanggal terutangnya
pajak.
Revaluasi aset tetap Fixed Assets Revaluation
Pada tahun 2016, Perseroan dan entitas anak (ST In 2016, the Company and its subsidiaries (ST and
dan SP) melakukan penilaian kembali aset tetap SP) have revalued their fixed assets for tax purpose
untuk tujuan perpajakan dengan kenaikan nilai aset only, which resulted to an increase in value of fixed
tetap sebesar Rp4.193.948.516. Dari hasil penilaian assets by Rp4,193,948,516. As a result of the
kembali tersebut, pada tanggal 31 Desember 2016 revaluation, as of December 31, 2016 the Company
Perseroan dan Entitas Anak telah menyetorkan nilai and its subsidiaries have made payment following the
pajak terutang sesuai dengan tarif yang berlaku pada applicable tax rate in accordance with the Regulation
Peraturan Menteri Keuangan No. 191/PMK.010/2015 of the Ministry of Finance Decree No.
dan memperoleh persetujuan dari Direktorat Jendral 191/PMK.010/2015 and obtained approval from
Pajak. Perbedaan nilai aset tercatat dan hasil Directorate General of Taxation. The difference in the
revaluasi telah dibukukan sebagai aset pajak net carrying amount and the revalued amount was
tangguhan. recorded as deferred tax assets.



UTSG UTSG
Pajak Penghasilan Badan tahun 2016 2016 Corporate Income Tax
Pada tahun 2016, UTSG telah menerima Surat In 2016, UTSG has received the Tax Overpayment
Ketetapan Pajak Lebih Bayar (SKPLB) untuk masa Assessment Lettter (SKPLB) for the period January -
pajak Januari - September 2016 sebesar September 2016 amounting to Rp16,253,761. The
Rp16.253.761. Lebih bayar tersebut telah diterima said overpayment was received in 2016 amounting to
pada tahun 2016 sebesar Rp10.062.242 dan sebesar Rp10,062,242 and amounting to Rp6,191,519 was
Rp6.191.519 diterima pada bulan Januari 2017. received in January 2017. The difference between
Selisih antara pencatatan UTSG dengan SKPLB UTSG's record with the SKPLB amounted to
sebesar Rp16.313 dibebankan pada tahun berjalan. Rp16,313 was charged in the current year.
Pada tanggal 26 April 2016, UTSG menerima SKPLB On April 26, 2016, UTSG received an SKPLB
No.00040/406/14/051/16, yang menyatakan bahwa No.00040/406/14/051/16, which stated that the
lebih bayar pajak penghasilan tahun 2014 sebesar overpayment of 2014 Corporate Income Tax
Rp3.903.602. Selisih hasil SKPLB dengan catatan amounted to Rp3,903,602. The difference between
UTSG sebesar Rp1.807.853 dibukukan sebagai the amount recorded by UTSG amounting to
penyesuaian beban pajak kini. Lebih bayar tersebut Rp1,807,853 was recorded as tax expense
telah diterima UTSG pada tanggal 7 Juni 2016 adjustment. Such overpayment was received by
sebesar Rp3.888.343, setelah dikurangi dengan UTSG on June 7, 2016, amounting to Rp3,888,343
beberapa surat tagihan pajak sejumlah Rp15.259. after offset with several tax collection letter (STP)
amounting to Rp15,259.

Pada tanggal 31 Desember 2016, UTSG telah On December 31, 2016, UTSG received an SKPLB
menerima SKPLB untuk kelebihan bayar pajak for corporate income tax overpayment in 2012
penghasilan badan tahun 2012 yang menyatakan amounting to Rp1,017,648 which was objected by
bahwa lebih bayar pajak penghasilan badan tahun UTSG. The said objection was rejected, thus, the
2012 sebesar Rp1.017.648 yang diajukan keberatan amount was charged in the current year and
oleh UTSG. Keberatan tersebut telah ditolak, presented as adjustment of current income tax.
sehingga jumlah tersebut dibebankan pada tahun
berjalan dan dibukukan sebagai penyesuaian beban
pajak kini.
ST ST
Pada tanggal 26 April 2016, ST telah menerima On April 26 2016, the ST received SKPLB for its 2014
SKPLB untuk kelebihan bayar pajak penghasilan corporate income tax resulting in decrease of net
badan tahun 2014 yang mengakibatkan penurunan overpayment amounting to Rp1,616,984. The refund
kelebihan pembayaran pajak bersih sebesar was not been received by ST.
Rp1.616.984. Kelebihan pajak belum diterima oleh
ST.
Pada tanggal 24 Maret 2016, ST menerima Surat On March 24 2016, ST received tax assessment
Ketetapan Pajak dari Kantor Pelayanan Pajak (KPP) letters from the Tax Service Office (TSO) for its 2013
yang menyatakan kurang bayar pajak untuk pajak corporate income tax resulting in net underpayment
penghasilan badan di tahun 2013 sebesar amounting to Rp10,250,534. The payment has been
Rp10,250,534. Pembayaran telah dilunasi ST pada made by ST on April 22, 2016.
tanggal 22 April 2016.
Annual Report 2016

535
SP SP
Pada tanggal 10 Maret 2016, SP menerima SKPLB On March 10, 2016, SP received a SKPLB for 2014
atas pajak penghasilan badan tahun 2014 sebesar corporate income tax amounting to Rp19,974,095.
Rp19.974.095. Lebih bayar pajak penghasilan The overpayment of corporate income tax was
tersebut dikompensasikan dengan utang pajak SP compensated with SP tax payable amounting to
sebesar Rp12.289.606. Selisih sebesar Rp12,289,606. The difference amounting to
Rp14.248.349 telah dicatat sebagai penyesuaian Rp14,248,349 was recorded as an adjustment of
atas pajak penghasilan kini. current income tax.
IKSG IKSG
Pajak Penghasilan Badan 2015 2015 Corporate Income Tax
Pada tanggal 18 April 2016, IKSG melaporkan lebih On April 18, 2016, IKSG filed its overpayment on its
bayar pajak dalam SPT Tahunan Pajak Penghasilan 2015 annual tax return (SPT) amounting to
Badan 2015 sebesar Rp1.125.133. Perbedaan Rp1,125,133. The difference amounting to
dengan pencatatan IKSG pada 31 Desember 2015 Rp761,291 comparing to IKSG record as of
sebesar Rp761.291 merupakan tambahan kredit December 31, 2015 resulted from additional credit
pajak penghasilan pasal 22 sebesar Rp119.330 dan balance of income tax Article 22 amounting to
pajak penghasilan pasal 23 sebesar Rp641.960. Rp119,330 and income tax Article 23 amounting to
Rp641,960.
40. LABA PER SAHAM 40. EARNINGS PER SHARE

Perhitungan laba per saham dasar adalah sebagai The computation of basic earnings per share is as
berikut: follows:
2016 2015
Laba yang dapat diatribusikan Net profit attributable to the equity holders
kepada pemilik entitas induk untuk of parent entity for computation
perhitungan laba per saham dasar 4.521.596.208 4.521.490.578 of basic earnings per share
Total rata-rata tertimbang Weighted average number of

saham 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 holders
kepada pemilik entitas induk of parent entity
(Rupiah penuh) 762 762 (full amount)
Perseroan tidak menghitung laba per saham dilusian The Company did not calculate diluted earnings per
karena Perseroan tidak mempunyai efek berpotensi share because there was no identified effect or
saham biasa yang bersifat dilutif. dilutive potential ordinary share.
41. LIABILITAS IMBALAN KERJA 41. EMPLOYEE BENEFITS LIABILITIES
Estimasi liabilitas imbalan kerja tanggal The estimated employee benefits liabilities as of
31 Desember 2016 dan 2015 adalah sebagai berikut: December 31, 2016 and 2015 are as follows:
Imbalan kerja jangka pendek Short-term employee benefits
2016 2015
Productivity allow ances,
Tunjangan produktivitas, uang jasa, incentives, and Directors'
bonus Direktur dan Komisaris 803.435.269 795.534.083 and Commissioners' bonuses
Tunjangan pegaw ai lainnya 64.031.220 53.329.394 Other employee allow ances
Jumlah 867.466.489 848.863.477 Total



Imbalan kerja jangka panjang Long-term employee benefits
2016 2015
Liabilitas imbalan pensiun 439.935.469 326.259.420 Pension benefits liabilities
Liabilitas imbalan kerja lainnya 333.732.892 279.362.286 Other employee benefits liabilities
Liabilitas TKHT 49.361.621 47.990.591 Old-age employee benefits liabilities
Jumlah 823.029.982 653.612.297 Total
Program Imbalan Pasti Defined Benefits Plans
a. Dana Pensiun a. Pension Fund

Perseroan memperoleh persetujuan dari Menteri The Company received an approval from
Keuangan Republik Indonesia dengan Surat the Minister of Finance of the Republic of
Keputusan No. B7774/DJM/III.5/12/1976 tanggal Indonesia in Decision Letter
18 Desember 1976 untuk mendirikan Dana No. B7774/DJM/III.5/12/1976 dated
Pensiun Semen Gresik yang merupakan dana December 18, 1976 to establish a separate
pensiun manfaat pasti yang dikelola oleh trustee-administered pension fund, Dana
pengurus yang terpisah, yang memberikan Pensiun Semen Gresik, from which all
manfaat pasti bagi seluruh karyawan yang telah employees, after serving a qualifying period, are
memenuhi persyaratan tertentu apabila entitled to defined benefits on retirement,
karyawan tersebut pensiun, cacat atau disability or death.
meninggal dunia.
Entitas anak (SP dan ST) masing-masing Subsidiaries (SP and ST) received approvals
memperoleh persetujuan dari Menteri Keuangan from the Minister of Finance of the Republic of
Republik Indonesia untuk mendirikan dana Indonesia to establish separate trustee-
pensiun manfaat pasti yang dikelola oleh administered pension funds in Decision Letter
pengurus yang terpisah berdasarkan Surat No. S065/MK-II/1979 dated April 3, 1979 for
Keputusan No. S065/MK-II/1979 tanggal 3 April Dana Pensiun Semen Padang and in Decision
1979 untuk Dana Pensiun Semen Padang dan Letter No. S-016/MK.13/1989 dated January 5,
No. S-016/MK.13/1989 tanggal 5 Januari 1989 1989 as amended by Decision Letter
yang telah diubah dengan Surat Keputusan No. Kep-405/KM.17/1999 dated November 5,
No. Kep-405/KM.17/1999 tanggal 5 Nopember 1999 for Dana Pensiun Semen Tonasa, from
1999 untuk Dana Pensiun Semen Tonasa yang which all employees, after serving a qualifying
memberikan manfaat pasti bagi seluruh period, are entitled to defined benefits on
karyawan yang telah memenuhi persyaratan retirement, disability or death.
tertentu apabila karyawan tersebut pensiun,
cacat atau meninggal dunia.
Asumsi aktuarial utama yang digunakan untuk The principal actuarial assumptions used to
menentukan estimasi liabilitas imbalan kerja estimate liabilities for employee benefits under
karyawan dalam program imbalan pasti pada defined benefits plans as at
tanggal 31 Desember 2016 dan 2015 adalah December 31, 2016 and 2015 are as follows:
sebagai berikut:
2016 2015
Tabel Mortalita Indonesia 2011 (TMI'II)/ Tabel Mortalita Indonesia 2011 (TMI'II)/
Tingkat mortalita Indonesia Mortality Table 2011 (TMI'II) Indonesia Mortality Table 2011 (TMI'II) Mortality rate
Usia pensiun normal 56 tahun/years 56 tahun/years Normal retirement age
Tingkat cacat 10% dari tingkat mortalita/ 10% dari tingkat mortalita/ Disability rate
of mortality rate of mortality rate
Tingkat kenaikan gaji: Rate of salary increase:
Program pensiun 7,5% per tahun/per annum 7,5% per tahun/per annum Pension plan
Imbalan kerja lainny a 10% per tahun/per annum 10% per tahun/per annum Other employ ee benef its
Tingkat diskonto tahunan 8,3% per tahun/per annum 9% per tahun/per annum Annual discount rate
Tingkat pengembalian Expected return on plan
inv estasi 8,4% per tahun/per annum 9% per tahun/per annum assets
1% (ST: 0,5%) untuk 1% (ST: 0,5%) untuk

umur di bawah 30 tahun umur di bawah 30 tahun
dan menurun secara linear dan menurun secara linear
Tingkat pengunduran diri sampai 0% pada umur 54 tahun sampai 0% pada umur 44 tahun Voluntary resignation rate
(SP: 44 tahun)/ 1% (ST: 0,5%) (SP: 54 tahun)/ 1% (ST: 0,5%)
at less than 30 years of age at less than 30 years of age
and reducing linearly to 0% and reducing linearly to 0%
at 54 (SP: 44 years) years of age at 44 (SP: 54 years) years of age
Annual Report 2016

537
Aset dana pensiun terutama terdiri dari deposito Pension fund assets mainly consist of time
berjangka, surat-surat berharga dan investasi deposits, marketable securities, and long-term
jangka panjang dalam bentuk saham, reksadana, investments in shares of stock, mutual funds,
obligasi, tanah dan bangunan. bonds and land and buildings.
Tingkat pengembalian investasi yang diharapkan The expected rate of return on plan assets is
atas aset program ditentukan berdasarkan determined based on the market expectations
ekspektasi pasar pada tanggal pelaporan, prevailing on that date, applicable to the period
berlaku untuk periode saat kewajiban over which the obligation is to be settled.
diselesaikan.
Imbalan Pensiun Pension Benefits
Beban imbalan kerja yang dibebankan pada laporan Amounts recognized in the consolidated statement
laba rugi dan penghasilan komprehensif lain of profit or loss and other comprehensive income
konsolidasian merupakan jumlah neto dari: consists of the net total of the following amounts:
2016 2015
Biaya jasa kini 38.783.799 32.455.103 Current service cost

Biaya jasa lalu (989.733) - Past service cost
Beban bunga neto 26.677.056 12.249.045 Net interest expense
Bunga atas dampak atas aset 1.053.480 3.818.265 Interest on the effect of the asset ceiling
Penyesuaian - 1.557.901 Adjustment
Komponen dari biaya imbalan pasti Components of defined benefit costs
yang diakui dalam laba rugi 65.524.602 50.080.314 recognized in profit or loss
Pengukuran kembali Remeasurement on the net

liabilitas imbalan pasti - neto: defined benefit liability:
Perubahan dampak batas atas Change in the effect of the asset ceiling,
aset, tidak termasuk bunga neto (12.758.828) (38.677.123) excluding amount of net interest expense
Keuntungan dan kerugian aktuarial
yang timbul dari perubahan Actuarial gains and losses arising from
asumsi keuangan 137.278.789 (48.463.015) changes in financial assumptions
Keuntungan dan kerugian aktuarial
yang timbul dari penyesuaian Actuarial gains and losses arising from
atas pengalaman 1.787.826 74.729.758 experience adjustments
Imbal hasil aset program (tidak termasuk
jumlah yang dimasukkan dalam beban Return on plan assets (excluding amounts
bunga neto) (89.613.168) 132.926.933 included in net interest expense)
Komponen beban imbalan pasti Components of defined benefit costs
yang diakui dalam penghasilan recognised in other comprehensive
komprehensif lain 36.694.619 120.516.553 income
Jumlah 102.219.221 170.596.867 Total
Liabilitas neto imbalan kerja yang diakui di laporan The net liability for employee benefits recognized in
posisi keuangan konsolidasian adalah sebagai the consolidated statements of financial position is
berikut: as follows:
2016 2015
Nilai kini dari kew ajiban 2.285.343.866 1.978.492.347 Present value of the obligations
Nilai w ajar aset (1.845.408.397) (1.663.938.275) Fair value of plan assets
Defisit 439.935.469 314.554.072 Deficit
Batasan atas aset yang diakui - 11.705.348 Restriction on asset recognized
Liabilitas bersih 439.935.469 326.259.420 Net liability



Mutasi nilai kini liabilitas imbalan adalah sebagai Movements of the present value of defined benefits
berikut: obligations is as follows:
2016 2015
Nilai kini liabilitas imbalan, Present value of the benefit
pada 1 Januari 1.978.492.347 1.871.233.632 obligations, January 1
Biaya jasa lalu (989.733) - Past service cost
Biaya bunga 177.927.290 153.546.283 Interest cost
Keuntungan aktuaria pada liabilitas: Gains on actuarial liabilities:
- Keuntungan aktuaria - Actuarial gains from
dari perubahan asumsi keuangan 137.278.789 (48.463.015) change in financial assumption
- Kerugian aktuaria dari - Actuarial losses from
penyesuaian atas pengalaman 1.787.826 74.729.758 experience adjustments
Pembayaran manfaat pensiun (119.751.214) (110.462.526) Pension benefits paid
Akuisisi Entitas Anak 66.331.245 - Acquisition of subsidiaries
Kontribusi peserta 5.483.517 5.453.112 Participant contributions
Nilai kini liabilitas im balan, Present value of the benefit
pada 31 Desem ber 2.285.343.866 1.978.492.347 obligation, Decem ber 31
Perubahan dalam nilai wajar aset program adalah Changes in the fair value of plan assets are as
sebagai berikut: follows:
2016 2015
Nilai w ajar aset program pada 1 Januari 1.663.938.275 1.723.156.881 Fair value of plan assets at January 1
Akuisisi entitas anak 21.460.092 - Acquisition of subsidiaries
Pendapatan bunga 151.250.234 141.297.238 Interest income
Pengukuran kembali atas Remeasurement on the net
nilai w ajar neto aset program: fair value of plan assets:
Keuntungan/ (kerugian) aktuaria
pada aset program 89.613.168 (132.926.933) Gain/ (loss) on plan assets actuarial
Kontribusi pemberi kerja 32.224.101 37.365.090 Employer contributions
Kontribusi peserta 5.483.517 5.453.112 Participant contributions
Pembayaran manfaat (118.560.990) (110.407.113) Benefits paid
Nilai w ajar aset program Fair value of plan assets
pada 31 Desem ber 1.845.408.397 1.663.938.275 at Decem ber 31
Kategori utama aset program sebagai persentase The major categories of plan assets as a percentage
dari nilai wajar jumlah aset program adalah sebagai of the fair value of the total plan assets are as
berikut: follows:
2016 2015
Surat Berharga Negara 15% 5% Government Bonds
Kas dan deposito 10% 20% Cash and time deposit
Saham 13% 9% Stocks
Obligasi 21% 21% Bonds
Reksadana 13% 12% Mutual funds
Tanah dan bangunan 10% 12% Land and buildings
Penempatan langsung 18% 21% Direct placement
100% 100%
Annual Report 2016

539
Imbalan kerja lainnya Other employee benefits

Beban imbalan kerja lainnya yang dibebankan pada Other employee benefits expenses recognized in
laporan laba rugi dan penghasilan komprehensif lain the consolidated statements of profit or loss and
konsolidasian merupakan jumlah bersih dari: other comprehensive income consists of the net total
of the following amounts:
2016 2015
Pengukuran kembali liabilitas (aset) Remeasurement of the net liabilities
imbalan jangka panjang lainnya 5.531.913 (2.368.896) (aset) of other long-term benefits
Biaya jasa lalu dan keuntungan Past service cost and
(kerugian) dari penyelesaian (497.443) 36.002.161 gain (loss) from settlements
Komponen dari biaya imbalan pasti Components of defined benefit costs

yang diakui dalam laba rugi 79.635.955 97.424.796 recognised in profit or loss
Pengukuran kembali liabilitas Remeasurement on the net
imbalan pasti - neto defined benefit liability:
Keuntungan aktuarial
yang timbul dari perubahan Actuarial gains arising from
Kerugian aktuarial
yang timbul dari penyesuaian Actuarial losses arising from
atas pengalaman (4.395.956) 11.747.325 experience adjustment
Komponen beban imbalan pasti Components of defined benefit costs
yang diakui dalam penghasilan recognised in other comprehensive
komprehensif lain 6.101.479 (37.029.572) income
Jumlah 85.737.434 60.395.224 Total
Mutasi nilai kini kewajiban imbalan adalah sebagai Movement of the present value of defined benefits
berikut: obligations is as follows:
2016 2015
Nilai kini kew ajiban imbalan Present value of the benefit
pada 1 Januari 279.362.286 251.575.252 obligations at January 1,
Keuntungan aktuarial Actuarial gains arising from
yang timbul dari liabilitas lain-lain 5.531.913 (2.368.896) other long-term benefits
Biaya jasa lalu, termasuk Past service cost and losses
kerugian dari kurtailmen (497.443) 36.002.161 from settlements
Pengukuran kembali liabilitas Remeasurement on the net
imbalan pasti - neto: defined benefit liability:
Keuntungan aktuarial
yang timbul dari perubahan Actuarial gains arising from
Kerugian aktuarial
yang timbul dari penyesuaian Actuarial losses arising from
atas pengalaman (4.395.956) 11.747.325 experience adjustment
Akuisisi entitas anak 3.426.783 - Acquisition of subsidiary
Pembayaran manfaat (34.793.611) (32.608.190) Benefits payment
Present value of the benefit
Nilai kini kew ajiban im balan 333.732.892 279.362.286 obligation

- 124 -


Perubahan satu poin persentase asumsi tingkat A one percentage point change in the assumed
diskonto akan memiliki efek sebagai berikut: discount rate would have the following effects:
Kenaikan/ Penurunan/
Increase Decrease
Pengaruh keseluruhan biaya Effect on the aggregate current
jasa 74.556.467 97.086.092 service cost
Pengaruh kew ajiban Effect on the employee
imbalan kerja 2.342.527.888 2.863.612.084 benefit liabilities
Durasi rata-rata dari kewajiban imbalan pada tanggal The average duration of the benefit obligation at
31 Desember 2016 adalah 13 tahun untuk program December 31, 2016 is 13 years for pension benefits
dana pensiun dan 15 tahun untuk program manfaat and 15 years for other employee benefits (2015: 12
lainnya (2015: 12 tahun dan 15 tahun). years and 15 years).
Pada tanggal 31 Desember 2016 dan 2015, Grup As of December 31, 2016 and 2015, the Group
diharapkan membayar iuran masing-masing sebesar expected to make a contribution amounting to
Rp34.916.857 dan Rp31.202.546 untuk program Rp34,916,857 and Rp31,202,546, respectively to
manfaat pasti selama tahun anggaran berikutnya. the defined benefit plans during the next financial
year.
Riwayat penyesuaian adalah sebagai berikut: The history of experience adjustment is as follows:
31 Desember/ 31 Desember/ 31 Desember/ 31 Desember/ 31 Desember/

December 31, December 31, December 31, December 31, December 31,
2016 2015 2014 2013 2012
Dana Pensiun Pension benefits
Nilai kini kewajiban imbalan (2.285.343.866) (1.978.492.347) (1.871.233.632) (1.634.731.827) (1.670.034.700) Present value of the obligation
Aset program 1.845.408.397 1.663.938.275 1.723.156.881 1.737.531.225 1.376.813.999 Fair value of plan assets
Surplus / (Defisit) (439.935.469) (314.554.072) (148.076.751) 102.799.398 (293.220.701) Surplus / (Deficit)
Penyesuaian liabilitas Experience adjustments
program (1.787.826) (74.729.758) (33.505.625) (11.426.610) (45.706.441) on liabilities
Penyesuaian aset Experience adjustments
program 89.613.168 (132.926.933) 13.584.461 (5.232.377) (20.929.509) on plan liabilities
Manfaat Lainnya Other employee benefits

Nilai kini kewajiban imbalan (333.732.892) (279.362.286) (251.575.251) (220.811.946) (240.134.500) Present value of the obligation
Penyesuaian liabilitas Experience adjustments
program 4.780.186 (11.747.325) 1.504.001 - (9.124.821) on liabilities
b. Program tunjangan kesejahteraan hari tua b. Old-age benefit program
Perseroan dan entitas anak (SP dan ST) The Company and its subsidiaries (SP and ST)
memberikan imbalan pascakerja dalam bentuk provide post-employment benefits under old-
Program Tunjangan Kesejahteraan Hari Tua age benefit programs. The Company and its
(TKHT) bekerja sama dengan Asuransi Jiwa subsidiaries (SP and ST) have entered into
Bersama Bumiputera 1912 (AJB BP). agreements with Asuransi Jiwa Bersama
Berdasarkan perjanjian kerja sama tersebut, Bumiputera 1912 (AJB BP) under which the
Perseroan dan entitas anak (SP dan ST) Company and its subsidiaries (SP and ST) pay
membayar premi asuransi kepada AJB BP insurance premiums to AJB BP at rates of 5%,
masing-masing sebesar 5%, 8% dan 10% dari 8% and 10%, respectively, of employees’
gaji dasar asuransi karyawan, dimana tingkat insurable salaries, which salaries are subject to
kenaikan tahunan gaji dibatasi maksimum a maximum annual increase of 7.5% per annum
sebesar 7,5% per tahun (7% per tahun untuk (7% per annum for ST). AJB BP is obligated to
ST). AJB BP harus membayar manfaat program pay program benefits to eligible employees or
tersebut kepada karyawan yang berhak atau their dependants upon employees attaining 56
kepada tanggungan mereka pada saat karyawan years of age, upon resignation, or in event of
mencapai usia 56 tahun, mengundurkan diri, death or disability of the employees, based on
atau meninggal atau cacat berdasarkan specified multiples of employees’ insurable
perkalian tertentu dari gaji dasar asuransi pada salaries at the time benefits are due to be paid.
saat manfaat program tersebut terutang.
Annual Report 2016

541
- 125 -
Jumlah beban sehubungan dengan program ini The total expense in relation to these programs
untuk periode yang berakhir pada tanggal- during the period ended December 31, 2016
tanggal 31 Desember 2016 dan 2015 masing- and 2015 amounted to Rp8,470,394 and
masing sebesar Rp8.470.394 dan Rp9.071.474. Rp9,071,474 respectively.
Nilai kini kewajiban dan nilai wajar kekayaan atas The present value of the obligations and the fair
program tersebut pada tanggal value of the assets relating to these programs
31 Desember 2016 dan 2015 adalah as of December 31, 2016 and 2015 are
Rp288.060.167 dan Rp188.890.865; dan, Rp288,060,167 and Rp188,890,865; and,
Rp263.790.569 dan Rp131.700.274. Perseroan Rp263,790,569 and Rp131,700,274,
dan SP tidak mengakui liabilitas atas selisih nilai respectively. The Company and SP do not
kini kewajiban dengan nilai wajar kekayaan recognize any liabilities corresponding to the
karena manajemen Perseroan dan SP amount of the program assets, since
berkeyakinan AJB BP akan dapat memenuhi management of the Company and SP believe
kewajiban tersebut pada saat jatuh tempo. that AJB BP will be able to fulfill its obligations
under these programs on the due dates.
saldo liabilitas TKHT (ST) masing-masing outstanding balance of old-age employee
sebesar Rp49.361.621 dan Rp47.990.591. benefits obligation (ST) amounted to
Rp49,361,621 and Rp47,990,591, respectively.
c. Program bantuan pemeliharaan kesehatan c. Pensioners health care assistance program

purnakarya
Perseroan dan entitas anak (SP) memberikan The Company and its subsidiary (SP) provide
imbalan pascakerja dalam bentuk Program post-employment benefits under a pensioners’
Bantuan Pemeliharaan Kesehatan Purnakarya health care assistance program for its
(“BPKP”) untuk karyawan tetap bekerja sama permanent employees. The Company and SP
dengan AJB BP. Perseroan dan SP membayar entered into an agreement with AJB BP under
premi bulanan kepada AJB BP masing-masing which the Company and SP pays monthly
sebesar 4,5% dari gaji dasar asuransi karyawan, insurance premiums to AJB BP at the rate of
dimana tingkat kenaikan tahunan gaji dasar 4.5% of employees’ insurable salaries, which
asuransi tersebut dibatasi maksimum sebesar are subject to a maximum annual increase of
7,5% pertahun. AJB BP harus membayar 7.5% per annum. AJB BP is obligated to pay
manfaat program tersebut setiap tahun kepada annual program benefits to eligible employees
karyawan yang berhak selama peserta masih during their remaining lives upon employees
hidup setelah karyawan mencapai usia 56 tahun, attaining 56 years of age, upon resignation, or
mengundurkan diri, meninggal atau cacat in event of death or disability of the employees,
berdasarkan perkalian tertentu dari gaji dasar based on specified multiplies of employees’
asuransi pada saat manfaat program tersebut insurable salaries at the time benefits are due
terutang. to be paid.
Total beban sehubungan dengan program ini The total expense in relation to this program for
untuk periode yang berakhir pada tanggal the year ended December 31, 2016 and 2015
31 Desember 2016 dan 2015 masing-masing amounted to Rp1,353,418 and Rp1,445,946,
sebesar Rp1.353.418 and Rp1.445.946. respectively.
Nilai kini kewajiban dan nilai wajar kekayaan atas The present value of the obligations and the fair
program tersebut pada tanggal 31 Desember value of the assets relating to these programs
2016 dan 2015 adalah Rp116.648.809 dan as of December 31, 2016 and 2015 are
Rp161.443.412; dan Rp88.469.602 dan Rp116,648,809 and Rp161,443,412; dan
Rp85.846.837. Rp88,469,602 and Rp85,846,837.
Perseroan dan SP tidak mengakui liabilitas atas The Company and SP has not recognized any
selisih nilai kini kewajiban dengan nilai wajar excess of the liabilities corresponding to the
kekayaan karena manajemen Perseroan dan SP amount of the fair value of program assets,
berkeyakinan AJB BP akan dapat memenuhi since the management of the Company and SP
kewajiban tersebut pada saat jatuh tempo. believes that AJB BP will be able to fulfill its
obligations under this program on the due
dates.


d. Program kesejahteraan karyawan d. Employee welfare program
Entitas anak (SP) memberikan imbalan The Company’s subsidiary (SP) provides post-
pascakerja dalam bentuk Program employment benefits under an employee
Kesejahteraan Karyawan untuk karyawan tetap welfare program for its permanent employees
bekerja sama dengan AJB BP. Berdasarkan which are covered under an agreement with
perjanjian kerja sama tersebut, SP membayar AJB BP. SP pays monthly insurance premiums
premi bulanan kepada AJB BP sebesar 3% dari to AJB BP at the rate of 3% of employees’
gaji dasar asuransi karyawan, dimana kenaikan insurable salaries, which are subject to a
tingkat kenaikan gaji dasar asuransi tersebut maximum annual increase of 7.5% per annum.
dibatasi maksimum sebesar 7,5% pertahun. AJB AJB BP is obligated to pay annual program
BP harus membayar manfaat program tersebut benefits to eligible employees or their
kepada karyawan yang berhak atau kepada dependants upon employees attaining 56 years
tanggungan mereka pada saat karyawan of age, upon resignation, or in event of death or
mencapai usia 56 tahun, mengundurkan diri, disability of the employees, based on specified
meninggal atau cacat berdasarkan perkalian multiples of employees’ insurable salaries at the
tertentu dari gaji dasar asuransi pada saat time benefits are due to be paid. SP
manfaat program tersebut terutang. Manajemen management believes that AJB BP will be able
SP berkeyakinan AJB BP akan dapat memenuhi to fulfill its obligations under this program on the
kewajiban tersebut pada saat jatuh tempo. due dates.
Total beban sehubungan dengan program ini The total expense in relation to this program
untuk periode yang berakhir pada tanggal during the period ended December 31, 2016
31 Desember 2016 dan 2015 masing-masing and 2015 amounted to Rp763,680 and
sebesar Rp763.680 dan Rp832.349. Rp832,349, respectively.
Nilai kini kewajiban dan nilai wajar kekayaan atas The present value of the obligation and the fair
program tersebut pada tanggal value of the asset relating to this program as of
31 Desember 2016 dan 2015 Rp9.724.526 dan December 31, 2016 and 2015 amounted to
Rp11.727.578; dan Rp10.028.228 dan Rp9,724,526 and Rp11,727,578; and
Rp12.118.642. SP tidak mengakui liabilitas atas Rp10,028,228 and Rp12,118,642, respectively.
selisih nilai kini kewajiban dengan nilai wajar SP has not recognized any liabilities
kekayaan karena manajemen berkeyakinan AJB corresponding to the amount of the program
BP akan dapat memenuhi kewajiban tersebut assets, since management believes that AJB
pada saat jatuh tempo. BP will be able to fulfill its obligations under this
program on the due dates.
Program Iuran Pasti Defined Contribution Plans
a. Dana Pensiun Lembaga Keuangan (DPLK) a. Dana Pensiun Lembaga Keuangan (DPLK)
Karyawan Perseroan mengikuti program pensiun The Company’s employees joined a defined
iuran pasti yang meliputi semua karyawan tetap. contribution plan covering all permanent
Program ini dikelola oleh Dana Pensiun Lembaga employees. The plan is managed by Dana
Keuangan PT Bank Negara Indonesia (Persero) Pensiun Lembaga Keuangan PT Bank Negara
Tbk (DPLK BNI) dan DPLK Allianz-Indonesia Indonesia (Persero) Tbk (DPLK BNI) and DPLK
yang akta pendiriannya telah disahkan oleh Allianz-Indonesia, for which the deed of
Menteri Keuangan Republik Indonesia dengan establishments were approved by the Minister
Surat Keputusan masing-masing No. KEP- of Finance of the Republic of Indonesia in
1100/KM.17/1998 dan No. KEP-129/KM.10/2007, Decision Letters No. KEP-1100/KM.17/1998
tanggal 23 Nopember 1998 dan 9 Juli 2007. and No. KEP-129/KM.10/2007, respectively,
Imbalan pensiun akan diberikan apabila karyawan dated November 23, 1998 and July 9, 2007.
tersebut pensiun, cacat atau meninggal dunia. Employees, after serving a qualifying period,
Iuran untuk program pensiun tersebut adalah are entitled to benefits on retirement, disability
sebesar 20% dari gaji bulanan karyawan dan or death. Pension fund contributions are 20% of
menjadi beban Perseroan. the employees’ monthly salaries, which are
borne by the Company.
Annual Report 2016

543
Entitas anak (SP dan ST) memberikan imbalan The Company’s subsidiaries (SP and ST)
iuran pasti untuk karyawan tetap yang provide defined contribution benefits for all of
diselenggarakan masing-masing oleh DPLK their permanent employees, which plans are
Avrist Assurance dan DPLK Jiwasraya. SP dan managed by DPLK Avrist Assurance and DPLK
ST memberikan kontribusi bulanan kepada Jiwasraya, respectively. SP and ST make
DPLK masing-masing sebesar 18% dari gaji monthly contributions to the DPLK amounting to
prestasi optimal dan 5% dari gaji dasar pensiun. 18% of employees’ take home pay salaries and
Entitas anak mengakui utang iuran pada DPLK 5% pensionable based salaries, respectively.
pada tahun dimana karyawan memberikan The subsidiaries recognize contributions
jasanya. Untuk SP terdapat tambahan kontribusi payable to the DPLK when an employee has
sebesar 18,46% dari gaji dasar pensiun untuk rendered service during the year. Additional
karyawan tetap yang diangkat setelah tanggal 1 contribution amounting to 18.46% of the
Oktober 2007. employees’ pensionable base salaries for
permanent employees’ SP hired after
October 1, 2007.
untuk periode yang berakhir pada tanggal- during the period ended December 31, 2016
tanggal 31 Desember 2016 dan 2015 masing- and 2015 amounted to Rp66,326,583 and
masing sebesar Rp66.236.583 dan Rp66,139,100.
Rp66.139.100.
Entitas anak (UTSG dan IKSG) menyelenggarakan The subsidiaries (UTSG and IKSG) established
program pensiun iuran pasti untuk semua a defined contribution plan covering all its
karyawan tetapnya yang dikelola masing-masing permanent employees, which are managed by
oleh Dana Pensiun Astra Dua dan Dana Pensiun Dana Pensiun Astra Dua and Dana Pensiun
Lembaga Keuangan Tugu Mandiri. Lembaga Keuangan Tugu Mandiri.
Iuran pensiun yang ditanggung karyawan UTSG Contribution paid by UTSG and IKSG’s
dan IKSG masing-masing adalah 3,2% dan 35% employees are 3.2% and 35%, respectively of
dari penghasilan dasar pensiun (PhDP), the pension base salaries, while UTSG and
sedangkan yang ditanggung UTSG dan IKSG IKSG paid 6.4% and 65%, respectively of the
masing-masing adalah 6,4% dan 65% dari pension base salaries.
PhDP.
untuk periode yang berakhir pada tanggal- during the year ended December 31, 2016 and
tanggal 31 Desember 2016 dan 2015 masing- 2015 amounted to Rp999,367,546 and
masing sebesar Rp999.367.546 dan Rp924,522,501, respectively.
Rp924.522.501.
42. SIFAT DAN TRANSAKSI PIHAK BERELASI 42. 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/  Shareholder
Government of Republic of Indonesia
 Entitas sepengendali: - PT Semen Baturaja (Persero) Tbk  Entities under

Badan Usaha Milik - PT Pertamina (Persero) common control:
Negara - PT Iglas State-owned
- PT Kereta Api Indonesia (Persero) Enterprise
- PT Dahana (Persero)
- PT Wijaya Karya (Persero) Tbk
- PT Pelabuhan Indonesia II (Persero)
- PT Pelabuhan Indonesia III (Persero)
- PT Pelabuhan Indonesia IV (Persero)
- PT Pindad (Persero)
- PT Pelni (Persero)
- PT Pertamina (Persero)
- PT Waskita Karya (Persero) Tbk

- 128 -



- PT Kereta Api Indonesia (Persero)
- PT Asuransi Kredit Indonesia (Persero)
- PT Petrokimia Kayaku
- PT Surveyor Indonesia (Persero)
- PT Sucofindo (Persero)
- PT Varuna Tirta Prakasya (Persero)
- PT Perusahaan Perdagangan Indonesia
(Persero)
- PT Perusahaan Listrik Negara (Persero)
- PT Aneka Tambang (Persero) Tbk
- PT Telekomunikasi Indonesia (Persero) Tbk
- PT Prima Manunggal (Persero)
- PT Barata Indonesia (Persero)
- PT Hutama Karya (Persero)
- PT Nindya Karya (Persero)
- PT Pembangunan Perumahan (Persero) Tbk
- PT Perkebunan Nusantara X (Persero)
- PT Asuransi Jasa Indonesia (Persero)
- PT Jamsostek (Persero)
- PT Wijaya Karya dan Konstruksi
- PT Asuransi Jiwasraya (Persero)
- PT Petrokimia Gresik (Persero)
- PT Pos Indonesia (Persero)
- Perum Perhutani Unit II Jatim
- PT Adhi Karya (Persero) Tbk
- PT Boma Bisma Indra (Persero)
- PT Bank Mandiri (Persero) Tbk
- PT Bank Rakyat Indonesia (Persero) Tbk
- PT Bank Negara Indonesia (Persero) Tbk
- PT Bank Tabungan Negara (Persero) Tbk
- PT Bank Syariah Mandiri
- PT Bank Syariah BRI
- PT Rekayasa Industri (Persero)
- PT Asuransi Ekspor Indonesia (Persero)
- PT Petrosida Gresik
- PT Petrokopindo Cipta Selaras
- PT Aneka Jasa Gradika
- PU Bina Marga
- PT Pertamina Patra Niaga
- BPJS Kesehatan
- PT Brantas Abipraya
- PT Krakatau Steel (Persero) Tbk
 Entitas asosiasi - PT Swadaya Graha  Associates

- PT Igasar
- PT Varia Usaha (sampai 31 Oktober 2016/ until
October 31, 2016)
- PT Waru Abadi (sampai 31 Oktober 2016/ until
October 31, 2016)
- PT Varia Usaha Dharma Segara (sampai 31
Oktober 2016/ until October 31, 2016)
- PT Varia Usaha Lintas Segara (sampai 31
Oktober 2016/ until October 31, 2016)
- PT Varia Usaha Bahari (sampai 31 Oktober
2016/ until October 31, 2016)
- PT Varia Usaha Beton (sampai 30 Juni 2016/
until June 30, 2016)
- 129 -
Annual Report 2016
545

 Perusahaan yang - Hanoi General Export - Import Company  Companies
dikendalikan oleh suatu (Geleximco) ontrolled by an
entitas yang memiliki - Thang Long Power JSC entity which has
pengaruh signifikan - Sapa Geleximco JSC significant influence
pada entitas anak - Geleximco Trading and Investment JSC over subsidiary
- Southern General Import dan Export JSC
- PT United Tractors Tbk
 Entitas dimana - PT Swabina Gatra  Entities which the

Perseroan memiliki - PT Swabina Gatra Travel Company has
pengaruh signifikan - Koperasi Warga Semen Gresik indirect significant
secara tidak langsung - PT Konsulta influence
- PT Cipta Nirmala
- PT Bima Sepaja Abadi
 Entitas dimana entitas - PT Prima Karya Manunggal  Entities which

anak memiliki pengaruh - PT Pelayaran Tonasa Lines subsidiaries have
signikan secara tidak - PT PBM Biringkasi Raya indirect significant
langsung - Koperasi Karyawan Semen Tonasa influence
- Koperasi Keluarga Besar Semen Padang
- PT EMKL Topabiring
- PT United Tractors Tbk
- PT Pasoka Sumber Karya
- PT Yasiga Sarana Utama
- Yayasan Rumah Sakit Semen Padang
- Yayasan Igasar
- PT Pamapersada Nusantara
- PT Kabau Sirah Semen Padang
- PT Sumatera Utara Perkasa Semen
- Yayasan Kesehjateraan Semen Tonasa
- Tonasa Tour & Travel
- PT Kanitra Mitra Jaya
- PT Andalan Multi Kencana
- PT Selo Gili Makmur
- Koperasi Warga UTSG
- PT Eternit Gresik
 Entitas adalah suatu - Dana Pensiun Semen Gresik  Entities is a post-

program imbalan pasca - Dana Pensiun Semen Padang employment benefit
kerja untuk imbalan - Dana Pensiun Semen Tonasa plan for the benefit
kerja dari Perseroan of employees of the
atau entitas anak Company or
subsidiaries



a. Transaksi-Transaksi Pihak Berelasi a. Transactions with Related Parties
Rincian transaksi dengan pihak berelasi adalah The details of tramsactions with related parties
sebagai berikut: are as follows:
2016 2015
Penjualan produk Sales of goods
Entitas sepengendali - BUMN: Under common control - SOE:
PT Semen Baturaja (Persero) Tbk 95.537.873 32.173.172 PT Semen Baturaja (Persero) Tbk
PT Adhi Karya (Persero) Tbk 91.311.542 - PT Adhi Karya (Persero) Tbk
PT Hutama Karya (Persero) 40.328.561 - PT Hutama Karya (Persero)
Perusahaan Perdagangan Perusahaan Perdagangan
Indonesia (Persero) 29.100.104 65.252.597 Indonesia (Persero)
PT Waskita Karya (Persero) 12.686.472 - PT Waskita Karya (Persero)
PT Pembangunan PT Pembangunan
Perumahan (Persero) Tbk 9.498.620 - Perumahan (Persero) Tbk
PT Brantas Abipraya (Persero) 6.442.580 - PT Brantas Abipraya (Persero)
PT Wijaya Karya (Persero) 1.941.928 - PT Wijaya Karya (Persero)
PT Petrokimia Kayaku 1.359.132 - PT Petrokimia Kayaku
PT Petrokopindo Cipta Selaras 1.243.620 - PT Kopindo Cipta Sejahtera
PT Petrosida Gresik 673.920 - PT Petrosida Gresik
PT Aneka Jasa Gradika 227.114 - PT Aneka Jasa Gradika
290.351.466 97.425.769
Entitas asosiasi: Associates:
PT Varia Usaha - sampai PT Varia Usaha - until
31 Oktober 2016 1.548.095.243 1.994.907.717 October 31, 2016
PT Igasar 278.438.454 313.798.175 PT Igasar
PT Sw adaya Graha 21.140.263 - PT Sw adaya Graha
1.847.673.960 2.308.705.892
Pihak berelasi lainnya: Other related parties:
Koperasi Warga Semen Gresik 1.580.554.501 1.756.232.766 Koperasi Warga Semen Gresik
PT Waru Abadi - sampai PT Waru Abadi - until
31 Oktober 2016 597.452.655 698.862.771 October 31, 2016
PT Prima Karya Manunggal 88.618.074 95.299.392 PT Prima Karya Manunggal
Koperasi Karyaw an Koperasi Karyaw an
Semen Padang 51.457.427 30.012.055 Semen Padang
Semen Tonasa 14.536.211 47.733.465 Semen Tonasa
PT Graha Sarana Gresik 2.492.784 - PT Graha Sarana Gresik
Koperasi Karyaw an Usaha Koperasi Karyaw an Usaha
Sejahtera Bersama 635.800 - Sejahtera Bersama
Semen Tonasa 306.000 - Semen Tonasa
PT Yasida Makmur Abadi 29.000 - PT Yasida Makmur Abadi
PT Kopindo Cipta Sejahtera 25.250 - PT Kopindo Cipta Sejahtera
Pamapersada Nusantara - 25.946.432 Pamapersada Nusantara
PU Bina Marga - 3.099.834 PU Bina Marga
2.336.107.702 2.657.186.715
Jum lah 4.474.133.128 5.063.318.376 Total
Sebagai persentase terhadap As a percentage of
total pendapatan 17,12% 18,79% total revenue
Annual Report 2016

547
2016 2015
Penjualan produk/jasa lainnya Sale of other goods/services
PT Bank Mandiri (Persero) Tbk 1.338.970 115.124 PT Bank Mandiri (Persero) Tbk
PT Adhi Karya (Persero) 662.653 - PT Adhi Karya (Persero)
PT Perkebunan Nusantara X PT Perkebunan Nusantara X
(Persero) 532.345 529.738 (Persero)
PT Pelabuhan Indonesia II 289.809 289.809 PT Pelabuhan Indonesia II
(Persero) Tbk 227.087 61.427 (Persero) Tbk
PT Pembangunan Perumahan PT Pembangunan Perumahan
PT Telekomunikasi Indonesia PT Telekomunikasi Indonesia
(Persero) Tbk 76.538 31.749 (Persero) Tbk
PT Waskita Karya (Persero) - 1.000.000 PT Waskita Karya (Persero)
PT Asuransi Jasa PT Asuransi Jasa
Indonesia (Persero) - 964.587 Indonesia (Persero)
PT Petrokimia Gresik (Persero) - 260.989 PT Petrokimia Gresik (Persero)
PT Iglas (Persero) - 89.000 PT Iglas (Persero)
3.314.164 3.342.423
31 Oktober 2016 19.585.761 11.321.481 October 31, 2016
PT Sw adaya Graha 9.426.471 9.051.744 PT Sw adaya Graha
PT Igasar 2.290.919 - PT Igasar
31.303.151 20.373.225
Yayasan Rumah Sakit Yayasan Rumah Sakit
PT Varia Usaha Beton - 3.471.225 2.077.721 PT Varia Usaha Beton -
sampai 30 Juni 2016 until June 30, 2016
PT Varia Usaha Lintas Segara - 958.919 - PT Varia Usaha Lintas Segara -
sampai 31 Oktober 2016 until October 31, 2016
PT Cipta Nirmala 828.415 1.755.782 PT Cipta Nirmala
PT Sw abina Gatra 651.593 693.481 PT Sw abina Gatra
Koperasi Warga Semen Gresik 637.579 1.308.323 Koperasi Warga Semen Gresik
PT Eternit Gresik 478.533 454.814 PT Eternit Gresik
PT Prima Karya Manunggal 369.065 - PT Prima Karya Manunggal
Yayasan Semen Indonesia Yayasan Semen Indonesia
Foundation 322.365 - Foundation
PT Varia Beton Kencana 274.817 - PT Varia Beton Kencana
PT. EMKL Topabbiring 266.025 - PT. EMKL Topabbiring
PT Biringkasi Raya 203.730 - PT Biringkasi Raya
PT Konsulta 167.315 1.670 PT Konsulta
Koperasi Karyaw an Warga Koperasi Karyaw an Warga
Varia Usaha Beton 73.430 - Varia Usaha Beton
Dana Pensiun Semen Gresik 55.098 66.966 Dana Pensiun Semen Gresik
PT Sukses Sejahtera Bersama PT Sukses Sejahtera Bersama
Indonesia 23.997 - Indonesia
PT Waru Abadi - 13.410 5.218 PT Waru Abadi -
sampai 31 Oktober 2016 until October 31, 2016
Lain-lain 273.372 2.403.892 Others
21.165.629 15.191.561
Jumlah 55.782.944 38.907.209 Total
pendapatan operasi lainnya 21.99% 84.29% other operating income



2016 2015
Pem belian produk dan jasa Purchases of goods and services
PT Perusahaan Listrik Negara PT Perusahaan Listrik Negara
(Persero) 1.790.934.780 2.482.467.321 (Persero)
(Persero) 288.459.702 278.860 (Persero)
PT Varuna Tirta Prakasya 134.641.887 128.364.618 PT Varuna Tirta Prakasya
PT Waskita Karya (Persero) 114.437.197 117.776.315 PT Waskita Karya (Persero)
PT Wijaya Karya Industri dan PT Wijaya Karya Industri dan
Konstruksi 95.722.256 - Konstruksi
PT Pertamina (Persero) 89.949.820 124.453.942 PT Pertamina (Persero)
PT Nindya Karya (Persero) 88.820.880 27.932.905 PT Nindya Karya (Persero)
PT Petrokima Gresik (Persero) 77.617.159 95.036.338 PT Petrokima Gresik (Persero)
PT Bukit Asam Prima 62.667.346 - PT Bukit Asam Prima
PT Hutama Karya (Persero) 48.205.987 10.974.375 PT Hutama Karya (Persero)
PT Pelabuhan Indonesia II PT Pelabuhan Indonesia II
(Persero) 46.906.875 47.837.190 (Persero)
PT Adhi Karya (Persero) Tbk 44.588.227 - PT Adhi Karya (Persero) Tbk
PT Pindad (Persero) 42.085.787 17.027.693 PT Pindad (Persero)
Indonesia (Persero) 38.749.660 44.303.618 Indonesia (Persero)
PT Jamsostek (Persero) 37.244.202 33.192.408 PT Jamsostek (Persero)
BPJS Kesehatan - 2.493.265 BPJS Kesehatan
PT Kereta Api Indonesia PT Kereta Api Indonesia
(Persero) 29.934.195 34.313.498 (Persero)
PT Dahana (Persero) 27.340.785 45.171.190 PT Dahana (Persero)
PT Sucofindo (Persero) 13.390.653 10.200.776 PT Sucofindo (Persero)
PT Barata Indonesia (Persero) 11.976.292 245.000 PT Barata Indonesia (Persero)
PT Pelabuhan Indonesia IV PT Pelabuhan Indonesia IV
(Persero) 10.208.964 18.756.230 (Persero)
PT Bank Mandiri 10.074.583 - PT Bank Mandiri
PT Telekomunikasi Indonesia PT Telekomunikasi Indonesia
PT Telekomunikasi Seluler 1.850.500 4.123.423 PT Telekomunikasi Seluler
PT Aneka Tambang PT Aneka Tambang
PT Asuransi Kredit Indonesia PT Asuransi Kredit Indonesia
(Persero) 1.152.974 2.111.825 (Persero)
PT Surveyor Indonesia (Persero) 813.820 578.256 PT Surveyor Indonesia (Persero)
PT Bank Negara Indonesia 679.167 - PT Bank Negara Indonesia
Perum Perhutani Unit II Jatim 648.670 805.970 Perum Perhutani Unit II Jatim
PT Asuransi Jiw asraya (Persero) 567.675 30.855.884 PT Asuransi Jiw asraya (Persero)
PT Pos Indonesia (Persero) 399.406 736.001 PT Pos Indonesia (Persero)
PT Pertamina Patra Niaga 346.098 43.642.138 PT Pertamina Patra Niaga
PT Pelabuhan Indonesia III PT Pelabuhan Indonesia III
(Persero) 279.450 105.000 (Persero)
PT Bank Tabungan Negara 96.132 - PT Bank Tabungan Negara
LKBN Antara 48.500 478.818 LKBN Antara
PT Brantas Abipraya (Persero) 4.354 - PT Brantas Abipraya (Persero)
Indonesia (Persero) 3.420 - Indonesia
PT Rekayasa Industri (Persero) - 65.076.525 PT Rekayasa Industri (Persero)
PT. Bank Rakyat Indonesia - 9.129.415 PT. Bank Rakyat Indonesia
PT Boma Bisma Indra (Persero) - 94.500 PT Boma Bisma Indra (Persero)
PT Pelni - 7.447 PT Pelni
3.122.045.571 3.411.657.778
31 Oktober 2016 725.665.083 518.099.916 October 31, 2016
1.166.133.797 788.287.033
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549
2016 2015
Purchases of goods and
Pem belian produk dan jasa (lanjutan) services (continued)
Koperasi Warga Semen Gresik 540.047.253 365.291.098 Koperasi Warga Semen Gresik
PT Pasoka Sumber Karya 273.380.836 189.724.267 PT Pasoka Sumber Karya
PT Sw abina Gatra 270.452.239 215.617.643 PT Sw abina Gatra
PT Pelayaran Tonasa Lines 229.959.382 242.098.209 PT Pelayaran Tonasa Lines
PT Varia Usaha Lintas Segara - PT Varia Usaha Lintas Segara -
sampai 31 Oktober 2016 95.338.938 10.132.401 until October 31, 2016
PT United Tractors Tbk 93.797.061 59.923.913 PT United Tractors Tbk
PT Yasiga Sarana Utama 85.420.122 68.952.761 PT Yasiga Sarana Utama
Koperasi Keluarga Besar Koperasi Keluarga Besar
PT EMKL Topabiring 72.568.812 74.265.542 PT EMKL Topabiring
PT Varia Usaha Bahari - PT Varia Usaha Bahari
Varia Usaha Beton 32.726.870 - Varia Usaha Beton
PT Sumatera Utara PT Sumatera Utara
Perkasa Semen 32.419.257 30.929.444 Perkasa Semen
PT Sw abina Gatra Travel 29.435.393 23.903.999 PT Sw abina Gatra Travel
Yayasan Rumah Sakit Yayasan Rumah Sakit
PT Kanitra Mitra Jayautama 18.652.233 11.086.199 PT Kanitra Mitra Jayautama
PT Konsulta 16.525.517 16.801.404 PT Konsulta
PT Cipta Nirmala 15.752.371 8.589.584 PT Cipta Nirmala
PT Kabau Sirah Semen Padang 14.896.000 15.092.419 PT Kabau Sirah Semen Padang
PT Varia Usaha Dharma Segara - PT Varia Usaha Dharma Segara -
PT Selo Giri Makmur 11.392.655 7.770.094 PT Selo Giri Makmur
Koperasi Karyaw an Usaha Koperasi Karyaw an Usaha
Sejahtera Bersama 6.049.324 - Sejahtera Bersama
Yayasan Kesejahteraan Semen Yayasan Kesejahteraan Semen
Tonasa 5.248.340 14.425.902 Tonasa
Yayasan Igasar 5.141.182 5.604.681 Yayasan Igasar
Koperasi Warga UTSG 4.880.805 5.351.754 Koperasi Warga UTSG
PT Waru Abadi - PT Waru Abadi -
PT Andalan Multi Kencana 1.423.295 1.470.179 PT Andalan Multi Kencana
PT Bima Sepaja Abadi 1.255.368 - PT Bima Sepaja Abadi
PT United Tractors Pandu PT United Tractors Pandu
Engineering 1.019.291 - Engineering
Tonasa Tour & Travel 284.625 12.196.686 Tonasa Tour & Travel
Dana Pensiun Semen Padang - 18.668.882 Dana Pensiun Semen Padang
Dana Pensiun Semen Tonasa - 17.225.813 Dana Pensiun Semen Tonasa
Lain-lain (masing-masing Others
di baw ah Rp1.000.000) 16.481.238 7.285.169 (each below Rp1,000,000)
2.366.705.244 1.870.297.894
Jumlah 6.654.884.612 6.070.242.705 Total
Beban pokok pendapatan 16.278.433.690 16.302.008.098 Cost of revenue
Beban penjualan 2.719.372.979 2.658.736.792 Selling expenses
Beban umum dan administrasi 2.163.084.920 2.087.885.344 General and administration expenses
Total beban 21.160.891.589 21.048.630.234 Total expenses
Sebagai persentase terhadap As a percentage of total
total beban 31,45% 28,84% expenses
Kompensasi manajemen Compensation of key
kunci (Catatan 1) 71.436.355 92.632.377 management (Note 1)
Sebagai persentase terhadap As a percentage of total
total beban penjualan, selling, general and
umum dan administrasi 1,46% 1,95% administration expenses



2016 2015
Pendapatan keuangan Finance incom e
Jumlah 92.872.668 104.564.061 Subtotal
PT Igasar 23.112.641 653.221 PT Igasar
Jumlah 115.985.309 105.217.282 Total
Total pendapatan keuangan 183.772.800 241.075.757 Total finance income
total pendapatan keuangan 63,11% 43,64% total finance income
Beban keuangan Finance costs

PT Pelabuhan Indonesia IV 19.790.411 - PT Pelabuhan Indonesia IV
Sew a pembiayaan Financial lease
PT PBM Biringkasi Raya - 4.022.529 PT PBM Biringkasi Raya
Semen Tonasa - 906.148 Semen Tonasa
Jumlah 22.225.141 7.976.562 Total
Total beban keuangan 363.493.284 370.004.717 Total finance costs
total beban keuangan 6,11% 2,16% total finance costs
Transaksi lainnya dengan pihak berelasi tidak All other transactions with related parties are not
material. material.
Annual Report 2016

551
b. Saldo dengan pihak berelasi b. Balances with related parties
2016 2015
Aset Assets
Kas dan setara kas Cash and cash equivalents
Jumlah 1.879.997.298 1.812.236.888 Total
Sebagai persentase terhadap
jumlah aset 4,26% 4,75% As a percentage of total assets

dibatasi penggunaannya equivalents
Jumlah 9.836.000 25.469.712 Total
Investasi jangka pendek Short-term invesm ents

Entitas sepengendali - BUMN : Under common control - SOE :
Pihak berelasi lainnya Other related party
PT Sw abina Gatra 6.189.831 - PT Sw abina Gatra
PT Eternit Gresik 1.861.173 1.861.173 PT Eternit Gresik
PT Megah Sejahtera Bersama 1.259.620 - PT Megah Sejahtera Bersama
Perkasa Semen 402.000 402.000 Perkasa Semen
Jumlah 11.512.624 2.263.173 Total



2016 2015
Aset (lanjutan) Assets (continued)
Piutang usaha - neto Trade receivables - net
PT Adhi Karya (Persero) Tbk 122.185.514 27.562.971 PT Adhi Karya (Persero) Tbk
PT Semen Baturaja (Persero) Tbk 38.127.057 6.261.283 PT Semen Baturaja (Persero) Tbk
PT Wijaya Karya (Persero) 22.448.822 2.790.617 PT Wijaya Karya (Persero)
Indonesia (Persero) 19.158.214 8.417.990 Indonesia
PT Waskita Karya (Persero) Tbk 12.133.757 10.138.232 PT Waskita Karya (Persero) Tbk
PT Brantas Abipraya (Persero) 4.825.895 562.619 PT Brantas Abipraya (Persero)
PT Petrosida Gresik 195.721 - PT Petrosida Gresik
PT Petrokima Gresik (Persero) 62.824 - PT Petrokima Gresik (Persero)
PT Petrokimia Kayaku 58.829 675.791 PT Petrokimia Kayaku
PT Aneka Jasa Gradika 23.734 - PT Aneka Jasa Gradika
PT Petrokopindo Cipta Selaras 3.008 - PT Petrokopindo Cipta Selaras
PT Perusahaan Pelayaran PT Perusahaan Pelayaran
Indonesia (Persero) - 565.805 Indonesia (Persero)
Jumlah 285.196.642 91.245.099 Subtotal
PT Varia Usaha - PT Varia Usaha -
sampai 31 Oktober 2016 - 283.292.630 until October 31, 2016
Jumlah 60.472.977 342.139.706 Subtotal
Thang Long Pow er Joint Stock Thang Long Pow er Joint Stock
Company 12.454.308 12.933.161 Company
Semen Tonasa 910.559 6.523.306 Semen Tonasa
PT Waru Abadi - PT Waru Abadi -
PT Pamapersada Nusantara - 6.964.456 PT Pamapersada Nusantara
di baw ah Rp1.000.000) 1.361.480 429.514 (each below Rp1,000,000)
Jumlah 292.530.902 394.184.826 Subtotal
Jumlah 638.200.521 827.569.631 Total
total aset 1,44% 2,17% As a percentage of total assets
Annual Report 2016

553
2016 2015
Aset (lanjutan) Assets (continued)
Piutang lain-lain - neto Other receivables - net
PT Waskita Karya (Persero) Tbk 1.000.000 - PT Waskita Karya (Persero) Tbk
Jumlah 4.270.358 1.694.982 Subtotal
PT Igasar 2.290.919 - PT Igasar
Jumlah 7.179.588 11.302.247 Subtotal
Rumah Sakit Semen Padang 12.096.741 - Rumah Sakit Semen Padang
Yayasan Wisma Semen Gresik 1.092.823 - Yayasan Wisma Semen Gresik
PT Cipta Nirmala 293.596 1.270.332 PT Cipta Nirmala
PT Varia Usaha Beton - PT Varia Usaha Beton -
di baw ah Rp1.000.000) 684.746 10.964.652 (each below Rp1,000,000)
Jumlah 14.167.906 14.985.169 Subtotal
Jumlah 25.617.852 27.982.398 Total
total aset 0,06% 0,07% As a percentage of total assets



2016 2015
Liabilitas Liabilities
Utang usaha Trade payables
PT Perusahaan Listrik Negara PT Perusahaan Listrik Negara
(Persero) 195.589.878 235.366.357 (Persero)
PT Wijaya Karya Industri dan PT Wijaya Karya Industri dan
Konstruksi 64.409.414 11.755.439 Konstruksi
PT Petrokimia Gresik (Persero) 28.546.648 30.038.593 PT Petrokimia Gresik (Persero)
PT Waskita Karya (Persero) Tbk 22.594.840 38.456.685 PT Waskita Karya (Persero) Tbk
PT Varuna Tirta Prakasya 21.018.508 35.819.988 PT Varuna Tirta Prakasya
PT Pindad (Persero) 19.874.390 5.408.950 PT Pindad (Persero)
PT Nindya Karya (Persero) 13.273.090 29.001.817 PT Nindya Karya (Persero)
PT Pertamina (Persero) 12.408.263 5.517.124 PT Pertamina (Persero)
PT Bukit Asam Prima 9.788.965 - PT Bukit Asam Prima
PT Dahana (Persero) 6.945.981 26.416.005 PT Dahana (Persero)
PT Pelabuhan Indonesia II PT Pelabuhan Indonesia II
(Persero) 4.807.454 6.347.981 (Persero)
PT Kereta Api Indonesia PT Kereta Api Indonesia
(Persero) 3.045.295 3.308.360 (Persero)
PT Tekomunikasi Indonesia 862.347 1.148.640 PT Tekomunikasi Indonesia
PT Surveyor Indonesia (Persero) 522.139 - PT Surveyor Indonesia (Persero)
PT Adhi Karya (Persero) Tbk 491.118 14.509.081 PT Adhi Karya (Persero) Tbk
PT Krakatau Posco 386.685 3.607.831 PT Krakatau Posco
LKBN Antara 220.992 - LKBN Antara
PT Barata Indonesia (Persero) 22.501 - PT Barata Indonesia (Persero)
PT Pos Indonesia 22.244 - PT Pos Indonesia
PT Aneka Tambang (Persero) Tbk 7.290 - PT Aneka Tambang (Persero) Tbk
Indonesia (Persero) 3.245 3.245 Indonesia (Persero)
PT Pertamina Patraniaga - 1.937.608 PT Pertamina Patraniaga
Jumlah 432.138.103 499.905.938 Subtotal
Jumlah 105.227.697 219.649.539 Subtotal
Annual Report 2016

555
2016 2015
Liabilitas (lanjutan) Liabilities (continued)
Utang usaha (lanjutan) Trade payables (continued)
PT Sw abina Gatra 81.453.078 104.178.922 PT Sw abina Gatra
PT Pelayaran Tonasa Lines 24.907.527 20.545.781 PT Pelayaran Tonasa Lines
PT Pasoka Sumber Karya 21.149.620 25.050.648 PT Pasoka Sumber Karya
PT Yasiga Sarana Utama 13.419.971 15.325.320 PT Yasiga Sarana Utama
PT Konsulta 11.282.620 5.233.811 PT Konsulta
PT United Tractors Tbk 10.601.307 13.457.571 PT United Tractors Tbk
PT EMKL Topabiring 8.370.411 10.962.727 PT EMKL Topabiring
PT Sw abina Gatra Travel 6.377.163 2.236.862 PT Sw abina Gatra Travel
Varia Usaha Beton 6.212.265 - Varia Usaha Beton
PT Prima Karya Manunggal 5.002.490 746.294 PT Prima Karya Manunggal
PT Kanitra Mitra Jayautama 1.890.175 2.865.219 PT Kanitra Mitra Jayautama
PT Cipta Nirmala 1.851.307 773.294 PT Cipta Nirmala
Perkasa Semen 1.274.661 2.330.689 Perkasa Semen
PT Kabau Sirah Semen Padang 1.200.000 - PT Kabau Sirah Semen Padang
PT Bima Sepaja Abadi 1.334.151 9.892.891 PT Bima Sepaja Abadi
PT Selo Giri Makmur 955.435 2.183.655 PT Selo Giri Makmur
PT Varia Usaha Lintas Segara - PT Varia Usaha Lintas Segara -
PT Varia Usaha Dharma Segara PT Varia Usaha Dharma Segara -
Varia Usaha Beton Varia Usaha Beton -
sampai 30 Juni 2016 - 5.810.936 until June 30, 2016
PT Varia Usaha Bahari - PT Varia Usaha Bahari -
Dana Pensiun Semen Padang - 3.456.126 Dana Pensiun Semen Padang
291.320.805 354.055.863
Total utang usaha Total trade payables
dengan pihak berelasi 828.686.605 1.073.611.340 to related parties



2016 2015
Utang lain-lain Other payables
PT Petrokima Gresik (Persero) 13.403.191 16.178.730 PT Petrokima Gresik (Persero)
PT Asuransi Jiw asraya (Persero) 2.853.572 - PT Asuransi Jiw asraya (Persero)
PT Pelabuhan Indonesia IV PT Pelabuhan Indonesia IV
(Persero) 2.281.368 - (Persero)
PT Krakatau Steel (Persero) 1.122.232 1.369.185 PT Krakatau Steel (Persero)
Indonesia (Persero) 712.517 1.244.659 Indonesia (Persero)
PT Pos Indonesia 176.929 - PT Pos Indonesia
Jumlah 22.146.287 20.698.031 Total
PT Sw adaya Graha 522.700 - PT Sw adaya Graha
522.700 -
United Tractor 11.739.779 11.137.201 United Tractor
Semen Tonasa 670.226 - Semen Tonasa
PT Sw abina Gatra 569.904 396.485 PT Sw abina Gatra
PT Cipta Nirmala 523.990 343.158 PT Cipta Nirmala
Koperasi Warga UTSG 510.471 1.050.155 Koperasi Warga UTSG
Dana Pensiun Semen Tonasa 500.000 - Dana Pensiun Semen Tonasa
Koperasi Warga Semen Gresik 381.989 395.239 Koperasi Warga Semen Gresik
di baw ah Rp100.000) 1.302.679 8.989.029 (each below Rp100,000)
16.199.038 22.311.267
Total utang lain-lain Total other payables
dengan pihak berelasi 38.868.025 43.009.298 to related parties
Total utang dengan pihak berelasi 867.554.630 1.116.620.638 Total payables to related parties
total liabilitas 6,35% 10,42% As a percentage of total liabilities
Annual Report 2016

557
2016 2015
Liabilitas jangka pendek Short-term liabilities
Pinjaman Borrow ings
Entitas dengan pengaruh signifikan Entity w ith significant influence
atas entitas anak over subsidiary
Sapa Geleximco 3.754.624 3.898.983 Sapa Geleximco
Jumlah 438.442.422 3.898.983 Total
Liabilitas jangka panjang Long-term liabilities
Pinjaman Bank Bank loans
Sindikasi: Syndicated Bank:
PT Bank Mandiri (Persero) Tbk 1.888.153.687 1.331.491.051 PT Bank Mandiri (Persero) Tbk
Lembaga Pembiayaan Ekspor Lembaga Pembiayaan Ekspor
Indonesia 100.688.296 120.402.789 Indonesia
Jumlah 3.481.662.441 2.068.675.518 Subtotal
Liabilitas sew a pembiayaan Finance lease liabilities

PT Pelayaran Tonasa Lines 352.550.400 - PT Pelayaran Tonasa Lines
PT United Tractors Pandu PT United Tractors Pandu
Engineering 9.491.621 - Engineering
Koperasi Karyaw an Semen Koperasi Karyaw an Semen
Tonasa 2.646.535 4.022.529 Tonasa
Yayasan Kesejahteraan Semen Yayasan Kesejahteraan Semen
Tonasa 1.114.253 906.148 Tonasa
Jumlah 421.632.329 34.670.343
Total liabilitas jangka panjang 3.903.294.770 2.103.345.861 Total long-term liabilities
PT Varia Usaha dan Entitas Anak merupakan pihak PT Varia Usaha and its subsidiaries are considered
berelasi sampai tanggal akuisisi entitas tersebut. as related parties until the acquisition date. The
Akuisisi PT Varia Usaha dan Entitas Anak acquisition of PT Varia Usaha and its subsidiaries is
diungkapkan di Catatan 1 dan 48. disclosed in Notes 1 and 48.



Dalam kegiatan normal usaha, Perseroan melakukan In the normal course of business, the Group enters
transaksi dengan pihak berelasi. Semua transaksi into certain transactions with parties. All transactions
dengan pihak berelasi telah dilakukan dengan with related parties have met the agreed terms and
kebijakan dan syarat yang telah disepakati bersama. conditions.
43. INFORMASI SEGMEN 43. SEGMENT INFORMATION
Segmen Usaha Business Segments
Grup melaporkan segmen-segmen berdasarkan The Group’s reportable segments under PSAK 5
PSAK 5 (revisi 2015) berdasarkan segmen usaha (revised 2015) are based on the following business
sebagai berikut: segments:
1. Manufaktur semen dan pendukungnya (Produksi 1. Cement manufacturing and support (Cement
semen); production);
2. Produksi non semen yang terdiri dari 2. Non-cement productions consist of limestone
penambangan batu kapur dan tanah liat, and clay mining, cement bag manufacturing,
pembuatan kantong kemasan, pengembangan industrial real estate, readymix concrete, IT
kawasan industri, beton siap pakai, jasa sistem services, logistics, and trading.
informasi, logistik, dan perdagangan.
Berikut ini adalah informasi segmen berdasarkan Segment information based on business segments
segmen usaha: is presented below:
2016
Jumlah sebelum
Produksi semen/ Produksi non semen/ eliminasi / Total
Cement Non-Cement before Eliminasi/ Konsolidasian/
production production eliminations Eliminations Consolidated
PENDAPATAN REVENUE
Penjualan pada pihak ketiga Sales to third parties
dan pihak-pihak berelasi 24.127.587.898 2.006.718.240 26.134.306.138 - 26.134.306.138 and related parties
Penjualan antar segmen 602.059.331 1.134.473.162 1.736.532.493 (1.736.532.493) - Inter-segment sales
Jumlah penghasilan 24.729.647.229 3.141.191.402 27.870.838.631 (1.736.532.493) 26.134.306.138 Total revenue
LABA USAHA OPERATING INCOME

Hasil segmen 5.065.367.085 190.418.223 5.255.785.308 (28.672.007) 5.227.113.301 Segment result
Penghasilan keuangan 187.234.566 7.985.324 195.219.890 (11.447.090) 183.772.800 Finance income
Beban keuangan (326.270.543) (48.669.831) (374.940.374) 11.447.090 (363.493.284) Finance cost
Bagian atas laba bersih Equity in net profit of
entitas asosiasi 105.083.885 5.904.348 110.988.233 (73.759.507) 37.228.726 associates
Laba sebelum pajak penghasilan 5.031.414.993 155.638.064 5.187.053.057 (102.431.514) 5.084.621.543 Profit before income tax
Beban pajak penghasilan (508.233.190) (41.351.530) (549.584.720) - (549.584.720) Income tax expense
Laba periode berjalan 4.523.181.803 114.286.534 4.637.468.337 (102.431.514) 4.535.036.823 Profit for the period
Laba yang dapat diatribusikan kepada : Profit attributable to :

Pemilik entitas induk 4.545.982.368 101.479.078 4.647.461.446 (125.865.238) 4.521.596.208 Equity holders of parent entity
Kepentingan nonpengendali (22.800.564) 12.807.456 (9.993.108) 23.433.723 13.440.615 Non-controlling interest
Total laba periode berjalan 4.523.181.804 114.286.534 4.637.468.338 (102.431.515) 4.535.036.823 Total profit for the period
STATEMENTS OF FINANCIAL
LAPORAN POSISI KEUANGAN POSITION

Aset segmen 40.325.890.737 4.503.029.516 44.828.920.253 (696.008.914) 44.132.911.339 Segment assets
Investasi pada entitas asosiasi 1.593.610.533 95.621.032 1.689.231.565 (1.595.246.922) 93.984.643 Investments in associates
Jumlah aset 44.226.895.982 Total assets
Liabilitas segmen 11.920.601.550 2.774.026.891 14.694.628.441 (1.042.123.916) 13.652.504.525 Segment liabilities
INFORMASI LAINNYA OTHER INFORMATION

Pengeluaran modal 7.161.406.745 765.057.054 7.926.463.799 (2.756.546.929) 5.169.916.870 Capital expenditures
Penyusutan, deplesi Depreciation, depletion
dan amortisasi 1.593.016.572 147.536.627 1.740.553.199 (4.732.971) 1.735.820.228 and amortization expense
Annual Report 2016

559
2015
Jumlah sebelum
Produksi semen/ Produksi non semen/ eliminasi/Total
Cement Non-Cement before Eliminasi/ Konsolidasian/
production production eliminations Eliminations Consolidated
PENDAPATAN REVENUE
Penjualan pada pihak ketiga Sales to third parties
dan pihak-pihak berelasi 25.958.049.540 1.051.147.119 27.009.196.659 (61.192.188) 26.948.004.471 and related parties
Penjualan antar segmen - 634.851.545 634.851.545 (634.851.545) - Inter-segment sales
Jumlah penghasilan 25.958.049.540 1.685.998.664 27.644.048.204 (696.043.733) 26.948.004.471 T otal revenue
LABA USAHA OPERATING INCOME

Hasil segmen 5.843.870.015 101.662.280 5.945.532.295 (565) 5.945.531.730 Segment result
Penghasilan keuangan 387.207.236 8.726.680 395.933.916 (154.858.159) 241.075.757 Finance income
Beban keuangan (354.279.733) (29.602.305) (383.882.038) 13.877.321 (370.004.717) Finance cost
Bagian atas laba bersih Equity in net income of
entitas asosiasi 74.831.881 - 74.831.881 (40.511.154) 34.320.727 associates
Laba sebelum pajak penghasilan 5.951.629.399 80.786.655 6.032.416.054 (181.492.557) 5.850.923.497 Profit before income tax
Beban pajak penghasilan (1.310.245.048) (15.237.411) (1.325.482.459) - (1.325.482.459) Income tax expense
Laba tahun berjalan 4.641.384.351 65.549.244 4.706.933.595 (181.492.557) 4.525.441.038 Profit for the year
Laba yang dapat diatribusikan kepada: Profit attributable to:

Pemilik entitas induk 4.661.452.234 65.549.244 4.727.001.478 (205.510.900) 4.521.490.578 Equity holders of parent entity
Kepentingan non pengendali (20.067.883) - (20.067.883) 24.018.343 3.950.460 Non-controlling interest
Jumlah laba tahun berjalan 4.641.384.351 65.549.244 4.706.933.595 (181.492.557) 4.525.441.038 T otal profit for the year
STATEMENTS OF FINANCIAL
LAPORAN POSISI KEUANGAN POSITION

Aset segmen 36.658.407.890 1.589.912.715 38.248.320.605 (319.153.912) 37.929.166.693 Segment assets
Investasi pada entitas asosiasi 802.035.719 55.000.000 857.035.719 (633.083.480) 223.952.239 Investments in associates
Jumlah aset 38.153.118.932 T otal assets
Liabilitas segmen 10.145.501.125 744.992.195 10.890.493.320 (178.172.789) 10.712.320.531 Segment liabilities
INFORMASI LAINNYA OTHER INFORMATION

Pengeluaran modal 5.461.976.859 151.466.060 5.613.442.919 36.577.391 5.650.020.310 Capital expenditures
Penyusutan, deplesi Depreciation, depletion
dan amortisasi 1.437.038.963 91.063.663 1.528.102.626 (92.797) 1.528.009.829 and amortization expense
Segmen Geografis Geographical Segments
Tabel berikut menunjukkan distribusi dari aset The following table shows the distribution of the
konsolidasian, pengeluaran modal dan pendapatan Group’s consolidated assets, capital expenditures
Grup berdasarkan segmen geografis: and revenue by geographical segment:
2016 2015
Aset Assets
Jaw a 22.581.519.649 18.986.096.605 Java
Luar Jaw a 18.599.612.990 15.760.159.979 Outside Java
Luar Negeri 2.951.778.700 3.182.910.109 Foreign
Jumlah 44.132.911.339 37.929.166.693 Subtotal
Investasi pada entitas asosiasi 93.984.643 223.952.239 Investments in associates
Jumlah 44.226.895.982 38.153.118.932 Total



2016 2015
Pengeluaran modal Capital expenditures
Jaw a 2.274.491.346 3.330.024.434 Java
Luar Negeri 20.073.499 21.503.019 Foreign
Jumlah 5.169.916.870 5.650.020.310 Total
Pendapatan Revenue
Dalam Negeri Domestic
Jaw a 12.812.243.667 12.630.246.456 Java
Jumlah 24.578.859.075 25.559.545.249 Subtotal

Luar Negeri International
Asia 1.555.447.063 1.388.459.222 Asia
Jumlah 26.134.306.138 26.948.004.471 Total
Grup berdomisili di Indonesia dan Vietnam. The Group is domiciled in Indonesia and Vietnam.
44. IKATAN DAN PERJANJIAN SIGNIFIKAN 44. COMMITMENTS AND SIGNIFICANT

AGREEMENTS
a. Pada tanggal 2 Agustus 2012, Perseroan bersama a. On August 2, 2012, the Company and certain
beberapa entitas anak menandatangani perjanjian subsidiaries entered into a Notional Pooling
fasilitas Notional Pooling (NP) dengan PT Bank Facility Agreement (NP) with PT Bank Mandiri
Mandiri (Persero) Tbk. Fasilitas ini merupakan (Persero) Tbk. This facility is a cash
layanan Cash Management yang menawarkan management service that offers a pooling
suatu mekanisme saldo konsolidasi pooling untuk consolidated balance mechanism to optimize
optimalisasi pengelolaan dana internal peserta the pooling participants’ internal fund
pooling dengan disertai pemberian bunga oleh management with interest to each pooling
Bank kepada masing-masing peserta pooling. participant. Based on the first addendum signed
Berdasarkan adendum pertama yang on March 27, 2013, term of the agreement is for
ditandatangani tanggal 27 Maret 2013, jangka 1 year after the signing of the agreement by the
waktu perjanjian adalah selama parties and automatically renewed every year
1 tahun terhitung sejak ditandatanganinya with a maximum of 5 years as long as not
Perjanjian oleh para pihak dan otomatis terminated by each parties.
diperpanjang setiap tahun dengan maksimum
selama 5 tahun secara terus menerus sepanjang
tidak dilakukan pengakhiran oleh salah satu pihak.
b. Pada tanggal 28 Agustus 2014, Perseroan dan b. On August 28, 2014, the Company and its
entitas anak melakukan perjanjian Cash Pooling subsidiaries enters Cash Pooling agreement
dengan PT Bank Mandiri (Persero) Tbk, PT Bank with PT Bank Mandiri (Persero) Tbk, PT Bank
Rakyat Indonesia (Persero) Tbk, PT Bank Negara Rakyat Indonesia (Persero) Tbk, PT Bank
Indonesia (Persero) Tbk dan PT Bank CIMB Niaga Negara Indonesia (Persero) Tbk and PT Bank
Tbk. Perjanjian ini mengoptimalkan dan CIMB Niaga Tbk. The agreement optimizes and
mensinergikan dana Grup. Jangka waktu synergizes the Group’s funds. The period of this
perjanjian ini adalah 1 tahun terhitung sejak tanggal agreement is 1 year since the agreement were
ditandatanganinya perjanjian ini dan otomatis signed and it is total maximum extention of 5
diperpanjang setiap tahun secara terus menerus years as long as there are no cancellation from
dengan total maksimum jangka waktu selama 5 last one of the third parties.
tahun sepanjang tidak dilakukan pengakhiran oleh
salah satu pihak.
Annual Report 2016

561
c. Pada tahun 2014, entitas anak, UTSG dan SEP c. In 2014, subsidiaries, UTSG and SEP
(“pemasok”) menandatangani perjanjian (“supplier”) entered into Supplier Financing
pendanaan pemasok (“Supplier Financing Agreement with Deutsche Bank which provides
Agreement”) dengan Deutsche Bank yang them facility to sell their receivables to Deutsche
menyediakan jasa layanan tertentu sehubungan Bank and Deutsche Bank agrees to purchase
dengan pembelian piutang dan mengalihkan such receivables on a non-recourse basis. The
piutang kepada Deutsche Bank berdasarkan non- Supplier or Deutsche Bank, as the case may be,
recourse. Pemasok atau Deutsche Bank, mana may terminate this Agreement in whole by
yang berlaku dapat mengakhiri Perjanjian ini giving not less than thirty (30) days notice in
dengan mengirimkan pemberitahuan tertulis writing to the other party.
kepada pihak lainnya tidak kurang dari tiga puluh
(30) hari dimuka.
d. Pada tahun 2015, SP menandatangani perjanjian d. In 2015, SP entered into an agreement for
berupa fasilitas Mandiri Supplier Financing Mandiri Supplier Financing facility for the
berupa fasilitas pembayaran atas pengadaan procurement of goods and or services
barang dan/atau jasa kebutuhan operasional SP operational requirements to the supplier of SP
kepada supplier dengan PT Bank Mandiri with PT Bank Mandiri (Persero) Tbk with
(Persero) Tbk dengan nilai maksimum fasilitas maximum facility of Rp200,000,000. This facility
sebesar Rp200.000.000. Fasilitas ini berlaku is valid until June 27, 2017. The facility used
sampai dengan 27 Juni 2017. Jumlah fasilitas amounted to Rp58,588,543 as of
yang telah digunakan per 31 Desember 2016 December 31, 2016.
adalah sebesar Rp58.588.543.
e. Pada tanggal 1 Nopember 2016, UTSG e. On November 1, 2016, UTSG entered into
mengadakan perjanjian dengan PT Semen agreements with PT Semen Baturaja (Persero)
Baturaja (Persero) Tbk untuk jasa sewa alat bor Tbk for Drilling Machine Rental Service and
dan tenaga ahli peledakan batu kapur, dimana Service of Experts Limestone blasting at the
UTSG akan membantu aktivitas pengeboran dan factory of PT Semen Baturaja (Persero) Tbk,
peledakan, serta membantu pemenuhan whereas UTSG will assist for drilling and
kebutuhan batu kapur. Perjanjian ini berlaku blasting activities and assist to fulfill the needs
selama 28 bulan. of limestone. This agreement is valid for
28 months.
f. Pada tanggal 1 Nopember 2016, UTSG f. On November 1, 2016, UTSG entered into an
mengadakan perjanjian kerjasama dengan agreement with PT Semen Baturaja (Persero)
PT Semen Baturaja (Persero) Tbk tentang Jasa Tbk for Unloading Equipment Rental Service
Sewa Alat Muat dan Jasa Angkutan Batu Kapur & and Limestones & Clay Transportation Service
Tanah Liat di lokasi tambang milik PT Semen at the mining area of PT Semen Baturaja
Baturaja (Persero) Tbk. Perjanjian ini berlaku (Persero) Tbk. This agreement valid for 36
selama 36 bulan. months.
g. Pada tanggal 15 September 2014, Perseroan dan g. On September 15, 2014, the Company and
Deutsche Bank menandatangi perjanjian Deutsche Bank entered into Payment
Pembayaran (“Payment Processing Agreement”) Processing Agreement in which Deutsche Bank
dimana Deutsche Bank setuju untuk has agreed to provide certain payment services
menyediakan jasa layanan pembayaran dalam in its capacity as the paying agent to the
kapasitasnya sebagai agen pembayar kepada Company. Regarding payment amount by
Perseroan. Sehubungan dengan jumlah yang Deutsche Bank to supplier, the Company has
telah dibayarkan Deutsche Bank kepada an obligation to Deutsche Bank to pay such
pemasok Perseroan, Perseroan mempunyai payment amount at the latest on the transaction
kewajiban kepada Deutsche Bank untuk melunasi payment date. The outstanding amount of
jumlah pembayaran tersebut paling lambat pada claims shall not exceed USD50,000,000. As of
tanggal pembayaran transaksi. Jumlah klaim December 31, 2016, the outstanding claims
yang belum dibayar tidak boleh melebihi amounted to Rp13,193,081 and was presented
USD50.000.000. Pada tanggal 31 Desember as part of trade payables to third party (Note 22).
2016, jumlah pembayaran yang terutang sebesar
Rp13.193.081 disajikan sebagai bagian dari
utang usaha kepada pihak ketiga (Catatan 22).

- 146 -


h. Pada tanggal 28 Agustus 2015, SIB melakukan h. On

d. August 28, 2015, SIB conducted
perjanjian kerjasama operasi dengan cooperative agreement with PT Totalindo Eka
PT Totalindo Eka Persada untuk perjanjian jual Persada for readymix concrete purchase
beli beton readymix sesuai dengan penjanjian No. agreement in accordance with penjanjian No.
032/KK/TEB-MRT/SGG/7/2015 untuk proyek 032/KK/TEB-MRT/SGG/7/2015 for Midtown
Midtown Residence yang berlokasi dijalan project Residence located street Boulevard
Boulevard Raya Gading Serpong blok M 5 No. 3 Raya Gading Serpong block M 5 No. 3 with a
dengan jangka waktu kerjasama dua tahun sejak two-year period of co-operation since August
28 Agustus 2015 sampai dengan 28 Agustus 28, 2015 until August 28, 2017 with a contract
2017 dengan nilai kontrak sebesar Rp54.224.445. value of Rp54,224,445.
i. Pada tanggal 22 Desember 2015, SIB melakukan i. One. December 22, 2015, SIB conducted a
perjanjian kerjasama operasi dengan PT Adhi cooperative agreement with PT Adhi Karya
Karya (Persero) Tbk untuk perjanjian jual beli (Persero) Tbk for the sale and purchase
beton readymix sesuai dengan penjanjian agreement in accordance with the readymix
No. LRTSPPB-CV-PO-002 untuk proyek concrete in line with the agreement No. LRT-
Prasarana Kereta Api Ringan (LRT) terintregasi di SPPB-CV-PO-002 for Railway Infrastructure
wilayah Jakarta, Bogor, Depok dan Bekasi Project Light (LRT) integrated in Jakarta, Bogor,
dengan jangka waktu kerjasama sejak 1 Maret Depok and Bekasi with a period of cooperation
2016 sampai dengan 30 September 2017 dengan since March 1, 2016 until September 30, 2017
nilai kontrak sebesar Rp396.415.385. with a contract value of Rp396,415,385.
f.
j. Pada tanggal 22 Desember 2015, SIB melakukan j. On December 22, 2015, SIB entered an
perjanjian kerjasama operasi dengan PT Adhi operating agreements with PT Adhi Karya
Karya (Persero) Tbk untuk perjanjian jual beli (Persero) Tbk for sales and purchase of
beton readymix sesuai dengan penjanjian No. readymix concrete in accordance with
LRTSPPB- CV-PO-002 untuk Pabrik Precast agreements No. LRT-SPPB-CV-PO-002 for
Concreate Area Sentul (Lintas layanan cawang - Factory Precast concreate Area Sentul (Cross
Cibubur, Cawang- Bekasi Timur, Cawang - Dukuh service cawang - Cibubur, Cawang-East
Atas) pada Proyek Pembangunan Kereta Api Bekasi, Cawang - Dukuh Atas) in Construction
Ringan / LRT Terintegrasi di wilayah Jakarta, Project Railway Light / LRT Integrated in
Bogor, Depok, dan Bekasi dengan jangka waktu Jakarta, Bogor, Depok, and Bekasi with the
kerjasama sejak 1 Maret 2016 sampai dengan 30 period starting from March 1, 2016 until 30
September 2017 dengan nilai kontrak sebesar September 2017 with a contract value of
Rp396,415,385. Pada Akhir kontrak dan volume Rp396,415,385. At the end of the contract when
telah tercapai maka Batching Plant beserta the volume target has been reached, then the
kelengkapannya menjadi milik PT Adhi Karya Batching Plant with its equipments will be
(Persero) Tbk. belong to PT Adhi Karya (Persero) Tbk.
k. Pada tanggal 1 Agustus 2016 SIB melakukan k. On August 1, 2016, SIB made a purchase
perjanjian jual beli dengan PT Multi Artha Pratama agreement with PT Multi Artha Pratama for the
untuk perjanjian jual beli beton readymix sesuai purchase of readymix concrete under the
Perjanjian Nomor: 055/MAP12000/EXT/VIII/2016 Agreement No. 055 / MAP12000 / EXT / VIII /
untuk Proyek Gold Coast Mixed Used 2016 for Project Gold Coast Mixed Used
Development dengan jangka waktu kerjasama Development starting from August 1, 2016 until
sejak 1 Agustus 2016 sampai dengan 1 Agustus August 1, 2017.
2017.
l. Pada tanggal 31 Desember 2016, Perseroan dan l. As of December 31, 2016, the Company and its
entitas anak (SP dan ST) memiliki beberapa ikatan subsidiaries (SP and ST) have various
untuk pembelian persediaan dari beberapa commitments to purchase inventories from
pemasok masing-masing sebesar various suppliers amounting to
Rp2.369.790.936, Rp619.556.173, dan Rp2,369,790,936, Rp619,556,173, and
Rp201.018.513. Komitmen pembelian tersebut Rp201,018,513, respectively. Such
termasuk komitmen pembelian menggunakan commitments include purchase commitments
fasilitas non-cash loan dari PT Bank Mandiri which will involve the use of non-cash loan
(Persero) Tbk dan PT Bank Negara Indonesia facilities from PT Bank Mandiri (Persero) Tbk and
(Persero) Tbk sebesar USD14.290.118, PT Bank Negara Indonesia (Persero) Tbk in the
EUR361.397.294, dan Rp2.814.678.209 amount of USD14,290,118, EUR361,397,294,
sebagaimana dijelaskan dalam Catatan 20. and Rp2,814,678,209 as disclosed in Note 20.
Penyerahan produk akan dilakukan secara berkala The products will be delivered within specified
selama jangka waktu tertentu. periods.
- 147 -
Annual Report 2016
563
m. Pada tanggal 31 Desember 2016, Perseroan dan m. As of December 31, 2016, the Company and its
entitas anak (SP) memiliki beberapa ikatan subsidiary (SP) have several commitments to
pembelian batubara dari beberapa pemasok purchase coal from several suppliers with total
sebanyak 1.300.000 ton per tahun dengan kisaran quantity of 1,300,000 tons per year with price
harga antara Rp550 per ton hingga Rp730 per ton range from Rp550 to Rp730 per ton for year
untuk periode 2013 sampai dengan 2021. Harga 2013 to 2021. This price subject to adjustments
tersebut akan disesuaikan terhadap nilai kalori, against caloritic value, ash content, sulfur and
kadar abu, sulfur dan air. water.
Harga dasar tersebut akan ditinjau secara Such price will be renewed periodically before
periodik sebelum masa berlaku perjanjian the agreement expires and to adjust the price
berakhir dan untuk menyesuaikan harga dengan against the foreign exchange rate from Rupiah
nilai tukar Rupiah terhadap mata uang Dolar to United States Dollar and basic price of High
Amerika Serikat dan harga dasar galian bahan Speed Diesel (HSD) for Industries.
bakar minyak untuk industri.
Sehubungan dengan perjanjian jual beli batubara In relation to such coal sale agreement,
tersebut, pemasok diwajibkan untuk suppliers are obliged to submit their
menyerahkan jaminan pelaksanaan. performance guarantee.
n. Sesuai Akta Perjanjian No. 3 tanggal 5 Agustus n. Based on Deed of Agreement No. 3 dated
2004 yang dibuat antara Nagari Lubuk August 5, 2004 made between the Nagari
Kilangan dengan SP di hadapan Dasrizal, S.H., Lubuk Kilangan community and SP by Dasrizal,
notaris di Padang, SP mengadakan perikatan S.H., notary in Padang, SP entered into an
dengan masyarakat Lubuk Kilangan (Nagari agreement with the Nagari Lubuk Kilangan
Lubuk Kilangan) untuk memperoleh hak community (Nagari Lubuk Kilangan) to obtain
penambangan seluas 412,03 ha di tanah Bukit mining rights covering an area of 412.03 ha in
Karang Putih dengan termin pembayaran 30%, the area of Bukit Karang Putih with terms of
30% dan 40% masing-masing di bulan Juni 2004, payment of 30%, 30% and 40% to be paid in
2005 dan 2006. June 2004, 2005 and 2006, respectively.
Perolehan hak tersebut sesuai dengan The acquisition of the rights was in accordance
Surat Keputusan Gubernur Sumatera with the Decision Letter of Governor of
Barat No. 503.545/9/EXPL/DTB-1997 tanggal 6 West Sumatera No. 503.545/9/EXPL/DTB-
Juni 1997 dan hasil Peta Bidang dari BPN. Setelah 1997 dated June 6, 1997 and results of
dilakukan pengukuran ulang oleh Badan mapping the area by the National Land Board.
Pertanahan Nasional (BPN) sesuai Peta Bidang Remeasurement of the area by the National
No. 183/2005 tanggal 12 Mei 2005 didapatkan luas Land Board based on the area mapping
sebenarnya 429 ha sehingga jumlah kompensasi No. 183/2005 on May 12, 2005 resulted in
diperkirakan Rp12.879.459, diluar kompensasi the actual area involved being 429 ha. As a
bentuk lain sebesar Rp2.100.000. result compensation is estimated to be
Rp12,879,459 excluding other compensation of
Rp2,100,000.
Pada tanggal 7 Juni 2006, Badan Pertanahan On June 7, 2006, the National Land Board of
Nasional Kota Padang mengirim surat kepada SP Padang sent a letter to SP stating that out of 429
yang menyatakan bahwa dari 429 ha di tanah ha in the Bukit Karang Putih area, 256 ha were
Bukit Karang Putih, 256 ha termasuk dalam included in a forest conservation area. This
kawasan hutan lindung. Dan hal ini sejalan position was supported by a Decision Letter
dengan Surat Keputusan Menteri Kehutanan from the Minister of Forestry
No. 422/KPTS-II/1999 tentang Penunjukan No. 422/KPTS-II/1999 on determining of
Kawasan Hutan diwilayah Propinsi Daerah forestry area in Province of West Sumatera
Tingkat I Sumatera Barat seluas ± 2.600.268 ha. about ± 2,600,268 ha.
Pada tanggal 16 Juni 2006, SP mengirim surat On June 16, 2006, SP sent a letter to the Nagari
kepada Ketua Nagari Lubuk Kilangan yang Lubuk Kilangan Leader stating that SP would
menyatakan bahwa SP akan menunda delay the 40% payment which should have
pembayaran sebesar 40% yang seharusnya been paid in June 2006 until the forest
dibayar pada bulan Juni 2006 sampai masalah ini conservation issue is resolved by Nagari Lubuk
diselesaikan oleh masyarakat Nagari Lubuk Kilangan.
Kilangan.
- 148 -


Dalam usulan Rencana Tata Ruang Wilayah In the proposed Plan for Provincial Area
(RTRW) Propinsi Sumatera Barat tahun 2009 Management of the West Sumatera province
yang dibuat oleh Pemerintah Daerah, lahan for 2009 which was prepared by the Local
seluas 429 ha tersebut diusulkan untuk diubah Government, the status of the 429 ha of land is
statusnya dari hutan lindung menjadi Areal proposed to be changed from a forest
Penggunaan Lain (APL). conservation area to a forest concession right.
Berdasarkan hasil pengukuran terakhir yang Based on the recent measurement taken by
dilakukan oleh Dinas Kehutanan provinsi Forestry Section of West Sumatera province,
Sumatera Barat, lahan 429 ha tersebut menjadi the land of 429 ha became approximately 517
lebih kurang 517 ha yang terdiri dari Areal hectares, which consist of Area for other
Penggunaan Lain seluas lebih kurang 114 ha, purposes of approximately 114 ha, Forest
Hutan Lindung seluas lebih kurang 54 ha, Hutan Conservation of approximately 54 ha, Natural
Suaka Alam seluas lebih kurang 107 ha dan Forest Conservation of approximately 107
Hutan Produksi Terbatas seluas lebih kurang 242 hectares and Limited Production Forest of
ha. approximately 242 ha.
Perda Tata Ruang Kota Padang telah disahkan The Regulation on the city layout has been
oleh walikota Padang melalui Peraturan Daerah approved by the Padang City Mayor through the
Kota Padang No. 4 tahun 2012 tanggal 5 Juni Mayoral Regulation of Padang City No. 4 year
2012 dengan menetapkan di area 429 ha terdapat 2012 dated June 5, 2012, stipulating that the
area hutan suaka alam wisata kurang lebih 69 ha, area of 429 ha are forest preserves tourist area
hutan produksi terbatas kurang lebih 242 ha dan of approximately 69 ha, approximately of limited
area penggunaan lain kurang lebih 114 ha. production forest area of 242 ha and the other
uses approximately 114 hectares.
Dikarenakan adanya perubahan pada tata ruang Due to changes in the spatial Padang, the forest
Kota Padang, mengenai peruntukan kawasan areas in the area of 412 ha, an addendum has
hutan pada area 412 ha, maka pada tanggal been made October 31, 2012 to the agreement
31 Oktober 2012 telah dilakukan addendum No. 03, dated August 5, 2004 between SP with
terhadap perjanjian No. 03 tanggal 5 Agustus Nagari Kilangan Lubuk, which include changes
2004 antara Nagari Lubuk Kilangan dengan SP, in:
yang meliputi perubahan:
 Luas lahan yang semula 412 ha menjadi 356  The area of land which was originally 412
ha. ha to 356 ha.
 Nilai kompensasi lahan tahap III dari semula  Phase III land compensation value from
Rp3.000 per m2 menjadi Rp3.990 per m2 Rp3,000 per m2 to Rp3,990 per m2 with the
sehingga total nilai kompensasi menjadi total value of compensation approximately
kurang lebih Rp13.331.760. Rp13,331,760.
Izin Pinjam Pakai atas areal hutan produksi Usage permissions over a limited production
terbatas seluas kurang lebih 242 ha telah forest area of approximately 242 ha have been
diperoleh oleh SP berdasarkan Keputusan acquired by SP based on the Ministry of
Menteri Kehutanan No.SK.467/Menhut-II/2013 Forestry No.SK.467/Menhut-II/2013 dated
tertangal 28 Juni 2013. Atas dasar telah June 28, 2013. On the basis of the presentation
diperolehnya izin pinjam pakai dari Menteri of the use permit from the Minister of Forestry,
Kehutanan maka SP telah melakukan hence SP has made phase III payments to the
pembayaran tahap III kepada KAN Lubuk KAN Lubuk Kilangan in accordance with the
Kilangan sesuai dengan Perjanjian antara KAN Agreement between KAN and SP, following the
dan SP berikut perubahan-perubahannya. amendments.
Annual Report 2016

565
- 149 -
Sampai dengan tanggal 31 Desember 2016, SP As of December 31, 2016, SP has spent
telah mengeluarkan dana sebesar Rp23.230.005 amounting to Rp23,230,005 to obtain mining
untuk memperoleh hak penambangan dan rights and Rp54,356,914 for preparation of
Rp54.356.914 untuk penyiapan fasilitas lahan mining area facilities which was recorded as
penambangan yang dicatat sebagai aset dalam construction in progress - land (Note 15).
penyelesaian tanah (Catatan 15).
o. Selama tahun 2016 SP melakukan transaksi o. In 2016, the Company use hedging either with
lindung nilai baik dengan instrumen forward forward contract instrument or non derivative.
maupun dengan non-derivatif. Penggunaan The implementation of the forward instrument is
instrumen forward dilakukan dengan using facilities such as :
menggunakan fasilitas berikut:
- Fasilitas Forex Line BNI - Forex Line Facility BNI
No.944/PJJ/DEPAK/09.14 dengan jangka No.944/PJJ/DEPAK/09.14 with a period of
waktu fasilitas sampai dengan 14 Juni 2017. facility until June 14, 2017.
- Fasilitas Treasury Line Bank Mandiri - Treasury Line facility in Bank Mandiri
No.TOP/CRO/CCL.298/ADD/2015 dengan No.TOP/CRO/CCL.298/ADD/2015 with a
jangka waktu fasilitas sampai dengan 27 Juni period of facility until June 27, 2017.
2017.
SP juga melakukan lindung nilai dengan SP use hedging with non-derivative instrument
menggunakan instrumen non derivatif yaitu as well such as USD time deposit. This hedging
deposito dalam USD. Lindung nilai ini digunakan is implemented for material/services payment in
untuk pembayaran barang/jasa Proyek Indarung Indarung VI Project.
VI.
Keuntungan atau kerugian atas fluktuasi non Gain or loss on non derivative fluctuation (USD
derivatif (Deposito dalam USD) akan diakui time deposit) will be recognized in other
di dalam pendapatan komprehensif lain pada comprehensive income when the hedging is
periode ketika lindung nilai efektif dan akan tetap effectively implemented and fixed recognized in
di dalam ekuitas sampai kedatangan dan equity until the arrival of materials or materials
pembayaran peralatan. payment.
p. Entitas anak (TLCC) memiliki ikatan untuk p. A Subsidiary (TLCC) has an operating lease
sewa operasi berdasarkan kontrak. Jumlah commitment under the contractual arrangements.
minimum pembayaran sewa dimasa mendatang The future aggregate minimum lease payments
berdasarkan sewa operasi yang tidak dapat under non-cancellable operating leases are as
dibatalkan adalah sebagai berikut: follows:
31 Desem ber 2016/

December 31, 2016
VND' 000 Rp 000
Dalam 1 tahun/Within 1 year 6.728.053 1.547.469
Antara 1 dan 5 tahun/Betw een 1 year and 5 years 28.552.453 3.448.841
Lebih dari 5 tahun/Over 5 years 198.299.429 23.052.105
Jumlah minimum pembayaran/Total minimum payments 233.579.935 28.048.415
Berikut ini adalah beberapa perjanjian signifikan The following are the significant agreements for
atas sewa operasi TLCC: operating lease TLCC:
 Pada tanggal 27 Pebruari 2002, TLCC  On February 27, 2002, TLCC enters
memiliki ikatan dengan Hiep Phuoc Joint commitment with Hiep Phuoc Joint Venture
Venture Company untuk menyewa tanah Company to rent land of 100,000 m2 for the
seluas 100.000 m2 untuk Grinding Plant Grinding Plant for 50 years at Hiep Phuoc
selama 50 tahun di Area Industrial Hiep Industrial Zone from September 18, 2002 to
Phuoc sejak tanggal 18 September 2002 September 16, 2052.
hingga 16 September 2052.



Porsi belum dibayar termasuk di dalam table A portion of unpaid rental fee is included in
di atas dari total sebesar USD20/m2 yang above table amounting to USD20/m2 which
dipecah dalam 15 kali cicilan tahunan, setiap is payable in 15 annual installments, each
cicilan ekuivalen dengan USD1,74/m2 yang equivalent to USD1.74/m2 representing the
terdiri atas biaya sewa dan bunga. Cicilan rental fee and interest. The first installment
pertama jatuh tempo pada tahun ketiga sejak was due on 3rd year from the rental contract
tanggal kontrak. date.
 Pada tanggal 30 September 2006, TLCC   On September 30, 2006, TLCC enters
memiliki ikatan dengan Quang Ninh’s People commitment with Quang Ninh’s People
Committee untuk menyewa tanah seluas Committee to rent land with area of
1.680.239 m2 di Le Loi Commune, Distrik 1,680,239 m2 at Le Loi Commune, Hoanh
Hoanh Bo, Propinsi Quang Ninh untuk pabrik Bo District, Quang Ninh province for main
utama, jalan dan stasiun. Sewa selama 50 plant, road and stations. The rent is for 50
tahun dari 18 September 2002 sampai years from September 18, 2002 to
dengan 18 September 2052. September 18, 2052.
Biaya Sewa dibayarkan tahunan dan dihitung Rental fee is payable annually and is
mulai dari 1 Januari 2011 sampai dengan 31 calculated for the period from 1 January
Desember 2015. Tarif biaya sewa 5 tahun 2011 to 31 December 2015. The rental fee
pertama adalah sebesar VND780/m2/tahun rates for the first 5 years are
untuk pabrik utama dan VND 780/m2/year for the main factory and
VND101,25/m2/tahun untuk jalan dan of VND 101.25/m2/year for road and
stasiun. stations.
 Pada tanggal 14 Mei 2010, TLCC memiliki   On May 14, 2010, TLCC enters commitment
ikatan dengan Quang Ninh’s People with Quang Ninh’s People Committee to rent
Committee untuk menyewa tanah seluas land with area of 172,289.4 m2 at Le Loi and
172.289,4 m2 di Le Loi dan Son Duong Son Duong Communes, Hoanh Bo District,
Communes, Distrik Hoanh Bo, Propinsi Quang Ninh province for road, lime
Quang Ninh untuk jalan, pengolahan kapur, processing and clay transportation. The rent
dan transportasi untuk tanah liat. Sewa is for 50 years from September 18, 2002 to
selama 50 tahun dari 18 September 2002 September 18, 2052.
sampai dengan 18 September 2052.
Menurut Keputusan No.1958/QD-UB tentang According to Decision No.1958/QD-UB

insentif investasi untuk TLCC, biaya sewa about investment incentives to TLCC, rental
lahan ini dikecualikan untuk TLCC selama 7 fee of this land is exempted to TLCC for 7
tahun sampai Desember 2017. Tanah ini years until December 2017. This land has
telah dibagi menjadi 3 bagian dengan tingkat been divided into 3 parts with different rates
yang berbeda dan tingkat rata-rata adalah and the average rate is about
sekitar VND1.117,5/m2/tahun. VND1,117.5/m2/year.
ikatan dengan Quang Ninh’s People with Quang Ninh’s People Committee to rent
Committee untuk menyewa tanah seluas land of 819,846.8 m2 of land at Thong Nhat
819.846,8 m2 di Thong Nhat dan Son Duong and Son Duong Communes, Hoanh Bo
Communes, Distrik Quang Ninh untuk jalan, District, Quang Ninh province for road, lime
pengolahan kapur, dan transportasi untuk processing and clay transportation. The rent
tanah liat. Sewa selama 30 tahun dari 18 is for 30 years from December 18, 2009 to
Desember 2009 sampai dengan 18 December 18, 2039.
Desember 2039.
Menurut Keputusan No.1958/QD-UB tentang According to Decision No.1958/QD-UB

insentif investasi untuk TLCC, biaya sewa about investment incentives to TLCC, rental
lahan ini dikecualikan untuk TLCC selama fee of this land is exempted to TLCC for
7 tahun sampai dengan May 2017. Tarif 7 years until May 2017. The fixed rental rate
tetap sewa adalah sekitar VND160/m2/tahun. for the land is VND160/m2/year.
Annual Report 2016

567
ikatan dengan Galeximco Hanoi untuk with Galeximco Hanoi to rent 335 m2 of
menyewa kantor seluas 335 m2 di lantai 7 office on the 7th floor of Geleximco building
gedung Geleximco di Jl. 36 Hoang Cau, at 36 Hoang Cau Street, Hanoi. The rent is
Hanoi. Jangka waktu sewa adalah 4 tahun for 4 years from February 15, 2011 to
dari 15 Pebruari 2011 sampai dengan February 15, 2015. On February 2015, the
15 Pebruari 2015. Pada tanggal 16 Pebruari rent period was extended until February 15,
2015 sewa tersebut telah diperpanjang 2017.
sampai dengan 15 Pebruari 2017.
Biaya sewa adalah VND405.000/m2/bulan Rental fee is VND405,000/m2/month and

dan akan dibayarkan setiap bulan. will be paid monthly.
q. SG mengadakan ikatan untuk membangun pabrik q. SG entered into agreements to build cement
semen dan membeli mesin serta perlengkapannya plant and purchase machinery and equipment
dengan beberapa pemasok luar negeri dan dalam from several foreign and local suppliers with total
negeri dengan nilai kontrak sampai dengan contract value and outstanding unrealized
31 Desember 2016 dan jumlah ikatan yang commitments as of December 31, 2016
belum direalisasi adalah masing-masing amounted to Rp2,913,010,896, EUR92,074,144,
sebesar Rp2.913.010.896, EUR92.074.144, USD7,760,719; and, Rp307,843,201,
USD7.760.719, dan Rp307.843.201, EUR6,688,336, USD186,372, respectively.
EUR6.688.336, USD186.372.
Nilai kontrak sampai dengan 31 Desember 2015 dan Total contract value and outstanding
jumlah ikatan yang belum direalisasi adalah masing- unrealized commitments as of December 31,
masing sebesar Rp2.160.321.527, 2015 of Rp2,160,321,527, EUR91,774,080,
EUR91.774.080, USD8.428.394, dan USD8,428,394; and, Rp1,072,287,820,
Rp1.072.287.82, EUR 17.538.934, USD3.219.091. EUR17,538,934, USD3,219,091, respectively.
r. Berdasarkan Perjanjiian No 40 tanggal 14 Maret r. Agreement No. 40 dated March 14, 2013
2013 dihadapan Evva Yerry Mahmudah, S.H., before Evva Yerry Mahmudah, S.H., Notary
Notaris dan Pejabat Pembuat Akta Tanah di and Land Deed Officer in Gresik, KIG has
Gresik, KIG telah melakukan perjanjian dengan Ir. entered into an agreement with Ir. Bagus
Bagus Narjatmo dan Moh. Khozin (selaku kuasa Narjatmo and Moh. Khozin (as selling power) in
jual) sehubungan dengan rencana pembelian connection with the plan to purchase 200
lahan kurang lebih 200 hektar yang berlokasi di hectares of land located in the village Golokan,
desa Golokan, Desa Purwodadi, Desa Srowo, Purwodadi, Village Srowo, Tanjungawan
Desa Tanjungawan, di Kecamatan Sidayu dan village, in the district and sub-district Sidayu
Kecamatan Ujung Pangkah dengan harga dan Edge Pangkah with price and conditions as
syarat seperti yang tertera dalam perjanjian. stipulated in the agreement.
Pada tanggal 31 Desember 2016, jumlah As of December 31, 2016, total purchases paid
pembelian yang telah dibayarkan adalah sebesar amounted to Rp125,431,273. Management
Rp125.431.273. Manajemen berpendapat bahwa believes that there will be no difficulties in
tidak terdapat kesulitan dalam pengurusan hak obtaining the landright certificate.
atas tanah tersebut.
s. Pada tanggal 16 September 2015, IKSG s. On September 16, 2015, IKSG entered into an
menandatangani perjanjian dengan Newlong agreement with Newlong Industrial Co. Ltd., to
Industrial Co. Ltd., untuk membeli mesin dan acquire machinery and equipment of Cement
peralatan pembuatan kantong semen seharga Bag Making Line for amount of USD2,250,000.
USD2.250.000.
t. Pada tanggal 30 Oktober, 2015, KSI t. On October 30, 2015, KSI entered into
menandatangani perjanjian untuk membeli Slag agreement to purchase Slag Grinding Machine
Grinding Machine dengan Losche GmbH dengan with Losche GmbH with total value of
nilai total EUR7.582.000. Sebagai bagian dari EUR7,582,000. As part of the agreement, KSI
perjanjian, KSI telah membayar uang muka has paid the advance payment amounting
sebesar EUR1.137.000 atau setara dengan EUR1,137,000 or equivalent to Rp17,093,619.
Rp17.093.619.

- 152 -


u. WA mengadakan perjanjian kerja dengan u. On February 15, 2016 WA has made an

PT Media Nusa Mandiri pada tanggal 15 Pebruari agreement with PT Media Nusa Mandiri abaout
2016 tentang pekerjaan pembuatan sistem the work of making enterprise information
informasi Perusahaan berbasis Enterprise system based on Enterprose Resouce
Resource Planning (ERP). Sistem informasi Planning (EPR). The information system
tersebut antara lain meliputi modul sales, include module sales, purchase, item and
purchase, item and inventory, asset management, inventory, assets management, accounting
accounting and finance, transportation and and finance, transportation and expenditure,
expenditure, HRM, budget entry, sales tracking HRM, budget entry, sales trancking (mobile
(mobile application), dan dashboard mobile. aplication) and dashboard mobile. Time of the
Jangka waktu atas pelaksanaan pekerjaan agreement is 18 months after the agreement
selambat-lambatnya dalam waktu 18 bulan has been signed, ended on August 15, 2017.
terhitung sejak perjanjian ditandatangani kedua
belah pihak dan berakhir pada tanggal 15 Agustus
2017.
v. WA mengadakan perjanjian kerjasama distributor v. WA has an cooperation agreement with PT
dengan PT Triarta Aditama pada tanggal 14 Triarta Aditama on January 14, 2016 on
Januari 2016 dengan nomor perjanjian No. agreement No. 001/Perj.Dist-TAA/I/2016. The
001/Perj.Dist-TAA/I/2016. Perjanjian tersebut agreement is to appoint WA for becoming a
diadakan sebagai dasar penunjukan WA menjadi distributor for Silica Board under the brand
distributor Silica Board dengan merk "Tripleboard". The duration of the agreement
“Tripleboard”. Jangka waktu perjanjian 24 (dua 24 (twenty-four) months started on January 4,
puluh empat) bulan terhitung 4 Januari 2016 2016 until December 31, 2017.
sampai dengan 31 Desember 2017.
w. WA mengadakan perjanjian perjanjian distributor w. WA has an distributor agreements with PT

dengan PT Tripilar Beton Mas pada tanggal 31 Tripilar Beton Mas dated on December 31,
Desember 2015 nomor perjanjian No: 2015 on agreements No: 018/Perj.Dist-
018/Perj.Dist-TBM/XII/2015. Perjanjian tersebut TBM/XII/2015. The agreement was made to
dibuat untuk menunjuk PT WA sebagai distributor appoint WA as a distributor of Fiber Cement
Fiber Cement Gelombang dan Plat dengan merk Wave and Plate under the brand "Pilarmas"
”Pilarmas” dan Silica Board dengan merk and Silica Board under the brand "Starboard".
”Starboard”. Jangka waktu perjanjian 24 (dua The duration of the agreement 24 (twenty four)
Puluh empat) bulan terhitung 31 Desember 2015 months started on December 31, 2015 until
sampai dengan 31 Desember 2017. December 31, 2017.
x. Pada tanggal 18 Desember 2015, VUBA telah x. On December 18, 2015 VUB has signed an
menandatangani perjanjian dengan Deustche agreement with Deutsche Bank AG in which
Bank AG dimana VUBA menjual dan VUBA sold and transferred receivables as
mengalihkan piutang sebagaimana tertuang stated in the Supplier Financing Agreement
dalam Perjanjian Pendanaan Pemasok (Supplier between VUBA and Deutsche Bank AG. As of
Financing Agreement) antara VUBA dengan December 31, 2016 has utilized the facility
Deutsche Bank AG. Sampai dengan posisi amounted to Rp7,849,115.
31 Desember 2016 VUBA telah memakai fasilitas
tersebut sebesar Rp7.849.115.
Transaksi penjualan/pengalihan piutang tersebut Transaction sale/ transfer of these receivables

merupakan transaksi non-recourse. Semua hak, are non-recourse transactions. All right,
kepemilikan, dan kepentingan atas piutang telah ownership and interest on receivables have
dialihkan kepada Deutsche Bank AG, dan Bank been transferred to Deutsche Bank AG, and
memperoleh keuntungan dan kerugian yang Bank received gain or loss arising from the
timbul dari piutang tersebut. receivables.
y. VUDS telah menandatangani perjanjian dengan y. VUDS has signed an agreement with Deustche
Deustche Bank AG dimana VUDS menjual dan Bank AG where VUDS sell and transfer the
mengalihkan piutang sebagaimana tertuang receivables as stated in the Funding
dalam Perjanjian Pendanaan Pemasok (Supplier Agreement Supplier (Supplier Financing
Financing Agreement) antara VUDS dengan Agreement) between VUDS with Deutsche
Deutsche Bank AG. Sampai dengan posisi Bank AG. On December 31, 2016 realization of
31 Desember 2016, jumlah realisasi pengalihan account receivable amoounting to
piutang adalah sebesar Rp27.038.686. Rp27,038,686.
- 153 -
Annual Report 2016
569
Transaksi penjualan/pengalihan piutang tersebut The sales/ receivable swap is non resource
merupakan transaksi non recourse. Semua hak, transaction. All rights, ownership and interest
kepemilikan, dan kepentingan atas piutang telah on the receivable has been transferred to
dialihkan kepada Deutsche Bank AG. Deutche Bank AG.
45. ASET DAN LIABILITAS MONETER DALAM MATA 45. MONETARY ASSETS AND LIABILITIES
UANG ASING DENOMINATED IN FOREIGN CURRENCIES
Pada tanggal 31 Desember 2016 dan 2015, Grup As at December 31, 2016 and 2015, the Group had
mempunyai aset dan liabilitas moneter dalam mata monetary assets and liabilities denominated in
uang asing sebagai berikut: foreign currencies as follows:
2016 2015
Mata uang Mata uang
Asing Asing
(jumlah penuh)/ Ekuivalen (jumlah penuh)/ Ekuivalen
Foreign Rupiah/ Foreign Rupiah/
currencies Equivalent in currencies Equivalent in
(full amounts) Rupiah (full amounts) Rupiah
Aset: Assets:
Kas dan setara kas USD 16.899.242 227.058.219 12.544.290 173.048.484 Cash and cash equiv alents
EUR 3.569.402 50.549.873 3.012.931 45.404.871
SGD 14.427 134.154 13.471 131.357
Kas dan setara kas y ang Restricted cash and cash

dibatasi penggunaanny a USD - - 215.000 2.965.925 equiv alents
Piutang usaha USD 1.646.577 22.123.403 2.505.428 34.562.386 Trade receiv ables
Piutang lain-lain EUR 22.376 316.874 - - Other receiv ables - third party
USD 7.028 94.435 - -
Jumlah aset 300.276.958 256.113.023 Total assets
Liabilitas: Liabilities:
Utang usaha EUR 9.447.403 133.789.874 4.769.598 71.877.846 Trade pay ables
USD 2.374.933 31.909.598 6.489.816 89.527.006
JPY 50.233.217 5.797.157 46.839 5.364
GBP 22.772 375.909 593 12.122
CHF 11.041 145.500 - -
SGD 7.447 69.249 7.853 76.571
AUD 4.870 47.357 - -
Utang lain-lain EUR 6.315.291 89.437.151 406.805 6.130.548 Others liabilities

USD 204.080 2.742.018 82.041 1.131.749
Jumlah liabilitas 264.313.813 168.761.206 Total liabilities

Aset neto 35.963.145 87.351.817 Net Assets

- 154 -


Pada tanggal 31 Desember 2016 dan 2015, kurs The conversion rates used by the Group on
konversi yang digunakan Grup serta kurs yang December 31, 2016 and 2015 the prevailing rates on
berlaku pada tanggal 17 Pebruari 2017 sebagai February 17, 2017 are as follows:
berikut:
17 Pebruari/ 31 Desem ber / 31 Desem ber /

February 17, December 31, December 31,
2017 2016 2015
Mata Uang Foreign currency

1 USD 13.328 13.436 13.795 1 USD
1 SGD 9.403 9.299 9.751 1 SGD
100 JPY 11.749 11.540 11.452 100 JPY
1 EUR 14.224 14.162 15.070 1 EUR
1 GBP 16.663 16.508 20.451 1 GBP
1 AUD 10.261 9.724 10.064 1 AUD
1 CHF 13.364 13.178 13.951 1 CHF
46. KATEGORI DAN KELAS INSTRUMEN 46. CATEGORIES AND CLASSES OF FINANCIAL
KEUANGAN INSTRUMENTS
Liabilitas pada
Pinjaman yang biaya perolehan
diberikan dan Tersedia diamortisasi/
piutang/ untuk dijual/ Liabilities at
Loans and Available-for- amortized
receivables sale cost
31 Desember 2016 December 31, 2016
Aset Keuangan Lancar Current Financial Assets

Kas dan setara kas 2.824.689.790 - - Cash and cash equiv alents
Kas dan setara kas y ang Restricted cash and
dibatasi penggunaanny a 13.984.560 - - cash equiv alents
Inv estasi jangka pendek 3.550.000 9.712.624 - Short-term inv estments
Piutang usaha Trade receiv ables
Pihak ketiga 3.199.717.689 - - Third parties
Pihak berelasi 638.200.521 - - Related parties
Piutang lain-lain Other receiv ables
Pihak ketiga 154.747.650 - - Third parties
Liabilitas Keuangan Jangka Pendek Current Financial Liabilities

Pinjaman jangka pendek - - 819.024.714 Short-term borrowings
Utang usaha Trade pay ables
Pihak ketiga - - 3.249.070.457 Third parties
Pihak berelasi - - 828.686.605 Related parties
Utang lain-lain Other pay ables
Pihak ketiga - - 266.382.815 Third parties
Beban y ang masih harus dibay ar - - 677.378.424 Accrued expenses
Liabilitas jangka panjang y ang jatuh Current maturities of
tempo dalam satu tahun long-term liabilities
Pinjaman bank - - 866.543.711 Bank loans
Liabilitas sewa pembiay aan - - 124.958.736 Finance lease liabilities
Liabilitas Keuangan Jangka Panjang Non-current Financial Liabilities

Liabilitas jangka panjang Long-term liabilities
Pinjaman bank - - 3.988.450.846 Bank loans
Jumlah 6.860.508.062 9.712.624 11.320.761.516 Total
- 155 -
Annual Report 2016
571
Liabilitas pada
Pinjaman yang biaya perolehan
diberikan dan Tersedia diamortisasi/
piutang/ untuk dijual/ Liabilities at
Loans and Available-for- amortized
receivables sale cost
31 Desember 2015 December 31, 2015
Aset Keuangan Lancar Current Financial Assets

Kas dan setara kas 3.961.235.502 - - Cash and cash equiv alents
Kas dan setara kas y ang Restricted cash and
dibatasi penggunaanny a 25.469.712 - - cash equiv alents
Inv estasi jangka pendek - 2.263.173 - Short-term inv estment
Piutang usaha Trade receiv ables
Pihak ketiga 2.716.270.338 - - Third parties
Piutang lain-lain Other receiv ables
Pihak ketiga 56.818.134 - - Third parties
Liabilitas Keuangan Jangka Pendek Current Financial Liabilities

Pinjaman jangka pendek - - 138.603.568 Short term borrowing
Utang usaha Trade pay able
Pihak ketiga - - 2.709.634.659 Third parties
Pihak berelasi - - 1.073.611.340 Related parties
Utang lain-lain Other pay able
Pihak ketiga - - 151.290.680 Third parties
Beban y ang masih harus dibay ar - - 633.616.432 Accrued expenses
Liabilitas jangka panjang y ang jatuh Current maturities of
tempo dalam satu tahun long term liabilities
Pinjaman bank - - 630.043.935 Bank loans
Liabilitas Keuangan Jangka Panjang Non-current Financial Liabilities

Liabilitas jangka panjang Long term liabilities
Pinjaman bank - - 2.996.680.899 Bank loans
Jumlah 7.615.345.715 2.263.173 8.612.463.054 Total
47. TUJUAN DAN KEBIJAKAN MANAJEMEN MODAL 47. FINANCIAL RISK AND CAPITAL MANAGEMENT
DAN RISIKO KEUANGAN OBJECTIVES AND POLICIES
Grup terpengaruh terhadap risiko pasar, risiko kredit, The Group is exposed to market risk, credit risk and
dan risiko likuiditas. Manajemen menerapkan liquidity risk. Management applies risk management
manajemen risiko atas risiko-risiko tersebut dengan for such risks by evaluating the financial risks and
melakukan evaluasi atas risiko keuangan dan the appropriate financial risk governance framework
kerangka pengelolaan risiko keuangan yang tepat for the Group. Such risk management provides
untuk Grup. Pengelolaan resiko tersebut memberikan assurance to management that prudent financial
keyakinan kepada manajemen bahwa aktivitas activities are managed according to appropriate
keuangan dikelola secara pruden sesuai kebijakan policies and procedures and financial risks are
dan prosedur yang tepat dan risiko keuangan identified, measured and managed in accordance
diidentifikasi, diukur dan dikelola sesuai dengan with policies and risk appetite.
kebijakan dan risk appetite.
Manajemen menerapkan kebijakan pengelolaan The management applies policies for managing
risiko-risiko sebagaimana dirangkum di bawah ini. each of these risks which is summarized below.



Risiko pasar Market risk
Risiko pasar adalah risiko nilai wajar arus kas masa Market risk is the risk that the fair value of future
depan suatu instrumen keuangan akan berfluktuasi cash flows of a financial instrument will fluctuate
karena perubahan harga pasar. Harga pasar because of changes in market prices. Market risk
mengandung tiga tipe risiko: risiko tingkat suku comprises three type of risk: interest rate risk,
bunga, risiko nilai tukar mata uang asing dan risiko foreign currency risk, and price risk. Financial
harga. Instrumen keuangan yang terpengaruh oleh instruments affected by market risk included cash
risiko pasar termasuk kas dan setara kas, piutang and cash equivalent, trade receivables, other
usaha, piutang lain-lain, utang usaha, utang lain-lain, receivables, trade payable, other payables, long-
utang jangka panjang, dan beban yang masih harus term payable, and accrued expenses.
dibayar.
Risiko nilai tukar mata uang asing Foreign currency risk
Risiko nilai tukar mata uang asing adalah risiko Foreign currency risk is a risk in the fair value of
perubahan nilai wajar arus kas di masa datang dari future cash flows of a financial instrument fluctuates
suatu instrumen keuangan yang berfluktuasi sebagai as a result of changes in foreign currency exchange
akibat perubahan nilai tukar mata uang asing yang rates used by the Group. Exposure of the Group
digunakan oleh Grup. Eksposur Grup terhadap against exchange rate fluctuation is mainly derived
fluktuasi nilai tukar terutama berasal dari utang from debt arising from the procurement of goods and
pengadaan barang dan jasa dalam mata uang USD services denominated in USD and EUR, as well as
dan EUR, serta piutang dari penjualan ekspor dalam receivables from USD denominated export sales.
mata uang USD.
Dalam hal transaksi valuta asing yang terkait dengan In case of foreign currency transactions related to
pengadaan barang dan jasa untuk pembangunan the procurement of goods and services for the new
pabrik semen baru yang saat ini sedang dalam cement plant, which are currently under
proses penyelesaian, entitas anak (SP dan SG) constructions, its subsidiary (SP and SG) manage
mengelola risiko valuta USD dan EUR dengan foreign currency exposure to USD and EUR by
menetapkannya sebagai lindung nilai arus kas entering into cash flow hedging transaction using
menggunakan instrumen keuangan non derivatif non-derivative financial instruments through spot
melalui pembelian spot mata uang asing. Perubahan purchase of foreign currency. Changes in the fair
atas nilai wajar instrumen keuangan non derivatif value of non derivative financial instrument are
diakui dalam akun cadangan atas lindung nilai arus recognized in cash flow hedge reserve account
kas sebagai bagian dari ekuitas dan saat masa under the equity section and capitalized them into
lindung nilai berakhir dikapitalisasi dalam aset tetap cement plant assets at the end of hedging period.
pabrik semen.
Tingkat sensitivitas yang digunakan oleh The sensitivity rate used by the management is the
managemen adalah dasar atas fluktuasi nilai tukar basis of fluctuation of the foreign exchange during
mata uang asing selama tahun 2016. Berikut ini 2016. The sensitivity analysis used the 4%
adalah analisis sensitivitas efek 4% perubahan kurs fluctuation in the foreign exchange rates to profit
mata uang asing terhadap laba setelah pajak dengan after tax with other variance considered as constant
semua variabel lain dianggap tetap: is as follow:
Dampak USD/
USD impact
Laba rugi 8.584.977 Profit or loss
Risiko harga Price risk
Risiko harga adalah risiko fluktuasi nilai instrumen Price risk is the risk that the value of a financial
keuangan sebagai akibat perubahan harga pasar, instrument will fluctuate as a result of changes in
terlepas dari apakah perubahan tersebut disebabkan market prices, whether those changes are caused
oleh faktor-faktor spesifik dari instrumen individual by factors specific to the individual instrument or its
atau penerbitnya atau faktor-faktor yang issuer or factors affecting all instruments traded in
mempengaruhi seluruh instrumen yang the market.
diperdagangkan di pasar.
Annual Report 2016

573
Grup terkena dampak risiko harga yang terutama The Group is exposed to price risk that is mainly due
diakibatkan oleh pembelian batu bara yang to the purchase of coal which is the main component
merupakan komponen utama biaya produksi. Harga of production costs. The price of coal is influenced
batu bara tersebut dipengaruhi oleh beberapa faktor, by several factors, including demand, supply,
antara lain permintaan, pasokan, nilai tukar, dan exchange rates, and weather. The impact of price
cuaca. Dampak risiko harga tersebut mengakibatkan risk of production costs will rise. The Group does not
kenaikan biaya produksi. Grup tidak serta merta necessarily able to pass on these price increases to
dapat mengalihkan kenaikan harga tersebut kepada its customers.
pelanggannya.
Kebijakan Grup untuk meminimalkan risiko yang The Group’s policy to minimize risks arising from
berasal dari fluktuasi harga batu bara adalah antara fluctuations in the price of coal is among other things
lain dengan mengadakan kontrak pembelian yang entered into purchase contracts for a period of 12
berjangka waktu 12 bulan atau kurang dan pembelian months or less and a joint purchase between the
secara bersama antara Grup kepada pemasok agar Group to suppliers in order to obtain favorable
mendapatkan harga yang menguntungkan. prices.
Risiko suku bunga atas arus kas Cash flows interest rate risk
Risiko suku bunga atas arus kas merupakan suatu Cash flows interest rate risk is a risk that the future
risiko dimana arus kas masa datang suatu instrumen cash flows of a financial instrument will fluctuate
keuangan akan berfluktuasi akibat perubahan suku because of changes in market interest rates. Current
bunga pasar. Eksposur yang ada saat ini terutama exposure related to this risk mainly arises from the
berasal dari utang jangka panjang atas kredit rupiah denominated long-term syndicated loans for
sindikasi untuk proyek pembangunan pabrik semen cement plant project in subsidiaries (ST and SP)
di entitas anak (ST dan SP) dalam mata uang rupiah which bear floating interest rate. Loans at variable
dengan suku bunga mengambang. Pinjaman dengan rates expose the subsidiary to cash flows risk.
suku bunga mengambang menimbulkan risiko arus
kas kepada entitas anak.
Saat ini, Grup tidak mempunyai kebijakan formal Currently, the Group does not have a formal hedging
untuk lindung nilai atas risiko suku bunga. Kebijakan policy for interest rate exposures. Measures taken
yang diambil oleh manajemen dalam mengantisipasi by management in anticipation of interest rate risk is
risiko suku bunga yaitu dengan mengevaluasi secara to evaluate periodically, comparing fixed rates to
periodik perbandingan suku bunga tetap terhadap floating interest rates in line with relevant changes in
suku bunga mengambang sejalan dengan perubahan interest rates in the market. Management is also
suku bunga yang relevan di pasar. Manajemen juga conducting a survey of banks to obtain an estimate
melakukan survey di perbankan untuk mendapatkan of the relevant interest rate.
perkiraan mengenai suku bunga yang relevan.
Profil pinjaman bank dari Grup adalah sebagai The Group’s bank loans profile is as follows:
berikut:
2016 2015
Pinjaman dengan suku bunga tetap 5.650.000 7.390.000 Loans w ith fixed interest rates
Pinjaman dengan suku bunga
mengambang 5.668.369.271 3.757.938.402 Loans w ith floating interest rate
5.674.019.271 3.765.328.402
Dampak fluktuasi suku bunga 100 basis poin (bps) Effect of interest rates fluctuation of 100 basis points
terhadap laba setelah pajak dengan semua variabel (bps) to profit after tax with all other variables
lain tetap: constant:
2016 2015
Naik 100 bps (56.683.693) (37.579.384) Increase 100 bps
Turun 100 bps 56.683.693 37.579.384 Decrease 100 bps



Risiko kredit Credit risk
Risiko kredit adalah risiko kerugian yang dihadapi Credit risk is the risk that the Group will incur a loss
Grup sebagai akibat wanprestasi dari pihak ketiga from defaulted third parties and related parties. Third
dan pihak berelasi. Pihak ketiga yang dimaksud yaitu parties refer to the distributors and counter parties
distributor dan pihak lawan yang gagal memenuhi that fail to discharge their contractual obligations.
kewajiban kontraktual mereka.
Kebijakan manajemen dalam mengantisipasi risiko Management policies in anticipation of this credit risk
kredit yang timbul dari distributor adalah sebagai from the distributors are as follows:
berikut:
1. Grup hanya akan melakukan hubungan usaha 1. The Group will only do business relationships
dengan pihak ketiga yang diakui, kredibel dan with third parties who are recognized, credible
bankable. and bankable.
2. Mempunyai kebijakan untuk penjualan kredit dan 2. Have a policy for credit sales and all third
semua pihak ketiga yang akan melakukan parties who will make credit trade have to go
perdagangan secara kredit harus melalui through credit verification procedures.
prosedur verifikasi kredit.
3. Meminta kepada pihak ketiga yang akan 3. Request third parties who will do credit trade
melakukan perdagangan kredit dengan Grup with the Group to provide collateral in the form
untuk memberikan jaminan berupa aset tetap, of fixed assets, time deposit or bank guarantee.
deposito berjangka atau bank garansi.
4. Memberikan batasan atau plafon kepada pihak 4. Provide limits or ceiling to a third party who will
ketiga yang akan melakukan perdagangan kredit do credit trade with the Group equivalent to the
dengan Grup sebesar jaminannya. amount of their guarantees.
5. Melakukan pemantauan atas jumlah piutang 5. Monitor the amount of receivables on an

secara terus menerus untuk mengurangi risiko ongoing basis to reduce the risk for doubtful
piutang tak tertagih. accounts.
Grup meminimalkan risiko kredit aset keuangan The Group minimizes credit risks on financial assets
seperti kas setara kas dengan mempertahankan such as cash and cash equivalent by maintaining
saldo kas minimum dan memilih bank yang minimum cash balance and select qualified bank for
berkualitas untuk penempatan dana. the placement of funds.
Eksposur maksimum risiko kredit adalah sebesar nilai The maximum exposure to the credit risk is
tercatat sebagaimana di ungkapkan pada Catatan 5, represented by the carrying amount as shown in
6, 7 dan 8. Tidak ada risiko kredit yang terpusat Notes 5, 6, 7 and 8. There is no significant
secara signifikan. concentration of credit risk.
Risiko likuiditas Liquidity risk
Risiko likuiditas adalah suatu risiko yang dapat terjadi Liquidity risk is a risk that occurs when current
dimana aset jangka pendek tidak dapat menutupi assets cannot cover current liabilities.
liabilitas jangka pendek.
Mengingat bahwa kebutuhan dana Grup saat ini Given that funding requirements of the Group is
cukup signifikan sebagai akibat dari meningkatnya currently significant as a result of increased activity
aktivitas pengembangan atau perluasan bisnis, maka of development or expansion of business, then in
dalam mengelola risiko likuiditas, Grup terus menerus managing liquidity risk, the Group continue to
memantau dan menjaga tingkat kas dan setara kas monitor and maintain levels of adequacy of cash and
agar memadai untuk membiayai kebutuhan cash equivalents to finance the operational needs of
operasional Grup. the Group.
Annual Report 2016

575
Selain itu, Grup juga secara rutin mengevaluasi In addition, the Group also regularly evaluates cash
proyeksi arus kas untuk mengatasi dampak dari flow projections and actual cash to cope with the
fluktuasi arus kas, termasuk jadwal jatuh tempo impact of fluctuations in cash flow, including the
liabilitas jangka panjang dan terus menelaah kondisi maturity schedule of long-term liabilities and
pasar keuangan untuk inisiatif penempatan dan continue to examine the condition of financial
penggalangan dana yang meliputi pinjaman bank, markets to placement and fund-raising initiatives,
penerbitan ekuitas pasar modal dan ekuitas utang. including bank loans, issuance of equity and debt
securities.
Tabel berikut merinci sisa jatuh tempo kontrak untuk The tables below detail the remaining contractual
liabilitas keuangan non-derivatif dengan periode maturity for its non-derivative financial liabilities with
pembayaran yang disepakati. Tabel telah disusun agreed repayment periods. The tables have been
berdasarkan arus kas yang didiskontokan dari drawn up based on the undiscounted cash flows of
liabilitas keuangan berdasarkan tanggal terawal di financial liabilities based on the earliest date on
mana Grup dapat diminta untuk membayar. Tabel which the Group can be required to pay. The tables
mencakup arus kas bunga dan pokok. Untuk arus include both interest and principal cash flows. To the
bunga tingkat mengambang, jumlah tidak extent that interest flows are floating rate, the
didiskontokan berasal dari kurva suku bunga pada undiscounted amount is derived from interest rate
akhir periode pelaporan. Jatuh tempo kontrak curves at the end of the reporting period. The
didasarkan pada tanggal terawal di mana Grup contractual maturity is based on the earliest date on
mungkin akan diminta untuk membayar. 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/
31 Desember 2016 interest rate one year 1-5 years 5+ years Total December 31, 2016
Tanpa bunga Non-interest bearing

Utang usaha - 4.077.757.062 - - 4.077.757.062 Trade payables
Beban yang masih harus dibayar - 677.378.424 - - 677.378.424 Accrued expenses
Utang lain-lain - 305.250.840 - - 305.250.840 Other payables
Instrumen tingkat bunga variabel Variable interest rate instruments
Liabilitas sewa pembiayaan 7,14% - 18,25% 100.737.490 253.525.506 219.259.387 573.522.383 Finance lease liabilities
Pinjaman Bank 8,10% - 12,75% 1.113.349.144 2.807.623.637 1.359.447.513 5.280.420.294 Bank loans
Instrumen tingkat bunga tetap Fixed interest rate instruments
Liabilitas sewa pembiayaan 5,95% - 12,80% 76.863.805 62.364.597 - 139.228.402 Finance lease liabilities
Pinjaman Bank 8,15 - 11,00% 36.196.178 1.931.400 1.020.324.415 1.058.451.993 Bank loans
6.387.532.943 3.125.445.140 2.599.031.315 12.112.009.398
Tingkat bunga
efektif
rata-rata
tertimbang/ Kurang dari
Weighted satu tahun/ Diatas
average Less than 1-5 tahun 5 tahun/ Jumlah/
31 Desember 2015 interest rate one year 1-5 years 5+ years Total December 31, 2015
Tanpa bunga Non-interest bearing

Utang usaha - 3.783.245.999 - - 3.783.245.999 Trade payables
Beban yang masih harus dibayar - 633.616.432 - - 633.616.432 Accrued expenses
Utang lain-lain - 194.299.978 - - 194.299.978 Other payables
Instrumen tingkat bunga variabel Variable interest rate instruments
Liabilitas sewa pembiayaan 11,89% 14.849.406 - - 14.849.406 Finance lease liabilities
Pinjaman Bank 9,96% - 13,25% 850.802.700 3.314.718.826 200.386.295 4.365.907.821 Bank loans
Instrumen tingkat bunga tetap Fixed interest rate instruments
Liabilitas sewa pembiayaan 7,00% - 20,00% 84.993.052 140.523.954 38.608.505 264.125.511 Finance lease liabilities
Pinjaman Bank 11,00% 435.133 6.957.125 - 7.392.258 Bank loans
5.562.242.700 3.462.199.905 238.994.800 9.263.437.405



Jumlah yang dicakup di atas untuk instrumen suku The amounts included above for variable interest
bunga variabel untuk liabilitas keuangan non-derivatif rate instruments for non-derivative financial liabilities
harus berubah jika perubahan suku bunga variabel is subject to change if changes in variable interest
berbeda dengan estimasi suku bunga yang rates differ to those estimates of interest rates
ditentukan pada akhir periode pelaporan. determined at the end of the reporting period.
Pengukuran nilai wajar Fair value measurements
Nilai wajar instrumen keuangan yang dicatat pada Fair value of financial instruments carried at
biaya perolehan diamortisasi amortized cost
Kecuali sebagaimana tercantum dalam tabel berikut, Except as detailed in the following table, the
direksi menganggap bahwa nilai tercatat aset directors consider that the carrying amounts of
keuangan dan liabilitas keuangan diakui dalam financial assets and financial liabilities recognized
laporan keuangan konsolidasian mendekati nilai in the consolidated financial statements
wajarnya. approximate their fair values.
2016 2015
Nilai Tercatat/ Nilai Wajar/ Nilai Tercatat/ Nilai Wajar/
Carrying Amount Fair Value Carrying Amount Fair Value
Liabilitas Keuangan Financial Liabilities

Liabilitas sewa pembiay aan 586.355.919 588.943.604 235.972.243 241.206.677 Finance lease liabilities
Pinjaman bank 4.854.994.557 4.789.853.828 3.626.724.834 3.587.751.896 Bank loans
Total Liabilitas Keuangan 5.441.350.476 5.378.797.432 3.862.697.077 3.828.958.573 Total Financial Liabilities
Teknik penilaian dan asumsi yang diterapkan untuk Valuation techniques and assumptions applied for
tujuan pengukuran nilai wajar the purposes of measuring fair value
Nilai wajar aset keuangan dan liabilitas keuangan The fair values of financial assets and financial
ditentukan sebagai berikut: liabilities are determined as follows:
 Nilai wajar aset keuangan dan liabilitas keuangan  The fair values of financial assets and financial
dengan syarat dan kondisi standar dan liabilities with standard terms and conditions
diperdagangkan di pasar aktif ditentukan dengan and traded on active liquid markets are
mengacu pada harga pasar. determined with reference to quoted market
prices.
 Nilai wajar instrumen derivatif dihitung  The fair values of derivative instruments are
menggunakan harga kuotasian. Bila harga calculated using quoted prices. Where such
tersebut tidak tersedia, analisis arus kas diskonto prices are not available, a discounted cash
dilakukan dengan menggunakan kurva hasil flow analysis is performed using the applicable
yang berlaku selama instrumen untuk non- yield curve for the duration of the instruments
opsional derivatif, dan model harga opsi untuk for non-optional derivatives, and option pricing
derivatif opsional. Kontrak valuta berjangka mata models for optional derivatives. Foreign
uang asing diukur dengan menggunakan kurs currency forward contracts are measured
kuotasi dan kurva yield yang berasal dari suku using quoted forward exchange rates and yield
bunga kuotasi mencocokkan jatuh tempo curves derived from quoted interest rates
kontrak. Swap suku bunga diukur pada nilai kini matching maturities of the contracts. Interest
dari arus kas masa depan yang diestimasi dan rate swaps are measured at the present value
didiskontokan berdasarkan kurva imbal hasil of future cash flows estimated and discounted
yang berasal dari suku bunga kuotasi. based on the applicable yield curves derived
from quoted interest rates.
 Nilai wajar aset keuangan dan liabilitas  The fair values of other financial assets and
keuangan lainnya (tidak termasuk yang financial liabilities (excluding those described
dijelaskan di atas) ditentukan sesuai dengan above) are determined in accordance with
model penentuan harga yang berlaku umum generally accepted pricing models based on
berdasarkan analisis discounted cash flow discounted cash flow analysis using prices
menggunakan harga dari transaksi pasar yang from observable current market transactions
dapat diamati saat ini dan kutipan dealer untuk and dealer quotes for similar instruments.
instrumen sejenis.
Annual Report 2016

577
Nilai wajar seluruh aset keuangan dan liabilitas The fair value of the Group’s financial assets and
keuangan Grup, kecuali kas di bank, deposito liabilities, except cash in banks, time deposits and
berjangka dan call deposits diukur menggunakan call deposits are measured using input level 3 which
input level 3 yang mencakup input untuk aset dan include inputs for the financial assets or liability that
liabilitas keuangan yang bukan berdasarkan data are not based on observable market data. Cash in
pasar yang dapat diobservasi. Kas di bank, deposito banks, time deposits and call deposits are measured
berjangka dan call deposits diukur menggunakan using input level 2 which include other than quoted
input level 2 yang mencakup input selain harga prices included within Level 1, that are observable
kuotasian dalam Level 1, yang dapat diobservasi for the financial asset or liability, either directly or
untuk aset atau liabilitas keuangan, baik secara indirectly.
langsung maupun tidak langsung.
Pengelolaan modal Capital management
Tujuan utama pengelolaan modal Grup adalah untuk The primary objective of the Group’s capital
memastikan pemeliharaan rasio modal yang sehat management is to ensure that it maintains healthy
untuk mendukung usaha dan memaksimalkan capital ratios in order to support its business and
imbalan bagi pemegang saham. maximize shareholder value.
Grup disyaratkan untuk memelihara tingkat The Group is required under their respective loan
permodalan tertentu oleh perjanjian pinjaman. agreements to maintain the level of existing share
Persyaratan permodalan eksternal tersebut telah capital. This externally imposed capital requirement
dipenuhi oleh entitas terkait pada tanggal has been complied with by the relevant entities as of
31 Desember 2016 dan 2015. Selain itu, Grup juga December 31, 2016 and 2015. In addition, the Group
dipersyaratkan oleh Undang-undang No. 40 Tahun is also required by the Law No. 40 Year 2007
2007 tentang Perseroan Terbatas, efektif sejak regarding Limited Liability Entities, effective August
tanggal 16 Agustus 2007, untuk mengalokasikan 16, 2007, to allocate and maintain a non-
sampai dengan 20% dari modal saham diterbitkan distributable reserve fund until the said reserve
dan dibayar penuh ke dalam dana cadangan yang reaches 20% of the issued and fully paid share
tidak boleh didistribusikan. Persyaratan permodalan capital. This externally imposed capital
eksternal tersebut telah dipertimbangkan oleh Grup requirements are considered by the Group and
serta telah diputuskan pada Rapat Umum Pemegang decided at the Annual General Meeting of
Saham (“RUPS”). Shareholders (“AGMS”).
Grup mengelola struktur permodalan dan melakukan The Group manages its capital structure and makes
penyesuaian, bila diperlukan, berdasarkan adjustments to it, if necessary, in light of changes in
perubahan kondisi ekonomi. Untuk memelihara dan economic conditions. To maintain or adjust the
menyesuaikan struktur permodalan, Grup dapat capital structure, the Group may adjust the dividend
menyesuaikan pembayaran dividen kepada payment to shareholders, issue new shares or raise
pemegang saham, menerbitkan saham baru atau debt financing. No changes were made in the
mengusahakan pendanaan melalui pinjaman. Tidak objectives, policies or processes during the period
ada perubahan atas tujuan, kebijakan maupun ended December 31, 2016 and 2015.
proses selama periode yang berakhir pada tanggal-
Grup mengawasi modal dengan menggunakan rasio The Group monitors its capital using gearing ratios,
pengungkit (gearing ratio), dengan membagi jumlah by dividing interest bearing loan by total equity
pinjaman berdampak bunga dengan jumlah ekuitas attributable to equity holders of the parent entity. The
yang dapat diatribusikan kepada pemilik entitas Group’s policy is to maintain its gearing ratio within
induk. Kebijakan Grup adalah menjaga rasio the range of gearing ratios of the leading companies
pengungkit dalam kisaran dari perusahaan in Indonesia in order to secure access to finance at
terkemuka di Indonesia untuk mengamankan akses a reasonable cost. Included in interest bearing loans
terhadap pendanaan pada biaya yang rasional. are short-term bank loans and long-term bank loans,
Termasuk dalam total pinjaman berdampak bunga and finance lease liabilities.
adalah pinjaman bank jangka pendek, pinjaman bank
jangka panjang, dan liabilitas sewa pembiayaan.



Rasio pengungkit pada tanggal 31 Desember 2016 The gearing ratios as of December 31, 2016 and
dan 2015 adalah sebagai berikut: 2015 are as follow:

2016 2015
Pinjaman bank 5.674.019.271 3.765.328.402 Bank loans

Liabilitas sew a pembiayaan 586.355.919 235.972.243 Finance lease liabilities
Jumlah pinjaman yang berdampak bunga 6.260.375.190 4.001.300.645 Total interest bearing loans
Jumlah ekuitas yang dapat diatribusikan Total equity attributable to ow ners
kepada pemilik entitas induk 29.035.195.760 26.419.541.790 of the parent entity
Rasio pengungkit (x) 0,22 0,15 Gearing ratio (x)
48. AKUSISI ENTITAS ANAK 48. ACQUISITION OF SUBSIDIARIES
1. Sebagaimana dijelaskan dalam Catatan 1b, sejak 1. As described in Note 1b, as of June 29, 2016,
29 Juni 2016, SIB melakukan pembelian SIB acquired 2,900,000 shares issued by VUB
2.900.000 lembar saham yang dikeluarkan VUB with total amount of Rp60,972,500. Due to the
dengan harga sebesar Rp60.972.500. Atas acquisition, SIB increased its voting interest by
pembelian tersebut, SIB meningkatkan 36.67% hence its ownership in VUB is
kepemilikannya sebesar 36.67% sehingga jumlah increased to 50.90% which provided SIB control
kepemilikan SIB menjadi 50.90% yang over VUB. VUB is domiciled in Gresik and
memberikan pengendalian atas VUB. VUB engages in concrete industry and industrial
berdomisil di Gresik dan bergerak dalam bidang development, which the purpose of the
industry beton dan pembangunan, dimana tujuan acquisition is to strengthen the business
akuisisi tersebut adalah untuk penguatan strategi strategy of the Group.
bisnis Grup.
Total nilai akuisisi adalah sebesar Rp60.972.500 The acquisition value amounting to
yang seluruhnya dibayarkan di tahun 2016. Rp60,972,500 was fully paid in 2016.
Kepentingan nonpengendali sebesar 49,10% The non-controlling interest 49.10% amounting

sebesar Rp113.092.579 diakui pada tanggal to Rp113,092,579 recognized at acquisition
akuisisi diukur secara proposional berdasarkan date was measured at proportionate share of
kepemilikan saham VUB dari nilai wajar aset neto VUB’s fair value identifiable net assets.
yang diidentifikasi.
Annual Report 2016

579
Pada saat tanggal akuisisi VUB, nilai wajar aset As of date of the acquisition of VUB, the fair
yang diperoleh dan liabilitas diasumsikan sebagai value of assets acquired and liabilities assumed
berikut:: are as follows:
Aset Assets
Kas dan setara kas 39.697.868 Cash and cash equivalents
Piutang usaha dan piutang lain-lain 243.500.180 Trade receivables and others receivables
Persediaan 54.377.205 Inventories
Aset Lancar Lainnya 26.131.165 Other current assets
Aset tetap 213.577.732 Fixed assets
Aset tidak lancar lainnya 9.930.645 Other non-current assets
Utang usaha (250.906.513) Trade payables
Liabilitas jangka pendek lainnya (41.620.692) Other current liabilities
Liabilitas jangka panjang lainnya (89.111.399) Other non-current liabilities
Nilai w ajar aset bersih yang diakuisisi 205.576.191 Fair value of Net Assets Acquired
Imbalan yang dialihkan 60.972.500 Purchase consideration transferred

Ditambah: Kepentingan nonpengendali 113.092.579 Add: Non-controlling interests
Ditambah: Kepemilikan sebelumnya yang diukur Add: previously existing interest remeasured
menggunakan nilai w ajar 77.098.675 at fair value
Dikurangi: Nilai w ajar aset bersih teridentifikasi Less: Fair value of identifiable net assets
yang diperoleh (205.576.191) acquired
Goodw ill yang timbul dari akuisisi (Catatan 17) 45.587.563 Goodw ill arising from acquisition (Note 17)
Imbalan yang dialihkan (60.972.500) Purchase consideration transferred

Dikurangi: Less:
kas dan setara kas yang diperoleh 39.697.868 Cash and cash equivalents acquired
Arus kas keluar bersih pada saat akuisisi (21.274.632) Net cash outflow on acquisition
Sebelum akusisi, SIB telah memiliki kepemilikan Before acquisition, SIB held ownership of 36.67%,
sebesar 36,67% yang diukur menggunakan measured using equity method. The fair value of
metode ekuitas. Nilai wajar yang dimiliki SIB atas SIB’s previously held equity interest in VUB
kepentingan ekuitas di VUB sebelum tanggal amounted to Rp77,098,675. The gain resulting from
akuisisi adalah sebesar Rp77.098.675. fair value remeasurement of SIB’s previously held
Keuntungan yang yang diakui sebagai hasil dari equity interest at the acquisition date amounting to
pengukuran kembali nilai wajar dari kepentingan Rp23,842,742 is recognized in current year profit or
ekuitas yang dimiliki oleh SIB sebelum kombinasi loss (Note 36).
bisnis senilai Rp23.842.742 diakui dalam laba rugi
tahun berjalan (catatan 36).
Goodwill yang timbul dalam kombinasi bisnis Goodwill arose from this business combination
karena biaya kombinasi termasuk suatu premi because the cost of the business combination
pengendalian. Selanjutnya, imbalan yang dibayar included a control premium. In addition, the
untuk kombinasi secara efektif termasuk jumlah consideration paid for the combination effectively
yang terkait dengan sinergi yang diharapkan, included amounts in relation to the benefit of epected
pertumbuhan pendapatan, pengembangan pasar synergies, revenue growth, future market
yang akan datang, kumpulan tenaga kerja dan development, assembled workforce and certain
aset tak berwujud tertentu. Manfaat ini tidak diakui intangible assets. These benefits are not recognized
terpisah dari goodwill karena manfaat tersebut separately from goodwill because they do not meet
tidak memenuhi kriteria pengakuan untuk aset tak the recognition criteria for identifiable intangible
berwujud yang dapat diidentifikasi. assets.
Tidak ada goodwill yang diakui dan diharapkan None of the goodwill recognized is expected to be
dapat menjadi pengurang pajak penghasilan. deductible for income tax purposes.
Entitas anak ini memberikan kontribusi This subsidiary contributed Rp504,352,706 of
pendapatan sebesar Rp504.352.706 dan laba revenue and Rp2,400,095 of net profit to the
bersih sebesar Rp2.400.095 terhadap hasil consolidated results in 2016.
konsolidasian tahun 2016.

- 164 -


2. Sebagaimana dijelaskan dalam Catatan 1b, sejak 2. As described in Note 1b, as of November 1,
1 Nopember 2016, Perseroan melakukan akuisisi 2016, the Company acquired 48.7% of voting
48,7% saham PT Varia Usaha ("VU") yang shares of PT Varia Usaha ("VU"), which
memberikan pengendalian Perseroan atas provided the Company control over VU. VU is
kebijakan keuangan dan operasi dari VU. VU domiciled in Gresik and engages in
berdomisili di Gresik dan bergerak dalam bidang Transportation and warehousing, trading,
transportasi, pergudangan, perdagangan, industry and construction and others. VU was
perindustrian, konstruksi dan lain-lain. VU acquired so as to continue the expansion of the
diakuisisi sehingga dapat melanjutkan perluasan Group's activities.
aktivitas Grup.
Total nilai akuisisi adalah sebesar Rp475.100.000 The acquisition value amounting to
yang seluruhnya dibayarkan di tahun 2016. Rp475,100,000 was fully paid in 2016.
Kepentingan nonpengendali sebesar 26,35% The non-controlling interest (26.35%)

sebesar Rp257.061.401 diakui pada tanggal amounting to Rp257,061,401 recognized at
akuisisi diukur secara proposional berdasarkan acquisition date was measured at proportionate
kepemilikan saham VU dari nilai wajar aset neto share of VU’s fair value identifiable net assets.
yang diidentifikasi.
Pada saat tanggal akuisisi VU, nilai wajar aset As of date of the acquisition of VU, the fair value
yang diperoleh dan liabilitas diasumsikan sebagai of assets acquired and liabilities assumed are as
berikut follows:
Aset Assets
Kas dan setara kas 73.541.936 Cash and cash equivalents
Piutang usaha dan piutang lain-lain 645.346.759 Trade receivables and other receivables
Investasi jangka pendek 53.275.000 Short-term investments
Persediaan 159.076.442 Inventories
Aset Lancar Lainnya 77.569.399 Other current assets
Investasi pada entitas asosiasi 76.786.915 Investment in associate
Aset tetap 843.731.290 Fixed assets
Aset Tak berw ujud 322.526.748 Intangible assets
Aset tidak lancar lainnya 16.792.975 Other non-current assets
Utang usaha kepada pihak ketiga (208.130.328) Trade accounts payable to third parties
Utang usaha kepada pihak berelasi (447.956.598) Trade accounts payable to related parties
Liabilitas jangka pendek lainnya (291.902.676) Other current liabilities
Liabilitas jangka panjang lainnya (344.328.260) Other non-current liabilities
Kepentingan nonpengendali (764.513) Non-controlling interest
Nilai w ajar aset bersih yang diakuisisi 975.565.089 Fair value of net assets acquired
Imbalan yang dialihkan 475.100.000 Purchase consideration transferred

Ditambah: Kepentingan nonpengendali 257.061.401 Add: Non-controlling interests
Ditambah: Kepemilikan sebelumnya yang diukur Add: previously existing interest remeasured
menggunakan nilai w ajar 243.403.688 at fair value
Dikurangi: Nilai w ajar aset bersih teridentifikasi Less: Fair value of identifiable net assets
yang diperoleh (975.565.089) acquired
Goodw ill yang timbul dari akuisisi - Goodw ill arising from acquisition
Imbalan yang dialihkan (475.100.000) Purchase consideration transferred

Dikurangi: Less:
Kas dan setara kas yang diperoleh 73.541.936 Cash and cash equivalents acquired
Arus kas keluar bersih pada saat akuisisi (401.558.064) Net cash outflow on acquisition
Tidak ada goodwill yang diakui dan diharapkan None of the goodwill recognized is expected to
dapat menjadi pengurang pajak penghasilan. be deductible for income tax purposes.
- 165 -
Annual Report 2016
581
Sebelum akusisi, Perseroan telah memiliki Before acquisition, the Company held
kepemilikan sebesar 24,95% yang diukur ownership of 24.95%, measured using equity
menggunakan metode ekuitas. Nilai Wajar pada method. The fair value of the Company’s
tanggal akuisisi atas kepentingan ekuitas di VU previously held equity interest in VU amounted
yang dimiliki segera sebelum tanggal akuisisi to Rp243,403,688. The gain resulting from fair
adalah sebesar Rp243.403.688. Keuntungan value remeasurement of the Company's
yang yang diakui sebagai hasil dari pengukuran previously held equity interest at the acquisition
kembali nilai wajar dari kepentingan ekuitas yang date amounting to Rp103.437.803 is recognized
dimiliki oleh Perseroan sebelum kombinasi bisnis in profit or loss (Note 36).
senilai Rp103.437.803 diakui dalam laba rugi
tahun berjalan (Catatan 36).
Entitas anak ini memberikan kontribusi This subsidiary contributed Rp251,516,300 of
pendapatan sebesar Rp251.516.300 dan laba revenue and Rp22,683,704 of net income to the
bersih sebesar Rp22.683.704 terhadap hasil consolidated results in 2016.
konsolidasian tahun 2016.
Akibat akuisisi VU yang dilakukan perseroan, Due to the acquisition of VU by the Company,
terdapat perubahan kepemilikan Perseroan there was a change in the Company’s indirect
secara tidak langsung di VUB, melalui SIB, yang ownership interest in VUB, through SIB, that did
tidak mengakibatkan kehilangan pengendalian. not result in losing control. These change
Perubahan tersebut menghasilkan transaksi resulted into equity transaction recorded as
ekuitas yang dicatatkan sebagai selisih transaksi difference in value of equity transaction with
ekuitas dengan pihak non-pengendali sebesar non-controlling interest amounting to
Rp28.928.287. Rp28,928,287.
49. INFORMASI PENTING LAINNYA 49. OTHER SIGNIFICANT INFORMATION
1) Penggantian Komisaris dan Direksi Perseroan 1) Changes in the Company’s Commissioners

and Directors
Pada tanggal 13 Mei 2016 bertempat di Jakarta, On May 13, 2016, AGMS was convened in
telah diselenggarakan RUPS Tahunan yang Jakarta to decide among others:
antara lain memutuskan:
a. memberhentikan dengan hormat: a. to honorably dismiss:
 Suparni sebagai Direktur Utama.  Suparni as President Director.
 Ahyanizzaman sebagai Direktur.  Ahyanizzaman as Director.
 Amat Pria Darma sebagai Direktur.  Amat Pria Darma as Director.
 Hadi Waluyo sebagai Komisaris  Hadi Waluyo as Independent
Independen. Commissioner.
 Achmad Jazidie sebagai Komisaris.  Achmad Jazidie as Commissioner.
b. mengalihkan jabatan: b. to positions:
 Rizkan Chandra sebagai Direktur  Rizkan Chandra as President
Utama. Director.
c. mengangkat: c. to appoint:
 Ahyanizzaman sebagai Direktur.  Ahyanizzaman as Director.
 Darmawan Junaidi sebagai Direktur.  Darmawan Junaidi as Director.
 Budi Siswoyo sebagai Direktur.  Budi Siswoyo as Director.
 Djamari Chaniago sebagai Komisaris  Djamari Chaniago as Independent
Independen. Commissioner.
 Hambra sebagai Komisaris.  Hambra as Commissioner.



2) Proyek WHRPG 2) The WHRPG Project
Pada tanggal 15 Januari 2009, Direktur Jenderal On January 15, 2009, the Director General of
Industri Agro dan Kimia - Kementerian Agro and Chemical Industry - Ministry of
Perindustrian Republik Indonesia (“DJIAK- Industry of the Republic of Indonesia ("DJIAK-
Menperin”) menandatangani nota kesepahaman Menperin") signed a memorandum of
mengenai The Model Project for Waste Heat understanding regarding the Model Project for
Recovery Power Generation in the Cement Waste Heat Recovery Power Generation in the
Industry (“WHRPG”) dengan The New Energy Cement Industry ("WHRPG") with The New
and Industrial Technology Development Energy and Industrial Technology
Organization, Jepang (“NEDO”). Pada tanggal Development Organization, Japan ("NEDO").
17 Mei 2010, SP mengadakan perjanjian On May 17, 2010, SP entered into cooperation
kerjasama dengan DJIAK-Menperin sehubungan agreements with DJIAK-Menperin with respect
dengan pelaksanaan nota kesepahaman to the implementation of the memorandum of
WHRPG tersebut. understanding of the WHRPG.
WHRPG adalah model proyek percontohan WHRPG is a model demonstration project by

dengan menambahkan peralatan yang adding equipment that convert hot exhaust
mengkonversikan panas gas buang menjadi gases into electrical energy so that the use of
energi listrik sehingga penggunaan batubara dan coal and CO2 emissions can be reduced. This
emisi gas CO2 menjadi berkurang. Proyek ini project aims to improve the quality of
bertujuan untuk memperbaiki kualitas environment and also to enhance the
lingkungan dan juga meningkatkan daya saing competitiveness and productivity of the cement
dan produktifitas industri semen. Pada proyek industry. On this project, NEDO’s equipment
ini, peralatan pihak NEDO dipasang pada are installed on SP’s plant facilities and SP
fasilitas pabrik SP dan SP berkewajiban shall provide the infrastructure and support
menyediakan infrastruktur dan peralatan equipment of the project. As of
pendukung dari proyek tersebut. Sampai dengan December 31, 2016, SP has incurred
31 Desember 2016, SP telah mengeluarkan expenditure of Rp90,090,208 for the
dana sebesar Rp90.090.208 untuk infrastruktur infrastructure and support equipment, which
dan peralatan pendukung yang dicatat sebagai are recorded as fixed assets (Note 15).
aset tetap (Catatan 15).
Perjanjian kerjasama ini berlangsung untuk This cooperation agreement is for a period of
jangka waktu 10 (sepuluh) tahun dan mulai 10 (ten) years and shall be effective since the
berlaku sejak perjanjian kerjasama agreement was signed. During the term of this
ditandatangani. Selama jangka waktu perjanjian agreement SP has the following obligations:
ini SP memiliki kewajiban sebagai berikut:
 Melakukan diseminasi dan demonstrasi  To conduct dissemination and

teknologi WHRPG yang akan difasilitasi demonstration of the WHRPG technology
oleh kementerian Perindustrian RI. that will be facilitated by the Ministry of
Industry of the Republic of Indonesia.
 Mengoperasikan dan melakukan perawatan  To operate and perform maintenance of

peralatan WHRPG dengan biaya sendiri. the WHRPG equipment at its own
expense.
 Bertanggung jawab atas kerusakan dan  To be responsible for the damage and loss
kehilangan peralatan WHRPG. of the WHRPG equipment.
 Melaporkan kinerja peralatan WHRPG  To be reporting the performance of the

setiap bulan April dan Oktober dalam setiap WHRPG equipment every April and
tahunnya kepada pihak NEDO. Sesuai October in each year to NEDO. In
dengan perjanjian kerjasama, peralatan accordance with the cooperation
WHRPG tersebut diharapkan dapat agreement, the WHRPG equipment is
menghasilkan energi listrik sebesar 8,5MW. expected to generate electrical energy up
to 8.5MW.
Annual Report 2016

583
Proyek tersebut telah dapat beroperasi dan telah The Project has been operating and was
diresmikan oleh Menteri Perindustrian RI dan inaugurated by the Minister of Industry of RI
perwakilan dari NEDO pada tanggal and a representative from NEDO on
26 Oktober 2011. October 26, 2011.
Pada tanggal 2 Januari 2013, Kementerian On January 2, 2013, Ministry of Industry of the
Perindustrian Republik Indonesia melalui Republic of Indonesia through the Director
Direktur Jenderal Basis Industri Manufaktur General of Basic Manufacturing Industry
menyerahkan penggunaan dan pemanfaatkan granted the operation and utilization of
mesin dan peralatan WHRPG kepada SP. Per WHRPG equipment to SP. As of
31 Desember 2016, program masih berjalan dan December 31, 2016, the program still continues
tidak terdapat perubahan ketentuan. and there are no changes in the terms of
agreement.
3) Grup menghadapi tuntutan-tuntutan hukum 3) The Group is involved in the following legal
sebagai berikut: cases:
a. Pada tanggal 24 Oktober 2008, a. On October 24, 2008, SP filed a lawsuit
SP mengajukan gugatan No. 99/Pdt.G/2008 PN.PDG against
No. 99/Pdt.G/2008PN.PDG terhadap PT Berkala International (PT BI) in the
PT Berkala International (PT BI) di Pengadilan Padang District Court (Pengadilan Negeri
Negeri Padang (PN Padang) akibat Padang - the Court) for the failure of PT BI
kegagalan PT BI untuk memenuhi to deliver coal in 2008 as agreed in a sales
kewajibannya menyerahkan batubara pada and purchase agreement between SP and
tahun 2008 sesuai dengan perjanjian jual beli PT BI. In its lawsuit, SP also appealed for
antara SP dan PT BI. Dalam gugatannya, SP the cancellation of the aforementioned
juga menyampaikan permohononan untuk sales and purchase agreement to PN
membatalkan perjanjian jual beli batubara Padang.
tersebut kepada PN Padang.
Berkenaan dengan Surat Kredit In relation to the domestic Letter of Credit
Berdokumen Dalam Negeri (SKBDN) yang (SKBDN) issued and accepted by Bank
telah diterbitkan dan diakseptasi oleh Bank Mandiri (Issuing Bank) for the purpose of
Mandiri (Bank Penerbit) sehubungan the sales and purchase agreement, SP has
dengan perjanjian jual beli, SP telah requested PN Padang to issue an
mengajukan permohonan kepada PN injunction to prevent Bank Mandiri, PT BI,
Padang untuk melarang Bank Mandiri, PT Eksplorasi Mantap Indonesia (as
PT BI, PT Eksplorasi Mantap Indonesia beneficiary), PT Maybank Indocorp (as
(selaku beneficiary), PT Maybank Indocorp correspondent bank) (Maybank) or any
(selaku bank koresponden) (Maybank) parties or their representatives to
untuk mencairkan/ mengklaim/ liquidate/claim/accept/ debit SP’s account
mengakseptasi/ mendebit rekening milik SP at Bank Mandiri until a final decision on this
pada Bank Mandiri hingga keputusan dalam case has been issued.
perkara ini mempunyai kekuatan hukum
tetap.
Pada tanggal 17 April 2009, PN Padang On April 17, 2009, PN Padang issued its
mengeluarkan Putusan yang mengabulkan decision in favor of SP as follows:
permohonan Provisi dan gugatan SP
sebagai berikut:
 Melarang kepada PT BI, Bank Mandiri, - Forbids PT BI, Bank Mandiri,
PT Eksplorasi Mantap Indonesia, PT Eksplorasi Mantap Indonesia,
Maybank Indocorp atau pihak manapun Maybank Indocorp on any other
juga maupun kuasa kuasanya untuk parties as well as their attorneys to
mencairkan/ mengklaim/ withdraw/claim/ accept/deduct the SP
mengakseptasi/ mendebit rekening account or other accounts of the SP in
milik SP ataupun rekening lainnya yang Bank Mandiri based on the
ada pada Bank Mandiri, atas dasar presentation of a SKBDN until a final
adanya pengajuan SKBDN sampai decision on this case is issued.
dengan putusan dalam perkara ini
mempunyai kekuatan hukum yang
tetap.

- 168 -


 Membatalkan Perjanjian Jual Beli - States that PT BI and PT Eksplorasi

batubara antara SP dengan PT BI, Mantap Indonesia have breached the
berikut segala akibat hukumnya. contract agreement betwen them and
SP.
 Menyatakan batal SKBDN yang - Terminated the sales purchasing
diterbitkan dalam rangka Perjanjian contract betwen PT BI and SP and all
Jual Beli batubara antara SP dengan of its legal consequences.
PT BI, berikut segala akibat hukumnya.
Selanjutnya atas putusan PN Padang Bank Mandiri and Maybank filed an appeal
tersebut, Bank Mandiri dan Maybank to the High Court of West Sumatera in
mengajukan banding ke Pengadilan Tinggi relation to PN Padang’s decision. On
Sumatera Barat. Pada tanggal 27 Januari January 27, 2010, the High Court of West
2010 telah dikeluarkan Putusan Pengadilan Sumatera issued a decision confirming PN
Tinggi Sumatera Barat yang menguatkan Padang’s decision.
putusan PN Padang.
Pada tanggal 8 Juli 2010, SP telah On July 8, 2010, SP has filed a counter
mengajukan kontra memori kasasi dan telah against the appeal. Based on the decision
dikeluarkan putusan kasasi dari Mahkamah of the Supreme Court No. 217 K/PDT/2011
Agung No. 217 K/PDT/2011 pada tanggal 20 on May 20, 2011, SP has won and the
Mei 2011 yang memenangkan SP dan appeal from PT Bank Maybank Indocorp
menolak permohonan kasasi dari PT Bank and PT Bank Mandiri (Persero) Tbk were
Maybank Indocorp dan PT Bank Mandiri rejected. Notification of the court (relass)
(Persero) Tbk. Relass atas putusan kasasi for the decision of the appeal was received
tersebut diterima pada tanggal 10 on November 10, 2011.
Nopember 2011.
Terhadap putusan Kasasi Mahkamah In response to the decision of Supreme
Agung, Bank Mandiri telah mengajukan Court on the appeal, Bank Mandiri has
Peninjauan Kembali (PK) kepada submitted its Judicial Review (PK) to the
Mahkamah Agung dimana relaas Supreme Court and the notification of the
pemberitahuan Peninjauan Kembali yang Judicial Review (PK) requested by Bank
diajukan oleh Bank Mandiri diterima oleh SP Mandiri has been received by SP
pada tanggal 23 Mei 2012. Atas Peninjauan on May 23, 2012. To counter the Judicial
Kembali tersebut, pada tanggal 20 Juni 2012 Review from Bank Mandiri, on
SP mengajukan Kontra Memori yang June 20, 2012, SP filed its contra memory to
selajutnya telah dilimpahkan oleh the Supreme Court by District
Pengadilan Negeri Padang kepada Court of Padang through its letter
Mahkamah Agung berdasarkan surat No.W3.P1/4100/HK.02/VI/2012 dated June
No.W3.P1/4100/HK.02/VI/2012, pada 27, 2012.
tanggal 27 Juni 2012.
Pada tanggal 14 Maret 2013, Mahkamah On March 14, 2013, the Supreme Court, at
Agung, ditingkat Peninjauan Kembali, the level of judicial review, with its letter
mengeluarkan putusan No.527/PK/Pdt/2012 No.527/PK/Pdt/2012, cancelled all
yang membatalkan semua putusan previous decision and judged by granting
sebelumnya dan mengadili sendiri dengan some requests of SP, among other things:
mengabulkan sebagian permohonan SP, declare BI and PT Eksplorasi Mantap
yaitu antara lain: menyatakan BI dan Indonesia has defaulted and cancelled coal
PT Eksplorasi Mantap Indonesia telah wan purchase agreement between BI and SP
prestasi, dan menyatakan batal perjanjian and enforced SKBDN issued for coal
jual beli batu bara antara BI dengan SP dan purchase Agreement between SP and BI.
memberlakukan SKBDN yang diterbitkan
dalam rangka Perjanjian Jual Beli batubara
antara SP dengan BI.
- 169 - Annual Report 2016

585
SP telah mencadangkan di dalam laporan SP has made a provision as of

keuangan konsolidasian 31 Desember 2008 December 31, 2008, for possible losses
potensi kerugian yang mungkin timbul dari which may arise from the acceptance of the
akseptasi SKBDN oleh Bank Mandiri sejumlah domestic letter of credit (SKBDN) by Bank
Rp23.760.000. Pada tahun 2009 SP dengan Mandiri in the amount of Rp23,760,000. In
niat baik sudah menempatkan dana pada 2009, SP placed funds in good faith in Bank
PT Bank Mandiri (Persero) Tbk senilai Mandiri amounting to Rp30,000,000 to
Rp30.000.000 yang diperlukan untuk provide funds required for settlement of
menyelesaikan liabilitas sampai ada amounts involving this matter, if any,
putusan yang berkekuatan hukum tetap. depending on the final resolution of the
Pada tanggal 30 Januari 2014, SP telah court result on this case. On January 30,
melakukan pembayaran sebesar 2014, SP made a payment of
Rp25.903.089. Rp25,903,089.
Pada tanggal 4 Nopember 2014 PN Jakarta On November 4, 2014, PN Jakarta Pusat
Pusat mengeluarkan putusan yang issued its decision in favor of SP as follows:
mengabulkan gugatan SP sebagai berikut:
a. Menyatakan PT Berkala Internasional a. States that PT Berkala Internasional
dan PT Eksplorasi Mantap International and PT Eksplorasi Mantap
telah melakukan perbuatan melawan International has commited an
hukum (onrechtmatigdaad) unlawful act as stipulated
sebagaimana diatur dalam pasal 1365 (onrechtmatigdaad) in Article 1365 of
KUH Perdata. the Civil Code.
b. Memutuskan bahwa PT Berkala b. Order PT Berkala Internasional and
Internasional dan PT Eksplorasi PT Eksplorasi Mantap International to
Mantap International mengganti indemnify jointly to SP amounting to
kerugian kepada SP secara tanggung Rp26,050,404 in cash and at the same
renteng sebesar Rp26.050.404 secara time.
tunai dan sekaligus.
Selanjutnya atas putusan PN Jakarta Pusat Furthermore, related to PN Jakarta Pusat’s
tersebut, PT Berkala Internasional dan decision, PT Berkala Internasional and PT
PT Eksplorasi Mantap International Eksplorasi Mantap International filed an
mengajukan banding ke Pengadilan Tinggi appeal to the High Court of Jakarta as Stated
Jakarta sebagaimana tertuang dalam Akta in the Deed of Appeal number
Permohonan Banding nomor 172/SRT.PDT.BDG/2014/PN.JKT.PST jo
172/SRT.PDT.BDG/2014/PN.JKT.PST jo number 49/PDT.G/2014/PN.JKT.PST
nomor 49/PDT.G/2014/PN.JKT.PST dated November 17, 2014.
tanggal 17 Nopember 2014.
Pada Pebruari 2016, SP mengajukan kontra In February 2016, SP filed an appeal to the
memori banding ke Pengadilan Tinggi High Court of Jakarta. Until the issuance of
Jakarta. Sampai dengan laporan keuangan this consolidated financial statements,
konsolidasian ini diterbitkan belum ada there has been no decision and still
putusan terhadap perkara tersebut dan pending appeal in the High Court of
masih menunggu proses banding di Jakarta.
Pengadilan Tinggi Jakarta.
b. Pada tanggal 1 September 2014, Joko c. b. On September 1, 2014, Joko Priyanto and 6
Priyanto dan 6 (enam) orang warga Rembang (six) people from Rembang and Wahana
dan Wahana Lingkungan Hidup Indonesia Lingkungan Hidup Indonesia (The
(WALHI) mengajukan gugatan tata usaha Indonesian Forum for the Environment,
negara kepada Gubernur Jawa Tengah WALHI) filed a state administration lawsuit to
selaku Tergugat, atas Izin Lingkungan the Semarang State Administration Court
Pendirian Pabrik Semen di Rembang milik (PTUN Semarang) against the Governor of
Perseroan No. 660/177 tanggal 7 Juni 2012 Central Java as Defendant in relation to
yang dikeluarkan oleh Gubernur Jawa Environmental License on The
Tengah pada Pengadilan Tata Usaha Negara Establishment of Cement Factory in
Semarang (“PTUN Semarang”), dengan Rembang owned by the Company
nomor registrasi perkara 064/G/2014/PTUN No. 660/177 dated June 7, 2012, which was
Semarang. issued by the Governor of Central Java, with
case registration number of
064/G/2014/PTUN Semarang.
- 170 -


Berkenaan dengan gugatan tata usaha In regards of the above matters, the
negara tersebut, Perseroan selaku pihak Company as the interest party, has officialy
yang berkepentingan telah secara resmi become the Intervenor Second Defendant.
masuk ke dalam para pihak sebagai
Tergugat II Intervensi.
Pada tanggal 16 April 2015, PTUN On April 16, 2015, PTUN Semarang
Semarang menolak gugatan WALHI dan rejected Claims of WALHI and declared
memutuskan bahwa Izin Lingkungan that the Environmental License on the
pendirian Pabrik Semen milik Perseroan di Establishment of Cement Factory in
Rembang tetap berlaku dan sah. Rembang owned by the Company was
valid.
Berdasarkan Putusan PTUN Semarang, Based on the Decision on PTUN
WALHI mengajukan banding ke Pengadilan Semarang, WALHI filed an appeal to the
Tinggi Tata Usaha Negara Surabaya State Administrative High Court of
(PT TUN Surabaya) dan pada tanggal Surabaya (PT TUN Surabaya) and on
3 Nopember 2015 PT TUN Surabaya November 3, 2015, PT TUN Surabaya
menerbitkan Putusan atas Perkara No. 135 issued Decision on Case No. 135 which
yang pada intinya menguatkan Putusan di essentially strengthen the administrative
PTUN Semarang. court ruling in Semarang.
Pada tanggal 4 Mei 2016, WALHI On May 4, 2016, WALHI submitted Judicial
mengajukan Memori Peninjauan Kembali Review memory (PK) to PTUN Semarang
(PK) ke PTUN Semarang, dan pada and on August 2, 2016 the case file was
2 Agustus 2016, berkas perkara tersebut submitted to Supreme Court.
diserahkan kepada Mahkamah Agung.
Pada tanggal 5 Oktober 2016, Mahkamah On October 5, 2016, the Supreme Court
Agung telah mengeluarkan Putusan has issued a Judicial Review Decision
Peninjauan Kembali No. 99 PK/TUN/2016 No. 99 PK/TUN/2016 of dispute on
atas sengketa ijin lingkungan pabrik environmental license of Rembang plant,
Rembang, yang isinya mengabulkan which granted a judicial review request of
permohonan Peninjauan Kembali dari para the plaintiff, annulled previous appeal
Penggugat, membatalkan putusan decision at administrative high court ruling,
sebelumnya pada tingkat banding, made decision in favor of the Plaintiff
mengabulkan gugatan Tata Usaha Negara administrative court and revoke the
dari Penggugat dan membatalkan Izin environment permits of Rembang Cement
Lingkungan Pabrik Rembang. Putusan Factory. Furthermore, the Governor of
tersebut juga mewajibkan Gubernur Jawa Central Java as defendant has an
Tengah sebagai tergutat untuk mencabut obligation to declare void and revoked the
izin lingkungan yang dimiliki Perseroan. Environmental permit owned by the
Company.
Perseroan menerima secara resmi Putusan The Company formally accept the judicial
PK tersebut tanggal 17 November 2016. review verdict (PK) on November 17, 2016.
Atas Putusan PK tersebut Perseroan Upon the PK decision, the Company
melakukan beberapa langkah lanjutan perform some advanced steps includes
diantaranya dengan melakukan improvements of Environmental Impact
penyempurnaan/perbaikan dokumen Assessment (AMDAL) documents to
adendum Analisis mengenai dampak accommodate the Panel of Judges of
lingkungan (AMDAL) yang mengakomodir Juidical Review so the environmental
Pertimbangan Majelis Hakim Putusan PK permit can be issued and the Rembang
sehingga ijin lingkungan dapat diterbitkan plant can be operated.
dan Pabrik Rembang dapat beroperasi.
- 171 -
Annual Report 2016
587
Pada tanggal 16 Januari 2017, Gubernur On January 16, 2017, the Governor of
Jawa Tengah menerbitkan Keputusan Central Java issued a decision No. 660.1/4
Nomor: 660.1/4 Tahun 2017, yang Year 2017 that revoked the Company’s
mencabut Izin Lingkungan Perseroan di Environmental Permit in Rembang, Central
Rembang, Jawa Tengah dan Java, and ordered the Company to make
memerintahkan kepada Perseroan untuk improvements through the Amendment of
melakukan perbaikan melalui Adendum Environmental Impact Assessment
Dokumen Analisis mengenai dampak (AMDAL) (ANDAL and RKL-RPL)
lingkungan (AMDAL) (ANDAL dan RKL- documents which addendum accomodates
RPL) yang telah mengakomodir Putusan the Judicial Review verdict.
PK.
Perseroan telah selesai menyusun The Company has completed the AMDAL
Adendum AMDAL tersebut, dan Addendum, which has been submitted to
disampaikan dalam sidang Komisi Penilai AMDAL Assessor Committee Trial on
AMDAL pada tanggal 2 Pebruari 2017, February 2, 2017, with Feasible
dengan hasil telah memperoleh Recommendation result.
Rekomendasi Layak.
Menindaklanjuti hasil Rekomendasi Layak Following the Feasible Recommendation

dari Sidang Komisi Penilai AMDAL tersebut, result from AMDAL Assessor Committee
saat ini Perseroan masih menunggu Trial, the Company is still waiting for the
penerbitan Izin Lingkungan Baru oleh issuance of the new Environmental Permit
Gubernur Jawa Tengah. Dengan penerbitan by the Governor of Central Java. Through
Izin Lingkungan baru tersebut, maka Pabrik the issuance of the new Environmental
Rembang dapat kembali beroperasi. Permit, Rembang Factory will continue to
operate.
Grup tidak membentuk penyisihan atas The Group has not recognized any liability
tuntutan-tuntutan hukum di atas, karena in relation to the above mentioned lawsuits,
Grup berkeyakinan bahwa hasil akhir dari as the Group believes that the final
tuntutan-tuntutan hukum tersebut tidak akan outcome of the other lawsuits will not have
berdampak signifikan terhadap laporan a significant impact on the Group’s
keuangan konsolidasian Grup. consolidated financial statements.
c. Pada tanggal 2 November 2015, Kepala c. On November 2, 2015, Head of the Land
Kantor Pertanahan Kabupaten Tuban Office of Tuban issued Letter Number:
menerbitkan Surat Nomor: 1787/100-35,23 1787/100-35.23/XI 2015 regarding
/ XI 2015 tentang Penolakan Proses Rejection of Application Process of
Aplikasi Pengukuran dan Pemetaan Plot Measurement and Mapping of Land Plots
Tanah ( "Surat dari Kepala Kantor (the “Letter of the Head of Land Office of
Pertanahan Tuban"). Surat tersebut Tuban”). The Letter declined the
menolak permohonan yang diajukan oleh application submitted by Daru, et.al. for
Daru, et.al. untuk mengukur dan measuring and mapping several land plots,
memetakan beberapa bidang tanah, and subsequently they were submitting
dimana mereka mengajukan tuntutan lawsuit against the Head of Land Office of
kepada Kantor Pertanahan Kabupaten Tuban at Administrative Court of Surabaya
Tuban di Pengadilan Administratif on January 20, 2016. The Company enter
Surabaya pada tanggal 20 Januari 2016. the case as the defendant in Intervention II.
Perseroan terlibat dalam kasus ini sebagai 0n June 29, 2016, the panel of the judges
Tergugat II Intervensi. Pada 29 Juni 2016, of Administrative Court of Surabaya
majelis hakim Pengadilan Administratif rendered their decision upon the case No.
Surabaya memberikan putusan atas kasus 12/G/2016/PTUN.SBY stating that the
ini menyatakan bahwa gugatan yang lawsuit submitted by the Plaintiffs is
diajukan oleh Penggugat tidak dapat inadmissible before the law, because the
diterima di hadapan hukum, karena PTUN administrative court has no authority to
tidak memiliki kewenangan untuk examine the case.
memeriksa kasus ini.

- 172 -


Pada tanggal 28 Juli, 2016, Penggugat On July 28, 2016, the Plaintiffs filed an
mengajukan banding ke Pengadilan Tinggi appeal to the Administrative High Court of
Tata Usaha Surabaya. Pada tanggal 25 Surabaya. On October 25, 2016 the
Oktober 2016 PTUN Surabaya telah Administrative Court of Surabaya has
memberikan keputusan No. 223 / B / 2016 / rendered their decision No. 223 / B / 2016 /
PT.TUN.SBY pada kasus banding yang PT.TUN.SBY on the appeal case which
menegaskan keputusan pengadilan tingkat affirmed the decision of the court of first
pertama. instance.
Pada 14 Desember 2016, Penggugat On December 14, 2016, the Plaintiffs filed
mengajukan banding untuk pemeriksaan an appeal for cassation examination and
kasasi dan menyerahkan Memori Kasasi ke submitted the Memory of Cassation to the
Mahkamah Agung Republik Indonesia Supreme Court of Republic of Indonesia
melalui Pengadilan Administratif Surabaya. through Administrative Court of Surabaya.
Perseroan kemudian menerima Memori The Company later received the
Kasasi pada tanggal 2016 dan kemudian Memorandum of Cassation in December
mengajukan Kontra Memori Kasasi pada 2016 and then submitted a Counter
tanggal 30 Desember 2016. Sampai Memorandum of Cassation on
dengan laporan keuangan konsolidasian ini December 30, 2016. As of the issuance
diterbitkan belum ada putusan terkait date of these consolidated financial
kasasi tersebut. statements, there has been no decision yet
. with regards to the cassation.
d. Dalam gugatan wanprestasi dan ganti rugi d. In a breach of contract of lawsuit and
no 58 pdt. 6/2015/PNGSI tanggal 15 compensation No. 58 pdt. 6/2015 / PNGSI
Oktober 2015 antara WA, sebagai dated October 15, 2015 between WA, as
penggugat yang diwakili oleh Fachruddin plaintiffs represented by Fachruddin Lubis,
Lubis, SH dan Wahyu Ismoyo, SH, SH and Wahyu Ismoyo, SH, filed for breach
mengajukan gugatan wanprestasi dan ganti of contract and damages against Persada
rugi terhadap PT Persada Subur Makmur PT Subur Makmur as the first defendant
sebagai tergugat I dan Antonius Wendy and Antonius Wendy Octavianus as the
Octavianus sebagai tergugat II. second defendant.
Bahwa antara penggugat dan para tergugat The plaintiff and the defendant have made
telah membuat surat perjanjian nomor: agreement number: 0427/WA.01/07.2014
0427/WA.01/07.2014 tertanggal 23 Juli dated July 23, 2014 regarding the making
2014 mengenai pekerjaan pembuatan of Waru Abadi Information Systems
Sistem Informasi Waru Abadi Resource Resource Planning (WARP), where the
Planning (WARP), dimana para tergugat defendant was not able to fulfill the
tidak sanggup melaksanakan isi dari agreement as to the filing date of the
perjanjian tersebut karena sampai lawsuit, the system could not be applied
diajukannya gugatan, sistem tersebut tidak and there had been delay. The defendants
bisa diaplikasikan dan terjadi were not able to submit the results of the
keterlambatan. Para tergugat tidak dapat work as a whole to the claimant until the
menyerahkan hasil pekerjaan secara deadline for the work is substantially
keseluruhan kepada penggugat sampai completed no later than July 31, 2015.
dengan batas waktu pekerjaan tersebut
selesai dikerjakan yakni paling lambat
31 Juli 2015.
Beberapa persidangan pada Pengadilan Several trials at the Gresik District Court,
Negeri Gresik, pada hari kamis, tanggal on Thursday, June 23, 2016 the judges
23 Juni 2016 Majelis Hakim yang mengadili who adjudicate and examine this case
dan memeriksa perkara ini memutus decided to win PT Waru Abadi by granting
perkara dengan memenangkan PT. Waru part of the lawsuit. Based on information
Abadi dengan mengabulkan sebagian from the clerk of the court that the
gugatan. Berdasarkan informasi dari defendant did not accept the result of the
Panitera bahwa para tergugat tidak decision of the panel of judges by filing the
menerima hasil putusan Majelis Hakim appeal.
dengan mengajukan banding.
Annual Report 2016

589
- 173 -
Dalam pengajuan gugatan wanprestasi dan In filing the lawsuit for tort and
ganti rugi register negara compensation of state registers No. 9 /
No.9/Pdt.G/2016/PN.Cms pada Pengadilan Pdt.G / 2016 / PN.Cms in Ciamis District
Negeri Ciamis tertanggal 21 Juni 2016 Court dated June 21, 2016 between PT
antara PT Waru Abadi cabang Tasikmalaya Waru Abadi Tasikmalaya branch as the
sebagai penggugat dan Asep Supriadi plaintiff and Asep Supriadi as the owner,
sebagai pemilik, pengelola sekaligus manager and person in charge of Toko
penanggung jawab Toko Bangunan Azda Bangunan Azda Putra as the first
Putra sebagai tergugat I dan Dede Kadarsih defendant and Dede Kadarsih as owner,
sebagai pemilik, pengelola sekaligus manager and person in charge of Toko
penanggung jawab Toko Bangunan Azda Bangunan Azda Putra as the second
Putra sebagai tergugat II. WA melakukan defendant. WA appealed for confiscation of
permohonan sita persamaan atas 2 (dua) 2 (two) assets in the form of certificates of
aset berupa sertifikat tanah dengan luas land with an area of 1,160 m2 located in
1.160 m2 yang terletak di Blok Sodong, Sodong Block, Bojongmengger Village,
Desa Bojongmengger, Kecamatan District Cijeungjing, Ciamis Regency, West
Cijeungjing, Kabupaten Ciamis, Propinsi Java Province and land with an area of
Jawa Barat dan tanah dengan luas 714 m2 714m2, located in Sento Block,
yang terletak di Blok Sento, Desa Bojongmengger Village, Sub-district
Bojongmengger, Kecamatan Cijeungjing, Cijeungjing, Ciamis Regency, West Java
Kabupaten Ciamis, Propinsi Jawa Barat Province.
e. Pada tanggal 24 Juni 2013, Elite Sky e. On June 24, 2013, Elite Sky Transportation
Transporatation, Ltd. menunjuk Karmeihan Ltd. filed a civil suit against VULS in the
Sabaroedin, SH., sebagai kuasa hukum Serang District Court and demanded a
untuk mendaftarkan gugatan perdata compensation for VU 1/BG Lintas 1
melawan VULS di Pengadilan Negeri shipwreck.
Serang dan meminta ganti rugi atas
kecelakaan Kapal VU 1/ BG Lintas 1.
Setelah menjalani proses sidang, pada On October 8, 2013, the panel of judges
tanggal 8 Oktober 2013 putusan sela has handed down their verdict, with verdict
dijatuhkan oleh Majelis Hakim Perkara No.41/PDT.G/2013/PN.SRG which
Perdata No. 41/PDT.G/2013/PN.SRG yaitu declared to overule Elite Sky
pada intinya menolak gugatan kuasa hukum Transportation Ltd. lawsuit, Elite Sky
Elite Sky Transportation, Ltd. Atas putusan Transportation Ltd. has filed an appeal
tersebut, pihak kuasa hukum Elite Sky againts the verdict made by Serang district
Transportation, Ltd. mengajukan banding. court.
Setelah menjalani proses sidang, pada On October 8, 2013, the panel of judges
tanggal 8 Oktober 2013 putusan sela has handed down their verdict, with
dijatuhkan oleh Majelis Hakim Perkara verdict No.41/PDT.G/2013/PN.SRG
Perdata No. 41/PDT.G/2013/PN.SRG yaitu which declared to overuled Elite Sky
pada intinya menolak gugatan kuasa Transportation Ltd. lawsuit, Elite Sky
hukum Elite Sky Transportation, Ltd. Atas Transportation Ltd. has filed an appeal
putusan tersebut, pihak kuasa hukum Elite againts the verdict made by Serang
Sky Transportation, Ltd. mengajukan district court.
banding.
Pada tanggal 6 November 2013, VULS On November 6, 2013, VULS received

menerima pemberitahuan pernyataan notice of appeal from Elite Sky
banding kuasa hukum Elite Sky Transportation Ltd. attorney at law, on
Transportation, Ltd. dan atas hal tersebut that behalf, VULS on January 2, 2014
pada tanggal 2 Januari 2014 kuasa hukum has filed a counter memory appeal at the
VULS telah mendaftarkan kontra memori Serang District Court for submission to
banding di Pengadilan Negeri Serang Banten High Court.
untuk diserahkan kepada Pengadilan
Tinggi Banten.



Pada tanggal 20 Pebruari 2014, VULS On February 20, 2014, VULS received
menerima pemberitahuan pernyataan notice of appeal from Elite Sky
banding kuasa hukum Elite Sky Transportation Ltd. lawyer, and on that
Transportation, Ltd. dan atas hal tersebut behalf on April 15, 2014 VULS has filed a
pada tanggal 15 April 2014 VULS counter cassation on Banten High Court.
mendaftarkan kontra memori kasasi di
Pengadilan Tinggi Banten.
Sesuai dengan surat keputusan In accordance with the decree No.1874 /

No.1874/K/Pdt/2014 tanggal 4 Pebruari K / Pdt / 2014 dated February 4, 2015,
2015, Mahkamah Agung memutuskan the Supreme Court decided to reject the
untuk menolak pernyataan kasasi dari Elite appeal statement of Elite Sky
Sky Transportation, Ltd atas keputusan Transportation, Ltd. on an earlier
sebelumnya yang menolak gugatan Elite decision rejecting the lawsuit Elite Sky
Sky Transportation, Ltd. Transportation, Ltd.
Pada tanggal 8 Juli 2011, VULS On July 8, 2011, VULS registered a

mendaftarkan gugatan wanprestasi atas lawsuit to PT Vinici Inti Line‘s accounts
piutang usaha dari PT Vinici Inti Line receivable branch Samarinda with the
Cabang Samarinda dengan nomor perkara letter No.25/pdt.G/2011/PN.Gs. On
25/pdt.G/2011/PN.Gs. Pada tanggal 17 January 17, 2012, VULS cancelled the
Januari 2012 VULS mencabut gugatan lawsuit based on the letters of solicitation
berdasarkan surat permohonan Nomor. No.001/VULS-HK/01/2012 because PT
001/VULS-HK/01/2012 karena PT Vinici Vinici Inti Line promised to complete the
Inti Line telah berjanji untuk menyelesaikan remaining receivables on the Debt
sisa piutang dan dibuatkan Surat Agreement Letter signed on January 6,
Perjanjian Utang yang ditandatangani 2012.
pada tanggal 6 Januari 2012.
Namun, PT Vinici Inti Line melakukan However, PT Vinici Inti Line was not able
wanpretasi karena tidak melakukan to fulfill the agreement by an unsettled
pelunasan seluruhnya atas saldo piutang receivable, leaving the recivable balance
usaha, dimana masih terdapat sisa amounting to Rp352,111 and has no
kewajiban yang belum terbayar sebesar good faith to settled so VULS resue with
Rp352.111 dan tidak ada itikad baik untuk the additional fees, interest, and loss also
melunasinya sehingga do the sequestration in the form of land
VULS kembali menggugat dengan and buildings located in Samarinda.
ditambah biaya-biaya, bunga dan kerugian
serta melakukan sita jaminan berupa tanah
dan bangunan yang terletak di Samarinda.
Pada tanggal 19 November 2014, On November 19, 2014, Gresik District

Pengadilan Negeri Gresik menyatakan Court stated that VULS's lawsuit is
bahwa gugatan VULS dapat diterima dan accepted and granted entirely and punish
dikabulkan seluruhnya dan menghukum PT Vinici Inti Line to fulfill its obligations
PT Vinici Inti Line untuk memenuhi to VULS and also pay interest and forced
kewajibannya kepada VULS serta money and legally sequestration. The
membayar bunga dan uang paksa serta decision stated in the decision Letter
menyatakan sah atas sita jaminan. No. 30/Pdt. G/2014/PN.Gsk.
Keputusan tersebut tertuang dalam
Putusan Nomor. 30/Pdt.G/2014/PN.Gsk.
Keputusan ini diperkuat oleh surat This decision is reinforced by a letter from
keterangan dari Pengadilan Negeri Gresik the District Court Gresik
No.1/Inkracht.Pdt/4/2015/PN Gsk tanggal No. 1/Inkracht.Pdt/4/2015/PN.Gsk on
13 April 2015 yang menyatakan bahwa April 13, 2015 stated that the Case
Putusan Perkara No.30/Pdt.G/2014/PN.Gs Decision No.30/Pdt.G/2014/PN.Gs have
telah memiliki kekuatan hukum tetap legal force fixed (inkracht) because there
(inkracht) karena tidak terdapat proses is no appeal process of the PT Vinici Inti
banding dari pihak PT Vinici Inti Line. Line.
Annual Report 2016

591
4) Berdasarkan Keputusan No.1488/QD-TTg yang 4) According to Decision No.1488/QD-TTg

dikeluarkan oleh Perdana Menteri Vietnam pada issued by the Prime Minister of Vietnam dated
tanggal 29 Agustus 2011 yang meratifikasi atas on August 29, 2011 ratifying the cement
rencana pengembangan industri semen di industry development plan in Vietnam for the
Vietnam untuk periode 2011 - 2020 dengan visi period 2011 - 2020 with vision to 2030, the
sampai 2030, proyek pabrik semen TLCC2 telah cement plant project of TLCC2 was included in
termasuk dalam daftar proyek yang disetujui. the approved list of projects. However,
Namun, berdasarkan Keputusan No. 1588/QD- according to Decision No. 1588/QD-UBND
UBND yang dikeluarkan oleh Komite Rakyat issued by People’s Committee of Quang Ninh
Provinsi Quang Ninh pada tanggal 28 Juli 2014 Province dated on July 28, 2014 for approval
untuk persetujuan rencana konstruksi regional of regional construction plan of Quang Ninh
Provinsi Quang Ninh untuk visi 2030 hingga 2050 Province to 2030 vision toward 2050 and
dan setelah 2050, lokasi proyek pabrik semen beyond 2050, the site of TLCC2 cement plant
TLCC2 kemungkinan akan direlokasi ke area project may be re-allocated to another area. As
lain. Sampai dengan tanggal penerbitan laporan of the issuance date of the consolidated
keuangan konsolidasian, TLCC2 telah financial statements, TLCC2 had sent a
mengirimkan dokumen kepada otoritas terkait document to relevant authorities requesting for
untuk memohon perijinan melanjutkan proyek permission to continue the project construction
konstruksi namun hingga saat ini belum but not yet received any feedback. The
mendapatkan tanggapan. Manajemen yakin management believes that the Company’s
bahwa pabrik semen TLCC2 tidak akan cement plant would not be subject to
direlokasi sesuai dengan Keputusan reallocation as per Decision No.1488/QD-TTg.
No.1488/QD-TTg.
50. TRANSAKSI NONKAS 50. NON-CASH TRANSACTIONS
Transaksi investasi dan pendanaan nonkas Grup Non-cash investing and financing transactions of the
adalah sebagai berikut: Group are as follow:
2016 2015
Perolehan aset tetap melalui Acquisition of fixed assets
sew a pembiayaan 517.716.745 83.917.837 through finance lease
Reklasifikasi uang muka dan hutang Reclassification of advances and payables
pembangunan pabrik baru 414.297.041 653.796.641 for construction of new plant
Setoran modal pemegang saham Capital infusion of minority
minoritas dalam bentuk tanah 280.510.000 - shareholder in the for of land
Biaya pinjaman dikapitalisasi Unpaid borrow ing costs
yang belum dibayar 104.820.280 3.289.386 capitalized
Kapitalisasi estimasi biaya Capitalization of the estimated
pembongkaran aset tetap 5.538.858 3.812.720 cost of dismantling of fixed assets
51. PERISTIWA SETELAH PERIODE LAPORAN 51. EVENTS AFTER THE REPORTING PERIOD
1. Pada tanggal 16 Desember 2016, Perseroan 1. On December 16, 2016, the Company and its
dan entitas anak, SG menandatangani subsidiary, SG signed a Joint Operation
Perjanjian Kerjasama Operasi (“KSO”) dalam Agreement ( "KSO") in the context of joint
rangka operasi bersama pabrik semen beserta operations on the cement plant and cement
fasilitas pendukung persemenan. Perjanjian ini production supporting facilities. The effective
efektif berlaku sejak tanggal 1 Januari 2017, date of this agreement is January 1, 2017, with
dengan tujuan terbatas untuk melaksanakan the limited purpose of conducting joint
kegiatan operasional bersama atas pabrik operations on cement plants as well as
semen serta pemasaran dan penjualan produk marketing and sales of products under the KSO
berdasarkan Perjanjian KSO. Berdasarkan Agreement. Under the agreement, KSO Object
perjanjian, Objek KSO meliputi didalamnya include therein cement factory machinery and
mesin pabrik semen beserta fasilitas its supporting facilities, finished goods and work
pendukungnya, persediaan barang jadi dan in progress inventories, transportation
barang dalam proses, peralatan transportasi equipment and other items used for operational
dan lain sebagainya yang digunakan dalam sustainability of KSO.
kelangsungan operasional KSO.
- 176 -


2. Sesuai Keputusan Para Pemegang Saham 2. Based on Decision of Shareholder outside

Diluar Rapat Umum Pemegang Saham tanggal General Meeting of Shareholders dated on
19 Desember 2016 (Catatan 1b), Perseroan December 19, 2016 (Note 1b), the Company
melakukan penambahan modal pada SIA pada increased the issued capital in SIA on
tanggal 23 Desember 2016 dengan akta notaris December 23, 2016 with notarial deed No. 29
tanggal 16 Januari 2017, No. 29, notaris Ny. dated January 16, 2017, notary Ny. Leolin
Leolin Jayayanti, S.H., Akta tersebut telah Jayayanti, S.H.. The Deed has been notified to
diterima pemberitahuannya oleh Menteri and acknowledged by Minister of Law and
Hukum dan Hak Asasi Manusia Republik Human Rights of the Republic of Indonesia on
Indonesia pada tanggal 31 Januari 2017. January 31, 2017.
52. TANGGUNG JAWAB MANAJEMEN DAN 52. MANAGEMENT RESPONSIBILITY AND

PERSETUJUAN ATAS LAPORAN KEUANGAN APPROVAL OF CONSOLIDATED FINANCIAL
KONSOLIDASIAN STATEMENTS
Penyusunan dan penyajian wajar laporan keuangan The preparation and fair presentation of the
konsolidasian dari halaman 1 sampai 178 consolidated financial statements on pages 1 to
merupakan tanggung jawab manajemen, dan telah 178 were the responsibilities of the management,
disetujui oleh Direktur untuk diterbitkan pada tanggal and were approved by the Directors and authorized
17 Pebruari 2017. for issue on February 17, 2017.
********
- 177 -
Annual Report 2016
593
ENTITAS INDUK SAJA PARENT COMPANY ONLY
INFORMASI TAMBAHAN SUPPLEMENTARY INFORMATION
DAFTAR I: INFORMASI INVESTASI DALAM ENTITAS ANAK SCHEDULE I: INFORMATION ON INVESTMENT IN SUBSIDIARIES
31 DESEMBER 2016 DAN 2015 DECEMBER 31, 2016 AND 2015
Dimulainya
kegiatan
Jenis usaha/ Persentase kepemilikan/ komersial/ Jumlah aset sebelum eliminasi/
Entitas anak/ Domisili/ Nature of Percentage of ownership Start of commercial Total assets before eliminations
Subsidiaries Domicile business 2016 2015 activities 2016 2015
PT Semen Padang (“SP”) Indarung, Produsen semen/ 99,99% 99,99% 1913 9.210.952.435 7.393.030.784
dan entitas anak/ Sumatera Barat/ Cement manufacturing
and its subsidiaries West Sumatera
PT Sepatim Batamtama Batam, Pengantongan semen 97,00% 97,00% 1994 33.050.558 29.396.686
(“SB”) 97% saham Kepulauan Riau dan distribusi/Cement
owned by SP
PT Bima Sepaja Abadi Tanjung Priok, Pengantongan semen 80,00% 80,00% 1996 163.322.799 182.661.386
(”BSA”) 80% saham Jakarta dan distribusi/Cement
owned by SP
PT Semen Tonasa (“ST”) Pangkep, Produsen semen/ 99,99% 99,99% 1968 8.730.454.358 8.367.129.199
Sulawesi Selatan/ Cement manufacturing
South Sulawesi
PT Semen Gresik (“SG”) Gresik, Produksi semen/ 99,96% 99,96% - 4.814.349.323 3.175.043.752
Jawa Timur/ Cement manufacturing
East Java
PT United Tractors Semen Tuban, Penambangan 55,00% 55,00% 1992 380.306.292 324.265.574
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 273.525.109 236.139.375
Semen Gresik (“IKSG”) Jawa Timur/ Cement bag manufacturing
East Java
PT Kawasan Industri Gresik, Pengembangan kawasan 65,00% 65,00% 1991 341.708.176 345.076.082
Gresik (“KIG”) Jawa Timur/ industri/Industrial real
East Java estate
PT SGG Energi Prima (”SEP”) Gresik, Pertambangan, perdagangan 97,00% 97,00% 2012 93.906.025 39.186.122
Jawa Timur/ dan pengangkutan Batubara/
East Java Mining, trade and coal
transportations
PT Semen Indonesia Beton ("SIB")

dan entitas anak/and its subsidiary Gresik, Produksi beton siap pakai/ 99,99% 99,99% 2012 1.421.925.523 554.984.487
dahulu bernama/previously named Jawa Timur/ Production ready mix concrete
PT SGG Prima Beton ("SPB") East Java
PT Varia Usaha Beton ("VUB") Sidoarjo, Produksi beton siap pakai/ 63,15% - 1991 594.612.752 -
50,90% saham dimiliki SIB dan Jawa Timur/ Ready mix concreate production
49,10% saham dimiliki VU East Java
50,90% shares owned by SIB and
49,10% shares owned by VU
PT Krakatau Semen Cilegon, Produksi bahan baku semen/ 50,00% 50,00% 2014 242.366.162 95.063.941
Indonesia ("KSI") Jawa Barat/ Cement material manufacturing
West Java
PT Sinergi Informatika Jakarta Selatan, Sistem Informasi/ 100,00% 100,00% 2014 89.673.220 48.773.225
Semen Indonesia ("SISI") DKI Jakarta Information system
Thang Long Cement Joint Hanoi, Produksi semen/ 70,00% 70,00% 2008 2.951.778.700 3.182.910.109
Stock Company (”TLCC”) Vietnam Cement manufacturing
dan entitas anak/and its subsidiaries
Thang Long Cement Joint Hanoi, Produksi semen/ 69,57% 69,57% - 39.852.420 39.022.404
Stock Company 2 Vietnam Cement manufacturing
(”TLCC2”) 99,39% saham
dimiliki TLCC/99.39% shares
owned by TLCC
An Phu Cement Joint Hanoi, Produksi semen/ 69,93% 69,93% - 55.900.217 59.867.825
Stock Company (”APCC”) Vietnam Cement manufacturing
99,90% saham
dimiliki TLCC/99.90% shares
owned by TLCC
PT Semen Indonesia Aceh Produksi semen/ 38,28% - - 466.951.438 -

Aceh ("SIA") Cement manufacturing
PT Semen Indonesia Jakarta Selatan, Investasi/Investment 100,00% - - 6.472.445 -

International ("SII") DKI Jakarta
PT Semen Kupang Kupang Produksi semen/ 99,48% - - - -

Indonesia ("SKI") NTT Cement manufacturing
PT Varia Usaha ("VU") Gresik, Perdagangan, transportasi, jasa 73,65% - 1974 1.753.895.831 -
dan entitas anak/ Jawa Timur/ bongkar muat dan konstruksi/
and its subsidiaries East Java Trade, transportation,
and construction
PT Waru Abadi ("WA") Gresik, Perdagangan/Trading 73,61% - 1989 270.622.006 -

99.50% saham dimiliki VU/ Jawa Timur/
99,50% shares owned by VU East Java
PT Varia Usaha Bahari ("VUBA") Gresik, Jasa Bongkar Muat/ 73,65% - 1992 64.530.843 -
100% saham dimiliki VU Jawa Timur/ Stevedoring Services
PT Varia Usaha Dharma Segara ("VUDS") Gresik, Jasa Pengurusan Transportasi/ 73,65% - 1995 43.594.380 -
100% saham dimiliki VU Jawa Timur/ Freight Forwarding
PT Varia Usaha Lintas Segara ("VULS") Gresik, Jasa Transportasi Laut/ 73,65% - 1997 54.080.857 -
100% saham dimiliki VU Jawa Timur/ Sea Freight

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Annual Report 2016

595
STATEMENT
LETTER
BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS’
STATEMENT
ON THE RESPONSIBILITY FOR THE 2016 ANNUAL REPORT OF PT SEMEN INDONESIA
(PERSERO) TBK.
BOARD OF COMMISSIONERS
MAHENDRA SIREGAR
DJAMARI CHANIAGO MUCHAMMAD ZAIDUN HAMBRA

Independent Commissioner Independent Commissioner Commissioner
WAHYU HIDAYAT MARWANTO HARJOWIRYONO SONY SUBRATA

Commissioner Commissioner Commissioner


We, the undersigned, hereby declare that all information contained in the 2016 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 2016 and 2015.
Gresik, 9 – March 2015
BOARD OF DIRECTORS
RIZKAN CHANDRA
President Director
DARMAWAN JUNAIDI AUNUR ROSYIDI JOHAN SAMUDRA

Director Director Director
GATOT KUSTYADJI AHYANIZZAMAN BUDI SISWOYO

Director Director Director
Annual Report 2016

597
Head Office
Semen Indonesia Main Building
Jl. Veteran Gresik 61122
East Java, Indonesia
P. + 62-31-398-1732
F. + 62-31-398-3209
E. info@semenindonesia.com
Jakarta Office
The East Tower 18th Fl.
Jl. DR Ide Anak Agung Gde Agung
Kav.E.3.2 No.1 Jakarta-12950
P. + 62-21-5261174-5
F. + 62-21-5261176

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Annual

We have anticipated this condition and have taken measures to respond to

Semen Indonesia’s special port in Tuban, East Java

2014 Assuring The Move

2 PT Semen Indonesia (Persero) Tbk.

We are ready to embrace this new environment and we have prepared a

To Semen Indonesia, 2015 is the year to

Annual Report 2016

We have also stepped up the intensity of our

• Total sales volume

65 3.5% 62,0 -0.6%

Kelok Sembilan in Payakumbuh city, West Sumatra,

BUSINESS OPERATIONAL CORPORATE GOVERNANCE CORPORATE SOCIAL CONSOLIDATED FINANCIAL

IMPROVING COMPETITIVE ADVANTAGE AND

We implement production cost control program, The results:

COST TO REVENUE RATIO OPERATING COST TO OPERATING COST TO EBITDA

2014 2015 2016 2014 2015 2016 2014 2015 2016

2014 2015 2016

Annual Report 2016

As part of our business development strategy, we con-

Following the completion of two new integrated cement

We are also intensifying the development of non-cement

Non-cement revenue contribution

2014 2015 2016

8 PT Semen Indonesia (Persero) Tbk.

BUSINESS OPERATIONAL CORPORATE GOVERNANCE CORPORATE SOCIAL CONSOLIDATED FINANCIAL

Grinding Plant Cigading, West Java,

In addition, we are actively involved in activities to restore

• We hae met all environmental quality standard requirements

Today, we have worked with 35,321

12 PT Semen Indonesia (Persero) Tbk.

BUSINESS OPERATIONAL CORPORATE GOVERNANCE CORPORATE SOCIAL CONSOLIDATED FINANCIAL

Coaching and mentoring activities to the Mentoring Partners

Annual Report 2016

14 PT Semen Indonesia (Persero) Tbk.

143 Production & R&D 287 GCG Implementation

236 Human Resources

Annual Report 2016

Semen Indonesia Plant in Tuban, East Java

Highlights of Consolidated Profit and Loss Statements

18 PT Semen Indonesia (Persero) Tbk.

BUSINESS OPERATIONAL CORPORATE GOVERNANCE CORPORATE SOCIAL CONSOLIDATED FINANCIAL

Annual Report 2016

31.8 31.8 31.8 capacity 2016 88.9

31.8 million tons/

2014 2015 2016 2014 2015 2016

PRODUCTION LEVEL SALES VOLUME

28.3 28.5 28.3 Sales 28.5 28.7 29.1

2014 2015 2016 2014 2015 2016

26,987 26,948 26,134

2014 2015 2016

20 PT Semen Indonesia (Persero) Tbk.

BUSINESS OPERATIONAL CORPORATE GOVERNANCE CORPORATE SOCIAL CONSOLIDATED FINANCIAL

EBITDA NET PROFIT

2014 2015 2016

RETURN ON ASSETS / RETURN ON EQUITY/

2014 2015 2016 2014 2015 2016

EBITDA MARGIN RATIO

2014 2015 2016

Annual Report 2016

List of Shareholders – December 2016

List Shareholders of non-Government – 2016

0.06% Foreign Individual