By: Andriansyah Anggara *
When discussing President Jokowi’s achievements there is certainly no end. Achievement of performance and a myriad of achievements from President Jokowi have been widely recognized by the Indonesian people and even internationally. One of President Jokowi’s latest achievements is through PT Semen Indonesia (SMGR) stating that he has acquired 80.6% of Lafarge Holcim’s shares in PT Holcim Indonesia (SMCB) with a value of US $ 917 million or Rp. 13.47 trillion.
Cement from Switzerland is one of the largest cement companies in the world, established in 1912 Holcim has become a global company spread across 5 continents and more than 70 countries.
PT Holcim Indonesia is the third largest cement company in Indonesia with 4 factories with a total capacity of 14.8 million tons per year and 30 ready-mix facilities. By acquiring Holcim, Semen Indonesia is optimistic that it can expand its network in the domestic market, diversify its product types, and improve the efficiency of distribution costs and raw materials. The total capacity of PT Semen Indonesia is 53 million tons of cement. The details are PT Semen Indonesia: 38.2 million tons and Holcim: 14.8 million tons. This figure can further make Indonesia self-sufficient in cement and can increase exports.
Holcim Indonesia also has fuel technology from waste that can be synergized widely throughout the Semen Indonesia Group facility. In addition, the cement industry in Indonesia also still has a promising growth rate, supported by Jokowi’s government and private investment programs such as the One Million Houses Program, infrastructure, and various property projects.
The government is not without resistance, Taiheiyo Cement (Japan), Heidelberg Cement (Germany), and Hongshi Cement (China) are actually also competing to get Holcim’s majority cement stake, even this Chinese company offers higher prices than Indonesian cement. But thanks to the trust of foreign investors to the government, Holcim believes more in selling the majority of its shares to the Indonesian government. Of course this is not instant. Investors have subjectively assessed the good performance shown by Jokowi, which made the Indonesian economy progress so rapidly that investors strongly trusted the government.
The government’s focus on infrastructure development has caused cement demand in Indonesia to increase. Seeing this opportunity, the Government through PT Semen Indonesia certainly does not remain silent, in order to increasingly control the domestic market of around 70 million tons, the acquisition of PT Holcim is considered very appropriate. In addition to meeting domestic needs, later PT Semen Indonesia will export and control several countries in Southeast Asia so as to increase state revenues.
Another benefit of the acquisition is that PT Semen Indonesia will be stronger in the supply chain, production, and marketing in Indonesia and Southeast Asia so that it can easily dominate the Southeast Asian market even to the Asian level. Opportunities for downstream diversification are also increasingly strong with the development of ready-mix concrete businesses.
The success of Jokowi’s government in seizing foreign cement companies increasingly emphasizes that he really works for the people and really thinks about the progress of this nation. Slowly through his political strategy, Jokowi began to reclaim the wealth of the Indonesian nation controlled by foreigners, including those that had been captured by the Indonesian people, PT Freeport Indonesia, the Mahakam Block, and finally PT Holcim Indonesia, as well as many other Jokowi work programs. felt by all Indonesian people. Indonesia is in desperate need of leaders who truly work for the nation and really think about where the direction of the Indonesian people is to progress. Therefore, we should have to appreciate the performance achievements of Jokowi seeing the glorious achievements that have been achieved instead of blasphemy by saying he is a foreign stooge.
* Student of the Faculty of Economic, University of Dharma Agung