On Friday, July 24th, 2009 at the state office of state ministry for state enterprises, PT PLN (Persero) and PT Semen Gresik (Persero) Tbk. (‘Semen Gresik Group/SGG’) jointly signed a Memorandum of Understanding on power supply for the plants at Semen Gresik, at Semen Padang and at Semen Tonasa. The above MoU was jointly signed by President Director of PT PLN (Persero), Fahmi Mochtar, President Director of PT Semen Gresik (persero) Tbk, Dwi Soetjipto, President Director of PT Semen Padang, Endang Irzal and President Director of PT Semen Tonasa, H.M Sattar Taba and it was witnessed by State Minister for State Enterprises, Sofyan A. Djalil.
The signed Memorandum of Understanding indicates a synergy and strategic cooperation among big state-owned enterprises in an effort to supply electric power for the plants of Semen Gresik Group. Some other strategic cooperation is also developed for other related fields to provide a mutual benefit to both concerned parties, such as integrated electric system services for Semen Gresik Group.
PLN operating its business in power supply and electrical power services is prepared to provide certain levels of services with its service level agreement/guarantee for the electric power distributed to the cement plants/facilities of Semen Gresik Group. The above Service Level Agreement (SLA) includes the agreed schedule for the power connection, availability and reliability. PLN, if necessary, is prepared to station its person in charge (PIC) twenty-four hour at the plant location.
The electric power will be used to operate both the existing plants and others which are still under construction. As we know that electrical power has always been a vital component in cement industry. For Semen Gresik alone, the electrical power for its production cost reaches about 18%.
Currently, Semen Gresik is constructing 2 new plants; one is in Java and the other is in South Sulawesi with combined capacity of 2.5 million ton cement per year. The company is also constructing two units of power plants with 3.5MW capacity of each in Tonasa, South Sulawesi. The company’s electric power requirement is predicted to increase up to 365 MW in 2012 when the new plant commercially commences its operation.
According to President Director of PT Semen Gresik (Persero) Tbk., Dwi Sotjipto, the signing of the above Memorandum of Understanding is considered to be a real effort implemented by PLN and SGG to build an inter-state company synergy. “The above-described synergy will certainly result in positive impacts as well as efficient and effective strategic steps to strengthen state-owned enterprises as the main pillars of national economy, since state enterprises are implementing a very vital mission related to the lives of Indonesian people,” he explained.
The signing of the Memorandum of Understanding is also aimed at improving the company’s performance as well as keep its efficiency. “State enterprises operate in all economic sectors in Indonesia, and some of them are playing dominant roles so that we must improve the roles for the prosperity of Indonesian people,” Dwi added.
This strategic cooperation is believed to benefit both the concerned parties and the societies.
The benefit to Semen Gresik includes:
• SGG can give the best focus on its core business; cement production to support the national development, since its power requirement is supplied by PLN. And PLN will fully support Semen Gresik’s plan to construct its new plants.
• SGG will no more need to invest its money in electric power requirement for its business expansion.
• SGG can avoid the risk of operating its own power generating plant.
The benefit to PLN includes:
• PLN can implement its business-to-business concept (B to B)
• PLN can improve its professionalism to serve customers
• PLN will achieve more revenue.
This cooperation will also improve economic scales in the regions. The signed Memorandum of Understanding will proceed to a cooperation agreement between PLN and SGG.