Jakarta, January 6, 2023 - PT Semen Indonesia (Persero) Tbk (SIG) and the Education Fund Management Institution (LPDP) of the Indonesian Ministry of Finance have signed a Memorandum of Understanding (MoU) for research funding collaboration to support research and development activities for spare parts in SIG-owned factories. The MoU signing was executed by SIG's CEO, Donny Arsal, and LPDP's CEO, Andin Hadiyanto, in Jakarta on Friday (1/6).
This collaboration reflects SIG's commitment to enhance the achievement of Domestic Component Level (TKDN) in its operational factory components. As a user, SIG will provide spare parts used in the SIG Factory to Domestic Industries as manufacturers. Subsequently, a joint effort (SIG, Domestic Industries, and the Research Team) will conduct research and development on spare parts that meet SIG's operational needs, aiming to produce and supply them by Domestic Industries, including Small and Medium Enterprises (SMEs).
SIG's CEO, Donny Arsal, stated that in 2022, the TKDN spare part utilization at SIG reached Rp547 billion, a 43% increase from the previous period of Rp382 billion. Moreover, this achievement surpassed the set target for 2022 of Rp479 billion.
"The improvement in TKDN utilization through empowering Domestic Industries is a strategic initiative under SIG's 'Promoting Sustainable Solutions and Innovations' pillar outlined in SIG's 2020-2030 sustainability roadmap. Hence, various aggressive efforts are necessary, including collaboration with LPDP to conduct spare part development research with Domestic Industries and SMEs, where SIG plays the role of the off-taker," stated Donny Arsal.
Collaborating with LPDP is an affirmative action and support for SIG to further strengthen and drive the use of domestic products within the Company. This collaboration also oversees the government's policy implementation, where Industries will only grow and thrive if their products are used, contributing to both achieving economies of scale and product quality improvement.
"As a State-Owned Enterprise, SIG consistently supports the Government's program and policies in Increasing Domestic Product Utilization (P3DN) and the National Movement for Pride in Indonesian Products (Gernas BBI) to boost the national economy by offering opportunities for Domestic Major Industries and SMEs to participate in SIG's supply chain," said Donny Arsal.
Meanwhile, LPDP's CEO, Andin Hadiyanto, commended SIG's enthusiasm in expediting the increase in domestic product utilization. LPDP welcomes the synergy and collaboration with SIG in research funding as an effort to foster innovation in manufacturing technology.
"The synergy between LPDP and industries like this aligns with President Joko Widodo's directive to support Indonesia's economic progress in 2023, as conveyed in the Full Cabinet Meeting on December 6, 2022, emphasizing the importance of collaboration between ministries and institutions, particularly in consolidating data and policy implementation, avoiding being trapped in sectoral egos," added Andin Hadiyanto.
Additionally, SIG is currently conducting joint research with several domestic industries, including the development of alumina brick refractories with PT Loka Refractories (a regional government-owned BUMD in East Java), belt bucket elevator development with PT Karet Ngagel Surabaya (a regional government-owned BUMD in East Java), high chromium grinding ball development with PT Barata Indonesia (Persero), low chromium grinding ball development with the University of Education Indonesia, roller mill lubrication oil testing with PT Pertamina Lubricants, and pressure gauge development with SME PT 3S International.
SIG's commitment to increasing domestic components is demonstrated by receiving the Indonesia Love Award (ACI) 2022 for the manufacturing industry sector from Republika in October 2022. The ACI is an appreciation event for SOEs demonstrating commitment to meeting the Domestic Component Level (TKDN).
