Semen Indonesia looks to diversify business portfolio

Semen Indonesia is exploring potential in non-cement related industries as it looks to diversify its business portfolio, with the property business first on its list.

Company finance director Ahyanizzam told reports on Thursday that the firm is looking to invest IDR200bn (US$17.1m) to establish a subsidiary focussed on the property business.  Its first project will be to develop a 200ha plot of land in Gresik, East Java, into a township, the Jakarta Post reported.

State-run construction firm Wijaya Karya (Wika), which also runs a property business, is among the companies that Semen Indonesia is considering forming a joint venture with, Semen Indonesia president director Dwi Soetjipto said. The two companies inked a memorandum of understanding (MoU) on 19 August to begin a partnership in the energy, realty and property sectors.

Beyond the property sector, Semen Indonesia is looking to establish three new subsidiaries focussing on infrastructure, trading and logistics. It has reportedly set aside a total of IDR500bn for the establishment of non-cement related subsidiaries.