Capability to Maintain Growth

Assuring the Move Into Next Level 55 Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements To enhance efficacy, on every period efforts to expand the number of goods and services category was implemented. Up to the end of 2014, a total of 12 products were included in the procurement synergy program, which are coals, kraft papers, gypsums, copper slags, fuels, lubricants, castables, fire bricks, grinding balls, castings, belt conveyors, and bearings. The impact of this synergy procurement program can be seen from the decrease in efficiency of inventory values, specifically the strategic goods that reach 40 from previous inventory value. The efficiency program will be enhanced by adding the strategic goods or services. Other efficacy achievements in 2014 also supported by the materials subtitutions program, such as to replace iron ore with copper slags, and to change the granular gypsum with purified gypsum, the results was a 37 cost reduction on copper slags, and 23 on gypsum purified. To increase and optimize services in Goods and Services Procurement, and to fulfill Indonesian Government program of proper implementation of Good Corporate Governance principles by the SOEs, PT Semen Indonesia Persero Tbk highly supported the program, and implementing e-Procurement in the goods and services procurement process. E-Procurement is an electronic-based information technology of goods and services processes, which begins with vendor registration process, pra tender, proposals, negotiations up to the winner appointments. The advantage of e-Procurement implementation is to increase transparency and accountability, bargaining power, procurement fast process, as well as real time information access. PROSPECTS AND BUSINESS STRATEGY IN 2015 Venturing into year 2015, the economic recovery is underway, though imbalance. The United States has shown a recovery, while other major countries, such as China, Japan, Germany and the UK are still not recovered to pre-crisis levels. This caused other challenges, the strengthening of US dollar exchange rate against almost all currencies in the world, including Indonesia. As such, the economists believe that the global economic began to improve. The weakening of world oil price during 2014 brought about the recovery economic momentum in 2015, and is believed will be improving in the future years. Business Development Report