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Assuring the Move Into Next Level 54 Business Development Report Management Reports Company Information Information For Investors Operational Review Increasing Competitive Advantage To increase the competitive advantage, the Company implements the following programs; corporate restructuring, subsidiary restructuring, HR competency development, and refinement of Information and Communication Technology within the group. Investment Management In conducting the capacity and business development, the Company implements the well planned investment strategy, in order to achieve optimum and sustainable results. SYNERGY PROGRAMS The Company implements sysnergy to utilize the geographical excellence of its production facility that located in three main growth areas in Indonesia, thus to accord wider range. The synergy covers several fields, including engineering, procurements, productions, marketing, distribution and finance, all are enabled to reduce the Company’s operational costs, so as to increase market competition. Aligned with the transformation of the Company to become the Strategic Holding Company, the Company thus will intensively realize its synergy programs. This is in accordance with the Company’s goals, namely to pursue an active role as the Strategic Holding Company that able to synergize the potentials of its subsidiaries, or Operating Companies, both engaged in cement or non-cement sectors, to become an integrated unit that are able to deliver optimum performance to the group. The Company believes that the implementation of various synergy programs will become more effective, thereby will deliver significant consolidated performances and optimum results for all the stakeholders. Strategic Goods Procurement Synergy In line with the corporate transformation to become the Strategic Holding, the Synergy Programs in the procurement is coordinated under the Strategic Procurement Department. The main duties include coordination of goods and services procurement, which was served in the strategic category to support the Company’ operations, so as to generate the best goods and services with maintained quality and process as well as efficient prices. Tinjauan Kinerja Business Development Report Business Development Report 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