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Indocement group.

Backgrounds

PT Indocement Tunggal Prakarsa Tbk. (ITP ITP - Intent to Package ) was established in 1985 to operate in cement industry. It is a merger of six cement producers operating 8 factories.

In 1973, PT Distinct Indonesia Cement Enterprise (DICE) built the first cement factory with an installed capacity of 500,000 tons/year of gray cement. It was completed and operational in August 1975. It was the first factory of the 8 factories (Plant-1). In August 1976, DICE built its second factory with capacity of 500,000 tons per year. It was the second (Plant-2) joining the merger.

In December 1978, PT Perkasa Indonesia Cement Enterprise (PICE) commissioned its first cement factory having a production capacity 1 million tons per year. The factory was the third (Plant-3) of the 8 to be merged under Indocement. In Nov, 1980, PICE put into operation its second cement factory with a production capacity of 1 million tons per year. It was the 4th (Plant-4).

In March 1981, PT Perkasa Indah Indonesia Cement Putih Enterprise (PIICPE) launched its cement factory with a production capacity of 150,000 tons white cement (WC) and 50,000 tons Oil Well Cement/OWC) per year. The production of WC began in 1982, and OWC OWC Officers' Wives' Club
OWC Other World Computing (retail store)
OWC Okaloosa-Walton College
OWC Office Web Components
OWC Oscillating Water Column
OWC Owner Will Carry (real estate owner will carry mortgage) 
 in 1983. The cement factory was the fifth (Plant-5) of the eight.

In September 1983, PT Perkasa Agung Utama Indonesia Cement Enterprise (PAUICE) commissioned its cement factory with a capacity 1.5 million tons per year. It was the sixth (Plant-6).

In December 1984, PT Perkasa Inti Abadi Indonesia Cement Enterprise (PIAICE) followed with a cement factory with a capacity of 1.5 million tons per year. The cement factory became the 7th (Plant-7).

In July 1985, PT Perkasa Abadi Mulia Indonesia Cement Enterprise (PAMICE) followed by commissioning its own factory with a capacity of 1.5 million tons per year to become the 8th (Plant-8) of the 8 units merged under Indocement .

In 1985, the six companies were merged into one named PT Indocement Tunggal Prakarsa (ITP). The eight factories are located in the same area in Citeureup, Bogor, West Java.

In 1991, ITP took over PT Tridaya Manunggal Perkasa Cement (TMPC) which had a capacity of 1.2 million tons of cement a year. The cement factory is located in Palimanan, Cirebon, West Java. It became the 9th factory (Plant-9) under Indocement .

In 1996, ITP finished the construction of its 10th factory (Plant-10) with the same capacity and in the same location as that of Plant-9.

In March 1999, its 11th factory (Plant-11) located in Citeureup, Bogor, West Java came on line with an installed capacity of 2.4 million tons per year.

In December 2000 , through the merger of ITP and PT Indocement Investama and PT Indo Kodeco Cement (IKC IKC Imperial Klingon Cruiser (Star Trek) ), ITP owned cement factory in Tarjun, Kota Baru Kota Baru (kōt`ə bär`) or Kota Baharu (kōt`ə bəhär` , South Kalimantan South Kalimantan (Indonesian: Kalimantan Selatan often abbreviated to Kalsel) is a province of Indonesia. It is one of four Indonesian provinces in Kalimantan - the Indonesian part of the island of Borneo. The provincial capital is Banjarmasin. . It is the 12 units (Plant-12) of ITP .

In 1989, ITP launched initial public offering (IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ) floating part of its shares on the Jakarta Stock Exchange Jakarta Stock Exchange

Established in 1977, the largest securities exchange in Indonesia.
 (BEJ BEJ Best Engineering Judgment
BEJ Best Expert Judgement
) and the Surabaya Stock Exchange (BES). In September 1994, ITP listed its entire shares on the BEJ and BES.

In 2000, two subsidiaries of ITP PT. Indocement Investama and PT. Indo Kodeco Cement--were merged into ITP as part of its program to restructure its debts with an approval from a Steering Committee steer·ing committee
n.
A committee that sets agendas and schedules of business, as for a legislative body or other assemblage.


steering committee
Noun
 named by its creditors that included Bank of America
See also:  and


Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world.
, Marubeni, The Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. , The FujiBank, Banque Nationale Banque Nationale (French: "National bank") may refer to:
  • BNP Paribas (Banque Nationale de Paris), commercial bank
  • National Bank of Canada (Banque Nationale du Canada), commercial bank
  • National Bank of Belgium (Banque Nationale de Belgique
 de Paris and Bank of Tokyo Mitsubishi.

ITP was formerly a subsidiary of the Salim Group The Salim Group is Indonesia's big­gest conglomerate with assets including Indofood Sukses Mamur, the world's largest instant noodle producer, and Bogasari, a larg­e flour-milling operation [1]. The group was founded by Sudono Salim.  of Sudono Salim in joint venture with the government of Indonesia. After the 1998, monetary crisis, ITP was handed over to the Bank Rescue Agency (BPPN BPPN Badan Penyehatan Perbankan Nasional ) as collateral for its debt. At that time ITP had a debt of US$ 1.1 billion to a number of banks including BCA, which was also owned by the Salim Group. It was handed over to BPPN to handle its debt restructuring Debt Restructuring

A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage.

Notes:
.

In 2001, Kimmeridge Enterprise Pte. Ltd. (a subsidiary of Heidelberg Cement Group) acquired the entire stake of BPPN and PT Holdiko Perkasa in ITP. Holdiko Perkasa was establish to coordinate all assets of the Salim Group taken over by the government in compensation for its debt. Heidelberg Cement Group, which is based in Germany, is a world giant having cement factories in more than 50 countries. It took over ownership of the majority shares of Indocement.

In July, 2008, the majority shares or 65.14% of ITP were owned by Heidelberg Cement Group through Birchwood Omnia Limited from the United Kingdom with PT. Mekar Perkasa holding 13.03% and the public 21.83%.

In 2009, the Salim Group through PT. Mekar Perkasa planned to increase its stake in ITP by more than 15% worth Rp 3 trillion. But the plan failed.

Currently ITP became the holding company of the Indocement Group having a number of subsidiaries operating in various business areas including, cement industry, aggregate mining, trade, shipping and industrial estates, etc.

Cement industry as main pillar

In 1992, ITP diversified business by launching internal acquisition of PT. Indofood Sukses Makmur (instant noodle producer), PT. Bogasari Flour Mills (wheat flour producer) and PT. Perwick Agung (operator of Wisma Indocement office building) which were subsidiaries of the Salim Group. Bogasari is known as the largest wheat flour producer in Indonesia with a 90% share wheat flour market in the country. The acquisition that cost Rp 2.09 trillion was the largest in Indonesia until that year.

In 1997, the Salim Group made internal acquisition by way of ITP selling all its assets in PT Bogasari Flour Mills to PT Indofood Sukses Makmur , which was also a subsidiary of ITP. The internal acquisition was to improve efficiency and to allow ITP to focus on cement industry. Observers, however, said the deal was to raise fund to repay ITP's debts of Rp 2.65 trillion to BCA. By selling Bogasari, ITP earned a big fresh fund.

ITP operates integrated production units with a total production capacity of around 17.1 million tons of cement a year in 2009. Currently ITP operated 12 factories, nine of which are located in Citeureup, Bogor, West Java; two in Palimanan, Cirebon, West Java and one in Tarjun, Kotabaru, South Kalimantan.

The main product of ITP is Portland cement of Type I (Ordinary Portland Cement (OPC (1) (OpenGL Performance Characterization) A project group within GPC that manages OpenGL benchmarks. OPC endorses the Viewperf and GLperf benchmarks. Viewperf was created by IBM and OPC provides viewsets for it, which are combinations of tests using specific ) and Portland Pozzolan poz·zo·lan   also poz·zo·la·na or poz·zuo·la·na
n.
1. A siliceous volcanic ash used to produce hydraulic cement.

2. Any of various artificially produced substances resembling pozzuolana ash.
 Cement (PPC See Pocket PC, PowerPC and pay-per-click.

PPC - PowerPC
), which was replaced with Portland Composite Cement (PCC) in 2005. ITP also produces other types of cement, such as Portland cement of Types II and Type V and Oil Well Cement. Semen its cement products are known with the brand of Tiga Roda. ITP is the only producer of white cement in Indonesia.

Its largest reserves of cement basic material are in Citeureup, Bogor, West Java, predicted to still have an economic life of 80 years. Under 2009's production rate of 17 million tons per year. There are nine factories of he Company in Citereup with a total production capacity of 10 million tons, and two units in Cirebon with a capacity 2.5 million each, and one in Tarjun with a capacity of 2,5 million tons a year.

The market share of Indocement fell from 31.7% in 2008 to 30.2% in 2009. Semen Gresik had a market share of 22.2%, Semen Padang 13%, Holcim Indonesia 13.8% and Semen Tonasa 9.4%. Semen Padang and Semen Tonasa are both owned by Semen Gresik.

ITP has expanded its production capacity by building two new cement mills in Palimanan, Cirebon, West Java with a total capacity of 1.5 million tons per year . The two facilities were built at a cost of US$35 million. Started operation in May 2010. In Palimanan, ITP has two factories with total production capacity of 2.6 million tons,

ITP also built another cement mill in Citeureup West Java with a production capacity of 1.5 million tons of cement per year. It is to be operational in 2012.

In 2009, ITP's total production capacity was 17.1 million tons. In May 2010, the installed capacity was expanded by 1.5 million tons from the facilities in Palimanan, Cirebon. The company, therefore, now has a total capacity of 18.6 million tons in 2010. .

ITP plans to build 3 batching plants, with new loader and true mixer to strengthen its ready mix business facing growing property industry and government's massive infrastructure projects.

In 2009, his capacity utilization of ITP was around 65% with capacity at 17.1 million tons of cement per year. In mid 2010, the capacity utilization rose to 75%-80% with the growing market demand for cement.

In 2010, ITP sets aside US$ 100 million for capital expenditure to build the cement plant in Cirebon to increase its production capacity by 1.5 million tons.

In addition, ITP begins construction of two new cement factories in Citeureup with a total capacity 2 million tons per year. The two factories are to be operational in 2012.

PT. Indomix Perkasa (IP) operates in the production of concrete ready for use with a production capacity of 400,000 cubic meters per year. IP operates 9 units of batching plants located in various areas in Jakarta, West Java and East Java.

Aggregate Mining

PT Gunung Tua Mandiri (GTM See Good-this-Month order. ) operates in aggregate mining industry starting in 2007. GTM has mining concession in Rumpin, Bogor, West Java. The miner has a production capacity of 1.5 million tons of andesite andesite

Any member of a large family of rocks that occur in most of the world's volcanic areas, mainly as surface deposits and to a lesser extent as dikes and small plugs.
 per year. The aggregate mining concession has a reserve of 30 million tons of andesite.

Andesite is volcanic rock found as sediment at mountain slopes or feet. Andesite is rock split into small pieces to be mixed with cement to produce concrete, foundation of railroads, ornaments and statues.

In 2007, ITP acquired 51% stake in GTM, an aggregate miner to strengthen its position as supplier of building material especially for infrastructure projects.

ITP has expanded its business in aggregate mining. In 2009 it acquired the whole shares of PT Mandiri Sejahtera Sentra (MSS), also an aggregate miner.

MSS has a production capacity of 0.5 million tons of andesite per year and andesite reserve of 95 million tons in Purwakarta.

Later MSS acquired PT. Handi Perkasa (HP) which operates also in the same business area. Hp has 125 hectare aggregate mining concession in West Java.

By controlling GTM and MSS, ITP became the largest player in aggregate mining industry with a total aggregate reserve of 115 million tons.

Property and industrial estates

Through PT. Wisma Nusantara International (WNI WNI Wisconsin Name Index
WNI Weathernews Incorporated
WNI Willamette processor New Instructions (Intel) 
), ITP has its interest in the property sector. WNI operates the 31-floor Wisma Indocement office building with a total floor space of 31,000 square meters at Jalan Jenderal Sudirman, a business center in Jakarta.

PT. Cibinong Center Industrial Estate operates industrial estate near the Citeureup cement factories in West Java.

Shipping

The Indocement Group has expanded its business operations abroad through Still Water Shipping Corporation in Singapore. The company operates in shipping business with a 10,000 DWT DWT
abbr.
1. deadweight tonnage

2. deadweight tons
 ship. The shipping company operates in Singapore and Indonesia.

Operator of cement terminals at ports

PT. Multi Bangun Galaxy (MBG MBG Missouri Botanical Garden (Saint Louis)
MBG Molecular Biology and Genetics (Cornell University department)
MBG Money Back Guarantee
MBG Matthaei Botanical Gardens (Ann Arbor, MI) 
) which was established in 1999 operates in port management service business. MBG has land leasing agreement with PT. Pelindo III as a port operator. MBG has the right to manage cement terminal in the Tanjung Priok port of Jakarta and Surabaya's Tanjung Perak port effective until 2012 and in Lembar, Lombok, West Nusatenggara effective until 2021.

Financial performance

In 2009, ITP recorded an 8% decline in cement sales to 13.4 million tons from 14.6 million tons in the previous year. The decline was partly caused by the management policy of choosing to maintain selling prices amid weak demand on the domestic market. Its market share fell from 31.7% to 30.2%. ITP also posted a decline in exports to 1.6 million tons from 2.3 million tons in 2008, as a result of the slump in the global market.

Meanwhile, the country's total consumption of cement grew slightly by 0.9% in 2009 to 38.4 million tons from 38.1 million tons in 2008. The country's total installed capacity remained flat at 46.2 million tons.

ITP recorded a net profit of Rp 2.7 trillion in 2009 or a 58.8% rise from Rp 1.7 trillion in the previous year. Its income grew from Rp 9.7 trillion to Rp 10.5 trillion in the same period.

List of the Group

INDOCEMENT TUNGGAL PRAKARSA TBK, PT

Parent Company: INDOCEMENT TUNGGAL PRAKARSA TBK, PT

Address: Wisma Indocement Building, 8th Floor Jl. Jend. Sudirman Kav. 70-71

City: Jakarta Pusat 12910

Phone(s): (021) 2512121

Fax(s): (021) 2510066

Telex: 65150, 65249, 65731 INCEM IA

Number of Companies: 29 Companies

* Finance:

Investment company

* Industry:

Line of business: Cement mixer, Portland cement and Soil cement stabilize

* Mining:

Coal mining, aggregate mining

* Property:

Office building, Industrial estate

* Trading:

Distributor, Exporter

* Shipping

List of the group members Notable Members: INDOCEMENT TUNGGAL PERKASA TBK, PT (Portland cement manufacturing

FINANCE:

* MEKAR PERKASA, PT (Investment holding company)

* LENTERA ABADI SEJAHTERA, PT (Investment holding)

INDUSTRY:

* INDO KODECO CEMENT, PT (Portland cement manufacturing)

* INDOMIX PERKASA, PT (Cement mixer industry)

* MEGAH BUKIT BARISAN SEMEN, PT (Portland cement manufacturing)

* PAMA PAMA Professional Aviation Maintenance Association
PAMA Performing Arts Medicine Association
PAMA Pulse-Address Multiple Access
PAMA Power Aware Multiprocessor Architecture
PAMA Pediatric, Adolescent, and Maternal AIDS branch (US NIH) 
 INDO MINING, PT (Cement industry)

* PIONEER BETON INDUSTRI, PT (Concrete cement industry)

Other Members:

MINING:

* INDOMINCO MANDIRI, PT (Aggregate mining)

* GUNUNG TUA MANDIRI, PT (Aggregate mining)

* MANDIRI SEJAHTERA SENTRA, PT (Aggregate mining)

* HANDI PERKASA, PT (Aggregate mining)

* MINERAL INDUSTRI SUKABUMI, PT (Trass Quarrying)

PROPERTY:

* CIBINONG CENTRE INDUSTRIAL ESTATE, PT (Industrial estate management)

* INDOCEMENT GRAHA BAWANA, PT (Tower project development)

* ROYAL SENTUL HIGHLAND, PT (Property)

* WISMA NUSANTARA INTERNATIONAL, PT (Office building & Hotelry)

TRADING:

* DIAN ABADI PERKASA, PT (Cement distributor)

* MULTI GUNUA AGUNG, PT (General trading)

* OPTIMA INTI PELANGI SEJATI, PT (Exporter)

* PUTRI DAYA USAHATAMA, PT (Distributor)

* TRISTARA MAKMUR, PT (Distributor)

PORT MANAGEMENT

* MULTI BANGUN GALAXY, PT (Port management)

Overseas companies which affiliated with group:

SHIPPING

* BAHANA INDONOR, PT (Shipping)

* FIRST PACIFIC INTERNATIONAL LTD (HONGKONG) (Cement portland distributor)

* GREEN CAYMAN ISLAND LTD. (HONGKONG) (Cement portland distributor)

* INDOCEMENT LTD. (CAYMAN ISLAND) (Investment company)

* INDOCEMENT SINGAPORE PTE LTD (SINGAPORE) (Cement industry)

* LEAMAAT OMIKRON BV (Finance)

* STILLWATER SHIPPING CORPORATION (Shipping)
Table--1
Summary of financial report of ITP and subsidiaries, 2008 and 2009

(Rp billion)

         Description                 2009           2008

Assets
Current assets                         5.322          3.471
Non current assets                        78            108
Fixed assets                           7.773          7.597
Other assets                             103            111
Total assets                          13.276         11.287
Liabilities and equity
Current liabilities                    1.771          1.944
Non current liabilities                  801            821
Other liabilities                         --             --
Total liabilities                      2.572          2.765
Equity                                10.681          8.500
Minority interest                         23             22
Total liabilities and equity          13.276         11.287

Profit/loss
Income                                10.576          9.780
Net profit                             2.747          1.746

Source : PT. Indocement Tunggal Prakarsa Tbk
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Title Annotation:COMPANY PROFILE
Publication:Indonesian Commercial Newsletter
Article Type:Company overview
Geographic Code:9INDO
Date:Sep 1, 2010
Words:2455
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