SMBR Enhances Corporate Governance Framework

Key Decisions from Extraordinary Shareholders Meeting

PT Semen Baturaja Tbk (SMBR), a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG), has taken significant steps to strengthen its corporate governance through decisions made during an Extraordinary General Meeting of Shareholders (EGMS) held on December 18, 2025. The meeting, attended by shareholders, approved two major agendas that will shape the company's future operations and compliance framework.

Amendments to Articles of Association

The EGMS approved amendments to the company's Articles of Association, which is a crucial step towards aligning the company's internal regulations with recent legal developments, particularly Law No. 16/2025 amending Law No. 19/2003 concerning State-Owned Enterprises. This change demonstrates SMBR's commitment to maintaining regulatory compliance and enhancing its corporate governance structure.

Delegation of Authority for 2026 Budget

The shareholders also approved the delegation of authority to approve the 2026 Work Plan and Budget (RKAP), providing the company's management with greater flexibility in planning and executing strategic initiatives. This move is expected to streamline decision-making processes and enable more agile responses to market conditions.

Corporate Name Change and Registered Office

As part of the restructuring, the EGMS approved changing the company's name to PT Semen Baturaja (Persero) Tbk, reflecting its status as a state-owned enterprise. Additionally, the registered office was relocated to Kabupaten Ogan Komering Ulu, Sumatera Selatan, bringing the company's legal domicile closer to its primary operational and production areas. This strategic move is seen as an effort to enhance operational efficiency and strengthen local presence.

Implications for Corporate Governance

These changes collectively represent a significant enhancement of SMBR's corporate governance framework. By updating its Articles of Association and optimizing its operational structure, SMBR is better positioned to navigate the evolving regulatory landscape while maintaining its competitive edge in the cement industry. The delegation of authority for the 2026 budget approval is particularly noteworthy, as it indicates a trust in the management's ability to drive the company's strategic direction effectively.