Distribution Facilities

Cement is distributed in Indonesia generally through a network of main distributors, regional distributors, distributors and sub-distributors to retailer or wholesaler outlets. Generally, outlets and distributors do not maintain large stocks of cement, as the product is not suitable for long-term storage, and instead rely on shipments from producers to meet current demand.

We implemented a computerized on-line cement delivery monitoring and tracking system for all of our cement plants. This system enables us to track the status and loading pace of the distribution network. In addition, we have appointed PT Dian Abadi Perkasa (DAP) to distribute bagged cement domestically through DAP's network. DAP's online ordering system allows monitoring of balances of master order contracts, outstanding receivables and access to other information. Currently, Indocement owns 99.9% of DAP.

We distributes all of our bulk cement directly to the distributors or for shipment by sea by using our fleet of bulk tank trucks. We operates a centralized distribution facilities in Surabaya and Lombok. These facilities have bulk storage, packing, loading and distribution facilities, allowing us to distribute cement more efficiently. An efficient distribution of cement is possible at the P-12 plant in Tarjun through the existing port and loading facilities located at the site.

Our distribution facilities allow transporting by sea to other islands in Indonesia and to international markets. In addition to having port facility in Tarjun, we also leases a berth at Tanjung Priok port, which facilitates exports of cement to the international markets.

Since becoming part of the HeidelbergCement Group, export sales is controlled by the Group trading company in Singapore. Its global networking is aimed at improving the overall export sales performance. Since then, the company was able to sell to many countries/destinations, such as Bangladesh, Hongkong, Singapore, Vietnam, Cameroon, Nigeria, Australia and others.

Some strategic moves in the export sector are also aimed at supporting the company's objective in improving the production utilization rate considering the current domestic