112 Years of Semen Padang, Indonesia's Oldest Cement Factory

TheIndonesia.id - Semen Padang started from a Dutch officer of German nationality, Carl Christophus Lau (C.C. Lau), curiousity. He discovered interesting rocks at Ngalau Hill and Karang Putih Hill in Lubuk Kilangan, Padang. He sent the stones to the Netherlands for further research.

It turns out that the rocks were limestone and silica stone which can be used as raw materials for making cement. The research results from the Van Materials Ondezoek Laboratory in Amsterdam made C.C Lau excited. His initial assumption was not wrong, the Indarung hill rocks contain deposits rich in cement raw materials.

At that time, it was estimated that in the bowels of Bukit Karang Putih, hundreds of millions of metric tons of limestone were stored. Not far from Karang Putih Hill there is also Ngalau Hill which contains silica, one of the raw materials needed for cement making. Clay materials found in Indarung hill are also needed as other raw materials. The rest can be imported from outside, such as plaster as an adhesive and other chemicals.

Finally, on January 25, 1907, C.C. Lau applied to the Dutch East Indies government to establish a cement factory in Indarung, as based on the book "One Century of Building the Country" written by journalist Hasril Chaniago. Seven months later, C.C Lau's proposal was approved, but he needed a financier investor to fulfill his dream.

It took three years, finally, a collaboration of Firman Cobroesders Veth company, Fa. Dunlop, and Fa. Yarman & Soon, gave birth to a business entity named NV Nederlandch Indische Portland Cemen Maatschappij (NV NPCM), with a deed of Notary Johannes Pieder Smidth in Amsterdam dated March 10, 1910. This became a big investment at that time, under the Ministry of Agriculture, Industry, and Trade of the Dutch East Indies Government.

The Dutch government also opened up opportunities for investors to invest in the transportation sector, such as railways, Ombilin coal mining, and Emma Haven port (now Teluk Bayur).

The company's control center is in Amsterdam, but its operations are carried out in Indarung. The ownership of this new business excites Indarung, and it quickly becomes a new vocabulary in the community when the Indarung cement factory was officially opened in June 1910. Most of the factory's physical buildings have been completed, but the factory equipment is still not ready to be installed in place.

112 Years

Today, March 18, 2022, PT Semen Padang is 112 years old. Padang Mayor Hendri Septa said that as the largest state-owned enterprise in West Sumatra, the existence of PT Semen Padang has brought many benefits to this area since it was first established.

Semen Padang has contributed to building various infrastructures needed by the community. Semen Padang has also empowered SMEs and the community through CSR programs that have an impact on economic growth and the presence of independent SMEs.

Semen Padang also took part in economic recovery after the COVID-19 pandemic and fostered SMEs in Padang. The chairman of the Nagari Limau Manis Adat Density Padang Syarifudin Dt Bungsu conveyed that his area includes ring I of PT Semen Padang and so far the company's attention to the area is quite good.

Various programs have been developed by Semen Padang as a sign of the company's concern for the surrounding environment, such as the Nagari Children's Empowerment Forum program which has been running for nine years with activities ranging from community economic empowerment to farmer women's groups, children's education.

Syarifudin expressed his gratitude for the work of PT Semen Padang which also assisted in the construction of infrastructures such as the construction of roads and mosques.

Optimism

On the momentum of this 112th Anniversary, PT Semen Padang carries the theme, "Rise Stronger", as a form of optimism that is ready to rise and become even stronger. "This is a momentum for us to rise and be stronger going forward in facing all challenges and obstacles," said Acting President Director of PT Semen Padang Asri Mukhtar.

Semen Padang has experienced various periods of ups and downs and is a silent witness to the history of the nation's struggle against the invaders until it finally experienced a revival in the hands of the nation's children.

In recent years, PT Semen Padang, which is under the holding of PT Semen Indonesia, has been faced with the tight competition in the cement industry. The emergence of new players resulted in excess supply in the market. While market conditions themselves have been exacerbated by the COVID-19 pandemic since early 2020.

Even so, in 2021, Semen Padang has shown good performance in terms of production and sales.