20260526_SMCB_Public Expose_32094887_lamp5.pdf

                   Lampiran Surat No. 147/LGRC/SBI/V/2026 tanggal 26 Mei 2026



V. Questions & Answers

   1. Mr. Morteza Syariati Albanna (Sakawarta.com)
      TPST Bantargebang will only accept residual waste starting August 1, 2026, so Jakarta residents
      are being encouraged to get into the habit of sorting their waste from home.

          1) With TPST Bantargebang's policy of accepting only residual waste starting August 1, 2026,
             how is PT Solusi Bangun Indonesia Tbk — through its Nathabumi division — preparing to
             increase waste processing capacity into RDF (Refuse-Derived Fuel) as a coal substitute?

          2) To what extent can RDF processed from Jakarta's waste reduce coal consumption in the
             cement industry, and are there specific emission reduction or energy mix targets that the
             Company aims to achieve in 2026?

          3) Household waste sorting is key to the success of RDF. What are the biggest challenges in
             ensuring the quality of residual waste so that it is suitable for processing into RDF, and how
             has the Company's collaboration with the Jakarta Provincial Government regarding urban
             waste progressed so far?

          Answer:
          The Company welcomes TPST Bantargebang's policy that encourages waste sorting from the
          source. For us, this is an important step in strengthening the circular economy ecosystem,
          while also supporting the utilization of urban waste into RDF as an alternative fuel in the cement
          industry.
          Through Nathabumi, the Company already has experience in waste management and RDF
          utilization, including collaboration with a number of local governments. In 2025, Nathabumi
          utilized 830,572 tons of waste as alternative raw materials and fuel.

          The Company has also collaborated with 21 city/regency governments in RDF utilization,
          including collaboration with DKI Jakarta.

          We have a GreenZone facility at the Narogong Plant with an industrial waste processing
          capacity of up to 160,000 tons per year, which is continuously being optimized to support
          urban waste management needs.

          We continue to strengthen this infrastructure readiness through intensive coordination with
          local governments to ensure that RDF quality standards are maintained.
          The use of RDF helps gradually reduce coal consumption, as a portion of the thermal energy
          requirements in the cement production process can be substituted by alternative fuels.

          Going forward, increases will be carried out in a measured manner, taking into account supply
          continuity, RDF quality, safety aspects, regulatory compliance, and plant operational needs. In

                 Lampiran Surat No. 147/LGRC/SBI/V/2026 tanggal 26 Mei 2026



        the long term, this step supports the Company's target to reduce net specific CO₂ emissions
        by 29% by 2030 compared to the 2010 baseline.

        The main challenge with RDF is maintaining the quality of residual waste, particularly in terms
        of moisture content, contaminants, calorific value, and supply consistency. Therefore, sorting
        at the household level becomes critically important. The Company will continue to strengthen
        collaboration with the Jakarta Provincial Government and other stakeholders so that waste
        that was previously a burden on landfills can be processed into a valuable alternative energy
        source.

        We are optimistic that, with Nathabumi's experience, technological support, and increasingly
        strong collaboration, RDF can become a real solution to reducing the burden of urban waste,
        decreasing dependence on coal, and supporting the transformation of the cement industry
        toward a greener and more sustainable future.

2. Mr. Dimas Andi Shadewo (Kontan)
   1) What are SMCB's revenue and net profit targets for 2026?
   2) Will SMCB increase exports, including expanding to new destination countries, in line with the
       completion of the port and production facilities in Tuban?
   3) What efforts is the Company making to increase the free float of its shares in order to be lifted
       from the IDX suspension? Are there any specific corporate actions planned that could have an
       impact on increasing the free float?

        Answer:
        1) Sales volume targets are projected to grow by 1–2% in line with data from Aspersi, which
           would support the Company's revenue and also maintain the net profit margin at the 6–
           7% level.

        2) Yes, the Company views exports as a growth opportunity, particularly with the completion
           of the port facility and special-type cement production in Tuban. This facility is designed
           to support exports of approximately 500,000 to 1 million tons per year, with an initial focus
           on the United States market through a strategic partnership with Taiheiyo.

            Regarding the addition of new destination countries, the Company will proceed selectively
            and gradually, taking into account operational readiness, product quality, market demand,
            and economic viability. Our priority is therefore to ensure that the Tuban facility operates
            reliably, meets export market specifications, and makes a positive contribution to the
            Company's utilization and performance.

        3) The Company is committed to continuing its efforts to meet the minimum free float share
           requirement. The Company assures its shareholders that, to date, this sanction has had no
           impact on the Company's operations, legal standing, finances, or business continuity.

                 Lampiran Surat No. 147/LGRC/SBI/V/2026 tanggal 26 Mei 2026



        4) The Company is currently in the process of conducting various studies to undertake
           corporate actions in order to fulfill the free float requirement. As part of PT Semen
           Indonesia (Persero) Tbk ("SIG") (the Company's majority shareholder), which is a State-
           Owned Enterprise ("BUMN"), the Company needs to consider the corporate action that is
           most beneficial for all shareholders.
        5) Several corporate action alternatives currently being studied by the Company together
           with SIG include, among others:
           - Issuance of new shares with Pre-emptive Rights (Rights Issue / HMETD); or
           - Delisting (cancellation of stock exchange listing), both of which still require in-depth
              review.
           - Given that the Company is part of a state-owned enterprise (BUMN) group, discussions
              and coordination are required with BP BUMN, BPI Danantara, as well as several other
              relevant regulators (including the Deputy Attorney General for Civil and State
              Administrative Affairs ("Jamdatun") and the Supreme Audit Board ("BPK")), in order to
              determine the most appropriate corporate action for the Company to pursue.
           - With regard to fulfilling the free float requirement, the Company is also conducting
              intensive discussions and coordination with the Indonesia Stock Exchange (IDX). This is
              because careful considerations are needed to determine the best corporate action to
              fulfill the free float requirement as soon as possible.

3. Mr. Hilda B. Alexander (KOMPAS)
       The government is targeting the completion of 104 "Sekolah Rakyat" (People's Schools) by
       June 2026 to be fully operational for the new academic year in July 2026, alongside the
       allocation of 10,000 integrated BSPS (Self-Help Housing Stimulus Assistance) units.
       Meanwhile, national cement plant utilization, including SBI's production lines, remains at an
       average of around 53.9% due to logistical and regional distribution challenges.
       1) How does SBI mitigate the risk of bottlenecks in local material distribution?

        2) Was SBI's operational performance leap in the first quarter of this year driven by absorption
          from these social infrastructure projects along the people's corridor, or was it more broadly
          supported by the urban commercial market and export penetration?

        Answer:
        1) SBI synergizes with SIG in terms of its supply chain network to meet market demand. In
           addition, SBI's distribution capability is considered sufficiently prudent from the
           perspective of supply (plant), transportation, and channels (distributors and retail).

        2) The improvement in SBI's net profit performance was primarily due to a 3% increase in
           sales performance, supported by a 1.5% increase in sales volume. This was driven by
           improving national cement demand conditions in Q1 2026. Market conditions in Q1 2026
           were supported by growth in retail cement sales of 6.9% compared to 2025, while the bulk
           sector grew by 0.1%.

                 Lampiran Surat No. 147/LGRC/SBI/V/2026 tanggal 26 Mei 2026



4. Mr. Aria Ananda (LKBN Antara)
       1) The cement industry capacity stands at approximately 120 million tons, with utilization at
           around 50%, and many issuers are focused on protecting their margins. Amid the current
           conditions of national cement industry oversupply and utilization levels that are still
           considered suboptimal, what strategy does SBI rely on to maintain profitability in 2026
           without getting caught in a price war?

        2) To what extent will exports become a pillar of SBI's future growth, particularly following
           the development of the Tuban export facility?

        3) SBI is promoting green cement and decarbonization — from a business perspective, has
           this green transformation already begun to deliver a tangible impact on cost efficiency, or
           is it still a long-term investment?

        Answer:
        1) - The potential for export sales to the US market, as a mitigation measure against
               national oversupply
           - Product diversification across both cement and Value Added Solutions
           - Production efficiency on the energy side through the use of alternative fuels and raw
               materials
           - Supply chain synergy with SIG to support sales transformation

        2)   Cement exports are expected to increase the Company's sales volume by a maximum
             of 1 million tons per year.
        3)   The use of alternative fuels can certainly provide cost efficiency compared to using coal,
             in addition to emission reductions that can contribute to sustainability.

5. Mr. M. Daelami (Investor Daily)
       What is the Company's policy regarding the use of its 2025 net profit? And what is the
       performance projection for 2026?

        Answer:
        The use of alternative fuels can certainly provide cost efficiency compared to using coal, in
        addition to emission reductions that can contribute to sustainability.

6. Mr. Daniel (Analyst)
   1) Management mentioned on slides 18 and 19 that among the 6 strategic focuses, "Leverage
       Innovation and Digital Transformation" is one of the pillars. What specific digital investments
       are currently being or will be implemented, and how does management measure the ROI of
       this digital transformation in the context of a highly capital-intensive cement industry?

    2) Management mentioned on slide 15 regarding exports to the United States — this is a highly
       ambitious expansion move. How does management build confidence that cement from Tuban

             Lampiran Surat No. 147/LGRC/SBI/V/2026 tanggal 26 Mei 2026



    will be price-competitive in the US market, given the long-distance logistics costs and the
    currently dynamic import tariff policy landscape?

3) Management mentioned on slide 12 regarding RDF and collaboration with 21 regional
   governments — the partnership with 21 local governments for waste utilization as fuel is a
   unique initiative in the industry. Has the Nathabumi business model reached a point of material
   financial contribution, and are there any plans for monetization or a spin-off in the future?

Answer:
1) One example of a digital implementation we are running is Advanced Process Control to
   optimize kiln performance. In the cement industry, the kiln is a critically important area as it
   directly affects energy consumption, production stability, and emissions.

    Through Advanced Process Control, kiln operating parameters can be monitored and
    controlled more precisely based on data. The goal is to keep the combustion process stable,
    reduce operational variability, improve energy use efficiency, and support consistent product
    quality.

    The ROI of initiatives such as this is measured by their impact on operational KPIs, including
    reductions in thermal energy consumption, improvements in kiln operational stability,
    reductions in downtime, fuel cost efficiency, and their contribution to operating margins. Our
    digitalization is therefore directed at areas that deliver a direct impact on the Company's
    efficiency and competitiveness.

2) Our exports to the United States are carried out in a measured manner, not solely based on
   volume opportunity, but also on the basis of a strategic partnership with Taiheiyo, certainty of
   market demand, and the specifications of special-type cement products.

    From a cost competitiveness standpoint, the Tuban facility is indeed designed for export,
    including an upgrade of the terminal capacity from 15,000 DWT to 50,000 DWT, enabling
    shipments to be conducted at a larger and more efficient scale.

    Regarding logistics costs and the potential for changes in import tariffs, these form part of the
    commercial risk assessment that we continuously monitor together with our partners. The
    principle is that every export must remain economically viable, meet market specifications, and
    make a positive contribution to asset utilization and the Company's performance.

3) Nathabumi has already been making an increasingly tangible contribution, both through waste
   management service revenues and energy cost efficiency from coal substitution. In 2025,
   Nathabumi processed 830,572 MT of waste, served 821 customers, generated a gross added
   value of Rp328.99 billion, and supported the Company's TSR (Thermal Substitution Rate)
   reaching 15.11%. However, Nathabumi currently remains an integral part of the Company's

                       Lampiran Surat No. 147/LGRC/SBI/V/2026 tanggal 26 Mei 2026



             integrated business strategy. Our focus is on scaling up, strengthening collaboration with local
             governments, and increasing its contribution to efficiency and sustainability. Regarding a spin-
             off, there is no decision we are able to share at this time; development options will be assessed
             prudently in accordance with the added value they bring to the Company and its shareholders.

    7. Mr. Khoirul Huda (Harian Bhirawa)
       1) Has the US, Israel vs. Iran conflict had any impact on production and sales over the last four
           months?

        2) Has the depreciation of the Rupiah also had an impact?

        3) What are the tips and solutions if there is an impact?

        Answer:

        1) Geopolitical impacts certainly have the potential to increase production costs, particularly fuel
           costs. However, through the optimization of alternative fuel usage, synergy within the group's
           distribution network, and a reduction in the Clinker Factor (CF), these measures are expected
           to be able to mitigate the impact of rising costs.

        2) Cement export sales to the US are expected to help mitigate the pressure on the Rupiah's
           value, which has an impact on fuel and raw material costs.

        3) Similar as points 1 and 2.

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