PT Varia Usaha Beton Inaugurates Palembang Batching Plant to Support Infrastructure Development in Southern Sumatra

PT Varia Usaha Beton (VUB), a business unit of PT Semen Indonesia Tbk (SIG), has inaugurated the Palembang ready-mixed batching plant in support of the government’s infrastructure development efforts in the southern part of Sumatra. The inauguration took place on Thursday, June 22, 2023.

The establishment of the batching plant is a result of the synergy between VUB and post-integration PT Semen Baturaja Tbk. It also marks the expansion of VUB’s product service network to meet the market’s needs.

The VUB Palembang batching plant was constructed using wet system and command batch technology. It has an installed capacity of 60 cubic meters per hour and a production volume of 45 cubic meters per hour or 8,500 cubic meters per month.

The plant will receive its cement supply from Semen Baturaja, covering the catchment area of Palembang City, Banyuasin Regency, Ogan Ilir Regency, and Ogan Komering Ilir Regency.

According to SIG Corporate Secretary Vita Mahreyni, Palembang City was chosen as the location for the new batching plant due to its status as the second most populous city in Sumatra, with a population of 1.6 million people. The city also boasts good infrastructure support, including the Trans Sumatra Toll Road (JTTS), Sultan Mahmud Badaruddin II International Airport, train stations, ports, LRT, and the Jakabaring Sport Center. These infrastructures are expected to encourage economic growth and equitable development, as well as the development of new independent cities.

“The advantage of this infrastructure is an opportunity for economic growth, including the construction sector, making it a potential market for the SIG Group,” said Vita.

Palembang City’s economy is projected to grow by 5.25 percent by the end of 2022, driven in part by the construction and housing sector. The presence of the Palembang batching plant is expected to strengthen and fill the market in the South Sumatra region following the integration of Semen Baturaja into SIG.

VUB is one of SIG’s business units that produces various concrete products, including ready-mix concrete, precast concrete, masonry concrete, crushed stone, and construction services and equipment rental.

VUB’s products and services are known for their quality, timeliness, quantity, and environmental friendliness. They are supported by competent human resources and complete machines and equipment that meet industry standards and are fully automated.

VUB has previously contributed to infrastructure development in Indonesia, including projects such as the Mandalika Circuit, the Semarang-Demak Toll Road, the Solo Balapan-Kadipuro elevated train line, the Manado-Bitung Toll Road, and the access flyover to Ahmad Yani Airport in Semarang. Other projects include the Muara Tawar Jakarta PLTGU, the Serang-Panimbang Toll Interchange, the Ganefo Mranggen flyover, the Surabaya-Mojokerto Toll Road, the Denpasar Bali Legian Arcade, and Makassar Hasanudin Airport.

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What advantages does the strategic location of Palembang City provide for the effectiveness and efficiency of the new batching plant

Ions, and a port.

Vita added that with the establishment of the Palembang batching plant, VUB aims to contribute to the government’s infrastructure development program in the southern part of Sumatra. The plant will provide a reliable supply of ready-mixed concrete for various construction projects in the area, including road construction, buildings, and other infrastructure development.

The use of wet system and command batch technology in the plant’s construction ensures high-quality and consistent concrete production. The plant has the capacity to produce 45 cubic meters of concrete per hour or 8,500 cubic meters per month, ensuring a steady supply for ongoing and upcoming projects.

The partnership between VUB and Semen Baturaja is crucial in ensuring a continuous supply of cement for the batching plant. By utilizing the cement supplied by Semen Baturaja, VUB can provide a one-stop solution for construction projects, from the supply of cement to the production of ready-mixed concrete.

The strategic location of Palembang City further enhances the effectiveness of the new batching plant. With good infrastructure support, transportation of materials and finished products will be more efficient, reducing costs and improving project timelines.

Overall, the inauguration of the Palembang batching plant marks an important milestone for VUB and its commitment to supporting the government’s infrastructure development efforts. With its high-quality concrete production and reliable supply, the plant will contribute to the growth of the construction industry in the southern part of Sumatra.