1.

What makes Semen Indonesia people are able to acquire Thang Long
A strong leader aspect is needed. Great caution and strong leadership to face a long period of
internal conflict, there are also spin-offs, group fanaticism, differences in individual welfare and
strong sense of regionalism
2. What is the external factor?
The minister at that time, Pak Dahlan Iskan, encourages state-owned enterprises to expand
their business abroad as long as they have good business prospects and are conducted through
a feasibility study.
3. What is their novelty after acquire thang long?
PT Semen Indonesia (Persero), Tbk environmental friendly technology innovation’s successful
savings in energy consumption of up to 12%, through biomass fuel, the lowest in Asia.
4. What did they do regarding their organization preparation to be leader in regional market?
In doing the transformation is not easy, there are 4 stages that must be passed by PT Semen
Gresik where phase 1 transformation started in 1991 and up to stage 4 which started in 2011
until the future which aimed to make Semen Indonesia become a leader company in regional.
5. What is their corporate culture?

The Corporate Culture become the means (software) of corporate management, which is
developed from the philosophy and values as guidance and belief of all employees in performing
duties. The Corporate Culture is formulated in an acronym of “CHAMPS” that consists of cultural
values, as follows:
• C ompete With a Clear & Synergized Vision
• H ave a High Spirit for Continuous Learning
• A ct with High Accountability
• M eet Customer Expectation
• P erform ethically with high Integrity
• S trengthening Teamwork

6. How is the financial condition of TLCC at that time?

Profitability
ROA of Thang Long Cement Company defines that the company is not profitable enough relates
to its total assets.
ROE of Thang Long Cement Company is showing instability of company’s profitability by the
amount of money shareholders have invested.
The declining trend on ROE and ROA of Thang Long Cement Company is a result of competition
between rivals, market instability and the inability to pay overdue debts. This condition becomes
an opportunity for PT Semen Indonesia as a foreign investor to acquire the company.

In Vietnam, cement companies especially state-owned ones, have been aggressively finance
their business with debt. Thang Long Cement Company is a private company, and held a big
amount of debts, as noted in its financial statement (US$ 140 million) that sourced from several
lenders and were granted before PT Semen Indonesia took over the company.
7. How we can analize related to the theory
Based on Dunning’s Eclectic Paradigm, Semen Indonesia already implement Theory of O,L,I
advantages. The Ownership advantages of firms, the Location advantages, and the
Internalization factor. For the ownership advantages, with the acquisition of Thang Long, the
company have intangible asset such as local branding for Vietnam market since Thang Long is
one of the leading cement producers in Vietnam. The other reason is TLCC also has a large
inventory of raw materials, and fully supported by good technology and satisfactory
infrastructure for developing in the future. For the location advantages, by having a Vietnamese
company makes Company to have the availability and cost of resources to expand the market
into Vietnam. For Internalization Factor, beside investing abroad, the Company also extract itself
to improve company’s capability. In the same time, on April 2012, the Company succeeded in
completing the construction of TooBand fourth plant with the capacity of 2.5 million tons.
Following the commissioning stage, the new plant was handed over on July 2012, followed by
the inauguration of commercial operations in October 2012. Furthermore, in the third quarter of
2012, the Company also succeeded in completing the Tonasa V Plant in Sulawesi. The new plant
with 2.5 million tons capacity has gone through the commissioning stage since September 2012,
and it was targeted for commercial operations in the first quarter of 2013.