Citation:

Faarisal Haq, Sylviana Maya Damayanti, Uke Marius Siahaan. "Business Turnaround Strategy through Asset Spin-Off to Enhance Cost Efficiency (Case Study: PT Semen Indonesia Beton, Indonesia)" International Research Journal of Economics and Management Studies, Vol. 5, No. 6, pp. 258-262, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I6P129

Abstract:

PT Semen Indonesia Beton has experienced a negative operating margin that has persisted for the past few years. The root of the problem stems from a heavy fixed cost structure due to internal ownership of a fleet of mixer trucks, while the fleet utilization rate is below 40% of standard capacity. This study designed a strategy to spin off fleet assets into a new entity, PT SIB Logistik. Then, it evaluated the impact on the parent company’s cost efficiency and value creation for the recipient entity. A mixed-method approach was used with quantitative analysis for research questions 1 and 3 based on the company’s operational data. Semi-structured interviews with four internal sources were used for the second research question. Simulation results show that the spin-off reduces the proportion of fixed costs, improves operating margins to positive, and reduces margin sensitivity to volume fluctuations. For the new entity, the spin-off opens additional revenue streams from external markets while increasing the utilization of the mixer truck fleet. These findings prove that the spin-off is not simply a cost transfer, but a restructuring step that results in value creation for the parent company and the group ecosystem.

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Keywords:

Spin-Off Asset, Cost Efficiency, Operating Margin, Value Creation, Business Turnaround.