From Data to Dominance: AI, Innovation, and Industry 4.0 at Day 1 AIBP C&E ID
The 46th edition of the ASEAN Innovation Business Platform (AIBP) Conference and Exhibition took place over 2 days in Jakarta, Indonesia on 6 - 7 August 2024.
Through a series of insightful presentations and engaging panel discussions, participants delved into the opportunities and challenges associated with adopting these technologies. The focus was on practical solutions and real-world applications that can drive efficiency, growth, and innovation within Indonesian enterprises.
Harnessing AI for Indonesia’s Growth
A focal point of the conference was the development and implementation of AI in Indonesia. Representatives from PLN, Semen Indonesia, BNI, Pertamina and Bukalapak shared their insights and perspectives on this critical topic. Key takeaways from the discussion on how data and artificial intelligence can drive Indonesia’s transformation include:
Addressing key and fundamental challenges before embarking on more sophisticated projects - such as data integration and building data infrastructure and people capabilities
Importance of aligning AI adoption with business needs, understanding the limitations of AI, and developing the right innovation framework
Encouraging adoption and acceptance of new processes and ways of working for older organisations
Increasing accessibility of data and advanced analytics-related skills for the workforce, not just specialists, is a key goal
Understanding and mitigating biases in AI models is critical for ethical AI adoption
During (digital) transformation, we realised that we have to change the way people think about data. So 4-5 years ago, we developed the data infrastructure, and also the capability of the people - we trained the people, from the engineers that are now based in each department, and also development capabilities along with the infrastructure. It is not the end right now, but the results 4 years on from the digital transformation include… from power generation, which is one of the biggest parts of PLN, also (saw) increase of 1-2% of cost efficiency
- Ari Rahmat Indra Cahyadi, President Director, PT PLN ICON Plus
Information from all those points (plants, packing plants, retailers) is actually very important. The most important thing is if we have visibility end to end in our ecosystem, that will be very beneficial for (understanding what we are facing) in smart industry, innovation. We are a market leader right now, but competition is increasing, market demand is unpredictable right now, and there's also an internal cost push. So we need to gather as much data as we can. Previously we didn't have any visibility on how sales are, but now we are able to optimise by focusing on the data and the information we get. We are also able to provide information to management and stakeholders.
- Anindio Daneswara, Senior Vice President - Group Head of ICT, Semen Indonesia
We are going to continue with this digital transformation by accelerating it. We have this initiative, digital factory, where we really deliver three different digital solutions - digital intensive solution, data intensive solution and analytics intensive solution. This digital factory will not be led by the product owner, which is coming from the business, they will come from their domain, upstream, midstream, downstream and even from renewable energy. Working with this factory to deliver a solution and value is the target. So again, not focusing on the cost to drive a solution, but on what will be the impact of the value that will be coming from the solution.
- Sigit Pratopo, SVP Integrated Enterprise Data and Command Center, Pertamina
Agile Innovation through Upskilling, Automation, and Accessible Technology
With the earlier discussion highlighting the impact of AI and other digital tools on the workforce, particularly in terms of job displacement and the reshaping of traditional roles. This led into the dialogue on the future of work and the increasing role of automation. Participants explored strategies to navigate this transition, emphasising the importance of upskilling employees and fostering a culture of continuous learning to stay ahead in a rapidly changing environment. They also discussed making technology more accessible and user-friendly, allowing a larger non-technical group to drive innovation through digital tools such as RPA and low-code/no-code platforms. By making technology accessible and easy to use, organisations can empower a broader range of employees to contribute to innovation and drive business growth.
Key takeaways from the discussion on Innovation at Pace: The Agile Approach to Excellence, featuring insights OCBC Indonesia,, HM Sampoerna, Sarawak Energy PT. Affinity Health Indonesia, include:
AI is seen as a tool to amplify human potential rather than replace human roles
Challenges associated with agile transformation and AI development aplenty, with key ones being cultural shifts, data integrity and governance
Proper governance and alignment between management's intent and operational execution are critical to avoid misalignment and ensure smooth transitions
One of the things that we see a gap is the amount of effort that we have to put in, in order for us to get the requirements and also to implement it to the point where we start to use it and test it out, all the way to the deployment of our users. So that part becomes a lengthy process, and there's no way of returning because of our waterfall model. That's when we decided that the agile methodology is the one that we are looking into.
- Abby Sie, Head of Line of Business Portfolios, ICT, Sarawak Energy
The problem is the speed of the development, because the requirement is very, very fast. We need to develop it within this platform. We need to develop it with these certain policies. We need to develop it, of course, with the correct documentation. Those things are important, because you need to be able to develop it and put it into operation as soon as possible.
- Benedict Sulaiman, Vice President Information Technology, Director, PT. Affinity Health Indonesia
The only way that we can do this is to digitise it using AI, so that we can try to have new opportunities. So the technology in here is not to replace the people, but specifically to amplify the human potential and how we can scale our reach. So the people will go together with the HR department or the people and culture (department), to upskill the capabilities. In Sampoerna, we are committed to make sure that all of the employees, no matter their level in the organisation, have the right tools and right capabilities to drive this digital, augmented environment.
- Ephraim Gunawan, Head of IT, HM Sampoerna
We, as a bank, also have legacy systems. Our core banking systems are legacy systems. You cannot build that from an agile point of view. So we're kind of ambidextrous or like a dual work organisation, whereby the front end application can be developed in an agile way, and the back end system has to develop in the waterfall way. And that's okay. The most important thing, I know it's easy to say, it's governance.
- Altona Widjaja, Head of Digital and Payment Solutions, OCBC Indonesia
Driving Indonesia's Economic Growth Through Industry 4.0
In Indonesia, where rapid industrialisation and urbanisation are reshaping the economic landscape, digital transformation is particularly crucial. The country's push towards Indonesia 4.0 aims to revitalise the manufacturing sector through the adoption of smart technologies such as IoT, AI, and robotics. This transformation can help Indonesian industries overcome traditional inefficiencies, improve competitiveness, and drive sustainable economic growth. By embracing digitalisation, Indonesia not only addresses its local industrial challenges but also positions itself as a leader in the global digital economy.
Sustainability remains a vital aspect of Industry 4.0, ensuring that technological progress supports enduring ecological stability, economic resilience, and societal well-being. By embedding sustainable practices within digital transformation efforts, industries can minimise their environmental impact, enhance operational efficiencies, and stimulate innovation that aligns with broader global sustainability targets.
Utilities like PLN in Indonesia are undergoing a digital transformation to improve efficiency, reliability, and customer engagement through initiatives like smart grid, power plant digitalization, and microgrid implementation. Dr. Zainal Arifin, Executive Vice President of Renewable Energy, PLN, shared about how
PLN is building an EV ecosystem in Indonesia, including plans to install 2000 EV charging stations per year, to reduce emissions from transportation and enable greater customer participation.
The energy transition in Indonesia is driven by the need for decarbonization, digitalization, and decentralisation, which is pushing utilities like PLN to increase the penetration of renewable energy and improve grid flexibility to accommodate intermittent sources.
Key takeaways from the discussion on how digital technologies can drive Indonesia’s Industry 4.0 transformation, featuring insights from PLN, PELINDO, and Isuzu Astra, include:
The challenges of integrating legacy systems and databases across operations, and the need to build a robust and valid database as the foundation for digitalization.
Importance of automation, integration, and optimization to maintain a "single truth" of information across software systems, including legacy systems, various client and customer communication channels
Balancing trade-offs between availability, reliability, and sustainability when implementing digital technologies
In the energy sector which heavily scrutinised for their sustainability initiatives, key challenges lie in integrating different business models and resources for smart grid development
Collaboration and exchange of best practices across industries will support digitalisation journeys when it comes to similar metrics like productivity, quality, process efficiency and cost reduction in manufacturing and logistics sector
Technology plays a crucial role in reducing production costs, which is key to business sustainability and maintaining competitiveness. By digitizing processes and analyzing data, we can use historical data to develop AI that optimizes energy consumption and detects abnormalities before breakdowns occur. This approach helps reduce downtime, increase productivity, improve quality, and ultimately boost profitability.
- Yusak Kristian Solaeman, President Director, Isuzu Astra Motor Indonesia
There are two (key) indicators. One is, when a ship comes to the port, how long does it stay to unload and load the goods? Number two, when they load the goods, how long will the content of the cargo stay in the port? There are two in our control. And number three, this is very important to the ecosystem, because logistics is actually a long chain. How easy is it for the ecosystem to (gain) visibility (of activity) and interact with the port.
We cannot achieve this impact by only installing applications, because in the B2B sector like us, it's actually the process… we have a mantra - standardise first, digitalise later, and then integrate. So I think that is unique in this industry.
Natal Iman Ginting, CEO, PT ILCS (Pelindo Solusi Digital)
Stay tuned for more updates from Day 2 of the 46th ASEAN Innovation Business Platform Conference & Exhibition Indonesia
Find out more about our 2024 AIBP Conference and Exhibition in ASEAN
47th Edition, AIBP C&E Malaysia, W Hotel KL, 4 - 5 September 2024
48th Edition, AIBP C&E Philippines, City of Dreams Manila, 17 - 18 September 2024
You can also find out more about takeaways from the 45th Edition in Bangkok Thailand.
