Spurring Innovation & Digitization in the Disruptive Era

Kamis, 01 November 2018 | 16:35

Picture : Director M. Haryo Yunianto of PT Pertamina (from left), President Director of PT Bukit Asam (Persero) Tbk Arviyan Arifin, President Director of PT Sucofindo (Persero) Bachder Djohan Buddin, Restructuring and Business Development Deputy Aloysius of the Ministry of State Owned Enterprises Aloysius Kiik Ro, President Director of PT Semen Baturaja (Persero) Tbk. Rahmad Pirbadi, and the President Director of PT ASDP Indonesia Ferry (Persero) Ira Puspadewi, gathered hands after the signing of the Cooperation Agreement in the National Leaders Meeting in Jakarta, Monday (22/10)

The 4.0 Industry has become a necessity in the industrial world including companies which engage in the survey services sector. Entering 62 years old, PT Sucofindo is required to intensify innovation, digitalization, and consolidation. Coinciding with the 62nd anniversary, Sucofindo held a series of events ranging from the signing of the State Owned Enterprise synergy document, to the national leadership meeting which had the theme of Innovative Growth and Digitizing Business Processes.
The event which took place at Graha Nandika Sucofindo, Jakarta, Monday (10/22), was also attended by officials of the Ministry of State Owned Enterprises and the Chief Executive Officers of a number of State Owned Enterprises. SOE Minister Rini M. Soemarno, in her remarks represented by the Restructuring and Business Development Deputy Aloysius Kiik Ro, stressed the big theme of the 4.0 industrial era which was considered to be irreversible. The government as a shareholder of Sucofindo conveyed four main issues concerning digitalization in the 4.0 industrial era. Aloysius explained that the first characteristic is the application of vertical networking. According to him, this feature presupposes that the network no longer has barriers or hierarchies. That is, the network no longer sees whether one is a head of a division, member of the board of directors, or other parts of management. Thus, the scheme emphasizes the importance of the output produced by an individual. “So vertical networking is what you can make and is not who you are” he expressed. Aloysius called the next feature of the 4.0 industry horizontal integration. One example of this concept is the synergy of Sucofindo with fellow SOEs which provide survey services.

He considers that what had been done by Sucofindo did not need to be done by PT Surveyor Indonesia (Persero) and PT Biro Klasifikasi Indonesia (Persero). Thus, the three of them can focus on enlarging their shared market share. The third characteristic of the 4.0 industry is reengineering up-close functions. It is of the belief that it is time to leave the paradigm that human resources (HR) merely exists as a supporting element. “Without human resources that are ready, the company can be destroyed by fierce competition,” he explained. Aloysius gave an example of SOE’s that were included in the portfolio owned by the Restructuring and Business Development Deputy. The lessons learned is that many companies were destroyed because of the HR element ranging from members of the board of directors to employees. According to him, a number of companies that went bankrupt were unable to read the condition of the competition which was getting tougher. Being overwhelmed by this condition, the pace of the corporation has not led to sustainable growth. Therefore, acceleration is the fourth characteristic of digitalization in the 4.0 Industry. Companies can no longer be good only at home but it needs consolidation to participate in global developments.

Aloysius urged that it is time to consolidate for State Owned Enterprises in the survey services sector. This is to boost the market share to be 30% greater and higher. The highest form of consolidation, he continued, is in the form of State Owned Enterprise Holding in the field of survey services in Indonesia. Currently, the preparation process stipulates that the concept of SOE Holding in the field of survey services is targeted to be completed by October 2018. Overall, the formation process is targeted to be completed by mid-2019. Aloysius revealed that in the consolidation scheme Biro Klasifikasi Indonesia will become the holding company. In which Surveyor Indonesia and Sucofindo will become subsidiaries. Nevertheless, he said the Biro Klasifikasi Indonesia did not necessarily control the two state-owned companies aforementioned. He said the three SOEs would gather strength to increase market share. "In the history of the three SOE’s, they are quite advanced and still developing, hence now is the time for consolidation," he added.

Product Innovation

On the same occasion, Sucofindo’s President Director Bachder Djohan Buddin delivered a number of strategic directions for the company. The national leadership meeting was held to commemorate the performance and evaluation of 2018 and preparation of the company's work plan and budget (RKAP) 2019. Bachder revealed that the National Meeting was also the closing of Sucofindo’s 62nd anniversary event which was filled with various events such as the sports and arts weekend, and family gathering. At the opening of the national leaders meeting, Sucofindo also signed a memorandum of understanding with PT Pertamina (Persero), PT Bukit Asam Tbk., PT Semen Baturaja (Persero) Tbk., PT ASDP Indonesia Ferry (Persero), and PT Waskita Karya Realty. He stressed that the era of disruption is unavoidable. The company is required to adapt and compete. "We at Sucofindo react to it by consistently developing digitalization of business processes," he explained. Bachder explained that the company continues to innovate products and processes to improve competitiveness. In addition, digitalization of business processes is also encouraged to support operational activities and customer convenience. "Internal improvement is consistently being carried out by involving all of Sucofindo's personnel, both the head office and branches,”. To continue to strengthen the company, he said at least there are five strategies that must be done. Meanwhile, these moves are namely business growth, business innovation, digitalization of business processes, synergy of subsidiaries, and the development of capacity and capability of resources.