Generative AI in Indonesia : How is PLN tapping on GenAI on its path to net zero emission?

In this episode, Pak Suroso Isnandar, Director of Risk Management, PLN (Perusahaan Listrik Negara), the Indonesian state electricity company shares how PLN, is leveraging Generative AI to enhance operations, predict energy demand, and facilitate the transition to renewable energy sources.
Pak Suroso also  shares valuable insights into PLN's approach to digital transformation, its collaboration with technology solution providers and offers advice for other organizations embarking on similar journeys.

Transcript

Voice Over: 0:02

The AIBP ASEAN b2b growth podcast is a series of fireside chats with business leaders in Southeast Asia focused on growth in the region. topics discussed include business strategy, sales and marketing, enterprise technology and innovation.

Unknown: 0:28

Greetings and welcome to the awesome b2b growth podcast. In today's episode, we shine a spotlight on generative AI in Indonesia. This series of conversations of Indonesian business leaders took place during the IBM consulting forum on the 29th of November 2023.

Suroso Isnandar, PT PLN (Persero): 0:52

Morning, thank you for joining me today. Pak today I'm joined by Pak Suroso Isnandar from PLN which is correct me if I'm wrong. Yeah, Pak Perusahaan Listrik Negara. That's right. So, Pak Suroso will be able to introduce himself much better than I can. So, Pak maybe you can just introduce yourself as well as PLN Okay, thank you. My name is Suroso I am working for PLN PLN is Indonesian state electricity company in PLN. I'm managing the risk management and also the IT so I am the Director of Risk Management and IT so PLN is Indonesian utility company, the structure of electricity sector in Indonesia, it is heavily regulated industry with the tariffs still subsidize with limited competition on the generation side, but on the transmission and distribution side and retail, it is hold by PLN. So we are talking that PLN serving 270 million population in Indonesia, and our customer base are 87.5 million at the moment, and it is adding up by 3 million every year. So our install capacity is more than 60 gigawatts, and at the moment, our total revenue is around a 20 billion US dollar every year.

Irza, AIBP: 2:11

So it's a very big organization with very primary and important responsibility, especially in one of the fastest growing countries in the world. Pak Suroso let's talk about, you know, this rise in generative AI this year, I think there's been a lot of interests, because of Chat GPT so everybody knows, Gen AI now, within PLN itself, how are you actually looking at this? Gen AI both in terms of you're the Director of Risk Management, as well as for technology as well, right. So that's complementing responsibilities that you have, right.

Suroso Isnandar, PT PLN (Persero): 2:45

So, well, we are in PLN watching closely and the development generative AI, especially starting from the last three years PLN launching the business transformation, we have 29 business transformation of PLN and 26 of those are digital transformation. So pretty much the transformation based on our digitalization approach. So we digitalization the way we do the business with changing our business process, we apply that on the customer service experience. So to improve the communication with customer and all in that we also looking at the operation as well, how are we gaining higher efficiency by introducing digitization platform and the good thing about the electricity business is the electricity cannot be stored in large energy that means that the consumption have to be served by exact production at the same time. So looking at that the prediction on how the demand will behave, it will also one important part of the digitalization program of PLN. So that's why our digitalization our digital transformation, we have 26 transform is initiative and encompassing from the how to improve customer experience up to the operation efficiency. And not only that, if we are looking at the future. Now, we are looking for the energy transition. Basically Indonesia and PLN is committed that by 2060 we have to achieve the net zero emission. That means PLN have to replace the existing thermal power plant and moving into renewable energy. And for the new customer who are joining us the new demand which will be growing over time, we have to serve by renewable energy and there's a very huge plus. And we look at how the generative AI can help us in this thing. It can help us first incorporating into end to end smart grid where we can mean it's not only demand fluctuation but also sources of fluctuation and also looking at the way We predict the future demands and including on the way we handle and improve efficiency on the renewable energy sources. So this, this way, the generative AI is very important for our digital journey. And, and we are closely watch the technology. And at the moment, PLN is at the stage of trying to do some pilot project on introducing the generative AI into our process, business business process, I think

Irza, AIBP: 5:27

you've mentioned quite a few things, you have so many digital transformation projects going on, you're watching new technology. And obviously, you are using all of this to deliver a service to Indonesia, a very important service as well. How do you actually keep in touch with all these changes that are happening happening very, very quickly in such a large organization? And how do you work with external technology solution providers such as IBM or IBM consulting? How do you actually work with all these external companies, right,

Suroso Isnandar, PT PLN (Persero): 5:57

we embrace and open our arms to communication with all those ecosystem, basically, we have a very good relationship with the IBM we have a very good relationship with SAP and also other technology provider, and we trying to involve in any information dissemination, they are doing like the one right now. So in order to make sure that we are not left behind and got in some of the information, and and we also on the regular basis, have in contact meetings with them. And, and therefore we are very, very open. And we always have a very good discussion surrounding on how we are going to implement the new technology to improve the PLN businesses at the moment, we are working with the IBM we are working with the SAP we are working with. So many provider, and because of the digital and it application, and PLN is so wide, from the generation side transmission side distribution side, we really need to be part of the digital ecosystem. That's why we are also reaching out for those who can provide any provider to speak and talk to us and we have discussion on it. Great.

Irza, AIBP: 7:13

Well, one final point possible. So I think, like PLN, I think there are a lot of large enterprises, government organizations in Indonesia, who are looking to do digital transformation. But there are a lot of white elephant projects, projects that don't really get anywhere. What would you say if you can just summarize, what would you what would be your advice to do these different kinds of organizations, especially now that technology is moving on so quickly?

Suroso Isnandar, PT PLN (Persero): 7:37

Right? First thing is look into yourself on the business process, identify which business process needs to be improved, starting with small, with a big impact, for example, in PLN case, we starting with the customer relationship improvement on how we are launching the PLN mobile apps, and we see and track those. And then after that we scale up after we learn from those, then we have to scale up a PLN is one of the biggest a state owned enterprise. In terms of the asset we are the biggest in Indonesia, and therefore what we are doing actually, we also have a forum with other SOEs we have a forum called Digital Forum, which is organized by Ministry of state owned enterprises in this digital forum. We normally sharing our experience, we learn from each other experience, we learn from each other's success, and also we learn from each other a failure. So you're asking what the advice in my view is, first, look at your business needs, that the very basic thing, look at what you need. And to do the assessment and identify what the company needs. Sometimes it's not easy. After that, then you have a whole set of the solution. And the other thing, which is very important is engage all the all the stakeholder in the company, otherwise, this going to be on the IT and digital project and not become business or corporate project, the key of the successful implementation if this project become corporate and business project and not a mere project from it, and digital people, so engage everybody, and also trying to Engage them as much as possible.

Irza, AIBP: 9:24

Thank you very much pak Surose. We have pak Suroso joining us today at the IBM consulting forum. And thank you once again, I look forward to continued growth by PLN. All the initiatives you're

Suroso Isnandar, PT PLN (Persero): 9:34

doing Thank you very much. I'm delighted to be here. Thank you very much.

YY Fong: 9:38

Stay tuned for more insights on generative AI in Indonesia in the upcoming episodes.

Voice Over: 9:46

We hope you've enjoyed the episode. For more information about business growth in the ASEAN region, please visit our website www dot IoT business hyphen platform.com