Generative AI in Indonesia: MIND ID's Journey in Modernizing Mining with AI

In this discussion, we're joined by Pak Ridwan Tahir, Head of Strategic Business Unit ICT, Mining Industry Indonesia  (MIND ID) who will be sharing how advanced AI technologies can be integrated into the operations of one of Indonesia's key state-owned enterprises. Learn how MIND ID, with its diverse subsidiaries including ANTAM, Bukit ASAM, and Freeport, is centralizing its IT operations to drive efficiency and innovation across the board.

Transcript

AIBP Intro: 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. Greetings and welcome to the ASEAN B2B growth podcast. In today's episode, we shine a spotlight on generative AI in Indonesia, this series of conversations with Indonesian business leaders took place during the IBM consulting forum on the 29th of November, 2023

Irza Suprapto: 0:52

Good morning, and today I'm joined at the IBM consulting forum with Pak Ridhwan from Mind ID as usual. I think Pak Ridhwan on will be able to introduce himself much better than I can. So Pak Ridhwan, can you just quickly introduce yourself and the company you work from?

Ridwan Tahir, MIND ID: 1:07

Okay, thank you. So I'm coming from the MindID in the industry in Indonesiia. So is a SOE holding company. Is like, we have a subsidiaries In Antam, Bukit Asam, Timah, and also in alum and the last a free port, and also the valley. But in terms of the Free Port is not consolidating it, just operating by the Free Port holding. So just join in the Mind ID is 2021 so I'm coming from the private sector into the SOE sector is a very different and my role right now is head of strategic business unit, ICT, so it is starting like centralizing the it not only for single right now the it is a distribution so every subsidiaries have the owner of it, but ladder will centralize all the it in terms of the managing licensing network and so on. Then the be quite challenging is the subsidiaries. Is older than holding. It is like a step further because of the holding. It just arise on the 2017 Okay, in terms of the split of itself, just taking on the 2023 so the previous sign is in ALU, there's no guarantee. And then we have a new one split off with the mind ID mineral industry in Asia,

Irza Suprapto: 2:27

okay? And obviously mining and mineral industry in Indonesia is quite an important sector historically as well. And it's interesting that we are here today at a forum talking about Gen AI. So how do industries, traditional industries actually look at new technologies, such as generative AI, what? What is your view on that? Okay,

Ridwan Tahir, MIND ID: 2:47

I think when we are joined in 2021 so the parenting style, how we govern the subsidiaries, is the strategic, strategic. And in 2022 we move to shifting to the strategic, active. So we want to understand more how the process of the data and so on, how the process process and so on. Then the what happened is, when we are trying to in 2021 we are creating what we call a management control tower. So we getting, we collecting the data coming in from the subsidiaries, and then we give the data into the director. So what happened is, when the director see the data is a very get a bit out, okay, this is holding company. Love the company level because of the data sometimes coming in from the system, but the other times it's also coming in from the manual. How they collecting the data is not automatically, so the data is to update regularly the second one, and the second one is in terms of the process itself. Sometimes because of we have, just, like, acquire some of the date the companies, they already have a settles companies, then, like, a gun hammer session. So you had, they have a different chore for each of the subsidiaries, then we cannot, we cannot grouping into one level. Sometimes the different in this, they have a put a this is a deep bait, and then we cannot categorize. There are too many transformation of the data. Then it becomes like, Okay, if we put the AI, that will jeopardize all the things because of the if the data is wrong, then also the decision is also wrong, then what happened in the for this year and for next year, we plan to having, like, integrated data management, so we are starting to back again to do the data strategy. First, what is, what the Board want to have, what they want to see what they want to get the future and so on. And after that, we are trying to get the data cleansing, data quality for each of the data. Okay, this data is coming from where and then who, will diminish the bodies and this on. And after we want to put the data governance. But parallel with this, we also doing the. We call a single ERP instance. So we are trying to pursue the data coming in from the single source, maybe for the process of the sdmm and so on. Material management, we just put on the one single ERP instance, so we have the same numbers, we have the same grouping and so on. And do like a charter for con harmonization, material master harmonization. So before we are moving into the Gen AI, then we need to set up the basic foundation first to make it the data is valid, and then, like, Can we do the direction to the next level for the Gen AI?

Irza Suprapto: 5:35

Okay, so that's exactly like what was discussed today, right? Gen AI, with guardrails so that the data that you get feeds into proper systems so that the output that you get is reliable as well perfect. And in terms of, you know, it sounds like a very complex thing, what you're doing, it works across different subsidiaries, old companies, reporting to the holding company. How do you actually work with external technology providers, like, for example, IBM?

Ridwan Tahir, MIND ID: 5:59

Yeah, actually for IBM is implementing the saps for HANA in mind ID before, in the 2021, we do the finance consolidation as well with the IBM. And then for the next after, we are consolidating the subsidiaries. So we are moved again to the subsidiaries of the subsidiaries, third and four subsidiaries to do the finance consolidation and the this year we also doing with the IBM, like budgeting and planning using a group reporting and also SAP analytics cloud, yeah. So we are very open with the external parties to discuss with us, to give us the expertise and then bring the values, because I understand, because maybe on the local company just have a limited resource and limited platform that already understand. But I think for the IBM or others that can give you a bring of failures, because a mine ID we are, we are, what we are like to try the new ones. For the example, in the Financial Consolidation 2013 we are the first to use a group reporting, okay? In Indonesia, okay. And then it is, I think, is a very Yeah. I think it's when we, when we are starting from the scratch, on the first and sometimes back and forth with the sap. And also the principle is coming in. But I think this is okay. Yeah, we are trying to do. But the second one, I think, is the very important is how we change the mindset. Because I think it says repertoire to you that the holding is younger than the subsidiaries, is a very hard leadership on the on the subsidiaries, and then how we embrace the subsidiaries to make it okay. This is what we want to do, and then so on. Okay? Because the reluctance is very high. They already have a system, they already have a process. Then we need to change the process, not like a click button to do.

Irza Suprapto: 7:52

Yes, yeah, I think that's something that's been brought up quite a lot. Change the resistance to change, and with technology moving so fast, we need to keep changing. All right. Thank you very much for joining me today. Thank you. Stay

AIBP Intro: 8:06

tuned for more insights on generative AI in Indonesia in the upcoming episodes. We hope you've enjoyed the episode. For more information about business growth in the ASEAN region, please visit our website, www.IoTbusiness-platform.com.