Pertamina: Powering Indonesia's Data Driven Energy Transition

Guest: Sigit Pratopo, Senior VP of Integrated Enterprise Data and Command Center, Pertamina

In this episode,Pak Sigit, shares how Pertamina, Indonesia's largest energy company is using data intelligence to transform its operations. With the philosophy that "data is energy," Pertamina is leveraging analytics to optimize its traditional oil and gas business while accelerating renewable energy growth. From AI-powered fuel station management to predictive refinery analytics. Pak Sigit discusses how Pertamina is using technology to balance energy accessibility with sustainability goals. Discover how Southeast Asia's energy giant is charting its path toward a data-driven, low-carbon future. 

Established in December 1957, Pertamina is Indonesia's state-owned energy corporation with US$75.9 billion (2023) in revenue, playing a crucial role in the country's energy sector.  Pertamina produced 566,000 BOPD in 2023, marking an increase of approximately 10%. As part of its dual growth strategy, the company is balancing traditional energy operations with renewable energy expansion, setting an ambitious target to reduce greenhouse gas emissions by 32% by 2030

Transcript

0:02

The aibp ASEAN beach to be 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. You Valerie, hello and welcome to the aibp ASEAN B to B growth podcast, where we sit down with individuals responsible for driving growth of their businesses here in Southeast Asia. My name is Valerie, and today we have with us. Park ignatia, Sigit protopo, Senior VP integrated enterprise data and command center at Pertamina, sharing more about how data innovation for dual growth strategy to a low carbon business at Pertamina is being done. Pertamina is Indonesia state owned Oil and Natural Gas Corporation established in 1968 and plays a crucial role in the country's energy sector by managing upstream and downstream operations supported by the various subsidiaries and joint ventures. So Pertamina is a winner of the 2024 ASEAN Indonesia enterprise innovation awards in the data and AI category, with their case study on a breakthrough analytics initiative for enhanced control of government subsidized fuel distribution, and without further ado, maybe I'll just hear from Pak sagit himself for self introduction, maybe you could share a little bit more about your role, background and your current responsibilities as Senior VP of integrated enterprise data and command center at Patta. Minak, thank you. Valerie, good afternoon, everyone. My name is the United secret protocol. Right now I'm in charge for the integrated enterprise data and command center for Pertamina. Pertamina is the one of the dead on enterprise, as MUFA already mentioned before. So we are overall, is actually responsible for the providing energy for the country of Indonesia. Just a bit before I introduce myself, I'd like to say thank you again for to the IBP that provided us with the, I would say, great experience of of the award in the data and AI that was presented in August. So this is, you know, our use case was about using our data to deliver outcome for pretaminant and also for the country of Indonesia. So thank you again for that. So introduce a bit about myself. I've been in the oil and gas or energy industry for over than 27 years, domestically, in Indonesia and also overseas, in the oil and gas, upstream, midstream and downstream, onshore and offshore. In area of digitalization, data analytics, engineering, construction, project management, production operation, portfolio management, business performance management, organization, transformation, supply chain management, and also business intelligence. So kind of running up all the kind of business processes within the oil and gas and energy industry. So in my current role in with Pertamina, actually the integrated enterprise data and command center is kind of a digital function in Pertamina. So we are the team or function in Pertamina, get orchestrating, driving the growth, the development of the whole capability in digital for for Pertamina, for all the businesses under the Pertamina group. So this is the function that I've been leading Since 2021 so we are in the basis of developing Foundation, also now scaling up our capability in digital and analytics, including using of machine learning, artificial intelligence and technology along with it, that's a bit about what myself thank you. And you mentioned quite a number of different roles you've had experience with in the past 27 years or so, and I think for the regional and international audience, tapping on your very wide experience within the oil and gas industry. Could you provide a brief overview of Pertamina, introduction and history and its position within the Indonesia energy landscape? Yeah. Okay, thank you. Yeah, Pertamina, as I mentioned. And also Bucha you mentioned, Pertamina is the state owned enterprise company, basically in Indonesia, delivering energy for for the country. Just a bit correction you mentioned about Pertamina was actually established in the 1957 in December. So this coming December, Pertamina will be 67 years in the national wide company, providing, firstly on oil and gas. So starting in 57 even though starting in 57 the nucleus of Pertamina. Core business was established back in 1950 but in the formal communication, formal public information, we said that December 57 is us that we are starting establishing the company right now. We are kind of a holding company. We have six sub holdings underneath that we manage through the holding that we are managing the upstream business, gas business, Levine and petrochemical business, commercial and trading, which? When, when we also manage the retails of our products, marine and logistics, when we ship all of our crude and also products of our binaries, product to the to the country and the new and renewable energies that include of the new energies, name it, like solar, geothermal, those kind of stuff that we have also in part of our energy business, and along with it, pertaining also has many subsidiaries. So total, we have like 140 something subsidiaries that includes the business around hospital, airlines, hotels, etc. So we kind of having the kind of portfolio as well portfolio in our business. So it's kind of huge, not only energy, but we are focusing on energy, as mentioned before, previously, we are focusing on fostering energy resilience in dual growth that we are going to do, which is the oil and gas legacy, and also New and renewable energy. Thank you for the introduction. And you mentioned that you know, focusing on energy, so I like to tap a little bit into that. Could you give us a brief overview of, say, your opinion or Outlook on the oil and gas sector, both globally as well as amidst the focus on energy transition. And you know how Indonesia is different from the region or even globally from your perspective. Thank you for that. That's really great questions. And it's been the, I would say, energy transition has been the topic for you know, been been topic for years, since two, three years ago. And I think about the same thing in Pertamina, but in global I think the global energy transition is kind of a bit of balance in my in my take between the oil and gas and also the Low Carbon, right? So it's kind of a mix right now. It has been the, I will say, the top players in oil and gas now, they are trying to put more of the new energy into their portfolio, preparing for themselves to be able to provide sustainable energy going forward. I think that's what actually in my take in in our engagement, my engagement with the top leaders, with the leaders of the energy companies for port Tamina, that's going with similar so we are trying to put a balance between maximizing our legacy oil and gas business. We wanted to continue expand in that because the country still need the fossil energy. But at the same time, also developed a foundation for us to continue growing in the new and renewable energy, basically. So our geothermal, for example, is kind of strong in the foundation, for example. So this is one of our growth that we are going to go forward. We are looking toward the implementing the hydrogen, green hydrogen. We want to also expand our solar, expansion in the solar for the battery and things like it. So we want to, we want to do that as. Well. But again, I mean, the legacy business is still that we need to expand, and protagon also going going global on the fo sales energy as well there. So I think that's kind of perspective. Energy Transition is not going to go to the right path. I think it's going to be passing toward the maximizing the legacy oil and gas business, trying to manage the emission and at the same time growing or developing the new energy and renewable energy. And for for later on, we transition into thank you and going through the same thread, you know, it leads us nicely into the next question, which will tap on your head in integrated enterprise data right and command center, how do you think patamonia can leverage data analytics and your command center capabilities to identify new growth opportunities in the different business areas or even segments that you mentioned earlier, in terms of, say, new renewable energy, as well, as, you know, maximizing the current legacy all and guest assets that you already have. Okay, thank you. That's another great questions. So I'll start with this, our belief, and this is, this is our, I would say, the spirit of us growing developing the data for protaminer, and use that data to deliver outcome for protaminer, for us, data is energy. So data means energy. Mean that we can transform the lacks energy. We can transform data into more valuable fall, right? So that is how we manage the data going forward. So we manage the data and make it just not only information, but also insight and also the outcome, the value creation for the company in the what we have done, basically, we use data and for Pertamina, this is kind of a baby step that we that we did, that we had been doing since last year. So we use our our data to turn it into the outcome. And that's the use case that we presented to the AIB, basically when we use the fuel transaction data, and to be able to manage our subsidized fuel. So based on the data, basically the million of million of our data that we have, using our acceptance signal in with the AI algorithm that we have, and then sending out the signal to the anomaly signal to the person in charge to be able to mitigate that's one of it. So turns the data into value. The cost avoidance is huge, and we have been also used the data from our Iots for the photovoltaic the solar system, solar electric generation from the solar system that we use, basically, we detect the performance, you know, the data from the IoT to keep the performance to optimal, optimize the performance of the solar PV. There's one other aspect as well, at the same time, by improving the performance, then the usage of the electricity from the solar PV increasing at the same time it reduced the emission. Because we can, we can, you know, reliably using the electricity from Ho default, like not from the gas turbine, for example, for our operations. And this is we are going to continue. And as I said before, data is energy. So now we are developing a pipeline of use cases of our businesses, value chain of businesses from upstream. The Vanner is downstream, retails, gas, new renewable energy, and we are looking to work how we can use the data to improve even to generate revenue, new revenue, revenue growth. Basically, that's our target going forward. So yes, we are now maybe step from last year, but we are going to accelerate going forward with the use of that of data, and we will involve more and more people in within pertaminant group, not only my group, not only the enterprise data and comment center, but we will embrace our sub holdings, and to be able to also use their data to not only improve their efficiency, but also to look into new revenue based on the data that they have. So that's actually our our plan going forward for the growing of. Gene faci, you mentioned looking at upstream, downstream, retail, renewable energy, the various different business segments that you you plan or the company plans on capitalizing on. Are there any specific KPIs or key performance indicators or metrics for each specific, I would say segment that you're looking at. So for example, upstream is looking at a specific outcome. Downstream is looking at a specific outcome. Are there any key areas currently that Pertamina is watching or planning to capitalize on? Yeah, certainly, yeah, all with our holding being the orchestrator for the six sub holding that we have upstream, downstream and so on. We do manage this KPI performance in the key performance indicators every month in our, you know, pedically using that one, of course, aside from the safety that is kind of default for us, right? The safety aspect is really no that's no compromise on that safety force, and then going to the financial performance indicator and for throughout all the supporting that managed through the holding the investment that we need to continue monitor investment, upstream investment at the area, binary investment at the new renewable energy, to make sure that we will be having the our future right for the sustainable energy, keeping accessibility, affordability of energy for our country. And also the kind of operational performance, if you look at the performer, operational performance is, is if you have in upstream, we have a productions and sales performance, you are going going to the rivalry. You have the production in the product aspect, the crack spread, and also the sales aspect, the same as the downstream on retail, commercial trading, and also gas, so production, and then also sales. So that's kind of the kind of a key performance indicator that we put into our periodic monitoring and discussion within the board of directors. There and last one, which is, I would say the most important aspect, and going to your previous questions, was about decarbonization, right? So all along that we do, along with our strategy dual growth, while we are optimizing our operations to be able to deliver our products and our delivered ourselves performance. We want to make sure that we decrease emission. We want to make sure that we are providing our best effort for the decarbonization and earlier you made you said that there's a few things that you report in your monthly assessment, in your various assessments throughout the business. How is this integrated data approach helping Pertamina make informed decisions about where to invest or where to prioritize for future growth, especially, I think the last point you mentioned and highlighted about decarbonization, right? How is that supporting what you're putting your focus on, or what Pertamina is putting their focus on in developing in the next near future, maybe one to two years or so? Yeah. Thank you so much. Yeah. Let me just go back like two years prior. Our function was established. So there was kind of scatter in term of integrating the data. So it's not no single orchestration for that. So when we we exist, we starting with the integrating the data across the upstream, across all the whole value chain, basically with Valerie, so upstream, midstream, down downstream, kind of the first time after 65 years, we were able to integrate all that, all data. Here we are not yet there in the in the ideal, ideal state, we are still going to work to be able to integrate all and real time for that. So that back to your question about how we will going then later on, to to prioritize the investment right in the term of investor feature for for growth in area of renewable energy. So, as I mentioned before, so the energy mix is one, and we are, we are still, you know, our strategy is the dual growth again, on the legacy oil and gas and new and renewable energy. So in these two still need to be balanced. That aspect, we need to continue with optimizing fossil while lowering carbon emission and then growing the renewable energy, for example. Now we need to manage the capital expenditure. We need to manage our capability in the budgeting to to invest the best for the future. So again, the data that we have, by integrating the data that we have, we know, you know, how much money do we have, how to and then how much money, how much a portfolio in the project pipeline, that we need to prioritize. So those kind of two things that we need to balance over, and then going going on on, when and how and where we will invest. So it's kind of a the data helping a lot is part of decision support assistant that we provided to our board so that they can see, okay, so this is based on the value chain of the product of pertaining on the oil and gas value chain, also the new energy value chain, where we put our money for the investment for the future. So data, that data helps diving deeper into the integration of the data across pertainers. So the one data pertainer, how is the data being I think, in terms of quality on what you put onto the platform, how is it being maintained, or what were the factors that came into play when the platform was being built to ensure that this is something that you know can be used and can be skilled in the future for the entire organization. Okay? Thank you, yeah. First thing we have just started, what we call the data governance. Kind of started data governance that that we started last year and and, you know, integrated with our analytic foundation development last year as well. So data governance belong to the enterprise. It that they need to manage throughout the organization to make sure the data quality is secure or assured, and then the to be able for us in data analytics to use right and this facilitated using what we call the one data Pertamina Valerie, and that is how we manage Data, variety, complexity, diversity, all are managed under the govern governance of data governance to be able to provide the data that we can use for delivering values for, for for tangina, I think overall, we have not there yet in terms of being disciplined to make sure that our data, when we input the data, is the right data. But the with the governance and it can it can help. So we are starting developing and more and more quality data, more and more accurate data, so so that platform we can use it for. You know, even if you use generative AI or AI, we can use the right and high quality data to drive to deliver quality of outcomes, with regards to the university platform, as well as in the command data center. What was the I think most important, I would say, function or feature from the data management side that enabled you to support and build this initiative. So apart from just, you know, looking at data quality, what was the key? I would say, factors that were crucial for the success of such a platform at innovac, yeah, first thing when we implemented the innovac for the first time, we did that with the using the existing platform, which was part of one of our subsidiary, and starting this year, we adopted the platform, meaning we rewrite the platform to be able to set up in the holding so that we can use this platform for all of our six supporting and other businesses. More flexible that way. We put that one for, for the problem itself, the data, data reside on, on prem, which is in protaminer data center, and then on the for the computing aspect, we link to the cloud to be able to to for the. Speed to deliver the value, you know, in computing side, because the university, how they it's worked, is actually take the data and then manipulating the data right, and then sending, I mean, to find out the anomalies, and then sending the signal to the pic. So the then that the most important aspect is not the finding the anomalies or exception or deviation, but how to communicate to send this one on a timely basis to the person in charge and that responsible to mitigate the deviation, and then that mitigation in particular is very important, because that is the step that create values. So if the deviation or anomalies or exceptions is not addressed, then it will later on be delivering, I would say, becoming a problem, issues for the business, right for the processes. So that's the most important aspect, the action toward the signal, and the mitigation is the one that very important. And this platform actually not sending out the signal outside of the digital workflow. It is still within the digital workflow, and then using that, using the apps later on, and using the iPad or the iPhone and phone of our people on the ground to be able to to do the mitigation, including closing up The signal in their hands, so it is in under a gadget, so something that is very easy to use. So again, the most important aspect is when the act upon the signal, and that mitigate the signal and causing all the the signal and with regards to, I think, along the way you mentioned, the key point is, you know, action and then the speed of the signal. Are there any current challenges that you know you wish you could resolve quickly? If there's a ideal case scenario, is there a primary challenge that you would like to erase or address immediately? Possible? Yeah, I think in that aspect there, you know, with the if I could reach out to the people on the side, basically, on doing their mitigating the effort, or acting, acting, the effort, but, but it's going to be, I would say, very, very quick wins. But Indonesia is, you know, long spot and just very in the area that cover by department in Your presence is so, so wide and and to be able to do so, we really depend on how quick our people on the ground, fixing, mitigating the deviation, right? So, if I can, you know, have the this more in terms of priority, it has to be a priority for people on the ground to fixing the deviation, because it helps improve their I would say, operation, their business. It is so And going forward, because people also we need to educate them. We give them, I would say, simple way, as simple as just, you know, doing, checking into their gadget and then making, following up the action from the gadget, and then after that closing, make a closure action on the gadget as well, as simple as that. So discipline is one. Personal Finance is also needed for for the people on the side to be able to to to close out the signal, and we do measure their performance and go Valerie. So not that you know, even though we are depending on how people react or act upon the signal, the deviation, we also measure their performance if they do not close or mitigate. It will be recorded in the system, and it will source to their management on the side, showing that okay, they are not profile performing the work that they need to do. And this one, this performance we put into our in our command center, in our dashboard, so that our high our board knows if they need to, later on, follow up with with the leaders of the each of the business leaders there. Yeah, we do. We do manage that one. That's a great point. You know, the people are required to actually execute and enforce. All of the technology or the solutions that you are driving out. So they are also very key to the success of the implementation of such an initiative. And I think in line with that, going back to looking at the different types of data that you use, as well as the different outcomes they are driving, are there any new data sources or sources of information in the past, maybe the next one to two years, that you think will be more valuable, most valuable, in supporting or driving this platform, or even tavinas growth in general, in the coming next two years, yeah, I think right now, in terms of back to our dual growth strategy on the legacy oil and gas. I think we do enough data that we have on the decarbonization and new energy. I think that is something that we need. We need to continue look out to our industry, basically look for the data that can help us out with with it. So let me give you example for the green hydrogen. For example, we we are renewed to that aspect that we wanted to grow in that aspect there, but we don't. We want it to grow in the in the path that will take us to the to the to the goal, right, and as that is new to us that we are going to later on, be sourcing the data from those that already been ahead of us, for example, hopefully we can get it through or through industry. Basically, you know our I know that our colleague within the new and renewable energy business, they kind of aggressive on acquiring new data for them to grow even fastly on their geothermal to go even fastly on their CCS, CCUS, for example, to grow fastly on their hydrogen or other type of energy, including solar energy, that we are going to grow. So even in my thinking, I think we need to continue in you know, and reach our data sourcing for the new energy and decarbonisation, I think, and you know, going back to what you mentioned about dual growth strategy, what are the organization's top concerns in the digital age? So, going back to, I think, in the digital age now, regarding AI, disruption and impact of AI on the business. What are your organization's top priorities and concerns that you see? Yeah, I think not only in pretamin, I think in Malaysia as well. I think the AI provide us kind of acceleration toward the the use of it right, the benefit, but also, at the same time, providing kind of risk on that. I think data privacy is one that is becoming a big horns on at the moment, because, you know, AI provide kind of open, open, many, I would say, Windows to be able for the people to get that. And so data privacy is one that we need to continue, I would say, increase in capability to manage. And I think that's number one. Now data breaches also kind of a bit, I would say general data breach is something. And the second, I think the best I mean, for our focus is to prioritize use of our data, our internal data. Basically, when we, you know, deal with the AI, when we deal with generative AI, for example, we are going to prioritize the use of our data because how you know, minimize the bias you know from from from the AI, is by using the fit for purpose data to to draft the solution with with AI. I think that's really the point now, because if not, then we are going to be disclosed to the number source of data that we need to that run our clean clients, and you know that we need to make sure that the data that We are taking, acquire is data that we that we need for our solution. So we need to more and more focus on using our digital data first for the aI think thank you for sharing the top two concerns that within the organization or even Indonesia has. And I think part. Of concerns. You know, one more thing is looking at the current use case, or current near term implementation of potentials for data and AI, where do you see key areas of focus in the near term for the new business in both renewable energy as well as for maximizing the current legacy oil and gas services that you already have to close up. Thank you the first one, and you have started this. We started with the proof of concept from last year. We are going to use the solution, AI solution, for the object detection. And I know that we have, like a new technology called the OCR, the optic characterization, right? But we that cameras is kind of a expensive we do have 1000s of 1000 cameras out there. We wanted to be able to again, to manage the distribution of fuel. And for that, you know, the long queue, the more queue that you have, will increase concern of our Indonesian people. So with the objectation using the not changing the camera become OCR. We wanted to be still using the same technology, but we want to use AI at the back and using the VMs for to be able to detect the queue, and then this queue will provide alert to our people on the ground so that they can later on addressing the problem. For example, if one station is too crowded for the people buying the same product there, using the object detection, it can send alert or notification to the other fuel station so that they can communicate each other, then they can disperse the crowd, so that it will reduce the concern in Indonesia, you know, that crowd in the fuel station can create many aspects as well, that, including the social aspect too, right? And also, you know, it's, it's a, I would say the fairness thing as well there. So by using the AI object testing that we will be able to monitor out 8000s of our field station across the country. So that that's number one that we are going to do. And we have started the proof of concept last year. Now we are working with the technology providers, with the cloud providers, and also with kind of a middleware provider as well, because this new technology of CCTV, for example, we need to, we don't want, again, if we change the that, we change the camera to become auger, it will be very expensive. So I we want to use the technology, and we want to use AI to extend the advance, the capability for the object rotation. That's one, and I think that's something that we want to continue doing. And the other aspect as well, we are going to use AI for the forecasting and predictions of our market intelligence on an crude and the product for our refinery operations. Because, you know, you know, the correct spread of the refinery is very important to be for the our refineries to continue providing business. You know, if and crude is 90% of the, I would say, the cost of our refineries. We wanted to get the right route that we can optimize a product, you know, either that is on the fuel product or non fuel product, including better chemical. So we want to use the this AI, meaning that we want to use the kind of market sentiment. We want to use the market data to be able to drive the decision using AI for the refund. Yeah, yeah. Just two example of it. Just example, yeah, understand. So first one is managing your services at your fuel station. Second one is more I think managing even cost as well as operations for your refinery plants Pertamina. Thank you very much. And I think to close us off one final question, maybe for yourself. Fauci git personally, what are you most excited for in say, for example, maybe data enterprise within Pertamina, or even the oil and gas industry? Is adoption of data and AI digitalization in the next maybe two to three years or so? Or do you have some advice for some of our friends out there who are looking at embarking on digitalization or data driven strategies within their organizations? Yeah, I would do one aspect there, as I mentioned, data is energy. So as energy, that's for me, is very excited. I would say, you know, knowing that, you know that previously the term was, data is new oil. But then also that's true, and then now it's data synergy, because we can transform the data into more valuable business, more valuable values, including the new generation of new revenue, or revenue growth. So that's why I'm really excited about about this role. And we just, I would say, pertaining, we just, I would say, started the journey so and we have so many opportunities going forward, the next three to five years even, and we are establishing this foundation of analytics and digital since last year, we wanted to sustain, maintain this momentum, and then, using the jargon of data is energy to more and more deliver use cases that will bring new generate a new value generation for the for the company. So not only optimizing the the efficiency, optimizing the operations that are cost saving or cost avoidance, but we are going to deliver the new revenue or revenue enhancement for the company. So that is the one that why I am very exciting about, excited about us delivering more and more, you know, working on the data side and detail side for, for per time and going forward. I think that's that's really basically that keep me, you know, energized for for us to move on our the new era of energizing innovation, I would say that is our going forward. Bucha, right? New Era for energizing innovation. I know I'm very energized now looking forward to keeping up with what you are doing, as well as what tatamina is going to do in the next couple of years in innovation and digitalization. So we hope to hear more in the future as well the IBP and looking for and all the best in the future plans that the team has. Thank you. I'm actually looking forward to meet you again, bu Valerie, and also hopefully in the next aibp event. Or, you know we can we can contribute. We can share our progress in that day. So thanks so much again for your time. Thanks again for this opportunity. Have a good day. 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, you.