Digital transformation has emerged as a major driving force for economic growth and innovation. Hence, Indonesia has made massive efforts in digitalization through several initiatives to embrace advanced technologies, particularly automation.
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Digital transformation landscape in Indonesia
The globalization era has made digital transformation crucial for every country, and Indonesia is no exception.
According to a recent study by Innovate Indonesia, Indonesia’s economy could gain as much as $2.8 trillion by 2024 through an expanded digital economy. Besides, digital transformation is forecasted to facilitate the country’s economic growth to reach 6.2 percent by 2045. In Indonesia, digital transformation is also a key to achieving “Vision Indonesia 2045,” with the aspiration to maximize the digital economy’s potential.
Deputy Minister of Communication and Informatics (Kominfo) Nezar Patria said that digital transformation is a key aspect for Indonesia to reach its goal of becoming the fifth strongest economy in the world. “Digital transformation is predicted to be able to encourage national economic growth and enable Indonesia to become the country with the fifth-strongest economy in the world,” he shared at the National Digital Transformation Index Seminar.
How does Digital transformation drive the adoption of technologies in Indonesia?
Indonesia’s efforts in supporting disruptive technologies in the transformative age
The Making Indonesia 4.0 program, launched in April 2018, is designed to enhance Indonesia’s competitiveness in the Fourth Industrial Revolution by harnessing the power of disruptive technologies.
Besides, the Indonesia Digital Vision (VID) 2045 program is a multi-layered strategy to transform the nation into a digital powerhouse. Through this program, the adoption of technologies is the key to supercharging various sectors. Also, this empowers ICT businesses in Indonesia to actively shape the nation’s technological innovation, inclusion, and growth.
Automation and Artificial Intelligence (AI) hold immense promise for Indonesia to redefine the labor market landscape. This wave of innovation is expected to enhance efficiency, economic growth, and the creation of new job opportunities.
Capturing Indonesia’s automation potential
PwC’s 2023 CEO Survey Report reveals that 76% of CEOs in Indonesia have invested in automating processes and systems. The report indicates that a comprehensive digital business model will be crucial to facilitate the change.
McKinsey shows that automation has a high potential to increase efficiency and GDP growth in Indonesia. Besides, technology can bring about higher earnings and job openings for workers and business opportunities for organizations. While automation could replace 23 million jobs in Indonesia by 2030, it could also create between 27 million and 46 million new jobs in the same period.
RPA development in Indonesia is on the rise. Several multinational corporations operating in Indonesia have already started their RPA journey, particularly in the finance industry. PwC revealed that 74% of CFOs are considering the accounts receivable processes for automation in the future, while 13% are currently implementing RPA for automating purchase requisition and purchase order processing. Besides, 78% of the CFOs are considering RPA for segment/profit center reporting and 74% are also considering adopting RPA for customer profitability reporting.
Identifying quick wins for automation implementation
Start small, then scale
Instead of trying to automate all processes at once, start with a pilot project involving processes and departments that deliver quick wins. This allows for testing and redefining the automation solution before expanding the initiative. Prioritize processes that are repetitive, rule-based, high volume, and time-consuming.
Once the pilot project shows positive results, build a broader roadmap to expand automation to other areas of the organization.
Focus on business goals
Automation initiatives should focus on business outcomes. Therefore, before embarking on automation, businesses should set specific goals, such as reducing operating costs, improving compliance, or leveraging customer experience.
“Implementing RPA should be treated as a corporate-wide initiative, not a series of stand-alone projects that may/may not align with corporate goals.” – Sri Raju, Smartbridge CEO.
Define and implement a governance model
Businesses should establish development, deployment, and maintenance for effective automation governance. This involves standards, roles, controls, and responsibilities that ensure the bot’s quality and performance across the organization.
Develop talent and skills
Adopting new technology requires new technical skills. Hence, it is critical to take a proactive approach to raise the skill levels of citizen developers and robot supervisors.
Some training methods include providing workshops to raise awareness about automation and its benefits for leaders and employees, training for IT departments, etc.
Combine automation with other technologies
To further optimize the power of automation, businesses should consider integrating the solution with other advanced technologies. This can maximize the scope and scalability of automation potential, facilitating end-to-end automation within the organization.
For example, RPA and Artificial Intelligence combination can provide unique opportunities for businesses to streamline workflow and allow sophisticated automation. Meanwhile, RPA and Process Mining can facilitate businesses to dig deeper into processes, and limit disruptions in the deployment process.
Monitor and measure performance
It is crucial to constantly assess the bot’s performance. This ensures businesses identify and handle any bottlenecks or issues in the process for better results. Businesses can utilize several tools and techniques to keep track of automation systems, such as dashboards, analytics, and reporting.
How automation unlocks new possibilities and operational excellence for enterprises – Real cases with remarkable results
These real cases below demonstrate how automation can significantly empower businesses to transform their operations. These notable cases will be examples for DX leaders in Indonesia to seize the opportunities and revamp their processes.
#Case 1
SCSK is a system integrator headquartered in Japan, owning 14 branches nationwide and in 7 other nations. The company implements multiple projects per month, putting a massive workload on back-office departments such as procurement, finance, recruitment, administration, etc. At the same time, SCSK has a high demand for delivering the best service to its clients through advanced solutions and beyond-expectation experience. Since all the tasks were still conducted manually, mistakes and inaccuracies were inevitable, especially at peak times like the end of the month, quarter, or year. The efficiency, therefore, remained a huge concern for managing levels.
From experiences and expertise in IT, the Japanese enterprise soon realized RPA might be the key to the problem. With a long-lasting collaboration, SCSK EU chose FPT’s RPA platform, akaBot, to actualize its automation vision.
Highlights
- 4 weeks for completion – proof of akaBot’s Fast Automation
- 75% of effort on month-end reporting saved
- 75% of processing time reduced
- 85% of the credit approval processes automated
- 100% of product data collecting automated
- 100% of the credit approval process automated
#Case 2
Another successful story is about a state-owned enterprise in UAE that applied RPA for operational agility.
As the nature of operation in public-sector enterprises, there are several backward relating to traditional mechanisms that result in low productivity and flexibility. The repetitive manual work makes it hard for the enterprise to allocate human resources and utilize human capabilities.
In early 2022, the enterprise applied the first process automation, automated buyer call-outs. Normally, the staff needs to conduct 100 agreement call-outs with a processing time of 5 minutes per call-out, which is a time-consuming and no-added-value process.
The first process automation with RPA showed some impressive results: 97% of processing time saved for the call-outs, 15% of buyer’s capacity freed up, at the same time setting the predefined time frame for the process and offering flexibility for urgent requirements. Following the first process automation success, 8 processes were automated for 4 departments (supply chain, finance, IT, warehousing) within a 3-year maintenance plan. The solution includes RPA, AI, and Analytics to optimize operations in other use cases: user creation, alert monitoring, system integration, daily/ weekly/ monthly reports, and document reading/ interpreting.
Highlights
- 70-90% of human effort saved
- 80-95% of human effort saved
- Inter-department automation with 8 processes in 4 departments
Wrapping up
Digital transformation is poised to have a profound impact on the Indonesian economy. As the Indonesian government focuses on the goal of being a leader in the global economy, there will be growing investments in digital technologies, particularly automation.
Identifying RPA as a key for Indonesia to stay ahead of the curve, businesses should develop best practices to ensure successful and sustainable RPA programs. Besides, having a holistic framework for RPA and other advanced technologies adoption is imperative in advancing Indonesia’s digital growth significantly.
References
Indonesia holds perfect momentum to bridge the digital divide to foster transformation
Robotic Process Automation for Finance Function in Indonesia
The technology trends that could turbocharge Indonesia’s economy
Automation and the future of work in Indonesia
12 Steps to Robotic Process Automation Adoption: A Practical RPA Checklist
akaBot (FPT) is the operation optimization solution for enterprises based on the RPA (Robotic Process Automation) platform combined with Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 21+ countries, across 08 domains such as Banking & Finances, Retails, IT Services, Manufacturing, and Logistics…, akaBot is featured by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, etc.
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