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State-owned firms adopt ERP automation systems in Indonesia

More state-owned enterprises in Indonesia are utilising new automation systems to improve their services. According to a statement, Perum Perhutani, a government-owned forestry enterprise, is building upon its existing operations programmes by implementing project TREMBESI. 

This project is an Enterprise Resource Planning (ERP) system that aims to improve current Financial Controlling (FICO) and Human Capital Management System (HCMS) frameworks. The TREMBESI is a collaboration with PT state telecommunications firm PT Telkom. It was launched as an extension of an initiative to transform ecosystems toward a sustainable and innovative forestry business. 

The unveiling of project TREMBESI was made during the recent ‘Go Live’ ceremony. The event was attended by staff, representatives and top-rank officials of the two government firms, as well as tech teams that operate the TREMBESI programme. 

During the virtual conference, Wahyu Kuncoro, President and Director of Perum Perhutani, said that the project adds to the vision of the Ministry of State-Owned Enterprises of ramping up what is referred to as Technology Leadership. 

While the introduction of ERP in business settings is not new in the arena of technology and company management, it can still contribute to development in business processes. He added: “It is a little slower than other large [applications], but it is never too late to initiate changes and improvements.”  

He mentioned that project TREMBESI runs on two initial modules, FICO and HCMS. In choosing these modules, the state-owned company noted that these can further shore up their old systems and allow them to fully monitor human resource systems and track the movement of funds across all work units. 

Budgeting through these modules can also be made more efficient by providing detailed accounting. By employing an ERP management programme, business evaluation can be made more seamless “whether in a profit or loss situation.” The new project is likewise anticipated to produce more results and allow for growth and sustainability in the long term. 

At its core, an ERP software boosts business operations in various scales: inventory and order management, accounting and customer relationship management, among others. When this software is used, it integrates all these functions into one coherent system. The result is improved processes and flow of information in an entire organisation. 

The main feature shared by all ERP systems is that it offers a shared database that can support several functions. Put into context, employees in different departments can use the same programme to complete their tasks. The ERP platform offers synchronicity and automation by doing away with separate databases and focusing on encoding and merging these databases in one system. 

The ERP is being used mostly by small enterprises but several bigger businesses have adopted this platform to enhance corporate frameworks. This programme has improved today to cover business intelligence and other office functions like sales and marketing automation and e-commerce.  

The Indonesian government has initiated efforts to hasten economic growth amid the COVID-19 pandemic by infusing state capital injections to several state-owned businesses and state agencies. Recent reports announced that President Joko Widodo has inked orders last year to disburse almost IDR 37.07 trillion (US$ 2.63 billion) to four government-owned enterprises. 

The disbursement of funds by the government to state enterprises is in line with objectives lined up to spur economic growth by accelerating towards digital transformation. As cited in an earlier report by OpenGov Asia, the Ministry of Industry said they are optimistic about hitting an economic growth of 5.5% this year. This is on the back of multiple policies aimed at developing the digital economy and other reforms to help mitigate the impacts of the COVID-19 pandemic.

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