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This article is the third of a three-part series. You can read Part 1 and Part 2 here.
Indonesia faces significant challenges due to costly, outdated legacy systems that hinder infrastructure upgrades and have contributed to numerous cyber incidents in 2024, including a major breach impacting over 40 agencies. These incidents highlight the critical need for a proactive cybersecurity strategy to safeguard national security and public trust. By investing in modern, scalable infrastructure, Indonesia can enhance productivity, cost-efficiency, and security across both public and private sectors. Additionally, adopting open source solutions offers a practical, cost-effective approach to addressing legacy system vulnerabilities while fostering collaboration to strengthen cybersecurity.
The OpenGov Breakfast Insight on 20 September 2024 at The Westin Jakarta provided practical insights for building resilient cybersecurity practices while fostering innovation. This dual approach helps organisations adapt to the rapidly evolving digital landscape and achieve their future strategic objectives.
A distinguished panel of speakers provided practical insights on critical strategies for accelerating application modernisation and building resilient cybersecurity practices while fostering innovation. Hendra Setiawan, Vice President of Information Technology at PT ASDP Indonesia Ferry, Ridwan Tahir, Head of SBU ICT & Digitalisation at PT Sinergi Mitra Lestari Indonesia, and Erfin Feluzy, Senior Solution Architect at Red Hat, shared their expertise and valuable perspectives to guide organisations navigating these challenges effectively.
Hendra Setiawan, Vice President of Information Technology at PT ASDP Indonesia Ferry stresses the importance of selecting the right architecture, “We have to select the right architecture, such as event-driven or service-oriented architecture, to ensure interoperability.”
This choice is vital for ensuring that systems can communicate effectively and operate smoothly. He also highlighted the significance of scalability, noting that “the right technology” is essential for handling the demands of modern applications.
Drawing on his experience, Hendra emphasised the importance of establishing a solid strategy within an agile framework, stating, “We can’t rely on a waterfall approach all the time; the pressure is too great. We need adaptability in today’s fast-paced environment; organisations must embrace flexibility to meet evolving demands.”
Hendra’s insights not only illuminate the way forward for effective IT modernisation but also advocate for a collaborative approach to addressing the challenges of large-scale data and high-traffic applications. His focus on collaboration and strategic planning serves as a rallying cry for organisations aiming to strengthen their technological capabilities.
The modernisation of PT ASDP Indonesia Ferry’s IT infrastructure has successfully implemented best practices for managing heavy traffic applications and large-scale data processing.
To further enhance scalability and efficiency, advanced cloud-based solutions with optimised data pipelines are set to be introduced. This strategy will utilise real-time data analytics and robust traffic management systems, facilitating seamless services for millions of ferry passengers while advancing ASDP’s digital transformation goals.
In tackling the challenges posed by legacy system dependencies, Hendra highlighted the creation of a strategic modernisation roadmap aimed at mitigating risks without disrupting critical operations.
He highlighted the necessity of a strategic roadmap to maintain legacy system dependencies during technological upgrades. “We require both time and resources to implement the technology platform, making a robust master plan essential. This plan should span two, three, or even five years to facilitate smooth transitions.”
A key component of this plan is choosing the appropriate architecture. “First, select the right architecture, then develop a detailed roadmap for gradual implementation of changes. This is especially crucial for older companies like ASDP, which have multiple legacy systems. To replace one system with another, we must approach it step by step.”
To effectively manage legacy systems, Hendra recommended adopting a service-oriented architecture (SOA) along with a wrapper solution around the legacy system. This strategy allows organisations to progress incrementally without disrupting operations, stressing the importance of careful planning and execution when handling legacy technology.
Gradual decoupling of legacy systems through containerisation and microservices fosters a more flexible infrastructure that minimises downtime during transitions. This approach ensures that modernisation aligns with the organisation’s evolving needs while preserving system performance and reliability.
Hendra recognises open source technologies as vital to enhancing the resilience of ASDP’s IT infrastructure. In the next three years, the company plans to increasingly adopt open source tools to ensure data integrity, particularly for sensitive information, in compliance with industry regulations.
Hendra acknowledges the widespread belief that open source is more cost-effective but points out that while it may appear cheaper due to licensing, “from an enterprise perspective, ensuring that open source can support us without disruption” is crucial. There is a need to balance cost with operational stability and security when evaluating open source solutions during migration processes.
Summing up, Hendra underscored the importance of a clearly defined IT master plan to ensure that open source adoption aligns with the organisation’s goals. He emphasised the need for all stakeholders to share a common understanding, as differing views on IT can impede progress.
Implementing agile methodologies and choosing the right architecture are crucial for achieving seamless interoperability. Lastly, he highlighted the necessity of developing internal resources and competencies to effectively adapt to emerging technologies and trends.
By strategically combining cutting-edge technologies and a collaborative mindset, companies can create a robust and adaptable system that meets current operational demands while allowing for quick adaptation to emerging innovations.
Ridwan Tahir, Head of SBU ICT & Digitalisation at PT Sinergi Mitra Lestari Indonesia, highlighted that aligning ICT solutions with organisational digitalisation objectives, engaging stakeholders, and managing change effectively are key critical success factors for implementation. He is convinced that these elements are crucial for ensuring the successful adoption of ICT solutions that support the organisation’s digitisation goals.
First, Ridwan stressed the importance of leadership commitment. “Commitment from the leadership is vital. When leaders are fully engaged, it fosters buy-in from stakeholders. This buy-in is crucial because, ultimately, the solutions must serve the users’ needs. Without leadership support, even the best technologies can falter.”
Second, he focussed on the importance of change management, noting that it involves not only the implementation process but also ongoing support after the system goes live.
“Organisations must assess both user and IT readiness to ensure a smooth transition from implementation to operation,” he explains. “We often overlook this phase and only realise the challenges after going live. So there is a need for proactive planning to avoid operational issues.”
Third, Ridwan highlighted the concrete advantages of implementing new solutions, focusing on three critical areas: risk reduction, cost savings, and productivity gains. Achieving even one of these benefits significantly increases the likelihood of success for organisations.
By focusing on these outcomes, organisations can better align their ICT solutions with user expectations and enhance overall effectiveness.
To evaluate the success of application modernisation efforts, especially those leveraging open source solutions, it’s essential to track key metrics such as system performance, user satisfaction, and operational efficiency. These indicators provide a clear measure of how well the new solutions align with organisational goals.
Ridwan underscores the need for thorough financial planning when transitioning from legacy systems to open source platforms. A comprehensive cost-benefit analysis should account for data migration, training, maintenance costs, and potential savings from reduced licensing fees and scalability.
“We review the NPV, ROI, and ERR,” he explained, highlighting the importance of setting clear financial metrics from the outset. “This strategic approach ensures that both financial and operational aspects align with the organisation’s business objectives.”
PT Sinergi Mitra Lestari Indonesia serves as a shared service hub aimed at optimising costs and enhancing service levels across subsidiaries such as Antam, Asam, and LMDA. By consolidating operations into a “centre of excellence”, the company can streamline processes, reduce IT expenses, and ensure standardisation across platforms.
“We encourage using the same platform, to use the same DevOps,” Ridwan noted, “This approach not only cuts costs but also simplifies ongoing support and enhances operational efficiency.”
Strategic workforce planning is crucial for equipping teams with the skills needed to support and manage emerging technologies, ensuring a smooth transition and successful implementation.
Ridwan believes it is important to align team competencies with organisational goals, sharing insights on workforce planning initiatives vital for managing the shift from legacy systems to modern open source technologies.
“We must first identify the competencies needed to close the skills gap,” Ridwan elaborates. “This requires conducting a comprehensive gap analysis to pinpoint areas where upskilling is necessary.”
Acknowledging that traditional courses often lack effectiveness, he advocates for a hands-on approach by collaborating with experienced vendors. On-the-job training allows the team to gain valuable practical experience that enhances their skills.
Integrating roles such as product managers and scrum masters into real project environments enables the team to develop a deeper understanding of agile practices and DevOps methodologies. This approach ensures that the workforce is well-equipped to tackle the challenges of modernisation.
Ridwan shared five key metrics for assessing the success of application modernisation, particularly when utilising open source solutions.
The first metric he highlighted is performance management, stressing the importance of enhancing performance post-modernisation, as this is a critical concern for management.
The second metric focuses on uptime and reliability, which can be improved by transitioning from monolithic to microservices architectures. He explained that this shift allows for direct deployment without impacting other components, leading to shorter deployment times and increased system stability.
Security is the third metric Ridwan reveals, stressing that modernisation efforts must address existing vulnerabilities. He pointed out that filling these security gaps is crucial.
The fourth metric he identified is time to market, which is especially significant for state-owned enterprises (SOEs) where priorities can shift rapidly. He noted the importance of maintaining momentum and deploying solutions at the optimal moment.
Finally, cost reduction emerged as a key consideration, with Ridwan questioning whether upgrading initiatives are truly lowering costs or simply enhancing productivity.
Ridwan’s insights offer a strategic framework for organisations aiming to implement effective ICT solutions. His approach highlights the critical need to evaluate the overall effectiveness of modernisation initiatives, ensuring they achieve the desired benefits and align with goals. By fostering leadership commitment, managing change effectively, and concentrating on measurable benefits, organisations can navigate the complexities of digital transformation more effectively. This paradigm empowers organisations to make informed decisions about future investments and strategies, setting the stage for lasting success.
Erfin Feluzy, Senior Solution Architect at Red Hat, discussed how open source tools and methodologies can significantly improve performance during the transition from outdated legacy systems to modern infrastructures. He underscored Red Hat’s crucial role in facilitating this enhancement throughout the modernisation process.
“We help many enterprises and government entities navigate their digital journeys using open source,” he explained. “Our strategy encompasses not only technology but also the essential components of people and processes.”
Open source tools such as OpenShift, paired with robust DevOps practices, enable substantial enhancements in system performance. This combination streamlines workflows and accelerates development, ultimately leading to more efficient operations.
“One of the most significant transformations we achieve is migrating legacy applications to microservice architectures,” he asserted. “This shift can dramatically elevate transaction capabilities, increasing performance from a mere 10 to 20 transactions per second to an astonishing 2,000 transactions per second.”
Open source innovation and community involvement are crucial during the migration process. The collaborative nature of open source accelerates development, provides diverse solutions, and offers robust support through community contributions. Major technological advancements like Android, Hadoop, and Kubernetes originated from open source initiatives.
“Open source is more than just innovation; it requires skilled individuals to operate effectively,” he believes. “Open source is not merely a method; it’s a collaborative ecosystem. Human expertise and cooperation are intrinsic complements to the technology itself.”
Erfin also points out the critical need to maintain a strong cybersecurity posture during the application modernisation process, especially when transitioning to open source solutions. Balancing rapid application modernisation with robust cybersecurity measures is essential to safeguarding organisations throughout this transition.
As threats continue to evolve, Red Hat prioritises security by ensuring thorough assessments and compliance with industry standards such as CVE, PCI DSS for banking, and FISMA for U.S. government operations.
“We put extra, extra eyes for the security,” he says categorically. “We ensure that every platform adopted from the open source community undergoes rigorous scrutiny, including image and source code scanning.”
Erfin stressed that Red Hat does not simply take open source platforms from the community, rebrand them, and offer them to clients. Instead, Red Hat acts as both a contributor and a security assessor, stabilising and securing the platforms before delivering them.
“We implement standardisation processes such as scanning images and source code to ensure compliance,” Erfin explains. “These thorough efforts ensure that open source solutions meet the highest security and regulatory requirements, allowing organisations to adopt these technologies without compromising their cybersecurity posture.”
Erfin advocates for exploring strategies to ensure high availability and disaster recovery for legacy applications, highlighting the role of open source technologies in facilitating effective backup and failover mechanisms.
He strongly recommends the need for a comprehensive business continuity plan, alongside a robust backup strategy. Utilising platforms like OpenShift, which supports multiple service replicas, greatly enhances resilience.
“Our customers can have up to 100 replicas for each service,” he explains. “This redundancy ensures systems remain operational even in the event of instance failures.”
Automation plays a crucial role in streamlining disaster recovery processes. During drill tests and incidents, playbooks are employed to facilitate the transition from primary to secondary systems. This automation not only simplifies recovery but also minimises the risk of human error during critical situations.
By integrating robust infrastructure with effective automation tools, organisations can ensure their applications remain highly available and resilient, even amid modernisation efforts.
Red Hat has made a substantial impact across various sectors, including financial services and government ministries, collaborating with organisations such as Mandiri, BCA and leading banks.
Red Hat exemplifies a commitment that goes beyond simply selling products; it partners with customers throughout their journey to ensure the successful implementation of open source solutions. In this capacity, Red Hat serves as a trusted advisor, guiding organisations in maximising the benefits of their technologies.
This commitment to customer success, he noted, is supported by Red Hat’s professional services and partner collaborations, ensuring that clients are not only equipped with open source technology but also have the necessary support to achieve meaningful results.
“We are not just selling the product and then gone,” he reassures the delegates. “We help the customer through the success of their journey.”
Erfin’s insights highlight the transformative power of open source in advancing digital transformation across diverse sectors. By harnessing open source platforms and methodologies, organisations can modernise their systems while unlocking greater efficiency and responsiveness in their operations.
The flexibility and scalability of open source technologies allow organisations to boost system efficiency and reduce operational bottlenecks, ensuring a smoother and more effective transition.
This article is the third of a three-part series. You can read Part 1 and Part 2 here.
