Enterprise & Business Service Director of PT Telkom Indonesia (Persero) Tbk, Edi Witjara (left) and Business Transformation Director of PT Pupuk Indonesia (Persero) Panji Winanteya Ruky posed for a photo after signing a memorandum of understanding on the Synergy in Mutual Utilization of Company Resources, at the Telkom Landmark Tower, Jakarta, Thursday (4/3). 

Enterprise & Business Service Director of PT Telkom Indonesia (Persero) Tbk, Edi Witjara (left) gave a souvenir to Business Transformation Director of PT Pupuk Indonesia (Persero) Panji Winanteya Ruky after signing a memorandum of understanding on the Synergy in Mutual Utilization of Company Resources, at the Telkom Landmark Tower, Jakarta, Thursday (4/3).

Jakarta, 4 March 2021 – As a manifestation of state-owned enterprises’ dedication to Indonesia and to instill the SOEs core values by forging collaboration, in a bid to boost the nation’s competitiveness, Enterprise & Business Service Director of PT Telkom Indonesia (Persero) Tbk, Edi Witjara and Business Transformation Director of PT Pupuk Indonesia (Persero) Panji Winanteya Ruky signed a memorandum of understanding on the Synergy in Mutual Utilization of Company Resources, at the Telkom Landmark Tower, Jakarta, Thursday (4/3). 

The Memorandum of Understanding covers cooperation on developments of joint research, information system architecture, implementation and creation of application programs, digitalization of marketing and/or product distribution, management of integrated supporting resources, as well as other synergic collaborations that both parties deemed necessary to support both companies’ operations in a transparent, accurate, and effective manner.

Telkom Enterprise & Business Service Director Edi Witjara expressed his gratitude for the well-established cooperation and for Pupuk Indonesia’s trust in Telkom to take part in the transformation of the PIHC business.

“With our infrastructure, platforms and digital services, we are committed to supporting the digitization of Pupuk Indonesia for an integrated distribution from upstream to downstream so that fertilizer subsidies are effective and reach the farmers, with tangible results of an increased agricultural productivity. Previously, at the end of 2020, Telkom had finalized the digitization of 5,518 gas stations. Hopefully we can soon realize the digitization of fertilizer distribution. We hope this could be a good step for us to make Indonesia's food security program a success," Edi said.

Edi also said that Telkom has a digital product, Agree, as a solution for farmers, agricultural ecosystems including fertilizer producers, to offtakers and financing from state-owned banks. Agree was launched with the Indonesian Farmers Association for Indonesian farmers to use.

Pupuk Indonesia has switched to digitalization in various fields, especially to support the company's transformation program and the change from a production-centric company to a customer-centric one. Pupuk Indonesia Director of Business Transformation Panji Winanteya Ruky said it was very important for Pupuk Indonesia to establish cooperation in information technology to develop the company's business activities, especially in this technological disruption era. "We have a vision to increase the company's analytical and digital capabilities by 2024, as part of the company's transformation process," Panji said.

A number of the company's strategic initiatives in digitization include implementing the Distribution Planning Control System (DPCS), which is a geospatial data-based system that is able to track the fertilizer distribution process and monitor subsidized fertilizer stocks in real time and could minimize the potential for fertilizer shortages and improve distribution planning accuracy. It also implements the Retail Management System, to improve accuracy of customer and farmer data and to optimize sales of company products, as well as product tracking to better control the distribution of subsidized fertilizers.

"We hope that with this collaboration, Pupuk Indonesia can have more accurate data so that we can serve the community better, and increase accuracy in company activities, especially in retail product sales," Panji said.

Through this Telkom and Pupuk Indonesia collaboration, both companies can be mutually beneficial and have added value according to their respective capabilities. "With the spirit of synergy, let's make this digitization program a success. Hopefully with this digitalization, SOEs can be realized as the main locomotive in achieving the mission of strengthening national food security and making Indonesia even better," Edi said.