Indonesia’s State-owned Companies Go Global, Display Innovation at Hannover Messe Exhibition

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As many as 13 Indonesian state-owned enterprises (SOEs) display their latest innovations at the largest industrial technology exhibition, the Hannover Messe 2021, as Indonesia plans to join the top 10 global economies by 2030.

Minister of State-owned Enterprise of Republic of Indonesia Erick Thohir

“This goal can be achieved by accelerating the fourth industrial revolution, and pursuing not only technological transformation, but the digital transformation of industry, especially during this pandemic,” Indonesian President Joko Widodo said.

Indonesia was the first Southeast Asian country to become an official partner of the exhibition, which is being held this week, 12 – 16 April, in a digital edition. Participation at Hannover Messe (HM21) is part of the national policy “Making Indonesia 4.0”.

“We expect our state-owned enterprises to ‘go global’ as we stated in our ministry’s road map. Not only through acquisition, but by leading the global competition,” said Erick Thohir, Minister of State-owned Enterprises (BUMN).

Some state-owned enterprises have adopted and developed recent technologies to compete with, and even lead the competition in digital technology, specifically in the energy industry, and in the automotive, electronics, chemical and pharmaceutical sectors, and the health equipment industry. All have their innovation on display at MH21.

Indonesia’s premier energy holding company PT Pertamina engages 4.0 industry transformation by transitioning energy consumption from fossil fuels to renewable energies. For energizing its sustainable future, Pertamina is converting its refineries to produce green diesel, green jet fuels and green gasoline, optimizing geothermal capacity, and utilizing green hydrogen. It also works with other state-owned companies to develop Indonesian EV batteries and energy storage systems.

The state-owned enterprise in the electricity sector, PT Perusahaan Listrik Negara promotes digital-based products that can acclerate business processes, such as the iCORE Digital Power Plant for electricity generation, Digitally Enabled Distribution Excellence for electricity distribution, PLN Mobile application for customer service and the Charge in application for charging electric vehicles.

A testing, inspection and certification company, PT Surveyor Indonesia is showcasing its drone-powered enhanced solution services for predictive maintenance and remote surveys. Meanwhile, Indonesia’s state mint Peruri developed a research institute for authenticity and collaborated with SICPA SA (a Switzerland company) and Giesecke+Devrient (a German company). At the Hannover Messe, Peruri introduces its innovations in digital business solutions with its products Peruri Sign, Peruri Code and Peruri Trust.

PT Pupuk Indonesia, the holding company for state-owned fertilizer producers, has implemented a “Smart Production” system that uses big data and integrates several data including operational data and distributed control systems. The system is expected to increase efficiency of operations and monitors production processes in real-time. The company also implements a ‘Smart Distribution’ system that integrates data in the warehouse all the way through the ports. Another smart product is the PreciPalm or Precision Agricuture Platform for Palm Oil that provides digital maps on soil condition in oil palm plantation that can give recommendations for fertilization.

Indonesian pharmaceutical holding company PT Bio Farma displays “bio tracking”, “bio detect” and an integrated packaging line for vaccine distributions. A thermal sensor and a GPS are installed in vaccine transporting vehicles to monitor temperatures inside the vehicles and their real-time position. Bio Farma hopes to expand to Eastern Europe following HM21. PT Indofarma promotes several premium products and seeks to attract foreign investment in pharmaceutical and herbal products. PT Kimia Farma, another state-owned pharmaceutical company also joins the exhibition, alongside its subsidiary PT Kimia Farma Sungwun Phramacopia.

The largest port operator in Indonesia, PT Pelabuhan Indonesia II is showcasing several of its latest innovations, including i-Hub, an application for one-stop port service and e-government solutions National Single Window and Online Single Submission.

In line with transforming into a digital telecommunications company, PT Telekomunikasi Indonesia brought several digital solutions, including digital connectivity, digital platform and digital service, all being displayed at HM21.

PT INKA, the first integrated train manufacturer in Southeast Asia, presents ‘E-Inobus’, an electric bus that was produced in a configurable virtual workstation concept. The nation’s shipbuilder PT PAL Indonesia introduces a dual fuel (diesel and LNG) barge-mounted plant, a floating power plant that can be operated in shallow waters and remote regions.

Another state-owned company attending Hannover Messe is PT Barata Indonesia, which produces various machinery and components for power plants and trains. The company expects to expand its market and joins the global supply chain for industrial components.

“Leadership and technology transformation will create a momentum that will not only pull us out of this pandemic but will push us to leap further ahead,” Thohir said. Indonesia’s participation in Hannover Messe 2021 does push state-owned companies in going global, and it opens opportunities in forging business partnerships and investment cooperation with international companies towards building the future of industry 4.0.

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