Indonesia Industry 4.0 Readiness Index Assessment: Measuring KAI's Readiness for the Industry 4.0 Era

Managing Director of Human Capital and General Affairs Agung Yunanto, Managing Director of Finance and Risk Management Salusra Wijaya, Corporate Deputy Directors, Executive Vice Presidents, Vice Presidents, Heads of Operational Areas (Daop), Heads of Regional Divisions (Divre), Heads of Balai Yasa, and assessors from the Center for Materials and Technical Products (B4T) conducted the Indonesia Industry 4.0 Readiness Index (INDI 4.0) Assessment at KAI Headquarters over three days, from 22 to 24 February 2022. The assessment was carried out virtually via Zoom.

The assessment was attended by approximately 110 participants. Managing Director of Finance and Risk Management Salusra Wijaya explained that INDI 4.0 is the national benchmark used to measure a company's readiness to transform towards the Industry 4.0 era.

"The assessment process will continue until 16 March 2022 at the Headquarters, Operational Areas (Daop), Regional Divisions (Divre), and Balai Yasa. We expect the participation and support of all parties so that KAI can achieve the target score in line with the aspirations of our shareholders and become a company that is fully prepared for Industry 4.0 transformation," said Salusra Wijaya.

During the session, Managing Director of Human Capital and General Affairs Agung Yunanto also presented an overview of KAI.

"In this initial phase, we are learning together with the B4T assessment team by focusing on KAI first, before expanding the assessment to our subsidiaries," said Agung Yunanto.

The assessment focused on five key pillars. The first pillar, Management and Organisation, covered Strategy and Leadership, Innovation Policy, and Industry 4.0 Investment. The presentation was delivered by Acting Vice President of Quality Assurance and Good Corporate Governance, Astrid Anindita.

The second pillar, People and Culture, discussed Competency Development and Openness to Cultural Change. The presentation was delivered by Corporate Deputy Director of Personnel Care, Control, and Development, Ida Hidayati.

The third pillar, Smart Products and Services, covered Product Customisation, Data-Driven Services, and Smart Products. The presentation was delivered by Corporate Deputy Director of Passenger Transport Marketing and Sales, Raden Agus Dwinanto Budiadji.

The fourth pillar, Technology, discussed Cybersecurity, Connectivity, Smart Machines, and Digitalisation. The presentation was delivered by Vice President of IT Operations, Subandi.

The fifth pillar, Factory/Company Operations, covered Smart Maintenance Systems, Autonomous Processes, Smart Supply Chain and Logistics, as well as Data Storage and Sharing. The presentation was delivered by Vice President of Enterprise Resource Planning, Dody Gunawan.

Following the presentations, the B4T assessors requested further clarification on several topics, including KAI's sustainable innovation initiatives, adjustments to the Company's Long-Term Business Plan (RJPP) in line with KAI's strategic initiatives, the sustainability of the RailEO application after the pandemic, digital literacy, customer data-based service outcomes, evaluations of existing connectivity initiatives, the implementation of supply chain technology in operational activities, and KAI's smart supply chain and logistics practices.

Previously, KAI established the INDI 4.0 Assessment Preparation Team to ensure all requirements for the assessment were fulfilled as part of the Company's commitment to supporting the Government's Making Indonesia 4.0 programme.

This initiative is in line with the Ministry of State-Owned Enterprises Letter No. S949/MBU/10/2020 regarding Shareholder/Capital Owner Aspirations for the Preparation of the 2021 Corporate Work Plan and Budget.

The Ministry of State-Owned Enterprises has set a target for all state-owned enterprises to achieve strong Industry 4.0 readiness by 2024, with a minimum INDI 4.0 score of 3.5.

"The KAI INDI Team would like to thank everyone involved in the implementation of the INDI 4.0 assessment. Any outstanding data will be completed as soon as possible. Most importantly, KAI will continue to pursue continuous improvement," said Corporate Deputy Director of Information Systems Endro Rahardjo in his closing remarks.

Atmosphere of the Virtual Indonesia Industry 4.0 Readiness Index Assessment, Preparing Companies for the Industry 4.0 Era, Held on March 22–24, 2022