Key Takeaways: 43rd ASEAN Innovation Business Platform Conference & Exhibition Indonesia Day 1
Under the theme "The Growth Imperative: Innovating for Impact through Technology and Sustainability”, the 43rd ASEAN Innovation Business Platform Conference & Exhibition Indonesia this conference brought together key leaders in digitalisation, innovation, and sustainability to explore the opportunities and challenges faced by businesses in Indonesia, featuring meaningful discussions on transforming industries through technology adoption and fostering sustainable practices.?
The conference addressed various aspects, including digital transformation, fintech transformations, cybersecurity, and IR4.0 Sustainability. The insights and takeaways shared by industry pioneers and thought leaders will serve as a foundation for our upcoming conferences, as we continue to delve into critical topics shaping the future of business and society.?
Winners of the 2023 AIBP Enterprise Innovation Awards for Indonesia, PT Bank Mandiri (Persero) Tbk. and PT HM Sampoerna Tbk. , were presented with their awards for their projects:
Innovating for Impact
Kicking off the conference with the opening government address by Nyoman Adhiarna , Director of Digital Economy, Kementerian Komunikasi dan Informatika Republik Indonesia (KOMINFO), Ministry of Communication and Information Technology of the Republic of Indonesia , and a panel discussion joined by Aldi Haryopratomo , Vice Chairman for Entrepreneurship, Indonesian Chamber of Commerce and Industry (KADIN) , Ivan Cahyadi , Sales Director, HM Sampoerna, Teuku Muda Nanta , Executive General Manager Digital Connectivity Service, Telkom Indonesia , Lisa Widodo , COO & Co-Founder, Blibli.com , and Irza Fauzan Suprapto, CFA , Executive Director, ASEAN Innovation Business Platform; Chief Executive Officer, Industry Platform, addressing key challenges and opportunities for Indonesian organisations, with a focus on empowering businesses, as digital transformation serves to enable organisations to optimise operations, enhance decision-making, and gain a competitive edge.
Unsurprisingly, infrastructure and partnerships are key areas pointed out that contribute to Indonesia being home to the most number of unicorns in ASEAN.
However, the panel also acknowledged the substantial hurdle of limited digital adoption among SMEs, primarily due to financial constraints. Collaboration and partnerships emerged as essential elements in creating a supportive ecosystem where knowledge and resources can be shared effectively. Additionally, nurturing SMEs and cultivating an environment conducive to innovation was emphasised, along with addressing skill gaps through educational reforms.
The digital society pillar involves three programs to enhance community digital literacy, enabling them to use technology productively while managing associated risks. Over recent years, extensive digital literacy programs have trained approximately 12.5 million citizens, contributing to both their literacy and the growth of national startups, aligning with the Ministry of Communication and Information Technology's initiatives throughout the startup lifecycle.
On innovation & what it means…
Innovation is the thing. We always need to think on how to survive and how to sustain. Because we believe in the business, we believe in the market for sure, what Indonesia donates and we want to make sure that we build something that is long lasting. So when it comes to long lasting innovation is something that should trigger every time because we need to make sure that not only survive, but also sustain.
So for me what innovation is, I think innovation is something that is necessary, especially in this new world. I think the best way to think of innovation is you can only innovate on something, if you're good at it, and you deeply spend time to be the best or be great at it. Because that's where innovation comes in when it becomes your craft. And I think everybody has a different craft, so don't worry about other people's craft.
Accelerating a Phygital World with Emerging Technologies and Collaborations to Drive Financial Inclusion
The banking and financial services industry recognizes emerging technologies as vital catalysts for digital transformation. Striking a balance between physical and digital experiences and fostering collaborations are pinpointed as pivotal priorities for digital banks and financial institutions.
The panelists including Destya Pradityo, Head of Digital Strategy at Allo Bank; Heuw Haryanti, Senior Vice President of Data Management at Bank Central Asia (BCA); Sigit Prihatmoko, VP Innovation Centre at Bank Negara Indonesia (BNI); Agusta Rinaldi, Senior VP and Project Leader at Bank Syariah Indonesia (BSI); Amir Mirza, Head of Transaction Banking Product at CIMB Niaga; and Shanmuga Sunthar Muniandy, Director of Architecture & Chief Evangelist, APAC, at Denodo, dived into the financial services’ innovation landscape in Indonesia.
On collaboration and open banking…
We need, we just can't compete, we need to partner with them, we need to collaborate with them to enrich our value propositions, right? … If I may take the Bill Gates quote right, he says that people do not need banks, they need banking services. So, coming back to your question, open banking to us is a must. We have to open ourselves to others and partner with others, we cannot operate ourselves as we do now, with traditional banking, the right things of acquiring new clients and so on.
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Because we believe that our bank cannot reach a lot of customers, some kind of segment must be served by other things, some simple things, for example, that's the reason why FinTech can join and collaborate with us. I believe that open banking is the future, our future, because I believe that the bank is still the core of the financial system.
The transformation of traditional banks into tech-oriented entities offering financial services necessitates innovation and a shift in mindset. However, the adoption of cutting-edge technologies, such as quantum computing, blockchain, and IoT, brings cybersecurity to the forefront of concerns within the financial services sector.
For true innovation to flourish, an ecosystem comprising banks, fintech firms, and regulatory bodies must work in unison. Nonetheless, while digital payments and technology hold great potential for extending financial services to underserved communities, addressing issues related to connectivity and access remains paramount.
Beyond the banking industry, cybersecurity is vital for digital transformation but is often an afterthought…
A brief survey among our conference attendees revealed that 62% of Indonesian enterprises believe their organisations should allocate more than 20% of their IT budget to cybersecurity. However, at present, over 50% of these organisations allocate less than 5% of their budget to cybersecurity. Ivan Kinash , CEO and Co-founder of Licel, invited our panelists to share their insights on the state of cybersecurity in Indonesia.
The panel discussion, featuring Andri Purnomo , VP of IT Security at DANA Indonesia; Agustinus Andriyanto , Associate Informatics Specialist from the ICT Department of the West Java Provincial Government; and Yudhistira Nugraha , Director of Jakarta Smart City, highlighted a critical takeaway: There exists a significant gap in cybersecurity funding that must be addressed by incorporating security measures into systems from their inception to foster innovation. Collaborative efforts involving government, private sector entities, and communities are essential to fortify the cybersecurity ecosystem, recognizing that no single entity can effectively manage cybersecurity in isolation.
But whatever technology that we have, the same technologies will be available to the hackers.?
The advent of emerging technologies such as 5G, AI, IoT, and cloud computing introduces novel cybersecurity challenges that demand appropriate controls and standards. In the financial sector, as exemplified by Pak Andri Purnomo, AI is employed in various capacities. An illustrative application is in financial verifications, particularly within processes like Know Your Customer (KYC). From this standpoint, leveraging extensive data and behavioural patterns enhances interaction quality and reduces instances of false negatives, ultimately enhancing the overall user experience.
Cybersecurity must strike a balance between user experience and security measures to foster adoption. Security plays a trust-building role, especially considering that employees are the final line of defence within cybersecurity and are susceptible to errors. To cultivate a security-conscious culture and establish trust, awareness training and education programs are indispensable. Jabar Digital Service conducts various public awareness and education programs, contributing to a cybersecurity culture that prevents individuals from becoming the "weakest link." Cybersecurity should be seen as an enabler rather than a hindrance to digital transformation and innovation.
So this is part of education, I think, from my perspective, because we're talking about cyberspace not only for the technical guy, because in some cases, in some universities, you will be also looking at cybersecurity from a growth perspective… from a political science perspective.
Towards a Sustainable-Driven Indonesia 4.0
In the pursuit of a Sustainable-Driven Indonesia 4.0, both Ir. Sonny Effendhi , MSc, CTO at PT. Indolakto, and Pak @Irfan Abdurrahman, Senior Information Technology Manager at PT Akebono Brake Astra Indonesia, shared insights into the successful adoption of digital transformation and industrial automation. They underscored the significance of establishing a robust framework early in the process of sustainability-related initiatives. While sustainable products may appear to come with higher costs, they stressed the importance of being flexible and promptly embracing emerging technologies such as machine learning and AI.
Furthermore, we addressed the enhancement of supply chain and manufacturing resilience by leveraging technology startups from Korea. This was made possible through AIBP's collaboration with the Korea Institute of Startup and Entrepreneurship Development (KISED) and the Korean Integrated Logistics Association (KILA). During the event, startups including Modern Technology Hub, LPTech, and Market of Materials presented their ideas to the audience in concise 5-minute pitches. Additional startups will also be featured in the day 2 program, providing attendees with opportunities to connect and network with them. (Fun fact: Many of these startups are visiting Jakarta for the first time!)
Stay tuned as we look continue our discussions in Indonesia on:?
Additionally Find out more about our 2023 AIBP Conference and Exhibition?
Nominations for the 2023 ASEAN Tech for ESG are now open for nominations and will close on 2 October 2023. Should you or your colleagues be interested, you may find out more here , alternatively, do not hesitate to reach out to us at [email protected]
This article was originally written and posted by Vanessa Kwan
Thank you to all speakers & panelists for your valuable insights and discussions. Nyoman Adhiarna?Aldi Haryopratomo?Ivan Cahyadi?Teuku Muda Nanta?Lisa Widodo?Steven Salim?Shanmuga Sunthar Muniandy?Destya D. Pradityo?Haryanti Heuw?Sigit Prihatmoko?Agusta Rinaldi?Amir Mirza?Sonny Effendhi?Irfan Abdurrahman?Ardi Sutedja K.?David Sehyeon Baek?Chok Chiat Ho?Ivan Kinash?Andri Purnomo?Agustinus Andriyanto?Yudhistira Nugraha?Irza Fauzan Suprapto, CFA?Yue Yeng Fong?Valerie Tan