Business Review Magazine - June 2017

Ju ne 2017

www.businessreviewasia.com

GOING GLOBAL THROUGH DIGITAL

TELKOMGROUP’S TRANSFORMATION INTO A TELECOMS POWERHOUSE

VISIONBODY A REVOLUTION IN THE FITNESS WEARABLES MARKET

TOP 10 ASIAN TRAVEL DESTINVATIONS

MAKE IT HAPPN MORE THAN JUST A DATING APP

Every industry has a digital disruptor.

Let’s make it you.

HITACHI is a trademark or registered trademark of Hitachi, Ltd.

Like most industries, yours is under pressure to transform due to new competition from digital disruptors. The only way to get the benefits of digital transformation is with the right data strategy.

“

No one knows data like Hitachi Data Systems.

How can we help you accelerate your digital transformation?

Hitachi’s end-to-end solution, from server and storage to backup, has fundamentally transformed our customer service platform, enabling us to increase customer loyalty with new levels of efficiency, responsiveness and reliability. We are confident that this improved customer experience will help create even more business opportunities and drive new revenue growth in the future.

Malcolm Chiu, CIO, QNET

”

EDITOR’S COMMENT

GOING GLOBAL HELLO AND WELCOME to June’s

edition of Business Review Asia.

Our cover story this month focusses on Telekom Indonesia, whose Chief Technology Officer Abdus Somad Arief discusses the company’s aim to become the king of digital not only in its home country, but the entire region.

There is also a lifestyle focus among our features, including a look at new dating app Happn, along with a rundown of 10 of the most highly rated travel destinations in Asia. We also inspect the wearable fitness market’s newest entry, VisonBody’s PowerSuit that provides 20 high-tech pulse patches covering all eight major muscle groups.

Do also read exclusive interviews with Cushman & Wakefield, Schneider Electric and procurement expert Anwar Ansari.

As ever, please get in touch and join the debate @BizRevAsia

Enjoy the read!

Nye Longman Commissioning Editor nye.longman@bizclikmedia.com Join the debate on Twitter - @MrNLon @BizRevAsia

F E AT U R E S PROFILE

Make it happn

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TECHNOLOGY

16

Wearable

FITNESS

24

TOP 10

Asian travel destinations 5

C O M PA N Y P R O F I L ES

36

Anwar Ansari Supply Chain

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Cushman & Wakefield Supply Chain 6

June 2017

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PT Telkom Indonesia (Persero) Tbk Technology

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Schneider Electric Supply Chain

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PT Merdeka Copper Gold Tbk Mining

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TNB REMACO Energy

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At the conference, various topics such as key issues disrupting & innovating the mining sector, insights on the mining landscape, mining finance and business strategies will be discussed. Mining Investment India will bring in top notch business thought leaders to share their insights with the delegates. The conference will also provide plenty of networking opportunities through roundtable discussions and cocktail drinks reception.

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Make it happn Asia’s dating scene is certainly no stranger to apps, but this newcomer is encouraging real life interaction Writ ten by: NYE LONGMAN

PROFILE THE CITY IS where it all happens.

Or so we’re all told. But urbanites across the world know that the bustle of metropolitan life often comes with one massive cost – human interaction.

Meeting new people beyond work or friendship groups is simply becoming more difficult. But one mobile app is changing this narrative. With 150,000 organic sign-ups in Singapore over the past six months, happn is proving to be more than just a dating app.

Offering users the unique ability to connect with people they’ve crossed paths with, happn offers genuine, spontaneous interaction.

Launched in Paris in 2014, the app quickly received plaudits from both users and local media; happn soon grew across Europe, the US, and South America and, in 2016, spread like wildfire across Singapore. Claire Certain is Head of Global Trends, Communications and Media for the app, and recognises the universality of the genuine experiences it offers.

“Regardless of cultural specificities, happn is based on the acknowledgement of the growing difficulty young urban singles face when it comes to meeting new people, particularly while dating,” she says.

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PROFILE “That’s the mission we have set for ourselves: connect singletons living in the same (big) cities across the globe.”

“Profiles that appear on your timeline in real-time are the users within a 250 meter-radius - the people you’ve crossed paths with in real life. We believe that dating should not be virtual, regardless of the tool that we use to connect.”

What else makes happn different?

Reciprocity is another key element of the app’s user interface; people can only contact you in-app and send messages after both parties have agreed and expressed a mutual interest. “See you there” is a recent addition to the app that enables users to agree to a range of ‘date’ activities like grabbing a bite to eat or going for drinks.

With as many as one in five of Singaporeans downloading the app (the highest amount of users per capita in Asia), happn’s growth can be traced to a unique user experience backed up by socially-led marketing.

“Although our values are the same everywhere, local anchoring and word-of-mouth are crucial to our marketing,” Certain explains. “We are local, connecting our users with the 12

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“happn is a digital tool to boost real-life interactions based on everyday coincidences and missed connections, giving a second chance to a first encounter” – Claire Certain, Head of Global Trends, Communications and Media at happn people they have crossed paths with in real life. To do so we collaborate with local influencers with whom our main audience can identify. We engage with the media and on social media.”

Singaporeans are renowned for being early tech adopters, and this extends to dating. Tinder is well established on the island and upstarts such as Bumble, Peekawoo, and Blindfold vying for attention. “The dating-app market is very competitive in Singapore,”

MAKE IT HAPPN

SINGAPORE’S DATING HOTSPOTS? Happn recently revealed Singapore’s top 10 hotspots for crossed paths. Check them out and see if you have the same experience (if you’re feeling keen…)

1. Bedok and Katong 2. Telok Ayer 3. Orchard 4. Raffles Place 5. Punggol

6. Woodlands 7. Changi Airport 8. Clementi 9. Ang Mo Kio 10. Holland Village

says Certain. “Our strength relies on our unique positioning: we are the only dating app that allows you to find the people you’ve crossed paths with. We made this possible through the unique combination of real-time and hyper-location.”

“On top of this, happn enables our users to send songs in-app to people they had previously crushed with,” she adds. “Our concept is based on reciprocity. It is the only dating app that allows the recording (and sending) 13

PROFILE

“Singaporeans are renowned for being early tech adopters, and this extends to dating” – Claire Certain 14

June 2017

of voice messages. This means that happners have the possibility to interact in-app before they share their personal details - or decide not to.”

The success of happn has also been seen in Bangkok, where it was launched in April 2016. India has also proved a popular location when it was launched a few months back and remains a key growth market. “We are also considering launching the app in Japan - although happn is already available in Japanese,” says Certain.

“In the upcoming months our main focus is to reinforce our presence in the markets we already operate in, and sustain our promise through product development and innovation.”

Do apps signal the death of romance? Quite the opposite according to Certain and the teams at happn, who see apps as tools that facilitate human connections. “I believe that romance has not changed, nor the way young urban people look at romance or dating,” she says “In the wake of the success of e-commerce, people didn’t stop shopping! Using dating apps doesn’t imply that people will stop meeting outside of this. “happn is a digital tool to boost reallife interactions based on everyday

MAKE IT HAPPN

“We are the only dating app that allows you to find the people you’ve crossed paths with.

We made this possible through the unique combination of real-time and hyper-location” – Claire Certain

coincidences and missed connections, giving a second chance to a first encounter. We don’t promise love nor do we offer one night stands - it simply lets you connect with people from your everyday environment again.”

Fine-tuning the happn user experience is critical to keeping ahead of the competition, but Certain and the team have already noticed positive effects. From recent user feedback analysis, it appears that happn users tend to behave in a more responsible manner, because they know that they might cross paths again. “This encourages them to be more authentic and respectful in their interactions,” she adds.

It is obvious that happn offers dating app users something different to the rest of the pack. With a more nuanced offering tailored to those looking for a little bit more, we expect more good things to come.

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TECHNOLOGY

Wearable

FITNESS WITH THE NEW POWERSUIT, VISIONBODY IS REVOLUTIONISING ASIA’S FITNESS WEARABLES MARKET, ONE REP AT A TIME

Writ ten by: NYE LONGMAN

TECHNOLOGY ASIA’S FITNESS INDUSTRY is making impressive gains, but genuine innovation is rare. The health conscious are bombarded with the latest in equipment and sports nutrition, and mobiles are packed with countless diet and exercise apps.

Fitness celebrities are two-a-penny, and are all out to sell you their latest fad - or, more likely, someone else’s.

The Powersuit from Visionbody offers something truly different. While Electro-Muscular Stimulation (EMS) technology has been around for quite a while, this is the first truly wireless product to enter the fitness wearables market. And it looks pretty cool, too.

Brendan Lai is Director of VisionBody Asia; based in Singapore, he sees this unique product taking off across the island – and the entire region.

Armed with the latest technology and an ambitious expansion strategy, he is making the Powersuit the next big innovation in the region.

So how does the Powersuit work exactly?

“The Powersuit is integrated with 20 high-tech pulse patches covering all eight major muscle groups in the body – from the upper back, 18

June 2017

chest, biceps to the quads and hamstrings. When activated, all the muscles are being worked at the same time, contracting up to 90 percent of the muscles in the body.

“The electrical pulses activate blood circulation and cell metabolism.

This stimulates the musculature and connective tissue in its entirety, which helps build lean muscles and eliminate fat cells. The intensity of the impulses is controlled by the personal trainer, depending on the client’s fitness goals and comfort level.”

And what makes it different to other fitness wearables?

“In traditional EMS systems, a cord is attached to the user from the base station to deliver power and communication signals. The base station needs to be connected to an electrical socket to draw power.

This design has many constraints and limitations. Using the latest Bluetooth technology, Visionbody is able to communicate with the Powersuit using an iPad. “The Bluetooth technology is built into the control box and draws power from a small battery. This is the first time such technology is applied

WEARABLE FITNESS

to the field of EMS. With wireless, it can overcome many limitations encountered with other systems.”

Why did you choose Singapore to kick off your Asia launch?

“With the availability of direct flights to all major Asian cities in less than eight hours, Singapore’s location and logistic efficiency make it a natural choice to set up VisionBody’s Asia headquarters.

“Although EMS is widely used

in Europe by professional athletes and fitness enthusiasts, it is still a relatively new concept here in Asia.

Not a lot of people are aware of EMS and its beneficial effects, so the main challenge right now is to educate the public, and getting people to try it out and experience it. As we have already been in this business for a few years, we made sure to plan ahead and took calculated risks, so it was quite a smooth start for us.”

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TECHNOLOGY

HOW IT WORKS If the Powersuit looks ultra-high tech that’s because it is. But the design does allow for some good old-fashioned sadism. Connected via bluetooth to an iPad controlled by your personal trainer, you’ll certainly be put through your paces. The German-designed technology created by VisionBody is integrated with 20 pulse patches targeting all major muscle groups and can stimulate contractions across as much as 90 percent of your body’s musculature.

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WEARABLE FITNESS

Are you facing much competition?

“Currently, VisionBody is the only brand in Singapore that offers wireless EMS system in the market, and available at VisionGym located along Robinson Road. In Asia, there are plenty of other EMS studios using other brands. However, we see this more as an opportunity rather than competition. We have a superior product in VisionBody, which has a lower maintenance cost and competitive pricing - making it a very attractive reason to get them to upgrade to our system.”

What potential does wearable technology have to revolutionise Asia’s fitness industry?

“Wearable technology has been among the top three trends in the fitness industry for the past few years. This segment of the market has grown exponentially with the introduction of wristband step monitors and smartwatches.

“It has already changed the fitness routines of many users. I think there will be more advancements and wearable technologies going forward.

Wearable technology already has the ability to coach and track your routine 21

TECHNOLOGY

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WEARABLE FITNESS

- and everything is getting smaller, faster and wireless. VisionBody is the first EMS system to be truly wireless, and allows you to burn an average of 700 calories in 20 minutes.

“Fitness wearables in Asia are currently on an upward trend. With major Korean brands muscling into the smartwatch market and China producing entry level wrist step counters, wearable technology has become more affordable and accessible to everyone. Most of these wearables offer the same functions - heart rate monitor, integration with your smartphones, texts and calls. It is definitely increasing in popularity, but it would take something more than just being a secondary screen to your phone to really get everyone on the bandwagon.”

So when will other Asian markets get to feel the burn?

“We have already established distribution channels with partners in Malaysia, Hong Kong, Indonesia and Australia. We have also been receiving distribution enquiries from other countries such as Japan, Korea and Taiwan. We are also looking to establish more distribution channels

and the franchising of VisionGym around the region – in addition to planning to open VisionGym branches in Manila, Bangkok and Sydney within the first quarter of this year.”

What other tech trends are you watching at the moment?

“Virtual Reality is making a comeback after a false start a decade ago. With better technology, more powerful processing CPUs and cost structure, VR has become a viable consumer product. It would be exciting to see if VR can be developed further as a training/exercise tool, and how it can be integrated into our daily lives.”

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TOP 10

Top 10 Asian travel destinations Asia has long been the top choice for travellers the world over. Business Review Asia explores the most popular W r i t t e n b y : A L E X YO U N G

WHETHER ITS ANCIENT TEMPLES, BEACHES, JUNGLES, OR MODERN MEGACITIES, ASIA OFFERS TOURISTS SOME OF THE MOST INSPIRING LOCATIONS IN THE WORLD. RANKING THE BEST PLACES ACCORDING TO POPULAR CONSENSUS, BUSINESS REVIEW ASIA EXPLORES WHAT EACH HAS TO OFFER THE INTREPID TRAVELLER

TOP 10

10 TOKYO, JAPAN

Japan’s capital is the world’s most distinct megacity. Much like the country itself, Tokyo sits astride its illustrious Imperial past and its sleek, high tech future. For those looking to explore the city’s 600 year history, then the Edo-Tokyo Museum is for you. If you’re after something livelier, then the Shibuya Crossing could be for you. It’s the world’s largest intersection and also possibly the most hectic place ever.

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A S I A N T R A V E L D E S T I N AT I O N S

09 LOMBOK, INDONESIA

Located to the east of Bali, the island of Lombok is well known by travellers for its beaches and reefs, popular with surfers, snorkelers and sun-lovers alike. Top attractions include majestic beachside lodges, water sports classes, and even a shark diving tour.

Lombok also has a killer nightlife. So whether you want to wind up or wind down, this island has it all.

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TOP 10

08 BANGKOK, THAILAND

The capital city of Thailand barely needs an introduction do to its popularity with travellers and more traditional tourists. The most visited city in the world, according to MasterCard, Bangkok offers a heady mix of temples, clubs, hostels, and luxury hotels. Khao San Road remains a uniquely popular attraction for travellers seeking the thrills of Bangkok Nightlife; you’ll find clubs, markets, food and so much more.

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07 KO SAMUI, THAILAND

Thailand’s second largest island, Ko Samui offers a less hectic tourist experience than the mainland. Visitors will be sure to be kept busy, though, as the island hosts a number of cultural events including the Samui Buffalo Fighting Festival, the Ten Stars Samui Art Party, and the Samui regatta.

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TOP 10

06HANOI, VIETNAM

Vietnam’s capital city combines the best of the old and the new. With traditional and colonial buildings sitting side by side with a growing modern movement, the ‘Paris of the East’ offers so much to so many.

The area boasts some 600 temples and religious sites, set alongside the growing skyline of West Hanoi.

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A S I A N T R A V E L D E S T I N AT I O N S

05KATHMANDU, NEPAL To say that Kathmandu is an “untouched” city would perhaps be unfair and inaccurate, but Nepal’s capital city does retain an aura of the country’s ancient past. Alongside the usual temples, hotels, and museums, bold travellers can opt to explore the Himalayas through a choice of guided treks. Architecture buffs will marvel at the juxtaposition of Hindu and Buddhist buildings, some dating back thousands of years.

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04 HOI AN, VIETNAM

Hoi An is perhaps one of Vietnam’s best preserved cities. Backpackers flock to see the UNESCO World Heritage Site, but the city has been growing in appeal for more conventional tourists seeking hotels over hostels. Whether you wear flip flops or brogues, you’ll be charmed by the traditional lanterns that illuminate the city streets, and the sheer volume of traditional buildings will take you back centuries.

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A S I A N T R A V E L D E S T I N AT I O N S

03PHUKET, THAILAND

Thailand’s largest island, Phuket offers some of the world’s best beach spots.

Among the best of the countless attractions are the Big Buddha of Phuket, Nai Harn Beach, and the Two Heroines Monument. The keeneyed will be pleased to see SinoPortuguese architecture set alongside both traditional and modern builds

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TOP 10

02SIEM REAP, CAMBODIA

Situated close to centuries-old Angkor temple-city complex, Siem Reap is one of the country’s top tourist destinations. The Angkor temples are very well-preserved and tell the tale of the rise and fall of the Khmer civilisation. The local city is also on the move, with a range of bars, hotels, and shopping attractions.

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A S I A N T R A V E L D E S T I N AT I O N S

01BALI, INDONESIA

One of the world’s top tourist destinations, Bali has it all. From waterfalls, spas, and, temples to clubs, beaches and a number of shopping centres, there’s a chance for travellers to party and be pampered.

Perhaps one of the most popular sites is the UNESCO-recognised Subak Irrigation System.

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ANSWERING THE

PROCUREMENT CALL Written by Wedaeli Chibelushi Produced by Charlotte Clarke

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WE SPEAK TO ANWAR ANSARI, AN ACCOMPLISHED PROCUREMENT AND SUPPLY CHAIN LEADER, ABOUT THE TRANSFORMATIONAL JOURNEY OF PROCUREMENT IN THE TELECOM SECTOR - THE KEY FACTORS THAT LED TO A SUCCESSFUL STRATEGIC SHIFT OF THE PROCUREMENT AND SUPPLY CHAIN, THE FUTURE OUTLOOK AND THE ENVISIONED, VITAL ROLE OF PROCUREMENT IN CREATING GREATER VALUE FOR THE BUSINESS IN THE CAPACITY OF A STRATEGIC PARTNER

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S U P P LY C H A I N

M

r. Ansari has 22+ years of rich and well-rounded, local as well as international experience in Procurement and Supply Chain domain with profound expertise in areas of strategic procurement, supply chain & turnkey contracting, logistics & vendor management. Having led a team of 50+ procurement professionals across country, he managed the procurement portfolio of 68 Materials Group (2700 Materials) from 100+ suppliers locally and globally located in USA, UK, EU, China, Turkey and Gulf countries and handled overall group spend management programs worth US$500M+.

His professional prowess, complemented by this powerful leadership persona led to the successful implementation of best practices in strategic sourcing and supply chain, which resulted in a track record of exemplary contributions towards organizational profitability through substantial and sustainable savings, company-wide.

Supply chain transformation expert Anwar Ansari, when asked about

the driving force/motivation behind his unwavering resolve to make his latest challenging undertaking successful, replies: “I enjoy the thrill in working with a team of dynamic professionals to analyze challenges, devise innovative solutions/ approaches, strategically plan the change management and implement projects which bring visible results to the organizational performance.

There is nothing more motivating than the sense of fulfilment that comes from making tangible contributions that add real value to the business.

Being entrusted to lead the massive, transformative change itself is very rewarding. No doubt, the responsibility of delivering against challenging timelines is not an easy task but like they say, ‘the best things in life don’t come for free. Even though it is what all procurement professionals dream of!’” he says jokingly.

Mr. Ansari also described the three key principles, which he believes, have served as a constant stimulus and driven his work every day. They are the Three F’s: Function, Flexibility and Freedom.

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FUNCTION: being a valued resource and go-to person for all facets of the organization.

FLEXIBILITY: able to work methodologically as well as independently/ unconventionally, by coming up with innovative solutions.

FREEDOM: to perform tasks and responsibilities with complete authority and empowerment.

“What I like best about this role is that it allows for interaction with professionals and subject-matter experts at different levels of the organization and across all functional areas. It provides an opportunity to learn new things about the company, business, market etc., every day, which keeps one striving to search for even better solutions to cater to the business needs.

“It isn’t just about performing hard-core procurement role and allied functions. What makes the role truly meaningful is steering the business by being strategically aligned and serving like a commercial expert who engages all the other business areas day in and day out.”

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FORMULA FOR A SUCCESSFUL STRATEGIC SHIFT While recounting his experiences, Mr. Ansari highlighted the factors which according to him are the most crucial determinants for a successful strategic shift in Procurement and Supply Chain.

The first is, leadership’s vision, mindset and commitment: “This factor in my opinion cannot be emphasized enough,” he says. “A progressive mindset and dynamic approach at the top are the key ingredients for keeping an organization agile and abreast with the transformative advancements and remaining ahead of the competition. Commitment of the top management is critical for paving the path towards a successful reform and has a far-reaching impact.”

The second is strategic partnership.

Mr. Ansari continues: “Focusing on revamping the procurement practices and systems is only one part of the transformative effort.

What brings real results is creation of a true strategic partnership with the business. Especially when it comes to a function like procurement,

S U P P LY C H A I N

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PAKISTAN TELEPHONE CABLES LIMITED Pakistan Telephone Cables Limited (PTCL Cables) an ISO 9001: 2000 certified company and manufactoring copper telecommunication cables, optic fiber cables, electric & power cables, instrument & control cables according to international standards and customer requirement.

PTCL Cables is manufacturing all the products conforming to the quality system.

OPTICAL FIBER CABLES

TELECOM ACCESSORIES

CONTROL/INSTRUMENT & ELECTRIC CABLES

COPPER TELECOM CABLES

Head Office E-3 Block-17, Al Raee Avenue Behind National Stadium Gulshan-e-Iqbal, Karachi Pakistan.

Phone: +92 21 34815841-44 Fax: +92 21 34802943 Email: info@ptclcables.com

Factory 18th Mile RCD Highway 27/3/2, Mouza Bairut Tehsil Hub, Distt: Lasbella (Balochistan), Pakistan Phone: +92 853 363249, 48, 47 Fax: +92 853 363245 Email: sales@ptclcables.com

www.ptclcables.com

Leading EPC contractor for Telecom, Power & Infrastructure Sectors

MULTI-TECH SYSTEMS (PVT) LTD.,

We specialize in the supply, installation, commissioning of telecommunication systems as well as supply of trained manpower to the telecommunications industry around the world.

• Optical Fiber Cable Networks Division • Managed Services Division • Allied Engineering Services Division • Power Division • Solar Power Division

ISO 9001, 14001 and OHSAS 18001

KHL House No. 293-294, Street No. 3, Sector I-9/3, Islamabad, Pakistan

Tel: +92 51 485 9002 | Fax: +92 51 444 9706 | www.khl.com.pk

ExpertiseInTelecom Solutions& Services: - System Integration - Operations - Implementation ,Network Planning, Calculating & Forecasting - Installation ,Testing and commissioning of IPTV/SCPC /iDirect DVBS-2 Hub and Remotes www.multitech.com.pk Email: sales@multitech.com.pk

Our Principles:

Brightcom FZE

#3-6, 1st Floor, Plaza 2000, I-8 Markaz, Islamabad, Pakistan.

Phone : +92 51 4938163-66 Fax : +92-4938167

S U P P LY C H A I N

which for a very long time had been categorized as merely a support function, it is important to change the perception of procurement’s role by actively participating in the business decisions and supporting the business in achieving its strategic goals by offering unique solutions.

“Procurement needs to be proactive so as to treat its internal customers the same way that the business treats

be focused upon is the relationship with vendors. “Unless we start thinking of vendors as our partners, we can’t gain long-term benefits for the business,” Mr. Ansari states. “It has to be a win-win situation which leads to sustainable success.”

AN OUT-OF-THE-BOX APPROACH Departing from tradition is another strong aspect of Mr. Ansari’s approach

NO MATTER WHAT HAPPENS, WE SHOULD KEEP GOING! REVISE THE PLANS BUT NEVER CANCEL ANY. SUPPLY CHAIN PROFESSIONALS NEVER QUIT! – ANWAR ANSARI its external customers. We need to be able to preempt the needs of our business partners and keep ourselves updated with the advancements in the industry, so as to offer the best possible solutions to meet their requirements. Instead of just fulfilling orders/requirements, we need to sell our solutions to the business and strengthen our strategic role.”

Another aspect which needs to

to procurement leadership. “I strongly believe that we, as procurement professionals, need to take a revolutionary approach and alter the way we had been traditionally thinking and operating,” he explains.

“Enhancing efficiencies of the predefined methodologies can only guarantee incremental improvements.

If we are to provide the business with a competitive advantage, we need to

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A N WA R A N S A R I

500

Million The amount of PROCUREMENT VOLUME in USD

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S U P P LY C H A I N

take a more innovative and long-term approach aligned with the business strategy and future requirements.”

IT We have seen how technology has revolutionized all fields within business and procurement is no different in this regard. While shifting to automation is a challenging task indeed, yet, it is one of the most important factors which bring great benefits in the longer run.

Mr. Ansari points out that it is not just the efficiency which is improved and enhances the performance, but more so, the valuable insights which the data and information provide for strategic decision making. Whether it is monitoring the inventory levels, gauging the effectiveness of the sourcing channels or supervising the timeliness of the deliveries, technology and data are an absolute necessity, providing actionable business insights.

CHALLENGES Asked about the challenges faced as a procurement leader, Mr. Ansari answers: “Heading such a sensitive and strategic function, especially

in a sector like Telecom, where the rate of technological advancement is most accelerated and pronounced, is a challenge in itself. Nevertheless, the hardest thing about this role has been sparing and adjusting time for self-initiated projects.

You can get so busy with core and other related jobs vis-à-vis targets that often those personal projects having great potential to become a turning point in your practice as well as for the organization are pushed aside. Besides this, at times, understanding all of the interdependent relationships may be challenging, it is definitely one big team effort here; everyone has a role to play.”

ERP SYSTEM: Mr. Ansari goes on to describe how he had an opportunity to work for an organization where post-privatization, the management’s priority was to stay abreast of market and business trends and above all, the technological needs.

They started implementing state of the art of SAP-ERP back in 2007 in phases (the biggest ever SAP deployment in the country with core and strategic modules) – the initial

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one being material management, followed by other departments including but not limited to Finance, HR, BI, NLM/ NML and others.

This enabled optimum visibility and integration together with managing the business and automating many back office functions related to technology, finances, services, operations and human resources etc.

E-PROCUREMENT Aiming for a paperless and hassle

WHEN YOU COLLABORATE EFFECTIVELY WITH YOUR SUPPLIERS, THE ENTIRE SUPPLY CHAIN PROCESS, INCLUDING MANAGING INVENTORY AND ACQUIRING GOODS AND SERVICES, WILL RUN SMOOTHER AND BE MORE EFFICIENT – ANWAR ANSARI

free working environment, swift transparent transactions and processes, in-line with best practices and International standards, Mr. Ansari has led and implemented various electronic applications and processes pertaining to procurement.

This, namely, consists of digital documents management system and documents archiving, stores automation (for improved material management; end-to-end/concurrent visibility of stores), and e-file/office as

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well as SAP based e-procurement, covering Supplier Relationship Management (SRM), Contract Lifecycle Management (CLM), Spend Performance Management (SPM), Supplier Lifecycle Management (SLC), Material Data Master (MDM) and other functional modules. This resulted in saving a lot of time and resources in addition to providing the above-mentioned benefits

suppliers, which can boost the performance of the organization.”

• Invest in supplier relationship management software.

• Demonstrate to your suppliers that you’re a good customer.

• Curtail number of vendors/ channels and work with optimum/ consistent performers only.

• Keep lines of communication open.

SUPPLIERS SELECTION Supplier Relationship Management (SRM) consists of managing and planning constructive interactions with the third-party vendors that supply and support your business with goods and services. This is an important part of both SCM and effective business management.

“When you collaborate effectively with your suppliers, the entire supply chain process, including managing inventory and acquiring goods and services, will run smoother and be more efficient,” Ansari explains. “Following four steps are a key to building relationships and partnerships with your

THE FUTURE OF SUPPLY CHAIN Procurement as a function is on a continuous journey toward greater importance and influence. As it has already evolved beyond its transactional and back-office roots, the role is becoming more and more of a strategic player, focused on total value delivered including supporting revenue goals, reducing total cost of ownership and improving quality and integration of supply, taking on increasing enterprise responsibility of the end-to-end, source-to-pay process. “In a nutshell, it’s no more merely a Supply Chain but becoming value chain already,” Mr. Ansari concludes.

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Written by Nell Walker Produced by Charlotte Clarke

We Negotiate, We Redefine, We Spearhead & We Navigate our Clients Transformation

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Head of Procurement (India) at Cushman & Wakefield, Sanjeev Singh, describes his department’s tireless work to build and retain the best possible supply chain network and secure success

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roperty consultant Cushman & Wakefield is facing explosive evolution.

As part of an industry which is ever-relevant and in-demand, the company has experienced huge levels of growth – most significantly in Asia.

India tops the list of nations which have enjoyed the biggest boost, with Cushman & Wakefield expanding its employee numbers in the nation by at least 500 in 2017, enabling it to focus on project management and leasing transactions. There are already 11 offices across India, housing an ever-increasing team of 2,800.

Of course, any company operating in the property sector requires a complex logistical system that demands the highest levels of organisation and talent. Head of Procurement (India), Sanjeev Singh, is no stranger to the complexities inherent in the supply chain industry;

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after nearly 10 years serving as a Major in the Indian Army, Singh delved into the corporate world of logistics, and has spent another decade focussed on that.

Based in New Delhi, Singh is responsible for heading up the supply chain management sector of Cushman & Wakefield, presiding over contracts and compliance, and as a member of the Governance Council he is in charge of representing the facilities and property management side of the business within India.

The ongoing tasks Singh faces are numerous and wide-ranging, truly bolstering what the business offers. He must provide strategic direction and leadership for his team, continuously build up a network of suppliers, and partners, ensure the most effective delivery structure, and work closely with all relevant alliances. “We talk about this sphere of

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“First you have to build a strong team, and then create a strong delegation matrix which gives all members both freedom and a purpose”

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influence,” he says. “It’s really about how we prioritise, how we put our stakeholders first, but also how we think about supporting our company.

We really introduced this as being the most trusted business advisor, and while making an attempt to realise this we also have to take up the guardianship responsibility.

And if you’re not guardians of the company, you’re not really being a trusted business advisor, either.

“To be able to perform basic tasks fast, we have to adopt and develop the technology side of procurement, so we embarked on the journey of creating a managed marketplace platform.

Like it or not, digital technology is taking over our lives and business processes – digitalisation is here to stay. Technology is transforming the way we work, discover, connect, and collaborate with our trading partners.

It allows access, insights, and intelligences that enable us to make better or more informed decisions.”

The importance of employees Singh attributes the success of Cushman & Wakefield’s procurement

team in India to various necessary qualities, starting from within. Hiring the right people is vital, he states, and is part of what has changed the game for the business. “People are as critical to procurement as the customers. It is people, not computers, that drive strategies.

“First you have to build a strong team, and then create a strong delegation matrix which gives all members both freedom and a purpose,” he explains. “This matrix style of organisation with financial limits, high competency, and uniform processes allows employees to make decisions quickly and efficiently.”

Cushman & Wakefield goes out of its way to hire the absolute best and best-fitting staff, offering the finest training and workshops available to ensure staff are up-to-date on industry trends and the relevant requirements for their job roles.

“For training and skill enhancement, I believe in cross-

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functional exposure, which involves working collaboratively with stakeholders,” Singh states. “We also send employees to industry forums on their specific subjects; these things are key for skill enrichment.

Freedom and flexibility at all levels with the team, empowerment, and what we call ‘external breathing’ are pivotal. The collaborative relationships we have with our staff bring everyone closer together.”

For Singh, organised and streamlined in-office processes allow for an organised and streamlined supply chain operations: “The supply chain management functions depend hugely on the supplier and manufacturer community outside the organisation,” he says. Logistics is built up of many streams and moving parts in many directions, and in Singh’s words, “Procurement is the heart of the organisation and to the supplier community, so it’s all about the win-win partnership for and with them. Therefore it becomes imperative for us to be very agile.

“Everything in the procurement and logistics world moves very quickly,

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and people have to know how to prioritise and manage the dynamic environment. They need to be able to work as a team as well as alone, have the ability to stand up for themselves, and challenge themselves.”

Supplier relations The importance of suppliers is paramount for any business, but for Singh and his team, suppliers are considered partners, and collaboration between them is sacred.

“The clients you are servicing are so important, and suppliers are an extension of your team,” he says.

“Good suppliers are quickly identified by how capable they are, and they are the ones we keep close for the entire journey of supply chain management.”

Singh is openly passionate about this part of his job: acquiring and keeping close the best suppliers, treating them with a respect often only reserved for customers, and forming a trusted network. For a business like Cushman & Wakefield, the significance of a strong logistics network cannot be underestimated.

Singh believes that bringing suppliers

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close, looking closely at industries, and moving ahead with added value in the end result “makes Cushman & Wakefield very strong and very different from the competition”.

Procurement as a business Clients, customers, and stakeholders continue to raise their bar on expectation, which is continuously evolving and redefining the role of the procurement officer.

In today’s dynamic business world, the procurement officer holds a role that is focussed on business enablement. Procurement is evolving at breakneck speed, thanks to technology; transformation is the order of the day, as enterprise procurement organisations are no longer just tactical teams focussed on cost reduction, but strategic entities that drive enterprise-wide value and fulfilled compliance requirements by contacting a handful of suppliers through a tendering process.

What makes this successful is treating the procurement function as its own business, rather than simply an additional cost line; shining a

“Good suppliers will quickly be identified by how capable they are, and they are the ones we keep close for the entire journey of supply chain management”

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spotlight on the supply chain has been a boon for Cushman & Wakefield.

Product versus service While it is easy to define the factors that drive the cost of a product such as materials used, components, overheads, labour, and transportation, analysing the cost of a service is more complex as it involves a deeper understanding of the supplier’s process. This can however be achieved by: • Mapping the supplier process through a detailed breakdown of the system • Allocating costs to each activity with a combination of information from job boards and indicators of labour prices • Considering the overheads gleaned from annual reports.

While it’s true that the information gathered is not fool-proof, it is a handy estimate of productivity.

“We work with suppliers as business partners, invest time in innovation and technology adoption of new

ideas, and all of that enhances supply chain management as a business,” Singh says. “This cost becomes a business liver for an organisation, and when that cost gets placed where it’s supposed to be, your business can move onto the next level.”

The future 2017 is shaping up to be a great year for Cushman & Wakefield, according to Singh. He is expecting big changes in the procurement delivery process and perspective, and to create new market strategies for target industries.

In terms of technology, the company’s most recent innovation, which is now ready to create huge value in the business, is the managed marketplace named MarketC&W: a one-stop solution platform for Cushman & Wakefield’s clients and customers.

“We have built an extensive catalogue with over 100,000 products across 100 product

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categories from more than 500 brands,” Singh explains. “It allows us to see the best cost efficiency, transparency, visibility, and improved turnaround time. It will have everything that the client needs, including business intelligence on opex and capex spend category management, and MIS dashboard across various categories as well.

“This initiative will give our client a huge advantage in consolidating the vendor Number of employees base, showing real-time at Cushman & Wakefield analytics, accurate prediction and improved forecasting, transparency of all processes, billing accuracy, and inventory. This solution allows much-needed account and operating flexibility of choice in the system.”

The future of the business and growth engine for Cushman & Wakefield certainly looks promising. Singh concludes: “The client and the market can expect much more than standard service from us.”

43,000

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Schneider Electric Pakistan:

DIGITALLY ENABLED Written by Dale Benton Produced by Charlotte Clarke

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Schneider Electric Pakistan has digitally transformed its supply chain processes to reduce costs, lead times and, ultimately, better serve its customers

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chneider Electric is a company that prides itself as being the global supply chain specialist in energy management and automation.

The company develops connected technologies and solutions to manage energy processes in a safe, reliable, efficient and sustainable way. But to be a global specialist, serving customers in different regions worldwide, the company needs to have an efficient and lean supply chain.

That’s definitely the case for the Pakistan arm of the company, as the company has recently undergone a major transformation project that looked to streamline its entire supply chain, realising cost benefits and providing an overall greater experience for its customers. The major benefits that the project has brought upon Schneider include lesser lead times, a more efficient production

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process and overall cost reduction throughout the entire supply chain.

Before any transformation could happen, Owais Ahmed, Executive Officer Supply Chain at Schneider Electric, had to evaluate key operational units working under the umbrella of supply chain in Pakistan.

Carrying expertise in Logistics division of supply chain, Owais broke down costs associated with the importing of products from overseas as well as analysing where the lead time between the product sitting in the factory and being in the hands of the customer could also be reduced. “Once the product is imported to Pakistan, the landing cost of the product and the charges, including customs and transportation, all needed to be streamlined,� says Ahmed.

It was through this desire

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OWAIS AHMED

Executive Officer Supply Chain Certified supply chain professional with experience in managing projects, trade and handling operations of an organization. Currently managing supply chain and operations at Schneider Electric Pakistan (Pvt.) Ltd.

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to streamline those costs that Schneider made the decision to prioritise sea imports over air, with the costs associated with sea import being significantly lower.

“This was a transformation that Schneider hadn’t undertaken before,” Ahmed adds.

Transformation of importation The transformation of the supply chain was not an overnight process. Ahmed had previously worked at Schneider back in 2013, when the company set out specific goals of reducing lead time, working on contract formalisation and regularly monitoring systems in order for the production team to be able to be updated at any time.

Ahmed returned to Schneider and the goal remained the same as he now managed the entire import and somewhat export of Schneider Electric Pakistan.

“I am in constant contact with suppliers from France, China and other global partners following up with them about the orders placed by our upstream supply chain team.

My task is getting the products

ready, arrange logistics and deliver them in the hands of production/ assembly unit in time,” he says.

With the transformation already taking shape during Ahmed’s first tenure, the overall timeframe for the project has been just over three years and Ahmed can already point to significant benefits to the business as a result.

Lead time, production efficiency (including import and assembly right through to delivery) and of course reduced costs are the major benefits that Schneider can reap as a result of this transformation, but for Ahmed these benefits serve a greater purpose.

“Customer satisfaction. Time efficiency and reduced costs impact not only Schneider Electric Pakistan but the customer themselves,” he says.

“When you reduce lead time, the customer is satisfied. When you reduce operational costs involved, you bring down the cost of the overall product and that is beneficial to both the organisation and the customer.”

The benefit in creating a more efficient process and in turn a more

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efficient supply chain needs no explanation, but Ahmed points out that there is a line in which these three elements (time, efficiency and cost) cross one another and it is this gap in which the supply chain industry as a whole is currently focusing.

Technologically enabled For a transformation of this scope to happen, the company must look at its current technology software and processes. This is where being part of the larger Schneider Group has enabled the Pakistan arm to evaluate its own technological processes and make improvements.

This included the upgrading of its previous Oracle software to a SAP Software solution.

Through this software, Ahmed and the supply chain department have found their technology interface to be much more streamlined and efficient.

“In upgrading our IT and technology software we have definitely better enabled our processes, be it inventory or assembly, through this digital transformation,” he says.

“The role of technology and the role of software has had a big impact on the supply chain.

Through the deployment of this new software we were able to set a higher level of standard.”

While better serving vendors, suppliers and customers is one goal, the main ambition behind the transformation has been the reduction of the costs involved throughout every step of the

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supply chain process. By upgrading technology processes, Ahmed has been able to be much more “on the ball” on the status of orders through new monitoring capabilities.

With a keen focus on reducing the costs, one can be forgiven in thinking that there’s no real pleasure beyond monetary.

“As supply chain practitioner, it gives us great joy to uncover and enable these improvements.

It really helps on the day to day running of the process as well,

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which is always a bonus,” he says.

With technology, every day is a new day and a new wave of innovation.

For Schneider’s Pakistan arm, being joined with the larger Schneider Group allows Ahmed to remain on his toes when it comes to the latest technology developments that could transform the supply chain industry in Pakistan.

“Every new development is shared to us and we get training provided to us free of cost,” he says. “With regards to technological developments its very beneficial. Although we are here

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“I am in constant contact with suppliers from France, China and other global partners following up with them about the orders placed by our upstream supply chain team.

My task is getting the products ready, arrange logistics and deliver them in the hands of production/ assembly unit in time”

in Pakistan, through this training and advanced linkage between our international organisation, we are much more knowledgeable of the developments, the trends and the pace of the technological demands of the supply chain industry as compared to our competitors.”

As with any technology, particularly technology that has already been adapted by the group in its global processes, the key is in adapting it further to allow the organisation to grow accordingly in Pakistan.

OWAIS AHMED Executive Officer Supply Chain

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A major part of the make-up of Schneider’s supply chain is it’s sourcing. Through this transformation, Ahmed along with sourcing department has refined the company’s strategic sourcing methods. This all ties into the overall goal of reducing lead time, reducing the costs and better serving the customers.

When an order is made, Ahmed and the supply chain department will check the region in which the order is made from and immediately look at alternative products (to the same standard and specification) located in different regions, ones that may have much quicker and cheaper lead times.

This process is enabled through a wide range of vendors and suppliers that Schneider has amassed locally in Pakistan.

“For example, the lead time of a product coming from the USA, taking into account clearance and transportation, is around 40-45 days,” says Ahmed. “Compare it to another supplier more locally. It’s the same product specification and quality, but it takes no more than

18-20 days to reach our factory and be ready to ship out to the customer, which in domain of supply chain is a greater reduction of lead time.”

To the future With this transformation already considered a key success to the company, Ahmed has his eyes set firmly on the next step, a new way in which the company can grow to be better for the customer.

This next step, he feels, is one more focused on sustainability in the supply chain. “In the supply chain industry, every department operates separately and individually, however, linked through a chain which keeps every department bonded with each other” he says. “With the passage of time we are beginning to see a number of departments operating under the umbrella of supply chain. Similarly, more chances are created for practitioner like me to create sustainability and tap the gaps amongst different operational units. For me, the next transformation will be building and developing sustainability into that supply chain.”

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PT Telkom Indonesia (Persero) Tbk

ALOLEK ATAT MOKLET NATUJNALREBEK ytilibaniatsuS mokleT ecnanrevoG

TELKOMGROUP’S DIGITAL TRANSFORMATION INTO A GLOBAL TELECOMS POWERHOUSE Written by Stuart Hodge Produced by James Pepper

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PT Telkom Indonesia (Persero) Tbk or TelkomGroup, are working to become a fully digital telecommunications service provider, and have a masterplan to be major players in the global market by 2020

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elkomGroup’s new stateof-the-art headquarters in the Indonesian capital of Jakarta epitomises everything which the company is evolving into – and helps to reinforce its goal of being the “king of digital in the region”.

And according to Telkom Indonesia’s Chief Technology Officer, Abdus Somad Arief, it is well on course to achieve that aim.

He reckons the company is almost where it wants to be in terms of ‘digitising’ itself but that is by no means the only goal for the group.

“Our target is that we expect to be in the top ten for telecommunications company in the region, in terms of market capitalisation,” he says.

“We have two main areas in which to develop, the first is the legacy business. We are building an international backbone, from Europe to the United States, as well as a domestic backbone – and one

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of our long term goal is to be the international hub between those two continents and this region.

“By hub, we mean that in two main senses: traffic, as in voice traffic and so on; and the network itself. So we will provide networks from Europe and around the world, and will also be monetising or bringing networks to Indonesia, to ensure that this will be our global hub,” Abdus continues.

“We have a roadmap to see that dream through, and we are now on the way to getting there, step-by-step.

“Firstly, we want to become one of the top ten tier network providers in the world, and we believe it will be achieved by 2020.

“And secondly, through the network development, which should be finished by next year,” Abdus explains.

Essentially, TelkomGroup is transforming into a completely digital telecommunications company. Hence, the company

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is restructuring its operations to focus on its end-to-end digital business portfolio. That process of change will involve a revamp of both infrastructure and infostructure as the company looks to grow.

The infrastructure improvements will focus on increasing the network capacity to deal by supplementing the existing network with additions to what the company refer to as the “backbone network infrastructure”.

The group’s latest figures show it has built more than 106,000 kilometres’ worth of fibre-optic backbone network, domestically and internationally. In the domestic sector, the network can serve the needs of people all over Indonesia, and in the international sector, the group is working with 19 other global operators. Notably, the company recently succeeded in completing the installation of high-capacity cable under the sea, all the way from the French city of Marseille in Western Europe back to Dumai in Indonesia, ensuring a strong connection between the continents.

The infrastructure improvements,

23,876 Number of employees at Telkom Indonesia meanwhile, are focused on core system modernisation and a restructuring of the company’s IT provision to ensure it can cope with the network growth.

But even more important than any of that, is the culture the company is trying to ingrain as it goes through this process of growth and ‘digitisation’.

“Now we are changing a lot,” says Abdus.

“How are we looking to do that?

Well firstly by bringing in new blood.

Starting off last year, we replaced retiring employees with mostly people from the new generation who are

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“Our vision is that our programme will be the international telecommunication hub between Europe, the United States and this region” empowered to go to the next level.

“Our staff are the main engine of what we’re trying to do. Since they have come in, these new employees have been pushed to work hard and to bring new thinking, in terms of the business and in terms of the process.

“We give them freedom to explore their ideas and then share them with existing employees,” Abdus continues.

“And it’s worked until now because we’ve provided them with the environment to think outside the box.

“Secondly, a change has happened

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in terms of the culture itself. In all of the working environments, the business processes and the tools that we have, we are going digital every step of the way.

“Internally, we are digitising ourselves, including all of our technicians in the field, which are also already speeding up in that regard. Externally, we are empowering our customers, so that they can be more efficient.

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“There is less need for use of our contact centres and that kind of thing and this how we are digitising both people and the process and we are probably 80-85% towards being fully digitised.”

And the group’s new Jakarta HQ, which the company invested around $125 million (US) in, is a prime example of that new approach.

“It’s a fully digital building,” explains Abdus.

“So, the whole environment and the atmosphere is fully digital, from the design of the colour and layout, to the apps which are used in the building. Everything is fully automated and we also build connectivity every day by using apps.

“By having this facility and by bringing in new blood with a digital perspective into the company, we are sure that we can quickly achieve our goals.”

And the latest set of annual company results would certainly seem to back up that assertion.

For the financial year of 2016, Telkom’s revenue successfully increased 13.5 percent year on

year, means that profits increased by nearly the same amount and the company added 21 million new customers into the bargain.

“We are optimistic because we achieved very good results in 2016,” says Abdus. “It’s the first time since 2009 that we’ve achieved more than 10 percent growth for the company’s revenue, EBITDA

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Digitalization is everyone’s business Today, both new and more traditional players are under pressure to innovate faster, more flexibly and with fewer resources. People want new and innovative services with a great user experience. And they want them to be available at any time –on any device.

Right now there’s a new generation of disruptive and digitally-driven businesses out there showing the world how it’s done. They are agile and adaptable , and their success is fueled not only by software and technology but by the fact that they do first, fail fast and learn fast.

These digitally native companies are going horizontal in industries that have traditionally been vertical.

And they’re changing everyone’s business.

For Nokia, at its core this digital evolution is about expanding the human possibilities of technology.

The Cloud with a silver lining Digitalization, the Internet of Things and soon 5G are enabling a whole world of new services. The possibilities are endless, but they require new ways of thinking and doing. The successful transition to digital business requires not only new ways of thinking but new kinds of platforms and applications, cloudbased platforms and applications.

Cloud allows businesses to focus on their core business faster and with lower up-front investments.

The Nokia cloud portfolio builds platforms that connect people, businesses and a world of new devices. From mobile and any type of fixed network to the service platforms, it’s the only cloud portfolio to truly deliver end to- end solutions. And it’s helping businesses, enterprises and governments change how they operate with agile services made possible by cloud technology.

End-to-end is only the beginning Today’s networks were designed to handle personal communication and content like voice, video, and web browsing on computers and handheld devices.

The Internet of Things is already here, and both the opportunities and challenges it brings will continue to grow with the introduction of 5G and the massive traffic

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Increased operational excellence Technology is evolving at breakneck speed. But what’s even more important is that so, too, are the ways in which services and networks are built and operated. Cloud, NFV and SDN take operability to a whole new level with common platforms, programmability and automation.

Applications and services will be continuously delivered without long planning and development cycles. And cloud also allows for real-time responsiveness to feedback and changing needs.

With the Nokia cloud portfolio, customers can upgrade and grow existing solutions and deploy new revenue -generating services in days, not months, as it is with traditional systems.

The automation and elasticity provided,for example, by our AirFrame data center solution, CloudBand and Nuage SDN portfolios enable networks to respond faster, deliver more consumer value and become morecompetitive compared to today’s systems.

The Revolution into Digital Business Nokia’s end-to-end cloud portfolio and services are ready for production right now. And right now Nokia is helping customers in all sectors to grow revenue by creating new models for old services, enabling new revenue generating applications and by literally changing how they do business. Nokia is the partner for the digital transformation. It’s the partner for moving business to the cloud. And together with its partners, clients and end users, Nokia is building the foundation for 5G and beyond.

and net income in a single year.

“The changing technological landscape affected that in the intervening time, but in 2016 we achieved all of our targets and our financial results were above the market average in Indonesia.”

He clearly believes the future is bright, and after almost three decades of service to TelkomGroup, it doesn’t seem like Abdus is going to be looking for a new challenge anytime soon.

“Of course we are all very proud to represent Telkom Indonesia,” he adds. “Myself and my

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Š2017 Cisco Systems, Inc. All rights reserved.

Delivering a New & Improved Digital World

colleagues have a very tight emotional relationship with the company.

“Although we’ve brought in some new blood to replace retiring employees, the general turnover of employees is very low and most of us have a long history with this company, such as myself, having worked here 27 years.

“Almost all of the executive team have a long history with the company, and are changing together with

the business.

“In the last five years, we are very proud of what we’ve achieved and also have a very positive view about the company’s business in the future.”

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INDONESIAN MINING

ON THE WORLD STAGE Written by Nye Longman

Produced by Richard Deane 87

PT Merdeka Copper Gold Tbk: Financially and environmentally sound, the Tujuh Bukit Project in East Java is set to be one of Indonesia’s finest mines

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ith production already underway at Indonesia’s Tujuh Bukit Project in East Java, the company in charge, PT Merdeka Copper Gold Tbk, is already proving its worthiness for such an important undertaking. An Indonesian-owned operation, the company is set to oversee a profitable, safe, and sustainable mine that will pay dividends for shareholders as well as the local community. We speak to Merdeka’s CEO Colin Moorhead to discover how one of the country’s most promising mines in recent years will make the grade.

With an estimated Mineral Resource of some 99

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million tonnes of ore at an average grade of 0.8 grams per tonne of gold, and 25 grams per tonne of silver, the near-surface ore deposits contain approximately 2.45 million ounces of gold and 79 million ounces of silver.

The underlying porphyry deposit has an Inferred Mineral Resource of some 1.9 billion tonnes at estimated grades of 0.45 percent copper and 0.44 grams per tonne gold making it one of the largest projects of its kind in the world.

All told, the porphyry is estimated to contain 28 million ounces of gold and 19 billion pounds of copper.

“I come from 30 years mining experience working on some of the largest mines in Australia and PNG,” he explains. “I’ve been asked to build a technical team capable of taking Tujuh Bukit to those standards. I’m proud to say we could take anyone from Australia and they would be impressed with our

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ATTITUDE. RELIABILITY. KINDNESS. AWARENESS. TEAM WORK. ORGANIZED We are a Heavy Equipments Rental company with more than 300 Units of Equipments. We also experienced in Earth Work Construction services, Toll Road, Dam and Mining Services.

PT UNITEDA ARKATO www.arkato.com | uniteda@arkato.com Rumah Gadang Office @ Jalan Pinang Ranti II no 44 Jakarta Timur 13560 – Indonesia Tel: (+62-21) 801 1647, 809 8049

PT Arkadaya Hak www.arkadaya.co info@arkadaya.co

kato Persada om om

PT Arkadiya Fourhaka Indonesia www.arkadiya.co.id info@arkadiya.co.id

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construction and operating standards”. Operations Merdeka is listed on the Indonesia Stock Exchange following a successful IPO in 2015 and controls the companies that hold the Tujuh Bukit mining leases. These consist of PT Bumi Sukesindo (BSI), which is permitted for mining production, and PT Damai Sukesindo (DSI), which holds the adjacent exploration permit. The company is fully engaged in Indonesia’s mining industry and, working to international standards, is focussed on developing the country’s gold, silver, copper and other mineral deposits.

The company has three major Indonesian shareholders, one of which is PT Saratoga Investama Sedaya, Tbk – the country’s premier investmentholding company, PT Provident Capital Indonesia, a leading investor in Southeast Asia, and Pak Garibaldi Thohir. This winning combination ensures that the mine will remain liquid throughout its life.

“The technical mining potential in Indonesia is huge,” Moorhead comments. “It has some of the

“What we aim to do is create an internationally respected, high standard and high integrity mining company” – Colin Moorhead, CEO

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biggest gold and copper deposits This could set us up as a 30 plus in the world. What we aim to do is year copper-gold producer.� create an internationally respected, The oxide gold silver development high standard and high integrity commenced operations in December mining company. Tujuh Bukit has a and produced its first gold in March typical epithermal gold oxide cap 2017, just 18 months after construction that has been developed as an open work started. This mine offers low pit mine, overlying a two billion tonne costs and high margins. Using sulphide porphyry copper conventional open pit mining, deposit that could be the ore is crushed and The number of developed in stages agglomerated before staff at PT Merdeka as a series of mass being stacked on a underground mines. heap leach pad where Copper Gold Tbk

1,500

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the gold is dissolved in a weak cyanide solution.

The pregnant solution is then pumped to an ADR (absorption, desorption, recovery) plant where gold and silver is recovered and produced as dorĂŠ. Initially the operation will process four million tonnes of ore annually and will produce on average 100,000 ounces of gold and up to 300,000 ounces of silver per year over the next decade.

Looking further ahead, Merdeka is also conducting a study on expanding the mine’s heap leach capacity to 50 million tonnes and its production

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PEOPLE ACHIEVEMENT DEDICATION

Madhani provides clients with a complete pit to port mining solution. Our modern fleet of mining equipment includes hydraulic excavators ranging up to 350 tonne & haul trucks up to 150 tonne capacity.

Madhani construction services cover all commodity types and include mine site infrastructure and ore processing/handling facilities. Construction capabilities include airstrips, containment dams, equipment maintenance workshops, site camps, fuel storage tank-farms, explosive magazine facilities and site office complexes. We can supply, install and operate crushing plants, conveyor systems and port loading facilities.

We are always ready to meet the needs of our clients no matter where they are located.

Office Address: PT Madhani Talatah Nusantara, Alamanda Tower 12th Floor, Jl. TB Simatupang Kav. 23-24, Jakarta 12430, Indonesia Web: www.madhani.co.id | Email: info@madhani.co.id

CONSTRUCTION AND MINING CONTRACTORS

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rate from four million tonnes to six million tonnes per annum.

The second opportunity at Tujuh Bukit is to develop a series of underground mines to exploit the massive porphyry copper gold deposit that underlies the oxide mine. “We are currently doing the pre-engineering to put an exploration decline into the porphyry which sits below the oxide mine we are operating,” Moorhead adds. “That upper high grade zone (UHGZ) of that deposit is estimated to contain about 300 million tonnes at 0.8 percent copper and 0.8 grams

of gold.” The decline will help Merdeka acquire the data needed to support a prefeasibility study for the first mass underground mine.

Sustainable mining The journey to developing one of Indonesia’s best deposits, and with that, one of its most reputable mining companies, has not been easy. Issues over ownership and permitting slowed progress before a single brick was laid. And once that had been taken care of, the company had the weather to contend

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of PT Bumi Sukesindo (BSI), which is permitted for mining production, and PT Damai Sukesindo (DSI), which holds the adjacent exploration permit.

The company is fully engaged in Indonesia’s mining industry and, working to international standards, is focussed on developing the country’s gold, silver, copper and other mineral deposits.

The company has three major Indonesian shareholders, one of which is PT Saratoga Investama Sedaya, Tbk – the country’s premier investmentholding company, PT Provident Capital Indonesia, a leading investor in Southeast Asia, and Pak Garibaldi Thohir. This winning combination ensures that the mine will remain liquid throughout its life.

“The technical mining potential in Indonesia is huge,” Moorhead comments. “It has some of the biggest gold and copper deposits in the world. What we aim to do is create an internationally respected, high standard and high integrity mining company.

Tujuh Bukit has a typical epithermal gold oxide cap that has been developed as an open pit

“We have a commitment to spend 1.5 percent of our return revenue capital on local projects” – Colin Moorhead, CEO

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TOTAL EXPLOSIVES SOLUTION! WHY DAHANA? DAHANA’s line of business covers Explosives Manufacturing, Drilling & Blasting Services and Related Services for customers throughout Indonesia and ASEAN Region. Dahana’s explosives users comprise of Mining Industry, both metal and non metal; Quarry & Construction such as cement, asphalt and andesite quarries and construction projects such as dams, roads, tunneling, irrigation, harbor and building demolition; Oil & Gas Sectors such as oil well perforating, seismic prospecting and also defense related.

Owing to its 25-year experience, DAHANA enjoys extensive customer’s trust for its proven exemplary integrated explosives services for various purposes and conditions, including bench blasting, trench blasting and underwater blasting, which are quite complex. Dahana has been able to handle the whole blasting process, starting from the designing, calculation, drill hole preparations, explosive configuration, explosives supply, blasting, up to the operational security.

DAHANA has been in operation for drilling and blasting work in more than 20 sites scattered in Indonesia under the support of its On Site Plant (OSP) and Mobile Manufacturing Truck (MMT), among others, is the one in operation at Mine Site of PT Bumi Suksesindo (BSI) in Banyuwangi, East Java.

Local Content

Customization

Go Green

As a domestic company, DAHANA uses local materials in the country for the products and services it produces. It is a form of approbation and support for the independence of the domestic industry.

With the support of Energetic Materials Center (EMC) as a center for production and research and development of energetic materials, DAHANA is able to answer the challenge for explosive material tailored to a variety of terrains and purposes.

DAHANA constantly grows along with the environment in their business activities The Green Concept applied to both of the management of buildings and products has resulted in numerous awards both nationally and internationally.

Menara MTH 17th floor, Jl. MT Haryono Kav. 23 Jakarta, Indonesia

www.dahana.id corporate@dahana.id

Total Service Solution The integrated Services of DAHANA range from production of explosives, drilling and blasting services to related services such as demolition,warehousing, consulting and licensing as well as the mobilization of explosives, also the explosives services for defense as propellants for large munition and small munition, rocket, PETN and warplanes bomb.

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OUR CLIENTS LIKE OUR VALUES • Openness • Trust and Integrity • Passion for Quality • Teamwork • Responsibility for our Actions • Can-do: Safely PT Prasmanindo Boga Utama, established in 1985, is one of Indonesia’s preferred Catering and Camp Services partners in the Mining and Oil & Gas industries. We strive to be a best-in-class provider of contract foodservice and support services; renowned for our professionalism.

Better known in the market as PBU we predominantly operate in remote locations across the archipelago with leading Indonesian, Multinational and International clients.

Our vast experience can be applied to the most demanding of challenges and we are committed to consistently deliver superior service in the most efficient way, for the benefit of all our stakeholders.

PT. Prasmanindo Boga Utama,Wijaya Graha Puri Block F 33 - 34 Jl Wijaya II , Kebayoran Baru, Jakarta 12160, Indonesia +62-21-7206621 | www.ptpbu.com | pbujkt@ptpbu.com

Email: info@psi-ind.com Website: www.psi-ind.com

PSI Drilling Services & Support Consistently providing successful, cost effective drilling solutions throughout the South East Asian mining & energy sectors. Currently operating in Indonesia, Malaysia, Thailand, Laos & Myanmar

MINING

with. Having centuries of experience locked into its workforce, Merdeka has been able to shrug off these risks, and ensure that the project has a positive impact on local businesses, the community, and the surrounding environment. No small order.

“We had the wettest year on record which hampered our earth works considerably,” Moorhead says. “We were able to handle those impacts and

delays by using our status as an owner-executor. I think if we were using an EPCM arrangement we could have had a large cost blowout.”

Unlike many players operating in the country’s mining space, Merdeka is fully owned by locals, with expats making up less than one percent of its workforce. But the company’s commitment to Indonesia doesn’t end there, as Moorhead explains: “On

2012

The year that PT Merdeka Copper Gold Tbk was founded

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SODIUM CYANIDE SUPPLY AND SERVICES • Dedicated production and supply to the gold mining industry • Secure, certified and robust supply chains • Unmatched safety and environmental performance • Sodium Cyanide handling and awareness training • Facility advice and technical support 24/7

+61 8 9411 8777 | info@agrcyanide.com | www.agrcyanide.com

Productive mines know technology drives their success.

Companies must be smarter, safer, and quicker to respond to change. Their future depends on it.

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Hexagon Mining is built for your future. We recognize that your competitive edge depends on integrating, automating, and optimizing critical workflows. Precision, accuracy, and safety are pivotal to those needs.

Hexagon Mining is the only company to solve these challenges with proven technologies for planning, operations, and safety.

We are a global network of talented mining professionals, delivering technology, service, and support.

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hexagonmining.com @HexagonMining contactus@hexagonmining.com

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the community side we have a commitment to invest 1.5 percent of our revenue on community social responsibility (CSR) projects. “We are tailoring those projects to the needs of the people, which include capacity building, scholarships for kids, and helping businesses. We are in the early days of that.�

The company initially also granted 10 percent of its shares to the government of The Regency of Banyuwangi, which has effectively granted rights for local people to participate in these mining projects. The further intention of the share grant is to provide the community of Banyuwangi Regency with sustainable economic benefits from the gold mining project.

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Protecting local water supplies is essential, and no fewer than six dams have been constructed with this specific purpose in mind. Moorhead adds: “We have two process water dams which take water from the catchment, one storm water pond which is a clay and plastic lined, and three environmental control dams that collects all the runoff. These can also handle the extreme rainfall events up to three times over. “We

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also have a detox system to manage cyanide and arsenic levels in excess process water, backed up by mercury scrubbers if required. Merdeka has also spent over 15,000 man-hours on safety training and continues to build skills and awareness in this regard.

With the Tujuh Bukit Project now in production, Merdeka has its sights confidently set on the future dividends that a mine of this size and quality is certain to bring. Its shareholders

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own and control a number of other Indonesian mining companies with assets and are looking for where it makes sense to consolidate those under Merdeka. “In three to five years’ time we will have that copper project to pre-feasibility level and ready to construct and potentially multiple operating mines producing a significant amount of gold per annum. If we are successful at that we could be a $3 billion company.�

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POWER Written by Wedaeli Chibelushi Produced by Vince Kielty

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WE INTERVIEWED TNB REMACO’S MANAGING DIRECTOR ANUAR YUSOFF ABOUT THE COMPANY’S DIVERSIFICATION PLANS

T

NB Repair and Maintenance Sdn. Bhd. (TNB REMACO) is constantly diversifying itself and riding the changing landscape of the industry. Leveraging on technological development and clientele’s ever-changing expectations, TNB REMACO is set to become a premier brand with holistic solutions in delivering customer’s trust in its services.

TNB REMACO is wholly-owned by Tenaga Nasional Berhad (TNB), of which is the largest electricity utility in Malaysia and one of the largest in the region with an asset base totaling $30 billion and customer base of more than three million users. TNB REMACO was first incorporated as a subsidiary of TNB in 1995. The company is managed independently as a business organization within the corporate structure of the TNB group. While it shares the group’s core vision, values and culture, TNB REMACO nonetheless remains steadfast in the realization of its own corporate destiny.

Managing Director Anuar Yusoff explains the transformation in structure: “TNB REMACO used to be a small department supporting a bigger business. We did repair, maintenance and overhaul for their generating plants - their gas, steam and

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ANUAR YUSOFF

MANAGING DIRECTOR TNB REPAIR AND MAINTENANCE SDN. BHD. (TNB REMACO)

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By itself, Big Data doesn’t generate insight. Insight requires comprehensive domain knowledge, coupled with intuitive understanding of the data. Our advanced analytics platform, provides powerful insight to develop custom service solutions for increased performance, reliability and security.

Our engineering expertise, allows our Digital Services team to see more, and do more, ensuring a flexible and profitable future is also–in sight.

Visit siemens.com/digital-services-energy to learn more.

TNB REMACO

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hydro turbines. It was in 1995 when we became a wholly owned subsidiary of TNB that we diligently geared our resources and expertise in realization of the vision and mission of the company.”

How does TNB REMACO balance diversification with loyalty to its parent power plants? “Previously, we were exclusively servicing TNB’s existing fleet of power plants but have expanded our services for newly developed power plants and are also actively providing services to independent power producers (IPP’s) such as Malakoff and Powertek, as well as oil and gas (O&G) sector,” Yusoff explains. Among the O&G clients serviced by TNB REMACO are Petronas Gas Berhad (PGB), Petronas MLNG and GE Power.

Not only is TNB REMACO diversifying from the traditional energy market, it’s also exploring different geographical spaces. “In the middle of 2004, we started going into international markets,” Yusoff explains. The company has business presence within the South-East Asia and MENA (Middle East and North Africa) region, such as in Myanmar, Singapore, Brunei, Indonesia, Yemen, Kingdom of Saudi Arabia and Vietnam. Yusoff explains that TNB REMACO’s goal is to achieve 10 to 20 percent growth from overseas businesses: “I have to look at every opportunity to grow business locally as well as internationally. For the last three years, we started going aggressively into the Middle East,” he says. Currently, TNB REMACO has three operations

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Where Track Record Matters: Unlocking the Key to Siemens’ Long-Term Partnerships Rising human population, burgeoning urbanization and effects of climate change have emerged as pressing challenges that necessitate for a more sustainable set-up to reduce carbon emissions and improve our quality of life. At Siemens Malaysia, the continuous push in digitalization with ‘big data’ to create new technologies are transforming the way businesses, organizations, power plants and industries operate, charting new efficiency standards for buildings, and drastically reducing costs; undertakings that all contribute towards greater economic goals and national development.

Over the years, Power Generation Services of Siemens Malaysia has had the opportunity to score major contracts with key

clients and local service providers that eventually evolved into meaningful partnerships, mutually attuned to each other’s business needs. A flagship project comes in the form of the TNB Prai Combined Cycle Power Plant - dubbed as the most powerful and efficient gas-fired power plant today in South East Asia - for which Siemens Power Generation supplied two H-class gas turbines that achieved a generating capacity of more than one gigawatt and efficiency rating of over 60%. With more than 20 years experience in local field service, Siemens Power Generation Services closed a long-term service contract, including the placement of two onsite experts at the Prai Power Plant; bolstering customer

relationship whilst rendering immediate service to TNB. In March this year, Siemens Malaysia Power Generation Services unveiled its brand new tool depot in Kapar, Selangor, making it the flagship tooling facility for the organization in Malaysia in supplying tools and carrying out local repairs and refurbishment of high-complex gas turbine components in Asia Pacific.

The Field Service Team of Siemens Power Generation Services in Malaysia is the Regional Centre of Competence for Asia Pacific.

In ensuring that good talents are hired by Siemens, the organization sustainably expands employment and provides constant up-skilling programmes for employees to succeed in their job and stay relevant in the workplace.

Siemens Malaysia’s competitive compensation plans and flexi benefits for employees have translated to an all-time low attrition rate of 4.5% as of 2016 compared to the national market trend at 8.5%. For Siemens Power Generation Services, employing skilled manpower and drawing from a sufficient talent pool like engineers and project managers are critical to ensuring the sustainability of the business and our largebased projects. We also place strong emphasis in employee retention with continuous trainings that would elevate know-how, understanding of topics like quality, digitalization, improvement and cost reduction, and getting employees equipped with new technologies and software tools. As technology transfer is an important component of Siemens’s business, we ensure that a structured transfer of technical knowhow to local business partners and employees are properly executed.

At Siemens, safety is taken very seriously to ensure that employees work in a riskfree environment, and to return home to their families safe and sound. As the Zero Harm Culture initiator, Siemens management plays an integral role in implementing safety measures to prevent incidents, obviating health impairments, and continuously improving on existing systems. With Siemens Power Generation Services, our accountability and ownership over the Zero Harm Culture encompasses site inspections, audits, safety management tools, and safety trainings. Over the years, we have received much recognition for our highest standards in safety and quality performance.

Diversity is also valued in the Siemens workplace, the example being our 43% women representation in Siemens Malaysia workforce.

Siemens Power Generation Services has come a long way in transitioning to its present role that offers a

broad portfolio of products and services from high quality OEM components over field service, repairs as well as plant modernization, to longterm service agreements including operations and digitalization; the transition into the latter to improve efficiency, maximize profitability, increase transparency and enhance data-driven technology.

Siemens Power Generation Services is already deploying digitalization to analyze vast amounts of data, to predict and prescribe future maintenance measures and prevent unscheduled outages by using our digitalization platform ‘Mindsphere’. All these digital solutions would translate to economic savings and lowering carbon emission.

Together with our local partners, it underscores our commitment to advancing the nation’s clean energy agenda and a clear stride in a marathon of partnerships towards achieving many more milestones for the energy ecosystem of Malaysia.

POWER SYSTEM TECHNOLOGY PESTECH’s drive to empower industries with power system technology that fuels social and economic growth in an absolutely safe, reliable and secure manner.

• Power transmission infrastructure and products • Power generation and rail electrification • Built and operate of transmission asset • Embedded system software and product development

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and maintenance (O&M) contracts in Kuwait, two in Pakistan and one in Kingdom of Saudi Arabia.

Although TNB REMACO has built a global presence, its roots are firmly planted in Malaysia: “As of December 2016, we have executed a contract for a Long-Term Service Agreement (LTSA) with Petronas Gas Berhad (PGB), the national petroleum company of Malaysia,” Yusoff says.

PGB awarded a MYR160 million contract to TNB REMACO for the maintenance of its gas turbine and related equipment for the Central Utility Facility (CUF) in Gebeng and Kerteh, for a duration of 6 years.

“Customer requirements keep on changing,” Anuar Yusoff says. “They keep on pushing their expectations.

For an example, TNB used to carry out a planned maintenance outage for roughly 50 days in the late 80s,

but now clients requested a shorter outage period, and we have to work 24/7 to fulfill their requirements. To support that, we need to have highly skilled and dedicated personnel, and the latest equipment.” When the petroleum prices rose in the early 2000s, TNB REMACO lost some of these employees to the O&G sector.

However, the firm worked hard to develop teams of adept and robust personnel, and during the last five years has managed to maintain a low turnover. Yusoff adds, “We have a good remuneration package that is within the best in Malaysia. In terms of competencies, we have a systematic training system which is conducted by TNB owned technical training centre, namely ILSAS. We have a training module where for the first three years of entering into TNB REMACO, all personnel will enrol into dedicated

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training modules that covers both technical and management courses.”

And in embracing the rapid development of the technological changes, TNB REMACO is keeping abreast with the changes by continuously developing highly skilled personnel. “In terms of technology adaption, we regularly maintaining the integrity of that equipment by sending our personnel for various training and certification program, as we definitely cannot afford to have failed equipment or incompetent personnel,” Anuar Yusoff explains. TNB REMACO also has established a comprehensive condition monitoring program for its client in ensuring reliability and efficiency of their equipment. TNB REMACO also prides itself by having a Repair Centre, which is located in Connaught Bridge, Klang. The Repair Centre can be considered a gem for the industry in view of its capabilities for performing various repair and refurbishment activities.

TNB REMACO is collaborating with

Original Equipment Manufacturers (OEM’s) for refurbishment of turbine parts and its components, apart from capability to perform bearing re-metalling, and reverse engineering services, just to mention a few of Repair Centre’s capabilities.

TNB REMACO also prides itself on having a varied field of services for potential customers. Anuar Yusoff says: “We call ourselves a onestop service provider - any client in energy related industry can utilize our expertise and services. We can assist them to design and build a power plant, perform the O&M of the power plant, conduct scheduled maintenance for the equipment, perform the test and diagnostic activities and also refurbish the turbine parts. At the end of the power plant life or its Power Purchase Agreement (PPA), TNB REMACO can also perform the decommissioning of the power plant and sell the parts. In a nutshell, TNB REMACO is capable of performing various activities during

1,000

Number of employees at TNB REMACO

TNB REMACO

the whole life cycle of the plant”.

We ask Yusoff whether TNB REMACO has reached its full capacity.

“Our target revenue in 2020 will be MYR1.9 billion and we will be going more aggressively to overseas market, especially Pakistan,” he states. TNB REMACO also wanted to increase its presence in the oil and gas industry. Currently, its revenue is comprised approximately 90 percent from the power sector and only 10

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percent from the oil and gas sector.

“In the current market conditions for the O&G sector whereby the petroleum price is dipping below USD60 per barrel, there is a promising chance for us in offering our services to the industry players. This is due to the fact that most of the O&G companies are currently opening its door for alternative service providers rather that exclusively engaging the OEMs, of which is of

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“WE CALL OURSELVES A ONE-STOP SERVICE PROVIDER - ANY CLIENTS CAN UTILIZE OUR EXPERTISE AND SERVICES”

premium pricing,” Yusoff says.

TNB REMACO also aspired to establish its name in the EPC (Engineering, Procurement and Construction) business. “We aspire to be one of the most reputable EPC contractors, because before this we were more involved in the Project Management and Consultancy (PMC), but not in the construction side. We are currently preparing ourselves to enter into the EPC business.”

Yusof’s vision for TNB REMACO is clear, and the expansion of the business plan for TNB REMACO was built on a solid track record and coupled by its impressive expansion strategy. TNB REMACO is no longer in a single market platform, and has huge potential to grow rapidly whether it be internationally or into other sectors. We can’t wait to see what TNB REMACO does next.

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Every industry has a digital disruptor.

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”