SOE adaptation strategy: Asset optimisation becomes PT KAI's pulse
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Strategi Adaptasi BUMN: Optimasi Aset Jadi Nadi PT KAI
05 August 2021
The Covid-19 pandemic that has been going on for more than 1 year is impacting the decline in PT Kereta Api Indonesia’s passengers. However, the railway SOE (State-owned Enterprise) is continuously adapting by optimising revenue from other sectors.
Cipatat, West Bandung Regency is the destination of Dani Sadikin Gentana, PT Kereta Api Indonesia Operational Region (Daop) 2 Bandung Health Manager, who is taking an inventory and collecting contracts for the use of the company’s assets that have not been monetised.
Dani, who is a doctor at PT KAI, feels that what he is doing as part of PT KAI Daop 2 Bandung Asset Utilisation Task Force is a commitment for the company to survive amid the pandemic.
One of his tasks is to optimise their assets according to the strategic program initiated by PT KAI President Director, Didiek Hartantyo.
This task is out of his area of expertise. However, Dani realises that the slogan ‘Adaptive, Solutional, Collaborative for Indonesia’ used by the company is driving him to do what is necessary for the company and to be part of the solution to become adaptable.
Besides Dani, there is PT KAI Daop 2 Bandung Human Resources and General Manager, Maya, who is willing to travel for hours by car, by motorcycle, and on foot to the remote areas of Tasikmalaya, West Java.
Besides managing employees, Maya realises that the impact of the pandemic cannot be resolved by usual means.
As part of her extraordinary effort, Maya is involved in the collaboration among several sectors of her company to achieve a mutual purpose.
PT KAI Daop 2 Bandung Asset Utilisation Task Force was established on 24 July 2020. The team consists of around 20 managers from Daop 2. They take inventory and collect contracts for KAI assets in their region every month.
PT KAI Daop 2 Bandung Head, Iwan Eko Putra, stated that the effort was the representation of AKHLAK, which was a value that was implemented by the SOE Ministry in serving the country.
AKHLAK is the abbreviation for Amanah, Kompeten, Harmonis, Loyal, Adaptif, dan Kolaboratif (Upholding trust, competent, harmonious, loyal, adaptive, and collaborative).
“Daop 2 is implementing AKHLAK with our effort,” he explained in Bandung on Wednesday (4/8).
He explained that PT KAI Daop 2 Bandung Asset Utilisation Task Force was established due to the decline in passengers because of the Covid-19 pandemic, which must be supported by other sectors.
“We think that, since we have many assets that are scattered across various strategic locations with no outline, an asset task force is required,” Iwan explained.
After the team was established, he said that a master schedule was created. In the master schedule, assets are mapped out based on their locations and sorted by their scale of opportunity.
For now, the assets are separated into zones to optimise high-value assets in three regions, namely Bandung, Garut, and Banjar.
“We map out every existing opportunity, and we also map out what must be carried out,” he explained.
After that, he evaluates every team that consist of units for non-transportation commercialisation, asset security, PAM, as well as unit managers.
“So, the asset security team will go there to carry out measurements, then we will collect the contract every 6 months. If we find new assets, we will carry out follow-up actions,” he explained.
Efficacy of this effort bears result. Realisation from non-transportation services from the 2020 program increased to 104.12%. This percentage is higher than the realisation in 2019 at 61.47%. In the first half of 2019, the 2021 program realisation reached 80.34%.
“Our program was delayed due to the emergency PPKM implemented on 3 July 2021,” he stated.
However, Iwan is optimistic about asset optimisation in Daop 2 Bandung surpassing the realisation in 2020 if the government relaxes the PPKM level.
“We can surpass the realisation in 2020 if PPKM is relaxed. We only need to carry out what have been evaluated by PT KAI Daop 2 [Bandung] Asset Utilisation Task Force in the first half of 2021,” he explained.
Non-passenger
PT KAI President Diretor, Didiek Hartantyo, revealed that the company was carrying out various actions to maintain their cash flow and revenue during the pandemic.
The actions include optimising revenue from non-passenger transportation that is heavily impacted by the pandemic.
He explained that the impact of the Covid-19 pandemic started to show in the middle of March 2020. Passengers declined significantly.
When the government implemented large-scale social restrictions (PSBB) and community activity restrictions (PPKM), the effect worsened.
“If we see the graphs, passenger transportation significantly declined,” Didik said.
By optimising assets, he hopes that the company can secure more revenue to save the company and to compensate the decline in passenger transportation.
This effort is one of three corporate actions of PT KAI to maintain their performance amid the pandemic that has yet to end. The two other efforts are liquidity and efficiency.
“There are at least three strategies besides the main strategy, which is to protect the people. Protecting the people does not only mean KAI employees, but also customers who need to be served with excellent health protocols,” Didiek said.
Based on the data released by PT KAI, 26.54 million m2 of assets have been optimised by tapping other parties. There are 3.99 million m2 of assets that will be optimised soon.
Meanwhile, the contribution of assets to the company’s revenue increased by 8% in 2019, then it increased by 8% again in 2020, then it increased by 7% in the first half of 2021.
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