Pertamina's INOVASI: An analytic game-changer in subsidised fuel distribution

It ensures transparency, efficiency, enterprise credibility, and accountability in the distribution process of subsidised fuel.

Indonesia's state-owned energy giant Pertamina has once again demonstrated its commitment to digital innovation through its state-of-the-art INOVASI (INtegrated Optimisation based on VAluable SIgnals) platform. This AI-powered solution has revolutionised the distribution of subsidised fuel, ensuring transparency, efficiency, and accountability throughout the entire process.

At the core of INOVASI is a factory automation platform developed in-house, capable of analysing big data, and processing staggering millions subsidised fuel transactions data daily. By leveraging artificial intelligence, INOVASI’s subject matter expert rules can swiftly identify potential anomalies, such as subsidised fuel diversion, overstocking, or any form of consumer fraud. This proactive monitoring has significantly enhanced Pertamina's ability to safeguard its subsidised fuel distribution network.

Implementing INOVASI was not without challenges. Pertamina's vast and complex distribution network, involving numerous stakeholders, posed a significant hurdle. However, the company effectively monitors and controls its enforcement mechanisms by incorporating exception signals into key performance indicators.

The success of INOVASI is a testament to Pertamina's dedication to digital transformation. Since its implementation in 2022, Pertamina has achieved substantial cost avoidance, preventing future unnecessary expenditures and financial losses of approximately US$450m for the Indonesian government, or US$250m for the company. The platform's adaptability and scalability make it a valuable asset, not only in preventing future losses but also in supporting Pertamina’s broader strategic goals.
 

“We do believe that INOVASI can be an enabler and accelerator in supporting the company's strategy to foster energy resilience,” said Ignatius Sigit Pratopo, Senior Vice President of Integrated Enterprise Data & Command Center at Pertamina. He further emphasised four key elements that define Pertamina’s successful digital transformation:

Digital Factory: Pertamina's commitment to developing digital solutions across all business lines, from upstream to downstream as well as in new and renewable energy. The Digital Factory archetype includes digital-intensive, data-intensive and analytic-intensive solutions incorporating AI, machine learning, and deep learning. 

Partnerships: Collaborating with industry experts and academic institutions to accelerate digital innovation.

Organisational Capability: Investing in employee training and development to foster digital skills. 

Culture and Change Management: Cultivating a mindset that embraces digital transformation.

Pertamina’s achievement in revolutionising control across its digitalised fuel gas station network throughout Indonesia’s archipelagos has been recognised with Pertamina winning the Indonesia Technology Excellence Award 2024 in the Analytics - Energy category. This accolade validates the company's efforts to harness the power of data and technology to drive innovation and efficiency.

Now in its fourth edition, the Asian Technology Excellence Awards is the region’s premier awards programme that celebrates top technological innovators and solutions that are redefining industries and leading the charge in digital transformation.