Implementation of Digital Technology to

Enhance Operational & Financial

Performance
Iman Darus Hikhman,Tbk.
PT Petrosea ST, MBA.
Deputy Mining Director – PT. Petrosea, Tbk
Petrosea has a distinctive value proposition within the Indonesian and Global market

Value Proposition of Petrosea

Established mining contracting firm with 47 years experience in

the Indonesian mining industry and a strong financial position

Asset enabled industry 4.0 organization achieving benefits from

automation and digitization technologies

Proprietary Minerva digital platform for mining operations

enables better plan compliance and lower costs

End to End mining services provider with internationality

recognized achievements

Capabilities across commodities

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 Implementation of Digital Technology to
Enhance Operational & Financial Performance

Urgency of Digital Technology in Mining

How is digital revolution in mining? How Digitalization and
technologies are transforming the Mining industry?

Digital Use Cases in Mining - Petrosea

Designed to address typical operational pain-points to
achieve a step change in productivity and the values
delivered to the company performance

Critical Aspects to Enrich Digital Transformation

What are key success factor and how Global Lighthouse
Network contribute to Indonesia Mining Industry

Digital Capability Development

The opportunity of digital capability development in Indonesia
to facing the industry global challenges

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Urgency of Digital Technology -The mining industry is in the early stages of the digital revolution

Technological revolution
by industry
SOURCE: Global Executive Study and
Digital Business Research Project
Inflection point

Entertainment
Tourism

Telco

Financial services

Today Retail
High tech
Health
Automotive
Utilities
Infrastructure and security
Mining
Oil and gas Time
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 Urgency of Digital Technology - Global Challenges of Mining Industry (Coal)
Share of Energy Sources in overall global energy consumption
Source: BP Outlook 2019

Million tons of oil equivalent

20,000
Renewable energy investment has “With a sustained lower LNG price, the case
for investments that promote switching from
increased over recent years +1.2%
Coal to gas is now stronger”
*reference world economic forum
15,000

Globally, solar power now generates

cheapest electricity in history
*reference world economic forum
+2.2%
10,000
…and solar technologies cost less
than new coal and gas plant in many
countries
*reference world economic forum
5,000

Decreasing the high cost of coal

mining is mandatory through Digital
Transformation
0
1970 1980 1990 2000 2010 2017 2020 2030 2040

Oil Gas Coal Hydro Renewables

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 Urgency of Digital Technology - Global Challenges of Mining Industry (Green Mining Standard)
There are several option to reduce on-site emission from mines
Source: International Council on Clean Transportation; McKinsey analysis

Decarbonization levers
Change Switch to lower- Electrify gas Electrify Use more fuel- Switch fuel from
processes to carbon appliances (eg, trucks efficient diesel diesel to
improve energy electricity pumps, heaters) engines hydrogen
efficiency source
Fuel Source Electricity and gas Electricity Gas Diesel Diesel Diesel
-5 to -20 -100 -100 -100 -5 to -15 -100

Emission- Leverage advanced analytics to process

reduction data from multiple sources and identify
potential, %
key levers to optimize fuel consumption
(Energy Efficiency)

Notes Scale of impact Absolute emission Depends on Depends on Would require Hydrogen-fuel-cell
depends on reduction depends carbon intensity Electricity- Internal combustion technology is not
specific mix of on local generation of electricity generation mix engine efficiency yet mature
levers and mix of each mining source breakthrough from
process maturity site OEM

Technology
readiness

Capital
requirement

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Three Megatrends that leverage digital operations to achieve a step change in productivity
Operational performance Player Application Impact Miner

Reflex in-field data collection to increase

Productivity +30%
efficiency

Advance analytic into action to maintain Production capacity

Advanced Analytics performance & Cost saving
Automates event recognition
and translation for Real-time enterprise visibility through value
decision making chain
Cost savings +20%

Smart maintenance system Avoid unbudgeted expense

Drill automation for lower grade ore Productivity +15%

Automation
Collaborative and intelligent
automation of processes Autonomous haulage system Productivity +20%

Remote integrated operations center Increase in Production +34%

Connectivity
Increases visibility through links Online tracking system for personnel and Increase productivity and improve
between discrete network equipment safety
nodes
Real time monitoring and proactive dust
Improve safety
management
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 Petrosea Digital Use Cases – Minerva workstream

PROJECT MINERVA
Project Minerva, which stands for "Mining Engineering and Construction Advanced Analytics", as a strategic step in carrying out the
digital transformation of all of our mining operations to catalyze Petrosea's transformation in order to ensure sustainable superior
performance in the years to come. Awarded the Global Lighthouse Network at World Economic Forum in 2019 also won as Operating
Model Master and Talent Accelerator at IDC Digital Transformation Awards Indonesia in 2020.

MINING FLEET MANAGEMENT PERFORMANCE

01 OPERATION
Excellent Crew Management (ECM)
Manage equipment and resource by tracking of operational
performance with apps-based interface and auto alerts.
DIGITAL PRODUCT
Minerva Apps, Advance analytic of performance on mobile
application enabling on spot decision making and live intervention.
Effective validation of Attendance, Digital attendance using
electronic attendance (RFID) linked with manpower and equipment
allocation.
Fuel and Road Analyzer (FRA)
Advanced analytics to identify interventions to reduce fuel
consumptions based on Man, Machine and Environment
(road).
DIGITAL PRODUCT
Fuel Analyzer, Generate heatmap to monitor key operators’
behavior, equipment health parameters, and road conditions which
affect fuel consumption.
Automatic Refueling Strategy (ARES), Developing real-time
monitoring dashboard for automatic refueling assignment and
manage truck refueling process.
02 SYSTEM
04 MANAGEMENT
Fleet Optimization Management (FOM) Mine Dashboard Analytic (MDA)
Real-time dynamic equipment allocation and optimization to Streamline number of reports needed to manage business
capture full potential of Fleet Management System. effectively by Provide “one click away” access to all data.
DIGITAL PRODUCT
DIGITAL PRODUCT
Dynamic Dispatch Dashboard, Dynamically allocate
trucks to excavators by Optimizer manager function and Mine Dashboard (Minedash), Provide periodical
perform advance analytic of Production performance. performance data analysis dashboard to allow problem
solving in the form of an issue tree analysis.
ASSET
03 MINE 06 MANAGEMENT
PLANNING
CHANGE
Mine Planning Optimization (MPO)
05 MANAGEMENT Resource management (ARMS) and
Multi-variable planning optimization with short term and Predictive maintenance (PdM)
long term interval management through Planning People & Mindset Transformation (PMT)
dashboard. Advanced analytics using condition monitoring data into
Capitalized on gamification and e-learning to drive equipment maintenance strategy, and digital asset crew
DIGITAL PRODUCT sustained changes in behavior and inspire continuous management.
improvement.
Mine Operation Control and Monitoring (MOCOM), DIGITAL PRODUCT
Generate real-time boundary compliance and fleet DIGITAL PRODUCT Asset Resource Management System (ARMS), Developing
movement to control short term compliance to design
Gamification and e-learning on Minerva Apps, Application real-time digital solution for maintenance work planning and
Production performance.
of game mechanism (i.e., points systems, ranking and frontline force support & monitoring.
Mine Operation Planning Dashboard (MOPAD), Enable
statistics, rewards and targets) with embedded interactive
long term visibility by projectized mining activity to provide
digital SOP. Predictive Maintenance (PdM), Predictive Maintenance (PdM).
insight of long term strategic planning.
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Petrosea Digital Use Cases - The Scale of Development has been significant
Cybersecurity
Machine learning Cyber physical production systems

Human-machine interface (HMI) Machine-to-machine communication

Big data analytics Industrial internet of things (IIOT) Knowledge management

enabled enterprise platform

100% 100% 250+ 80%

Supervisors Operators Machinery Equipment connected
Connected Tracked Connected for predictive
maintenance

100% 350+ 1,900,000+ 5500+

Project using Drone
Project Sites Report Realtime instruction Sensors
for various
Monitored from HQ Digitized about optimized Connected
applications
routes to truck

1000+
Unsafe condition and
unsafe behaviour
reported by Apps

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Digital Transformation – Key Success Factors

People Capability
Industry best People capability
across Mining value chain

Business Process Management System

Re-engineered business Digitized SOPs with Animation
process to improve Productivity over text for improved
and reduce Wastage Understanding and Compliance

Operational Excellence Digital Transformation

Applying of industry best standard Deployed advanced technology to provide real-time
with continuous innovation insights and embedded digital way of working
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Digital Transformation – Petrosea Minerva Journey

Sky high aspiration Change Management

Start with experience & believe Strong team Bonding
Operational
Excellence
Continuous
improvement
ASEAN INDONESIA
Machine
ASEAN Technology suppliers and Majority of auto companies have made piloting,
manufacturers on Industry 4.0 connectivity but ~90% have not achieved scale up
Connected sensors
Use Cases
79% The Journey of
Identification 55%
MINERVA
Aware of Industry 4.0
Addressing typical Pilot launched
paint point

52% Forming 19%

Defined clear Industry 4.0 Digitalization Team Site-wide
roadmap implementation
Strive for Extra-mile

13% 10%
Launched Industry 4.0 Company-wide
implementation (pilots) implementation

Source: McKinsey Industry 4.0 ASEAN Survey 2017 Source: McKinsey Industry 4.0 Indonesian Survey
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Digital Transformation - Petrosea as Global Lighthouse Network

The Global light house network

The world economic forum has identified several industry sectors, that deploy advance
manufacturing at scale. Petrosea is the first mining company to join that select group of organization.

Generate new value and

1 customer experience

The comprehensive transformation process enable

Petrosea to deliver optimum throughputs and ensure the
sustainability of operational process

Sharing Ideas and lighting the

2 way for others to follow

Digital solution as a service, deploy the digital solution

and provide project management services for digital
transformation

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 Digital Capability in Indonesia - Petrosea as Global Lighthouse Network

Potential Indonesian Technology Providers

Three major challenge to scale up

digital transformation

Organizational model Nodeflux

Data Sains Inteknova
Organizational structure often encourages
siloed thinking Fleet management system
and IoT sensor provider
Konsep 540 Universitas Gajahmada
IoT sensor provider which Potential collaboration for Video analytic and artificial
allow realtime data enlarge 3D printing intelegence
capturing for fuel, tire adoption in Asset
pressure and others Management

Talent
Required talent is not present in the
organization

Platforms & Environments Daunbiru Engineering Mahapatih Kano Kata ai

Setting up hosting platforms is a manual Observe potential Observe the video analytic Big data, Machine learning Big data, Machine learning
process videoanalytic and integrated adoption for Mining road and Cloud transformation and Cloud transformation
pump remote control analyzer and coal getting
activity

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 Thank You
petrosea.minerva petrosea
Petrosea, ‘The First-in-Indonesia’ Production Dozer Push at Tabang Project https://www.instagram.com/petrosea.minerva/ https://www.linkedin.com/company/petrosea/
To improve mine economics
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