Day: 28 February 2022

The president believes these corporations hold vast potential to dominate the essential sectors at the onset and also at the global level in later days.

State-owned enterprises only need a professional helping hand and management to assist them to flourish. This is because regardless of how great a company is, once it falls into the wrong hands, its development would stagnate, and it would end up dying.

It cannot be denied that to survive the current industrial revolution, companies need to prepare their human resources and ecosystem to their utmost best. Business transformation coupled with adaptation to the latest technology is inevitable.

State-Owned Enterprises Minister Erick Thohir spoke of three big dreams for SOEs, with one of them being SOEs’ bigger contribution to the nation.

“Again, if it is not just my wishful thinking, it is how to enable SOEs to make bigger contribution to the country. That is number one,” Thohir wrote on his official Instagram account @erickthohir here on Sunday (Feb 20).

The second aspiration is that the number of SOEs would be smaller but larger in terms of their footprints while the third pertains to optimizing the role of SOE services to the community.

These three wishes have Key Performance Indicators or KPIs.

State-owned enterprises were undergoing a massive, intense, and ongoing transformation.

It has borne fruits, as they achieved an income totaling Rp96 trillion until the first semester of 2021, and a net profit of Rp26 trillion up until June 2021.

In 2021, the minister stated that the restructuring program among state-owned companies had been going well.

It turned out that things became more efficient when they were slimmer. It brought things down, from 108 to 41, and 27 clusters down to 12. It comprises the mineral and coal cluster, forestry and plantation cluster, food cluster, health cluster, finance cluster, insurance cluster, telecommunication cluster, infrastructure cluster, logistic cluster, and others.

Thohir’s ministry had been cutting down the numbers of companies which he deemed too many and instead focusing the existing ones to incorporate more important things.

Among the ones undergoing transformation, the association of state-owned banks showed some tangible results.

The minister stated that these banks racked up to 78.06 percent of profit in 2021, while they remain focused on their own segments. These include BRI (Indonesian People Bank) that caters to MSMEs, the corporate-oriented Mandiri Bank, BNI (Indonesian State Bank) with its international scope, and BTN (State Savings Bank) proffering housing-related financial services.

In detail, the association gained around Rp72.05 trillion in profit by 2021, much higher as compared to their collective profit in 2020, which at that time was capped at only Rp40.34 trillion. BRI contributed Rp 30.76 trillion to the pool, Mandiri had Rp28.03 trillion, BNI collected Rp10.89 trillion, and lastly, BTN gave about Rp2.37 trillion.

Coordinator of Indonesian Millenials for MSMEs and Businesses, Syahrul Ramadhan, lauded the minister’s initiative that had encouraged these banks to gain such achievements.

Under Thohir’s command, poor quality directors were replaced with better ones as a means to generate more profits for the state.

Moreover, mapping of business models was conducted since state-owned enterprises had so many businesses to the point that no one was even sure what their focused sector was.

Deputy Head of Commission VI of the House of Representatives Martin Manurung seconded the notion that adjustments in State-Owned Enterprises were still ongoing. Although there were issues here and there, overall, it was doing well.

Indeed troubles from the past still lingered on, though the Commission VI and government were both committed to the betterment of the situation, as was apparent from their meetings.

Manurung affirmed that President Joko Widodo’s (Jokowi’s) hopes for the future to be materialized through a State-Owned Enterprises Law Revision, which was currently being prepared by his administration. He also welcomed Jokowi’s spirit to promote investments.

Government Capital: the rules

Essentially, the commission and the ministry are on the same boat on some aspects in the quest to improve state-owned enterprises. These include restructuring, holdings, clusters, and investments, among others.

The commission also agrees to some suggestions made by companies that received Government Capital for corporation acts.

In some instances, the discussions on the Government Capital cannot be avoided. It should be ensured that the capital is used for boosting the company’s productivity, thereby offering significant contributions to the state in the form of dividend, tax, and more.

It has often been stressed that the capital should not be used as a way to cover losses caused by faulty management.

President Jokowi drew attention to several companies that had received too much government capital as a means of protection. This was despite the fact that they made no meaningful contribution for the state.

The president gave a stern warning that no such cases should recur. In fact, he also suggested that the dying companies be closed right away in lieu of having government capital being handed over to them.

The president has sought for such action not out of malice or cynicism but rather based on the spirit to see the companies achieve success together, an expectation which hopefully did not end up as mere dreams.

Misconception 1: ICT industry contributes to increased carbon emission. According to the GeSI’s SMARTer2030 report, the ICT industry is only expected to account for 1.97% of global carbon emissions by 2030. More importantly though, other industries are expected to reduce their own carbon emissions 20% by applying ICT technologies, a total amount 10 times the carbon emissions of the ICT industry itself. These secondary savings are called carbon handprint. The size of this carbon handprint has made ICT infrastructure increasingly important in many national strategies. Huawei itself predicts that 1 YB of global data will be stored on the cloud by 2030. This means that 150 million tons of carbon emissions can be saved each year if current infrastructure is equipped with greener, all-optical transmission technologies. These savings would be equivalent to planting 200 million trees – an amount that would cover the entirety of Europe in forest.

Misconception 2: There is over-focusing on supply chain emissions, which are regarded as the largest cause of carbon emissions for network equipment. As Dr. Song described in his presentation, if you look at the entire life cycle of network equipment, only 2% of its carbon emissions are generated during manufacturing, while 80-95% are generated during usage. Dr. Song therefore proposed that the key to reducing ICT industry carbon emissions will be adopting innovative technologies to improve energy efficiency.

Misconception 3: Green development is only about green energy. While the development of solar and wind power are important to green development in the ICT industry, huge gains can be achieved by systematically improving the energy efficiency of telecom networks. To this end, Huawei released a three-layer green solution at this summit to systematically improve network energy efficiency through “Green Site, Green Network, and Green Operation”, helping carriers achieve “More Bits, Less Watts”.

Misconception 4: Network energy efficiency is equal to the sum of energy efficiencies of its telecom equipment. The energy efficiency evaluation of a single equipment box is not enough to carry out comprehensive, scenario-based planning and construction decisions. Huawei recommended establishing a unified, standardized indicator system (NCI) to accurately evaluate and formulate energy-saving policies for entire networks by measuring the energy efficiency indicators of main communications equipment, site auxiliary equipment, transport networks, and data centers.

Misconception 5: Energy saving should not impact any network performance indicator. The truth is, there is trade-off between energy saving features and some network indicators. However, energy saving features can be adopted at the expense of peak rates and some other indicators, but without impacting actual user experience. In Germany, an intelligent shutdown solution has been deployed in shopping malls at midnight. Although it slightly reduces peak rates, it reduces site energy consumption by 10% without affecting user experience.

During his closing remarks, Dr. Song delivered five suggestions for green development in the ICT industry: “First, we should vigorously develop the ICT industry to enable green development in other industries. Second, we must pay more attention to carbon emissions of ICT infrastructure during usage rather than just during manufacturing. Third, the systematic solution of “Green Site, Green Network, and Green Operation” will help carriers continuously improve network capacity and reduce power consumption per bit, achieving “More Bits, Less Watts”. Fourth, we must define a unified energy efficiency indicator system to identify the main problems of energy consumption. Fifth, watts are decided by user experience.”

MWC22 Barcelona will run from February 28 to March 3 in Barcelona, Spain. Huawei will showcase its products and solutions at stand 1H50 in Fira Gran Via Hall 1. Together with global operators, industry professionals, and opinion leaders, we will dive into topics such as industry trends, GUIDE to the Future, and green development to envision the future of digital networks. For more information, please visit: https://carrier.huawei.com/en/events/mwc2022.

Photo – https://mma.prnewswire.com/media/1754986/PhillipSongPhoto.jpg

The global digital economy is developing rapidly, and over 50% of global GDP will be digitalized in 2022. Many countries and regions, like China, South Korea, and the EU, have already announced huge investment plans for the digital economy. As ICT infrastructure providers, operators will play an increasingly important role in leading the development of the future digital economy.

Three levers to shape the future of the digital economy
During his keynote, Ding explained that the vitality of digital economy can be evaluated by three factors: connection density, computing diversity, and carbon reduction intensity, and that these factors give operators the levers they need to shape the future of the digital economy.

By increasing connection density, operators can grow their 5G user base and expand their business scope. By diversifying their computing resources, operators can create synergies between connectivity and IT to boost enterprise digitalization for new growth. In carbon reduction, new green ICT solutions, like those Huawei provides, will increase network capacity and cut the energy consumption per bit for greener development.

5G has come a long way
Commercial 5G deployment started two years ago, and since then, the numbers of 5G networks, users, and devices have grown rapidly. By the end of 2021, more than 200 operators have deployed commercial 5G networks, servicing more than 700 million 5G users. There are currently over 1,200 commercial 5G devices in use. This growing user base is bringing commercial returns to operators while driving continuous network rollouts.

During the event, Ding shared 5G success stories from various operators and showed how new 5G applications like AR, VR, and new video are offering users new experiences. Flexible 5G pricing models are also benefiting both users and operators and driving rapid growth in the 5G user base.

In China, 5GtoB private networks have been deployed at scale in multiple industries. By the end of 2021, Huawei has signed more than 3,000 commercial 5GtoB contracts with Chinese operators and partners, gaining a wealth of experience in industry applications. One highlighted example was from China’s Inner Mongolia, where a coal mine is using 5G to remotely control shearers. Since 5G was deployed, coal miners have been working in a safer and more comfortable environment.

Connectivity + IT for new growth
According to Ding, as more industries are going digital, IT infrastructure will need to be rebuilt to drive more efficient operations. By creating synergies between IT and CT, cloud and edge, and cloud and networks, Huawei hopes to help operators go digital and intelligent and achieve new revenue growth. In Asia Pacific, for example, Huawei’s OneStorage solution has helped one operator cut TCO by 30%.

Green ICT: More Bits, Less Watts
Green ICT is key to sustainable growth in the digital economy. The ICT industry is providing new technologies to help other industries reduce their carbon footprints. In fact, these savings are predicted to amount to ten times larger than the ICT industry’s own footprint. At the forum, Ding also shared Huawei’s green strategy: More Bits, Less Watts. With its full range of green solutions, including green site, green network, and green operation, Huawei aims to help operators increase network capacity and cut the energy consumption per bit. Huawei also proposed the Network Carbon Intensity index to quantify the carbon emissions of the ICT industry and help operators make their green strategy a reality.

At the end of his speech, Ding proposed Huawei’s GUIDE business blueprint, which aims to help operators develop the five key capabilities required for business success: expanding services, innovating efficiently, leveraging resources, competing on value, and contributing to society.

MWC22 Barcelona will run from February 28 to March 3 in Barcelona, Spain. Huawei will showcase its products and solutions at stand 1H50 in Fira Gran Via Hall 1. Together with global operators, industry professionals, and opinion leaders, we will dive into topics such as industry trends, GUIDE to the Future, and green development to envision the future of digital networks. For more information, please visit: https://carrier.huawei.com/en/events/mwc2022.

Photo – https://mma.prnewswire.com/media/1754974/Huawei.jpg