Use of Artificial Intelligence Introduced to Control Subsidized Fuel Oil in Bid to Reduce Budgetary Expenditure

  • Indonesia’s Coordinating Minister for Maritime Affairs and Investment ("Minister"), Luhut Binsar Pandjaitan, has issued a statement affirming that Artificial intelligence ("AI") will be used in order to control subsidized fuel oil (BBM), hopefully resulting in reduced budgetary expenditure of up to Rp. 50 trillion. In this regard, the Minister has expressed strong support for PT Pertamina’s (Persero) use of AI in order to regulate subsidized fuel users. Furthermore, the Minister has confirmed that AI should also be able to improve targeting in terms of the distribution of subsidized fuel.
  • The Minister has touted the success of the e-Catalog innovation, which has already reduced government spending by up to Rp. 3 trillion. In addition, the Minister has also promoted the success of the Ministry/Agency Mineral and Coal Information System (Simbara), which is operating within the coal sector in order to boost government revenues. One way in which government revenue is being increased is through the settlement of receivables via the implementation of an automatic blocking system, which is being used to enhance business actor compliance. The settlement of said receivables has to date brought in state revenues amounting to Rp. 1.1 trillion.
  • The President Director of PT Pertamina (Persero), Nicke Widyawati, has confirmed that PT Pertamina (Persero) has started to use AI in order to manage both upstream and downstream business in an integrated manner. Through this innovation, PT Pertamina (Persero) is currently processing around 15 million data packets per day that specifically relate to subsidized fuel transactions, resulting in a faster, more accurate and more efficient system.
  • The Senior Vice-President of the Integrated Enterprise Data and Command Center (IEDCC), Ignatius Sigit Pratopo, has also stated that the use of AI exception signals to process transaction data resulting from the digitization of gas stations, as implemented by PT Pertamina (Persero), has resulted in significant cost reductions and has also reduced irregularities in the distribution of subsidized fuel.
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  • Indonesia’s Coordinating Minister for Maritime Affairs and Investment ("Minister"), Luhut Binsar Pandjaitan, has issued a statement affirming that Artificial intelligence ("AI") will be used in order to control subsidized fuel oil (BBM), hopefully resulting in reduced budgetary expenditure of up to Rp. 50 trillion. In this regard, the Minister has expressed strong support for PT Pertamina’s (Persero) use of AI in order to regulate subsidized fuel users. Furthermore, the Minister has confirmed that AI should also be able to improve targeting in terms of the distribution of subsidized fuel.
  • The Minister has touted the success of the e-Catalog innovation, which has already reduced government spending by up to Rp. 3 trillion. In addition, the Minister has also promoted the success of the Ministry/Agency Mineral and Coal Information System (Simbara), which is operating within the coal sector in order to boost government revenues. One way in which government revenue is being increased is through the settlement of receivables via the implementation of an automatic blocking system, which is being used to enhance business actor compliance. The settlement of said receivables has to date brought in state revenues amounting to Rp. 1.1 trillion.
  • The President Director of PT Pertamina (Persero), Nicke Widyawati, has confirmed that PT Pertamina (Persero) has started to use AI in order to manage both upstream and downstream business in an integrated manner. Through this innovation, PT Pertamina (Persero) is currently processing around 15 million data packets per day that specifically relate to subsidized fuel transactions, resulting in a faster, more accurate and more efficient system.
  • The Senior Vice-President of the Integrated Enterprise Data and Command Center (IEDCC), Ignatius Sigit Pratopo, has also stated that the use of AI exception signals to process transaction data resulting from the digitization of gas stations, as implemented by PT Pertamina (Persero), has resulted in significant cost reductions and has also reduced irregularities in the distribution of subsidized fuel.
......

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