Practical Approach in Setting Asset Management System and Capability in a State-Owned Utility

Despite being implemented in various organizations worldwide for over two decades, asset management is considered a new approach in Indonesia. Not many organizations implement and take advantage of implementing this approach. Among others are oil and gas company, power generation, transportation, and operational units of electricity utility. These organizations start by managing assets because it fits their roles and aims for reliability. However, such an aim is only sometimes true for a company that provides a specific service and assets that are part of a plant to deliver this service. Certainly not for PLN, as a state-owned electricity utility. PLN stakeholders comprise the Government, customers, suppliers, mass media, society, and financial institutions. The shareholder is the Ministry of Finance, while the regulators are the Ministry of Energy & Mineral Resources and the Ministry of State-Owned Enterprise. Hence, PLN’s challenge is to be able to identify and manage varying stakeholders’ requirements, which sometimes against one another. A very tight set of targets, including the completion time, have pushed PLN to find the most effective measures to complete the tasks. As an asset-intensive utility, one of the measures is implementing asset management. PLN, as a corporate, started its asset management journey in 2021. Based on the gap assessment against ISO 55001 and 39 subjects AM Landscape results, an implementation program is developed. However, setting up the asset management system and capabilities as part of the program has never been easy, not only because of a wide range of requirements but also due to the local culture. This paper will discuss how the specific approach needs to be applied to succeed in the setup.