Golden Energy Mines Tbk. (GEMS) is a public company engaged in coal mining. The company began its commercial operations in 2010 and operates under the Sinarmas business group.
GEMS holds coal mining licenses for regions in Jambi (through KIM Block), South Sumatra (through BSL and EMS Group), West Sumatra (through EMS Group), South Kalimantan (through Borneo Indobara), and Central Kalimantan (through PT Trisula Kencana Sakti).
The company’s total mining area covers approximately 66,204 hectares, with total resource potential reaching 2.91 billion tons and total reserves reaching 1.03 billion tons.
The coal mining operations of Borneo Indobara (BIB) are divided into two blocks: the western block (24,100 hectares) and the eastern block. The Coal Mining Business Agreement for both blocks is valid until 2036. The coal resources are around 1.696 billion metric tons, with reserves of approximately 625 million metric tons. Coal production capacity has reached up to 54 million tons this year. BIB is also continuously developing infrastructure capacity to achieve higher coal production.
Three Stages
The background for digital transformation is driven by several factors, including the target to increase coal production. Additionally, GEMS aims to measure mining operations using technology, especially in the current digital era. The business also faces challenges related to costs and profits. As a result, GEMS management decided to immediately pursue digital transformation by establishing a dedicated division, the Digital and Technology Solution Division.
According to Dimas “Omdim” Sutejo, the Chief Digital & Technology Officer of GEMS, one of the company's business units, BIB in South Kalimantan, has successfully undergone digital transformation, which has significantly impacted the company’s operational performance.
The digital transformation at BIB is divided into three stages. The first stage, before 2020, was when digitalization had already been introduced at BIB or within the GEMS environment. However, it was referred to as early digitalization, and the process was called pre-digital.
At that time, digitalization was introduced in the form of applications and websites. The company also began building a basic foundation, using radio technology for connectivity within the mining area owned by GEMS.
The second stage, in 2021/2022, saw BIB starting to organize digital transformation with the establishment of a special division, Digitech, which began to accommodate customer feedback, user requirements, and basic automation.
The third stage, from 2023 until now, is referred to as accelerated digitalization. BIB has developed around 30 applications that provide added value and value creation for the company. Now, in terms of digitalization, both people and processes have become more major, resulting in numerous benefits.
Omdim explained that the 30 applications at BIB are divided into four aspects: HSE (Health, Safety, and Environment), social networking, back-office support, and mining operations. The company uses two approaches: agile methodology and interoperability (the ability of applications and systems to securely and automatically exchange data without barriers) for the applications they use.
"This is the digitalization we have developed in our company group. We try to digitalize everything from the pit (the large hole excavated on the surface or in the shallow underground layer) to offshore (offshore areas), and even up to marketing," he said.
According to Omdim, everything is mapped and implemented in a spot-on manner.
"Because if we use a deep bank implementation, users will surely get bored waiting for the results. The job of Digitech is to integrate everything into a unified system to be displayed in the Command Center and business intelligence, which serves as the basis for management decision-making," he explained.
In 2023, BIB also introduced the Command Centre Room (CCR). All aspects of digitalization and data are channeled into the CCR, allowing BIB management to conduct remote monitoring. Compared to field visits, this method is more comfortable and safer, as it helps avoid the risks of fatigue and injury.
Meanwhile, digitalization to enhance the effectiveness and efficiency of coal production operations is also present in the flow of the crushing plant, which is controlled by Supervisory Control and Data Acquisition.
Sustainable Innovation
For continuous innovation in improving safety and productivity in mining activities, BIB introduced the Mining Eye technology. "Previously, if I wanted to see the actual condition of the pit, I had to contact the team on-site to send photos or the latest information about the pit. With Mining Eye, I can simply click on it myself to get a clear and detailed image. That's the advantage of Mining Eye technology, supporting monitoring and providing information related to mining operations," Omdim explained.
For networking, BIB developed fiber optics along the hauling route (the process of moving and transporting materials) and will continue to enhance it. They have also introduced low Earth orbit satellites, such as Starlink, to strengthen signals in blank spot areas around the mining site.
"We also aim to establish a safety work base and increase productivity through digitalization," he added. BIB has also created a specialized ERP (Enterprise Resource Planning) system for mining, called Cold Chain Management, which involves many people as it covers multiple aspects.
"Actually, digitalization at Borneo Indobara has been in progress over the past five years, with the last two years being a massive transformation. With digitalization, it is hoped that BIB’s increasingly large operations will become more effective, efficient, and cost-competitive," said Omdim.
He also mentioned that one of the safety risks at BIB is the large number of workers with diverse backgrounds and experience levels. It is hoped that digitalization will make mining operations smarter, leaner, and more resilient, improving both operational and workplace safety.
Towards Mining Industry 4.0, BIB projects an annual increase in coal production through the development of a digital transformation program across all operational activities. This includes the integration of all coal production data within Cold Chain Management, vehicle load measurement while in motion through Way Motion, which is integrated with Teman Indobara technology, and Si Cantik, an analytical camera system that functions as a safety and security monitor for driving, operating 24/7.
BIB has three game-changing digital system products:
Venus: A fleet management system deployed across 1,000 hauling trucks at BIB.
Way Emotion: A system that allows trucks to be weighed without stopping, whether they are double-trailer, single-trailer, or small trucks.
Si Cantik: Using Artificial Intelligence (AI) and machine learning, this system is deployed onto standard CCTV cameras with specific use cases, enabling it to analyze the behavior of vehicles, humans, or other objects.
Benefits of Digitalization
According to Omdim, digitalization at BIB has brought numerous benefits. For example, the hauling queue during the weighing and closing process has been reduced, allowing production capacity to be optimized. Additionally, the visibility that was previously limited to the work area and communication through WhatsApp can now be monitored from the Command Center Room. This also facilitates better monitoring of the barge evaluation process.
Furthermore, loading performance is maintained through a check-and-balance system. As a result, operational processes have become more measurable and safer, ensuring that BIB's production targets can be achieved effectively and efficiently.
"Overall, the impact of digitalization at Borneo Indobara includes workforce transformation, production improvement, safety and loss prevention, as well as enhanced productivity," Omdim emphasized.
In the last 10 years, BIB's production has grown tenfold: in 2014, production was still around 4 million tons, but by 2024, it is expected to reach 46 million tons. The target for 2025 is about 50 million tons, and by 2026 and beyond, the target is set at 54 million tons.
"Besides increasing production targets, we are also developing the capacity for Call Production Plan, barge loading conveyors, and other systems," Omdim said.
