Company background

PT Indosat Tbk (“IDX: ISAT”) is one of Indonesia’s leading digital telco companies, both online and offline in Indonesia. Indosat is part of Ooredoo Group, an international communications company operating across the Middle East, North Africa and Southeast Asia. Ooredoo Group delivers the leading digital experience through a broad range of content and services via its advanced, data-centric mobile and fixed network.

Indosat offers communication channels for prepaid and postpaid cellphone users under the IM3 Ooredoo brand, other services provided are voice communication channels for fixed telephones including international direct dial IDD (International Direct Dialing). Indosat Ooredoo also provides multimedia, internet and data communication services (MIDI = Multimedia, Internet & Data Communication Services).

Business Challenge

Currently, Indosat have many segments, areas, regions and sites, which have a complex rules of allocation model. It needs a lot of time and effort to generate profitability analysis by segments, areas, regions and sites. Profitability analysis is a key of management reporting, which gives insight about company performance. It gives Management the baseline for taking strategic decisions.

Goals

With the company's expansion and strategy, Indosat wants to accelerate generating profitability analysis. Instead of spending countless hours manipulating data for analysis each reporting period, Indosat Accounting team can have more time to analyze profitability report and give insight to management.

Solution

Indosat is one of the customers of PT Metrodata Electronics Tbk (IDX: MTDL / “Metrodata”) who have successfully worked on projects with a high level of satisfaction. Metrodata has expertise in the application of information technology—especially Oracle Fusion EPM application solutions. Metrodata offers Oracle Fusion EPM Profitability and Cost Management Cloud Service (PCMCS). Oracle Fusion EPM PCMCS is an easy-to-use, business-owned solution with a wide range of uses. Among them, PCMCS can complement ERP business processes that support allocations which the ERP system does not practically address, such as allocations requiring attribution that are not supported by the general ledger chart of accounts. With Oracle Fusion EPM PCMCS, business users can easily make a change in allocation assumptions and compare the new method with the previous method through inherent scenario analysis capability. A point-and-click interface makes it easy to create or alter complex allocation rules using the best practice framework. The framework includes validation reports for every step of the allocation process and an auto-documenting feature that allows allocations to be easily audited. This is important when an allocation method is scrutinized internally (e.g., shared service) or externally (e.g., transfer pricing). Furthermore, allocation drivers can be easily re-used across different business processes in a very consistent manner. This significantly improves the control across all reporting processes.

Results & Benefits

With the successful implementation of Oracle Fusion EPM PCMCS applications, currently Indosat can enjoy the benefits, including:

1. The ”Management Ledger” allocation engine provides a best-practice, business-owned framework for complex business allocations, such as recursive and multi-tiered allocations.
2. The data management capabilities enable automated data collection and mapping–improving controls and significantly reducing manual data effort.
3. The rule balancing feature provides unparalleled transparency to each step of the allocation calculation, eliminating the “black box” effect associated with custom allocation solutions.
4. The hierarchy and dimension management are based on the Oracle Fusion EPM PCMCS Cloud framework and ensures alignment with other source financials systems.
5. Configurable dashboards and reports deliver boardroom-quality reporting to the business user community.
6. Microsoft Office add-in, Smart View, delivers ad hoc analysis and Excel-based interactions.

For more information, please contact:

Naaman.Yulianto@metrodata.co.id; info.metrodata@metrodata.co.id