AI in Motion: Key Insights from the AIBP x SAP Executive Exchange on Supply Chain
TLDR;
The AIBP x SAP Executive Exchange in Jakarta brought together senior leaders across sectors to address how to build resilient, integrated and digitally enabled supply chains amid rising volatility.
Volatility was framed as a structural reality, making visibility and predictive, data-driven capabilities a prerequisite for profitable operations rather than a “nice to have”.
APP Group and ParagonCorp shared practical examples of integrated intelligence in action, from multi-layer sensing and early warning systems to supply chains designed around real urban and rural customer behaviour.
Many enterprises still operate with fragmented, siloed systems, underscoring the need for synchronised end-to-end planning and industrialised AI that connects suppliers, manufacturers, logistics partners and operations.
Closing the gap between AI experimentation and enterprise readiness requires stronger data foundations, targeted high-impact use cases and clear governance so Indonesian enterprises can turn volatility into opportunity and lead the next wave of AI-enabled supply chain growth across ASEAN.
The AIBP x SAP Executive Exchange in Jakarta convened senior leaders from retail, manufacturing, consumer goods, energy, logistics, and technology to explore one of the most urgent priorities for Indonesian enterprises: how to build resilient, integrated, and digitally enabled supply chains in the face of rising volatility. Held as a closed-door dialogue, the programme provided an intimate platform for executives to benchmark strategies, surface implementation challenges, and understand how artificial intelligence is reshaping end-to-end supply chain visibility. The session opened with remarks from Thorsten Vieth, Sales Director, PT SAP Indonesia , who emphasised the importance of cross-industry collaboration as organisations prepare their 2026 transformation roadmaps.
The New Reality of Supply Chain Volatility
The discussion opened by addressing a central theme: the “volatility tax” that enterprises pay when they cannot detect or address disruptions quickly enough. Even in periods of macroeconomic stability, Indonesian operations remain exposed to supply delays, structurally higher input costs, geographically dispersed production, and unpredictable demand patterns.
Rather than treating volatility as a temporary anomaly, participants described it as a structural feature of today’s operating environment. Visibility was treated less as a compliance or reporting exercise and more as a lever for financial performance. When organisations lack line of sight across their networks, they cannot reallocate stock, adjust production, or respond dynamically to shocks. As a result, predictive capabilities, underpinned by timely and connected data, are increasingly viewed as a prerequisite for profitable operations rather than a “nice to have”. This trend is reflected in AIBP’s Data & AI in ASEAN report, which shows predictive analytics moving into the top tier of AI use cases across the region, with adoption rising sharply as enterprises seek to anticipate disruption rather than simply react to it.
Data Integration and Predictive Response: Lessons from Forestry and Consumer Goods
Practical insights came from panelists who have already begun applying integrated intelligence in complex operational environments. Veronika A. Renyaan, Stakeholder Engagement Manager, APP Group, shared how APP uses geospatial data, drone monitoring, forest information systems, and SAP operational inputs to detect early warning signals across millions of hectares. She explained that APP’s multi-layer sensing approach combines environmental, operational, and risk indicators to form a single, actionable view. “We take data from drones, satellites, forest systems, and SAP, and together they create early warnings that allow us to act before issues escalate,” she said. Her example demonstrated how predictive monitoring can reduce response times and improve operational reliability at scale.
From the fast-moving consumer goods sector, Juan Jose Caldera Barboza, Vice President of Supply Chain Innovation, ParagonCorp, emphasised the importance of grounding digital initiatives in real customer behaviour. ParagonCorp serves millions of consumers across both urban and rural regions, each with distinct demand patterns, access challenges, and service expectations. Juan Jose shared that supply chain systems must reflect these localised realities. “We work with rural customers across Indonesia, and we must understand the nuances of their use cases. Only then can we build solutions that scale,” he said. His insights reinforced that effective transformation requires a deep understanding of Indonesia’s consumer landscape.
Synchronised Planning and AI Adoption Across ASEAN
Providing a regional technology perspective, Rateesh Trakroo , Head of Supply Chain Management, SAP India and Southeast Asia, noted that many ASEAN organisations still operate with fragmented, siloed systems that slow decision-making and constrain real-time visibility. He stressed the need for synchronised, end-to-end planning that integrates suppliers, manufacturers, logistics partners, and operational teams into a unified workflow. Rateesh highlighted how AI is increasingly being used to automate exception handling, analyse disruptions, and deliver recommendations at speed. He cautioned, however, that technology alone is insufficient; strong organisational alignment, data readiness, and governance structures are essential to scale AI effectively. Enterprises that fail to industrialise AI and integrate it across functions risk falling behind competitors who already use connected intelligence to improve service levels and reduce waste.
From Experimentation to Enterprise Readiness
A recurring message throughout the panel was the gap between experimentation and enterprise-level maturity. While many organisations do not formally classify their AI initiatives as strategic projects, employees are already using generative tools in day-to-day work. This informal adoption raises questions around data security, accuracy, and unintended exposure of sensitive information; without clear governance, enterprises may inadvertently push proprietary or strategic content into public models or unmanaged environments. These concerns echo the AIBP ASEAN Enterprise Innovation Market Overview 2024–2025, which shows that 77.2 percent of organisations see data quality and availability as the main obstacles to successful AI implementation. With only 13.6 percent very confident in their current data infrastructure and a further 32.7 percent only somewhat confident, it is clear that ambition is running ahead of readiness.
Against this backdrop, the panel drew a distinction between generic AI and industry-specific AI. General-purpose tools tend to deliver incremental, single-digit productivity gains. The real step-change occurs when AI is trained on domain-specific data and embedded directly into core business workflows, from demand planning and network optimisation to risk management and customer service. The findings from the report reinforce this point: closing the gap between experimentation and industrialisation requires clear ownership, robust and trusted data foundations, and structured adoption pathways that link AI investments to measurable operational outcomes.
The Path Forward: Building Resilient, Data-Driven, AI-Enabled Supply Chains
Taken together, the discussion showed that Indonesia’s supply chain priorities are closely aligned with broader regional shifts captured in the AIBP ASEAN Enterprise Innovation Market Overview 2025–2026. Across ASEAN, enterprises increasingly see technology as a lever for operational resilience and ESG performance. Seventy-one percent of organisations now identify efficiency, risk-based decision-making, and supply-chain transparency as the ESG areas with the greatest technological upside, signalling that data is no longer just compliance paperwork but the infrastructure of credibility and real-time accountability.
Within this context, the panel aligned on three imperatives for Indonesian enterprises. First, organisations must strengthen their data foundations to ensure accuracy, visibility, and trust across all operational layers. Second, leaders should prioritise targeted use cases that address real, measurable pain points while enabling the organisation to build confidence and scale. Third, AI adoption must be rooted in responsible governance that protects data while supporting innovation.
The AIBP ASEAN x SAP Executive Exchange reinforced that Indonesia is at a pivotal moment in its supply chain modernisation journey. With the right balance of technology, collaboration, and governance discipline, enterprises are well positioned to convert volatility into opportunity and lead the next wave of integrated, AI-enabled supply chain growth across ASEAN.
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About ASEAN Innovation Business Platform (AIBP)
Since its inception in 2012, ASEAN Innovation Business Platform (AIBP) is an initiative focused on enabling innovation and strategic partnerships across public and private organisations in Southeast Asia. Through curated engagement activities, AIBP supports the growth of regional government agencies, enterprises and solution providers in navigating key themes such as innovation, digital transformation, and sustainability.
Learn more at www.aibp.sg
