The Supply Chain Strategy In Electronic Voting Business Of Pt Inti (Persero)

Abstract

PT Industri Telekomunikasi Indonesia (Persero) or INTI confronted two critical challenges in its electronic voting (e-voting) business for Village Head Elections (Pilkades) beginning in 2013. The company maintained a minimal market share of only 1-19% during the 2013-2016 period, primarily attributable to its limited role as a single-component supplier of ID Readers within the seven-device e-voting ecosystem. This challenge was compounded by an extensive production lead time of three months for the ID Reader, resulting from complete dependence on manufacturing and assembly processes in China. This research employs a case study methodology to analyze and propose supply chain strategy solutions, focusing on two strategic interventions: product bundling through comprehensive end-to-end e-voting solutions, and supply chain restructuring via localization of ID Reader casing production while maintaining electronic component imports from China, complemented by optimized regional procurement processes. The implementation from 2017 to 2020 demonstrated transformative outcomes, with market share surging to 94% and maintaining stability. Financial performance showed remarkable improvement, culminating in net profit reaching IDR 5.86 billion by 2020. Operational efficiencies achieved included reduction of ID Reader production lead time from 90 to 30 days and a 50% decrease in Cost of Goods Sold. The study concludes that the integrated approach of product bundling and strategic supply chain optimization effectively enhanced revenue generation, market dominance, and profitability, providing a replicable model for similar technology implementations in developing markets.