Limi Mulyanto
IPMI International Business School
Amelia Naim Indrajaya
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Paper seems to exist in every aspect in our lives. From food packaging, books and magazines to office documents, paper products are commonly used every day by people and businesses around the world.
Indonesia’s Ministry of Industry stated that the world’s paper demand is expected to increase to 490 million tons by 2020. Currently, Indonesia is considered as one of the top 10 largest pulp and paper industry producers in the world. During 2020, it was approximately 13 million tons of paper was produced in Indonesia and estimated to increase by 5% in 2021. Paper production is also the third most energy-intensive of all manufacturing industries, as it uses 12% of the total energy in the industrial sector today. The problem with paper use is not limited to its production; when papers rot, they emit more greenhouse gas.
In Indonesia, an individual consumes 27 kilogram of paper per year on average. With 278 million of population (per April 2022), Indonesia’s paper use could reach 7,5 million tons of paper annually and not all these papers are used productively. As the country lacks a proper infrastructure and policy for nation-wide recycling, paper waste accounts for 28% of the total waste piling up in their landfills.
Considering the impact of paper production and paper waste to the environment, many companies around the world have begun their steps in reducing their paper use. Perum Peruri (“Peruri”), as a State-Owned Enterprise (SOE) in Indonesia which fully owned by the Government of Indonesia, envisions to become a world-class integrated security printing and security digital solutions corporation.
Dwina Septiani Wijaya, who appointed as the President Director of Peruri since 2017, encourages the business model innovation, as well as business transformation in Peruri through digital security platform to anticipate the business competition.
"To anticipate the highly competitive environment and the rapid growth in digitalization, Peruri as SOE experienced in producing several state's security documents continuously improving the business transformation in digital security platform. As Peruri is experiencing to serve the Government for above past five decades, Peruri develops digital security platform to assist Government, other SOEs, private sectors and small-medium enterprises to guarantee the authentication in distribution supply chain controls, maintaining company brands protection and improving customers' satisfaction. Peruri is also committed to enhance new businesses that will contribute towards the sovereignty of country as well as development of prosperous society. To achieve this, Peruri aims to contribute to reduce the paper waste, without removing the security elements, by launching secured digital signatures product in 2019”, Dwina explained during the interview.
The secured digital signature consists of electronic information attached, associated or related to other electronic information that is used as a verification and authentication. This security feature can be used as evidence of the identity of a party that can indicate the legal subject of the party. Digital signatures are implemented in electronic certificates so that electronic documents used as part of transactions can be known for their validity and authenticity.
Through business innovation of digital signatures, Peruri addresses the UN Sustainable Development Goal #8 – Decent Work and Economy Growth. Starting from the initiative to enhance awareness in society to take advantage of digitalization and reduce paper use, it can support the Sustainable Development Goals.
It is important for a company like Peruri to contribute for the sustainable future of society and environment as part of the company’s core business. By conducting the innovation in business model development, the digital signature solutions allow people to become more eco-friendly.
The main advantages of Peruri’s digital security service through digital signature solutions are to ensure data confidentiality, protect document’s content and data integrity, guarantee data authenticity, and guarantee non-repudiation of electronic documents, so that its validity and authenticity can be known.
This secured digital signature business has a positive impact because it may trigger to increase economic growth and prosperity, improve the national digital literacy, and accelerate the digital technology adoption.
Apart from making it easier, digital signatures are also considered to provide security during a pandemic because it minimizes physical contact. In fact, digital signatures also provide more benefits for almost all business sectors, including small and medium-sized businesses. Digital signatures solution is one of the technologies may be considered necessary, where compared to conventional signatures, digital signatures are considered to have many benefits.
1) Environmentally friendly – reducing the use of paper documents
The obvious advantage that can be used from digital signatures is from the aspect of form in the form of digital data. So that legal processes and approvals that require signatures are no longer in the form of physical paper.
The use of digital documents will make the company more agile. The reason is because the company is relatively able to get a place of business that is close to the target market.
In addition, by not using paper, enterprises can participate in nature conservation efforts by reducing the use of paper. The impression that consumers are now starting to realize about the importance of nature conservation will make business brands more trusted because the use of less paper will maintain the sustainability of the forest as a paper resource.
2) Increase productivity
Another advantage that can be obtained by using digital signatures is that the signature process can be done online. The process that can be done online will make it much easier for officers from the company to provide documents to the authorities anytime and anywhere.
3) Digital documents are safer than physical documents
The aspect of concern about digital documents is in terms of security. Most people think that digital documents are easier to copy and imitate because the copying process is so easy for anyone to do. However, with digital signatures, documents become supported by much more sophisticated security technology.
The encryption technology found in digital signatures will make documents more difficult to copy by unauthorized parties. Encryption also makes the signature given to the document unable to be imitated by anyone without proper authorization.
4) Business continuity and profitable for consumers
The possibilities for using digital technology are endless. Because if most people think digital signatures will only benefit the company, in fact digital signatures can also be profitable for consumers. Especially from the aspect of ease of doing approval from the second party which has often been constrained by distance, place, space or geography.
5) Cost savings and time efficient
Growing and developing is a major concern that requires a lot of effort such as cost and time efficiency. To be able to achieve this, any type of enterprises, including small and medium businesses, can take advantage of digital signature solution.
Digital signatures are solution for businesses because they have been proven to be able to provide cost and time efficiency for company operations. Businesses no longer need to incur unnecessary costs such as printing files to do signatures. Businesses also no longer need to spend money to send documents to areas that are so difficult to physically reach. The costs that previously had to be incurred to produce a collaboration or business operation became very minimal and could be allocated for other purposes.
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Dwina Septiani Wijaya, President Director of Perum Peruri
Perusahaan Umum Percetakan Uang Republik Indonesia (Perum Peruri) is trusted by the Indonesia Government as the one and only company that prints Rupiah currency notes and other security state-owned documents. The main competence as a guarantor of authenticity is inherent in every product produced by Perum Peruri. Along with technological developments, Peruri continues to be committed to producing quality products with the latest security features.
In the future, Perum Peruri will consistently operate its business as a trusted authenticity guarantor by adapting the advanced technology and security digital platforms. Peruri continues to improve its capacity and competence in order to envision of becoming a world-class integrated security printing and security digital solutions corporation.