Adaro Energy is a vertically integrated energy producer in Indonesia with businesses in the coal, energy, utilities and supporting infrastructure sectors. Adaro Energy’s primary site is in South Kalimantan, where Envirocoal, a low-pollutant thermal coal, is mined.
Adaro Energy also has metallurgical coal assets across the spectrum from semi-soft coking coal to premium-hard coking coal in Indonesia and Australia. Adaro continues to develop its noncoal mining businesses to provide a more stable earnings base; it also aims to enter the renewable energy sector, with biomass, hydrogen and solar power expected to become pillars of their new environmental, social and governance (ESG) strategy to reform and diversify into greener directions.
Adaro was continuing to grow successfully, but a lack of centralized data and standardized business processes made it challenging to manage financial consolidation, product costing, procurement and maintenance processes. With the goal of supporting business integration and more efficient governance for cost reduction and production efficiency, the company selected SAP S/4HANA as its new groupwide ERP solution. Consolidating to a single solution increased the need for reliability, stability and scalability, so Adaro chose SUSE Linux Enterprise Server (SLES) for SAP Applications as its strategic platform for SAP S/4HANA.
Working with Cloud Comrade, a leading Google partner in Singapore, Adaro deployed its new ERP landscape on Google Cloud Platform, taking advantage of the automated deployment services and best practices built into SLES for SAP Applications to accelerate provisioning.
The new SAP S/4HANA landscape on SLES consolidates financial information that was previously spread across multiple repositories in different systems. As a result, Adaro finance teams now have fast, reliable access to all the information they need, helping the company grow more efficiently.
Journey to SUSE
Creating a single source of truth across the value chain
Across eight lines of business and more than 70 business units, Adaro continues to experience strong growth, but a lack of centralized data and consistent business processes was creating challenges for standardization, financial consolidation, product costing, procurement and maintenance processes.
Tasked with consolidating a complex mix of on-premises infrastructure, different ERP applications and a wide range of configurations and customizations, the company’s head of IT, Eka Suharto, sought an enterprise resource planning (ERP) solution and technology implementation partner that could harmonize the key operating pillars within Adaro’s strategic value chain.
Adaro aimed to implement a single new ERP system — codenamed 1Adaro ERP — for the entire group, with the goal of supporting ongoing business integration and more efficient governance for cost reduction and production efficiency. In an increasingly complex regulatory landscape, the new ERP system would also help create an environment for streamlining complex asset management and finance functions.
Adaro chose SAP S/4HANA as its new ERP system and initially opted to deploy the solution on SLES for SAP Applications for two business units, Sapta Indra Sejati and Adaro Metcoal.
Among Adaro’s goals for 1Adaro were to reduce extraneous on-premises infrastructure and to maximize the availability, performance, functionality, security and regulatory compliance of the new ERP environment. For these reasons, the company decided to deploy on the Google Cloud Platform (GCP).
A stable and secure foundation for future scalability
To ensure a smooth and effective deployment, Adaro appointed Cloud Comrade — one of Singapore’s leading cloud specialists — as its implementation partner.
“Based on our experience in ERP deployment and migration, and our close collaborative consultation on Adaro’s business needs for the future, we were confident that SLES for SAP Applications was the ideal choice for creating the truly unified and integrated data environment required for 1Adaro ERP,” says Andy Waroma, co-founder and co-managing director of Cloud Comrade.
“Working with Cloud Comrade, we selected SLES for SAP Applications to support our groupwide SAP S/4HANA deployment as it is the preferred platform of SAP itself and the most popular platform globally for the SAP HANA real-time database,” adds Suharto. “The SUSE platform is specially tuned for the requirements of SAP S/4HANA, which translates into easier deployment and optimal performance.”
“Through our work with Cloud Comrade and the stable foundation of SUSE Linux Enterprise, we have been able to streamline our deployment of SAP S/4HANA on Google Cloud Platform, helping us to provide innovative solutions to business users.”
Main drivers for working with SUSE
Accelerated SAP S/4HANA migration
Adaro capitalized on Cloud Comrade’s extensive knowledge of SAP S/4 HANA implementations and expertise in utilizing SLES for SAP Applications for clients in the energy industry. With full SAP S/4HANA certification, robust cloud image building, and easy access to development and support expertise, SLES is proving to be the ideal platform for 1Adaro ERP.
Cloud Comrade took advantage of the automated deployment services and best practices built into SLES for SAP Applications to accelerate provisioning to GCP while simultaneously reducing errors. With integrated support from SAP and purpose-built monitoring tools from SUSE, SLES for SAP Applications offers ongoing insights and real-time performance monitoring, helping to ensure long-term reliability.
The operating system also enables the automation of SAP software stack deployment for new services; and it provides embedded best practices to accelerate the provisioning of new cloud instances — reducing ongoing complexity and the risk of errors for Adaro’s technology teams. Thanks to these automation features and guided configuration wizards built into SLES for SAP Applications, Adaro has been able to significantly reduce system administrators’ workloads.
Delivering peace of mind around compliance and security
Cloud Comrade’s expert implementation on GCP has established a strong foundation for limiting ongoing systems risks for Adaro’s team. SAP S/4HANA on SLES for SAP Applications offers a reliable, manageable and highly available platform for all of Adaro’s many mission-critical SAP applications.
With automated system error detection and failover for recovery, downtime for Adaro’s critical SAP systems is reduced to a minimum. Enhanced security features protect SAP S/4HANA systems and remote storage from unauthorized access, while system data monitoring enables proactive problem avoidance.
“Adaro Energy Group must constantly review, select and implement the latest security measures to protect the interests and needs of stakeholders,” says Suharto. “SLES for SAP Applications on GCP helps us protect valuable data against the increasing threat of cybercrime.”
Creating clear visibility across the entire organization
With SAP S/4HANA in place, Adaro has successfully adopted a single, groupwide ERP platform. The solution provides a single source of reliable information backed by sophisticated tools for reporting and analytics, helping Adaro to enhance its understanding of current business performance and to optimize for the future.
“Adaro Energy is well on its way to becoming a future-ready organization by successfully navigating the digital transformation journey with the help of Cloud Comrade and SUSE technology,” says Suharto. “The deployment of SAP S/4HANA on SLES for SAP Applications is an important step that provides real-time analytics for business insights throughout the enterprise, thereby aiding agile monitoring and decision making.”
The new ERP solution gives Adaro the agile foundation required to enter the innovative renewable energy sector. And thanks to the machine learning, AI and IoT capabilities supported by SAP S/4HANA, Adaro is confident that its chosen platform will continue to deliver benefits in the future. Equally, the choice of SLES for SAP Applications will help ensure that the ERP solution remains secure, stable and easy to manage.
“Through our work with Cloud Comrade and the stable foundation of SUSE Linux Enterprise, we have been able to streamline our deployment of SAP S/4HANA on Google Cloud Platform, helping us to provide innovative solutions to business users,” says Suharto.