PT. Batu Gunung Mulia Putra Agro: Unlocking a competitive edge through the GROW with SAP offering
Explore PT. Batu Gunung Mulia Putra Agro’s journey with SAP
PT. Batu Gunung Mulia Putra Agro (PT. BGMPA) operates the first palm oil factory in Indonesia designed as a cooperative in which farmers in the Tanah Laut district in the province of South Kalimantan have minor ownership shares. To deliver the best return to its farmers, PT. BGMPA needed to upgrade its ERP system so it could access more-timely and accurate analytics. In doing so, the company hoped to respond faster to palm oil and palm kernel sales requests.
| Industry | Region | Company Size | Partner |
| Agribusiness | Tajau Mulia, Indonesia | 97 employees | PT Trimitra Sistem Solusindo (TMS Consulting) |
increase in profit margins.
to implement cloud ERP.
reduction in month-end reporting time.
President Director (CEO), PT. Batu Gunung Mulia Putra Agro
Improving reporting to become more competitive
PT. Batu Gunung Mulia Putra Agro (PT. BGMPA) has a head office in the Binuang district of Indonesia, but its farmers and factory operate in the Tanah Laut district. The factory processes 300 million to 400 million kilograms of fresh fruit bunches (FFBs) per year, which the company sells to customers within Indonesia. Since the price of FFBs fluctuates, fast and accurate reporting is essential. PT. BGMPA needed the ability to understand its profit margin on the purchase of FFBs at any given moment. However, the company’s previous ERP technology did not allow for integrated reports. This lack of visibility made it difficult for the company to make quick decisions and capitalize on high-margin sales offers. As a result, the company was not realizing potential profits. In addition, limited production and financial reports hindered its ability to move quickly. The company was forced to wait 30 days before it could pull reports for the previous month. PT. BGMPA recognized that to remain competitive and grow market share, the ERP technology used for its operations needed to change.
President Director (CEO), PT. Batu Gunung Mulia Putra Agro
Delivering better results for shareholders with a modern cloud ERP
GROW with SAP helps growing businesses more quickly adopt a scalable, ready-to-run cloud ERP solution that streamlines workflows. As part of the GROW with SAP offering, PT. BGMPA completed the move to SAP S/4HANA Cloud Public Edition in just four months with the help of SAP partner PT Trimitra Sistem Solusindo (TMS Consulting). The new ERP solution provides upgraded capabilities without adding complexity for the company’s IT team. GROW with SAP also empowers business users with low-code tools that require minimal training and provides access to a library of preconfigured processes.
Before implementation, PT. BGMPA made a concerted effort to foster a company mindset and organizational culture that is open to change, especially around technology. This helped employees quickly embrace SAP S/4HANA Cloud Public Edition and recognize its importance for the company’s progress.
President Director (CEO), PT. Batu Gunung Mulia Putra Agro
Increasing profitability with more-timely, integrated reporting
The upgrade from its existing ERP technology to SAP S/4HANA Cloud Public Edition using GROW with SAP gave PT. BGMPA integrated reporting with better visibility into its production, sales, and finance functions. Employees also have a more disciplined approach to data entry, helping ensure that daily and monthly reports are accurate. Perhaps most impressive is the gain in profitability. Before moving to SAP S/4HANA Cloud Public Edition, PT. BGMPA saw an average of 3% margins on its purchases of FFBs. Now, the company is realizing an average of 5% to 7% margins. That’s a gain of 2% to 4% in profitability – all because the new reporting allows the company to make faster and more-accurate purchasing decisions.
President Director (CEO), PT. Batu Gunung Mulia Putra Agro
Building upon success with strategic partners
PT. BGMPA plans to build a large agricultural business group, starting with the acquisition of a palm oil plantation in South Kalimantan. To succeed in this growth plan, the company will continue collaborating with SAP to add the SAP Analytics Cloud solution, which includes business intelligence and predictive analytics capabilities as part of the core solution. Management will then be able to make even more informed decisions to enable future business growth.
Featured partner
TMS Consulting aims to bring innovative technology to the Indonesian digital landscape. As a full-service partner, the company helped PT. BGMPA shift the company culture to accept and anticipate technology changes. From planning to go-live to user adoption, TMS Consulting’s expertise throughout the process helped make the project successful.