Digital payments solution for Indonesian building company

Discover how a strategic partnership helped an Indonesian construction company modernise their financial transactions and overcome operational inefficiencies.

March 7, 2025

6 mins

Corporate & investment banking

The construction sector plays a crucial role in Indonesia’s economic development by creating jobs, advancing infrastructure development, and fostering growth, all of which improve the quality of life for the country’s citizens.

Developing housing, office buildings, infrastructure, and industrial facilities remains a key focus for the Indonesian government, with the recognition that sustainable urbanisation is critical to advancing social equality, driving prosperity, and empowering people, particularly the country’s youth.

This is also the view held by ready-mix concrete and aggregates business PT Solusi Bangun Beton, a subsidiary of PT Solusi Bangun Indonesia Tbk and a member of SIG, the largest building materials company in Southeast Asia. Its mission is not only to build and improve infrastructure, but also to enhance living conditions to help shape a more equitable and prosperous society by delivering sustainable building solutions.

Addressing operational challenges in the construction sector

The company is committed to delivering environmentally conscious products and services, while operating in ways that positively impact society. This includes a responsibility to ensure that the fulfilment process is executed and delivered swiftly, efficiently, and securely.

Solusi Bangun Beton serves a diverse customer base, from direct consumers like homeowners, to small and medium-sized contractors, and large construction entities including state-owned enterprises. Each of these segments depends heavily on cash transactions.

In the past, reliance on cash created challenges for Solusi Bangun Beton and its customers in several ways. Customers typically found the manual ordering process tedious, requiring multiple steps that could result in delivery delays. Such orders were prone to errors and customers were unable to track the status of orders, causing frustration. Additionally, a lack of payment options was seen as limiting, especially by younger customers.

Manual order processing at Solusi Bangun Beton required considerable resources and would become a bottleneck as demand increased, restricting the company’s ability to scale effectively. Given the sheer number of transactions processed daily, payment verification was challenging to manage.

These multiple inefficiencies were proving to be a hindrance in terms of both time and cost. To address these issues, Solusi Bangun Beton’s management took steps to digitalise the company’s accounts receivables in 2022, while also considering the opportunities and risks associated with upgrading to a new digital payments platform.

Navigating market trends and risks

The trading conditions in Indonesia’s construction industry were favourable for such a transformative project – yet potential pitfalls had to be considered too. On one hand, Indonesia was experiencing steady economic growth, leading to increased demand for infrastructure development. The construction sector was competitive, with many players vying for contracts. This often led to price wars, affecting profit margins and prompting companies to explore operational cost efficiencies.

At the same time, Indonesia’s digital payment landscape was changing. Adoption of digital platforms had been growing, particularly in urban areas, driven by increased digital payment initiatives from the nation’s central bank promoting cashless transactions. This included the use of QR codes, e-wallets and mobile banking solutions.

However, there were concerns about data security, including the risks of breaches and cyber-attacks. There was also a possibility that employees and other stakeholders – including customers – would resist the shift to a new digital system, preferring traditional manual processes. What’s more, developing and integrating new digital systems can be challenging, as the process is inherently complex and may cause temporary operational disruptions. Progress in this area was largely untested by the construction industry in general.

To demonstrate their leadership in this space, Solusi Bangun Beton required the new system to be user-friendly, secure, and fully integrated with the company’s back-end technologies and banking systems, among other prerequisites. An enormous task, but one with potential.

The role of partnerships in achieving transformation

Solusi Bangun Beton carefully evaluated multiple bank partners for the project, ultimately selecting Standard Chartered for its expertise and strong local presence.

The bank already had a strong and trusted relationship with Solusi Bangun Beton. Prior to embarking on the project, Standard Chartered provided essential services like account management and transaction processing to Solusi Bangun Beton. The company had consistently received reliable services from the bank, and because of this track record, the company’s management was comfortable in its selection of Standard Chartered for complex projects.

Past collaborations also provided Standard Chartered with a deep understanding of Solusi Bangun Beton’s business model, challenges, and objectives, enabling the bank to design solutions tailored to the company’s specific needs.

“Our decision to partner with Standard Chartered on this digitalisation initiative reflects the bank’s expertise, comprehensive service offerings, strong local presence, and commitment to sustainability,” noted Giri Prabowo, Director of Solusi Bangun Beton. “The foundation of our prior relationship further solidified our choice, ensuring that both parties were aligned and ready for the collaborative effort needed for successful implementation.”

Experience in successfully delivering such projects would prove invaluable for this endeavour. The most complicated component involved integrating the bank’s Straight2Bank Pay system with SAP’s enterprise resource planning software. According to Prabowo, the bank needed to invest substantial time and effort into understanding how both systems worked, and ensuring they communicate smoothly with each other. The bank would assist with user uptake, by offering training and providing practical guidance. It would also need to ensure that the new system adhered to strict cybersecurity protocols.

The bank met all these requirements and the project was a success. Implementation took less than a year, and the system went live in August 2024.

Streamlining processes for better outcomes

As a result of this partnership, Solusi Bangun Beton was able to fully automate its business processes, from order taking, to invoicing, accepting payment, goods dispatch, and reconciliation. The system boosts productivity by enabling real-time processes, offering management immediate access to critical information while reducing delays and errors. Notably, the system also reduces the risk of fraud.

Customers also benefit from a wide range of tailored payment options, enabling smoother and more convenient transactions. This flexibility is aligned with the company’s sustainability goals, allowing them to adapt to market demands and strengthen client relationships.

The new system has already had an impact on the business. Sales processing times have dropped from 48 hours to real-time following customers making payments. Solusi Bangun Beton has also eliminated the issue of unidentified payments and reduced various fixed costs, freeing up resources to channel towards other business prospects.

“Standard Chartered is proud to be at the forefront of driving innovation and operational excellence in Indonesia’s financial sector. The successful implementation of Solusi Bangun Beton’s digital payment system underscores our dedication to delivering transformative solutions, reinforcing our support for Solusi Bangun Beton’s mission to contribute to the growth of Indonesia’s infrastructure sector,” says Rino Donosepoetro OBE, CEO, Indonesia, Standard Chartered.