Sojitz Concludes Capital & Business Tie-Up with Indonesian IoT Venture
~ Creating Logistics Optimization and Insurance Service Utilizing Telematics-based Big Data ~
Oct. 31, 2016
Sojitz Corporation (“Sojitz”) concluded a capital and business tie-up with Indonesian IoT* venture PT. Digitalinstincts Teknologi (“DIT”) to jointly develop and promote IoT business in Asian countries, starting with Indonesia. This represents Sojitz’s first real foray into the overseas IoT market.
DIT is an IoT venture which develops and provides fleet management services. They are currently developing a production optimization service for Indonesia’s coal and logistics industries which utilizes telematics, a technology combining the disciplines of telecommunications and informatics. DIT aims to set their productivity enhancement service apart from that of competitors, and their new service has already begun to attract attention—recently, a major Indonesian purified water company claimed logistics efficiency had increased 1.8 times since adopting DIT’s technologies for their delivery operations.
Since 2010, Sojitz has been providing domestic Japanese companies with a fleet management consulting service through Sojitz Group subsidiary Nissho Electronics Corporation, which utilizes big data supplied through telematics to minimize traffic accidents. They have greatly reduced the number of business vehicle-related traffic accidents through big data analysis, with the service already in use by approximately 10,000 vehicles across Japan.
DIT and Sojitz have been working together since 2015, when the companies brought their technological superiority and expertise together to develop new insurance, rental car, and construction equipment-targeted services in Indonesia. This led to a major Indonesian conglomerate adopting the system in an effort to develop the country’s first telematics-based insurance policy. This service entered trial operation in October 2016. The new business alliance aims to combine DIT’s IoT platform with Sojitz’s big data analysis technology, spreading the service to 400,000 vehicles in Indonesia over the next five years.
In recent years, the use of data and development of sharing technologies has led to “open innovation” becoming increasingly important—that is, the multilateral sharing of big data, beyond the scope of individual companies or industries. Sojitz seeks to fully demonstrate the business functions it can offer to this market as a general trading company, starting with Indonesia and expanding the business throughout Asia. At the same time, Sojitz will link data between the automobile-related industries of insurance, logistics, and rental cars through this new business. The company hopes to achieve more efficient transport, lessened road congestion, and safer traffic for the automobile industry, and apply this service to non-automobile areas as well in the future, such as two-wheeled vehicles, construction machinery, and marine vessels. In this way, Sojitz will help streamline industry in Indonesia and other Asian countries.
(*)IoT: Internet of Things
Systems wherein multiple objects are connected to the internet, exerting mutual control over each other via exchange of information