Optimizing

Internal Audits
Function in
Creating Value for
Sustainability of
Mining Company

Prepared for PERTAABI

 Fery Iriyawan, QIA, CISA, CFE, ERMCP, CIA, PFM
Profile Experiences & Journey

“Education is the most powerful weapon which

you can use to change the world.”
2010 – 2017 2008
- Nelson Mandela February 2008 – November 2008,
Started as Internal Audit & Entreprise Risk
Management Coordinator until Sept 2014, and became starting carreer as a Junior
IA Manager Oct 2014 until Sept 2017. Auditor at KAP Salaki & Salaki.

fery.iriyawan@yahoo.co.id

Scan Below :

2017 – Present 2008 – 2010

Was appointed as GM Group Was continued his journey as
Internal Audit and Risk a Senior Auditor at RSM
Management. Indonesia.
 Group Internal Audit &
Risk Management (G-ARM)

DOID Corporate
Overview

G-ARM Division - 2021

DOID Vision and Mission

Annual Report : 2021

G-ARM Division - 2021
Operational Activity

Annual Report : 2021

G-ARM Division - 2021
Operational Activity

Annual Report : 2021

G-ARM Division - 2021
 Group Internal Audit &
Risk Management (G-ARM)

DOID Group Control

Framework

IARA Division - 2022

GRC Architecture

Integration of GRC through :

1. Policy Management
2. Issue Management
3. Audit Management
4. Risk Management

Internal Audit , Legal and Governance

Division will collaborate to integrate
this Model Across the Group

IARA Division - 2022

Control Concepts Applied in DOID Group

1 Oversight function : Communicates achievement to

stakeholders, nurtures a positives cultures,
establish structure, determine risk appetite for
organization.
1 4
2 Managing function through :
1st Line Roles
Direct actions by deploying resources to achieve
objectives, communicate to governing body, establish
structure and process for management operational
& risks while ensuring it compliances.
2 3
2nd Line Roles
Complementary function including development,
implementation, and continuous improvement of risk
management (and internal control). And analyze and
report the adequacy and effectiveness of risk
management
3 3rd Line Roles
Assurance function : Accountable to governing body,
and independence from management.

4 Additional function : Satisfy internal and external

parties by conduct additional assurance.

IARA Division - 2022 Source : IIA Global

 Group Internal Audit &
Risk Management (G-ARM)

Internal Audit Value Proposition

IARA Division - 2022

The Audit Universe

SBU Infra

Audit Universe : Represents the potential range of all audit activities and is comprised of a number of auditable
entities. These entities generally include a range of programs, activities, functions, structures and initiatives which
collectively contribute to the achievement of the Company strategic objectives.
Current Organization Structure

President Director
Ronald Sutardja

GM Internal Audit and Risk Management

Fery Iriyawan

Manager – Risk Mgt. Manager - IA

Vacant Vacant

Supt. – Continuity Resilience Supt. Risk Monitoring Supt. Audit Operation Supt – ICT Audit & Data Science Supt. – Anti Fraud QA & Dev.*

Vacant Ariesti Kiky Adhisti Vacant Arfiah Meisisko Martin

Internal Auditor ICT Audit Anti Fraud Officer

Officer Bus. Cont. Resilience Officer Risk Monitoring Nicholas Bastian Iqbal Fathur Rahman Vinabilla Ramadhania
Agustia Rizki Vacant
Internal Auditor ICT Audit Investigation Officer
Vacant Vacant Vacant

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 Our Services
Assurance : The 'International
Professional Practices Framework'
(IPPF) issued by the Institute of
Internal Auditors (IIA) defines
'assurance services' as: 'An
objective examination of evidence
for the purpose of providing an
independent assessment on
governance, risk management and
control processes
IARA Division - 2022
Consulting : The auditor
evaluates a subject matter
against a given criteria and
reports back to a governing
body on whether the subject
matter met the criteria. In a
consulting engagement, the
consultant helps the client
create the subject matter.
Assurance Services

Controls Information
Compliance Operations Financial Assurance
Assurance Technology (IT)
Assurance related to Assurance Related to Assurance related to Assurance Related to Assurance related to
the design and operation design dan operations IT design and operation design and operations design and operation
of key controls control Such as: control related to law control related to: control regarding to
and policies: Financial Control
• Operations. • General IT control • Helping company to assertions such as :
• Reporting activities. • Law achieve its profitability
• Compliance • Application control • Rules target • Existence
activities. • Policy • Review how company • Completeness
• Security Management Safe Guarding its Asset • Valuation and Allocatiom
Control • Reducing processing • Right and Obligations
• Network Management time or waste in • Presentation and
Control operation process Disclosure
• Etc

We Established the Agile Auditing Framework to perform our Assurance Services

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Internal Audit Value Proposition
Internal Audit Value Proposition
Internal Audit Planning Approach
 Group Internal Audit &
Risk Management (G-ARM)

Internal Audit Consulting

Project

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At h e n a Pr o j e c t

Internal Audit Data Analytics

Project
Artificial Intelligence Journey in Internal Audit

:: Our near future, automation

RPA routine tasks to improve its
quality using Robotic Process
:: As a intelligence core “brain like” of
analytics machine in Internal Audit ::
Automation ::

:: Going through beyond the

vision, predicting the future
using Athena information ::
Consulting Services – Athena Project

Athena Project Defined :

Assurance process regarding Fuel Efficiencies in BUMA ID using Artificial Intelligence Based On Internal Audit Data Analytics Approach, We have
created any parameters for our mining operations regarding fuel inefficiencies (Below the example of parameter produce by our AI)
Category Insights Synthesized Potential Initiative (Comment from Jon) Potential Fuel
Savings
Higher payload, lower fuel consumption
Set payload targets and loader pass counts by material, dump trucks,
Payload Higher loader pass count, higher loading time, higher fuel ~ 5%
excavator and source location
consumption
Payload Uneven distribution of payload on truck, higher fuel Evenly distribute payload on truck – increase bench height/line of
~ 4-5 %
Distribution consumption sight

Spotting Time Longer spotting time, higher fuel consumption Set spotting time targets by source location ~ 7%

Loaded
Longer stopping time, higher fuel consumption Reduce stopping time on top 5 routes ~ 6%
Stopping Time

Refuelling Driving mostly on full tank, higher fuel consumption Trigger refuelling decision from dispatch ~ 5%
70+
Insights
Measure and top up tyre pressure during refuelling
Tyre Pressure Lower tyre pressure, higher fuel consumption ~ 3-4%

Ensure compliance to oil maintenance and prevent hose issues

Maintenance Hose and oil issues, higher fuel consumption ~ 1-8%

Better maintain road gradients for selective segments

Road Condition Lower road gradient, lower fuel consumption TBC

Operator
Higher low rev idling, higher fuel consumption Prevent engine idling at low revolution ~ 5%
Behaviour
Re-evaluate or extend engine life and trade-off CAPEX and OPEX
Engine & Aging Engine hours > 20000, higher fuel rate ~ 4%
with fuel costs

IARA Division - 2022

 Payload Recommendation – OB
BLASTING
Recommendation Backup ~3%
Reduction

Combo Chart – Fuel Rate and Number of Trips by Payload

• Target Payload for

Material Type OB
Blasting should be in

Fuel Rate
Num of Trips

the range of 90 to 110

Tonnes which will give
a 3% reduction in fuel
rate
Payload
Example Recommendation based on AI Analytics
Payload Percentage Trips Median Fuel Rate Savings
37 1.8% 0.0554 -21% • Today 48% of 777D
47 3.3% 0.0519 -14% trips for OB Blasting
58 4.9% 0.0492 -8%
69 9.1% 0.0467 -2% are outside these
80
90
26.9%
38.1%
0.0453
0.0445
1%
3%
ranges
101 14.0% 0.0445 3%
112 1.1% 0.0467 -2%
122 0.1% 0.0481 -5%
24
1
MVP 1 – Dashboard & Track Compliance
(1/3)
Initiative 1 : Monitor Refuelling process which one of biggest factor in fuel efficiencies

SUMMARY :

1. EXAMPLE : Monitoring refuelling quantity

3 777D under 700 litres period 16 Nov – 14
Dec

2. Action Improvement :
- increase awareness operator via DESA
- improvement in schedulling

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 MVP 1 – Dashboard & Track Compliance
1
(2/3)

Initiative 2 : Monitor Payload, Loader Passcount and Loading Time Compliance to ensure effective and efficient mining based
on Internal Audit Approach

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 1 MVP 1 – Dashboard & Track Complaince
(3/3)
Initiative 3 : Monitoring balancing suspension Rear Left & Right
1 to make load efficient in reducing fuel

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MVP 1 – Live Tank Capacity

We have created a
tank capacity
monitoring tool to
allow dispatch to
better schedule 777
trucks for refuelling

28
IARA Division - 2022
MVP 1 - Dashboard Road and Fuel
Consumption

Below the data overview about the Mining Road with its liter burn so that we can identified where is road
that not standard that effect to inefficiencies in fuel Burn

IARA Division - 2022

 2
MVP 1 – Compliance
Below Dashboard Summary for
Achievement
Compliance in each parameter

Data as slicer date

Data Feb - Jul

1. Initiative
Payload

2. Initiative
Payload
Distribution

Not Achieve Achieve

Target Compliance Target Compliance
3. Initiative
Refueling

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Loader Pass Count (LPC) Problem Dec 2020
List Identified Problem LPC
#Bucket Heap
Melakukan perhitungan bucket capacity
EX2500 menggunakan scanner.
G-ARM Division - 2021
Corrective Action :
Melakukan review ulang terkait
dengan loader pass count target
EX-2500 dari 3 pass menjadi 4
pass
Video observasi langsung di lapangan, material OB Target di revisi = 4 LPC
Blasting, unit EX2500 no. 8, dengan OHT 777D no. 251. = 4 pass x 29.8 bcm/pass
(Kamis 31 Desember 2020) = 119.2 bcm  muatan masuk dalam
range Over 10-20%
Target Athena = 3 LPC
= 3 pass x 29.8 bcm/pass
= 89.4 bcm  muatan masuk dalam range Underload
Corrective Action Payload & Loader Pass
Count Problem
List Identified Problem Payload

Corrective Action (Tambahan):

Melakukan sosialisasi kepada Operator oleh SPV, dengan media poster online.

G-ARM Division - 2021

 Group Internal Audit &
Risk Management (G-ARM)

Anti Fraud Management

System

IARA Division - 2022

 Anti Fraud Activities

DELTA DUNIA Anti Fraud

SCOPE Pillar and Strategy
Integration and Implementation Anti Fraud Initiative across
Delta Dunia Tbk and Subsidiary based on Anti Fraud Pillar PREVENTION DETECTION INVESTIGATION Monitoring
sa; Anti Fraud Governance, Anti Fraud Culture,
Fraud Risk Management and Fraud Investigation 1. Anti Fraud Governance: 1. Fraud Risk 1. Whistleblower 1. Regular review
• Anti Fraud Policy Management Policy and and update
• Anti Bribery • Fraud Risk Investigation fraud risk
Management System Register (Key Protocol register
DOCUMENTATION (ISO: 37001)
• Whistleblower
Control Indicator
and Key Risk
2. Whistleblower
Channel (DFENCE)
2. Timely
monitoring Key
System Indicator) 3. Ethic Committee Control
Integration and Implementation Anti Fraud Initiative across • Investigation • Fraud Risk 4. Audit investigation Indicator and
Delta Dunia Tbk and Subsidiary based on Anti Fraud Pillar Protocol Monitoring fieldwork and Key Risk
sa; Anti Fraud Governance, Anti Fraud Culture, • Gratification 2. BIG Data Analytics Monitoring Indicator (from
Regulation on Fraud Prevention Corrective Action Fraud Risk
Fraud Risk Management and Anti Fraud Investigation • Code of Conduct and Automate Fraud Register)
• Good Corporate detection 3. Monitoring
Governance Policy • Fraud Regular corrective action
REPORTING & 2. Anti Fraud Culture:
• Prevention program
data Analytics
• Fraud Scenario 4.
from audit result
Review Anti
COMMUNICATION • Regular Campaign
• Anti fraud champion
development and
testing
Fraud champion
Performance
across DOID
• General Managers and Project Managers are the subsidiary
risk owners. They are responsible for reporting the
risks and results of risk management to the Director in
Charge of the relevant functions at least once a year.
• Group Anti Fraud will update regularly to Board of Powered by Unit Anti Fraud Department of PT Delta Dunia Tbk
Commissioner and Board of Director fraud risk And Based On:
performance and how mitigating process in group area
and result from audit investigation 37001:2016:
Anti Bribery Management System

37002:2021:
Whistleblowing System

IARA Division - 2022

“ Sustainable development is a
development that meets the needs of the
present without compromising the ability
of future generations to meet their own
needs “ - United Nations

Group Risk Management

Department
Passions, Persistent, Professional
PT Delta Dunia Makmur Tbk
South Quarter Tower A, Lantai Penthause,
Unit A-1
Jl. R.A Kartini Kav. 8
Cilandak Barat - Jakarta selatan
12430