#TITLE_ALTERNATIVE#

• Main Author: ARDI SANTO (NIM: 29107152); Dosen Pembimbing: Dr. Mohammad Hamsal, MSE, MQM, MBA, JOHN
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/16181
• Institution: Institut Teknologi Bandung

Indonesia Power is a company engaged in the field of electrical generation. Currently, Indonesia Power is the largest generating companies in Indonesia, which controls 37.87% of Java and Bali market share. Although it has status as a PLN’s subsidiary company, Indonesia <br /> <br /> <br /> Power has an objective to become a pure business-oriented company. However, Indonesia Power faces the hard present and future challenges. This is mainly started from government regulations that set electricity prices below production costs. This situation causes PLN's financial crisis which also affected its subsidiaries, including Indonesian Power. <br /> <br /> <br /> The future of Indonesia's electricity market is very promising. This is indicated by the current electrification ratio which only reached 60% (According to RUPTL 2009-2018). Thus, there is still 40% of Indonesia residential which have not enjoyed electricity. On the other hand, PLN has an objective of 75-100, which means after 75 years of independence, then 100% of residential in Indonesia must enjoy electricity. At 2018, the demand of electricity is predicted to increase 2.6 times compared with 2007 (RUPTL 2009-2018). In the future, PLN begins to build new power plants which started by implement the first phase of 10,000 MW <br /> <br /> <br /> acceleration program. PLN program can be a threat for Indonesia Power because it can reduce Indonesia Power's market share. For the future, the government took a decision to use more coal-fired power plant and use as few as possible oil-fired fuel power plant. This is because the coal's price is cheap and Indonesia has abundant coal reserve. On the other hand, Indonesia Power still utilizes quite a lot of power plants using fuel oil which has high production costs. This is a challenge for Indonesia Power to respond to future electrical condition. For the current situation, it can be concluded that the condition of Indonesia Power is safe. <br /> <br /> <br /> This is considering that the demand for electricity which is still high and can not be fulfilled by existing power plants. In other words, electrical energy condition is over demand. And thus all power plants of Indonesia Power's output can be absorbed by the market although the production cost is not the lowest among the competitors. But Indonesia Power have to alert for future condition when the electrical energy demands could be fulfilled by the existing power plants. At that time, power plants that have the best competitive advantage will win the competition. <br /> <br /> <br /> This final project is aimed to analyze the business strategy of Indonesia Power. Starting with the external analysis using PESTEL and Porter's Five Forces methods, then it is continued with an analysis of competitors to see the position of Indonesia Power compare with its <br /> <br /> <br /> competitors. Besides that, internal analysis was also performed using VRINE method. And for the last stage, business strategy is developed using the diamond model.