THE EVALUATION ON COOPERATION (OUTSOURCING) BETWEEN PT FREEPORT INDONESIA AND PT XYZ AT SURFACE MINE PT FREEPORT INDONESIA

• Main Author: FAIZAL (NIM: 29107148) ; Pembimbing: Alibasjah Inggriantara Soedjarno, MM, MUHAMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/16524
• Institution: Institut Teknologi Bandung

Various ways made by many companies to increase revenue, reduce costs, reduce risk and ultimately increase profits. Especially in present uncertain economic <br /> <br /> <br /> situation, the global financial crisis. Companies are required to explore new strategies to anticipate changes in condition, so that profits can still maintain or retain business. One strategy that many companies implement today, is to give some their activity or <br /> <br /> <br /> function to be done by some other companies, commonly known by the term outsourcing. Through this cooperation the company hopes that they can reduce costs, share risks with the partner-company, or transfer of technology / new competencies that have not been owned by the company, which in turn can maintain or increase <br /> <br /> <br /> profits. PT Freeport Indonesia (PTFI), a company operated in mining industry, also apply outsourcing as part of their business strategy. One of the cooperation PTFI held, is with PT XYZ. In the contract agreement, PT XYZ is given the responsibility to do the maintenance activity of blast-hole drill equipment in PTFI’s surface mine. Changes in external environment, ie, decrease in copper prices, has triggered PTFI to review some policies, reduce cost, and maximize profits. In connection with this, this final project will evaluate whether the decision to outsource the maintenance activity of blast-hole drill equipment is correct, and provide appropriate benefits to PTFI. Evaluation which covered three dimensions of operation performance will be conducted by setting up comparison of initial expectations of the outsourcing and it’s actual achievement. Evaluation will also be conducted by examining the decision from side of strategic management teory, especially that related to outsourcing <br /> <br /> <br /> management. Result from this research recommends that solution to continue this cooperation through new agreement as the best alternative solution. But the exit <br /> <br /> <br /> strategy to take back the maintenance activity of drill equipment must also be considered. Results from this research are expected to become one of the considerations for PTFI’s management to take followed up action regarding cooperation with PT XYZ in the future. <br />