RETAIL FUEL DIVISION STRATEGY IN FACING FREE TRADING ON FUEL RETAIL BUSINESS IN INDONESIA

• Main Author: KUSUMAPRIANDANA (NIM : 29108371); Pembimbing :Ir. Alibasjah I. Soedjarno, SE., MM. , ADITYA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/17789
• Institution: Institut Teknologi Bandung

The implementation of Law Number 22 of 2001 about oil and gas industri had a great to the oil and gas industri in Indonesia both upstream and downstream business sectors. The law gives opportunity to both local and foreign company to jump into oil and gas industri both upstream and downtream in Indonesia. PT. PERTAMINA (PERSERO) as government owned company does not have a role as a monopoly company in oil and gas industri again. In a short time after it was applied, the law immediately attracted many parties to run the downstream oil and gas business in Indonesia (especially non subsidied fuel retail busniness). Nowadays, there are three foreign companies that have been build gas station outlets in Indonesia, which are Shell, Petronas, and Total. To deal with the situation, PT. PERTAMINA (PERSERO) must take quick action to maintain it fuel retail market share. In this research, writer does the company internal and external environtmen analysis to find company’s strength, weakness, opportunity, and threat (SWOT) in the downstram oil business especially in oil fuel retail industry. The SWOT analysis research result showed that the company has great strength to face the competition. The main strength of the company is its intangible and tangible assests. The company has a big opportunity to maintain or even develop its business as long as they know how to prevent threats, minimize weakneses, and catch opportunities by using the strengths. The SWOT analysis showed that the main problem in the company’s fuel retail business is the awful implementation of new programs in the retail network since most of retail network owned by private sector. To face the problem, PT. PERTAMINA (PERSERO) can make new policy about fuel retail network development. The company should chose between using COCO and CODO outlets as it first option to develop the network or keep using DODO outlets with some improvement in the cooperation system and business process between the company and its business partners. Based on the research in the financial and operational aspects, developing retail network using COCO and CODO outlets is the best choice, since it is easier to control and manage than DODO outlets. Besides that, COCO and CODO outlets will also give financial advantage for the company.