EVALUATING CONTRACT NEGOTIATION STRATEGY FOR PT MEDCO E&P INDONESIA

• Main Author: BAYU GAYASHANTI (NIM: 29109417), INTAN
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/18709
• Institution: Institut Teknologi Bandung

Procurement process is important for every Company to keep their operation run smoothly. PT. Medco E&P Indonesia (Company)as a Government Contractor in Oil and Gas business also need to conduct procurement process in effective way and comply to PTK-007 rev.02 (Pedoman Tata Kerja) as Oil and Gas regulation in procurement process from Government. <br /> <br /> <br /> <br /> <br /> <br /> <br /> Oil and Gas operations are the hazardous operation and need huge amount of capital, since then finding efficient resources for this business is critical to eliminate Non Productive Time (NPT) and incident. Since NPT; not only in Oil and Gas Industry, is near to cost control failure because operation failure means deviation in cost versus budget. The resources needs in this industry should meet the international standard for Oil and Gas. While for high technology services, this is an oligopoly market since there is only small amount of Service Company that able to give that such of services that are worldwide class of Service Company while this Company in the research is not listed in Worldwide Oil and Gas Company. To face that situation, Company needs to have high bargaining position and good negotiation strategy to get the best service to support their operation. <br /> <br /> <br /> <br /> <br /> <br /> <br /> This research is focusing on finding out the current negotiation strategy in Company and other Company as reference and also doing case study of contract with 1 (one) Worldwide Service Company that has been Company’s partner for a long time. After knowing those, this final project creating initiation material for Company’s negotiation guideline based on Company’s and other Company’s lessons learnt. Next is comparing the current condition with 3-D Negotiation theory to get better strategy in negotiation and higher bargaining position during negotiation with Worldwide Service Company. <br /> <br /> <br /> <br /> <br /> <br /> <br /> The results of this final project are recommendations for Company about material of negotiation guideline for Company to get better negotiation strategy and higher bargaining position, supporting tools for negotiators during negotiation preparation process, topic for further study to define the advantages and disadvantages of using existing supplier compare to the new one and enhancing negotiator skill with second and third dimension of 3-D negosiation.