AN ASSESMENT OF VEGETABLES PLANT FACTORY DEVELOPMENT PLAN AT PT PUPUK KUJANG USING VALUE INNOVATION BASED ON DESIGN THINKING PERSPECTIVE

PT Pupuk Kujang is a subsidiary of PT Pupuk Indonesia (Persero), a state owned holding company focusing on production and distribution of subsidized fertilizers. The company also produces and markets non-subsidized products such as Urea, NPK, Ammonia and other fertilizers. Issue on subsidy scheme ch...

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Bibliographic Details
Main Author: EKA WIJAYANTI (NIM 29115449), ARLYZA
Format: Theses
Language:Indonesia
Online Access:https://digilib.itb.ac.id/gdl/view/25805
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Institution: Institut Teknologi Bandung
Language: Indonesia
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Summary:PT Pupuk Kujang is a subsidiary of PT Pupuk Indonesia (Persero), a state owned holding company focusing on production and distribution of subsidized fertilizers. The company also produces and markets non-subsidized products such as Urea, NPK, Ammonia and other fertilizers. Issue on subsidy scheme change, natural gas price, and decreasing trend of international Urea price affecting the company’s profit. The company revenue kept increasing but its profit trend was decreasing (2012 – 2016). The company had some development and diversification plan through existing plants replacement project, development of fertilizer product diversification and other development project relevant to chemical and agriculture business. <br /> <br /> Grand Strategy matrix analysis was being used to conform the diversification strategy, while the value innovation of the plant factory was determined by examining parameters of design thinking perspective. Based on the company external and internal analysis, it can be concluded that the company still had its competitive advantage in the industry and categorized in Quadrant IV in the Grand Strategy matrix, therefore diversification strategy was suitable for the company. <br /> <br /> Plant factory development initiatives was triggered from an offering on the sophisticated vegetables cultivation system independent to climate and weather condition and the opportunity to tap on premium vegetable market segment in Greater Jakarta. Based on the root challenge analysis on the diversification plant, there were three aspects from design thinking perspective that can be used to define the value innovation from the plant factory development plant which are: human desirability, technology feasibility, and economic viability. <br /> <br /> Based on the analysis of design thinking perspective, the value innovation of plant factory development offered by the company should be premium vegetables products those are clean, fresh, free-pesticide, and smooth. Tomatoes and some certain leafy vegetables can be applicable. The vegetables products should be available only in premium market in Greater Jakarta and direct sales to certain business consumers. The most viable technology to meet the market needs is the plant factory technology with full solar light and controlled environment system. During the implementation, the company should provide resource needed such as land, plant factory building and facilities, capital, and people. The scale and economic evaluation of the vegetables plant was profitable but still too small compared to existing revenue and profit of the company. Therefore, the vegetables plant factory development was not viable as business substitute to the existing company business in fertilizer production.