#TITLE_ALTERNATIVE#

• Main Author: SULUNG PUTRA MARBUN (NIM : 12214072), REZKI
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30384
• Institution: Institut Teknologi Bandung

In recent years, Indonesia had faced some major challenges in energy sector: increasing energy demand, decreasing oil production and environmental issue related to fossil energy usage, to name a few. Indonesia is gifted with quite abundant natural gas resources that in the future shall play significant role to tackle these energy challenges, but the current condition is not good for the gas mining sector such as Indonesia’s gas production is keeps falling and the investment in this sector is keeps declining. Since the government just cannot develop natural gas reserves only by itself, hence the investment from private sector is needed. One major factor that affecting private sector’s decision in investment is industry competitiveness, while in the current time many sources said that Indonesia’s competitiveness, especially in gas mining sector is declining in recent years, only few of them using formal method to acquire such conclusion. This paper wants to investigate natural gas industry competitiveness in Indonesia by using Porter’s five forces model, and assess factors that can improve industry competitiveness in gas mining sector. These five forces in Porter’s model are: competitive rivalry, buyer power, supplier power, barriers to entry, and threat of substitution. This model is developed using Indonesia’s natural gas current condition from government official statistics and companies statistics. The stages of this study are: literature review about competitiveness and Porter’s five forces model, literature review about publication of Indonesia natural gas industry, application and analysis of Porter’s five forces model, and draw conclusions with recommendations. The results of this study are: 1. Indonesia natural gas competitiveness is relatively good, 2. There are several factors that government can use to improve competitiveness such as reducing government control and government support in the state-owned company, increasing investment in gas infrastructure projects, reducing and simplifying bureaucracy in gas investment.