PROPOSED BUSINESS AND CORPORATE STRATEGY FOR IMPROVING COMMERCIAL PROJECT PERFORMANCE IN REGIONAL-OWNED COMPANY PT JAKARTA PROPERTINDO (JAKPRO)

• Main Author: Parhorasan Asaputra, Juristezar
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35781
• Institution: Institut Teknologi Bandung

Abstract - PT Jakarta Propertindo (JAKPRO) is a limited liability company owned by DKI Jakarta Province, or called a Regional-Owned Company (BUMD) which started its business since 1960 (at that time the Pluit Management Agency (BPL Pluit)). The core business of JAKPRO itself used to be a property, then now JAKPRO expanding its business sector includes the utilities, infrastructure, ICT (information, communication and technologies) and planning consulting services. In 2018, JAKPRO has finished completing several assignment projects that have been commissioned by the President and Governor of DKI Jakarta including the LRT Jakarta Corridor 1 Phase 1 (Kelapa Gading - Rawamangun) project, the construction project of the Velodrome International Stadium Rawamangun cycling sport, and the equestrian sport facilities of Equestrian Park International Pulomas. After three years pursuing the assignment project development since 2015, many things must be sacrificed including the implementation of the company's commercial projects, which in fact, for the past five years there has been no new commercial project built (in the holding company), however, is it lack of performance for this commercial project due to the large number of assignment projects? or are there other factors? the results of the research in this thesis aims to find the background of the lacking performance of the commercial project of JAKPRO over the past five years, and also, looking for what business and corporate strategies are most appropriate to improve the company's performance through its commercial projects. To answer the two main issues, two analysis both external and internal is used, several framework models use for external analysis such as PESTEL model, Michael Porter 5 Forces Framework, and Competitor Analysis model, meanwhile for internal analysis the company use VRIO models and 7S McKinsey framework models. It can be concluded that from the two analysis, both external and internal, the reason that the commercial project did not perform over the past few years were the internal factors of the company, among the difficulties of the top management and the team in carry out priorities and the ability to execute, meanwhile, one of the proposed business strategies to improve the performance / performance of commercial projects in the future is that the company is suggested to separate teams specifically to work on each for commercial projects and assignment projects (dedicated team), and improve the competence and ability of the team to execute. For corporate strategies, to enhance the effectiveness, efficiency and ease of execution of synergy between subsidiaries of the company, recommended to do some corporate actions that one of them for short term to form the subholding in each sector: property subholding, utility and energy subholding, infrastructure and food security subholding. The other corporate strategy is to establishing new / acquiring / companies related to project assignments, then for long-term recommendations, it is recommended that JAKPRO can become a super holding BUMD of DKI Jakarta Province after subholding at the subsidiary level is formed, with the aim of no longer using and relying on funding sources from the regional income and expenditure budget (APBD), both for commercial projects and assignment projects.