PROPOSED BUSINESS STRATEGY FOR PT BUKIT ASAM SOLAR POWER PLANT INITIATIVE

• Main Author: Anandita, Rinal
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/38851
• Institution: Institut Teknologi Bandung

PT Bukit Asam Tbk (PTBA) is a state-owned company in the coal mining sector that has recently enjoyed its best corporate performance owing to the relatively higher coal prices in the global market. At present, PTBA’s strategy includes vertical integration and business diversification that is further expanded towards renewable energy. This is to achieve PTBA's vision as a world-class energy company that provides clean energy. However, the main business and business lines of PTBA are still dependent on coal products. In the long run, PTBA's business will face several challenges, namely the global energy trend that has undergone transition amidst facing the global warming issues while many countries, especially the developed ones, will greatly reduce fossil fuels in their energy mix. PTBA currently has plans to conduct business diversification into renewable energy sector, namely the solar power plants, through the power generation business line. This is still at the early stage for PTBA to embark in business diversification out of coal. The challenges faced include lack of experience in running a business in the renewable energy sector while the investment costs per energy unit for solar power plants are still greater than for the coal-fired power plants. In addition, government regulations and the business climate in the renewable energy sector in Indonesia have not given much incentive to the Independent Power Producers (IPP) to develop renewable energy. Therefore, PTBA plans several strategies as an IPP to develop solar power plants as a means to diversify its business.