PROPOSED NEW BUSINESS MODEL FOR DEVELOPING COAL GASIFICATION PROJECT IN INDONESIA ( A CASE STUDY OFFERING OF PT LANGIT BIRU GAS INDONESIA )

• Main Author: Sasongko Yuni Wardhana, Hari
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/38867
• Institution: Institut Teknologi Bandung

It’s predicted that energy needs will increase from 795 million barrels of oil equivalent ( BOE ) in 2016 to 4569 million BOE in 2050 ("Indonesian Energy Outlook", BPPT, 2018). According to this report , availability of energy will become big issues in line with declining proven oil reserves as main energy source in Indonesia. In order to mitigate that issue , developing other energy resources from coal which available at abundant reserves is quite reasonable, and furthermore technology for generating other energy source from coal ( coal gasification ) is technically and economically proven.However it’s noted that there’s no realization of this project development in Indonesia. In line with above explanations, PT Langit Biru Gas Indonesia as subsidiary of Blue Sky Gas Corporation which having wellknown coal gasification technology and proven track record sees energy issue and developing new energy source of coal as opportunity to offer the solution. Hence it’s very important for PT Langit Biru Gas Indonesia to involve for realizing this project by fulfilling the lost part that made past development was not moving forward. Along with this concern, it’s very strategic also for PT Langit Biru Gas Indonesia to develop new business strategy and business model to meet the above planning. The concept framework thaf going to be used as reference are Analyse, Formulate, and Implement (Rothaermel,2013). To have better understanding of the company’s situation thoroughly, this research analyzed company’s internal & external environtment. Internally , the analysis was done through VRIO Analysis and Value Chain Analysis, that shown its tangible and intangible assets such as project reference and proven product could become differentiator of company in offering the solutions.While from the external side, the analysis was done through PESTEL Analysis and Porter’s 5 Forces Analysis that shown recently political , economics, and legal force has supported development new energy from coal which lead correct condition to realize coal gasification project and drive the company to improve its ability for delivering competitive advantage. Following above results, Generic Strategy defined competing on differentiation based on the strength point as resulted by SWOT analysis. Strategy Diamond will highlight kind of concerns such as coal mine with abundant reserve will be the prioritize arena of competition ,and the differentiator in offering through strong product with proven result that combine with joint investment and plant operation may fulfill the lost part in coal gasification project development. In term of business model development has been arranged firstly through key resources ( wider offering through Helia & GEG Coal Gasification products ), key process ( integrating support in plant development – marketing , plant execution - manufacturing and process operation ) , profit formula ( cost structure for syngas ,coal gasification operation into business owned operated – BOO scheme or else ), which then generate customer value proposition into wider technical option inside one stop solution that not only technical side but commercial & operation side , for delivering competitive advantage . Furthermore through applying Four Value - V4 Business Model that consider more comprehensive in this business segment clearly identifying the actors, each role, and relationship arrangement in between the parties involved into Join Venture or Tooling Concept. Moreover it’s known the points that should be improved in business alignment that fulfill the business gap development and how to integrate the finance concerns through specify pricing method of products needed/ resulted by each parties and doing trade off accordingly, such as pricing arrangement for coal as raw material which impact to syngas product , and product off taker price.