BUSINESS STRATEGY FOR PT. BUKIT ASAM TO COMMERCIALIZE COAL-TO-HIGH SPEED DIESEL PRODUCT IN INDONESIA

• Main Author: Risqita, Chesilia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42485
• Institution: Institut Teknologi Bandung

PT. Bukit Asam is one of big coal mining company in Indonesia. Currently, PT. Bukit Asam has 3.3 billion tons of coal reserves, where 34% of them are low-rank quality coal and its underutilized. However, with the advanced technology, these kind of coal could be utilized, one of them become the high speed diesel. Coal-to-high speed diesel means changing the underutilized low-rank quality coal become a high speed diesel through a pressureles chemical catalytic conversion. PT. Bukit Asam will use it for internal needs due to the increasing number of its coal production. At the same time, Indonesia face the deficit number of oil and fuel Government solved it with imports and the implementation of B20 program. Then, PT. Bukit Asam see this as an opportunity through commercialization of its coal-to-high speed diesel product. However, government through a hearing session conclude that coal-to-liquid, including coal-to-high speed diesel difficult, to substitute current diesel fuel product due to the lack of technology expertise and large number of investment that lead to higher price of coal-to-high speed diesel product. To explore the current business condition of coal-to-high speed diesel industry in Indonesia, the author conduct an analysis by using PESTEL, Porter’s Five Forces, The Resources-Based View, VRIO Framework and Value Chain analysis. According to the analysis of business condition, the author found three root cause problems for coal-to-high speed diesel industry: technological problem, marketing & distribution problem, and competitor problem. In order to solve the problems, the author then conducted an interview with three business analyst from PTBA Corporate Strategy, Research & Development division. Interview results then poured into alternative strategies through TOWS Matrix. To solve technological problems, PTBA should make high speed diesel with standardized quality and product trials and evaluation. To solve marketing & distribution problems, PTBA should make a partnership with authority company and limit its commercialization area of product distribution. While to solve the Competitor problem, PTBA need to push its price per-unit to compete with other diesel fuel. According to those results the suitable Porter’s Generic Competitive Strategy for PTBA in order to commercialize the coal-to-high speed diesel product is Focused Cost Leadership. The Diamond Model Strategy then proposed to described the generic strategy and it is implemented through company Business Model Canvas for coal-to-high speed diesel project.