PROPOSED TURNAROUND CORPORATE LEVEL STRATEGY FOR PERTAMINA

• Main Author: Dwi Lesmana, Yadi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/43204
• Institution: Institut Teknologi Bandung

Pertamina as state-owned enterprise in energy sector must balance its roles as a profit-oriented corporation with its mandate as a national oil company to meet domestic demand, both in upstream sector as well as downstream sector. Pertamina itself is a diversified enterprise with 24 subsidiaries, ranging from Pertamina's core related business in upstream and downstream of oil & gas, up to non-related business such hospital, finance, airlines and hotel. In 2014, oil price was fall and create downturn in energy sector. This condition gave difficult challenge to Pertamina, especially to its upstream subsidiaries. In term of overall enterprise performance, Pertamina performance shows relatively low. Several parameters, such as return on asset (ROA) and return on net asset (RONA) is still below industrial standard. The Economic Value Added (EVA) also shows negative. Those condition can give indication that although Pertamina is still giving profit, the enterprise is not healthy. Thus, with the current global condition and performance, it is good opportunity for Pertamina to review and align its corporate strategy to overcome those challenge. Therefore, in this final project author try to develop proposed turnaround corporate-level strategy for Pertamina based on corporate condition during 2015-2018. Turnaround strategy is part of retrenchment strategy which focuses in improvement of operational efficiencies, and its best to utilize if the corporate facing massive problem but not yet critical. By conducting the turnaround strategy, it is expected all of the Pertamina's subsidiaries can have rigid economic value and great synergy between subsidiaries to support corporate vision & mission.