CORPORATION STRATEGY OF NATURAL GAS DISTRIBUTION BUSINESS FOR PT PERUSAHAAN GAS NEGARA TBK IN INDUSTRIAL ESTATE

• Main Author: Aisah, Siti
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46213
• Institution: Institut Teknologi Bandung

On February 24, 2016 the Minister of Energy and Mineral Resources stipulated Regulation No. 06 of 2016 concerning Terms and Procedures of Allocation, Utilization and Price of Natural Gas which aims to support national energy security and independence for the society's prosperity so there are no more multilevel sales and gas trader without facilities. One impact of this regulation for private company that own natural gas infrastructure (PQR) in industrial estates is that they cannot obtain natural gas commercial business licenses and gas allocation from the government. So that PQR would like to have collaboration with PT Perusahaan Gas Negara Tbk. (PGN) in order to distribute natural gas to end users (ABC) in XYZ industrial estates. The author to define the business scheme between PGN and PQR, uses qualitative method with primary data from group of meeting and analyzes it using theory from "Strategic Management and Business Policy" Thomas L. Wheelen and J. David Hunger and the Diamond Strategy framework. Then develop aspects from the Strategy-Diamond by using Balanced Scorecard perspectives to generate Key Performances Indicators (KPIs) for PGN which are expected to improve the performance management system. Based on the result of meeting group coding and the cooperation scheme, the appropriate form of the cooperation scheme is that PGN utilizes natural gas infrastructure owned by other business entities to channel natural gas to end users. The scope of this collaboration concept is that PGN is obliged to provide natural gas supply, pay infrastructure fee to PQR, and conduct natural gas sales agreements directly to end users (ABC) while PQR have to provide natural gas distribution facilities and carry out operations and maintenance. From the Balanced Scorecard, PGN could improve KPIs in financial, customer, internal processes and learning and growth perspectives related to PGN and PQR cooperation. Business entities in the industrial area can get benefits, that is their natural gas pipeline network become utilized, get a return on investment and can get additional revenue in the form of service fees from end users in the industrial area. As for PGN, it can increase its market share with a lower risk of natural gas infrastructure investment costs and improvement of KPIs to monitor cooperation with PQR.