PROPOSED BUSINESS SOLUTION FOR LOW CALORIFIC VALUE COAL MINES IN IMPROVING FINANCIAL PERFORMANCE: A CASE OF PT. KALTIM BARA USAHA
Established at 2008 PT. Kaltim Bara Usaha (PT KBU) is a coal mining company located at Sukan village, Berau, East Kalimantan, Indonesia. With a total concession of 500 Ha, the company can produce around 2 million tons of coal per year. PT KBU only focus to the export market due to their low specific...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/47620 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Established at 2008 PT. Kaltim Bara Usaha (PT KBU) is a coal mining company located at Sukan village, Berau, East Kalimantan, Indonesia. With a total concession of 500 Ha, the company can produce around 2 million tons of coal per year. PT KBU only focus to the export market due to their low specification of coal around GAR 3200-3400. PT KBU did not succeed in meeting the DMO production target in 2018; therefore, there was a cut in the amount of production in 2019 by 50% to 900,000 tons and still had to meet the DMO target of 25%. Therefore, it is necessary to develop a business strategy for PT KBU to improve income growth and be able to optimize opportunities existing businesses and, at the same time, improve aspects of profitability.
Before formulating strategy, it is necessary to analyze the external and internal environment to determine the strategic factors that affect a coal business. The external environment analysis is conducted by using PESTEL analysis and Porter's Five Forces analysis to determine opportunities and threats regarding a coal business. Internal environmental analysis is conducted by using Resource-Based View analysis, VRIO analysis, and Porter Value Chain to determine the strengths and weaknesses also the bargaining power of PT KBU in a coal business that affect PT KBU's strategic conditions. Based on the external and internal environment analysis, alternative strategies are established by using SWOT analysis and TOWS matrix. After that, a financial analysis is fundamental to identify that by choosing the right solution, PT KBU can still maintain its profitability with cost efficiency and improving service quality so that revenue can be increased so that the sustainability of PT KBU can continue. |
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