DEVELOPING STRATEGY USING SCENARIO PLANNING FOR JIIPE (JAVA INTEGRATED INDUSTRIAL AND PORT ESTATE) TO GAIN SUSTAINABLE COMPETITIVE ADVANTAGE DURING COVID-19 PANDEMIC

• Main Author: M Simanjuntak, Alex
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/48716
• Institution: Institut Teknologi Bandung

The logistic cost in Indonesia is still higher than other countries. According to The World Bank report that Logistic Performance Index (LPI) ranking of Indonesia on 2018 was number 46 of 160 countries in the world. It indicates Indonesia still not competitive for investment. To overcome the problem of high-cost logistics in Indonesia, JIIPE (Java Integrated Industrial and Port Estate) as an integrated business between seaport and industrial estate offers the ease of doing business for investors. The presence of JIIPE will reduce the logistic cost of investors who create business at JIIPE. JIIPE is managed by two entities: PT Berlian Manyar Sejahtera (BMS) which manages seaport and PT Berkah Kawasan Manyar Sejahtera (BKMS) which manages industrial estate. Currently, the two companies face difficulties, BMS is facing fierce competition from other competitors and BKMS with low occupancy rate faces several obstacles regarding the requirement of potential customers which need to be fulfilled. It is exacerbated by current situation with a major threat of the coronavirus disease (COVID-19) pandemic which is causing an extraordinary economic contraction throughout the world including Indonesia. This pressure requires JIIPE to adjust its strategy to deal with this uncertainty. The main objective of this research to develop strategy of JIIPE, both seaport services and industrial estate to gain sustainable competitive advantage. The process is carried out by analyzing the external and internal environment, then formulating and implementing the strategies. Due to uncertainty condition of COVID-19 pandemic, the scenario planning approach was used to predict the business might be happened in future. The key focal issue of scenario planning is “What is the strategy of JIIPE Industrial Estate to deal with current uncertainty to gain competitive advantage over the next five year?”. Based on key focal issue, driving forces factors are determined and thirteen driving forces have been found. From those driving forces, two most critical uncertainties are identified by distinguishing the uncertainty that have a high impact on focal issue, then adjusting the results with the results of questionnaire and the opinions of experts. Finally, two most critical uncertainties are economic condition and government support. By using these critical uncertainties, then create a scenario matrix to produce four plausible scenarios. They are wallowing in the mud, walking on the road, running on the mud, and running on the track. There will be implications for each scenario, so it is necessary to determine the strategies of each scenario. In applying the strategies for each scenario, the early warning signals are needed as the main indicators to monitor and control any changes in trends. These signals are needed to re-evaluate the strategies that have been taken or to create new strategies if needed. Cost efficiencies and streamline the organization are part of the recommendations that need to be implemented by JIIPE to be able to survive and move forward in this condition of uncertainty.