BUSINESS STRATEGY FOR SALES OPERATION DIVISON PT PERTAMINA (PERSERO)

• Main Author: Fitri, Zakaria
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/51293
• Institution: Institut Teknologi Bandung

As National Oil Company (NOC) Pertamina engaged in the energy sector including oil, gas and new and renewable energy. Pertamina business spread out from upstream to downstream all over Indonesia, and even already established in some countries in realizing Pertamina vision to become world class energy company. The Sales Operation Division is a part of PT Pertamina (Persero) Corporate Marketing Directorate, established to face competitions in B2B Industries and Marine sectors in Indonesia. In 2019, the wholesale (INU) companies reached 167 companies, despite the active ones being only about 26 companies, thus make the competition more challenging. As the shareholder, government targeting Pertamina to increase its market share of industrial fuels to 78%. Another concern is related to government policy of importing crude and fuel product. Based on the issues, the final project objective is to learn Pertamina’s position in facing competition, to propose business strategy of increasing market share and to propose Vendor Held Stock (VHS) program to achieve company goals. A qualitative method is used for this final project, which includes in-depth interviews with business people who possess good understanding of industrial fuel business process from internal and external sources. Internal analysis includes Sales Operation Division performance analysis and Fishbone analysis. External analysis includes PESTLE and Porter’s five forces analysis. To formulate a business strategy, the Ansoff matrix and the Diamond Strategy model are used. From the SWOT analysis, there are still opportunities for mining sector to enlarge the business, but there are still some weaknesses that should be solved. By analysing the Ansoff matrix, the proposed strategy to increase market share is market penetration. With the analysis on the Diamond Strategy, it is suggested that collaboration with government agencies as a vehicle and price determination will be used as a pricing strategy. As conclusion, to maintain and increase Pertamina’s market share, Vendor Held Stock (VHS) monetization will be a solution to market penetration. The mining sector, which is the sector with the largest volume, still has room to develop by entering into contracts not only with mining owners but also with their contractors.