DEVELOPING BUSINESS STRATEGY TO ACHIEVE SUSTAINABLE OLEFIN BUSINESS FOR PT. PERTAMINA (PERSERO) THROUGH SCENARIO PLANNING

• Main Author: Martina Somara, Osvia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53207
• Institution: Institut Teknologi Bandung

Energy sector is one of the most crucial role to supply fundamental necessity of the society as well as main contributor to the development of a nation. Since its establishment, PT. Pertamina (Persero) had distributed energy to fulfil Indonesia energy demand until 2001, as the changes of the regulation of energy commercialization, the business strategy within PT. Pertamina (Persero) was being adjusted. However, the challenge is still exist and the changes are continuous and inevitable. Politics, economy, technology and socio-cultural dynamic has shifted the global industry behavior. PT. Pertamina (Persero) as a State-owned Enterprise is required to be able to adapt toward global changes while maintaining its role to benefit the people in Indonesia. Petrochemical industry is one option that can be prepared to answer the global changes. Amid many challenges faced by oil and gas companies, petrochemical might be the best alternative in attempt to achieve the sustainability of energy business. The objective of this project is to answer the question: “How will Indonesia olefin business looks like in the next five years and how Pertamina can thrive in the future challenge?”. Therefore, it is important to conduct the identification and analysis about key factors that contribute to petrochemical business, especially olefin and its derivatives. The method applied in key factors identification and analysis are PESTEL and Porter Five Forces. Through qualitative and quantitative study, the identification of the main factors that contribute to the sustainability of olefin business can be gained. They are continuity supply from refinery, economic stability, petrochemical project completion in Indonesia, petrochemical project completion in regional, government support, BOC/BOD commitment, and consumer behavior. Economic stability and petrochemical project completion in Indonesia are two critical uncertainties that derived from the combination of impact and uncertainty that contribute to olefin business sustainability. Using scenario planning, the combination of the critical uncertainties created 4 (four) different narratives which are On Full Throttle, On Cruise Control, On Four-wheel Drive dan On Parked Caravan. Therfore, PT. Pertamina (Persero) is expected to be self-prepared with the optimal business strategy to answer the projected future challenges. The identification of implication, option and early warning signals can help the firm to establish the suitable strategy for each scenario.