TO WHAT EXTENT DO CHANGED INDONESIAN OIL AND GAS INVESTMENT MODELS AFFECT SERVICE COMPANY BUSINESS PERFORMANCE

• Main Author: Purwanto, Arga
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53251
• Institution: Institut Teknologi Bandung

Since 2017 the Government of Indonesia has implemented a gross split profit-sharing scheme in the management of oil and gas. This scheme replaces the cost recovery scheme that has been used in the Indonesian oil and gas industry since 1965. The gross split scheme has the principles of certainty, simplicity and efficiency to anticipate the diverse oil and gas market. The government has poured it in decree of minister of Energy and Mineral Resources (ESDM) No. 08 of 2017 relating to revenue sharing contracts (Gross Split) which was then refined by the Minister of Energy and Mineral Resources No. 52 of 2017 concerning changes to the previous rules. The Gross split scheme is both a challenge and an opportunity for the oil and gas sectors in Indonesia. Moreover, this industry requires a large investment with high risk. Not only oil and gas cooperation contractor (PSC) but also supporting industries in it such as the Oil Field Service (OFS) industry, one of which is a company that is engaged in providing products, services for drilling fluids and their derivatives. As a support area for the oil and gas industry, suppliers of fluid drilling services and services have also experienced the same thing as Cooperation Contractors (PSC), namely increased production and operating costs. This is attributed to a decline in production in old oil and gas fields in Indonesia. such as the Rokan block in Sumatra, the Mahakam block in East Kalimantan, the South East Sumatra Offshore block and the Java sea oil and gas block and its surroundings. Another thing is the shift of oil and gas sources towards the northeast basin of the deep sea of Indonesia. The purpose of this research is to analyze the challenges and appropriate business solutions by the company. Approached with qualitative and quantitative analysis models were used for this study. At the beginning, internal and external analysis and competition are carried out to identify the factors that influence the company. SWOT, I/E, BCG, SPACE, and Grand Strategy analysis matrices are used to analyze possible equations of strategies. The decision in the final stage will be analyzed by the QSPM model as an alternative choice of business strategy for the company. The objectives of this research are intended to offer guidance to the organization to pay attention to the correct strategic plan, so that it can remain a market leader and be more competitive in its industry.