ENHANCING THE COMPETITIVENESS OF LNG RETAIL BUSINESS IN EAST AND CENTRAL JAVA (CASE STUDY : PT PERUSAHAAN GAS NEGARA TBK.)

• Main Author: Made Dwi Ryaumariastini, Ni
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/55726
• Institution: Institut Teknologi Bandung

The role of natural gas is increasingly significant, especially in substituting the use of petroleum which reserves and production tend to decline. The main challenge in the utilization of natural gas is the gas transportation system. Liquefying natural gas into LNG (Liquefied Natural Gas) is a way to transport natural gas when transporting by pipeline is not feasible. LNG can be stored, shipped by sea transportation, and distributed using land transportation (ISO tank and truck) to end customer. Market of LNG sold in retail based, or LNG retail, is very potential because of the encouragement from the Government to reduce LPG imports and optimize existing domestic energy sources such as LNG. Until 2020, utilization of domestic LNG is still less than 10%, approximately 381,4 BBTUD from total gas supply 5.701,06 BBTUD. Utilizing the entry point of LNG in Java island through East Java LNG Terminal owned by PT Perusahaan Gas Negara Tbk. (PGN), located in Teluk Lamong, business strategy for PGN’s LNG retail business targeting industry, hotel, restaurant, and café segment in East and Central Java area is defined to further increase company commercial performance and penetrate market that unreachable by gas pipeline. AFI strategy framework is used to effectively managing the strategy formulation process. The business issue exploration, data analysis and data interpretation resulted in a formulation of a complete set of strategy represented in a diamond strategy model and a business model canvas which will serve as a blueprint for a strategy to be implemented through organizational structures, processes, and systems. Furthermore, increasing competitiveness by improving business process can also be achieved through optimizing LNG supply chain, optimum LNG shipping scheme by sharing utilization to reduce cost, market expansion to Bali, market expansion to transportation sector, clustering of customer for milk-run distribution scheme, and also synergy with Pertamina subsidiary in provision of LNG shipping vessel.