GOVERNANCE, RISK AND COMPLIANCE ASSESSMENT OF THE STRATEGIC PROJECT "COAL TO DME" AT PT BUKIT ASAM TBK IN ORDER TO ENSURE THE SUCCESS OF PROJECT IMPLEMENTATION

• Main Author: Mahendra, Andri
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/55735
• Institution: Institut Teknologi Bandung

PT Bukit Asam Tbk (hereinafter referred to as PTBA) is a company engaged in coal mining that has the vision to become a "World Class Energy Company that Cares about Environment". The purpose of this vision is to ensure the sustainability of the company's business because the coal business in the future will fade along with global demands to reduce the use of coal as a source of electrical energy, and also coal is a fossil fuel that cannot be renewed and not environmentally friendly. In addition, in the 2017 National Energy General Plan, the use of coal as an energy source will decline in 2050. In the document, there is a business opportunity for Dimethyl Ether (DME) which can be obtained through the coal gasification process. The production of DME as a substitute for LPG aims to reduce Indonesia's dependence on imported LPG which can reach 60% of Indonesia's needs. One of PTBA’s strategic initiatives is processing coal into DME products through a gasification process, it is called the Coal to DME project. This project involves 3 parties, namely PTBA as a coal supplier, Air Products is a company from the United States as a processing company that has gasification technology and PT Pertamina (persero) as the DME off-taker product. The success of this project cannot be separated from the full support of the Indonesian government, good planning and strong cooperation between the three companies. In addition, to ensure that this project can run according to plans and targets, the companies must assess the project’s risks and carry out the mitigations effectively. In ensuring the success of the Coal to DME project, PTBA conducts the Governance, Risk and Compliance assessment. From these three aspects, it can be seen that the implementation of this project has met aspects of Good Corporate Governance both internally and MIND ID, and has also complied with the applicable rules and regulations according to legal study that has been carried out, and based on risk assessment there are 30 potential risks with inherent risk levels, namely 3 extreme risks, 24 high risks, and 3 medium risks. With effective risk control or mitigation, it is expected that the expected risk will be 7 medium risks and 23 low risks. This shows that the risks of this project are acceptable to management because they are still within the limits of the predetermined range of risk appetites and tolerance.