SCENARIO PLANNING TO SUPPORT BUSINESS STRATEGY OF PT PERTAMINA POWER INDONESIA

• Main Author: Triana, Henny
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/56013
• Institution: Institut Teknologi Bandung

The global energy trend is heading towards clean and sustainable energy, from fossil-based to zero-carbon (decarbonization). This energy transition has generated several uncertainties which give impact to the power, new and renewable energy business, on how the electric power companies deliver the electricity in line with key global policy goals for emission reduction by increasing the share of renewable energy in the energy mix, whilst maintaining security of supply and ensuring accessibility and affordability of energy– the so-called ‘energy trilemma’. Any of uncertain factors that have effect on the power, new & renewable energy (NRE) business are economic and electricity demand growth, market competition, economic benefit of NRE, and the pace of energy transition itself. Covid-19 pandemic and the trend in adopting Environment, Sustainability and Governance (ESG) movement are further increasing the uncertainty. PT Pertamina (Persero), as (Indonesia’s stated-owned energy company) is expected to become the hands of the government to pave the way and drive the acceleration of the energy transition in Indonesia. Thus, PT Pertamina Power Indonesia (PPI), as subholding of Power & NRE of Pertamina, is playing an important role in the success of the country’s energy transition in the future. Therefore, PPI require thorough a comprehensive strategy formulation framework based on the long-run understanding of the future. This research is focused on the developing of a scenario planning as a vision and insight for PPI’s decision maker to challenge the current thought on the long-term strategy of the company. As the result finding, the pace of energy transition and government support become the most two critical and uncertain factors for PPI to consider in the long run. These two factors combine to form scenario matrix and form three plausible scenarios, they are Greener Future, Catch up the Pace and Going Nowhere. Implication and options from each scenario are explored to identify alternative strategies. Afterwards, early warning signals are identified to indicate current condition and distinguish toward one scenario or another. As a conclusion of this research, four strategic imperatives are defined, which are strategic partnership, innovative financing and organization capabilities development to be more agile and adaptive and stakeholder engagement.