SUPPLY CHAIN STRATEGIES OF RAW MATERIALS AT PT KALTIM PRIMA COAL IN ADAPTING TO THE IMPLEMENTATION OF NEW MINING LICENSE

• Main Author: Perdana , Alim
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/59641
• Institution: Institut Teknologi Bandung

PT Kaltim Prima Coal is coal producer based in Sangatta, East Kalimantan, Indonesia. In 1982, KPC signed mining concession, called Coal Contract of Work (CCoW), with representation of Government of Indonesia. This existing contract will expire on December 31st, 2021. Under this type of mining license contract, KPC has several benefits such as import duty and VAT free called Masterlist and no VAT for local transaction to be paid. However, under this mining license form, all the remaining assets as of December 31st, 2021 will belong to Government of Indonesia. In continuing its operations beyond December 31st, 2021, subject to approval from Ministry of Energy and Mineral Resources, KPC will receive IUPK (Ijin Usaha Pertambangan Khusus) type of contract. Under this contract, KPC will no longer receive Masterlist facility for import transaction and also has to pay VAT for local transaction. The thesis aims are to, first, assess the supply risk against profit impact of commodities purchased by KPC by using Karljic Portfolio Matrix for the purpose of purchasing strategic development in preparation to be under new mining license. Secondly, this thesis will analyze inventory strategic for each Material Group to be able to minimize inventory value on the expiry date of existing mining license. Furthermore, this thesis also aims to determine logistics strategy following prerequisite of Free Trade Agreement in lieu of Masterlist facility, to avoid import duty payment by using Cost and Benefit Analysis comparing total cost of ownership including logistics cost and impact to purchasing and inventory costs.