ASSESSING THE CREATION OF SPV IN THE INTEGRATION OF ANTAM'S MARGINAL AND MINORITY-INTEREST GOLD MINES TO OPTIMIZE ANTAM'S GOLD BUSINESS SECTOR

• Main Author: Apriyanto, Andi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/60847
• Institution: Institut Teknologi Bandung

ANTAM is one of the largest listed diversified metals and mining companies that undertakes all stages of the mining and processing process, including exploration, mining, smelting, refining, and marketing. The Company’s commodities consist of nickel ore, ferronickel, gold, silver, alumina, and other precious metals. Gold, silver, and precious metals in particular, are some of ANTAM’s main commodities that became the biggest contributor to ANTAM’s revenue in the last 3 years. Currently, the Company is facing several issues related with its gold business sector, such as the huge difference between its gold production and sales volume, the dependency of the Company to imported gold, and the depletion of gold resources and reserves. Based on these business issues, therefore, ANTAM needs a new business strategy in order to optimize its gold business sector. In formulating business strategy, analysis is conducted using qualitative tools and frameworks. PESTEL and Porter’s Five Forces framework are used as external environment analysis, while VRIO, value chain analysis, and gold mine asset analysis are used as internal analysis. The analysis is carried out by gathering data from primary sources by conducting in-depth interviews with several interviewees from internal as well as external of ANTAM. Data from secondary sources also gathered in order to get a more thorough view in conducting data analysis. By analyzing both external and internal aspects, then business strategy is formulated using Strategic Alliances and Strategy Diamond Model tools and framework. Based on the analysis, there are 3 options of business strategy that ANTAM has in optimizing its gold business sector: 1. Increasing the quantity of imported gold; 2. Acquiring operating gold mines; 3. Forming strategic partnership. The assessment shows that forming strategic partnership is the best option of business strategy that ANTAM can choose in optimizing its gold business sector. In forming strategic partnership, it is recommended for ANTAM to integrate its gold mine assets first, and then cooperate these assets with partner in the form of equity alliances and joint ventures.