PT BATU KILAU TBK BUSINESS RISK TOWARDS ESG ISSUES: CLIMATE CHANGE AND DECARBONIZATION

• Main Author: Himawan, Happy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63888
• Institution: Institut Teknologi Bandung

By considering the awareness of Environment, Social and Governance (ESG) worldwide, coal mining industry might face challenges and risks due to it is considered as one of the biggest contributors to the climate change and decarbonization issues. PT Batu Kilau Tbk as one of coal mining companies in Indonesia could not being separated from this ESG awareness. PT Batu Kilau Tbk plans to keep its business line in the coal mining amid the current coal price. Therefore, the availability of information regarding the uncertainty factors that need to be considered by PT Batu Kilau Tbk toward its business risk becomes very important. This information will be used by the Company to develop the right business strategy plan to support its objective. The purpose of this research is to identify the potential business risks that need to be considered by PT Batu Kilau Tbk for better decision making to respond to the challenges and risks that might arise in coal business industry in the future. The research method uses an external factor analysis approach through the PESTEL method, and internal factor analysis through the SWOT model, Porter's five forces model, VRIO combined with the opinions of several experts in the energy and coal mining industry. Based on the results of the analysis, the TOWS matrix was developed to be used as input for PT Batu Kilau in determining alternative steps in strategic decisions.