PARTNERSHIP ACTIVITIES TO ATTRACT WORLD-CLASS STRATEGIC INVESTORS IN PT KPI

• Main Author: Perdana, Ibnu
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/64848
• Institution: Institut Teknologi Bandung

PT KPI, a wholly-owned subsidiary of PT PTM, must strengthen its steps to meet the dynamic challenges through investment and business optimization. In the PT KPI, the Partnership Department is expected to attract potential investors for strategic projects; faces obstacles and challenges encountered in the partnership process for the Petrochemical Complex Project in Tuban, Indonesia, one of the Petrochemical Projects in PT KPI. The partnership process for the Project is carried out from January to October 2021, inviting and approaching 201 prospective partners from national (local Indonesia) and international that sent the project teaser. The Partnership Process must be terminated in November 2021 regarding not obtaining investors as a target, which affects the implementation of the Petrochemical Complex Project timeline, especially in getting equity funding partners for the Project. An evaluation or corrective action needs to take for the partnership strategy of the Petrochemical Complex Project to get equity partners/investors soon. Research Questions of this final project are: (a) What is the most influential factor in the failure of the Petrochemical Complex Project partnership process of PT KPI in 2021?; (b) What corrective action needs to take by PT KPI to optimize the Petrochemical Complex Project partnership process to launch in 2022? This final project investigates effective partnership strategies to get partners/investors in the Petrochemical Complex Project. In addition, it will identify the most significant factors in the failure of the previous Partnership Process of the Project to formulate corrective actions/strategies. The final Project's scope is limited to identifying the most significant factors that will influence the formation of the Partnership in the Petrochemical Complex Project and then developing strategies to address these issues. This process can be done by establishing a joint venture or a special purpose vehicle. We found several reasons for a potential partner's unwillingness to invest, but the root cause consists of 4 (four) factors: (1) SPV (Special Purpose Vehicle) has poor historical financials; (2) SPV has a complex Ownership; (3) The project has an unclear market review; (4) The project has doubtful project economic projection. The four best solutions and favorable to be applied by a company are: (1) Use a new entity as SPV, as it will look like a clean sheet company; (2) Use a new entity as SPV, as it will look like a new company; (3) Coordinate with Marketing Team regarding market study, (4) Conduct recalculation of the economic projection. These solutions will be conducted by the task force team of Partnership this year.