PROPOSED BUSINESS STRATEGY TO DEVELOP THE OCEAN-GOING BUNKERS MARKET PT PERTAMINA PATRA NIAGA

• Main Author: Frastiawan, Eko
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/65093
• Institution: Institut Teknologi Bandung

Bunker fuel is the most critical item for the shipping company operation cost. The global bunker fuel market reached $ 120,1 billion in 2019 and is projected to reach $ 130,1 billion in 2027. Singapore has been the world's pre-eminent bunker hub. It was valued at $17.6 billion in 2020 and is estimated to grow at a CAGR of 3.5% from 2021 to 2030. With this growth of the bunker demand, Indonesia, which strategically lies on the world maritime trade route, should be able to take this opportunity. As a market leader in the domestic fuel market, Pertamina Patra Niaga must lead the market development of the ocean-going bunker market. Nearly 150.000 ocean-going vessels pass through the Indonesia seas each year, and around 11.000 vessels do loading-unloading cargo in Indonesia's ports. The business size of the ocean-going bunker is $1.2 Billion/year (2.2 million Metric Tons). However, only 4% already bunker in Indonesia, mostly they were bunkering in Singapore and China. The estimated opportunity loss of Pertamina is $1.1 Billion/ per year. This final project is aimed to find out the company's current competitiveness in the ocean-going bunker market in Asia – Pacific and propose a business strategy to improve the competitiveness and increase sales of ocean-going bunkers in Indonesia. This final project uses a qualitative research methodology consisting of desk research and field research through interviews of the key informants. For external analysis, this research uses the PESTEL framework, Porter's Five Forces, and competitor analysis. While for the internal analysis, it uses VRIO analysis, Value chain analysis, and 7P's marketing mix framework. Based on the data analysis and strategy formulation, this research recommends the Value Innovation strategy, which started with the cost-leadership focus strategy in attracting the ocean-going bunker consumer and is supported by increasing perceived customer benefits. This research suggests that Pertamina Patra Niaga must focus on ocean-going ships that load and unload cargo at Indonesian ports as the target market. This research also proposes the business strategy using 7P’s marketing mix approach. It consists of raising product specifications to a global standard, eliminating VAT components, remapping supply points, increasing awareness of the global market, developing global skilled human resources, improving the bunkering speed and quantity accuracy.