IMPLEMENTING COST OPTIMIZATION PROGRAM AS A BUSINESS SUSTAINABILITY EFFORT A CASE IN OF PT BORNEO ENERGI INDONESIA

• Main Author: Haerudin, Ridwan
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/74452
• Institution: Institut Teknologi Bandung

The high rate of consumption of fossil fuels in Indonesia encourages PT Borneo Energi Indonesia to continue to increase oil and gas production to support national production. This is a challenge for PT Borneo Energi Indonesia which has mature well assets and other production facilities that require huge maintenance costs, and this is a contributor to the company's increasing costs during the 2020-2022 period as can be seen from the trend of increasing production and operating costs as well as declining oil prices. This has a significant impact on profits and affects the continuity of the company's business in the future. Therefore, a cost optimization program needs to be carried out to assist companies in maintaining profit and in dealing with uncertainties in the oil and gas industry. The cost optimization program that has been carried out has not been optimally implemented so it still needs to develop considering the complexity current organizational conditions of PT Borneo Energi Indonesia after the implementation of holding sub holding. This study uses qualitative methods, data obtained through in-depth interviews and Focus Group Discussion (FGD) with employees at PT Borneo Energi Indonesia who have different ages, educational backgrounds, and years of experiences as PT Borneo Energi Indonesia employees. The questions posed in the one-on-one interviews and FGDs were aimed at observing how far the respondents knew the condition of existing costs in the company, their impact on company profits, and the impact on economic, social, and environmental aspects as an indicator of corporate sustainability. The results show that the role of Synergy & Borderless Operation and Digitalization are pillars that need to be prioritized in responding to future challenges, especially in the industry 4.0 era, as well as the dynamics of organizational change that occurred after the implementation of sub holding and regionalization, to build business continuity for PT Borneo Energi Indonesia as an oil and gas company. Therefore, this study can help PT Borneo Energi Indonesia to focus on the pillars that contribute the most to optimal cost optimization, to maintain a profit and maintain the company's sustainability in the future.