DEVELOPING BUSINESS STRATEGY TO ACHIEVE SUSTAINABLE BUSINESS FOR KANGEAN ENERGY INDONESIA LTD. THROUGH SCENARIO PLANNING

• Main Author: Samara Natalia Siregar, Raissa
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78040
• Institution: Institut Teknologi Bandung

Indonesia's remarkable economic growth has prompted the need for a robust energy security strategy to meet escalating energy demands. Natural gas, a crucial transitional energy source for achieving net-zero emissions, plays a central role. Despite substantial gas reserves, concerns about a potential disconnect between supply and demand pose uncertainties in the energy sector. To address these challenges, this study proposes a five-year business strategy for Kangean Energy Indonesia Ltd. (KEI) to ensure sustainable operations, employing qualitative scenario planning as the methodological approach. Primary data, gathered through interviews with carefully selected stakeholders and secondary data inform the study's foundation. Detailed narratives explore plausible future developments and alternative strategies, emphasizing the importance of early warning signals for KEI's adaptability. Various factors, including government policies, gas supply dynamics, infrastructure development, regulations, environmental considerations, competition, societal factors, energy demand, pricing fluctuations, alternative energy sources, and technological advancements, will shape Indonesia's gas industry in the next five years. These elements will significantly impact KEI as a leading gas contractor. The primary concerns in the Indonesian gas industry revolve around gas supply and infrastructure. Gas supply uncertainty is influenced by the maturity of existing reserves and the scattered potential of untapped reserves across regions. ii Infrastructure challenges involve establishing an interconnected gas pipeline network, particularly in eastern and western Indonesia. These two critical uncertainties give birth to four distinct scenarios that outline the potential pathways for Indonesia's natural gas delivery business: the Chaos at the Crossroads, Pioneering Pathways, Gushing Opportunities, and Sustainable Horizons scenarios. In the Chaos at the Crossroads scenario, KEI confronts the arduous survival task in a milieu marked by a scarce gas supply and an underdeveloped gas infrastructure. Technical challenges and inadequate infrastructure further exacerbate the predicament, compounded by uncertainties in government policies and a lack of supportive measures. The Pioneering Pathways scenario presents KEI with a critical juncture as it grapples with scarce gas supply amid the potential for comprehensive infrastructure development. The Gushing Opportunities scenario opens the door to unprecedented prospects in Indonesia's gas industry with the ample gas resources. However, the underdeveloped infrastructure poses a substantial impediment, restricting the industry's potential. Lastly, Indonesia's gas industry ascends to global prominence in the Sustainable Horizons scenario, underpinned by abundant gas resources, unwavering governmental support, and robust infrastructure. KEI's success in the next five years requires a comprehensive approach. This includes securing long-term contracts with competitive pricing for stable revenue, investing in research and development for sustainable resource utilization, exploring diversification opportunities to reduce reliance on a single business line, strengthening shareholder engagement to attract investments, collaborating with industry peers for stability, and forging international partnerships for knowledge and capital. A dynamic work environment through employee improvement programs ensures KEI maintains its market leadership.