STRATEGY FOR COMMERCIALIZATION OF PERTAMINA RENEWABLE DIESEL IN THE B2B DOMESTIC MARKET

• Main Author: Sahkundiyar
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/79679
• Institution: Institut Teknologi Bandung

KPI is a major energy corporation that operates in Indonesia, primarily producing diverse fuel and petrochemical products from its six refineries nationwide. PT KPI has successfully modified its facility to manufacture the first renewable diesel in the region to meet global and national energy transition and decarbonization goals. This renewable product surpasses FAME/biodiesel in terms of its superior quality, sustainability, and ability to be used directly without requiring any modifications to the engine. In the medium term, KPI plans to build a new Green Refinery to increase the renewable diesel production capacity. The success of the modification project for producing renewable diesel is expected to align with the commercialization activities, but the actual sales of the product are far from the target; after 1-year operation, the sales quantity only accounts for 12 % of the total production capacity. The sales for the global market, especially the EU market, were restricted by the acceptance of the feedstock sustainability issue. The poor commercial performance will disrupt the future medium project and energy transition target in KPI and nationally. On the other hand, the increment mandate FAME blending in solar causes concern to B2B customers, such as heavy equipment in mining; due to its quality issue, there is a potential to commercialize the product in the domestic market through B2B customers, which also consume a high amount of biosolar. This research aims to develop a marketing strategy for commercialization in the domestic market. To answer the business issue, the conceptual framework was developed to understand customer behaviour decision-making; the research starts from the business issue, followed by a situation analysis of internal and external factors. From the Business situation analysis and conceptual framework, a SWOT analysis was performed to evaluate the root cause analysis of this issue. According to the SWOT Analysis, a set strategy was elaborated using the TOWS matrix, and the solution was ranked based on pros and cons for the effective implementation with the optimum cost. Based on the analysis, three proposed strategies need to be executed to commercialize renewable diesel in the B2B domestic Market which is improving and accelerating market penetration through support, improving capabilities and assigning a special team to execute the marketing strategy, and expanding/allocating resources for product knowledge and advertisement to the B2B customer.