ACCELERATION OF RENEWABLE ENERGY TOWARD NET ZERO EMISSION IN INDONESIA UPSTREAM OIL AND GAS (STUDY AT PT PERTAMINA HULU ROKAN)

• Main Author: Citra Anggi Aprilia, N.G.M
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79960
• Institution: Institut Teknologi Bandung

Indonesia is making strides towards renewable energy, but its energy security still heavily relies on fossil fuels, especially coal, oil, and natural gas. The upstream oil and gas industry in Indonesia is working on long-term plans to achieve oil production of 1 million barrels oil per day (BOPD) and 12 billion standard cubic feet per day (BSCFD) gas lifting by 2030. PT Pertamina Hulu Rokan (PT PHR), one of the Production Sharing Contract (PSC), supports this long-term plan while considering global conditions affecting the industry. They are particularly focused on the transition to renewable energy as the role of oil diminishes. PT PHR, in partnership with PT Pertamina Power Indonesia, a sub holding of PT Pertamina Persero, is initiating the development of a Solar Power Plant in the Rokan Work Area. The aim is to reduce carbon emissions and align with government targets for energy transition, to achieve 23% share of New Renewable Energy (EBT) by 2025 and ultimately attain net-zero emissions by 2060. The Rokan Work Area's location and geographical conditions offer significant potential for photovoltaic power output, with the Solar Power Plant spanning 28.87 hectares across three locations: Rumbai, Duri, and Dumai. The Solar Power Plant is planned to have a capacity of 10% of the total energy needs of the Rokan Working Area, with a production capacity of 25 MWp in phase 1 (scheduled for 2023) and is expected to reach 100 MWp in phase 3 (scheduled for 2026). iv This research focuses on analyzing internal and external factors in PT PHR's implementation of renewable energy through solar power and proposes an acceleration plan to address challenges. The analysis conducted in this research includes internal analysis using the VRIO Framework, external analysis utilizing the PESTEL Framework and Porter’s Five Forces, as well as SWOT and TOWS Analysis, STP (Segmentation, Targeting, and Positioning), and Business Strategy through the Diamond Model. Several analysis tools mentioned above resulted in some suggestions for PT PHR to accelerate renewable energy towards net zero emissions. Some implementation suggested for PT PHR are expansion of Solar Power Plant to gain profitability, establishment of new business line for solar panel production, and establishment of new solar waste management business. These three actions are able to utilize PT PHR strengths and opportunity presented, as well as address threats and improve company weaknesses. Furthermore, establishment of solar energy industry production line and solar waste management system will have segmentation of companies in various scale and regions that deploys Solar Power Plant for private use, commercial use and industrial use. Specifically, targeting will be focused on national companies who seeks for different specifications of solar panel, national companies who wants to fulfill other equipment as well as fulfill their TKDN quota to gain benefits and pursue cost efficiency, as well as multi-national companies who wants to subsidize their equipment to less costly producer in developed countries. In terms of business strategy, PT PHR will be focuses to develop solar panel product with lower total costs (due to the capability to reduce buyer’s import costs) with premium products and services. As in Solar Power Plant expansion, due to the status of PLN as singleoff taker, this strategy will be utilized in two main purpose: to reduce energy costs of PT PHR as a whole, especially in Rokan area and to sell the generated electricity to PT PLN.