RESEARCH ON COMPETITIVE DEVELOPMENT STRATEGY OF CHINA ENERGY INVESTMENT CORPORATION IN INDONESIA UNDER THE NET ZERO EMISSION CONTEXT

• Main Author: Zhongju, Yuan
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/81280
• Institution: Institut Teknologi Bandung

As the global energy landscape evolves towards sustainability and decarbonization, the role of renewable energy investment becomes increasingly crucial. Indonesian government accelerated its energy transition to meet the Net Zero Emission target, significantly shifting its stance on coal energy and long-term greenhouse gas emissions.The Chinese and Indonesian governments are jointly deepening the advancement of the "Belt and Road" and "Global Maritime Fulcrum" strategies, laying the foundation for Chinese power companies to participate in Indonesia's energy transition. This research focuses on China Energy Investment Corporation and, within the context of Indonesia's energy transition, utilizes competitive strategy theory. Based on literature review, methods including questionnaire surveys, interviews, and comparative analysis are employed. The research systematically examines the internal and external environments of China Energy's investments in new and renewable energy in Indonesia. Drawing on the findings of the analysis and incorporating SWOT analysis and quantitative QSPM analysis, the study proposes that China Energy adopts a cost leadership strategy. In implementing the cost leadership strategy, China Energy should tailor its development strategies for different types of projects such as geothermal, hydro-power, solar, wind, and biomass, focusing on project acquisition, construction, supply chain, operations, and digitalization, centralization to realize cost leadership and gain competitive advantage. Additionally, leveraging brand benefits, optimizing organizational structure, enhancing international human resource development, advocating for localization in control standards, and strengthening risk management are recommended to ensure the effective implementation of the cost leadership strategy.