INDONESIA'S MINING DOWNSTREAM INDUSTRY IN 2045: APPLYING SCENARIO PLANNING FOR TESTING CORPORATE DIVERSIFICATION STRATEGY; STUDY CASE OF AN INDONESIAN MINING COMPANY
PT Batubara Indonesia (“BI”) as one of the leading coal producers in Indonesia has prepared their corporate diversification strategy up to 2045. They plan to expand beyond coal business to enter mining downstream business in Indonesia to become their future business portfolio. As future challenges a...
Saved in:
| Main Author: | |
|---|---|
| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/86550 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | PT Batubara Indonesia (“BI”) as one of the leading coal producers in Indonesia has prepared their corporate diversification strategy up to 2045. They plan to expand beyond coal business to enter mining downstream business in Indonesia to become their future business portfolio. As future challenges are coming such as the continuing climate change effects, energy transition, and other uncertainties that can impact coal mining sectors, it is necessary to test current BI’s corporate diversification strategy to check its adequacy in facing future uncertainties.
Scenario planning methodology is selected as tool to test the strategy. The specific research as the literature which analyzing comprehensive mining and its integration to downstream products including the minerals and coal-chemical downstream by using the scenario planning are not yet found. So, this research will contribute to giving a view of comprehensive plausible scenarios for those industries in Indonesia and showed practical application of scenario planning as tool for testing corporate diversification strategy as the case study. The Oxford Scenario Planning Approach (“OSPA”) is used in this scenario project considering its suitability for corporate strategy testing by following full iteration process of reframing-reperception to refine the current strategy. The scenario creation used inductive methodology of all key-driving forces gathered from set of questionnaires, interviews, and focus group discussion with key respondents.
Thirty-three aggregated key-driving forces from total 321 factors that can shape Indonesia’s Mining Downstream Industry in 2045 are identified in this research. Three scenarios are created from these key-driving forces: “The Endless Winter”, which emphasizing the dominancy of foreign actors and factors indicated by prolonged and harsh state of global geopolitical situation, “The Monsoon Rain”, which emphasizing the dominancy of disruptive technological development factors, ESG requirement, and customer behavior change towards cleaner products, and “The Uneven Harvest Season”, which emphasizing dominance role of Government of Indonesia in pushing mining resources nationalism and shaping the domestic mining-based industrialization.
By testing BI’s current strategy with the created scenarios, we can find that the strategy elements that relevant to at least 2 scenarios are 36%. Improvement recommendations have been proposed to make it relevant to all scenarios or at least 2 scenarios. In addition, to keep relevant with the updated development, it is recommended to review the scenario including its updated early warning signals at least once per year and make necessary adjustments. It is also needed to embed the created scenario in the company’s portfolio management, as the tools or guidance to review the investment portfolio. |
|---|