ABSTRACT BUSINESS STRATEGIES FOR THE MOST COMPLEX INDONESIAN OIL REFINERY

• Main Author: Nurcahyono, Eko
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/86663
• Institution: Institut Teknologi Bandung

Various efforts were made by the Indonesian government to realize energy selfsufficiency so as not to depend entirely on imports, for example through Pertamina as a state-owned enterprise to build the Balongan Refinery. The Balongan refinery was designed and built using the most advanced technology and configurations at the time so that it could process low-cost heavy/very heavy crude oil into a variety of fuels, petrochemicals, and other products. Despite having a highly advanced configuration (11.9 NCI) that far exceeds other domestic refineries as well as refineries in Asia, the Balongan Refinery is under economic pressure from various external factors, such as rising crude oil prices and the preference for higher-priced product types by the market. This research seeks to address and formulate the strategies for the Balongan Refinery to improve its operating performance and economics. The three aspects of the strategy that were researched and evaluated, which were then proposed as the main findings in this study, were the strategy of utilizing potential crude oil alternatives, the strategy of diversifying superior products referring to product price trends in the market, and the low-cost investment strategy. This research generally uses quantitative methods with primary data collection but is also equipped with informal discussions with related sources without using questionnaires. Furthermore, the data from the data is processed using a methodology compiled by the author himself. In this study it was also found that flexibility in the selection and processing of potential crude oil with attractive prices is the main key to ensuring the sustainability of the Balongan Refinery operations and business. By using technical specification selection and economic calculations, two alternative crudes were obtained that were suitable for the Balongan Refinery. Based on the SWOT Analysis to increase profitability, the Balongan Refinery must be able to increase diesel production which currently has a relatively higher price than gasoline. To increase diesel production, optimization of LCO ex stream DCO processing to the ARHDM Unit is one of the efforts that can provide a better financial impact.