The Analysis of Make-or-Buy Decision In The Oil Procurement Activities In PT Pertamina (Persero)

• Main Authors: , Aryo Fajar Syaifulloh, , Dr. Rangga Almahendra, S.T., M.M.
• Format: Theses and Dissertations NonPeerReviewed
• Published: [Yogyakarta] : Universitas Gadjah Mada 2013
• Subjects: ETD
• Online Access: https://repository.ugm.ac.id/120305/; http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=60327
• Institution: Universitas Gadjah Mada

High levels of fuel consumption, the decline in crude oil lifting production and a stagnant Pertamina's refinery capacity cause to the fuel shortage, which must be procured through the import process that resulted in high subsidy. World Bank suggested that Pertamina should build more infrastructures (refinery) in order to reduce the amount of fuel products import to reduce the amount of subsidy. In relation to the procurement of fuel, researchers along with experts construct three scenarios, they are: (1) Pertamina to build refinery and operate crude oil processing, (2) Construction of an oil refinery and a crude oil processing done by the private sector, (3) Pertamina import the fuel products. These three scenarios are then analyzed using the financial feasibility study to see which scenario has the best investment value. In addition, because there are many factors that influence the selection of these scenarios, this research method Multiple Criteria Decision Analysis (MCDA). Based on the financial feasibility analysis, showed that the scenario in which Pertamina to build the refinery and operate the crude oil processing has the best investment value (highest NPV). Based on MCDA that conducted with experts, showed that the scenario in which the private sector to build the refinery and operate crude oil processing has the highest score. Due MCDA considering various factors (not just financial factor only), then the results obtained through the analysis of MCDA become a recommendation for Pertamina.