Articles

The Future of Nickel Mining Industry – Study at PT VALE

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Indonesia is the world’s largest producer of nickel. With the increasing global demand for nickel, it presents an opportunity for Indonesia to enhance its revenue potential through the export of nickel ore. Concurrently, the Government of the Republic of Indonesia has implemented policies to promote the downstream processing of nickel ore, thereby creating a multiplier effect on the country’s economy. PT VALE Indonesia stands as one of the largest nickel mining companies in Indonesia. The opportunity to process nickel ore holds the potential for added value and profits for PT VALE Indonesia. However, the production and sales of nickel by the company have experienced a decline over the years. This becomes intriguing as valuing the company requires forecasting nickel prices.

This research analyzes the historical performance of PT VALE Indonesia and provides insights into potential further declines in performance, offering strategic steps as preventive measures for the company’s sustainability. Utilizing nickel price projections and pro forma methods, this research represents a form of company valuation study. Additionally, it sheds light for investors that, as of December 30, 2022, the company was undervalued by the market.

Tapping the New Source of Growth: New Marketing Strategy for a Heavy Equipment Distributor in the Nickel-Mining Sector

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Indonesia which owns 23% of the world’s nickel reserves, is in the early phase of the nickel sector development, which affects the heavy equipment industry to support operations. PT Kaizen Distributor, Tbk is a seller of an Articulated Dump Truck (ADT) and the sole distributor of the Kaizen brand in Indonesia. To date, the corporate has focused only on sales to the coal and gold mining sector and is yet to conduct nickel-mining market penetration to the fullest. This is indicated by a decrease in the corporate nickel sub-sector contribution from 26% to 16% and instability of unit sales. While the current ADT competition is very competitive, therefore, the purpose of this research is to formulate a new marketing strategy to focus on the nickel-mining segment. The qualitative methods were used by carrying out observations, in-depth interviews, and utilizing supporting data from internal and external corporate reports. SWOT Analysis is a generic framework used for business environment analysis. The Positioning Maps and the Existing 4Ps Marketing Mix are used to assess the corporate’s positioning and strategies. As the research result, the corporate needs to develop strategies based on the relationship between the corporate’s internal-external environment factors using TOWS and make changes in Positioning regarding more product variety and more attractive promotion campaigns. This repositioning is supported by the development of the Existing 4Ps Marketing Mix, such as by improving the features of existing products and proposing a larger capacity type, considering pricing strategies, increasing supply allocation, widening market area coverage, attractive maintenance packages, flexible financing, and product bundling package offers. Also, the addition of other 3Ps as a form of improvement is by evaluating salesperson’s competency in entering new markets, increasing the efficiency of customer surveys, and adding new product support points.