Articles

Renewable Energy Transition Strategy for PT.CI to Reduce 50% Emission by 2030

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The global and Indonesia energy trend is heading to process of transitioning from fossil fuel to renewable energy (decarbonization) in the purpose of reducing Green House Gas (GHG) effects. Industries as one of the biggest contributors of emission generator expected to participate in this effort, where fuel and electricity play significant roles in running the operation. Many businesses try to participate and state their commitment on this energy transition initiative by increasing the portion of renewable energy within their operation. Meanwhile, business have several uncertainties’ on how the renewable energy will be acquired and will this renewable energy options be available at the time they need it. Campur Plc. (CP) through its subsidiary in Indonesia, PT. Campur Ilmiah (PT. CI) has targeted the entity to reduce 50% of the emission by 2030 with the baseline of 2018, which align with corporate target of 46.2% of emission reduction globally. Uncertainties on achieving this target generated from external and internal factors, and not to forget how to sustainably maintain the achievement. The location of PT.CI in industrial estate need to be considered as limitation because the power and energy supply are regulated. The accessibility, availability and affordability of renewable energy are expected to be handled by the government, industrial estate or other third party in energy business, but the phasing and the achievement up to now has not shown a promising progress. As a business, PT.CI need to have a strategic planning on this energy transition to support the global target as well as shown a positive investment climate in Indonesia. There are four (4) scenarios has been developed and each of the scenarios are explored to identify alternative and possible strategies to still be able achieving the target and how the organization manage these changes. As the conclusion of this research, four (4) strategic imperatives are defined. This research also might be use as the reference of future planning for the similar industries that have the similar target and type of energy mix.

Strategy Development for Survival & Growth of MRO Company during & Post Covid-19 Pandemic (Case Study: GMF Aeroasia)

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Indonesian Aviation Market 2020 was predicted to grow around 7.0% compared to 2019. It gave Indonesian MRO industry an optimism at first, at least in the beginning of the year, before WHO declared COVID-19 pandemic in March 2020. The COVID-19 pandemic has a dire impact on the aviation & MRO industry. As of July 2021, flights still haven’t reached 50% compared to pre-COVID era. Many MRO companies, including GMF AeroAsia, must face an unprecedented situation that caused the market to shrink significantly, and enter the financial distress zone. Several initiatives have been taken by the company. However, with the protracted pandemic conditions and the uncertainty of Indonesian Aviation Market recovery, further strategies are needed to survive and growth. This study aims to analyze the company and develop a strategy based on 2 stages, namely the retrenchment phase and the recovery phase. The retrenchment phase will focus on the survival strategy, while the recovery phase will focus on the growth strategy using scenario planning because the future is still uncertain. From the analysis and interviews, several initiatives and strategies for survival and growth were developed. Several initiatives for survival include headcount cuts, operational efficiency, product elimination, liquidation & divestment, equity for debt swaps, and renegotiate with lenders. While the growth strategy was developed based on 4 scenarios, namely Flying Through Thunderstorm, Flying with Engine Failure, Flying with Broken Wings, and Flying Zig-Zag.