Strategy Formulation Analysis For New Renewable Energy Business Development (Case Study Of Pt Pertamina)

Abstract

Indonesia faces significant challenges in energy transition with its 89% dependence on fossil fuels. As the largest state-owned energy company, PT Pertamina plays a strategic role in driving Renewable Energy (EBT) development. However, the company faces internal constraints such as fossil fuel dependency and technological limitations, along with external challenges including global energy price volatility and market competition. This study aims to formulate Pertamina's EBT business development strategy through SWOT analysis, IE Matrix, and QSPM approaches. Data were collected through in-depth interviews with Pertamina's directors, academics, and policymakers during 2022-2024, supported by document analysis and policy review. Internal factor evaluation (IFE score 3.05) revealed the company's main strengths in energy sector experience, skilled workforce, and extensive distribution networks. External evaluation (EFE score 3.94) identified major opportunities from government policy support and global clean energy demand. QSPM analysis yielded three priority strategies: (1) Product Development focusing on EBT diversification and technological innovation (TAS 7.07); (2) Market Development through segment expansion and digitalization (TAS 6.62); and (3) Market Penetration using pricing incentives and public education (TAS 6.29). Implementing these strategies requires increased R&D investment, strategic stakeholder collaboration, and adaptive management approaches.