Proposed Solution of Operational Strategy to Improve Coal Production: A Case Study of Sambarata Mine Operation

  • Raihan Muflihhamim School of Business and Management Institut Teknologi Bandung

Abstract

PT. Berau Coal is one of the largest coal companies in Indonesia and Sambarata Mine Operation (SMO) is one of the concession areas of PT. Berau Coal. In 2022, the government approved Annual Work Plan and Budget (RKAB) for company’s coal production of 33,000,000 tons However, based on production parameters, Berau Coal is only able to accommodate as much as 26,000,000 tons. The purpose of this study is to identify and analyze operational strategies that could impact coal production in the Sambarata Mine Operation with the current production parameter plan, that suitable for current and future conditions, and determine the implementation plan and strategy performance indicator of the strategy. According to external research analysis, coal prices will remain high in 2022, the global economic recovery will lead to an increase in coal demand, and external parties will have a significant impact on the coal industry. The internal resources of the Sambarata Mine Operation show that there are huge additional coal reserves to improve coal production with support from engineers and contractors. The findings are, the SO and WO strategies are consistent with the economic situation, which predicts that the global economy's recovery will result in high prices and increased demand. The ST and WT strategies are consistent with the global coal industry condition, in which external parties will have a significant impact on the coal industry, requiring PT. Berau Coal must plan for the worst-case scenario. The strategy will be implemented by prioritizing the strategy with the greatest impact on increasing coal production while also being the easiest to implement. In general, the indicator of the strategy's performance will be measured by the actual production in the Sambarata Mine Operation and refer to the actual global economic condition in 2022 and the coal industry demand, especially in the Chinese market.

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Published
2022-12-31
How to Cite
MUFLIHHAMIM, Raihan. Proposed Solution of Operational Strategy to Improve Coal Production: A Case Study of Sambarata Mine Operation. International Journal of Business and Technology Management, [S.l.], v. 4, n. 4, p. 96-108, dec. 2022. ISSN 2682-7646. Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/20650>. Date accessed: 21 apr. 2024.
Section
Articles