OVERCOMING CHALLENGES IN SOLAR PANEL BUSINESS: A CASE STUDY OF ENERGIAS IN INDONESIA FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By RIFQI PUTRAYESA Student ID: 29120629 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG Desember 2024 1 ABSTRACT OVERCOMING CHALLENGES IN SOLAR PANEL BUSINESS: A CASE STUDY OF ENERGIAS IN INDONESIA By Rifqi Putrayesa Student ID: 29120629 (Master of Business Administration Program) Climate change and dependence on limited fossil energy sources have caused energy crises and economic instability worldwide and in Indonesia. Dependence on non-renewable energy also threatens the sustainability of the environment in Indonesia. This has led to a desire for renewable energy, one of which is solar power. With its strategic geographical location on the equator, Indonesia has great potential for the use and development of solar energy and can be one of the solutions to meet energy needs while reducing carbon emissions. Energias, as a small company engaged in the provision and installation of solar panels, aims to meet the demand for renewable and affordable energy in Indonesia. In this study, the author aims to analyse the factors that pose challenges for small companies in the renewable energy industry using the VRIO and PESTLE approaches. The VRIO analysis is used to identify the internal resources owned by Energias and to evaluate which internal factors influence Energias' performance while operating in this sector. On the other hand, the PESTLE analysis evaluates the external factors affecting Energias and similar businesses, including the significant potential of solar energy, government policies, market dynamics, and technological trends, which influence the company's development in the local and global economic context. The results of this research are expected to provide strategic recommendations to enhance Energias' competitiveness in the renewable energy market, as well as offer insights for other small business operators in leveraging opportunities and overcoming challenges in the solar energy sector in Indonesia. Keywords: Energias, Solar Panel, Renewable Energy, Environment, VRIO Analysis, PESTLE Analysis 2 ABSTRAK OVERCOMING CHALLENGES IN SOLAR PANEL BUSINESS: A CASE STUDY OF ENERGIAS IN INDONESIA Oleh Rifqi Putrayesa Student ID: 29120629 (Master of Business Administration Program) Perubahan iklim dan ketergantungan terhadap sumber energi fosil yang terbatas telah menimbulkan krisis energi dan ketidakstabilan ekonomi di seluruh dunia dan Indonesia. Ketrgantungan terhadapan energi tidak terbarukan juga mengancam keberlangsungan dari lingkungan di Indonesia. Hal tersebut membuat adanya keinginan akan energi terbarukan, salah satunya dengan menggunakan tenaga surya. Dengan letak geografisnya yang strategis di garis khatulistiwa, Indonesia memiliki potensi besar untuk penggunaan dan pengembangan energi tenaga surya dan dapat menjadi salah solusi untuk memenuhi kebutuhan energi sekaligus mengurangi emisi karbon. Energias, sebagai perusahaan kecil yang bergerak di bidang penyedia dan pemasangan panel surya, bertujuan untuk memenuhi kebutuhan energi terbarukan dan terjangkau di Indonesia. Dalam penelitian ini penulis bertujuan untuk menganalisis faktor-faktor yang menjadi tantangan yang dihadapi perusahaan kecil dalam industri energi terbarukan dengan menggunakan pendekatan VRIO dan PESTLE. Analisis VRIO digunakan untuk mengidentifikasi sumber daya internal yang dimiliki oleh Energias serta memberikan evaluasi, factor internal apa yang mempengaruhi kinerja Energias selama menjalankan bisnis di sektor ini. Di sisi lain, analisis PESTLE mengevaluasi faktor-faktor eksternal yang berpengaruh bagi Energias dan bisnis sejenis, termasuk potensi besar energi surya, kebijakan pemerintah, dinamika pasar, dan tren teknologi, yang memengaruhi perkembangan perusahaan dalam konteks ekonomi lokal dan global. Hasil penelitian ini diharapkan dapat memberikan rekomendasi strategis untuk meningkatkan daya saing Energias dalam pasar energi terbarukan, serta menawarkan wawasan bagi pelaku usaha kecil lainnya dalam memanfaatkan peluang dan mengatasi tantangan di sektor energi surya di Indonesia. Keywords: Energias, Solar Panel, Renewable Energy, Environment, VRIO Analysis, PESTLE Analysis 3 OVERCOMING CHALLENGES IN SOLAR PANEL BUSINESS: A CASE STUDY OF ENERGIAS IN INDONESIA By Rifqi Putrayesa Student ID: 29120629 Master of Business Administration Program Institut Teknologi Bandung Supervisor 1 Supervisor 2 (Sonny Rustiadi, SE., MBA, Ph. D.) (Dr. Alvanov Zpalanzani, M.M.) 4 DECLARATION OF NON-PLAGIARISM I understand that Plagiarism is wrong, a breach of academic integrity, and against Program, School, and University’s Policy and Regulation. I declare that all material in this Final Project is original, my own work, and does not involve plagiarism. I have not allowed, and will not allow, another to copy my work with the intention of submitting it as her or his own work. Plagiarism is: Taking, using, and submitting a work of another, including an idea, writing, or invention, as if it was her or his own. Plagiarism includes (but not limited to): 1. quoting verbatim the work of another without acknowledgement of the source; 2. paraphrasing the work of another without acknowledgement of the source; 3. using the idea of another without acknowledgement of the source; 4. submitting the work of another without identifying clearly who did the work; 5. colluding by submitting the work of another as her or his own with consent from the other. Rifqi Putrayesa 29120629 30 November 2024 5 FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institut of Technology, and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner, however the citation and summarization can only be proceed upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Putrayesa R. (2024): Overcoming Challenges in Solar Panel Business: A Case Study of Energias in Indonesia, Masters’ Final Project, Institut Teknologi Bandung. Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. 6 ACKNOWLEDGEMENTS Foremost, I extend my deepest gratitude to Allah for His endless blessings, which have been instrumental in my journey towards completing this final project, a pivotal requirement for my master's degree. I am immensely grateful to my supervisors, Sonny Rustiadi, SE., MBA, Ph. D., and Dr. Alvanov Zpalanzani, M.M., for her invaluable guidance and unwavering support throughout the development and completion of this project. Her wisdom and mentorship have been fundamental in shaping my academic journey. My heartfelt thanks also go to the esteemed faculty members of SBM ITB Bandung. Their profound knowledge and insights have greatly enriched my learning experience during the MBA program. Additionally, I would like to express my appreciation to the dedicated staff of SBM ITB Bandung, who have consistently provided essential academic assistance and support. This thesis would not have reached its culmination without the enduring support of my beloved family and dear friends. Their encouragement, prayers, and unceasing love have been my pillars of strength. I am eternally thankful for their patience and care throughout my academic pursuit. Lastly, I aspire that this study contributes valuable insights for researchers and entrepreneurs seeking to enhance their businesses. Recognizing the imperfections in my work, I warmly welcome feedback and suggestions for future research improvements, aiming to advance collective knowledge in our field. Bandung, 30 November 2024 Rifqi Putrayesa 7 TABLE OF CONTENTS Chapter I Introduction ......................................................................................................... 10 I.1 Background ................................................................................................................