1 Chapter I Introduction I.1 Background According to GlobalData, Indonesia is the world’s largest producer of nickel in 2023, with output up by 21% on 2022. Over the five years to 2022, production from Indonesia increased by a CAGR of 24% and is expected to rise by a CAGR of 13% between 2023 and 2027. Data released from Indonesian Ministry of Energy and Mineral Resources stated that Indonesia has the world’s largest Nickel reserves of 72 million tons or about 23% of the world’s total reserves. Figure 1.1 Nickel Resources Worldwide (Source: ESDM) In the next few years, many researchers have predicted that there will be a spike in world nickel production due to the increasing development of nickel derivative products, one of which is batteries. As shown in the figure 1.2 Indonesian nickel demand from EV will continue to increase until 2026. Seeing the potential, the government of Indonesia has begun several moves to increase both quantity and quality of the nickel produced that in line with the increasing world demand for 2 nickel. One of the policies is the regulation prohibiting the export of nickel ore that is stated in Permen ESDM no.11 Tahun 2019. The purpose is so that Indonesia is not only known as a seller of raw materials but also derivative products that add selling value. Figure 1.2 Nickel Demand from EV (Source: KISI Indonesia) According to Minerba one Map, from Ministry of ESDM, nickel mining companies in Indonesia the number of nickel companies in Indonesia always increases from year to year This is also supported by the constant increase in nickel prices from year to year as shown in figure 1.3 below. Figure 1.3 Nickel Price Worldwide (Source: Kompas Indonesia) 3 Nickel mining companies always increase from year to year, recorded in 2021 according to the mineral and coal booklet published by the Ministry of Energy and Mineral Resources, there were 292 nickel companies, and currently according to Minister of Energy and Mineral Resources Arifin Tasrif said, of the 700 nickel companies, 470 nickel companies had their RKAB applications approved. It was recorded that the approved tonnage of the RKAB reached 240 million tons of nickel ore per year. Mining activity is strongly related to the use of analyzing equipment to analyze what kind of element that consists in the nickel ore. X-ray fluorescence spectrometry (XRF) is a well-established analytical method to determine chemical composition in materials with high accuracy and minimum sample preparation and therefore is a preferred technique in process and quality control across many industries especially on nickel mining companies. Knowing how many percent Nickel (Ni), Magnesium (Mg) and Silica (Si) is one of the requirements to determine how what is the price of nickel ore per metric ton, without knowing what kind of elements and how much the elements content, Mining companies can be blind when it comes to setting prices for the ore. source person from mineral and coal central lab of ministry of energy and mineral said that “Indonesia using reference mineral price calculations, it depends on how much the nickel price on London Metal Exchange (LME), %nickel, corrective factor and moisture content”. Below is the example of Indonesian Nickel Price References. 4 Figure 1.4 The example of Indonesian Nickel Price References (Source: APNI) The increasing demand for nickel in domestic markets and international markets as shown in figure number 1.2 is a wonderful potential to increase sales of XRF instrument. Regarding the potential increase sales of XRF instrument, source person from nickel mining quality control laboratory specialist said “XRF is a vital instrument to analyze how much percentage of nickel (Ni) content is contained in a sample of nickel ore. Mining companies need to know how much the nickel (Ni) content in their nickel ore from the exploration process, blending process and barging process”. Mining companies could do the nickel content analysis by using their own lab using XRF or sending the nickel sample to external lab service. In terms of cost, the source person continued “The cost of analysis nickel ore sample in the external laboratory is approximately 200-400 thousand rupiah per sample, so it is beneficial of mining companies to analyze the sample by using own laboratories 5 because it is less costly rather than paying external laboratory service.” From the interview process above, XRF instrument sales will be increasing along with the increasing demand for nickel ore in the world and the increasing number of nickel mining companies. However, this opportunity may also be used by the competitors. There are approximately 4 XRF distributor companies, each company carries different brands of XRF. To penetrate in the nickel mining segment, there will be a competitive pricing in a highly competitive market, requiring sole agent of XRF instruments to differentiate their products and other service to win the competition among the competitors, increase market share and profit margins. This final project will focus on the marketing strategy to increase the revenue, the profitability and long-term relationship with the customer. I.2 Company Profile PT Rindu Makmur, is a private company located in Jakarta, Indonesia. Since 1997, PT Rindu Makmur has focused on its business as the sole agent of analytical equipment such as Vasilon X-Ray Fluorescence, X-Ray Diffraction and many sample preparation instruments. As a sole agent, PT Rindu Makmur has the responsibility to sell and service all those products. The ownership of the company is 100% private with 5 main shareholders and has a main office and warehouse in Jakarta. Attached below structural organization of PT Rindu Makmur. 6 Figure 1.5 Structural Organization of PT Rindu Makmur (Source: Internal Data) As shown in Figure 1.5, the Sales and Marketing division at PT Rindu Makmur is under the direction of General Manager Sales and Marketing. Currently, marketing and sales is not in separated division but still has different objectives. Marketing teams Creating marketing strategies that attract potential customers and generate leads for the sales team, enhancing the visibility and reputation of the XRF brand in the target market through various marketing strategies and campaigns and educating the market about the benefits and applications of XRF technology through content marketing, webinars, and seminars. Sales teams are obliged to achieve sales targets by closing deals with new and existing customers and build and maintaining strong relationships with customers. 7 1.2.1. Vision, Mission and Value Vision To become the best supplier of good quality and professional analytical range of products for research, education, and industrial application in Indonesia with a strong and professional after-sales service and financially healthy company. Mission 1. Promote and sell high quality and professional analytical range of products in Indonesia with an excellent after-sales-service. 2. Build trust amongst the basic three elements of the business: the Principal, the Company, and the Customer, a continuous performance improvement system is developed and implemented within the Company. 3. Ensuring that sales and projects are managed, implemented, and delivered in a world class manner, rendering quality, and added value at the most competitive cost within a strict time frame to reach Customer’s satisfaction. Value The core value of the company is to lead all employees to provide all our customers with many amazing experiences in using scientific instruments which we sold and installed. We provide not only a brand new and high-quality product, but also many services to satisfy the customer’s needs. Our services include but are not limited to maintenance, training, and consultation. 8 1.2.2. Company Product PT Rindu Makmur is the sole agent from Vasilon X-Ray Fluorescence instrument. XRF is versatile analytical technique utilized many applications across an extensive spectrum of industries and scientific fields. Its adaptability and accuracy have made it an essential instrument for understanding and altering the elemental composition of materials. From aiding in material identification and quality control in industries to preserving cultural heritage and advancing scientific research, XRF significantly contributes to material identification in quality control in several businesses.