The Government of Indonesia has mandated an accelerated solar power to
strengthen energy security, reduce emissions, and diversify its coal-dominated
generation mix under the RUPTL 2025–2034. PT PLN (Persero), state-owned
electricity company, is obliged to lead this program, valued at approximately USD
71.3 billion through 2034.
This research applies a qualitative strategic-management approach, combining
external analysis (general environment, industrial environment and competitor
environment analysis) with internal analysis (resource based, VRIO and value chain
analysis), following the framework of Hitt, Ireland, and Hoskisson (2019). Data
were gathered through government regulations and PLN's internal strategy
documents, synthesised through a SWOT/TOWS matrix.
Using VRIO and value chain analysis, PLN has identified to possess two
sustainable competitive advantages, and four temporary competitive advantages
derived from its capabilities. This research proposes corporate level and business
level strategy to achieve above-average return. Corporate level strategy proposed
related-constraint diversification strategy and vertical integration to extend market
power. Business level strategy results Integrated Cost Leadership/Differentiation
Strategy and strategic diamond that provides roadmap of this program and
capability development for PLN build utility-scale solar power plant independently.
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