Proposed Business Strategy for PT Aneka Tambang TBK for Market Development in Order to Increase Export of Ferronickel

Abstract

PT Aneka Tambang (ANTAM) Tbk is part of the SOE’s Holding Mining Industry which vertically integrated, export-oriented, diversified mining and metals company. ANTAM has two big commodities which are gold sectors and nickel sectors. Nickel based products consist of Nickel Ore, Ferronickel, Bauxite, and Alumina. Ferronickel is a high-grade product of nickel downstream which contains 20% – 25% of nickel and mostly consumed by stainless steel companies. ANTAM is the only company in Indonesia that can produce Ferronickel. In the nickel market, many companies produce the substitute product of Ferronickel which is Nickel Pig Iron (NPI). Ferronickel and NPI are serving the same market while NPI itself contain lower of nickel and cheaper than Ferronickel. Government of Indonesia supported the development of downstream industries in Indonesia. The growth of battery industries is escalating resulted high demand for it. Technology is currently improving the process to transform Ferronickel and NPI into Nickel Mattes (Ni Mattes) which used to be an intermediate component to produce electric vehicles (EV). Based on the demand of global market, there are many demands for Ferronickel supplies in the worldwide. However, the capacity exports of Ferronickel in ANTAM are still far behind. This study analyzes business problems using several tools to identify the external environment and internal environment of ANTAM. SWOT analysis is used to capture the strength, weakness, opportunity, and threat that affects the business of the company. The Root Cause Analysis is used to define problems that happened in ANTAM and needed to be solved. Data and information were obtained from various sources such as interviews with the internal of ANTAM, observation, and study from the literature. The study found that ANTAM has lower export sales caused by the limited market scope, lack of promotion, and no product development. To overcome the problems that faced by ANTAM, the author proposes a business strategy for ANTAM for market development to increase export of Ferronickel by using the Strategy Diamond Framework and Ansoff Matrix as the strategy that will be implemented in ANTAM. The stages in this strategy were concerned more with the issues and provide solutions to increase the export of Ferronickel. Therefore, ANTAM should focus on market development to reach the widen market and fulfill the demand of Ferronickel in the global market.