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Strategy for Commercialization of Pertamina Renewable Diesel in the B2B Domestic Market

Author

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  • Sahkundiyar

    (Bandung Institute of Technology, Indonesia)

  • Atik Aprianingsih

    (Bandung Institute of Technology, Indonesia)

Abstract

KPI is a major energy corporation that operates in Indonesia, primarily producing diverse fuel and petrochemical products from its six refineries nationwide. PT KPI has successfully modified its facility to manufacture the first renewable diesel in the region to meet global and national energy transition and decarbonization goals. This renewable product surpasses FAME/biodiesel in terms of its superior quality, sustainability, and ability to be used directly without requiring any modifications to the engine. In the medium term, KPI plans to build a new Green Refinery to increase the production capacity of renewable diesel. The commercialization of renewable diesel is far from the target, only 12% of the total production capacity. This poor sales performance will endanger the continuity of future projects and energy transition targets in KPI and nationally. This research aims to understand the B2B market and customer decision-making behavior regarding renewable diesel products. To answer the business issue, the author utilizes the conceptual framework of the Five-Stage Model of Business Decision Behavior developed by Koster and Armstrong. Relevant respondents from the business-to-business sector were questioned using a predetermined set of questions, following the established protocol of the Five Stage Model concept. The respondents were middle and senior-level executives from major B2B clients who fully understood and knew about fuel operations, sustainability-related business challenges, and decarbonization. Through the recommended framework and analysis of consumer business decision behavior, a recommendation and solution were proposed for marketing strategy the renewable diesel product to B2B clients.

Suggested Citation

  • Sahkundiyar & Atik Aprianingsih, 2024. "Strategy for Commercialization of Pertamina Renewable Diesel in the B2B Domestic Market," European Journal of Business and Management Research, European Open Science, vol. 9(6), pages 141-144, October.
  • Handle: RePEc:epw:ejbmr0:v:9:y:2024:i:6:id:52243
    DOI: 10.24018/ejbmr.2024.9.6.2243
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