Topan Ardiansyah Putra, Pri Hermawan
topanams@gmail.com,
prihermawan@sbm-itb.ac.id
Abstract
Jasa Sarana is a BUMD Holding of
the West Java Provincial Government engaged in Infrastructure. In running its
business, Jasa Sarana applies the Business Strategic Unit (SBU), a rock and
non-metal mineral mining business. It was initiated in 2005-2006, with a mining
area of 19.45 hectares, with rock mineral resource reserves of 3.3 million BCM.
However, it could only do optimized by 24% over 16 years. If done correctly,
the mining business plan must be implemented for only 15 years. With a target
Payback Period of 3.35 Years, an NPV of Rp. 1,641,000,000, and IRR of
20.44%. The remaining rock mineral resources currently available are 2.5
million BCM, expected to be re-developed and generate profits for the company.
Jasa Sarana has carried out preparatory steps, including conducting feasibility
studies and exploratory research on this mining business unit. It did expect
that the losses suffered by the company could recover in a fast time. Decision-making
on the right ways and methods to reactivate this Business Unit becomes a
concentration of research, consisting of situation assessment, decision
analysis, and analysis of potential problems. An evaluation of the situation
determines the conditions and causes of business operations underperforming
externally and internally. Several problems were revealed, such as corruption,
mis-partners, ineffective work methods, to improper handling of mining
techniques, which became the root of the problem. Jasa Sarana has several
options for handling this Business Unit with several alternatives. Including
running this business unit owned by providing additional capital and recruiting
competent experts, looking for the right partner with the qualifications of an
experienced partner, or even selling this business unit so that it does not
become a burden on the company.
Keywords: evaluation
and analysis, decision-making, business of rocks and sands mine
Introduction
As a province with economic growth ranked
third largest in Indonesia, infrastructure development in West Java is considered capable of supporting
the national economy, including multiplier effects and long-term positive
impacts (Singh,
Murty, Gupta, & Dikshit, 2007).
(Sources: https://id.wikipedia.org/wiki/Proyek_Strategis_Nasional)
Figure 1 Maps
of National Strategic Project in 2020 until 2021
In 2020
until 2021, more than 30 National Strategic Projects were placed in West Java. Based
on the Presidential Regulation of the Republic of Indonesia Number 109 of 2020
concerning the Third Amendment to Presidential Regulation Number 3 of 2016
concerning the Acceleration of the Implementation of National Strategic
Projects and the Regulation of the Minister of Finance (PMK) Number 30 / PMK.08
/ 2021 concerning Procedures for Providing Central Government Guarantees to
Accelerate the Implementation of National Strategic Projects, among others (Worrall, Neil, Brereton, & Mulligan,
2009):
Table
1 List of National Strategic Projects in 2020 until 2021
SECTOR |
LIST
OF NATIONAL STRATEGIC PROJECTS |
Roads and Bridges |
Cileunyi – Sumedang – Dawuan Toll Road |
|
Ciawi – Sukaburni. – Ciranjang Padalarang Toll Road |
|
Serpong –
Cinere Toll Road |
|
Cinere – Jagorawi Toll Road |
|
Cimanggis – Cibitung Toll Road |
|
Cibitung – Cilincing Toll Road |
|
Bekasi – Cawang – Kampung Melayu Toll
Road |
|
Jakarta – Cikampek II Sisi Selatan Toll Road |
|
Extension Ring-Road Depok Antasari |
|
Extension Ring-Road Bogor
of West Java Province |
|
Gedebage – Tasikmalaya – Cilacap Toll Road |
|
Patimban
Port Access |
Port |
Patimban
Port Construction |
|
Inland Waterways Cikarang – Bekasi – Laut (CBL) |
Railways |
Jakarta – Surabaya Railways |
|
Double Track of South Java |
|
High Speed Railways Jakarta
– Bandung |
|
Integrated Light Rail Transit
(LRT) in Jakarta, Bogor, Depok, and Bekasi |
Dam |
Kuningan Dam |
|
Leuwikeris Dam |
|
Cipanas Dam |
|
Sukamahi Dam |
|
Ciawi Dam |
|
Sadawarna Dam |
|
Rehabilitation of
Irrigation Network of Irrigation Area Range |
Sanitation and Clean Water |
Water Supply System (SPAM)
Regional Jatigede |
|
Water Supply System (SPAM) Jatiluhur Regional |
Coastal Embankment |
Coastal Embankment on The
West Java section |
Energy Sector |
Upgrading Existing
Refineries (RDMP) and Balongan Petrochemical
Industry |
Education |
Construction of the
Indonesian International Islamic University Campus |
Sinergy
between stakeholders with a Penta helix approach (collaboration between the
Government, Business Actors, Campuses, Communities and Media) is needed to strengthen
connectivity, regulation, priority setting, and debottlenecking infrastructure
both at the national and regional levels, especially West Java.
With the
many strategic infrastructure developments in West Java, it is certain that the
need for basic raw materials in the form of rock minerals is very large (Van Berkel, 2000). In addition, the need for the retail market in raw
materials almost never subsides, because West Java as one of the largest
regions in Indonesia has a dominant modern urban typology with the need for
adequate infrastructure development. The increasing percentage of domestic infrastructure
development that is currently underway is one of the main factors in the
growing need for primary raw materials for mining products, especially mining
products of rock excavated materials (Kamenopoulos, Agioutantis, &
Komnitsas, 2018).
The rock
mining industry, especially with types of excavated materials in the form of
sand and andesite, will have promising prospects in the future (Panjaitan & Sunitiyoso, 2021). This was marked by the beginning of the development
of several national-scale strategic infrastructure projects in several regions
by the Central Government and Regional Governments. Rock excavated materials,
especially sand and andesite, will be used as basic raw materials in various
developments such as road infrastructure, bridges, irrigation canals and various
kinds of building construction.
By considering these macro and micro conditions, the Company
seeks to capture these benefits by optimizing the assets owned, one of which is
the Paseh Strategic Business Unit (SBU). With the potential
for adequate rock resource reserves, at least it can support several national
strategic projects that are handled directly by the Company. Material needs in
the form of sand and splits can be directly supplied by SBU Paseh,
to reduce production costs and provide certainty for the availability of raw
materials.
Method
Kepner-Tregoe (KT)
Problem Analysis
In this final project, the Kepner-Tregoe (KT) Problem
Solving and Decision Making process will focus on Problem Analysis (PA).
Problem Analysis is a systematic problem-solving process (Yu,
2002). It
is a structured methodology for analyzing problems using root cause analysis
and systematic problem solving. By using this methodology, we can avoid solving
problems by making assumptions or jumping to final conclusions, and avoid
reactive actions in decision making. Kepner & Tregoe defined 5 (five) steps
of analyzing problems using Kepner-Tregoe (KT) Problem Solving (1981:38) :
Results and Discussion
The Strategic Business Unit (SBU)
Division functions to drive sustainable revenue growth for the Company through
prospective and value-added business development and building partner / 3rd
party cooperation. Mining is a business line that functions under the Strategic
Business Division (SBU Division) which was formed by the Company in early 2020.
The establishment of this unit is to benefit from construction services business
opportunities on projects handled by the Company's subsidiaries and affiliated
companies (Jasa Sarana Group), not to mention government and private projects.
Figure 1 Site of Paseh’s Mine Situation
In its journey, the SBU Division continues
to improve in completing the administrative requirements required in the
contract acquisition process through auctions and beauty contests and other
schemes, including building strategic partnerships with potential and competent
partners. The Company, through the SBU Division, has established several
partnerships with strategic partners in the fields of road construction,
building construction, renewable energy plant construction, precast concrete
production batching plant, asphalt production, etc.
Figure2 Paseh’s Strategic Business Unit of
Jasa Sarana
The Company and its partners have
participated in several tender processes, including the Joint Operation ("JO")
with PT Sarana Seja Ibadah to participate in the auction of the Sukabumi Ring
Road Project Regional Budget. However, there was a refocusing of the APBD
budget at that time to handle the Covid-19 pandemic, so the tender was finally
canceled.
The Company together with Dirgantara
Yudha Artha (PT DYA) formed a JO to participate in the tender for the construction
work package of the Cisumdawu Toll Road Project held by PT Citra Karya Jabar
Tol (Toll Road Business Entity), but unfortunately the KSO has not had the
opportunity to participate in the implementation of the project. However, the
Company actively supplies natural materials such as embankment materials
including gravel, stone, sand, etc., which are transported from the Company's
own quarry in Paseh-Sumedang.
The Company has assets in the form of
sand and stone mines covering an area of ± 21.5 Ha, where the calculation is
based on the provisions in the Mining Business License covering ± 19.45 Ha
located in Paseh Kaler Village, Paseh District, Sumedang Regency, West Java
Province (Dubiński,
2013). Based on the results of the study (initial FS) conducted
by the Company, the potential reserves of Sandstone (Sirtu) amounted to +
2,284,278 BCM (equivalent to 5,939,122.8 tons) and Andesite ± 274,442 BCM
(equivalent to 749,226.66 tons).
SWOT Analysis
The brain storming method is used to define and determine several
alternative solutions by involving the company's stake holders in a Focus Group
Discussion forum. Shareholders used several opportunities and strengths of SWOT
analysis in table 2.7 to develop alternatives. The shareholders decided to
choose 3 (three) alternatives as long-term solutions to overcome the
inoperability of SBU Paseh, including:
a.
Operate
the SBU Paseh mine by repositioning capital and
improving mine operational management.
b.
Operate
the SBU Paseh Mine by handing over the management of the
mine operations to a credible business partner selected through a stricly objective process.
c.
Selling the SBU Paseh mine to the aother parties.
Table 3 SWOT Analysis of SBU Paseh’s
|
Helpful
to achieve the objective |
Harmful
to achieving the objective |
Internal
Origin Attributes of The Organization |
Strengths: 1.
SBU Paseh's land
ownership has been 100% curated, meaning that 22 ha more land is available 2.
Reserves of raw materials
for rock commodities in SBU Paseh’s Quite large 3.
Strategic location,
because it is close to the location of the Cisumdawu TOLL GATE 4.
Infrastructure is
readily available 5.
The quality of
commodities produced is very good, and the market needs 6.
Owned by Enterprise
Government of West Java |
Weaknesses: 1.
More than 10 years the
SBU Paseh’s mine site has not operated properly 2.
Lack of innovation in developing
a business 3.
Do not have experienced
and qualified experts 4.
Lack of adequate
production machinery 5.
The type of commodity
to be sold must be processed first so that the production cost is quite high |
xternal Origin Attributes of
The Environments |
Opportunities: 1.
The need for andesite
and Sand raw materials for infrastructure development is very high. 2.
Around the mine site
only SBU Paseh’s mine location that is still unexplored, Most of it is idle 3.
Easy to get
opportunities and access to markets, especially government projects (regional
and central) 4.
Tax relaxation from
local governments eases operational burden |
Threats: 1.
Mining administrative
and licensing obligations are unavoidable every year, if ignored, it can
result in the revocation of mining operational permits 2.
Errors in mine
management and the environment, can result in violations of the law, thus having
a legal impact 3.
Poor management has an
impact on the social communities around the mine |
1.
Financial
Review of Jasa Sarana
Figure 3. Financial Indicator of Jasa Sarana
The management conducts financial
analysis based on the Consolidated Financial Statements of the Company and Subsidiaries
for the fiscal year ended December 31, 2021 which have been audited by the
Public Accounting Firm Jojo Sunarjo and Partners, in accordance with Indonesian
Financial Accounting Standards (SAK) with an Unqualified Opinion, as stated in
report No. 00043/3.0401/AU.1/03/1624-1/1/IV/2022 dated April 8, 2022. The
following are shareholder-directed financial performance indicators :
The
Company's Current Ratio in 2021 is still below the value of 1. This shows that
current assets have not been able to cover the Company's short-term
liabilities. In terms of Debt to Equity Ratio in 2021, it is still below the
value of 1. This shows the Company's ability to fulfill all its obligations, both
short and long term.
The Company's Net Profit Margin in
2021 reached 3.88%, this indicates that every Rp.1,- of sales will generate a
net profit of Rp.0.0388,-. Return On Asset (ROA) in 2021 increased by 29.08% from
the previous year. This increase shows that the Company is able to utilize
assets effectively to generate profits. And Return On Equity (ROE) in 2021
increased by 21.72% from the previous year. The increase was due to an increase
in the Company's net profit.
2.
Asset
Valuation of Paseh’s SBU
Jasa Sarana in order to evaluate the
potential of its business business has conducted an asset valuation by
involving a Professional Consultant for Public Appraisal Services (KJPP). Based
on the assessment of KJPP Nana & Mitra No. 056/NN/SPK/Vll/20 dated July 17,
2020, the assets owned by Jasa Sarana in SBU Paseh are as follows :
Table 5 Asset Valuation of Paseh’s
Mine Jasa Sarana in 2020
From this data, the Book Value of Facility
Services Assets at Paseh Mine is IDR 30,982,000,000 and the Market Value of Assets
is IDR 30,862,000,000. Valuation is assessed based on 3 approaches, namely
Market Approach, Income Approach and Cost Approach.
The Market Approach generates
an indication of value by comparing the asset being valued with identical or
comparable assets and for which transaction or bid price information is
available. In the Market Approach, the first step is to consider recent market
prices of identical or comparable asset transactions. If there have been few or
no recent transactions, consideration may be given to using the offered (for
sale) or listed prices of identical or comparable assets, the relevance of this
information needs to be clearly known and carefully analyzed. (ICC 15.1 and
15.2 VII Edition-2018).
Meanwhile, the Income
Approach generates an indication of value by converting future cash flows to
this value. This approach considers the income that an asset will generate over
its useful life and calculates the value through the capitalization process. (KPUP
16.1 and 16.2 VII Edition-2018).
The Cost Approach, produces an
indication of value using economic principles, whereby a buyer would not pay
more for an asset than the cost of acquiring the asset with the same or
equivalent use, at the time of purchase or construction. (ICC 17.0 Edition VII
- 2018).
Table 6 Commodity
Reserve Estimation of Paseh’s Mine
This valuation does not accommodate
the variable mineral content of the Paseh Mine. Based on the Exploration Report
document, a potential commodity of 1,208,563 BCM (1,450,276 LCM) was obtained.
So if the potential mineral content is calculated based on the current market
price with an average profit of Rp. 45,000/m3 (after deducting production costs
and taxes), the commodity has a value of Rp. 65,262,420,000.
This means that the total valuation
of the Paseh Mine when the Market Value Asset is added to the potential profit
generated from the commodity reserves is Rp. 96,124,420,000.
3.
Financial
Performance of Paseh’s Mine
Figure 5 Graphic of Sales Product Paseh’s Mine in 2021
Total production throughout 2021
reached 21,092.8 m3 for Rocky Sand (Sirtu), 11,873 m3 for Urug Land, and 120 m3
for Andesite. The lack of optimal production in 2021 was influenced by several
factors, including the non-performance of managing partners, coupled with
weather conditions and non-optimal production machine settings. In addition to
production and sales activities, if converted, the sale of Paseh Mine results
in an income of IDR 609,290,000.
Table 7 Recapitulation of Sales Product
of Paseh’s Mine in 2021-2022
The Company, as one of the
shareholders of PT Citra Karya Jabar Tol (BUJT Cisumdawu Tollroad), contributed
in fulfilling the need for approximately ± 9,000 m3 of backfill land from the
mine site for the construction activities of Section 4 of the Cisumdawu Toll
Road Section Cimalaka-Legok in 2021. In 2022, Paseh Mine succeeded in
increasing production and sales compared to 2021, total product sales reached
61,207.5 m3 for SIRTU, and 281,222 m3 for Upland.
a.
Kepner-Tregoe
(KT) Problem Analysis
This section is to analyze the ongoing situation and
what caused the Company's financial performance to be gradually characterized
by using a Fish Bone Diagram. This will allow decision makers to identify,
describe, analyze, and solve problems, including recognizing situations where
they go wrong. Once the Cause-and-effect diagram is constructed, the analysis
will continue to find out which potential causes are actually contributing to
the problem (Jacobs & Chase, 2018: 305).
From the market side, the economic trend in 2022 continues
to decline due to the increase in fuel prices. This increase was triggered by
rising world oil prices due to unstable global politics, forcing the government
to stop subsidizing fuel. In addition, with fuel prices getting higher, and of
course falling domestically, the gas pricing regulation issued last year made
fossil energy prices the worst. These challenging conditions not only impacted the
Company, but also oil and gas companies around the world. They are forced to
reposition their respective business strategy plans and if necessary to take
extraordinary measures to survive these conditions.
Pleased with the Stakeholders, the Company has been
struggling with strategic misalignment leading to uncertain internal direction
and creating management inefficiencies due to short-term management tenure
(i.e. Directors and/or Board of Commissioners can be changed from their
positions in less than one year so management does not have enough time to
prove or demonstrate the mission or plan they are building.
The decline in production was also caused by project
delays that occurred due to poor planning or mismanagement of the project, the
lengthy bureaucracy of the land acquisition process and coordination
inefficiencies in most of the new people working on the project.
The decline in revenue in line with the previous
Production issues (i.e. lower production) and exacerbated by the tight budget
policy that tightened Capex to find new sources contributed to the decline in
the Company's net profit. If this financial performance cannot be immediately strengthened,
the Company will face pressure on cash availability in particular and difficult
financial viability in general in the future.
b.
Fishbone Analysis
This
final project uses Fishbone Analysis (FBA) to verify the actual causes of the
possible causes from the KT problem analysis worksheet. The root cause analysis
results from the FBA will complement each other with the Kepner-Tregoe problem
analysis results. FBA details can be seen in Figure 6.
Figure 6 Fishbone Analysis of SBU Paseh’s
Using Fishbone problem analysis, we can identify the possible causes of
SBU Paseh's non-operation as follows:
1.
Cost:
Limited Working Capital Support from the Parent
Company (Jasa Sarana), makes SBU Paseh's unable to freely develop its business.
So that impovement is needed in running a business, one of which is by
cooperating with partners. Indirectly, involving other parties can reduce
company profits, besides being prone to business fraud.
2.
Partnership:
Mistakes in selecting business partners, starting with
the wrong mechanism established to select partners who are credible, experienced
and have sufficient working capital.
3.
Expert:
Inexperienced skilled labour capacity and mining
operations can cause disruption to business operations. So that work patterns
become ineffective and inefficient, and have an impact on high production costs..
4.
Equipment:
Determining the right type of production machine is
also important. The compatibility of work in the Mining Pit with production machinery
determines how effectively business operations are carried out. Not to mention
that investment in production machinery in the form of a Crushing Plan requires
high investment costs. So that errors in determining planning in production machinery,
have a systematic impact on production activities.
The
brainstorming method was used to find out several possible causes by involving
several subject matter experts (SMEs) because the technical experts consist of
several technical experts who have competence and authorisation in decision
making at SBU Paseh's to make Fishbone Analysis.
There were 6 (six) subject matter experts involved in making the FBA. Table 8
shows the list of subject matter experts to determine the root cause analysis
at SBU Paseh's.
Table 8 The list of subject matter expert to determine root cause analysis
NO |
TECHNICAL EXPERT |
COMPANY |
JOB DESCRIPTION |
1 |
President Director |
Board of Director |
Establishing the policy direction of and the company's target in developing
SBU Paseh's |
2 |
Head of Strategic
Business Unit Division |
SBU Paseh’s |
Development of partnerships and business mechanisms |
3 |
Head of Mining
Engineering |
SBU Paseh’s |
Handling various matters related to the production and sale of the commodities
produced. Responsible for the implementation of good mining practice |
4 |
Board of Directors
Experts |
Holding |
Assigned
to the preparation of Feasibility Studies, Mining Exploration Plans, and
dealing with Paseh mining permits and reports |
5 |
Financial Support |
Holding |
Placement of Capex and Opex that do not
proportional and effective |
6 |
Crusher Technician |
SBU Paseh’s |
Responsible for production machines, related to the
type of machine, machine placement and machine capacity that must be applied
in the production area |
Determine alternative solution of
business problem
After the root of the problem is obtained, the next step is to develop
recommendations and alternative solutions to solve the problem. In this study,
the Brainstorming and Focus Group Discussion method was used to find out some
recommendations and alternative solutions by involving Experts and Mining
Management of SBU Paseh/BOD Jasa Sarana who have competence and authorisation
in decision making in SBU Paseh's, with a list that can be seen in table 9
Table 9 The alternative solution for root cause of problem
Root cause of Problem |
Alternative Solutions |
SBU Paseh's operational failure was caused by mistakes in business
management, ranging from disproportionate and ineffective capital placement,
mistakes in determining partners, and not having skilled labour and production
machinery as needed. |
·
Operate
with improvement, by placing the amount of Opex and Capex proportionally and
in accordance with feasibility studies, hiring competent experts, and
increasing investment ·
Operate
with partnership to other parties, by conducting objective partner beauty
contests ·
Selling
Assets to other parties |
The
consequences of the 4 (four) alternative solutions above can be seen in table 9
where each alternative has consequences for the performance assessment of SBU
Paseh's and Jasa Sarana as the Parent Company. The consequences can be in the
form of costs, burdens and responsibilities to shareholders, namely the West
Java Provincial Government..
Table 10 Consequences of alternative solutions
Alternative Solutions |
Consequences |
Remarks |
Operate with improvement |
1.
Jasa Sarana is obliged to place additional capital
to support reinvestment needs and operational costs arising from an increase
of IDR 10-15 Billion 2.
Implement good mining practices and strict
supervision so that the GCG (Good Corporate Governance) process is carried
out 3.
Recruit additional experts who are experienced in
supporting mining operations 4.
Build a crushing plan (product processing machine)
with a capacity of >150 MT/hr |
Implemented by SBU Paseh internally with the support of Jasa Sarana |
Operate with partnership to other parties |
1.
Set up bidding facilities and rules that protect SBU
Paseh's partnership bidding process. 2.
Prepare clear and measurable requirements, such as
partnership capital readiness, mine management experience, heavy-duty
ownership, and readiness to invest in production machinery. 3.
Apply deposit financing by designated partners 4. SBU
Paseh must prepare good management control |
Implemented by Jasa
Sarana as Holding Company |
Selling Assets to other parties |
1.
Prepare and inventory asset data 2.
Valuing assets through the services of the Valuation
Service Office (KJPP) 3.
Prepare legal umbrella and rules that have the basis
for selling assets 4. Coordinate
with shareholders |
Jasa Sarana involves
the Bureau of Economy and Investment West java Government |
Analysis of
the pros and cons of alternative solutions carried out by Subject Matter Experts
(SMEs) as supporting data for selecting the best solution, can be seen in table
10.
Table 11 Pro-Cons
analysis of alternative solution
Alternative Solution |
Pro |
Cons |
Operate with improvement |
·
The company became more focused on improving SBU Paseh's
management. ·
Profits obtained are fully for the company ·
Increased shareholder confidence in the company ·
The consequences of risk remain with the owner of the business licence
and cannot be avoided. |
·
The company did not have enough capital to fund Paseh's
SBU ·
Increased risk on additional assets, such as maintenance and fixed
costs ·
The company does not have experienced experts ·
There is a time limit on SBU Paseh's Mining
Business Licence ·
The consequences of mine management are so complex that it will
increase the number of risks, such as social community, and environmental
management. |
Operate with partnership to other parties |
·
The company does not need to make additional working capital and
additional investments. ·
Good co-operation can accelerate the company's profitability ·
Business risks and liabilities of the mining licence can be shared
proportionally with the selected partners. |
·
The company needs time to go through the process of selecting
partners, and it is not easy to find partners who are competent, experienced,
and have sufficient capital. ·
Risk of mistakes in choosing partners, causing longer SBU Paseh's operations, and adding new problems ·
There is no guarantee that new partners can run the business well |
Selling Assets to other parties |
·
The company does not need to raise additional capital ·
The company will get additional fresh funds from the sale of assets,
at least the company will get 30 billion ·
Asset sale is a solution to overcome the threat of economic recession
in Indonesia ·
Mining regulations are getting more complicated, with increasingly
complex obligations aligned with reduced profit potential for mining
entrepreneurs |
·
The company will lose potential regular profits from SBU Paseh's ·
Not easy to get credible buyers ·
Not easy to get permission from the Share Owner (West Java Provincial
Government) ·
Lowering the Company's image in the eyes of the public ·
Revenue from asset sales is often in the spotlight of the State Audit
Board |
Criterion
of Decision Making
Decision-making involves many criteria and sub-criteria that are used to
rank alternatives to a decision (Saaty,
2008). For
SBU Paseh's, driving sustainable revenue growth for the Company through prospective
and value-added business development is the main objective.
In verifying the criteria and sub-criteria to be used in decision
making, the author conducted Semi-Structured Interviews with several
respondents (Wong
& Li, 2008). Not
all respondents were involved in the discussion, as it requires expert views
and specialised understanding in AHP to verify the criteria. These are the
criteria and sub-criteria that have been verified with several respondents.
1.
Profitability
2.
Operationability
3.
Continuity
4.
Market
The following is an explanation of the criteria selected in Table 20:
Table 12 Criteria description for
decision making of SBU Paseh’s
Criteria |
Description |
Profitability |
Profit is tangible (financial), and benefit is an added value that
benefits the company intangibly (risk reduction). |
Operability |
Mine Operations in implementing good mining
practice and good corporate governance, in ensuring business operations run well. |
Continuity |
Business continuity, in maintaining opportunities where SBU Paseh's can be a captive profit potential for the company |
Market |
Market Availability of Rock Commodities and their derivative products
in fulfilling the needs of infrastructure development in West Java |
Conclusion
After
conducting an exploration of the business problem and the proposed business
solution, the following research conclusions are provided to answer the research
questions: 1. What is the cause of the problem of non-operation of SBU Paseh? Using Kepner-Tregoe problem analysis and Fish
Bone Analysis. The brainstorming method is used to find out some possible
causes by involving several subject matter experts (SMEs) because technical
experts consist of several who have competence and authorisation in decision
making at SBU Paseh's to make Fishbone Analysis
Through the FBA method there are 4 root causes, including: 2. What is the
Alternative solution to operate SBU Paseh? SMEs
who were involved in analysing the root cause were also involved in the Focus
Group Discussion in determining the Alternative Solution. There were 3 (three)
Alternative Solutions.
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