Analysis Factors and Decision Strategies Dealing with Ongoing Project Delay in RDMP Balikpapan Project

Abstract

The business activity in oil & gas sector may include accounting and financing, research and development, manufacturing, marketing, sales, safety, and supply chain processes including include in PT. Pertamina Kilang Balikpapan (PT. KPB) as well. In related manufacturing, currently PT. KPB was assigned the task of running and supervising the Balikpapan RDMP megaproject, a national strategic project for national energy independence and security through an increase in capacity of 100 MBSD, and an increase in diesel fuel of 30 MBSD. In addition, it will also produce new propylene products of 230 thousand tons per year, at the end all the production will decrease the import number quantity of fuel. Unfortunately, these figures are inverse to the overall progress of the current project, which is around 40%, of which 12% is the under-construction component, and large project delays are more than 50% higher than the baseline. The focus of this research is to understand the key factors that have a significant impact on project delays. To find the root cause of problems in project delays, the author tries to elaborate on technical data analysis from internal data, non-technical analysis, and qualitative data from expertise. Based on the available alternative business solution items for each root cause factor, the author establishes proposed initiatives and solutions to overcome and anticipate delays in the ongoing project RDMP Balikpapan.