Project Selection of Indonesian Local Oil and Gas Service Company Using Analytical Hierarchy Process (AHP)

Abstract

PT Duta Wisesa Servisindo or PT. DWS is a local Indonesian company that offers services in the oil and gas sector. This company was founded in 2015 when world oil prices were falling and used this momentum to invest in assets, especially in cementing units used for drilling and workover work. At the beginning of the establishment of PT. DWS believes that they can become the main local Indonesian oil and gas services company in Indonesia, because many local competitors stopped their businesses during the 2015 crisis. In 2023, world oil prices have improved, at the end of 2023 PT. DWS received 4 job offers from SOE and private sector to work on in early 2024, namely the Jambi Project, Lampung Project, Jambi Project and Cepu Project, but due to unit limitations, this company could only choose 3 job offers to work on. Because PT. DWS does not yet have a decision-making process. In this research, the Analytical Hierarchy Process or AHP is used to provide recommendations for 3 projects that are recommended to be taken by the company. In this AHP assessment, the criteria used as assessment parameters are marketing and sales, customers, financial feasibility, administration and project specifications, each of these criteria has several sub-criteria with a total of 13 sub-criteria. Based on the assessment, the criterion with the highest weight is financial feasibility (51.4%) and the sub-criterion with the highest weight is ability to pay (22.9%). After the assessment was carried out, based on the ranking, the 3 projects that were recommended to be taken were the Jambi project (33.4%), Cepu Project (30.7%) and Lampung Project (19%). Based on the assessment results, it can be seen that service users from the BUMN sector dominate compared to the private sector because they have the ability to pay and have high profitability compared to private companies, even though private companies are superior in terms of payment, administration and equipment requirements.