Proposed Marketing Strategy of Green Jet Fuel or Sustainable Aviation Fuel (SAF) for Pertamina Post Development of Biorefinery Plant

Abstract

PT Pertamina is one of Indonesia's national energy companies that focuses on handling all the country's energy business. Indonesia through Pertamina has developed 3,000 Bbl/day of Biorefinery plant in Cilacap that will produce SAF or Green Jet Fuel as main products. The demand for SAF will keep increasing in the future. It is estimated that by 2030, SAF demand will reach up to 7 billion gallons or 5% of global jet fuel demand. The demand for SAF is driven by airline industry that wish to decarbonize themselves because aviation industry contributes 2.5% of global carbon-dioxide emission. Global organization like ICAO and IATA push aviation industry to meet net zero emission by 2050 and encouraging airlines to use SAF. The objective of this research is to develop marketing strategy for SAF product of Pertamina. The conceptual framework is important to design business strategy to have acceptable choices that are suitable for the organization. Both external and internal analysis will be conducted for this study. For the external analysis, this research will use PESTEL Analysis, Industry Analysis, Competition Analysis, and Consumer Analysis. While the internal study will make use of Segmenting, Targeting, Positioning (STP), Marketing Mix and Resource and Capability. In the first stage, internal and external factors will be assessed. In the matching stage, alternative strategies will be developed using the TOWS (Threats, Opportunities, Weaknesses, Strengths) Matrix. Finally, the final analysis will use the QSPM (Quantitative Strategic Planning Matrix) to assess the viability of each of these alternative strategies. Based on QSPM there are top five strategies feasible to be implemented which are increase production to fulfil the rising demand, strengthen ties with domestic and foreign airlines and initiate marketing campaign, build strong relationships with feedstock suppliers and make long term contract, expand global presence by collaborating with international companies and expand capability to sell products to export, and focus on developing domestic market and cementing SAF business in domestic.