State-owned Companies and Innovative Ecosystem: A Case of 3-kg LPG

Abstract

One of the factors that determines the success of marketing a product is a distribution strategy. Several factors affect distribution such as the number of products, the nature of the products, the size of the area, transportation facilities, communication facilities, company factors, cost factors, and market conditions. The authors realized the absence of research on distribution management on a product such as the 3-kg liquefied petroleum gas (LPG) aimed at reaching the poor in Indonesia. The use of LPG as fuel is considered relatively cleaner because pollution is less when compared to kerosene fuel. This research was conducted in Salatiga, a small town in the province of Central Java, Indonesia. This research applied descriptive statistics in the form of the distribution frequency and crosstabs, as well as multiple regression. This research revealed that the 3-kg LPG distribution is very intensive, spread in almost all places including shops or stalls in both urban and rural areas. The choice of using 3-kg LPG tubes is not only because the price is low and is subsidized by the government but also because of the custom that has been instilled by the government when encouraging people to convert kerosene to LPG.