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Abstract

In 2022, PT PLN (Persero) holding was established as part of a strategic initiative led by the Minister of State-Owned Enterprises (SOEs) to streamline core businesses within SOEs. This involved the creation of four subholdings: PLN Indonesia Power, PLN Nusantara Power, PLN Energi Primer Indonesia, and PLN Icon Plus. PLN Energi Primer Indonesia (EPI) specializes in providing primary energy and biomass and innovating during the energy transition. However, two subsidiaries, PT Artha Daya Coalindo and PT Pertadaya Gas, are not yet integrated into the PLN Group. To address this, PT PLN (Persero) has tasked PT PLN Energi Primer Indonesia with conducting an alignment study. In parallel, the present study aims to evaluate whether the proposed strategy contributes to Economic Value Added (EVA) within the PLN Group. It employs analytical techniques such as core competency analysis, financial analysis, and heartland matrices. The findings suggest that a strong core competency analysis and stable financial ratios position the company favorably within the heartland matrix, resulting in positive EVA values. Conversely, weak core competency analysis and unstable financial ratios lead to the opposite outcome. In conclusion, the alignment efforts led by PLN EPI should prioritize future business and income generation to strengthen core competency analysis and maintain strong financial ratios, thus ensuring the generation of robust EVA values.

Keywords

Alignment Portfolio Management Corporate Finance Corporate Action Business Development

Article Details

Author Biography

Iwan Agung Firstantara, PT PLN Energi Primer Indonesia (PT PLN EPI), Indonesia

Iwan Agung Firstantara was born in Jogjakarta in October 1969. His formal education from kindergarten to master's degree was completed in that city too. This 1993 graduate of the Mechanical Engineering department at Gadjah Mada University has completed a Masters in Management program at the same university.
Iwan Agung started his career at PLN in 1994. Currently Mr. Iwan is trusted as General Manager (GM) of PT PLN Java Bali (PJB) Pembangkitan Unit (Pembangkitan Jawa Bali (PJB)) which started in January 2013. Previously served as GM at PLN's subsidiary, PT PJB for five consecutive years -participating in the Brantas Generation Unit, Cirata Generation Unit and Eastern Region Maintenance Unit and finally in the Gresik Generation Unit.
From his career at PLN, he has expressed the knowledge and experience he has gained in four published books, namely Posi+ive Power, Passion, Execution Management and MakeNuous (read: MakNyus).
This father of five children enjoys studying Asset Management, Supply Chain Management and Human Resource Management. Learning and sharing is one of his hobbies which makes him happy to be a Trainer or Speaker in these activities. Some of these events include Asset Management Dissemination, International Plant Management Training, Power Plant Academy, various seminars and others.
As an appreciation for his service, Iwan Agung received the Dharma Karya Madya award from the Minister of Energy and Mineral Resources in 2012.

How to Cite
Charisma, B., Firstantara, I. A., Hidayat, D., Rendroyoko, I., & Wibowo, A. (2024). Economic Value Added Analysis of Portfolio Alignment in the Primary Energy Business of PLN Group and its Impact on PLN Energi Primer Indonesia. European Journal of Economics, 4(1), 48–66. https://doi.org/10.33422/eje.v4i1.655