Scenario Planning in Selecting Contract Strategy Scheme to Achieve OTOBOSOROR (On Time, On Budget, On Specification, On Regulation, and On Return) Target in PT Kilang Pertamina International



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Submitted May 8, 2023
Published Jun 27, 2023
10.24018/ejbmr.2023.8.3.1987

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Indonesia as developing countries, continues to implement various strategic action to increase economic activities through infrastructure development named National Strategic Project (PSN) that are deemed to be strategically important and must be completed quickly. To fulfill the PSN, PT KPI has ultimate goal namely OTOBOSOROR (On Time, On Budget, On Schedule, On Regulation, On Return) where there are still many project delays, cost overrun or under specification. Therefore, one of the main goals of the project is a fast-tracking strategy in developing projects to achieve earlier project completion with lower Capex and meet owner specification. However, in fast-track projects, starting an activity without comprehensive data and knowledge entails additional risks and uncertainties than in typical project. Therefore, the author will assess appropriate scenario planning for future contract strategy scheme to achieve OTOBOSOROR target by exploring the internal organization as well as the external environment using McKinsey’s 7S and PESTEL. Then, scenario planning analysis will be conducted where’s ten driving forces are identified and analyzed. Four scenarios are created from crucial uncertainties by combining the important variables of project scheduling and project cost. Implications and options are arranged for the respective scenario. At the end this study proposes Design Build Competition (DBC) contract strategy concept to complete the fast-tracking strategy, reduce project costs and maintain owner specification. However before initiating an activity, PT KPI should manage all risks and uncertainties in fast-track initiatives to avoid potential events that are not beneficial for future PT KPI projects.
Keywords: Contract Strategy Scheme OTOBOSOROR PESTEL Analysis Scenario Planning

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