Track: Case Studies

Abstract

In formulating policy recommendations to increase the use of the local content, called Tingkat Komponen Dalam Negeri (TKDN), the Government makes special regulations in the scope of the procurement of goods and services related to the local content elements specified in Articles 85, 86, 87, and 88 of Law no. 3 of 2014 on Industry. The main objectives of this research paper are to study Cost Leadership strategies, Differentiation strategies, and Focus strategies. Porter’s generic strategy was chosen as a theoretical method to analyze the benefits of adopting these strategies at PT Stainless Steel Primavalve. We collected data on the certificate items (product, type, specifications, and local content), which are from the PT Stainless Steel Primavalve Certificate on the website of the P3DN Ministry of Industry. Through the analysis, it can be seen that with the coverage of Local Content values we can identify the strategy used of PT Stainless steel Primavalve. From the identification results, we can conclude that the Company implements the Porter Strategy in the Business Strategy which involves the mechanism for procuring goods and services in utilizing Local Content as price preferences during the tender process in increasing competitiveness as a form of a strategy used.