International Journal of Scientific and Research Publications, Volume 6, Issue 9, September 2016 226 ISSN 2250-3153 www.ijsrp.org The Design of Collaborative Procurement Strategy in the Subsidiaries of a Gas Administrator Company Elfrina Anggraeni * , Hari Wijayanto ** , Agus Maulana *** * ) Post Graduate, School of Business, Bogor Agricultural University, Indonesia 16151 ** ) School of Business, Bogor Agricultural University, Indonesia16151 ***) School of Business, Bogor Agricultural University, Indonesia16151 Abstract- The purpose of this study was to determine how much efficiency and feasibility from the design of collaborative procurement strategy on three subsidiaries from PT Induk that runs in gas sectors. The methodology used in this study is Cost- Benefit Analysis approach, with criteria of calculation Present Value (PV), Future Value (FV), and Benefit-Cost Ratio (B/C Ratio). This study found that the procurement process at the three subsidiaries with the classification of materials/ parts is a redundant process and inefficient. A calculation in this study proves that the collaboration which has been done by three subsidiaries is more efficient if implemented with the collaboration procurement strategy on the classification of material/ parts by specifying the manufacturer and the right quantity so as to reduce the cost it does cost sharing. The result B/C ratio showed 8,19 indicating this collaboration strategy should be feasible. Index Terms- collaboration strategy, procurement, cost-benefit analysis, efficiency. I. INTRODUCTION eclining in the price of world’s oil and gas has brought impacts on the degradation in the price of oil and gas in Indonesia. The downward trend of the price of oil and gas as a commodity has been getting worse since 2014 until 2016. Forex released the closing price of oil that is as much as 57,35 USD/barrel in 2014 dan the closing price in January 2016 was around 31,1 USD/barrel. This downward trend in the sale value of oil and gas also brings impacts on the weakening of the sale and the income of oil and gas business in Indonesia. PT Induk is the only State-Owned Enterprise that runs oil and gas management in Indonesia. Based on Table 1 PT Induk records that there is a decline in the sale and the income of the linear business that is as much as 55 percent. Table 1 Sale and Income of Business Followed by PT Induk’s Net Profit in Years 2013 -2015 Year Sale and Income of the Pertamina Business Pertamina’s Net Profit The Gas Directory’s Net Profit 2013 71.102 3.062 299 2014 70.648 1.505 279 2015 31.966 914 148 Source: PT Induk’s Annual Report and Company Budget Work Plan of 2016. The numbers are express ed in millions in USD. One of the directories under PT Induk, which is the Gas Directory as the administrator of natural gas which has just entered its fourth year of operation in gas management, also experiences the impacts of the degradation of price due to the instability of the price of oil and gas in the world. It can be seen in Table 1 that there has been a decline in the Gas Directory’s net profit since 2014, while since 2014 until 2015 there had been a decline in the net profit that is as much as 60 million USD. This degradation in the net profit is caused by several factors, but the most dominant factor is the increase of the cost for operation & maintenance that is as much as 43 million USD or 553 percent compared to the cost in 2015 which includes the cost for the making of new projects, the maintenance of ongoing projects and the difference in the exchange rates of rupiah to USD that degrades. This causes PT Induk, with the help from all of its directories, to promote efficiency in every sector, in accordance with the establishment of five prioritized strategy pillars of the company that are assigned by the President Director of PT Induk in 2015, where the application of this strategy is the company’s plan program to reach its goals by maximizing its strengths in competitions and minimizing the company’s weaknesses (Wheelan and Hunger 1995). An idea to perform efficiency by applying collaborative concept on the purchase and the delivery of goods on ongoing projects that are managed by PT Induk’s subsidiaries emerges. PT Induk’s subsidiaries are business entities which take the form of limited company or other forms that are similar to it, where all or more than 50 percent of the share is owned by PT Induk and governmental institutions or anything like it (Guidance of Procurement of PT Induk 2015). Three subsidiaries that are going to be examined are PT Badak, PT Donggi, and PT Gas which are known to have similar business fields. Procurement of goods and services is highly important for oil and gas companies, because this is the ultimate point in the oil and gas activities D