Sustainability Strategy of PT XYZ in Entering the Blue Ammonia Industry in Indonesia
Main Article Content
Muhammad Indra Zulmi*
Nimmi Zulbainarni
Bagus Sartono
Blue ammonia is emerging as a critical transitional solution in the global energy transition, with market volumes projected to grow from 1.1 million tons in 2023 to 9.2 million tons by 2028, and Indonesia has positioned it as a key pillar of its net-zero strategy by 2060. This article analyses the sustainability strategy of PT XYZ, an Indonesian integrated energy and chemical company, in entering the blue ammonia industry. Produced from natural gas with carbon capture and storage (CCS), blue ammonia offers a decarbonisation pathway for hard-to-abate sectors. PT XYZ is converting an existing ammonia plant but faces challenges including CCS costs, gas-price volatility, financing needs, and stringent international standards. The study aims to (1) map external opportunities and threats, (2) assess PT XYZ's internal resources and capabilities, and (3) formulate sustainability-oriented strategic alternatives. A mixed-method approach combines PESTLE and Porter's Five Forces analyses with Resource-Based View and VRIO assessment, followed by SWOT and TOWS synthesis using document review, interviews, focus groups, and expert questionnaires. Findings shed light that PT XYZ operates in a supportive yet demanding environment, possessing strengths in HSE culture, gas procurement, CCS design, MRV readiness, and contract management, alongside gaps in equity gas, CCS agreements, blended finance, and anchor contracts. The resulting SO, WO, ST, and WT strategies provide a roadmap for de-risking investment, securing premium markets, and aligning with long-term decarbonisation goals.
Al-Yafei, H., Aseel, S., Alnouss, A., Al-Kuwari, A., Abdussamie, N., Al Tamimi, T., Al Mannaei, H., Ibrahim, H., Abu Hashim, N., Al Delayel, B., & Nasr, H. (2025). Blue Ammonia and the Supply Chain Pioneering Sustainability Assessment for a Greener Future. Energies, 18(5), e1137. https://doi.org/10.3390/en18051137
Aryanti, N., Dewi, R. R., & Siddi, P. (2020). Faktor-Faktor yang Mempengaruhi Struktur Modal pada Perusahaan Pertambangan di Bursa Efek Indonesia Periode 2015-2018. Ekonomis: Journal of Economics and Business, 4(1), 224–229. https://doi.org/10.33087/ekonomis.v4i1.90
Asgharian, H., Lund, H., Thellufsen, J. Z., Iov, F., Nielsen, M. P., & Liso, V. (2025). Green ammonia production in Denmark: Assessing future potentials and challenges. Fuel, 387, e134423. https://doi.org/10.1016/j.fuel.2025.134423
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
BCC Publishing. (2024). Global Blue Ammonia Market. BCC Publishing.
Boero, A. J., Kardux, K., Kovaleva, M., Salas, D. A., Mooijer, J., Mashruk, S., Townsend, M., Rouwenhorst, K., Valera-Medina, A., & Ramirez, A. D. (2021). Environmental Life Cycle Assessment of Ammonia-Based Electricity. Energies, 14(20), e6721. https://doi.org/10.3390/en14206721
Bougie, R., & Sekaran, U. (2019). Research methods for business: A skill building approach. John Wiley & Sons.
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101.
Burritt, R. L., Christ, K. L., Rammal, H. G., & Schaltegger, S. (2020). Multinational Enterprise Strategies for Addressing Sustainability: the Need for Consolidation. Journal of Business Ethics, 164(2), 389–410. https://doi.org/10.1007/s10551-018-4066-0
Creswell, J. W. (2015). Educational research: Planning, conducting, and evaluating quantitative and qualitative research. Pearson Education.
Daft, R. L., & Armstrong, A. (2021). Organization Theory and Design. Cengage.
David, F. R., & David, F. R. (2016). Strategic Management: A Competitive Advantage Approach, Concepts and Cases, Global Edition. Pearson Education.
Denzin, N. K. (2017). The Research Act. Routledge. https://doi.org/10.4324/9781315134543
Endri, E., Rinaldi, M., Arifian, D., Saing, B., & Aminudin, A. (2021). Oil Price and Stock Return: Evidence of Mining Companies in Indonesia. International Journal of Energy Economics and Policy, 11(2), 110–114. https://doi.org/10.32479/ijeep.10608
Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1–4.
Febriani, F. D., & Iswoyo, A. (2021). Analisis Penggunaan Metode Altman Z-Score untuk Memprediksi Kondisi Financial Distress pada Perusahaan Manufaktur Sektor Minyak Bumi dan Gas (Migas) yang Terdaftar di Bursa Efek Indonesia (BEI). Income, 2(1), 28–35. https://doi.org/10.38156/akuntansi.v2i1.89
Gürel, E. (2017). SWOT Analysis: A Theoretical Review. Journal of International Social Research, 10(51), 994–1006. https://doi.org/10.17719/jisr.2017.1832
Hesterly, W., & Barney, J. B. (2014). Strategic management and competitive advantage. Pearson Education.
Kaipainen, J., & Aarikka‐Stenroos, L. (2022). How to renew business strategy to achieve sustainability and circularity? A process model of strategic development in incumbent technology companies. Business Strategy and the Environment, 31(5), 1947–1963. https://doi.org/10.1002/bse.2992
Ministry of Environment and Forestry (MoEF) of Indonesia. (2021). Indonesia Long-Term Strategy for Low Carbon and Climate Resilience 2050 (Indonesia LTS-LCCR 2050). Ministry of Environment and Forestry (MoEF) of Indonesia. https://repository.kemkes.go.id/book/1073
Ocfrin, F., Syaipudin, U., Azhar, R., & Oktavia, R. (2022). Pengaruh Kinerja Keuangan terhadap Return Saham Perusahaan Pertambangan Go Public di Bursa Efek Indonesia. Niqosiya: Journal of Economics and Business Research, 2(2), 191–200. https://doi.org/10.21154/niqosiya.v2i2.547
Palandri, J., Rahmanifard, H., Layzell, D., & Hastings-Simon, S. (2025). Blue vs. Green: A comparative analysis of ammonia production and export in Western Canada and Australia. Renewable Energy, 239, e121953. https://doi.org/10.1016/j.renene.2024.121953
Porter, M. E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review, 86(1), 78–93.
Pozo, C. A. del, & Cloete, S. (2022). Techno-economic assessment of blue and green ammonia as energy carriers in a low-carbon future. Energy Conversion and Management, 255, e115312. https://doi.org/10.1016/j.enconman.2022.115312
Putra, R. A., & Purnamawati, P. (2023). Financial Distress Analysis using Altman Z-Score and Zmijewski Methods in Oil and gas sector listed on the IDX in the 2018-2021 period. Jurnal Kajian Ilmu Manajemen (JKIM), 3(4), 643–653. https://doi.org/10.21107/jkim.v3i4.21197
Shin, B.-J., Mun, J.-H., Devkota, S., Kim, S.-M., Kang, T.-H., Mazari, S. A., Cho, K., Kim, S. H., Chun, D.-H., Kim, K.-M., Yoon, H. C., & Moon, J.-H. (2023). Comparative assessment and multi-objective optimization for the gray and blue ammonia synthesis processes: Energy, Economic and Environmental (3E) analysis. International Journal of Hydrogen Energy, 48(90), 35123–35138. https://doi.org/10.1016/j.ijhydene.2023.05.205
Sin, B. K., & Fong, F. (2022). Transformasi Keuangan PT Surya Esa Perkasa melalui Analisis Trend. Hectocorn, 3(2), 114–133.
Tanzeem, M., & Al-Thubaiti, M. M. (2023). Blue ammonia an attractive pathway to decarbonize conventional ammonia plants. World Journal of Advanced Engineering Technology and Sciences, 9(1), 119–126. https://doi.org/10.30574/wjaets.2023.9.1.0121
The Business Research Company. (2024). Blue Ammonia Global Market Report 2024. The Business Research Company. https://www.thebusinessresearchcompany.com/report/blue-ammonia-global-market-report
The Business Research Company. (2025). Blue Ammonia Global Market Report 2025. The Business Research Company. https://www.researchandmarkets.com/reports/5954486/blue-ammonia-global-market-report
Tjahjono, M., Stevani, I., Siswanto, G. A., Adhitya, A., & Halim, I. (2023). Assessing the feasibility of gray, blue, and green ammonia productions in Indonesia: A techno-economic and environmental perspective. International Journal of Renewable Energy Development, 12(6), 1030–1040. https://doi.org/10.14710/ijred.2023.58035
Weihrich, H. (1982). The TOWS matrix—A tool for situational analysis. Long Range Planning, 15(2), 54–66. https://doi.org/10.1016/0024-6301(82)90120-0
Whittington, R., Regnér, P., Johnson, G., Angwin, D., & Scholes, K. (2019). Exploring Strategy, Text and Cases (12th ed.). Pearson.
