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All Journal The Indonesian Journal of Business Administration
Arif Budiman Syamra
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Decision Sciences, Operations Research & Management

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Business Strategy for Company XYZ Dealing with Domestic Content Requirement in Indonesia Oil and Gas Industry Syamra, Arif Budiman; Wicaksono, Agung
The Indonesian Journal of Business Administration Vol 2, No 9 (2013)
Publisher : The Indonesian Journal of Business Administration

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Abstract

The 2nd revision of PTK (Peraturan Tata Kerja) No. 007 by BP Migas (Indonesia Oil and Gas Regulatory Body, now called SKP Migas) contains a very strong Nationalization spirit to encourage domestic products and services leveraged. This revision, as stipulated in tender bid documents, requires a comprehensive local content achievement by Contractors, where bidders must meet at least minimum 35% of total products and services offered in their bid proposal are coming from domestic products and services. To some extent of tender scopes, only 2 or 3 international companies only that technically qualified for the works, however these international companies couldn’t achieved this 35% domestic content requirement, while in the other hand, all existing national companies and have better percentage of domestic content utilization, are technically incompetence to perform the requested works. 
Co-Authors Agung Wicaksono