FROM AGRIBUSINESS TO BIOENERGY: EVALUATING STRATEGIC READINESS AND DYNAMIC CAPABILITIES IN PT AGRI MULTI LESTARI

Authors

Nandasetya Kharisma Kurniawan Institut Teknologi Bandung
Eko Agus Prasetio Institut Teknologi Bandung

DOI:

Abstract

PT Agri Multi Lestari (AML) has been mandated to shift from an agribusiness company to a sustainable bioenergy company that supports the Net Zero Emissions target of the parent company and Indonesia in general. AML does this by developing products from biomass, one of which is woodchip production for Co-Firing activities at the PLTU. The study used a mixed-methods approach that combines qualitative interviews and descriptive statistics; this study evaluates AML's position in the Sustainable Business Transformation Typology, Dynamic Capabilities, and Transformation Readiness. The findings of this study indicate that AML is in the transitional stage of sustainability transformation, supported by strong leadership commitment and values oriented towards transformation goals. A survey of AML employees indicates that AML has solid dynamic capabilities, especially in sensing and utilizing opportunities, although several areas need development. Furthermore, AML shows moderate process and high organizational readiness, with gaps especially in supply chain standardization and training provision. The results of this research explore how a multi perspective framework needs to be carried out to prepare for a company's business transformation and show the alignment between Dynamic Capabilities and Transformation Readiness

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