Improvement of Risk Management Implementation to Achieve Long-Term Goals: A Case Study of an Electricity Infrastructure Project Development Company

PT Perusahaan Listrik Negara (Persero) or PLN is a state own company in Indonesia with core business is the supply of electricity, especially in power plant, transmission, and distribution. PT PLN (Persero) Unit Induk Pembangunan Jawa Bagian Tengah or PLN UIP JBT is one of PLN units which is responsible for the development of electricity infrastructure projects (power plant, transmission, and substation). PLN UIP JBT is responsible for the development of electricity infrastructure projects in West Java and Central Java. Several PLN UIP JBT project targets were completed beyond the target time and there are still many electricity infrastructure project targets that PLN UIP JBT must complete. The risk management aspect is an important aspect of governance and can be a catalyst for business processes in decision making. The success of the project and its planning increases significantly by implementing effective risk management. Therefore, improvement of risk management implementation of PLN UIP JBT is needed so that future project completion targets can be completed on time, with the right quality, and at the right cost. Improvement of risk management implementation of PLN UIP JBT is done by adding external environment analysis using general environment analysis and internal organization analysis using resources analysis and activity system map before the risk management process consisting of determining scope, context, criteria, risk identification, risk analysis, risk evaluation, and risk treatment. External environmental analysis is carried out to determine the external context while internal organizational analysis is carried out to determine the scope and internal context for the risk management process of PLN UIP JBT. This study concludes that PLN UIP JBT faces 16 risks consisting of 15 negative risks and one positive risk. The identified risks of PLN UIP JBT are risks related to budgeting, project design, procurement, licensing, land acquisition, legal, occupational health and safety, material, project completion time, contract, project handover, project payment, and other income. The risk treatments or mitigations for PLN UIP JBT are stakeholder coordination, regulatory compliance, cooperation, collaboration with related parties, and digitalization.