Sustainability of Electric Power Companies on Renewable Energy Mix Adaptation in Indonesia: A Strategic Management Perspective of
PT PLN Nusantara Power

Rio Afrianda, Veithzal Rivai Zainal, Indra Siswanti, Lenny Christina Nawangsari

Abstract:

This study explores the sustainability trends within Indonesian power companies, particularly their shift towards a renewable energy mix. Employing a strategic management perspective, this research investigates the impact of strategic organizational change management, clean corporate governance, and transformational leadership on business performance mediated by the core values of the state-owned enterprise AKHLAK (Adaptive, Collaborative, Competent, Harmonious, Loyal, and Trustworthy). The study conducted at PT PLN Nusantara Power, utilizing a non-experimental quantitative approach. ┬áThe data were analyzed using Structural Equation Modeling (SEM) with LISREL 8.8. The study revealed that ‘organizational strategic change management’ and ‘clean corporate governance and transformational leadership’ had positive but non-statistically significant effects on business performance. However, the Core Values AKHLAK played a significant mediating role between these factors and business performance. This underscores the importance of these values in shaping sustainability outcomes. The study recommends integrating AKHLAK values to enhance the benefits of strategic management, contributing to discussions on sustainable practices during Indonesia’s renewable energy transition.

Keywords:

Sustainability, Strategic Management, Renewable Energy mix, Core Values AKHLAK