In Presidential Regulation No. 26 year 2012 that issued by the previous president of Republic Indonesia, Bapak Susilo Bambang Yudhoyono, explain about the ways to accelerate Indonesia economy. All commodities must have an integrated business process, including the fertilizer commodities. As a state-owned fertilizer enterprise, PT Pupuk Indonesia Holding Company is committed to have an integration among internal process, especially on a distributing the fertilizer to the society. Through one of its subsidiaries, PT Pupuk Indonesia Logistik mission is to distribute the fertilizer throughout Indonesian market. To expand the distribution reach, PT Pupuk Indonesia Logistik was asked by the board of commissioners to transforming the business model not only focused on sea freight transportation but also become a third-party logistics. Using an action research approach, the researcher analyzes the business potential if PT Pupuk Indonesia Logistik do a transformation on the business model. From this research, researcher found PT Pupuk Indonesia Logistik is able to increase the service revenue up to 474% after transforming as third-party logistics provider.

Keywords: Transformation, Third-Party Logistics, Business Model Canvas