FINANCE STRATEGY ON HOUSING DEVELOPER COMPANY IN REKONS GROUP

• Main Author: SYARIF (NIM : 29107062); Pembimbing: Dwi Larso, Ph.D., ACHMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/14616
• Institution: Institut Teknologi Bandung

REKONS is a business group that is working on design and supervising services in civil construction industry. The roadmap that has been made by REKONS involves all business that related to the construction industry. In the development plan, REKONS plan to enter the housing <br /> <br /> <br /> developer business. It has been identified that the demand of the housing is still very high in fact there is lack of supply. This condition makes REKONS enter the housing developer business. In the business development plan, it has been done the analysis of social condition, industry condition and internal condition. From this analysis, it is identified that there is an internal <br /> <br /> <br /> weakness in financial strategy that is not available yet in REKONS. This thesis explores and makes the finance strategy for the housing developer business in REKONS group. The business development plan is harmonized with the financial projection to reach the target of 40,000 unit houses. With this development plan, it has been made the finance strategy to get the result: NPV 260 Billion IDR, IRR 22.8%, BCR 2.33 and Payback Period 31.7 years.The financial projection is made using several financial strategies. First, develop housing project that open the new project every year. Second, keep the weight of average cost capital below 11.9%. Third, set up the percentage sales number of house as 25% in each first year of the project. Fouth, make the land payment policy for 50% in the first year of the project and the installment system is used for the full payment during the project. Fifth, set up the dividend payment to be <br /> <br /> <br /> 25% if the free cash flow is positive. Sixth, use banking debt for the 4th – 8th year and find strategic <br /> <br /> <br /> partner for the 12th – 14th year. Seventh, prepare the assets to be ready as collateral for those period as per financial projection. Eighth, prepare REKONS to be a public company in 2025 to be able to grab the market fund.