SELECTING STRATEGIC INVESTMENT FINANCING FOR EXPANSION SHIPYARD PROJECT IN BATAM (CASE STUDY: PT. XYZ SHIPYARD (PERSERO))

• Main Author: Andhika Putra 29116155, Adiel
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24991
• Institution: Institut Teknologi Bandung

The role of the shipbuilding industry is increase since the issuance of The Presidential <br /> <br /> Instruction no. 5 of 2005 on the empowerment of the national shipping industry. Government <br /> <br /> policy to enforce Cabotage principle aims to empower the role of the national shipping <br /> <br /> industry, so be able to operate in their own country. The Government concern about shipping <br /> <br /> industry automatically leads to an increase demand for the national fleet. <br /> <br /> PT. XYZ Shipyard (Persero) is a state-owned company that established in 1990, which <br /> <br /> was the result of merger from four integrated shipbuilding companies. In the last five years, <br /> <br /> financial condition of PT. XYZ Shipyard (Persero) was not good, proven with loss in their <br /> <br /> income statement 2013-2017. As a state-owned company that loss in previous years, PT. XYZ <br /> <br /> (Persero) received Rp 95.500 Million from Government Capital Investment Fund (Penyertaan <br /> <br /> Modal Negara) sourced from APBN of Fiscal Year 2015 to increase their business capacity. <br /> <br /> The company conducted a study in 2016 with result to build Slipway with capacity up <br /> <br /> to 17.500 DWT and whole project investment required Rp 362.372 million cost. Currently, PT. <br /> <br /> XYZ already have 106.248 meters’ land that valued Rp 1.100.000 per meters, which the total <br /> <br /> value is Rp 116.872 Million; and also Rp 95.500 million Government Capital Investment Fund <br /> <br /> (PMN). So, another Rp 150.000 million investment is still needed to fulfill the project cost. <br /> <br /> This research will focus on the financial feasibility of the project, and also purposed <br /> <br /> external funding strategy. There are four alternatives purposed; Joint Operations, Venture <br /> <br /> Capital, Bank Loan, and Two Steps Financing. The Joint Operations is considered as the best <br /> <br /> funding alternative since it had the lowest cost and the best in financial feasibility.