DETERMINING THE OPTIMAL WORKING CAPITAL SOURCES AND STRUCTURE FOR STONES TRADING BUSINESS EXPANSION (CASE: PT ABC, Indonesia)

• Main Author: Kusumo Prasojo / 29116093, Anandika
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/25474
• Institution: Institut Teknologi Bandung

Indonesia should have 6% until 8% economic growth to if want to escape from middle economic trap <br /> <br /> and become high income country. Infrastructure is one of many factors to realize the target goal of <br /> <br /> economic growth in Indonesia, which is 6% until 8%. Several strategic infrastructure project in <br /> <br /> Indonesia from 2015 until 2019 are 24 new port, 60 ferry port, 15 new airport, 3,258 km railways, <br /> <br /> development of 35,000 MW electricity 2,650 new roads, and 1,000 km tol road. This is an opportunity <br /> <br /> for PT ABC. <br /> <br /> Based on Presidential Regulation No. 58 of 2017, the total National Strategic Project becomes 248 <br /> <br /> projects including one electrical program and one aircraft industry program. It will lead the massive <br /> <br /> investment in construction in Indonesia and it is good for stones industry because construction project <br /> <br /> needs big amount of various kinds of stones to construct. To take the opportunity PT ABC need more <br /> <br /> capital as their working capital but they have problem on it. The cash conversion cycle in this company <br /> <br /> also quite long so PT ABC should solve it to get better performance. <br /> <br /> Methods that applied in this final project are industrial analysis, capital budgeting, and comparing the <br /> <br /> alternatives to get the best financing strategy. There are two options of capital sources first is use <br /> <br /> venture capital and the other one is use debt. The best financial strategy is using source from Venture <br /> <br /> Capital as their first step of strategy and use Supply Chain Facility to reduce the cash conversion cycle. <br /> <br /> The use of Venture capital and Supply Chain Financing as their financial strategy can help PT ABC <br /> <br /> take the current opportunity with lower cost because Supply Chain Financing can reduce the cash <br /> <br /> conversion cycle so the needs of money will be lower. PT ABC do not need to wait for too long to get <br /> <br /> their money back.