CAPITAL BUDGETING MODEL OF THE DEVELOPMENT OF OIL PIPELINE PADALARANG TO SUKABUMI AND ITS INFRASTRUCTURE IN 2017 AND 2018

• Main Author: RAKHMAT HAKIM (NIM 29316014), LARINDA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28560
• Institution: Institut Teknologi Bandung

Pertamina as a State-Owned Enterprise engaged in oil and gas business seeks to improve the performance of each unit of activity. The number of oil fuel demand in Plumpang continues to increase from 2010 to 2017. However, the increase in demand is not accompanied by the addition or increase in tank capacity. The annual tank capacity remains the same, which is 530,000 KL. In addition, the jetty occupancy in Plumpang is no longer able to accommodate the supply of oil fuel. The high demand for oil fuel in Sukabumi area has resulted in the increasing supply of fuel in the area. Supply of oil fuel supplied from Plumpang causes high demurrage costs. The purpose of this research is to analyze the economy by using capital budgeting method for development oil pipeline Padalarang to Sukabumi and its infrastructure in 2017 and 2018. The methodology used in this research is capital budgeting, such as NPV, Discounted Payback Period, Payback Period, IRR, Profitability Index, and ROI. The result of this research concludes that the development of Oil depot in Sukabumi project consists of pipeline, construction, and road construction as the access of Oil depot in Sukabumi with project duration for 2 years, initial investment cost is USD 105,637,000, and the project's economic life for 21 years. Based on the calculation of capital budgeting the project generated a positive NPV of USD 34.190.328,75, 9-year payback period, 14-year discounted payback period, 13% IRR, PI of 1.3237, and ROI of 11.0216%. The Development Oil Pipeline Padalarang to Sukabumi and infrastructure in 2017 and 2018 are feasible.