FINANCING STRATEGY FOR PT INDONESIA ASAHAN ALUMUNIUM, PT ANEKA TAMBANG TBK, AND ALUMUNIUM CORPORATION OF CHINA LIMITED IN CONSTRUCTING ALUMINA SMELTER (CASE STUDY: SMELTER GRADE ALUMINA REFINERY MEMPAWAH PROJECT)

• Main Author: Arthur Nabiel -29116381, Torang
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/31355
• Institution: Institut Teknologi Bandung

Aluminum business is still a very prospective in the future. This is due to theever-increasing demand of global industry for thecommodity. The favorable Aluminum business potential is also supported by its raw material, Bauxite. Indonesia is the sixth biggest bauxite producer in the world amounting to 589,5 million tons with the reserve of 111,4 million tons. Moreover, the Government through the Act No.4 of 2009 and Government Regulation No. 23 of 2010 on the Execution of Mineral and Coal Mining has obligated all mining Companies in Indonesia to refine their products domestically as late as 2014. Through the Regulation, the Government encourages all Bauxite mining Companies in Indonesia to build their own smelter for the purpose of refining bauxite to get create added value before selling in the domestic and overseas market.Aluminum production requires a huge investment, including technological aspect and electrical support for production. More than that there is a limitation on raw materials that needs to overcome, both from import and domestic sides. by PT. Aneka Tambang Tbk. as a domestic bauxite producer to plan construction a smelter grade alumina (SGA) plant. This plant has a capacity of 1,000,000 tons of alumina annually by processing 2,499,999 tons of bauxite ore. The plan with a project value of US$750 million will produce alumina as aluminum raw material for PT. INALUM. There are several objectives that will be accomplished in this project which are to create favorable business scheme between PT INALUM, ANTAM, and CHALCO in order to develop Smelter Grade Alumina Refinery (SGAR) Mempawah to fulfill INALUM needs of Alumina and to calculate and analyze the profitability for PT INALUM, ANTAM, and CHALCO through this project. The alternative business scheme used in this research are Build-Operate-Own-Transfer (BOOT) scheme and leasing scheme. Through those schemes the feasibility and the profitability of the project is compared to each other and choose the best alternative. Sensitivity analysis also used in this paper as bauxite and aluminum price as commodity sure change through times so the pessimistic condition will be bauxite price as raw material increase 5% and the selling price of aluminum is decreasing 5% and the optimistic condition show the steady price of bauxite and 5% increasing of aluminum selling price. The comparison and sensitivity analysis show that lease scheme give less risk especially in pessimistic condition but BOOT scheme gives higher NPV, ROE, IRR and faster payback period and much more profitable in most likely and optimistic condition.