INVESTMENT ANALYSIS OF A NEW SEMI MOBILE CRUSHER PROJECT AT PT. SEMEN JAWA A SUBSIDIARY COMPANY OF SIAM CEMENT GROUP
The growth in the property and infrastructure in Indonesia has contributed to the surge of cement demand. This illustrates the cement industry still has the potential to generate high profits. But, at the same time, driven by the rapid increase in the production facility, Indonesia's cement mar...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/34044 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The growth in the property and infrastructure in Indonesia has contributed to the surge of cement demand. This illustrates the cement industry still has the potential to generate high profits. But, at the same time, driven by the rapid increase in the production facility, Indonesia's cement market is getting more competitive. The average profitability margin has been in a downward trend, as the new players are offering much lower selling price in a market that is already oversupplied to penetrate the market. This condition creates the price war among the players. To survive in difficult situations, every cement producer intended to lowering production cost and increase productivity by considering some strategies.
This paper contains the appropriate strategies generation by analyzing the external analysis namely PEST, Porter's Five Forces, Competitor Analysis, and internal analysis by use VRIO and Value Chain Analysis as the tools in PT. Semen Jawa as new cement player in Indonesia. The research focuses on advances in Capital Budgeting Techniques theory and practice and its impact on the investment decisions at the same time concentrate on evaluation practices of crushing plant project investment at PT. Semen Jawa. Before the choice for this investment is made, the feasibility study of the project carried out carefully to obtain optimum analysis results that can provide many benefits for the company.
The result of this research shows that the investment for the crushing plant project in PT. Semen Jawa is feasible and profitable to implement. With the capital structure contains debt and equity, the result from the analysis are positive project NPV and equity NPV, the project IRR higher than the weighted average cost of capital (WACC) and the equity IRR higher than the cost of equity (Ke), the period of return on investment less than the project period.
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