PROPOSED INVESTMENT OF A NEW DAIRY FARM PROJECT FOR PT. ULTRAJAYA

• Main Author: Andriany Setiawan, Fenny
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/34061
• Institution: Institut Teknologi Bandung

Consumption milk per capita of approximately 16 liters per year in Indonesia is quite low. It is significantly lower than other ASEAN markets indicating strong potential for continued growth. For example, Indonesia consumption per capita of liquid milk is only 45% of the levels in Malaysia. As well as income growth and urbanisation, health and wellness continues to be a driving force behind demand and consumers are becoming more accustomed to drinking milk. This is a big opportunity for similar companies to multiply production and sales. To increase milk consumption per capita in Indonesia with the target of achieving consumption milk in the ASEAN market, which is an opportunity to sell milk product in Ultrajaya company, the need for raw milk to produce milk product in our company is also increasing. The main ingredient of milk product is raw material for milk, which is fresh milk and powder milk. Actually more than 80% of the dairy consumed in Indonesia is from imported milk (powder). Not enough local milk available in Indonesia. The availability of fresh milk in Indonesia is insufficient to meet the liquid milk production needs of milk companies in Indonesia. Because the growth of dairy farm in Indonesia does not develop, while the need for fresh milk as liquid milk ingridient is increasing. This research studies the strategies that must be taken by the company by analyzing external analysis namely PEST Analysis, Porter Five Force Analysis and Competitor Analysis and Internal Analysis, namely Value Chain Analysis and VRIO Analysis. From external and internal analysis obtained Threat, Opportunity faced by the company is also Strength and Weaknesses that are owned by the company to be able to produce the right strategies that can be taken by the company. The strategy of building a new dairy farm to meet fresh milk needs at the new Ultrajaya plant is a strategy suggested by the author This research also aims to look at PT Ultrajaya's technical and financial feasibility in investing in new dairy farms in the West Java region. The results of this research indicate that the investment in the new dairy farm project in West Java is feasible to implement. Technical requirements can be met and the NPV Project is 204,443,450,820.68 and NPV Equity is 180,217,303,737.991, the IRR Project is 44.76%, greater than the WACC 13.07%, IRR Equity is 58.86%, greater than Cost of Equity (Ke) 15.78% and the Payback period on project is 2.73 years less, than project period 7 years.