DEVELOP RISK BASED BUDGETING STRATEGY FOR CIRATA HYDRO POWER PLANT

• Main Author: Vidi Nugraha, Dionisius
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53403
• Institution: Institut Teknologi Bandung

The Operational Performance of Cirata Hydroelectric Power Plant during the last 5 years has fluctuated and tends to decline. PLTA Cirata has not been able to maintain operational performance. The purpose of this research is to develop a risk management strategy in the work plan and budget unit (RKAU). The risk-based budgeting strategy developed adopts the ISO 31000: 2018 framework In this study three scenarios were developed, namely the pessimistic scenario, most likely and the optimistic scenario. The pessimistic scenario is the scenario with the worst possible outcome if all the inherent risks in the RKAU occur. The most likely scenario is a scenario developed by including a mitigation program and costs to prevent inherent risk. In the most likely scenario, it is hoped that the residual risk can still be accepted by the company. The optimistic scenario is a condition where the best results are obtained by PLTA Cirata at RKAU. In the 2021 RKAU, PLTA Cirata is targeting an EBIT of 1,225 billion Rupiah. Based on the study conducted, in the pessimistic scenario, EBIT was obtained of 1,090.60 billion Rupiah, while for the most likely scenario the EBIT was 1,196.14 billion Rupiah and in the optimistic scenario the EBIT was obtained of 1,247.30 billion Rupiah.