CONTRACT NEGOTIATION PREPARATION AND INVESTMENT PROJECT ANALYSIS OF APARTMENT TAMANSARI BINTARO MANSION PARKING MANAGEMENT PROJECT BY PT BINAJASA ABADIKARYA

• Main Author: Ramadhan, Anandhyka
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/68353
• Institution: Institut Teknologi Bandung

Private vehicle is still the top mode choice of vehicle for many people in Indonesia, especially in big city such as Jakarta and the ownership of private vehicle still experiencing growth every year. Many workers in Jakarta are commute workers as their home are located on the surrounding cities of Jakarta causing them to own private vehicle for daily commute. This supposedly rises the demand of parking space including its management service. However, Covid-19 Pandemic that affects Jakarta since April 2020 forcing the government to impose the large-scale social restriction and consequently many parking management company are undergo massive decrease of profit. In 2022, the large-scale social restriction policy is loosened up and many activites are returning to normal, including the people’s mobility to travel and this signals the opportunity of the resurrection of the parking management industry. In 2022, PT KDJ Int International, investor of the newly build Apartment Tamansari Bintaro Mansion located in South Tangerang City, Banten Province, one of surrounding city of Jakarta are in the process of negotiation with PT Binajasa Abadikarya an outsourcing company that also managing private parking space are appointed by PT KDJ Int International as the operator of Apartment Bintaro Mansion parking space. The negotiation’s current progress is on the terms of length of the contract and the profit-sharing proportion between the two company. PT Binajasa Abadikarya is expecting the outcome of the negotiation that are giving the most optimum profit. Financial analysis using capital budgeting techniques from free cash flow approach of the alternatives of contract length with payback period, net present value and internal rate of return as the parameters. Sensitivity analysis are also conducted to identifying effects of changes in variables namely Indonesia inflation, discount rate, wage of direct labor, profit-sharing proportion and vehicle volumes and scenario analysis are used for monte carlo simulation which identifying risk of negative net present value. Negotiation checklist is used for preparing negotiation consist of knowing both party’s goals of the negotiation, aspiration and reservation points, identify Best Alternative to a Negotiated Agreement (BATNA), the situation and the relationship with other party. Financial analysis shows that at 3 years and aspiration point, the payback period is 1,97 years and discounted payback period of 2,39 years, net present value is 114.932.646.69 IDR and internal rate of return at 19,29% and at reservation point of 46% the payback period is 2,39 years with discounted payback period of 2,99 years, net present value of 2.240.299,95 IDR and internal rate of return of 11,98%. At 4 years and aspiration point, the payback period is 1,97 years and discounted payback period of 2,39 years, net present value is 281.621.282.62 IDR and internal rate of return at 24,25% and at reservation point of 22% the payback period is 3,03 years with discounted payback period of 3,99 years, net present value of 846.087,18 IDR and internal rate of return of 11,87%. At 5 years and aspiration point, the payback period is 1,97 years and discounted payback period of 2,39 years, net present value is 404.739.096,92 IDR and internal rate of return at 25,12% and at reservation point of 17% the payback period is 3,21 years with discounted payback period of 4,95 years, net present value of 1.498.711,61 IDR and internal rate of return of 11,89%. The 5-year option is preferrable with range of profit-sharing proportion that are profitable for PT Binajasa Abadikarya starts from 17%:83% to 70%:30%. PT Binajasa Abadikarya’s BATNA is looking for another parking management project and risk analysis shows that monthly subscription and wage of direct labor is the riskiest variable that can affecting the NPV of the project. The recommendation for PT Binajasa Abadikarya is at the negotiation phase, they have to identifying the issue that PT KDJ Int International have regarding the negotiation, estimation of PT KDJ Int International’s BATNA and their aspiration and reservation point.