FEASIBILITY STUDY OF INVESTMENT PROJECT Q-RELAY PRODUCTION FOR RAILWAY SIGNALING (A CASE STUDY IN PT XYZ)
Modernization of railway technology in Indonesia, is a major requirement for improving rail transportation services, both in terms of facilities and infrastructure, because the use of obsolete technology creates high costs and high-risk factors. One of them is the refinement of the railway signaling...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/69935 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Modernization of railway technology in Indonesia, is a major requirement for improving rail transportation services, both in terms of facilities and infrastructure, because the use of obsolete technology creates high costs and high-risk factors. One of them is the refinement of the railway signaling system. The types of signals on railways are classified into electrical signals and mechanical signals. Based on the annual report of the Directorate General of Railways for 2021, the number of electric train signaling units in Indonesia is 356 units and mechanical train signaling units in Indonesia is 254 units. Meanwhile, the global market value in the railroad industry has $4.98 billion in 2020 and is projected to be $12.43 billion in 2030, with a CAGR of 9.5% from 2021 to 2030.
PT XYZ is a national company founded in 2012 which has been active in railway electrical & mechanical signaling and already has several products that already have TKDN certificates of 40.69%. To strengthen the structure of the domestic industry and reduce dependence on imported products, the average TKDN value is targeted to reach 50% in 2024 as stated in the 2020-2024 National Medium Term Development Plan document. Therefore PT XYZ can carry out an investment project to create a factory for making train signaling components to pulfill the opportunity and achieve the average TKDN value from the government by conducting a feasibility study analysis. The analysis was obtained by conducting an internal analysis using VRIO analysis, an external analysis using PESTEL and Porter’s Five Forces, and a risk analysis based on ISO 31000. In addition, the analysis from the financial aspect is carried out by projecting cash flow, Payback Period (PP), Net Present Value (NPV), Internal Rate of Return (IRR), and Profitability Index (PI).
From the feasibility analysis, it can be concluded that the Q-Relay production investment project at PT XYZ is feasible to run, it can be seen from the NPV with positive results, IRR that exceed WACC, and profitability index with more than one. The return on invested capital in this project is 3 years and 3 months within a period of 10 years, and this project has a profitability index of 6.12.
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