SOCIAL RETURN ON INVESTMENT (SROI) OF COAL BRIQUETTE PROCESSING PLANT FOR POULTRY FARMS CSR DEVELOPMENT OF PT BERAU COAL
The Government of the Republic of Indonesia through the Ministry of ESDM encourages all coal mining companies to carry out community empowerment and development programs in accordance with Ministerial Regulation No. 1824 K/MEM/2018 concerning Guidelines for Implementation of Community Development an...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/70567 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The Government of the Republic of Indonesia through the Ministry of ESDM encourages all coal mining companies to carry out community empowerment and development programs in accordance with Ministerial Regulation No. 1824 K/MEM/2018 concerning Guidelines for Implementation of Community Development and Empowerment in the Mineral and Coal Mining Business. Currently PT Berau Coal's CSR focus is on the pillars of education and economic development.
PT Berau Coal in its community empowerment activities plans to reactivate the coal briquette machine to utilize waste coal shipping samples used for alternative fuels for small industrial heating furnaces for broiler chicken farms. To see the feasibility of the investment, the researcher made calculations using capital budgeting analysis which considers social aspects with social return on investment (SROI).
Based on the results of the investment feasibility analysis, the coal briquette plant reactivation project is financially feasible. The results of the investment feasibility analysis show a positive NPV of IDR 80,358,718, with an IRR of 40% and a profitability index (PI) of 1.85 in the next 5 years. The initial investment on the part of the poultry farm owner to purchase a coal briquette heating device to enable the switch from conventional firewood to coal briquettes is also projected to generate a positive NPV of IDR 34,891,336, with an IRR of 228%, and a profitability index (PI) of 10.19 in the next 5 years. Meanwhile, social analysis using the SROI method for this project is 27.03, which means that every Rp. 1 invested in this project is projected to generate a social return of Rp. 27.03.
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