FINANCIAL FEASIBILITY OF RAIN WATER HARVESTING ALTERNATIVES PRODUCTION PROCESS FOR PT. XYZ

• Main Author: Haris Khairullah, Muhammad
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/76011
• Institution: Institut Teknologi Bandung

Industry sectors are currently growing for 4,83% in quarter III 2022 in Indonesia (Kemenperin, 2022). To be sustain in market, PT. XYZ as business in industrial sector need to be innovated in the market (Anisha, 2016). PT. XYZ as industry that working in environmental area, want to be innovating by providing the rainwater harvesting product for housing sector with middle-social class. However, this product is new to the market, so feasibility of product needs to be assessed to know if the product fit to market or not (Sharifah, 2019). This research is aiming to know the feasibility of the product into joining the market and whether the investment (in buying moulding) for innovation is feasible or not. Currently, in Indonesia itself there are 6 most common house type based on the roof area. From the calculation of cost-benefit analysis, there are 3 types of houses that possible to be consumer of the product. After knowing the target market are available, calculation of incremental capital budgeting by comparing the cash flow of project if company buying components from outsourcing or purchasing moulding tools, to produce some components by their own, are made. Based on the calculation of IRR, NPV, Payback Period, and profitability index, the investment for production is not feasible to company, since it’s not brought a good return from the investment, not giving a good profitability, moreover, not reaching the payback. So instead of buying moulding as the investment to producing the components of rainwater harvesting, company can start to assess other strategies to sell the product, since the product have potential to be marketed.