FINANCIAL FEASIBILITY STUDIES OF STEEL PANEL RAISED FLOOR FACTORY IN INDONESIA

This research aims to analyze the financial feasibility of establishing a steel panel raised floor manufacturing facility in Indonesia by PT SGN. The commercial real estate market in Indonesia has witnessed rapid growth, however PT SGN currently relies 100% on imported panels and raised floori...

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Bibliographic Details
Main Author: Tjeong, Daniel
Format: Theses
Language:Indonesia
Online Access:https://digilib.itb.ac.id/gdl/view/79902
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Institution: Institut Teknologi Bandung
Language: Indonesia
Description
Summary:This research aims to analyze the financial feasibility of establishing a steel panel raised floor manufacturing facility in Indonesia by PT SGN. The commercial real estate market in Indonesia has witnessed rapid growth, however PT SGN currently relies 100% on imported panels and raised flooring systems from China. This import-dependence causes high logistics expenses, elongated lead times, and restrictions in controlling quality. To address these strategic challenges and capitalize on high growth opportunities, PT SGN is exploring setting up a domestic manufacturing plant. The study integrates both primary and secondary data to develop 10-year financial projections. The analysis indicates the $14 million investment for the factory can yield a NPV of $41.5 million at a 30% rate of return. Sensitivity analysis and scenario simulation is also conducted across assumptions. Financially, the project seems viable given manageable risks. However, further evaluation of technical and organizational readiness is warranted before additional fundraising and project implementation. Key recommendations include monitoring import policies that can impact project sustainability.