FEASIBILITY STUDY OF CLUSTER PROJECT IN SOUTH JAKARTA OF PT XYZ

• Main Author: Maulana Ramadhan, Fadhiil
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83466
• Institution: Institut Teknologi Bandung

Jakarta, the most densely populated province in Indonesia, has a significant millennial population, with less than 45% owning houses. This highlights a substantial demand for housing and makes South Jakarta particularly attractive for residential development due to its adequate infrastructure and good public transportation. South Jakarta is also Indonesia's second-most popular housing area after Tangerang. PT XYZ, a property developer, aims to capitalize on this opportunity by developing a housing cluster in Andara, South Jakarta. However, they have not yet conducted a financial feasibility analysis. The objective of this research is to assess the feasibility of the cluster project using key metrics in capital budgeting, including net present value, profitability index, internal rate of return, and payback period. The project also utilizes sensitivity analysis and Monte Carlo simulation for risk analysis. Results indicate a positive NPV of IDR 17,301,600,071, an IRR of 21%, which is higher than the project's cost of capital, a payback period of one year and one month, and a profitability index of 2.81, confirming financial viability. Risk analysis identifies the construction costs for types 293/88 and 225/88 houses, as well as land cost, as the most sensitive variables. The Monte Carlo simulation indicates a 29% probability of negative outcomes, suggesting a significant risk. To achieve project goals, PT XYZ should focus on mitigating these sensitive variables.