BUSINESS AND FINANCING STRATEGIES FOR EXPANDING AND DIVERSIFYING CLEAN ENERGY IN INDONESIA (CASE STUDY : PT UDARA BERSIH)

• Main Author: Rasyid Rajasa, M
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/85746
• Institution: Institut Teknologi Bandung

PT UDARA BERSIH is a private company established in 2012 and is engaged in the natural gas industry and other clean energy products such as CNG, LNG and Biomass. Biomass is a renewable alternative fuel source that is more environmentally friendly than other fuels. Currently PT UDARA BERSIH has a biomass plant that produces wood chips and wood pellets in the West Java region. The purpose of this study is to analyze the business strategy and funding needed by PT UDARA BERSIH to enter the biomass industry in West Java. The research method used is a combination of descriptive and case study methods, with data collection through interviews, document analysis, and direct observation. SWOT, PESTEL, and Porter's Five Forces analyses were conducted to evaluate the company's internal and external situation. Furthermore, this research designs the right funding strategy based on 5 funding alternatives sourced from venture capital, Angel Investors, Banks, IPOs and Bonds. Based on the comparison results, alternative 3 (Bank Loan) is more profitable. This alternative provides NPV of Rp 8,503,386,171.21, Internal Rate of Return (IRR) of 31%, Payback Period (PP) for 4 years. This alternative will increase the value of the company in several ways such as diversification of financial risks, tax benefits on interest payments, guaranteed retained earnings, quick disbursement of funds, and maintaining the balance of shareholders' equity. The findings of this study highlight the huge potential of the biomass market in West Java and Indonesia, and the importance of an appropriate funding strategy. Research recommendations include continuing to develop internal business strategies, product innovation, operational efficiency, and human resource management, as well as considering optimal funding alternatives based on financial feasibility analysis. This research provides valuable insights for companies looking to enter the biomass industry. The company will create two phases of the project. The first phase is to create a specialized vehicle company to invest in biomass plants and deliver them to customers where the parent company still focuses on CNG and LNG distribution. During phase 2 when the SPV reaches payback period or has net profit, the SPV will be attached to the holding company to increase assets and consolidate all revenues and and net profit.