FINANCIAL FEASIBILITY STUDY OF PT XYZ’S EXPANSION PLAN IN THE ELECTRICAL MOTORCYCLE CONVERSION PROGRAM

• Main Author: Siahaan, Palaguna
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85776
• Institution: Institut Teknologi Bandung

This study investigates the financial feasibility of PT XYZ's expansion into the electric motorcycle conversion program in Indonesia. Driven by the urgent need to mitigate climate change and air pollution caused by the transportation sector, the Indonesian government has actively promoted electric vehicle adoption through supportive policies and incentives. PT XYZ, leveraging its expertise in electric vehicle conversion technology, aims to capitalize on this opportunity while contributing to a sustainable energy transition. A comprehensive financial feasibility study was conducted, encompassing market potential analysis, cost structure evaluation, investment requirement calculation, revenue and profitability projections, and risk assessment. The results indicate a high financial feasibility for the project, with a Net Present Value (NPV) of IDR 1.7 trillion, an Internal Rate of Return (IRR) of 43.79%, and a payback period of under two years. Sensitivity analysis highlighted the project's sensitivity to selling price and raw material costs, emphasizing the need for effective risk management strategies. Based on these findings, the author recommends PT XYZ to proceed with the project while implementing strategies to optimize pricing, diversify the supply chain, strengthen branding, and foster continuous innovation. This project has significant potential for PT XYZ to achieve financial success and play a pivotal role in Indonesia's shift towards sustainable transportation.