JOURNAL REVIEW

FINANCIAL FEASIBILITY STUDY

ON PONGKOR MINIHYDRO POWER PLANT
DEVELOPMENT PROJECT
Authors:
SANDI SUANDI
NURUL CHAYATI
2018

TRY SUNANDA FATHANAH

 INTRODUCTION
1

METHODS
2

RESULT AND DISCUSSION

3

CONCLUSION
4
1 INTRODUCTION
Aneka Tambang is one of the largest mining
companies in Indonesia that produces various
mining products. To support its production
activities, it requires enormous resources, one
of them is electrical energy.
Photo source:
https://earth.google.com/web/
To meet the need for electrical energy, one of Version 9.172.0.0 - WebAssembly

Aneka Tambang's business units located in

Bantar Karet Village, Nanggung District, Bogor
Regency plans to build a mini hydro power
plant.

As in general, a project must have a goal, either

profit or other benefits. For this reason, a
feasibility study of this project is needed, to
determine the feasibility level of this project from
all aspects, especially the financial aspect.
PURPOSE OF THE STUDY METHODS

Start

Determination of the
Result and conclusion
research object

The purpose of this study is to Literature study Reporting

determine the level of feasibility of

Collecting data
the Pongkor Mini Hiydro Power Plant Finish
Development Project from financial Secondary data:
perspective using Net Present Value, Total project value,
Internal Rate Return, Benefit Cost Interest rate, Operation
and maintenance cost of
Ratio, and Payback Periode electricity production,
approaches. electricity price

Analysis: NPV, BCR, Average interest

IRR, PP
rate = 15%
1 RESULT AND DISCUSSION
Cash Flow NPV Calculation Result

The NPV method is

basically moving the cash
flows spread over the
investment period to the
present.

If the NPV > 0, the project is

feasible or profitable,
otherwise if the NPV < 0,
the project is not feasible or
not profitable.

Based on the table, a

positive NPV is obtained
(NPV > 0).
Internal Rate of Return (IRR)

NPV Calculation NPV Calculation

Result With26% Result With27%
Interest Rate Interest Rate

Internal rate of return is a level of

efficiency indicator that shows an
investment is acceptable or not.
IRR is obtained by trial and error
method to get the NPV= 0.

15%
Benefit cost Ratio (BCR)

Benefit cost ratio is a

calculation method by
comparing the production
cost with the benefits of a
business project.
Benefit cost Ratio (BCR)
Payback Period (PP)

Payback period is the period

required to cover the initial
cash investment (Wijayanto,
2012).

The result show this project

need 4 years and 10 months to
cover the initial cash
investment.
1 CONCLUSION
Conclusion

Based on the result and discussion, it can be concluded that Pongkor Mini Hydro Power Plant
Development Project is profitable or feasible to be carried out.
With :
1. Net Present Value IDR. 174.804.692.905 (> 0).
2. Internal Rate of Return 26,001% (> 15%).
3. Benefit Cost Ratio 2,275 (> 1).
4. Payback Period 4,87 years.
THANK YOU