Investment Analysis of Coal Fertilizer Plant Using Capital Budgeting with Social Return on Investment in PT Berau Coal
| Main Authors: | Hakim, Lukman; School of Business and Management, Institut Teknologi Bandung, Nainggolan, Yunieta Anny; School of Business and Management, Institut Teknologi Bandung |
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| Format: | Article info eJournal |
| Bahasa: | eng |
| Terbitan: |
The Indonesian Journal of Business Administration
, 2022
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| Online Access: |
https://journal.sbm.itb.ac.id/index.php/IJBA/article/view/4506 |
Daftar Isi:
- Investments need for these projects are generally very high and the concept is still limited to the use of coal as an energy source. PT Berau Coal as a holder of first-generation Coal Contract of Work (CCOW) which its permit will end in 2025, plans to a coal fertilizer plant as a form of downstream program, to meet the company's fertilizer needs for reclamation activities, and finally, it is also very important that the fertilizer will also be distributed to local farmers at the same price. subsidized fertilizer so that it is expected to provide social benefits for small farmers in particular and the economic development of Berau Regency in general.The investment feasibility analysis of the coal fertilizer plant is carried out using the Capital Budgeting method by taking into account the social cost and benefits and the value of Social Return on Investment to obtain a comprehensive picture regarding the benefits to be received by the company and the public. Keywords: Business strategy, downstream project, coal fertilizer plant, investment analysis, social return on investment