Authors :
Ardiyansyah Suhendar; Irni Yunita
Volume/Issue :
Volume 9 - 2024, Issue 12 - December
Google Scholar :
https://tinyurl.com/3k2w5966
Scribd :
https://tinyurl.com/3cwm3xxu
DOI :
https://doi.org/10.5281/zenodo.14410573
Abstract :
The increasing demand for electricity and the
Indonesian government's commitment to reducing carbon
emissions necessitate the development of renewable
energy, including Mini Hydro Power Plants (PLTM). PT.
Brantas Total Energi, a subsidiary of PT. Brantas Energi,
plans to develop the Batanghari PLTM project in West
Sumatra. This study aims to evaluate the investment
feasibility of this project from financial and risk
perspectives and to provide recommendations for its
continuation. The research methodology employed
financial analysis using four key indicators: Internal Rate
of Return (IRR), Net Present Value (NPV), Discounted
Payback Period (DPP), and Profitability Index (PI). In
addition, a sensitivity analysis was conducted to assess
investment risk in response to changes in key variables,
such as electricity sale tariffs, investment costs, and
electricity production rates. The results indicate that the
Batanghari PLTM project achieves an IRR of 12.25%, a
positive NPV of IDR 31.257 billion, a DPP of 15 years, and
a PI of 1.18, signifying that the project is financially
feasible. However, the sensitivity analysis results show that
the project is somewhat sensitive to fluctuations in tariffs
and investment costs. In a worst-case scenario, such as a
decrease in electricity tariffs and an increase in investment
costs, the project could become financially unfeasible.
Consequently, it is recommended that PT. Brantas Energi
and PT. Brantas Total Energi conduct regular risk
monitoring and consider mitigation strategies, such as
tariff renegotiations or investment cost controls, to
maintain the project's sustainability and profitability.
Keywords :
Mini Hydro Power Plant, IRR, NPV, Discounted Payback Period, Profitability Index, Sensitivity Analysis.
References :
- Chakrabarty, P., Alam, K. C. A., Paul, S. K., & Saha, S. C. (2024). Hydrogen Production by Electrolysis: A Sustainable Pathway. In Hydrogen Energy Conversion and Management. Elsevier, 81–102.
- Ekowati, T., Sumarjono, D., Setiadi, & Agus. (2020). Buku Ajar Studi Kelayakan Dan Evaluasi Proyek.
- Gupta, R., Gosavi, & Subhash. (2023). Financial Management: E-Book for MBA, 2nd Semester, SPPU. Mumbai: Thakur Publication Private Limited.
- Hadi, & Mustofa Amirul. (2018). Penilaian Properti Berwujud (Tangible) Jilid I. Bandung: Balai Pustaka (Persero), PT.
- Halim, A. (2024). Analisis Investasi Dan Aplikasinya: Dalam Aset Keuangan Dan Aset Riil Edisi 3. Jakarta: Penerbit Salemba.
- Hasan, S., Elpisah, J. S., Nurwahidah, Abdullah, & Fachrurazi. (2022). Manajemen Keuangan. Bandung: Penerbit Widina.
- IEA. (2023). World Energy Outlook 2023. Paris, France.
- Institute, Energy. (2023). Statistical Review of World Energy. United Kingdom: Energy Institute.
- Merzy, A. M., & Daryanto, W. M. (2018). “Financial Feasibility Studies for Perusahaan Gas Negara (PGN) Project: A Case Study of City Gas Project in Indonesia for The Period of 2018-2038.” South East Asia Journal of Contemporary Business, Economics and Law, 17(2), 28–35.
- Paramita, R., Pranchiska, & Indah. (2024). “Target Bauran Energi Indonesia Tahun 2023 Kembali Melesat.” Buletin APBN, IX(3).
- PLN. (2023). Rencana Bisnis Pasokan Listrik PT. PLN (Persero) Tahun 2021-2030. Jakarta.
- Riesty, P., Masdiantini, S. D., Rieke, & Rizki, S. (2024). Panduan Komperehensif Akuntansi Dan Keuangan: Menguasai Dasar-Dasar Dan Praktik Terbaik. Yogyakarta: PT. Green Pustaka Indonesia.
- Rusydi, I., Ridho, R., Purnamasari, D. L., & Haidar, M. H. (2018). Analisis Kelayakan Usaha Pembesaran Ayam Sentul (Studi Kasus Di PT. Sumber Unggas Indonesia). Jakarta: Penerbit Qiara Media.
- Setiadi, D., Anwar, S., & Surianti, S. (2020). “Investments Evaluation Model Case in Indonesian Hospital.” In 1st International Conference on Accounting, Management and Entrepreneurship (ICAMER 2019). Jakarta: Atlantis Press, 141–44.
- Zativita, F. I., & Chumaidiyah, E. (2019). “Feasibility Analysis of Rumah Tempe Zanada Establishment in Bandung Using Net Present Value, Internal Rate of Return, and Payback Period.” In IOP Conference Series: Materials Science and Engineering, IOP Publishing, 12007.
The increasing demand for electricity and the
Indonesian government's commitment to reducing carbon
emissions necessitate the development of renewable
energy, including Mini Hydro Power Plants (PLTM). PT.
Brantas Total Energi, a subsidiary of PT. Brantas Energi,
plans to develop the Batanghari PLTM project in West
Sumatra. This study aims to evaluate the investment
feasibility of this project from financial and risk
perspectives and to provide recommendations for its
continuation. The research methodology employed
financial analysis using four key indicators: Internal Rate
of Return (IRR), Net Present Value (NPV), Discounted
Payback Period (DPP), and Profitability Index (PI). In
addition, a sensitivity analysis was conducted to assess
investment risk in response to changes in key variables,
such as electricity sale tariffs, investment costs, and
electricity production rates. The results indicate that the
Batanghari PLTM project achieves an IRR of 12.25%, a
positive NPV of IDR 31.257 billion, a DPP of 15 years, and
a PI of 1.18, signifying that the project is financially
feasible. However, the sensitivity analysis results show that
the project is somewhat sensitive to fluctuations in tariffs
and investment costs. In a worst-case scenario, such as a
decrease in electricity tariffs and an increase in investment
costs, the project could become financially unfeasible.
Consequently, it is recommended that PT. Brantas Energi
and PT. Brantas Total Energi conduct regular risk
monitoring and consider mitigation strategies, such as
tariff renegotiations or investment cost controls, to
maintain the project's sustainability and profitability.
Keywords :
Mini Hydro Power Plant, IRR, NPV, Discounted Payback Period, Profitability Index, Sensitivity Analysis.