THE INDONESIAN JOURNAL OF

BUSINESS ADMINISTRATION
Vol. 2, No. 10, 2013:1144-1154



FEASIBILITYSTUDYFORGASPOWERPLANTPROJECTIN
KABUPATENMUARAENIM

HarryRiusxanderandErmanSumirat
SchoolofBusinessandManagement
InstitutTeknologiBandung,Indonesia
Harry.Riusxander@sbmitb.ac.id

AbstractKabupatenEnimMuaraisoneofthedistrictsproducingoilandnaturalgasinIndonesia,butinrecent
yearsadeclineinliftingintheareawhichresultedinreducedrevenuesharingfromoilandgassectorgained
Enim Muara District. In the calculation of revenue sharing, there was a significant decline in 2010 that only
about50%from2009,whilethesharingofnaturalgas,DistrictofMuaraEnimgetanincrease,anddipresiksi
will continue to increase. Because of this, Kabupaten Enim Muara plans to increase revenue by utilizing the
distributionofnaturalgasliftingresults.OneofthebusinessesthatwillbeenteredbytheKabupatenMuara
Enim is the construction of gas power plants. Before running the gas power plant project, Kabupaten Enim
Muarawillconductananalysisofthedistributionofnaturalgastheywillget,afterwhichitwillbeconverted
intotheamountofgeneratingcapacitythatcanbebuilt.Afterthat,itcanbeseentheamountofgenerating
capacity that can be built, then the authors can calculate the amount of the costs incurred, and the price of
electricitytobesoldtoPLN,becauseelectricitypricesarecalculatedbasedonthecostsincurredbyanelectric
generator. From the data that has been calculated, the authors could analyze the feasibility of a gas power
plant for Development of these. From the feasibility study analysis conducted, it can be concluded that the
constructionofgaspowerplantsisfeasibletorun,itcanbeseenfromapositiveNPV(USD15,175,775),theIRR
exceeds the cost of capital (13.12%), more than one PI (1.23), and also the project payback is relatively fast
through6.25years.
Keywords:lifing,profitsharing,gaspowerplants,feasibilitystudies,montecarlo.

1. Introduction

KabupatenMuaraEnimisoneoftheareasthatmostofitsareaislocatedinsouthernSumatrabasin,
this resulted in high content of hydrocarbons in the area. The deposit of mineral resources and
geothermal,MiningandEnergyservicesofKabupatenMuaraEnimpredictsthatOilhasapotential
depositare252.397,06MSTBand12.477,07BSCFfornaturalgasdeposit.Fromtheresultsoflifting
crudeoilandnaturalgasarestillinproduction,KabupatenMuaraEnimmakesoilandgasbecame
one of the mainstays in increasing revenue (Pendapatan Asli Daerah). However, Kabupaten Muara
Enimlocalgovernmentisnotsatisfiedwiththeamountofrevenuethatcomesfromsharingliftingof
petroleumandnaturalgas.Therefore,theGovernmentoftheKabupatenMuaraEnimbusinessplans
forpetroleumandnaturalgas.Thegovernmentregulation32of2004aboutRegionalGovernment,
the Authority to carry out oil and gas activities of local government lies only in the downstream
business. So that Kabupaten Enim Muara Government will utilize sharing lifting petroleum and
naturalgasfornewbusiness.

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Tablee1. OilandNaaturalGasLiftin
nginKabupaten
nMuaraEnim

20
009 2010 2011 2012
Crudee Oil
(barreel) 29
9,200,477.73 23,8885,419.52 6,733,1000.25 4,703,572.49
4 9
Naturral Gas
Liftingg
(MMB BTU) 35
5,931,793.88 8 35,870,910.08 51,209,5004.16 56,308,498.9 98

From mtheresultsofPetroleum mandNaturaalGasliftingg,Kabupaten nMuaraEnim mcanbeseeenthattheree

isaliiftingdecreaaseinPetroleumisasiggnificant,thisscanoccur becausethe eamountof oilreservess
areru unningout. However,lifftingthenum mberofnatu uralgasintheKabupaten nMuaraEnimcontinuess
to increase. Thiss resulted in
n the opporrtunity to enter to the use of natural gas is much more e
attracctivethanth heuseofpettroleum.On neofthebussinessesinth heutilization
nofnatural gasthatwilll
beprroposedisth heconstructiionofnaturaalgaspowerrplants.Sottoproposinggtheconstru uctionofthiss
poweerplantwillb becarriedouutfeasibilitystudyofthissproject.

2. B
BusinessIsssueExploraation

Figurre1.ConceptuaalFremework

Theree are variouus conditionss that need to be consiidered, such h as the exteernal conditions (Macro o
Econo omic and In ndustry analyysis) and intternal condiitions (Muarra Enim Eco onomic) thatt may affectt
projeect feasibilityy, financial feasibility
f calculations sh
hould be don ne with careefully and co
omplexity off
calculation depends on the complexity aspects neeed to be co onsidered. External
E analysis is veryy
importanttound derstandthesituationoffthebusinessswillbeexeecutedandp predicttheffutureofthee
businness.Externaalanalysisw willhelpcompaniesmakeestrategicb businessdeciisions.Intheeanalysisoff
poweerplantconsstruction,extternalanalyssiswillbeco onductedusingPESTELanalysismodeeltoseethe e
macroeconomic conditions, whilethem modelofPorter'sFiveFo orcesanalysisisusedto analyzethe e
poweerplantindustry.

2.1. PESTEL

2.1.1. Politic/Le egal

Core businessacttivitiesintheeoilandgassindustryarredividedinttotwobusin nessactivitiees:upstreamm
and d
downstream m activities. Government
G regulation No. 22 in 20
001 on Oil and
a Gas Article 5 stated d
that 'upstream and
a downstrream busineess activitiess as mention ned can be executed by: (a) state
owneed enterprises, (b) regio onally owneed enterprisees; (c) coop peratives, smmall businessses, and (d))
privateentities"..IntheOilan ndGasbusin ness,localgoovernmentcaanonlyactindownstreaamarea.The e
ruleccanbefound datgovernm mentregulattionNo.32 in2004on RegionalGovernment,w whichstated d

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that"authoritytocarryoutthegovernment'soilandgasregionliesonlyinthedownstreambusiness
activities."
SointhiscasethelocalgovernmentofMuaraEnimDistrictcanonlyundertakedownstreamoiland
gas activities. Oneonone downstream business that can be done is the construction of a power
planttonaturalgaspower.
For the selling price of electricity to PLN, it will be calculated based on the costs listed in the
MinisterialESDMRegulationNo.04in2012.
2.1.2. Economic
Theincreasingamountofelectricityproductionwillsupportthegrowthofthenationaleconomyby
theincreaseinelectricityconsumptionwillincreaseeconomicactivities,whichaffectstheoutputof
theeconomyisbetter.Alsogoingtheoppositeeffect,wheregoodeconomicgrowthwillincrease
demandforelectricity.
InRUPTL2012,PLNestimateselectricitygrowthin20112020,assumingtheneedJavaBaliwillgrow
7.8%peryear,forWesternIndonesia10,2%peryearandforEasternIndonesiawillgrow10.8%per
year.Indonesia'selectricityneedswillgrowanaverageof8.46%peryear.
ReferringtotheanalysisofthePLN,anyeconomicgrowthrequiresthesupportofatleast1%ofthe
electricity consumption growth of 1.5%. When referring to this standard, the average economic
growth during 20062011 was 5.8% and ideally followed by the growth of power consumption by
about8.73%peryear.Duringthesameperiod,thenationalelectricityconsumptiononlygrewbyan
averageof7%peryear.Therefore,thereisshortageofelectricityinIndonesia.
2.1.3. `Social/Environment
Gaspowerplantisapowerplantthatisstillusingresourcesthatarenotrenewable,andnaturalgas
reserves are becoming increasingly depleted, in addition, many countries have launched to reduce
emissions caused by global warming has been one of the reasons is energy consumption is not
environment,andgaspowerplantisapowerplantexpendquitealotbutnotashighemissioncoal.
2.1.4. Technology
Technologiescaninfluenceandchangealotofpartsofthebusiness.Thiseffectmayoccur,especially
for process materials and products. There are many inventions that use the latest technology to
createaddedvaluefortheuser.Ofcourse,theapplicationoftechnologytobeevaluatedfromthe
costsandbenefitsthatfollowed.Naturalgasfiredpowerplantnaturalgasistheprimarytechnology
usedforelectricitygenerationintheworld.Becauselowcapitalcost,powerisoftenusedforsmelter
energysources,especiallyinIndonesia.

2.2. PortersFiveForcesAnalysis

2.2.1. ThreatofNewEntries
Construction of power plants require huge investments. The electricity is generated, the funds
needed.Giventhecostofcapitalandafewrulesthatneedtobeadheredtointhemanufacturing
plant,theentrybarrierforpowerprojectsisquitehigh.
2.2.2. BargainingPowerofSupplier
Technology for naturalgaspowerplanthas become more common. There are many suppliers for
the equipment to be used, resulting in low switching cost. Besides, it has a lot of equipment from
China that has the most competitive price. Under these circumstances, the bargaining power of
suppliersislow.
2.2.3. BargainingPowerofBuyer
PartiescanbuyelectricityinIndonesiaisPLNastheholderofthepowerofelectricalpowerbusiness
andalsoprivate.ThesellingpriceofelectricitytoPLNundertherulessetbygovernmentministers
EMR.Itcanbeconcludedbargainingpowerofbuyersisstillquitehigh.
2.2.4. ThreatofSubstituteProducts
S Some are quite popular alternative power than gas power plants, including the coalfired power
plants, geothermal. Geothermal power plant is a plant that is very popular today, because
geothermal is environmentally friendly and is also oneone resource that many have in Indonesia,
besides geothermal power plant is also one of carbonfree power generation. It can be concluded
Threatofsubstituteproductsisinthemiddlecategory.

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2.2.5. RivalryamongExistingFirm
There are several companies engaged in the power generation industry, and largely controlled by
PLNIndonesia.InadditiontoPLN,besidesPLNcompanyengagedinthebusinessisnottoomuch,is
becauseofgovernmentpoliciesinthissectordevelopmentconsentonlystartedin2002.Thenumber
of existing companies is relatively low and relatively high electricity demand, so competitions
betweenthecompetitorsareweak.

Highentry
barriers

Weakrivalry Lowbargaining
Highbargaining
powerofbuyer among powerof
competitors supplier

Medium
threatsfrom
substitute

Figure3PortersFiveForcesAnalysis

2.3. InternalAnalysis

InternalanalysiswillbedonebylookingatthepotentialoftheKabupatenMuaraEnim.Kabupaten
EnimMuaraisrichinminingsector.MiningsectorhasanimportantroleinKabupatenMuaraEnim
economics, either gas or oil and nonoil and gas structured. In Oil and gas structure, Dominant
contribution of mining sector is formed by oil and gas products, while another is still dominant
contributed by coal production. Mining and Energy services of Kabupaten Muara Enim Predicts Oil
that has a potential deposit are 252,397.06 MSTB and 12477.07 BSCF for natural gas deposit. For
dataliftingnaturalgascanbeseeninthetableandgraphbelow

NaturalGasLifting(MMBTU)
60,000,000.00
50,000,000.00
40,000,000.00
30,000,000.00
20,000,000.00
10,000,000.00
0.00
2009 2010 2011 2012

Figure4KabupatenMuaraEnimNaturalGasLifting

While the power supply in the district of Kabupaten Muara Enim obtained from the Tanjung Enim
power plant which is a largescale electricity generation. The establishment is not only to local
electricitysuppliedneed,butalsotosuppliedelectricityneedinSouthofSumatraWhichconnected
bySouthofSumatrainterconnectiontransmissionlink.Bythetotalofelectricitypowerduring2009,
1.592.623,054Mwhwasdistributedoutoftheregionand161.181,946Mwhforthecompanyused.
Compared to the previous year, that increased by 55,42 percent, and that one decreased by 4.41
percent.

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2.4. SSourcesofFlue
fuel ffor the power plant to be made in the Kabupa
aten Muara Enim is a re
evenue shariing lifting off
naturralgasintheearea.Forho owtodistrib
butetheprocceedswillbeeseeninthefollowingdiagram:

Figure5Obtainingflowsportio
onreceivingareeaKPSGas

Fromm the chart above it cann be seen go overnments only get 30 0% of the Goovernment Entitlement..
Local governmen nts are referrred to in the chart, is a combinattion of bothh provincial and districtt
goverrnmentsnaturalgasprod ducer.WherreKabupaten ngovernmen ntproducinggonlyget12%,whilethe e
restistherightoofthe6%of theprovinciialgovernmeentandlocalKabupaten norcitiesthaatareinthee
produ ucingdistricttsoftheprovincetogetashareof12 2%.
2.5. C CAPEX
Initial investmen nt to be inccurred in th he constructtion of the power plan nt can be seen in costt
engin neeringprocurementand dconstructio on(EPCcost)).
2.6. O OPEX
Operating expenses consist of o fixed costt and variable cost, whicch will be used for operational and d
maintenance.
Fixeddoperationallandmainteenancecostaareconsisted dof:
Geneeralaffairand dmanagemeentcost
Operationandmaintenanceccost
Laborcost
Landandbuildinggtax
Propeertyinsurancce
Lifeccyclemainten nance
Contiingency
Aparttfromthefixxedcosthassbeendiscusssed,gaspow werplantsaalsohavethe ecostoffuellintheform m
ofnaturalgasthaatmustbeheeldtoproducethefinalp product.
2.7. SSourceofrevenues
Benefits to be gained
g from this project came from m the sale of electricityy to PLN. A
According to o
minissterialregulaationsEMRN No.4in2012,theprice ofelectricityyderivedfro omrenewableresourcess
willnnotbedoneinbythePowerSupplyB BusinessPlan(RUPTL)PTTPLN(Limiteed)whichwasapproved d
bytheMinisterofEnergyand dMineralResources.
InaEESDMministterialregulattionNo.05in n2009,Inexxecutingpow werpurchaseplan,PTPLN(Limited))
shall make Estimmate Price (HHPS) as a refference, calcculated based on plant type,
t plant location, the
e
amou untofcapacity,Inthecaalculationofcostbasedttransferprice,theenerggypricedivid dedintofourr
comp ponents:
Compone entA:CapaccityCharge
TThe capacityy payment provides fo or the recovery of cap pitalized development and capitall
eexpenditure, financing fees,
f interesst during coonstruction and fixed cost
c such ass taxes andd
in
nsuranceduringconstruction,andreeturnoninvestment.Thecapacitychargeismon nthlychargee

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regardlessoftheamountofenergytaken.ThiscomponentisconstructedasaflatrateinPower
PurchaseAgreement.TheformulaofComponentAdefinedasfollows:
ComponentB:FixedOperationalandMaintenance(FOAM)Charge
Operation and Maintenance capacity payment is tariff component calculated base on the
company spent to do operation and maintenance. The operating costs are divided into: Fixed
OperatingandMaintenanceCost(FOAM)andVariableOperatingandMaintenanceCost(VOAM).
TheformulaofcomponentBFOAMdefinedasfollows:
ComponentC:FuelCharge
Thefuelcostreferstocoal,limestone,andfueloil(MFO/HSD)whenthepowerplanthasbeen
operated.
ComponentD:VariableOperationalandMaintenance(VOM)Charge
Thevariablecostiscalculatedconsideratethewatertreatmentandothercoststhatinfluenceto
energyconsumedorplantcapacity.Butgenerallythevariablecostusedforsteampowerplantis
assumed$0.030(referredtoongoingprojectwithsimilarcapacity).
2.8. SourceofFund
SourceoffundstobeusedtobuildanaturalgaspowerplantKabupatenMuaraEnimwillbedone
using:
Targetdebttoequityratiois70:30,
DebtwillbeusingaveragefrominterestrateinIndonesiabanks.

3.BusinessSolution

Businesssolutionwillbedividedintotwosections:
The number of natural gas sharing obtained by the Kabupaten Muara Enim local
government,
FeasibilityStudyforPLTG.
3.1. ThenumberofnaturalgassharingobtainedbytheKabupatenMuaraEnimlocalgovernment.
From the literature study it can be seen governments only get 30% of that is reflected in the
Government Entitlement. Local governments are referred to in the chart, is a combination of
provincialanddistrictgovernmentsnaturalgasproducer.WheretheproducingKabupatenonlyget
12%,whiletherestistherightofthe6%oftheprovincialgovernmentandtheotherskabupatenor
citiesthatareintheproducingKabupatenoftheprovincetogetashareof12%.
3.1.1. CostRecovery
Cost Recovery (CR) is the cost of investment and operation of oil and gas Contractor issued
production,andpaidtheGovernmentinIndonesia/GOIphilosophicresultsforproduction,whichis
moreclearlyreflectedintheschemefortheresultsofPSC.

Table2.AverageCostrecoveryinIndonesia

CostRecovery
2009 28%
2010 29%
2011 26%
2012 25%

AveragecostrecoveryinIndonesiastilltendingtohighenough,thatrangedbetween25%until29%
of20092012year
3.1.2. IndonesiaGasPrice
Todeterminetheamountofrevenuefromthesaleofnaturalgas,then,weneedtoknowtheprice
ofnaturalgasinadvance.

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TableError!Notextofspecifiedstyleindocument.IndonesiaGasPrice

GasPrice
2009 2.8
2010 3
2011 5
2012 5.5
The price of natural gas taken from the average of the GSA (gas sales agreement). To be able to
computerevenuefromthesaleofnaturalgasintheIDRthen,writertakeBImiddleratemainasa
reference.
Aftertherevenuefromnaturalgassalesminuscostrecovery,thenwecancalculatetheamountof
revenuesharingthatwouldbeobtainedbytheKabupatenMuaraEnim.

Table4.KabupatenMuaraEnimNaturalGasRevenueSharing

2009 2010 2011 2012

Natural Gas
Lifting
(MMBTU) 35,931,793.88 35,870,910.08 51,209,504.16 56,308,498.98
Average cost
recovery 27.97% 29.00% 26.00% 25.00%
cost recovery
(%) 10,051,779.97 10,402,563.92 13,314,471.08 14,077,124.74
Sharing
(MMBTU) 25,880,013.91 25,468,346.16 37,895,033.08 42,231,374.23
Government
Entitlement
(%) 42.04% 42.04% 42.04% 42.04%
Government
Entitlement
(MMBTU) 10,879,362.61 10,706,306.95 15,930,200.32 17,753,098.41
Kabupaten
Muara Enim
share(%) 12.00% 12.00% 12.00% 12.00%
Kabupaten
Muara Enim
share
(MMBTU) 1,305,523.51 1,284,756.83 1,911,624.04 2,130,371.81
Growth 1.59% 48.79% 11.44%
*Projection

Fromthedataabove,itcanbeseenthattheKabupatenMuaraEnimgetthehighestrevenuesharing
ofnaturalgasin2012,revenuesharingareincreasingfromyear2011andisexpectedtocontinueto
rise.
3.2. FeasibilityStudyforPLTG.
Fromtheresultsofsomeofrevenuesharinggas,whichisobtainedbyKabupatenEnimMuara,will
be used to build a power plant, power plant is expected to increase revenue of Kabupaten Muara
Enim.ToeliminatetheriskoffluctuationsinnaturalgasliftingKabupatenEnimMuara,thebusiness
enterprises that will run the power plant will only use about 2.000.000 MMBTU of natural gas,
althoughitisexpectedtoincreaseliftingnaturalgasintheyearsaheadinthisarea.

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Byusing2.000.000MMBTUofnaturalgas,theenergyrequiredtobeobtainedis2.110.112GJ,which
cangenerateelectricitygeneratedat255,851MWh/year.Soinstalledcapacityforthispowerplant
is35MW.

Table5SpecificAssumptionsofElectricCapacity

Unit GT

Installedcapacity MW 35
Axillary
Consumption MW 1.4
(3.66%)
Netelectricity MW 33.6
Capacity factor
% 85%
(85%)
Operatinghours hours/year 8,640
Grosselectricity MWh/year 255,851
Netelectricity MWh/year 246,487

3.3. FinancialAnalysis
3.3.1. WACC
Fromtheinformationabove(section2.6.4),itcanbeconcludedthat:
Targetdebttoequityratiois70:30,
DebtwillbeusingaveragefrominterestrateinIndonesiabanks.
CostofdebtbeforetaxforKabupatenMuaraEnimsPLTGusingprimelendingrateforcorporate
fromaverageinterestrateinIndonesiabanksinUSD(BankIndonesia,2012)isasfollowat4.92%.
BasedonGovernmentRegulationNo.36Year2008aboutincometax,whichcameintoeffectfrom
January1,2010,companiesaretaxedatasinglerateof25%.
CostofequityiscalculatedusingtheCapitalAssetPricingModel(CAPM).
CAPM=riskfreerate+((PremiumRisk))
RiskfreerateusingtheBIrateasthebase,wheretheBIrateusedat5.75%fortheperiodJuly12,
2012(BankIndonesia,2012).
InordertoestimatethebetaleverageforpowerplantprojectsKabupatenEnimMuara,willbeused
powerplantcompaniesfromDamodaran,thisisbecauseofthislimitationdataonpubliccompanies
inIndonesiaengagedinpowerplan.

Table7.AverageUnleveragedBetaUSElectricUtilityCompany

weighted
Number Unleveraged Unleveraged
Position ofFirms Beta Beta
Central 21 0.75 0.28
East 21 0.70 0.26
West 14 0.75 0.19
Total 56 0.73
Source:Damodaran.com

Theoverallare56companiesengagedinpowergeneration,whichspreadinCentral,East,WestU.S..
Betavalueofeachregionisrelativelydifferent,sounleveragedbetathatwillbeusedtorepresent
the power industry plan is 0.73. Beta value will also be applied to power plant Kabupaten Muara
Enim. Furthermore unleveraged beta will be calculated by entering the composition of debtto
equityleverageratiotoproducebeta.
Leveragebeta =0.73X(1+(10.25)X233%
=2.01

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According to research by PT Danareksa Sekuritas, in 2011 Indonesia lower its risk premium for
investingfrom7.35%asof3January2011to6.18%asof30December2011(PTDanareksaSekuritas,
2012).
Fromthedatahasbeendescribedabove,theWACCcalculationis:

Table8WACCCalculation

ValuationAssumption
ProposedDebt(Wd) 70.00%
ProposedEquity(We) 30.00%
RiskFreeRate(Rf) 5.75%
RiskPremium 6.18%
Taxes 25%
LeveredBeta
UnleveredBeta 0.73
Leverage(D/E) 233%
LeveredBeta 2.01
WACCCalculation
CostofEquity 18.2%
PreTaxNetCostofDebt 4.92%
AfterTaxCostofDebt 3.69%
DebtContributiontoWACC 2.0779%

EquityContributiontoWACC 5.45%
WACC 6.56%

3.3.2. CAPEXandOPEX
To build the capacity of 35 MW power plant in the Kabupaten Muara Enim required an initial
investmentofUSD43.104.942.Thedetailsareasfollows:

Table9.CAPEXStructure

GasPlantCost(inUSD)
EPC (Engineering,
Procurement and 32,576,923
Construction)
VAT(10%) 3,257,692
Contingency(2%) 651,538
TotalCDOC 36,486,154
Insurancecost(0.3%) 97,731
Landcost 4,400,001
Developmentcost(1.5%) 488,654
Administrationcost 1,210,001
TotalCDFM 6,196,387
Working capital, staffs,
422,401
andtraining
Total construction cost
43,104,942
(US$)

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Meanwhile, for the first year of operation, OPEX of the power plant is worth USD14.195.753. The
detailsareasfollows:
Table10.OPEXStructure

Operatingcost
CostofGas 13,325,000
G&A 122,280
O&Mfixed 135,129
O&Mvariable 28,504
Labor 213,780
Propertytax 222,328
Insurance 122,280
Contingency 26,451
Total 14,195,753

Assuming the price of natural gas is used as a flue in the first year of operation is USD 6.5 per
MMBTU.
3.3.3. DepreciationMethod
Thepowerplantestimatedtohaveeconomicvalue25years.FollowstoGovernmentRegulationNo.
52 Year 2011, published December 22, for the tax reduction facilites then the project could
depreciatedusingstraightlineordoubledecliningmethodby10yearsofeconomiclife.
3.3.4. ElectricTariff
ElectrictariffwillbecalculatedaftertheCAPEXandOPEXknown,thecostsofdatadescribedinthe
previoussubchapter,theelectrictariffiscalculatedasfollows

Table11.ElectricTariff

Electricitytariff
ComponentA 0.0393
ComponentB 0.0055
ComponentC 0.0446
ComponentD 0.0012
Electricity
0.0906
tariff

So the price of electricity generated by the power plant to the Kabupaten Muara Enim PT.PLN is
worthUSD0.0960perKWh.
3.3.5. FinancialFeasibilityofPLTG
TheresultsofthefeasibilitystudyofpowerplantatKabupatenMuaraEnimis:

Table12.FinancialFeasibilityofPLTG

IRR 13.12%
NPV(USD) 15,175,775
PBP 6.25years
PI 1.23
ROI 14.58%
ROE 17.76%

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From these results it can be seen from the project's NPV is positive, which indicates the project is
eligible to run, in addition to the IRR, PBP, PI, ROI, and ROE supports running power plant
constructionprojectintheKabupatenMuaraEnimthis.

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