DETERMINING COMPETITIVE ADVANTAGE AND FEASIBILITY STUDY ANALYSIS OF STEAM POWER PLANT IN KALIMANTAN TENGAH

Abstract

This final project explores the feasibility study analysis of a steam power plant project which is conducted by PT Pamapersada Nusantara (PAMA). Previously, PAMA has identified its strategy to expand the market and the result is business diversification in power plant construction. This statement becomes the background of the project. The project feasibility is checked based on three aspects: marketing, technical, and financial. Before those aspects are analysed, the study of power plant engineering is elaborated here to help in understanding the power plant process. The marketing aspects used SWOT analysis and Porter 5 Forces to define the competitive advantage. Then, the technical aspects discussed about the project location, specification, and schedule of construction and operation. The project feasibility is evaluated by conducting financial analysis by calculating payback period, NPV, and IRR. The result is the project constructs 2x60 steam power plant that has 25 years lifetime with 80% capacity factor in Kapuas district, Kalimantan Tengah. The operation is started in 2017. The electricity is distributed to PLN, internal company, and loading port at excess power tariff. This project is feasible since the NPV is positive. The IRR is 16.71% and the payback time of investment is in 2027.