Project Selection and Identification in Optimizing the Utilization of Funds Process from Company Right Issues: A Case Study of PT. West Java Cement Indonesia

Adhi Priyo Dwiarso; Sylviana Maya Damayanti; Uke Marius Siahaan

Adhi Priyo Dwiarso
Sylviana Maya Damayanti
Uke Marius Siahaan

Abstract

PT. West Java Cement Indonesia is a public company in Indonesia which has challenges in facing free-float issues. PT. West Java Cement Indonesia conducted a right issue and aimed around 1 trillion IDR and allocated 55 billion IDR to invest in alternative fuel projects. PT. West Java Cement Indonesia aims for 25% TSR (Thermal Substitution Rate) by 2030. Three Alternative Projects are identified, which are: RDF (Reuse Derived Fuels), Waste Tire Pyrolysis Oils, and Biochar. The method that use on this research are financial project analysis method, involving five indicators, which are: NPV (Net Present Value), IRR (Internal Rate of Return), Payback Period (PBP), ROI (Return on Investment), and Opportunity Cost and weighted average scoring method. Based on the calculation of financial project analysis, it is shown that the Waste Tire Pyrolysis Project is the most beneficial among the others. It is indicated by highest NPV around 52,160 million IDR among the others. Weighted Average Result also shows a similar figure with the highest score around 10.0 among the others. The result concludes that the Waste Tire Pyrolysis Project is the best use among the others.

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