Andhika Group obtains an offer of BOT (Build, Operate and Transfer) agreement from PT ISM, who owned a plain land facing Madura Strait to be developed into a shore base project. To evaluate feasibility of this project, IPMI involved by providing a comprehensive feasibility study that carried-out in three phases.

On the first phase, IPMI provide recommendation to the company on shore-base industry attractiveness using Porter's Five Forces and SWOT Analysis. Kenichi Ohmae classic 3 C's also used to analyze the market condition. To help get insight from customer, quantitative market survey conducted through in-depth interview with 5 bigger players in East java and the result of the survey later on used to build up the business plan proposal using Osterwald's Single Reference Model.

On phase 2, after completion of market analysis and industry attractiveness on phase 1, IPMI then provide figure in amount of capital should be invested and time horizon of bOT agreement. Base on the financial projection and learning the fact that it will take 9 years 3 month before reach BEP and IRR below 15% with NPV of nagative 1.9 billion rupiah. IPMI recommended the company to not take the offer and looking for other bigger location instead.

On phase 3, IPMI complete the feasibility study with analysis and recommendation on exit strategy.



Research Location : PT. Andhika Group

Supervisor : Alex Iskandar Munaf, PhD.

Accepted Date : November 6, 2010



Confidential until November 6, 2015