Financial Feasibility Analysis of Asphalt Mixing Plant Investment: A Case Study in Gianyar Regency, Bali
Main Article Content
Abstract
The availability of adequate road infrastructure is crucial for supporting mobility and regional economic growth. In Indonesia, increasing demand for high-performance roads has driven a transition from penetration macadam to hot mix asphalt (HMA). To meet this demand efficiently, reliable production facilities such as Asphalt Mixing Plants (AMP) are essential. This study aims to evaluate the financial feasibility of an AMP investment located in Pering Village, Blahbatuh District, Gianyar Regency, Bali. The analysis uses five financial indicators: Net Present Value (NPV), Internal Rate of Return (IRR), Benefit Cost Ratio (BCR), Break Even Point (BEP), and Annual Equivalent (AE). Financial data were collected from the company’s records of hotmix production and sales during the 2014–2020 period. The results indicate that the AMP project is financially viable. The NPV is Rp. 33.421.961.979, the IRR is 18% higher than the Minimum Attractive Rate of Return (MARR) of 16%—while the BEP was achieved in the 7th month of 2015. The AE value reached Rp. 4.774.565.997 per year, and the BCR was calculated at 1,244. These findings confirm that the investment is profitable and worth pursuing. This study provides practical insights for investors and stakeholders in making data-driven decisions for infrastructure investments, particularly in the road construction sector. Furthermore, the findings are relevant for long-term AMP business development, considering the growing demand for HMA in Indonesia. The shift from penetration macadam to HMA underscores the importance of efficient asphalt production facilities to ensure consistent supply and support sustainable infrastructure development.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
P. S. Kandhal and R. B. Mallick, Pavement recycling guidelines for state and local governments. Washington, D.C.: Federal Highway Administration, 1997.
R. Is Dayanti, I. Irwansyah, and W. Alamsyah, “Abu Batu Kapur Sebagai Alternatif Filler dalam Campuran Aspal Beton untuk Lapisan Aus,” Jurnal Ilmiah Telsinas Elektro, Sipil dan Teknik Informasi, vol. 7, no. 1, pp. 65–73, Apr. 2024, doi: 10.38043/telsinas.v7i1.5096.
L. Blank and A. Tarquin, Engineering Economy, 8th ed. New York: McGraw-Hill, 2014.
A. Pranoto, H. Hermawan, and N. Albart, “A Systematic Literature Review: Business Feasibility Analysis Using Net Present Value (NPV) and Internal Rate of Return (IRR) Methods in the Automotive Industry,” Jurnal Indonesia Sosial Sains, vol. 6, no. 1, pp. 171–184, Jan. 2025, doi: 10.59141/jiss.v6i1.1577.
M. W. Nugroho and L. Supriono, “A Study On Building Construction Investment Feasibility,” Journal Innovation of Civil Engineering (JICE), vol. 1, no. 1, p. 28, Nov. 2020, doi: 10.33474/jice.v1i1.9060.
H. Siregar, “Application of break-even point analysis for optimal AMP capacity planning,” Jurnal Infrastruktur, vol. 7, no. 2, pp. 88–94, 2013.
R. Lestari, “Benefit-cost ratio application in infrastructure investment decision-making,” Jurnal Ekonomi Pembangunan, vol. 14, no. 1, pp. 23–30, 2016.
B. Wibowo, “Annual equivalent approach for long-term road investment evaluation,” Jurnal Rekayasa Sipil, vol. 11, no. 2, pp. 112–120, 2015.
N. L. M. A. M. Pradnyadari, I. G. N. Sunatha, A. A. R. R. Wangsa, and P. W. Satyawan, “Kelayakan Investasi Pembangunan Villa Mandurah Desa Tibubeneng Kecamatan Kuta Utara Kabupaten Badung Bali,” Jurnal Ilmiah Telsinas Elektro, Sipil dan Teknik Informasi, vol. 7, no. 2, pp. 207–218, Sep. 2024, doi: 10.38043/telsinas.v7i2.5606.
M. of P. W. and H. (PUPR), D. G. of Highways. Republic of Indonesia, “Standard Operating Procedure: Certification of Operational Feasibility for Asphalt Mixing Plant (AMP) and Batching Plant (SOP/UPM/DJBM-79 Rev:01),” Jakarta, Indonesia., 2022. Accessed: Aug. 05, 2025. [Online]. Available: https://binamarga.pu.go.id/index.php/nspk/detail/sopupmdjbm-79-rev01-standar-operasional-prosedur-sertifikasi-laik-operasi-asphalt-mixing-plant-amp-dan-batching-plant?utm_source=chatgpt.com
S. Mahrusah and I. N. D. P. Putra, “Economic Feasibility Analysis Based on Optimal Cash Flow Planning on the A. Road Construction Project,” Composite: Journal of Civil Engineering, vol. 3, no. 1, pp. 29–39, Jun. 2024, doi: 10.26905/cjce.v3i1.13101.
E. N. and P. B. D. Garrison, Managerial Accounting, 15th ed. New York: McGraw-Hill, 2015.
E. J. Mishan and E. Quah, Cost-Benefit Analysis, 6th ed. . London: Routledge, 2007.
M. V. Sokolov, “NPV, IRR, PI, PP, and DPP: a unified view,” May 2024.
W. G. Sullivan, E. M. Wicks, and C. P. Koelling, Engineering Economy. New Jersey: Pearson, 2012.
J. Garcia, “Benefit-Cost Ratio (BCR): Formula, Calculation, and Example Explained,” Investopedia, 2003, [Online]. Available: https://www.investopedia.com/terms/b/bcr.asp
C. Liana, “Analytical Hierarchy Process for ROI Determination in Oil and Gas Projects in Indonesia,” PM World Journal, vol. 3, no. 2, pp. 1–13, 2014, [Online]. Available: https://pmworldlibrary.net/wp-content/uploads/2014/02/pmwj19-feb2014-liana-analytical-hierarchy-for-roi-oilandgas-projects-indonesia-FeaturedPaper.pdf
P. Manuho, Z. Makalare, T. Mamangkey, and N. S. Budiarso, “Analisis Break Even Point (BEP),” Jurnal Ipteks Akuntansi Bagi Masyarakat, vol. 5, no. 1, p. 21, Jul. 2021, doi: 10.32400/jiam.5.1.2021.34692.
A. Haidar and R. Ellis, “Financial Feasibility Assessment of Asphalt Plant Investments,” in Proceedings of the 10th International Conference on Construction Engineering and Project Management, Seattle, USA, 2019. doi: 10.1061/9780784482438.034.