PT Humpuss Intermoda Transportasi Tbk. (HITS) is an Indonesian company
having its core line of business in marine transportation. Previously, HITS came
across an opportunity to transport sand from Bangka to Ancol. The project was
completed albeit with its own challenges, as it was the first time HITS engaged in
dredging. Regardless, HITS saw an opportunity in this sector as there were only
few major players in Indonesia. HITS are planning to establish PT Logistics
Infrastructure Services International (LISI) whom will engage in dredging, with two
main focuses: reclamation and/or maintenance.
Our study is conducted to assist HITS’ Management in analyzing the dredging
business with Feasibility Analysis to conclude whether the new business project is
feasible or not; Valuation or Profitability Analysis to calculate the current value of
future projects; Funding strategies to list out available funding options; and to map
out corresponding business strategy and management.
This Group Field Project will report our research and will be presented to HITS’
Management as a formal business plan as a basis in their decision to enter the
dredging business. First, we would gather necessary data, from HITS’ internal and
publicly available data. Any data that is unavailable will be assumed and clearly
communicated with HITS for approval. Second, data would be processed, with the
correct methodology. Third, we would analyze the processed data, complete with
our conclusion about the dredging business. A sensitivity analysis will also be
conducted to reflect how minor changes in our assumptions would affect the final
outcome.
After thorough analysis, we have concluded that PT. LISI is indeed feasible
with a high viability in market, business model, financial, and economic, with a
medium to low viability in technical. NPV are positive, and the IRR of project is
28.61%, which is 17.85% higher than the Cost of Capital of the project. The
valuation of PT. LISI is as 39,558,524,598 IDR. We recommend that PT. LISI use
a capital structure of 39.7% equity and 60.3% debts.


Supervisor: Roy Sembel