Business Investment Analysis Integration of Y Only Glass Processor and Applications
Business Investment Analysis Integration of Y Only Glass Processor and Applications
Business Investment Analysis Integration of Y Only Glass Processor and Applications
ABSTRACT: In 2021, the Industry sector is increasing rapidly with the value of construction rising
high and the growth of apartments and occupancy to increase the need for glass processors and
applications so that this increase makes an opportunity for Yonly Glass business. This makes business
increasingly attractive, so companies need to create and plan financial strategies, especially investment
strategies. To capture this investment strategy, the company must have added value to financial
investment planning. PT Yonly Glass, as a company engaged in Glass Processors and Applications,
needs to have a sound financial strategy to compete with competitors. To compete and survive requires
concentration on product development and analysis of investment strategies and economic efficiency.
The study uses inductive qualitative methods where all sample data and measurement IRR, NPV, PP,
and ROI show positive value. The business is viable to run and be further developed. The value of the
investment by calculating the IRR, NPV, and payback period of the business plan provides an idea that
the glass processor and application business is still excellent in times of pandemics and crises, so this
financial strategy is very appropriate and appropriate like Yonly Glass.
I. INTRODUCTION
In 2021 the Industrial Sector is expected to increase rapidly, with the value of construction reaching Rp
16.76 trillion or up 48.13%. The sentiment of construction actors on the condition of the Indonesian construction
market 2021 is based on a surveyconducted by BCIEconomicson 350 respondents consisting ofdevelopers,
architects and consultants, contractors, and sub-contractors in Indonesia.The phenomenonand changes
inlifestylethatincreaseandall-aroundinstantmake apartment development in Indonesiacontinue togrow.In the
inner and outer areas of Jakarta, the apartment market is still quite tempting. Until now, there are a total of
166,200-unit apartments located in the Jakarta area. This figure is included with flats that are ready to live or
still in the process of development. Projections for 2019 to 2023 are likely to increase to 50,000 units.
Meanwhile, in the area outside Jakarta or around Bodetabek, the total supply of 97,200 units in the Bodetabek
area is dominated by units still under construction. This figure is predicted to grow to 129,000 units from 2019
to 2022—twice as many as the Jakarta area.
Based onthe value of building construction in 2016 was 153.08 trillion, decreased in 2017 which was
150.36 trillion, fell again in 2018, which was 140.51 trillion. After experiencing a decrease for three consecutive
years from 2016-2018, the value of building construction increased by 4.9%, 147.77 trillion, and in 2020, again
experienced an increase of 2.1%, which is 150.7 trillion.Thenthe projection in 2021 can increase by 6.7%, which
is 160.8 trillion. Large-scale social restrictions (PSBB) that have been in place for quite some time have made
the potential demand for property products in almost all sectors into a large market that immediately enters the
market. Other assumptions that make 2021 more optimistic are Indonesia's economic growth of around +5%, the
COVID-19 vaccine program that will begin in mid-2021, and the implementation of omnibus law.These three
things are the main drivers to strengthen purchasing power, increase market confidence and confidence,public
safety, and encourage better investment opportunities in the property sector. This applies to all property sectors,
whether residential, office, shopping center, industry, etc. The combined capacity of sheet glass production from
each manufacturer found an increasing trend from year to year (2016-2020). This is due to the increasing need
for sheet glass from both local and export requirements.
PT. Yonly Glass is a company engaged in the glass industry with activities to process sheet glass
according to the design of the main contractorand the installation (applicator) of Glass in its building projects.
PT. Yonly Glass is present to provide convenience in serving the needs of Glass in the massive demand for high
rise building construction, in this case, the structure of Apartments, Housing, Hospitals, and office buildings
throughout Indonesia.In addition,itcanalsogiveconsumers a choiceindetermining the needsandservicesandtariffs
that are following their needsandaffordablePT. Yonly Glass also has experts who are professionals in glass
processors and glass installation on buildings.To increase the business required analysis of business feasibility
assessed using DCF (discounted cash flow) with NPV parameters. This model will ultimately show the
considerable net value of the investment to investors.
Other calculations are IRR, ROI, and discounted payback period, which provides information that can
support business feasibility analysis. (Harmono 2016). With this feasibility analysis, researchers tried to create a
study entitled "BusinessInvestment Analysis integration of Yonly Glass Processors and Applications."The
purpose of this research is to provide an overview of the investment analysis conducted by Yonly Glass,
including the parameters used and the justification for conducting a feasibility analysis using Net Present Value
(NPV), Internal Rate of Return (IRR), Return on Investment (ROI), and Payback Period (PP)(Marsiwi et al.,
2019). In addition, the purpose of this research is also to increase innovations related to products, processes,
organizations, and business models for companies to always be ready for future market changes(Prasetyo et al.,
2019)
Payback Period
The payback period is the method most often used by business people to measure the length of
investment funds reinvested as before. Therefore, the calculation results are expressed in units of time,i.e., years
or months. The Payback Period method is used to look at the payback period of capital that has been issued. The
paybackperiod is a period needed to recoup investment expenses (initial cash investment) using cash flow. In
other words,the Payback Period is the ratio between initial cash investmentwithcash flow which results in a unit
oftime.This method has a disadvantage that ignores the time value of money(time value of money). The faster
the return-on-investment period, the smaller the investment risk, and the investment project are worth running.
Conversely, the longer the return, the greater the investment risk, and the investment project is less
feasible / not worth running. (Harmono 2016).To address one of the method's shortcomings, specifically that it
ignores the time value of money, it is tried to improve the method by changing cash inflow into the present value
of the investment plan and then calculatingthe payback period.Thus, the cash flow used is cash flow that has
been discounted based on interest rate / required rate of returnoropportunity cost
III. METHOD
This study uses qualitative research methods where the data obtained by the author through
observation, analysis of documents, and records or analysis of reports are used as a basis in the calculation of his
research (Susanti et al., 2020). Furthermore, the authorof nature analyzed the feasibility of PTY only Glass's
business investment using severalmethods of calculating feasibility. This is because the miscalculation of current
value can affect the company's significant level of small profit income. As a result, Net Present Value (NPV) is
used in financial analysis to determine whether or not the business being conducted by the company is
profitable. This is determined by comparing the company's present value of the net cash flow to be received to
the current value of the investment capital issued by the company over the next one to five years. Return on
Investment (ROI)on Y only Glass is a ratio measuring Arena Corner's successin generating profit and loss in 1-5
years. The Payback Period method on Y only Glass issued to measure the length of investment funds that have
been used to beabletoreturnfor1-5years.At the same time, the Internal Rate of Return methodmeasures the level
of efficiencyand the statusofthe cashvaluein thefuture so that the valueused asabenchmarkisabovethe capital.
From the results of calculations, the company's NPV for five years then theNPVvalue is Rp
63,546,201,759 so that the results of NPV> 0 means that the investment made provides benefits for the company
then The project is feasible..
On the Return of Investment (ROI) table, it appears that the firstyearhas a positive percentage of 778 percent
during the investment year. This explains that the business is quite attractive for investors to make investments
with traditional accounting calculations. Furthermore, inthe secondyear witha positivepercentagevalue
of939percent during the second year ofacquisition.In thethird year, return of investment with apositive
percentage valueof1071percent.And the fourth-year return of investment valuesa positivepercentage of
ROIof1252percent, andthefifth-year return of investmentpositivepercentagevalueof1462percent. This explains
that this business is calculated withMeticulouslyworthrunning.
The ROI calculation of PT Yonly Glass from year 1 to year 5 shows a positive number so that this
business can provide profits and can becontinuedandrun.
V. CONCLUSION
From the results of net present value, payback period, Internal Rate Return and Return on Investment in
years 1-5, then the conclusion of this study explains that the processor business and Y only glass application
Glass is a plan and investment analysis using Net Present Value (NPV) in the positive category and worth
runningbecause many companiesarenot able toutilizegoodinvestmentopportunitiesinprojectswith net present
value.The analysis of the Internal Rate Return (IRR) method also shows a positive value. In addition, Return on
Investment (ROI) also indicates a positive value with an average above 20%. At the same time, this business's
Payback Period (PP) also shows a positive value with the payback of 1year, one month18 Days. Overall, this
analysis provides good information to investors to provide their investments to Y only Glass. In addition, for
further research, it is necessary to examine other fundamental factors such ascost factors and asset
structureordepreciationthatcanimpact investor interest in investing in Y only Glass.
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