Feasibility Analysis of Tanjung Enim Hotel Investment in the Tanjung Enim Mining Unit Area of PT Bukit Asam Tbk
Abstract
This study analyzes the investment feasibility of a proposed 4-star hotel development on idle land owned by PT Bukit Asam Tbk (PTBA) in Tanjung Enim, South Sumatra, as part of the company's strategic initiative to optimize non-productive assets and diversify beyond coal mining. Utilizing a mixed-method approach, the research integrates qualitative methods such as case benchmarking, document review, and SWOT analysis with quantitative financial modeling, including Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, and Profitability Index (PI). Data were collected from both internal and external sources, including macroeconomic indicators, market trends, and comparable hotel benchmarks. Findings indicate strong legal and strategic feasibility, with the project aligned with zoning regulations and backed by full land ownership, eliminating legal uncertainties. Market analysis highlights robust demand driven by PTBA's industrial ecosystem and limited regional hotel competition. Financially, the hotel is viable with a projected NPV of IDR 17.291 billion, IRR of 14.80%, Payback Period of 8.88 years, and PI of 1.27. However, sensitivity analysis reveals significant vulnerabilities to room rates, banquet pricing, and occupancy levels. Therefore, strategic pricing, demand forecasting, and risk mitigation are essential. Overall, the project demonstrates strong investment potential, contingent upon effective operational and risk management strategies.
Downloads
References
Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice. Cengage Learning. https://books.google.co.id/books?id=yL4aCgAAQBAJ
Gitman, L. J., Juchau, R., & Flanagan, J. (2015). Principles of managerial finance. Pearson Higher Education AU.
Hertz, D. B. (1964). Risk analysis in capital investment. Harvard Business Review, 42, 95–106.
Project Management Institute. (2021). A Guide to the Project Management Body of Knowledge–Seventh Edition and The Standard for Project Management.
Mackevièius, J., & Senkus, K. (2006). The System Of Formation And Evaluation Of The Information Of Cash Flows. In Journal of Business Economics and Management: Vol. VII (Issue 4).
Meneses Cerón, L. Á., van Klyton, A., Rojas, A., & Muñoz, J. (2024). Climate risk and its impact on the cost of capital—A systematic literature review. Sustainability, 16(23), 10727.
Pandit, K., Jeffrey, C., Keogh, J., Tiwari, M. S., Artioli, N., & Manyar, H. G. (2023). Techno-economic assessment and sensitivity analysis of glycerol valorization to biofuel additives via esterification. Industrial & Engineering Chemistry Research, 62(23), 9201–9210.
Pindyck, R. S., & Rubinfeld, D. L. (2018). Microeconomics 9th Global ed. Pearson.
Copyright (c) 2026 Hudan Asharyanto, Asep Darmansyah
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
