Investment Analysis of Silica Mineral Mining Transportation at PT Masago Inti Sinergi in Makassar

Abstract

This study aims to analyze the investment feasibility of silica mineral mining transportation in Lipukasi Village, Tanete Rilau District, Barru Regency, South Sulawesi Province, undertaken by PT Masago Inti Sinergi. This research employed a descriptive quantitative method using investment feasibility criteria. The parameters used to evaluate the investment included Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR), Payback Period (PP), Average Rate of Return (ARR), Profitability Index (PI), and sensitivity analysis. The data used in this study consisted of detailed costs for procuring dump trucks from dealers, Vehicle Operating Costs (VOC), as well as interest rates and inflation rates obtained from Bank Indonesia. Data were collected from various sources, including interviews with the management of PT Masago Inti Sinergi, the Transportation Agency, Statistics Indonesia (BPS), scientific journals, research reports, and literature studies. The results showed that the NPV was negative at -IDR 1,975,270,640.77, indicating that the investment was not financially feasible. The IRR was approximately 11.5%, suggesting that the project had limited profitability in generating returns relative to the financing cost. The BCR was 0.215, meaning that the project was financially infeasible because the Net B/C was less than 1. The project did not achieve its Payback Period within seven years, as the accumulated net cash flow remained negative through the final year. The ARR was above 0%, while the PI was 0.753 (PI < 1), indicating that the investment was not feasible. The sensitivity analysis also indicated that the project remained financially infeasible at the tested discount rates of 8%, 10.848%, 12%, and 15%, as the NPV remained negative. Based on these findings, it can be concluded that although the investment in silica mineral mining transportation by PT Masago Inti Sinergi, transporting materials from the quarry in Tanete Rilau District, Barru Regency, to the Franco cement plant of PT Semen Bosowa Maros, was assessed using all relevant investment criteria, the overall calculation indicates that the investment is economically and financially unfeasible.