Investment Project Analysis of New Business Opportunity in Gasoline Distribution Sector for Small and Medium Enterprise

Abstract

In 2019, the Indonesian state-owned enterprises launched a program in gasoline distribution sector. Besides aiming to support national energy sustainability policies, this program also has a goal to provide business opportunity for Small and Medium Enterprise (SME) activists. This is because the scale of gasoline distribution station is affordable to small company. However, due to the relatively new business opportunity for SMEs, the comprehensive financial analysis available for reference is very limited. Therefore, many SMEs are still worried about whether this business will be profitable for them or not. This study aims to provide a feasibility analysis of the gasoline distribution business for SMEs, especially for a small company called CV XYZ. The feasibility analysis consists of several analyzes such as analysis of the business situation using Porter's Five Force Analysis and the VRIN method, SMART analysis - for the selection of potential locations, and financial feasibility analysis consisting of capital budgeting analysis, sustainability analysis (ratio), scenario analysis, and simulation Monte Carlo. From the feasibility analysis, the researcher concludes that this business is very prospective for SMEs. In addition, several variables must be monitored and mitigated due to their large impact on the business. The author also suggests immediately build a small-scale gas station in the selected location to strengthen its existence as a pioneer and market leader in that location.

Keyword:SME, Gasoline, Investment, Feasibility, Analysis