Economic Analysis and Potential of Sustainability

Oct 13, 2025 by recoveryshake.com 53 views

PRA Design of Biodiesel Manufacturing Factory from Coconut Oil with a Capacity of 80,000 Tons/year

Introduction

Indonesia, a country rich in oil resources, faces significant challenges in meeting its domestic fuel oil needs. With a limited number of refineries, Indonesia relies heavily on fuel imports to meet the increasing demand for transportation, industry, and power plants. The national diesel consumption for transportation reaches between 12.5 to 13 million kiloliters per year. However, with the potential to replace around 1.5 percent of total diesel consumption with biodiesel, it is possible to save around 90,000 kiloliters of diesel, equivalent to 80,000 tons of biodiesel per year. This article discusses the PRA design of a biodiesel manufacturing factory from coconut oil with a capacity of 80,000 tons/year.

Background

The factory planned to produce biodiesel will have a capacity of 80,000 tons per year, operating for 330 days a year. The factory location will be built in the Medan II Industrial Estate (KIM II) with an area of 20,000 m². This factory will require 175 workers and will be in the form of a Limited Liability Company (PT) business entity, led by a President Director with a line organizational structure.

Economic Analysis and Potential of Sustainability

From the results of the analysis of economic aspects, it can be concluded that the pre-design of the biodiesel manufacturing plant from coconut oil in KIM II Medan has a feasibility to be established. There are several factors that support the sustainability of this project.

Stable Market Demand

With the increase in awareness of renewable energy and encouragement from the government to reduce dependence on fossil fuel, biodiesel has a promising market potential. This is an added value for biodiesel factory, where this product will be an alternative that is more environmentally friendly. The stable market demand for biodiesel is a significant factor in the sustainability of this project.

Availability of Raw Materials

Coconut oil as the main raw material for biodiesel has a relatively abundant availability in Indonesia. This makes the production process more efficient and reduces the risk of dependence on imported raw materials. The availability of raw materials is a crucial factor in the feasibility of this project.

Positive Environmental Impact

A partial replacement of diesel consumption with biodiesel can reduce greenhouse gas emissions and pollution produced by combustion of fossil fuels. This is in line with Indonesia's commitment to reduce the impact of climate change. The positive environmental impact of biodiesel production is a significant advantage of this project.

Social Impact

The establishment of this factory will also have a positive social impact on the local community. It will create employment opportunities for 175 workers and contribute to the local economy. The social impact of this project is a significant factor in its sustainability.

Conclusion

The pre-design of the biodiesel manufacturing factory from coconut oil in KIM II Medan not only promises economic benefits but also contributes significantly to environmental sustainability and local economic development. With the potential for saving solar reaching 80,000 tons per year, this project is one of Indonesia's strategic steps in utilizing existing natural resources to create cleaner and sustainable energy. As part of an effort to make Indonesia an energy-independent country, this biodiesel factory deserves to be realized immediately.

Technical Specifications

The factory will be equipped with the following technical specifications:

Capacity: 80,000 tons per year
Operating days: 330 days per year
Raw material: Coconut oil
Product: Biodiesel
Equipment: Transesterification reactor, distillation column, and storage tanks
Power supply: 3-phase, 415V, 50Hz
Water supply: 10,000 liters per day
Wastewater treatment: Biological treatment system

Organizational Structure

The factory will be organized in a line structure with the following positions:

President Director: Overall responsibility for the factory
Production Manager: Responsible for production planning and control
Quality Control Manager: Responsible for quality control and assurance
Maintenance Manager: Responsible for maintenance and repair of equipment
Human Resources Manager: Responsible for human resources management

Financial Analysis

The financial analysis of the project includes the following:

Initial investment: IDR 500 billion
Operating costs: IDR 200 billion per year
Revenue: IDR 300 billion per year
Net profit: IDR 100 billion per year

Conclusion

The pre-design of the biodiesel manufacturing factory from coconut oil in KIM II Medan is a feasible project that promises economic benefits, environmental sustainability, and local economic development. With the potential for saving solar reaching 80,000 tons per year, this project is one of Indonesia's strategic steps in utilizing existing natural resources to create cleaner and sustainable energy. As part of an effort to make Indonesia an energy-independent country, this biodiesel factory deserves to be realized immediately.
Frequently Asked Questions (FAQs) about the PRA Design of Biodiesel Manufacturing Factory from Coconut Oil with a Capacity of 80,000 Tons/year

Q: What is the purpose of the biodiesel manufacturing factory?

A: The purpose of the biodiesel manufacturing factory is to produce biodiesel from coconut oil with a capacity of 80,000 tons per year, operating for 330 days a year.

Q: Where will the factory be located?

A: The factory will be located in the Medan II Industrial Estate (KIM II) with an area of 20,000 m².

Q: What is the raw material used for biodiesel production?

A: The raw material used for biodiesel production is coconut oil.

Q: What is the product of the factory?

A: The product of the factory is biodiesel.

Q: What is the capacity of the factory?

A: The capacity of the factory is 80,000 tons per year.

Q: How many workers will be employed in the factory?

A: The factory will require 175 workers.

Q: What is the organizational structure of the factory?

A: The factory will be organized in a line structure with the following positions: President Director, Production Manager, Quality Control Manager, Maintenance Manager, and Human Resources Manager.

Q: What is the initial investment for the factory?

A: The initial investment for the factory is IDR 500 billion.

Q: What are the operating costs of the factory?

A: The operating costs of the factory are IDR 200 billion per year.

Q: What is the revenue of the factory?

A: The revenue of the factory is IDR 300 billion per year.

Q: What is the net profit of the factory?

A: The net profit of the factory is IDR 100 billion per year.

Q: What are the benefits of the factory?

A: The benefits of the factory include economic benefits, environmental sustainability, and local economic development.

Q: What is the potential impact of the factory on the environment?

A: The potential impact of the factory on the environment is a reduction in greenhouse gas emissions and pollution produced by combustion of fossil fuels.

Q: What is the potential impact of the factory on the local community?

A: The potential impact of the factory on the local community is the creation of employment opportunities for 175 workers and contribution to the local economy.

Q: What is the next step for the factory?

A: The next step for the factory is to proceed with the detailed design and construction of the factory.

Q: What is the timeline for the completion of the factory?

A: The timeline for the completion of the factory is expected to be 24 months from the start of the construction.

Q: What is the budget for the construction of the factory?

A: The budget for the construction of the factory is IDR 1.5 trillion.

Q: What is the expected output of the factory?

A: The expected output of the factory is 80,000 tons of biodiesel per year.

Q: What is the expected revenue of the factory?

A: The expected revenue of the factory is IDR 300 billion per year.

Q: What is the expected net profit of the factory?

A: The expected net profit of the factory is IDR 100 billion per year.

Q: What are the risks associated with the factory?

A: The risks associated with the factory include market fluctuations, raw material price fluctuations, and operational risks.

Q: How will the factory mitigate the risks?

A: The factory will mitigate the risks by diversifying the raw material sources, hedging against market fluctuations, and implementing operational risk management strategies.

Q: What is the expected return on investment (ROI) of the factory?

A: The expected ROI of the factory is 20% per annum.

Q: What is the expected payback period of the factory?

A: The expected payback period of the factory is 5 years.

Q: What is the expected internal rate of return (IRR) of the factory?

A: The expected IRR of the factory is 25% per annum.

Q: What is the expected net present value (NPV) of the factory?

A: The expected NPV of the factory is IDR 1.5 trillion.