Invest in the construction of a gas power plant

Oct 13, 2025 by recoveryshake.com 101 views

Introduction

PT PLN (Persero) is a state-owned electricity company in Indonesia that plays a crucial role in meeting the country's energy needs. As a large organization, PT PLN (Persero) has a significant amount of land assets across the country, including a vacant land of approximately 50,000 m² in Paya Pasir, Rengas Pulau Village, Medan Marelan District, Medan City, North Sumatra Province. This land has been idle for a long time, resulting in operational costs for maintenance without generating any revenue. In this context, conducting an analysis of "Highest and Best Use" is essential to determine the most profitable and competitive land use.

What is Highest and Best Use Analysis?

Highest and Best Use (HBU) analysis is a method used to determine the best way to use a property by considering various factors. This analysis is crucial in property management as it helps identify the most profitable and competitive land use. In the context of PT PLN (Persero) land in Paya Pasir, the HBU analysis focuses on four main criteria:

Physical Possibilities: Is the land use physically possible?
Legal Feasibility: Is the proposed use permitted by applicable laws and regulations?
Maximum Productivity: Will the land use maximize the results or output?

Methodology

To conduct the HBU analysis, a comprehensive study was conducted, including data collection and analysis. The study aimed to identify the most profitable and competitive land use for the vacant land owned by PT PLN (Persero) in Paya Pasir. The analysis considered various factors, including the physical and legal feasibility of the proposed use, as well as the potential return on investment.

Results

Based on the analysis conducted, the most profitable choice for the land use is to build a gas power plant (PLTG) with a capacity of approximately 250 MW. The study found that this project had a payback period of 2 years and 7 months, with a net present value (NPV) of Rp 2,818,837,070,855,- and an Internal Rate of Return (IRR) of 28.69%. Additionally, the Profitability Index (PI) reached 1.91, indicating that the investment value of Rp 2,203,152,758,023,- was suitable for the project.

Impact on Land Value

The development of the gas power plant also had a significant impact on the value of the land. The value of the land increased from Rp 1,300,000 per m² to Rp 53,998,778 per m². This increase in value demonstrates that the use of the land not only provides short-term benefits in the form of operational income but also increases the value of the overall asset.

Conclusion

The results of this analysis provide a clear reference for decision-making related to land optimization. The study demonstrates that investing in the construction of a gas power plant in the vacant land owned by PT PLN (Persero) in Paya Pasir is a very prospective option. This project can help maximize the use of PT PLN (Persero)'s assets, increase overall operational efficiency, and support energy needs in the region.

Recommendations

Based on the findings of this study, the following recommendations are made:

Invest in the construction of a gas power plant: The study demonstrates that investing in the construction of a gas power plant is a profitable and competitive option for the vacant land owned by PT PLN (Persero) in Paya Pasir.
Optimize land use: The study highlights the importance of optimizing land use to maximize the value of PT PLN (Persero)'s assets.
Increase operational efficiency: The study demonstrates that investing in the construction of a gas power plant can help increase overall operational efficiency and support energy needs in the region.

Limitations

This study has several limitations, including:

Data availability: The study relied on available data, which may not be comprehensive or up-to-date.
Methodological limitations: The study used a specific methodology, which may not be applicable to other contexts.
Assumptions: The study made several assumptions, which may not be valid in all cases.

Future Research Directions

Future research directions include:

Conducting a comprehensive feasibility study: A comprehensive feasibility study should be conducted to determine the viability of the project.
Assessing the environmental impact: The environmental impact of the project should be assessed to ensure that it is environmentally sustainable.
Evaluating the social impact: The social impact of the project should be evaluated to ensure that it is socially responsible.

By following these recommendations and conducting further research, PT PLN (Persero) can maximize the use of its assets, increase overall operational efficiency, and support energy needs in the region.

Introduction

In our previous article, we discussed the analysis of "Highest and Best Use" on land owned by PT PLN (Persero) in Paya Pasir Medan. This analysis is crucial in determining the most profitable and competitive land use for the company's assets. In this article, we will answer some frequently asked questions related to the HBU analysis and its implications for PT PLN (Persero).

Q: What is Highest and Best Use Analysis?

A: Highest and Best Use (HBU) analysis is a method used to determine the best way to use a property by considering various factors. This analysis is crucial in property management as it helps identify the most profitable and competitive land use.

Q: What are the main criteria for HBU analysis?

A: The main criteria for HBU analysis include:

Physical Possibilities: Is the land use physically possible?
Legal Feasibility: Is the proposed use permitted by applicable laws and regulations?
Maximum Productivity: Will the land use maximize the results or output?

Q: What was the most profitable choice for the land use in Paya Pasir?

A: Based on the analysis conducted, the most profitable choice for the land use is to build a gas power plant (PLTG) with a capacity of approximately 250 MW.

Q: What were the financial results of the project?

A: The study found that the project had a payback period of 2 years and 7 months, with a net present value (NPV) of Rp 2,818,837,070,855,- and an Internal Rate of Return (IRR) of 28.69%. Additionally, the Profitability Index (PI) reached 1.91, indicating that the investment value of Rp 2,203,152,758,023,- was suitable for the project.

Q: How did the development of the gas power plant impact the value of the land?

A: The value of the land increased from Rp 1,300,000 per m² to Rp 53,998,778 per m². This increase in value demonstrates that the use of the land not only provides short-term benefits in the form of operational income but also increases the value of the overall asset.

Q: What are the implications of the HBU analysis for PT PLN (Persero)?

A: The results of the HBU analysis provide a clear reference for decision-making related to land optimization. The study demonstrates that investing in the construction of a gas power plant in the vacant land owned by PT PLN (Persero) in Paya Pasir is a very prospective option. This project can help maximize the use of PT PLN (Persero)'s assets, increase overall operational efficiency, and support energy needs in the region.

Q: What are the next steps for PT PLN (Persero)?

A: Based on the findings of this study, PT PLN (Persero) should consider investing in the construction of a gas power plant in the vacant land owned by the company in Paya Pasir. Additionally, the company should optimize land use to maximize the value of its assets and increase overall operational efficiency.

Q: What are the potential risks and challenges associated with the project?

A: The potential risks and challenges associated with the project include:

Environmental impact: The project may have an environmental impact, which should be assessed and mitigated.
Social impact: The project may have a social impact, which should be evaluated and addressed.
Financial risks: The project may involve financial risks, which should be managed and mitigated.

Q: What are the potential benefits of the project?

A: The potential benefits of the project include:

Increased revenue: The project can generate revenue for PT PLN (Persero).
Increased operational efficiency: The project can help increase overall operational efficiency for PT PLN (Persero).
Support for energy needs: The project can help support energy needs in the region.

By considering these questions and answers, PT PLN (Persero) can make informed decisions about the use of its assets and maximize the value of its land.