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6.7.1. Consolidated Balance Sheet Projection

As the scheme stated in the previous chapter, bank financing will be accepted by the parent company and then distributed to the subsidiary company according to the needs of each subsidiary. The balance at the end of the year can be seen at Bank Investment Loan post, while for the needs of the parent company can be seen in Poas Bank Working Capital Loan. Both financing was completed gradually over 12 years.

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6.7.2 Projected Changes in Capital and Cost of Consolidation

It is assumed that during the first phase of construction, there will be no additional land area beyond 1.088 ha which has been mastered. The transition of land from stock raw material (wetland) to ready-to-sell land can be seen at the end balance post of raw material. While the cost of construction can be seen in post construction cost. The results of the development and sales process will be seen in the change in postal balance of finished goods. The balance of this post will shrink gradually in line with the pace of sales progress.

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6.7.3. Projected Consolidated Statements of Income Loss)

As has been said, the pattern of building while selling is expected to begin to show results in the 3rd year, where sales from industrial areas began to look the result. This sales revenue will affect the amount of loan funds required from banks. In this proposal, no dividend payout is deducted during the development period, since all profits will be used for

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development and operational costs, thus reducing the debt to equity ratio. r atio. With this pattern, bank loan funds serve as a stater for f or the project and the project will run on its own.

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6.7.4. Cash Flow Projection Consolidation

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6.7.5. Consolidated Financial Ratio Projection

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The highest point of the DER ratio is in the 5th year, but the level is still covered by the position of collateral in the form of land, ready-to-sell land and receivable accounts from sales. This is because at that time, the progress of industrial development has not been offset by sales. The DER ratio will drop gradually in subsequent years according to the company's return to the banking system. Rating: a.

Internal Rate Return IRR)

The main indicator for looking at the financial feasibility of a project is the size of the IRR, where the IRR value must be greater than the current and predicted value of deposit rates in the future. Where the value of Indonesia's interest rate or deposit rate at the moment is between 6% pa - 8% pa. In addition, the banking loan for the development of the Area is assumed at an interest rate of 9.5% which is the average of the t he current lending rate. The level of IRR development of Jorong Area of Borneo Integrated City shows 16.12% throughout the life of the activity for 15 years. IRR Jorong area of Borneo Integrated City is larger than the lending rate of 9.5% pa, so that the value of Internal Rate Return (IRR) of Jorong Borneo Integrated City development area is far enough and in a safe position. This far-reaching difference will be useful if in the implementation there is a slowdown in the achievement of sales targets. From our calculations, sales delay of up to 1 (one) year is still safe for the company. b.

Financial Net Present Value FNPV)

The NPV value shows the difference between revenue and expenses incurred for development. NPVs with positive values indicate that development can be run or economically feasible. But in the process of calculation should involve the value of interest rates / inflation rates that may occur. The NPV value of Jorong Borneo Integrated City area development shows that at 9.5% interest rate, the NPV value shows a positive value during the 15 years of activity. The difference between total profits and total costs over a 15-year period indicates that the profit received is greater than the risk incurred. Thus, it can be concluded financially the development of Jorong Area Borneo Integrated City is feasible to run.

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6.8.

CONCLUSION

Referring to the calculation of NPV and IRR, the development of the Jorong Industrial Zone is at a safe and feasible border for development. There is no doubt about the efficiency and effectiveness of Jorong Industrial Estate development. The development of Jorong Industrial Zone is feasible from the financial aspect point of view, since the IRR is more than 7% pa 9% pa and the NPV is positive at the lending rate level of 9.5% pa during the 15-year period.

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