Articles

CSR Program Social Return on Investment Analysis Case Study: PT PLN Indonesia Power PLTGU Cilegon OMU

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Responsibility and sustainability play a larger role in the activities of global businesses. The practice of Corporate Social Responsibility (CSR) can be used to promote more responsible and sustainable behavior. PT PLN Indonesia Power PLTGU Cilegon OMU is a sub holding of an Indonesian state-owned corporation committed to fostering a responsible and sustainable culture through CSR. The old CSR program in Margasari village, the company’s first ring area, must be replaced because it has come to its exit time. Based on the Social Mapping Document 2022 and interviews, a SWOT analysis is conducted taking into account the current situation of the community. The analysis indicates that a new sewing group named Pujasari could be implemented as the new CSR program in the village of Margasari. Nevertheless, since a CSR program is a social investment, the company must be confident in the program’s future return for the community. This study aims to determine the program’s economic feasibility, Social Return on Investment (SROI) value, variables that may influence SROI achievement, and contribution to the Sustainable Development Goals (SDGs). In calculating SROI, the triple bottom line concept will be used, while the economic feasibility will use capital budgeting method. A sensitivity analysis will be conducted to determine the critical variable for achieving SROI. The study demonstrates that the calculation utilizing the triple bottom line concept (considering economic, social, and environmental benefit) over a 5-year project period yields an NPV of IDR 1,988 mio, an IRR of 109%, with a WACC of 13.349%. The program’s SROI is 20.39, indicating that for every IDR 1 invested by the company in this program, IDR 20.39 in social benefit will be generated. Analysis of sensitivity reveals that WACC, the selling price of rags, working productivity, and price of rag primary materials are, in order, the most sensitive variables affecting the project’s SROI value. In addition, the program demonstrates contribution to SDGs 1, 5, 8, 12, and 13.

Business Process Improvement and Capital Budgeting Analysis to Develop the Digitalization Process of Loan / Financing in Bank Sumsel Babel

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PT Bank Pembangunan Daerah Sumatera Selatan dan Bangka Belitung (brand name: Bank Sumsel Babel) is one of the regional state-owned enterprises (SOEs) engaged in the banking sector. As a local company with a great purpose, Bank Sumsel Babel has a big responsibility to support all industries in the region province of South Sumatera and the Bangka Belitung Islands. This study examines the downward trends in credit and financing activity over the previous five years, particularly in working capital and investment credit at Babel Sumsel Babel branches. These two credits assess how successful regional banks are at boosting the local economy. On the other hand, the Bank has seen a decrease in market share in its multi-purpose credit products to civil servants in the South Sumatra and Bangka Belitung islands, where this credit is the primary source of income for Bank Sumsel Babel. This research utilizes qualitative information to determine the root cause and improve business processes by using the digital revolution of credit and financing to speed up the process and increase microfinance in Bank Sumsel Babel. Furthermore, the capital budgeting analysis to build the digitalization process will be calculated in this study to determine whether the investment is feasible. Based on the findings of this study, it is possible to conclude that Bank Sumsel Babel can use digitalization as a process improvement to secure its niche market and increase lending activities. Finally, this study makes recommendations for internal management on implementing the credit and lending digitalization process.