Articles

Portfolio Optimization Using Markowitz Model on Sri-Kehati Index

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This thesis investigates the portfolio optimization process using the Markowitz model on the SRI-KEHATI index, an esteemed sustainable investment index. The study aims to explore the potential advantages of incorporating environmental, social, and governance (ESG) factors into portfolio construction. By leveraging historical financial data and reliable ESG metrics, this research develops optimized portfolios that strike a balance between risk and return while adhering to the sustainability criteria of the SRIKEHATI index.

The methodology encompasses the collection of credible ESG data and financial information for the constituents of the SRIKEHATI index. The Markowitz model is subsequently employed to analyze the risk and return characteristics of each asset within the portfolio. Through the application of optimization algorithms, the study seeks to identify the optimal asset allocation that maximizes risk-adjusted returns, taking into account the ESG criteria outlined by the SRI-KEHATI index.

The outcomes of this research provide valuable insights into the effectiveness of portfolio optimization techniques within the realm of sustainable investing. By considering both financial metrics and ESG factors, investors can construct portfolios that align with their sustainability objectives while optimizing risk and return. The findings shed light on the performance of the optimized portfolios and compare them with conventional approaches, thereby demonstrating the potential benefits of integrating ESG considerations into portfolio decision-making.

Additionally, this study examines the practical implications associated with implementing sustainable portfolio strategies based on the SRI-KEHATI index.

Overall, this thesis contributes to the expanding body of knowledge on sustainable investing and portfolio optimization, specifically focusing on the SRI-KEHATI index. It provides valuable insights for investors, asset managers, and policymakers interested in sustainable investment strategies. Furthermore, it offers a framework for incorporating ESG considerations into the portfolio construction process using the Markowitz model, thereby aiding in the development of more robust and sustainable investment portfolios.

Feasibility Study of Student Financing Startup Company for BRI Ventures Investments Study Case of: “Company A”

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The problem faced by BRI Venture is to determine the feasibility of investing in Company A, a start-up in the student financing market in Indonesia. The valuation of start-ups in Indonesia is difficult, making it challenging for BRI Venture to assess the viability of the investment. This study aims to provide a comprehensive analysis of the factors affecting Company A’s business, both internally and externally, in order to make an informed investment decision.

The study focuses on three key research objectives: (1) to examine the macroeconomic and industry impact on Company A’s business by using Porter’s Five Forces model, PESTLE model, and market sizing; (2) to examine the internal aspects impacting Company A’s business by using the VRIO model; and (3) to determine the valuation of Company A by using the DCF and relative valuation methods.

The findings of the study reveal that the Indonesian student financing market presents both opportunities and challenges. The PESTEL analysis highlights the increasing demand for student loans in Indonesia, creating growth opportunities for the industry. However, the Five Porter framework analysis highlights the intense competition, strong buyer bargaining power, and weak supplier bargaining power, which may make it difficult for new entrants to succeed.

The VRIO Framework analysis suggests that Company A has a number of sources of sustained competitive advantage, including adaptable repayment terms, technological capabilities, and market position, indicating that Company A’s internal situation is strong. The Absolute Valuation and Relative Valuation results indicate that Company A valuation is between $59 million and $73 million.

In conclusion, while the Indonesian student financing market presents a growth opportunity, BRI Venture must carefully consider the challenges and competition in the market before making an investment in Company A. The internal analysis of Company A suggests that it has a strong position in the market, with a range of assets and competencies that can offer a sustainable competitive advantage. The valuation results provide a range of potential equity stake that BRI Venture could ask for if an investment in Company A is made.

Business Strategy to Increase the Asset Value of Pt. Martheen House (Case Study: Land in Pattimura Airport, Ambon)

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PT. Martheen House is the owner of the Idle Assets in North Maluku, Ambon. Numerous project options exist in the vicinity of Asset Idle, including the Pattimura international airport in Ambon, the processing of raw materials from crushed stone, and the surrounding countryside. In addition to numerous project options, Idle Assets also has office space and a total fisheries asset and facility value of Rp 7,761,500,000. In this study, PT. Martheen House intends to devise a plan to raise the selling price of its assets. Alternative projects that boost the resale value of these assets will be analyzed and profitable project ideas will be selected. utilizing SWOT to determine the internal components of an organization PESTLE to study competitors to explain external elements from the company that must be open, Porter’s Five Force to enable the company to overcome the underlying opportunities and dangers in the company’s external environment. After performing a Feasibility Study to establish the alternatives and the US Index to determine the chosen resource, the corporation must maximize capital in the form of Equity, Debt, or both to determine which resource to select. The final step is to determine the internal financial position using Financial Ratio Analysis.The investigation reveals that the chosen alternative project is the crushed stone processing project for Rp. 2.035 billion, the Warehouse Project + small office for Rp. 8.787 billion, and the Transit Hotel Project for Rp. Using loans to finance the implementation of this alternate project is doable. Due to the company’s internal financial predicament, it will implement the first alternative project selected, the crushed stone processing project.