Articles

Business and Financing Strategic in Entering a Biomass New Business (Case Study: PT ABC, in West Java)

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Biomass is a renewable alternative fuel source that is more environmentally friendly than other fuels. Currently PT ABC has a biomass plant that produces wood chips and wood pellets in the West Java region. The purpose of this study is to analyse the business strategy and funding needed by PT ABC to enter the biomass industry in West Java. The research method used is a combination of descriptive and case study methods, with data collection through interviews, document analysis, and direct observation. SWOT, PESTEL, and Porter’s Five Forces analyses were conducted to evaluate the company’s internal and external situation. Furthermore, this research designs the right funding strategy based on 5 funding alternatives sourced from venture capital, Angel Investors, Banks, IPOs and Bonds. Based on the comparison results, alternative 3 (Bank Loan) is more profitable. This alternative provides NPV of Rp 8,503,386,171.21, Internal Rate of Return (IRR) of 31%, Payback Period (PP) for 4 years. This alternative will increase the value of the company in several ways such as diversification of financial risks, tax benefits on interest payments, guaranteed retained earnings, quick disbursement of funds, and maintaining the balance of shareholders’ equity. The findings of this study highlight the huge potential of the biomass market in West Java and Indonesia, and the importance of an appropriate funding strategy. This research provides valuable insights for companies looking to enter the biomass industry.

Financing of the Agricultural Business by Sharia Bank to Increase the Exchange Rate of Farmers in West Java Province

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This study aims to analyze the relationship between Islamic bank financing in agricultural businesses and farmer exchange rates in West Java Province between 2017 and 2021. The dependent variable of this study is farmer exchange rates, while the independent variable is total amount financing. , non-emerging financing (NPF), and the BI rate. This study uses a quantitative approach using secondary data from Islamic banks and other reliable sources. The data used covers five years, i.e., 2017-2021. The analytical method used is statistical regression which measures the effect of independent variables on farmers’ exchange rates. The research results should lead to a better understanding of the impact of Islamic bank financing on agricultural businesses on farmers’ exchange rates in West Java province during the study period. In addition, this study aimed to determine the effect of the funding level, non-current finance (NPF), and BI rate variables on farmers’ rates. The results of this study are expected to help Islamic banks and local governments formulate more effective policies to increase farming financing and farmer exchange rates in West Java Province. In addition, this research can also contribute to the development of literature on agribusiness financing and the role of Islamic banks in the agricultural sector.