Research Paper
Year: 2020 | Month: August | Volume: 7 | Issue: 8 | Pages: 187-202
Analysis Model and Financial Risk Mitigation Strategy in Decision Making For Investment Feasibility in Developing the Development of a Gas Engineering Power Plant Project in Riau Province
I Komang Pande Juniarta1, Isfenti Sadalia2, Nazaruddin3
1,2,3Master of Management Universitas Sumatera Utara, Indonesia
Corresponding Author: I Komang Pande Juniarta
ABSTRACT
The power plant construction project is a dynamic strategic project and has various risks that have the potential to cause realization to not go according to plan. The success of the construction project implementation can be seen from the accuracy in maintaining triple constraints (cost, quality, and time). Risk analysis on a project for long-term investment and the success of project development according to planning is very important, so it is necessary to carry out analytical modeling to mitigate risks due to the complexity of the problems faced in the construction of the power plant project, especially in Riau Province with the development of a gas engine power plant project. . The results showed that there are still risks that can hamper the smooth development of the PLTMG power plant project in Riau Province by focusing on investment financial risks, including risk events for implementation time management, project cash flow governance, incidents of risk of material fulfillment difficulties and risk events of contract detail specifications. . From the results of the analysis of mitigation, the main risk mitigation priority consists of several groups according to the results of the analysis, namely Identifying critical and alternative processes that can be carried out, Optimizing work methods and resources that are implemented in the time schedule, implementing WBS in project work schedule planning and monitoring and Periodic progress evaluation with each mitigation value of 0.38, 0.29, 0.17 and 0.16. Furthermore, planning project financial resources, Availability of project budget according to RKAU and project business processes, Good work scheduling and project resource management according to cash flow plans, Creating planning schedules for budget verification and control, Timely project progress with project documentation in accordance with procedures, System Implementation Quality Management 9001: 2015, coordination and simple bureaucratic processes with respective mitigation values of 0.27, 0.17, 0.17, 0.13, 0.12, 0.09 and 0.06. Furthermore, Contract with material providers so that the Material is ordered in advance (either using DP or not) for arrival according to the project schedule, Monitoring and evaluation of material procurement according to the project schedule, Alternative Material Manufacturing Planning, Substitution of similar materials and reengineering and Contracting with expeditions so that it has control on the delivery of materials with each mitigation value of 0.46, 0.28, 0.11, 0.08 and 0.06 and furthermore a detailed explanation of technical specifications at the time of anwijzing, having a reliable engineering and construction team, contract details both drawings and needs detailed materials and modeling the design following changes with the respective mitigation values of 0.33, 0.26, 0.25 and 0.16.
Keywords: Mitigation Strategy, Decisions, Financial Risks and Investment Feasibility
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