Feasibility studies are related to determining feasibility or whether a project or company is established and implemented. The in-depth study covers a variety of factors, such as the availability of raw materials, labor, facilities and infrastructure, financing sources, prospectively marketing aspects, the level of benefits obtained based on normal conditions, optimism and pessimism), management aspects and possible future developments. As well as analyzing the level of project feasibility, among others: Break Event Point (breakeven level), Internal Rate of Return (IRR), Net Present Value (NPV), return on capital (ROE), return on investment (ROI).
The assignment of a feasibility study is required, among others in order :
- Submission of investment permits from BKPM (Investment Coordinating Board), both in the context of PMDN (Domestic Investment) and PMA (Foreign Investment).
- Terms in order to obtain credit from banks or non-bank financial institutions.
- Plans for cooperation with investors or investors, both active and passive partners.
