Feasibility Study: Your Gateway to Informed Investment Decisions
Investors can use the Feasibility Study for various purposes related to the "Feasible". Starting from the feasibility in terms of return on investment, sales, and feasibility of the technical and investment implementation. Generally the services we offer are feasibility studies from a technical and development aspect.
About Feasibility Study
How important is a Feasibility Study for an investment plan?
1. Land Function
Company A will build a factory and buy land planted with rice, but when it has finished making payments to the landowner, Company A cannot obtain a Technical Approval for the use of the land as an industry, so the land certificate cannot be issued and also construction cannot be carried out. This happens because there is no feasibility study for the use of the land to be purchased.
2. Weather and Natural Disasters
Company A will build a factory and buy land in one area, then build a factory on that land and start operations. However, when rainy season there are many puddles and flooding everywhere, this affects the company’s operations and can even be detrimental if the intensity of rainfall increases. This happened because there was no previous analysis related to the potential for flooding in the area where the land will be purchased.
3. Water Sources
Company A intend to invest by building a factory, but after land acquisition is carried out and it will enter the construction phase, it is discovered that there are no enough water sources in the location, so Company A must incur significant additional costs with a variety of bureaucracy so that clean water is available according to needs. Of course, this also happened due to the absence of an initial study of hydrology in the area.
4. Spatial Plan
Company A intends to build a factory in a certain location. After Land purchase process is complete, Company A submits a permit for the construction of the factory as originally intended. However, the Government rejected Company A’s application for a factory building permit because the area was not designated for industrial areas but for housing. This is happen because there was no initial study of the Spatial Plan for the investment.
The Feasibility Study
Will try to answer whether or not an investment in a certain field is feasible in a certain location!
There are many other examples that have the potential to cause unexpected costs or even construction failure if a feasibility study not carried out. Such as land preparation costs, electricity, labor costs, accessibility, weather, local culture, and government policies both central and regional.
Regarding the technical matters for our services, the reports/information that you will get, the timeline, and the costs, we can explain further in our proposal after we hold an initial meeting to discuss plans or the aims and objectives of investors. Please contact us to schedule a meeting.
Just tell us your business plan, and we will help you to make it happen!