Financial Feasibility and Strategic Benefit Assessment of the Coal Hauling Road and Jetty Project in Muara Pahu (Case Study: Bangun Group, Kalimantan, Indonesia)
Downloads
Coal remains a significant energy source in global and regional economies, particularly in developing countries where reliable energy supply and industrial growth continue to depend on coal availability. However, increasing production capacity requires reliable logistics infrastructure to overcome transportation constraints and operational risks. The Bangun Group’s Tabang Project in East Kalimantan has experienced challenges related to seasonal disruptions in river transportation, which may affect coal delivery continuity and future production expansion. This study aimed to evaluate the financial feasibility and strategic benefits of the Muara Pahu Coal Hauling Road (CHR) and jetty project as a long-term logistics infrastructure investment. A quantitative case study approach was applied using capital budgeting and cost–benefit analysis methods. The assessment utilized secondary data from company reports, project documentation, industry references, and financial assumptions, with evaluation indicators including Net Present Value (NPV), Internal Rate of Return (IRR), Return on Investment (ROI), Payback Period, Benefit–Cost Ratio (BCR), and sensitivity analysis. The results showed that the project generated substantial economic value, with a positive NPV, an IRR exceeding the required rate of return, and a BCR of 3.18, indicating that the project benefits significantly exceeded the investment costs. Sensitivity analysis confirmed the project’s resilience under variations in transportation volume, tariffs, operating costs, and discount rates. Beyond financial performance, the project improved logistics reliability, reduced transportation disruption risks, supported production scalability, and strengthened strategic infrastructure control.
Abubakar, H. M., Bala, H. M., & Mohammed, A. (2025). Impact of Infrastructural Deficiencies on the Organizational Performance of Manufacturing Firms in Kano Metropolis.
Albertzeth, G., Pujawan, I. N., Hilletofth, P., & Tjahjono, B. (2020). Mitigating transportation disruptions in a supply chain: a cost-effective strategy. International Journal of Logistics Research and Applications, 23(2), 139–158.
Ardiansyah, M. (2024). Integrating corporate social responsibility into business strategy: creating sustainable value. Involvement International Journal of Business, 1(1), 29–42.
Bayoumi, E. O., Elgazzar, S., Abdel Bary, A., & Ricci, S. (2021). The role of road transport infrastructure investments on logistics performance. A research Agenda. International Business Logistics Journal, 1(2), 16–27.
Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
Igini, M. (2024, June 26). Fossil fuel comprised 82% of global energy mix in 2023. Earth.Org. https://earth.org/fossil-fuel-accounted-for-82-of-global-energy-mix-in-2023-amid-record-consumption-report/
International Energy Agency. (2025). Global energy review 2025. IEA. https://www.iea.org/reports/global-energy-review-2025
Ivanov, D., Das, A., & Choi, T.-M. (2018). New flexibility drivers for manufacturing, supply chain and service operations. In International Journal of Production Research (Vol. 56, Issue 10, pp. 3359–3368). Taylor & Francis.
Kanike, U. K. (2023). Factors disrupting supply chain management in manufacturing industries. Journal of Supply Chain Management Science, 4(1–2), 1–24.
Lee, H. L., & Shen, Z.-J. M. (2020). Supply chain and logistics innovations with the Belt and Road Initiative. Journal of Management Science and Engineering, 5(2), 77–86.
Markovic, P., Stevanovic, D., Kolonja, B., Slavkovic, D., & Krzanovic, D. (2025). A hybrid model for risk-based strategic planning in open-pit mining: Integrating deterministic, stochastic, and ISO 31000 approaches. Applied Sciences, 15(5), 2500. https://doi.org/10.3390/app15052500
Notteboom, T., & Neyens, K. (2017). The future of port logistics: meeting the challenges of supply chain integration. ING Bank: Bruselas, Belgium.
Nuswanto, V. B., Gustomo, A., Aprianingsih, A., & Febriansyah, H. (2024). The Green Human Resource Management Framework: Exploring the Implementation Phases for Sustainable Coal Mining Operations. Grey Journal (TGJ), 20(2).
Onah, T. F., Asuquo, G. S., Sunday, V. E., & Nwakile, T. C. (2026). Maritime logistics shipping performance port productivity and inland waterways infrastructure as determinants of sustainable agricultural supply chain efficiency in Nigeria. Discover Sustainability, 7(1), 698.
Paul, S. K., Asian, S., Goh, M., & Torabi, S. A. (2019). Managing sudden transportation disruptions in supply chains under delivery delay and quantity loss. Annals of Operations Research, 273(1), 783–814.
Rosada, F. (2025). Reforming Environmental Governance in Response to Indonesia’s Nickel Industrial Policy: A Critical Assessment of Sustainability Challenges. Global: Jurnal Politik Internasional, 27(1), 75–102.
Ross, S. A., Westerfield, R. W., & Jaffe, J. (2019). Corporate finance (12th ed.). McGraw-Hill Education.
Schaltegger, S., & Wagner, M. (2017). Managing the business case for sustainability: The integration of social, environmental and economic performance. Routledge.
Sinha, K. C., Labi, S., & Agbelie, B. R. D. K. (2017). Transportation infrastructure asset management in the new millennium: continuing issues, and emerging challenges and opportunities. Transportmetrica A: Transport Science, 13(7), 591–606.
Yao, X., Almatooq, N., Askin, R. G., & Gruber, G. (2022). Capacity planning and production scheduling integration: improving operational efficiency via detailed modelling. International Journal of Production Research, 60(24), 7239–7261.
Copyright (c) 2026 Eddy Karlowee, Gallang Perdhana Dalimunthe , Widhyawan Prawiraatmadja
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
