FEASIBILITY ANALYSIS OF GYROPLANE DEVELOPMENT IN INDONESIA

Dominggo Bayu Baskara, Christiono Utomo

Abstract: Gyroplane is a personal aircraft technology that use autorotation mechanism to achieve lift. Because its main rotor always in autorotation state, gyroplane can glide easily from any height even with the engine being off. This make gyroplane offers inherent safety, simplicity of operation, and outstanding short field point-to-point capability. Because of this technology has been developed in many European country, and Indonesia archipelago landscape makes many area suffer lack of support in road infrastructure, this situation creates potential market for gyroplane technology adoption in Indonesia.PT Bayu Aircraft Indonesia is a start-up company that currently working in gyroplane technology development project. Ensuring the success from this project, it is essential to asses project feasibility to see whether or not this technology development project may bring benefit financially for the company and its stakeholder. From technical perspective, the initial cost necessary to run the project is IDR 2,188,270,000. In which this amount of money will be used to provide production facility, research cost, legal cost, pre-operation, etc. From economic perspective using capital budgeting it is estimated that the competitive selling price is IDR 549,752,788 with margin rate 35,45%. Using cashflow analysis, the project is feasible with IRR 81.93% which is more than MARR at 12%. NPV from this project is IDR 7,161,680,064 and Paypack Period in the second year. The feasibility boundary of this project are: Engine cost maximum rising at +28.44%, USD to IDR exchange rate maximum rising at +25.72%, sales maximum declining at - 60.97%, and profit margin maximum declining at -21.62%.

Keywords: Gyroplane, Technology Adoption, Feasibility Study, Capital Budgeting

DOI: https://doi.org/10.15623/ijret.2017.0601030