Investment Analysis of Junior High School Project in Bandung City (Case Study: Bandung Islamic School)

Abstract

Since the beginning of independence, the human right of the Indonesian people to obtain an education has been a commitment of the Indonesian state's founders. Compulsory learning is organized on formal education pathways, non-formal education, and informal education. Mandatory knowledge on formal tracks is carried out at a minimum of 9 years. Based on data from the Ministry of Education and Culture (Kemendikbud), for primary education and secondary education, the number of Junior High Schools in The City of Bandung is more diminutive than elementary schools. The limited quota of public schools in Bandung also requires some students to continue to private schools. Based on these circumstances, planning to invest in the Junior High School construction in Bandung is needed. To support this analysis, the author collecting secondary data from the financial report Bandung Islamic School and interview the owner and director of BISc then offered two alternatives about feasibility study analysis between rented buildings or profit-sharing. To evaluate the feasibility, the authors also conduct risk management analysis. According to capital budgeting analysis, profit-sharing alternatives are better than rental alternatives. Keywords: Investment Analysis, Payback Period, Net Present Value, Profitability Index, Internal Rate Retur