Cost and Benefit Analysis of Rspo Certification (Case Study in PT Bca Oil Palm Plantation in Papua) Faris Salman, Mukhamad Najib, and Setiadi Djohar

Indonesian Journal of Business and Entrepreneurship, Vol. 3 No.
3, September 2017
Permalink/DOI: http://dx.doi.org/10.17358/IJBE.3.3.219 Accredited by Ministry of
Available online at http://journal.ipb.ac.id/index.php/ijbe RTHE Number 32a/E/KPT/2017
COST AND BENEFIT ANALYSIS OF RSPO CERTIFICATION

(CASE STUDY IN PT BCA OIL PALM PLANTATION IN PAPUA)
Faris Salman*)1, Mukhamad Najib**), and Setiadi Djohar***)
School of Business, Bogor Agricultural University

*)
Pajajaran Road, Bogor 16151

**)
Department of Management, Faculty of Economics and Management, Bogor Agricultural University
Kamper Road, Wing 4 Level 5, Campus IPB Darmaga, Bogor 16680
***)
PPM School of Management
Menteng Raya Road No 9 Road, Jakarta 10340
Abstract: RSPO is sustainable. It is one of many certification labels to justify a sustainable palm
oil practice. The objective of this study is to identify monetary benefit and cost with the existing
operating scenario of the company, or if the company is registered as the RSPO member. To
identify the benefit or cost that might occur, this research compared the NPV, IRR, and benefit-
cost ratio among the alternative scenarios. An ex-ante projective cash flow is simulated using the
company’s historical financial report from year 2012-2016 to obtain monetary perspective of the
amount of money required by the plantation to proceed with certification. Certification should
cost the plantation around 466 billion rupiahs with only 66 billion rupiahs of additional income
from CPO premium if the company is able to complete its certification by 2019. Total benefit of
income obtained from selling the certified products of CPO and PKO may cover the certification
expense which does not exceed the cost paid with the discrepancy of 331 billion rupiahs. This
amount can be used to establish another palm oil plantation, create jobs and contribute to domestic
products. However, the net monetary loss is close to the value obtained from timber upon land
clearing, which was at 286 billion rupiahs. Being sustainable is probably never about monetary
value but more about the responsibility of managing the sustainable oil palm plantation and the
environment that must be taken care of.
Keywords: RSPO, oil palm plantation, cost and benefit analysis, oil palm in Papua, RSPO
finansial benefit
Abstrak: RSPO merupakan salah satu label sertifikasi yang digunakan untuk menjamin praktik
kelapa sawit berkelanjutan. Penelitian ini ingin mengidentifikasi manfaat dan biaya atas skenario
operasi perkebunan kelapa sawit saat ini atau jika perusahaan mendaftar sebagai anggota RSPO.
Untuk mengidentifikasi manfaat atau biaya yang dapat timbul, penelitian ini membandingkan
arus kas, NPV, IRR, dan rasio keuntungan dan manfaat dari keadaan saat ini dengan skenario-
skenario alternatif. Simulasi proyeksi arus kas secara ex-ante dilakukan berdasarkan laporan
keuangan perusahaan dari tahun 2012-2016 untuk memperoleh gambaran kebutuhan uang
yang dibutuhkan oleh perusahaan untuk melakukan sertifikasi. Biaya kegiatan sertifikasi yang
dibutuhkan sekitar 466 milyar rupiah namun dengan hanya tambahan pendapatan sebesar 66
milyar rupiah dari premium CSPO jika perusahaan dapat menyelesaikan sertifikasi di tahun
2019. Manfaat finansial keseluruhan yang diperoleh dari penjualan CPO dan PKO bersertifikasi
tidak lebih besar dari biaya yang dikeluarkan dengan selisih sebesar 331 milyar rupiah. Jumlah
ini dapat digunakan sebagai modal awal untuk membuat sebuah perkebunan kelapa sawit baru
yang menciptakan lapangan pekerjaan. Terlebih, selisih pengeluaran tersebut setara dengan
pendapatan dari penjualan kayu hasil pembukaan lahan, yaitu 286 milyar rupiah. Mengejar
sertifikasi RSPO tidak dapat dilakukan dengan tujuan perolehan harga premium, tetapi harus
didasarkan pada keinginan melakukan pengelolaan kebun kelapa sawit yang lebih baik untuk
keberlanjutan industri dan lingkungan.
Kata kunci: RSPO, kebun kelapa sawit, analisis biaya dan manfaat, kebun kelapa sawit di
Papua, manfaat finansial RSPO
1
Corresponding author:
Email: faris.slmn@gmail.com
Copyright © 2017, ISSN: 2407-5434; EISSN: 2407-7321 219

P-ISSN: 2407-5434 E-ISSN: 2407-7321 Indonesian Journal of Business and Entrepreneurship,
Vol. 3 No. 3, September 2017
Accredited by Ministry of RTHE Number 32a/E/KPT/2017
INTRODUCTION be able to adapt with industrial dynamics. Wisena et al.

(2014) and Wisena (2015) wrote a structure of system
Indonesia has produced an increasing amount of palm element of change for sustainable palm oil management
oil in the last 10 years. It was increased by 170.9% with oil palm certification, ISPO and RSPO, as the
(FAO, 2015) and probably will steadily hike since palm initiative action.
oil industry is a good profitable industry (Svatoňová
et al. 2015; Prafitri et al. 2017). However, the average Companies go sustainable for various reasons. Bansal
Indonesian palm oil productivity has been stagnant & Roth (2000) said that there are three main reasons
since 2004. This concludes a growing area of oil palm for companies to be aware of sustainability issues of
plantation. Vijay et al. (2016) showed the existence of staying competitive, rule and law compliance, and
a developing oil palm plantation area for 91.7% since environmental awareness. For these reasons, especially
1989 where half of it comes from converted forest to stay competitive in the global palm oil market, a
areas. RSPO certification is has to be done. RSPO is currently
the best system available for sustainability (Nikoloyuk
The expanding palm oil industry also creates threats to et al. 2010; Paoli et al. 2010; Obidzinski et al. 2013). To
environments and social community around the forest become RSPO member and to have a RSPO certificate
as well as threats to biodiversity (Moreno-Peñaranda enable an oil palm company to claim for having
et al. 2015) especially when oil palm practices in most a sustainable oil palm plantation practice. RSPO
plantations have not run well. Wisena et al. (2014) and guarantees this through series of principles and criteria
Wisena (2015) wrote that palm oil plantation practices in that are in line with sustainable development. The
Indonesia were leaning more toward economic benefits application of RSPO principles and criteria regardless
rather than preserving environment or maintaining of the prior intent for certification should promote a
social aspect of the social community around the forest. better oil palm plantation practice. Moreover, to become
Ideally, the balance among the aspects of economy, RSPO member requires administrative and financial
social, and environment should be good and correlated readiness from the oil palm plantation owners. Foul
among each other (Keraf, 2002). practice of oil palm plantation management in the past
may not be sustainable, while the change to become
As the main agriculture product originated from sustainable in an oil palm plantation is started by how
Indonesia, palm oil commodity has a strategic position they produce the fresh fruit bunch (FFB) (Indriantoro
in national income. On the other hand, the land oil et al. 2012).
palm plantation required also creates questionable
sustainable practice and environment biodiversity. Sustainability research for palm oil has been increasing
Vijay et al. (2016) added that a portion of Indonesian since 2004 with the majority research related to palm
forests has been threatened for conversion to oil palm oil residue and lacks of other aspects, such as economic
i.e. 30% of the total current area of the entire oil palm benefit (Hansen et al. 2015). In previous researches,
plantation area. A similar concern also came from benefits of RSPO certification rather vary between
NGOs especially from Europe who are aware of the smallholders and private companies. Smallholders
environment. Indonesia is the 2nd largest palm oil perceive increasing amount of income due to better
importer (Rifin, 2010). In 2020, Europe has target to price, production (Kurniawati et al. 2015), and indicate
source 100% of their vegetable oil only from sustainably savings and income securities within smallholders’
certified products and that includes palm oil. Europe is farmers (Abazue et al. 2015). On the other hand, private
not alone in this. Malaysia and Indonesia have a target palm oil plantations have no significant differences in
of 50%, India of 30% and China of 10% (Newswire, FFB production before and after RSPO certification
2015). Having a credible sustainability certification (Nasution, 2013) or have economic advantage after
can support further market penetration of palm oil in joining the RSPO membership (Febrini et al. 2015;
international market (Novelli, 2016). Basiron and Foong-Keong, 2016), potentially due to
low premium value (Ruysschaert and Salles, 2014). The
A sustainable production and environment are two previous research established the advantages for RSPO
from triangle sustainable development principles from membership in Malaysia (Basiron and Foong-Keong,
Fritz & Schiefer (2008). Creating a sustainable oil palm 2016) and Sumatra, Indonesia (Nasution, 2013; Febrini
industry requires technology, strategy, and solution to et al. 2015). With the large land availability in Papua
220 Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017
and the plan to develop Eastern Indonesia for Food and is one of many aspects from cost and benefit analysis
Energy State (Obidzinski et al. 2013), it is important to conceptual steps (Boardman et al. 2014). The duration
understand how the benefits of RSPO might affect the for cost-benefit analysis was determined up to 2040
palm oil industry with more marginal suitability. based on the end of concession license. This study
projected the required cost for RSPO certification,
This research aims to analyse the cost and benefit of a recurrence activities to keep certified and benefits that
RSPO certification in PT BCA oil palm plantation as come from premium of certified palm oil products.
a point of view of financial readiness for certification.
We will view the benefit and cost expense by the Net present value (NPV) and Internal rate of return
organization through cash flow projection with two (IRR) were used to compare the general condition of
scenarios, business as usual and RSPO certification. The the oil palm plantation between scenarios.
net cost and benefit between scenarios were compared
to glimpse the opportunity from CSPO and to give
PT BCA a perspective from certification activity. The
scope of discussion is limited to financial benefit and
cost simulation spent by PT BCA upon preparing the
certification. PT BCA is an entity that owns plantation NPV was calculated from discounted annual cash flows
and mill operation. The mill operation is supplied with using i for T years. The IRR is the value of discount
fresh fruit bunch (FFB) from its own plantation. PT factor when the NPV equals to 0 (zero).
BCA believes that obtaining certification is costly and
will not bring any financial benefits.
METHODS
Table 1. Cash flow projection assumption for simulation
The research was conducted in oil palm plantation in the year of 2017–2040
owned by PT BCA, Papua Province, from October 2016
Description Unit Assumed Value
to April 2017. The data used for cash flow projection
Commodity prices
and benefit cost analysis were secondary data sourced
CPO Rp/Kg 8,318
from the company financial report. Cost related to
USD/Ton 639.85
certification was obtained from Basiron and Foong-
Kernel (PKO) Rp/Kg 16,754
Keong (2016). Palm oil premium for certified palm oil
Yield
products (CPO and PKO) was referring to information
CPO % 22.5%
from GreenPalm (2017).
Kernel (PKO) % 5.4%
Exchange rate Rp/USD 13,000
The prices of commodities of CPO and PKO were
sourced from the average of past palm oil prices (World Rp/MYR 3,000
Bank, 2017) while the exchange rate for US Dollar and Premium
Malaysian Ringgit was based on the average exchange CPO USD/Ton 2.38
rate in 2016 (Bank Indonesia, 2017). The productivity Kernel USD/Ton 31.75
of oil palm was based on the research from Sutarta dan Discount factor % 13%
Rahutomo (2013) with land suitability rate of S3. Cash Average increase rate
flow projection assumption for simulation in the year Operational cost % 1%
of 2017–2040 in Table 1. CPO and PKO price % 3%
CPO and PKO premium % 3%
The scenarios for cost benefit analysis in this research Other costs % 1%
are that the company chooses to certify by 2019 or not Other prices % 1%
to certify (Figure 1). Scenario in cost benefit analysis Source: PT BCA (2017)
Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017 221
RESULTS 11.750 ton in 2016. During this year, the company

was still in the establishment period and had no RSPO
Cost and Benefit for Establishment Period certification yet.
PT BCA started the operational activity to build The oil palm plantation spent 962 million rupiahs in
oil palm plantation in 2011 with land clearing and the first five year, not including tax and depreciation.
plantation arrangement. Planting activity started in It was allocated as investment cost, operational cost
2012 and finished in 2015 with total of 11,821 ha area. for plantation and mill, and other costs related to oil
Palm oil plants are divided based on its age; therefore, palm laws and regulation. Earnings from 2011 to 2016
based on the planting activity there are four age-classes came from two main sources; the timber resulted from
of palm oil plants. Based on the planting report, as wide land clearing and from CPOs and PKOs. The price of
as 3,000 ha areas of palm oil were planted in 2012, timber was regulated in Regulation of Ministry of Trade
2013, and 2014, while 2,821 ha areas were planted in Republic Indonesia No. 12/M-DAG/PER/3/2012 for
2015. Different age-class produces different amount of Rp1,150,000/m3. The average volume extracted, based
fresh fruit bunch (FFB) and has different rate of CPO on the plantation record, was 15 m3/ha. The detail of
yield. First harvest was carried out in 2015 with total cost and earnings within the period of 2012–2016 is
production at about 3,900 ton CPO and increased to given in Table 2.
Figure 1. Research framework
Table 2. Operational cost and earnings of PT BCA in the establishment period

Years
Description 2012 2013 2014 2015 2016
in thousand rupiahs
Income 0 52,267,500 52,790,175 96,754,994 209,026,676
Operating Cost 0 4,527,985 6,648,953 23,170,997 66,389,001
Other Costs 0 34,587,585 34,588,176 34,588,773 32,529,175
Investment 25,090,125 99,176,132 202,413,096 241,047,629 157,625,113
Depressiation dan amortissation 0 3,727,988 9,688,541 16,629,314 20,859,188
Tax 0 399,395 579,084 692,799 688,383
Cash-flow -25,090,125 -90,151,584 -201,127,674 -219,374,516 -69,064,182
Net cash-flow -46,254,549 -147,060,035 -290,310,542 -280,186,255 -78,051,850
Source: PT BCA (2017)
Cost and Benefit Projection without RSPO help for oil palm farmers to be certified, and product
Certification segregation. Meanwhile, the benefits of successful
RSPO certification come from reduced social conflicts,
Without conducting the certification, the oil palm better oil palm plantation operation, reduced worker
plantation is projected to be 8,236 trillion rupiahs and turn-over, increased moral of workers, access to
spends approximately 3,525 trillion rupiahs. NPV certified sustainable palm oil (CSPO) markets, and
calculated from oil palm plantation activities from 2012 better access of monetary capital.
to 2040 projects the value of 3.814 trillion rupiahs with
IRR at 34.86% (Table 3). The cash flow movement for There are two main categories of costs of RSPO (Tabel
non-certification scenario is illustrated in Figure 2. 4) used to project the costs of certification and post-
certification. Certification cost is spent once in the
Table 3. Financial feasibility index of PT BCA oil certification year while the post-certification cost is
palm plantation activity for 2012–2040 spent annually after the oil palm plantations obtain the
without RSPO certification. sustainability certificate. Human resource training cost
Description Value is planned to be spent in two years and corrective action
IRR 34.86% is projected to be spent in three years. The price of CPO
NPV Rp3,814,544,646,853 for projection after RSPO certification is assumed to be
B/C 2.33 similar with previous scenario considering the fact that
the CPO prices are not driven by certification status,
Cost and Benefit Projection with RSPO but significantly by stocks (Abdullah, 2013). However,
Certification the increased price of CPO due to CSPO premium price
is applied to the simulation.
Levin et al. (2012) conducted a research to identify the
additional costs and benefits for companies or oil palm After obtaining RSPO certificate, PT BCA can sell
plantation owners after they obtain RSPO certificate. their certified sustainable palm oil products with
WWF (World Wildlife Fund), FMO (The Netherlands added premium. Total of discounted earnings from the
Development Finance Company), and CDC (The UK’s added premium was 66,921 billion rupiahs, and total
Development Finance Institution) studied eight oil discounted earnings up to year 2040 were calculated
palm plantations in Indonesia, Malaysia, and Western at 8,303 trillion rupiahs. The oil palm plantation spent
Africa with different kinds of sizes and ownerships. 3,875 trillion rupiahs in the same duration. With
This research concluded that the costs in RSPO certification scenario in place, the NPV of PT BCA was
certification are needed for various purposes such as: estimated at 3,531 trillion rupiahs with IRR at 32.41%
identification and management for high conservation (Table 5).
value (HCV) area, audit and certification, hiring and
Figure 2. Historical and projected cash flow for 2014–2040 without certification
Table 4. Certification and post-certification cost for The company is projected to earn 26.06 billion rupiahs
RSPO from RSPO premium with total discounted earnings at
Assumed value 8,262 trillion rupiahs. Expenditure wise, the company
Description
(Rp) is projected to expense 3.647 trillion rupiahs up to year
RSPO certification costs 2040 (Table 6).
RSPO registration fee 28,000,000
Pre-certification Other possibility is to delay the certification by 5 years.
HCV assessment (14.034 ha) 544,799,880 By doing this, the calculated NPV decreased to 3,640
Social environment impact analysis 137,673,540 trillion rupiahs with IRR at 33.93% (Table 7). Total
Certification activity discounted earnings from premium with this scenario
Initial certification with staffing 530,064,180 are 53,76 billion rupiahs with total discounted earnings
Training of staff and implementers 2,168,253,000 up to year 2040 at 8.29 trillion rupiahs and discounted
Corrective action 7,865,074,620 total expenditure is at 3,753 trillion rupiahs.
Compensation and remediation 456,105,000,000
Post-RSPO certification Benefit-Cost Analysis of RSPO Certification
RSPO membership 28,000,000
Re-certification 291,345,840 Based on the cashflow projection before and after RSPO
Trainings 1,192,749,660
certification, the oil palm financial condition in general
will decline in the year of certification. There is cash-
Survey, conflict management, and 4,210,200,000
maintenance out projected to happen by 715.54 billion rupiahs with
Source: Basiron and Foong-Keong (2016) ( 1 EUR = projected income at 699.46 billion rupiahs. 65.82% of
Rp14.000; 1 MYR = 3.000) the total expensed money that year is to be spent for
certification in which much of certification expense will
Table 5. Financial feasibility index of PT BCA be posted for remediation and compensation because
for the period of 2012–2040 with RSPO PT BCA cleared the area for oil palm plantation after
certification year 2005 without conducting HCV assessment. This
Description Value liability is valued for 2.500 USD/ha cleared area by
IRR 32.41% RSPO (RSPO 2015).
NPV Rp3,531,309,509,650
B/C 2.25 The difference between net income from certification
scenario and without certification scenario was 66.92
billion rupiahs or 1.9% of the total NPV. This amount is
Total calculated cost that should be spent for
an insignificant impact to the oil palm plantation income
certification and re-certification in this scenario up to
especially when the difference of net expenditure
year 2040 is at 398.87 billion rupiahs. The cashflow
between the two scenarios is at 350.16 billion rupiahs.
movement is illustrated at Figure 3.
Although, the difference of net expenditure is somewhat
near to the total income from land clearing the oil
Cost and Benefit Projection with Delayed RSPO
palm plantation earns by selling its timber. The total
Certification
net value of harvested timber from land clearing is at
286.78 billion rupiahs. This value amount to a direct
Generally, oil palm produces an increasing amount of
value of forest (Phelps et al. 2014), considering to
FFB annually until the age of 12 or 13 years before
the exploitation nature. Other values, such as indirect
then decreasing until the end of plantation age at 25
values and non-use values might have made the cleared
years (Sutarta and Rahutomo, 2013). Based on this
forest value similar or higher than the compensation
estimation, the highest peak of palm oil production will
cost. The absence of certification benefit is in line with
happen in 2027. Assuming the preparation for RSPO
the previous researches by Nasution (2013), Febrini et
starts in 2025, and certification is conducted in 2027,
al. (2015), and Basiron and Foong-Keong (2016). The
with every other cost unchanged, the NPV analysis
minor benefit from CSPO premium is also confirmed
of the oil palm company is calculated at 3.749 trillion
by the research of Ruysschaert and Salles (2014).
rupiahs with IRR at 34.65%. Historical and projected
cash flow for 2014–2040 with certification postponed
for 10 years and 5 years in Figure 4.
Figure 3. Historical and projected cash flow for the period of 2014–2040 with certification
(a)
(b)
Figure 4. Historical and projected cash flows for the year of 2014–2040 with certification postponed for 10 years
(a) and 5 years (b)
Table 6. Financial feasibility index of PT BCA oil a detailed New Planting Procedure analysis from any
palm plantation activity for 2012–2040 with eligible body to figure out the real compensation,
10 years delayed RSPO certification remediation, and protected areas in palm oil plantation
Description Value management area. By the principal of benefit-cost
IRR 34.65% analysis, the chosen scenario should be the one with
NPV Rp3,718,670,124,133 the least cost or most benefit from other alternatives.
B/C 2.26 With the amount of cost incurred by the certification,
the company and its group may consider not to certify
PT BCA and establish a new palm oil plantation
Table 7. Financial feasibility index of PT BCA oil
specifically built to be certified instead.
palm plantation activity for the period of
2012–2040 with 5 years delayed RSPO
certification
CONCLUSIONS AND RECOMMENDATIONS
Description Value
IRR 33.93% Conclusions
NPV Rp3,640,429,983,767
B/C 2.26 This research may give insight on RSPO certification
effects for PT BCA and other private palm oil
Postponing the certification also will affect the company plantations, especially from the financial point of view.
much. The change in the financial indicator shows that However, it is best for PT BCA to conduct the RSPO
the difference between having certification as planned certification for competitive advantage and market
(2019), 5-year delay (2022) or 10-year delay (2027) only defence in the future, especially when supply drives
gives minor bump to the NPV and IRR. By delaying the price of CPO.
the certification to year 22, the NPV will increase by
109.12 billion with IRR going up to 1.52%. A 10-year The difference between NPV in both scenarios is at
certification lag will increase NPV as much as 187.36 283.24 billion rupiahs with no-certification scenario
billion and IRR 2.24%. Total income which actually giving the higher monetary value than certification
drops as delaying the certification is equal to the setback scenario. This is caused by the fact that the amount
of the extra income from the premium. However, since of money spent in certification cannot be covered by
the addition from premium is insignificant, the setback the premium alone. The total premium obtained from
from decreasing amount of premium is also minor. selling certified palm oil product only results in an
The possible non-monetary benefits will take effects additional income amounting to 66.29 billion rupiahs.
few years after certification takes place. The corrective This makes the certification scenario is not appealing
action to create better human resource management and financially. However, the corrective action resulting
better agriculture practice should be able to improve from certification and the annual assessment may bring
the overall practice in PT BCA. Annual or biennial non-financial benefits to the oil palm plantation such as
internal audit before routine RSPO check-ups ensures better agriculture practice and better human resource
that better application of operational aspect takes place organization. Postponing the certification does not give
and is permanently installed. Meanwhile, the yield of any significant benefits financially.
palm oil will not increase much due to the limitation of
land suitability, and the general practice may be better Recommendations
and improve moral of the workers.
It is known that voluntary action towards sustainability
Managerial Implication such RSPO is created with sustainability in mind.
Nonetheless, the argument of benefit obtained by the
The major expense for the company in certifying private palm oil plantation is leaning towards next to
their palm oil products was for the compensation and none. An objective study with larger samples contrasting
remediation which cover the new planting procedures the benefit and cost differences between certified and
required by the RSPO. Prior to adjusting the company not-certified private palm oil plantations is encouraged
expenditure for certification, it is important to obtain to clarify this issue.
The decreasing financial net benefit after certification produksi minyak sawit berkelanjutan. Jurnal
can be further studied with additional consideration to Manajemen & Agribisnis 9(2):108–116.
other environmental value other than the direct value. Keraf AS. 2002. Etika Lingkungan. Jakarta: Penerbit
These values can be used as the vocal argument to Buku Kompas.
persuade oil palm plantation or farmers to conduct Kurniawati N, Glasbergen P, Offermans A. 2015.
better practice to pursue sustainability with additional Sustainability certification and palm oil
benefit from premium, not the other way around. smallholders ’livelihood : a comparison
between scheme smallholders and independent
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Cost and Benefit Analysis of Rspo Certification (Case Study in PT Bca Oil Palm Plantation in Papua) Faris Salman, Mukhamad Najib, and Setiadi Djohar

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Indonesian Journal of Business and Entrepreneurship, Vol. 3 No.

COST AND BENEFIT ANALYSIS OF RSPO CERTIFICATION

Faris Salman)1, Mukhamad Najib), and Setiadi Djohar)

School of Business, Bogor Agricultural University

Pajajaran Road, Bogor 16151

Copyright © 2017, ISSN: 2407-5434; EISSN: 2407-7321 219

INTRODUCTION be able to adapt with industrial dynamics. Wisena et al.

RESULTS 11.750 ton in 2016. During this year, the company

Figure 1. Research framework

Table 2. Operational cost and earnings of PT BCA in the establishment period

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