Handy Twinosa, Agam Marsoyo


The main challenge of commercial development is to arrange the capital. Commercial real estatedevelopments require a large amount of capital upfront, as a one-time investment, and the returnon investment occurs over a long period of time. In this case, PT. Dharma Development, Tbk. hasbeen facing a capital problem for this project. The purpose of this research is to explore somealternative financing options for the commercial real estate developers, and suggest the mostsuitable financing options for the case of this research. Other than that, the primary objective isto answer the research question “what is the alternative project financing model that feasible forthe company and also aligns with the corporate’s fundamental strategy”. With the characteristicsof large-scale investment (long pay-back period and capital intensive), the financing ofcommercial real estate is even more difficult than residential real estate and also become crucialproblem for the development of commercial real estate. To get better understanding the researchwill use several analysis techniques. First is to understand what are the available and financingpractice in other countries and to review what is available in Indonesia. Exploration of financingpractice in Indonesia relating to the regulation, tax and system capability become the focus of thisresearch. Second, this research discusses industry specific matter using several financial tools tosupport the decision making. Discounted rate will be used to do a valuation for every stakeholdersin the project. It expected could determine how the capital structure would arrange. Thetechnique use is capital budgeting. Capital budgeting is a process to analyze, evaluate and makedecision. Finally, at the end of this final project writing, the author will provide a recommendationto find the best option to arrange this project in order to get highest profitability of this project.

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