Eco-Friendly Paving Block

An increase in the amount of land used for roads, parking areas and buildings roofed in urban areas, making as many as 95% of surface water flows directly into the sea and only 5% are absorbed into the soil. This then led to the decline in water reserves in the soil in urban areas, such as Jakarta. The reduction in groundwater reserves impact on land subsidence. This situation is getting worse during the rainy season which resulted in a lot of waterlogging. Departing from these problems, PT. Green Concrete Indonesia plans to produce GREENCON Paving Block, a building material solutions that can maintain its environmental stability. The paving block is designed to cover the road surfaces through its high porosity (pores) which allow the water pass through. It aims to be able to maintain the green space area of a region, managing urban drainage systems to keep ground water reserves, maintaining the high ground, and avoid waterlogging. GREENCON Paving Block classified into Grade B Paving Block according to SNI. The product differentiation is in its high porosity that has absorptive capacity about 70%- 100%, so it allows the water pass through back to the ground. Grade B paving block can be used in pedestrian, parking lots, parks, and any street in real estate area that rarely passed by heavy transports. The company target markets are residential developers in Jakarta which has concern to create a better environment through the construction process. The company target these segments because they have a huge market potential, without limiting the opportunity of other segments in the future. It will grab 15% of market share in the industry at the fifth year. The factory will be located in Citereup, Bogor, while the head office will be located in Kelapa Gading Timur, Jakarta Utara. This location was chosen by its accessibility, land price and wage rate. The company size is medium, which has 50-90 employees in the first 5 years. The total capital for this company is Rp 14,200,000,000.00, where financing comes from 100% equity with Rp 38,14 billion of NPV and IRR 33% (4 years of payback period, ROA reaches 45.4% and ROE reaches 48.3% at the end of the fifth year). Dividends are also paid out to shareholders when the company reaches a net profit margin of 10%.