Provider Asphalts in Bag

Growing Road infrastructure requires a large volume of asphalt. The realization use of asphalt in 2010 about 1 million tons of asphalt. However, the asphalt distribution do not reach evenly throughout the archipelago due to the insufficient condition of the highway infrastructure to be penetrated by heavy trucks asphalt transportation. Therefore, for areas that can not be accessed by the distribution of bulk of asphalt pavement is fulfill by asphalt in drum. However, asphalt in drum packaging is less efficient and less environmentally friendly, because there is a waste asphalt is left in the drum and drum packaging prices are more expensive, so the JIP offers a solution to the above problem using the asphalt in the form of packaging bags which the additional benefits such as: Easy of handling, Easy to transport, Easy Storage, There is no residual left in the bag, More environmentally. Common strategy of JIP is cost focus that emphasize competitive advantage trhough cost efficiencies with a focus on the specific target market segment, which is road construction contractors in areas that can't access by asphalt bulk and local government. To support market penetration as a new product- an option flank attack strategy have been chosen to gain market share 10.7% within five years and MROI over 1300%. To support the cost focus strategy, JIP will be using a floating barge to produce asphalt in bag placed near the sources of raw materials makes of the cost of production and distribution more efficient than ashpalt drum. Value of the initial investment required to run this business is 25 millions rupiah, nearly 35% of which is used to invest in the barge and asphalt in bag packaging system. Financial analysis show the business plan is very promising with the level for 5 years IRR of 33.6% expected, and positive NPV payback period of less than 5 years.