Businnes Plan

Construction Engineering Business Plan


Construction Engineering Business Plan


Indonesia EEC (U.S. Energy Engineering & Construction) is a subsidiary company that offers services such as engineering, design and procurement, construction and project management, environmental consulting and management consulting, quality assurance, quality control, information management and operations maintenance and process technology development.

Management of the U.S. EEC wants Indonesia EEC’s financial performance to be good. Indonesia EEC, a subsidiary of U.S. EEC has the following objectives regarding the products and service lines for EPC power generation projects and power delivery projects.

  1. Increase customer awareness over the planning period.
  2. A joint venture can be established with a trusted local company, which will reduce competition and lower risks. It also helps to lower prices.
  3. EPC prospects are not the only ones to pursue.
  4. Utilizing the joint venture company as the main entity of EEC to conduct business in Indonesia, and to provide all aspects of energy engineering services.

2.1 Company Ownership

Indonesia EEC was founded as an Indonesian Perseroan Terbatas (PT.) Corporation based in Jakarta (Indonesia) under the Foreign Investment Laws of Republic of Indonesia. The company is owned entirely by the Energy Engineering & Construction company of U.S (U.S. EEC).

2.2 Company history

EEC has been operating a Jakarta-based representative office since the 1980s to establish its presence in Indonesia’s market. It saw the need to establish a presence in Indonesia as both a local business that can meet the needs of potential customers and its longer-term, larger U.S. customers who invest in Indonesia and the Southeast Asia Region.

Indonesia EEC was founded in 1996. U.S. EEC is the sole owner of all shares.

Past Performance
1996 1997 1998
Sales $50,000,000 $65,000,000 $87,500,000
Gross Margin $23,000,000 $29,900,000 $40,250,000
Gross Margin % 46.00% 46.00% 46.00%
Operating Expenses $4,800,000 $4,850,000 $4,645,000
Collection Period (days). 72 63 63
Balance Sheet
1996 1997 1998
Current Assets
Cash $15,000,000 $19,500,000 $26,250,000
Accounts Receivable

$6,112,981 $7,946,875 $10,697,716 Other Current Assets $525,931 $683,710 $920,380 Total current assets $21,638,912 $28,130,585 $37,868,096 Long-term Assets Long-term Assets $710,837 $924,089 $1,243,965 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $710,837 $924,089 $1,243,965 Total assets $22,349,749 $29,054,674 $39,112,061 Current Liabilities Accounts Payable $2,478,188 $3,221,644 $4,336,828 Current Borrowing $0 $0 $0 Other Current Liabilities (interest not paid) $0 $0 $0 Total Current Liabilities $2,478,188 $3,221,644 $4,336,828 Long-term Liabilities $0 $0 $0 Total Liabilities $2,478,188 $3,221,644 $4,336,828 Paid-in capital $1,996,500 $3,295,460 $4,743,900 Retained earnings $116,967 $952,048 $1,781,333 Earnings $17,758,094 $21,585,522 $28,250,000 Total Capital $19,871,561 $25,833,030 $34,775,233 Total Capital and Liabilities $22,349,749 $29,054,674 $39,112,061 Other inputs Payment Days 30 30 30 Credit Sales $31,098,365 $40,427,875 $54,422,140 Receivables Turnover 5.09 5.09 5.09

2.3 Facilities and Company Locations

The office is situated in downton Jakarta. This location provides convenience, being near the airport, but also allows the company room to grow. Indonesia EEC occupies an area of 800-square meters and has offices for each department.