STRATEGIC ADOPTION OF SOLAR PHOTOVOLTAIC SYSTEM FOR SUSTAINABLE ENERGY TRANSITION: A COMPARATIVE STUDY OF BUYING VERSUS LEASINGAT PT XYZ INDONESIA IN AUTOMOTIVE INDUSTRY

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BANGUN SINAGA, RENWARD (2025) STRATEGIC ADOPTION OF SOLAR PHOTOVOLTAIC SYSTEM FOR SUSTAINABLE ENERGY TRANSITION: A COMPARATIVE STUDY OF BUYING VERSUS LEASINGAT PT XYZ INDONESIA IN AUTOMOTIVE INDUSTRY. Graduate thesis, Institut IPMI.

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Abstract

The transition to renewable energy in Indonesia remains slow, largely due to the high upfront investment costs that create a significant barrier to implementation. This hinders efforts to reduce greenhouse gas emissions and accelerate the shift to cleaner energy sources. In response, this study evaluates the feasibility of investing in Solar PV by examining both buying and leasing options. The research was driven by three main questions, focusing on feasibility, strategy selection, and alignment with sustainability goals. It uses a qualitative-descriptive approach supported by interviews, energy audits, and secondary data from reports, financial records, and regulations. PESTLE and SWOT analyses are used to develop a strategic roadmap. Financial modeling by Transaction Cost Economics Theory and the Resource- Based View Theory, sensitivity, and environmental impact analyses, helps assess risks, cost-effectiveness, and sustainability strategy. Based on result of research, as a financial perspective the Solar PV investment is feasible with a positive NPV of IDR 2.19 billion and an IRR of 15.6%, exceeding the 8% hurdle rate. However, external risks such as electricity price volatility, technical degradation, and government regulation on capacity were identified through sensitivity analysis. Operationally, PT XYZ faces internal capability gaps, which require improvement through training and partnerships. When comparing buying versus leasing, leasing is the more suitable short- to medium-term strategy due to its lower upfront risk and capital requirements. Leasing also allows the company to build internal expertise before considering long-term ownership. Strategically, the Solar PV project contributes to both private gains and public environmental benefits, aligning with the “When Does It Pay to Be Green?” framework. This research expands theory by showing that TCE and RBV can manage not only financial but also environmental and social risks. It offers practical tools to help companies choose the best solar PV investment model and manage risks effectively. For government, it highlights the need for better incentives, clear rules, and support for local skills. Future research should explore other renewable technologies, long-term impact, and social benefits. Keywords: renewable energy, photovoltaic, capital budgeting, sustainability

Item Type: Thesis (Graduate)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Thesis > Master of Business Administration
Depositing User: Dwi Selviyana
Date Deposited: 16 Dec 2025 08:56
Last Modified: 16 Dec 2025 08:56
URI: http://repository.ipmi.ac.id/id/eprint/2878

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