Depreciation

In accountancy, depreciation refers to two aspects of the same concept:

The decrease in value of assets (fair value depreciation), and

The allocation of the cost of assets to periods in which the assets are used
(depreciation with the matching principle).

The former affects the balance sheet of a business or entity, and the latter affects the net
income that they report. Generally the cost is allocated, as depreciation expense, among the
periods in which the asset is expected to be used. This expense is recognized by businesses
for financial reporting and tax purposes. Methods of computing depreciation, and the periods
over which assets are depreciated, may vary between asset types within the same business
and may vary for tax purposes. These may be specified by law or accounting standards,
which may vary by country. There are several standard methods of computing depreciation
expense, including fixed percentage, straight line, and declining balance methods.
Depreciation expense generally begins when the asset is placed in service.

EQUIPMENTS
Water storage
tank
Sorbitol liquid
storage tank
Hydrogen
pressure vessel
Sorbitol silo
By products
container
Mixing Tank
Agitator
Hydrolysis tank
Hydrogenation
tank
Heater before
hydrolysis
Heater after
hydrogenation
Cooler after
hydrogenation
Heater before
spray dryer
Packaging
sterilizer (glass)

Rp
642.780.932
Rp
1.270.739.278
Rp
1.386.123.057
Rp
25.635.085
Rp
642.780.932
Rp
964.555.950
Rp
109.878.052
Rp
1.996.897.326
Rp
2.533.387.012
Rp
1.406.630.254
Rp
1.311.693.219
Rp
1.367.564.952
Rp
1.096.937.710
Rp
912.702.225

Rp
514.224.746
Rp
1.016.591.422
Rp
1.108.898.446
Rp
20.508.068
Rp
514.224.746
Rp
771.644.760
Rp
87.902.442
Rp
1.597.517.861
Rp
2.026.709.609
Rp
1.125.304.203
Rp
1.049.354.575
Rp
1.094.051.962
Rp
877.550.168
Rp
730.161.780

Rp
448.403.978
Rp
886.467.720
Rp
966.959.445
Rp
17.883.035
Rp
448.403.978
Rp
672.874.231
Rp
76.650.929
Rp
1.393.035.575
Rp
1.767.290.779
Rp
981.265.265
Rp
915.037.189
Rp
954.013.310
Rp
765.223.747
Rp
636.701.072

Rp
402.487.411
Rp
795.693.426
Rp
867.942.798
Rp
16.051.812
Rp
402.487.411
Rp
603.971.910
Rp
68.801.874
Rp
1.250.388.732
Rp
1.586.320.204
Rp
880.783.702
Rp
821.337.381
Rp
856.322.347
Rp
686.864.835
Rp
571.502.882

Rp
369.515.642
Rp
730.510.220
Rp
796.840.924
Rp
14.736.848
Rp
369.515.642
Rp
554.494.531
Rp
63.165.625
Rp
1.147.956.887
Rp
1.456.368.852
Rp
808.629.901
Rp
754.053.423
Rp
786.172.421
Rp
630.596.868
Rp
524.685.366

Rp
345.299.065
Rp
682.635.503
Rp
744.619.157
Rp
13.771.054
Rp
345.299.065
Rp
518.155.177
Rp
59.026.002
Rp
1.072.724.384
Rp
1.360.924.263
Rp
755.635.532
Rp
704.635.778
Rp
734.649.825
Rp
589.270.071
Rp
490.299.586

Rp
327.195.449
Rp
646.845.742
Rp
705.579.668
Rp
13.049.054
Rp
327.195.449
Rp
490.988.923
Rp
55.931.340
Rp
1.016.482.732
Rp
1.289.572.637
Rp
716.018.468
Rp
667.692.570
Rp
696.133.016
Rp
558.375.349
Rp
464.593.767

Rp
313.471.878
Rp
619.715.066
Rp
675.985.512
Rp
12.501.737
Rp
313.471.878
Rp
470.395.355
Rp
53.585.409
Rp
973.848.356
Rp
1.235.484.041
Rp
685.986.476
Rp
639.687.513
Rp
666.935.081
Rp
534.955.389
Rp
445.107.292

Rp
302.953.507
Rp
598.920.878
Rp
653.303.202
Rp
12.082.248
Rp
302.953.507
Rp
454.611.506
Rp
51.787.381
Rp
941.171.428
Rp
1.194.028.075
Rp
662.968.590
Rp
618.223.162
Rp
644.556.453
Rp
517.005.265
Rp
430.171.970

Packaging
sterilizer (plastic
pouch)
Decanter 01
Decanter 02
Evaporator
Spray Dryer
GAC Adsorber

Rp
351.039.317

Rp
280.831.454

Rp
244.885.028

Rp
219.808.801

Rp
201.802.064

Rp
188.576.764

Rp
178.689.910

Rp
171.195.112

Rp
165.450.758

Rp
854.909.288
Rp
664.179.810
Rp
1.103.868.858
Rp
3.548.986.734
Rp
428.662.667
Rp
128.052.378
Rp
386.973.405
Rp
486.437.382

Rp
683.927.431
Rp
531.343.848
Rp
883.095.087
Rp
2.839.189.388
Rp
342.930.134
Rp
102.441.902
Rp
309.578.724
Rp
389.149.906

Rp
596.384.720
Rp
463.331.836
Rp
770.058.915
Rp
2.475.773.146
Rp
299.035.077
Rp
89.329.339
Rp
269.952.648
Rp
339.338.718

Rp
535.314.924
Rp
415.886.656
Rp
691.204.883
Rp
2.222.253.976
Rp
268.413.885
Rp
80.182.015
Rp
242.309.496
Rp
304.590.433

Rp
491.461.926
Rp
381.817.221
Rp
634.581.379
Rp
2.040.206.930
Rp
246.425.419
Rp
73.613.504
Rp
222.459.503
Rp
279.638.385

Rp
459.253.477
Rp
356.794.448
Rp
592.993.453
Rp
1.906.499.929
Rp
230.275.683
Rp
68.789.169
Rp
207.880.397
Rp
261.312.004

Rp
435.175.368
Rp
338.088.143
Rp
561.903.518
Rp
1.806.544.425
Rp
218.202.605
Rp
65.182.636
Rp
196.981.477
Rp
247.611.729

Rp
416.922.790
Rp
323.907.698
Rp
538.335.576
Rp
1.730.772.460
Rp
209.050.525
Rp
62.448.678
Rp
188.719.475
Rp
237.226.140

Rp
402.933.183
Rp
313.039.159
Rp
520.272.032
Rp
1.672.697.373
Rp
202.035.953
Rp
60.353.248
Rp
182.387.100
Rp
229.266.152

Rp
797.013.838

Rp
694.996.067

Rp
623.828.469

Rp
572.724.441

Rp
535.190.372

Rp
507.130.983

Rp
485.860.368

Rp
469.557.599

Rp
879.748.678

Rp
767.140.847

Rp
688.585.625

Rp
632.176.690

Rp
590.746.359

Rp
559.774.236

Rp
536.295.603

Rp
518.300.509

Rp
423.557.977

Rp
369.342.556

Rp
331.521.878

Rp
304.363.606

Rp
284.416.832

Rp
269.505.199

Rp
258.201.332

Rp
249.537.533

High Pressure
Separator
Crusher (jaw
stone crusher)
Grinder (maize
flour milling)
Pump 1 (Water
Rp
from storage
996.267.297
tank)
Pump 2
(Cellulose
Rp
solution from
1.099.685.848
mixing tank)
Pump 3 (Glucose
solution from
Rp
hydrolysis
529.447.471
reactor)

Pump 4 (Glucose
Rp
solution from
218.824.578
decanter)
Pump 5 (Sorbitol
Rp
solution from
1.489.894.012
evaporator)
Rp
Kompresor
1.037.179.054
Rp
Belt conveyor 1
1.941.407
Rp
Belt conveyor 2
1.941.407
Electric motor
Rp
for conveyor belt 64.619.318
Packaging
Rp
machine
1.314.291.204
(powder)
Packaging
Rp
machine (liquid) 168.498.872
Rp
Pouch maker
379.122.463
Rp
Pouch sealer
393.164.035
Glass bottle
Rp
sealer
252.748.308
Waste Water
Rp
Treatment
6.579.579.719
Rp
Faximille
4.500.000
Rp
Computer
320.000.000

Rp
175.059.662

Rp
152.652.025

Rp
137.020.458

Rp
125.795.742

Rp
117.551.592

Rp
111.388.503

Rp
106.716.531

Rp
103.135.718

Rp
1.191.915.210

Rp
Rp
1.039.350.063 932.920.617

Rp
856.495.760

Rp
800.364.454

Rp
758.402.306

Rp
726.592.607

Rp
702.212.205

Rp
829.743.243
Rp
1.553.125
Rp
1.553.125
Rp
51.695.454

Rp
723.536.108
Rp
1.354.325
Rp
1.354.325
Rp
45.078.436

Rp
649.446.010
Rp
1.215.642
Rp
1.215.642
Rp
40.462.404

Rp
596.243.393
Rp
1.116.057
Rp
1.116.057
Rp
37.147.724

Rp
557.167.986
Rp
1.042.915
Rp
1.042.915
Rp
34.713.211

Rp
527.956.337
Rp
988.236
Rp
988.236
Rp
32.893.239

Rp
505.812.244
Rp
946.787
Rp
946.787
Rp
31.513.596

Rp
488.840.001
Rp
915.018
Rp
915.018
Rp
30.456.175

Rp
1.051.432.963

Rp
916.849.544

Rp
822.964.151

Rp
755.546.927

Rp
706.031.404

Rp
669.015.025

Rp
640.954.501

Rp
619.447.636

Rp
134.799.098
Rp
303.297.970
Rp
314.531.228
Rp
202.198.647
Rp
5.263.663.775
Rp
3.600.000
Rp
256.000.000

Rp
117.544.813
Rp
264.475.830
Rp
274.271.231
Rp
176.317.220
Rp
4.589.914.812
Rp
3.139.200
Rp
223.232.000

Rp
105.508.224
Rp
237.393.505
Rp
246.185.857
Rp
158.262.337
Rp
4.119.907.535
Rp
2.817.746
Rp
200.373.043

Rp
96.864.991
Rp
217.946.229
Rp
226.018.312
Rp
145.297.486
Rp
3.782.404.710
Rp
2.586.916
Rp
183.958.484

Rp
90.516.847
Rp
203.662.905
Rp
211.205.976
Rp
135.775.270
Rp
3.534.521.035
Rp
2.417.380
Rp
171.902.580

Rp
85.771.157
Rp
192.985.103
Rp
200.132.700
Rp
128.656.736
Rp
3.349.210.338
Rp
2.290.640
Rp
162.889.934

Rp
82.173.654
Rp
184.890.721
Rp
191.738.526
Rp
123.260.481
Rp
3.208.734.275
Rp
2.194.563
Rp
156.057.835

Rp
79.416.364
Rp
178.686.818
Rp
185.304.849
Rp
119.124.545
Rp
3.101.067.019
Rp
2.120.926
Rp
150.821.403

Photocopy
Machine +
Printer +
Scanner
Central AC
Dispenser
Office Desk
Office Chair
Cupboard
Locker
Sofa
Meeting Desk
and Chairs
Receptionist
Desk
Guest Chair and
Table
White Board
Genset
Company Car
Distribution Car

Rp
22.500.000

Rp
18.000.000

Rp
15.696.000

Rp
14.088.730

Rp
12.934.581

Rp
12.086.900

Rp
11.453.199

Rp
10.972.817

Rp
10.604.630

Rp
166.250.000
Rp
3.000.000
Rp
35.000.000
Rp
6.125.000
Rp
52.500.000
Rp
4.350.000
Rp
25.000.000
Rp
6.000.000
Rp
2.200.000
Rp
4.000.000
Rp
1.500.000
Rp
1.753.050.000
Rp
600.000.000
Rp

Rp
133.000.000
Rp
2.400.000
Rp
28.000.000
Rp
4.900.000
Rp
42.000.000
Rp
3.480.000
Rp
20.000.000
Rp
4.800.000
Rp
1.760.000
Rp
3.200.000
Rp
1.200.000
Rp
1.402.440.000
Rp
480.000.000
Rp

Rp
115.976.000
Rp
2.092.800
Rp
24.416.000
Rp
4.272.800
Rp
36.624.000
Rp
3.034.560
Rp
17.440.000
Rp
4.185.600
Rp
1.534.720
Rp
2.790.400
Rp
1.046.400
Rp
1.222.927.680
Rp
418.560.000
Rp

Rp
104.100.058
Rp
1.878.497
Rp
21.915.802
Rp
3.835.265
Rp
32.873.702
Rp
2.723.821
Rp
15.654.144
Rp
3.756.995
Rp
1.377.565
Rp
2.504.663
Rp
939.249
Rp
1.097.699.886
Rp
375.699.456
Rp

Rp
95.572.181
Rp
1.724.611
Rp
20.120.459
Rp
3.521.080
Rp
30.180.689
Rp
2.500.686
Rp
14.371.757
Rp
3.449.222
Rp
1.264.715
Rp
2.299.481
Rp
862.305
Rp
1.007.776.311
Rp
344.922.157
Rp

Rp
89.308.762
Rp
1.611.587
Rp
18.801.845
Rp
3.290.323
Rp
28.202.767
Rp
2.336.801
Rp
13.429.889
Rp
3.223.173
Rp
1.181.830
Rp
2.148.782
Rp
805.793
Rp
941.730.683
Rp
322.317.338
Rp

Rp
84.626.411
Rp
1.527.093
Rp
17.816.087
Rp
3.117.815
Rp
26.724.130
Rp
2.214.285
Rp
12.725.776
Rp
3.054.186
Rp
1.119.868
Rp
2.036.124
Rp
763.547
Rp
892.356.873
Rp
305.418.627
Rp

Rp
81.076.922
Rp
1.463.042
Rp
17.068.826
Rp
2.987.045
Rp
25.603.239
Rp
2.121.411
Rp
12.192.018
Rp
2.926.084
Rp
1.072.898
Rp
1.950.723
Rp
731.521
Rp
854.928.713
Rp
292.608.441
Rp

Rp
78.356.432
Rp
1.413.951
Rp
16.496.091
Rp
2.886.816
Rp
24.744.136
Rp
2.050.228
Rp
11.782.922
Rp
2.827.901
Rp
1.036.897
Rp
1.885.268
Rp
706.975
Rp
826.242.066
Rp
282.790.131
Rp

3.000.000.000

2.400.000.000

2.092.800.000 1.878.497.280 1.724.610.783 1.611.586.691 1.527.093.134 1.463.042.206 1.413.950.656

From the table above, we can get the Depreciation Cost is Rp 387.133.984.727 and the
Salvage Value is Rp 18.698.289.885.
Equity
CAPEX
BANK
INVESTOR

Bank

Investor

Rp

193.135.232.826
60%
10,50%
40%
14,00%

Bank
n-YEAR

YEAR

INVESTMENT

INTEREST

-1
0
1
2
3
4
5

2019
2020
2021
2022
2023
2024
2025

Rp115.881.139.696
Rp128.048.659.364
Rp141.493.768.597
Rp156.350.614.300
Rp172.767.428.801
Rp190.908.008.825
Rp210.953.349.752

Rp0
Rp0
Rp14.856.845.703
Rp16.416.814.501
Rp18.140.580.024
Rp20.045.340.927
Rp22.150.101.724

n-YEAR

YEAR

INVESTMENT

INTEREST

-1
0
1
2
3
4
5
6
7
8
9
10

2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030

Rp77.254.093.131
Rp88.069.666.169
Rp100.399.419.432
Rp114.455.338.153
Rp130.479.085.494
Rp148.746.157.464
Rp169.570.619.509
Rp193.310.506.240
Rp220.373.977.113
Rp251.226.333.909
Rp286.398.020.656
Rp326.493.743.548

Rp0
Rp0
Rp14.055.918.721
Rp16.023.747.341
Rp18.267.071.969
Rp20.824.462.045
Rp23.739.886.731
Rp27.063.470.874
Rp30.852.356.796
Rp35.171.686.747
Rp40.095.722.892
Rp45.709.124.097

INVESTMENT
PAYMENT
Rp0
Rp0
Rp25.609.731.873
Rp25.609.731.873
Rp25.609.731.873
Rp25.609.731.873
Rp25.609.731.873

PAYEMENT
Rp0
Rp0
Rp40.466.577.575
Rp42.026.546.374
Rp43.750.311.897
Rp45.655.072.799
Rp47.759.833.597

ANNUAL
PAYMENT
Rp0
Rp0
Rp43.931.668.449
Rp43.931.668.449
Rp43.931.668.449
Rp43.931.668.449
Rp43.931.668.449

Investor
INVESTMENT
PAYMENT
Rp0
Rp0
Rp8.806.966.617
Rp8.806.966.617
Rp8.806.966.617
Rp8.806.966.617
Rp8.806.966.617
Rp8.806.966.617
Rp8.806.966.617
Rp8.806.966.617
Rp8.806.966.617
Rp8.806.966.617

PAYEMENT
Rp0
Rp0
Rp22.862.885.337
Rp24.830.713.958
Rp27.074.038.586
Rp29.631.428.662
Rp32.546.853.348
Rp35.870.437.490
Rp39.659.323.413
Rp43.978.653.364
Rp48.902.689.509
Rp54.516.090.714

ANNUAL
PAYMENT
Rp0
Rp0
Rp35.987.311.438
Rp35.987.311.438
Rp35.987.311.438
Rp35.987.311.438
Rp35.987.311.438
Rp35.987.311.438
Rp35.987.311.438
Rp35.987.311.438
Rp35.987.311.438
Rp35.987.311.438

Cash Flow
Before Tax Cash Flow
Year

%Production
Capacity

2019

0%

Rp

Rp

(82.564.746.780)

Rp

Rp

Rp

2020

0%

Rp

Rp

(82.564.746.780)

Rp

Rp

Rp

2021

50%

Rp

157.500.000.000

Rp

(28.005.739.267)

Rp

(166.383.245.666)

Rp

(79.918.979.887)

Rp

2022

70%

Rp

220.500.000.000

Rp

Rp

(179.718.045.666)

Rp

(79.918.979.887)

Rp

2023

90%

Rp

283.500.000.000

Rp

Rp

(193.052.845.666)

Rp

(79.918.979.887)

Rp

2024

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

(79.918.979.887)

Rp

2025

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

(79.918.979.887)

Rp

2026

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

(79.918.979.887)

Rp

2027

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

(35.987.311.438)

Rp

2028

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

(35.987.311.438)

Rp

2029

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

(35.987.311.438)

Rp

2030

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

(35.987.311.438)

Rp

2031

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

(35.987.311.438)

Rp

2032

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

Rp

2033

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

Rp

2034

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

Rp

2035

100%

Rp

315.000.000.000

Rp

Rp

(199.720.245.666)

Rp

Rp

18.698.289.885

Revenue

Capital Investment

Operational Cost

Payment

Salvage Value

BT

After Tax Cash Flow

Year

%Production Capacity

BTCF

Total Depreciation

Taxable Income

Income Taxes

ATC

2019

0%

-Rp82.564.746.779,91

Rp

Rp

Rp

-Rp82.564.7

2020

0%

-Rp82.564.746.779,91

Rp

Rp

Rp

-Rp82.564.7

2021

50%

-Rp116.807.964.818,80

Rp

35.323.676.654

Rp

Rp

-Rp116.807.

2022

70%

-Rp39.137.025.552,27

Rp

30.802.246.043

-Rp69.939.271.594,96

Rp

(20.981.781.478)

-Rp18.155.2

2023

90%

Rp10.528.174.447,73

Rp

27.648.096.048

-Rp17.119.921.600,19

Rp

(5.135.976.480)

Rp15.664.1

2024

100%

Rp35.360.774.447,73

Rp

25.383.164.020

Rp9.977.610.428,05

Rp

2.993.283.128

Rp32.367.4

2025

100%

Rp35.360.774.447,73

Rp

23.719.652.982

Rp11.641.121.465,25

Rp

3.492.336.440

Rp31.868.4

2026

100%

Rp35.360.774.447,73

Rp

22.476.060.040

Rp12.884.714.407,53

Rp

3.865.414.322

Rp31.495.3

2027

100%

Rp79.292.442.896,29

Rp

21.533.345.755

Rp57.759.097.141,40

Rp

17.327.729.142

Rp61.964.7

2028

100%

Rp79.292.442.896,29

Rp

20.810.806.569

Rp58.481.636.327,27

Rp

17.544.490.898

Rp61.747.9

2029

100%

Rp79.292.442.896,29

Rp

20.252.170.734

Rp59.040.272.162,37

Rp

17.712.081.649

Rp61.580.3

2030

100%

Rp79.292.442.896,29

Rp

19.817.258.679

Rp59.475.184.217,25

Rp

17.842.555.265

Rp61.449.8

2031

100%

Rp79.292.442.896,29

Rp

19.476.800.767

Rp59.815.642.128,94

Rp

17.944.692.639

Rp61.347.7

2032

100%

Rp115.279.754.334,43

Rp

19.209.113.656

Rp96.070.640.678,53

Rp

28.821.192.204

Rp86.458.5

2033

100%

Rp115.279.754.334,43

Rp

18.997.907.218

Rp96.281.847.116,77

Rp

28.884.554.135

Rp86.395.2

2034

100%

Rp115.279.754.334,43

Rp

18.830.799.859

Rp96.448.954.475,88

Rp

28.934.686.343

Rp86.345.0

2035

100%

Rp133.978.044.219,19

Rp

18.698.289.885

Rp115.279.754.334,43

Rp

34.583.926.300

Rp99.394.1

BTCF DAN ATCF

Rp150,000,000,000

Rp100,000,000,000

Rp50,000,000,000

2035

2034

2033

2032

2031

2030

2029

2028

2026

ATCF
2027

Rp(50,000,000,000)

2025

2023

2024

2022

2021

2020

2019

BTCF
Rp-

Rp(100,000,000,000)

Rp(150,000,000,000)

NPV
YEAR
2019
2020

CASH FLOW
-Rp82.564.746.780
-Rp82.564.746.780

2021

-Rp81.484.288.164

2022
2023
2024
2025
2026
2027
2028
2029

Rp12.647.001.969
Rp43.312.246.976
Rp57.750.655.339
Rp55.588.090.991
Rp53.971.420.166
Rp83.498.059.509
Rp82.558.758.567
Rp81.832.531.981

ATCF
-Rp82.564.746.780
-Rp82.564.746.780
Rp116.807.964.819
-Rp18.155.244.074
Rp15.664.150.928
Rp32.367.491.319
Rp31.868.438.008
Rp31.495.360.125
Rp61.964.713.754
Rp61.747.951.998
Rp61.580.361.248

2030

Rp81.267.146.310

Rp61.449.887.631

2031
2032
2033
2034
2035

Rp80.824.551.025
Rp105.667.675.787
Rp105.393.107.417
Rp105.175.867.850
Rp118.092.407.804

Rp61.347.750.258
Rp86.458.562.131
Rp86.395.200.199
Rp86.345.067.992
Rp99.394.117.919

NPV
Rp31.125.202.309,15

ROI
9,84

IRR
18%

Payback Period

Break Even Point

VARIABLE COST
FIXED COST
PRICE
BEP

Rp
Rp
Rp

2.437.507
9.907.575
10.500.000
1,23 %