Construction Engineering Business Plan

Indonesia EEC is a U.S. Energy Engineering & Construction (U.S. EEC), subsidiary company. They provide services in engineering, design procurement, project management, construction management and construction management, as well as management consulting, quality control, information and operations management, maintenance and development and process technology.

Management of the U.S. EEC wants Indonesia EEC’s financial performance to be good. Indonesia EEC is a subsidiary company to the U.S. EEC. It sets the following goals for its products and services in EPC power generation and power supply projects:

Increase customer awareness during planning.
By forming a joint venture, you can lower competition and reduce risks while also lowering the price level.
Not only EPC prospects but also BOO and BOT prospects.
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 formed as an Indonesian Perseroan Terbatas (PT.). The Foreign Investment Laws of Republic of Indonesia have a Jakarta-based corporation. The Energy Engineering & Construction company of the U.S. (U.S. EEC), is 100% owner.

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 began 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
Receivables

$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 Assets that are long-term 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-free) $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 Sales on Credit $31,098,365 $40,427,875 $54,422,140 Receivables Turnover 5.09 5.09 5.09

2.3 Corporate Locations and Facilities

The office is located in downton Jakarta, Indonesia. This office is close to the airport. It also gives the company plenty of room for growth. Currently, Indonesia EEC occupies an 800-square meter space, with offices for each department.