Corporate Valuation of Indonesian Drone Service Company: Case Study of PT Kelana Geospasial

Abstract

Indonesia's drone industry is expanding rapidly, fueled by significant investments and the growing necessity of drone technology in agriculture, offshore mining, and aerial photography. The global and Asian drone markets are also on the rise, with a projected 7.1% CAGR increase driven by industrial use and substantial investments. However, valuing Indonesian drone businesses is difficult due to their intangible assets and the startup nature of many companies, which focus more on value creation than financial stability. Established in 2016, PT Kelana Geospatial (PT KG) utilizes Unmanned Aerial Vehicle (UAV) technology for aerial mapping services and collaborates with sectors like agriculture, offshore mining, and aerial photography. They also offer UAV pilot certification and sell related products and parts. Despite their diverse offerings, PT KG faces stagnant growth and needs to enhance productivity with existing resources. The management struggles with valuing potential mergers, maintaining clear financial records, and addressing industry risks. PT KG's growth is mainly driven by mapping and maintenance services, although product sales have declined. Despite an improving financial situation, high production costs and expenses challenge profitability. While positive GPM and OPM indicate potential, NPM remains negative. Recommendations include expanding services, boosting efficiency, and leveraging technology and partnerships. By utilizing These strategies could foster sustainable growth and increase PT KG's enterprise value, currently estimated at IDR 3.84 billion.