Abstract

Financial security plays an important role in the company’s sustainability. Property is one of the financial security mediums and at the same time also as the investment medium. Not only the medium but also the investment destination is very influential in the result. Therefore, Jakarta as the capital city of Indonesia and as the centre of economic activity has a very big potential market. Jakarta is divided into 5 administrative cities, and CBD as the prime area is located in the golden triangle of Jakarta specifically in South Jakarta. BPG Corporation is one of the companies based in Jakarta, with the intention to strengthen its financial security. The company assesses by the valuation to investing in a property sector, which faces two choices whether to buy or to build from the ground. This study will use the Discounted Cash Flow method as the valuation tool to predict the risks, advantages, and weaknesses of the company’s financials. The result is that the buy option is more beneficial to the company with current available equity. IRR of the buy option has ranged from 8% to 13% and the NPV indicates also positive figures.

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