COST BENEFIT ANALYSIS BASED ON ACCRUAL BASIS FOR FABA WASTE TREATMENT: AN EVIDENCE FROM NATIONAL FERTILIZER INDUSTRY
Arman Hakim Nasution1, Sesarius Bertrand Ananda2,4, Erwin Widodo3

1. Department of Business Management, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia
2.Master of Science in International Business Management, School of Strategy & Leadership, Coventry University, Coventry, United Kingdom
3. Department of Industrial and Systems Engineering, Institut Teknologi Sepuluh Nopember. Surabaya, Indonesia
4. NielsenIQ Indonesia

Abstract

Along with the advancement of industrialization, the importance of technology and public policy in resolving all problems in both economically, socially, and ecologically, is expanding and has been discussed as an eco-friendly idea with efficient cost. One of the commodities being highly debated is FABA waste from coal combustion, which have potential for hazardous waste contamination. According to this remark, every
corporate especially critical and main industries in terms of governance must be prudent in dealing with waste concerns. The circular economy idea might be identified as an effort that influences long-term utilization execution. In other way, FABA waster offers numerous potentials for producing raw materials necessary for infrastructure construction, such as ready-mix cement, lightweight brick, paving blocks, and land stabilization. To take actions on opportunities and challenges, there are various
options on treatment such as individual treatment by its personal companies under the industry, recycling into useful commodities and second- or third-party treatment must be selected in terms of cost efficiency, effectiveness on business processes, and beneficiary to other commodities. Therefore, cost benefit rational analysis, in terms of
accrual basis could be determined as part to define what are potential income and expenses which can be mentioned on treatment process beside the effectiveness on project and current abilities in particular company.

Keywords: Development, Cost-Benefit Analysis, Accrual Basis, Circular Economy, FABA

Topic: Business and Economic