Machinery Valuation
Who is Our Team?

The machinery valuation division is supported by machinery valuers, with formal education majoring in mechanical engineering, industrial engineering, and electro engineering, mostly members of MAPPI (Indonesian Society of Appraiser).

What is Our Task?

The task of this division is to undertake all services of valuation related to plant, machinery and equipment as well as aircraft, ships and vessels.

What are The Approaches and Methodologies?

The approaches and methodologies that are used,

  • Sales Comparison Approach, this comparative approach considers the sales of similar or substitute properties and related market data, and establishes a value estimate by processes involving comparison. In general, a property being valued (a subject property) is compared with sales of similar properties that have been transacted in the market. Listings and offerings may also be considered.
  • Income Capitalisation Approach, this comparative appproach considers income and expense data relating to the property being valued and estimates value through a capitalisation process. Capitalisation relates income (usually a net income figure) and a defined value type by converting an income amount into a value estimate. This process may consider direct relationships (known as capitalisation rates), yield or discount rates (reflecting measures of return on investment), or both. In general, the principle of substitution holds that the income stream which produces the highest return commensurate with a given level of risk leads to the most probable value figure.
  • Cost Approach, this comparative approach considers the posibility that, as a substitute for the purchase of a given property, one could construct another property that is either a replica of the original or one that could furnish equal utility. In a real estate context, one would normally not be justified in paying more for a given property than the cost of acquiring equivalent land and constructing an alternative structure, unless undue time, inconvenience, and risk are involved. In practice, the approach also involves an estimate of depreciation for older and/or less functional properties where an estimate of cost new unreasonably exceeeds the likely price that would be paid for the appraised property.
Why do We Need Machinery and Equipment Valuation Services?

Machinery and equipment valuation is comonly undertake for purposes below:

  • Financing for Financial Institution
  • In supporting the Business Valuation
  • Initial Public Offering (IPO)
  • Financial Reporting
  • Financial Reporting
  • Insurance Placement
  • Leasehold Interest.
Our Experience

The machinery division has a vast experience in undertaking valuation, that covers:

  • Wood industry,
  • Yarn, textile and garment,
  • Palm oil procesing plant,
  • Chemical and pharmaceutical industry,
  • Telecomunication
  • Cement plant,
  • Tin and coal mining.