- Problem Definition
We are not living forever in this world, this is true fact. Based on available survey data for Indonesian, the lifetime age is around 65 years in average. For Jakarta, recently the availability of funeral land will be a constraint and the cost for having funeral is expensive. Like or not, we have to consider it in family plan otherwise we end up with problems.
Figure 1 Cemetery Complex
2. Identify the Feasible Alternative
There are two ways getting funeral today, either in common land buried method for area approximately 2 m2 or crematorium method. For family financial plan, I will try to compare in annual cost (A) based on present value (P) of basic funeral for a person having 35 years old now (year 2013) until 65 years ending time or year 2043 as simulation.
- Development of the Outcome for Alternative
Two parameters required for the calculation and they come from projection method using regression tool in excel program. They are inflation rate and interest rate from historical data, ,  &  present in Table 1 below:
Table 1 Historical Bank Credit and Inflation Rate
The projection of these rates present in the following figures:
Figure 2 Trend Line for Interest Rate with R^2 = 92%
Figure 3 Trend Line for Inflation Rate with R^2 = 47%
One note for Figure 3 since 47% is the best result coming from regression model which lead to maximum value of 4.45% within projection time taken as interest rate (while the interest give the projection value of 8.86%). Total rounded rate (i) comes from inflation and interest rate addition value is 14%. The basic cost of funeral methods as present value (P) taken in this calculation are five million IDR for land funeral method and eight million IDR for crematorium method per person without any maintenance cost.
The calculations based on references formula &  present hereinafter:
- Selection Criteria
The target of simulation is selecting an acceptable funeral cost in order to see if this cost fit with available family contingency plan.
- Analysis and Comparison of the Alternative
Average cost of both funeral methods is one million IDR per year. It shows that for having “dead” in Jakarta nowadays is not cheap considering 30 years projection time. For middle to minimum employee salary range this cost is not even in their daily planning. Probably the vertical land funeral method can be used as possible solution if really in the end there is no more option left.
- Selection of the Preferred Alternative
The calculation shows that land funeral method has the lower annual cost compare to other method, and this could fit inside family planning.
- Performance Monitoring and the Post Evaluation of Result
Inflation rate is the only parameter that required attention. It is important to check if assumption inflation rate taken into calculation still fit with actual condition during saving time period.
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