Feasibility Analysis of a Sustainable Refillable Drinking Water Business in Tangerang

Product Design Program, Industrial Engineering Department, BINUS ASO School of Engineering, Bina Nusantara University, Jakarta, Indonesia 11480

^* Corresponding author: nina.lestari@binus.edu

Abstract

This study analyzes the operational and economic feasibility of launching a refillable drinking water business in Tangerang, Indonesia, as a sustainable alternative to single use bottled water. The business promotes environmental responsibility by reducing plastic waste through the reuse of gallon containers and the implementation of a digitally integrated, scheduled delivery system. Primary data from surveys and interviews, along with secondary data from literature, were analyzed using several frameworks, including Business Model Canvas (BMC), SWOT analysis, and market sizing (TAM, SAM, SOM), as well as financial tools such as Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and cash flow analysis. The findings indicate high consumer demand for hygienic and accessible drinking water services. Among the two investment scenarios, buying versus renting a storefront—renting yields higher NPV and IRR and achieves faster payback. The study concludes that the refillable water business model not only offers financial viability but also contributes to sustainable consumption, energy efficiency in distribution, and reduction of plastic waste, aligning with the goals of green technology and waste treatment.