FINANCIAL FEASIBILITY STUDY AND PUBLIC-PRIVATE PARTNERSHIP FUNDING ALTERNATIVES FOR THE DEVELOPMENT OF NEW PORT IN BULUNGAN DISTRICT, NORTH KALIMANTAN PROVINCE

• Main Author: AUFA FAKHRI 29116077, REHAN
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30296
• Institution: Institut Teknologi Bandung

North Kalimantan Province has potentials of geographical position, which become the opening-path for the activities of national import-export. By developing such potentials, it will be a tangible manifestation of economic development in the province. In order to achieve that goal, it is necessary to have infrastructure and facilities becoming supporting factors; one of which is to select East Tanjung Palas sub-district as Kawasan Industri Pelabuhan Internasional (KIPI) of Mangkupadi Tanah Kuning. In the planning of KIPI Mangkupadi Tanah Kuning area, it requires a land with estimation of 5,000 ha designated as one investment land for the international port development. <br /> <br /> The construction of International Port in KIPI of Mangkupadi area requires Rp. 5,753,525,000,000.00, for initial investment. Based on that fact, it is necessary to test the feasibility, which one of them is financial feasibility. In addition to that, based on Presidential Regulation that financing in the construction of national strategic projects, it can also be done through the non-government budget so that there will be many opportunities for cooperation with private parties investing in this development. Therefore, it is also necessary to analyze the factors influencing the selection of contract types for port management by investors. <br /> <br /> Through this research, author analyze the feasibility of this investment plan by calculating the required operational cost, revenue, and other expenses. The feasibility of an investment plan can be financially analyzed by using Discounted Cash Flow (DCF) parameters which are Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP). Calculation of weights among factors influencing the selection of port management contract types applies Analytical Hierarchy Process (AHP) method. The respondents in the criteria assessment are the landowner of the provincial government of Kalimantan Utara and the strongest investor candidate for the international port development. <br /> <br /> Based on the positive value of net present value (NPV) of Rp. 1,206,244 million and the internal rate of return (IRR) greater than the weighted average cost of capital (WACC) of 13.00% and the investment payback for 13 years, it can be concluded that the project is financially feasible. From the result of AHP calculations, the BOT privatization model is the most preferred choice by the respondents/stakeholders in the framework of port management, even the weight assessment is varied.