DETERMINE WEIGHTED AVERAGE COST OF CAPITAL ON 2019 OF INFRASTRUCTURE INDUSTRY AS REFERENCE FOR THE DEVELOPMENT OF INFRASTRUCTURE WITH PUBLIC PRIVATE PARTNERSHIP SCHEME

• Main Author: Phintaru, Pandu
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42686
• Institution: Institut Teknologi Bandung

As a developing country, Indonesia needs infrastructure to grow the country's economy. The funds needed for infrastructure projects in Indonesia from 2014-2019 reached 4,700 trillion Rupiah. The Indonesian State Budget which is budgeted by the Indonesian government for infrastructure in the 2014-2018 period is only 1,596 trillion Rupiah. The State Budget cannot meet funding for all infrastructure projects. To cover the budget shortfall in infrastructure development, the Government of Indonesia needs investors from the private sector to join infrastructure development in Indonesia. To guarantee the private sector in the investment that will be provided, the Government of Indonesia through its business entity Indonesia Infrastructure Guarantee Fund (IIGF) uses the Public Private Partnership (PPP) scheme in providing guarantees to investors. To find out the feasibility of an infrastructure project can be carried out using the Public Private Partnership (PPP) scheme, a financial feasibility study must be conducted. As a basis for knowing the feasibility of a project is to know the weighted average cost of capital (WACC) of the infrastructure industry. In this research use the calculation of the weighted average cost of capital and analysis cost of equity in the infrastructure industry using the Capital Asset Pricing Model analysis and PEST analysis to determine the macroeconomic conditions in Indonesia. Reference calculations Weighted average capital costs (WACC) are needed so that the government and the private sector can analyze the benefits of using Public Private Partnership scheme. Value weighted average costs of capital (WACC) are obtained from construction companies in the infrastructure industry, especially the road and toll road sectors. From this study it is known that the weighted average cost of capital in 2019 in the infrastructure industry is 10.42%.