FINANCIAL FEASIBILITY STUDY IN THE PUBLIC STREET LIGHTING PROJECT USING PUBLIC-PRIVATE PARTNERSHIP (PPP) SCHEME

• Main Author: Aditia Nugroho, Yoga
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53545
• Institution: Institut Teknologi Bandung

The Government of Indonesia estimates that the country will need USD 359.2 billion investment for infrastructure development. However, it is estimated that only 73.5% of the investment value Public Street Lighting (PJU) is one of the most important elements of urban infrastructure. PJU is the main service that must be provided by the government to provide adequate lighting on the streets which is useful for increasing security and safety in the city, as well as increasing visibility or visibility at night. The research method authors doing by Investment valuation, Discounted Cash flow, NPV, IRR, Payback Period, and Availability Payment. Through the following research, the authors analyse the feasibility of investing by calculating the costs and operational costs of the project. The feasibility of a project can be financially analysed by using the Discounted Cash Flow (DCF) method, namely Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and Payment provisions (AP). As well as the most influencing variables that affect a project. For project 1, NPV that IDR 65,853,805,735, IRR 12% with the Payback Period 5,944465099 years with the Availability Payment IDR 154,664,515,303 by the government city of X, and the funding can help by SILPA, the end calculation the government can spend IDR 46,575,484,697 with the Profitability Index 1,310 more than 1. Scenario Analysis shows for the Option 1, NPV between -118,471,666,215 until 267,971,649,597. The project has NPV <0 9,07%. Another perspective from the author, the government of city X can choose option 2, based on chapter 3 calculation, such as NPV that IDR IDR 55,044,701,412, IRR 12%, with the Payback Period 5,944465099 years with the Availability Payment IDR IDR 137,308,962,359, and funding helps by SILPA, the end calculation the government can spend IDR 63,931,037,641 with the profitability index 1,284 more than 1. Scenario Analysis shows for the Option 2, NPV between -112,194,934,864 until 237,470,167,000. The project has NPV <0 10,38%. From the 3 options there are 3 most sensitive variables, Cost Of Equity, COGS Expense Realization, and Capex Realization.