A FINANCIAL AND ECONOMIC FEASIBILITY STUDY ON CONSTRUCTION OF THE RENGAT - PEKANBARU SEGMENT OF THE TRANS SUMATERA TOLL ROAD

• Main Author: Aria Permana, Deny
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/63988
• Institution: Institut Teknologi Bandung

Indonesia's rank in global competitiveness is 50th out of 141 countries. Infrastructure development is a key to this competitiveness. The construction of the Trans Sumatera Toll Road is one of the Government of Indonesia’s (GOI) focus to improve the Indonesian economy by reducing the cost of transporting goods and logistics between Java and Sumatera. PT Hutama Karya (Persero) has been appointed by the GOI to carry out the task of constructing the Trans Sumatera Toll Road, one of which is the 207 Km Rengat – Pekanbaru segment. This final project will focus conducting a financial feasibility study and an economic feasibility study of the Rengat – Pekanbaru segment of the Trans Sumatera Toll Road. The financial feasibility study considers the potential operating cash flows of the toll road from traffic and from toll rates, while the economic feasibility study considers the potential benefits that will be received to the community on two sides, saving from Vehicle Operating Cost and saving in Vehicle Operating Time. Based on the financial feasibility study, the Rengat – Pekanbaru segment of the Trans Sumatera Toll Road is not feasible to be implemented because it has IRR = 3.23% which is lower than the discount rate of 11.6%, NPV = Rp. (31,058,356.015) and Payback period of more than 40 years (exceeding concession period). Based on the economic feasibility study, the Rengat – Pekanbaru segment of the Trans Sumatera Toll Road is feasible to be implemented because it has a Vehicle Operating Cost Saving (VOCS) of Rp.34,518,789,566 (best case), a VOCS of Rp.28,820,764,540 (base case), and a VOCS of Rp. 19,285,489,206 (worst case). The Rengat – Pekanbaru segment of the Trans Sumatera Toll Road has a Vehicle Operating Time Saving (VOTS) of 2.02 hours (best case), 1.53 hours (base case) and 0.84 hours (worst case). This is why the GOI took a policy to continue carrying out the construction of the Rengat – Pekanbaru segment of the Trans Sumatera Toll Road with an assignment to Hutama Karya.