FEASIBILITY ANALYSIS OF FOOTBRIDGE CONSTRUCTION WITH BILLBOARD SPACE IN SURABAYA: A CASE STUDY OF PT. XYZ

• Main Author: Indah Syafitri, Syaumi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83995
• Institution: Institut Teknologi Bandung

The increasing number of motorized vehicles in Surabaya, which reached 5 million of registered units, has made pedestrians increasingly vulnerable to becoming victims of traffic accidents. Based on data from the Indonesian Police, more than 54% of pedestrian accidents are caused by crossing carelessly. To overcome this problem, the Surabaya government plans to collaborate with PT. XYZ, an advertising media company, to build a pedestrian bridge with billboard space. This collaboration will use a profit sharing system. This research aims to examine the feasibility of the project to build a pedestrian bridge with space billboards. The analysis begins by analyzing the project from internal and external factors with TOWS matrix, VRIO framework, Porter’s 5 Forces, and PESTEL. Then, projecting the financial condition of PT. XYZ in the future. The capital budgeting analysis method is then used to determine the viability of the project using methods like Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, and Profitability Index. Additionally, sensitivity analysis is done to determine which variables have the biggest impact on NPV of this project. The research results show that the project to build a pedestrian bridge with space billboards is feasible to implement. Positive NPV indicators, IRR exceeding WACC, Payback Period less than 10 years, and Profitability Index more than 1 indicate that this project is profitable. Sensitivity analysis revealed that profit share, housing level, and total billboard sales/price were the three variables most sensitive to the success of a project.