Feasibility Analysis And Scenario For Infrastructure Projects With Low Return on Investment In Indonesia
Abstract
As a developing country, Indonesia is currently rampant in implementing infrastructure development. However, there are infrastructure projects (especially toll road projects) that are included in the National Strategic Project (PSN) but have low financial feasibility. Despite this, they are economically and socially politically feasible, and require a particular strategy to ensure the project can still be implemented. The analysis will be conducted by conducting in-depth case studies on infrastructure projects with low investment feasibility in Indonesia. These case studies aim to obtain a clear picture of the problem and identify the best solution/strategy to improve the feasibility of the project, enabling its implementation. Additionally, the impact of implementing the best scenario on its financial feasibility will be determined. Based on the analysis results, shortening the toll road segment is the best scenario that offers the highest financial feasibility. The second alternative involves seeking construction support from the Government to complete the toll road from Besuki to Banyuwangi, which represents the final stretch of the toll road on Java Island. The provision of VGF (Viability Gap Funding) in the form of construction support aims to facilitate the connection of the Probolinggo-Banyuwangi toll road and ensure a profitable rate of return on investment for Toll Road Business Entities, who are the investors in this project.
Downloads
References
Darmawan, A. (2018). Mempromosikan Skema Kpbu Dengan Mekanisme Availability Payment Sebagai Alternatif Pembiayaan Pembangunan Sarana- Prasarana (Infrastruktur) Publik di Daerah. 4(1).
David Banister, Y. B. (2001). Transport investment and the promotion of economic growth. Journal of Transport Geography.
Mulyono Wraharjo, Susanti, B., & Kadarsa, E. (2022). Financial feasibility analysis of cost and traffic volume: Case study on toll road investment project. Engineering and Applied Science Research, 49, 308315. https://doi.org/10.14456/EASR.2022.32
Nurhayati, E. (2020). Tinjauan Topik-Topik Penelitian Dan Kajian Tentang Proyek Jalan Tol di Indonesia Dengan Skema Kerjasama Pemerintah dan Badan Usaha (KPBU).
Palilu, A. (2019). Analisis Pengaruh Pembangunan Infrastruktur Transportasi Terhadap Produk Domestik Regional Bruto Kota Ambon. Buletin Studi Ekonomi, 227. https://doi.org/10.24843/BSE.2018.v23.i02.p06
Recky, P. J. (2021). Total Solution For Smart Traffic and Toll Roads Management in Indonesia. Devotion : Journal of Community Service, 3(2), 149–163. https://doi.org/10.36418/dev.v3i2.119
Todaro, M. P., & Smith, S. C. (2012). Economic development (11th ed). Addison-Wesley.
Welde, M., Bråthen, S., Rekdal, J., & Zhang, W. (2020). Road investments and the trade-off between private and public funding. Research in Transportation Economics, 82, 100875. https://doi.org/10.1016/j.retrec.2020.100875
Welde, M., & Odeck, J. (2017). Cost escalations in the front-end of projects – empirical evidence from Norwegian road projects. Transport Reviews, 37(5), 612–630. https://doi.org/10.1080/01441647.2016.1278285
Wibowo, A. (n.d.). Perkembangan Terkini Dalam Pembiayaan Infrastruktur Yang Melibatkan Partisipasi Badan Usaha.
Copyright (c) 2022 Reza Kazhimi, Eka Pria Anas
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.