Evaluation of Construction Support by the Government through Business Entities on the Trans Sumatra Toll Road (Case Study: Terbanggi Besar – Kayu Agung Toll Road Section)

Hera C. Putri; Iris Mahani; Budi Hasiholan

doi:10.36948/ijfmr.2024.v06i04.26182

Evaluation of Construction Support by the Government through Business Entities on the Trans Sumatra Toll Road (Case Study: Terbanggi Besar – Kayu Agung Toll Road Section)

Author(s)	Hera C. Putri, Iris Mahani, Budi Hasiholan
Country	Indonesia
Abstract	Terbanggi Besar – Pematang Panggang – Kayu Agung toll road is part of the Trans Sumatra Toll Road that received 83 km of construction support carried out by the Toll Road Business Entity that won the auction of toll road projects on the island of Java with a high rate of return on investment. Generally, construction support is provided directly by the government, but in this case the government provides construction support through other toll road business entities. The provision of construction support through toll road business entities on the Terbanggi Besar – Pematang Panggang – Kayu Agung Toll Road has financially increased the investment feasibility parameters, including: an increase in the IRR value to 12% from the original 9.36% before the provision of construction support; The NPV value with the provision of construction support has a better NPV value, which is Rp. 3,875 T compared to the NPV value without construction support of - Rp. 2,044 T; The value of the payback period without the provision of construction support is for 22 years and 3 months and with the provision of construction support for 19 years and 5 months. However, in the implementation process, the quality of toll road infrastructure at construction support locations is not met, resulting in business entities still having to participate in bearing quality risks to construction work carried out by the government. Business entities receiving construction support must bear maintenance costs due to repairs to damage to the construction support site. However, the increase in maintenance costs in general did not have a significant effect on the investment feasibility parameters of the Terbanggi Besar – Pematang Panggang – Kayu Agung toll road project. The increase in maintenance costs had an effect on the decrease in IRR by 1.4%. The NPV indicator also decreased by Rp. 198 billion or worth 5.1%. The payback period has also increased from 19 years and 5 months to 19 years and 8 months. However, the mechanism for providing construction support through business entities needs to be considered to ensure that the benefits of providing construction support can be felt to the maximum.
Keywords	Toll Roads, Construction Support, Financial Feasibility
Field	Engineering
Published In	Volume 6, Issue 4, July-August 2024
Published On	2024-08-17
Cite This	Evaluation of Construction Support by the Government through Business Entities on the Trans Sumatra Toll Road (Case Study: Terbanggi Besar – Kayu Agung Toll Road Section) - Hera C. Putri, Iris Mahani, Budi Hasiholan - IJFMR Volume 6, Issue 4, July-August 2024. DOI 10.36948/ijfmr.2024.v06i04.26182
DOI	https://doi.org/10.36948/ijfmr.2024.v06i04.26182
Short DOI	https://doi.org/gt7m5x

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Evaluation of Construction Support by the Government through Business Entities on the Trans Sumatra Toll Road (Case Study: Terbanggi Besar – Kayu Agung Toll Road Section)

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