Service-Based Periodic Payment Provided/PBBL by the Government of Indonesia to Bayung Lencir – Tempino - Simpang Ness Toll Road
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 08
Abstract
In 2020, PT Hutama Karya (Persero), a state-owned enterprise mandated by the government to build the Trans Sumatra Toll Road, appointed a private consultant to conduct a feasibility study and for the proposed construction of the Betung – Tempino – Jambi Toll Road. However, due to the low traffic volume in the Jambi Province, the toll road was deemed financially not feasible to be developed. Given the substantial costs required for the development of the Betung – Tempino – Jambi Toll Road, this toll road segment was divided into several sections. Betung – Tempino – Jambi Toll Road is a segment of the primary route of the Trans Sumatra Toll Road, Phase 2, which spans 171 kilometers across the provinces of South Sumatra and Jambi. Bayung Lencir – Tempino – Simpang Ness Toll Road, which stretches 52 kilometers, is a part of the Betung – Tempino – Jambi Toll Road prioritized for construction and operation. According to Presidential Regulation of the Republic of Indonesia Number 131 of 2022, a funding scheme known as Service-Based Periodic Payments/Pembayaran Berkala Berbasis Layanan (PBBL) shall be provided to PT Hutama Karya (Persero) to enhance the financial feasibility and to ensure the funding, technical planning, construction execution, operation, and maintenance of the toll road. This study will analyze and evaluate the financial feasibility of the Bayung Lencir – Tempino – Simpang Ness Toll Road before and after the implementation of PBBL provided to PT Hutama Karya (Persero) during the estimated duration of toll road concession for 50 years. The duration of the PBBL granted by the Government of Indonesia to PT Hutama Karya (Persero) is 15 years, with an annual payment of 880 billion Rupiah. Based on the financial feasibility analysis without PBBL, the results indicate a negative NPV, an IRR lower than the Weighted Average Cost of Capital (WACC), a Discounted Payback Period exceeding the toll road concession period, and a Profitability Index below 1, indicating that the project is not yet financially viable. On the other hand, the financial feasibility analysis after PBBL implementation shows a positive NPV, an IRR greater than WACC, a Discounted Payback Period within the toll road concession period, and a Profitability Index above 1, indicating that the project is financially feasible. Therefore, PT Hutama Karya (Persero) shall develop the Bayung Lencir – Tempino – Simpang Ness Toll Road with PBBL scheme that contributed by the Government.
Authors and Affiliations
Ariel Winfried, Isrochmani Murtaqi,
Keywords
Related Articles
- EP ID EP743111
- DOI 10.47191/ijcsrr/V7-i8-78
- Views 17
- Downloads 0
The Impact of South Korean Work Culture in Improving Working Performance: A Multiple Regression Method Analysis
This study aims to assess the South Korean work culture implemented at WITCON Co., Ltd., its impact on enhancing employee performance, and the extent of its influence. This form of research employs a blend of quantitativ...
Designing Innovative Corporate Social Responsibility (CSR), Social Media Marketing, and Sales Promotion to Increase Customer Retention in an Indonesia Local Fashion Brand: A Case Study of Nors Studio
This study focuses on analyzing the direct and indirect effects of various marketing strategies on customer retention, with special emphasis on the role of perceived value as a mediator. To achieve the research objective...
Barriers and Challenges in Implementing Clinical Pathway of Sectio Caesarea for Health Workers in a Private Hospital
Clinical pathway (CP) is one of the requirements required in hospital accreditation standards. It has an important role in controlling quality, and costs and supporting patient safety, especially in cases that have the p...
Appraisal of Green Communication Technology Deployment in Nigeria
The idea behind “green” processes and technologies is the use of upgraded, ecologically friendly processes and technologies in a way that preserves natural resources and doesn’t disturb the environment. Clean technology...
NEP 2020: The Status of the Role of Infrastructure in Enhancing Physical Education Programs
Physical Education programs play a crucial role in promoting healthy lifestyles and holistic development among individuals, particularly in educational settings. This review paper aims to comprehensively examine the role...