Analysis of Life Cycle Cost in Developing the Capital City of East Bogor Regency

Kurniyawan, Rizal and Saputra, Pungky Dharma and Safri, Safri and Saputro, Ridwan (2021) Analysis of Life Cycle Cost in Developing the Capital City of East Bogor Regency. In: BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia.

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Bogor Regency is the most populous area in West Java. Currently, it is facing the problem of increasing population, decreasing agricultural area, and community dissatisfaction with government services. The expansion of the Bogor Regency into the East Bogor Regency is a demand for the formation of a new autonomous regency. However, it is necessary to conduct a financial feasibility study which is involving the government and the private sector in investing in the development of this new regency and its capital city. This research is focusing on calculating the life cycle cost and finding the optimum investment scheme to provide benefits for both parties. The life cycle cost method was used to analyze initial costs, operational and maintenance costs, and revenue to assess the feasibility of this project and then evaluating the scenario of sharing. The capital city of East Bogor regency is planned to be developed in the Jonggol area by developing transportation infrastructure, micro business, government area, housing, and tourism based on smart city. The results of the analysis show that the optimum Net Present Value (NPV) is IDR27,488,111,287,722.20, the Benefit-Cost Ratio (BCR) is 4.28 and the Internal Rate of Return (IRR) is 17.97% with private sharing for initial costs is 60%, for operational and maintenance costs is 50% and 60% for revenue. The evaluation results can become government considerations in making the decision.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: life cycle cost investment capital city east bogor regency
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: EAI Editor IV
Date Deposited: 31 Mar 2022 13:54
Last Modified: 31 Mar 2022 13:54

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