EVALUATION OF THE PERFORMANCE OF THE CONSTRUCTION OF THE INFRASTRUCTURE OF THE ABC ROAD THROUGH PUBLIC FUNDS

Abstract

Purpose:The objective of this research is to assess the viability of the construction of toll road infrastructure through public funds in the case of the construction of ABC street toll road, as well as to analyze the development of ABC road toll road, whether it is favorable or unfavorable to the community. Design/Methodology/Approach:The research was conducted using a mixed approach of qualitative and quantitative methods with concurrent or simultaneous designs. In this method, researchers combine quantitative and qualitative data at a time and then integrate information into the interpretation of results to provide a comprehensive analysis of research at the PT. ABC. Findings: The results of this study show that the calculation of the NPV of the construction of ABC street toll roads yields a value > 0, thus the development of this toll road infrastructure is worthy of a net present value (NPV). The Internal Rate of Return (IRR) of the construction of ABC street toll roads is 10% > the Social Discount Rate (SDR), thus building the ABC road toll is worthy, which in this study uses a discount rate of 9%. The value of the benefit-cost ratio (BCR) of the construction of this toll road is > 1, so the construction is worthwhile. Practicalimplications:Government support in the use of public funds for the development of marginal toll roads is needed so that the viability of an investment can be preserved, which will encourage further involvement of investors in the infrastructure development of roads, especially toll roads, in Indonesia, eventually becoming an accelerator of economic and regional growth. Authenticity/Value: The association is committed to creating a sense of safety, comfort, and smoothness for road users by making efforts to comply with the Minimum Service Standards (SPM) continuously established by the Government in this regard through the Directorate of JBH-DJBM Ministry of PUPR, as well as striving to meet the level of customer satisfaction through surveys carried out on a regular basis, inter alia by adding guidance lamps, building weighing bridges, improving rest area facilities, and traffic management activities in conjunction with the police and other relevant parties.