Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia

Research Article

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

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  • @INPROCEEDINGS{10.4108/eai.18-11-2020.2311674,
        author={Rizal Kurniyawan and Pungky Dharma Saputra and Safri Safri and Ridwan Saputro},
        title={Analysis of Life Cycle Cost in Developing the Capital City of East Bogor Regency},
        proceedings={Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={BIS-HSS},
        year={2021},
        month={9},
        keywords={life cycle cost investment capital city east bogor regency},
        doi={10.4108/eai.18-11-2020.2311674}
    }
    
  • Rizal Kurniyawan
    Pungky Dharma Saputra
    Safri Safri
    Ridwan Saputro
    Year: 2021
    Analysis of Life Cycle Cost in Developing the Capital City of East Bogor Regency
    BIS-HSS
    EAI
    DOI: 10.4108/eai.18-11-2020.2311674
Rizal Kurniyawan1,*, Pungky Dharma Saputra2, Safri Safri3, Ridwan Saputro1
  • 1: School of Engineering & Technology, Tanri Abeng University, Jakarta, Indonesia
  • 2: Faculty of Military Engineering, Indonesia Defense University, Bogor, Indonesia
  • 3: Faculty of Science and Technology, Institut Sains dan Teknologi Al-Kamal, Jakarta, Indonesia
*Contact email: rizal@student.tau.ac.id

Abstract

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.