Analysis of Life Cycle Cost in Developing Capital City of East Bogor Regency Rizal Kurniyawan (a*), Pungky Dharma Saputra (a,b), Safri (c), Ridwan Saputro (a)
(a) Civil Engineering Study Program, School of Engineering & Technology, Tanri Abeng University, Jakarta, Indonesia
*rizal[at]student.tau.ac.id
(b) Military Building Construction Engineering Study Program, Faculty of Military Engineering, Indonesia Defense University, Bogor, Indonesia
(c) Civil Engineering Study Program, Faculty of Science and Technology, Institut Sains dan Teknologi Al-Kamal, Jakarta, Indonesia
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 Bogor Regency into 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. Life cycle cost method was used to analyze initial costs, operational and maintenance costs and revenue to assess feasibility of this project and then evaluating the scenario of sharing. The capital city of East Bogor regency is planned to be developed in 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 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 consideration in making decision.
Keywords: Life cycle cost- Investment- Capital city- East Bogor Regency
