p–ISSN: 2723 – 6609 e-ISSN: 2745-5254
Vol. 5, No. 12, December 2024 http://jist.publikasiindonesia.id/

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 5999

Evaluation of the Provision of Construction Support Through
Business Entities (Case Study: Terbanggi Besar Kayu Agung

Toll Road)

Hera Cahyaning Putri1*, Iris Mahani2, Budi Hasiholan3

Institut Teknologi Bandung, Indonesia
Email: [email protected]*, [email protected], [email protected]

*Correspondence

ABSTRACT
Keywords: toll roads,
construction support,
financial feasibility.

Generally, construction support is provided directly by the
government, but in this case, the government provides
construction support through other toll road business
entities. The provision of construction support through toll
road business entities on the Terbanggi Besar – Pematang
Panggang – Kayu Agung Toll Road has financially increased
the investment feasibility parameters, including an increase
in the IRR value to 12% from the original 9.36% before the
provision of construction support; The NPV value with the
provision of construction support has a better NPV value,
which is Rp. 3,875 T compared to the NPV value without
construction support of - Rp. 2,044 T; The value of the
payback period without the provision of construction
support is 22 years and 3 months and with the provision of
construction support for 19 years and 5 months. However, in
the implementation process, the quality of toll road
infrastructure at construction support locations is not met,
resulting in business entities still having to participate in
bearing quality risks to construction work carried out by the
government. Business entities receiving construction
support must bear maintenance costs due to repairs to
damage to the construction support site. However, the
increase in maintenance costs, in general, did not have a
significant effect on the investment feasibility parameters of
the Terbanggi Besar – Pematang Panggang – Kayu Agung
toll road project. The increase in maintenance costs affected
the decrease in IRR by 1.4%. The NPV indicator also
decreased by Rp. 198 billion or 5.1%. The payback period
has also increased from 19 years and 5 months to 19 years
and 8 months. However, the mechanism for providing
construction support through business entities needs to be
considered to ensure that the benefits of providing
construction support can be felt to the maximum.

Hera Cahyaning Putri, Iris Mahani, Budi Hasiholan

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6000

Introduction
The development of toll road infrastructure is one of the priority agendas of the

Indonesian government to improve connectivity and competitiveness of the national
economy (Ameyaw & PC Chan, 2016). According to data from the Toll Road Regulatory
Agency (BPJT), the total length of toll roads in Indonesia at the end of 2022 reached
2,555.4 kilometers. This figure is still far from the government's target of 4,500 km in
2024 (Ude & Eneh, 2024).

The construction of toll road infrastructure requires relatively large funds.
Therefore, the government encourages the involvement of the private sector in helping to
accelerate the provision of toll road infrastructure in the country's limited financial
situation (Babatunde, Perera, Zhou, & Udeaja, 2016). The government encourages the
active role of business entities to cooperate in the operation of toll roads, especially for
toll road business locations that are economically and financially feasible, to enable
business entities to obtain a reasonable rate of return on investment and profits from the
toll road business (Badriansyah, Karsaman, & Lubis, 2024).

On the other hand, under certain conditions, there are toll road projects that are not
financially feasible even though they are economically feasible (Ali, Irfan, & Salman,
2020). This causes no business entities or investors to be interested, so the government
delegates its authority to other agencies in the form of assignments to State-Owned
Enterprises (Indonesia, Law, 2014).

The Trans Sumatra Toll Road ("JTTS") project is a government assignment project
given to PT Hutama Karya (Persero), a State-Owned Enterprise ("BUMN") whose
ownership of all shares is owned by the government of the Republic of Indonesia (Zhang
& Leiringer, 2023).

The JTTS project is a 2,775-kilometer toll road construction project that connects
cities on the island of Sumatra, from Lampung to Aceh. In general, the amount of Internal
Rate of Return ("IRR") of JTTS projects varies from 3% - to 12% with an average of
5.7% (data from Hutama Karya, 2023). The JTTS project can be said to be financially
unfeasible because the project's IRR value is still below Bank Indonesia's benchmark
interest rate, which is 7.5% (Ochieng, Zuofa, & Badi, 2021).

However, when viewed from an overall economic perspective, the JTTS project can
be said to be economically feasible. The results of the study show that there is a positive
relationship between infrastructure development and economic growth in the
development of JTTS. The JTTS project can improve people's living standards, provide
equitable distribution of the national economy, and provide new economic growth points
(Syaputra, 2022).

The Terbanggi Besar – Pematang Panggang – Kayu Agung toll road is one of the
parts of the 189 km JTTS which is a continuation of the Bakauheni – Terbanggi Besar
section (Mahani, Tamin, Pribadi, & Wibowo, 2019) . One of the things that are quite
interesting in this section is the financing innovation where there is an 83 km long toll
road segment supported by the construction of the Toll Road Business Entity ("BUJT")
on the island of Java which has a high rate of return on investment so that it is a cross-

Evaluation of the Provision of Construction Support Through Business Entities (Case Study:
Terbanggi Besar Kayu Agung Toll Road)

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6001

subsidy to this toll road section. Generally, construction support is provided directly by
the government, but in this case, the government provides construction support through
other toll road business entities (Mahani, Tamin, Pribadi, & Wibowo, 2017).

The Terbanggi Besar – Pematang Panggang – Kayu Agung Toll Road was
inaugurated in November 2019. Since its inception, the condition of toll roads has often
been severely damaged both in rigid and flexible pavement locations with construction
support. The maintenance period of this toll road lasts for 3 years from the first handover
or ends in August 2022 (Shrestha, Tamošaitienė, Martek, Hosseini, & Edwards, 2019).
Until mid-2021, the condition of the Terbanggi Besar – Pematang Panggang – Kayu
Agung Toll Road still leaves hundreds of locations of damage in the construction support
area. The Director of Freeways of the Ministry of PUPR then instructed PT HK as the
concessionaire to take over the repair of the damage and immediately complete the repair
of the damage (Carbonara, Costantino, Gunnigan, & Pellegrino, 2015) .

The takeover of the repair certainly increases the maintenance costs that must be
borne by PT HK which should still be the responsibility of the implementing contractor
who contracts with BUJT, the related construction support provider. Broadly speaking,
the chronology of the Terbanggi Besar – Kayu Agung toll road business can be seen in
Figure 1 below.

Figure 1

Chronology of Terbanggi Besar Kayu Agung Toll Road Company

The problem of the physical quality of infrastructure at the construction support site

has been studied (Mahani, 2018) where the provision of construction support in PPP
projects has been identified as having risks, one of which is the difference in the quality
of the sections built by the government and BUJT (Wibowo & Putri, 2024).

The lack of quality of toll road infrastructure results in business entities still having
to bear quality risks to construction work carried out by the government. The increase in
maintenance and repair costs for damage to the construction support site will affect the
level of financial feasibility of the Terbanggi Besar – Pematang Panggang – Kayu Agung
toll road. Lack of quality control of work, and unclear risk-sharing mechanisms may be
the reason why feasibility support with this scheme cannot optimally provide benefits in

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Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6002

improving the feasibility of toll roads. On the other hand, the provision of construction
support by the government through cross-subsidies for business entities is the first scheme
implemented in Indonesia. Therefore, it is necessary to study further for the
implementation of a scheme to provide construction support by the government through
business entities in the future.

From the background that has been explained earlier, construction support does
increase the feasibility of toll road investment projects in general. However, the quality
aspect of the infrastructure provided and the authority and responsibility between the
government and BUJT need to be further considered. In the implementation of
construction support by the government through Toll Road Business Entities, several
problems have been identified, including the following:
a. The quality of infrastructure at the construction support location, the condition is not

good where massive damage was identified in the first 3 years of the toll road
operational period.

b. Repair of damage, which should still be the responsibility of the implementing
contractor who contracted with BUJT, the construction supporter, was instructed by
the government to take over the settlement by PT HK

The increase in maintenance costs, especially at construction support locations, can
affect the financial feasibility of the Terbanggi Besar – Pematang Panggang – Kayu
Agung toll road.

Based on the previous description, the purpose of this study is to analyze the impact
of the increase in maintenance costs on the financial feasibility of the Terbanggi Besar –
Kayu Agung toll road project on the toll road segment that receives construction support.

To achieve these goals, several sub-objectives will be carried out as follows:
a. The impact of providing construction support by the government through BUJT on the

financial feasibility of the Terbanggi Besar – Pematang Panggang – Kayu Agung toll
road project is identified

b. The preparation of an evaluation of the financial feasibility of the Terbanggi Besar –
Pematang Panggang – Kayu Agung toll road after an increase in maintenance costs at
construction support locations

c. The preparation of recommendations for projects with the provision of construction
support by the government through BUJT on toll road projects in the future.

The expected results of this study are in the form of an overview of the extent of
the impact of construction support on the financial feasibility of toll road projects by
considering the increase in maintenance costs in the construction support segment.
a. For the concessionaire BUJT, the construction support provider, and the parties

involved in the Terbanggi Besar – Pematang Panggang – Kayu Agung Toll Road
project, this study can provide recommendations on the implementation of
construction support through the cross-subsidy of business entities so that it can
optimally provide benefits in the provision of toll road infrastructure;

b. For academics and research in the future, it can be used as a reference in conducting
a study on providing construction support by

Evaluation of the Provision of Construction Support Through Business Entities (Case Study:
Terbanggi Besar Kayu Agung Toll Road)

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6003

Method

The research method is a scientific approach carried out in carrying out research by
the purpose and usefulness of this research. The methods used in this study are classified
as quantitative and qualitative by describing the analysis of the return on investment of
the Terbanggi Besar-Pematang Panggang-Kayu Agung Toll Road project and descriptive
qualitative, namely by compiling recommendations and alternatives.

The data was obtained in this qualitative and quantitative research by analyzing
investment criteria based on data obtained from parties involved in the Terbanggi Besar
– Pematang Panggang – Kayu Agung Toll Road project. The data obtained will then be
processed, and analyzed, and the results will be presented in the form of a descriptive
narrative to answer the questions asked as a formulation of the research problem.
Data Collection Methodology

The data collection in this study aims to collect relevant facts for analysis so that it
can answer the problems that are the reason for this research. Secondary data is data
obtained through agencies, and parties involved in toll road projects, as well as through
existing sources such as journals, literature, and other sources that have been published
previously.

Secondary Data

Secondary data collection is from written data obtained from other sources that can
support primary data obtained from literature studies, and other sources related to the
study being studied. The secondary data needed in the study is as follows: obtained from
the study of BPJT, PT HK, and parties involved in toll road investment projects, literature
studies, and internet and print media. The data needed includes: investment cost data,
operational and maintenance costs, and estimated data on the increase in maintenance
costs charged to the concessionaire BUJT.

Investment Feasibility Analysis

The analysis of investment criteria is the result of the calculation of investment
criteria which is an indicator of the invested capital, namely a comparison between the
total benefits received and the total costs incurred in the form of present value during the
economic life. Decisions arising from the results of the analysis: accept or reject, select
one or more projects, or establish an analysis scale of the rate of return on investment.
The investment criteria that can be used are as follows:
Net Present Value

Net Present Value commonly known as NPV is the difference between expenses
and income that has been discounted using the social opportunity cost of capital as a

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Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6004

discount factor, or in other words is the estimated cash flow in the future that is discounted
at this time. The formula used to get the NPV value is as follows:

Internal Rate of Return

Feasibility analysis using IRR (Internal Rate of Return) parameters is one of the
commonly used methods to evaluate investment projects.

The following are the steps that can be followed in conducting a feasibility analysis

using IRR parameters:

1. Cash Flow identification: Identify and estimate cash flows associated with an
investment project. Cash flow consists of inflows (revenue) and outflows (costs)
during the project period

(Equation 2.1)

(Equation 2.2)

Evaluation of the Provision of Construction Support Through Business Entities (Case Study:
Terbanggi Besar Kayu Agung Toll Road)

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6005

2. Determination of Discount Rate: Determine the discount rate that will be used to
calculate the present value of cash flow. This discount rate reflects the cost of capital
or the expected rate of return on investment.

3. Net Present Value (NPV) Calculation: Calculate NPV using a predetermined discount
rate. NPV is the difference between the present value of cash inflows and cash
outflows. If the NPV is positive, it indicates that the project is making enough profits
to meet the expected rate of return.

4. Internal Rate of Return (IRR) Calculation: Calculate the IRR by looking for the
discount rate that makes the NPV zero. IRR is the rate of return generated by an
investment project. IRR is used to determine if the project's rate of return is higher
than the discount rate used.

5. IRR Analysis: Compare the IRR to the discount rate used. If the IRR is higher than the
discount rate, the project is considered feasible because it generates a rate of return
that exceeds expectations.

6. Outcome Evaluation: Evaluate the results of an IRR analysis by considering other
factors such as risk, consistency with company objectives, and non-financial aspects
of the project. In addition, conduct sensitivity analysis to parameter changes to
understand their impact on project outcomes.

Results and Discussion
Toll Revenue Estimate

On the Terbanggi Besar – Pematang Panggang – Kayu Agung Toll Road, the
assumption of the initial toll tariff is determined by several approaches, namely:
1. Ability To Pay (ATP) and Willingness To Pay (WTP)
2. BKBOK Savings (Large Vehicle Operating Cost Advantage)
3. Analysis of Tariff Sensitivity to Revenue and Traffic Volume

The estimated toll revenue is obtained from the amount of traffic of each group of
vehicles passing through the toll road, multiplied by the distance traveled by the vehicle,
and multiplied by the toll tariff/km of each vehicle group. For the Terbanggi Besar –
Pematang Panggang – Kayu Agung Toll Road, a closed system is used so that the toll
revenue for each section depends on the length of the road for each section. Other income
is obtained from the business of advertising/billboards and rest places with a large revenue
of +1.5% of toll revenue.

The increase in toll rates is assumed to occur every 2 years, by Law Number 38 of
2004 and Government Regulation Number 15 of 2005 concerning Toll Roads and their
amendments. The proposed tariff adjustment is to follow the biennial inflation applied for
the entire calculation year. Furthermore, assuming the initial toll tariff is determined as
follows:
Group I: Rp. 900/km

Group II: Rp. 1,350/km

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Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6006

Group III: Rp. 1,800/km

Group IV: Rp. 2,250/km

Group V: Rp. 2,700/km

Other income is assumed to be worth 1.5% of the total toll tariff revenue obtained
every year, whereas other income comes from the use of assets in the toll road, including
rental in the Rest Area, advertising rental, fiber optic utilization, etc.
Construction support for project feasibility.

The assignment of the Trans Sumatra Toll Road by the Government to PT Hutama
Karya (Persero) can be carried out through a construction support scheme or partial
construction support with funding and construction implementation carried out by the
Government (Indonesia, Presidential Decree Number 131, 2022 page 9).

On the Terbanggi Besar – Pematang Panggang – Kayu Agung Toll Road, the
Government provides construction support along 80 km or worth with a construction cost
of Rp. 7,200,000,000,000 (Rp. 7.2 T) or 32.8% of the total investment cost.

Furthermore, the feasibility of the Terbanggi Besar – Pematang Panggang – Kayu
Agung Toll Road project will be calculated to find out how the financial feasibility of the
project compares before and after the provision of construction support.

Financial analysis aims to determine the financial feasibility of the construction,
operation, and maintenance of toll roads. In this study, the financial feasibility was
evaluated using Cash Flow Analysis, Net Present Value (NPV), Internal Rate of Return
(IRR), and Payback Period. The construction of the project is said to be feasible if the
NPV>0 value, IRR>applicable factual interest rate, and payback return < the toll road
concession period.

The period used in this analysis is during the concession period, which is for 40
years. The Debt Equity Ratio (DER) capital structure used is 30:70 (30% Equity and 70%
Debt) with a discount rate of 10.09% (Business Plan PT HK, 2016). The following is a
cash flow graph of the Terbanggi Besar – Pematang Panggang – Kayu Agung Toll Road
with and without construction support shown in Figure 1 below.

Evaluation of the Provision of Construction Support Through Business Entities (Case Study:
Terbanggi Besar Kayu Agung Toll Road)

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6007

Figure 1

Cash Flow Chart With/Without Ducon

Cash flow in a Toll Road Project is an increase or decrease in the amount of money
owned by a business. In the financial sector, the term serves to describe the amount of
cash generated and consumed in a certain period of time used to pay for construction,
operational, loan, and tax costs (Badriansyah, 2021).

The construction period of the Terbanggi Besar – Pematang Panggang – Kayu
Agung Toll Road Project is until 2019 for all sections to be ready to operate. Figure 4.3
above shows the cash-in and cash-out flows in the Terbanggi Besar – Pematang Panggang
– Kayu Agung Toll Road Project with/without construction support which has a fairly
visible difference in cash-out between the two schemes due to the influence of subsidies
in the form of construction costs along 80 Km. Cash-out without construction support has
an average increase every year relatively higher than Cash-out with construction support
because it is influenced by larger initial investment costs and has an impact on cash-out
in the following years due to larger loan payments every year. On the graph, it can be
seen that the increase in cash out is higher in the early years of the construction period,
especially in cash out without the provision of construction support because the amount
of investment costs is calculated as the movement of money out from equity and loans
for the construction needs of the Terbanggi Besar – Pematang Panggang – Kayu Agung
Toll Road. The components that become Cash Out are investment costs per year, bank
installment payments (principal and interest) per year, O/M fees, etc.
Financial Analysis After Maintenance Cost Increase

The implementation of cross-construction support applied to the Terbanggi Besar –
Pematang Panggang – Kayu Agung Toll Road is an innovative scheme launched by the
government to accelerate the construction of toll roads in Trans Sumatra. This scheme
allows funding for the financially disadvantaged Terbanggi Besar – Pematang Panggang
– Kayu Agung toll road by taking advantage of the Trans Java Toll Road project which

5.000

10.000

15.000

20.000

25.000

30.000

2
0

1
3

2
0

1
5

2
0

1
7

2
0

1
9

2
0

2
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3

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0

2
5

2
0

2
7

2
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2
9

2
0

3
1

2
0

3
3

2
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3
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3
7

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9

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Grafik Cashflow

Cash In Cash Out Dengan Dukon Cash Out Tanpa Dukon

Hera Cahyaning Putri, Iris Mahani, Budi Hasiholan

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6008

has higher financial feasibility. Construction support is provided by the government
through toll road business entities by providing subsidies to the Terbanggi Besar –
Pematang Panggang – Kayu Agung project which is part of the investment cost of the
Trans Java toll road project.

In the scheme of providing cross-construction support, there is a risk of differences
in the physical quality of infrastructure between those built by the government and
business entities. Poor infrastructure quality can increase maintenance costs that must be
borne by the BUJT concessionaire. An increase in toll road maintenance costs can reduce
the financial feasibility of toll roads (Karsaman, 2007)

In the Terbanggi Besar – Pematang Panggang – Kayu Agung Toll Road project, PT
Hutama Karya (Persero) as BUJT has identified the potential for an increase in
maintenance costs since the beginning of the toll road operation. In this study, because
the study will focus on the impact of providing construction support, the estimated
increase in maintenance costs will be limited to the location of the construction support.
To see the increase in maintenance costs on the Terbanggi Besar – Pematang Panggang
– Kayu Agung Toll Road, you can see in the following Graph 2.

Graph 2

Estimated Increase in Maintenance Costs

In 2019 - 2020, when the Terbanggi Besar – Pematang Panggang – Kayu Agung
toll road began operating, there were indications of an increase in maintenance costs with
structural improvements such as rigid pavement reconstruction and flexible pavement
which are generally carried out at five-year periodic maintenance. At that time,

-
20,94

217,67

255,62

209,75
191,10

-
20,74

61,03
75,95

109,69

50,00

100,00

150,00

200,00

250,00

300,00

2019 2020 2021 2022 2023 2024

Ru
pi

ah
(M

ili
ar

)

Tahun
Real Biaya Pemeliharaan" Biaya Pemeliharaan FS

Evaluation of the Provision of Construction Support Through Business Entities (Case Study:
Terbanggi Besar Kayu Agung Toll Road)

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6009

maintenance costs were still the responsibility of the implementing contractor for the
maintenance period of 3 years.

In 2021, the Ministry of PUPR through BPJT and the Directorate General instructed
PT Hutama Karya (Persero) to take over the handling of toll road repairs at construction
support locations, so that the estimated increase in maintenance costs began to be seen in
2021.

This occurred outside of the estimate of the previously prepared Business Plan
study because it did not consider a significant increase in maintenance costs at the
beginning of the toll road operational period with a period of 2021 – 2023, which was
75% of the initial estimate.
Sensitivity Analysis

Based on the analysis of financial feasibility that has been carried out previously, it
can be known that the provision of construction support can improve financial feasibility
indicators. However, with the increase in maintenance costs, it is necessary to review the
indicators of financial feasibility after the increase in maintenance costs. A sensitivity
analysis will be carried out to test how the increase and decrease in maintenance costs
affect the financial feasibility indicators of the Terbanggi Besar – Pematang Panggang –
Kayu Agung Toll Road by considering the provision of construction support.

In the scenario of changing maintenance costs, the discount rate used is 10.09%
according to the assumption in the Business Plan with a large increase and decrease in
maintenance costs of 10% - 50%. To test the sensitivity of the financial feasibility of the
Terbanggi Besar – Pematang Panggang – Kayu Agung Toll Road project, the scenarios
presented in the following Table 1 are carried out:

Table 1
Scenarios in Sensitivity Analysis

Scenarios Against Changes in Maintenance Costs
Iterati
on

Increased
Maintenance Costs

Maintenance Costs
(Rp. Trillion)

1 5% 26
2 10% 27
3 15% 28
4 20% 30
5 30% 32
Iterati
on

Reduced
Maintenance Costs

Maintenance Costs
(Rp. Trillion)

6 5% 23
7 10% 22
8 15% 21
9 20% 20
10 30% 17

The following are the results of the sensitivity analysis in Table 2 as follows.
Table 2

Results of Sensitivity Analysis
Scenarios Against Changes in Maintenance Costs

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Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6010

Iteration
Maintenance
Costs
(Rp Trillion)

NPV
(Rp. Billion)

IRR
(%)

Payback Period

1 26 2102 11,07 20 years 7 months

2 27 172 10,18 21 years 8 months

3 28 -1759 9,45 22 years 7 months

4 30 -3689 8,82 23 years 5 months

5 32 -7550 7,79 24 years 12 months

6 23 5396 14,24 18 years 6 months

7 22 6843 14,38 17 years 6 months

8 21 8291 16,03 16 years 4 months

9 20 9739 18,34 14 years 3 months

10 17 12634 27,55 5 years 10 months

Based on the results of the analysis presented in Table 4.12, it shows that the

scenario for changes in maintenance costs begins to achieve changes in one of the
financial indicators to negative when the scenario increases maintenance costs to 115%
or equivalent to maintenance costs of Rp 28 T.
Toll Road Business Flow According to Regulations

The mechanism for assigning toll roads is regulated in Presidential Regulation
Number 10 of 2014 concerning the Acceleration of the Implementation of Toll Road
Infrastructure and Regulation of the Minister of Public Works and Public Housing
Number 17 of 2021 concerning Mandatory Assignment of Toll Roads. Assignments are
generally given to SOEs with a larger development role.

The stage of toll road assignment by the government to State-Owned Enterprises
(SOEs), in general, consists of the planning stage, the assignment stage, the
implementation and supervision stage, and the termination stage.

Based on a study conducted by Badrinasyah, 2021, the FIRR of the South Japek II
toll road project resulted in a value of 13.90% that did not meet the financial feasibility
criteria based on the Minister of Public Works Regulation 06/2010 because the results
showed that it was less than 4% of the applicable loan interest rate (i = 11%). However,
BUJT Japek II Selatan as the subsidy provider BUJT has other parameters that are used
as the basis for calculating the feasibility of the project so that the project is still feasible.

The Krian – Legundi – Bunder – Manyar (KLBM) toll road project is a toll road in
the province of East Java whose business entity auction process also uses the parameters
of providing construction support on other toll roads. PT Waskita Bumi Wira is a business
entity that won its concession by providing construction support along 25 km on the
Terbanggi Besar – Kayu Agung toll road. This construction support is equivalent to Rp
3T and is estimated to reduce the project's IRR value from the original 18.09% to 14.59%.
The assumption of the IRR reduction with the assumption of traffic and revenue expected

Evaluation of the Provision of Construction Support Through Business Entities (Case Study:
Terbanggi Besar Kayu Agung Toll Road)

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6011

to occur on the KLBM toll road is quite high. Further analysis is needed on the impact of
the granting of Yukon on the condition of the KLBM toll road project with the current
existing conditions.

BUJT, another construction support provider, PT Citra Karya Jabar Tol which has
a concession on the Cileunyi – Sumedang – Dawuan (Cisumdawu) Toll Road, has a
unique condition. Cisumdawu is a project that is considered economically feasible but
requires government support to be financially feasible for investors. The government's
support for the Cisumdawu Toll Road project is to build section 1 (Cileunyi –
Rancakalong (12,025 Km)) to section 2 (Rancakalong – Sumedang (17,150 Km)) from a
total of 6 existing sections. The provision of government support makes the financial
feasibility of the Cisumdawu project reach a fairly high financial feasibility. If the
government only builds one of the two sections, the Cisumdawu project has not yet
achieved adequate financial feasibility. Because the government's task in providing
support must be functional, it cannot only build section 2 in full but section 1 only
partially or vice versa. Because the two sections built by the government make the
Cisumdawu project achieve fairly high financial feasibility, the government uses the
auction method to provide support for the construction of Other Toll Roads. PT Citra
Karya Jabar Tol, which won the Cisumdawu project, provided a subsidy in the form of
construction costs for the construction of the 6 Km Terbanggi Besar – Pematang
Panggang Toll Road amounting to 530 billion (Badrianasyah, 2021).

Conclusion

The conclusions that can be drawn from the research are as follows:
1. The provision of construction support through BUJT on the Terbanggi Besar –

Pematang Panggang – Kayu Agung Toll Road has financially increased the investment
feasibility parameters, including an increase in the IRR value to 12% from the original
9.36% before the provision of construction support; The NPV value with the provision
of construction support has a better NPV value, which is Rp. 3,875 T compared to the
NPV value without construction support of - Rp. 2,044 T; The value of the payback
period without the provision of construction support is 22 years and 3 months and with
the provision of construction support for 19 years and 5 months.

2. The increase in maintenance costs in general does not have a significant effect on the
investment feasibility parameters of the Terbanggi Besar – Pematang Panggang –
Kayu Agung toll road project. The increase in maintenance costs had an effect on the
decrease in IRR by 1.4%. The NPV indicator also decreased by Rp. 198 billion or
5.1%. The payback period has also increased from 19 years and 5 months to 19 years
and 8 months.

3. Recommendations for the implementation of construction support through business
entities in the future include: (1) Increasing the role of BPJT, the Director General of
Highways, and BUJT Concessionaires in supervising the process and quality of the
toll road infrastructure being built; (2) There needs to be an implementation guideline
that regulates the implementation of construction support through Business Entities;

Evaluation of the Provision of Construction Support Through Business Entities (Case Study:
Terbanggi Besar Kayu Agung Toll Road)

Indonesian Journal of Social Technology, Vol. 5, No. 12, December 2024 6013

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