INVESTMENT PROJECT ANALYSIS FOR THE DEVELOPMENT OF FINAL WASTE PROCESSING AND TREATMENT FACILITY (TPPAS) FOR WEST JAVA PROVINCE THROUGH PUBLIC PRIVATE PARTNERSHIP (PPP) SCHEME FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By ANISA RIZKITALIANI Student ID: 29121430 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG 2024 ii ABSTRACT Investment Project Analysis for the Development of Final Waste Processing and Treatment Facility (TPPAS) for West Java Province through Public-Private Partnership (PPP) Scheme By Anisa Rizkitaliani 29121430 (Master of Business Administration Program) Urban areas face challenges due to population growth and increased urban activity in sectors like housing, industry, and trade. One such issue is the growing amount of waste produced. Indonesia's waste problem has been getting worse every year. Due to the increasing difficulty in locating land for landfill sites (TPAs), several neighboring cities and counties have developed shared landfill procurement and utilization (Regional Landfills). The government bears the responsibility and obligation of providing infrastructure, which includes final waste disposal sites. But there is a financial gap that needs to be filled due to the limitations on funding for infrastructure development. Because of this, the government intends to use a Public-Private Partnership (PPP) program to involve the private sector and relieve financial pressure on the provision of public infrastructure. Investment analysis was conducted to examine the financial projection of this project using capital budgeting analysis. There are three scenarios in this project: scenarios with funding using VGF, using AP, and from the private sector. The results show that the scenario using 60% VGF is the best or most optimal scenario. The resulting NPV value shows a positive figure of Rp 104,639,009,004. The payback period will occur 7.79 years after the project begins. The resulting Internal Rate of Return (IRR) is 19.15%, which is higher than the Weighted Average Cost of Capital (WACC) of 11.36%. It can be concluded that the development project of the Regional Waste Processing Site (TPPAS) in West Java is financially feasible. iii ABSTRAK ANALISIS PROYEK INVESTASI PADA PEMBANGUNAN TEMPAT PENGOLAHAN DAN PEMROSESAN AKHIR SAMPAH (TPPAS) PROVINSI JAWA BARAT MELALUI SKEMA KERJASAMA PEMERINTAH DAN BADAN USAHA (KPBU) Oleh Anisa Rizkitaliani 29121430 (Program Studi Magister Administrasi Bisnis) Kawasan perkotaan menghadapi tantangan akibat pertumbuhan populasi dan peningkatan aktivitas perkotaan di sektor-sektor seperti perumahan, industri, dan perdagangan. Salah satu permasalahan yang muncul adalah jumlah sampah yang terus meningkat. Masalah sampah di Indonesia semakin memburuk setiap tahun. Karena semakin sulit menemukan lahan untuk tempat pembuangan sampah (TPA), beberapa kota dan kabupaten tetangga telah mengembangkan pengadaan dan pemanfaatan tempat pembuangan bersama (TPA Regional). Pemerintah bertanggung jawab dan berkewajiban untuk menyediakan infrastruktur, termasuk tempat pembuangan sampah akhir. Namun, ada kesenjangan keuangan yang perlu diisi karena keterbatasan pendanaan untuk pengembangan infrastruktur. Oleh karena itu, pemerintah bermaksud menggunakan program Kemitraan Pemerintah-Swasta (PPP) untuk melibatkan sektor swasta dan meringankan tekanan keuangan pada penyediaan infrastruktur publik. Analisis investasi dilakukan untuk meneliti proyeksi keuangan proyek ini menggunakan analisis penganggaran modal. Ada tiga skenario dalam proyek ini: skenario dengan pendanaan menggunakan VGF, menggunakan AP, dan dari pihak swasta. Hasil menunjukkan bahwa skenario dengan menggunakan VGF 60% merupakan skenario terbaik atau paling optimal. Nilai NPV yang dihasilkan menunjukkan angka positif sebesar Rp 104,639,009,004. Periode pengembalian modal akan terjadi 7,79 tahun setelah proyek dimulai. Tingkat Pengembalian Internal (IRR) yang dihasilkan sebesar 19,15%, yang lebih tinggi dari Biaya Modal Rata-rata Tertimbang (WACC) sebesar 11,36%. Dapat disimpulkan bahwa proyek pengembangan Tempat Pemrosesan Sampah Regional (TPPAS) di Jawa Barat layak secara finansial. iv INVESTMENT PROJECT ANALYSIS FOR THE DEVELOPMENT OF FINAL WASTE PROCESSING AND TREATMENT FACILITY (TPPAS) FOR WEST JAVA PROVINCE THROUGH PUBLIC PRIVATE PARTNERSHIP (PPP) SCHEME By Anisa Rizkitaliani 29121430 Master of Business Administration Program Institut Teknologi Bandung Approved Bandung, 26 August 2024 Supervisor Oktofa Yudha Sudrajad, S.T., M.S.M., Ph.D. v DECLARATION OF NON PLAGIARISM Anisa Rizkitaliani 29121430 August 2024 vi FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institute of Technology, and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner, however the citation and summarization can only be proceeded upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Rizkitaliani, A. (2023): Investment Project Analysis for the Development of Final Waste Processing and Treatment Facility (TPPAS) for West Java Province through Public-Private Partnership (PPP) Scheme, Masters’ Final Project, Institut Teknologi Bandung. Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. vii ACKNOWLEDGMENT The author would like to send a greatest gratitude to Allah SWT for giving the strength, health, patience and blessing to finish this final project titled “Investment Project Analysis for the Development of Final Waste Processing and Treatment Facility (TPPAS) for West Java Province through Public-Private Partnership (PPP) Scheme” as one of the requirements to complete Master of Business Administration Program at School of Business and Management, Institute of Technology Bandung. The author also wants to express gratitude and warmest thanks to all parties who helped and supported the author during the process of finishing this thesis. Hence, the author would like to sincerely say thanks to: 1. My beloved family, my father, mother and brother, for the endless support and prayers. 2. Mr. Oktofa Yudha Sudrajad, S.T., M.S.M., Ph.D as final project advisor who always give guidance to finish this final project. 3. PT. Studio Cilaki 45, for kindly giving author the opportunitiy to share the topic, as well as the data needed for finishing this final project. 4. The entire MBA ITB lecturers, who had given valuable knowledge and experience that will be very useful for the author in the future. 5. The entire MBA ITB staffs, who always help and give assistance in academic matters. 6. All colleagues Young Professional 66C class friends, for the unforgettable experiences and memories for this past years.