INVESTMENT ANALYSIS OF KARANGAGUNG TUBAN FISHING PORT DEVELOPMENT WITH PPP AVAILABILITY PAYMENT FINANCING

Abstract

As the largest maritime country, Indonesia holds tremendous potential in fisheries and marine resources, serving as a primary driver for national economic growth. Despite the substantial potential for fishery activities in the Karangagung region, limited infrastructure and government budget constraints hinder the optimization of these activities. This research aims to conduct an investment analysis for the development of a fishery port in Karangagung, utilizing the Government and Business Entity Cooperation (PPP) scheme with Availability Payment financing. The investment analysis methods employed encompass the calculation of Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit Cost Ratio (BCR), considering Availability Payment financing. Additionally, the study will analyze the Life Cycle Cost (LCC) in the development of the Karangagung Fishery Port. Therefore, this research aims to provide a comprehensive overview of both financial and non-financial potential benefits derived from the development of the Karangagung fishery port. Under the Availability Payment scheme, the Project Responsible Party will compensate the Business Entity reasonably for investments, operational costs, and fair profits. They will also be granted permission to provide these services for a specific duration. Upon the conclusion of this period, all assets will become government property. The analysis results indicate that the PPP Availability Payment financing scheme yields a positive NPV, an IRR value of 7.26% with returns in the 24th year, and a BCR value exceeding 1. Hence, this PPP scheme can be deemed feasible for implementation in the Karangagung Fishery Port development project.