Sensitivity of private and semi-public income and financing allocation in supporting infrastructure buildings for learning facilities

Harun Alrasyid, Rachmad Basuki, Retno Indryani, Yusroniya Eka Putri*, Rachman Waliulu, Maria Dyah Pramesthi Kusumawardani

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

ITS Tower provide representative supporting facilities for pedagogical activities in the Science and Technology Area at Sepuluh Nopember Institute of Technology (ITS) to help educational facilities. Based on theplanning and master plan design, the building will be built on an area of 1052.64 m2 and will have 11 floors with a total building area of 9121.41 m2. Vertically this building is divided into two zones, namely the private function zone (classroom area) and the semi-public function zone (semi-outdoor communal area, commercial area, and multipurpose area (auditorium). The problem lies in whether the allocation of ITS' financing and the income received from leasing the semi-public function zone is sufficient to recoup investment costs and the required operational and maintenance costs. This research aims to determine the level of investment feasibility and the sensitivity level of ITS' financing allocation. Sensitivity analysis is done based on changes in income levels. Sensitivity is calculated with the scenario of decreasing the occupancy rate of semi-public facilities and increasing composition funding based on the allocation of non-PNBP ITS financing. This research uses a complex Net Present Value (NPV) method, supported by the Internal Rate of Return (IRR) and Payback Period (PP) methods. This research is structured as follows, literature review, data collection, compiling cash inflows and outflows, feasibility analysis, sensitivity analysis, drawing conclusions and suggestions. The financial feasibility analysis uses the Net Present Value (NPV) parameter with an investment period of 10 years and a MARR of 5,56%. First, a feasibility analysis is conducted based on the cash inflows obtained from rental proceeds in the semi-public zone. Then, a sensitivity analysis was carried out to determine the amount of budget allocation that ITS must provide to cover the lack of investment, operational, and maintenance costs. The feasibility analysis results found that the investment was unfeasible with only cash inflows from the semi-public function zone rental (NPV=-Rp23,619,655,850). If the occupancy rate is less than 87%, ITS must further allocates their budget in addition to investment, operational, and maintenance costs.

Original languageEnglish
Title of host publicationAIP Conference Proceedings
EditorsAndyka Kusuma, Jaka Fajar Fatriansyah, Radon Dhelika, Mochamad Adhiraga Pratama, Ridho Irwansyah, Imam Jauhari Maknun, Wahyuaji Narottama Putra, Romadhani Ardi, Ruki Harwahyu, Yulia Nurliani Harahap, Kenny Lischer
PublisherAmerican Institute of Physics Inc.
Edition1
ISBN (Electronic)9780735446410
DOIs
Publication statusPublished - 6 Feb 2024
Event17th International Conference on Quality in Research, QiR 2021 in conjunction with the International Tropical Renewable Energy Conference 2021, I-Trec 2021 and the 2nd AUN-SCUD International Conference, CAIC-SIUD - Virtual, Online, India
Duration: 13 Oct 202115 Oct 2021

Publication series

NameAIP Conference Proceedings
Number1
Volume2710
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference17th International Conference on Quality in Research, QiR 2021 in conjunction with the International Tropical Renewable Energy Conference 2021, I-Trec 2021 and the 2nd AUN-SCUD International Conference, CAIC-SIUD
Country/TerritoryIndia
CityVirtual, Online
Period13/10/2115/10/21

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