Financial Investment Analysis in Conceptual Design Kali Besar Restoration Project Based on Benchmarking Process in Cheonggyecheon Restoration Project

Abstract Research Plan

Jakarta is the capital city of Indonesia which is located in the northern Java. Jakarta is divided into five sections and has a population about 10 million people. The city is the most popular in Indonesia and has the rate of growth of urbanization. The history of the city began with the small city, called Batavia or Jayakarta. The old city (Batavia) is located in the north of Jakarta as a center of Dutch Colonial in pre-independence time. In this region there is a river that has the function as center of city and transportation hub of human activity. However, because of the population growth in Jakarta and urbanization increasing of the city, this area is becoming congested and polluted.

 
The biggest problems facing Jakarta besides flooding and congestion is pollution of water bodies. From 13 rivers in Jakarta, there is no one worthy as raw water source. One of rivers that no longer have a function as a body of water and raw water provider is Kali Besar. Long times ago, this river used to be inland waterways in Jakarta. But, it change after people evolve urbanization paradigm.

 
On the other hand, the government has a plan to improve the city and reduce pollution. One of the chosen path is the restoration of Kali Besar River which is the source of the city's history. Lack of budget funds make the implementation of this project stunted and not optimal. Based on these problems, the authors find solutions to attract investors to finance construction work in that project. Investment feasibility analysis will be carried out in Kali Besar restoration project. Value of the investment feasibility analysis will be obtained by using the method Life Cycle Cost, Net Present Value (NPV) and Internal Rate of Return (IRR).

 
Feasibility analysis research done by applying a comparative study between Kali Besar Restoration Project (Jakarta) and Cheonggyecheon Restoration (Korea). Author choose Cheonggyecheon as benchmarking project because it has function and problem identic with Jakarta.

Special Purpose

Looking at the problem from Jakarta City and its development, this research has a spesific purpose:

a.       Knowing the investment analysis of river restoration project in Conceptual Design River Kali Besar Restoration program (with methods IRR and NPV value).

b.      Knowing Cheonggyecheon River Restoration History as a best benchmarking which applied the same project.

Importance of Research Planned

This research is very important because it gives solution in Indonesia and some other countries are experiencing the same problem (water polluted). Most developing countries are still have major problems such as environmental pollution and city planning. This research is important to provide a solution and settlement overview of the urban planning activities, like a restoration project. River restoration can provide flood protection function (Hwang K. Y., 2004) and measuring the rate of water flow (Park, 2007). River restoration aims to improve the quality and function of rivers and to restore the to support healty and thriving ecosystems. Improved landscapes and views of waterways can increase property values by between 6-8% (TCPA, 2005). Life Cycle Cost Analysis is the important thing to develop investment feasibility to build this project in Indonesia.