Feasibility Analysis of Availability Payment Scheme Implementation in Infrastructure Projects: Case Study of Trans Sumatera Toll Road Development Phase II

Abstract : Toll road infrastructure development is a key strategy in improving connectivity and economic growth in Indonesia. The Trans Sumatra Toll Road Phase II, including the Betung – Tempino – Jambi section, is a national strategic project that uses the Availability Payment (AP) scheme. This scheme guarantees the toll road operator’s income based on predetermined service standards, regardless of traffic volume. This study aims to evaluate the financial feasibility of the Bayung Lencir – Tempino – Simpang Ness Toll Road project by comparing conventional and Availability Payment financing schemes. The analysis was conducted using financial indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), Payback Period, and Discounted Payback Period. The results show that without the Availability Payment scheme, the project is not financially viable as it has a negative NPV and a lower IRR than the Weighted Average Cost of Capital (WACC). However, with the implementation of the Availability Payment scheme, the financial indicators show positive results, indicating that the project becomes feasible. These findings provide implications for the government in determining sustainable infrastructure project funding policies as well as for investors in assessing the feasibility of toll road project investments in Indonesia.