Investment Feasibility Analysis of Deep Well Drilling Project in Bengalon Subdistrict, East Kutai Regency
Keywords:
Clean Water Infrastructure, Deep Well Project, East Kutai, Financial Analysis, Investment Feasibility, Rural DevelopmentAbstract
This study aims to evaluate the investment feasibility of a deep well drilling project in Sepaso Village, Bengalon Subdistrict, under the Department of Public Works and Spatial Planning of East Kutai Regency. The analysis encompasses economic benefit potential, investment costs, and project financial feasibility. The methodology includes cost-benefit analysis, Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP) calculations to determine project viability. Results indicate that the project has promising potential both economically and socially, with a positive NPV of IDR 1.856 billion, IRR of 18.75% exceeding the discount rate of 12%, and a payback period of 3.2 years. The project provides significant social benefits by improving clean water access for over 1,000 households in the area. However, the project faces challenges in infrastructure maintenance and operational sustainability that require special attention. This research contributes to infrastructure investment decision-making in rural water supply systems and provides strategic recommendations for regional government policy formulation.
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