FEASIBILITY ANALYSIS OF TRADITIONAL MARKET CONSTRUCTION PROJECT: A CASE STUDY

Abstract

Traditional markets are one of the characteristics of Indonesian cultural wealth that need to be preserved. Traditional markets contain many noble values of ancestors such as kinship, togetherness and mutual cooperation. This research entitled "Feasibility Analysis of Traditional Market Construction Project: a case study". The study was conducted because there were thousands of traders in the Klender flyover area selling there, causing various negative impacts on the surrounding environment, even though the location was a location that was prohibited from buying and selling according to local government regulation No. 8 of 2007. While, the purpose of this study was to conduct a feasibility study to build traditional markets. This research refers to legal, financial, and technical issues. The methods used are SWOT analysis, payback period, NPV, and sensitivity analysis. Data retrieval is done directly to the location of the study and interview. The conclusions of this study in terms of SWOT, EFAS and EFAS analysis indicate that the respective values of region are 2.33 and 1.88. The external and internal factors are positive, which means that the environment is relatively more likely than the threat, while the strength is relatively superior to the weakness. While the pessimistic initial capital of IDR 4,000,000,000, with an average net income per year of IDR 2,558,235,200 then payback period will be 18.8 months. While the cumulative cash flow by the end of the fifth year is IDR 8,540,270. In conditions of optimism, the initial capital of IDR 4,000,000,000, with an average net income of IDR 3,968,657,600 from the payback period will occur within 12.09 months. While the cumulative cash flow at the end of the fifth year is IDR 14,826,805,100. The statistical market conditions were obtained NPV of IDR 4,324,695,867, while in the optimistic condition the NPV value was IDR 10,144,056,611. With reference sensitivity of 5% or IDR 127,911,760, while the average annual income is IDR 2,430,323,440 in market conditions, cash flow is obtained after the sensitivity of the condition is IDR 7,900,711,900 then the payback period is 19.75 months. Second, using sensitivity of 5% or IDR 198,432,880, got the result average annual income is IDR 3,770,224,720 and money in cash conditionsis IDR 13,834,640,700 and the payback period is 12.73 month. So, from here it can be concluded that the project is still good to be run even though it has been analyzed with sensitivity.