Life cycle cost analysis of the transit-oriented development concept in Indonesia

In developing countries, such as Indonesia, cars are still the main means of transportation. This causes several problems in metropolitan areas, such as increases in the urban population, as well as increases in the volume of vehicles, more air pollution, and greater traffic congestion. For light rail transit (LRT), transit-oriented development (TOD) is expected to increase public interest in using trains and reducing the numerous problems associated with the use of cars. However, LRT based on TOD requires a significant financial investment. Therefore, a financial feasibility study is needed to determine if a project is feasible. The initial and operational-maintenance costs were used as a case study, and a literature review was utilized to analyze the amount of money needed to develop TOD in other countries. The dynamic system was the methodology used to determine the amount of revenue. Based on the result of the lifecycle cost (LCC) analysis, internal rate of return (IRR) of the Jabodebek LRT project based on TOD is 9.75% and a total of net present value (NPV) is 190 trillion rupiahs.