Table of Contents
Author(s): Dwi Sihono Raharjo
The author intends to show that a feasibility study is not the only indicator of an investment or project because a feasibility study is developed based on assumptions and collected data. The more complete and more relevant the collected data, the better qualified the study for management decision-making. On the other hand, if the data is insufficient or irrelevant, the Feasibility study could be misleading information for management decision making. The type of study is usually treated as a Pre-Feasibility Study ("Pre-FS"); therefore, it still needs further development to become a feasibility study. The feasibility study needs certain criteria to be met as guidance for project development. This paper is based on the author's independent research, which still lacks criteria to be classified as a feasibility study, therefore from another perspective, a reader could treat this study only as a Pre-FS. This article intends to present an example of an initiation project prepared with the approach of a study of an investment plan and is accompanied by a follow-up. It does not matter whether the project plan is feasible; what is important here is the benefits of preparing an FS to be input in making further decisions. The author takes a purposive sample of the government's plans to build a Kulon Progo airport in the administrative area of the Special Region of Yogyakarta. Transportation from and to the planned airport is served by various modes, including passenger transportation by train. Moreover, this study specifically discusses the pre-feasibility of investment in passenger transportation by rail based on various assumptions and data obtained at the beginning of planning. Discounted cash flow method (DCF) is used to determine the project's financial feasibility. Based on the simulation, the project is considered not financially feasible. The government can improve the project feasibility by giving some injection (e.g., Passenger Service Obligation, viability gap funding, etc.), but due to research limitations, a further study should be conducted to measure the project's economic benefits. Through the sample project plans analyzed, this article only provides an example of how a feasibility study can guide decision-making on the implementation of a planned project. Maybe the data used is no longer appropriate, but the purpose mentioned above is more for the academic interest of the discipline of knowledge about feasibility studies.