Tag Archive for: Financial Internal Rate of Return (FIRR)

The Pekanbaru-Dumai Trans Sumatra Toll Road project is an economically feasible project but not financially feasible. This study aims to assess the feasibility of toll roads that have low financial viability. Data analysis involves the relationship between the ability to pay (ATP) and willingness to pay (WTP), as well as financial evaluation using FIRR, NPV, and Payback Period. The results of the study show that the Trans Sumatra toll road Pekanbaru Dumai section needs a financial evaluation. The evaluation showed an average ability to pay (ATP) of IDR 237,461.00 and an average willingness to pay (WTP) of IDR 146,046.00. The research found that the optimal rate is IDR 115,500.00 that users can accept. The Financial Internal Rate of Return (FIRR) of the project based on ATP and WTP rates is 8.97%, indicating a relatively low rate of return compared to the Business Plan. Innovative strategies in operational management, including service efficiency and revenue diversification, can improve financial performance and ensure long-term investment continuity.