Feasibility Study on the Development of the Jatiluhur 1 Downstream Drinking Water Supply System (SPAM) for Service Coverage in Teluk Jambe District, Pangkalan District, and Tegal Waru District, Karawang Regency, West Java

Abstract

This study aims to evaluate the feasibility of developing the Jatiluhur 1 Downstream Drinking Water Supply System (SPAM), which is planned to serve the districts of Teluk Jambe, Pangkalan, and Tegal Waru in Karawang Regency, West Java. The study includes an analysis of investment and operational cost requirements, as well as a financial feasibility assessment based on four key indicators: Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR), and Payback Period (PP). The analysis results indicate that the project requires an initial investment of IDR 19,575 million and is projected to generate a cumulative revenue of IDR 61,934 million over the project’s lifespan. The financial feasibility evaluation yields a positive NPV of IDR 4,269 million, an IRR of 12.7% (exceeding the discount rate of 10%), a BCR of 1.22, and a Payback Period of 7 years and 9 months. These four indicators collectively demonstrate that the project is economically and financially viable. Therefore, the development of the Jatiluhur 1 Downstream SPAM is highly recommended as a sustainable clean water supply solution for the target region.