Feasibility Study of the Construction of Nibung (Pelawan) – Simpang Km 46 (Biatan) Bridge in East Kutai Regency

Abstract

Infrastructure development plays a vital role in driving economic growth, improving quality of life, and expanding interregional accessibility. East Kutai Regency, rich in natural resources in the agriculture, plantation, and mining sectors, continues to face infrastructure limitations, particularly in its interior regions. One proposed solution is the construction of the Nibung (Pelawan)–Simpang KM 46 (Biatan) Bridge to strengthen connectivity, facilitate mobility, and enhance transportation efficiency. A comprehensive feasibility study was conducted, encompassing technical, social, environmental, and financial aspects. The financial analysis employed the Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR), and Payback Period methods, taking into account both investment and operational costs. The study compared three route alternatives to identify the most optimal option. Alternative 1 (A1) was selected as the most feasible alignment, with a total initial investment of IDR 394,540,113,870, covering construction, planning, supervision, and land acquisition costs. The financial evaluation yielded an NPV of IDR 48.6 billion, an IRR of 17.3%, a BCR of 1.22, and a Payback Period of approximately 8.5 years, indicating the economic viability of the project. A1 also demonstrated advantages in operational efficiency, travel time savings, and lower risk of land conflict. Based on multi-criteria and sensitivity analyses, the project is recommended for implementation as a strategic infrastructure initiative to enhance regional connectivity.