SHORELINE PROSPERITY: INVESTIGATING THE ECONOMIC VIABILITY OF BUBON PORT THROUGH A FEASIBILITY STUDY

Abstract

Indonesia, with its extensive maritime territory, holds significant potential for maritime activities, and shipping plays a crucial role in driving the nation's economy and societal interactions. To facilitate sea transportation effectively, ports hold a vital position, serving as essential facilities that link various regions. The success of a port is contingent on its effectiveness, efficiency, and adequacy of facilities. Given this importance, the physical development and associated costs of ports necessitate meticulous assessment through feasibility studies, which help identify viable projects and mitigate potential losses. In this context, the Port of Kuala Bubon in West Aceh is a relevant candidate for such a study.

Located in Gampong Teungoh Village and serving as a key link for sea transportation in the west-south region, the Port of Kuala Bubon is vital in connecting communities in West Aceh to Simeuleu Island and neighboring islands. With increasing maritime activities and the rise in passenger and goods transportation through this port, the need for further development has become evident. This study focuses on evaluating the economic feasibility of constructing the Kuala Bubon Harbor Pier in the Samatiga District, West Aceh Regency.

The feasibility assessment employs four analytical methods: Net Present Value (NPV), Benefit Cost Ratio (BCR), Internal Rate of Return (IRR), and Break Even Point (BEP). By leveraging these methodologies, the study aims to determine the viability of the infrastructure development project, taking into account the involvement of various stakeholders, including the government and private sector.

The research demonstrates the significance of investing in port infrastructure, encompassing the expansion of piers, fenders, breakwaters, and warehouses, to enhance crossing activities involving passengers, goods, and services between islands. Considering the potential impact on regional connectivity and the economy, it becomes essential to ascertain the feasibility of the development project and its alignment with long-term objectives. Through the feasibility study, risks associated with the project can be assessed and mitigated, enabling informed decision-making and paving the way for an efficient and successful development process.