ANALYSIS OF GOVERNMENT AND NON-GOVERNMENT INVESTMENT IN TPASR PROBOLINGGO DEVELOPMENT

Waste management is a pressing issue in Probolinggo Regency and City, necessitating swift action to mitigate environmental impacts. The construction of the Probolinggo Regional Waste Landfill (TPA) aims to address this challenge through cross-regional sanitation services. Proper financing is crucial for successful infrastructure development, and this study compares government budget (APBN/APBD) and non-government (regional loans) financing schemes. Utilizing a quantitative approach with primary and secondary data, the analysis indicates the viability of both financing options. Government-sourced investment shows an NPV of Rp 431,148,007,790, IRR 40.55%, BCR 1.07, and a 3-year payback period. Meanwhile, non-government or regional loans exhibit an NPV of Rp 110,115,495,905, IRR 9.03%, BCR 1.3, and a 9-year payback period. The decision-making process, weighing financial and non-financial criteria, favors regional loans/loans as the preferred financing scheme for the Probolinggo TPASR project. This research emphasizes the importance of a well-selected financing scheme to ensure the success and sustainability of the Probolinggo Regional Waste Landfill infrastructure.


INTRODUCTION
As a developing country with rapid economic growth and a growing population, Indonesia is faced with serious challenges in managing waste effectively and sustainably.The Sustainable Development Goals (SDGs) target until 2030 is to ensure the availability and sustainable management of clean water and sanitation including waste (Darmawan, 2018).
Probolinggo City is one of the cities in the northern part of East Java Province which has an area of about 5,667 Ha with a population of ± 235,211 people.Based on data from the Environmental Service (DLH) of Probolinggo City, the Probolinggo City Final Processing Site (TPA), namely Bestari Landfill, is located in Sukabumi Village, Mayangan District, Probolinggo City, has a land area of 4 Ha.Currently Bestari Landfill has three cells where the first cell is overloaded and the second cell has almost reached full capacity.Through the Regional Regulation of East Java Province Number 5 of 2012 concerning the Provincial Spatial Plan for 2011-2031, an Environmental Management Infrastructure System Plan has been established in article 48 paragraph (6) point h, namely the Regional Landfill Development Plan, namely Probolinggo, which serves Probolinggo City and Probolinggo Regency.
The limited government budget in financing infrastructure development currently causes a funding gap of 63% or 4,060 trillion rupiah.To overcome the funding gap, the government needs alternative non-government funding sources.https://ojs.transpublika.com/index.php/IJATEIS/E-ISSN: 2828-5425

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In this study, an analysis of government and non-government investment in the development of the Probolinggo TPASR was conducted.The investment feasibility analysis conducted is based on financial aspects.This research aims to explore alternative financing schemes for the Probolinggo TPASR infrastructure.The schemes analyzed in this study consist of government financing schemes (APBN/APBD) and non-government financing schemes, namely Regional Loans/Loan.The method used is Life Cycle Cost (LCC) Analysis by comparing the NPV value of each financing scheme.

LITERATURE REVIEW 2.1. Investment Evaluation Methods
Investment activities are important activities that require large costs and have a long-term impact on business continuity.Therefore, a systematic and rational analysis is needed before the activity is realized.According to Kuswadi in Zainuri (2021), there are various methods of evaluating investment feasibility and one of them is the Discounted Cash Flow (DCF) method, using indicators: a.

Regional Loan Financing Scheme
Regional Loans are all transactions that result in the Region receiving a sum of money or receiving benefits that are worth money from other parties so that the Region is burdened with the obligation to repay.According to PP No. 54 of 2005 and PP No. 30 of 2011, in principle, it is derived from Law No. 33 of 2004 concerning Financial Balance between Central and Regional Governments which explains that there are alternative sources of financing for local governments to accelerate regional economic growth and improve services to the community (Artiningsih et al., 2019).

Regional Waste Disposal Sites (TPASR)
According to Law No.18 of 2008, waste management is a systematic, comprehensive and sustainable activity that includes waste reduction and handling.The final stage of waste management is disposal which is carried out in landfills.According to Law No. 18 of 2008, TPA (Final Processing Site) is a place to process and return waste to environmental media safely for humans and the environment.Meanwhile, the Regional Landfill is a place to process and return waste to the environmental media which is jointly managed by two or more regencies / cities in one province.According to Law No. 23 Year 2014, the development of regional waste systems and management is the authority of the provincial government (Fuller & Petersen, 1995).By building a Regional Waste Landfill, the Regional Government saves more on operation and maintenance costs because it is managed together.

RESEARCH METHODS
The research location is TPSAR Probolinggo which is located in Purut Village, Lumbang District, Probolinggo Regency.The data used in this research are primary and secondary data.The primary data used in this study are the results of interviews conducted with expert sources to identify alternative financing schemes for the Probolinggo Regional Waste Landfill.Secondary data in this study is data obtained from other sources such as Ministerial regulations, SNI, waste technical guidelines, scientific journals/publications and so on.Secondary data is also needed in calculating the amount of costs for investment, operations and maintenance to projected revenues from the construction of the Probolinggo Regional Waste Landfill.After obtaining the data as mentioned above, an investment feasibility analysis is carried out.

Financing Scheme Analysis
Analysis of the financing scheme is used to identify the financing scheme for the construction of the Probolinggo Regional Waste Landfill.The financing scheme used as a comparison in the study is financing sourced from the government budget and financing sourced from non-government sources.In table 3.2 below is a government financing scheme sourced from the APBN and APBD budgets.In this scheme, land acquisition and construction costs are fully sourced from collaboration between the APBN, APBD 1 (East Java Province) and APBD 2 (Probolinggo Regency / City).While all operational and maintenance costs will be the responsibility of APBD 1 (East Java Provincial Government).The second scheme is a financing scheme derived from regional loans (Loan).In this scheme, the initial land acquisition financing is the responsibility of the East Java Provincial Government.The loan will then be used to finance the entire cost of construction and land acquisition of phase 2. In this scheme, the East Java Provincial Government will manage all operational and maintenance costs of the Probolinggo TPASR.The loan financing scheme can be seen in table 3

Annual Cashflow Analysis of each Alternative Financing Scheme for Probolinggo TPASR Infrastructure
The next step is to analyze the cash flow of the Probolinggo TPASR development financing scheme, both through government and non-government financing schemes.Cash flow provides an overview of the amount of funds available to meet operational needs including investment costs for the construction of TPASR and its supporting infrastructure, such as access roads, guard posts, waste transportation fleets and others.
Life Cycle Cost (LCC) is defined as "the total discounted cost of owning, operating, maintaining, and disposing of a building or building system over a specified period of time (Purnamasari, 2022)."(Zainuri, 2021)Life Cycle Cost Analysis (LCCA) is an economic evaluation technique that determines the total cost of owning and operating a facility over a specified period of time.LCC is the cost required by a building over its planned life, including planning and construction costs, maintenance costs (routine maintenance and repair costs), and the cost of demolition and repair of unused materials.
In conducting a financial feasibility analysis, calculations are also carried out on cost components which include expenditure costs and revenue costs.Furthermore, a cash flow analysis is carried out to generate net cash value and is used to evaluate the investment using the following methods: a.

Overview of Probolinggo Regional Waste Landfill Project
Based on the Regional Waste Landfill land selection mapping study conducted by the East Java Provincial Environmental Service in 2019, it was found that the candidate location of the Regional Landfill was in Lumbang District, Probolinggo Regency.After going through the results of the study, the candidate location for the Probolinggo Regional Landfill development plan was determined to be in Purut Village, Lumbang District.Purut Village has a lot of moorland, recorded the amount of moorland in Purut village is 683 Ha.The coordinate position of Purut Village location is at 7°47'30.00"LS and 113°5'32.60"East.The land used for the development of the new landfill in Probolinggo Regency/City is about 20 hectares.The land condition is flat land with a slope of about 2-8%.The study site is mostly moorland.To get to the landfill candidate land uses the main road access, namely Jl.Purut-Lumbang with moderate traffic levels.The distance to the nearest settlement is ± 100 m with low density.The following is documentation of the location in Purut Village.

5.
Water source comes from borehole wells 6.
Electricity source is from the State Electricity Company (PLN) 6.

Life Cycle Cost Proyek TPA Sampah Regional Probolinggo
The identification of Life Cycle Cost in the Probolinggo Regional Waste Landfill development project consists of development investment costs (capital expenditure) which are divided into construction and land acquisition stages.While the operational and maintenance costs of the Probolinggo Regional Waste Landfill every year are assumed according to the percentage that has been identified in chapter 3. Projected revenues sourced from gate fees (tipping fees) are calculated based on the projected volume of waste entering the landfill every day.All of this cost identification data was obtained from the results of the Probolinggo TPASR feasibility study conducted in 2020 and supported by other data both from interviews with related SKPDs and other studies.The following sub-chapters each explain the identification of costs in the construction of the Probolinggo Regional Waste Landfill.

Investment Costs.
Investment costs in the Probolinggo TPASR development project consist of land acquisition costs and construction stages that will be carried out in 2 stages, namely in 2025 and 2035.The following are the results of the identification of investment costs for the Probolinggo TPASR with a sanitary landfill system.Revenue Analysis.
The projected revenue is derived from the value of tipping fees paid by the Probolinggo Regency and City Governments as service recipients of the Probolinggo TPASR.In addition to the source of revenue from gate fees, the Probolinggo Regional TPSAR also optimizes the source of revenue from processed waste.The following is the result of the forecast projection value of TPASR Probolinggo's tipping fee and processed waste revenues.Source: Author's Analysis, 2023

Analysis of Operational and Maintenance Costs of Probolinggo Regional TPASR
The operational and maintenance costs of the Probolinggo Regional Waste Landfill for each year are calculated with the percentage assumptions described in Chapter 3. The operational and maintenance costs of the Probolinggo TPASR can be seen in the following table: Source: Author's Analysis, 2023

Cash Flow Analysis of Financing Scheme
The following describes the cash flow analysis of each financing scheme of the Probolinggo TPASR development assessed from the perspective of the Provincial Government as the PJPK of the Probolinggo TPASR project.

1.
Cash Flow Analysis of Government Budget Financing Scheme (APBN/APBD) Funding sources originating from the APBN, Provincial APBD and Regency and City APBD.The division of roles in this financing scheme sourced from the Government budget can be seen in table 4.5(irman, 2013).The APBN plays a role in financing stage 1 construction.The Provincial APBD plays a role in financing stage 1 land acquisition, stage 2 land acquisition and stage 2 construction as well as operational financing and financing of TPASR Probolinggo during TPASR operations.Meanwhile, the Regency/City APBD plays a role in stage 2 construction.The division of roles in the stage 2 construction stage is that the APBN bears 70% of the construction costs amounting to Rp. 58,875,722,327, 00, the Provincial APBD bears 20% of the stage 2 construction costs amounting to Rp. 16,821,634,951,00  Source: Author's Analysis, 2023

2.
Cash Flow Analysis of Regional Loan Financing Scheme Cash flow analysis of regional loan financing comes from APBD I (Provincial APBD) and regional loans.The financing scheme sourced from this local government loan can be seen in table 4.6.The financing scheme with this regional loan is sourced from the Provincial APBD budget for land acquisition costs, operational costs and TPASR maintenance.While the regional loan is used to finance the entire cost of landfill construction which consists of 2 (three) stages of development.

3 .
JOURNAL ON ADVANCED TECHNOLOGY, ENGINEERING, AND INFORMATION SYSTEM https://ojs.transpublika.com/index.php/IJATEIS/E-ISSN: 2828-5425 Source: Survey results, 2020 Figure 2. Location Documentation of Purut Village, Lumbang District 4.2.Service Area Plan The service area plan of TPASR Probolinggo covers Probolinggo Regency (urban and rural) in the western region and Kademangan Sub-district of Probolinggo City.The sub-districts that receive services are as follows: Source: Probolinggo District/City Government Figure Map of the service area