Economic Feasibility Study Of The HIPAM Clean Water Network System, Genting Village, Merjosari Village, Lowokwaru District, Malang City
Abstract
The need for clean water for the community is urgently needed, therefore the
HIPPAM (Drinking Water Users Association) was formed which is a legal
forum according to government regulations and regulations to manage the
supply of clean water to the community. There were many obstacles that
occurred during operation, one of which was the regional regulation of East
Java Province which required HIPPAM to pay groundwater withdrawal tax
which ultimately affected the increase in the price of clean water. One area
that was realized from the existence of this regulation was Genting Village,
Merjosari Subdistrict, Lowokwaru District, Malang City. Given these
problems, the purpose of this study is to analyze the economic feasibility of
determining the price of clean water in the area. The results of this study
show economic feasibility based on bank interest of 9%, Benefit Cost Ratio =
2.44, Net Present Value = Rp. 16,069,451,606, Internal Rate of Return =
13.99%, payback period = 13 years, and sensitivity analysis with IDR prices.
1,000/m3 and a 25% increase every 4 years following inflation.
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