Abstract:
Indragiri Hilir regency is one from 11 regencies in Riau province. The region broad of
Indragiri Hilir regency is about 11.605,97Km2 which most of the facility and infrastructure are still
limited. Due to this condition, Indragiri Hilir regency's government determined to complete, add
and repair everything become having good infrastructure with good qualities such as street,
market, school, hospital religious building, drainage and pure water.
This research investigated either proper or not the PDAM investment project based on
economic analysis so that it would be resulted a recommendation to the related institution.
Indicators of proper investment were NPV, BCR, IRR, BEP and sensitivity analysis
Calculation result of investment cost in this research which used method of approximate
approach was Rp 59.310.429.780,00. The analysis result of proper investment for all parameter
showed that the investment was proper to be continued because in the level of interest used was
about 12% of proper investment, NPV value was positive, BCR value was above 1, IRR value was
more than 12% (loading interest investment), and BEP was less than 24 years (project time)
