Financial and institutional scheme of aerotropolis conceptual design

Abstract

Abstract The concept of aerotropolis expected to create an integrated transport, effective and efficient airport. It facilitates higher mobility and generates new economic center for regional development. Aerotropolis concept in Indonesia is facing some obstacles such as complex bureaucracy, inadequate infrastructure, and limited funding. This research aims to produce an alternative concept of aerotropolis by taking into account the project feasibility. The research will use life-cycle cost method and involved initial cost, operational, maintenance cost and revenue for project evaluation. The aerotropolis in Indonesia shall consist of the airport, industrial development, mixed-use and supporting infrastructure. The result shows that 15.81% of the internal rate of return might be obtained from this conceptual design. The study also formulates a suitable institutional scheme by considering the cost-sharing between public and private in the project life cycle.