Buyung Mantap, Frando Heriss Mamuri
The imbalance between increasing vehicle volumes and road infrastructure development has triggered congestion escalation in urban central business areas. This study aims to evaluate the economic and technical feasibility of a 12.5-kilometer toll road development project and optimize construction costs through a Value Engineering approach. The analysis was conducted using the Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR), and Payback Period indicators with a 30-year investment period. The initial analysis indicates that the project is financially feasible, with an NPV of IDR 450.2 billion, an IRR of 12.4%, and a BCR of 1.28. The implementation of Value Engineering through precast system optimization and material substitution resulted in construction cost savings of 14.2% or IDR 185 billion. After optimization, the NPV increased to IDR 635.7 billion, the IRR improved to 14.1%, the BCR reached 1.45, and the Payback Period was reduced to 11.8 years. The integration of economic evaluation and value engineering provides a more efficient and sustainable toll road development strategy. This approach can serve as a basis for urban infrastructure investment decision-making by considering technical, economic, and long-term risk aspects.