AN ANALYSIS ON THE HIGHEST AND THE BEST USE IN LAND OWNED BY PT PLN (PERSERO) AT PAYA PASIR, MEDAN, AS AN ALTERNATIVE STRATEGY OF ASSET UTILIZATION
Milha Listyohadi (a*), Sukaria Sinulingga(b), Sugiarto Pujangkoro(c)

Universitas Sumatera Utara

Abstract

PT PLN (Persero) is an Indonesian government-owned corporation that provides electricity needs for both the Industrial and Community sectors. In accordance with the Regulation of the Minister Number: PER-13/MBU/09/2014 about the utilization guideline of State-owned fixed assets Article 1 that the Board of Directors must prepare a list of fixed assets that are lacking and / or not optimally utilized. Currently, PT PLN (Persero) has an asset in the form of vacant land that has not been optimally utilized.
In order that the vacant land can be used optimally then it is necessary to do Highest and Best Use analysis on the land. Highest and Best Use analysis aims to identify the use of the most profitable and competitive property for the land. The Highest and Best Use analysis uses four criteria that are physically possible, legally permitted, financially feasible, and have maximum productivity.
From result of research got result for development of PLTG with Payback Period for 2 years 7 months, with value of NPV equal to Rp 2,818,837,070,855, - IRR value equal to 28,69% and PI equal to 1,91 with Investment Value of Rp 2.203.152.758.023, - it can be concluded that the investment options can be executed.

Keywords: Highest and Best Use Analysis, PLTG, Land Valuation

Topic: Strategic Management, Entrepreneurship and Contemporary Issues