Economic Feasibility Analysis of Investment in International Circuit Development in the Mandalika Special Economic Zone (SEZ)

The Mandalika Special Economic Zone (SEZ) has been planned from the start to build facilities and infrastructure by creating a management concept set out in the main plan for the area with the theme of eco green tourism. One of the developments that has been developed in the Mandalika SEZ is the Mandalika International Circuit. The construction of the Mandalika Circuit certainly provides many positive aspects, especially in the local economic sector. The impact of Covid-19 in the Mandalika SEZ could trigger a decline in the tourist market. The circuit as a symbol of the Mandalika SEZ was also affected by Covid-19, this resulted in a reduction in visitors to events at the Mandalika International Circuit. So an in-depth analysis is needed regarding the changes that have occurred as a result of Covid-19, especially in the financial aspect. For feasibility from the financial aspect, cash flow calculations are used with investment feasibility parameters, namely; NPV (Net Present Value), BCR (Benefit Cost Ratio), IRR (Internal Rate of Return), and PP (Payback Period). From the analysis of the financial aspects, the NVP value was obtained with an interest rate of 8.75% per year, in the initial planning phase the value was obtained at IDR 202,628,841,832,- in 2035, then during the operational phase the NVP result was IDR 14,497,533,652,- in 2041, and the NPV multiplier effect is IDR 552,401,765,515 in 2041. The BCR value in the initial planning phase is 1.112 in 2035. During the operational phase the BCR value is 1.008 and in the phase due to the impact of the multiplier effect it is obtained The BCR value is 1.304 in 2041. The IRR value in the initial planning phase was 13.96% in 2035. In the operational phase the IRR was 12.56% and the IRR due to the impact of the multiplier effect was 14.43% in 2041 . The PP value for the initial planning phase is obtained over 8 years. Meanwhile, in the operational phase, PP was obtained for 11 years and PP due to the impact of the multiplier effect was obtained for 9 years. The Mandalika International Circuit project was declared feasible based on analysis data that had been carried out in the operational phase and due to the impact of the multiplier effect, even though it took longer than the initial planning phase.