Evaluation of Public Infrastructure: A Case of Sapon Dam Kulon Progo, Indonesia
One of problems in making a government’s balance sheet is to determine the value of infrastructure run by the government. It is because the infrastructure is valueless and closely similar in characteristics to public goods. In general, most researchers would use travel cost method to value governmen...
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Format: | UMS Journal (OJS) |
Language: | eng |
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Muhammadiyah University Press
2017
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Online Access: | https://journals.ums.ac.id/index.php/JEP/article/view/3245 |
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author | Prastiwi, Nuni Budi Makhfatih, Akhmad Dwiputri, Inayati Nuraini |
author_facet | Prastiwi, Nuni Budi Makhfatih, Akhmad Dwiputri, Inayati Nuraini |
author_sort | Prastiwi, Nuni Budi |
collection | OJS |
description | One of problems in making a government’s balance sheet is to determine the value of infrastructure run by the government. It is because the infrastructure is valueless and closely similar in characteristics to public goods. In general, most researchers would use travel cost method to value government infrastructure. Yet, this method is very sensitive toward respondents’ characteristics and in many cases, it results in over estimated valuation. Meanwhile, a valuation technique using cost approach for government infrastructure reflects less its benefits and in many cases, it also tends to be undervalued.Against the aforementioned issue, this research attempted to evaluate state-owned infrastructure using a capitalization method. The object of this research was Sapon Dam located in Kulon Progo Regency, Indonesia. This dam is a state-owned asset functioned to sustain agricultural development particularly for irrigating paddies. This research was aimed at estimating the value of Sapon Dam using a capitalization method. In this method, the absence of infrastructure value was replaced with difference-in-differences analysis for proxy income.The data used in this research was secondary data which included paddy planting areas in irrigated and rain-fed fields, and also farmers’ net income. It was found that the estimated value of Sapon Dam per December 15th2015 was IDR 96,659,385,018.72. |
format | UMS Journal (OJS) |
id | oai:ojs2.journals.ums.ac.id:article-3245 |
institution | Universitas Muhammadiyah Surakarta |
language | eng |
publishDate | 2017 |
publisher | Muhammadiyah University Press |
record_format | ojs |
spelling | oai:ojs2.journals.ums.ac.id:article-3245 Evaluation of Public Infrastructure: A Case of Sapon Dam Kulon Progo, Indonesia Prastiwi, Nuni Budi Makhfatih, Akhmad Dwiputri, Inayati Nuraini Infrastructure valuation; capitalization approach; difference-in-differences; dam; direct capitalization. H41; Q51; Q58 One of problems in making a government’s balance sheet is to determine the value of infrastructure run by the government. It is because the infrastructure is valueless and closely similar in characteristics to public goods. In general, most researchers would use travel cost method to value government infrastructure. Yet, this method is very sensitive toward respondents’ characteristics and in many cases, it results in over estimated valuation. Meanwhile, a valuation technique using cost approach for government infrastructure reflects less its benefits and in many cases, it also tends to be undervalued.Against the aforementioned issue, this research attempted to evaluate state-owned infrastructure using a capitalization method. The object of this research was Sapon Dam located in Kulon Progo Regency, Indonesia. This dam is a state-owned asset functioned to sustain agricultural development particularly for irrigating paddies. This research was aimed at estimating the value of Sapon Dam using a capitalization method. In this method, the absence of infrastructure value was replaced with difference-in-differences analysis for proxy income.The data used in this research was secondary data which included paddy planting areas in irrigated and rain-fed fields, and also farmers’ net income. It was found that the estimated value of Sapon Dam per December 15th2015 was IDR 96,659,385,018.72. Muhammadiyah University Press 2017-07-31 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://journals.ums.ac.id/index.php/JEP/article/view/3245 10.23917/jep.v18i1.3245 Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan; Vol 18, No 1 (2017): JEP 2017; 93-101 2460-9331 1411-6081 eng https://journals.ums.ac.id/index.php/JEP/article/view/3245/3176 Copyright (c) 2017 Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan https://creativecommons.org/licenses/by/4.0 |
spellingShingle | Infrastructure valuation; capitalization approach; difference-in-differences; dam; direct capitalization. H41; Q51; Q58 Prastiwi, Nuni Budi Makhfatih, Akhmad Dwiputri, Inayati Nuraini Evaluation of Public Infrastructure: A Case of Sapon Dam Kulon Progo, Indonesia |
title | Evaluation of Public Infrastructure: A Case of Sapon Dam Kulon Progo, Indonesia |
title_full | Evaluation of Public Infrastructure: A Case of Sapon Dam Kulon Progo, Indonesia |
title_fullStr | Evaluation of Public Infrastructure: A Case of Sapon Dam Kulon Progo, Indonesia |
title_full_unstemmed | Evaluation of Public Infrastructure: A Case of Sapon Dam Kulon Progo, Indonesia |
title_short | Evaluation of Public Infrastructure: A Case of Sapon Dam Kulon Progo, Indonesia |
title_sort | evaluation of public infrastructure a case of sapon dam kulon progo indonesia |
topic | Infrastructure valuation; capitalization approach; difference-in-differences; dam; direct capitalization. H41; Q51; Q58 |
topic_facet | Infrastructure valuation; capitalization approach; difference-in-differences; dam; direct capitalization. H41; Q51; Q58 |
url | https://journals.ums.ac.id/index.php/JEP/article/view/3245 |
work_keys_str_mv | AT prastiwinunibudi evaluationofpublicinfrastructureacaseofsapondamkulonprogoindonesia AT makhfatihakhmad evaluationofpublicinfrastructureacaseofsapondamkulonprogoindonesia AT dwiputriinayatinuraini evaluationofpublicinfrastructureacaseofsapondamkulonprogoindonesia |