INTEGRATED PUBLIC CEMETERIES OF MEDAN CITY AS AN ASSET, POTENCY, AND LONG TERMS ECONOMIC INVESTMENT OF THE CITY (UTTER REQUIREMENTS OF LIFE CYCLE IN THE CITY)

Abstract

The people that foremost slice of the city should be recognized that they must be dying one day. The idea of this research is constructing a public cemetery (PC) that is integrated and functioned economically, the public has not comprehended yet that PC can be used as an asset, potency and economic investment for long terms to accomplish the social life of the city. The cemetery structure that is going to build with the cost of construction work is IDR. 123.900.000.000 and it is used for rent particularly in funerals, large gatherings, exhibitions, etc. Besides, we also are going to build supporting facilities such as a parking area for cars and motorbikes, spots for praying, and green space. The initial step of cemetery structure investment is purchasing land of 65.000 m2 @IDR.500. 000 Rupiahs is IDR.32.500.000.000. Then we account for the budget needed for an investment to build the cemetery structure is IDR. 190.790.000.000. Based on NPV calculation results, the profitability of the cemetery structure obtained the value of NPV is IDR. 8.110.306.740 (NPV > 0). Consequently, the commercial of the cemetery structure is visible to be functional. It is explained that the business rent of the cemetery structure is visible to conducted because the interest of 8% of the whole investment cost would be return in the next 35 years and 3 months, and it is lighter than the period of the project investment planed of 50 years. The value of IRR is 9,73> of expected 8% yield rate, then the structure of the cemetery commercial is visible to be established. The return on investment in building construction in the cemetery building rental profitable is in the 14th year over 2 months. The value of BCR is 1,811 ≥ 1, then the project is visible and acceptable (profitable). The project construction of cemetery building needed a fund investment of IDR. 190.790.000.000, with the expected assumption of 8% per year, inflation of 6,5% per year, and investment period of 50 years, then obtained visible return time of investment for 35 years and 3 months. The value of NPV > 0 is IDR. 420.480.350.408, the value of the return on investment (IRR) of 9.52%, the BEP of the cemetery building a rental business is in the 14th year over 2 months, indeed in 2034.