ECONOMIC BENEFIT ANALYSIS ON IMPLEMENTATION OF PUBLIC TRANSPORTATION INVESTMENT POLICY IN THE CITY OF BANDA ACEH

Abstract

Abstract

The purpose of this research is to analysed the effect
of public transportation investment to the acceleration
rate of traffic, to the growth of the governments'
spending and income, also to evaluate the direct and
indirect economic effect of this investment. The research
is done using cost benefit analysis with several
important assumptions. These assumptions were picking
to simplify the evaluation of the effects of the government
investment on public transport in the city of Banda Aceh.
The research results show that the development of
public transportation in the city of Banda Aceh affects to
reduce the density of traffic in the city. The investment
also results in the positive economic benefits for the
community. Though, for the government as the sole
capital owner, the effect of this investment is not
beneficial.