ABSTRACT
PLN (Perusahaan Listrik Negara) is a government-owned corporation that provides electricity for the industrial and community sectors. In accordance with Article 1 of the Regulation of the Minister Number: PER-13/MBU/09/2014 concerning the utilization guideline of State-owned fixed assets—stating that that the Board of Directors must prepare a list of fixed assets that are lacking and/or not optimally utilized—PLN reported an asset in the form of vacant land that has not been optimally utilized. In order that the vacant land can be used optimally, it is necessary to carry out Highest and Best Use (HBU) analysis on the land. HBU analysis aims to identify the most profitable and competitive use for the land using four criteria: physically possible; legally permitted; financially feasible; and maximally productive. The result shows that the most feasible investment would be the construction of gas-fired power plants, with a payback period of 2 years and 7 months, indicating a positive value for NPV with an IRR value of 28.69% and PI of 1.91.
