Economic Values and CO2 Simulation on the Application of LPG for Public Fleets in Magelang, Indonesia: Executive Data to Support the Clean City Program

  • Muji Setiyo Department of Automotive Engineering, Universitas Muhammadiyah Magelang, Jl. Bambang Soegeng, Mertoyudan, Magelang 56172, Indonesia http://orcid.org/0000-0002-6582-5340
  • Eko Muh Widodo Department of Industrial Engineering, Universitas Muhammadiyah Magelang, Jl. Bambang Soegeng, Mertoyudan, Magelang 56172, Indonesia
  • Muhammad Imron Rosyidi Department of Industrial Engineering, Universitas Muhammadiyah Magelang, Jl. Bambang Soegeng, Mertoyudan, Magelang 56172, Indonesia
  • Tuessi Ari Purnomo Department of Industrial Engineering, Universitas Muhammadiyah Magelang, Jl. Bambang Soegeng, Mertoyudan, Magelang 56172, Indonesia
  • Bayu Sindhu Rahardja Faculty of Economics and Business, Universitas Muhammadiyah Magelang, Jl. Tidar 21, Magelang 56126, Indonesia
  • Suryantoro Suryantoro Department of Transportation of Magelang City, Jl. Jenderal Sudirman No.84, Magelang 56125, Indonesia

Abstract

The implementation of the ASEAN Clean Tourist City Standard and competition with online transport caused restlessness among public fleet operators and the Department of Transportation of Magelang City. Therefore, this article presents the prediction of economic value and environmental benefits of public fleet in Magelang that will be converted from gasoline to LPG. Investment feasibility parameters, such as Break Event Point (BEP), Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PBP) are presented through three financing scenarios compared with the current gasoline price at the fuel station, RON 88 and RON 90. Simulation results indicate that investment is feasible with the government providing fiscal incentives through the procurement of converter kits. The wages of the public fleet crew under Minimum Wage City will rise by 30% and 70% to switch from RON 88 and RON 90, respectively. Meanwhile, environmental benefits are also expected to improve, with CO2 emission reduction of 21,006 kg/year or about 12.6% of gasoline usage. These two benefits (economics and environmental) are expected to support the clean city program and can be an alternative to offsetting online transportation in Magelang City, Indonesia.

Keywords: public fleet, conversion to LPG, crew wages, environmental benefit
Published online
2019-06-19
How to Cite
Setiyo, M., Widodo, E. M., Rosyidi, M. I., Purnomo, T., Rahardja, B. S. and Suryantoro, S. (FIRST) “Economic Values and CO2 Simulation on the Application of LPG for Public Fleets in Magelang, Indonesia: Executive Data to Support the Clean City Program”, Periodica Polytechnica Transportation Engineering. doi: https://doi.org/10.3311/PPtr.12841.
Section
Articles