A Sustainable Asset Valuation of a Bus Rapid Transit System in Bandung

The assessment finds that while a traditional benefit-cost ratio (BCR) would render the Bandung BRT project non-investment-worthy at 0.27, a sustainable BCR (S-BCR) that includes wider societal benefits results in a ratio of 6.67. The project is projected to generate a cumulative discounted net benefit of USD 2.02 billion between 2022 and 2050, primarily driven by time savings for commuters. Key environmental and social gains include the reduction of at least 1.2 million tonnes of CO2 emissions and the avoidance of 205 fatalities from traffic accidents.

• The proposed BRT system in Bandung is highly investment-worthy when wider economic, social, and environmental benefits are included, achieving an integrated benefit-cost ratio (BCR) of 6.67 per USD invested. In contrast, a traditional BCR considering only tangible impacts like capital and O&M costs is only 0.27, which would typically be considered not investment-worthy.
• The most significant monetary benefit of the BRT system is the value of time saved for users due to reduced congestion, estimated at USD 1.7 billion. Other notable economic gains include USD 415 million in increased retail revenues around BRT stations.
• The project is expected to deliver substantial public health and safety improvements, including at least USD 136 million in benefits from increased physical activity and reduced air pollution. It is projected to avoid 646 traffic accidents, including 205 fatalities.
• Environmental and employment impacts include the reduction of at least 1.2 million tonnes of CO2 emissions and the creation of 677 jobs over the project period.
• The BRT system is projected to be 27.4 km long, utilizing a fleet of 357 buses to transport 204,000 passengers per day after its fourth year of operation. The infrastructure cost is estimated at USD 65.941 million, with cumulative operating and maintenance costs of USD 277 million.

APA

Kapetanakis, M., Niño, N., Carlucci, E., Casier, L., & Bassi, A. M. (2023). A Sustainable Asset Valuation of a Bus Rapid Transit System in Bandung. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-08/savi-brt-bandung-indonesia-brochure.pdf

Chicago

Kapetanakis, Michail, Nathalia Niño, Edoardo Carlucci, Liesbeth Casier, and Andrea M. Bassi. A Sustainable Asset Valuation of a Bus Rapid Transit System in Bandung. International Institute for Sustainable Development, 2023. https://www.iisd.org/system/files/2023-08/savi-brt-bandung-indonesia-brochure.pdf.

Wikipedia

{{cite report |last1=Kapetanakis |first1=Michail |last2=Niño |first2=Nathalia |last3=Carlucci |first3=Edoardo |last4=Casier |first4=Liesbeth |last5=Bassi |first5=Andrea M. |title=A Sustainable Asset Valuation of a Bus Rapid Transit System in Bandung |publisher=International Institute for Sustainable Development |date=July 2023 |url=https://www.iisd.org/system/files/2023-08/savi-brt-bandung-indonesia-brochure.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kapetanakis2023sustainable, author = {Kapetanakis, Michail and Niño, Nathalia and Carlucci, Edoardo and Casier, Liesbeth and Bassi, Andrea M.}, title = {{A Sustainable Asset Valuation of a Bus Rapid Transit System in Bandung}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = jul, url = {https://www.iisd.org/system/files/2023-08/savi-brt-bandung-indonesia-brochure.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }