Citation:

Akbar Russavel Navis, Santi Novani. "Prioritization of Power Plant Investment Using Analytic Hierarchy Process and Goal Programming: A Case Study at PT PLN (Persero)" International Research Journal of Economics and Management Studies, Vol. 4, No. 6, pp. 107-120, 2025.

Abstract:

As the primary provider of electricity, which is the backbone of national development, PT PLN (Persero) plays a strategic role in driving Indonesia's economic growth. To fulfill this role, investment is a crucial element in ensuring the sustainability and reliability of the electricity supply. One of the largest investments is the development of the power plant infrastructure. To ensure that the investment can realize the company's business value, a power plant prioritization scheme is needed that focuses not only on financial aspects but also considers various other factors. Therefore, the application of the Multi-Criteria Decision Making (MCDM) method is very important. The development of a power plant investment prioritization scheme was carried out by integrating the Analytical Hierarchy Process (AHP) and Goal Programming approaches. The AHP approach is used to obtain the weights of criteria/sub-criteria and the weights of each alternative. The use of goal programming aims to produce optimal investment priorities by utilising available resources. The use of standardized technical parameters aims to minimize inconsistencies in assigning weights to each alternative. The technical parameters used consist of: Internal Rate of Return (IRR) (%) for financial criteria, Levelized Cost of Electricity (LCOE) (Rp/kWh) and Reserve Margin (%) for performance and reliability criteria, and Gas Emissions (Ton CO2e/Year) for environmental criteria. Based on testing and processing using power plant investment data in 2024, the results show that there are 21 investment projects selected, with the achievement of 0.999 on financial criteria, 0.835 on performance and reliability criteria, and 0.998 on environmental criteria.

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Keywords:

Analytical Hierarchy Process, Goal Programming, Power Plant Investment.