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Journal : Advances in Global Economics and Business Journal

Highest and Best Use Analysis : Case Study of Vacant Land In Denpasar I Wayan Priyana Sudharma; Dian Ayu Rahmadani
Advances in Global Economics and Business Journal Vol. 1 No. 2 (2020): Advances in Global Economics and Business Journal (AGEBJ)
Publisher : Global Academia Publisher

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Abstract

Denpasar City is the capital of Bali Province, in the last few years the property business has developed quite rapidly. Jl. Teuku Umar Barat is one of the main roads in the city of Denpasar. In this area there are also empty lands that have not been utilized so that they do not provide maximum economic benefits. So that in order to maximize the economic benefits that vacant land can provide, a Highest and Best Use (HBU) study is needed. The Goal of Highest and Best Use analysis is determining whether or not the property is being used for its most profitable permitted use. The results of the HBU analysis show that the alternative mixed-use building hotel covering an area of 3,645 m2 and a shophouse covering an area of 8,910 m2 results in an NPV value is IDR187,637,261,135 and the land value is IDR 120,932,881,135 or an increase of 39.11% from its initial value.
Asset Optimization in Gili Air Island, Lombok I Wayan Priyana Sudharma; Dian Ayu Rahmadani; Putu Ayu Meidha Suwandewi
Advances in Global Economics and Business Journal Vol. 2 No. 2 (2021): Advances in Global Economics and Business Journal (AGEBJ)
Publisher : Global Academia Publisher

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Abstract

Gili Air Island is one of the three islands located in North Lombok Regency, Indonesia. It is a part of the Gili Tramena National Tourism Strategic Area. Tourism in Gili had been proliferating in 2013-2017. Due to the Lombok earthquake in mid-2018 and Covid-19 pandemic, however, tourism on the island has not yet reached its maximum potential. This paper applied Highest and Best Use (HBU) analysis to determine the most economic benefits an asset can provide. HBU analysis aims to determine whether or not the property is being used for its most profitable permitted use. The results of the HBU analysis show that the private villa covering an area of ​​1,144 m² results in an NPV value IDR20,100,000,000 and the land value is IDR3,090,000,000 or an increase of 85.47% from its original value.