Critical Success Factor Implementation of Land Value Capture on a Toll Road Assignment Scheme: SEM-PLS Approach

The Trans-Sumatra Toll Road (TSTR) located in Indonesia operation which is under the management of State-Owned Enterprises (SOE) faces several challenges and requires alternative sources of financing and income, one of which is Land Value Capture (LVC)-based area development. This research aims to identify and analyze the Critical Success Factors needed to implement land value capture in the TSTR project. The results of this research obtained five success factors with the highest ranking and a model of the relationship between variables in implementing land value capture in SOE assigned toll road operations based on the consensus of the expert. Through literature studies, 40 success factors were grouped into five categories and 14 criteria to successfully implement land value capture on toll road-based infrastructure that experts validated. The validated success factors were processed through a series of expert assessments using the Delphi-Method questionnaire, resulting in five success factors with the highest ranking in each category. The relationships between variables were further obtained from PLS-SEM modeling and were analyzed. The analysis of the relationship model produced relationships between variables including Government Policy, Toll Road Developer Business Model, Asset/Property Management, Investment Supporting Environment, LVC Planning and Specific Project Conditions. The present study result may determine factors that can ensure the successful completion of toll road projects with SOE assignment scheme.