COST BENEFIT ANALYSIS OF G. A. SIWABESSY MULTI-PURPOSE REACTOR’S PERFORMANCE FOR RADIO-ISOTOPE PRODUCTION

Abstract

The G. A. Siwabessy Multi-purpose Reactor (RSG-GAS) is a 30 MW research reactor that requires revitalization after 36 years of operation to enhance its performance. This paper assesses the financial opportunity of radioisotope production post-revitalization by analyzing the project's NPV and IRR using cost-benefit analysis principles. Two scenarios considered: the counterfactual (business-as-usual) and the radioisotope (post-revitalization) scenario. The results indicate that the estimated total annual revenue in the counterfactual scenario is IDR 5,029,577,940.00. Conversely, the radioisotope scenario amounts to IDR 93,245,000,000.00. In the counterfactual scenario, the project is deemed infeasible, as evidenced by the negative NPV of IDR 114,320,284,197 and the absence of IRR. In contrast, the radioisotope scenario is considered feasible, with a positive NPV of IDR 115,364,829,741.00 and a positive IRR of 6.8%, surpassing the discount rate of 3.25%, referring to the long-term government bond interest rate and based on literature review. This results in an incremental NPV of IDR 229,685,113,938.00 and an incremental IRR of 12.4% from the radioisotope scenario to the counterfactual scenario, indicating that the investment made for revitalization is justified. This informs policymakers on the importance of reactor modernization, tariff adjustments for radioisotopes and strategic investments to align with national economic and technological goals.