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Corporate Divestment as an Alternative Solution for Business Development and Sustainability in the Construction of the Kuala Tanjung-Tebing Tinggi-Parapat Toll Road

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  • Dindin Solakhuddin

    (Bandung Institute of Technology, Indonesia)

  • Manahan Siallagan

    (Bandung Institute of Technology, Indonesia)

Abstract

Selecting the most appropriate divestment strategy for toll road infrastructure is a critical decision, especially under fiscal constraints and incomplete asset development. This study proposes a structured decision-making framework to evaluate strategic divestment options for the Kuala Tanjung–Tebing Tinggi–Parapat Toll Road project. Using the Analytic Hierarchy Process (AHP), four alternatives—Partial Divestment, Joint Venture, Initial Public Offering, and Full Divestment—were assessed against five key criteria: market readiness, execution speed, public attractiveness, governance and regulatory fit, and going concern. The evaluation was based on expert judgment, supported by literature-informed validation and consistency analysis. Findings highlight Partial Divestment as the most appropriate strategy, offering a balance between external capital mobilization and continued public oversight. This framework provides a practical tool for infrastructure owners and policymakers to guide divestment decisions and prioritize funding strategies in public–private toll road development.

Suggested Citation

  • Dindin Solakhuddin & Manahan Siallagan, 2025. "Corporate Divestment as an Alternative Solution for Business Development and Sustainability in the Construction of the Kuala Tanjung-Tebing Tinggi-Parapat Toll Road," European Journal of Business and Management Research, European Open Science, vol. 10(4), pages 121-129, July.
  • Handle: RePEc:epw:ejbmr0:v:10:y:2025:i:4:id:52733
    DOI: 10.24018/ejbmr.2025.10.4.2733
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