Journal of Ekonomics, Finance, and Management Studies
Vol. 7 No. 1 (2026): El-Mal: Jurnal Kajian Ekonomi & Bisnis Islam

Selection of Best Investment Alternatives on Vacant Land In Tanjungsari Area, Surabaya Using Highest and Best Use Analysis

Ofel Simon (Institut Teknologi Sepuluh Nopember)
Ervina Ahyudanari (Institut Teknologi Sepuluh Nopember)
Aditya Sutantio (Institut Teknologi Sepuluh Nopember)



Article Info

Publish Date
02 Jan 2026

Abstract

Aims: This study was aimed to evaluates land-use alternatives using the Highest and Best Use (HBU) analysis, the Analytic Hierarchy Process (AHP), and utility theory as the basis for decision-making. Methodology and results: The findings indicate that Alternative 3, comprising a mixed-use composition of apartments (30%), offices (20%), hotels (15%), shophouses (15%), and SOHO units (20%), is the most suitable option. This alternative achieves a balance between the highest economic productivity (Rp 38,912,373.62/m²) and Sustainability (score of 2.89). The sustainability assessment covers three main dimensions: environmental, reflected in the reduction of approximately 12.5% carbon emissions and the allocation of 10% of land area to green open space (RTH); social, shown through improved accessibility, local employment opportunities, and public comfort; and economic, demonstrated by the enhancement of property value and long-term financial feasibility. From the physical aspect, attention should be given to soil type and drainage conditions on the site. Regulatory risks, initially categorized as high, can be minimized to a low level through the fulfilment of technical documentation and intensive coordination with relevant agencies (DPM PTSP, DLH, Department of Transportation, and others). Sensitivity analysis further identifies occupancy rates as the key determinant of financial success. Conclusion, significance and impact study: From the results of this study, it can be concluded that the best alternative is alternative 3 due to its high sustainability value. Not only alternative 3, but alternative 5 can also be considered due to its high sustainability value.

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Journal Info

Abbrev

elmal

Publisher

Subject

Religion Economics, Econometrics & Finance

Description

El-Mal: Jurnal Kajian Ekonomi & Bisnis Islam mempublikasi hasil riset dan kajian terkini bidang ekonomi, keuangan, manajemen dan bisnis Islam. Mulai 2011, jurnal ini terbit tiga kali setahun setiap Maret, Juli dan November. Jurnal ini dikelola oleh Pusat Riset dan Kajian Strategis (PRKS) Masyarakat ...