Using PLS-SEM to analyze the criteria for the optimum cost of green MICE projects in Indonesia based on value engineering and lifecycle cost analysis

Abstract

Starting in May 2021, green building is mandatory for new buildings in Indonesia. Greenship is a green building certification system in Indonesia issued by the Green Building Council Indonesia (GBCI) which is a member of the World GBC for the conservation and efficiency of resources (energy, water, land, materials, and nature). Greenship will be implemented in MICE which is a building for Meetings, Incentives, Conventions, and Exhibitions that has a strong economic attractiveness in Indonesia, which has a population of 270 million. Using the SEM-PLS it was quickly concluded that energy is the most influential factor in achieving platinum ratings from GBCI.With the value engineering (VE) method and life cycle cost analysis (LCC), it is needed an additional 4,689% cost for the platinum grade green costs through energy optimization will get a payback period of 3 years and 10 months. The novelty of this research, since the design, it is necessary to take steps to measure energy efficiency and other resources with a selection of materials/machines and working methods of the green concept to know the amount of additional initial costs that do not much burden investment costs compared with some future benefits of green MICE.

Keywords

• greenship
• lifecycle cost analysis
• sem-pls
• mice
• value engineering