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Developing a Quantitative Decision Model

 

Of Project Completion Strategies in

Distressed Infrastructure Projects

 

FEATURED PAPER

By Hendra Charisma Putra

Jakarta, Indonesia


ABSTRACT

Distressed infrastructure projects often suffer from a gap between performance measurement and strategic recovery decision-making. This paper develops a quantitative decision model for selecting project completion strategies by integrating Earned Value Management (EVM), engineering economic analysis, and Multi-Attribute Decision Making (MADM). Using a distressed LPG infrastructure project as the case study, EVM metrics are applied to diagnose current performance and to forecast future project outcomes. Five feasible completion alternatives are then evaluated using fourteen criteria covering cost, schedule, economic value, risk, contractual clarity, operational readiness, and reputational impact. Six MADM techniques are applied, followed by sensitivity and switching analyses to test ranking robustness. The proposed framework provides a systematic, empirical, and theory-based approach for translating project performance data into transparent and defensible recovery decisions under uncertainty.

Keywords: Distressed Infrastructure Projects, Project Completion Strategy, Earned Value Management, Engineering Economic Analysis, Decision Strategy

INTRODUCTION

  1. Indonesia’s LPG Demand and Infrastructure Development Challenges

Indonesia’s consumption of liquefied petroleum gas (LPG) has exhibited a steady increase throughout the past decade. The Indonesian Ministry of Energy and Mineral reported that “domestic production has remained relatively unchanged at around 1.97 million tons annually and total consumption escalated to 8.7 million tons, reflecting a growth rate of 58.9% in 2023, compared to 2013.”[1]

Figure 1. Indonesia LPG Total Consumption, Domestic Production, and Import Volume (2013–2023)[2]

The challenge is not only the demand volume, but also the uneven distribution of infrastructure. Development has predominantly occurred in Java, resulting in neglect of Eastern Indonesia. To mitigate this disparity, the Indonesian government commenced the construction of four LPG terminals in Eastern Indonesia in 2017.[3] The progress and status of these projects are detailed in Table 1.

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Editor’s note: This paper was originally prepared during a 6-month-long Graduate-Level Competency Development/Capacity Building Program developed by PT Mitrata Citragraha and led by Dr. Paul D. Giammalvo to prepare candidates for AACE CCP or other Certifications. https://build-project-management-competency.com/our-faqs/

How to cite this paper: Putra, C. H. (2026). Developing a Quantitative Decision Model for Project Completion Strategies in Distressed Infrastructure Projects (A Case Study); PM World Journal, Vol. XIII, Issue IX, September. Available online at https://pmworldjournal.com/wp-content/uploads/2026/09/pmwj168-Sep2026-Putra-Decision-Model-in-Distressed-Industries.pdf


About the Author


Hendra Charisma Putra

Jakarta, Indonesia

 

Hendra Charisma Putra is a project engineer with ten years of professional experience in Engineering and Project Management. Currently, he works as an engineer at the national oil company of Indonesia. Several projects have been completed and managed, such as fuel facilities, LPG facilities, jetty infrastructure, and other downstream energy projects. He holds a bachelor’s degree in civil engineering from Bandung Institute of Technology (ITB). He is attending a distance learning mentoring course, under the tutelage of Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m, Senior Technical Advisor, PT Mitrata Citragraha, to attain Certified Cost Professional certification from AACE International.

Hendra lives in Jakarta, Indonesia and can be contacted at hendracharisma@gmail.com.

[1] Ministry of Energy and Mineral Resources, Republic of Indonesia. (2024). Handbook of energy & economic statistics of Indonesia 2024. https://www.esdm.go.id/assets/media/content/content-handbook-of-energy-economic-statistics-of-indonesia-2024.pdf
[2] Ministry of Energy and Mineral Resources, Republic of Indonesia. (2024). Loc. Cit.
[3] Ministry of Energy and Mineral Resources, Republic of Indonesia. (2017). Keputusan Menteri Energi dan Sumber Daya Mineral Republik Indonesia Nomor 2157 K/10/MEM/2017 tentang penugasan kepada PT Pertamina (Persero) dalam pembangunan dan pengoperasian tangki penyimpanan bahan bakar minyak dan liquefied petroleum gas.