Analytic Hierarchy Process in the benefit-cost framework: A post-evaluation of the Trans-Sumatra highway project

This paper demonstrates how the Analytic Hierarchy Process (AHP) was useful in rationally measuring the intangible and complex impacts of the Trans-Sumatra Highway built in the late 1970’s. Specifically, the task, using the AHP, was to analyze the overall impact of the highway according to the perception of local people, not that of the researchers or some other party. Many cost-benefit studies tend to underestimate the importance of the local society where the impact of the project is felt most strongly. Yet, when one speaks about the costs and benefits of a local project, ideally, it should be referring to those benefits and costs that affect the local people, directly or indirectly.