Waste to Energy in Indonesia

Challenges and Opportunities

Dini Trisyanti & Mohammad HelmyIndonesia Solid Waste Association (InSWA)

World Waste to Energy City SummitLondon - UK, May 19 – 20, 2015

Outline

The municipal solid waste profile

Regulation and institutional

framework

Waste to energy status

Financing issues PPP & B2B

Scheme

Social concerns

Conclusion

The Archipelago of Indonesia

http://www.ceritaindonesia.web.id

• 250 million population in 1.9 million km2; GDP/Capita = USD 3,500

• 34 provinces, 511 municipalities, 17,000 islands; 30 Metro & Big Cities

• Almost 60% (150 Million) inhabitants occupied Java Island

• National waste generation 38 .5 Million T/Y, while Java Island 21.2 MT/Y (55.1%)

MSW Operational

69%

14%

14%

3%Proportion (%)

Transported to Landfill

Buried, Burnt

Composted, other

Disposed

Source: Indonesia Domestic Solid Waste Statistic, MoE, 2008

• Most of the waste is collected and transported to landfill (open

dumping, controlled, sanitary)

• Recyclables to informal sector + Waste Bank

• Compostable is partly treated in Temporary Dumping Site (TPS 3R) or

TPA (landfill)

• Heating Value : 2100 – 5000 Kcal/Kg

• Composition : Org. 58%; plastic 14%; Paper 9%

Big Landfills – Sumatera

Medan CityTerjun LandfillOwn: Public1 municipalitiesPopulation: 2 mil

Palembang CitySukawinatan LandfillOwn: Public1 municipalitiesPopulation: 1,4 mil

Batam CityPunggur LandfillOwn: Public1 municipalitiesPopulation: 0,91 mil

Pekanbaru CityMuara Fajar LandfillOwn: Public1 municipalitiesPopulation: 0,88 mil

Bandar Lampung CityBakung LandfillOwn: Public1 municipalitiesPopulation: 0,88 mil

Padang CityAir Dingin LandfillOwn: Public1 municipalitiesPopulation: 0,79 mil

Source: SWI-InSWA, 2015

Big Landfills – Java and BaliJakarta CityBantargebang LandfillOwn: Public&private5 municipalitiesPopulation: 9,5 mil

Bekasi citySumur Batu LandfillOwn: Public1municipalityPopulation : 2,3 mil

Tangerang CityRawa Kucing LandfillOwnership: Public1 municipalitiesPopulation: 1,7 mil

South Tangerang CityCipeucang LandfillOwn: Public1 municipalitiesPopulation: 1,2 mil

Depok CityCipayung LandfillOwn: Public1 municipalitiesPopulation: 1,7mil

Bogor CityGaluga LandfillOwn: Public1 municipalitiesPopulation: 0,95 mil

Bandung CitySarimukti LandfillOwn: Public3 municipalitiesPopulation: 4,7 mil

Semarang CityJatibarang LandfillOwn: Public1 municipalitiesPopulation: 1,5 mil

Yogyakarta CityPiyungan LandfillOwn: Public3 municipalitiesPopulation: 3,4 mil

Surabaya CityBenowoLandfillOwn: Public &Private1 municipalitiesPopulation: 2,7 mil

Malang CitySupiturang LandfillOwn: Public 1 municipalitiesPopulation: 0,82 mil

Denpasar CitySuwung LandfillOwn: Public 4 municipalitiesPopulation: 2,2 mil

Kalimantan : Balikpapan & Samarinda CitySulawesi in Makassar City

Source: SWI-InSWA, 2015

The Urgency for MSW Treatment

Waste dumping sites are tickling bombs for metropolitan and big cities

Community based initiatives are encouraging to some extent, but the scaling up and sustainability are always in question

Waste to Energy becomes more and more in favored, as a way out to reduce burden of waste while resulting benefit to human needs (energy)

Central and local government have recognized this importance, and initiated programs with international donors, private sectors, etc. to speed up implementation of WtE in Indonesia

Collection Transport

Final

Treatment

(WTE)

Most interesting

for investors

Source: National Development Planning Agency Presentation on WtE Week, 2014

MSW Operational System

Regulation and Institutional Framework

Law on Limited Enterprise (PT), Tax etc

Presidential Decree 67/2005 and its addendum

• Law 18/2008 on MSW

Management• MEMR Ministerial Decree

19/2013 on Feed in Tariff

Law 23/2014 on Regional Government Issues From grant scheme of procurement to

commercially driven investment for MSW infrastructure; Un-conducive of Political Condition; & Lack of Capacity in LA

Ministry of

Environment

and Forestry

Ministry of

Public Works

and Housing

Ministry of

Energy and

Mineral

Resources

Municipal

Government

National Development

Planning Agency

Waste to Energy Status

Direct use of landfill gas :

i.e. methane gas is captured, treated, and distributed using rather traditional piping system to inhabitants surrounding the landfill area

Installed in more than 26 landfills

Electricity from landfill gas: only 2 landfills (Suwung in Bali and Bantargebang in Jakarta) with total contracted capacity 14.5 MW

No (zero) WtE incinerator (thermal) is in place

Refused Derived Fuel (RDF) and Anaerobic Digestion are applied in small scale (pilot projects)

Current Project Implementation

No Location Capacity Developers Investment

1) TPA Bantar Gebang III

Jakarta

5 x 2 MW PT OVI Energy Rp. 300 billion

2) SPA Sunter Jakarta *)

(incinerator)

14 MW DKI Jakarta Local

Government

Rp. 625 billion

3) TPA Sumur Batu Bekasi 3 x 1 MW PT Gikoko Kogyo Rp. 40 billion

4) Gedebage Bandung

**)(incinerator)

7 MW PT Bandung Raya Indah

Lestari

Rp. 562,5 billion

5) TPA Telaga Punggur Batam

(thermal)

14 MW Batam Local Government USD 150 million

6) TPA Sukawinatan

Palembang

0.5 MW DGNREEC Rp. 30 billion

7) TPA Benowo Surabaya 9 MW PT Sumber Organic Rp. 316 billion

Source: MEMR Presentation on WtE Week, 2014

*) Jakarta : pending to contract award (bid process since 2011)**) Bandung : bid winner announced in 2014 but postponed implementation due to social protest

PPP Scheme

Responsible Team for Partnership Agreement (PJPK)

Municipal Cleansing Agency

Bid Winner

Company

Consultant

Contractor

O & M

Bid award letter

Power Purchase Agreement

Deed of Company Establishment

Waste supplyPPP

Agreement

Credit Agreement

Source: National Development Planning Agency Presentation on WtE Week, 2014

Business to Business Scheme

Business to

Business

Agreement

License, Permit

Transport to Landfill

On-site treatment

(WtE)

Local Government no longer collects and transports to landfill for

waste generated in commercial area (need local regulation)

• MSW service to non-

commercial area

• Waste tariff policy

Social Concern

3R : Waste Bank movement achievement (MoE, 2013) 17 provinces; 55 municipalities; 1,136 waste banks, 2,262 ton/month waste collected, IDR 15 billion (USD 1.1 million)

/month recyclable sales

Landfill gas to energy:

Gas incentive to community surrounding

Social acceptance and participatory monitoring

WtE incinerator (thermal): Divided group: (1) strongly against, (2) supportive, (3) feel necessary

but not sure

Limited information on proven, safe, and sound technology

Transparency of bid process, emission and operational standard

Conclusion

WtE is very potential in Indonesia, given the urgency of waste problems and

energy policy towards New and Renewable Energy (NRE).

Local governments’ mind set that realizing waste needs sufficient management

cost rather than looking at energy sales as source of income is crucial.

In national level, synchronized regulation and synergized institution are also the

keys.

Transparency of procurement and sufficient-neutral-valid information on

technology application are critical in gaining public trust and social acceptance

for implementation of WtE incinerator plant.

Thank You. Terima Kasih

Indonesia Solid Waste Association (InSWA)

Secretariat:

Jl. Krekot Bunder IV Blok H No 19, Pasar Baru, Jakarta-Pusat

sekretariat@inswa.or.id, inswa.org@gmail.com

http://inswa.or.id

Field Office:

TPS 3R RAWASARI

Jl. Rawa Kerbau 5A- Rawasari Selatan, Cempaka Putih Timur, Jakarta Pusat 10510

Telp: (+62-21) 4627 1206 Fax :(+62-21) 4627 1207

dtrisyanti@gmail.commohammadhelmy5@gmail.com