Waste to Energy in Indonesia

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1 Waste to Energy in Indonesia Challenges and Opportunities Dini Trisyanti & Mohammad Helmy Indonesia Solid Waste Association (InSWA) World Waste to Energy City Summit London - UK, May 19 20, 2015

2 Outline The municipal solid waste profile Regulation and institutional framework Waste to energy status Financing issues PPP & B2B Scheme Social concerns Conclusion

3 The Archipelago of Indonesia 250 million population in 1.9 million km2; GDP/Capita = USD 3, provinces, 51, 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%)

4 MSW Operational 3% Proportion (%) 14% 14% Transported to Landfill Buried, Burnt Composted, other Disposed 69% 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 : Kcal/Kg Composition : Org. 58%; plastic 14%; Paper 9%

5 Big Landfills Sumatera Padang City Air Dingin Landfill Population: 0,79 mil Medan City Terjun Landfill Population: 2 mil Pekanbaru City Muara Fajar Landfill Population: 0,88 mil Batam City Punggur Landfill Population: 0,91 mil Bandar Lampung City Bakung Landfill Population: 0,88 mil Palembang City Sukawinatan Landfill Population: 1,4 mil Source: SWI-InSWA, 2015

6 Big Landfills Java and Bali Jakarta City Bantargebang Landfill &private 5 municipalities Population: 9,5 mil Tangerang City Rawa Kucing Landfill Ownership: Public Population: 1,7 mil South Tangerang City Cipeucang Landfill Population: 1,2 mil Bekasi city Sumur Batu Landfill 1municipality Population : 2,3 mil Depok City Cipayung Landfill Population: 1,7mil Semarang City Jatibarang Landfill Population: 1,5 mil Surabaya City BenowoLandfill &Private Population: 2,7 mil Denpasar City Suwung Landfill 4 municipalities Population: 2,2 mil Bogor City Galuga Landfill Population: 0,95 mil Bandung City Sarimukti Landfill 3 municipalities Population: 4,7 mil Kalimantan : Balikpapan & Samarinda City Sulawesi in Makassar City Source: SWI-InSWA, 2015 Yogyakarta City Piyungan Landfill 3 municipalities Population: 3,4 mil Malang City Supiturang Landfill Population: 0,82 mil

7 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

8 MSW Operational System Collection Transport Final Treatment (WTE) Source: National Development Planning Agency Presentation on WtE Week, 2014 Most interesting for investors

9 Regulation and Institutional Framework Presidential Decree 67/2005 and its addendum National Development Planning Agency Ministry of Environment and Forestry Ministry of Energy and Mineral Resources Ministry of Public Works and Housing Law on Limited Enterprise (PT), Tax etc Municipal Government 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; Unconducive of Political Condition; & Lack of Capacity in LA

10 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)

11 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 *) 14 MW DKI Jakarta Local Rp. 625 billion (incinerator) Government 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 14 MW Batam Local Government USD 150 million (thermal) 6) TPA Sukawinatan 0.5 MW DGNREEC Rp. 30 billion Palembang 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

12 PPP Scheme Responsible Team for Partnership Agreement (PJPK) Municipal Cleansing Agency Bid award letter Bid Winner Company Power Purchase Agreement Deed of Company Establishment PPP Agreement O & M Contractor Waste supply Credit Agreement Consultant Source: National Development Planning Agency Presentation on WtE Week, 2014

13 Business to Business Scheme MSW service to noncommercial area Waste tariff policy License, Permit Business to Business Agreement 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)

14 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

15 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.

16 Thank You. Terima Kasih Indonesia Solid Waste Association (InSWA) Secretariat: Jl. Krekot Bunder IV Blok H No 19, Pasar Baru, Jakarta-Pusat Field Office: TPS 3R RAWASARI Jl. Rawa Kerbau 5A- Rawasari Selatan, Cempaka Putih Timur, Jakarta Pusat Telp: (+62-21) Fax :(+62-21)

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