Indonesia Proposal:Technical Cooperation and Investment in Integrated Hazardous Treatment Plant and Waste to Energy Facilities

D I R E C T O R AT E G E N E R A L O F S O L I D WA S T E , H A Z A R D O U S WA S T E , A N D H A Z A R D O U S S U B S TA N C E M A N A G E M E N T

M I N I S T R Y O F E N V I R O N M E N T A N D F O R E S T R Y R E P U B L I C O F I N D O N E S I A

J A K A R TA , 2 5 T H F E B R U A R Y 2 0 2 1

ASEAN-Japan Services Trade Online Forum on Trade in Environmental Services

Proposed Technical Cooperation and Investment Projects

REFUSE DERIVED FUEL (RDF) FACILITY

DEVELOPMENT PROJECT

INTEGRATED HAZARDOUS WASTE TREATMENT FACILITY PROJECT

Feasibility Study

The Facility Development

Project

Capacity of the facility: 300ton/day Proposed location: Kota Padang/ Kabupaten

Bekasi (Cikarang)/ Kabupaten Jepara Estimated Project Value in One Location:

Rp230,000,000,000 or US$ 16,428,571 (US$1 = Rp14,000) Project documents: FS Document,

Draft of International Bidding Document and Contract Document

Location: North Sumatera Province Estimated Project Value:

Rp10,000,000,000 or US$714,286 (US$1 = Rp14,000)

Capacity of the facility: 5,000 ton/day Public-Private Partnership and BOT

scheme Location: North Sumatera Province Estimated Project Value:

Rp1,388,000,000,000 or US$99,142,857 (US$1 = Rp14,000)

Integrated Hazardous Waste Treatment Facility Project

IntroductionB

AC

KG

RO

UN

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Indonesia is the largest archipelago country with more than 17 thousand islands.

We are having increasing number of investment and industrial development.

Many of these industries are producing hazardous waste from their production process.

Government, MoEF provides regulations and policies for proper solid waste management implementation; including deregulation of permit

Main policies:

- From cradle to cradle

- Polluter pay principle

- Proximity

- Permit approach

Hazard

ous W

aste

S

itua

tio

nAccording to MoEF, Hazardous waste produced in 2019 was around 120.92 Million ton from 4.018 industries monitored (11% of total industries).

We estimated increasing number of hazardous waste produced around 3% per year: increasing number of industries or increasing number of monitored industries.

Not all industries producing hazardous waste can manage and treat their wastes send to the legal waste treatment service companies

Currently there is only one integrated hazardous waste treatment facility in Indonesia, located in Cileungsi, Bogor, West Java Province.

We need at least 4 more such facilities: Sumatera, Kalimantan, Sumapapua, and Eastern Java

Pro

ject O

bje

ctives To improve people health quality

by reducing impacts from hazardous waste exposure

To improve environmental quality by increasing number of treated hazardous waste

To provide more access for industries in major part of Indonesia to treat their hazardous waste

Alternative locations of Integrated hazardous waste treatment facilities

A

D

B

C

National Middle Term Development Plan (RPJMN) 2019-2024

Sumatera UtaraKab. Simalungun, Kab. Batubara

A

B

C

DKalimantan TimurKab. KutaiKartanegara, Kab. Kutai Timur

Sulawesi SelatanKab. PangkajeneKepualauan, Kab. Barru

Jawa TimurKab. Sidoarjo, Kab. Banyuwangi, Kota Gresik

Already has an investor

Phase 1 Project

Public Private Partnership Scheme

Bappenas has approved

the project as

infrastructure that can be

provided through PPP

Scheme

The Project has been put

in PPP Book 2019 and

2021

Build-Operate-Transfer

scheme

PPP Planning

Preliminary Studies and

Public Consultatio

n

Further decisions: PPP or not

Outline Business

Case (OBC)

Market sounding

Request for Govt.

support/ Guarantee

(if any)

Final Business

Case (FBC)

Pre-qualification

Request for proposal

Bid Submission

Deciding the winning Bidder

Establishment of the Project

Company

Signing of PPP

Agreement

Financial close

Construction and

operation

The PPP agreement

comes to an end

PPP Planning

PPP preparation

PPP Transaction

PPP Implementatio

n

Business Process of PPP Scheme

Project Profiles

Feasibility Study Development of Integrated Hazardous Treatment

Facility Project

Project Documents:1. Feasibility Study

a. Law and Organization Studyb. Technical Study, including soil

surveyc. Economic and Commercial Study,

including real demand surveyd. Environmental and Social Studye. Public Private Partnership Form

Studyf. Risk Studyg. Government Support Need and/or

Government Warranty Studyh. Purchasing Study.

2. Draft of International Bidding Document

3. Draft of Contract Document

Funding

Construction

Operation

Maintenance

Collection

Storage

Transportation

Reuse

Landfilling

Treatment

Feasibility Study Project documents: FS Document, Draft of

International Bidding Document and Contract Document

Location: North Sumatera Province Proposed Cooperation:a. Japan Government:

• Grant funding for the study• Expert assistant

b. Indonesia Government:• Data and information provision• Local government and stakeholder coordination

Estimated Project Value: Rp10,000,000,000 or US$714,286 (US$1 = Rp14,000)

The Facility Development Project Capacity of the facility: 5,000 ton/day Public-Private Partnership and BOT scheme:

Business investment through international bidding Build-Operate-Transfer scheme: 12 years

concession time (2 years construction and 10 years operation). Hand over the facility to the government after concession time.

Source of revenue: user charge/fee Government support: land provision, deregulation

for investment, tariff regulation

Location: North Sumatera Province Estimated Project Value: Rp1,388,000,000,000 or

US$99,142,857 (US$1 = Rp14,000)

Why North Sumatera?

8

ALKI I

International Port• Belawan Port• Kuala Tanjung Port

KEK Sei MangkeMain activities:- Industry (palm oil, rubber)- Logistic- Tourism

Project Volume and Economic-Commercial Aspect (Sumatera Region)

B-O-T

2 Years construction and 10 years Concession Period (O&M)

Capacity of the facility: 5,000 ton/day

FEASIBILITY ESTIMATION

1. IRR = 15.57%

2. DSCR minimum = 1.30 x

3. BEP: 6 – 7 years

SUMATERA REGION

1. CAPEX Value Rp 1,388 Trillion (US$99.142.857)

2. OPEX Value Rp 2,290 Trillion (US$156.849.000)

(US$1 = Rp14,000)

Estimation of Top 10 Hazardous

Waste Type in 2029%

Volume of Waste

Sumatera

(Ton/Year) (Ton/Day)

Tailing 0,38 6.520,02 20,38

Slag nikel 25,37 429.872,56 1.343,35

Ashes from Air pollution control

facility 36,69 621.507,68 1.942,21

Fly ash 17,48 296.181,74 925,57

Bottom ash 1,57 26.579,82 83,06

Used oil and grease (hydraulic,

machine, gear, lubricant, insulator,

heat transmission, grit chambers,

separator and/or mixture 9,68 163.977,94 512,43

Used batteries 2,64 44.675,82 139,61

Steel slag 1,98 33.462,05 104,57

Copper slag 2,16 36.577,59 114,30

Spent bleaching earth 2,05 34.724,01 108,51

TOTAL 100,00 1.694.079,25 5.294,00

RDF Facility Development Project

RDF Potencies in Indonesia(Based on Distribution of Coal Power Plants and Cement

Factories in Indonesia)

SUMATERA SELATAN• Kota Palembang• Kab. Musi Banyuasin• Kab. Muara Enim• Kab. Lahat• Kab. OKU

SUMATERA BARAT• Kota Sawahlunto• Kota Padang

KEP. RIAU• Kab. Bintan• Kab. Karimun• Kota Batam

JAWA TIMUR• Kab. Pacitan• Kab. Gresik• Kab. Tuban• Kab. Probolinggo• Kab. Banyuwangi• Kab. Jember

BANTEN• Kab. Pandeglang• Kab. Tangerang• Kota Cilegon• Kota Serang

JAWA BARAT• Kab. Indramayu• Kab. Sukabumi• Kab. Bogor• Kab. Bekasi• Kab. Cirebon

KALIMANTAN SELATAN• Kab. Tanah Laut*)• Kab. Kotabaru*)• Kab. Tabalong *)

BALI• Kab. Buleleng

SUMATERA UTARA• Kab. Labuhan Batu• Kab. Langkat

NTT• Kab. Ende• Kota Kupang

JAWA TENGAH• Kab. Rembang• Kab. Cilacap• Kab. Banyumas• Kab. Jepara

NTB• Kota Bima• Kab. Lombok

Barat

KEP. BANGKA BELITUNG• Kab. Bangka• Kab. Belitung

SULAWESI SELATAN• Kab. Maros• Kab. Pangkajene Kepulauan• Kab. Barru• Kab. Jeneponto

PAPUA• Kota Jayapura

Aceh• Kab. Nagan Raya • Kab. Aceh Besar

LAMPUNG• Kab. Lampung

Selatan• Kota Bandar

Lampung

RIAU• Kab. Indragiri Hilir• Kota Pekanbaru• Kota Dumai

KALIMANTAN TIMUR• Kab. Berau• Kota Balikpapan• Kab. Kutai

Kartanegara

MALUKU• Kota Ambon

MALUKU UTARA• Kota Tidore Kep.

KALIMANTAN TENGAH• Kab. Pulang Pisau*)

KALIMANTAN BARAT• Kab. Ketapang• Kab. Bengkayang• Kab. Sanggau• Kab. Sintang

SULAWESI UTARA• Kab. Minahasa Selatan• Kab. Bolaang Mongondow• Kab. Kep. Talaud

SULAWESI TENGGARA• Kab. Konawe Selatan*)

GORONTALO• Kab. Gorontalo Utara

SULAWESI TENGAH• Kab. Tojo Una-Una

PAPUA BARAT• Kab. Manokwari

BENGKULU• Kota Bengkulu

Project Profile

Facility Capacity: 300 ton/dayProposed technical cooperation:a. Japan Government: Grant funding for investment or

commercial investment Technical assistant Capacity building

b. Indonesia Government: Land provision Operation and maintenance

Estimated project value: Rp230,000,000,000 or US$ 16,428,571 (US$1 = Rp14,000)

Proposed Alternative Locations

No.

Kabupaten/Kota Off-Taker Potency of RDF Need (Pellet) (ton/day)

Potency of Solid Waste as RDF source (ton/day)

1 KabupatenJepara

PLTU Tanjung Jati B Unit 1-2 182 364

PLTU Tanjung Jati B Unit 3-4 182 364

2 Kota Padang PLTU Teluk Sirih 115 230

Plant Semen Padang 440.1 880.2

3 Kota Cilegon PLTU Suralaya Unit 1-4 173 80

PLTU Suralaya Unit 5-7 230 144

Other industries using boiler

1

2

3

Receiving Hall Classifier Pre-Treatment Pelletizer

Block Flow Diagram

Potential Economic Value of the Project

◦ RDF selling price Rp 398.726/ton (Only OP)

◦ Lower than coal price ($32,5/ton, Caloric value 4200 kcal/kg) Rp 455.000/ton

◦ Potential yield/day Rp40.670.008.843 (drying system not included)

DescriptionAmount

(ton)Unit price (per kg) Total Yield

Ferrous 3,68 Rp3.000 Rp11.040.000

Non-ferrous 0,4 Rp10.500 Rp4.200.000

PET 2,2 Rp8.000 Rp17.600.000

HDPE 12,88 Rp4.100 Rp52.808.000

Total Potential Yield

Total per dayRp85.648.000

US$6,118

Per day (50%)Rp42.824.000

US$3,059

Per month (50%)Rp1.284.720.000

US$91,766

Per year (50%)Rp14.560.160.000

US$1,040,011

Potential Yield from Recycled Goods

Thank YouKementerian Lingkungan Hidup dan Kehutanan

Direktorat Jenderal Pengelolaan Sampah, Limbah, dan B3

Gedung Manggala Wanabakti, Blok IV, Lantai 5

Jl. Jend. Gatot Subroto. Jakarta Pusat