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Waste to Energy in Indonesia Challenges and Opportunities
Dini Trisyanti Deputy of Capacity Building and Technical Assistance Indonesia Solid Waste Association (InSWA)
ISWA BEACON CONFERENCE Kuala Lumpur, Malaysia, April 16 – 17, 2015
InSWA at a glance
¤ Born in Jakarta, October 2003
¤ ISWA National Member since 2012
¤ Members: waste operators, consultants, manufacturers, individuals
¤ Main activity: bridging/mediation of waste stakeholders (private-government-community) and capacity building
Outline
¤ The municipal solid waste profile
¤ Regulation and institutional framework
¤ Waste to energy status
¤ Financing issues
¤ Social concerns
The Archipelago of Indonesia
http://www.ceritaindonesia.web.id
• 250 million population in 1.9 million km2 • 34 provinces, 511 municipalities, 17,000 islands • GDP 3,500 USD/capita
Cities and Waste
Criteria Category of City
Number of city
Population proportion
Waste generation rate proportion
Ci#es with > 1 million popula#on
Metropolitan 15 17%
37%
Ci#es with 500.000 – 1 million popula#on
Big 15
Ci#es with 250.000 – 500.000 popula#on
Medium 481
83%
63%
Ci#es with < 250.000 popula#on
Small
Source: Jalan Terjal Bersihkan Negeri, SWI-InSWA, 2014 and Indonesia Domestic Solid Waste Statistic, MoE, 2008
MSW Composition and Characteristic
58% 14%
9%
2% 17% Organic
Plastic Paper Metal Woods, Glass, Rubber, Fabric, Sand, Other
Source: Indonesia Domestic Solid Waste Statistic, MoE, 2008
Heating value : 2100 – 2300 kcal/kg (LHV) 4600 – 5200 kcal/kg (HHV) Source: Draft Academic Paper RDF Guideline, 2015, MoE-SWI-InSWA
MSW Generation Rate
Group Area Waste Genera7on Rate (million ton/year)
Waste Genera7on (%)
Popula7on Served by MSW Service (%)
Sumatera 8.7 22.6 48 Java 21.2 55.1 59 Balinusra (Bali and Nusa Tenggara)
1.3 3.4 47
Kalimantan 2.3 6.0 46 Sumapapua (Sulawesi Maluku Papua)
5.0 12.9 68
TOTAL/NATIONAL 38.5 100 56
Source: Indonesia Domestic Solid Waste Statistic, MoE, 2008
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 movement • Compostable is partly treated in TPS 3R or TPA (landfill)
Big Cities Landfills No. Name of Landfill City Province 1 Bantargebang DKI Jakarta DKI Jakarta
2 Sarimuk# Bandung West Java
3 Piyungan Yogyakarta Yogyakarta 4 Benowo Surabaya East Java 5 Sumur Batu Bekasi West Java 6 Suwung Denpasar Bali 7 Terjun Medan North
Sumatera 8 Rawa Kucing Tangerang Banten 9 Cipayung Depok West Java 10 Ja#barang Semarang Central Java
No. Name of Landfill City Province 11 Sukawinatan Palembang South
Sumatera 12 Tamangapa Makassar South
Sulawesi 13 Cipeucang Tangerang Selatan Banten
14 Galuga Bogor West Java
15 Punggur Batam Kepulauan Riau
16 Muara Fajar Pekanbaru Riau 17 Bakung Bandar Lampung Lampung 18 Supiturang Malang East Java 19 Air Dingin Padang West
Sumatera 20 Bukit Pinang Samarinda East
Kalimantan
Total population served: 42 millions inhabitants Estimated waste generation served: 21,000 tons/day
Source: SWI-InSWA, 2015
Big Landfills – Sumatera
Medan City Terjun Landfill Own: Public 1 municipali#es Popula#on: 2 mil
Palembang City Sukawinatan Landfill Own: Public 1 municipali#es Popula#on: 1,4 mil
Batam City Punggur Landfill Own: Public 1 municipali#es Popula#on: 0,91 mil
Pekanbaru City Muara Fajar Landfill Own: Public 1 municipali#es Popula#on: 0,88 mil
Bandar Lampung City Bakung Landfill Own: Public 1 municipali#es Popula#on: 0,88 mil
Padang City Air Dingin Landfill Own: Public 1 municipali#es Popula#on: 0,79 mil
Source: SWI-InSWA, 2015
Big Landfills – Java and Bali Jakarta City Bantargebang Landfill Own: Public&private 5 municipali#es Popula#on: 9,5 mil
Bekasi city Sumur Batu Landfill Own: Public 1municipality Popula#on : 2,3 mil
Tangerang City Rawa Kucing Landfill Ownership: Public 1 municipali#es Popula#on: 1,7 mil
South Tangerang City Cipeucang Landfill Own: Public 1 municipali#es Popula#on: 1,2 mil
Depok City Cipayung Landfill Own: Public 1 municipali#es Popula#on: 1,7mil
Bogor City Galuga Landfill Own: Public 1 municipali#es Popula#on: 0,95 mil
Bandung City Sarimuk# Landfill Own: Public 3 municipali#es Popula#on: 4,7 mil
Semarang City Ja#barang Landfill Own: Public 1 municipali#es Popula#on: 1,5 mil
Yogyakarta City Piyungan Landfill Own: Public 3 municipali#es Popula#on: 3,4 mil
Surabaya City BenowoLandfill Own: Public &Private 1 municipali#es Popula#on: 2,7 mil
Malang City Supiturang Landfill Own: Public 1 municipali#es Popula#on: 0,82 mil
Denpasar City Suwung Landfill Own: Public 4 municipali#es Popula#on: 2,2 mil
Source: SWI-InSWA, 2015
Big Landfills – Kalimantan and Sulawesi
Makasar City Tamangapa Landfill Own: Public 1 municipali#es Popula#on: 1,3 mil Samarinda City
Bukit Pinang Landfill Own: Public 1 municipali#es Popula#on: 0,68 mil
KALIMANTAN SULAWESI
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 Waste Management
• MEMR Ministerial Decree 19/2013 on Feed in Tariff
Government Regulation 50/2007 on Local Cooperation
Ministry of Environment and Forestry
Ministry of Public Works and Housing
Ministry of Energy and Mineral Resources
Municipal Government
National Development Planning Agency
! Ministry!of!Public!Works!
Province!
!
City/Regency!
1.!INVESTMENT!COST!grant:!C Landfill!infrastructure!C Heavy!equipment!
(trucks,!excavators,!etc)!2.!Ministerial!Regulations!!
Ministry!of!Environment!and!
Forestry!
Operation!and!Maintenance!
Central!Government!
!
Guidelines:!C Legislations! (Law,!
Regulation,!Act)!C Formulation! of! quality!
standards!!
Formulation!of!PPP!Regulations!!
O&M!COST!
!coordination!and!
supervision!function!
Ministry!of!Energy!and!Mineral!Resources!
National!Planning!Development!
Agency!
Policies!and!strategies!on!Waste!to!Energy!development!(Feed!in!Tariff,!permit!procedure,!etc)!!
Specific!Grant!!
Regulation and Institutional Concern
¤ Misunderstanding that WtE is perceived as opportunity for earning income from electricity etc. while undermining the cost needed for tipping fee etc.
¤ Unclear leading sector: Environment, Public Works (Infrastructure), or Energy. Disputes and conflicting regulations
¤ Low capacity of local government to provide Feasibility Study and involvement in WtE project implementation
¤ From grant type of procurement to commercially (full or partial) driven investment for MSW infrastructure
¤ Un-conducive political condition
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)
Gas capturing
Gas treatment
Gas utilization
Direct Use of Landfill Gas
Source: InSWA Visit, 2013 – 2014
• TPA Kepanjen and TPA Supiturang, Malang • Operated by Local Government (public)
Bekasi 65,000ton ER/ year /PDD estimate 91,000ton . CO2.eq March 2010~June2012
Electricity and Flaring of Landfill Gas
• Flaring of landfill gas (PDD es#mate 91,000 ton CO2eq for 2010-‐2012)
• Sumurbatu Landfill, Bekasi • Operated by PT. Gikoko Kogyo (private) • CDM based project
• MSW based power plant (12.5 MW) • Bantargebang Landfill, Jakarta (located in Bekasi)
• Operated PT. Navigat Organic (private)
Source: Jakarta Government, 2014
Source: PT. Gikoko, 2012
Scheme of Waste to Energy of Bandung City
Leachate treatment
Water Treatment
Fly Ash Treatment Bottom Ash Treatment
Combustion System
Source: Bandung Municipality Presentation on WtE Week, 2014
• Treatment type : incinerator • Located in the eastern part of the city, Gedebage • Total of 20 hectares consist of 5 ha for the Plant and 15 ha for green zone • Capacity of 1,000 ton/day • Form of coopera#on : Build Operate Transfer (BOT)
Indonesia Energy Mix
Source: MEMR Presentation on WtE Week, 2014
New and Renewable Energy Roadmap
Source: MEMR Presentation on WtE Week, 2014
Source: MEMR Presentation on WtE Week, 2014
Bioenergy Based Power Plant
Source: MEMR Presentation on WtE Week, 2014
• Unstable landfill gas captured due to poor landfill management system • Requirement and procedure of Power Purchase Agreement (PPA). Not only modes of
technology is proven, but also applicability in the similar capacity.
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 implementa#on due to social protest
Financing Capacity
Municipality Waste Generation
Average MSW Budget Allocation
Investment Needed for Treatment Technology
Estimated Tipping Fee Needed
Solo 265 ton/day Rp. 6 billion/year
Rp 417 billion (Incenerator)
Rp 42 billion/year
Bandung 1.850 ton/day
Rp. 67 billion/year
Rp 1.650 billion (incinerator)
Rp 185 billion/year
Batam
1.000 ton/day
Rp. 30-40 billion/year
Rp 1.500 billion (Incenerator)
Rp 80 billion/year
Source: National Development Planning Agency Presentation on WtE Week, 2014
MSW Budget Priority Municipality Total Municipal
Budget Waste Disposal Budget
Proportion of Waste Disposal Budget
Yogyakarta Province (Kartamantul)
Rp. 1.6 trillion Rp. 3,4 billion 0.2 %
Pekalongan Rp. 722 billion Rp. 2.4 billion 0.3 %
Balikpapan Rp. 3 trillion Rp. 11.6 billion 0.4 %
Palu Rp. 949 billion Rp. 1.8 billion 0.19 % Source: SWI – InSWA Analysis from Publication Materials on WtE Week, 2014
Retribution vs O&M Cost
Sumber: WJEMP 3-11 Review Masterplan DKI, 2006
In many cases, municipality subsidizes MSW cost for ‘rich’ people
Investment Mechanism
¤ Public Private Partnership (PPP) ¤ Presidential Decree 67/2005 and its addendum
¤ Applied in WtE projects in Jakarta, Bandung, and Batam
¤ Some project preparations have been initiated and supported by central governments and international donors
¤ Business to Business ¤ Local regulation (Perda) needed for zoning system of MSW
¤ In preparation by Jakarta Province, for commercial and industrial area identified as more than 40% of total service area
PPP Scheme
Responsible Team for Partnership Agreement (PJPK) Municipal Cleansing Agency
Bid Winner Company
Consultant
Contractor
O & M
Bid award leier Power
Purchase Agreement
Deed of Company Establishment
Waste supply PPP
Agreement
Credit Agreement
Source: National Development Planning Agency Presentation on WtE Week, 2014
Commercial Framework for WtE
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
Financial Issues
¤ Financial capacity is often low. For some ‘rich’ cities, need to divert budget allocation from transportation-disposal to treatment.
¤ But overall, difficult to obtain local budget approved by executive and legislative.
¤ Bankable proposal – business feasibility of WtE investment project
¤ ‘Promising offers’ to local government in a form of zero tipping fee, modern technology, etc.
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). However, the existing WtE application is more on direct use of landfill gas (utilized by surrounding household). Electricity generation (followed by power purchase agreement) is still limited.
¤ Local governments’ mind set that realizing waste needs sufficient management cost rather than looking at energy sales as source of income is crucial. Otherwise, financial feasibility of WtE is in question; investors already see Indonesia as risky and unproven market.
¤ In national level, synchronized regulation and synergized institution are also the keys. MSW based power plant projects should be more realized as commercially driven investment (PPP scheme, B to B), rather than physical infrastructure grant.
¤ 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 [email protected], [email protected] 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
