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)
IntroductionB
AC
KG
RO
UN
D
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 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