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 Ci#es with > 1 million popula#on Ci#es with 500.000 – 1 million popula#on Ci#es with 250.000 – 500.000 popula#on Ci#es with < 250.000 popula#on Category of Number Population Waste
City of city proportion generation
rate
proportion Metropolitan 15 17% 37% Big 15 Medium Small 481 83% 63% Source: Jalan Terjal Bersihkan Negeri, SWI-InSWA, 2014 and Indonesia Domestic Solid Waste
Statistic, MoE, 2008
MSW Composition and Characteristic
Organic
Plastic
Paper
Metal
Woods, Glass, Rubber, Fabric, Sand, Other
17%
2%
9%
14%
58%
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 Waste Rate (million ton/ Genera7on year) (%) Sumatera 8.7 Java 21.2 Balinusra (Bali and 1.3 Nusa Tenggara) Kalimantan 2.3 Sumapapua (Sulawesi 5.0 Maluku Papua) TOTAL/NATIONAL
38.5
22.6 55.1 3.4 Popula7on Served by MSW Service (%) 48 59 47 6.0 12.9 46 68 100
56
Source: Indonesia Domestic Solid Waste Statistic, MoE, 2008
MSW Operational
3%
Proportion (%)
14%
Transported to Landfill
Buried, Burnt
Composted, other
Disposed
14%
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 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 4 5 6 7 Yogyakarta Surabaya Bekasi Denpasar Medan Yogyakarta East Java West Java Bali North Sumatera Banten West Java Central Java Piyungan Benowo Sumur Batu Suwung Terjun 8 Rawa Kucing 9 Cipayung 10 Ja#barang Tangerang Depok Semarang Source: SWI-InSWA, 2015
No. Name of Landﬁll City 11 Sukawinatan Palembang 13 Cipeucang Province South Sumatera Makassar South Sulawesi Tangerang Selatan Banten 14 Galuga Bogor 15 Punggur Batam 12 Tamangapa 16 17 18 19 Muara Fajar Bakung Supiturang Air Dingin 20 Bukit Pinang West Java Kepulauan Riau Pekanbaru Riau Bandar Lampung Lampung Malang East Java Padang West Sumatera Samarinda East Kalimantan Total population served: 42 millions inhabitants
Estimated waste generation served: 21,000 tons/day
Big Landfills – Sumatera
Medan City Terjun Landﬁll Own: Public 1 municipali#es Popula#on: 2 mil Padang City Air Dingin Landﬁll Own: Public 1 municipali#es Popula#on: 0,79 mil Bandar Lampung City Bakung Landﬁll Own: Public 1 municipali#es Popula#on: 0,88 mil Pekanbaru City Muara Fajar Landﬁll Own: Public 1 municipali#es Popula#on: 0,88 mil Batam City Punggur Landﬁll Own: Public 1 municipali#es Popula#on: 0,91 mil Palembang City Sukawinatan Landﬁll Own: Public 1 municipali#es Popula#on: 1,4 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 Tangerang City Rawa Kucing Landﬁll Ownership: Public 1 municipali#es Popula#on: 1,7 mil Bekasi city Sumur Batu Landﬁll Own: Public 1municipality Popula#on : 2,3 mil Depok City Cipayung Landﬁll Own: Public 1 municipali#es Popula#on: 1,7mil Semarang City Ja#barang Landﬁll Own: Public 1 municipali#es Popula#on: 1,5 mil Denpasar City Suwung Landﬁll Own: Public 4 municipali#es Popula#on: 2,2 mil South Tangerang City Cipeucang Landﬁll Own: Public 1 municipali#es Popula#on: 1,2 mil Bogor City Galuga Landﬁll Own: Public 1 municipali#es Popula#on: 0,95 mil Source: SWI-InSWA, 2015
Surabaya City BenowoLandﬁll Own: Public &Private 1 municipali#es Popula#on: 2,7 mil Bandung City Sarimuk# Landﬁll Own: Public 3 municipali#es Popula#on: 4,7 mil Yogyakarta City Piyungan Landﬁll Own: Public 3 municipali#es Popula#on: 3,4 mil Malang City Supiturang Landﬁll Own: Public 1 municipali#es Popula#on: 0,82 mil Big Landfills – Kalimantan and
Sulawesi
KALIMANTAN
Samarinda City Bukit Pinang Landﬁll Own: Public 1 municipali#es Popula#on: 0,68 mil Source: SWI-InSWA, 2015
SULAWESI
Makasar City Tamangapa Landﬁll Own: Public 1 municipali#es Popula#on: 1,3 mil 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
MSW Operational System
Collection
Transport
Source: National Development Planning Agency Presentation on
WtE Week, 2014
Final
Treatment
(WTE)
Most interesting
for investors
Regulation and Institutional Framework
Presidential Decree 67/2005
and its addendum
Ministry of
Energy and
Mineral
Resources
National Development
Planning Agency
Ministry of
Environment
and Forestry
Law on Limited
Enterprise (PT), Tax etc
• 
• 
Municipal
Government
Ministry of
Public Works
and Housing
Law 18/2008 on Waste
Management
MEMR Ministerial Decree
19/2013 on Feed in Tariff
Government Regulation 50/2007
on Local Cooperation
Central!Government!
!
Ministry!of!
Public!Works!
National!Planning!
Development!
Agency!
!
Ministry!of!Energy!
and!Mineral!
Resources!
Formulation!of!
PPP!Regulations!
!
1.!INVESTMENT!COST!grant:!
C Landfill!infrastructure!
C Heavy!equipment!
(trucks,!excavators,!etc)!
2.!Ministerial!Regulations!
!
Ministry!of!
Environment!and!
Forestry!
Policies!and!strategies!on!Waste!
to!Energy!development!(Feed!in!
Tariff,!permit!procedure,!etc)!
!
Province!
Guidelines:!
C Legislations!
(Law,!
Regulation,!Act)!
C Formulation! of! quality!
standards!
!
!
Specific!Grant!
!
City/Regency!
O&M!COST!
coordination!and!
supervision!function!
!
Operation!and!
Maintenance!
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)
Direct Use of Landfill Gas
Gas capturing
Gas treatment
•  TPA Kepanjen and TPA Supiturang, Malang •  Operated by Local Government (public) Source: InSWA Visit, 2013 – 2014
Gas utilization
Electricity and Flaring of Landfill Gas
•  MSW based power plant (12.5 MW) •  Bantargebang Landﬁll, Jakarta (located in Bekasi) Bekasi•  65,000ton
year /PDD
estimate
Operated PER/
T. Navigat Organic 91,000ton(private) . CO2.eq March 2010~June2012
Source: Jakarta Government, 2014
•  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 Source: PT. Gikoko, 2012
Scheme of Waste to Energy of Bandung City
Combustion System
Leachate treatment
Bottom Ash
Treatment
Fly Ash Treatment
Water Treatment
• 
• 
• 
• 
• 
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) Source: Bandung Municipality Presentation on WtE Week, 2014
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 1) TPA Bantar Gebang III
Jakarta 2) SPA Sunter Jakarta *)
(incinerator) TPA Sumur Batu Bekasi 3) Capacity 5 x 2 MW 14 MW 3 x 1 MW Developers Investment PT OVI Energy Rp. 300 billion
DKI Jakarta Local
Government PT Gikoko Kogyo Rp. 625 billion
Rp. 562,5 billion
Rp. 40 billion
4) Gedebage Bandung **)
(incinerator) 7 MW PT Bandung Raya Indah
Lestari 5) TPA Telaga Punggur Batam
(thermal) TPA Sukawinatan
Palembang
TPA Benowo Surabaya
14 MW Batam Local Government USD 150 million
0.5 MW DGNREEC Rp. 30 billion
PT Sumber Organic Rp. 316 billion
6) 7) 9 MW
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
Rp 42 billion/
year
Solo
265 ton/day Rp. 6 billion/
year
Rp 417 billion
(Incenerator)
Bandung
1.850 ton/
day
Rp. 67 billion/
year
Rp 1.650 billion Rp 185 billion/
(incinerator)
year
Batam
1.000 ton/
day
Rp. 30-40
billion/year
Rp 1.500 billion Rp 80 billion/
(Incenerator)
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) Bid award leier Bid Winner Company Municipal Cleansing Agency PPP Agreement Power Purchase Agreement Deed of Company Establishment Waste supply Credit Agreement O & M Contractor Consultant 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
•  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)
Financial Issues
¤  Financial capacity is often low. For some ‘rich’ cities,
need to divert budget allocation from transportationdisposal 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