Public Private partnership in the Waste Sector. Sustaining Partnership. Media for Information on Public Private Partnership. November 2011

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Making Fri endsWith Waste

Heading to Zero Waste, and

Waste to Energy

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

November 2011 Edition

INDEPENDENT

WASTE M AN AGEM ENT

INDEPENDENT

WASTE M AN AGEM ENT

PPP Mechanism in the Waste

Management Sector


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E D I T O R I A L

SUSTAINING PARTNERSHIP - November 2 011 Edition

2

ADVISOR

D epu ty M in ister for In f rast ructure

Affairs, Bappenas

DIRECTOR

D i r ec to r f o r P ub l i c P r i va te

Par tnersh ip D evelopm ent , Bappenas

CHIEF EDI TOR

Jusuf Arb i

BOARD OF EDITORS

D e l thy S ug r iady S ima tupang ,

G unsa i r i ,

R ac h m a t M a r d i an a ,

N o v i e A n d r i a n i ,

M o h a m m a d Ta u f iq R in a l d i ,

A d e H e n d r ap u t r a

M A N A G I N G ED I T O R

B . G un ta r t o

REPORTER/ RESEARCH ER

Sandr a K aun ang ,

A gus S up r i yad i H idaya t

PHOTOGRAPHER

A r ie f B ak r i

GRAPHI C D ESIGNER

I nd r i e Soeh a r yo

TRANSLATOR FROM

IND ONESIAN VERSION

Set iana

In f r ast r uc tu r e R e fo r m S ec to rD e v e l o p m e n t P r o g r a m ( I RSD P )

B A P P E N A S

Jl . Tan jung N o .47 Jaka r ta 103 10

w e b s it e s: w w w .i r sd p .o r g

Te l . ( 62 - 21 ) 3925392

Fax . ( 62 - 21 ) 3925390

From all of the sectors in the infrastructure sector, investors are least interested in the

waste sector, unlike the drinking water sector, tol l road sector, port, telecommunication,

airport and others.

Alt hough i nvestin g in t he provision of high-t ech equipm ents absorbs an abundant am ount

of funds, this sector must be considered as an activity which delivers many benefits for

our l i ves.

Firstly, because managing waste, either organic or non-organic will make the environment

clean and m ake our l ives m ore comfor table. Secondly, produ cts produced f rom waste

m anagem ent could provid e added value such as com post, l iqu id f ert i l izer and bi ogas that

could be converted int o electricit y. On the oth er h and, non -organic waste could be usedto m ake variou s useful hand icrafts.

T he 3R con cept wh ich con sists of reduce, reuse and recycle must be social ized to o ur

society. W aste managem ent w ill cert ainly b ecom e easier if th e society actively p arti cipates

by sort in g waste accordin g to i t s typ e.

T hi s editi on of th e Sustain in g Part nershi p M agazin e discusses about i ndependent w aste

management, how we could be fr iends wi t h w aste, how to reduce waste and convert i t

in to an energy source and ho w t o learn f rom the l iqu id w aste managem ent in D enpasar.

O th er arti cles also discussed in t his edit ion in clude Put ri C empo Publ ic Private Partn ership

(PPP) Project in Surakarta whi ch is ready for o ffer, Legok N angka PPP Project w hich

replaces Sarimukt i F inal D isposal Si te (T PA) in Bandun g M unicipal and Air D ingin PPP

Project in Padang w hich is classifi ed as pot ential.

Furthermore, the figure section discusses about PPP supporting institutions as elaborated

by the D irectorate of PPP D evelopment th e N ational D evelopm ent Planni ng Agency

(Bappenas). T hi s di r ector ate plays a signi f icant role in social iz ing and escort ing t he

preparatio n p rocess of PPP pro jects in I nd onesia as well as th e subsequent pro cess of PPP

Project cycle.

O th er art icles talks about how to i nvest in a PPP project in th e waste sector, t he profi le

of the D irector of Program D evelopm ent, D i rector ate G eneral of H um an Sett lements,

M in istr y of Publ ic W orks and Sodiq Suhardianto who successfu l ly converted waste from

a problem to a source of funds.

Finally, t here is an article regardi ng t he discussion on T he PPP Schem e in th e W aste

Sector wh ich w as held by t he D irectorate PPP D evelopm ent of Bappenas in Jakarta inO ctober 2011.

Please enj oy readin g th e magazin e.

Edi toria l

PPP i n the Waste Sector


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NEWS AT GLAN CED iscussion on PPP Proj ectScheme in t he Waste Sector

FIGURE> Sodiq Suhardianto> Antonius Budiono

PPP PROGRAM EDUCATIONPPP M echani sm i n the WasteM anagem ent Sector

PPP PARTNER PROFIL ED irectorate of PPP D evelopm ent

PPP PROJECTS - READ Y FOROFFERPutri Cempo is Waiting for the Investor

PPP PROJECTS - POTEN TI ALT he Mu nicipal Goverment of PadangIn vites the Private Sector t o D evelop T PAs

PPP PROJECTS - PRIO RIT YLegok N angka Ready to Replace Sarim ukt i T PA

C O N T E N T

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November 2011 E dition - SUSTAINING PARTNERSHIP

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INDEPENDENT WASTE MANAGEMENT

7

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MAKING FRIENDS WITH WASTE

HEADING TO ZERO WASTE,AND WASTE TO ENERGY

LEARNING FROM DENPASARSEWERAGE DEVELOPMENT SYSTEM

HEADLINE NEWS


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As a result, garbage is scattered everywhere, either in

gutters, rivers, markets, buses, terminals or any other

places. People sti l l l i tter despite that rubbish bins are

avai lab le . T h is i s a com m on s igh t i n u rban areas.

D ata f rom the M in ist ry o f Env i ronment in 2 010 shows

that waste volume in Indonesia reaches an average of

200,0 00 p er day. U rban areas contr ibut e the most w aste

due to many factors such as population growth and

urbanization. If waste issues are not immediately resolved,in 2020, the volume of waste in Indonesia wil l increase

by fi ve fold s. T his means 1 mill ion ton s of w aste per day.

Fantasti cal ly, i ncreased amoun t of waste is t riggered by

population growth. Almost every country in the world

is suf ferin g from w aste issues. H owever, developed

countr ies whose peop le are fu l l y aware about the

envi ron ment and are support ed by m odern technology

have successfully overcome waste issues. Exporting waste

to other countries is also a solution to overcome waste

issues.

W aste m anagement has actu ally been r egulated by th e

government th rough Law N o. 18/2008. T he Law states

tha t was te managemen t i s no t on l y the du ty o f

govern m ent but the society and businesses th at pr oduce

waste are also responsible for creating a clean and healthy

environm ent. T he governm ent t hrough Law N o. 18/2008

has p rov i ded a l a rge space fo r p rov i nc i a l and

regency/municipal governments to plan and manage

waste wi th in thei r region.

A l t h o u g h a u t h o r i t y h a s b e e n d i s t r i b u t e d , w a s t e

management does not automatical ly become simple.

W aste managem ent in In don esia is st i l l un str uctured.

D iffi culty in seekin g land for a Final D isposal Site (T PA),

l im ited amount of t ransport ation vehicles, lack of p ublic

awareness in m anaging w aste from th e sour ce, t radit ion al

waste management techno logy (burn ing and open

dumping), unti l the lack of the publ ic s knowledge on

waste becomes a problem.

In addi ti on, bu dget constr aints are also a probl em sin ce

constru c t ing waste m anagement in f rast ru c tures and

I N D EPEN D EN T W AST E M AN AG EM EN T

Undeniably, many people are sti ll badly behaved

when i t comes to waste. People lit ter everywhere.

Thi s behavior does not recogni ze the level of

education or social status. In a government offi ce,

bank, school or camp us, many highly educated

people li tter. Luxury car drivers are also often seenthrowing tissue, cigarett es or food wrapping from

their car wi ndow to the road.

H E A D L I N E N E W S


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f a ci l i t i es requ i re l a rge am oun t o f f unds . T he M un i c i pa l

G overn ment of Padang, Jakarta, Solo and Bandun g face budget

constraint s wh i le the M unicipal G overnm ent o f Batam faces

land issues.

T he D eputy Assistant for W aste M anagement of t he M inistry

of Environment, Sudirman, asserted that waste management

progr ams only f ocuses on t he down stream aspect, ie, how to

pro cess waste. W hi le in th e upstr eam aspect, i t appears th at

th e govern m ent ign ores people or parti es wh o pr oduce waste

and does not apply any law enforcement or strict sanctions.

Ironically, this is the most important aspect.

T he publ ics awareness in m aint aini ng cleanl in ess is very l ow.

This condition should be improved by increasing the publics

a w a r e n e s s i n e n v i r o n m e n t a l i s s u e s , h e e x p l a i n e d .

According t o Sudirm an, waste m anagem ent mu st start from

each in div id ual. W aste exist s because of hum ans. I f people are

aware, th e probl em woul d not becom e crucial . T herefore,

th e governm ent mu st f i rm ly apply sanction s again st p eople

who violate the local regulation regarding cleanliness," said

Sudirman.

INDEPENDENT

T he comm uni t y s part ic ipation in w aste management is the

m ost im por tant aspect in in tegrated waste management. T he

issue of waste must be addressed starting from the household

level in th e RT / RW, vi l lage level , sub di str i ct level un ti l a

wider scale. This is known as the independent communi ty

based w ast e managem ent .

T he essence of t hi s progr am is the acti ve parti cipation of t he

local comm uni ty in sort ing and m anaging waste. Th ere are

tw o ki nds of w aste, namely organic and i nor gani c waste. People

m ust firstly sort w aste before disposing it to t he TPA. Sortin g

is cond ucted to ease the im plementati on of th e processin g

technology in t he T PA.

O rgan ic waste shou ld be managed i ndependent l y by the

comm unit y by convertin g it int o compost. I f this is too diffi cult,

there should be a special waste management unit which stores

organic w aste and convert i t to com post. M eanwh ile, inorganic

waste l ike plastic, paper, food wrapping or metals should be

disposed to t he special w aste m anagement un it for recyclin g.

T he volume of w aste in t he TPA wi l l signi f icantly d ecrease

if hou sehol ds uti l ize organi c waste for ferti l izer because 70%

of household waste is organic and 30% is inorganic, said

Syukru l Am ien, the D i rector o f En v i ronm enta l San i ta t ion

D evelopm ent the D irectorate General of H um an Sett lementso f the M in ist ry o f Pub l i c Works .

In dependent waste m anagement has been applied i n several

regions in In don esia such as M alang, D epok , Bogor o r Pasur uan.

A n um ber of other regions wil l be ready t o apply this program.

Even tho ugh T PAs exist, i ts locati on i s so remot e givin g rise

to high expenses for waste col lect ion from the Temporary

D isposal Sit e (T PS). I n addi ti on, t here are also issues dur in g

th e transportation of w aste. W aste is scatt ered along the ro ad

or is caught in traffic congestion.

In order to resolve this issue, Intermediate Treatment Facilities

(I T Fs) are bui lt adjacent t o th e location w here waste is pro duced.T herefore, the issue of d istance and t im e coul d be resolved.

T he regency/m uni cipal governm ent could develop IT Fs to

m ake waste m anagement m ore effective. T he developm ent

c o u l d b e f u n d e d b y t h e R e g i o n a l B u d g e t , h e s a i d .

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W it h t he presence of IT Fs, th ere wil l be lesser volum e of waste

tr anspor ted t o th e T PA because th e waste man agement p rocess

in th e waste disposal site could b e condu cted in the I T F. W aste

di sposed t o th e T PA is waste whi ch could n ot be m anaged in

the IT F.

WASTE BANK

An oth er m easure to address waste i ssues is by creati ng waste

banks which are currently popular in several areas. In Bogor for

example, the waste bank has become a model project of the

M in istry of Envir onm ent . T he waste bank is a household based

waste m anagement system wh ich pro vides cash r ewards dependi ng

on the typ e of w aste. People com m only call w aste banks as th e

scavengers shop .

W it h t he existence of w aste banks, peoples habit in disposing

waste wi l l improve. Waste co l lec t ion must s ta r t f rom the

household level until the wider society. After being sorted, waste

m ust be sent to the waste bank t o be managed according t o i t s

type. Products produced from recycl ing could be sold to the

pub l i c .

W e wil l contin uously social ize this matter so the society could

unders tand the funct ion o f waste banks. I f th i s has been

implemented, the vo lume o f waste in Bogor wi l l reduce,

explained the H ead of Envi ronm ental M anagement and I m pact

D iv i sion o f B ogor Ci t y Env i ronm enta l M anagem ent A gency

(BPLH ), Shahlan Rasyidi .

T he technol ogy aspect relates to waste m anagem ent. Peopleshabit of bu rni ng waste will p ollut e th e envir onm ent and endanger

health, while the open dumping system requires a vast area.

T herefor e, a we l l p repared p lan in the im p lementa t ion o f

envi ronmental ly fr iendly waste management technologies is

required.

3R++ CONCEPT

In addi t ion, the 3R (reduce, reuse, recycle) concept m ust b e

im plemented in waste m anagement. 3R m eans reducing anyth in g

that could produce waste (reduce), reusing usable waste for a

simi lar or another function (reuse) and recycl ing waste into

useful goods or n ew pr oducts (recycle).

According Syukrul, the society has been implementing the 3R

concept. T hi s concept has developed and now adays, t here is a

new innovation called 3R++, which is waste management that

provi des new benefits for th e society. Aside fro m comp ost and

recycled pro duct s, t he society coul d enjoy m ore benefi ts such

as electricity. Electricity produced from waste could power the

w ast e m anagement m achi ne. W ast e coul d also be developed to

electrify street lights or peoples houses.

T hi s wi l l b e develop ed in th e waste managem ent system .

Peopl e could enjoy m any benefi ts from waste. T his system i s

comm only used in d eveloped countr ies, h e explained. In terms

of hazardous waste produced by industries and hospitals, the

concerned companies are l iable for managing such waste.

W it h t he govern m ents l im i t ed service capaci ty, the bu siness

sector and private sector could also be engaged as a partner

thr ough t he Public Private Partnership (PPP) program to realize

a good waste m anagement servi ce. T he govern m ent op ens the

oppor tun i ty fo r the pr i va te sector to par t i c ipa te in waste

management.

According to data from the M inistry of Envi ronm ent, the scope

of w aste m anagement services is less than 2 0% . T he M ill enniu m

D evelopm ent G oals (M D G s) sets a target for w aste managem ent

services of 80% or 1 04.6 mi l l ion people in ur ban areas, 50%

or 57 .5 m i l l i on p eop le in v i l l ages and 66% or 162.1 m i l l i on

people natio nally. T herefore, th e regency/ mu ni cipal governm ent

m ust wo rk h ard in order t o achi eve that t arget, especial ly since

2015 is approaching.

As a result, waste management needs the strong commitment

of al l stakeholders, start ing from downstream to upstream.

W i th out s t rong comm i tm ent , the waste i ssues cou ld no t be

addressed. W aste is synon ym ous to a snow bal l . I f w e dont

im m ediately h and le i t w it h care, th e snow ball wi l l escalate and

burry us, said Syukrul Amien. Of course, we do not want to

be buried. (* )

O rganic fertili zer factory and fin ished granule fertilizer.Source: Bappeda of Bekasi City



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A r t i c l e 3 o f L aw N o . 1 8 / 2 0 0 8 r e gar d i n g W a st e

M a n ag em e n t s t a t e s t h a t w ast e m a n ag em e n t i s

im plemented based on t he prin ciple of econom ic value

of the society. In the explanatory chapter, economic

value m eans that w aste is a resour ce th at has econo m ic

value th at can be ut i l i zed i n order to gain added value.

Added value is not only meant to slow the exploitation

rate of n atural r esources, such as th rough th e concept

of 3R (Reduce, Reuse, Recycle). H owever, i t also aim s

to uti l ize waste from the w aste m anagement process

itself. Every kind and nature of waste contains chemical

comp oun ds that are beneficial to hu mans, eit her directly

or ind i rectly. But m ost im portantly, i t is how we could

uti l ize waste and gain benefits from it.

According to i ts nature, waste can be divided into two

typ es namely, organi c and ino rganic waste. O rganic

waste is waste that easily decomposes and is degradable

such as fo od, dr y l eaves, v egetables, etc.

In contr ast, in organi c waste is waste that could not rot

and is undegradable such as plastic, food packaging,

paper, pl astic toys, bott les and d rin k cu ps, cans, w ood,

styr ofoam, b rok en glass, rub ber, etc. Bot h k in ds of waste

c o u l d b e p r o c e s s e d i n t o m a r k e t a b l e g o o d s .

O rganic waste am ong oth ers could b e ut ilized to prod uce

organic fert i l i zer, such as com post wh ich i s needed by

farmers to fertilize crops. Compost produced from waste

could be converted in to pr oducts with economi cal value

wh ich could in crease the societys income. Th e M uni cipal

Gove rnmen t o f S o l o , Cen t ra l Java , fo r examp l e ,

es tab l i shed communi ty independence th rough the

production of compost.

T he comm uni ty residing in RT 07 RW 15 of M ojosongo

Vil lage was given training on how to make compost by

a comm uni t y developm ent off icer at the vi l lage off ice.

M any w omen were interested in m akin g compost and

f in a l l y, a W aste M anagem ent Gr oup (K PS) cal led

M ama was form ed. I t i s cal led M ama because 50 of

i t s memb ers are mot hers. Subsequent l y , t he loca l

government provided assistance by donating a compost

hou se and a waste shr edd in g machin e to th e KPS.

Every day, the members of KPS are in charge of collecting

househo l d was te o r was te f rom the su r round i ng

envir onm ent before it i s disposed to Putri C em po Final

D isposal Site (T PA). A ft erw ards, w aste is processed int ocompost and the finished compost is packed in plastic

bags and is ready t o be sold . T he K PS is equi pp ed w it h

dozens o f compressors to increase the compost

production volume.

When hearing the word waste,

people mi ght i magine something

dir ty, disgusting and smelly. Whi le in

fact, waste can actually bri ng

econom ic value to the society if

processed into useful products.


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Arm ed wi th d iligence and determ ination, t heir businesscont inues to grow. From the in i t i a l p roduct ion o f

only 1 2 qu in tals of comp ost a mont h, i t has now

in creased to 7 qui nt als. T hey also do not have to

worry t hat t he i r homemade compost w ou ld no t b e

sold because sin ce tw o years ago, t he M un ici pal

G overn m ent of Solo has been p urchasin g al l of their

comp ost f or ferti lizin g trees and plant s in city gardens.

Each group member receives a fai r income from

revenue gained fr om th e sales of com post. N ow t he

residents income has increased and their welfare has

im proved. D ue to waste, they gain extr a revenu e to

ful f i l l t hei r fami ly n eeds.

" W aste can create jobs. Un for tu nately, on ly a few

people want to produce compost," said a member of

Com m ission IV o f t he H ouse o f Representa t i ves,

Siswon o Yudo H usodo. A large port ion of th e tot al

volume of waste could be processed into compost

(around 70% ) because most of th e waste in th e society

is organic.

W e m ust appr eciate th e step taken by the M uni cipal

G overnm ent of Solo in purchasing com post p roduced

by the society. Besides being able to maintain their

bus iness opera t ion and enhanc ing the soc ie ty s

econom y, thi s step has also sti m ulated th e grow th anddevelopment of communi ty businesses based on

envi ron mental protection .

" T he m unicipal /r egency governm ents of oth er areas

can per fo rm sim i la r ac t ion s, such as pur chasing

compost p roduced by the soc ie ty to fe r t i l i ze c i ty

gardens. T his is surely eff ective because in addi ti on

to enhancing the peoples economy, waste pi les wil l

decrease since it is used f or co m post, suggested

Siswono.

In developed countr ies, private companies act as

operator s in w ast e m anagem ent. T he pri vate sector is

wi l l ing t o m ake substantia l amount of i nvestm ent as

the suppo r t i ng sys tem i s a l ready good . Law

enforcement against waste management violators is

very strict so operators wil l seriously manage waste

because if they are negligent, the sanctions wil l be

heavy. T he econom ic value of waste in developed

countries is quite high because there is a good waste

m anagement suppor t system.

HANDICRAFTS

Benefi t s that can b e obtained fr om inor ganic w aste

among others include handicraft products produced

f ro m recyc l i ng . N owadays, you can see m any

household products or accessories produced from

recycled w aste or plasti c w aste. T hese inclu de bags

made of plastic packages, buckets made of plastic

was te p roduced by o l d househo l d equ i pmen ts ,

decorati ve items made of brok en glass, key ri ngs made

of woo d w aste di sposed by fur ni tu re businesses and

several other products with economic value produced

fro m inor ganic waste. I n f act, m agazines or newspapersthat people read every morning is produced from

recycled paper.

T he spread of h and icrafts made of r ecycled w aste

could be found in a number of location s. In Ci ledug,

Tangerang, f or i nstance, t here is a handi craft center

th at m akes a vari ety o f beauti fu l pro duct s from used

alum in um packages of t oot hpaste. T hese include hats,

wallets, mats, baskets, unti l toy robots. Enthusiasts

of the handicrafts come from Kal imantan, Bal i and

Sulawesi . T hey pur chase i t f o r expor t to Japan,

S ingapore , Au str a l ia, even to th e U n i t ed Sta tes.

Recycled handicrafts centers could also be found in

M amp ang Prapatan, Sout h Jakarta w here wom en

uti l ize their free tim e to m ake handicrafts from plastic

waste. O th er handicr aft centers are now wi despread

in vari ous areas and are mostly h om e indu str ies. T here

Exampl e of inorganic products



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are tens of thousands of business units and they create jobs for

mi l l ions of people.

T he numb er of processed pr oducts produced from inor ganicwaste is larger and m ore diverse compared to pro ducts prod uced

from organic waste. H ow m uch could be produced depends on

the craftsmans creativity. Fortunately, craftsmen do not have

to w orry about difficulty in f indin g raw m aterials since inorganic

waste is always available.

T he market oppor tu nit y of recycled products is prom ising. T he

market is wide open to national, regional and global markets.

A number o f hand ic ra f t p roducts have penetra ted modern

outl ets l ik e Grand In don esia, Pasaraya and other m odern t rade

cent ers th roughou t I nd onesia. T his cond it ion h as encouraged

craft smen t o contin ue creatin g quality prod ucts that can com pete

in the global m arket.

D eputy IV of the M inistry of Envi ronment for H azardous and

T ox i c M a ter i a l s W aste , and S o l i d W aste M anagem en t ,

M asnel lyart i H i lm an, considers that t he num ber of smal l and

m edium enterpri ses that ut i l i ze waste as m ateri al for r ecycled

products increase from year to year. It is quite pleasing. We

conti nuou sly encourage the uti l ization of recycled waste either

in an i ndi vidu al scale, comm un al scale, region al scale or in dustr ial

scale in order t o achieve th e nati onal w aste reduction target of

7% per year, she said.

ENERGY SOURCE

Waste does not only provide f inancial benefi ts, but i t could

also produ ce electr ic i ty. M uni cipal /regency governm ents are

preparing t o bui ld W aste to En ergy Power Plants (PLT Sa).

If piles of waste in urban areas amount to about 752.9 tons/day,

9.29 x 10 ki lo Joules/hour of heat/thermal energy could be

produced. If such thermal energy is converted into electricity,

6 M ega W att s (M W ) o f elec t r i c i ty cou ld be generated. Th i s

means that the benefits of waste can be directly felt by many

p eo p l e. 6 M W o f e l ec t r i c i t y c an i l l u m i n a t e a w h o l e

municipal/regency.

In a smal l scale, i f household waste is processed wi th the

fermentation system, biogas energy could be produced for

cookin g. "T he potential of bi ogas in I ndon esia is very large. If

this is utilized, an electricity crisis will not occur because people

can i ndependent ly fu l f i l l th ei r electr i c i ty n eeds from waste,

said th e D irector G eneral of N ew Energy, Renewable and Energy

Co nservation of t he M ini stry of En ergy and M in eral Resources

(ESD M ), K ardaya Warmi ka.

According to t he stud y of ESD M , biogas potential in I ndon esia

reaches 1 mi l l ion per uni t. If th is can be realized, i t could save

700 ,000 to ns of gas per year. Energy generated fro m a PLT Sa,

is a renewable energy wh ich wi l l n ever perish.

N at i on al l y i n 200 9 , the governm en t l aunched the B l ue

(D om estic B iogas) Program w hich i s a cooperation program

wi th t he N ert herlands to op en th e bio gas sector i n t he domesti c

market. T he target i s to bu i ld 8 ,000 un i ts of b iogas by 2013.

"T his program wi l l contin ue to be developed and uti l ized for

electri city," said K ardaya.

W e shou ld b e fr iendl y to w aste because m any added values

could b e retr eived from waste. (*)

Landfill wit h geomembrane H D PE(in accordance with the LFG Flaring System program).Source: Bappeda of B ekasi M uni cipal


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10/28

T he dry anaerobi c digesti on and comp osti ng technology

is a waste management system which is supported by

a Tempor ary D isposal Si te (T PS) or an In term ediateTreatment Fac i l i ty ( ITF) . I f p rev ious ly waste was

transported from the TPS to the Final D isposal Si te

(T PA), wi th th i s technology, waste is f i rst ly stored at

the IT F.

At th e IT F, waste un dergoes th e subsequent p rocess

wh ere it is processed int o com post, bi ogas, electr icit y,

bri cks of organic waste, charcoal br iqu ettes wh ich i s a

substit ut e for kerosene, and goods with econom ic value.

W aste that could not be processed fu rth er i n t he IT F

is transported to th e T PA. In the TPA, w aste wi l l be

p r o c e s s e d u s i n g t h e s a n i t a r y l a n d f i l l s y s t e m .

W ith this mechanism , the volum e of waste in t he TPA

wi ll be signi fi cant ly reduced because it has been pr ocessed

at the TPS or I T F. T he IT F wi l l cover several T PSes in

som e areas. T he IT F can stor e at l east 1 ,500 ton s of

waste, depending on the size of the area.

T he Di rector of Environm ental Sanitation D evelopm ent

the D irectorate General of H um an Sett lem ent s of t he

M in is t ry o f Pub l i c W orks, Syukru l A m ien, adm i t t ed

that h e is uncertain o f t he level of waste volum e reduced

by t he dry anaerobic t echnolo gy because th is techno logy

wi l l st i l l be tested in Ind onesia. I t m ight be over 30%

because m ost of th e waste in I nd onesia is organi c waste

which easily degrades, he said.

From a geographi cal p erspective, T PAs are m ostly located

in r emot e areas far from the T PS. T he journey for the

tr ansport ation of waste to t he T PA is costl y and takes

a long tim e. I T Fs can cut th e distance between t he TPS

to th e T PA so th e di stance wil l be shor ter and f aster.Transport ation costs wi ll also be cheaper since fu el used

for the truck armadas wil l be reduced.

I n h is speech at a semin ar, th e D irector G eneral of

H um an Set t lements , Bud i Yuwono, hopes tha t th i s

technology could be applied by local government either

by regents or mayors in the municipal level as an

al ternative method for waste m anagement. According

to him, wi th th is technology, transportat ion costs for

waste wil l be cheaper because of the volume of waste

decreases. I n additi on, th is system wi l l also sustain th e

sani t ary l andfi l l at t he TPA.

T he govern m ent throu gh the Di rectorate General of

H um an Sett lements is ready to provid e faci l i ti es in t he

HEADING TO ZERO WASTE,AND WASTE TO ENERGYThe seminar ti tled "Handling City Scale Waste Recycling" which was held by the Directorate

General of Human Settlements of the Ministry of Publ ic Works at Sahid Hotel, Jakarta, in

October 2011 int rodu ced a new t echnology i n w aste management in Indonesia. The

technology is called dry anaerobi c digestion and composti ng. Denm ark has applied t his

technology and has successfully addressed waste issues.

An illustration of waste sorting.Source: Sanitatio n and Gardenin g Off ice of Batam M uni cipal



10


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12/28

the operation is handed over to private sector, depends on

th e concern ed mun icipal govern ment . H owever, a feasibil it y

stu dy m ust fi rstly be conducted," he explained. H e admi tt ed

that some regions are ready to apply the technology, but

there are also other regions that are not ready due to the

unavailabil i ty of land and budget.

B U I L D A N I T F

T he Local G overnm ent of D K I Jakarta seemed to be the

m ost pr epared. I n t he local m edium term strategic plan for

the period of 2007-2012, i t has been d etermin ed that waste

volum es wil l be reduced throu gh th e 3R Program (Reduce,

Reuse, Recycle) by bui ld ing 3R centers in sett lements.

C urrent ly, there are 94 3R cent ers to reduce 35 ton s of

waste per day. T he tot al volum e of waste in Jakart a is 7,000

tons per day.

A pi lot project of the 3R program is located in social and

public faci l i ties in Pantai I ndah K apuk (PIK ), N orth Jakarta.

A w aste managem ent faci l i ty whi ch applies th e integrated

anaerobic digestio n and composting t echnol ogy whi ch can

stor e 200 t ons of waste per day wi l l be constr ucted in th is

area. Waste will be processed into compost and electricity.

T he developer of PIK and Zi T su Buddh ist Foundation i s

commi t ted to construc t i t .

In cooperat ion w i th t he D i rector a te o f Env i ronm ent al

San i ta t ion D evelopm ent o f t he D i rectora te Genera l o f

H um an Sett lements, a 3R center wi l l a lso be bui l t in theD orm itor y of Pesanggrahan Sani tation O ffi ce, South Jakarta.

"According to the draft local regulation regarding waste

m anagem ent in D K I Jakart a, all area develop ers are requi red

to bui ld thei r own waste management faci l i ty," said the

H ead of Sani tat ion O ff ice of D K I Jakarta, Bharun a Eko.

In addition, to accelerate waste management and to reduce

the volume of waste in B antargebang T PA, 3 un i ts of I T F

wi l l be bu i l t i n N or th Jakar ta, namely Cakung C i l i nc ing

IT F, M arunda IT F and Sunter IT F.

Cakun g Ci l incin g (Cacing) IT F has expanded it s area from

th e original 4.5 hectares to 7.5 h ectares. W hen it starts to

operate next year, C acing I T F w il l be capable of m anaging

1,300 ton s of waste per day. Waste wi l l be processed int o

compost, fu el for power plants wit h a capacity o f 4.95 M W

or Gas o f 445 ,699 M M B T U . Cu r rent l y, Caci ng IT F has

started its initial operating phase and wil l ful ly operate in

July 2012.

Sunt er I T F wi l l stand on 3 .5 hectares of land and wi l l be

able t o pr ocess 1,200 t ons of w aste per day wi th th e waste

to energy processin g techn ology. Curr ent ly, Sunt er I T Fopera tes as a waste compact ion fac i l i ty fo r Sunter

In termediate Transit ion Station (SPA Sunt er). M eanwhil e,

M arunda IT F is planned t o be able to pr ocess up t o 1,500

tons o f waste per day on an area o f 12 hectares .

Sunt er IT F wi l l be tendered for 3 m onth s under the PPP

scheme in in frastr uctur e provision. T he cooperation scheme

is Buil d O perate Transfer (BO T ). T he signin g of the contr act

i s p l anned to be he l d i n ea r l y Janua ry 2012 . ( * )



12


13/28

I t was pred ic ted tha t the a l legat ions o f "s tomach

problems" were deliberately spread by travel agents of

tourism destinations outside Indonesia who fel t that

th ey w ere less pop ular t han Bali. T he digesti on i l ln ess

was actual ly found out after the tourists returned to

th ei r hom e countr ies.

T here was havoc, especial ly after on e of t he television

stations in Japan broadcasted the allegations of cholera

in Bali on the television screens in t he l ivin g room s in

Japan. T he local govern m ent of Bali h as even th reatened

to sue the television station because the case has not

been proven yet.

Turbulence had also struck Bali despite that it has been

proven that the case was not caused by a cholera

out break. H owever, hot els lost t hei r custom ers, tour

guides lost their revenue and Bali 's economy did not

grow as well as expected.

W hen observin g the nation al media coverage, drop of

tourist arrivals to Bali due to cholera is not a new issue.

In 1984, an Austral ian television station broadcasted

the death of a young gi r l , an Austral ian ci t izen who

died of cho lera.

T he news broadcast w as called "A H ell of H oliday" . In

the end, this news has caused the plunging of the number

of Austral ian tourists visiting Bali. At that period, or in

any period, t he reluctance of Au stral ian t ouri sts to visit

In donesia clearly in f l ict s negative im pacts. W e know

for sure that Austral ians visit Bali m ore frequently th an

people from Jakart a.

Another digestion i l lness struck a group of Taiwanese

tour i sts af te r th ey v i si ted Ba l i i n N ovem ber 2003 .

Stakeholders in the tourism sector and government

agencies began to be burdened by this matter again.

There were allegations that they were stricken by cholera.

An in vestigation was held again.

Learning from Denpasar SewerageDevelopment SystemIn early 1995, Bali was in jeopardy. Japan, one of the nation' s largest contributors

of tour ists, alleged that Bali was str icken by cholera. The number of tourist arri vals

from Japan instantly dropped and the tour ism sector in Bali suf fered.



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14/28

From several cases, th ere is an i m pr ession th at th e

government is struggling to resolve this issue because

th ere was a huge econom ic im pact in each in cident. W hen

th e Taiw an ese tour ists case in 2003 sur faced f or exampl e,

the num ber reached 165,415 peop le or 18 .4% of th e

tot al to urists v isi t i ng Bal i . As of N ovem ber 2003 , th ere

were a total of 898,835 tourists.

TERRIBLE SANITATION

Cons i de r i ng tha t i n fo rma t i on on the ava i l ab i l i t y o f

sanit ation in frastr uctu res could be easily accessed fr om

all over t he worl d t hrou gh th e Int ern et, defensive measures

are not enough. Preventive measures should also be taken,

such as by building a modern waste treatment plant. A

good image must be es tab l i shed by bu i ld ing good

infrastructures.

T he repo r t t i t l ed E conomi c Im pac t o f S an i ta t i on i n

Indonesia, which was launched by the Water Sanitation

Program East A sia & the Pacific (W SP-EAP) of the Wor ld

Bank i n A ugust 2 008, i s incredibly scary. D eaths from

diseases triggered by lack of sanitation were higher than

deaths from road accidents which w as more than 30,00 0

lives per year (20 10).

T he D i rec to r G ene ral o f H um an S et t l emen ts o f th e

M inistry of Public Works, Budi Yuwono added, " Bappenas

r e p o r t e d t h a t t h e p r o p o r t i o n o f h o u s e h o l d s w i t h

sustainable access to adequate sanitation in 2009 reached

51.19% . W e could predict that almost 50% of I ndonesia's

children grow up in households that do not have access

to adequate sanitati on," he said.

Bud i Yuwon o added, " T h is means that t he growt h o f

nearly half of Indonesian children is threatened by poor

sani tat ion". I t was surpris ing to know how fragi le our

young generation is while our children are expected to

make this country strong and prosperous.

M ore surpr isingly, we have been d ebating about how tol l

roads and railways are slowly developed and how electricity

infrastructures are unsatisfactory, but have forgotten to

build sanitation infrastructures.

W hen citing data from the report t i tled Economi c Impact

of Sani t at ion in Ind onesia , th e cost f or w ater pol lu t ion

t reatm ent reaches ID R 13.3 t r i l l i on per year. T h is i s

s imi la r to the amount o f S ta te Budget a l loca ted fo r

sanit ation for a five year peri od. W e m ust seriously develop

our sanit ation t o avoid lo ss.

T he M inister of Publ ic Wor ks D joko K irm anto also said

that i n o rder t o achieve the targeted 62.41 % of access to

sanitati on f or h ousehold s in 2015, several in frastr uctur e

projects wil l be buil t . A substantial amount of bu dget has

been allocated by the government. It reaches 14.2 trillion

unti l the end of 2014.

Some of those projects include the addition of centralized

wastewater networ ks in 11 -16 cit ies, th e developm ent of

wastewater infrastructures and faci l i ties with the on site

system in 210 cit ies, th e constructi on of w aste tr eatment

faci l i t ies to r educe w aste pi l es by 20% , im prove themanagem ent of cit y waste services in 210 p rior it ized cit ies

and the constructi on of urban d rainages to reduce 4.600

hectares of water i n 5 0 strategic areas.

Infrastructure development is the mani festation of the

government's strong commitment in the development of

sanit ation systems. At t he UN G eneral Assem bly in l ate

July 20 10, I ndon esia becam e one of t he 122 count r ies

tha t estab l i shed san i ta t i on as a basic hu m an r igh t .

In don esia was also in cluded in th e 189 count r ies that

support the M il lennium D eclaration w hich sets sanitation

as a goal in t he M il lennium D evelopm ent Go als by 2015.

DENPASAR SEWERAGE

O ne of t he sanitati on i nf rastr uctur e proj ects that has been

constructed and is feasible to be implemented in other

cit ies is th e D enpasar Sewerage D evelop m ent Pro ject

(D SD P) in B al i . T he f i rst phase of D SD P was funded by

a loan fr om Japan Bank I nternational Corpor ation (JBIC )

IP A 431 amoun t i n g to 5400 m i l l i on yen , the cen t ra l

government wi th I D R 66.4 bi l l i on, 10 hectares of land

from the prov incia l governm ent o f Bal i (w or th Rp 100

b i l l i on) , the M unic ipa l Governm ent o f D enpasar wi t h

ID R 15.3 bi l l ion, and the Regency Governm ent of Badung

wi th ID R 6 .6 bi l l i on .

In the m aster plan of D SD P, th e cent ral ized w astewater

pi pelin e system w il l serve an area of 4 ,04 0 hectares. T he

fi r st phase of D SD P has served 1 ,200 h ectares or 3 0

percent of th e main t ouri sm areas inD enpasar. W i t h a

processing capacity of 51,0 00 cub ic m eters per d ay, th e

proj ect w as faci l i t ated by 13 0 ki lom eters of Wastewater

Pipelines.

It is no secret that Indonesia had at least

120 mil li on cases of d iarrheal disease and

50,000 premature deaths every year. Wit h

such statisti cs, tourists would be in caution.



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15/28

T he follow in g questi on m ay arise: W hy are loans and technical

assistance pr ovid ed by th e G overnm ent of Japan? Because

To ky o Sew erage System is one of t he largest cent ral i zed

wastewater t reatm ent s in t he wor ld . Tokyo M etropo l i tan

G overnm ent also operates 13 w astewater m an agem ent centers

spread across 10 districts where wastewater pipelines release

liquid waste from 23 areas in Tokyo city.

Tok yo has a long histor y of m odern sewerage system . In 1884 ,

in th e Kanda area of Tok yo, a wastewater m anagement system

was bui l t . M ikawashim a Treatm ent Plant , wh ich is the f i rst

w a s t e w a t e r t r e a t m e n t c e n t e r , w a s b u i l t i n 1 9 2 2 .

A Japanese comp any called Pacific Con sult ants In ternation al

prov id es consult ancy for th is project. T hey have also been

wor kin g in thi s sector for 50 years and supervised m ore than

94,000 projects in 130 countries.

In 2004, Wastewater Treatment Plants (IPALs), pump houses,

p i p i n g n e t w o r k s w i t h c o m p l e m e n t a r y b u i l d i n g s , a n d

connection to hom es were constr ucted. W it h th i s pip el in e

system, t here is no need t o dr ain the septi c tank so t here wil l

no longer be any septic tanks leakages so people will be free

from diarrhea, dysentery, stomach flu, etc.

In detai l , D SD Ps dut y in cludes wastewater pi pel ines (200 -

1200 mm d iameter) wi th a to ta l l ength o f 130 km, pump

hou se in Sanu r and K ut a and hou se conn ection s as m uch as

10,000 uni t s.

In June 2008 , P res i den t S us i l o B ambang Y udhoyono

in augur ated th e pro ject. H owever, befor e th e proj ect was

in augur ated, t he second phase of D SD P whi ch is plann ed t o

be com pleted in 20 14, has been anno unced. Th e proj ect w il l

be funded by a loan amount i ng to ID R 595.3 b i l l i on f rom

Japan B ank f o r In te rnat i ona l C oopera t i on ( JB IC ) . T he

agreem ent w as sign ed on 29 th M arch 2008.

B ased t he stud y o f t he D i recto ra te Genera l o f H um an

Sett lement s, 128 t ons of w aste is disposed t o t he sea. W it h

D SD P, i t is reduced to 106 ton s. Incom e from the touri sm

secto r in Bali in 2009 w as also recorded to in crease by I D R

500 b i l l i on .

H ow m uch does i t cost t o connect to the D SD P netw ork?

H ote ls and restaurants on ly need t o pay ID R 1 .5 m i l l i on ,

while households, since they are subsidized, only need to payI D R 600 ,000. Each mon th , each house only n eeds to pay

re t r ibu t i on as m uch as ID R 5 ,000. T h is am ount i s sm al l

compared to the benefits obtained.

D enp asar and even Jakarta is defin it ely n o m atch for Tok yo

th at h as been developi ng i ts sewage systems sin ce 100 y ears

ago. T hus, a stro ng in tent ion t o bu ild thi s system i s required

given that the benefi ts are much greater than amount of

investments. (*)

T he constru ction of D enpasar Sewerage Developm ent Proj ect

Photo: www.slipi constru ction.com


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16/28

W ith regards to t he waste management pl an in Putr i C emp o T PA, M ojosongo, the M unicipal G overnm ent

of Surakarta held a planning tender to obtain a pre-Feasibility Study (FS). Tender has started since September

and is expected to be compl eted by D ecem ber 2011. T he parti cipant w ho submi tt ed t he best p re-FS wil l w in

ID R 50 m i l l i on .

After the pre-FS contest is completed, the winner will make a FS regarding waste management at Putri Cempo

T PA. T he private sector w ho part icipated in t he tender in cludes PT Selaras D aya U tam a (Sedayu), PT Srikandi

Java Soloi and PT N ari t a Sem arang. Furth ermore, the pre-FS document p rod uced from thi s tender wi l l

belong to t he governm ent and tender t o obt ain investm ents wil l b e processed.

" W e need t he assistance of t he N ation al D evelopm ent Plannin g Agency (Bappenas) and PT I nd onesia

Infrastructure Guarantee Fund (PII) to assist wi th the preparation of the FS which wi l l be made by the

consul tant or tender w inner, said a Team M emb er of the Work ing Gr oup for the Cooperation Coordin ation

Team for Regional (T K K SD ) Publ ic Private Partnership (PPP), Z ubaidi H S in the discussion on the PPP

scheme in t he waste secto r at A cacia H otel, Jakart a.

Waste is a complex prob lem for Surakart a. Waste pi les at Put ri Cempo Final

Di sposal Sit e (TPA) has exceeded i ts capacity. As a solu ti on, t he Municipal

Government of Surakarta has offered waste management t o investors through

the Publ ic Pri vate Partnership (PPP) scheme.

P U T R I C EM P O I S W AI T I N GF O R T H E I N V EST O R

T he open du mpi ng m ethod is applied in severalT PAs because thi s is the cheapest meth od. Sanit arylandfi ll should have been applied.


16

PPP PROJECT S - REA D Y FOR OFF ER


17/28

Z ubaid i admi t ted t ha t i t w ou ld be d i f f i cu l t i f waste were

m anaged b y th e mun ic ipa l governm ent . T here fore, i t i s

offered to investors who are interested in managing waste

throu gh th e PPP schem e. C onsequent l y , t he M uni c ipa l

Government of Surakarta pays waste management fees to

the investor or tender winner.

H is team wi l l calculate those fees careful ly w it h reference

to the effectiveness principle and win-win solut ion. We

wi l l f i r st ly calculate how the cooperation system w i th the

in vestor s w ill be. For i nstance, i f w aste is processed in to f uel

to generate electricity, we wil l receive a percentage of the

pro fi t. T herefore, we need Bappenas assistance to calculate

i t , Z ubaid i cont inued.

In accordance wi t h Presidenti a l Regulation N o. 13/20 10

regarding the Cooperation between the Government andBusiness Entities, there are two scenarios in evaluating a

pre-FS. T hese inclu de th e solicit ed and u nsolicited system.

W e apply t he solicited system if the M unicipal G overnm ent

ini t iated the management of Putr i C emp o T PA, he said.

In th is regard, before cooperation is establ ished w i th the

private sector, the M uni cipal G overnm ent m ust pr epare the

pre-FS docum ent s.

OVERLOADED TPA

T he condi t i on of waste management in Surakarta is qui t e

concerni ng. Putr i C em po TPA, being the only T PA which

is located in M ojosongo V i l l age, Jebres Sub D ist r i c t i ssuffering from overloading from storing waste of its citizens.

T he volum e of w aste in Surakarta Ci ty reaches 265 t ons per

day. T hi s consists of househol d w aste (158 .5 ton s), t rade

and servi ces waste (38 .25 t ons), m arket waste (2 4.25 ton s)

and street and park waste (5.5 to ns).

Putr i C empo T PA was bui l t i n 1985 . It s locati on i s passed

by h igh volt age power lin es. I nit ially, waste was not a pro blem

because the distance from the waste piles to the power lines

are qu it e far. N ow adays, w aste pi les have reached a heigh t

of 15 m eters. I t alm ost touches th e lines. I f w aste is cont in ued

to pi le up, those power l ines wi l l be covered in waste.

T he TPA stands on 17 hectares of land but only 13 h ectares

are uti l ized to store waste, while the remaining 4 hectares

are uti l ized to construct waste management support ing

faci l i t ies such as a securi ty off ice, weigh b rid ge and roads.

In addition, the TPA also has a Septage Treatment Plant

( IPT L) w h ich i s managed by the Local D r ink ing W ater

C o m p an y ( PD A M ) .

"T he land be longs to t he M unic ipa l Government so the

pri vate sector does not need t o acqui re land, said Z ubaidi .

I f new land is needed in t he PPP Project, the M unicip al

G o v e r n m e n t i s r e a d y t o p r o v i d e i t , " h e a d d e d .

At t he beginni ng of i t s operation, Putr i C em po T PA used

the sani t ary landfi l l m eth od. H owever, in i ts developm ent,

due to budget constraints for i ts operation and lack of soi l

to cover the waste, the method changed to open dumping.

T he open dum pin g metho d caused th e waste piles to overload

makin g i t appear l ike mou nt ains.

T h i s cond i t i o n i s wo rsened by the T P As i nadequa te

infrastructures and faci l i ties such as inadequate disposal

instal lation/gas venti lation, fly sprays, buffer gardens and

drainage. H ence, th e T PA is prone to fir e in t he dry season

but is fi l led wit h fl ies in th e rainy season.

D ue to th e poor r oad cond iti ons, garbage tr ucks could n ot

reach t he cent er of th e disposal area. Th e tru cks could onl y

reach the edges and waste is pushed to the disposal area

using excavators. T his TPA is equip ped wi th tw o excavato r

uni t s wh ich often break d own due to lack of m aint enance.

T he PPP project for waste management at Putr i C em po

T PA is sti ll bein g prepared. Tender for t he proj ect is esti m ated

to take place in 2012. Even though there are a number of

phases related to th e management wh ich mu st be undertaken,

the M unic ipa l Governm ent o f Surakar ta i s comm i t ted to

execut e the preparation of t he managem ent of t he T PA inparal le l wi t h t he technical i t y of th e current m anagem ent .

T he Regional Secretary (Sekda) of Surakarta M uni cipal ,

Bud i Suhart o admit ted th at in order to r ealize PPP, a num ber

of steps which could delay waste management must be

und ertaken. T hus, before PPP is establi shed t hrou gh t ender,

his administrat ion must st i l l ensure the sustainabi l i ty of

waste management at Putri Cempo.

"W e create supp ort ing i nfr astr uctur es by addin g garbage

trucks or other heavy equipments because waste management

m ust cont inue unt i l t he cooperation is impl emented in ord er

to p revent a vacuum state, he aff irm ed recent ly. T hi s m eans

th at th e M uni cipal G overnm ent of Surakarta wil l stil l perfor m

th eir dut ies in m anaging w aste unt i l Put ri C em po h as been

implemented by the private sector. (*)


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18/28

LEGO K N AN GKA READ Y TOREPLACE SARI M U KTI TPA

The Provincial Government of West Java is ready to construct Legok Nangka

Final Di sposal Site (TPA) under the Publ ic Private Partnership (PPP) scheme to

replace Sarimukt i TPA because it s land ut il ization li cense wil l expire in 2018.

W aste issues in Band un g Ci ty have em erged since the

landslide catastrop he occurr ed in Leuwi gajah T PA in

February 200 5. D ue to thi s incid ent , waste could not

be transport ed t o L euwi gajah T PA. H ousehold waste,

market waste or waste from other sources is disposedto Tem porary D isposal Sites (T PS).

W aste that could not be stored in the T PS is forced

to be stacked on road sides or recklessly disposed in

r i vers or vacant land. T h is cond i t i on m akes the

envir onm ent dir ty, prod uces foul od or especial ly after

rainfal l and could become a source of diseases.

Sarim ukti T PA whi ch is located in Sarim ukti Vi l lage,

C ipata t Sub D ist r i c t , W est Bandu ng Regency has

become subj ect to waste di sposal. W aste t hat shoul d

have been di sposed to Leuwi gajah, m ust be t ransferred

to Sar im ukt i . T he Prov inc ial G overnm ent o f W est

Java who in i t ia l ly determined that the operational

l i cense o f Sar imuk t i T PS wi l l exp i re in 2012, has

decided to extend i t u nti l 2018.

Sarim ukt i T PA i tsel f is now overloaded w i th waste

disposed b y t he people. M oun ds of w aste pi l es which

resemble mountains are a common sight after the

landslid e catastr oph e. M oreover, som e resid ents have

objected if th e presence of Sarim ukt i T PA is maint ained

because waste in Sari m uk ti T PA is not well m anaged

(open dum pin g) . H ence, i t causes po l lu t ion and

becom es a sou rce of di seases.

" Aft er Leuwi gajah T PA was closed, t he main issue

faced by Bandun g M uni cipal in waste management is

the increasing pi les of waste which has not been

t r a n s p o r t e d d u e t o t h e d i f f i c u l t y o f f i n d i n g a

replacem ent T PA. Th is wil l i nfl ict n egative effects to

the env i ronmen t and pub l i c hea l th , sa i d was te

observer, Enri D amanhuri . Leuw igajah T PA has been

Leuwigajah T PA wh ich i s no longer used du e to th e waste landslide.

PPP PROJECT S - PRI ORI T Y


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operating f or over 30 y ears. I t i s located between Band ung

and Cimahi which is the f inal s i te for waste disposal for

B an d u n g R e gen c y, B a n d u n g M u n i c i p a l a n d C i m a h i

M unic ipal .

Cu rrentl y, th e volum e of waste pi les in Bandu ng M uni cipal

reaches 1,80 0 t ons per day w here 60% derives fr om h ousehold

waste. From that total volume, only 65% of waste could be

processed. In accordance wi th R egional Regulation N o.

8/ 2008 regardin g th e Regional Lon g-Term D evelopm ent

P lan o f Bandung M unic ipa l fo r the Per iod o f 2005-2025,

the M unicipal Governm ent of Bandung targets that 90% of

waste could be processed w here 20% is processed wi th the

3R (Reduce, Reuse, Recycle) method, 30% is disposed to

the TPA with environmentally friendly technology and 40%

to i s disposed t o th e landf i l l .

T he construction of L egok N angka TPA is a solut ion and

an effort made by the Provincial Government of West Java

in addressing waste issues. According to the plan, Legok

N an g k a w i l l b e c ap a b l e o f m a n ag i n g w a s t e w i t h

envi ronmental ly fr iendly technologies and could provide

added value (benefit) from processed and recycled waste.

" L egok N angka T PA wi l l become the d isposal si te fo r

Bandun g Raya, C im ahi M uni cipal, W est Bandun g Regency

and Sumedang Regency. T he pro ject wi ll u se the PPP scheme

due to the l imi ta t ions o f the Prov inc ia l Government in

providing technology and infrastructures," explained the

H ead of th e N on Regional Budget Sub D ivis ion, TubagusN ugraha.

L egok N angka is located in C iherang Vi l lage, N agreg Sub

D istri ct, Bandu ng Regency. 68 hectares of land w ill b e used

as the waste management area. All of that land has been

acqui red. T he feasibi li ty stud y has also been com pleted wi th

the assistance of Japan International Cooperation Agency

(J ICA ) .

"A lthough Sarim ukti T PA wi l l sti l l operate unt i l 2018, L egok

N angka T PA mu st soon be realized in consideration of th e

cond i t i on o f B andun g M uni c ipal , " sa id the H ead o f the

Regional D evelopm ent Plann ing A gency (B appeda) of W est

Java, D eny Juanda Puradim aja. In addi t ion, a nu mb er ofin vesto rs have expressed th eir in terest i n coop erati ng w it h

the provin cial governm ent . T herefore, tender w i l l be held

in t he near fu tu re. T he cent ral govern m ent has disbursed a

budget of ID R 26 bi l l ion for t he constr uction of access roads

to L egok N angka.

In a recent discussion on PPP in the waste sector wi th

Bappenas in Jakart a, i t w as revealed t hat i n L egok N angka

T PA, PPP wi l l only b e appl i ed in the waste managem ent

aspect while investments for land acquisition wil l be borne

by the Provincial Government of West Java.

Currently, the technology system that wil l be used and the

cost of ti ppi ng fees are sti l l bein g discussed. " T he tip pi ng

fee proposed i n the feasibi l i ty study is around U SD 18-19.

T his is extremely expensive comp ared t o th e tippi ng fee in

Sar im ukt i w h ich on ly costs ID R 33.000/ t on . The t ipp ing

fee is used f or waste m anagement and processin g. W e wil l

discuss this issue further to achieve an affordable and realistic

pri ce," said Tu bagus. T he draft f in al repor t w as just recent ly

discussed bu t t he Provincial G overnm ent still has obj ection s,

especial ly w it h t he tip pin g fee, h e added.

An oth er issue is related to t he technol ogical aspects. T he

Provin cial G overnm ent of W est Java requested t o apply ot her

bett er alternati ve techn ologies. T he reason, said Tu bagus,

th e application of t echno logy relates to t he cost. T he more

advanced the techno logy, the more the cost wi l l be .

" T he discussio n also focused on the management and

processing technology. Costs could be budgeted from the

Regional Budget or in vesto rs throu gh th e PPP scheme, he

suggested.

According to t he feasibi l i ty study, Legok N angka TPA w i l l

be developed towards the dry anaerobic digestion and

compo stin g technology considering t he m any advantages

that could be gained such as compost, electric, recycled

p roduc ts and waste reduct i on rate o f abou t 5% . T he

Provincial Go vern m ent of W est Java comm it ted to m anage

the waste of Bandung M unicipal wi th th e waste to energy

waste m anagem ent faci l i t y.

O f course, a substantia l amoun t o f bud get i s required in

ord er to apply waste to energy. T he existin g data show s th at

Legok N angka T PA could consum e more than ID R 1 tri l l ion

for th e developm ent of i ts infr astru ctures and t echnology.

To overcome th is, th e Provincial G overn m ent of W est Java

held tender for the private sector who are interested to

im plem ent th i s project through PPP.

" T he tender p rocess is expected to start n ext year so the

constr ucti on coul d soon be realized. Legok N angka T PA is

classif ied as a prior it y pro ject," said Tu bagus N ugraha. (*)

PPP PROJECTS - PRIO RIT Y


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The Municipal Government of Padang, West Sumatra, is facing problems in waste management .

Budget constraints and mini mal facil it ies caused waste management to be cent ralized in city

centers. The Muni cipal Government of Padang expects to engage investors for Publi c Pri vate

Partn ership (PPP) projects in the waste sector.

W aste seem s to pi le in Ai r D ingin Final D isposal (T PA). A similar

view could also be foun d in a nu mb er of Temp orary D isposal

Sit es (T PS) in Padang C it y. M eanw hi le, waste could also be foun d

in several vacant lands in the city outskirts because they were not

transport ed to the T PS.

Seein g this condi t ion , the D eput y M ayor of Padang, M ahyeldi

Ansar, stated that waste has become a serious problem in the

region. ' 'We have to change the mindset. Well managed waste

can pr oduce econom ic value products. For the fut ure, a solut ion

in waste m anagement mu st b e found to avoid w aste from pi l in g

up in the T PS,' ' h e said.

As a solut ion , the M uni cipal Governm ent o f Padang plans to

construct a waste management faci l i ty to process waste into

compost and energy source in 20 12. T his facility wil l be constru cted

ad j ac en t t o A i r D i n g i n T PA . T h e M u n i c i p al G o ver n m en t

th emselves have pl aned th e construct ion o f th e T PA. Th is pro jectis a potential project which wil l soon be implemented to resolve

waste i ssues thr ough th e PPP schem e.

"It is impossible to use the Local Governments budget because

the constr uctio n requires a substant ial am ount of f und s. H ence,

we are exploring th e opportuni t y t o construct i t u nder PPP wi th

investors who are wi l l in g to constru ct i t ," contin ued M ahyeldi .

Ai r D ingin T PA is designed to u se the sani tary landfi l l system.

H owever , i t wi l l no t fu l l y fun c t ion due to l im i ted suppor t i ng

equip m ents such as excavator s and b ull dozers. T hus, th e T PA

wi l l opera te wi t h t he open d um ping system which potent ia l l y

pol lut es the envi ron m ent.

Waste management through PPP has already been planned since

last year. Th ere was even a pl an to pro cess w aste in to b io energy

but t hat plan has not b een real ized unti l now. T he M uni cipal

Governm ent of Padang contin uously tries to approach th e private

sector so t hey would cooperate. I f t here are any in terested t hir d

parti es, waste is expected t o b e processed in to oth er pro duct s,

said Azwin , H ead of Padang Investm ent O ffi ce.

Furt herm ore, he claims that h is off ice is ready t o provi de vari ous

faci l i t ies to investor s who are wi l l i ng t o i nvest. T hose faci l i t ies

among others include ease in obtaining l icenses, preparing a

research t eam for object and in cent ives in th e tax secto r as well

as reductio n of retri but ion s. M oreover, i f the investm ent is able

to r ecrui t m any labors, taxes and retribut ions in t heir in vestm ent

sector w i l l be reduced by 2 0% to 100 % .

T he potentia l of waste from households in Padang M uni cipal

reaches a volum e of 80 0 t on s per day. O nl y a sm all part is processed

into compost with a production of approximately 4.5 tons/month

or about 150 k g/day. All of th e waste is managed i n a TPA located

in A i r D ingin V i l lage, Kot o Tangah Sub D istr i ct, on an area of

30 hectares. Compost processed from waste is used to ferti l ize

plant s in city gardens.

Regard ing A i r D ing in T PA, the H ead o f the Local O f f i ce fo r

Sani t at ion and Gardening O ff ice of Padang Ci t y, M edistar, in adiscussion forum wit h t he N ational D evelopment Plannin g Agency

(Bappenas) which was recently held in Jakarta, affirmed that there

are tw o in vestor candi dates who h ave subm itt ed t heir Feasibi l i t y

Study (FS) for the waste management project under the PPP

shceme. T hose tw o in vestors are PT U niversal In docom m erce

and PT Bion ersis In don esia. (*)

TH E M U NI C IPAL GOVERNM ENT OF PAD ANG

I N VI TES TH E PRI VATE SECTO R TO D EVELOP T PAs

A conventi onal waste sorting machine whi ch sorts organic and inorganic w aste.


20

PPP PROJECTS - POTEN TI AL


21/28

Infrastructure is also an absolute prerequisite for

investm ent s entering a region. W ith th e support

of adequate infrastructure, a region will easily

engage investor s. T hi s means th at in vestm ents could encourage

regional economic growth so the peoples livelihoods will improve.

T herefore, it is reason able if t he govern m ent fo cuses it s attent ion

to th e infr astr uctur e sector.

T he 2011 G overnm ent W ork Plan (RK P) states that th e objective

of i nfr astru cture developm ent is directed to support n ational food

securi ty, improve connectiv i ty between regions (domestic

connectivity), strengthen virtual domestic interconnectivity, reduce

backlogs in housing and basic housing infrastructure provision,

im prove nation al energy securit y, increase the availabil ity of r aw

water and f lood control.

To suppor t t he M aster Plan for t he Acceleratio n and Expansion

of I ndonesia's Econom ic D evelopment (M P3EI) 2011-2014, t he

governm ent r equires a budget of I D R 755 t ril lion f or in frastr uctures.

H owever, th e governm ent f aces limi tations in meetin g the bud get

needs. Th e governm ent can onl y provide ID R 544 tri l l i on of t he

total budget required.

To cover the shortcomings, a new paradigm is needed ininf rastr ucture developm ent policy in In donesia whi ch concerns

the relationship between the government, local government and

pri vate sector. T his relationship w ill b e form ulated in Publi c Private

Partnership (PPP) project scheme, as stated in Presidential

Regulation N o. 56/201 1 and Perpres N o. 13/ 2010 regarding t he

Am endm ent o f Presidential Regulation N o. 67/200 5 regardin g

the Cooperation between the Government and Business Entities

in Infrastructure Provision.

T his regulation governs PPP for certain i nfr astru cture projects

including ai rports, seaports, rai lways, roads, c lean water

supply/irrigation systems, drinking water, wastewater, solid waste,

information and communication technologies, electricity and oil

and gas.

In terms of PPP projects, th e D irectorate for Publ ic Private

Partn ership D evelopm ent (PK PS) hol ds a very i mp ort ant role. Asa uni t work ing under the D eputy for Inf rastructu re Aff airs, the

PKPS D irectorate is assigned to draft pol ic ies, coord inate,

synchronize and evaluate PPP programs in the infrastructure sector.

T hi s un it is also assigned t o prepare a nati onal develop m ent pl an

for PPP development in the short, medium and long term.

In perform ing it s dut ies, th e PK PS D irectorate has th ree sub

directorates namely Regulation, Institution, and Information Sub

D irectorate, Tariff and Risk An alysis Sub D irectorate and Fundin g

and I nvestm ent Coop eratio n Sub D irector ate.

Each sub directorate possesses specific duties that support and

complement each other. Th e dut ies of th e Regulation, I nstit ution ,

and In for m ati on Sub D irectorate are to condu ct poli cy assessm ents

and prepare th e draft n ation al developm ent plan in t he instit uti onal,

information, and infrastructure regulation sector and conduct

moni to r ing , eva lua t ion , assessment and repor t ing on i ts

implementation.

Adequate in frastructu re, either in quality or quant it y, is an absolute

prerequisite for rapid economic growth. Infrastructure developm ent

is also needed to achieve equ it y, reduce povert y and i mprove thequalit y of life.

T H E F R O N T L I N EO F P P P I N F R AST R U C T U R E

P R O J E C T S

D irector f or Public PrivatePartn ership D evelopment,Bappenas, D r. Ir. BastaryPandj i Ind ra, M SP.

Directorate of Public Private Partnership Development, Bappenas.

21November 2011 Edition - SUSTAINING PARTNERSHIP

PPP PARTN ER PROFIL E


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T he Tariff and R isk A nalysis Sub D irector ate has a duty t o conduct

poli cy assessm ents and prepare the draft of nation al develop ment

plan on service tariff for infrastructures and risk al location and

conduct m onit orin g, evaluation, assessm ent and reporti ng on its

implementation.

M eanwhile, the Funding and In vestm ent C ooperation Sub D irectorate

has a dut y to cond uct pol icy assessm ents and prepare the dr aft

national developm ent p lan in t he fundi ng and investm ent cooperation

sector and conduct m onit orin g, evaluation , assessm ent and report ing

on its imp lem entation.

T he role of th e PK PS Di rectorate also in cludes preparin g, form ulating,

coordinating, synchronizing as well as evaluating PPP project plans

in th e waste sector. I n f act, th e directorate team did not hesitate to

assist provincial/regency/municipal governments in conducting

monitoring visits to the field in terms of PPP development as well

as providing advice on projects implemented in cooperation withthe private sector.

O th er fo rm s of suppor t related to PPP projects are also provi ded by

th e dir ectorate. For examp le was when t he M uni cipal G overnm ent

of Surakarta needed assistance in the preparation of the Project Pre

Feasibi lit y Stu dy (FS) of Putr i C empo T PA. A simi lar request w as

conveyed by th e Sani tat ion and G ardeni ng O ff i ce of Padang

M uni cipal. T he PKPS D irectorate assisted in t he evaluation of t he

F S suggested by A i r D i ng i n T P A i n P adang M un i c i pa l .

Aside from resolving the issue of limited government budget, PPP

projects have currently become the star in intensifying infrastructure

developm ent i n In don esia. Th e PK PS D irector ate has respon ded to

thi s matter by educating all stakeholders th rough discussion foru m s

and seminars. T herefore, the for um regarding PPP educati on i s

being intensively held by Bappenas.

In October 2011 for example, a discussion forum on PPP projects

in th e waste secto r w as held at A cacia H ot el Jakart a and was attend ed

by m any mun icipal governm ents in I ndon esia. T he purpose of th is

discussion is to obtain inputs regarding the chal lenges and

impediments in the implementation of waste projects and i ts

alternativ e solu ti on; accelerate th e preparation and im plem ent ationof PPP projects; facilitate the planning of PPP development projects

and annual budget allocation in th e State Budget and G overnm ent

Work Plan (RKP).

Subsequently in M edan, wit hin the same mont h, a national seminar

tit led " O pti m izing the PPP Scheme in In frastru cture D evelopm ent

in a Region" was held w it h a purpose is to encourage PPP developm ent

projects in t he countr y. A guid elin e book w as also i ssued for in vestor s

investi ng in th e infr astr uctur e sector.

PKPS D irector B astary Pandji I ndr a on various occasion s has always

stressed th at the govern ment needs to w ork wi th the pr ivate sector

in in vesti ng in inf rastr uctu re developm ent. T herefor e, the role of

the private sector in infrastructure provision must be enhanced

through a measurable cooperation, he said.

According to him, infrastructure development delivers positive

im pacts on variou s sectors such as reducing unemp loym ent , r edu cing

poverty and increasing income. Infrastructure is an effective way of

imp roving the nation al economy. "W ith out in vestm ents in the

infrastructure sector, do not expect to achieve the targeted Gross

D o m e st i c Pr o d u c t ( G D P ) o f U S D 1 3 . 0 0 0 i n 2 0 2 5 .

T he governm ent t argets that In don esia wi ll become a develop ed

country and one of the 12 major powers in world by 2 025 th rough

an i nclusive and sustainable rapid econom ic growt h. Furt hermo re,

Indonesia is targeted to become one of the 8 major powers in worldby 2045. This target could be achieved i f investments in the

inf rastru ctur e sector r apidly grow. O f course, i t i s the dut y of

Bappenas along and al l e lements of the country to develop

infrastructures by providing a conducive investment cl imate for

investors to invest through PPP projects,said Bastary Pandji Indra.

(* )

In the waste sector, PPP projects include the

development of Final Disposal Site (TPA)

infrastructures as well as its processing

technology or PPP management f romupst ream to downst ream (co l lect ion,

transportation unt il the processing process at

the TPA). Rules or con di ti ons in the waste

secto r are govern ed i n Law N o. 18/ 2008

regarding Waste Management.

PPP PARTN ER PROFIL E


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In In donesia, waste m anagem ent is explicit ly governed by L aw

N o. 18/2 008 regarding Waste M anagem ent . On e of th e dut ies

of t he govern ment and local govern ment s in waste managem ent

as referred t o in Ar ticle 6 is to m anage waste and faci l i tate theprovision of waste management infrastructures and faci l i ties.

T his duty does not only include th e managem ent process by

pro vidi ng of garbage tr uck fl eets, waste bin s, Tem por ary D isposal

Sit es (T PS) and Fi nal D isposal Sit es (T PAs), bu t i t also in cludes

the management p rocess s tar t ing f rom waste co l lec t ion ,

tr ansport ation and processin g.

W aste fr om hou seholds, m arkets, off ices, com m ercial areas

unt i l a num ber of ot her places th at becom e the source of w aste

is co l lec ted and taken to the T PS. Fur t hermore , w aste i s

transported from th e T PS to t he TPA f or pr ocessing. W aste

collected at th e TPS has undergone the sort ing p hase (sort in g

of w aste th at could b e recycled). T hus, the volum e of waste in

th e T PA reduces. Generally, the duty of collectin g, transpor ti ng

and processing waste is carr ied out by regional /municipal

sanitation office officers.

Ar t i c le 24 states that th e govern ment and local governm ent

mu st f in ance the impl ementation of w aste m anagem ent from

th e state and local bud gets. Budget al locati on proposed fo r

waste m anagem ent (part o f t he sanit ation p rogram) i s annu allyd e t er m i n e d i n t h e D r a f t St a t e an d R eg i o n a l B u d g et .

Waste and population are two interrelated things. Population

growt h causes the volum e of w aste to increase. T he law of

causal i ty appl ies wh ere population growth is proport ional to

th e pi l ing of waste. Th erefore, regency/m uni cipal governm ent s

face th e problem of waste m anagem ent .

In one hand, the volume of waste continues to swel l as the

popu lation increases, wh ile on t he other hand, t he availabil i ty

o f l and fo r T PAs becom es increasing ly l im i ted . M oreover ,

Regional Budget could no t pr ovide fun ds for waste management

in i ts region.

T herefore, Art ic le 6 of Law 18 /2 008 in dicates th e need for

reg iona l /mun ic ipa l governments to conduct in te r -agency

coordinatio n, coordin ation w ith the pub lic and business sector

to synergize waste management.

Presid ent ial Regulati on (Perp res) N o. 56/ 2011 and Perpres N o.

13/ 201 0 wh ich amends Perpres N o. 67/ 2005 em phasizes th at

Local Governments could establish cooperation with the private

secto r in th e Provision of W aste Facil i ty.

Part nershi p w it h t he pri vate sector is a step t hat can be taken

in order t o cover t he l imi ta t ions o f the reg ional / mu n ic ipa l

governm ent in provid ing p ublic service in t he waste m anagem ent

sector. T hose l imi tations do not only cover bu dget constraints,

but it also includes manpower, skill, experience, until limitations

in waste processing technologies.

Al l PPP activit ies should start from a pre-feasibi l i t y stud y wi th

a purpose to assess the feasibi l i ty of projects which wil l be

T he waste sorti ng m achin e in Cakun g wit h a capacity of 800 ton s per day.

The government alone is unable to overcome waste issues.

The parti cipation of the private sector is needed to manage and process

waste through Public Private Partnership (PPP).

P PP PRO G R A M E D U C A T I O N


23


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execut ed, eith er t he feasibi l i t y of i nvestm ent, t echn ology or

related aspects in the fu tu re. Th e pre-feasibi l i t y study could

be condu cted by th e local governm ent or pr ivate sector. T he

results of the pre-feasibility study will further be assessed by

a team com petent in th e related sector. O nce com pleted, t he

project wil l be tendered.

T here are tw o ty pes of f ees th at m ust be prepared in t erm s

of w aste m anagem ent. T hese in clud e in vestm ent costs (land ,

i n f r a s t r u c t u r e ) a n d m a i n t e n a n c e c o s t s ( c o l l e c t i o n ,

transportation and processing). After the feasibility study has

been evaluated, i t could be determined whether the private

sec to r w i l l i mp l emen t bo th p ro j ec ts ( i nves tmen t and

maint enance) or a part of t he project w i l l b e implemented

by the local governm ent . Th is wil l fur ther be prepared in the

ana lys is o f the PPP pro jec t tha t wi l l be imp lemented.

Up to th is moment, many waste management projects in

In don esia is cond ucted w ith the PPP schem e. For example,

the Provincial Governm ent of D K I Jakarta engaged th e private

sector t o m anage waste in t he Bant argebang TPA. I n addit ion,

in t he futu re, waste m anagem ent is planned to be impl em ent ed

under the PPP scheme.

T he PPP scheme wi l l also be applied in waste m anagement

projects in a number of cities such as Bandung, Surabaya,

Lamp ung, Padang, Bogor, D epok and oth er cit ies. T he basic

consideration for such cooperation is because the local

govern m ent does not have budget and adequate fu nd s as

fund s required for waste management wh ich comp l ies wi t ht h e s t a n d a r d s a n d r e q u i r e m e n t s a r e s i g n i f i c a n t .

O n t he other hand, t he interest of th e private sector in waste

m anagem ent is quit e large as there is investm ent guarant ee

and legal certainty. Projects executed under the PPP scheme

receive government guarantee through the guarantee scheme

betw een th e provincial /regency/m uni cipal governm ent and

Ind onesia I nfrastru cture G uarantee Fund (I IG F) as mandated

b y P r esi d e n t i al R e g u l at i o n N o . 7 8 / 2 0 1 0 r e g ar d i n g

I n f r a s t r u c t u r e G u a r a n t e e i n P P P P r o v i d e d t h r o u g h

Inf rastru cture G uarantee Fund.

From a business perspective, waste management projects have

proven to b e a fairly l ucrative business opp ortu ni ty. D espit ethe large amount of in iti al capital, such capital wil l cert ainly

retur n even pr ofi table al th ough wi t hin a relat ively lon g

t ime.

O ne of t he successfu l w aste m anagem ent PPP pr oject is

l ocated i n B a tam M un i c i pa l . Si nce A p r i l 2009 , waste

m anagement was handled by PT. Surya Sejahtera. In it ial ly,

waste managem ent in B atam M uni cipal was contro l led by

Batam Au th orit y throu gh the Sanitation M anagement A gency.

In 2000, the implementation of waste management was taken

o v er b y t h e G o v er n m en t o f B a t am M u n i c i p al .

T h e G o v er n m en t o f B a t am M u n i c i p a l c on d u c t e d an

assessm ent on the Perpr es N o. 56 /20 11 and Perpr es N o.

13/ 2010 w hich amends Perpres N o. 67/2 005 th at al lows the

management of upstream to downstream sani tat ion to be

handed ov er t o t he pri vate sector. T he result of t hat assessm ent

was waste m anagem ent cou ld be handed over t o t he pri vate

sector. Economical ly, the municipal government and the

pri vate sector wi l l equally gain prof i t s.

Budget allocated for waste management constantly increases

by the yea r wh i l e revenue ga i ned f rom re t r i bu t i on i s

insuff ic ient. T he M unicipal Governm ent p rovided PT Surya

Sejahtera wi th a 25 year t ime frame to manage waste in

Batam. M eanw hil e, capit al invested by th at comp any reached

ID R 500 bi l l i on .

N ow, th e benefit s of PPP have been felt by th e people and

G overnm ent of Batam M unicipal. The environm ent in Batam

becomes c lean. In add i t i on , t he M unic ipa l G overnm ent

obtains profi t sharing of 5% from retribut ions collected from

custom ers; regional income of ID R 5,000 fro m on e ton of

waste and 5% pro f i t f rom pro f i ts ob tained f rom pro ductsproduces from processed waste. (*)

Creating the habit of sorting wet and dry waste is a positivestep fo r educatin g t he society i n und erstandi ng w aste issues.

P PP PR O G RA M E D U C A T I O N


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SODI Q SUHARDIANTO

Waste M anagement Ent repreneur

Sodiq Suhardi ant o is a quite famil iar fi gure in t he waste sector.

T he man w ho w as bor n i n Jem ber, East Java, 53 years ago is

well k now n as an obser ver of w aste issues. H is crit icism andthoughts about waste management in Indonesia are often

pub li shed on th e pages of n ati onal n ewspapers. H e is also

popul ar in the M in is

Documents

Public Private partnership in the Waste Sector. Sustaining Partnership. Media for Information on Public Private Partnership. November 2011