Public Private Partnership on Solid Waste Management: A Business Opportunity

Launching of Alliance for Marine Plas?c Solu?ons

UjangSolihinSidik

DeputyDirectorforProduct&Packaging,

DirectorateofSolidWasteManagement

DirectorGeneralforSolidWaste,HazardousWasteand

HazardousSubstanceManagement

MinistryofEnvironmentandForestry

RepublicofIndonesia

Indonesia SWM State

65,088,257.71

65,999,493.32

66,923,486.23

67,860,415.03

68,810,460.84

2015 2016 2017 2018 2019

Projec2onofSWGenera2onSWComposiPon

Source:ProgramAdipura,2013

Source:BPS&MoEF,2015

429,254.81

470,544.10

507,738.17

2011 2012 2013

TrendofPlas2cWasteGenera2onin

SeveralBigCi2es(m3)SWManagement State(%)

Landfilled 69%

Buried(tradiPonally) 10%

Compostedandrecycled 7.5%

Burned(openly) 5%

Un-managed 8.5%

Source:ProgramAdipura,2013

SWM: From Household to Global Issue

It used to be neighborough issue, now it becomes global challenges

PollutetoEnvironment

NovaluesHealthproblem

Shanty&unlivableciPes

Sourceofconflict

SourceofGHG

Costcentre

Flooding

Outofpriorityissue

Waste=Problems

Others

Obsolete Paradigm of Our Waste

POTENCY OF SOLID WASTE AS RESOURCE

NO.

Composi2onAmount(tons) Usage

Types %

1 Compostable

organic

60 38.400.000 Compost,Biogas,Heat/Electricity

2 Plas2c 14 8.960.000 Rawmaterial,Heat/Electricity

3 Paper 9 5.760.000 Rawmaterial

4 Metal 4,3 2.752.000 Rawmaterial

5 Rubber 5,5 3.520.000 Refusederivedfuel

6 Tex2le 3,5 2.240.000 Rawmaterial

7 Glass 1,7 1.088.000 Rawmaterial

8 Others 2,4 1.536.000 Others

5

POLICY TRANSFORMATION (UU NO. 18/2008 & PP NO. 81/2012)

•  WASTEJUSTPOLLUTANTLOADS

•  NOWASTEREDUCTION

•  NOWASTETORESOURCE

•  NORESOURCEEFFICIENCY

•  FULLVIRGINRESOURCEEXTRACTION

•  LINIERECONOMY

6

SHIFTINGTHEPARADIGM

ENDOFPIPESOLUTION 3R&EPR CIRCULARECONOMY

•  REDUCEWASTEASPOLLUTANTLOADS

•  REDUCTIONATSOURCE

•  WASTETORESOURCE

•  RESOURCEEFFICIENCY

•  LIMITVIRGINRESOURCEEXTRACTION

•  PRODUCERRESPONSIBILITY

•  LESSWASTEBYDESIGN

•  MAKEWASTEANEWLIFEASLONGASPOSSIBLE

•  SUSTAINABLECITIESANDCOMMUNITIES(SDGGOALNO11)

•  RESPONSIBLECONSUMPTION&PRODUCTION(SDGGOALNO12)

Beforelawerected LawimplementaPon AdvanceimplementaPon

Avoid&reducewaste

Rawmaterial Businessopportunity

Clean&livableciPes

RDF

AlternaPveenergy

Futureinvestment

FloodingprevenPon

Mainstreamissue

Waste=Solu2ons

Compost

NewParadigmofOurWaste

SOLID WASTE MANAGEMENT (Law No. 18 Year 2008)

KeyFactors:

1.   Government both central and local are responsble to ensure SWM

impementa2on is carried out well in environmentally sound

management

2.   Eachindividualandproducerobligetoreducetheirwaste

WASTEMINIMISATION:1.  AVOIDANCE&PREVENTION

2.  RECYLINGATSOURCE

3.  REUSEATSOURCE

WASTEHANDLING:1.  SEGREGATION

2.  COLLECTION

3.  TRANSPORTATION

4.  TREATMENT(composPng,recyling,

energyrecovery)

5.  FINALPROCESSING(atlandfill)

1.  Formulatenorm,standard,procedure,and

criteria

2.  StrengthencoordinaPon&partnershipatcentral

andlocalgovernment

3.  Strengthencommitmentofcentral&local

execuPve&parliamenttoallocateSWM

sufficientbudget

4.  Strengthencapacityonleadership,insPtuPon,

andhumanresource

5.  DevelopinformaPonsystem

6.  Strengthencommunityengagementthrough

communicaPon,informaPon&educaPon

7.  DevelopincenPve&disincenPveschemeon

wasteminimizaPon

8.  Strengthencommitmentofbusiness(producer&

retailer)tominimizethewaste

WASTEMINIMISATION

1.  Formulatenorm,standard,procedure,andcriteria

2.  StrengthencoordinaPon&partnershipatcentralandlocal

government

3.  Strengthencommitmentofcentral&localexecuPve&

parliamenttoallocateSWMsufficientbudget

4.  Strengthencapacityonleadership,insPtuPon,andhuman

resource

5.  DevelopinformaPonsystem

6.  StrengthencommunityengagementthroughcommunicaPon,

informaPon&educaPon

7.  Develop&implementfinancialschemeforinvestment,

operaPng&maintenance

8.  Strengthenpublicprivatepartnershiponwastehandling

9.  DevelopincenPve&disincenPveschemeonwastehandling

10. Implementbestavailable&environmentallysoundtechnology

11. Lawenforcement

WASTEHANDLING

STRATEGY OF SOLID WASTE MANAGEMENT (Proposed Draft of Presidential Regulation)

BUSINESSOPPORTUNITIESONSOLIDWASTEMANAGEMENT

us.sidik@gmail.com

SOURCE

PLTSa

TPS

TPS3R

CompostIndustry

RecyclingCenter

TPA/TPST

MIDSTREAM:WasteHandling&U2liza2on

Publicinvestment:Rp500juta/ton;OM:Rp50-100

ribu/ton

BankSampah

Compos2ng

Publicinvestment:• Rp300-1.000/kgscaleof

RT/RW

• Rp20-50ribu/tonscaleof

estate

TPS3R:Publicinvestment:Rp500juta/ton

OM:Rp50-100ribu/ton

Collec2onFeeRp3ribu-50ribu/KK/bulan

TPA:Publicand/orprivateinvestment:Rp5M/ha;OM:

Rp150-400ribu/ton

TPST:Integratedtreatment

facilitywithembeddedlandfill.Thevalueofinvestmentisvary

dependontypeoftechnology.

Transporta2onPublicand/orprivateinvestment:

Rp300-500juta/unit;OM:Rp

50-150ribu/ton

Incinera2onplant:Publicand/orprivate

investment:Rp1,4T/1000

ton;OP:Rp500ribu/ton

LandfillgastoelectricityUnitcostRp700-800/kWh

DOWNSTREAM:FinalprocessingatLandfill

Publicand/orprivateinvestment:Rp1M/10ton;

OP:Rp100-200ribu/ton

Publicand/orprivateinvestment:Rp1M/10

ton;OM:Rp100-150

ribu/ton

Publicinvestment:Rp20-30juta/unit

UPSTREAM:WasteMinimisa2on

CementindustryRefuseDerivedFuel

(RDF)forfeedingthe

kilnRDFPre-processingPublicand/orprivateinvestment:

Rp40-60M/120ton;OM:Rp

200-400ribu/ton

LEGALFRAMEWORKOFPPPONSWMPROJECT

SWMProject

Sector

Inter-sector

LocalRegula2on

PPP

LawNo.18/2008SolidWasteManagement;

LawNo.30/2007Energy;

ESDMMinisterialRegulaPonNo.12/2017

LawofPT;

LawofTax;

Lawofinvestment,et..

Govt.RegulaPonNo.50/2007Local

GovernmentPartnership

PresidenPalRegulaPonNo.38/2005

anditschanges.

BappenasRegulaPonNo.3/2012

11

Source:Gunsairi,Bappenas2014

LANDFILLGAS

COLLECTION,TRANSPORTATION,

TREATMENT

Scheme of PPP on SWM Project

Service Contract

O & M Contract

BLT (Leasing)

BOT/ ROT

BOOT/ ROOT

BOO/ ROO

Privatization

Public Investment

Private Investment

O&M Contract � Operation and Maintenance

BLT (Leasing) � Build and Transfer

BOT � Build Operate Transfer

ROT � Rehabilitate Operate Transfer

BOOT � Build Own Operate Transfer

DBFO � Develop Build Finance Operate

BOO � Build Own Operate

ROO � Rehabilitate Operate Own Source:Gunsairi,Bappenas2014

1.  Projectfinancialfeasibility:

•  Bigscaleprojectwithminimumcapacity500tons/day

•  Notyetbankable(highrisklowreturn)

2.  ConPnuityoffeedstocksupply

3.  CommitmentofPpingfeefromlocalgovernment

4.  Landavailability

5.  Propersitethatacceptablebypublic/community

6.  Proventechnologynotyetacceptablebypublic/community.

13

Challenges on PPP Project

TERIMAKASIH

THANKYOU