Public Private Partnership in The Waste Sector. Sustaining Partnership. Media For Information On Public Private Partnership. November 2011

November 2011 Edition
MEDIA FOR INFORMATION ON PUBLIC PRIVATE PARTNERSHIP
PPP Mechanism in the Waste Management Sector Making Friends With Waste
Heading to Zero Waste, and Waste to Energy
INDEPENDENT WASTE MANAGEMENT
EDITORIAL
PPP in the Waste Sector

From all of the sectors in the infrastructure sector, investors are least interested in the waste sector, unlike the drinking water sector, toll road sector, port, telecommunication, airport and others. Although investing in the provision of high-tech equipments absorbs an abundant amount of funds, this sector must be considered as an activity which delivers many benefits for our lives. Firstly, because managing waste, either organic or non-organic will make the environment clean and make our lives more comfortable. Secondly, products produced from waste management could provide added value such as compost, liquid fertilizer and biogas that could be converted into electricity. On the other hand, non-organic waste could be used to make various useful handicrafts. The 3R concept which consists of reduce, reuse and recycle must be socialized to our society. Waste management will certainly become easier if the society actively participates by sorting waste according to its type. This edition of the Sustaining Partnership Magazine discusses about independent waste management, how we could be friends with waste, how to reduce waste and convert it into an energy source and how to learn from the liquid waste management in Denpasar. Other articles also discussed in this edition include Putri Cempo Public Private Partnership (PPP) Project in Surakarta which is ready for offer, Legok Nangka PPP Project which replaces Sarimukti Final Disposal Site (TPA) in Bandung Municipal and Air Dingin PPP Project in Padang which is classified as potential. Furthermore, the figure section discusses about PPP supporting institutions as elaborated by the Directorate of PPP Development the National Development Planning Agency (Bappenas). This directorate plays a significant role in socializing and escorting the preparation process of PPP projects in Indonesia as well as the subsequent process of PPP Project cycle. Other articles talks about how to invest in a PPP project in the waste sector, the profile of the Director of Program Development, Directorate General of Human Settlements, Ministry of Public Works and Sodiq Suhardianto who successfully converted waste from a problem to a source of funds. Finally, there is an article regarding the discussion on The PPP Scheme in the Waste Sector which was held by the Directorate PPP Development of Bappenas in Jakarta in October 2011. ADVISOR Deputy Minister for Infrastructure Affairs, Bappenas DIRECTOR Director for Public Private Partnership Development, Bappenas CHIEF EDITOR Jusuf Arbi BOARD OF EDITORS Delthy Sugriady Simatupang, Gunsairi, Rachmat Mardiana, Novie Andriani, Mohammad Taufiq Rinaldi, Ade Hendraputra MANAGING EDITOR B. Guntarto REPORTER/RESEARCHER Sandra Kaunang, Agus Supriyadi Hidayat PHOTOGRAPHER Arief Bakri GRAPHIC DESIGNER Indrie Soeharyo TRANSLATOR FROM INDONESIAN VERSION Setiana
Please enjoy reading the magazine.
Infrastructure Reform Sector Development Program (IRSDP) BAPPENAS Jl. Tanjung No.47 Jakarta 10310 websites: www.irsdp.org Tel. (62-21) 3925392 Fax. (62-21) 3925390
Editorial
SUSTAINING PARTNERSHIP - November 2011 Edition
CONTENT
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4 7 10 13
MAKING FRIENDS WITH WASTE
HEADING TO ZERO WASTE, AND WASTE TO ENERGY
LEARNING FROM DENPASAR SEWERAGE DEVELOPMENT SYSTEM
PPP PROJECTS - READY FOR OFFER

Putri Cempo is Waiting for the Investor
PPP PROJECTS - PRIORITY
Legok Nangka Ready to Replace Sarimukti TPA
PPP PROJECTS - POTENTIAL
The Municipal Goverment of Padang Invites the Private Sector to Develop TPAs
PPP PARTNER PROFILE

Directorate of PPP Development
PPP PROGRAM EDUCATION

PPP Mechanism in the Waste Management Sector
FIGURE
> Sodiq Suhardianto > Antonius Budiono
NEWS AT GLANCE
Discussion on PPP Project Scheme in the Waste Sector
November 2011 Edition - SUSTAINING PARTNERSHIP
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Undeniably, many people are still badly behaved when it comes to waste. People litter everywhere. This behavior does not recognize the level of education or social status. In a government office, bank, school or campus, many highly educated people litter. Luxury car drivers are also often seen throwing tissue, cigarettes or food wrapping from their car window to the road.
As a result, garbage is scattered everywhere, either in gutters, rivers, markets, buses, terminals or any other places. People still litter despite that rubbish bins are available. This is a common sight in urban areas. Data from the Ministry of Environment in 2010 shows that waste volume in Indonesia reaches an average of 200,000 per day. Urban areas contribute the most waste 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 will increase by five folds. This means 1 million tons of waste per day. Fantastically, increased amount of waste is triggered by population growth. Almost every country in the world is suffering from waste issues. However, developed countries whose people are fully aware about the environment and are supported by modern technology have successfully overcome waste issues. Exporting waste to other countries is also a solution to overcome waste issues. Waste management has actually been regulated by the government through Law No. 18/2008. The Law states that waste management is not only the duty of government but the society and businesses that produce waste are also responsible for creating a clean and healthy environment. The government through Law No. 18/2008 h as provided a la rge s pace for pr ovincial and regency/municipal governments to plan and manage waste within their region. Although authority has been distributed, waste management does not automatically become simple. Waste management in Indonesia is still unstructured. Difficulty in seeking land for a Final Disposal Site (TPA), limited amount of transportation vehicles, lack of public awareness in managing waste from the source, traditional waste management technology (burning and open dumping), until the lack of the publics knowledge on waste becomes a problem. In addition, budget constraints are also a problem since constructing waste management infrastructures and
facilities require large amount of funds. The Municipal Government of Padang, Jakarta, Solo and Bandung face budget constraints while the Municipal Government of Batam faces land issues. The Deputy Assistant for Waste Management of the Ministry of Environment, Sudirman, asserted that waste management programs only focuses on the downstream aspect, ie, how to process waste. While in the upstream aspect, it appears that the government ignores people or parties who produce waste and does not apply any law enforcement or strict sanctions. Ironically, this is the most important aspect. The publics awareness in maintaining cleanliness is very low. This condition should be improved by increasing the publics a war eness in e nvir onm enta l iss ues , h e ex pla ined. According to Sudirman, waste management must start from each individual. Waste exists because of humans. If people are aware, the problem would not become crucial. Therefore, the government must firmly apply sanctions against people who violate the local regulation regarding cleanliness," said Sudirman.
two kinds of waste, namely organic and inorganic waste. People must firstly sort waste before disposing it to the TPA. Sorting is conducted to ease the implementation of the processing technology in the TPA. Organic waste should be managed independently by the community by converting it into compost. If this is too difficult, there should be a special waste management unit which stores organic waste and convert it to compost. Meanwhile, inorganic waste like plastic, paper, food wrapping or metals should be disposed to the special waste management unit for recycling. The volume of waste in the TPA will significantly decrease if households utilize organic waste for fertilizer because 70% of household waste is organic and 30% is inorganic, said Syukrul Amien, the Director of Environmental Sanitation Development the Directorate General of Human Settlements of the Ministry of Public Works. Independent waste management has been applied in several regions in Indonesia such as Malang, Depok, Bogor or Pasuruan. A number of other regions will be ready to apply this program. Even though TPAs exist, its location is so remote giving rise to high expenses for waste collection from the Temporary Disposal Site (TPS). In addition, there are also issues during the transportation of waste. Waste is scattered along the road or is caught in traffic congestion. In order to resolve this issue, Intermediate Treatment Facilities (ITFs) are built adjacent to the location where waste is produced. Therefore, the issue of distance and time could be resolved. The regency/municipal government could develop ITFs to make waste management more effective. The development could be funded by the Regional Budget, he said.
INDEPENDENT
The communitys participation in waste management is the most important aspect in integrated waste management. The issue of waste must be addressed starting from the household level in the RT/RW, village level, sub district level until a wider scale. This is known as the independent community based waste management. The essence of this program is the active participation of the local community in sorting and managing waste. There are
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With the presence of ITFs, there will be lesser volume of waste transported to the TPA because the waste management process in the waste disposal site could be conducted in the ITF. Waste disposed to the TPA is waste which could not be managed in the ITF.
as electricity. Electricity produced from waste could power the waste management machine. Waste could also be developed to electrify street lights or peoples houses. This will be developed in the waste management system. People could enjoy many benefits from waste. This system is commonly used in developed countries, he explained. In terms of hazardous waste produced by industries and hospitals, the concerned companies are liable for managing such waste. With the governments limited service capacity, the business sector and private sector could also be engaged as a partner through the Public Private Partnership (PPP) program to realize a good waste management service. The government opens the opportunity for the private sector to participate in waste management. According to data from the Ministry of Environment, the scope of waste management services is less than 20%. The Millennium Development Goals (MDGs) sets a target for waste management services of 80% or 104.6 million people in urban areas, 50% or 57.5 million people in villages and 66% or 162.1 million people nationally. Therefore, the regency/municipal government must work hard in order to achieve that target, especially since 2015 is approaching. As a result, waste management needs the strong commitment of all stakeholders, starting from downstream to upstream. Without strong commitment, the waste issues could not be addressed. Waste is synonymous to a snowball. If we dont immediately handle it with care, the snowball will escalate and burry us, said Syukrul Amien. Of course, we do not want to be buried. (*)
WASTE BANK
Another measure to address waste issues is by creating waste banks which are currently popular in several areas. In Bogor for example, the waste bank has become a model project of the Ministry of Environment. The waste bank is a household based waste management system which provides cash rewards depending on the type of waste. People commonly call waste banks as the scavengers shop. With the existence of waste banks, peoples habit in disposing waste will improve. Waste collection must start from the household level until the wider society. After being sorted, waste must be sent to the waste bank to be managed according to its type. Products produced from recycling could be sold to the public. We will continuously socialize this matter so the society could understand the function of waste banks. If this has been implemented, the volume of waste in Bogor will reduce, explained the Head of Environmental Management and Impact Division of Bogor City Environmental Management Agency (BPLH), Shahlan Rasyidi. The technology aspect relates to waste management. Peoples habit of burning waste will pollute the environment and endanger health, while the open dumping system requires a vast area. Therefore, a well prepared plan in the implementation of environmentally friendly waste management technologies is required.
3R++ CONCEPT
In addition, the 3R (reduce, reuse, recycle) concept must be implemented in waste management. 3R means reducing anything that could produce waste (reduce), reusing usable waste for a similar or another function (reuse) and recycling waste into useful goods or new products (recycle). According Syukrul, the society has been implementing the 3R concept. This concept has developed and nowadays, there is a new innovation called 3R++, which is waste management that provides new benefits for the society. Aside from compost and recycled products, the society could enjoy more benefits such
Organic fertilizer factory and finished granule fertilizer. Source: Bappeda of Bekasi City
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When hearing the word waste, people might imagine something dirty, disgusting and smelly. While in fact, waste can actually bring economic value to the society if processed into useful products.
Ar ticle 3 of Law No. 18/2008 regarding Waste Ma nagement states that waste m anagement is implemented based on the principle of economic value of the society. In the explanatory chapter, economic value means that waste is a resource that has economic value that can be utilized in order to gain added value. Added value is not only meant to slow the exploitation rate of natural resources, such as through the concept of 3R (Reduce, Reuse, Recycle). However, it also aims to utilize waste from the waste management process itself. Every kind and nature of waste contains chemical compounds that are beneficial to humans, either directly or indirectly. But most importantly, it is how we could utilize waste and gain benefits from it. According to its nature, waste can be divided into two types namely, organic and inorganic waste. Organic waste is waste that easily decomposes and is degradable such as food, dry leaves, vegetables, etc. In contrast, inorganic waste is waste that could not rot and is undegradable such as plastic, food packaging, paper, plastic toys, bottles and drink cups, cans, wood, styrofoam, broken glass, rubber, etc. Both kinds of waste co u l d b e p r o ce s s ed i nt o m a r k e ta bl e g o o d s. Organic waste among others could be utilized to produce organic fertilizer, such as compost which is needed by farmers to fertilize crops. Compost produced from waste could be converted into products with economical value which could increase the societys income. The Municipal
Government of Solo, Central Java, for example, established community independence through the production of compost. The community residing in RT 07 RW 15 of Mojosongo Village was given training on how to make compost by a community development officer at the village office. Many women were interested in making compost and finally, a Waste Management Group (KPS) called Mama was formed. It is called Mama because 50 of its members are mothers. Subsequently, the local government provided assistance by donating a compost house and a waste shredding machine to the KPS. Every day, the members of KPS are in charge of collecting household waste or waste from the surrounding environment before it is disposed to Putri Cempo Final Disposal Site (TPA). Afterwards, waste is processed into compost and the finished compost is packed in plastic bags and is ready to be sold. The KPS is equipped with dozens of compressors to increase the compost production volume.
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compost produced by the society to fertilize city gardens. This is surely effective because in addition to enhancing the peoples economy, waste piles will decrease since it is used for compost, suggested Siswono. In developed countries, private companies act as operators in waste management. The private sector is willing to make substantial amount of investment as th e suppor ting system is already go od. Law enforcement against waste management violators is very strict so operators will seriously manage waste because if they are negligent, the sanctions will be heavy. The economic value of waste in developed countries is quite high because there is a good waste management support system.
Example of inorganic products
Armed with diligence and determination, their business continues to grow. From the initial production of only 1 2 quintals of compost a month, it has now increased to 7 quintals. They also do not have to worry that their homemade compost would not be sold because since two years ago, the Municipal Government of Solo has been purchasing all of their compost for fertilizing trees and plants in city gardens. Each group member receives a fair income from revenue gained from the sales of compost. Now the residents income has increased and their welfare has improved. Due to waste, they gain extra revenue to fulfill their family needs. "Waste can create jobs. Unfortunately, only a few people want to produce compost," said a member of Commission IV of the House of Representatives, Siswono Yudo Husodo. A large portion of the total volume of waste could be processed into compost (around 70%) because most of the waste in the society is organic. We must appreciate the step taken by the Municipal Government of Solo in purchasing compost produced by the society. Besides being able to maintain their business operation and enhancing the societys economy, this step has also stimulated the growth and development of community businesses based on environmental protection. "The municipal/regency governments of other areas can perform similar actions, such as purchasing
HANDICRAFTS
Benefits that can be obtained from inorganic waste among others include handicraft products produced from recycling. Nowadays, you can see many household products or accessories produced from recycled waste or plastic waste. These include bags made of plastic packages, buckets made of plastic waste produced by old household equipments, decorative items made of broken glass, key rings made of wood waste disposed by furniture businesses and several other products with economic value produced from inorganic waste. In fact, magazines or newspapers that people read every morning is produced from recycled paper. The spread of handicrafts made of recycled waste could be found in a number of locations. In Ciledug, Tangerang, for instance, there is a handicraft center that makes a variety of beautiful products from used aluminum packages of toothpaste. These include hats, wallets, mats, baskets, until toy robots. Enthusiasts of the handicrafts come from Kalimantan, Bali and Sulawesi. They purchase it for export to Japan, Singapore, Australia, even to the United States. Recycled handicrafts centers could also be found in Mampang Prapatan, South Jakarta where women utilize their free time to make handicrafts from plastic waste. Other handicraft centers are now widespread in various areas and are mostly home industries. There
are tens of thousands of business units and they create jobs for millions of people. The number of processed products produced from inorganic waste is larger and more diverse compared to products produced from organic waste. How much could be produced depends on the craftsmans creativity. Fortunately, craftsmen do not have to worry about difficulty in finding raw materials since inorganic waste is always available. The market opportunity of recycled products is promising. The market is wide open to national, regional and global markets. A number of handicraft products have penetrated modern outlets like Grand Indonesia, Pasaraya and other modern trade centers throughout Indonesia. This condition has encouraged craftsmen to continue creating quality products that can compete in the global market. Deputy IV of the Ministry of Environment for Hazardous and Toxic Materials Waste, and Solid Waste Management, Masnellyarti Hilman, considers that the number of small and medium enterprises that utilize waste as material for recycled products increase from year to year. It is quite pleasing. We continuously encourage the utilization of recycled waste either in an individual scale, communal scale, regional scale or industrial scale in order to achieve the national waste reduction target of 7% per year, she said.
If piles of waste in urban areas amount to about 752.9 tons/day, 9.29 x 10 kilo Joules/hour of heat/thermal energy could be produced. If such thermal energy is converted into electricity, 6 Mega Watts (MW) of electricity could be generated. This means that the benefits of waste can be directly felt by many people. 6 MW of electricity can illuminate a whole municipal/regency. In a small scale, if household waste is processed with the fermentation system, biogas energy could be produced for cooking. "The potential of biogas in Indonesia is very large. If this is utilized, an electricity crisis will not occur because people can independently fulfill their electricity needs from waste, said the Director General of New Energy, Renewable and Energy Conservation of the Ministry of Energy and Mineral Resources (ESDM), Kardaya Warmika. According to the study of ESDM, biogas potential in Indonesia reaches 1 million per unit. If this can be realized, it could save 700,000 tons of gas per year. Energy generated from a PLTSa, is a renewable energy which will never perish. Nationally in 2009, the government launched the Blue (Domestic Biogas) Program which is a cooperation program with the Nertherlands to open the biogas sector in the domestic market. The target is to build 8,000 units of biogas by 2013. "This program will continue to be developed and utilized for electricity," said Kardaya. We should be friendly to waste because many added values could be retreived from waste. (*)
ENERGY SOURCE
Waste does not only provide financial benefits, but it could also produce electricity. Municipal/regency governments are preparing to build Waste to Energy Power Plants (PLTSa).
Landfill with geomembrane HDPE (in accordance with the LFG Flaring System program). Source: Bappeda of Bekasi Municipal
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HEADING TO ZERO WASTE, AND WASTE TO ENERGY

The seminar titled "Handling City Scale Waste Recycling" which was held by the Directorate General of Human Settlements of the Ministry of Public Works at Sahid Hotel, Jakarta, in October 2011 introduced a new technology in waste management in Indonesia. The technology is called dry anaerobic digestion and composting. Denmark has applied this technology and has successfully addressed waste issues.
The dry anaerobic digestion and composting technology is a waste management system which is supported by a Temporary Disposal Site (TPS) or an Intermediate Treatment Facility (ITF). If previously waste was transported from the TPS to the Final Disposal Site (TPA), with this technology, waste is firstly stored at the ITF. At the ITF, waste undergoes the subsequent process where it is processed into compost, biogas, electricity, bricks of organic waste, charcoal briquettes which is a substitute for kerosene, and goods with economic value. Waste that could not be processed further in the ITF is transported to the TPA. In the TPA, waste will be pr oces sed u sing th e s anitar y la ndfil l sy stem . With this mechanism, the volume of waste in the TPA will be significantly reduced because it has been processed at the TPS or ITF. The ITF will cover several TPSes in some areas. The ITF can store at least 1,500 tons of waste, depending on the size of the area. The Director of Environmental Sanitation Development the Directorate General of Human Settlements of the Ministry of Public Works, Syukrul Amien, admitted that he is uncertain of the level of waste volume reduced by the dry anaerobic technology because this technology will still be tested in Indonesia. It might be over 30% because most of the waste in Indonesia is organic waste which easily degrades, he said. From a geographical perspective, TPAs are mostly located in remote areas far from the TPS. The journey for the
An illustration of waste sorting. Source: Sanitation and Gardening Office of Batam Municipal
transportation of waste to the TPA is costly and takes a long time. ITFs can cut the distance between the TPS to the TPA so the distance will be shorter and faster. Transportation costs will also be cheaper since fuel used for the truck armadas will be reduced. In his speech at a seminar, the Director General of Human Settlements, Budi Yuwono, hopes that this technology could be applied by local government either by regents or mayors in the municipal level as an alternative method for waste management. According to him, with this technology, transportation costs for waste will be cheaper because of the volume of waste decreases. In addition, this system will also sustain the sanitary landfill at the TPA. The government through the Directorate General of Human Settlements is ready to provide facilities in the
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form of stimulant or guidance to local leaders. However, regions must already have a plan in the form of a program set forth in the Settlement Sanitation Development Acceleration Program (PPSP) and the City Sanitation Strategy (SSK). "I hope there are concrete steps in each region in the form of a trial. I also urge all stakeholders to increase their awareness, commitment and synergize with one another with regards to sanitation. Our paradigm on waste needs to be changed. Waste is something productive and has economic value. It should not only be disposed," said Budi Yuwono. TPAs still use the sanitary landfill technology since is suits the typicality of peoples waste in Indonesia which mainly consist of organic waste. Leachate produced from waste could be processed to make it non harmful. Unfortunately, only 3% of TPAs apply this technology because many TPAs still use the open dumping technology.
"Given the existing conditions, the government should test the dry anaerobic waste technology in Balikpapan so waste volumes could be reduced," said Tatang Sudirdja. The Municipal Government of Balikpapan has been requesting this since October. With the dry anaerobic treatment system, a reduction rate of 70-80% could be achieved. The type of products which could be used by the society includes biogas, compost, and recycled products. Not only Balikpapan, municipal or regency governments in a number of regions has also expressed their readiness to apply this technology. The Municipal Government of Depok will build an ITF on 10 hectares of land near Cipayung TPA. The Municipal Government will cooperate with the Ministry of Public Works and private sector in the construction which is planned to start in 2012. According to Syukrul Amien, the cost for the construction of this technology is relatively expensive. Vast land and permanent infrastructure are needed. Therefore, a feasibility study must firstly be conducted in order to anticipate the needs for the next 15-25 years. The construction costs will be borne by the local government and is taken from the Regional Budget. "Whether the Municipal Government will finance the entire construction and operation cost or they will just invest while
TRIAL PROGRAM
A lth ough r ecently intro duced, l ocal gover nm ents , cities/regencies are very interested in this technology. The Municipal Government of Balikpapan for example, has requested the government to apply the dry anaerobic digestion technology to handle and manage waste in the region. The Directorate General of Human Settlements Team is ready to visit the location to monitor the preparations. The Municipal Government is very serious in the preparation. They have prepared 3 hectares of land for the operation of the equipments. If they pass the verification, the city will receive technological assistance from the Ministry of Public Works through the Directorate General of Human Settlements. According to the Head of the Sanitation, Gardening, and Cemetery Office (DKPP) of Balikpapan City, Tatang Sudirdja, waste issues must urgently be resolved with advanced technology. The volume of waste in Balikpapan has reached an average of 310 tons per day this year or it has increased by 10 tons compared to the previous year. Waste management through composting, recycling and waste banks could only reduce 30 tons of waste per month.
Bandung Waste to Energy Scheme
Gas Emission Treatment System
Leachate Treatment Bottom Ash Treatment System Fly Ash Treatment System
Water Treatment System
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the operation is handed over to private sector, depends on the concerned municipal government. However, a feasibility study must firstly be conducted," he explained. He admitted that some regions are ready to apply the technology, but there are also other regions that are not ready due to the unavailability of land and budget.
In addition, to accelerate waste management and to reduce the volume of waste in Bantargebang TPA, 3 units of ITF will be built in North Jakarta, namely Cakung Cilincing ITF, Marunda ITF and Sunter ITF. Cakung Cilincing (Cacing) ITF has expanded its area from the original 4.5 hectares to 7.5 hectares. When it starts to operate next year, Cacing ITF will be capable of managing 1,300 tons of waste per day. Waste will be processed into compost, fuel for power plants with a capacity of 4.95 MW or Gas of 445,699 MMBTU. Currently, Cacing ITF has started its initial operating phase and will fully operate in July 2012. Sunter ITF will stand on 3.5 hectares of land and will be able to process 1,200 tons of waste per day with the waste to energy processing technology. Currently, Sunter ITF operates as a waste compaction facility for Sunter Intermediate Transition Station (SPA Sunter). Meanwhile, Marunda ITF is planned to be able to process up to 1,500 tons of waste per day on an area of 12 hectares. Sunter ITF will be tendered for 3 months under the PPP scheme in infrastructure provision. The cooperation scheme is Build Operate Transfer (BOT). The signing of the contract is planned to be held in early Januar y 2012. (*)
BUILD AN ITF
The Local Government of DKI Jakarta seemed to be the most prepared. In the local medium term strategic plan for the period of 2007-2012, it has been determined that waste volumes will be reduced through the 3R Program (Reduce, Reuse, Recycle) by building 3R centers in settlements. Currently, there are 94 3R centers to reduce 35 tons of waste per day. The total volume of waste in Jakarta is 7,000 tons per day. A pilot project of the 3R program is located in social and public facilities in Pantai Indah Kapuk (PIK), North Jakarta. A waste management facility which applies the integrated anaerobic digestion and composting technology which can store 200 tons of waste per day will be constructed in this area. Waste will be processed into compost and electricity. The developer of PIK and Zi Tsu Buddhist Foundation is committed to construct it. In cooperation with the Directorate of Environmental Sanitation Development of the Directorate General of Human Settlements, a 3R center will also be built in the Dormitory of Pesanggrahan Sanitation Office, South Jakarta. "According to the draft local regulation regarding waste management in DKI Jakarta, all area developers are required to build their own waste management facility," said the Head of Sanitation Office of DKI Jakarta, Bharuna Eko.
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Learning from Denpasar Sewerage Development System

In early 1995, Bali was in jeopardy. Japan, one of the nation's largest contributors of tourists, alleged that Bali was stricken by cholera. The number of tourist arrivals from Japan instantly dropped and the tourism sector in Bali suffered.
It was predicted that the allegations of "stomach problems" were deliberately spread by travel agents of tourism destinations outside Indonesia who felt that they were less popular than Bali. The digestion illness was actually found out after the tourists returned to their home countries. There was havoc, especially after one of the television stations in Japan broadcasted the allegations of cholera in Bali on the television screens in the living rooms in Japan. The local government of Bali has even threatened 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 outbreak. However, hotels lost their customers, tour guides lost their revenue and Bali's economy did not grow as well as expected. When observing the national media coverage, drop of tourist arrivals to Bali due to cholera is not a new issue. In 1984, an Australian television station broadcasted the death of a young girl, an Australian citizen who died of cholera. The news broadcast was called "A Hell of Holiday". In the end, this news has caused the plunging of the number of Australian tourists visiting Bali. At that period, or in any period, the reluctance of Australian tourists to visit Indonesia clearly inflicts negative impacts. We know for sure that Australians visit Bali more frequently than people from Jakarta. Another digestion illness struck a group of Taiwanese tourists after they visited Bali in November 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 investigation was held again.
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From several cases, there is an impression that the government is struggling to resolve this issue because there was a huge economic impact in each incident. When the Taiwanese tourists case in 2003 surfaced for example, the number reached 165,415 people or 18.4% of the total tourists visiting Bali. As of November 2003, there were a total of 898,835 tourists.
treatment reaches IDR 13.3 trillion per year. This is similar to the amount of State Budget allocated for sanitation for a five year period. We must seriously develop our sanitation to avoid loss. The Minister of Public Works Djoko Kirmanto also said that in order to achieve the targeted 62.41% of access to sanitation for households in 2015, several infrastructure projects will be built. A substantial amount of budget has been allocated by the government. It reaches 14.2 trillion until the end of 2014. Some of those projects include the addition of centralized wastewater networks in 11-16 cities, the development of wastewater infrastructures and facilities with the on site system in 210 cities, the construction of waste treatment facilities to reduce waste piles by 20%, improve the management of city waste services in 210 prioritized cities and the construction of urban drainages to reduce 4.600 hectares of water in 50 strategic areas. Infrastructure development is the manifestation of the government's strong commitment in the development of sanitation systems. At the UN General Assembly in late July 2010, Indonesia became one of the 122 countries that established sanitation as a basic human right. Indonesia was also included in the 189 countries that support the Millennium Declaration which sets sanitation as a goal in the Millennium Development Goals by 2015.
TERRIBLE SANITATION
Considering that information on the availability of sanitation infrastructures could be easily accessed from all over the world through the Internet, 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 established by building good infrastructures.
It is no secret that Indonesia had at least 120 million cases of diarrheal disease and 50,000 premature deaths every year. With such statistics, tourists would be in caution.
The report titled Economic Impact of Sanitation in Indonesia, which was launched by the Water Sanitation Program East Asia & the Pacific (WSP-EAP) of the World Bank in August 2008, is incredibly scary. Deaths from diseases triggered by lack of sanitation were higher than deaths from road accidents which was more than 30,000 lives per year (2010). The Director General of Human Settlements of the Ministry of Public Works, Budi Yuwono added, "Bappenas reported that the proportion of households with sustainable access to adequate sanitation in 2009 reached 51.19%. We could predict that almost 50% of Indonesia's children grow up in households that do not have access to adequate sanitation," he said. Budi Yuwono added, "This means that the growth of nearly half of Indonesian children is threatened by poor sanitation". It was surprising to know how fragile our young generation is while our children are expected to make this country strong and prosperous. More surprisingly, we have been debating about how toll roads and railways are slowly developed and how electricity infrastructures are unsatisfactory, but have forgotten to build sanitation infrastructures. When citing data from the report titled Economic Impact of Sanitation in Indonesia, the cost for water pollution
DENPASAR SEWERAGE
One of the sanitation infrastructure projects that has been constructed and is feasible to be implemented in other cities is the Denpasar Sewerage Development Project (DSDP) in Bali. The first phase of DSDP was funded by a loan from Japan Bank International Corporation (JBIC) IPA431 amounting to 5400 million yen, the central government with IDR 66.4 billion, 10 hectares of land from the provincial government of Bali (worth Rp 100 billion), the Municipal Government of Denpasar with IDR 15.3 billion, and the Regency Government of Badung with IDR 6.6 billion. In the master plan of DSDP, the centralized wastewater pipeline system will serve an area of 4,040 hectares. The first phase of DSDP has served 1,200 hectares or 30 percent of the main tourism areas inDenpasar. With a processing capacity of 51,000 cubic meters per day, the project was facilitated by 130 kilometers of Wastewater Pipelines.
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The following question may arise: Why are loans and technical assistance provided by the Government of Japan? Because Tokyo Sewerage System is one of the largest centralized wastewater treatments in the world. Tokyo Metropolitan Government also operates 13 wastewater management centers spread across 10 districts where wastewater pipelines release liquid waste from 23 areas in Tokyo city. Tokyo has a long history of modern sewerage system. In 1884, in the Kanda area of Tokyo, a wastewater management system was built. Mikawashima Treatment Plant, which is the first wa ste wa ter tr ea tm e nt ce nte r, wa s b ui lt i n 19 22. A Japanese company called Pacific Consultants International provides consultancy for this project. They have also been working in this sector for 50 years and supervised more than 94,000 projects in 130 countries. In 2004, Wastewater Treatment Plants (IPALs), pump houses, piping networks with complementary buildings, and connection to homes were constructed. With this pipeline system, there is no need to drain the septic tank so there will no longer be any septic tanks leakages so people will be free from diarrhea, dysentery, stomach flu, etc. In detail, DSDPs duty includes wastewater pipelines (2001200 mm diameter) with a total length of 130 km, pump house in Sanur and Kuta and house connections as much as 10,000 units.
In June 2008, President Susilo Bambang Yudhoyono inaugurated the project. However, before the project was inaugurated, the second phase of DSDP which is planned to be completed in 2014, has been announced. The project will be funded by a loan amounting to IDR 595.3 billion from Japan Bank for International Cooperation (JBIC). The agreement was signed on 29th March 2008. Based the study of the Directorate General of Human Settlements, 128 tons of waste is disposed to the sea. With DSDP, it is reduced to 106 tons. Income from the tourism sector in Bali in 2009 was also recorded to increase by IDR 500 billion. How much does it cost to connect to the DSDP network? Hotels and restaurants only need to pay IDR 1.5 million, while households, since they are subsidized, only need to pay IDR 600,000. Each month, each house only needs to pay retribution as much as IDR 5,000. This amount is small compared to the benefits obtained. Denpasar and even Jakarta is definitely no match for Tokyo that has been developing its sewage systems since 100 years ago. Thus, a strong intention to build this system is required given that the benefits are much greater than amount of investments. (*)
Photo: www.slipiconstruction.com
The construction of Denpasar Sewerage Development Project
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PPP PROJECTS - READY FOR OFFER
PUTRI CEMPO IS WAITING FOR THE INVESTOR

Waste is a complex problem for Surakarta. Waste piles at Putri Cempo Final Disposal Site (TPA) has exceeded its capacity. As a solution, the Municipal Government of Surakarta has offered waste management to investors through the Public Private Partnership (PPP) scheme.
With regards to the waste management plan in Putri Cempo TPA, Mojosongo, the Municipal Government of Surakarta held a planning tender to obtain a pre-Feasibility Study (FS). Tender has started since September and is expected to be completed by December 2011. The participant who submitted the best pre-FS will win IDR 50 million. After the pre-FS contest is completed, the winner will make a FS regarding waste management at Putri Cempo TPA. The private sector who participated in the tender includes PT Selaras Daya Utama (Sedayu), PT Srikandi Java Soloi and PT Narita Semarang. Furthermore, the pre-FS document produced from this tender will belong to the government and tender to obtain investments will be processed. "We need the assistance of the National Development Planning Agency (Bappenas) and PT Indonesia Infrastructure Guarantee Fund (PII) to assist with the preparation of the FS which will be made by the consultant or tender winner, said a Team Member of the Working Group for the Cooperation Coordination Team for Regional (TKKSD) Public Private Partnership (PPP), Zubaidi HS in the discussion on the PPP scheme in the waste sector at Acacia Hotel, Jakarta.
The open dumping method is applied in several TPAs because this is the cheapest method. Sanitary landfill should have been applied.
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Zubaidi admitted that it would be difficult if waste were managed by the municipal government. Therefore, it is offered to investors who are interested in managing waste through the PPP scheme. Consequently, the Municipal Government of Surakarta pays waste management fees to the investor or tender winner. His team will calculate those fees carefully with reference to the effectiveness principle and win-win solution. We will firstly calculate how the cooperation system with the investors will be. For instance, if waste is processed into fuel to generate electricity, we will receive a percentage of the profit. Therefore, we need Bappenas assistance to calculate it, Zubaidi continued. In accordance with Presidential Regulation No. 13/2010 regarding the Cooperation between the Government and Business Entities, there are two scenarios in evaluating a pre-FS. These include the solicited and unsolicited system. We apply the solicited system if the Municipal Government initiated the management of Putri Cempo TPA, he said. In this regard, before cooperation is established with the private sector, the Municipal Government must prepare the pre-FS documents.
"The land belongs to the Municipal Government so the private sector does not need to acquire land, said Zubaidi. If new land is needed in the PPP Project, the Municipal Gov er nm ent is re ad y to p rov id e it, " h e ad ded . At the beginning of its operation, Putri Cempo TPA used the sanitary landfill method. However, in its development, due to budget constraints for its operation and lack of soil to cover the waste, the method changed to open dumping. The open dumping method caused the waste piles to overload making it appear like mountains. This condition is worsened by the TPAs inadequate infrastructures and facilities such as inadequate disposal installation/gas ventilation, fly sprays, buffer gardens and drainage. Hence, the TPA is prone to fire in the dry season but is filled with flies in the rainy season. Due to the poor road conditions, garbage trucks could not reach the center of the disposal area. The trucks could only reach the edges and waste is pushed to the disposal area using excavators. This TPA is equipped with two excavator units which often break down due to lack of maintenance. The PPP project for waste management at Putri Cempo TPA is still being prepared. Tender for the project is estimated to take place in 2012. Even though there are a number of phases related to the management which must be undertaken, the Municipal Government of Surakarta is committed to execute the preparation of the management of the TPA in parallel with the technicality of the current management. The Regional Secretary (Sekda) of Surakarta Municipal, Budi Suharto admitted that in order to realize PPP, a number of steps which could delay waste management must be undertaken. Thus, before PPP is established through tender, his administration must still ensure the sustainability of waste management at Putri Cempo. "We create supporting infrastructures by adding garbage trucks or other heavy equipments because waste management must continue until the cooperation is implemented in order to prevent a vacuum state, he affirmed recently. This means that the Municipal Government of Surakarta will still perform their duties in managing waste until Putri Cempo has been implemented by the private sector. (*)
OVERLOADED TPA
The condition of waste management in Surakarta is quite concerning. Putri Cempo TPA, being the only TPA which is located in Mojosongo Village, Jebres Sub District is suffering from overloading from storing waste of its citizens. The volume of waste in Surakarta City reaches 265 tons per day. This consists of household waste (158.5 tons), trade and services waste (38.25 tons), market waste (24.25 tons) and street and park waste (5.5 tons). Putri Cempo TPA was built in 1985. Its location is passed by high voltage power lines. Initially, waste was not a problem because the distance from the waste piles to the power lines are quite far. Nowadays, waste piles have reached a height of 15 meters. It almost touches the lines. If waste is continued to pile up, those power lines will be covered in waste. The TPA stands on 17 hectares of land but only 13 hectares are utilized to store waste, while the remaining 4 hectares are utilized to construct waste management supporting facilities such as a security office, weigh bridge and roads. In addition, the TPA also has a Septage Treatment Plant (IPTL) which is managed by the Local Drinking Water Company (PDAM).
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LEGOK NANGKA READY TO REPLACE SARIMUKTI TPA

The Provincial Government of West Java is ready to construct Legok Nangka Final Disposal Site (TPA) under the Public Private Partnership (PPP) scheme to replace Sarimukti TPA because its land utilization license will expire in 2018.
Waste issues in Bandung City have emerged since the landslide catastrophe occurred in Leuwigajah TPA in February 2005. Due to this incident, waste could not be transported to Leuwigajah TPA. Household waste, market waste or waste from other sources is disposed to Temporary Disposal Sites (TPS). Waste that could not be stored in the TPS is forced to be stacked on road sides or recklessly disposed in rivers or vacant land. This condition makes the environment dirty, produces foul odor especially after rainfall and could become a source of diseases. Sarimukti TPA which is located in Sarimukti Village, Cipatat Sub District, West Bandung Regency has become subject to waste disposal. Waste that should have been disposed to Leuwigajah, must be transferred to Sarimukti. The Provincial Government of West Java who initially determined that the operational license of Sarimukti TPS will expire in 2012, has decided to extend it until 2018. Sarimukti TPA itself is now overloaded with waste disposed by the people. Mounds of waste piles which resemble mountains are a common sight after the landslide catastrophe. Moreover, some residents have objected if the presence of Sarimukti TPA is maintained because waste in Sarimukti TPA is not well managed (open dumping). Hence, it causes pollution and becomes a source of diseases. "After Leuwigajah TPA was closed, the main issue faced by Bandung Municipal in waste management is the increasing piles of waste which has not been transported due to the difficulty of finding a replacement TPA. This will inflict negative effects to the environment and public health, said waste observer, Enri Damanhuri. Leuwigajah TPA has been
Leuwigajah TPA which is no longer used due to the waste landslide.

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operating for over 30 years. It is located between Bandung and Cimahi which is the final site for waste disposal for Bandung Regency, Bandung Municipal and Cimahi Municipal. Currently, the volume of waste piles in Bandung Municipal reaches 1,800 tons per day where 60% derives from household waste. From that total volume, only 65% of waste could be processed. In accordance with Regional Regulation No. 8/2008 regarding the Regional Long-Term Development Plan of Bandung Municipal for the Period of 2005-2025, the Municipal Government of Bandung targets that 90% of waste could be processed where 20% is processed with the 3R (Reduce, Reuse, Recycle) method, 30% is disposed to the TPA with environmentally friendly technology and 40% to is disposed to the landfill. The construction of Legok Nangka TPA is a solution and an effort made by the Provincial Government of West Java in addressing waste issues. According to the plan, Legok Nangka will be ca pable o f m anaging wa ste with environmentally friendly technologies and could provide added value (benefit) from processed and recycled waste. "Legok Nangka TPA will become the disposal site for Bandung Raya, Cimahi Municipal, West Bandung Regency and Sumedang Regency. The project will use the PPP scheme due to the limitations of the Provincial Government in providing technology and infrastructures," explained the Head of the Non Regional Budget Sub Division, Tubagus Nugraha. Legok Nangka is located in Ciherang Village, Nagreg Sub District, Bandung Regency. 68 hectares of land will be used as the waste management area. All of that land has been acquired. The feasibility study has also been completed with the assistance of Japan International Cooperation Agency (JICA). "Although Sarimukti TPA will still operate until 2018, Legok Nangka TPA must soon be realized in consideration of the condition of Bandung Municipal," said the Head of the Regional Development Planning Agency (Bappeda) of West Java, Deny Juanda Puradimaja. In addition, a number of investors have expressed their interest in cooperating with the provincial government. Therefore, tender will be held in the near future. The central government has disbursed a budget of IDR 26 billion for the construction of access roads to Legok Nangka.
In a recent discussion on PPP in the waste sector with Bappenas in Jakarta, it was revealed that in Legok Nangka TPA, PPP will only be applied in the waste management aspect while investments for land acquisition will be borne by the Provincial Government of West Java. Currently, the technology system that will be used and the cost of tipping fees are still being discussed. "The tipping fee proposed in the feasibility study is around USD 18-19. This is extremely expensive compared to the tipping fee in Sarimukti which only costs IDR 33.000/ton. The tipping fee is used for waste management and processing. We will discuss this issue further to achieve an affordable and realistic price," said Tubagus. The draft final report was just recently discussed but the Provincial Government still has objections, especially with the tipping fee, he added. Another issue is related to the technological aspects. The Provincial Government of West Java requested to apply other better alternative technologies. The reason, said Tubagus, the application of technology relates to the cost. The more advanced the technology, the more the cost will be. "The discussion also focused on the management and processing technology. Costs could be budgeted from the Regional Budget or investors through the PPP scheme, he suggested. According to the feasibility study, Legok Nangka TPA will be developed towards the dry anaerobic digestion and composting technology considering the many advantages that could be gained such as compost, electric, recycled products and waste reduction rate of about 5%. The Provincial Government of West Java committed to manage the waste of Bandung Municipal with the waste to energy waste management facility. Of course, a substantial amount of budget is required in order to apply waste to energy. The existing data shows that Legok Nangka TPA could consume more than IDR 1 trillion for the development of its infrastructures and technology. To overcome this, the Provincial Government of West Java held tender for the private sector who are interested to implement this project through PPP. "The tender process is expected to start next year so the construction could soon be realized. Legok Nangka TPA is classified as a priority project," said Tubagus Nugraha. (*)
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PPP PROJECTS - POTENTIAL
THE MUNICIPAL GOVERNMENT OF PADANG INVITES THE PRIVATE SECTOR TO DEVELOP TPAs
The Municipal Government of Padang, West Sumatra, is facing problems in waste management. Budget constraints and minimal facilities caused waste management to be centralized in city centers. The Municipal Government of Padang expects to engage investors for Public Private Partnership (PPP) projects in the waste sector.
Waste seems to pile in Air Dingin Final Disposal (TPA). A similar view could also be found in a number of Temporary Disposal Sites (TPS) in Padang City. Meanwhile, waste could also be found in several vacant lands in the city outskirts because they were not transported to the TPS. Seeing this condition, the Deputy Mayor of Padang, Mahyeldi Ansar, stated that waste has become a serious problem in the region. ''We have to change the mindset. Well managed waste can produce economic value products. For the future, a solution in waste management must be found to avoid waste from piling up in the TPS,'' he said. As a solution, the Municipal Government of Padang plans to construct a waste management facility to process waste into compost and energy source in 2012. This facility will be constructed adjacent to Air Dingin TPA. The Municipal Government themselves have planed the construction of the TPA. This project is a potential project which will soon be implemented to resolve waste issues through the PPP scheme. "It is impossible to use the Local Governments budget because the construction requires a substantial amount of funds. Hence, we are exploring the opportunity to construct it under PPP with investors who are willing to construct it," continued Mahyeldi. Air Dingin TPA is designed to use the sanitary landfill system. However, it will not fully function due to limited supporting equipments such as excavators and bulldozers. Thus, the TPA will operate with the open dumping system which potentially pollutes the environment. Waste management through PPP has already been planned since last year. There was even a plan to process waste into bio energy but that plan has not been realized until now. The Municipal Government of Padang continuously tries to approach the private sector so they would cooperate. If there are any interested third parties, waste is expected to be processed into other products, said Azwin, Head of Padang Investment Office.
A conventional waste sorting machine which sorts organic and inorganic waste.
Furthermore, he claims that his office is ready to provide various facilities to investors who are willing to invest. Those facilities among others include ease in obtaining licenses, preparing a research team for object and incentives in the tax sector as well as reduction of retributions. Moreover, if the investment is able to recruit many labors, taxes and retributions in their investment sector will be reduced by 20% to 100%. The potential of waste from households in Padang Municipal reaches a volume of 800 tons per day. Only a small part is processed into compost with a production of approximately 4.5 tons/month or about 150 kg/day. All of the waste is managed in a TPA located in Air Dingin Village, Koto Tangah Sub District, on an area of 30 hectares. Compost processed from waste is used to fertilize plants in city gardens. Regarding Air Dingin TPA, the Head of the Local Office for Sanitation and Gardening Office of Padang City, Medistar, in a discussion forum with the National Development Planning Agency (Bappenas) which was recently held in Jakarta, affirmed that there are two investor candidates who have submitted their Feasibility Study (FS) for the waste management project under the PPP shceme. Those two investors are PT Universal Indocommerce and PT Bionersis Indonesia. (*)
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PPP PARTNER PROFILE
Directorate of Public Private Partnership Development, Bappenas.
THE FRONTLINE
OF PPP INFRASTRUCTURE PROJECTS
Adequate infrastructure, either in quality or quantity, is an absolute prerequisite for rapid economic growth. Infrastructure development is also needed to achieve equity, reduce poverty and improve the quality of life.
Director for Public Private Partnership Development, Bappenas, Dr. Ir. Bastary Pandji Indra, MSP.
Infrastructure is also an absolute prerequisite for investments entering a region. With the support of adequate infrastructure, a region will easily engage investors. This means that investments could encourage regional economic growth so the peoples livelihoods will improve. Therefore, it is reasonable if the government focuses its attention to the infrastructure sector. The 2011 Government Work Plan (RKP) states that the objective of infrastructure development is directed to support national food security, improve connectivity between regions (domestic connectivity), strengthen virtual domestic interconnectivity, reduce backlogs in housing and basic housing infrastructure provision, improve national energy security, increase the availability of raw water and flood control. To support the Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI) 2011-2014, the government requires a budget of IDR 755 trillion for infrastructures. However, the government faces limitations in meeting the budget needs. The government can only provide IDR 544 trillion of the total budget required. To cover the shortcomings, a new paradigm is needed in infrastructure development policy in Indonesia which concerns the relationship between the government, local government and private sector. This relationship will be formulated in Public Private Partnership (PPP) project scheme, as stated in Presidential Regulation No. 56/2011 and Perpres No. 13/2010 regarding the Amendment of Presidential Regulation No. 67/2005 regarding
the Cooperation between the Government and Business Entities in Infrastructure Provision. This regulation governs PPP for certain infrastructure projects including airports, seaports, railways, roads, clean water supply/irrigation systems, drinking water, wastewater, solid waste, information and communication technologies, electricity and oil and gas. In terms of PPP projects, the Directorate for Public Private Partnership Development (PKPS) holds a very important role. As a unit working under the Deputy for Infrastructure Affairs, the PKPS Directorate is assigned to draft policies, coordinate, synchronize and evaluate PPP programs in the infrastructure sector. This unit is also assigned to prepare a national development plan for PPP development in the short, medium and long term. In performing its duties, the PKPS Directorate has three sub directorates namely Regulation, Institution, and Information Sub Directorate, Tariff and Risk Analysis Sub Directorate and Funding and Investment Cooperation Sub Directorate. Each sub directorate possesses specific duties that support and complement each other. The duties of the Regulation, Institution, and Information Sub Directorate are to conduct policy assessments and prepare the draft national development plan in the institutional, information, and infrastructure regulation sector and conduct monitoring, evaluation, assessment and reporting on its implementation.
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PPP PARTNER PROFILE
The Tariff and Risk Analysis Sub Directorate has a duty to conduct policy assessments and prepare the draft of national development plan on service tariff for infrastructures and risk allocation and conduct monitoring, evaluation, assessment and reporting on its implementation. Meanwhile, the Funding and Investment Cooperation Sub Directorate has a duty to conduct policy assessments and prepare the draft national development plan in the funding and investment cooperation sector and conduct monitoring, evaluation, assessment and reporting on its implementation.
conveyed by the Sanitation and Gardening Office of Padang Municipal. The PKPS Directorate assisted in the evaluation of the FS suggested by Air Dingin TPA in Padang Municipal. Aside from resolving the issue of limited government budget, PPP projects have currently become the star in intensifying infrastructure development in Indonesia. The PKPS Directorate has responded to this matter by educating all stakeholders through discussion forums and seminars. Therefore, the forum regarding PPP education is being intensively held by Bappenas. In October 2011 for example, a discussion forum on PPP projects in the waste sector was held at Acacia Hotel Jakarta and was attended by many municipal governments in Indonesia. The purpose of this discussion is to obtain inputs regarding the challenges and impediments in the implementation of waste projects and its alternative solution; accelerate the preparation and implementation of PPP projects; facilitate the planning of PPP development projects and annual budget allocation in the State Budget and Government Work Plan (RKP). Subsequently in Medan, within the same month, a national seminar titled "Optimizing the PPP Scheme in Infrastructure Development in a Region" was held with a purpose is to encourage PPP development projects in the country. A guideline book was also issued for investors investing in the infrastructure sector. PKPS Director Bastary Pandji Indra on various occasions has always stressed that the government needs to work with the private sector in investing in infrastructure development. Therefore, 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 impacts on various sectors such as reducing unemployment, reducing poverty and increasing income. Infrastructure is an effective way of improving the national economy. "Without investments in the infrastructure sector, do not expect to achieve the targeted Gross Dom estic Pr oduct (GDP ) of US D 13.000 in 2025. The government targets that Indonesia will become a developed country and one of the 12 major powers in world by 2025 through an inclusive and sustainable rapid economic growth. Furthermore, Indonesia is targeted to become one of the 8 major powers in world by 2045. This target could be achieved if investments in the infrastructure sector rapidly grow. Of course, it is the duty of Bappenas along and all elements of the country to develop infrastructures by providing a conducive investment climate 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 managem ent from ups tream to downs trea m (col lecti on, transportation until the processing process at the TPA). Rules or conditions in the waste sector are governed in Law No. 18/2008 regarding Waste Management.
The role of the PKPS Directorate also includes preparing, formulating, coordinating, synchronizing as well as evaluating PPP project plans in the waste sector. In fact, the 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 with the private sector. Other forms of support related to PPP projects are also provided by the directorate. For example was when the Municipal Government of Surakarta needed assistance in the preparation of the Project Pre Feasibility Study (FS) of Putri Cempo TPA. A similar request was
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The government alone is unable to overcome waste issues. The participation of the private sector is needed to manage and process waste through Public Private Partnership (PPP).
In Indonesia, waste management is explicitly governed by Law No. 18/2008 regarding Waste Management. One of the duties of the government and local governments in waste management as referred to in Article 6 is to manage waste and facilitate the provision of waste management infrastructures and facilities. This duty does not only include the management process by providing of garbage truck fleets, waste bins, Temporary Disposal Sites (TPS) and Final Disposal Sites (TPAs), but it also includes the management process starting from waste collection, transportation and processing. Waste from households, markets, offices, commercial areas until a number of other places that become the source of waste is collected and taken to the TPS. Furthermore, waste is transported from the TPS to the TPA for processing. Waste collected at the TPS has undergone the sorting phase (sorting of waste that could be recycled). Thus, the volume of waste in the TPA reduces. Generally, the duty of collecting, transporting and processing waste is carried out by regional/municipal sanitation office officers. Article 24 states that the government and local government must finance the implementation of waste management from the state and local budgets. Budget allocation proposed for waste management (part of the sanitation program) is annually determined in the Draft State and Regional Budget. Waste and population are two interrelated things. Population growth causes the volume of waste to increase. The law of causality applies where population growth is proportional to the piling of waste. Therefore, regency/municipal governments face the problem of waste management. In one hand, the volume of waste continues to swell as the population increases, while on the other hand, the availability of land for TPAs becomes increasingly limited. Moreover, Regional Budget could not provide funds for waste management in its region. Therefore, Article 6 of Law 18/2008 indicates the need for regional/municipal governments to conduct inter-agency coordination, coordination with the public and business sector to synergize waste management. Presidential Regulation (Perpres) No. 56/2011 and Perpres No. 13/2010 which amends Perpres No. 67/2005 emphasizes that Local Governments could establish cooperation with the private sector in the Provision of Waste Facility. Partnership with the private sector is a step that can be taken in order to cover the limitations of the regional/municipal government in providing public service in the waste management sector. Those limitations do not only cover budget constraints, but it also includes manpower, skill, experience, until limitations in waste processing technologies. All PPP activities should start from a pre-feasibility study with a purpose to assess the feasibility of projects which will be
The waste sorting machine in Cakung with a capacity of 800 tons per day.
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executed, either the feasibility of investment, technology or related aspects in the future. The pre-feasibility study could be conducted by the local government or private sector. The results of the pre-feasibility study will further be assessed by a team competent in the related sector. Once completed, the project will be tendered. There are two types of fees that must be prepared in terms of waste management. These include investment costs (land, infr astructure) and m aintenance cos ts (coll ection, transportation and processing). After the feasibility study has been evaluated, it could be determined whether the private sector will implement both projects (investment and maintenance) or a part of the project will be implemented by the local government. This will further be prepared in the analysis of the PPP project that will be implemented. Up to this moment, many waste management projects in Indonesia is conducted with the PPP scheme. For example, the Provincial Government of DKI Jakarta engaged the private sector to manage waste in the Bantargebang TPA. In addition, in the future, waste management is planned to be implemented under the PPP scheme. The PPP scheme will also be applied in waste management projects in a number of cities such as Bandung, Surabaya, Lampung, Padang, Bogor, Depok and other cities. The basic consideration for such cooperation is because the local government does not have budget and adequate funds as funds required for waste management which complies with th e s ta n da r d s a nd r equ i re m e nts a re si gn if ica n t. On the other hand, the interest of the private sector in waste management is quite large as there is investment guarantee and legal certainty. Projects executed under the PPP scheme receive government guarantee through the guarantee scheme between the provincial/regency/municipal government and Indonesia Infrastructure Guarantee Fund (IIGF) as mandated by Presidential Regulation No. 78/2010 regarding Infrastructure Guarantee in PPP Provided through Infrastructure Guarantee Fund. From a business perspective, waste management projects have proven to be a fairly lucrative business opportunity. Despite the large amount of initial capital, such capital will certainly return even profitable although within a relatively long time.
One of the successful waste management PPP project is located in Batam Municipal. Since April 2009, waste management was handled by PT. Surya Sejahtera. Initially, waste management in Batam Municipal was controlled by Batam Authority through the Sanitation Management Agency. In 2000, the implementation of waste management was taken ov e r b y t h e G o v e r n m e nt o f Ba ta m Mu n ic i pa l . The Government of Batam Municipal conducted an assessment on the Perpres No. 56/2011 and Perpres No. 13/2010 which amends Perpres No. 67/2005 that allows the management of upstream to downstream sanitation to be handed over to the private sector. The result of that assessment was waste management could be handed over to the private sector. Economically, the municipal government and the private sector will equally gain profits. Budget allocated for waste management constantly increases by the year while revenue gained from retribution is insufficient. The Municipal Government provided PT Surya Sejahtera with a 25 year time frame to manage waste in Batam. Meanwhile, capital invested by that company reached IDR 500 billion. Now, the benefits of PPP have been felt by the people and Government of Batam Municipal. The environment in Batam becomes clean. In addition, the Municipal Government obtains profit sharing of 5% from retributions collected from customers; regional income of IDR 5,000 from one ton of waste and 5% profit from profits obtained from products produces from processed waste. (*)
Creating the habit of sorting wet and dry waste is a positive step for educating the society in understanding waste issues.
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FIGURE
SODIQ SUHARDIANTO
Waste Management Entrepreneur
Waste, Converting a Problem Into a Source of Funds

Sodiq Suhardianto is a quite familiar figure in the waste sector. The man who was born in Jember, East Java, 53 years ago is well known as an observer of waste issues. His criticism and thoughts about waste management in Indonesia are often published on the pages of national newspapers. He is also popular in the Ministry of Public Works since he is often involved in waste management projects under the Public Private Partnership (PPP) scheme. Under PT Panca Bhakti Utama which is a joint venture company with PT Gikoko Kogyo Indonesia, a Japanese foreign direct investment company, he implements waste management at Cakung Cilincing Final Disposal Site (TPA). Every day, he and his team manage 450 tons of waste collected from East Jakarta, Central Jakarta and North Jakarta. In this PPP scheme, his company only manages waste in the TPA whilst the Local Government of DKI Jakarta transports the waste from households. "Starting from 2012, we aim to manage 1,500 tons of waste per day, in accordance with the installed capacity of waste processing machines in the TPA. This means that approximately 25% of the total volume of waste of Jakarta that reaches 5,400 tons per day can be managed by Cacing TPA," said Sodiq who serves as President Director of PT Panca Bhakti Utama. Sodiq introduces a new waste management system in this TPA. The system is known as Mechanical Biological Treatment (MBT) which is adopted from Denmark. With the dry anaerobic digestion and composting technology in this system, waste is processed into electricity, compost and Refuse Derived Fuel (RDF). In addition, inorganic waste such as plastic will be recycled into reusable useful products. This is an environmentally friendly technology and can reduce waste up to a maximum of 5%.
Waste at Cacing TPA will be processed into electricity with a capacity of 4 MW. The electricity will be sold to PLN. On the other hand, RDF from tires, plastics, papers, and wood will be sent to a cement factory for fuel. "Infrastructures have been prepared and just needs to be developed. Our plan is that by 2012, Cacing TPA will use the MBT system with the dry anaerobic digestion technology, stressed Sodiq who is a graduate of Environmental Geography, Gajah Mada University, Yogyakarta, in 1986 and who became the Chairman of the Indonesian Waste Assessment Center. The cost for the provision of the MBT machine and the development of its infrastructures is estimated to reach USD 30 million. His business is rapidly developing and it has even become one of the key players in the national waste management industry. His success was achieved through hard work and tireless struggle. To apply the MBT technology, he must travel to developed countries in Europe to conduct literature studies and meet waste experts such as Hendrik Mortensen in Denmark. Furthermore, he must bring his knowledge back to Indonesia to educate people on waste management. With the support of modern technology, his company is ready to work on PPP projects in the waste sector. The target next year is working on PPP waste management projects in 20 cities. "Some mayors such as Depok, Bekasi, Cimahi, and Batam have already contacted me and requested to cooperate in waste management," said Sodiq Suhardianto. He has a principle: "Waste, converting a problem into a source of funds". (*)
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FIGURE
ANTONIUS BUDIONO
Director of Program Development, Directorate General of Human Settlements
Grant Funds for Local Sanitation Projects

Antonius Boediono, the Director of Program Development, Directorate of Human Settlements, Ministry of Public Works, has recently been busy visiting regions in order to socialize sanitation. His tight travel schedule is related to the grant funds from the Government of Australia through AusAID for sanitation programs in Indonesia. A region who is interested in the Acceleration of Sanitation Development Program will receive IDR 10 billion. "There are 34 regencies/municipals that are interested in following this program. Therefore, he is busy travelling to regions to monitor projects as well as to socialize sanitation programs, he said. The total amount of grant funds of AUD 40 million could be utilized until fiscal year 2014. Currently, public access to a healthy sanitation is merely 51%, while the annual sanitation budget is IDR 65 trillion. From that budget, the State Budget could only provide IDR 15 trillion. The remaining funds are obtained from the Regional Budget and alternative financing such as loans, grants or from the private sector through the Public Private Partnership (PPP) scheme. "The Program Development Directorate continues to encourage the fulfillment of funding access for sanitation projects in regions, said Antonius who was born in Tuban, East Java. The architect who graduated from ITS Surabaya explained that starting 2013, waste management is prohibited from using open dumping. It must use sanitary landfill or controlled landfill technology. Building a Final Disposal Site (TPA) with the sanitary landfill system is not easy. Aside from needing a minimum of 10 hectares of land, the cost of the technology is also expensive. Thus, the government through the Directorate General of Hum an Settlements is required to participate in addressing the limitations of the regions. "Until 2014, 220 regencies/municipals will be assisted in building sanitary landfill TPAs through grant funds, loans or PPP programs in order to handle the regions budget constraint, explained the father of two children who joined the Ministry of Public Works in 1980. According to Antonius who loves music and reading, regions could obtain grant funds for their sanitation projects, provided that the region has met the requirements. The requirements include having a City Sanitation Strategy (SSK) or planning documents and Mid-Term Investment Development Plan (RPIJM) in the Human Settlements sector which is valid until fiscal year 2014. As another requirement, the area must have a Budget Execution Document (DPA) for clean water and waste projects for fiscal year 2012-2014. "Regions still have low commitment in sanitation programs. This is reflected in their relatively small budget allocated for sanitation, explained the man who possesses a master degree in Construction M a n a g e m e n t f r o m Wa s h i n g t o n University. Besides funding, his directorate is also active in education and socialization, such as socializing the habit of 3R (Reduce, Reuse, Recycle), conducting sanitation seminars until executing yearly activities such as the National Sanitation Jamboree. A Sanitation Ambassador who will be in charge of conveying environmental and health living habits is selected in the jamboree. His directorate hopes that regional sanitation projects could utilize and maintain all sanitation facilities that they have constructed. This aims to realize the Millennium Development Goals (MDGs) where in 2015, 68.87% of Indonesia's population must have access to decent drinking water sources and 62.41% of Indonesias population must have access to adequate basic sanitation facilities. "We dont want it to become a Human Settlement Monument, meaning the project will just be a monument. Such pr ojects received attention in the beginning but in the end, they are unmaintained. I hope that there are no more cases like this, said Antonius Boediono. (*)
26
NEWS AT GLANCE
DISCUSSION ON PPP PROJECT SCHEME IN THE WASTE SECTOR

The Public Private Partnership Development Directorate of the National Development Planning Agency (Bappenas) held another PPP Forum. This time, the forum which was themed Public Private Partnership (PPP) Project Scheme in the Waste Sector was held at Acacia Hotel Jakarta on 27th October 2011.
This discussion forum was attended by various elements, including from regional and national levels, particularly those related to waste management, entrepreneurs engaged in waste management, and the Ministry of Public Works, especially the Human Settlements Directorate. The discussion was also attended by the Director for Public Private Partnership Development, Dr. Ir. Bastary Pandji Indra, MSP. The purpose of this discussion is to obtain inputs regarding the opportunities and impediments in the implementation of waste projects and its alternative solution. Furthermore, it aims to accelerate the preparation and implementation of PPP projects, especially in the waste sector; and facilitate the planning of PPP development projects and annual budget allocation in the State Budget and Government Work Plan (RKP). Bappenas has identified several common issues in PPP in the urban waste sector. Among others is the lack of certain and complete regulations in sanitation and waste management. Furthermore, there is lack of master plan for urban waste management; lack of participation from the private sector and the wider community; and lack of implementation of 3R (reduce, reuse, recycle). Finally, poor managerial skills of the TPA manager in each region. Various coordination forums for the preparation of PPP projects, such as the PPP Forum, discuss various PPP projects. Prioritized PPP projects were identified and selected by the ministries and agencies and are included in the PPP Book. In Bilateral Meetings, ministries and agencies recommend prioritized activities and new initiatives as well as its target and funding needs which aligns with Regulation of the National Development Planning Minister No. 4/2010. Subsequently, the technical meetings of ministries and agencies are held to consolidate and refine program/activity proposals related to PPP projects in each ministries/agencies or in the Work Plan of the ministries/agencies. Afterwards, a Trilateral Meeting is held to thoroughly discuss the PPP project preparation plan, programs and related activities for PPP projects which will be funded in the proposed fiscal year. The next step is to refine the Draft Government Work Plan (RKP) and Strategic Plan of ministries/agencies, especially those related to programs and activities related to PPP projects included in the National Development Planning Discussion (Musrenbangnas). Waste management projects which were discussed in the discussion among others include: 1. Solid Waste Management Improvement, Bandung Municipal. This project is implemented by the Municipal Government of Bandung and is included in the Ready for Offer category. 2. Solid Waste Final Disposal and Treatment Facility - Putri Cempo, Surakarta. This project is implemented by the Municipal Government of Surakarta and is included in the Ready for Offer category. 3. Solid Waste Final Disposal and Treatment Facility Greater Bandung Area, which was proposed by the Provincial Government of West Java and is included in the Priority category. 4. Solid Waste Final Disposal and Treatment Facility Bogor and Depok Area, which was also proposed by the Provincial Government of West Java and is included in the Priority category. 5. Padang Solid Waste, which was proposed by the Municipal Government of Padang under the potential category. 6. Cimahi Waste Water Management, which was proposed by the Municipal Government of Cimahi and is included in the potential category. 7. Solid Waste Project for Urban Climate Change; dan Solid Waster Project for CDM Program. These projects were proposed by the Ministry of Public Works and are included in the Potential category. However, since there have been no developments within the last two years, there is a possibility that these projects will be review. (*)
27
*illustration

Public Private Partnership in The Waste Sector. Sustaining Partnership. Media For Information On Public Private Partnership. November 2011

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November 2011 Edition

MEDIA FOR INFORMATION ON PUBLIC PRIVATE PARTNERSHIP

Heading to Zero Waste, and Waste to Energy

INDEPENDENT WASTE MANAGEMENT

PPP in the Waste Sector

Please enjoy reading the magazine.

SUSTAINING PARTNERSHIP - November 2011 Edition

INDEPENDENT WASTE MANAGEMENT

MAKING FRIENDS WITH WASTE

HEADING TO ZERO WASTE, AND WASTE TO ENERGY

LEARNING FROM DENPASAR SEWERAGE DEVELOPMENT SYSTEM

PPP PROJECTS - READY FOR OFFER

PPP PROJECTS - PRIORITY

Legok Nangka Ready to Replace Sarimukti TPA

PPP PROJECTS - POTENTIAL

PPP PARTNER PROFILE

PPP PROGRAM EDUCATION

> Sodiq Suhardianto > Antonius Budiono

Discussion on PPP Project Scheme in the Waste Sector

November 2011 Edition - SUSTAINING PARTNERSHIP

INDEPENDENT WASTE MANAGEMENT

SUSTAINING PARTNERSHIP - November 2011 Edition

November 2011 Edition - SUSTAINING PARTNERSHIP

SUSTAINING PARTNERSHIP - November 2011 Edition

November 2011 Edition - SUSTAINING PARTNERSHIP

Example of inorganic products

SUSTAINING PARTNERSHIP - November 2011 Edition

November 2011 Edition - SUSTAINING PARTNERSHIP

HEADING TO ZERO WASTE, AND WASTE TO ENERGY

SUSTAINING PARTNERSHIP - November 2011 Edition

Bandung Waste to Energy Scheme

Gas Emission Treatment System

Water Treatment System

November 2011 Edition - SUSTAINING PARTNERSHIP

SUSTAINING PARTNERSHIP - November 2011 Edition

Learning from Denpasar Sewerage Development System

November 2011 Edition - SUSTAINING PARTNERSHIP

SUSTAINING PARTNERSHIP - November 2011 Edition

The construction of Denpasar Sewerage Development Project

November 2011 Edition - SUSTAINING PARTNERSHIP

PPP PROJECTS - READY FOR OFFER

PUTRI CEMPO IS WAITING FOR THE INVESTOR

SUSTAINING PARTNERSHIP - November 2011 Edition

November 2011 Edition - SUSTAINING PARTNERSHIP

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LEGOK NANGKA READY TO REPLACE SARIMUKTI TPA

Leuwigajah TPA which is no longer used due to the waste landslide.

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November 2011 Edition - SUSTAINING PARTNERSHIP

PPP PROJECTS - POTENTIAL

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Directorate of Public Private Partnership Development, Bappenas.

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PPP PARTNER PROFILE

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PPP PROGRAM EDUCATION

November 2011 Edition - SUSTAINING PARTNERSHIP

PPP PROGRAM EDUCATION

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Waste, Converting a Problem Into a Source of Funds

Grant Funds for Local Sanitation Projects

SUSTAINING PARTNERSHIP - November 2011 Edition