Study on waste-to-energy project in Malang

STUDY ON PRIVATE-INITIATIVE INFRASTRUCTURE PROJECTS
IN DEVELOPMNG COUNTRTIES IN FY2011
STUDY ON THE INTEGRATED WASTE TO ENERGY

PROJECT IN GREATER MALANG, THE REPUBLIC OF
INDONESIA
FINAL REPORT
February 2012
Prepared for:
The Ministry of Economy, Trade and Industry
Prepared by:
Hitachi Zosen Corporation
EX Research Institute Ltd.
Smart Energy Co., Ltd
Reproduction Prohibited
Preface
This report is the outcome of the study jointly conducted by Hitachi Zosen Corporation, EX
Research Institute ltd and Smart Energy Co., Ltd on through the economic partnership projects in
developing countries in FY 2011 commissioned by Ministry of Economy, Trade and Industry,
Government of Japan.
The study on the integrated waste to energy project in Greater Malang, the Republic of Indonesia is
to study the feasibility and economic viability for the integrated waste to energy system, with
expected total construction budget 9.77billion Japanese Yen to tackle the issue related with
Municipal Solid Waste (MSW) in Malang City and its neighbouring cities in East Java area. It is to
tackle the significantly difficult problem where there are concerns for possible harmful impact to the
environment and potential difficulties for building new landfill site for the increasing MSW.
Research team sincerely wishes this study provides beneficial inputs and recommendations in order
for the abovementioned project to be promoted in future.
February, 2012
EX Research Institute Ltd
Smart Energy Co., Ltd
Map
(Source: Indonesia: United Nations Development Programme Indonesia 1

East Java Province: Eastjavacoop.com 2
Grater Malang: Prefeasibility Study: Malang Regency June 19, 2011)
1
2
http://www.undp.or.id/general/about_maps.asp
http://www.eastjavacoop.com/index.php?option=com_content&view=article&id=96&Itemid=75&lang=en
Abbreviations
Abbreviations
Definition
Reduce Reuse Recycle
AMDAL
Environment Impact Assessment
ASEAN
Association of South East Asian Nations
BDF
Bali Democracy Forum
BPPT
Agency for. Assessment and Application of Technology
CDM
Clean Development Mechanism
COP
Conference of Parties
DCKTR
Dinas Cipta Karya dan Tata Ruang
DINAS
Cleansing Bureau
DJEBTK
Direktur Jenderal Energi Baru Terbarukan dan Konservasi

Energi
EIA
Environment impact assessment
FIT
Feed in Tariff
FS
Feasibility Studies
GDP
Gross domestic products
GHG
Green House Gas
GTZ
Deutche Gesellschaft fur Technische Zusammenarbeit GmbH
IDR
Indonesian Rupiah
IEDC
Indonesia Economic Development Corridor
IMF
International Monetary Fund
IPP
Independent Power Producer
JBIC
Japan Bank for International Cooperation
JETRO
Japan External Trade Organization
JICA
Japan International Cooperation Agency
KESDM
Kementerian Energi dan Sumber Daya Mineral
KKPPI
National Committee for the Acceleration of Infrastructure

Provision
KLH
Ministry of the Environment
KPU
Kementerian Pekerjaan Umum
LUCF
Land Use Change and Forestry
MOU
Memorandum of Understanding
MPA
Metropolitan Priority Area
MSW
Municipal solid waste
ODA
Development Assistance
O&M
Operation and Maintenance
PII
PT Penjaminan Infrastrukur Indonesia
PLN
Perusahaan Listrik Negara
PPP
Public private partnership
PT PLN
Persero
PU
Departmen Pekerjaan Umum
TPA
Final Disposal Site
RDF
Refuse Derived Fuel
SMI
PT Sarana Multi Infrastruktur
TPS
Temporary Disposal Site
TPST
Integrated Waste Management Facilities
UKL/UPL
Environmental Management and Monitoring Plan
UNDP
United Nations Development Programme
UPTD
Unit Pelaksana Teknis Daerah
YT
Yellow Trooper
Table of Contents
Executive Summary ............................................................................................................................... i
1. Background and Necessity of the Project ................................................................................... iii
2. Basic Policy Concerning Decision of the Project Contents ........................................................ iii
3. Outline of the Project ....................................................................................................................x
4. Implementation Schedule......................................................................................................... xvii
5. Feasibility of Implementation .................................................................................................. xvii
6. Superiority of Japanese Corporations in Terms of Technology, etc. ..........................................xix
7. Concrete Schedule up to Realization and Impediments to Realization.......................................xx
8. Map of the Project Implementation Site in Indonesia .............................................................. xxii
Chapter 1
Overview of the Host Country and Sectors................................................................1-1
1.1 The Republic of Indonesia Country Overview ....................................................................... 1-3

1.1.1 General Information ......................................................................................................... 1-3
1.1.2 Economy and Finance ...................................................................................................... 1-7
1.2 Overview of Target Sector .................................................................................................... 1-10
1.2.1 Current Situation of Waste Generation and Disposal ..................................................... 1-10
1.2.2 Laws and Regulations regarding Waste Disposal .......................................................... 1-15
1.2.3 Plans and Guidelines for Waste Disposal Management ................................................. 1-17
1.2.4 Supply-demand Situation of Energy .............................................................................. 1-20
1.2.5 Laws and Regulations (and Policy) regarding Climate Change and Renewable Energy1-21
1.2.6 Laws, Regulations (and Governmental Policy) on Drainage and Exhaust Gases .......... 1-26
1.2.7 Summary on Waste Management Laws and Regulations .............................................. 1-33
1.3 Overview of Target Area ....................................................................................................... 1-34
1.3.1 East Java ........................................................................................................................ 1-34
1.3.2 Study Area: Greater Malang (Malang City, Malang Regency, Batu City) ..................... 1-35
Chapter 2
Study Methodology ....................................................................................................2-1
2.1 Study Contents ........................................................................................................................ 2-3

2.1.1 Background and Objectives ............................................................................................. 2-3
2.1.2 Outline of the Study ......................................................................................................... 2-3
2.2 Study Method and Setup ......................................................................................................... 2-6
2.2.1 Study Method ................................................................................................................... 2-6

2.2.2 Study Setup ...................................................................................................................... 2-6
2.3 Study Schedule...................................................................................................................... 2-12
Chapter 3
Justification, Objectives and Technical Feasibility of the Project............................3-17
3.1 Background and Necessity ...................................................................................................... 3-3

3.1.1 Background of the Project................................................................................................ 3-3
3.1.2 Study of Waste Disposal Method ..................................................................................... 3-4
3.2 Various Assessment of Necessary for Decision of Project Contents....................................... 3-5
3.2.1 Waste Stream in Malang .................................................................................................. 3-5
3.2.2 Assessment of Waste Targeted by this project................................................................ 3-15
3.2.3 Technical Considerations ............................................................................................... 3-39
3.3 Project Plan Overview .......................................................................................................... 3-42
3.3.1 Waste Incineration and Power Generation Facility ........................................................ 3-42
3.3.2 Facility Layout Plan ....................................................................................................... 3-50
Chapter 4
Evaluation of Environmental and Social Impacts ......................................................4-1
4.1 Analysis of Current Environmental and Social Situation ....................................................... 4-3

4.1.1 Analysis of Surrounding Water Environment of Supit Urang .......................................... 4-3
4.1.2 GHG Generation Status ................................................................................................. 4-14
4.1.3 Waste Pickers Activities and Their Living Condition .................................................... 4-19
4.2 Environmental Improvement Effect as the Result of the Implementation of the Project...... 4-25
4.2.1 Effective Use of Waste and Surrounding Aquatic Environment .................................... 4-25
4.2.2 GHG Emission Reduction Effect ................................................................................... 4-25
4.3 Impact of the Implementation of the Project on the Environmental Social Aspect .............. 4-35
4.4 Outline of Laws Related to Consideration of the Partner Country's Environmental Social
Aspect ......................................................................................................................................... 4-45
4.4.1 Legal System and Procedures Related to Environmental Assessment ........................... 4-45
4.4.2 Target Project ................................................................................................................. 4-47
4.4.3 Procedures Related to the Implementation and Approval of EIA .................................. 4-53
4.5 Activities Required to be Carried out by the Indonesia Authorities (Implementing Body and
Other Related Organisations) ...................................................................................................... 4-55
Chapter 5
Financial and Economic Feasibility ...........................................................................5-1
5.1 Calculation of project costs ..................................................................................................... 5-4
5.1.1 Basic Preconditions for the Project .................................................................................. 5-4

5.1.2 Estimation of Construction Costs .................................................................................... 5-5
5.1.3 Estimation of Operation and Maintenance Costs ............................................................. 5-8
5.1.4 Summary of Operating Costs and Total Project Costs ................................................... 5-12
5.2 Outline Results of Preliminary Financial and Economic Analysis ....................................... 5-14
5.2.1 Assessment based on Financial Internal Rate of Return (FIRR) .................................... 5-14
5.2.2 Sensitivity Analysis ........................................................................................................ 5-15
5.2.3 Assessment based on Economic Internal Rate of Return (EIRR) .................................. 5-17
Chapter 6
Project Implementation Schedule ..............................................................................6-1
Chapter 7
Implementation Capacity of the Implementing Agencies in Indonesia .....................7-1
7.1 Implementation Capacity of the Implementing Agencies in Indonesia .................................. 7-3

7.1.1 Implementing Agencies in City and Regency Governments............................................ 7-3
7.1.2 Implementing Agencies in the Provincial Government ................................................. 7-12
7.1.3 Related Agencies in the Central Government ................................................................ 7-14
7.2 Proposal from the City of Osaka to the Implementing Agencies on the Indonesian Side..... 7-21
7.2.1 Conditions in the City of Osaka ..................................................................................... 7-21
7.2.2 Current Conditions and Issues of Waste Treatment in Greater Malang ......................... 7-40
7.2.3 Proposals Geared to Improvement in Malang ................................................................ 7-54
Chapter 8
Technical Superiority, etc. of Japanese Enterprises ...................................................8-1
8.1 Projected Mode of Participation by Japanese Enterprises (Funding, Equipment and Materials
Supply, Facilities Management, etc.) ............................................................................................ 8-3
8.1.1 Mode of Participation ...................................................................................................... 8-3
8.1.2 Project Profitability .......................................................................................................... 8-3
8.2 Superiority (Technical and Economic) of Japanese Enterprises in Project Implementation ... 8-4
8.2.1 Technical Superiority ....................................................................................................... 8-4
8.3 Necessary Measures for Facilitating Orders with Japanese Enterprises ................................. 8-9
8.3.1 Cost Reduction through Localized Production and Procurement .................................... 8-9
8.3.2 Advertisement of the Superiority of Japanese Technology .............................................. 8-9
8.3.3 Development of Operation Management Engineers ........................................................ 8-9
Chapter 9
Prospects for Project Fundraising ..............................................................................9-1
9.1 Examination of Fund Sources and Fundraising Plan .............................................................. 9-3

9.1.1 Fundraising for Initial Investment.................................................................................... 9-3
9.2 Fundraising Feasibility............................................................................................................ 9-4

9.2.1 Utilization of Government Infrastructure Funds .............................................................. 9-4
9.2.2 Utilization of Japanese Financial Assistance ................................................................... 9-5
9.2.3 Appropriate Bearing of Risk with the Public Sector ........................................................ 9-6
9.3 Cash Flow Analysis................................................................................................................. 9-8
Chapter 10
Action Plan and Issues in Project Actualization.......................................................10-1
10.1 Status of Initiatives Geared to Project Actualization .......................................................... 10-3

10.2 Initiatives by Indonesian Government Offices and Implementing Agencies Geared to Project
Actualization ............................................................................................................................... 10-3
10.2.1 Ministry of Environment.............................................................................................. 10-3
10.2.2 Ministry of Public Works ............................................................................................. 10-4
10.3 Legal and Financial Constraints, etc. in Indonesia ............................................................. 10-4
10.4 Need for Additional Detailed Analysis ............................................................................... 10-5
Executive Summary
ii
1. Background and Necessity of the Project

In Indonesia, according to the Waste Management Law (Act Number 18 Year 2008 regarding Waste
Management) that was enacted in 2008, the current disposal method of open dumping will be banned
by 2013, when it will become necessary to adopt new methods of treating wastes. Sanitary disposal
site treatment, which entails managing leachate and covering landfilled waste with earth, is the least
costly method and enables adverse impacts on the local environment (water system pollution, odor
and harmful pests) to be partially mitigated, however, it does not represent a fundamental solution.
Moreover, strong opposition by local residents and so on makes it difficult to find new sites for
landfill disposal sites. In areas where there is no spare land available, the long distance haulage of
wastes becomes necessary, and authorities are looking into the construction of wide area disposal
sites under provincial government initiative. In these circumstances, some municipalities regard
incineration plus waste to energy as an ultimate solution that doesnt depend on final disposal sites.
Moreover, within the flow of waste treatment in Indonesia, the project here targets activities that are
currently managed by basic local government units on the municipality and regency levels. In other
words, assuming that treatment of wastes not including hazardous materials entails a) temporary
collection by local communities, b) extraction of valuable resources by the non-public sector at
temporary collection stations, c) collection and final disposal by local governments, and d)
extraction of valuable resources on disposal sites under the recognition of public sector authorities,
the target scope of the project covers c) and d).
2. Basic Policy Concerning Decision of the Project Contents

Waste treatment methods tend to evolve in the following order in line with economic development: I:
open dumping II: sanitary landfill III: composting + sanitary landfill IV: incineration and
waste to energy or mechanical separation + composting/methane fermentation + incineration and
waste to energy. Indonesia currently stands at stage I but is now approaching the threshold with the
next stage.
In terms of the ratio of discharged waste that disposed in
landfill, this is 100% in the cases of I:
open dumping and II: sanitary landfill, around 50-60% in the case of III: composting + sanitary
landfill, and around 10-15% in the case of IV: incineration and waste to energy or mechanical
separation + composting/methane fermentation + incineration and waste to energy.
iii
In stage IV, the decision of whether to adopt incineration and waste to energy or the combination of
mechanical separation + composting/methane fermentation + incineration and waste to energy
depends on the level of separation in the discharge stage, the amount of compost that can be used in
the local area and the spare capacity of final disposal site. If only biological treatment is adopted, in
the case where waste is not totally separated, residue will arise, while in cases where landfill disposal
cannot be adopted, the waste has to be treated by incineration.
Indonesia is currently in the process of shifting from stage I, and considering that treatment costs
increase as the stages advance, it is appropriate for it to move to II or III. However, in view of the
difficulty of securing final disposal sites, the current conditions of power shortages and growing
awareness of the need to reduce greenhouse gases, there is ample scope to consider shifting to stage
IV, which entails the smallest final disposal quantities, generates the most energy and is most
effective in terms of reducing greenhouse gases, etc. In particular, in urban areas of population
concentration and tourist sites where it is important to promote a clean image, this is already a viable
option, and it will also become a possible option in medium-size cities in future assuming that
current economic growth is maintained.
In view of the above points, the stage IV treatment method is examined in the project, however,
decision about whether or not to incorporate biological treatment is made according to the
composition and water content of waste. If waste contains a high ratio of organic matter and has a
high water content, biological treatment + incineration and waste to energy is assumed, however, if
the water content is no higher than 50%, the following examination is conducted assuming an
incineration and waste to energy system only. As a result, since the water content of household waste
is no more than 50% even in the rainy season, while the water content of market waste is always
more than 60%, it has been decided to conduct treatment in separate lines. In other words, it has
been decided to adopt direct incineration treatment for household waste, whereas composting
followed by separation with combustible items being incinerated and noncombustible items being
landfilled is adopted for market waste.
iv
(1) Current Flow of Wastes (Waste Stream)

Figure 1 shows the current waste stream.
Figure 1 Flow of Municipal Solid Waste in Malang City
Generation
Collection
Households
Extraction of
valuable
materials
Final Disposal
TPS
TPA
Markets/Shops
Composting
Facilities
(Source: Created by the research team )
(2) Results of Waste Qualitative Analysis

In the dry season, raw waste accounts for the largest proportion, approximately 50%, of both
household and market waste, and this is followed by plastics which account for 17%.
Concerning household waste especially, combustible waste accounts for 90%. .
The ratio of metals is low, indicating that it is recovered in the collection stage.
Figure 2 Results of Survey of the Composition of Dry Season Waste in Malang City (dry weight
composition)
Waste from Household (dried weight basis(%))
Metals, 0.6
Textile, 2.4
Leaves, 5.3
Waste from Market (dried weight basis(%))

Di aper , 0.5
Stones, 2.6 Diaper, 2.3

Others, 0.2
M et al s, 0.4 St ones, 17.3
Ot her s, 0.0
Text i l e, 2.1
Paper, 14.7
L eaves, 4.2
Paper , 9.8
Food waste,
55.2
Plastics, 16.9
Food wast e,
49.1
Pl ast i cs, 16.6
Moisture:60.7
Moisture:55.4
(Source: Created by the research team)
In the rainy season, the ratio of raw waste is lower than in the dry season, however, combustible
waste accounts for more than 70% of household waste when paper waste is included. In terms of
water content, this is 59.4% in household waste and 67.1% in market waste.
In conclusion, household waste will be used in incineration and waste to energy generation without
conducting prior separation or biological treatment, while the treatment flow for market waste will
be separation + composting + separation.
(3) Target Waste Volume in the Project

1) Target Areas
The project target area shall be the area within roughly a 30 km radius of the project site, upon
taking collection and haulage efficiency into consideration. The target districts in that case are as
follows.
1
Malang City: Entire area
Malang Regency: Jurisdiction of 4 cleansing offices

(I. UPTD SINGOSARI
II. UPTD TUMPANG
IV. UPTD BULULAWANG
V. UPTD KEPANJEN)
Batu City: Entire area
vi
Figure 3
Four Malang Regency Cleansing Offices around Malang City
(Source: Created by the Research team based on the map provided by Malang City)
2) Volume of Waste Targeted by the Plan

The planned volume of waste for 2020 as the target year is estimated below with the following
fluctuation factors taken into account:
-
Population fluctuation
Increase of waste generation due to improvement of economic activities and living standard
Collection rate (ratio of the collected waste volume to tgenerated waste volume that requires
proper processing)
Based on the results of hearings with each municipality and the survey of incoming amount of waste
to the TPA final disposal site, Table 1 shows the current collection rate, and Table 2 shows the setting
for 2020.
According to these findings, the amount of waste treated in incineration and energy to waste
facilities is 685 t/d, however, considering the operating rate of facilities, facilities with treatment
capacity of 800 t/d (400 t/d x 2 incinerators) are planned. Moreover, concerning the shortfall during
the initial stage of operation, excavated waste will be combusted together with the incoming waste.
vii
Concerning market waste, assuming that 65 t/d will be generated in 2020, following the
implementation of sorting (removal of unsuitable objects), composting and further sorting, it is
estimated that 13 t/d of compost, 25 t/d of combustible residue, 16 t/d of incombustibles and 12 t/d
of volume reduction and recovered resources will be generated.
Table 1 Current Collection Rate in Target Project Districts
Government
Malang City
UPTD
SINGOSARI
Malang
UPTD
Regency
TUMPANG
Supid
UPTD
Urang
BULULAWANG
30km
UPTD
radius
KEPANJEN
Sub-total
Batu City
Grand total
Waste
TPA
source Volume Volume
waste
Increase
of waste of waste Collecti
unit
haulage Population factor
(kg/pers generate recycled on rate
*1
volume
d (t/d)
on per
(t/d)
(/d)
day)
=a
a
b
c
d
e2
g
g/e
338
816,637
0.25
0.45
459
60
86.7%
13.8
343,344
0.00
0.44
151
9.1%
9.4
373,571
0.00
0.44
164
5.7%
7.4
347,065
0.00
0.44
153
4.8%
11.9
510,582
0.00
0.44
225
5.3%
42.5
61
441.5
1,574,562
211,929
3361053
0.00
0.25
0.45
693
119
1,271
6.1%
51.3%
34.7%
1: Factor that takes into account the impact of students and tourists other than the registered
population
2: eb x (1+) d 1000
viii
Table 2 Target Waste Volume (2020)
Government
Populatio
Increase
factor
Waste
Recycling
source
rate Not Collection
unit
WtE
kg/perso
(recycling
, WtE
n per day
a
Malang City
UPTD
SINGOSARI
UPTD
Malang
Regency
TUMPANG
UPTD
BULULAWANG
UPTD
KEPANJEN
Sub-total
Batu City *2
Grand total
915,082
0.25
0.45
15%
95.0%
405,348
0.00
0.44
5%
35.0%
422,900
0.00
0.44
5%
35.0%
374,474
0.00
0.44
5%
35.0%
566,350
0.00
0.44
5%
35.0%
1,769072
0.00
0.44
5%
35.0%
234,101
0.25
0.45
5%
65.0%
2,918255
WtE
processing
volume
(t/d)
e1
412
234
79
725
1: ea x (1+b) x c x (df) 1,000

2: Population increase rate and waste source unit are assumed to be equivalent to those in
Malang City.
3) Technical Methods
The methods that are generally adopted for incinerating waste in Japan are incineration and
gasification melting. Here, the incineration method is adopted. The gasification melting method is
not adopted because the targeted waste in the project has lower heating value than the waste in Japan
and requires support combustion, the issue of how to utilize slag is a problem, and operation control
of the system is complicated and so on. Among incineration methods, since the stoker incinerator,
which has the most extensive record of use with municipal waste and doesnt require any special
technology in operation, is deemed to be the most appropriate, this method is assumed in the
examination here.
ix
3. Outline of the Project

(1)Conceptual Design
The project facilities comprise two incinerators with treatment capacity of 400 t/d each, and it is
assumed that each one is operated for at least 8,000 hours per year. The incoming waste undergoes
sanitary treatment and volume reduction, while the waste heat that is generated in the waste
incineration is collected in the boilers so that power can be generated in steam turbines. The
generated electricity will be used inside the plant, while excess energy will be sold to the power
company via the local power grid. At this time, combustion control that entails little fluctuation in
the steam flow will be conducted in order to enable the generated steam energy to be utilized
effectively.
Concerning the treatment of waste gas, Indonesia adopts general incinerator controls (Baku Mutu
Emisi Udara untuk Incinerator (BAPEDAL/09/1996) as well as dioxin standards on a par with the
international standard, and it uses a system comprising slaked lime, active carbon spray and bag
filter.
Incidentally, the project plant is planned for construction on a site adjoining Supit Urang Final
Disposal Site in Malang City, on hilly land with hardly any residents in the nearby area. Accordingly,
the layout of the facilities is designed with greater emphasis on business profitability rather than
landscape. Moreover, as the plant is located next to a disposal site, there is no need to take special
measures to counter odor.
(2) Business Form

As project models for developing a private sector initiative infrastructure project, the DBO scheme
(design-build-operation
scheme)
and
PPP
scheme
(build-own-operation
scheme
or
build-operate-transfer) are examined. In the Study, financial and economic assessment is carried out
assuming the PPP scheme as a realistic scheme.
Figure 4
Conceptual Diagram of Project Scheme
(3) Project Cost

A private sector enterprise or special purpose company (SPC), acting as the project enterprise, will
conclude a project agreement with the public side. Based on the agreement, it is proposed that the
public sector side carries in waste and that the private sector side is consigned to construct, operate
and maintain the waste treatment facilities. It is expected that total construction budget is 9.77 billion
Japanese Yen (125.34 million USD).
Concerning revenue for the SPC, it is expected to receive tipping fees (T/F) from the public sector
side and payment for generating energy from waste heat and supplying it to the power company
during the operating stage. The main items of expenditure are the personnel expenses, utility costs
and maintenance costs entailed in operating the treatment facilities and the cost of raising funds for
the initial investment, and these are used in calculating the necessary income and expenditure
balance in the project plan.
1) Estimation of Construction Costs

The following table shows the results of estimating construction costs based on estimates and
hearings from Japanese-owned general construction firms and engineering companies and makers in
Indonesia.
xi
Table 3 Estimation of Construction Cost

Indonesian
Item
Foreign Portion
Civil and building works cost
1,800
1,800
Plant works cost
300
800
1,100
Equipment purchase cost
2,840
660
3,500
Design and supervision cost
2,440
60
2,500
General administration cost
540
330
870
Total
6,120
3,650
9,770
Portion
Cost
(Source: Hitachi Zosen Corporation)
2) Estimation of Operation and Maintenance Costs

The operating cost (OPEX) is estimated as follows. Incidentally, revenue from power sales is given
as a negative cost here.
Table 4 Summary of Operating Costs

Item
Amount (million yen/year)
Amount (million IDR/year)
Operation and maintenance cost
46
5,395
Utilities cost
100
11,744
Maintenance cost
100
11,730
Other operating costs
48
5,630
Total
294
34,499
The following table shows the total project cost including a construction cost an operating cost for
15 years.
xii
Table 5 Summary of Project Budget
(million yen)
Total Project Cost
Operation and Mentenance(O&M) Cost
Depreciation charge
(15 years)
Operating profit and loss
Non-operating income
Non-operating expense
Payment interest6%
Non-operating profit and loss
Profit of the term
before-tax
Corporate tax
Profit of the termpost-tax
Tax rate25%
Sum total of operationg period

14,956
4,410
10,546
6,209
0
0
3,543
-3,543
2,666
666
1,999
Source: Hitachi Zosen Corporation
Concerning the revenue, it is estimated to receive waste treatment revenue as a tipping fees (T/F)
from the public sector side and revenue from the sale of power to the power company as follows.
Table 6 Summary of Operation CostsRevenue

Item
768
90,086
643.5
75,487
1,411.5
165,573
Tipping Fee Revenue

Power revenue
Total
(4) Results of Preliminary Financial and Economic Analysis

Concerning the preconditions used in financial and economic analysis, the abovementioned
construction costs, operation and maintenance costs are used, while the preconditions for other
financial and economic analysis are as follows.
xiii
Table 7 Preconditions for Financial and Economic Analysis

Item
Preconditions
Remarks
Annual treatment volume
256,000 t/y
Project period
Operating period of 15 years
20 years was also examined
Depreciation
Equal-installment depreciation
16-20 years for each
adopted over the operating
equipment unit
period
Tax
Corporation tax 25%
Loan
15 years is assumed
Interest
Policy rate 6%
Price fluctuation
Inflation is not taken into
Loss carried forward, 5 years
As of November 2011
account.
Equity capital
Initial investment x 30%

The mean expenditure and revenue balance over the project period will be as indicated below.
Table 8 Mean Expenditure and Revenue Balance
Expenditure
million yen
million yen
TF (Upper: Unit price,

Lower: t/y)
Construction cost
10,546
15
(Upper:construction cost,
Lower: period)
Revenue
703
Personnel expenses
Utilities cost
Maintenance and repair costs
Measuring costs
Others
46
100
100
34
14
EBIT (pre-tax before paying

interest)
Total
414
1,411
0.0030
256,000
Power sales
1,050 IDR/kwh
(Exchange rate)
1 yen:117.3 IDR
1 dollar: 77.95 yen
Total
768
643
1,411
Upon calculating the financial internal rate of return (FIRR) assuming waste treatment cost of 3,000
yen/t (351,900 IDR/t), the project IRR works out as 6.4%, which is higher than the policy rate of
xiv
inflation of 6%. Therefore, the project is deemed to be financially feasible.
The following items are taken into account when calculating the economic internal rate of return
(EIRR) for the project.
-
Waste volume reduction effect on existing final disposal sites: 8,925 million IDR/y (76
million yen/y)
Effect in terms of limiting emissions of greenhouse gases (95,424 t/y): 6,814 million IDR/y
(58 million yen/y)
Concerning the economic internal rate of return (EIRR), a figure of 8.4% is obtained, indicating that
this waste to energy project can be significant in economic terms too.
Moreover, the results of calculating the net present value (NPV) and cost benefit (B/C) assuming a
discount rate of 6% are as indicated below.
Table 9 List of Results from Financial and Economic Assessment

FIRR (financial internal rate of return)
6.4%
EIRR (economic internal rate of return)
8.0%
NPV (net present value)
1,439 million yen
B/C (cost benefit analysis)
1.14
As a result of the financial and economic analysis, the project is deemed to be feasible in terms of
the actual project profitability and the economic effect on society.
(5) Examination from Environmental and Social Aspects

1) Analysis of Water Environment around the Disposal Site
Water environment survey around the Malang City final disposal site (Supit Urang) and forecasting
of the effects of incinerator introduction were carried out
xv
Figure 5
Sampling Points
Table 10 Measurement Items and Methods
Active Site
L3
R1
R2
L4
LEACHATE
RESERVOIR
L5
L2
W1
L1
W2
R3
R6
ADMINISTRSATI
ON BUILDING
P1
P2
R4
R5
Items
Methods
pH
pH meter
EC
EC meter
ORP
ORP meter
DO
DO meter
COD
DR2000DPM-MT
TOC
TOC-V
TN
TOC-V
Annmoniac Nitroge Indophenol
Alkali Metal
AAS
Heavy Metals
AAS
R7
It was found that TOC and TN concentrations in rivers are influenced by leachate from the
landfill site. Since raw waste is carried into the landfill site without undergoing pretreatment,
the organic substances contained in the waste flows into rivers together with rainfall and the
water content of the waste. There is a possibility that the purifying action of the river causes the
concentrations of these organic substances to drop in the downstream area, however, when
non-degradable organic substances accumulate, there is concern that they will combine with
chlorine that is added to downstream river water for drinking to produce trihalomethane, which
has carcinogenic properties.
Degradation of organic materials consumes oxygen in water and leads to generation of odor,
discoloration and deterioration of the living environment for aquatic life. Since mitigating the
effects of leachate from the disposal site will contribute to the maintenance of human health and
the downstream ecosystem, it is necessary to take urgent countermeasures.
2) Impacts on the Informal Sector

Investigation was conducted on the impact of waste to energy facilities on the informal sector.
Since pickers remove waste in the upstream area, construction of the incineration plant will
have hardly any impact on them.
On the disposal site, it is desirable if the pickers become no longer necessary.
It is recognized that incineration plants are absolutely needed, especially in areas where there is
no spare room available.
xvi
4. Implementation Schedule
Table 11 Implementation schedule
5. Feasibility of Implementation
Assuming the project preconditions in the financial and economic analysis to be the base case, cash
flow analysis is carried out. Moreover, sensitivity analysis is carried out assuming parameters that
have a major impact on the project and parameters that include uncertainties.
xvii
Figure 6
Sensitivity Analysis Method

Revised condition1
Base case preconditions
- Operating period: 20 years
Procurement interest rate: 6%
Operating period: 15 years
Tipping fee: 3,000 yen/t
Internal rate of
return constant
What is
tipping fee?
Revised condition 3
- Procurement interest rate:
8%
Revised condition 4
- Revenue from power sales:
Fluctuation
Tipping fee constant

What is rate of return?
Revised condition 2
- Operating period: 20 year
(Source: Created by the Research Team )
Assuming the operating period and procurement interest rate to be changeable parameters, the
interlinked waste treatment fee and internal rate of return are confirmed. Revised conditions 1-4 are
indicated in order below.
Table 12 Results of Sensitivity Analysis Based on Revised Conditions

Revised
Results of Sensitivity Analysis
Remarks
Condition
1
Tipping fee 3,000 yen/t2,400 yen/t
The tipping fee tends to fall due to

lengthening of the period (1520 years).
FIRR 6.4%
8.5%
The equity capital IRR is improved due to
Equity capital IRR 5.8% 9.0%
lengthening of the period (1520 years).
(1) Case where the equity capital IRR is at
In the case where the procurement interest
the base case level:
rate is higher than expected, it is necessary
Tipping fee 3,000 yen/t 3,300 yen/t
to raise the tipping fee.
(2) Case where the equity capital IRR is the

required level of 9.0%:
4
Case where revenue from electric power declines due to decline in the waste quality
(heating value) or sale price of electricity:
Since the tipping fee and revenue from sale of power are almost the same, in the case
xviii
where the revenue from sale of power falls by 10%, the overall revenue is sustained
through revising the tipping fee upwards by roughly 10%.
In the base case, the equity capital IRR is 5.8%, which is around the same as the policy interest rate
in Indonesia, indicating the need to improve profitability from the viewpoint of investors. Judging
from the results of sensitivity analysis and the remarks, it is important to enhance the project
feasibility and discuss the conditions for project participation through extending the project period,
increasing treatment costs or procuring low-interest funds and so on.
Estimation is also carried out on the greenhouse gases reduction effect. Through incorporating sales
revenue from trading of carbon dioxide emission rights into the project, the project profitability can
be improved through adding a third source of revenue to waste treatment fees and power sale
revenue. The estimated revenue from such trading is estimated to be approximately 10% of the
revenue from power sales.
6. Superiority of Japanese Corporations in Terms of Technology,

etc.
(1) Superiority of Incineration Technology
Incineration treatment of waste in Japan began in 1963, when the first five-year plan for construction
of living environment facilities, adopting a policy of basically incinerating municipal waste and
landfilling the residue, was compiled. Incineration led to the sanitary stabilization and volume
reduction of waste.
In subsequent years, new environmental issues such as dioxins occurred, however, these have been
cleared through incorporating full environmental maintenance functions into incineration facilities.
Currently, incineration accounts for roughly 80% of waste treatment in Japan; moreover, Japan has
the highest number of incinerators and the most advanced incineration technology in the world.
Thanks to Japans long experience of waste incineration and the know-how acquired from that, it is
possible to construct incineration plants in urban areas and adjoining residential land without any
problems.
(2) Superiority and Record of Treatment Systems

Concerning Japanese incineration facility treatment systems, in terms of treatment capacity, the
xix
stoker system (fire grate system) accounts for 77%. The merits of stoker incineration furnaces are
that combustion is gentle and stable. Also, it is possible to construct large-scale facilities, and
maintenance and operation control are easy. As this is the most widespread and mature technology in
Japan, the stoker system will be adopted in the project too.
7. Concrete Schedule up to Realization and Impediments to

Realization
The schedule is indicated in section 4. The risks are described below, however, they key to feasibility
lies in appropriate balancing these with the public sector side.
(1) Risks Concerning Surrounding Infrastructure Development and Consent of Residents

Risks concerning delays to the start of works, extension of the project period and hindrance of the
project facilities and equipment can be mitigated if the public sector side takes the initiative in
securing and leasing land and securing consent from local residents for the facilities. Also, it is
hoped that the public sector side can start the construction of surrounding infrastructure before the
start of work on the project facilities. Project risks can be averted if the public sector side cooperates
in implementing the environmental assessment and procedures for acquiring permission from
supervisory government agencies prior to the start of works.
(2) Risk of Fluctuations in Waste Volume, Waste Composition and Prices

In order to secure project revenue, it is necessary for a certain amount of waste to be constantly
carried in throughout the project period. Project feasibility is dependent on either carrying in a
certain amount of waste or having the public sector side guarantee the revenue from waste treatment.
Even in the event where the incoming amount of waste declines, it is necessary to have in place a
payment mechanism that ensures that fixed costs are covered.
Concerning the price of power supplied to the power company, so long as power is supplied, it is
important to adopt a contract that guarantees long-term purchase and the unit price of purchase, as in
the feed-in-tariff system and so on.
Moreover, unlike power generating activity that utilizes fossil fuels, the waste to energy activity
entails risk in that the generated amount of power is influenced by the properties of waste (heating
value of waste), which corresponds to fuel. Project continuity can be enhanced through incorporating
a mechanism for compensating any decrease in generated energy through tipping fees, thereby
providing insurance against fluctuations in not only the quantity of waste but also properties of
waste.
xx
(3) Technical Risks

In the waste to energy utility, project stability and certainty can be enhanced and technical risks can
be mitigated in long-term projects through constructing facilities with proven performance and
conducting daily and periodic maintenance. Concerning operation planning and setting of the annual
number of operating days too, it is desirable for corporations with a proven record to be involved, for
the company that conducted design and construction to conduct repairs of core equipment, and to
implement the planned repair and renewal of equipment based on the track record. In this project too,
technical risks can be greatly reduced through utilizing the technically superior technologies
proposed by the Japanese company.
(4) Risk of Force Majeure and Revisions to Law

Concerning force majeure and revisions to environmental law and other general legislation,
considering the public nature and extended period of the project, it is essential for any risks to be
transferred to the public sector side, even if the project is implemented as a PPP scheme.
xxi
8. Map of the Project Implementation Site in Indonesia

Figure 7
Map of the Project Implementation Site in Indonesia
(Source: Indonesia: United Nations Development Programme Indonesia

East Java Province: Eastjavacoop.com
xxii
Chapter 1
Overview of the Host Country and Sectors
1-1
1-2
1.1 The Republic of Indonesia Country Overview

1.1.1 General Information
The Republic of Indonesia with a land area of about five times as the size of Japan (approximately
1.89 million km2) has 33 provinces with the total population of 238 million (9.59 million people live
in Jakarta, the capital city of Indonesia) as in 2010. It is a long archipelago stretching 5,000 km from
the north to the south and comprising approximately 17,000 islands. The majority of the people are
Malays, but there are 27 broad ethnic groups such as the Javanese and the Sundanese. 88.6% of the
population is Muslim, followed by Christianity and Hindu.
Figure 1-1
Map of Indonesia The red bordered square is the location of the study are, Java.
(Source: United Nations Development Programme Indonesia (UNDP) 1 )
The population of Indonesia is increasing, and it was the 4th largest population in the world with the
population of 232 million after China, India and the United States of America (Japan is on the 10 the
place) as in 2010.
UNDP http://www.undp.or.id/general/about_maps.asp
1-3
Figure 1-2
Demographic Changes in Indonesia
(Source: World Bank, World Development Indicators 2011)
Figure 1-3
The Top 10 Most Populous Countries
(Source: World Bank, World Development Indicators 2011)
Indonesia adopts a presidential system. President Susilo Bambang Yudhoyono was re-elected by
gaining about 60% of the votes in the presidential election in July 2009, and he has been serving a
second round since October 20th, 2009. The second administration focuses on A) improvement of
public welfare, B) establishment of democracy and C) practice of social justice as a core of the
1-4
5-year plan, and specifically they identify competitive economic development, natural resource
utilization, and capital resources improvement as the top priorities.
The government policy toward the top priorities is reflected in the countrys diplomatic policy. They
pursue an omni-directional foreign policy with maintaining coordination with ASEAN, and in recent
years, the government have been addressing regional/global issues in a cross-sectoral manner. To
promote democracy in the Asia-Pacific region, they have hosted the Bali Democracy Forum for four
times since 2008, and they were also the holder of the ASEAN presidency in 2011 2.
In terms of the relationship with Japan, Japan is the biggest aid donor to Indonesia, and Indonesia
receives the largest proportion of ODA from Japan on a cumulative basis. According to Country
Assistance Program for the Republic of Indonesia, developed in November 2004, the Japanese
government prioritize the following areas for assistance (the three pillars).
Table 1-1
1. sustainable growth
List of Priority Areas for Assistance to Indonesia
To ensure fiscal sustainability, establish economic infrastructure to
driven by the private
improve the investment environment, revitalize the subsidiary industry
sector
and SMEs, create economic systems and reform the financial sector
2. creation of a
Poverty reduction (by creating employment opportunities through
democratic and fair
development in agricultural and fishing communities, improving incomes
society
and welfare, and improving public services in education and health and
medicine, etc.
3. peace and stability
Aceh, Maluka and Papua, ensure law and order
(Source: Ministry of Foreign Affairs, Country Assistance Program for the Republic of Indonesia , November 2004)
In recent times, a trend of using public private partnerships for infrastructure development is seen in
Indonesia. The first infrastructure summit was held in January 2005 where the Indonesian
government listed 91 projects involving roads, sewer etc as possible infrastructure projects to be
developed using Public Private Partnership (PPP). At the same time, the presidential directive no 67
on Cooperation between the government and the private sector on infrastructure developmentcame
into force which provides the general direction. Preceding to this, the Indonesian government in
2
The Ministry of Foreign Affairs Republic of the Indonesia

http://www.mofa.go.jp/mofaj/area/indonesia/data.html
1-5
the Presidential directive no 42, has formed the KKPPI (Infrastructure Development Promotion
Policy Commission) headed by the minister responsible for economic affairs.
The KKPPI, in regards to the investment proposals received from various implementing bodies,
prioritizes them by considering multiple sectors covered by the various ministries. It focuses on the
selected projects for which the government can provide a guarantee and can also serve the function
of determining the detailed content and the investment schedule. However, the degree of
responsibility of the government in the development of the PPP business and the nature of the
guarantee to be provided is not clear. Hence, in reality, only a few highway projects have been
started with the involvement of the private sector.
The Indonesian government convened the second Infrastructure conference in November 2006,
whereby 10 priority projects from various sectors were selected and related PPP businesses were
also considered. The prioritized projects include 2 highway development projects, 2 electricity
generation projects, 1 telecommunication project and 3 water supply and sewer projects.
The Japanese government established Metropolitan Priority Area (MPA) as an initiative for
infrastructure development in the capital city of Indonesia. MPA clarifies to facilitate to response the
following tasks involved in maintaining the essential infrastructure for industrial development such
as airports, railways, and seaports 3
Clarification of quality standards for infrastructure
Development of an implementation schedule and a financial arrangement scheme
Development of a comprehensive master plan as guidelines for metropolitan development

including frameworks for participation of the private sector.
MPA is to promote infrastructure development in the Jakarta region, which Japanese businesses
have high interests and needs in, and both of the governments have agreed to develop a master
plan with the assistance of JICA along with establishing a committee, composed of related
ministries.
The targeted areas are seaports, industrial parks, public transportation, roads, airports, waste
disposal facilities, flood management, electricity and it is aimed to build infrastructure between
2020 and 2030 in Jakarta Metropolitan Area (Jakarta, Bogor, Depok, Tangerang, Bekasi).
3
JETRO Jakarta Centre Current Situation of Infrastructure Building in Indonesia (2011)

http://www.jetro.go.jp/jfile/report/07000564/Indonesia_infra.pdf
1-6
Moreover, Japan and Indonesia agreed on cooperation on implementing the Indonesia Economic
Development Corridor (IEDC) project in January 2010. IEDC is aiming comprehensive
development of industry and infrastructure and incorporating what the Japanese infrastructure
users and suppliers are interested in from an early stage. The goal is to establish a win-win
relationship between Japan and Indonesia by attracting investment to Indonesia in more efficient
way.
As it is illustrated in Figure 1-4 below, in IEDC, Indonesia is divided into 6 corridors (1.East
Sumatra and Northwest Java, 2.North Java, 3.Kalimantan, 4.West Sulawesi, 5East Java, Bali and
East Nusa Tenggara, and 6.Papua). IEDC identifies the major industrial areas which should be
developed in the future and ensures to improve infrastructure essential to industrial development.
Figure 1-4
6 Corridors and the Major Industrial Areas of IEDC
(Source: JETC Monthly Report Economic Development and Infrastructure Export in Indonesia)
1.1.2 Economy and Finance

Indonesias main industries are mining (petroleum, LNG, coal, aluminium, tin), and agriculture (rice,
Natural rubber, palm oil), and industry (timber products, cement, fertilizer).
The GDP in Indonesia is 706.7 billion dollars, and it is the largest GDP among the ASEAN countries
followed by Thailand (318.9 billion dollars) and Malaysia (238 billion dollars). The GDP per capita
is 3,015 dollars 4.
4
JETRO The comparison of economic power among ASEAN (2010)
1-7
Figure 1-5 Changes in Indonesias Economic Growth Rate (in percentage)

7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
(Source: Ministry of the Foreign Affairs Indonesia: Basic Economic Indicators(November, 2011))
After the Asian Financial Crisis in July 1997, The Indonesian government and International
Monetary Fund (IMF) came to an agreement to reform its economic structure. After 2005,
Indonesias economic growth rates were around 5.5%-6.5% due to personal consumption and
exports. Although the world economic crisis led by the bankruptcy of Lehman Brothers had a
negative influence on the Indonesian economy, the country still had a relatively high growth rate of
4.5% because of the government stabilization policy, economic stimulus policy and robust domestic
consumption. It is maintained an adequate economic rate throughout the year 2010, and it results in
the annual growth rate of 6.1%.
http://www.jetro.go.jp/world/asia/asean/data/asean_stat06_1009.pdf
1-8
Figure 1-6
Changes in General Government Net Lending/Borrowing
* The figures after 2011 are forecast values

(Source: IMF, World Economic Outlook Database)
In regard to the financial situation in Indonesia, currently general government net lending/borrowing
as a percentage of GDP is on a downward trend.
Table 1-2 Financial Index of Indonesia (2010)

Item
Unit
General government revenue

General government total
1,000,291.44 National currency (Billions)

15.85
expenditure
17.3
-91,547.50
General government net

lending/borrowing
-1.451
General government gross debt
Percent of GDP
Percent of GDP
National currency (Billions)
Percent of GDP

26.714
Current account balance
6.404
Percent of GDP
U.S. dollars (Billions)
(Source: IMF, World Economic Outlook Database)
1-9
1.2 Overview of Target Sector

1.2.1 Current Situation of Waste Generation and Disposal
Here the situation of waste generation and the treatment, which is the focused area of this study will
be summarized. As the targeted region, all over Indonesia as well we East Java and Malang City
where project site is located along with the neighboring Malang Regency and Batu City. Here the
summary will be covered and the detail will be covered in Chapter 3.
(1) Indonesia (the entire nation)

The amount of the waste generated in Indonesia is increasing due to the increase in domestic
population and purchasing power. According to the report from Kementerian Lingkungan Hidup
(KLH: Ministry of the Environment), between 2005 and 2008, municipal waste in Indonesia
increased by 3.7%. The data of 2008 from KLH indicates the 65% of the waste is organic wastes 5.
Figure 1-7 Component of Waste in Indonesia
(Source: KLH, State of Environment Report 2009 (based on the data from 2008))
In Indonesia, the waste is mostly disposed to landfills. 69% of the waste generated in 2008 was
disposed to landfills, 7% was recycled, 5% was incinerated, 10% was buried and the rest of 6% was
dumped in parks, canals, rivers, ports, markets etc (Sourcee: Kementerian Lingkungan Hidup
(Ministry of the Environment), State of Environment Report 2009). Comparing with the data from
2011, there is a decrease in volume of incinerates waste and an increase in volume of waste disposal
to landfills.
5
Kementerian Lingkungan Hidup (Ministry of the Environment), State of Environment Report 2009
1-10
Figure 1-8 Method of waste Treatment and Disposal in Indonesia
(Source: KLH: State of Environment Report 2009)
(2) East Java

East Java is divided into 9 cities and 29 regencies, creating 8,000 t/d of garbage. Up until now this
waste has been processed within the cities and regencies, but the processing facilities are now at
breaking point and acquisition of more land to use is ongoing. The aim is to acquire more than 50ha,
up to 100ha more land.
East Java has plans to construct 8 garbage processing facilities between 2010 and 2020, with the
plans currently going ahead being the Greater Surabaya (Surabaya, Sidoarjo, Gresik : approx. 4,000
t/d) and Greater Malang facilities. The pre-feasibility study (pre-FS) for the Greater Surabaya
processing facility has already been completed, with it being planned as an integrated waste disposal
facility and the prospect of methane gas collection also being looked into.
There are plans to perform an FS in regard to waste management in Greater Malang, too, with the
focus placed on achieving waste to electricity (W to E).
In order to finance the construction of these facilities, detailed bid materials are currently being
prepared in order to obtain a loan from the Asian Development Bank. The loan will not be
guaranteed by the city of Surabaya, but rather by two organizations created under the Ministry of
Finance for the improvement of infrastructure; the PT Penjaminan Infrastruktur Indonesia (PII) and
PT Sarana Multi Infrastruktur (SMI). The SMI performs everything from the FS through to the
bidding, with the PII becoming involved once the bid is accepted. Adopting this format promotes
1-11
investment from overseas. In regard to tipping fees, if the municipal body does not pay them to the
operator then the PII will. There is also the potential being indicated to increase the tipping fee by 12
dollars if the waste is completely disposed of.
(3) Malang City

A summary of the production and processing of waste in the city of Malang is as follows.
Citizens have a responsibility to take their garbage themselves to a mid-way processing site, and the
government is responsible for transporting it from the relay bases (garbage collection points) to the
final processing site. In the city there are 73 garbage relay bases, of which 12 operate composting
facilities, as well as 2 of the final processing sites also operating composting facilities.
Garbage is not divided into organic and inorganic waste, but a pilot scheme for the division of waste
is intended to be implemented, and the move toward division and composting are gaining
momentum.
The final processing sites in Malang receive 400 t/d of garbage. The final processing sites are
opening dumping, with around 300 waste pickers living there.
Current processing sites cover 15.5ha, the capacity of which will become insufficient in three years
time, and Malang is intending to expand to 50ha. They have requested support from the East Java
Government and Central Government for these plans.
Under the East Java Government talks have been held with Malang Regency, the city of Malang and
the city of Batu, with a memorandum of understanding (MOU) intended to be concluded in regard to
waste processing in Greater Malang.
Around 40 - 50 t/d from the Malang Regency are dumped in city of Malang final processing sites,
but no tipping fee is currently paid 6.
The urban waste produced in the city of Malang can be classified as shown below. 64.9% is taken up
by organic waste, followed by 15.7% being plastics.
Based on the interview result compiled in the Energy saving solution working group Indonesia SWG Indonesia
Mission Report, Japanese Business Alliance for Smart Energy Worldwide(JASE-W), March, 2011
1-12
Figure 1-9 Municipal Solid Waste Composition of Malang City

Hazardous Waste
Rubber
0.7% Bones 0.1%
Residues
Inert
0.2%
Textile
7.2%
1.2%
3.0%
Metals
0.2%
Glass
0.6%
Plastics
15.7%
Organic
64.9%
Paper
6.2%
(Source: Estimated by the Research Team based on the Malang City data)
Even it is sorted by different sources of wastes, the results are in composition.
Figure 1-10
Waste Composition in Different Waste Sources
Household Waste
Rubber
0.8%
Textile
3.5%
Metals
0.2%
Commercial Waste
Hazardous Waste
Bones 0.1%
Inert Residues
0.2%
1.2%
7.6%
Metals
0.3%
Glass
0.6%
Glass
0.7%
Rubber Hazardous Waste

Residues
0.9% Bones 0.1%
8.3%
Textile 0.6% Inert
2.1%
2.5%
Plastics
13.8%
Plastics
17.5%
Organic
61.5%
Organic
65.3%
Paper
5.6%
Paper
6.9%
Market Waste
Textile Rubber Hazardous Waste
0.3% 0.1% Bones 0%
Metals
Glass
0% Inert
0.2% 0.1%
Residues
0.9%
3.6%
Plastics
Paper
5.2%
1.5%
Industrial Waste
Rubber Bones Hazardous Waste
0.1%
0.5% 0.3%
Residues
Inert
Textile
8.2%
1.2%
Metals 1.9%
0.2% Glass
0.4%
Plastics
14.7%
Organic
88.1%
Paper
5.8%
1-13
Organic
66.9%
(4) Malang Regency

The amount of waste generated from Malang Regency has been increasing for the last 3 years, and
especially there is an increase in the proportion of organic wastes.
Table 1-3
Changes in the Volume of Waste produced in Malang Regency

2008-2010(m3/d)
Component
2008
2009
2010
Organic
1,726.08
1,946.16
1,982.1
Paper
177.28
199.89
203.58
Plastic
398.89
449.75
458.06
Wood
88.64
99.94
101.79
Metal
53.19
59.97
61.07
Glass
44.32
49.97
50.9
Rubber
26.59
29.98
30.54
Cloth
8.86
9.9
10.18
Other
88.64
99.94
101.79
Total
2,612.49
2,945.5
3,000.01
Source:Prefeasibility Study, Analysis of Solid Waste Management Greater Malang Malang Regency (11/6/19
Figure 1-11
Waste Composition in Malang Regency

Others
11.8%
Plastics
15.3%
Organic
66.1%
Paper
6.8%
1-14
1.2.2 Laws and Regulations regarding Waste Disposal

(1) Laws and Regulations regarding Municipal Solid Waste Management (The Act Regarding Waste
Management)
In Indonesia, municipal governments are in charge of household waste disposal under the
jurisdiction of Ministry of Public Works. The Act Regarding Waste Management No.18, 2008 was
the first waste law enacted by KLH, and the main contents are as described below.
What is significant is that every person involved in household waste has to make an effort to
minimize waste as part of the 3R promotion. In order to enforce waste management, the law
prohibits inappropriate disposal, open dumping and inappropriate incineration, and it states that all
the open dumping sites will be closed by 2013.
Table 1-4
Main Chapters and Contents of The Act Regarding Waste Management
Chapters
Contents
Definition of waste
3 Categories
(Chapter 1, Article 2)
1. Household waste
2. Household like waste (commercial, industrial waste etc.)
3. Specific waste (hazardous waste, toxic waste, remains of buildings etc
Implementation
waste management
Minimization of waste generation by 3R (reduce, reuse and recycle waste)

Set a fixed-term waste reduction target
(Chapter
Enable to apply green/environmentally friendly technologies
6,
of
waste
property Article19)
Enable to implement environmentally friendly labelling

Enable to reuse and recycle
Enable to purchase recycled products in the market
Improvement
waste
of
disposal
treatment
(Chapter 6, Article
22)
Authorized waste management facilities are required to meet the following

Sort waste by type, amount and property
Either collect waste from a source and transport it to transference areas
or transport waste from an integrated waste disposal area to the final
disposal sites.
To be able to reuse, retreat or to return to the natural environment, with

the full knowledge of the amount, mechanism and property of waste,
finish the final disposal with residual materials which will be return to
the environment
Transition measures
(Chapter16,
44-46
Article
Within one year after the enactment of this law, establish the site closure
plan for the open dumping sites among the final disposal sites (TPA)
managed by each municipal government, and the open dumping sites
will be closed within five years (by 2013)
(Source: JETRO Public awareness and environmentally-related policies in Indonesia January 2011)
1-15
There are two broad categories in Indonesia such as household waste and toxic hazardous waste
(Limbah Bahan Berbahaya dan Beracun) called B3 waste.
Municipal governments (cities and regencies) conduct the waste disposal operations under the
jurisdiction of Department of Public Works. Furthermore, the private sector manage hazardous waste
disposal under KLH. The table below is the role of the government administrations at the city, region,
province, and country level in household waste management.
Table 1-5 Roles and responsibilities in the area of Waste Management

Area
Section
Nation
Waste
Institutio
1.Formulating polities and
1.Formulating
strategies
establishing
State
relating
waste
management facilities
1.Formulating
polities
and strategies relating
and
relating
establishing
polities
establishing
waste
management
strategies
waste
facilities
management facilities in
in the state based on
the municipalities based
national policies and
on national and state
strategies
2.Establishing state
level waste
management
coordinating agency
policies and strategies

2.Establishing
municipality level waste
management
coordinating agency
3. Setting national waste

management role model,
standards, procedure,
criteria and minimum
requirement
3. Setting state waste

management role
model, standards,
procedure, criteria and
minimum requirement
based on national ones
3. Setting municipality
waste management role
model, standards,
procedure, criteria and
minimum requirement
based on national and
state ones
4. Issuing state wide waste

management relevant
licence and permits
4. Issuing waste
management relevant
licence and permits in
case transboundary over
municipalities
4. Issuing municipality
waste management
relevant licence and
permits
1. Arbitrating disputes in
case of cross states
1. Arbitrating disputes
in case of cross
municipalities
2 Establishing cooperative
relationship
among
cooperative relationship
cooperative relationship
municipalities,
private
among
among
2.Establishing if necessary
waste management
executing agency
Guidanc
e
Municipality
Establishing
municipalities,
Establishing
municipalities,
companies
and
private companies and
private companies and
communities
for
communities
communities
1-16
for
for
promoting
capacity
development
and
executing
waste
management
promoting
capacity
development
and
executing
waste
promoting
capacity
development for waste

management
management(including
several municipalities)
3.Providing
assistance
waste
for
technical
3.Providing
building
assistance for building
assistance for building
waste
waste
management
facilities in cross states
facilities
technical
management
in
cross
municipalities
3.Providing
technical
management
facilities in district and

communities
(Source: Indonesian 3R Policies and Implementation Environmental Research 2009 No.154)
(2) Laws and Regulations Relating to the Management of Hazardous Waste

In Indonesia, laws relating to hazardous waste are part of laws and regulations involving
environmental management. The Decree on management of hazardous waste was published in
accordance to the ordinance relating to Act no 4 on Environmental management of 1982. However in
1997, the Basic Environmental Management Act was revised and the administrative system for the
management of hazardous waste was formed in accordance with the revised act.
Laws and regulations in Indonesia relating to the management of hazardous waste is listed in table 1.
The first regulation involving hazardous waste is the The no 19 Ordinance of 1994 relating to the
management of hazardous waste, a part of which was later revised by ordinance no 12 of 1995.
Later, the No 18 ordinance of 1999 (The 1999 ordinance on the management of hazardous waste)
identified B3 waste and revision was made to the portion specifying the responsibility of the related
stakeholders.
In regards to regulations involving waste, the BASEL convention targeting the trans-boundary
movement of hazardous waste was ratified in 1993 and hence related regulations centering on B3
waste were formulated. In 2008, the waste management act was formulated which resulted in
household waste being regulated. However, waste from industrial waste that is not classified as
hazardous waste is not being regulated by any specific regulation.
1.2.3 Plans and Guidelines for Waste Disposal Management

(1) Current Situation of National plans and guidelines for Waste Disposal Management
National Development Plan (2004-2009) (RPJM2004-2009)
In the National Development Plan (2004-2009), to increase the general standards of waste disposal
1-17
management, the waste collection rate is set to rise to 75% by the end of year 2009. In regard to final
disposal sites (TPA), there is a guideline for sanitary landfill operations. Moreover, it is mentioned
that a feasibility study will be conducted to utilized incinerators for waste power generation (Waste
To Energy) in the plan for improving the level of final disposal facilities (TPA).
Table 1-6
Main Contents of National Development Plan related to Waste Disposal Management

(2004-2009)
Topics
Contents
Goal of Waste
Rise the waste collection rate at 75% by the end of year 2009
disposal
management
Increase awareness about the importance of the increasing waste problems
Policy
Facilitate people to participate in various activities in order to achieve the goal

Establish encouraging environment for the private sector to enter the collection,
transport, and final disposal management system
Develop a legal framework of PPP for waste management
Promote establishment of community-based organization for waste management
Review related laws and regulations and improve standards for waste management
Enhance capabilities of the administrators by exams, education, and trainings
Increase management standards by treating waste in sanitary landfills at the final
disposal sites (TPA)
Plans for waste
management
3 plans to implement the policy above

1. Plan to enhance capabilities of regional community
2. Plan to establish organizations
3. Plan to increase the waste management level
(Source: Overview of the Indonesia Medium-Term Development Plan 2004-2009)
Ministry ordinance for public project for waste management policy and tactics (2006, No. 21)
Department of Public Works which holds jurisdiction over household municipal soil waste provide
the ministerial ordinance regarding waste management (No. 21, 2006) for preservation of the
environment in residential areas.
1-18
Table 1-7 Main Topics and Contents of Ministry ordinance for public project for waste
management policy and tactics (2006, No. 21)
Topics
Contents
Reduce the amount of waste by 20% during the 2006-2010
Goal
Increase the waste service diffusion rate up to 60% of the population

Strategy
policy
and
1.Minimization of waste at waste sources

Strategy
Improve peoples understanding about 3R
Develop and implement an incentive-disincentive system for implementing 3R
Collaborate with different sectors such as the industrial sector and commercial
sector (including collaborative work between governmental organizations)
2. Encourage the public sector and citizens to involve in waste management as a partner
3. Improve the quality of waste management and increase the service diffusion rate
4. Establish organizations, laws and regulations
5. Secure financial resources
(Source: Indonesian 3R Policies and Implementation Environmental Research 2009 No.154)
(2) Present Situation of Plans and Guidelines on Treatment of Hazardous Waste

The management of B3 waste is the responsibility of the government (Environmental ministry) and
the responsibility of the local governments (state, city, prefectures) is limited to responsibilities like
responding to pollutions and accidents, issuing permits for the collection of hazardous waste
excluding waste oil and issuing permits for temporary storage.
Regarding laws relating to B3 waste (hazardous waste), the government ordinance 19 was
formulated in 1994; a year after the Basel Convention was ratified, and later partly revised by
ordinance no 12 of 1995. A bigger revision was made by the government ordinance no 18 of 1999
which regulated the collection, transportation, effective usage, treatment and disposal of hazardous
waste.
(3) Municipal Level of Plans and Regulations for Waste Disposal

This section organizes Malang Citys plan for waste disposal.
Since it is stated in The Act Regulation Waste Management in 2008, Article 47 that Local
government regulation expected by this act shall be available at the latest 3 (three) year after this act
is promulgated Malang City has established REGULATIONS OF MALANG CITY on WASTE
MANAGEMENT (2010 No.10). The main contents are described as below.
1-19
Table 1-8
Main Chapters and Contents of REGULATIONS OF MALANG CITY on WASTE

MANAGEMENT (2010 No.10)
Chapters
Contents
Scope
1. Household waste
(Chapter 2, Article
2. Other waste similar to household waste (commercial, industrial waste etc.)
2)
3. Specified waste (hazardous waste, toxic waste, remains of buildings etc
Duties and authority

(Chapter 5, Article
Duties of Local Government are to

Develop and increase public awareness in waste management
7)
Conduct research and technology development for reduction of waste

Implement and facilitate activities to reduce, to transport and to utilize
waste
Maintain the facilities and infrastructure
Manage the profits from waste management
Introduce technology developed in local communities to reduce waste
Coordinate between workers, local communities and supports from
foreign countries
Obligations
(Chapter 5, Article
12)
Local communities, commercial areas, industrial zones and special areas

shall provide TPS and / or waste segregation facilities.
Every person must provide waste to the segregation facility.
Municipal governments shall maintain TPS and TPA
Vehicles used for transport waste from TPS to TPA shall be well
maintained
Treatment facilities of TPS and TPA shall be maintained.
(Source: PERATURAN DAERAH KOTA MALANG NOMOR 10 TAHUN 2010 TENTANG PENGELOLAAN
SAMPAH)
1.2.4 Supply-demand Situation of Energy

As a feature of supply-demand situation in Indonesia, the petroleum supply has been decreasing
since 1998, but instead, natural gas is the major source of energy supply. The supply of natural gas
was tended to be decreasing up until 2008; however, the new production of liquefied natural gas
(LNG) started and now it is increasing. Domestic energy consumption is constantly increasing, and
in regard to petroleum in particular, consumption exceeded the amount of the petroleum production
in 2003.
1-20
Figure 1-12
Production and Consumption of Petroleum and Natural Gas in Indonesia
(Source: Indonesian Energy policy (IDE))
As the following table represents the primary energy sources, more than 50% of the total energy
production is from coal and natural gas followed by petroleum and hydro. In terms of energy
consumption, organized by category, industrial and household consumption takes up 80% of the total
consumption.
Table 1-9 Primary Energy Sources and Energy Consumption by Category
(Source: Indonesian Investment Environment (JBIC)October, 2008)
1.2.5 Laws and Regulations (and Policy) regarding Climate Change and Renewable Energy
(1) Laws, Regulations and Policy Regarding Climate Change
1) Current Situation of Greenhouse Gas Emissions
By looking at the sources of greenhouse gas emissions, Land Use Charge and Forestry (LUCF) has
the large portion, followed by peat fire and energy, and waste which accounts for 9.3% of total, is the
forth largest emission source.
1-21
Table 1-10 Greenhouse Gas Emissions from All Sectors (2000-2005)(Unit: Gg CO2e)
(Source: Indonesia Indonesia Second National Communication 2010 7)
The table below shows the breakdown of greenhouse gas emissions generated from the waste sector
(and drainage). About one quarter of the total is from all the waste-related sources except industrial
discharge and domestic charge.
Figure 1-13
Greenhouse Gas Emissions from the Waste Sector by Source Category

(2000-2005) (Unit: Gg CO2e)
(Source: Indonesia Indonesia Second National Communication 2010)
2) Measures to Reduce Greenhouse Gas Emissions

In the G-20 summit in Pittsburgh and the Copenhagen Climate Change Conference, the Indonesian
government committed that the country will reduce 26% of greenhouse gas emissions by 2020 by
the self-help efforts of its industrial sector. In addition, they announced the goal to reduce 41% of
7http://unfccc.int/files/national_reports/non-annex_i_natcom/submitted_natcom/application/pdf/indone
sia_snc.pdf
1-22
emissions with international assistance. There are programs and activities mainly involved in the
LUCF, the peat, and the waste sectors 8. In the waste sector, they set a goal of reducing 48 million
tons (0.048 GigaTon) with the following five strategies 9.
1. Improving the waste management process at landfill disposal sites
2. Reducing the volume of waste with 3R (Reduce, Reuse, and Recycle)
3. Utilizing environmentally safe Waste To Energy
4. Improving waste management in urban areas
5. Improving regulations and organizations in countryside
Among these measures, the mention of recovering methane from landfills and composting of organic
wastes, despite generation by incineration of waste (Waste To Energy) for that and future challenges.
Greenhouse gas emissions for the situation in Indonesia is due to peat fires and land-use change and
forestry most of them, waste generation is related to less than 2% of the total. The Indonesian
government and 26% in 2020 (working self) or 41% (including foreign aid) and the reduction goals,
and strategies have launched a promotion of 3R and waste management improvement in the field of
waste yet, for the incineration of waste reduction measures such as concrete that are not listed.
(2) Laws and Policies Related to Renewable energy

In Indonesia, in order to lower the dependency on oil, which has switched to being imported, efforts
are being made in the development of sources of renewable energy. The principle targets are
geothermal, bio fuel, solar power and hydraulic power, and the use of bio gases and conversion of
waste into electricity are, as with measures to combat global warming, not as yet major options
among the measures being considered.
1) Renewable Energy in Governmental Energy Policy

Presidential Decree 5/2006
The Presidential Decree 5/2006, intended to deduce dependency on oil, aims to reduce the
percentage of oil from 42% in 2005 to 20% in 2025, and in its place use 33% coal, 30% natural gas,
5% geothermal energy, 5% bio fuel, and 5% in other renewal energies / new energies.
Indonesia Medium-Term Development Plan 2010-2014 I-42

Presentation material during COP 16 provided by BAPPENAS Mr Syamsidar Thamrin
http://www.kyomecha.org/document/pdf/COP16SE_1b_Thamrin_BAPPENAS.pdf
9
1-23
Figure 1-14 Goals for Energy Structure in Indonesia

Data in 2008 (except biomass)
Target goal in 2025
*Renewable energy means geo thermal, bio fuel, hydro power, solar, wind, biomass, biogas, wave
power, ocean thermal energy conversion etc
Newly developing energy means hydrogen, coal bed methane, coal slurry fuel, coal gasification,
nuclear power etc, except coal slurry fuel is excluded
(Source : DIR Market Bulletin 2011 Summer Issue Vol.3)
In Indonesia, in order to create a system in which the introduction of renewable energy can be
strongly promoted, the Directorate General of New Energy, Renewable and Energy Conservation
was been established under the Ministry of Energy and Mineral Resources in August 2010. In
addition, in October 2010 Director Luluk of the Directorate announced a target of increasing the
percentage that renewable energy holds in the total domestic energy consumed to 25% by 2025.
2) Renewable Energy in Plans for Development of Sources of Electricity

In regard to development of sources of electricity, in Presidential Decree 4/2010 dated 8th January
2010, the 2nd Crash Program 2010 - 2014 was proposed, a plan to newly develop 10,000MW of
new energy sources by 2014. This plan for the development of sources of energy is the successor to
the 1st Crash Program (also for 10,000MW, 2006-2009), but while the 1st Crash Program was only
targeted at coal, the 2nd places the focus on renewable energy, such as geothermal (39%) and
hydraulic power (12%). The IPP format, in which IPP (independent power producers) sell electricity
to the electricity companies, is therefore intended to comprise 49.6% of production.
1-24
Table 1-11 Outline of Plans for Development of Sources of Electricity (Crash Program)
1st Crash Program
2nd Crash Program
Years of Plan
2006 - 2009
2010 - 2014
Development
PLN (Perusahaan Listrik Negara,
PLN 50.4% IPP 49.6%
Format
State
Electrical
Company)
100%
Volume
of
10,000MW
10,000MW
Coal burning 100%
Renewable energy 51%
Electrical Sources
to be Developed
Electrical Sources
(Geothermal
electricity
39%,
hydraulic power electricity 12%)

Fossil fuels 49%
(Coal burning 33%, gas burning
16%)
(Source: compiled based on the document prepared by Introducing nuclear technology application in Indonesia from
Japan Atomic Industrial Forum)
3) Duty to Purchase Renewable Energy

In order to promote the development of renewable energy, the Minister of Energy and Mineral
Resources Decree 31/2009 places a ministerial decree on the Perusahaan Listrik Negara (PLN) to
buy renewable energy. The buying price is between 656 - 1,044 Rp/kW, placing a 1.2 to 1.5 times
incentive depending on the area 10.
4) Tax Incentives
2010 Ministry of Finance Decree No. 24 (No.24/pmk011/2010) 11
Following on from the 2nd Crash Program, the Indonesian Government introduced in the Ministry
of Finance Decree No. 24/pmk011/2010, dated 29th of January 2010, the tax incentives shown below
for businesses that use renewable energy. Applicable energies included geothermal, wind, bio fuel,
solar, hydraulic, tide and ocean thermal energy conversion, showing the focused stance that the
government is taking in regard to development of renewable energy.
Deductions from Income Tax (Pajak Penghasilan)
10
Daiwa Institute of Research quarterly report Summer 2011, Vol.3, NEDO Study Report Feb 2011, Feasibility
study on application of smart community related technology into the industrial estates in Java island of Indonesia
11
Study on general awareness on environment and related policies in Indonesia, JETRO Overseas Research division,
Jan, 2011
1-25
Reduction of the 30% of total investment amount that is taxable (over 6 years, 5% per year),
abridgement of depreciation period for fixed assets, reduction of withholding tax rate to 10% for
remittance abroad of dividends, and extension to maximum of 10 years for losses carried forward.
* Based on the Governmental Decree 1/2007 16/PMK.03/2007, expanding it to cover these
enterprises.
Exemption from Value Added Tax (Pajak Pertambahan Nilai)
Exception from the value added tax on machinery and devices imported for implementation in
special strategies.
* Based on the Governmental Decree 1/2001, expanding it to cover machinery and devices related
to these enterprises.
Exemption from Import Duty (Bea Masuk)
Exemption from import duty on related machinery and devices.
* Based on the Ministry of Finance Decrees 154/PMK.011/2008 and 176/PMK.011/2009,
expanding it to cover machinery and devices related to these enterprises.
Tax Preferential Measures
Preferential tax measures based on governmental budget.
* Intended to reduce taxes relating to the import of strategic machines and parts.
(Source: 2010 Ministry of Finance Decree No. 24 (No.24/pmk011/2010))
Indonesia, having accepted the change to a country that imports oil, has increased their efforts in
development of renewable energy in recent years. As shown above, the government is creating
incentives by implementing tax breaks and a duty to buy renewable energy. However, the renewable
energy sources given as examples are geothermal, win, bio fuel, solar, hydraulic etc., and generation
of power through the burning of waste is not yet seriously being considered.
1.2.6 Laws, Regulations (and Governmental Policy) on Drainage and Exhaust Gases
(1) Laws and Regulations for Drainage
1) Water Quality Environmental Standard
The environmental standards for water quality as determined by the Governmental Decree
Relating to Water Management and Prevention of Water Pollution (2001 Decree No. 82) divides
water into four categories based on what it can be used for. These standards apply to the entire
country, with the governments of each province, regency and city then allowed to make changes to
the standard values or set new standard values (overwrite or concurrently) within their jurisdiction
and in response to any special characteristics of the region.
1-26
Table 1-12 Types of Water Quality Based on Governmental Decree 2001 No. 82
Type I
Drinking water, or water used for other purposes that requires the same water quality.
Type II
Water used for recreation, breeding of freshwater fish and irrigation of fields and
plantations, or water used for other purposes that requires the same water quality.
Type III
Water used for breeding freshwater fish, breeding livestock and irrigation of plantations, or
water used for other purposes that requires the same standards.
Type IV
Water used for irrigation of plantations, or water used for other purposes that requires the
same standards.
(Source: Governmental Decree 2001 No. 82)
There are 45 items looked at for environmental standards, divided into Physical Items
(temperature, turbidity etc.), Inorganic Items (pH, mercury, arsenic, cadmium etc.), Organic
Chemical Items (BOD, COD, DDT, BHC etc.), Microbe Items (number of coliform bacteria) and
Radiation Items (total Alpha rays, total beta rays).
1-27
Table 1-13
Water Quality Environmental Standards Based on Governmental Decree 2001 No. 82

Classification
Item
Units
Type I
Type II
Type III
Type IV
Normal Water Normal Water
Normal Water
Normal Water
Temp 3
Temp 3
Temp 3
Temp 5
Physical Properties
Temperature
Dissolved Residue
mg/liter
1,000
1,000
1,000
2,000
Suspended Residue
mg/liter
50
50
400
400
6-9
6-9
6-9
5-9
Inorganic Elements
pH
BOD
mg/liter
12
COD
mg/liter
10
25
50
100
Dissolved Oxygen
mg/liter
Phosphate (as P)
mg/liter
0.2
0.2
Nitrate Nitrogen
mg/liter
10
10
20
20
Ammonium Nitrogen
mg/liter
0.5
Arsenic
mg/liter
0.05
Cobalt
mg/liter
0.2
0.2
0.2
0.2
Barium
mg/liter
Boron
mg/liter
Selenium
mg/liter
0.01
0.05
0.05
0.05
Cadmium
mg/liter
0.01
0.01
0.01
0.01
Hexavalent
mg/liter
0.05
0.05
0.05
Bronze
mg/liter
0.02
0.02
0.02
0.2
Iron
mg/liter
0.3
Lead
mg/liter
0.03
0.03
0.03
Manganese
mg/liter
0.1
Mercury
mg/liter
0.001
0.002
0.002
0.005
Zinc
mg/liter
0.05
0.05
0.05
Chlorine
mg/liter
600
Cyanide
mg/liter
0.02
0.02
0.02
Fluoride
mg/liter
0.5
1.5
1.5
Nitrate (as N)
mg/liter
0.06
0.06
0.06
400
400
Chromium
Sulfate
1-28
Classification
Item
Units
Type I
Type II
Type III
Type IV
Free Chlorine
mg/liter
0.03
0.03
0.03
Hydrogen Sulfide
mg/liter
0.002
0.002
0.002
Fecal Coliform
MPN/100ml
100
1,000
2,000
2,000
Escherichia Coli
MPN/100ml
1,000
5,000
10,000
10,000
Rays
Bq/liter
0.1
0.1
0.1
0.1
Rays
Bq/liter
mg/liter
0.2
0.2
0.2
Micro Organisms
Radioactive
Properties
Organic
Chemical
Elements
Animal
and
Vegetable Oils
Surface Active Agent mg/liter
(as MBAS)
Phenol
g /liter
BHC
g /liter
210
210
210
Aldrin, Dieldrin
g /liter
17
Chlordane
g /liter
DDT
g /liter
Heptachloro,
g /liter
18
Methoxyclor
g /liter
35
Endrin
g /liter
Toxaphan
g /liter
Heptachlor Epoxide
(Source: Japan Bank for International Cooperation Environmental Survey Office, Indonesia Environment Profile,
2003)
2) Drainage Standards for Factories Etc.

The drainage standards applied to drainage from factories were determined based on 14 stipulated
industries and general industry in 1991, with the 1995 Environmental Ministers Decree on
Industrial Drainage Standards (1995 Ministry Decree No. 51) expanding the number of stipulated
industries to 21.
1-29
Stipulated Industries
The stipulated industries are caustic soda, metallic paints, coconut oil, paper & pulp, rubber, sugar,
tapioca, fabrics, chemical fertilizers, ethanol, monosodium glutamate, plywood, milk & milk drinks,
soft drinks, soap & synthetic detergents & plant oils, beer, batteries, paint, pharmaceuticals and
insecticides. For factories in the stipulated industries, along with standard drainage values there are
is also a limit on the volume of drainage per unit produced.
The number of items that are limited (both in concentration and limit on volume of drainage per unit
produced) differ depending on the exact industry; in the case of a soft drink factory it is 4, (BOD, SS,
Oil, pH), which for a paint factory it is 12, (BOD, SS, Mercury, Zinc, Lead, Bronze, Hexavalent
Chromium, Titan, Cadmium, Phenol, Oils, pH).
General Factory (Other than Stipulated Industry)

For general factories that are not designated a stipulated industry, two types of drainage standards
are set across 30 items, depending on the level of drainage treatment facilities. Type I standards are
applied to factories performing high level drainage treatment, while Type II standards are applied to
factories performing simple drainage treatment.
Based on Governmental Decree 2001 No. 82 and Governmental Decree 1990 No. 20, the governor
of each province and of areas with special status such as Jakarta has the authority to issue a
Governors Decree to set unique water quality environmental standards and drainage standards
(overwrite standards).
Table 1-14 Drainage Standards (General Factory)
Max Concentration
Item
Units
Type I
Type II
Physical
Temperature
Dissolved Residue
Suspended Residue
38
40
mg/liter
2,000
4,000
mg/liter
200
400
69
Chemical Properties
pH
Dissolved Iron
mg/liter
10
Dissolved Manganese
mg/liter
Barium
mg/liter
Bronze
mg/liter
Zinc
mg/liter
10
1-30
Max Concentration
Item
Units
Type I
Type II
Hexavalent Chromium
mg/liter
0.1
0.5
Total chromium
mg/liter
0.5
Cadmium
mg/liter
0.05
0.1
Mercury
mg/liter
0.002
0.005
Lead
mg/liter
0.1
Tin
mg/liter
Arsenic
mg/liter
0.1
0.5
Selenium
mg/liter
0.05
0.5
Nickel
mg/liter
0.2
0.5
Cobalt
mg/liter
0.4
0.6
Cyanide
mg/liter
0.05
0.5
Sulfurous Acid
mg/liter
0.05
0.1
Fluorine
mg/liter
Free Chlorine
mg/liter
Ammonium Nitrogen
mg/liter
Nitric Acid
mg/liter
20
30
Nitrous Acid
mg/liter
BOD5
mg/liter
50
150
COD
mg/liter
100
300
Methylene Blue Active
mg/liter
10
Phenol
mg/liter
0.5
Animal and Vegetable Oils
mg/liter
10
Mineral Oils
mg/liter
10
50
Abide by other standards
Abide by other standards
Substance (MBAS)
Radioactivity
(Source : Japan Bank for International Cooperation Environmental Survey Office, Indonesia Environment Profile,
2003)
(2) Laws and Regulations on Exhaust Gas

1) Air Environmental Standards
Air environmental standards were first set in 1988, and then reviewed every 5 years as part of the
development of measures to prevent pollution. In the 1999 Governmental Decree Relating to
Prevention of Air Pollution (1999 Governmental Decree No. 41), a total of 13 standard values were
set for such items as sulfur dioxide, carbon monoxide, nitrogen oxide, hydrocarbons and suspended
1-31
particular matter (PM10 and PM2.5) for the four industries of steel working, paper & pulp
manufacturing, cement plants and coal burning power plants, and then all other factories and
businesses. The same decree also sets the national standards for analytical methods and tools to be
use in performing an analysis.
Table 1-15 Air Quality Environmental Standards in Indonesia

Item
Measuring time
Standard Value
1 hour
900g/N m3
24 hours
365g /N m3
1 year
60g /N m3
1 hour
30g /N m3
24 hours
10g /N m3
1 year
1 hour
400g /N m3
24 hours
150g /N m3
1 year
100g /N m3
1 hour
235g /N m3
1 year
50g N m3
3 hours
160g /N m3
PM10
24 hours
150g /N m3
PM2.5
24 hours
65g /N m3
1 year and a half
15g /N m3
24 hours
230g /N m3
1 year
90g /N m3
24 hours
2g /N m3
1 year
1g /N m3
30 days
10t/km 2/ month (Residential Area)
Sulfur Dioxide
Carbon Monoxide
Nitrogen Oxide
Ozone
Hydrocarbons
Suspended Particulate Matter (TSP)
Lead
Sedimented Dust
20t/km 2/ month (Industrial Area)

Fluoride
Flour Index
Chorine / Chlorine Dioxide
Sulfate Index
24 hours
3g /N m3
90 days
0.5g /N m3
30 days
40g /100m2 (charcoal filter paper)
24 hours
150g /N m3
30 days
1mgSO3/100 m3 lead monoxide
(Source : Government Decree Relating to Prevention of Air Pollution (1999 Government Decree No. 41))
1-32
2) Exhaust Gas Standards

Concerning standards for emissions from fixed sources, the 1995 Environmental Ministers Decree
Relating to Exhaust Standards from Fixed Sourced (1995 No. 13) sets the five types of emission
standards for the emissions from the four industries of steel working, paper & pulp manufacturing,
cement plants and coal burning power plants, and then all other factories and businesses.
Table 1-16 Air Exhaust Standards in Indonesia

Standard
Output Source
Item
Value
(mg/m3)
Other Industries
Ammonia
0.5
Chlorine Gas
10
Hydrogen Chloride
Hydrogen Fluoride
10
Nitrogen Oxide
1,000
Permeability
35%
Particulates
350
Sulfur Dioxide
800
Total Reduced Sulfur
35
Mercury
Arsenic
Antimony
Cadmium
Zinc
50
Lead
12
(Source : Environmental Ministers Decree Relating to Exhaust Standards from Fixed Sourced (1995 No. 13))
1.2.7 Summary on Waste Management Laws and Regulations

Waste legislation in Indonesia, has been developed in advance to those involved in hazardous waste
an opportunity to ratify the Basel Convention in 1993. Then, with the population growth and
economic growth, against the background that has increased the amount of waste that is underway
for municipal solid waste legislation.
As the main contents of the policy relating to the country's municipal waste,
By promoting the development in urban and rural waste management systems, waste collection rate
increase, to reduce the improper handling are done outside the system
1-33
At each stage of waste treatment, 3R (suppressing the generation of waste, reuse, recycle) to
facilitate and reduce landfill waste by
Landfill for disposal completed in 2013 currently being conducted open dumping, sanitary disposal
of such conduct, raising the level of control, safe and proper disposal is performed.
In Malang city, in line with the policy of national policy in 2010, "Waste management regulations
Malang city" has been established. The Rules provide transfer stations (TPS) and require all the
citizens to discharge waste into TPS to ensure proper collection of the waste. In addition, by sorting
on the processing infrastructure in TPS, actively promoting the / reuse and recycling, trying to
measure the reduction.
1.3 Overview of Target Area

1.3.1 East Java
(1) Geography, Demographics, and Society
The target area of this project, Malang is in East Java province. East Java is located on the East side
of Java Island where the capital city Jakarta is located. This province has the second largest city of
Indonesia and the capital city of the province, Surabaya, and the second largest international seaport,
Tantung Perak Sea Port. The land area is about 47,922 km2,and it is 2% of the national land area.
The population is approximately 37 million (Surabaya has 2.72 million people). East Java is divided
into 29 regencies and 9 municipals (total 38 cities). It functions as a centre of economic activities
and development in Eastern Indonesia, and also it is developing as a consolidating area for supplies.
Two third of the provinces land area is mountainous and hilly, and in total there are 48 mountains
and 74 islands of various sizes in total 12.
(2) Economy and Finance

The economic growth rate of East Java is similar to the national growth rate. It has maintained the
rate between 5% and 6% since 2005 13.
12
Osaka prefecture Friendship between East Java (Indonesia) http://www.pref.osaka.jp/kokusai/koryu/jawa.html

Government of East Java
13
1-34
Figure 1-15
Changes in Economic Growth Rate in East Java
5.84 5.80 6.11 5.94
2005
2006
2007
5.01
2008
2009
(Source: Eastjavacoop.com, Profile, Dec 10,2010 14)
The main industries are trade (29%) manufacturing (28%) and they exceed the portion of agriculture
and mining.
Figure 1-16
4.76%
5.69%
Composition by Sectors in East Java

Agriculture
8.29%
2.17%
16.39%
Mining & Quarries

Manufacturing
Electricity, Gas & Clean Water
29.44%
28.04%
Construction
Trade, Hotels & Restraints
3.40%
1.82%
Transportation & Communication
(SourceEast Java Provincial Governments Website 15)
1.3.2 Study Area: Greater Malang (Malang City, Malang Regency, Batu City)
The study area for this project, Grater Malang consists of Malang city, Malang Regency and Batu
City.
14
Eeastjavacoop.com
15
1-35
Figure 1-17
Study Area
(Source: Indonesia: United Nations Development Programme Indonesia 16

East Java Province: Eastjavacoop.com 17
(1) Malang City

Malang City is the second largest city of East Java. It has a land area of 11,006 km2, and is at a
height of 440 m above sea level. The city is located 90 km south of Surabaya and surrounded by
Malang Regency. There are five administrative districts (kecamatan) and each consists of 11-12
villages (kelurahan).
16
17
http://www.undp.or.id/general/about_maps.asp
1-36
Figure 1-18
Administrative Map of Malang City (kecamatan)
(Source: The Study on Solid Waste Management in Malang)
The population of Malang City is approximately 820,000, and it is increasing. Lowokwaku is the
most populous district with the population of 200,000 among the five. The following table shows
each districts population and population density.
1-37
Table 1-17 Population, Area and Density of Malang

No
District
Total Area
(km2)
Population
Population Density
(inhab./km2)
Kedungkandang
182,534
3,989
4,576
Sukun
170,201
2,097
8,116
Klojen
101,823
883
111.531
Blimbing
167,555
1,777
9,429
Lowokwaru
194,331
226
8,599
Total
816,444
11,006
* The values for total areas are truncated to two decimal placesEach dimension is calculated by
rounding down.
(Source: SISTEM INFORMASI GEOGRAFISPENERIMAAN DAN PENDISTRIBUSIAN ZAKAT
DI KOTA MALANG MENGGUNAKAN GRASS BERBASIS LINUX)
(2) Malang Regency

Malang Regency is the second largest regency in East Java and is surrounding Malang City and Batu
City. It is divided into 33 administrative districts and, overall it consists of 12 kelurahan and 378
desa (they are equivalent to villages in Japan).
Figure 1-19 33 Administrative Districts of the Malang Regency (kecamatan)
Batu City
Malang City
(Source: Prefeasibility Study, Analysis of Solid Waste Management Greater Malang Malang Regency (11/6/19))
Malan Regency has a population of approximately 2.5 million (2009), and it is expected to be
increasing. The following table shows each districts population and population density.
1-38
Table 1-18 Population of Malang Regency by District in 2009

Population Density
District(kecamatan)
Population
(inhab./km2)
Donomulyo
87,807
501
Kalipare
69,746
528
Pagak
60,630
673
Bantur
73,327
417
Gedangan
56,437
332
Sumbermanjing
93,115
343
Dampit
122,026
819
Tirtoyudo
78,733
348
Ampelgading
59,401
296
Poncokusumo
91,362
411
Wajak
80,773
647
Turen
114,599
1,785
Bululawang
65,872
1,268
Gondanglegi
86,345
1,236
Pagelaran
66,064
1,645
Kepanjen
96,052
1,697
Sumberpucung
58,142
1,405
Kromengan
39,417
885
Ngajum
50,469
762
Wonosari
46,598
753
Wagir
76,686
995
Pakisaji
74,988
1,679
Tajinan
48,268
1,197
Tumpang
74,735
1,153
Pakis
117,918
1,819
Jabung
75,792
598
Lawang
99,831
1,393
Singosari
141,953
1,159
Karangploso
57,795
812
Dau
62,727
1,086
Pujon
64,354
532
Ngantang
60,342
397
Kasembon
35,193
412
Total
2,487,537
Source:Prefeasibility Study, Analysis of Solid Waste Management Greater Malang Malang Regency(11/6/11)
1-39
Also, the 33 administrative districts are divided into 4 categories according to population density.
The darkest colour shows the highest density areas in the next figure. The majority of the population
is concentrated in the central area close to Malang City.
Figure 1-20
Densities of Malang Regency
1-40
(3) Batu City

Batu City has a total area of 202,800 km2 and consists of 3 administrative districts and 23 villages.
Batu aparted from Malang Regenct and became a separate city on November 17, 2001 and now its
population is about 170,000 with tourism as a main industry.
Figure 1-21
Location of Batu City
(Source: Google Map)
The waste situation is that the current processing sites were established in 2005, and at the same time
steps toward compost conversion were started.
In the city, there are areas in which garbage is collected and areas in which it is not. Those areas that
do not pay a tipping fee do not have their garbage collected. A total of 1 million Rp/month is
collected as tipping fees from 500 households. From this, 700,000 Rp is used for collection expenses,
with the remaining 300,000 split between the citizens and the city. The garbage in areas in which
collection is not performed is either thrown into the river by the citizens, or they collect it up and
take it themselves to the TPA.
1-41
1-42
Chapter 2
Study Methodology
2-1
2-2
2.1 Study Contents

2.1.1 Background and Objectives
The Government of Indonesia enacted the Waste Management Law (Act Number 18 Year 2008
regarding Waste Management) in 2008 and is currently formulating the provisions for this.
According to these provisions, the current disposal method of open dumping will be suspended by
2013, when it will become necessary to adopt new methods of treating wastes. Sanitary disposal site
treatment, which entails conducting management of leachate and earth covering of landfilled waste,
is the least costly method and enables adverse impacts on the local environment (water system
pollution, odor and harmful pests) to be partially mitigated; however, it does not represent a
fundamental solution. Furthermore, due to the impact of an accident in which a disposal site
collapsed and caused the death of around 100 people, this method offers no solution to the extreme
difficulty of finding suitable locations for new disposal sites. In areas where there is no spare land
available, the long distance haulage of wastes becomes necessary, and there is little choice but to
depend on the construction of wide area disposal sites on the provincial level.
In these circumstances, municipalities struggling to find new sites for final disposal sites regard
incineration plus waste to energy as an alternative ultimate solution and are advancing concrete
examinations with a view to realizing this.
The Study aims to investigate the feasibility of an integrated waste to energy system that is suited to
Indonesian waste, which has higher water content than the level for conducting efficient waste power
generation, in Malang City, East Java Province. The feasibility study comprises three components,
namely 1) assessment of technical aspects including the pretreatment for incineration, 2) feasibility
assessment of cost cutting based on localization of manufacture, and 3) setting of appropriate levels
for the waste treatment cost and revenue from power sales.
2.1.2 Outline of the Study

The study items and scope required in order to realize the Project are as follows.
(1) Basic Survey of the Target Country, Area and Sector
Investigation is carried out on socioeconomic conditions, conditions of the waste sector, laws and
regulations, and compilation of related plans in the target country and area, i.e. Malang and
surrounding cities in East Java Province, Indonesia.
2-3
(2) Technical Feasibility

Although the core waste power generation technology has been perfected, verification is conducted
on countermeasures and technical aspects concerning its application to Indonesian waste with high
water content.
The study items and techniques are as follows:

-
Conduct hearing surveys with municipal governments concerning conditions of waste

discharge and feasibility for utilization as compost.
Conduct analysis of the composition of waste (three components and waste gas). When
doing so, an appropriate agency is selected via the local consultant (PT.
INFRATAMA
YAKTI Infrastructure & Environmental Consultant).

-
Basic design and cost estimation of the system including pretreatment are carried out. Also,
maintenance costs are estimated.
Waste collection conditions are investigated jointly with the municipal governments.
(3) Financial and Economic Analysis

The business feasibility of the Project is evaluated in rough figures. Specifically, this entails
calculating the business revenue comprising waste treatment fees from municipalities and revenue
from sale of power, and the business costs comprising the plant construction cost and plant
maintenance cost. Here, because waste treatment costs in Indonesia are much cheaper than they are
in Japan, it is necessary to control the construction cost and maintenance cost in order to generate
feasibility. Accordingly, localization (local manufacture and local procurement) is examined as a
means of limiting costs. In addition, other issues in realizing commercial actualization and
recommendations concerning the form of business are compiled.
The study items and study techniques in this respect are as indicated below.
-
Concerning current waste treatment costs and the projected costs in the case where a final
disposal site is constructed by the provincial government, information is collected in
hearings with the central government (Ministry of Public Works), provincial government
and municipal government, etc.
Concerning income from power sales, including the potential for granting of incentives to
waste power generation, which is a form of biomass energy, hearings are conducted with the
Ministry of Energy and Mining Resources and PT PLN.
2-4
Concerning examination geared to localization of plant construction and maintenance, the

performance and capability of local engineering firms and boiler makers, etc. is evaluated
and rough estimate is carried out.
(4) Environmental and Social Consideration Survey

A potential negative impact on the local environment is the emission of dioxins and other
incineration gases, however, examination is also conducted on possible positive impacts such as
improvement of the local water environment, control of greenhouse gases and poverty
countermeasures with respect to waste pickers. Examination is also conducted on building consensus
with local residents with respect to plant location.
The study items and study techniques in this respect are as indicated below.
-
Concerning air pollution and water pollution, the current legal controls and standard values
are surveyed, and items that havent yet been compiled are also investigated.
As the assessment of current treatment methods, existing water quality analysis results from
around the disposal site are verified and samples are taken and analyzed whenever necessary.
When conducting water quality investigation, cooperation is sought from experts at the
University of Miyazaki and University of Brawijaya (Malang City), which have a proven
record in water quality investigation.
Concerning limitation of greenhouse gas emissions, verification is conducted based on the

waste that is currently directly landfilled.
Concerning waste picker countermeasures, actual conditions are grasped through interview
surveys and feasibility is studied concerning incorporation into the Project (feasibility of
manpower utilization).
(5) Others
The City of Osaka participates in the Study as a cooperating body. It is an entity that actually
conducts waste treatment and its involvement entails the dispatch of experts to survey waste
collection conditions and compilation of recommendations concerning 3R initiatives, collection
plans, facilities operation and technical training, etc.
-
Survey of the actual state of waste collection
Compilation of recommendations to Malang City (3R activities, efficient waste collection

2-5
planning, efficient operation of incineration facilities and final disposal site, environmental
monitoring, implementation of technical training on not only waste treatment but also air quality
conservation and sewage treatment, etc.)
In the Project, the following study work is implemented in order to investigate the feasibility of
integrated waste to energy suited to Indonesian waste, which has higher water content than the
level for required to conduct efficient waste power generation. The feasibility study comprises
three components, namely 1) assessment of technical aspects including the pretreatment for
incineration, 2) feasibility assessment of cost cutting based on localization of manufacture, and
3) setting of appropriate levels for the waste treatment cost and revenue from power sales.
2.2 Study Method and Setup

2.2.1 Study Method
In the Study, in order to investigate the feasibility of applying waste incineration and power
generation technology upon grasping and analyzing socioeconomic conditions and current
conditions of the waste sector in Malang City and surrounding municipalities in East Java Province,
assessment is carried out from the viewpoints of law, technology, environment, social consideration
and economy.
In conducting the Study, as was mentioned earlier, basic investigation is conducted on

socioeconomic conditions, legal controls and the situation regarding generation, treatment and
disposal of waste in the target area. Also, regarding verification of waste quantities, the number of
trucks entering the disposal site is measured and analysis is carried out on the physical composition
and water content, etc. of waste in the dry season and rainy season. Upon doing that, the Project
assessment, comprising investigation of the technical feasibility for application of the waste
incineration and power generation technology, conceptual design of facilities and examination of
equipment specifications, estimation of project costs and financial analysis, and examination of
indirect factors such as environmental and social considerations and the anticipated improvements of
Project introduction, is carried out.
2.2.2 Study Setup

As is indicated in the figure below, the lead enterprise in the Study is Hitachi Zosen Corporation,
which has a proven record of supplying and operating waste incineration and power generation
technologies not only in Japan but also China and South Korea. In addition to the technical and
economic assessments, in order to examine the feasibility of introduction from the viewpoints of
2-6
legislation, environment and social consideration, the Study is implemented upon assigning experts
from EX Research Institute Ltd., which has experience of compiling waste management plans and
implementing technical cooperation projects in Asian countries, and Smart Energy, Co., Ltd., which
has been extensively involved in the assessment and proposal, etc. of various projects for reduction
of greenhouse gases.
In addition, cooperation is obtained from the University of Miyazaki, which has experience of
implementing environmental study in the target area, and the City of Osaka Environmental Bureau,
which has experience of waste incineration projects and can offer recommendations on building
consensus with residents and forming a recycling-oriented society.
As the subcontractor, PT.INFRATAMA YAKTI is selected to carry out qualitative analysis of waste.
Figure 2-1
Study Implementing Entities
(Source: Created by Hitachi Zosen Corporation)
The following table summarizes the responsible officials in each entity as well as their responsible
work areas.
2-7
Figure 2-2
Research Project
ManagerHZ
Masanori Tsukahara,
Business & Product
Development Headquaters,
HZ/Reserarch PM
Study Implementation Setup
Hitachi Zosen CorpHZ
Technical
Cost calcuration
Procurement
Koichi Tamagawa, GM,

Project Exection Dept.
Oveaseas Group, HZ
Kenji Hattori, Manager,

Cost Engineering Dept.
Manager
Masaya Kusano,
Manager, Procurement
Dept. IP Group, HZ
Economic/Finance
Sales
Hiroshi Kanenobu, DGM,

Environmental Solution
Sales Dept., HZ
Takeshi Miura, DGM,

Overseas Environmental
Systems Sales Dept.,
EXRI
Social and environmental Study
Minoru Sawachi Technical
Advisor, Business Planning
Group, EXRI
Waste Policy Survey

Junya Kikuhara, Manager,
Environmental Industry
and Infrastructure
Development Team, EXRI
Waste Quantity Survey
Waste stream study
Basic Research
Makoto Yamashita,
Consultant, Environmental
Industry and Infrastructure
Yuko Kanasaka, Assistant

Researcher, Environmental
Industry and Infrastructure
Kazuhiro Nakaishi, Senior

Consultant, Environmental
Engineering Group, EXRI
Yasushi Sakai, Manager,

Jakarta Liaison Office,
EXRI
Local coordination
Smart Energy
Hiroo Negishi, Department
Manager, Strategic
Investment Department,
Smart Energy, Co., Ltd.
University of Miyazaki
Water quality analysis
Tomoo Zekito, Assistant

Professor, Civil and
Environmental Engineering
Department, Faculty of
TB Prayogo Civil and

Environmental
Engineering Department,
Faculty of Engineering
Other (Osaka City)
Fundamental Plan
Nagamochi Masayuki,
Manager, Environmental
Management Dept.,
Environmental Bureau, Osaka
Municipal Government
Technical Staff
Hiroshi Ogawa, Senior

Consultant, Strategic
Investment Department,
Smart Energy, Co., Ltd.
3R, Awareness raising

Administrative Staff
Technology, safety
Machinery and
equipment Staff
Renewal of landfill site

Cilil Engineering Staff
(Source: Created by Hitachi Zosen Corporation)
2-8
Table 2-1 List of research team members

Name
Masanori
Tsukahara
Affiliation and Position
Responsible Field
Department Manager in Charge, Strategic Planning

Group, Business Planning Department, Hitachi
Project Manager
Zosen Corporation
Department Manager, Overseas Group, Project
Koichi Tamagawa
Department, Engineering Headquarters, Hitachi
Technical affairs
Zosen Corporation
Hiroyoshi
Yamazaki
Assistant Department Manager, Overseas Group,

Project Department, Engineering Headquarters,
Technical affairs

Hirokazu Ueda
Technical affairs

Department Manager in Charge, Overseas Group,
Juji Iwamoto
Technical affairs

Nobuo Hagiwara
Technical affairs

Assistant Section Manager, Overseas Group,
Masatoshi Iisaka
Technical affairs

Assistant
Masanori Nomura
Department
Manager,
Project
Department, Engineering Headquarters, Hitachi
Cost estimation
Zosen Corporation
Group
Kenji Hattori
Manager,
Engineering
Environmental
Headquarters,
Hitachi
Group,
Zosen
Cost estimation
Corporation
Assistant Department Manager, Environmental
Hiroshi Kanenobu
Solutions
Sales
Department,
Engineering
Headquarters, Hitachi Zosen Corporation

Zentaro
Group Manager, IPG, Procurement Department,
Hashimoto
2-9
Economic and financial

analysis
Procurement
Name
Masaya Kusano
Responsible Field
Section Manager in Charge, IPG, Procurement

Department, Hitachi Zosen Corporation
Procurement
Department Manager in Charge, Strategic Planning

Seiji Fukushi
Group, Business Planning Department, Hitachi
Technical affairs
Zosen Corporation
Assistant
Takeshi Miura
Department
Environmental
Engineering
Manager,
Systems
Sales
Headquarters,
Overseas
Department,
Hitachi
Zosen
Economic and financial

analysis
Corporation
Section Manager in Charge, Business Promotion
Nobuya Tamai
Department No. 2, Business Promotion Division,

Global Business Promotion Headquarters, Hitachi
Technical affairs
Zosen Corporation
Department
Hiroo Negishi
Manager,
Strategic
Investment
Department, Smart Energy, Co., Ltd.
Methodology
examination / Related
systems survey
Hiroshi Ogawa
Minoru Sawachi
Senior
Consultant,
Strategic
Department, Smart Energy, Co., Ltd.
Nakaishi
Group, EX Research Institute Ltd.

Researcher,
Environmental
Environmental
Makoto
Chief
Yamashita
Yuko Kanasaka
Yasushi Sakai
Engineering
Engineering

Researcher,
examination / Business
Social and environmental

consideration
Chief
Chief
Researcher,
Methodology
examples analysis
Technical Advisor, Business Planning Group,
Kazuhiro
Junya Kikuhara
Investment
Environmental
Waste quality survey
Waste policy survey
Engineering Fact finding survey of

waste treatment
Chief Researcher, International Consulting Group, Social and environmental

consideration
Manager, Jakarta Liaison Office,

Onsite coordination
Assistant professor, Civil and Environmental

Tomoo Sekito
Engineering Department, Faculty of Engineering,

University of Miyazaki
2-10
Name
TB Prayogo
Tomoyuki
Hosono
Masayuki
Nagamochi
Responsible Field
Civil and Environmental Engineering Major,

Faculty of Engineering, University of Miyazaki
Engineer, Environmental Technology Department,
Overseas Business Headquarters, Nippon Koei Co.,
Ltd.
Administrative
organization assessment
Manager, Environmental Management Department,

Environmental
Bureau,
Osaka
Municipal
Waste policy survey
Government
Manager, Environmental Management Section,
Kazuhiro Oishi
Environmental
Management
Department,
Waste policy survey
Environmental Bureau
Supervisor in Charge, Environmental Management
Daisuke Einaga
Section, Environmental Management Department,
Waste policy survey
Supervisor in Charge, Environmental Management
Ken Onishi
Section, Environmental Management Department,
Waste policy survey
Tetsuo Minoda
Manager, Facilities Department, Environmental

Bureau
Disposal site survey
Acting Section Manager, Construction Planning

Toshitoku Matsui
Section, Facilities Department, Environmental
Bureau
Supervisor in Charge, Construction Planning
Akira Takenaka
Bureau
Masatoshi
Kaneko

Social consideration
Bureau
Ryoichi Fujii
Bureau
Hideaki
Yamamoto
Vice Counselor, North Port Business Office,

Landfill Management Department, Institute for
Environmental Management, Osaka
2-11
2.3 Study Schedule

An outline of the Study schedule is shown below. Following the start of work in September, four
field surveys and two preliminary and supplementary surveys were carried out.
Table 2-2 Study Schedule
A total of four field surveys were implemented in the Study, and these are outlined below.
Table 2-3 Field Survey Schedule

Field
Date
Visited Destinations and Contents
Survey
First
Team A
2011/9/12
Courtesy calls to and outline explanation of the Study at the Ministry

of Environment, Ministry of Public Works and JICA
2011/9/13
2011/9/14
2011/9/15
2011/9/16
Courtesy calls to and outline explanation of the Study at the Japanese

Embassy, JETRO and JBIC
First general meeting and talks with responsible officials at Malang
Municipal Government
First general meeting and talks with responsible officials at East Java
Provincial Government
Talks with responsible officials at Malang Municipal Government
2-12
Field
Date
Survey
2011/9/20
Team B
2011/9/12
2011/9/13
2011/9/14,15
2011/9/16
Attendance at a seminar staged by East Java Province Governorate of

Public Works
Water quality survey at Malang Final Disposal Site
Water quality survey at Malang Final Disposal Site and survey of
waste generation conditions
Waste quality analysis at Malang Final Disposal Site
Talks with Malang Municipal Government according to each officer
Second
Team A
2011/10/3
Hearings at Japanese enterprises and JETRO
2011/10/4
2011/10/5
2011/10/6
Transfer to Malang City
2011/10/7
Team B
2011/10/3
2011/10/4
2011/10/5,6
2011/10/7
Team C
2011/10/3
2011/10/4
2011/10/5-6
2011/10/7
Talks among officials on the Japanese side concerning the second

field survey
Talks with waste management officials of Malang Regency, and
survey of primary collection points and final disposal site
Talks with waste management officials of Batu City, and survey of
primary collection points and final disposal site
Talks with waste management officials and monitoring officials of
Malang City
field survey
Talks with waste management officials of Malang Regency, and
survey of primary collection points and final disposal site
Talks with waste management officials of Batu City, and survey of
primary collection points and final disposal site
Talks with waste management officials of Malang City, and with the
waste quality analysis agency
field survey
Third
Team A
2011/10/31
Hearings at a waste picker organization in Surabaya, and survey of

an abandoned incinerator
2-13
Field
Date
Survey
2011/11/1
2011/11/2
2011/11/3
2011/11/4
2011/11/7
Team B
2011/10/31
2011/11/1
2011/11/2
2011/11/3
2011/11/4
2011/11/7-9
Hearings at Malang Municipal Cleansing Bureau and Environmental

Bureau
Hearings at Malang Municipal Development Bureau, Malang
Regency Public Works Bureau and Agricultural Bureau
Hearing at Malang Regency Public Works Bureau, and discussions
with East Java Province Public Works Bureau
Talks among officials on the Japanese side concerning the third field
survey (first part)
Interim report and talks at the Ministry of Environment
Hearings at a waste picker organization in Surabaya, and survey of
an abandoned incinerator
Hearings at Malang Municipal Government and the CDM consultant
company in Jakarta
Hearings at Malang Municipal Government and Malang Regency
Hearing at Malang Regency and discussions with East Java Province
Public Works Bureau
Talks among officials on the Japanese side concerning the third field
survey (first part)
Talks on the waste quality survey and survey of quantities being
carried into the final disposal site
2011/11/7
Talks on the survey of local procurement sources
2011/11/8
Hearings at local procurement sources
2011/11/9
2011/11/10
2011/11/11
2011/11/14-22
Survey of water quality, waste composition and incoming amounts of

waste at the final disposal site
Survey of water quality, waste composition and incoming amounts of
waste at the final disposal site
Fourth
Team A
2011/11/28
Hearings at Japanese banks, and water quality survey
2011/11/29
Hearings at JBIC and Indonesian SMI, and water quality survey
2011/11/30
Interim report at the Ministry of Public Works and Ministry of

Environment, and water quality survey
2-14
Field
Date
Survey
Team B
2011/12/1
Water quality survey
2011/12/2
Water quality survey
2011/12/6
Fact finding survey of hospital waste treatment
2011/12/7
Talks with Malang Municipal Government
2011/12/8
Talks with Malang Regency
2011/12/9
Talks with Malang Municipal Government

2-15
2-1
Chapter 3
Justification, Objectives and Technical Feasibility of
the Project
3-1
3-2
3.1 Background and Necessity

3.1.1 Background of the Project
In Indonesia, a new act concerning waste control (NUMBER 18 YEAR 2008) was established in
2008. The government is currently formulating rules and regulations and the current main disposal
method of open dumping is slated to be abandoned by 2013 and thus transition to a new waste
disposal method is needed. Leachate control and treatment with covet soil on buried waste at
sanitary treatment facilities is the least expensive method.
However, it is not a fundamental
solution, although it helps reduce adverse effects on the surrounding environment (water pollution,
foul odor, and pest)
It is extremely difficult to build new solid waste disposal facilities, partly because of the impact of a
landfill collapse accident of that killed about 100 people.
In areas where there is not a lot big
enough for the purpose, long-distance waste transportation is needed. This means that the people
need to depend on the development of solid waste disposal facilities that cover extensive areas led by
provincial governments.
Against the backdrop, local governments that have difficulties in
developing new final disposal facilities take incineration disposal and power generation with the
exhaust heat as the final option and they are in the stage of carry out concrete examinations.
These efforts are made together with waste reduction and the 3R initiative and are included in the
ministerial goals of the Ministry of Public Works that is in charge of the national mid-term
development plan and urban waste treatment. However, in the country where economy continues
to grow and the population continues to increase, it would be difficult for the pace of waste reduction
to be faster than the increase of waste and thus the amount of waste is likely to increase. Waste
generation would decrease or stabilize when the nation sees stable low economic growth as seen in
the experience of Japan.
The scope of the Project in the flow of waste disposal is the scope where such local governments as
city and provincial governments are in charge of.
The structure of waste disposal excluding
harmful substances in Indonesia is as follows: 1) temporary collection by local community, 2)

collection of valuable materials at temporary garbage collection sites by non-governmental sector, 3)
collection and final disposal by local government, and 4) collection of valuable materials at disposal
sites under the public recognition. Processes 3) and 4) are subject to the Project.
3-3
3.1.2 Study of Waste Disposal Method

The waste disposal method changes as follows in general in accordance with the economic maturity:
I: open dumping
II: sanitary landfill
III: composting sanitary landfill
IV: incineration and power generation or mechanical sorting composting / methane
fermentation incineration and power generation
As the disposal method changes, the waste collection ratio increases and the recycling method also
changes from the collection of valuable materials by non-public waste pickers to sorting in the
discharge stage led by the public sector or recycling by manufacturers or public sector.
This helps
reduction of ill impacts on the surrounding water systems caused by leachate at disposal sites,
reduction of greenhouse gas emissions, or promotion of cyclic use of resources.
As for the ratio of landfill disposal of waste, open dumping (I) and sanitary landfill (II) account for
100 percent, whereas composting sanitary landfill (III) accounts for 50 percent to 60 percent and
the method of IV is mostly limited to inorganic materials, accounting for about 10 percent of waste.
Compost that can be used as organic fertilizers is generated in III and electricity or hot water can be
generated in IV.
In the case of IV, selection of incineration and power generation only or the combination of
(mechanical sorting biological treatment incineration and power generation) depends on the
volume of compost availability or remaining capacity of the final disposal facilities in the area.
When sorting cannot be perfect only with biological treatment, residues are generated and, when
there is no option of landfill, waste will be incinerated.
Indonesia is in the transition phase from open dumping (I) to the next stage. As the stage advances,
the disposal cost increases. Thus, although transition to II or III is more common, transition to IV
that enables the production of the biggest amount of energy and electricity with the least volume of
final disposal can be a possible option because of the difficulties in securing final disposal sites,
power shortage, and movement of greenhouse gas reduction. Particularly, it is a realistic option in
densely populated urban areas and tourist towns where clean image is important.
It is a possible
option also in mid-sized cities if you consider the situation several years from now with the
economic growth.
3-4
Against the background, the disposal method of stage IV shall be examined in the Project. Whether
to include biological treatment or not is decided based on the makeup of waste and its moisture
percentage. If the ratio of organic matters and moisture percentage are high, (biological treatment
incineration and power generation) shall be chosen and, if the moisture percentage is below 60
percent, the method of incineration and power generation only will be chosen.
3.2 Various Assessment of Necessary for Decision of Project

Contents
3.2.1 Waste Stream in Malang
This section sums up the generation, collection/transportation, extraction of valuable resources,
treatment (recycling), waste stream to final disposal facilities, and future view.
This study
implemented interview cleaning offices in with each city and Regency, relevant departments and
waste pickers visiting study for collection and TPS through 4 times studies.
Table 3-1
The 1st study
Study Plan
Target area for study
schedule
Malang city, Malang city TPS, Compost facility, TPA,
9/129/16
households and shops etc.

The 2nd study
Batu city, Batu city TPS, Malang Regency TPS, TPA etc.
10/310/7
The 3rd study
Waste picker study, Relevant recycling facilities, Malang city
10/3111/9
bureau of waste disposal, bureau of environment, bureau of

market, bureau of development, Malang provincial section of
park cleaning, bureau of public works, Malang provincial
bureau of agriculture, etc.
The 4th study
Malang city bureau of waste disposal, Malang provincial bureau

of waste disposal, provincial hospital
(Source: Compiled by Research Team)
3-5
11/2812/2
Figure 3-1
Malang city and Batu city

Batu city
Malang city
Malang Regency
(1) Malang City

1) Current Situation of Waste Stream
In Malang, waste generated from household is transferred to the final disposal site along with the
some portion of the waste especially valuables are taken and organic materials are taken for
composting.
Figure 3-2
Generation
Households
Flow of Municipal Solid Waste in Malang City

Collection
Extraction of
valuable
materials
Final Disposal
TPS
TPA
Markets/Shops
Composting
Facilities
3-6
2) Generation of Waste
Wastes are not separated in household, and after valuables materials are being extracted by
collectors, and the rest of the wastes will be brought into TPS.
The extracted valuable materials are plastics, cloth, glass (beer bottles), metals, zinc, and paper
(news paper, card cardboard and copy paper etc.)
3) Collection and Transport

Waste sources to TPS
Currently, there are more than 1,000 people called Yellow Trooper (YT) who collect and
transport waste in Malang City. The YTs are either hired by a community beforehand or hired
by Malang City. If the former is the case, the YTs collect waste from each household and
transport it to TPS.
Communities are responsible for collecting waste in each community and for transporting it to
TPS. Market Agency is in charge of markets waste, but the rest of the waste is transported by
the YTs.
Usually, waste is brought into TPS from communities by motorcycles with a 1.2 m3 container.
TPS to TPA
Malang cleaning office has 32collecting vehicles. Each track has a capacity of 45 m3 and
makes 3-5 trips per day.
Market Agency has collecting vehicles aside from the ones owned by Malang Garbage Office,
and they are used to transport waste to one of the TPSs.
4) TPS (Tempat Pembuangan (Sampah) Sementara)

There are 71 TPSs within Malang city. The largest TPS is called Asahaja and located near by the
high-income residential area. One of the TPSs is located in Guranel area which is near from
industrial area and some of the other TPSs have compost facilities. The current situation of TPS in
Malang city has been described as below.
i) Araya TPS
At the time of waste transportation into TPS, separation and extraction are implemented.
The waste of 32m3/d is accepted. The basic operation is made from extraction of valuable
resource by hand from waste transported by automobile and then loading of residues on a car
which goes to the disposal facilities by 1m3 woody container.
3-7
As the extracted valuable resources, there are plastics, papers, metals, bottles, and organic
wastes.
About 300 kg of metals and 3 ton of plastics are collected in 3 weeks.
The 25m3/d wastes (residues) are transported into the disposal facilities.
7 laborers are employed with 20,000 to 30,000 Rp with DSA and lunch.
Photograph 3-1
Photograph 3-2
Full view of Araya TPS
Separation of waste
(Source: Research Team)
ii) Malabar TPS
60 m3 wastes is accepted everyday.
There is a compost facility in this TPS and green waste from flower market, which is generated
about 1m3/d, is changed to the raw material for compost.
The green waste transported is
deformed and fed in a woody container.
50kg plastics and 10kgpapers are extracted by troopers.
3 waste pickers collect 25 kg waste, 35 kg of glass containers, 50 kg of cans, 1 kg of aluminums,

and 0.5 kg of copper per week.
3-8
Photograph 3-3
Photograph 3-4
Compost facility
Loading of wastes transported to disposal facility

5) Final Disposal Facility

Supit Urang TPA
The only one final disposal facility in Malang city is located in Supit Urang. This facility
accepts 400 to 450 tons of wastes per day with 15.2 hectors. The current disposal facility is
planned to expand with 25 hectors by the cooperation of GTZ, German.
A part of the wastes is transported into Supit Uran. Malang Regency and Malang city aim at
developing the common facility and cut down O&M cost.
In Supit Urang, compost is produced. The organic wastes are packed in the woody container
and then dried, and facilitated to ferment by inversing tops and bottoms every few days.
3-9
Photograph 3-5
Photograph 3-6
Supit Urang
Car for transferring belonged to Malang city
Photograph 3-7
Photograph 3-8
Compost facility in Supit Urang
Arrangement of final disposal facilities
(2) Malang Regency

1) Current Situation of Waste Stream
In Malang Regency, all of the household waste, market waste and restaurant waste and 10 % of
the industrial waste are transferred into TPA via TPS. The 90 % of the industrial waste are
transferred directly into TPA.
There are 5 TPAs in the Regency, 3 of which are main TPAs.
3-10
2) Collection and transportation

Market to TPA
In the Malang Regency, 7 cleaning offices are responsible for the 27 market, and the wastes
from these markets are directly transported into TPA without going through TPSs by car of each
cleaning office.
The total amount of the market wastes is 4,134 m3/month, and that of the household wastes is
6,660 m3/month.
TPS to TPA
The car transport without any waste on the container from TPA and with a pile of the waste on
it (the size of the containers is about 6 tons).
About 15m3 waste from CotaPakis district next to Malang city is transported into Supit Urangin
the Malang city, although there is no statistical data. The area has new apartment complexes,
and the residents pay for the cost to use the free space of collection track of Malang city.
3) TPSTempat Pembuangan (Sampah) Sementara
The Malang Regency is divided into 7 district boundaries, each of which has a cleaning office,
and in total, there are 52 TPSs.
Figure 3-3
Malang Regency and its 7 district boundaries managed by each cleaning office
3-11
Mulyoagung TPS
In the community, 4,000 households with 15,000 people are targeted to implement collection
and operate the facilities (separation and compost).
The waste is generated 35m3/d and collected everyday.
The amount of the waste is counted by
multiplying the bulk of the collection cart and frequency of transferring.
The separation is implemented among organic wastes (compost and forage), can (steel and
aluminum), cullet (3 colors), plastics, papers, clothes, and so one.
Tipping fee are collected 5,000 to 10,000 Rp/month.
There are 18 collecting laborers called as courier, who collect by a hand cart, bike with cart, and
micro track, and 31 separation laborers, in total 49 laborers. The 45 laborers are always
working and 4 are absent of the work.
Photograph 3-9
Photograph 3-10
Separation
A pile of collected matters
Photograph 3-11
Photograph 3-12
Resources after separation
Compost
3-12
There are 5 final disposal facilities in Malang Regency, 3 of which are operated. They can
accept 376m3/d of waste and concretely Randu Agung can 115m3/d, Talang Agung can
118m3/day, and PoncoKusumo can 143m3/d.
The transferring of prefectural capital of Malang Regency from Malang city to Kepanjen city is
planned.
One of the disposal facilities, Talang Agung TPA, is located in the center of
Kepanjen city, which raises the problem.
Open dumping will be banned in 2013, and as a measures to tackle with it 4 sanitary landfill sites
have been developed.
In Malang Regency, the each mayor in Batu city and Malang city has decided to treat widely.
Talang Agung TPA
This TPA is located near the center of Kepanjen city from Malang city, and the landfilling has
been started in 1997. There are 3 areas in the TPA and one of the areas has been already
closed. The depth of the TPA is about 9.5 m.
The ground water is located in the depth of 40m and environmental staff is doing water
analysis.
11 waste pickers are working there and plastics are collected 4 tons /week.
The machine to divide organic and non-organic matters is developed. The gas in the organic
matters is recovered and non-organic matters are recycled.
They have a 24kw gas engine
made by Toyota.
Photograph 3-13
Photograph 3-14
Full view of TPA
A pile of extracted staff

3-13
(3) Batu City

1) Collection and Transportation
The waste collection is made in some areas. If residents do not pay for tipping fee, collection
is not been done.
The residents whose areas wastes are not collected insist that the city should pay for the cost for
the waste collection even if they do not pay for the tipping fee. They dispose the waste in
rivers or collect by themselves and transfer to TPA.
There are 6 arm-roll cars and 6 dump tracks which are used for transferring. Each car can load 6
m3.
2) TPSTempat Pembuangan (Sampah) Sementara
TPS is used for storage and TPST is used for 3R activities.
There are some TPSTs in the city but they have not been operated due to economic crisis.
There are 3 Districts in Batu city and only one District has a final disposal facility.
wastes are generated everyday.
110 ton
Batu city is separated by Malang Regency on 17th November 2001. At the time of separation,
much difficulties about facilitating the structure are faced. Due to the separation, the final
disposal facility of Malang Regency cannot be used, and wastes were nowhere to go.
The final disposal facility was prepared in 2005, and at the same time, compost has been started
and at that time EM bacteria were used. Ferment duration is 20 to 50 days. At present, the
facility is closed.
At the final disposal facility, lime is sprayed as freshener.
The following final disposal facilities have been closed: Sisir (1977), Temas (1995), Dau (2002),
Agro(2009). The Tlekang has been changed to sanitary landfill since 2009.
Tlekang TPA
It was constructed with 15,000 million Rp by grant from state government.
The President
visited to see the situation when the town was called as waste town and special grant has been
provided. The land cost was 25,000/ m2.
3-14
The operation cost of the facility is 30,000,000 Rp/month, personnel expenses (selected staff) is
30,000 Rp/month, and personnel expenses (landfilling staff) is 50,000 Rp/month.
Photograph 3-15
Photograph 3-16
Full view of TPA
Resources extraction
3.2.2 Assessment of Waste Targeted by this project

(1) Survey on the Composition of the Waste Generated in Malang City
1) Purposes of the Analysis
Confirmation of the necessity for preprocessing for moisture adjustment
Securement of conditions for setting proper planning material balance
Securement of conditions for calculating calorific values and energy generated from waste
Securement of exhaust gas processing system setting conditions
Checking seasonal composition fluctuation (Analyzing twice, in dry season and in wet
season)
2) Analysis Targets
Collect samples from waste in dry season and wet season and obtain the composition ratio
of wet weight standard and dry weight standard and moisture data.
Elemental analysis of specimen of waste in dry season
3-15
3) Notes
It is important to secure the generality of sampling targets in the following points.
Handling the characteristics of the waste generated and seasonal fluctuation Sort out
household waste and market waste and collect samples of household waste from 3 TPS sections.
Furthermore, collect samples twice, for dry season and wet season.
Checking the volume of waste generated by type for combining sorted waste composition data
Check the ratio of the volume of household waste and the volume of the market waste by
examining the volume of waste delivered to the Supit Urang final processing site.
The concrete survey guidelines were formulated as follows and presented and explained to
executors:
Guidelines for Garbage Composition Survey (proposal)

Garbage sample picking
Garbage samples are taken randomly from one garbage collection truck from residential areas and
another from commercial district.
They are taken once in dry season (September at site survey)
and once in rainy season (November at site survey).
This means a total of 4 garbage samples are
taken.
The garbage samples are taken at following locations (same locations in dry and rainy seasons):
a) Market garbage picking site: Pasar Besar (market), TPS map No. 1
b) Household garbage picking site:
b1) Lowokwaru (residential area) TPS map No.15 (TPS where the biggest volume of garbage is
received)
b2) Marabal
(residential area)
TPS map No.36, composting facility attached (waste that is
composted is mainly green waste.)

b3) Tlogomas (residential area) TPS map No.25, composting facility exists
b4) Dinoyo (residential area) TPS map No.29, (adjacent to market in the future)
The samples from two locations, b 3) and b 4), are combined to make one sample (total of four
samples).
More than 100 kilograms of garbage gathered at TPS is taken.
1. Pretreatment of samples
100 kilograms of garbage samples are made smaller into the size of 15 centimeters with
shovels and scissors. Garbage wrapped in bags is taken out of the bag and big ones are
also made into smaller pieces in the same manner.
3-16
Use shovels to mix the samples to make them uniform.

The 100 kilograms of uniformly mixed samples are divided into four parts twice (as shown
below) to make a 25-kilogram sample.
1/4
1/4
1/4
1/4
1/4
1/4
Division
Mixing
50
100kg
25
2. Measurement of bulk specific gravity

Use the sample obtained in 2 above.
Fill the sample in a container with a capacity of approx. 60 liters without pressing it.
Drop the container horizontally about 30 centimeters from the ground and add the reduced
volume due to the compression.
Repeat the process three times and measure the weight
to obtain the bulk specific gravity.
Makeup analysis (measurement based on wet weight)

Use the sample obtained in 2 above (same as the sample obtained in 3: approx. 250 liters with
approx. 50 kilograms of samples and bulk specific gravity of 0.2 kg/L)
Spread the sample on a sheet (approx. 3m x 1.5 m) and classify them into the following nine items:
1) paper, 2) kitchen waste (scraps of food, vegetable and animal origins, etc.), 3) fiber, 4)
vegetation, 5) plastic, 6) rubber and leather, 7) metals, 8) diapers, 9) others (small matters that
cannot be classified)
Measure the weight of each category of garbage. Calculate the total weight of all categories of
waster (X) and calculate the makeup (xi) based on the wet weight to the total weight.
3-17
(Source: compiled by Research Team)
Figure 0-4
Examining the composition
Photograph 3-17 Sampling
Photograph 3-18 Sampled waste
4) Result of the Analytical Survey (Result of Waste Composition in Dry Seas: Dry Weight
Composition Ratio)
Raw garbage accounts for the largest part of waste in dry season for both household waste
and market waste, which is 50%, followed by plastics, which is 17%. In particular,
combustible waste accounts for 90% of household waste. High calories can be secured by
moisture adjustment. (Recovery of plastics by waste pickers needs to be taken into
consideration.)
The ratio of metals is low and recovery at the collection stage is expected. Development
of a recycling market is expected.
3-18
Figure 3-5 Result of the waste composition survey in dry season in Malang City (Dry weight
composition)
Metals, 0.6
Textile, 2.4
Leaves, 5.3

Di aper , 0.5
Stones, 2.6 Diaper, 2.3

Others, 0.2
M et al s, 0.4 St ones, 17.3
Ot her s, 0.0
Text i l e, 2.1
Paper, 14.7
L eaves, 4.2
Paper , 9.8
Food waste,
55.2
Plastics, 16.9
Food wast e,
49.1
Pl ast i cs, 16.6
Moisture:60.7
Moisture:55.4
(Source: Estimated by Research Team)
As shown below, the proportion of raw garbage is lower in wet season than in the dry season. For
market waste including paper, combustible waste accounts for more than 70%.
Figure 3-6 Result of the waste composition survey in wet season in Malang City (Left chart : Market
waste, Right chart: Mixed waste
Others, 7.0%

Pl ast i cs,
27.7%
Food waste,
17.3%
Plastics,
25.9%
Food wast e,
14.7%
Tr ees and
l eave, 14.0%
Trees and
leave,
9.5%
Textile,
12.7%
Diapers, 3.7%
Glas/metal,
16.8%
Text i l e,
1.6%
Di aper s, 0.3%
Gl as/met al ,
10.0%
Papers, 7.0%
Paper , 29.5%
St one, 2.1%
Moisture67.1
Moisture59.4
5) Water Content Ratio of Waste in Malang City

The analysis results of water content ratio of waste generated in Malang City are shown below.
The waste was analyzed twice, once in dry season (September) and once in rainy season (November).
Household waste and waste from market are analyzed.
The analysis method is shown below. Samples are picked in the method described in 3.2.2.
3-19
1. Measuring water content ratio

1)Measuring water content of segregated constitutes( this is to be done through laboratory work)
2)Using metal bucket, waste of each constitute need s to be dried for the research. Segregated
wastes shall be dried in the oven by 60 C temperature for 4 or 5 days in order to obtain stable
temperature wastes. For the household waste , whereas market waste which can be followed the
abovementioned procedure, 9 constitutes out of total are mixed together and appropriate amount
can be taken for the during purpose as the 4 samples are available.
3)Estimating each constitutes water content (wi) by measuring the weight of sample materials prior
to and after the drying process
4)Waste content can be estimated in the following formula
2.Adjusting samples subject to the analysis

1)Dried sample of each constitutes are subject to the analysis
2)By summing dried weight of each segregated items (x), composition of dried weight base (xi)
data can be estimated in the following formula
3) Each sample of the following categories except metals and incombustibles are cut into pieces of
2 to 3 cm and then reduced to about 500g.
1 Paper, 2 Kitchen garbage (food waste, plant origin, animal origin etc.), 3 Fibre, 4 Plants, 5
Plastics, 6 Rubber/Leathers, 7 Other (unrecognizable fines)
6 Rubber/Leather and 9 Other are excluded if the dry weight composition is less than 1%.
4) Each reduced sample is shredded into small pieces of less than 2mm.
5) The above shredded samples of are blended according to each composition ration and
a) Samples are blended according to the composition ration from, and the samples of unsorted
waste are used for the analysis in Chapter 7.
Through the research waste content of waste generated in Malang city are following;
Dry season: household waste 55.4% / market waste 60.7%
Rainy season: household waste 59.4% / market waste 67.1%

3-20
Table 3-2 Water Content Ratio of Waste in Dry Season (household garbage in upper tables and
market garbage in bottom tables)
Market waste
Type of Waste
1
2
3
4
5
6
7
8
Textile
Metal
Stone
Food Waste
Leaf and Tree
Diapers
Papers
Plastic 1
Plastic 2
Total
Initial
(kg)
0.255
0.090
0.255
2.045
0.575
0.320
0.710
0.555
0.100
4.905
End
(kg)
0.150
0.090
0.245
0.600
0.105
0.110
0.285
0.265
0.080
Initial
(kg)
0.210
0.095
0.155
2.545
0.445
0.260
0.505
0.105
0.505
0.210
5.035
End
(kg)
0.170
0.095
0.155
0.880
0.180
0.095
0.315
0.095
0.165
0.095
Type of Waste
1 Textile
2 Metal
3 Stone
4 Food Waste
5 Leaf and Tree
6 Diapers
7 Papers
8 Plastic
Moisture Moisture content

(kg)
(%)
0.105
41.2
0
0.0
0.01
3.9
1.445
70.7
0.47
81.7
0.21
65.6
0.425
59.9
0.310
47.3
2.975
60.7
Residential waste
Type of Waste
1
2
3
4
5
6
7
8
9
Textile
Metal
Stone
Food Waste
Leaf and Tree
Diapers
Papers
Others
Plastic
Plastic 2
Total
Type of Waste
1
2
3
4
5
6
7
8
9
Textile
Metal
Stone
Food Waste
Leaf and Tree
Diapers
Papers
Others
Plastic
Total
3-21
Moisture
(kg)
0.040
0.000
0.000
1.665
0.265
0.165
0.190
0.010
0.455
2.790
Moisture content
(%)
19.0
0.0
0.0
65.4
59.6
63.5
37.6
9.5
63.6
55.4
Table 3-3
Water Content Ratio of Waste in Rainy Season (household garbage in upper tables and
market garbage in bottom tables)
The weight of a container has been deducted.
Initial (kg)
Household
Food waste
Trees and leave
Textile
Others
Glas/metal
Diapers
Wet weight
basis
2.120
1.515
1.280
0.370
0.790
0.609
End (kg)
31.7%
22.7%
19.2%
5.5%
11.8%
9.1%
Dried weight Moisture Moisture

basis
(kg)
content
0.700
0.385
0.515
0.285
0.680
0.150
6.684
25.8%
14.2%
19.0%
10.5%
25.0%
5.5%
2.715
1.420
1.130
0.765
0.085
0.110
0.459
3.969
67.0%
74.6%
59.8%
23.0%
13.9%
75.4%
59.4%
The weight of a container has been deducted.
Initial (kg)
Market
Food waste
Trees and leave
Textile
Paper
Stone
Glas/metal
Diapers
3.345
1.855
0.100
3.760
0.090
0.440
0.040
9.630
Wet weight
basis
End (kg)
34.7%
19.3%
1.0%
39.0%
0.9%
4.6%
0.4%
Dried weight Moisture Moisture

basis
(kg)
content
0.645
0.615
0.070
1.290
0.090
0.440
0.015
3.165
20.4%
19.4%
2.2%
40.8%
2.8%
13.9%
0.5%
2.700
1.240
0.030
2.470
0.000
0.000
0.025
6.465
80.7%
66.8%
30.0%
65.7%
0.0%
0.0%
62.5%
67.1%
(2) Survey on the TPA Haulage Volume in Malang City

Survey was conducted on the volume of waste delivered to the Supit Urang final processing site in
Malang City by trucks for one week from November 10 to November 16. Before the commencement
of the survey, the implementation manual and the material describing the measuring methods were
prepared for the collaborator (Brawija University) to ensure the continuous implementation of the
correct measurement. The contents of the manual are outlined below.
3-22
Outline of the Waste Haulage Volume Counting Manual
Objectives
Examine the following quantitative data for pre-FS of the waste-derived fuel power generation
project.
Volume of waste delivered to the Supit Urang final processing site
Volume of household waste and the volume of market waste as the breakdown of
Method of examining quantitative data
Estimate the quantitative data to be examined from the count data such as waste haulage
volume as shown below.
Volume of waste delivered to the Supit Urang final processing site
Examine the number of delivery vehicles to the Supit Urang final processing site
and the volume of waste loaded on the vehicle and estimate the volume using the
formula shown below. To estimate the specific weight of waste, use the specific
waste of each waste type (household waste: 0.225t/m3 and market waste: 0.225t/m3)
that is obtained by the waste composition survey.
Volume of waste delivered to the final processing site (t/day) = Number of delivery
vehicles (units/day)
x Vehicle load capacity (m3/units) x specific weight of waste (t/m3) Formula
Volume of household waste and volume of market waste as the breakdown of
Check from which TPS or TPST, or market the delivery vehicle delivered waste to the
Supit Urang final processing site (question). Then sort the number of vehicles that
delivered household waste and the number of vehicles that delivered market waste as the
breakdown of the number of delivery vehicles based on the characteristics (residential
area, commercial area, or others) of the waste primary commutation area (hinterland).
Estimate the volume of the household waste and the volume of market waste using
formula in each classification.
Information to be examined at the Supit Urang final processing site

a) Number of delivery vehicles
b) From which TPS, TPST, or market was the waste delivered?
c) Load capacity of the vehicle (for the vehicles that are normally used as waste delivery
vehicles, the load capacities are to be checked in advance; check also the load capacities of
other vehicles.)
d) Reference other waste delivery volume records that are available.
Method of checking information at the Supit Urang final processing site

1)
At delivery entry, in front of the management building (referred to as the survey

point, of the Supit Urang final processing site, assign [3 members (1 record keeper,
1 member to visit TPS, TPST, or market (interviewer), and 1 photographer)].
2)
When a waste delivery vehicle passes through the survey site, the [interviewer]
requests the driver to stop.
3)
The [record keeper] records the details of the vehicle number plate.
4)
The [interviewer] asks to the driver from which TPS, TPST, or market the waste was
delivered and the characteristics of TPS or TPST]. The [record keeper] records the
3-23
information. For the vehicle whose load capacity has not been checked, ask its load
capacity.
5)
The [photographer] takes a photograph of the packing (vehicle model and the number
plate must be able to be checked).
Waste delivery record form
Name of record keeper:

Time
Vehicle
Date:
Month
Day (page
Name of interviewer:
Driver name
number
Name of photographer:
Vehicle load capacity
TPSTPST
(check the capacity in
Market name
TPSTPST
Characteristics
advance for the vehicle

whose capacity can be
assumed)
For more accurate measurement of the volume of waste that is delivered, strict adherence to the
following procedure was requested at the measurement of the volume of the waste loaded inside and
above the loading platform of the vehicle.
Measurement of loading platform 1: Position a tape measure from the bottom right (left) side
of the loading platform of the truck to the bottom left (right) side and measure the length (red
line that is drawn from one point to the other point). The tape measure must be placed at a
right angle to the line at the bottom of the platform.
A: Circumference determined assuming the section of the load overflowing the loading
platform as the half of the ellipse viewed from the front or rear of the truck. The
circumference is approximated by(a+b). a refers to the short radius and b refers to the
long radius.
Measurement of loading platform: Measure 3 sections that are overflowing from the loading
platform at the top.
R: Short radius of ellipse A
S: Half of the ellipse area

3-24
V11: Volume of the load overflowing from the loading platform. The section is assumed to
form a barrel shape.
V1: Volume estimated in Step 1.
V21: Volume of the load overflowing from the loading platform. The section is assumed to
form a rectangular parallelepiped
Figure 3-7
Procedure for measuring volume of waste
Load above the truck =half elliptical cylinder

=total volume of waste
Flank
Waste collection truck
Back view
height
length
Truck load bed=Low-height square
Measuring load bed

Measuring bottom of the bed to the
other side by crossing the scale
shown in the above diagram
A=measuring figure-height of load *2
Area square half of

elliptical shape=S
Area square half of

elliptical shape=S*flank
Measuring half size elliptical shape of its

circumference shown in the above.
Circumference is (a+b) in which a is short
radius and b is longer radius
Photograph 0-19
Measuring the volume of waste according to the procedure

3-25
The table below shows the result of the TPA waste haulage volumes that were measured according
to the procedure indicated above. The haulage volume of the 4th day is low because it was Sunday.
Table 3-4
TPA waste haulage volume survey result (November 10 to November 16: 1 week)
Day1
10th
Thu
Item
Waste
haulage
volume
(m3/d
No. of
delivery
vehicles
(units/d)
Day2
11th
Fri
Day3
12th
Sat
Day4
13th
Sun
Day5
14th
Mon
Day6
15th
Tue
Day7
16th
Wed
Total
975
961
990
474
1,002
957
925
6,284
105
101
112
64
111
103
106
702
Based on the survey result, the daily average is 9003/d6,2847and the result of conversion to
weight is as follows.
9000.375338t/d
Where, 0.25: Specific weight of the waste loaded on the vehicle (t/m3) 18
(3) Waste Management status of Malang City

The diagram below shows the data of the waste volume that is managed by Malang City in 2011 in
each TPS that is assigned in 71 sites.
Figure 3-8
Source of waste
Waste volume management procedure in TPS units (assumption)

1
TPS
TPA
Check the TPS waste haulage volume by managing the number of waste delivery vehicles
that deliver waste from each source to TPS (number of vehicles x load capacity).
Check the volume of waste taken out from TPS by managing the number of vehicles used
for taking out waste from TPS (number of vehicles x load capacity).
18
Set based on the specific weight of waste 0.256t/m31t3.9m3by the Ministry of Public Works, Central
Government (based on the interview)
3-26
Table 3-5 Volume of Waste in TPS in Malang City (2011)

Average
Waste
brought in TPA (m3/d)y
Waste
brought in
No
Mon
Tue
Wed
Thu
Fri
Sat
Waste
Waste
daily
brought TPA
brought
TPS
weight
in3TPS
in3/
TPA
/
3/
3/
Sun
(m3/d)
(m3/d)
Number
RW
of RW
(m3/d)
TPSAraya
32
32
32
32
32
32
32
32
31
28
TPS Ashahan (Lowokwaru)
80
60
60
60
60
70
40
61
59
52
40
TPS Boldi
21
20
20
20
20
20
15
19
19
17
TPS Cakalang
39
39
39
39
20
39
20
34
32
28
17
TPS Grendel
14
14
14
14
14
13
13
12
11
TPS Kesatrian
13
13
13
13
13
13
13
13
12
11
TPS Narotama*
24
24
24
24
24
26
22
24
23
20
TPS Pandanwangi*
18
18
18
18
17
18
17
18
17
14
9
10
TPS Perum Karanglo Indah(Karanglo
TPS Perum River Side
11
TPS Stadiom Blimbing (Blimbing )
28
28
28
28
28
28
28
28
27
24
12
TPS Sulfat()
26
24
24
24
24
23
24
24
23
21
13
TPS Teluk Pacitan(Pacitan)*
23
21
21
21
21
20
21
21
20
17
14
TPS Werkudoro
35
33
30
30
30
30
30
31
30
27
9
10
15
TPS Brabtas
33
33
33
33
33
32
30
32
31
28
16
TPS Dr. Wahidin
10
10
10
10
10
10
10
10
10
17
TPS Gadang KomposGadang*
54
54
54
54
54
54
48
53
51
44
11
18
TPS Kartini
25
24
24
24
24
24
13
23
22
19
19
TPS Malabar*
60
60
60
60
60
60
40
57
55
48
33
20
TPS Rampal Celaket
24
24
24
24
24
24
24
24
23
21
11
21
TPS Seram
40
38
37
34
32
39
21
34
33
28
15
22
TPS Wilis
105
70
70
70
70
70
35
70
67
60
23
TPS Bratan
56
41
41
41
41
41
40
43
41
37
26
24
TPS Buring
22
22
22
22
22
22
20
22
21
19
25
TPS Cemoro Kandang (Cemoro)
26
TPS Cempaka Putih()
13
13
13
13
13
13
13
13
12
11
27
TPS Dirgantara ()
24
23
23
23
23
23
23
23
22
20
28
TPS Kedung Kandang()
29
TPS Kwangsang
35
30
28
28
28
28
21
28
27
24
10
30
TPS Muharto
18
18
18
18
18
18
10
17
16
14
31
TPS Velodrom*
42
37
37
37
37
37
22
36
34
29
13
32
TPS Gadang Terminal (Gadang )
25
25
25
25
25
25
25
25
24
21
12
33
TPS Gadang KomposGadang*
49
44
44
44
44
44
22
42
40
33
11
34
TPS Cianjur()
30
30
30
30
30
30
10
27
26
23
35
TPS Dinoyo
22
20
20
20
20
20
17
20
19
17
36
TPS Jatimulyo*
17
15
15
15
15
15
15
15
15
12
37
TPS Kanjuruhan
11
12
11
11
11
11
10
38
TPS Ketawang Gede
19
19
19
19
19
19
15
18
18
16
39
TPS Merjosari
10
10
10
10
10
10
10
10
10
40
TPS Sumber Sari)
33
28
28
28
26
28
26
28
27
24
41
TPS Tasikmadu
42
TPS Tawangmangu
50
30
30
30
35
35
30
29
26
43
TPS Tlogomas*
22
22
22
22
22
22
22
22
21
18
44
TPS Tunggul Wulung
10
10
10
10
10
10
10
10
10
45
TPS Tunjung Sekar
13
13
13
13
13
11
12
12
10
46
TPS Tasikmadu RW.(Tasikmadu 1)
47
TPS Tanjung
24
21
21
21
21
21
22
22
21
18
18
2
48
TPS Bakalan Krajan
49
TPS Bandulan
17
17
17
17
17
17
16
17
16
14
50
TPS Bentoel
19
19
19
19
19
19
10
18
17
15
11
51
TPS Comboran
20
18
18
18
18
18
15
18
17
15
52
TPS Dieng Atas
10
10
10
10
10
10
10
18
18
18
18
17
18
18
18
17
15
53
TPS Karang Besuki(Besuki )
54
TPS Karang Besuki (Gasek) (Besuki )
55
TPS Keben
56
TPS Klabang
57
TPS Klayatan Gg.2
12
12
12
12
12
12
12
12
12
10
58
TPS Manyar*
40
30
30
30
30
30
27
26
22
12
6
59
TPS Mulyorejo
10
10
60
TPS Raya Langsep (Langsep)
13
13
13
13
13
13
12
13
12
11
61
TPS SPI
62
TPS Tidar
26
26
26
26
15
26
15
23
22
20
1 .4 9 2
1 .3 5 3
1 .3 4 8
1 .3 4 4
1 .3 1 3
1 .3 5 9
1 .0 1 8
1 .3 1 8
1 .2 6 5
1 .1 1 3
492
3-27
The data that is shown in the above table is restricted to the waste that is delivered to TPA via TPS
from each source. Therefore, the volume of waste that is directly delivered to TPA from the source is
included. The waste that is generated from markets is transported (delivered) to TPA directly by the
Bureau of Market.
The average volume of waste that is generated daily, which is 400t/d as announced by Malang City,
is assumed to be a total value of the data that is indicated in the above table.
Consequently, 400t/d refers to the volume of waste delivered via TPA and is mainly generated from
households and it is assumed that some waste including market waste is delivered without involving
TPS.
(4) Assessment of Waste Volume Management Data

Data of TPS Ashahan (Lowokwaru) was focused on due to its highest volume of waste among the
waste volume data in each TPS that was described in the previous section. By comparing the waste
volume data that is managed by Malang City and the TPA waste haulage volume survey result, the
daily average waste volume of 400t/d is assessed for the entire Malang City.
Table 3-6 Comparison of waste volume data of TPS Ashahan (Lowokwaru)

Day1
Day2
Day3
Day4
Day5
Day6
Day7
Ave
Total
10th/Nov. 11th/Nov. 12th/Nov. 13th/Nov. 14th/Nov. 15th/Nov. 16th/Nov.
/week)
Thu
Fri
Sat
Sun
Mon
Tue
Wed
m3/d
Waste brought in(m3/d)
m3/d
46
41
47
18
34
40
42
268
38
Number of trucks(unit/d)
/d
4
4
4
2
4
4
4
26
Waste brought in TPS

TPS
60
60
70
40
80
60
60
430
61
Waste brought in TPS
TPS
59
Waste brought in TPA
TPA
52
Item
Estimated
through the
current study
Waste date
provided by
Malang
m3/d
Since the table shows the approximate correlation of the trend of waste for one week, the volume of
waste generated during the TPA haulage volume survey period is assumed to represent the general
state. Therefore, it is reasonable to assume that the daily average of waste is 338t/d.
(5) Ratio between the Volume of Market Waste and the Volume of Household Waste in Malang City
1) TPA Waste Haulage Volume Survey Result (Volume of Waste by Source)
The table below shows the volume of waste by source that was obtained from the TPA waste
haulage volume survey result. The ratio of volume of market waste (including the food waste from
3-28
shopping malls) to the volume of household waste was 11% (561.35,061.0100). This figure was
employed to estimate the volume of the waste brought into directly TPA without being treated at
TPS. With this taken into consideration, the waste from market which directly brought into TPA
without treated at TPS can be roughly estimated 40t/d.
Table 3-7
TPA waste haulage volume survey result (November 10 to November 16: 1 week)
2) Volume of Waste Managed by the Bureau of Market in Malang City and Volume of Waste
Managed by the Bureau of Public Cleansing
Market waste in Malang City is directly collected and transported by the Bureau of Market.
Therefore, the volume of market waste is managed by the Bureau of Market. The daily average
volume of market waste (TPA waste haulage volume) for the period from January to October 2011 is
179.1m3/dweight conversion value under 0.25t/m3 is 44.8t/m3. The volume of waste managed by
the Bureau of Public Cleansing via TPS is 400t/d. Based on this information, the ratio of the volume
of market waste to the volume of waste managed by the Bureau of Public Cleansing is 11% (
44.8400.0100). As this figure is almost same amount to the weight which brought direcly into
TPA without treated at TPS, estimated 40t/d data can be understood the appropriated figure.
(6) Volume of waste generated from Malang Regency

1) Volume of waste in Malang Regency by Waste Collection Office
In Malang Regency, 33 districts (Kecamatan) are classified into seven regions and transportation of
waste to TPA is managed by assigning a waste collection office in each region. The table below
3-29
shows the TPA waste haulage volume (2010) that is managed by Malang Regency through each
waste collection office.
Table 3-8
TPA waste haulage volume by waste collection office in Malang Regency (2010)
Waste collection office
a) Total waste volume(m3)
b) Total waste volume (t/d)
b=a/7*0.21
IUPTD SINGOSARI
459
13.8
IIUPTD TUMPANG
313
9.4
IIIUPTD TUREN
300
IVUPTD BULULAWANG
246
7.4
VUPTD KEPANJEN
396
11.9
VIUPTD PAGAK
70
2.1
VIIUPTD PUJON
52
1.6
VIIIPUSAT
65
1901
57.2
Grand total
(Source: Data based on the waste field survey in Malang Regency in 2009 (based on the Survey Overview Version))
2) Ratio of the Volume of Market Waste to the Volume of Other Waste

Waste generated from the markets in Malang Regency is also delivered to TPA with waste delivery
vehicles that are managed by each waste collection office. The table below shows the volumes. The
ratio of the volume of market waste to the volume of other waste is 81% in the entire Regency,
which is quite high. In terms of the proportion by waste collection office, the volumes of waste
collected in two waste collection offices, UPTD TUREN and UPTD PAGAK, exceed the
volume of other waste. Since the waste transportation service is provided as the compensation
for the payment of Tipping Fee, the markets that have the necessary fund have the priority for
collection and transportation.
3-30
Table 3-9
Ratio of the volume of market waste to the volume of other waste in Malang Regency
(2010)
Total waste
volume
Waste collection office
(m3/ week)
Volume of
market
Ratio of
Volume of other
volume of
waste
market waste
(m3/week)
to volume of
waste
(m3/week)
other waste
c=a-b
d=b/c
UPTD SINGOSARI
459
212
247
85.8%
UPTD TUMPANG
313
150
163
92.0%
UPTD TUREN
300
179
121
147.9%
246
114
132
86.4%
396
110
286
38.5%
VIUPTD PAGAK
70
63
900.0%
VIIUPTD PUJON
52
52
0.0%
VIIIPUSAT
65
65
0.0%
1849
828
1,021
81.1%
IVUPTD
BULULAWANG
VUPTD KEPANJEN
Grand total
(Source: Organized the data provided by Malang Regency)
(7) Volume of Waste in Batu City

1) Daily Average of the TPA Waste Haulage Volume in Batu City
An average of 2453weight conversion 61t/d2450.25
of waste is delivered to TPA daily
from Batu City. This volume of waste is collected from 16 villages (Kelurahan) of the 24 villages in
the City.
2) Ratio of the Volume of Market Waste to the Volume of Other Waste

The volume of waste generated from the entire city of Batu including the uncollected waste is
estimated to amount to 475m3/d and the following table shows the breakdown of the source.
3-31
Table 3-10 Breakdown of the estimate of the volume of waste generated from the entire city
including the uncollected waste
NO.
Source
Household
Volume of waste
(m3/d)
Ratio
297
62.5%
Market
56
11.8%
Hotel
36
7.6%
Office
1.7%
32
6.7%
1.7%
16
3.4%
1.3%
12
2.5%
0.8%
475
100.0%
Public
facility
Industry
Road
School
Restaurant
10
Hospital
Total
(Source: Organized the data provided by Batu City)
(8) Volume of Waste Targeted by This Project

1) Target Districts from Which Waste is Generated
The waste generated from the districts within about 30km radius from the planned site is targeted by
this project, considering the collection and transportation efficiency. In this case, the following
districts are targeted by this project.
1
Malang City: Entire area
Malang Regency: 4 waste collection offices(UPTD SINGOSARI,

UPTD TUMPANG, UPTD BULULAWANG, UPTD KEPANJEN)
Batu City: Entire area
The geographical relationships of those four planned collection offices (UPTD SINGOSARI,
UPTD TUMPANG, UPTD BULULAWANG, UPTD KEPANJEN)are illustrated in the
Figure below.
3-32
Figure 3-9
Malang Regency waste collection office located near the periphery of Malang City
(Source: Research Team (based on the map provided by Malang City))
2) Current Volume of Waste Generated from the Target Districts

The following table shows the districts whose volumes of waste (TPA waste haulage volume) are
targeted by this project. The waste amount which is targeted for this project is 441.5t/d as shown in
the following table.
Table 3-11 TPA waste haulage volume in the districts targeted by this project (current)
Government
Malang City
Regency
Volume of market waste
waste (t/d)
(t/d)
b
338
20.5
13.8
6.4
UPTD TUMPANG
9.4
4.5
UPTD BULULAWANG
7.4
3.4
UPTD KEPANJEN
11.9
3.3
Sub-total
42.5
17.6
61
5.5
441.5
43.6
UPTD SINGOSARI
Malang
Volume of
Batu City
Grand total
(Source: Data based on the waste field survey by the Research Team)
3-33
3) Volume of Waste Targeted by the Plan

The planned volume of waste for 2020 as the target year is estimated below (5th year from the year
of the operation commencement of 2016).
The following fluctuation factors are considered for the volume of waste in the future.
- Population fluctuation
- Improvement in source units by improvement of economic activities and living standard
- Collection rate (ratio of the volume of waste that is collected to the volume of waste generated
that requires proper processing)
Each of these factors is examined below.
Population fluctuation
The following table shows the rates of increases that were estimated from the population data in
the vicinity of the project target districts.
Table 3-12 Population increase in the districts targeted by this project
(Source: Organized the data provided by Malang City)
Improvement in waste source units

The waste source unit in Jakarta, which is the capital of Indonesia, is changing by about 0.45kg
person per day according to the waste collection outline provided by the Bureau of Public
Cleansing of the provincial government. In contrast to this, the project target districts, 0.5kg per
person per day (Malang City) that is set by the Department of Public Works of the Central
Government or 2.09 liters per person per day (Malang Regency, weight conversion 0.44kg per
person per day (20.9 x 0.21)) that is determined by its own survey is applied as the source unit
3-34
at the estimate of the volume of waste including the uncollected waste. These source units are
generally considered to be appropriate in comparison to the value for Jakarta.
The impact on the volume of the waste targeted by this project is expected to increase towards
the planned target year due the improvement of the source unit. However, the collection
capacity must follow as the precondition for these improvements to have any impact on the
volume of waste in this project. Therefore, in this examination, the impact of the improvement
of the source unit is included in the improvement of the collection rate.
Improvement of collection rate

The following table shows the current collection rates of the districts targeted by this project.
Table 3-13 Current collection rates of the districts targeted by this project
Government
Malang City
UPTD
SINGOSARI
Malang
UPTD
Regency
TUMPANG
Supid
UPTD
Urang
BULULAWANG
30km
UPTD
radius
KEPANJEN
Sub-total
Batu City
Grand total
Waste
TPA
source Volume Volume
Increase
waste
of waste of waste Collecti
unit
haulage Population factor
(kg/pers generate recycled on rate
*1
volume
d (t/d)
on per
(t/d)
(/d)
day)
=a
a
b
c
d
e2
g
g/e
338
816,637
0.25
0.45
459
60
86.7%
13.8
343,344
0.00
0.44
151
9.1%
9.4
373,571
0.00
0.44
164
5.7%
7.4
347,065
0.00
0.44
153
4.8%
11.9
510,582
0.00
0.44
225
5.3%
42.5
61
441.5
1,574,562
211,929
3361053
0.00
0.25
0.45
693
119
1,271
6.1%
51.3%
34.7%
*1: Factor taking the impact of students and tourists into consideration in addition to the
registered population
*2: eb(1+) d 1000
(Source: Organized by the Research Team based on the field study)
3-35
The above table shows almost 50% of collection rate for Malang City and Batu City, however,
the collection rate of Malang Regency is 5% to 10%, which is quite low. Malang Regency
covers a wider area than the two cities and is under disadvantageous conditions in terms of
collection rate such as these due to population density. However, since the target districts were
restricted to the four waste collection office districts only that are close to the project plan site,
the impact is considered to be small. Even in comparison to Batu city, there is no substantial
difference in terms of the area and population under the control of the waste collection offices.
Therefore, the data of the volume of waste managed by Malang Regency could be quite
different from the actual data.
4) Volume of Waste Targeted by This Project

For the volume of waste targeted by this project, the population increase and improvement of
collection rate are examined considering the above fluctuation factors.
Population increase: Increase rates that are shown in Table 3-13
Collection rate: Malang City and Batu City: Improvement by 10 points from the current
condition
Malang Regency: Since waste volume data management is attributed to the
current low collection rate, the collection rate is assumed to be a half
of the collection rate of Batu City that has similar area and population
under the control of each waste collection office.
Although the current collection rate is 6.1%, based on the assumption of the
annual increase of 2.5%, the rate will be 31.1% by 202035% is
assumed.
Based on the above data, the volumes of waste that are targeted by this project are assessed as
follows.
3-36
Table 3-14 Target waste volume (2020)
Government
Populatio
Increase
factor
Waste
Recycling
source
rate Not Collection
unit
WtE
(recycling
kg/perso
, WtE
n per day
a
Malang City
UPTD
SINGOSARI
UPTD
Malang
Regency
TUMPANG
UPTD
BULULAWANG
UPTD
KEPANJEN
Sub-total
Batu City *2
Grand total
915,082
0.25
0.45
15%
95.0%
405,348
0.00
0.44
5%
35.0%
422,900
0.00
0.44
5%
35.0%
374,474
0.00
0.44
5%
35.0%
566,350
0.00
0.44
5%
35.0%
1,769072
0.00
0.44
5%
35.0%
234,101
0.25
0.45
5%
65.0%
2,918255
WtE
processing
volume
(t/d)
e1
412
234
79
725
*1: e(1b)c(df)1,000
*2: The population increase rate and waste source unit of Batu City were assumed to be
equivalent to those of Malan City.
The mass balance when market waste is composted by a separate line is shown below as the
guideline.
3-37
Table 3-15
Material balance when market waste is composted by a separate line

Government
Volume of
Volume of
Volume of
waste
market waste
other waste
Government
Malang City
Malang
Regency
412
37
375
UPTD SINGOSARI
54
49
UPTD TUMPANG
56
51
UPTD BULULAWANG
49
45
UPTD KEPANJEN
75
68
234
21
213
79
72
725
65
660
Sub-total
Batu City
Grand total
Volume of
Item
waste
To the waste
Flammable waste
25 generation power
facility
Nonflammable
Market waste sorting and
composting line
waste
Compost products
16 Disposal site
13 Used in parks*
Volume
reduction/resource
12
recovery
*The park area in Malang City covers 8ha. If composting at 1~2t/10 y is required and 1 ha out of 8
ha is green space, compost of 10 to 20 t/y is required.
Based on the data above, 685t/d of waste is treated at a waste incineration and power generation
facility.
The operating rate and turned waste disposal are taken into consideration in formulating a
waste disposal facility plan with the capacity of 800 t/d (400 t/d x 2 furnaces).
3-38
3.2.3 Technical Considerations

As summarized in the previous section, it is found that, contrary to expectations, the moisture
content of household waste remained at the 50% level, and the moisture content of market waste was
more than 60%. Therefore, in regard to household waste, the total incineration was adopted instead
of using the techniques of mechanical sorting along with composting to reduce the moisture content.
On the other hand, in terms of quantity, market waste is less than 10% of household waste, so it does
not have a significant impact on the total moisture content. However, since there is a certain amount
of demand for composting, market waste is composted as a part of the recycling promotion, and its
combustible residues are used for incineration generation.
Among the incineration systems, the fluidized-bed incineration furnace requires crushing of waste
before injecting it in the furnace and metals and large lumps may be bit into the crusher. Thus,
introducing the system before the sorting is ensured may cause some trouble.
Although the
kiln-stoker system is suitable to incineration of industrial waste that contains various substances, the
combustion efficiency is not good for urban waste and the power generation efficiency does not
improve, either.
As for the RDF system, RDF production requires a large volume of energy to treat
waste that is not sorted or waste with high water content and thus the total efficiency including the
production and incineration is not good.
As a result, the stoker system that has been most frequently introduced for urban waste incineration
furnaces and that does not require any special operation technique is most suitable.
Project is examined based on an assumption of introducing a stoker furnace
3-39
Thus, the
Table 3-16 Comparison of Incineration Systems

Stoker
Fluidized-Bed
Kiln-Stoker
Stoker
Principle
Waste is placed on the fire grate and

burned with the air sent from below the
fire grate sequentially. As shown in the
illustration above, the stoker incineration
furnace is in three levelsone for
drying, one for combustion and one for
complete incineration of unburned waste.
As shown in the illustration above, bed

material (fluid sand) is in the furnace of the
fluidized-bed incineration furnace. The sand
is heated up to around 650 to 800 and the
heated sand is fluidized with wind pressure
(approx. 1,500 mmAq to 2,500 mmAq) and
crushed waste is combusted in a short time.
The crushed waste is approx. 10 to 30
centimeters in size although it varies in
accordance with the type of furnace.
As shown in the illustration above, the rotary

furnace itself is the waste combustion zone.
The rotary furnace rotates two to three times
per hour to dry and burn waste sequentially
and unburned waste is completely
incinerated in the post-combustion stoker
level.
Features
Waste of more than approx. 900kcal/kg

can be incinerated without fuel. Its
capacity is up to 3,500kcal/kg.
Waste of more than approx. 900kcal/kg can be

incinerated without fuel. Its capacity is up to
5,000kcal/kg.
Waste needs to be crushed. It generates a
large amount of fly ash. Easy starting and
turning off.
Waste of more than approx. 900kcal/kg can be

incinerated without fuel. Its capacity is up to
6,000kcal/kg.
Although its combustion efficiency is low, it
can handle a variety of waste.
Structure
(Source: Japan Industrial Publishing Co., Practice of Designing Fluidized-bed System Waste Incinerators)
3-40
Table 3-17 Comparison of Gasification Melting and RDF Systems

Shaft Gasification Melting
Fluidized-Bed Gasification Melting
RDF
Structure
Principle
It is based on the blast furnace technology for iron

Waste is heated at around 450 to 600 in the reducing
manufacture. It has a structure of vertical shaft furnace
condition and decomposed into pyrolysis gasification and
and drying, gasification and melting is all performed in
charcoal (hereinafter referred to as char). Pyrolysis gas
one furnace.
and char are used as heat sources for melting in the melting
Waste is injected together with coke and limestone from
furnace in the back stage.
the upper area of the furnace.
The technology of fluidized bed furnace that is used also for
Waste dries when it falls from the top to the bottom of the
incineration disposal is used for the pyrolytic furnace where
furnace and combustible content is thermally decomposed
waste is thermally decomposed.
and gasified and incombustible component is melted at
Such incombustible as aluminum, steel and wreckage is
the bottom of the furnace and taken out as slag.
removed from the bottom of the pyrolytic furnace.
Pyrolysis gas is completely combusted in the combustion Rotary melting furnace is used for the back-stage melting
room in the back stage from the furnace top.
furnace.
RDF is solidified waste fuel manufactured

by finely crushing, drying, and processing
domestic and other general combustible
waste. It is about 15 to 50mm in diameter
and heat value is 3,000 to 4,000 kcal/kg. It
is used as fuel for heat supply and power
generation.
Features
Coke is required.
RDF manufacturing process is shown.

Thermal use depends on the users system.
1,500kcal/kg to 2,000kcal/kg is required for melting without

supplemental burning.
(Source: Japan Industrial Publishing Co., Practice of Designing Fluidized-bed System Waste Incinerators)
3-41
3.3 Project Plan Overview

As a project plan overview, concept design and specifications of applied facility is described below.
3.3.1 Waste Incineration and Power Generation Facility

The facility consists of two furnaces with treatment capacity of 400 tons per day per furnace based
on 3.2.3. The furnace is designed to have daily capacity of over 400 tons steadily and operate more
than 8,000 hours per year.
Waste brought in is part of plastic waste sorted by waste pickers and residues brought in from
compost plants.
Incinerating waste that has been treated as landfill disposal means sanitary
disposal and reduction of waste, while exhaust heat generated from waste combustion is collected by
the boiler to be used for power generation with steam turbines. The generated power is consumed
on the site and surplus power is sold to a power company via local electricity network. In the
process, combustion is controlled to make small fluctuation of steam generation volume so that
energy of generated steam can be used efficiently.
The main facility of the plant is one system of one furnace. A reserve units of pump and equipment
that is important being used by two furnaces are planned. The makeup of main facilities is shown
in Charts 3-10 and 3-11 and below.
(a) Receiving and feeding equipment:
weighing building, waste storage yard, pick-and-crane
system
(b) Combustion facility: Stoker furnace (consisting of receiving hopper, combustion equipment,
and combustion furnace, etc.)
(c) Combustion gas cooling facility:
consisting of exhaust heat boiler, condenser and boiler
ancillary facility, etc.

(d) Exhaust gas treatment facility:
consisting of cooling tower, bag filter, and hazardous gas
removal unit
(e) Residual heat utilization facility: consisting of condensing extraction steam turbine, power
generator, and steam heat exchanger, etc.
(f) Ventilation system: consisting of air duct, gas duct, air blower, ventilating fan, and chimney, etc.
(g) Ash removal facility: consisting of bottom ash discharge conveyer, other conveyers, bottom ash
storage yard, fly ash silo, and kneading machine, etc.
(h) Water supply facility: consisting of pumps for well water, cooling water and recycled water and
water tanks, etc.
3-42
(i) Electric facility: consisting of high-voltage incoming panel, emergency power source, power
distribution and input and other facilities
(j) Instrumentation equipment: centralized monitoring automatic operation control system
(k) Miscellaneous facility:
consisting of fuel tank, air compressor, various receiver tanks, etc.
3-43
Figure 3-10
Flow Sheet of Waste, Air, Bottom Ash and Fly Ash
3-44
Figure 3-11
Flow Sheet of Exhaust Gas Treatment Facility
3-45
The waste incineration and power generation facility consists of the facilities explained above. Main
facilities are described in detail below.
(a) Waste System

Waste brought in by a garbage truck is weighed with a weigh machine and stored temporarily at the
waste storage yard.
After the picking work by waste pickers, it is put in the waste pit with the
wheel loader and moved and mixed with the waste crane.
Waste in the waste pit is put from the waste hopper to the incineration furnace with the waste crane
and sent on the fire grate sequentially to be dried, combusted and completely incinerated.
(b) Combustion air System

Combustion air is sucked in from the waste pit and the malodorous components in the waste are
dissolved in the incineration furnace and air in the waste pit is prevented from spreading outside.
Air sucked in with the first air blower is preheated up to 220 with the first air preheater. The
first combustion air can be heated up to 300 with the gas air heater in order to enable proper
incineration even when low-quality waste is injected. The temperature of combustion air needs to
be high when waste quality is low, whereas it should be low when waste quality is high. It is
adjusted by controlling the air volume of room temperature that flows in the bypass.
The secondary combustion air is sucked in from the incineration furnace area with the secondary air
blower.
The secondary combustion air line is also equipped with a steam-type secondary air
preheater to adjust the temperature in accordance with the waste quality.
The secondary
combustion air is sucked into the incineration furnace for prevention of excessive temperature rise in
the furnace and efficient mixing and burning of unburned gas in order to maintain stable combustion.
(c) Exhaust gas system

The temperature of high-temperature combustion gas generated by waste incineration is decreased
and its heat is collected by the boiler.
The temperature of exhaust gas emitted from the boiler and
economizer is decreased again in the cooling tower before the dust in exhaust gas is removed with
the bag filter.
Calcium hydroxide is sprayed in the flue immediately before exhaust gas passes the
bag filter and such acid gas as hydrogen chloride and sulfur oxide is neutralized and eliminated.
Activated carbon is also blown in there to absorb and remove gaseous dioxins in exhaust gas.
Exhaust gas that at is properly treated in the exhaust gas treatment facility is emitted from the
chimney via the induced draft fan.
3-46
The emission standards of exhaust gas applied in the FS is shown in Table 3-19 below. Exhaust gas
regulations solely for waste incineration facilities are yet to be formulated in Indonesia.
However,
regulations on general incineration furnaces (Baku Mutu Emisi Udara untuk Incinerator
(BAPEDAL/09/1996)) are already set up and the standards in accordance with the regulations are
applied in the FS.
Because of the recognition that dioxins are highly hazardous substances,
internationally valid standards are applied.
Dry exhaust gas treatment is used based on the
emission standards in the FS and it is designed in such a way that the emission of regulated
substances will become below the standards.
Table 3-18 Exhaust Gas Emission Standard

Type of Hazardous Substances
Emission Standards
Dust (*)
Dust
50 mg/Nm3
Hydrogen chloride (*)
HCl
70 mg/Nm3
Hydrogen fluoride (*)
HF
10 mg/Nm3
Sulfur oxide (*)
Soxas SO2
250 mg/Nm3
Nitrogen oxide (*)
NOxas NO2
300 mg/Nm3
Carbon monoxide (*)
CO
100 mg/Nm3
Mercury (*)
Hg
0.2 mg/Nm3
Cadmium (*)
Lead (*)
Cd
Pb
0.2 mg/Nm3
0.2 mg/Nm3
Dioxins
DXN
Note 1) Dry gas standards, oxygen 11% conversion
Note 2) (*) BAPEDAL/09/1996 standards are applied for (*).
0.1 ng-TEQ/Nm3
(d) Ash System

Ash generated from waste incineration is stored in the bottom ash storage yard via the ash drop duct
and bottom ash discharger.
The stored bottom ash is sorted and stored with the shovel loader and
then loaded on a truck for being taken outside. Collected ash discharged from the bag filter is sent
to the fly ash storage silo via the fly ash conveyer and then taken outside after cement treatment for
shatterproofing.
(e) Fuel System

Fuel (light oil) is consumed for controlling the temperature inside the incineration furnace at starting
and turning it off, raising temperature when inside temperature decreases, and for emergency power
generators.
3-47
(f) Steam and condensate system

All the steam from the boiler is heated with the heater and sent to high-pressure steam storage. Part
of the high-pressure steam is used as process steam for the steam air heater for raising temperature of
combustion air.
Surplus steam is sent to the steam turbine for power generation. The condensing extraction turbine
is chosen for the steam turbine.
The emitted steam is cooled down and condensed with the
air-cooled low-pressure steam condenser before being sent to the deaerator via the condensate tank.
The condensate of process steam is collected and also sent to the deaerator. Condensate is recycled
as boiler feed-water from the deaerator and pure water is supplied from the pure water unit for the
loss in the circulation system.
Extraction steam from the first level of the steam turbine is used as low-pressure steam.
When
there is a shortage of supply of extraction steam, high-pressure steam is depressurized and used.
Low-pressure steam in the low-pressure storage is used by the steam air preheater and for pressure
control of the deaerator. The extraction steam on the second level is used to heat condensate.
(g) Water supply and discharge system

For domestic noncommercial water, tap water is supplied to each location directly connected via the
pressurized pump for such water.
Well water is designed to be used for the plant. Well water is stored in the plant water receiving
tank after being treated and supplied to each location via the plant water pump.
The plant water
receiving tank also functions as the fire water tank with the necessary capacity.
Equipment cooling water is pumped up to the cooling tower for the water via the pump to be cooled
down to the required temperature. After it is cooled down, the water is supplied to each unit that
needs to be cooled down. After it is used for cooling down the equipment, it is returned to the
cooling water tank and used repeatedly.
The recycled water is stored in the recycled water tank and supplied to each location where water is
used as spray water for cooling exhaust gas and as bottom ash cooling water.
The incoming and outgoing materials of waste, air, exhaust gas and ash examined in the FS are
shown in Chart 3-12.
It is examined in terms of waste quality assumed as waste generated in dry
season (April to October).

3-48
Figure 3-12
Incoming and Outgoing of Waste, Air, Exhaust Gas, Bottom Ash and Fly Ash
21
PRIMARY AIR HEATER
REFUSE PIT AREA
18
19
17
LEAKAGE AIR
PRIMARY AIR FAN
SECONDARY AIR HEATER
REFUSE
ACTIVATED CARBON
COOLING WATER
SLAKED LIME
BOILER
1
27
24
23
BAG FILTER
26
FLUE GAS
COOLER
SECONDARY AIR FAN
GAH
SUPERHEATERS
/
BURNER
13
LIGHT DIESEL OIL
14
COMBUSTION AIR
EVAPORATORS
ECONOMIZER
FURNACE
16
FURNACE AREA
25
FURNACE AREA
15
Sperheated steam
20
AIR-COOLED BRICK WALL
1
INDUCED DRAFT FAN
FURNACE WALL COOLING FAN
COOLING AIR INDUCED FAN
10
11
MOISTENING WATER
LEGEND
QUENCHING WATER
REFUSE, SLAG
AIR
FLUE GAS
FLY ASH
LIGHT DIESEL OIL,

CHEMICALS, WATER
4
SLAG DISCHARGE CONVEYOR
FLY ASH TREATMENT SYSTEM
WET SLAG
CEMENT
9
22
STACK
12
5
:
:
:
:
:
TREATED PRODUCT
No.
BASE)
13
14
15
16
17
LEAKAGE AIR
COOLING AIR
PRIMARY AIR
(FROM COOLING AIR)
DRY SLAG
QUENCHING
WATER
WET SLAG
CARRIED
OUT SLAG
COOLING
WATER
ACTIVATED
CARBON
SLAKED
LIME
FLY ASH
11
12
CEMENT
MOISTENING
WATER
TREATED
PRODUCT
LIGHT
DIESEL OIL
kJ/kg
kg/h
kg/h
kg/h
kg/h
kg/h
kg/h
kg/h
kg/h
kg/h
kg/h
kg/h
kg/h
kg/h
m3N/h
m3N/h
m3N/h
m3N/h
6,700
16,667
1,253
3,341
2,088
1,870
1,506
7.5
46
202
20
67
289
20
3,870
20
10,020
20
10,020
100
No.
18
19
20
21
22
23
24
25
26
27
PRIMARY AIR
(FROM WASTE BUNKER)
PRIMARY AIR
(FAN SUCTION)
PRIMARY AIR
(GAH INLET)
PRIMARY AIR
(GAH BYPASS)
PRIMARY AIR
SECONDARY AIR
(FAN SUCTION)
SECONDARY AIR
2
FLUE GAS
(ECONOMIZER OUTLET)
FLUE GAS
LHV
(FLUE GAS COOLER OUTLET)
FLUE GAS
(BAG FILTER OUTLET)
1GAH
GAH
BASE)
COMBUSTION AIR
FOR LIGHT DIESEL OIL
REFUSE
10
LHV
kJ/kg
m3N/h
m3N/h
m3N/h
m3N/h
m3N/h
m3N/h
m3N/h
m3N/h
m3N/h
m3N/h
6,700
32,260
20
42,280
39
27,220
120
15,060
39
42,280
160
9,270
20
9,270
20
71,070
190
73,620
150
74,800
145
Note ) -(*1) : Each mass flow rate is shown per one furnace on this diagram.
) -(*1) :1
3-49
3.3.2 Facility Layout Plan

The candidate site of the facility is a lot adjacent to the Supit Urang final disposal facility in Malang
City.
It is located on a hill with few people living in the neighborhood. A layout plan that places
importance on economic feasibility of the Project rather than landscape is chosen because of the
location.
Because it is adjacent to a disposal facility, no proactive odor preventive measures are
taken intentionally.
Charts 3-13 and 3-14 show the cross-section view and ground plan of the equipment layout plan,
respectively.
The facility is built outdoors in principle with only waste pit placed in a building.
Each area is described below.
(a) Waste storage yard

The yard secures space that allows picking of 800 tons of daily rated handling volume to be
performed by reportedly 300 waste pickers. In consideration of the workability and draining of
incoming waste, roof for rain protection is built over the entire area. The dimensions are decided in
consideration of the area for piling up incoming waste at the height of 1.5 meters and the area for
spreading and picking the waste by waste pickers.
(b) Waste pit area

The waste pit is planned as an area for storing waste for three days of daily rated handling volume in
consideration of crane work and mixing. The total retention of waste in the waste storage yard and
waste pit is for four days, which raises concern over insufficiency of storage space in case of planned
suspension of operation of all furnaces.
However, in such cases, waste is assumed to be
temporarily stored in surrounding waste disposal facilities.
On the other hand, although it is not shown in the chart, the waste pit building is planned to house
such facilities as the central control room and electric room.
(c) Furnace, boiler, and exhaust gas area

The incineration line is arranged in the one-furnace one-line system in order to simplify the flow in
the facility. Main units are planned to be installed on the GL+0m level in principle.
(d) Waste composting area

The receiving area and discharging area are arranged in the waste storage yard side in order to
prevent confusion of flow with the waste incineration and power generation facility.
The First and
secondary fermentation areas of the composting area are arranged on both sides of the pathway in
consideration of mixing and transportation work.
3-50
Figure 3-13
Facility Layout Plan (Cross-section View)
3-51
Figure 3-14
Facility Layout Plan (+24.50m Ground Plan)
3-52
Chapter 4
Evaluation of Environmental and Social Impacts
4-1
4-2
4.1 Analysis of Current Environmental and Social Situation

4.1.1 Analysis of Surrounding Water Environment of Supit Urang
(1) Introduction
Supit Urang landfill site in Malang, Indonesia is a typical final disposal site in South East Asia.
Household waste and market waste are dumped without any treatments in landfill sites in Indonesia.
Such open dumping has caused many negative environmental impacts, including groundwater and
river water contamination by leachate, a human health threat from vectors of disease, and methane
gas generation that contributes to global warming. The open dumping system is no longer feasible
for handling the increasing levels of solid waste in the future.
In this study, quality of river and well water around the landfill site was investigated and compared
to its leachate from the landfill site. And the effect of the landfill site on the surrounding
environment was determined.
(2) Method
Samples and investigation spots
The samples were randomly obtained from 30th of July to 30th of November. The dry-season is
from July to September, and the wet-season is October and November. The samples were taken in
each season. Figure 4-1 shows the places for sample collecting. There were 4 sampling places: river
water (R), leachate from the landfill site (L), water in the pit for leachate reservoir (P) and
observation well water (W). Photograph 4-1 to 15 shows the scenes of sampling spots.
4-3
Figure 4-1 Sampling points
Active Site
L3
R1
R2
LEACHATE
RESERVOIR
L4
P1
P2
L5
L2
W1
L1
W2
R3
R6
ADMINISTRSATI
ON BUILDING
R4
R5
R7
(Source: Compiled by Research Team based on the information owned by Brawijaya University)
Measurement samples and date of sampling were shown in Table 4-1.
Table 4-1 Sampling Date
R1
R2
R3
R4
R5
R6
R7
L1
L2
L3
L4
L5
P1
P2
W1
W2
July30
July31
Aug2
Aug3
Sep12
R1-1
R2-1
R3-1
R4-1
R5-1
R6-1
R7-1
L1-1
P1-1
P2-1
W1-1
-
R1-2
R2-2
R3-2
R4-2
R5-2
R6-2
R7-2
L1-2
P1-2
P2-2
W1-2
-
W2-3
W-4
R1-5
R2-5
R3-5
R4-5
R6-5
R7-5
L1-5
L5-5
P1-5
P2-5
W1-5
-
Sep13
R1-6
R2-6
R3-6
R4-6
R5-6
R6-6
R7-6
L1-6
P1-6
P2-6
W1-6
-
Sep14
Oct15
Nov15
Nov16
Nov28
Nov29
Nov30
R1-7
R2-7
R3-7
R4-7
R5-7
R6-7
R7-7
L1-7
P1-7
P2-7
W1-7
W2-7
R1-8
R2-8
R3-8
R4-8
R5-8
R6-8
R7-8
L1-8
P1-8
P2-8
W1-8
W2-8
R1-9
R2-9
R3-9
R4-9
R5-9
R6-9
R7-9
L1-9
P1-9
P2-9
W1-9
W2-9
R1-10
R2-10
R3-10
R4-10
R5-10
R6-10
R7-10
L1-10
P1-10
P2-10
W1-10
W2-10
R1-11
R2-11
R3-11
R4-11
R5-11
R6-11
R7-11
L2-11
L3-11
W1-11
W2-11
R1-12
R2-12
R3-12
R4-12
R5-12
R6-12
R7-12
L2-12
L3-12
L4-12
L5-12
W1-12
W2-12
R1-13
R2-13
R3-13
R4-13
R5-13
R6-13
R7-13
L2-13
L3-13
L4-13
W1-13
-
4-4
Series of photographs below show outline landscape at locations at which sample water was sampled.
The river runs along the south side of reclaimed land, and the alphanumeric characters R1 to R5
were assigned to the locations starting from the upstream side. According to surrounding landform,
R1 and R2 where water was comparatively clear are located on the upstream side of the river on the
reclaimed land. R3 to R5 are locations where leachate that was seeping from reclaimed land had
reached the river and contamination was presumed, and accordingly, the water was unclear and it
had a slight hydrogen sulfide odor. Furthermore, a tributary flows into the river from south, and
water was sampled at locations R6 and R7. The tributary was not affected by leachate seeping
from reclaimed land and its water was comparatively clear.
L1 is located at the south boundary of
the repository, and leachate seeping from the slope of reclaimed land pooled there. L2 is located at
a location five meters downstream of R2, where leachate is seeping from the slope on the south side
of the repository, and the leachate was sampled at a location immediately before it flows into the
river.
L3 and L4 are locations where leachate seeps from a land currently being reclaimed and
pools.
L3 is a large area of standing water, and L4 is a location where the leachate is running into
puddles.
L5 is a location where wastewater from a livestock disposing facility dumped on the
reclaimed land was sampled. P1 and P2 are concrete leachate reservoir structures located inside the
repository.
Leachate was sampled from two of six reservoir tanks. W1 and W2 are groundwater
observation wells, and groundwater was sampled at two locations.
Photograph 4-1
Sampling spot of R1
Photograph 4-2 Sampling spot of R2
4-5
Photograph 4-3
Sampling spot of R3
Photograph 4-5
Sampling spot of R5
Photograph 4-7
Sampling spot of R7
Photograph 4-8 Sampling spot of L1
4-6
Photograph 4-9
Sampling spot of L2
Photograph 4-11
Sampling spot of L4
Photograph 4-13
Sampling spot of P1 and P2
Photograph 4-14 Sampling spot of W1
4-7
Photograph 4-15 Sampling spot of W2

Measurement items and methods

Table 4-2 shows measurement items and methods. pH, EC and ORP of samples were measured on
site. Other items of samples were measured after taking the frozen samples back to the laboratory at
University of Miyazaki.
Table 4-2 Measurement items and methods
Items
Methods
pH
pH meter
EC
EC meter
ORP
ORP meter
DO
DO meter
COD
DR2000DPM-MT
TOC
TOC-V
TN
TOC-V
Annmoniac Nitroge Indophenol
Alkali Metal
AAS
Heavy Metals
AAS
(3) Study Results and Anapysis

Results of measured items and sampled water are shown below.
Result values are monthly
averages and shown in a diagram to be discussed.

a)
pH
Figure 4-2 shows the results of pH in samples. pH of river water was neutral. The pH of river water
was 7 to 8, which indicates that the water was almost neutral.
There was no difference in pH
between sampled water in which mixing of leachate is presumed and sampled water in which mixing
4-8
of leachate is not presumed.
The pH of leachate varied depending on the samples; pH of the
leachate sampled at L1 and L2 that had been seeping from the slope was approximately 8.5 which
was higher than the leachate sampled at L3 to L5. This seems to be because the leachate gradually
accumulated alkaline components in the soil as the leachate ran through the soil, which resulted in
the high pH values. The pH of the leachate sampled at P1 and P2 from the leachate pit was high;
8.5 to 9. P1 and P2 were slightly higher than river water. The well water W1 and W2 was found
out to be aloes to neutral or little acid.
Figure 4-2 pH of samples

9.5
9
8.5
Jun.
pH
Sep.
7.5
Oct.
Nov.
6.5
6
R1 R2 R3 R4 R5 R6 R7 L1 L2 L3 L4 L5 P1 P2 W1 W2
b)
ORP(Oxidation-reduction Potential)
Figure 4-3 shows ORP of samples. The ORP of river water was nearly 100 mV or more excluding
measurement results of water sampled at R3 and R4 in September. The ORP of river water
sampled at R3 and R4 in September was 0 mV or less, which was in the reduction condition. The
ORP of water was higher in July and September which are during the dry season than that in October
and November which are during the rainy season.
This seems to be because, when compared with
the dry season, during the rainy season, more leachate is seeping from reclaimed land, or an
increased flow rate due to increased river water agitates and stirs up river bottom dirt which is in the
reduction condition.
The ORP values of all the leachate were very low and in the reduction condition.
Specifically, the
ORP values of the leachate sampled at L3 and L4 which had seeped from an active landfilling area
4-9
and the ORP value of the wastewater which was sampled at L5 and is considered to have been
disposed on that day were very low, -300 mV or less, which indicates strong reduction conditions.
The ORP value of the leachate sampled at L1 which had seeped from the side of the reclaimed land
was higher than the ORP values of other sampled leachate because the leachate at L1 had seeped and
been exposed to air for a long period of time and oxygen in the air had been absorbed into the
leachate.
The ORP values of the leachate at P1 and P2 were approximately 0 mV, which was in the reduction
condition; however, due to contact with air, the reduction condition was not as strong as that of the
leachate at L3 and L4.
Figure 4-3 ORP of samples

300
200
ORP(mV)
100
Jun.
Sep.
-100
Oct.
-200
Nov.
-300
-400
c)
EC(Electrical Conductivity)
Figure 4-4 shows results of EC in samples. With regard to the EC of river water, the EC of river
water sampled at R3, R4 and R5 which is considered to have been significantly affected by leachate
from reclaimed land was higher than the EC of other sampled river water. This seems to be
because positive ions including alkali metals contained in the leachate and negative ions including
chlorine ions had been mixed into the river.
The EC values of the leachate sampled at L1 to L4, P1
and P2 were very high; from several hundreds to several thousands mS/m. This is because salt in
garbage had been washed away with rainfall and moisture in the garbage and mixed into leachate in
4-10
the form of ions.
The EC of well water was little higher than that of river water. It has been
supposed that because eluviation of ions in the soil, such as calcium and so on, had occurred and
those ions might have dissolved into groundwater. Therefore, with regard to the impact of leachate,
measurement results of various ions must be comprehensively analyzed.
Figure 4-4 EC of samples

10000
EC (mS/m)
1000
Jul.
Sep.
100
Oct.
Nov.
10
1
d)
Total Organic Carbon (TOC)
Figure 4-5 shows TOC concentration in samples. The TOC concentration in all sampled river water
was 30 mg/L or less.
When compared with river water sampled at R1, R2, R6, and R7 which was
not affected by reclaimed land, the TOC concentration in river water sampled at R3 to R5 was high
in all the months sampled.
Therefore, the TOC concentration in the river was considered to be
affected by leachate from reclaimed land.
When compared with the dry season, the TOC
concentration was higher during the rainy season. This seems to be because organic substances had
been eluted from garbage due to rainfall. The TOC concentration in the leachate was very high;
from several hundreds to several thousands mg/L.
It is presumed that the leachate containing a
high concentration of TOC was mixed into river water, which increased the concentration of TOC in
the downstream side river water.
4-11
Figure 4-5 TOC of samples

10000
TOC(mg/L)
1000
Jul.
100
Sep.
Oct.
10
Nov.
1
0.1
e)
Total Nitrogen (TN)
Figure 4-6 shows TN concentration in samples. When compared with the TN concentration in the
river water sampled at locations of R1, R2, R6, and R7 which were not affected by reclaimed land,
the TN concentration in the river water sampled at R3 to R5 was higher for all the months sampled.
Similar to the TOC, it is considered that the TN concentration increased due to the mixture of the
leachate seeping from reclaimed land.
The TN concentration in the leachate sampled at L1 was
approximately 1,000 mg/L and the TN concentration in the leachate sampled at P1 and P2 was 30 to
80mg/L; both were higher than the TN concentration in the river water.
4-12
Figure 4-6 TN of samples

10000
TN(mg/L)
1000
Jul.
100
Sep.
Oct.
10
Nov.
1
0.1
(4) Conclusion
Concentration of TOC and TN in the river water was influenced by leachate from the landfill site.
This is presumable because organic waste such as food waste is carried to the landfill site without
any treatments. Soluble organic matter in the organic waste can be dissolved easily into leachate and
carried to outside of the landfill site together with moisture substance such as rain water as well as
the water contained in waste. Although organic matter is expected to be degraded by microorganisms
and oxygen in river water, residual organic material which were not degraded can present a risk to
produce carcinogen such as trihalomethane as the clorine contained in the drinking water.
Although organic matter is expected to be degraded by microorganisms using oxygen in water, his
process provokes odor, coloration and degradation of aquatic organism habitat. Consequently
mitigation of leachate from the landfill site and improvement of leachate quality is urgent issue in
order to conserve hygiene condition and ecological system downstream.
It is found out organic pollutant concentration figure were different depending on the season, namely
rainy and dry season. In rainy season, due to the raise of the bottom sledge in the river for the
increase of rain water and leachate water, organic pollutant concentration data was higher than
normal. It is expected that the organic pollutant can be degraded provided the rain water drainage
system is properly installed in the landfill site.
4-13
It is required to identify more in detail about the river water polluting condition caused by the
landfill site through the statistical analysis by measuring the data which currently are not subject to
the measurement.
4.1.2 GHG Generation Status

(1) Prerequisite for the Implementation of Investigation
In the 17th Session of the Conference of the Parties to the United Nations Framework Convention on
Climate Change (COP17) held in Durban, South Africa, from November 28 to December 9, 2011,
Japanese Government officially declared that it will not participate in the second commitment period
prescribed in the Kyoto Protocol.
Therefore, future involvement in the CDM project is unclear.
Although Japanese Government has been striving to establish the "Bilateral Credit Mechanism
(provisional title)" as a GHG emission reduction project that replaces the CDM, specific contents
and methodology have not yet been determined. Based on the understanding that even though the
Bilateral Credit Mechanism is going to be thoroughly promoted, the emission reduction calculation
method will be improved on the basis of the CDM methodology, we will discuss through this
investigation the amount of GHG emission reduction in this project according to the existing
methodology in the CDM. On the other hand, to what extent the strict CDM criteria regarding the
handling of "additionality" and applicable conditions are to be applied to the Bilateral Credit
Mechanism is still unclear. Therefore, we will only summarize those criteria as future issues.
(2) Study Method

Specific investigation procedures are as follows:
Retrieving related CDM methodologies and tools
Methodologies and tools that include avoidance of methane generation, power generation, and
compost production are retrieved from the sectoral scope "waste disposal."
Applicable
methodologies and tools are as follows:

[Methodology]
ACM001 (integrated methodology concerning landfill repository gas project activity), AM0025
(avoidance of methane from organic waste by introducing an alternative waste disposal method),
AMS-III.E (avoidance of methane from decomposed biomass by controlled combustion,
gasification, and mechanical treatment and thermal treatment), AMS-III.F (avoidance of methane
from decomposed biomass by composting), AMS-III.AJ (recovery and recycle of material from
solid waste), ACM0002 (integrated baseline methodology for grid-connected power generation
from renewable resources), and AMS-I.D (grid-connected renewable power generation)
4-14
[Tool]
A tool for determining the amount of methane emission from waste discarded in waste repository
Limiting applicable CDM methodologies
Methodologies to be considered will be limited by comparing and discussing the contents of the
project assumed by each methodology and the contents of this proposed project with regard to the
applicable conditions.
Understanding the contents of CDM methodologies which have been chosen as possible
applications
The baseline methodology and monitoring methodology of each methodology to be considered
are carefully examined, the parameters necessary for measuring a possible amount of GHG
emission reduction are identified, and then the establishment of boundaries and handling of
leakage are to be understood. Specifically important parameters for waste are:
The amount of waste generated
Waste composition (percentage of organic waste: lumber, paper and cardboard, food, fiber, trash
in the park; and metals and plastics) and moisture content
Understanding the contents of CDM methodologies which have been chosen as possible
applications
The baseline methodology and monitoring methodology of each methodology to be considered
are carefully examined, the parameters necessary for measuring a possible amount of GHG
emission reduction are identified, and then the establishment of boundaries and handling of
leakage are to be understood. Specifically important parameters for waste are:
The amount of waste generated
Waste composition (percentage of organic waste: lumber, paper and cardboard, food, fiber, trash
in the park; and metals and plastics) and moisture content
Understanding current circumstances of climate control plan, environmental policies, and waste
disposal policies in Indonesia
Current circumstances of climate control and environmental policies in Indonesia are to be
understood through literature and Web sites, and specific information necessary for verifying the
additionality is to be summarized. Main literature and reference materials are:
CDM/JI Investigation Report by the Environment Ministry
Global Warming Countermeasure Technology Project Investigation Report by Ministry of
Economy, Trade and Industry
4-15
The above results are summarized, verified by on-site investigation, and items for which
information needs to be collected are described in the survey sheet.
Implementation of on-site investigation
Information is collected during on-site investigation by interviewing those who are concerned,
conducting observations, and acquiring resources. Major locations to be visited are:
Malang City waste disposal site
Cleaning and Park Office (Malang City, Malang Prefecture, Batu City)
Identification (determination) of applicable methodology
Based on the on-site investigation results, an applicable methodology or a combination of
methodologies is to be determined.
Test calculation of GHG emission reduction
Test calculation of GHG emission reduction is to be carried out according to the methodology
determined in the above item by use of data about avoidance of methane generation,
substitution of fossil fuel by power generation, and information about leakage.
(3) Study Result

In Indonesia, most final repositories for urban waste are open dumps, where organic substances
contained in unclassified raw garbage are being accumulated and an anaerobic condition has been
created. Thus, a large volume of methane gas is being generated. Final repositories in Malang
City, Malang Prefecture, which are regions targeted for study are also similar open dumps. Also, in
the controlled repository in Batu City where impermeable liner sheets are being used, methane gas is
not recovered and therefore emitted into the air.
In 2008, Indonesian Government put into effect the Waste Management Law which is a basic law
regarding general waste disposal, and decided to close down all open dumping repositories in the
country by 2013.
Therefore, many local governments which are responsible for waste disposal are
currently planning to construct "sanitary landfill" repositories in which waste is buried or covered
with soil 19.
19
Interview conducted to 8 local municipalities by the JASW-W as part of the International Energy utilization
promotion project, FY2010 showed their intention to convert the landfill site to be sanitary landfill after the open
dumping is prohibited.
4-16
Hereafter, we will discuss how much methane gas will be emitted when this project's target waste
(the entire Malang City, four districts in Malang Prefecture, and the entire Batu City) has sanitary
landfills (equivalent to the CDM baseline scenario, described later). The presumed amount of
waste based on the result of on-site field study is set at 725 t/d (see the following table) and is a
target value in the year 2020. This value is assumed to be constant during the 20-year project
period and test calculations are to be conducted.
Table 4-3 Amount of waste for test calculations of methane generation (per day)
Type
of waste
Food
Plastics
Paper
Leaf
Textile
Metal
Stone
Diaper
Others
Total
Waste from household

Waste from market
Composition
Weight (t)
Composition
Weight (t)
(t)
(t)
weight wet base
weight wet base
62.6
413.0
62.2
40.5
18.2
120.1
11.7
7.6
9.2
61.0
9.0
5.9
5.1
33.7
8.6
5.6
1.2
7.6
1.3
0.9
0.2
1.5
0.2
0.1
1.0
6.6
6.4
4.2
2.5
16.2
0.5
0.3
0.1
0.5
0.0
0.0
100.0
660.0
100.0
65.0
Total
Weight (t)
(t)
453.5
127.7
66.9
39.3
8.4
1.6
10.8
16.5
0.5
725.0
(Source: Set based on the field study result of this study)
According to the "Tool for determining the amount of methane emission from waste repository;
version 05.1.0" which is one of CDM methodology tools, the amount of methane generated can be
calculated by the following equation:
where,
= The amount of methane generated (avoided by project activity) during a
period from the start of the project to the year y (t CO2)
= Uncertainty model coefficient (0.9)
f
= Percentage of methane recovered from repository and incinerated (=0)

= Global warming coefficient of methane (=21)
= Oxidation coefficient (=0.1; controlled repository. Conservatively applied)
= Percentage of methane in a generated gas (=0.5
= Percentage of decomposed degradable organic carbon (=0.5
4-17
= Methane conversion rate (=0.8; uncontrolled repository)

= The amount of type-j organic waste in the year x (t)
= Percentage of degradable type-j organic waste
= Decomposition rate of type-j waste (decomposition speed)
j
= Type of waste
= Disposal inaugural year (first year to year y)
= Target year in which methane emission is to be calculated
When substituting organic waste shown in Table 4-3 into the above equation, one year after landfill,
42,824 tons of methane is generated a year on a carbon dioxide conversion basis. Similarly, 30,019
tons in the second year, 21,315 tons in the third year, 5,373 tons in the fourth year, and 11,295 tons
in the fifth year. Thus, the amount of generated methane gradually degreases, and the amount
becomes 1,701 tons in the 15th year.
Since the same amount of waste is dumped in the repositories
every year, it is presumed that the total amount of methane generated during the 15-year project
period could be 1,918,215 tons on a carbon dioxide conversion basis, and the annual average could
be 127,881 tons (see Table 4-4).
Table 4-4 Estimation of the amount of methane generated in the current circumstances
(sanitary landfill)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Y1 42,824 30,019 21,315 15,373 11,295 8,473 6,509 5,121 4,128 3,407 2,871 2,463 2,150 1,901 1,701
Y2
42,824 30,019 21,315 15,373 11,295 8,473 6,509 5,121 4,128 3,407 2,871 2,463 2,150 1,901
Y3
42,824 30,019 21,315 15,373 11,295 8,473 6,509 5,121 4,128 3,407 2,871 2,463 2,150
Y4
42,824 30,019 21,315 15,373 11,295 8,473 6,509 5,121 4,128 3,407 2,871 2,463
Y5
42,824 30,019 21,315 15,373 11,295 8,473 6,509 5,121 4,128 3,407 2,871
Y6
42,824 30,019 21,315 15,373 11,295 8,473 6,509 5,121 4,128 3,407
Y7
42,824 30,019 21,315 15,373 11,295 8,473 6,509 5,121 4,128
Y8
42,824 30,019 21,315 15,373 11,295 8,473 6,509 5,121
Y9
42,824 30,019 21,315 15,373 11,295 8,473 6,509
Y10
42,824 30,019 21,315 15,373 11,295 8,473
Y11
42,824 30,019 21,315 15,373 11,295
Y12
42,824 30,019 21,315 15,373
Y13
42,824 30,019 21,315
Y14
42,824 30,019
Y15
42,824
Total
42,824 72,844 94,158 109,531 120,825 129,299 135,808 140,929 145,057 148,463 151,335 153,798 155,948 157,848 159,549
Total
(15years)
1,918,215
15
Average
per year
127,881
1
Unit: Ten thousand tons
4-18
4.1.3 Waste Pickers Activities and Their Living Condition

(1) Survey Content
As described in 4.5 Guidelines for environmental and social considerations, it is necessary to
check if considerations are given to the existing resource recovery system including waste pickers in
examination of the project in the aspect of the environmental society.
In developing countries including Indonesia, the informal sectors play an important role, practically
in recycling of waste and reduction of load of landfill in the processing sites. Some informal sectors
process and recycle useful materials as well as picking valuable materials as the way to make a
living. As the features of informal sectors, there are positive aspects such as sorting the waste that is
unsuitable for recycling due to the contamination or material and cleaning the materials before
passing to recycling. There are also negative aspects such as that waste is recycled without bearing
proper environmental management cost, causing a risk to pollution prevention.
In the 3rd field survey, the following survey was conducted through the interview with the authority
of the waste picker organization in Surabaya for about two and half hours and a visit to the plastic
waste crushing facility under the control of the organization; Check the current status of the
environmental management of the informal sector, in particular, recycling and Impact of this
project on the informal sectors through the development of waste generation power facilities, which
are the targets of the survey of this project.
(2) Study Result

Checking the current status of the informal sectors, in particular environmental management
in recycling
Question
Answer
Volume
of
In the entire organization, 150m3about 50 tons of waste is delivered to the
sampled
waste
processing site daily. Prior to the delivery, 49 items including plastics, glass,
that is delivered to
iron, and aluminum are extracted and sold as recycling materials. This is the
the processing site
only organization that exercises integrated management from transportation to
per day
management of pickers. There are many other organizations that are engaged
in single activity such as transportation only, plastics only, or raw waste only.
The volume of waste that is handled is increasing each year.
4-19
Number
of
Pickers (Yellow force) who are engaged in picking at TPS of Malang City
employees, wages,
work from 6:00 to 16:00. In this organization, the wage of a male picker is
and working hours
30,000 Rp and the wage of a female picker is 25,000 Rp. A commission system
is not applied. There are 30 pickers under the direct control and there are
14,000 pickers in the organization.
Cost and profit on
The clients include department stores, shopping malls, and supermarkets. For
sale
instance, the organization receives 5.7 million Rp per month as the processing
fee from a department store. The organization collects 22m3 of waste each time
every three days. It pays 270,000 Rp of expenses to the City. The profit by
selling valuable materials that are extracted is 2 million Rp.
The City charges 95,000 Rp per 1 as the waste processing fee. The client
does not directly pay the fee and the organization pays the fee temporarily for
the client (reducing the workload of the client; the reduction of fee due to the
reduction of the volume becomes the profit).
One steel tin for tinned food is sold at 500 Rp and the cut and flattened tin is
sold at 2,000 Rp. One Kg of plastic bottles is sold at 2,000 Rp and one Kg of
cleaned/crushed plastic bottles is sold at 8,000 Rp. Two truckloads of plastic
bottles are delivered each day. Package water containers (PP) are sold at the
highest price. One Kg of package containers is sold at 7,000 Rp and one Kg of
cleaned/crushed containers is sold at 10,000 Rp.
Relationship
of
It is extremely important for pickers to co-exist with the local residents in the
waste pickers to
working region. Since pickers are brought from outside, development of the
the local residents
relationship with the local residents is the key.

(Source: Compiled by Research Team based on the interview)
4-20
Photograph 4-16
Photograph 4-17
Photograph 4-18
Condition of trash separation
Trash separation activity
Separated trash storage
work area
(plastic containers)
condition (plastic containers)
Photograph 4-19
Photograph 4-20
Photograph 4-21
Trash separation activity
Separated trash carry-out
Picker's living space
(paper containers)
situation
4-21
Photograph 4-22
Photograph 4-23
Condition of trash separation work area
Interview survey situation
Impact of this project on the informal sectors through the development of waste generation power
facilities, which are the targets of the survey of this project
Question
Answer
Impact on waste
Since pickers work at the upper stream, the impact of the development of an
pickers
incineration facility to pickers is minimal.

It is desirable that pickers are not required in the processing site. It is
preferable that pickers are to be assigned for extracting useful materials in the
upper stream. In particular, in the processing site, accidents involving pickers
occur almost every day such as picker being caught by a power shovel.
Accidents resulting in death or injury frequently occur.
Recognition of a
The incineration facility is recognized as the essential facility. In particular, it
waste
is necessary in Surabaya due to its small land area. A Green & Clean
generation
power facility
Campaign is held from January to July, however, the volume of waste

increases in other months. It is necessary to educate people to promote a
reduction of waste and an increase of recycling even without such a campaign.
Recognition of the
The incineration service was commenced in 1992 in Kepthi, which is located
incineration
in the East of Surabaya and the operation was suspended after less than one
facility in Kepthi
year. The reason was that the operators did not properly drive the machine
(failure factors)
(Note: Inadequate O&M capability and knowledge). Another reason for the
closure was the excessive fuel cost.
Relationship with
Although there is no relationship with the Government at this point, there is a
the Government as
possibility for cooperation. It is ideal if the sector can cooperate as the

4-22
an informal sector
workforce for selecting useful materials that are extracted from waste before it
and possibility for
is incinerated. If an opportunity is given, the sector can handle the task
the cooperation to
sufficiently. For instance, the organization is quite prepared to process useful
the
materials that are selected such as cleaning and crushing under a roof even if
incineration
facility
paying rent for the use of the land that is owned by the City.
Recognition of the
The volume of waste final processing in Surabaya was 8,000 tons per day in
stress
the
2001. The volume was reduced to 3,900 tons under promotion of 3R and the
processing site is
strong leadership of the Mayor, Ms. Rismaharini (former Manager of the
experiencing
Bureau of Public Cleansing).
that
The volume of waste that is processed can be reduced further if the waste is
sorted. For this reason, pickers are playing an important role.
(Source: Compiled by Research Team based on the interview)
Other information
Although having heard about Waste Bank, the author does not know the details. Since it is led
by the Government, the operation may be implemented smoothly while the budget is allocated,
however, it may fail when the budget runs out. The concept is good for educating children,
however, it is unrelated to residents of expensive residential quarters and the waste is not sorted.
The author witnessed that pickers were sorting waste in the Buddhist facility called Buddha
Tsuchi in Tangerang.
Visit to the plastic waste crushing facility

The crusher in the plastic crushing facility in Medokan was purchased for 6 million Rp. The machine,
which can process one ton per day, handles 17 to 27 types of plastics. Nine staff members are
engaged in total (5 males and 4 females). Water used for cleaning is discharged without processing.
Data of the volume delivered is unavailable.
4-23
Photograph 4-24
Plastics crusher facility
Photograph 4-25
Cleaning and crushing machine
Photograph 4-26
Cleaned and crushed plastics
Photograph 4-27
Polluted wastewater discharge
condition after cleaning
Photograph 4-28
Rinse water (cleaning after crushing)
4-24
4.2 Environmental Improvement Effect as the Result of the

Implementation of the Project
4.2.1 Effective Use of Waste and Surrounding Aquatic Environment
Because untreated raw garbage has been directly dumped into the Supit Urang repository in Malang
City, the TOC and TN concentration in the river has been affected by the leachate from reclaimed
land. As previously stated, this seems to be because organic substances contained in raw garbage
are mixed in with rainfall and moisture in the garbage and flow into the river.
If those organic pollutants contained in garbage can be eliminated by introducing an incineration

treatment, the load of organic pollutants exerted on the river is expected to be reduced. Also, an
incineration treatment can reduce the volume of waste, and it becomes easy to ensure space to create
a structure which prevents leachate from waste before it is incinerated or incineration residue from
directly flowing into the river.
Thus, it is possible to establish systematic and efficient
environmental conservation measures.
4.2.2 GHG Emission Reduction Effect

(1) Summary of Related CDM Methodologies
In this project, the GHG emission reduction project consists of two sections: a section to avoid
methane generation from waste in the final repository, and the other section to substitute fossil fuels
for system power generation by power generation using waste incineration heat.
Related methodologies retrieved from CDM's sectoral scope "waste disposal" are:
* ACM001 (integrated methodology concerning landfill repository gas project activity)

* AM0025 (avoidance of methane from organic waste by introducing an alternative waste disposal
method)
* AMS-III.E (avoidance of methane from decomposed biomass by controlled combustion,
gasification, and mechanical treatment and thermal treatment)
* AMS-III.F (avoidance of methane from decomposed biomass by composting)
* AMS-III.AJ (recovery and recycle of material from solid waste)
* ACM0002 (integrated baseline methodology for grid-connected power generation from renewable
resources)
* AMS-I.D (grid-connected renewable power generation)
Hereafter, project contents and conditions to which each methodology can be applied will be
summarized.
4-25
Methodology ID
ACM001(v12)
Methodology name
Integrated methodology concerning landfill repository gas project activity
Applicable condition
Project including recovery of methane gas generated from repositories
and project contents

Applicability to this
This project is intended to avoid methane gas generated when waste is
project
directly incinerated, and is not intended to recover methane gas.

Therefore, this methodology is not appropriate for this project.
Methodology ID
ACM0025
Methodology name
Avoidance of methane generation from organic waste by introducing an

alternative waste disposal method
Can be applied to any of the following methods or a project that combines
those methods.
Production of compost
Production of synthesis gas and its use
Anaerobic digestion, recovery of biogas and flare treatment or use
Production of RDF/SB
Incineration
Wastewater treatment
Can be applied to the incineration treatment and compost production
project
section of this project.
Methodology ID
AMS-III.E (small-scale methodology)
Methodology name
Avoidance of methane generation from decomposed biomass by controlled

combustion, gasification, mechanical treatment and thermal treatment
Can be applied to the projects in which the amount of annual CO2 emission
reduction is 60,000 tons or less (small-scale methodology).

Can be applied to any of the following methods or a project that combines
those methods.
Incineration, gasification, mechanical and thermal treatment
In the case of power generation by incineration and the use of heat,
small-scale methodology type-I is to be adopted.
The amount of annual CO2 emission reduction in this project is several tens
project
of thousands of tons. This methodology can be applied only when detailed

study result at the beginning of the project is 60,000 tons or less.
4-26
Methodology ID
AMS-III.F (small-scale methodology)
Methodology name
Avoidance of methane generation from decomposed biomass by

composting
Can be applied to the projects in which the amount of annual CO2 emission
reduction is 60,000 tons or less. Compost must be buried in a repository or

reduced to soil in farm land. Project boundaries must be clearly defined,
and the location at which raw material waste is recovered and the location
at which compost is used must be within 200 km from a disposing facility.
This project is planning to use produced compost in Malang City and
project
nearby parks.
Methodology ID
AMS-III.AJ (small-scale methodology)
Methodology name
Recovery and recycle of materials from solid waste
Projects in which the amount of annual CO2 emission reduction is 60,000
tons or less.
This methodology may be applicable.
Targeted projects are HDPE, LDPE, PET, paper, and cardboard recovery
and recycle projects.
When an informal sector is targeted;
The quantity of final recycle products must be recorded.
Final recycle products must be directly sold to processors or to
middlemen who sell those products to processors.
When a formal sector owns and operates a recycle facility;
Achievement data for three years before the start of the project is
required (within three years after construction, one year operation
achievement data is necessary).
This project includes separation and recovery of plastics (HDPE, LDPE,
project
and PET). This methodology can possibly be applied for this purpose.
Methodology ID
ACM0002
Methodology name
Integrated baseline methodology for grid-connected power generation from

renewable resources
Can be applied to the projects in which the maximum power generation
capacity is 15 MW or more.
Connected to the power grid provided with one or more fossil-fuel fired
power generation facilities.
4-27
Since capacity of the power generation facility in this project is 7 MW,
project
application of a small-scale methodology is appropriate.
Methodology ID
AMS-I.D (small-scale methodology)
Methodology name
Grid-connected renewable power generation
Maximum power generation capacity is 15 MW or less.
The energy source must be sun light, wind power, water power, tidal power,
wave power, geothermal power, or renewable biomass.
Connected to the power grid provided with one or more fossil-fuel fired
power generation facilities.
In this project, renewable biomass (waste) is used for power generation,
project
and is connected to the Jamali power grid mainly composed of coal-fired

thermal power plant. Therefore, this methodology can be applied.
The AM0025 can be applied to the avoidance of methane, and AMS-III.E can be applied to the
incineration and compost production. The AMS-III.F and AMS-III.AJ could possibly be applied to
the compost production and the recycle, respectively.
The AMS-I.D can be applied to the power
generation.
Hereafter, according to AM0025, AMS-III.AJ, and AMS-I.D, test calculations of the amount of GHG
emission reduction will be carried out.
(2) Identifying Baseline Scenario

The baseline scenario means a situation or activity which might have occurred if project activities
were not carried out. The baseline scenario for this project is "Waste of mainly Malang City and
surrounding regions is finally disposed into a sanitary landfill.
In the same way as the current
situation, some of the plastics are recycled by those who are concerned including informal sectors."
The Waste Management Law that came into effect in 2008 had decided to prohibit current open
dumping by 2013. However, it is unfeasible for project-target local governments which are poor in
financial resources and experience to construct and operate controlled repositories in which
generated methane gas is recovered and flare-treated. Therefore, it is considered that construction
and operation of sanitary landfill repositories are more realistic.
4-28
(3) Project Boundaries

Project boundary means the physical and time boundary which affected by the possible GHG
generation or absorption. The project boundary in this study can be summarized methodology by
methodology in the followings.
[1] AM0025
Location at which waste treatment is conducted.
Facilities for waste collection and classification and transportation to the project location are
not included.
[2] ASM.III.F
Location at which dumped waste has been decomposed and methane gas would be generated if
there is not a project activity
Location at which compost is produced
Location at which compost and compost products are used
Transportation among the above locations
[3] ASM.III.AJ
Location at which waste (plastics) is recovered
Recycle equipment
Processing and manufacturing equipment
Raw material production
Urban waste repository according to the baseline scenario
[4] ASM.I.D
Physical and geographical location of the renewable energy generating source (waste)
(4) Project's Emission

This project plan is a plan for incinerating most of the waste, and there is not much waste targeted
for compost production and recycle.
In addition, it is difficult to exactly identify locations at which
compost products are used and locations at which recycled products are processed and treated at the
stage of this pre FS.
Accordingly, project's emission is largest, and estimation is conducted by
using only emission from incineration and power generation which is currently accurate.
[1] Project's emission from waste incineration activity [partial application of AM0025]
Project's emission in the year y can be expressed by the following equation:
4-29
PEy = PEelec,y + PEfuel, on-site,y + PEi,y

where
PEy
Project's emission in the year y (tCO2)
PEelec,y
The amount of emission from power consumption on the project site by project
activity in the year y (tCO2)
PEfuel, on-site,y
The amount of emission from fuel consumption on the project site by project
activity in the year y (tCO2)
PEi,y
The amount of emission from incineration of waste in the year y (tCO2)
In this project, facilities on the project site are planned to be operated by the power generated by
incinerating waste.
Since there are no fuel-consuming facilities including backup boilers, only
emissions from incinerating waste according to the above equation are targeted.
The total emission from incinerating waste is as follows:
PEiy = PEi,f,y + PE i,s,y

where
Ai
The amount of type-i waste incinerated (t/y)
CCWi
Percentage of carbon in type-i waste
FCFi
Percentage of fossil-fuel originated substance in carbon in type-i waste
EF
Combustion efficiency of waste (=99%, IPCC, conservative application)
Q biomass, y
The amount of waste incinerated (t/y)
EFN2O
EFCH4
N2O emission coefficient of waste incineration (kgN2O/tonne of waste)

(= 50 in the case of consecutive combustions, IPCC)
CH4 emission coefficient of waste incineration (kgCH4/tonne of waste)
(= 0.2 in the case of consecutive combustions, IPCC)
4-30
Table 4-5 Amounts of waste subject to incineration

Waste to
be
incinerated
(wet base)
t
Dry-wet
Waste to be
Total
Total
Total fossil
Total fossil
CO2
carbon
carbon
ration%
incinerated
carbon
carbon
equivalent

amount %
amount % to
CO2
amount t
amount t
(*)
(dry base) t
amount t
to dry base
total carbon
weight (*)
weight
(*)
(*)
(*)
(*)
f
d
g=e*f/100 h= g*44/12
e=c*d/100
a
b
c=a * b
Food
432.1
40
172.8
38
65.7
Plastic
122.7
100
122.7
75
92.0
100
92.0
337.3
Paper
64.3
90
57.8
46
26.6
1
0.3
1.0
Leaf
33.7
40
13.5
49
6.6
0
0.0
0.0
Textile
7.6
80
6.1
50
3.0
20
0.6
2.2
Metal
1.5
100
1.5
Stone
6.6
100
6.6
Diaper
16.2
40
6.5
70
4.5
10
0.5
1.7
Others
0.5
90
0.4
3
0.0
100
0.0
0.0
Total
685.0
387.8
198.5
93.3
342.2
(*)*2006
2006 IPCC
IPCC
Guideline Default Value
Type of
waste
(Source: Research Team (created based on the field survey))
Given that amount of incineration in each type of waste in the project is as above Table 4-5,
CO2 emission (PE,i,f,y) from combustion of fossil carbon in waste is
342.2 t/d 0.99(combustion efficiency) 365 d 123,654 t/y
N2O and CH4 originated from the incineration fume is

685 t/d (0.05 310 0.0002 21 10-3 365 d = 3876 t/y
Therefore, The emission through this project is 127,530 tCO2/y

(5) Baseline Emission
[1]Avoidance of Methane Generation
The baseline emission (BE CH4) from the avoidance of methane generation by waste incineration is
127,881 t/y as stated above.
[2]Substitution of fossil fuel by waste power generation (Application of methodology AMS.I.D)

The substitution of fossil fuel in the power grid by the power supplied to the power grid in this
project is regarded as the baseline emission.
BEelect
EGPR EGaux EFgrid

4-31
where
BEelect
Alternative for fossil fuel by waste to energy; baseline emissiontCO2/y
EGPR
Total annual power generation in this project (MWh /y) (= 96,600)
EGaux
Captive power consumption within facilities in this project (MWh/y)

(=24,870)
EFgrid
Emission coefficient of power grid (tCO2/MWh)

(Jamali grid =0.891, Indonesia DNA)
According to the above equation; BEelect = ( 96,600 24,870 ) 0.891 63,911 tCO2/y
The baseline emission in this project is as follows:
BEch4 + BEelect 127,881 63,911 191,792 tCO2/y
(6) Leakage
Leakage in this project includes CO2 during transportation of waste outside the project site and
emissions from residue after waste was incinerated. When compost is used as a substitution of
chemical fertilizers, this can be considered as positive leakage; however, this is excluded in this
calculation. Therefore, Leakage emission in this project is as follows:
Ly = Lt,y + Li,y
where
Lt,y
Leakage due to increase in transportation of waste (tCO2)
Li,y
Emission from incineration residue (tCO2)
[1] Leakage due to Increase in Transportation
Lt,y = NOvehicles,i,y DTi,y VFcons,i Dfuel NCVfuel Dfuel EFfuel
4-32
where
NOvehicles,i,y
The number of cars having similar carrying capacity
DTi,y
Additional average distance of type-i car in the year y (km)
VFcons,i
Gas mileage of type-i (liter/km)
Dfuel
Fuel density (kg/liter)
NCVfuel
Heat quantity of fuel (Tj/t)
EFfuel
Emission coefficient of fuel (tCO2/TJ)
In this study, locations of individual waste dumps and distance to existing repositories are not known.
Therefore, they are simplified and set up as follows:
* Transportation distance increases in the entire Batu City area and in the half of four regions in
Malang Prefecture.
* Increased distance is 10 km one way (20 km round trip) in Batu City and 5 km one way (10 km
round trip) in the target regions in Malang Prefecture 20.
* According to the on-site study results, average load capacity per vehicle is 9m3.
* The amount of waste targeted by the plan in Batu City is approximately 90 t/d x 365d=32,850 t/y,
which is equivalent to 9,125 when the value is converted into the number of vehicles.
Similarly,
the amount of waste generated from the targeted half of the four regions in Malang Prefecture is 80
t/d x 365d=29,200 t/y, which is equivalent to 8,111 when the value is converted into the number of
vehicles.
*Diesel fuel gravity and fuel efficiency is set on 0.455 liter/km0.000845 t/liter based on IPCC data
*Diesel fuel calorific value and carbon emission are set on 0.043TJ/t and 20.2 tCO2/TJ based on
IPCC data
Therefore, leakage emission is 0.9 tCO2/y as 9,125 total units 20 km(additional mileage) in Batu
City 0.455 liter/km (fuel efficiency) 0.845 10-3 t/liter (gravity) 0.043 TJ/t (calorific value)
20.2 tCO2/TJ (emission figure)
20
About 30 km radius from the project planned site is expected to be a collection boundary in this project
4-33
Similarly 4 areas in Malang regency 27.1 tCO2/y

mileage)0.455 liter/km (fuel efficiency)
as 8,111 total units10 km(additional
0.845 10-3 t/liter (gravity) 0.043 TJ/t (calorific value)
20.2 tCO2/TJ (emission figure).

Thus, total leakage is (Lt,y 60.9 + 27.188.0 tCO2/y
[2] Emission from Incineration Residue
When up to 5% of carbon is included in residual material in the incinerator;
Where
Li,y
The amount of leakage emission generated from incineration residue in the

incinerator (tCO2/y)
A residual, y
The amount of incineration residue in the incinerator (t/y)
FC residual
Percentage of carbon included in residue (%)
In this project, it is assumed that from the incinerator, 60 t/d of main ash, 14 t/d of fly ash, and 14 t/d
of noncombustible compost residue are discharged, so Leakage(Li,y)is 88 t/d 365 d 0.05 44/12
5,889 tCO2/y. Therefore, total leakage emission (Lt,y + Li,y) is
88 + 5,889 5,977 tCO2/y
(7) GHG Emission Reduction in this Project
GHG emission reduction = Baseline emission ( Project's emission+ Leakage emission )
When applying the above calculation result;

GHG emission reduction in this project (ER) is as follows:
191,792 127530 5,977 58,285 tCO2/y
(8) Issues
For estimating the reduction amount of GHG generation, waste to be recycling and converted to
compost are not subject to the calculation. This needs to be further surveyed on the overall
production means and supply demand chain to find out whether the suggested methodology can be
4-34
applied or not. Otherwise other alternative needs to be planned that can be applied.
When applying AMS-III. AJ, followings need to be considers;
- Making sure differentiating formal municipality sector from informal waste organization
- Making proper records on recycled products as final recycled products needs to be sold to the
intermediate facility who provides to the producers or sold directly to the producers who utilize the
recycled materials
- Making sure avoiding double counting the emission credit by intermediated facility and final
producers
- Making sure the past three year business records available when municipality enter to the business
and at least one year operation record in case the facility is newer than 3 years
- Making sure the improvement can be made than current baseline by establishing new facility or
introducing new equipment
When applying AMS-III. F regarding compost production, followings need to be considers;

- Making sure the location of where produced compost is applied can be identified and its location is
within 200 km
- Making sure the compost production capability is increased than current operation by establishing
new facility and applying new equipment
It is in general to conduct the continuous monitoring on the waste composition during the operating
period as well as the available sampling method shall be reviewed and renewed.
4.3 Impact of the Implementation of the Project on the

Environmental Social Aspect
With regard to the presumed impacts of the implementation of the project on the environmental
social aspect, possible negative impacts are mainly those resulting from the emission of incineration
exhaust gas such as dioxins and the like, and possible positive impacts can be the improvement of
surrounding aquatic environments, inhibition of greenhouse gas generation, and measures to cope
with poverty including waste pickers.
With regard to the emission of incineration exhaust gas, it can be said that negative impacts will not
occur because exhaust gas treatment equipment in accordance with Japanese environmental criteria
will be used and appropriate overall management of exhaust gas is to be implemented. Accordingly,
some possible positive impacts could be the improvement of surrounding aquatic environments,
inhibition of greenhouse gas generation, and an issue related to measures to cope with poverty
including waste pickers.
4-35
Currently, untreated organic substances in raw garbage are directly dumped in the Supit Urang
repository in Malang City and those substances seem to be one of the causes of contamination of
water quality of surrounding rivers.
The introduction of the incineration treatment expected by this
project will remove organic pollutants contained in such garbage; therefore, it is expected that
remote impact factors for contamination of rivers will be reduced.
In addition, incineration
treatment will reduce the volume of waste and makes it easy to create space to build a structure
which prevents leachate generated from waste from directly flowing into the river.
Thus,
environmental conservation effect can be expected.
With regard to the greenhouse gas (GHG), it is expected that approximately 95.424 tons of GHG can
be reduced annually through the avoidance of methane generation and substitution of fossil fuel by
waste incineration power generation.
Moreover, with regard to the impact on waste pickers, it is expected that these people will cooperate
with the waste facility's management, local governments and other organizations assuming that these
people can become part of the workforce that classify usable resources, foreign substances (large
trash, etc.) and so on before incineration. If such opportunities are available, it is expected that
prevention of frequently occurring fatal accidents to workers, improvement of the poor environment,
and reduction of recycle activities conducted without providing environmental pollution control
measures can be handled. For example, it is possible to sort usable materials, clean and crush those
materials by paying rent to the facilities where environmental management have been implemented.
In light of such circumstances, if cooperation has been established between the running body of this
project and government and waste pickers, and necessary measures have been taken, it can be
expected that this project can have a positive improvement effect.
4-36
Categor
Environmen
tal Items
(1)Air
Mitigation Measures
Quality
Confirmation of Environmental
Main Check Items
Consideration
Do air pollutants, such as sulfur oxides The air pollutant from incineration plant
(SOx), nitrogen oxides (NOx), and and collection/transportation car etc.
soot and dust, and dioxins emitted directly impact on environment and local
from
various
sources,
such
as community near project site.
As its
incinerators, and vehicles used for countermeasures, it is needed to check

waste collection and transportation whether the air pollutants do not exceed
comply with the countrys emission emission standard and environmental
standards and ambient air quality standard in Indonesia.
standards?
(2)Water
Quality
Do effluents from various facilities The
discharged
water
from
an
comply with the countrys effluent incineration facility directly impact on

environment and local community near
standards and ambient water quality
project site. As its countermeasures, it
standards?
is needed to check whether the
discharged water do not exceed emission
standard and environmental standard in
Indonesia.
Does the water quality of leachates
The water quality of leachate from the
from the waste disposal sites comply
waste disposal facility directly impact on
with the countrys effluent standards

and ambient water quality standards?

project site.
As its countermeasures, it
is needed to check whether the water

quality of leachate do not exceed
emission standard and environmental
standard in Indonesia.
Are adequate measures taken to In the case that the discharged water and
prevent contamination of surface water leachate from the waste disposal facility
and groundwater by these effluents and contaminate
leachates?
surface
water
and/or
groundwater, it directly impacts on

project site.
is needed to take measures so that the

discharged water and leachate do not
contaminate
groundwater.
4-37
surface
water
and/or
Categor
Environmen
(3)Wastes
Main Check Items
tal Items
Consideration
Are wastes, such as treatment residues, The shredded solid waste, residues
cinder, and fly ash generated from generated on the process of separation
crushing and segregation processes, and process, incinerated ash, and other waste
diverted wastes from composting process which cannot be used for compost
properly treated and disposed of in facility directly impact on environment
accordance with the countrys standards? and local community near project site.
As its countermeasures, it is needed to
check whether these wastes are
appropriately treated following
Indonesian standard.
Are hazardous and dangerous wastes The hazardous wastes and substances
properly segregated from other wastes, piled up at disposal facilities directly
stabilized, treated, and disposed of in impact
accordance
with
the
on
environment
and
countrys community near project site.
standards?
local
As its
countermeasures, it is needed to check

whether these wastes are appropriately
treated following Indonesian standard.
(4)Soil
Are adequate measures taken to In the case that leachate from the waste
Contamin
prevent contamination of soil and disposal facility contaminate surface
ation
groundwater by leachates from the water and/or groundwater, it directly

waste disposal sites?
impacts on environment and

community near project site.
local
As its
countermeasures, it is needed to take

measures so that the leachate does not
contaminate soil and/or groundwater.
(5)Noise
Do noise and vibrations generated by In the case that noise and shake due to
and
the
Vibration
incinerators, waste segregation and of cars which collect and transport
facility
operations
(especially an incineration facility and following run
crushing facilities), and vehicle traffic wastes are generated, it directly impacts
for waste collection and transportation on environment and local community
comply with the countrys standards?
near
project
site.
As
its

measures so that operation of the facility
and following noise and shake meet the
standards in Indonesia.
4-38
Categor
Environmen
(6)Odor
Main Check Items
tal Items
Consideration
Are there any odor sources?
Are In the case that bad smell due to an
adequate odor control measures taken?
incineration facility is generated, it

directly impacts on environment and
local community near project site.
As
its countermeasures, it is needed to take
measures so that bad smell is alleviated.
Natural Environment
(3)Manage
Are environmental protection and In
ment of
restoration plans (such as landfill gas and environmental protection measures are
not taken after the current facility is
leachate collection and treatment
closed in 2013, it directly impacts on
Abandoned
Sites
systems,
prevention
of
illegal
dumping, and reforestation) after
the
case
that
the
appropriate

project site.
is needed to take the appropriate
facility closure considered?
environmental
protection
measures
before the current facility is closed.

Is
sustainable
management In the case that the empty lots are not
framework for the abandoned sites managed appropriately after the current
facility is closed in 2013, it directly
established?
impacts on environment and

community near project site.
local
As its
countermeasures, it is needed to take the

appropriate management structure for
the empty lots.
Are adequate financial provisions In the case that the empty lots are not
secured to manage the abandoned managed appropriately with a budget
sites?
after the current facility is closed in

2013, it directly impacts on environment
and local community near project site.
As its countermeasures, it is needed to
prepare for the appropriate budget for
the management of the empty lots.

(1)Resettle
Social Environment
ment
Is involuntary resettlement caused by In the case that involuntarily residential

If involuntary movements are happened due to the
construction of the incineration facility,
resettlement is caused, are efforts made
it directly impacts on environment and
to minimize the impacts caused by the
local community near project site. As
resettlement?
its countermeasures, it is needed to take
project implementation?
endeavor to minimize the averse impact

by the movement.
4-39
Categor
Environmen
tal Items
Main Check Items
Consideration
Is adequate explanation on relocation In the case that involuntarily residential

and compensation given to affected movements are happened due to the
persons prior to resettlement?
As
its countermeasures, it is needed to make

appropriate
explanation
about
the
movement and compensation for the

residents before the movements.
Is the resettlement plan, including
In the case that involuntarily residential
proper compensation, restoration of
movements are happened due to the
livelihoods and
living
standards
developed based on socioeconomic

studies on resettlement?

As

necessary research on the residential
movements and make the plan including
appropriate compensation and recovery
of the local infrastructure.
Does the resettlement plan pay
particular attention to vulnerable
groups or persons, including women,

children, the elderly, people below

As
the poverty line, ethnic minorities,
and indigenous peoples?
the plan which considers vulnerable

groups such as women, children, the
aged, the poor, minority groups and
indigenous people.
Are agreements with the affected In the case that involuntarily residential
persons obtained prior to resettlement?

As

a consensus with the residents who have
to move before the movement.
4-40
Categor
Environmen
Main Check Items
tal Items
Is
framework
the
Consideration
organizational
established
to
properly implement resettlement?

Are the capacity and budget
secured to implement the plan?

As
its countermeasures, it is needed to

prepare for the residential movements
with sufficient implementation capacity
and budget.
Is a plan developed to monitor the In the case that involuntarily residential

impacts of resettlement?

As

the plan for monitoring of the impact by
the movement.
(2)Living
Is there a possibility that the project In the case that involuntarily residential
and
will adversely affect the living conditions movements are happened due to the
Livelihoo
of inhabitants? Are adequate measures
d
considered to reduce the impacts, if
local community near project site. As
necessary?
the plan for monitoring of the impact by
the movement and take a consideration
for abbreviating the impacts.
Are considerations given to the In the case that resources recycling
existing recovery systems, including system are established followed by the
waste pickers?
it directly impacts on the current

resources recycling system including
waste pickers who earn a living
by
collecting wastes in the project site.
As
its countermeasures, it is needed to

consider the current resources recycling
system including waste pickers before
the project implementation.
4-41
Categor
Environmen
tal Items
Main Check Items
Consideration
Is there a possibility that waste In the case that waste collection and
transportation will adversely affect the transportation are implemented followed
regional traffic?
by the construction of the incineration

facility, it directly impacts on the local
transportation.
As its countermeasures,
it is needed to research whether there is

any
adverse
impact
transportation
due
on
the
to
local
waste
transportation and if any, appropriate

measures are taken.
Is there a possibility that effluents In the case that discharged water and
from the project and leachates form the leachate from waste disposal facility
followed by the construction of the
waste disposal sites will adversely affect
incineration facility, it adversely impacts
fisheries and other water uses by local
on the water utilization (especially
inhabitants (especially drinking water)?
drinking water) for local people. As its
countermeasures, it is needed to research
whether the project adversely impact on
the water utilization (especially drinking
water) for local people, and appropriate
measures is taken.
Is there a possibility that pathologic In the case that sanitary insects generate
insects or other disease vectors will followed by the construction of the
breed as a result of the project?
incineration facility, it directly impact on

project site.
is needed to research how to tackle the

sanitary
insects
implementation.
4-42
before
the
project
Categor
Environmen
(3)Heritage
Main Check Items
tal Items
Consideration
Is there a possibility that the project In the case that waste collection and
will damage the local archeological, transportation are implemented followed
historical,
heritage
cultural,
sites?
and
religious by the construction of the incineration
Are
adequate facility,
it
directly
impact
on
measures considered to protect these archaeologically, historically, culturaly,

sites in accordance with the countrys and religiously precious heritage and
laws?
historical
sites.
As
its

whether it does not damage these
heritage and historical sites and consider
the measures defined in Indonesian laws
and regulations.
(4)Landscap Is there a possibility that the project The construction of the incineration
e
will adversely affect the local landscape? facility directly impacts on scenery near
the
project
site.
As
its
Are necessary measures taken?
whether there is any adverse impact on
scenery and take appropriate measures.

(1)Impacts
Are adequate measures considered to The construction of the incineration
Others
during
reduce impacts during construction facility may generate pollutants (noise,
Construct
(e.g., noise, vibrations, turbid water, shake, muddy water, dust, exhaust gas,
ion
dust, exhaust gases, and wastes)?
wastes etc.).
is needed to take measures to abbreviate

these pollutants during the construction.
If construction activities adversely
The construction of the incineration
affect
facility may adversely impact on natural
the
natural
environment
(ecosystem), are adequate measures

considered to reduce impacts?
environment (ecology) near the project

site.
As its countermeasures, it is
needed to take measures to abbreviate

these impacts before the construction.
If construction activities adversely The construction of the incineration

affect the social environment, are facility may adversely impact on social
adequate
measures
considered
reduce impacts?
to impacts near the project site.
As its

measures to abbreviate these impacts
before the construction.
4-43
Categor
Environmen
Main Check Items
tal Items
Consideration
Are intangible measures being planned The
understanding
of
project
and implemented for individuals stakeholders including laborers about

traffic safety and public health directly
involved in the project, such as the
impacts on appropriate management of
establishment of a safety and health
the project. As its countermeasures, it
program, and safety training (including is needed to take safety training (traffic
traffic safety and public sanitation) for safety, public health etc.) to them before
the project implementation.
workers etc.?
(2)Monitori
ng
Does the proponent develop and It is needed to implement periodical

implement monitoring program for the monitoring regarding these points
described above and always abbreviate
environmental items that are considered
adverse impacts followed by the project
to have potential impacts?
implementation. So it is needed to plan
and implement the monitoring project
operators.
Are the items, methods and
The
frequencies
improvement
included
in
the
monitoring program judged to be
monitoring
appropriately.
produces
by
great
implementing
So it is needed to
implement appropriately.
appropriate?
Does the proponent establish an It is needed to establish the monitoring

(structure,
framework system
equipments,
budget
(organization, personnel, equipment, and
sustainability).
adequate budget to sustain the
adequate
monitoring
manpower,
and
their
monitoring framework)?
Are
any regulatory requirements It is needed to define the ways and
pertaining to the monitoring report frequency
to
report
from
project
system identified, such as the format operators to relevant Ministries.

and frequency of reports from the
proponent
to
the
regulatory
authorities?
(Source: Organized based on Japan Bank of International Cooperation, Environmental Check List: 21 Waste
Treatment and Disposal,
http://www.jbic.go.jp/ja/about/environment/guideline/confirm/pdf/021-watermanagement.pdf)
4-44
4.4 Outline of Laws Related to Consideration of the Partner

Country's Environmental Social Aspect
4.4.1 Legal System and Procedures Related to Environmental Assessment
In Indonesia, the Environmental Management Law (Law No. 4/1982 concerning Environmental
Management) was established in 1982, and responsibilities of the Indonesian Government for
environment protection through the implementation of environmental assessment (Analisis
Mengenai Dampak Lingkungan: AMDAL) was stipulated.
In 1997, the new Environmental Management Law (Law No. 23/1997 concerning Environmental
Management) was established, and it is stipulated in Article 15 that AMDAL shall be required for all
projects and activities that could possibly have a serious impact on the environment.
The AMDAL
procedures are stipulated in the Government Regulation (government ordinance = Peraturan

Pemerintah: p p) No.27/1999. Article 3 of the ordinance is as follows:
a) Projects and activities that could possibly have a serious impact on the environment include the
following:
Projects and activities that include changes of land form and landscape
Development of renewable and unrenewable natural resources
Projects and activities that could possibly cause consumption, destruction, and deterioration
of developed natural resources
Projects and activities that could possibly have an impact on social and cultural
environments
Projects and activities that could possibly have an impact on natural resource protection
areas and nature reserves
Introduction of new breeds of animals, plants, and microorganisms
Development and use of organic and inorganic natural resources
Use of technology that could possibly have a serious impact on the environment
Activities that are highly dangerous and could possibly have an impact on national security
b) The state minister for the environment interviews authorities concerned, and determines projects
and activities applicable to the above items (a) by considering the obtained opinions and proposals.
c) To implement projects and activities that have been determined to be applicable to the items (a) by
the state minister for the environment in procedure (b), implementation of AMDAL is necessary.
4-45
d) Projects and activities for which implementation of AMDAL is necessary are to be reviewed
periodically (at least every five years).
e) With regard to projects and activities other than prescribed in (b) (projects and activities that are
not targeted by AMDAL), the environmental management and monitoring policy document (Upaya
Pengelolaan .Lingkungan and Upaya Pemantauan Lingkungan:U KL/UPL) should be created and
needs to be approved by the administrative organization in charge.
Furthermore, Article 5 of the ordinance stipulates that severity of impact generated by projects and
activities is determined by one or more elements described below:
a) The number of people affected
e) Number of environmental elements affected
b) The area of land affected
f) Accumulative property
c) Time duration during which impact lasts
g) Reversibility and irreversibility
d) Intensity of impact
The Head of BAPEDAL (Badan Pengendalian Dampak Lingkungan: Environmental Management

Department which was integrated into the Environment Ministry in 2002) Decree No. 08/2000 is a
law regarding resident participation and information disclosure in AMDAL.
AMDAL related laws are as shown in Table 4-6.
Table 4-6 AMDAL related laws

Name
Outline
Government Regulation No.27/1999
Environmental assessment procedures
Head of BAPEDAL Decree No.KEP-056/1994
Guideline regarding the method of determining

severity of impact
State Minister of Environment Decree No.
Establishment of the AMDAL Commission to
KEP-54/MENLH/11/1995
evaluate impact on the project fields and
(superseding
the
Decree No. KEP-15/MENLH/3/1994)
regions
Local AMDAL guideline
AMDAL guideline for project fields and
regions
Head
of
BAPEDAL
Decree
No.
Technological guideline for the evaluation of
4-46
KEP-299/11/1996
social aspect in AMDAL
Head of BAPEDAL Decree No. KEP-105/1997
Guideline for monitoring the implementation of

RKL and RPL*
Head
of
BAPEDAL
Decree
No.
Guideline for the evaluation of public health in
KEP-124/12/1997
AMDAL
State Minister of Environment Circular Letter
Projects and activities for which UKL and UPL
No. B-1234/MENLH/08/1999
are required
State
Minister
of
Environment
No.2/2000 superseding
Decree
Decree
No.
Guideline for the evaluation of the AMDAL

document
KEP-29/MENKLH/7/1992
State
Minister
of
Environment
Decree
No.4/2000
State
Guideline regarding the creation of AMDAL

for the settlement of residents
Minister
of
Environment
Decree
No.5/2000
for the development of wetland
Guideline for AMDAL Commission work
40/2000
procedures
Head of BAPEDAL Decree No. 08/2000
Resident
participation
and
information
disclosure during the AMDAL process

Head of BAPEDAL Decree No. 09/2000
Projects and activities for which the AMDAL
17/2001
procedures are required
Guideline regarding the creation of UKL and
86/2002
UPL
(superseding
Decree
No.
KEP-14/MENLH/3/1994)
Note: RKL (Rencana Pengelolaan Lingkungan) is an environmental management plan, and RPL
(Rencana Pemantauan Lingkungan) is a monitoring plan.
2003)
4.4.2 Target Project

The State Minister of Environment Decree No. 17/2001 prescribes types and scales of projects for
which implementation of AMDAL is required as shown in Table 4-7.
4-47
Table 4-7
List of the projects subject to AMDAL procedure

Defence, Security
Ammunition storage construction

Naval base construction
Air force base construction
Battle training field construction
Shooting training for army, navy, air force
and police
All
Class A and B
Class A and B
Area10,000ha
Area10,000ha
Agriculture
Food crop, seasonal garden crop cultivation
Food crop, year round garden crop
cultivation
Seasonal cultivation
Non forestry farm land
Forestry farm land
Year round cultivation
Non forestry farm land
Forestry farm land
Area2,000ha
Area5,000ha
Area3,000ha
All
Area3,000ha
All
Fishery
Shrimp and fishery farmingbrackish
water
Floating cage-net and cage-net culture
farming
1)fresh water (lakes and marshes)
Area
Number of cage nets
2) ocean water
Area
Number of cage nets
Constructing farming facility beyond the
condition described below
1)Length of dock
2)Fishery process factory area
3)Depth of dock
Area50ha
1)
25ha
500
2)
25 ha
1000
300m
10ha
-4mLWS
Forestry
Forest products production

Tree planting
All
Area5,000 ha
Sanitation
Hospital construction
Class A and B and equivalent level

Transportation
Railway construction
Station construction
Subway construction
River dredging
Port and pier construction
25m
Upper class or class 1
All
Volume500,000m3
4-48
Length of dock
Or area of pier
Break water
Port related facility e.g. terminal,
warehouse and container storage site
Mooring buoy
Dredging
Initial dredging
Maintenance dredging
Reclaiming
Area
Volume of material to be reclaimed
Waste disposal generated from dredging
1)land area
Volume
Area of disposal site
2)waster are
200m
6,000m2
200m
5ha
10,000DWT
250,000m3
500,000m3
25ha
5,000,000m3
1)
250,000m3
5h
all
All (class I to V)
Constructing airport including related

facilities
Expanding airport including related
facilities
Expanding airport and relevant facility
including followings
1)Resettlement
2)Land acquisition
3)Reclaiming coastline
Area
Volume of material to be reclaimed
4)Earth cutting and banking
Ocean bottom cable lining
Class I to III
200 households
100ha
3)
25ha
100,000m3
500,000m3
All
Artificial satellite technology

Artificial satellite
construction
launching
station
All
Industry
Cement ( producing clinker)
Pulp production and pulp and paper
manufacturing excluding pulp and paper
manufacturing from waste paper
Petrochemical
Steel making
Lead smelting including recycling
Copper smelting including electrolytic
copper betray
Aluminum production
Industrial estate development
Ship building yard with dry dock
Air craft manufacturing
Ammunition and explosive production
Dry cell battery with mercury production
Wet lead acid battery production
All
All
All
All
All
All
All
All
4,000DWT
All
All
All
All
4-49
Organic and inorganic chemical production

which classified as toxic and hazardous
Industries not classified above and located
following areas
1)Urban
Metropolitan area
large city area
Middle class city area
Small class city area
2)Suburb area
All
1)
5ha
10ha
15ha
20ha
30ha
Local infrastructure
15m
200ha
2,000ha
1,000ha
500ha
1,000ha
Dam and water reservoir

Height
Water reservoir area
Irrigation
New construction
Expansion of existing area
Paddy field development by group
Reclaiming marshy ground for irrigation
purpose
Coastal conservation facility and riveran
estuary mouth channelization
River channelization and drainage canal
construction
1)Metropolitan and large scale city area
Length
Volume of spoil
2)Medium scale city area
Length
Volume of spoil
3)Suburban area
Length
Volume of spoil
vertical distance from coast500m
Construction of toll road

Construction underpass or underground
Renewing road with road expansion beyond
buffer area and constructing road
1)Metropolitan and large scale city area
Length
Or area
2)Medium scale city area
Length
Or area
3)Suburban area
Length
Solid waste
1) Engineered and sanitary landfill site for
non hazardous and hazardous wastes
Area of landfill site
Volume capacity
1)
5km
500,000m3
2)
10km
500,000m3
3)
15km
500,000m3
All
2km
1)
5km
5ha
10km
10ha
3)
30km
1)
10ha
4-50
2)landfill site in intertidal zone

Area of landfill site
Volume capacity
3)constructing transfer station
4)waste disposal site (Open Dumping type)
10,000t
2)
5ha
5,000t
1,000t/d
All
Development of residential area

Building in metropolitan area
Building in large scale city area
Building in middle scale city area
25ha
50ha
100ha
2ha
Constructing sludge from sewage treatment

plant and relevant facility
Constructing sewage treatment plant and
relevant facility
Constructing sewage system
Rain water drainage construction in
residential area
Building in metropolitan or large scale
city area
Building in middle scale city area
Developing drinking water supply system in
metropolitan and large scale city area
Area of water supply covered area
length of water supply system
Pumping up from lakes and marshes, river,
water spring and other surface water
Constructing office, educational, sport, art,
religious, shopping mall, and department
store
Land area
Construction area
Building resettling place
number of people for resettling
Land area
2ha
Covered area500ha
Waste water channel length5km

Waste water channel length5km
500ha
10km
Volume250liter/s
5ha
10,000m2
200 households
100ha
Energy and minerals

Mining industry
Mining area
Exploiting area for mining
Prospection and production
Coal and peat
Primary mineral
Secondary mineral alluvial fan
sediments
Non ferrous minerals
Radioactive substance exploitation,
treatment, and refinery
Lead mining, treatment and refinery
Ocean bottom mining
Disposing tailing to the ocean bottom
200ha
50haincreasing amount/y
250,000t/yCrude ore production

All
All
All
All
4-51
Ore treatment by cynide
All
Electricity
Electricity cable lining

Diesel, gas, steam power and combined
cycle power generation plant (coal
combustion)
Geo thermal power plant research,
development and construction
Hydro power plant
Height of dam
Water surface area
Amount of direct flowing
Solar, wind biomass and peat power
generation
150kW
100MW
55MW
15m
200ha
50MW
10MW
Oil field, Gas

Oil, gas development and production in
land area
Petroliam
Gas
ocean area
Equipment for oil and gas transportation,
e.g. excluding pipeline for oil and gas
field
1)Pipeline in land area
Length
Diameter
2) Pipeline in ocean area
3)LPG plant
4)LNG plant
Oil refinery
Used lubricant refinery and relevant facility

land area
5,000BOPD
30MMSCFD
All
1)
50km
20inch
All50MMSCFD
550MMSCFD
10,000BOPD
10,000t/d
geological features
Water pumping (shallow, deep underground
water and water spring)
50liter/sfrom one well or 5 wells of area

over 10ha
Tourism
100ha
All
Hotel
200units
5ha
All
Recreation park
Tourism area
Hotel
Number of rooms
Construction area
Golfing field
Nuclear development
Nuclear reactor
Experimental Reactor
Commercial reactor
Construction and operation of nuclear
power related facility excluding nuclear
Power100kW
All
Production amount50 fuel value/y
4-52
reactor
Nuclear fuel production
Treating and refining uranium
Radioactive waste treatment
Constructing
irradiation
equipment(category II to IV)
Radioactive isotope production
Producing mantle for thorium based
lanthanum
Production amount 100 yellow cake

base/y
All
Activity wource37,000TBq100,000 Ci
All
All
Hazardous waste management

Hazardous waste (classified B3 waste)
collection, utilization, treatment and storage
Service providing and sustainable activity

for managing hazardous and toxic wastes
(small scale activities such as used
lubricant oil, contaminated oil, slop oil
collection, lead, solvent recycling are
excluded)
Technology
Plants, animals and bio-technology product
developed through gene engineering
technology
Bio-technology product developed through
gene engineering technology
All
All
2003)
4.4.3 Procedures Related to the Implementation and Approval of EIA

In Indonesia, two terms, AMDAL and ANDAL, are used for environmental assessment. AMDAL
means environmental assessment and ANDAL means a report of environmental assessment. Major
steps in AMDAL approval procedures will be shown below (see Figure 4-7).
4-53
Figure 4-7
AMDAL Approval Procedures
Within 30 working days
2003)
4-54
I.
Introduction
This chapter summarizes the following
Background of the proposed project
Notes regarding the project
Project schedule
Team of the project entity and AMDAL

II. Large scale and relevant impacts
Outline of large scale and relevant environmental impacts requiring management and
monitoring , in accordance with the environmental impact predication and evaluation carried
out by ANDAL,
III. Environmental management and monitoring plan
This chapter summarizes in a table format the management and monitoring plan.
RKLtype of impact, source of impact, impact index, objective, activities, place, time
period, responsibly entity for implementation, advice and reporting
RPLtype of impact, source of impact, monitoring parameter, monitoring method, place,

time period, responsibly entity for implementation, advice and reporting
4.5 Activities Required to be Carried out by the Indonesia

Authorities (Implementing Body and Other Related
Organisations)
(1) Formulation of Environmental Regulations
Incineration of waste has not been carried out on a full fledge basis until now which has meant that
there in an absence of an environmental law that regulates incineration. It has been notified that a
draft has been prepared for regulating Dioxins, but it is also necessary to formulate general emission
standards for flue gas as soon as possible.
(2) Acceleration of 3R Activities
In Malan, an initiative of waste bank has been started to promote the collection of recyclable-waste
but this activity need to be accelerated and diversified.
(3) Promotion of Measures to Tackle the Problem of Waste Pickers at Landfills
This project has proposed to secure a large acceptance yard for the incinerating facility where the
waste brought in is dumped allowing the waste pickers to collect valuables. Presently, as the waste
pickers are not regulated, accidents with heavy equipments and accidents relating to hazardous or
dangerous goods have been largely reported. The proposed measure is expected to contribute to the
alleviation of this problem. However, this is just a temporary measure and the government needs to
introduce an effective measure.
4-55
Chapter 5
Financial and Economic Feasibility
5-1
5-2
(design-build-operation
scheme)
and
PPP
scheme
(build-own-operate
scheme
or
build-operate-transfer) are examined. In the DBO scheme, the difference lies in the method of
bearing the initial investment costs on the public side. In the DBO, whereas the public side bears
costs until the completion of works, in the PPP scheme, the private sector side bears costs including
the initial investment, and the public side bears equalized costs of operating costs over the operating
period as well as as well as the initial investment.
In the Study, financial and economic assessment is carried out assuming the PPP scheme as a
realistic scheme.
Figure 5-1 shows conceptual diagrams of the DBO scheme and PPP scheme.
Figure 5-1 Conceptual Diagram of Project Schemes
5-3
5.1 Calculation of project costs

conclude a project agreement with the public sector side. Based on the agreement, it is proposed that
the public sector side carry in waste and that the private sector side is consigned to construct, operate
and maintain the waste treatment facilities.
Concerning revenue for the SPC, it is expected to receive tipping fees (T/F) from the public sector
side and payment for generating energy from waste heat and supplying it to the power company
during the operating stage. The main items of expenditure are the personnel expenses, utility costs
and maintenance costs entailed in operating the treatment facilities and the cost of raising funds for
the initial investment, and these are used in calculating the necessary income and expenditure
balance in the project plan.
5.1.1 Basic Preconditions for the Project

The necessary project preconditions for examining economic feasibility are as described below.
Incidentally, it is assumed that the public sector side will acquire site, secure public consensus,
5-4
acquire authorizations and conduct the environmental assessment, and not to be included the
expenses except for the design support ones on the private sector side normally expected.
Concerning the rate of inflation, in cases where inflation causes changes to occur in the initial
investment cost and operation and maintenance cost, it is assumed that inter-linked revenues that can
absorb inflation will be set.
Table 5-1 Basic Preconditions for the Project

Item
Preconditions
Treatment capacity
Remarks
400 t/d x 2 incinerators
Operating days per 8,000 hours per year per incinerator

year
Annual
treated 256,000 t/y
800 t/d8,000 h0.96
volume
Waste haulage cost
Assuming that the transported waste is handed over Utilization of existing

in the receiving yard, no waste collection and collection routes
haulage costs are assumed on the project operator
side.
Site
The existing disposal site will be leased from the Precondition that site
Project period
Government of East Java Province.
development
work,
(Rental fee for existing site is not anticipated).
etc. is not required
Excluding the construction term, the project period

is assumed to be between 15-20 years.
Disposal
of Incineration ash and fly-ash can be treated on the Haulage
incineration residue
to
existing disposal site, so treatment costs are not neighboring disposal

assumed on the project operator side.
sites will be handled

by
the
project
operator.
Exchange rate
1JPY117.3IDR
As of December 14,
1USD77.95JPY
2011
5.1.2 Estimation of Construction Costs

The following paragraphs describe the results of designing the treatment system based on
5-5
information obtained in surveys of local waste collection and treatment conditions and hearings with
the public sector side, and estimating construction costs based on estimates and hearings from
Japanese-owned general construction firms and engineering companies and makers in Indonesia.
The estimations assume the total cost from trial operation to completion of works.
However, concerning existing infrastructure including power, water supply and access road to the
plant, it is assumed that this is already established and will incur no additional cost.
Table 5-2 Estimation of Construction Cost

Unit: million yen
Indonesian
Item
Foreign Portion
Civil and building works cost
1,800
1,800
Plant works cost
300
800
1,100
Equipment purchase cost
2,840
660
3,500
Design and supervision cost
2,440
60
2,500
General administration cost
540
330
870
Total
6,120
3,650
9,770
Portion
Cost
(1) Civil and building works cost

The cost estimation for civil and building works was consigned to a major Japanese-owned general
construction company.
In Indonesia, as there are hardly any general construction companies that have experienced the
construction of general waste treatment facilities, it is planned to consign execution including
structural design to a Japanese-owned general construction company that has extensive knowledge
and experience of the structure and countermeasures for vibration, odor, noise and heat in waste pits
and so on.
(2) Equipment and materials cost and transportation cost

As a result of observing conditions at some makers in Indonesia and conducting hearings at plant
5-6
engineering companies, it is planned only to consign manufacture of plate working products, air and
gas ducts, steel frame and boilers, etc. to Indonesian makers after first conducting detailed design
within Hitachi Zosen Corporation.
The weighing machine, water demineralizer, chemical injection unit and conveyors can be procured
in Indonesia, while other equipment will be procured from third countries .
Transportation costs are included in the estimated cost assuming handing over on site.
(3) Plant works cost

Engineering companies with experience of construction works on thermal power generation facilities
and plant facilities, etc. exist in Indonesia, and it has been confirmed that such companies possess
ample technology.
Accordingly, out of the plant works, it is planned for an Indonesian engineering company to carry
out the equipment installation, furnace installation and fire proofing, thermal insulation, coating and
piping works.
Concerning electrical and instrumentation works, cost estimation has been conducted assuming that
a Japanese engineering company with ample experience is consigned to perform all the work
including the ordering of equipment and materials.
(4) Design and supervision cost

Cost cutting is aimed for in design work through utilizing the designs of plant equipment constructed
in the past.
Concerning the site works and trial operation and adjustment work, locally employed personnel will
be assigned under supervision by Japanese engineers in an effort to limit costs.
5-7
(5) Insurance and general administration costs, etc.

Here, the costs of various types of insurance, for example, marine transportation insurance and
erection insurance in on-site works, cost of risk countermeasures and general administration costs
and so on are estimated.
Moreover, the following costs other than construction costs are assumed as capital costs (CAPEX):
-
As financial costs for fund procurement , 3% of the construction cost: 291 million yen
As land and building acquisition tax, 5% of construction cost (acquisition price): 485
million yen
5.1.3 Estimation of Operation and Maintenance Costs

Operation and maintenance costs are expected to include the costs of maintaining the basic
performance of facilities and appropriately treating the waste that is carried in over the project period
or until the completion of facilities. The following sections indicate the results of estimating
operation and maintenance costs.
(1) Personnel expenses

The following table shows the personnel that are required under the system designed with the project
in mind. Personnel for conducting sorting work in the waste receiving yard and operators for taking
incineration residues to the final disposal site and so on are not included because these activities are
outside of the scope of works.
5-8
Table 5-3 Operation and Operating Personnel Setup

B
E
F
Night shift
Day shift 1st shift 2nd shift 3rd shift
4
5
6
7
8
9
10
11
12
13
14
16
17
18
20
21
22
23
24
25
26
27
28
29
30
32
33
Project manager
Plant manager
Machine engineer
Electrical engineer
Operation generation manager
Facilities maintenance manager
Chemical analyzer
Weighing machine supervisor
Platform control staff
Waste crane operator

Incinerator and boiler operator
Electrical equipment controller
Machine controller
Maintenance inspector
1
1
1
1
1
1
1
1
2
1
2
1
1
Waste shovel loader

Ash shovel loader
8
1
Office staff
Total
1
2
1
1
Backup shift
Total
1
2
1
1
1
1
1
1
1
1
1
1
2
0
0
4
8
4
4
2
1
2
1
1
8
1
26
5
5
46
Personnel cost unit rates are based on the following preconditions reflecting the results of hearings.
-
Plant manager class: 3.6 million yen/year per person (422 million IDR/year/person)
Engineer class: 2.4 million yen/year per person (281 million IDR/year/person)
Operator class: 50,000 yen/month per person (5.8 million IDR/month/person)
Based on the preconditions concerning operating setup and personnel cost unit rates, the
personnel expenses are estimated to be 46 million yen/year (5,395 million IDR/year).
(2) Utility costs

Utility costs are estimated based on the findings of field investigations and hearings assuming the
5-9
following consumption levels calculated from the system design of the project.
In particular, as power-related costs (including sales to the power company) have a major impact on
the project feasibility, the calorific value per unit weight is set for waste in the rainy season
(November to March) and dry season (April to October) when calculating the amount of power sold.
Additionally, there is a lot of consumption regarding the chemicals used in treatment of waste gases,
chemicals used in treatment of incineration fly-ash, and fuel used in the start-up and stoppage of the
incinerator.
5-10
Table 5-4 Quantities of Utilities Consumption
Item
Used Amount
Basic charge
Power tariff for sold power
(Summer)
Power tariff
Power tariff for purchased power
(Summer)
Subtotal
Light oil charge
Auxiliary fuel use charge
Subtotal
Basic charge
Public water supply tariff Use charge
Subtotal
Hydraulic oil
Lubricating oil
Oil charges
Grease
Subtotal
Hypochlorous acid soda (10%)
Well water
Subtotal
treatment unit
Boiler compound
Chemical injection Deoxidizing agent
Boiler water preservative
unit
C
Subtotal
h
Slaked lime
Exhaust gas
e
Activated carbon
treatment equipment
m
Subtotal
i
Chlorine (35%)
c
Caustic soda (24%)
a
Positive ion exchange resin
l
Water
demineralizer
Negative
ion exchange resin
s
Sodium sulfite
Activated carbon
Subtotal
For equipment cooling tower
Cooling water
Subtotal
chemical
Fly-ash treatment
Cement
Subtotal
5-11
2,100
Unit
kW
78,771,600
kWh/year
152,880
163,468
2,506
900
2,900
500
22.9
2,868
1,721
560
736,368
120,060
16,675
26,680
120
24
30
800
3,043
kWh/year
liter/year
m3/year
liter/year
liter/year
kg/year
liter/year
kg/year
kg/year
kg/year
kg/year
kg/year
kg/year
kg/year
liter/year
kg/year
liter/year
kg/year
kg/year
323,495
kg/year
Based on the above amounts of consumption, the cost of utilities is estimated as 100 million yen per
year (11,744 million IDR per year). Moreover, assuming that the unit price of power sold is 1,050
IDR/kWh, the revenue obtained from selling power to the power company is estimated as 643.5
million yen per year (75,487 million IDR per year).
(3) Maintenance cost

In addition to maintenance of equipment in routine inspections, maintenance will be implemented on
incinerator furnaces upon stopping their operation. Upon referring to waste treatment in similar
projects, the incurred cost is estimated as 100 million yen per year (11,730 IDR per year) on average
over the project period.
(4) Estimation of other operating costs

The following items are imagined as other operating costs. The accuracy of these items and the costs
given will be enhanced in further investigations from now on.
Table 5-5 Projection of Other Operating Costs

Item
Environmental measurement costs

General affairs, accounting and other administrative costs
15
Land and building tax (price x 40% x tax rate(0.5%))
19
Contingency (annual operating cost x 5%)
14
Total
48
5.1.4 Summary of Operating Costs and Total Project Costs

Upon adjusting the costs described in sections 5.1.2 (1) through (4), the operating cost (OPEX) is
estimated as follows. Incidentally, revenue from power sales is given as a negative cost here.
5-12
Table 5-6 Summary of Operating Costs

Item
Operation and maintenance cost
46
5,395
Utilities cost
100
11,744
Maintenance cost
100
11,730
Other operating costs
48
5,630
Total
294
34,499
The following table shows the total project cost including a construction cost an operating cost for
15 years.
Table 5-7 Summary of Project Budget
(million yen)
Total Project Cost
Depreciation charge
(15 years)
Payment interest6%
Profit of the term
before-tax
Corporate tax
Tax rate25%
Sum total of operationg period

14,956
4,410
10,546
6,209
0
0
3,543
-3,543
2,666
666
1,999
Concerning the revenue, it is estimated to receive waste treatment revenue as a tipping fees (T/F)
from the public sector side and revenue from the sale of power to the power company as follows.
Table 5-8 Summary of Operation CostsRevenue

Item
Tipping Fee Revenue
Power revenue
Total
768
90,086
643.5
75,487
1,411.5
165,573
5-13
5.2 Outline Results of Preliminary Financial and Economic

Analysis
Concerning the preconditions used in financial and economic analysis, the estimation results
described in section 5.1 are used for the construction costs, operation costs and other project costs.
Other preconditions for financial and economic analysis are as follows.
Table 5-9 Preconditions for Financial and Economic Analysis
Item
Annual treatment
Preconditions
Remarks
256,000 t/y
volume
Project period
Operating period of 15 years
20 years was also

examined
Depreciation
Tax
Equal-installment depreciation adopted over
16-20 years for each
the operating period
equipment unit
Corporation tax 25%
Loss carried forward, 5

years
Loan
15 years is assumed
Interest
Policy rate 6%
Price fluctuation
Inflation is not taken into account.
Equity capital
Initial investment x 30%
As of November 2011
5.2.1 Assessment based on Financial Internal Rate of Return (FIRR)

In the municipal waste to energy project, project revenue is composed of waste treatment
consignment fees (tipping fees) from the public sector side and revenue from the sale of power to the
power company. The mean expenditure and revenue balance over the project period is as indicated
below.
5-14
Table 5-10 Mean Expenditure and Revenue Balance

Expenditure
million yen
Revenue
million yen
TF (Upper: Unit price,

Lower: t/y)
Construction cost
10,546
15
(Upper:construction cost,
Lower: period)
703
Personnel expenses
Utilities cost
Maintenance and repair costs
Measuring costs
Others
46
100
100
34
14
EBIT (pre-tax before paying

interest)
Total
414
1,411
0.0030
256,000
Power sales
1,050 IDR/kwh
(Exchange rate)
1 yen:117.3 IDR
1 dollar: 77.95 yen
Total
768
643
1,411
Upon calculating the financial internal rate of return (FIRR) assuming waste treatment cost of 3,000
yen/t (351,900 IDR/t), the project IRR works out as 6.4%, which is higher than the policy rate of
inflation of 6%. Therefore, the project is deemed to be financially feasible.
5.2.2 Sensitivity Analysis

Assuming the project preconditions in the financial and economic analysis in Chapter 5.1 to be the
base case, sensitivity analysis is carried out assuming parameters that have a major impact on the
project and parameters that include uncertainties.
5-15
Figure 5-2 Case Study in the Project

Revised condition1

-
Internal rate of
return constant
What is
tipping fee?
Revised condition 3
- Procurement interest rate: 8%
Revised condition 4
- Revenue from power sales:
Fluctuation

Revised condition 2
Table 5-11 Results of Sensitivity Analysis Based on Revised Conditions

Revised
Results of Sensitivity Analysis
Remarks
Condition
1
Tipping fee 3,000 yen / t2,400 yen/t
The tipping fee tends to fall due to

lengthening of the period (1520
years).
8.5%
The equity capital IRR is improved
Equity capital IRR 5.8% 9.0%
due to lengthening of the period
FIRR 6.4%
(1520 years).
3
(1) Case where the equity capital IRR is
In the case where the procurement
at the base case level:
interest rate is higher than expected, it
is necessary to raise the tipping fee.
(2) Case where the equity capital IRR is

the required level of 9.0%:
Tipping fee 3,000yen/t 3,800 yen/t
4
Case where revenue from electric power declines due to decline in the waste
quality (heating value) or sale price of electricity:
Since the tipping fee and revenue from sale of power are almost the same, in
the case where the revenue from sale of power falls by 10%, the overall revenue
is sustained through revising the tipping fee upwards by roughly 10%.
5-16
In the base case, the equity capital IRR is 5.8%, which is around the same as the policy interest rate
in Indonesia, indicating the need to improve profitability from the viewpoint of investors. Judging
from the results of sensitivity analysis and the remarks, it is important to enhance the project
feasibility and discuss the conditions for project participation through extending the project period,
increasing treatment costs or procuring low-interest funds and so on.
Estimation is also carried out on the greenhouse gases reduction effect in Chapter 5. Through
incorporating sales revenue from trading of carbon dioxide emission rights into the project, the
project profitability can be improved through adding a third source of revenue to waste treatment
fees and power sale revenue. The estimated revenue from such trading is estimated to be
approximately 10% of the revenue from power sales.
5.2.3 Assessment based on Economic Internal Rate of Return (EIRR)

The following items are taken into account when calculating the economic internal rate of return for
the project.
-
Waste volume reduction effect on existing final disposal sites
Effect in terms of limiting emissions of greenhouse gases
(1) Waste volume reduction effect on existing final disposal sites

Beno final disposal site in Surabaya, which was constructed in 2001, at a cost of 65 billion IDR,
which works out at 20,000 IDR per ton of waste that was carried into the site until it became full in
roughly seven years. Also, the operating cost of the TPA in Batu City is 30 million IDR/month,
which works out at 16,700 IDR per ton of waste assuming treatment of 61 tons per day.
Until now municipal waste has undergone final disposal, however, in the event where it undergoes
incineration treatment in the project, the quantity going to final disposal sites will be reduced, thus
enabling disposal sites to have longer service lives. On the other hand, residual wastes will arise
from incineration. Since it is intended to dispose of this incineration residue in the final disposal site
in the project, assuming that residue corresponding to roughly 5% of the volume of waste is
generated, the following waste volume reduction effect will arise. Economic assessment will be
conducted assuming this reduction effect to be a benefit.
5-17
(Reduction effect) = (Final disposal site cost per 1t of waste) x (Treated volume of waste) x (1-0.05)
(20,000IDR + 16,700IDR) 256,000 t/y 0.95
8,925 million IDR/y (76 million yen/y)
(2) Effect in terms of limiting emissions of greenhouse gases

Introduction of the waste incineration and power generation facilities will lead to the following
changes in emissions of greenhouse gases.
Table 5-12 Changes in Volume of Greenhouse Gases

Item
GHG reduction amount (t/y)

[Negative figures indicate increases]
Avoidance of methane generation due to landfill of
136,820
organic wastes
Increased generation due to incineration of plastic
127,543
waste
Reduction in use of fossil fuels enabled by waste
63,911
power generation
Increase in use of fuel due to wide area collection and
-6,314
transportation
GHG reduction amount
Total
66,874
The most recent price for carbon dioxide in the European market is 6-7 Euros per ton (November to
December, 2011), which works out as follows assuming that 1 Euro = 101.46 yen (the rate according
to the Nikkei newspaper as of December 21, 2011). Economic assessment will be conducted
assuming this reduction effect to be a benefit.
Annual reduction effect: 4,775 million IDR/year (41million yen/year)
(3) Results of economic internal rate of return (EIRR)

Concerning the economic internal rate of return (EIRR), a figure of 8.0% is obtained, indicating that
this waste to energy project can be significant in economic terms too.
5-18
Moreover, the results of calculating the net present value (NPV) and cost benefit (B/C) assuming a
discount rate of 6% are as indicated below.
Table 5-13 List of Results from Financial and Economic Assessment

FIRR (financial internal rate of return)
6.4%
EIRR (economic internal rate of
8.0%
return)
NPV (net present value)
1,439 million yen
B/C (cost benefit analysis)
1.14
As a result of the financial and economic analysis, the project is deemed to be feasible in terms of
the actual project profitability and the economic effect on society.
5-19
Table 5-14 Base Case

Base case
Accounting Year
P
r
o
f
i
t
a
n
d
l
o
s
s
S
h
e
e
t
-2
P
l
a
n
n
i
n
g
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
Unitmillion yen
Sum total of
operationg
i21,165
d
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
0
0
0
0
0
0
0
0
0
0
443
-443
-29
0
-29
413
-413
1
0
1
384
-384
30
0
30
354
-354
60
15
45
325
-325
89
22
67
295
-295
119
30
89
266
-266
148
37
111
236
-236
178
44
133
207
-207
207
52
155
177
-177
237
59
178
148
-148
266
67
200
118
-118
296
74
222
89
-89
325
81
244
59
-59
355
89
266
30
-30
384
96
288
Operating Revenue
Tipping Fee
Revenue by selling power
Operating Cost
Depreciation charge
Payment interest6%
Profit of the term
before-tax
Tax rate25%
Corporate ta
Accounting Year
C
a
s
h
-1
-2
-1
10,546
Financial arrangements
Reversal of Reserve for Depreciation
StakeCapital Ratio: 30%
Subsidy
Debt loan(long-term loans )
Capital Needs
Loss of the termpost-tax
Invest
Construction Cost
Preoperating CostOthers
Loan Redemption
Undistributed Capital
Undistributed Capital Balance
10
11
10
12
11
13
12
14
13
15
14
16
15
17
16
18
17
19
18
20
19
20
Unitmillion yen
Sum total of
operationg
i23,120
d
0
703
0
703
704
1
703
733
30
703
748
45
703
770
67
703
792
89
703
814
111
703
836
133
703
858
155
703
881
178
703
903
200
703
925
222
703
947
244
703
969
266
703
991
288
703
521
29
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
182
492
211
492
241
492
256
492
278
492
300
492
322
492
344
492
366
492
388
492
411
492
433
492
455
492
477
492
499
3,164
7,382
10,546
9,770
776
0
Unitmillion yen
Accounting Year
-2
Effects of reducing the existing final disposal site
Ben
Effects of reducing GHG emission
efit Total
-1
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
10
76
41
117
11
76
41
117
12
76
41
117
13
76
41
117
14
76
41
117
15
76
41
117
16
17
18
19
16
17
18
19
20
76
41
117
Unitmillion yen
Accounting Year
FINANCIAL CF
C
ECONOMIC CF
F EQUITY CF
Eva FIRR
luat EIRR
ion Equity IRR
-2
-1
-10,546
-10,546
-3,164
1,117
1,234
182
1,117
1,234
211
1,117
1,234
241
1,117
1,234
256
1,117
1,234
278
1,117
1,234
300
1,117
1,234
322
1,117
1,234
344
1,117
1,234
366
10
1,117
1,234
388
11
1,117
1,234
411
12
1,117
1,234
433
13
1,117
1,234
455
14
1,117
1,234
477
15
1,117
1,234
499
6.44%
8.03%
5.78%
B/C
Interest
B/C
NPV
1,164
1,098
1,036
977
922
870
821
774
730
689
650
6.00%
1.14
1,439
5-20
613
579
546
515
20
11,520
9,645
14,956
0
4,410
10,546
6,209
0
0
3,543
-3,543
2,666
666
1,999
2,028
10,546
3,164
0
7,382
17,957
29
0
9,770
776
7,382
5,163
Table 5-15 Condition 1

Condition
Accounting Year
P
r
o
f
i
t
a
n
d
l
o
s
s
S
h
e
e
t
-2
-1
Operating Revenue
Tipping Fee
Operating Cost
-2
-1
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
443
-443
-18
0
-18
413
-413
12
0
12
384
-384
41
9
32
354
-354
71
18
53
325
-325
100
25
75
295
-295
130
32
97
266
-266
159
40
119
236
-236
189
47
142
207
-207
218
55
164
177
-177
248
62
186
148
-148
277
69
208
118
-118
307
77
230
89
-89
337
84
252
59
-59
366
92
275
30
-30
396
99
297
0
425
106
319
0
425
106
319
0
425
106
319
0
425
106
319
0
425
106
319

Depreciation charge
Payment interest6%
Profit of the term
before-tax
Tax rate25%
Corporate ta
Accounting Year

C
a
s
Subsidy
h
Capital Needs
P
l
Invest
a
Construction Cost
n
n
Loan Redemption
i
n Undistributed Capital
g Undistributed Capital Balance
10,546
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg
527
0
527
539
12
527
560
32
527
580
53
527
603
75
527
625
97
527
647
119
527
669
142
527
691
164
527
713
186
527
735
208
527
758
230
527
780
252
527
802
275
527
824
297
527
846
319
527
846
319
527
846
319
527
846
319
527
846
319
527
510
18
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
0
0
0
0
0
0
0
0
0
0
492
17
492
47
492
68
492
88
492
110
492
133
492
155
492
177
492
199
492
221
492
243
492
265
492
288
492
310
492
332
846
846
846
846
846
3,164
7,382
10,546
9,770
776
0
Unitmillion yen
Accounting Year
-2
Ben
efit Total
-1
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
10
76
41
117
11
76
41
117
12
76
41
117
13
76
41
117
14
76
41
117
15
76
41
117
16
76
41
117
17
76
41
117
18
76
41
117
19
76
41
117
20
76
41
117
76
41
117
Unitmillion yen
Accounting Year
FINANCIAL CF
C
ECONOMIC CF
F EQUITY CF
Eva FIRR
luat EIRR
ion Equity IRR
-2
-1
-10,546
-10,546
-3,164
952
1,069
17
952
1,069
47
952
1,069
68
952
1,069
88
952
1,069
110
952
1,069
133
952
1,069
155
952
1,069
177
952
1,069
199
10
952
1,069
221
11
952
1,069
243
6.44%
7.94%
5.52%
6.00%
5-21
12
952
1,069
265
13
952
1,069
288
14
952
1,069
310
15
952
1,069
332
16
952
1,069
846
17
952
1,069
846
18
952
1,069
846
19
952
1,069
846
24,928
12,068
12,860
16,426
0
5,880
10,546
8,502
0
0
3,543
-3,543
4,958
1,240
3,719
20
952
1,069
846
24,829
3,737
10,546
3,164
0
7,382
17,946
18
0
9,770
776
7,382
6,883

Condition
Accounting Year
P
r
o
f
i
t
a
n
d
l
o
s
s
S
h
e
e
t
-2
P
l
a
n
n
i
n
g
Operating Revenue
Tipping Fee
Operating Cost
-2
-1
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
443
-443
146
36
109
413
-413
175
44
131
384
-384
205
51
154
354
-354
234
59
176
325
-325
264
66
198
295
-295
293
73
220
266
-266
323
81
242
236
-236
352
88
264
207
-207
382
96
287
177
-177
412
103
309
148
-148
441
110
331
118
-118
471
118
353
89
-89
500
125
375
59
-59
530
132
397
30
-30
559
140
419
0
589
147
442
0
589
147
442
0
589
147
442
0
589
147
442
0
589
147
442
10,546
Subsidy
Capital Needs
Invest
Construction Cost
Loan Redemption
1,410
767
643
821

Depreciation charge
Payment interest6%
Profit of the term
before-tax
Tax rate25%
Corporate ta
Accounting Year
C
a
s
h
-1
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg
637
109
527
659
131
527
681
154
527
703
176
527
725
198
527
747
220
527
770
242
527
792
264
527
814
287
527
836
309
527
858
331
527
880
353
527
902
375
527
925
397
527
947
419
527
969
442
527
969
442
527
969
442
527
969
442
527
969
442
527
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
0
0
0
0
0
0
0
0
0
0
492
144
492
167
492
189
492
211
492
233
492
255
492
277
492
300
492
322
492
344
492
366
492
388
492
410
492
432
492
455
969
969
969
969
969
3,164
7,382
10,546
9,770
776
0
Unitmillion yen
Accounting Year
-2
Ben
efit Total
-1
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
10
76
41
117
11
76
41
117
12
76
41
117
13
76
41
117
14
76
41
117
15
76
41
117
16
76
41
117
17
76
41
117
18
76
41
117
19
76
41
117
20
76
41
117
76
41
117
Unitmillion yen
Accounting Year
FINANCIAL CF
C
ECONOMIC CF
F EQUITY CF
Eva FIRR
luat EIRR
ion Equity IRR
-2
-1
-10,546
-10,546
-3,164
1,116
1,233
144
1,116
1,233
167
1,116
1,233
189
1,116
1,233
211
1,116
1,233
233
1,116
1,233
255
1,116
1,233
277
1,116
1,233
300
1,116
1,233
322
10
1,116
1,233
344
11
1,116
1,233
366
8.52%
9.93%
9.02%
6.00%
5-22
12
1,116
1,233
388
13
1,116
1,233
410
14
1,116
1,233
432
15
1,116
1,233
455
16
1,116
1,233
969
17
1,116
1,233
969
18
1,116
1,233
969
19
1,116
1,233
969
28,200
15,340
12,860
16,426
0
5,880
10,546
11,774
0
0
3,543
-3,543
8,231
2,058
6,173
20
1,116
1,233
969
27,265
6,173
10,546
3,164
0
7,382
17,928
0
0
9,770
776
7,382
9,337

Condition
Accounting Year
Operating Revenue
P
Tipping Fee
r
o
f
Operating Cost
i
t
a
n
d
l
o
s
s
S
h
e
e
t
-2
-1
-1
Accounting Year
-2
Ben
efit Total
-1
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg period
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
0
0
0
0
0
0
0
0
0
0
591
-591
28
7
21
551
-551
68
17
51
512
-512
107
27
80
472
-472
146
37
110
433
-433
186
46
139
394
-394
225
56
169
354
-354
264
66
198
315
-315
304
76
228
276
-276
343
86
257
236
-236
383
96
287
197
-197
422
105
316
157
-157
461
115
346
118
-118
501
125
375
79
-79
540
135
405
39
-39
579
145
435

Depreciation charge
Payment interest6%
Profit of the term
before-tax
Tax rate25%
Corporate ta
Accounting Year
-2

C
a
s
Subsidy
h
Capital Needs
P
l
Invest
a
Construction Cost
n
n
Loan Redemption
i
10,546
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg period
724
21
703
754
51
703
783
80
703
813
110
703
842
139
703
872
169
703
901
198
703
931
228
703
960
257
703
990
287
703
1,019
316
703
1,049
346
703
1,079
375
703
1,108
405
703
1,138
435
703
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
232
492
262
492
291
492
321
492
350
492
380
492
409
492
439
492
468
492
498
492
527
492
557
492
586
492
616
492
645
3,164
7,382
10,546
9,770
776
0
Unitmillion yen
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
10
76
41
117
11
76
41
117
12
76
41
117
13
76
41
117
14
76
41
117
15
76
41
117
16
17
18
19
16
17
18
19
20
76
41
117
Unitmillion yen
Accounting Year
FINANCIAL CF
C
ECONOMIC CF
F EQUITY CF
Eva FIRR
luat EIRR
ion Equity IRR
-2
-1
-10,546
-10,546
-3,164
B/C
NPV
1,322
1,439
232
1,322
1,439
262
1,322
1,439
291
1,322
1,439
321
1,322
1,439
350
1,322
1,439
380
1,322
1,439
409
1,322
1,439
439
1,322
1,439
468
10
1,322
1,439
498
11
1,322
1,439
527
12
1,322
1,439
557
13
1,322
1,439
586
14
1,322
1,439
616
15
1,322
1,439
645
9.17%
10.66%
9.00%
B/C
1,357
1,281
1,208
1,140
1,075
1,014
957
903
852
803
758
8.00%
1.33
3,428
5-23
715
675
636
600
20
24,237
14,592
9,645
14,956
0
4,410
10,546
9,281
0
0
4,725
-4,725
4,556
1,139
3,417
24,509
3,417
10,546
3,164
0
7,382
17,928
0
0
9,770
776
7,382
6,581
Chapter 6
Project Implementation Schedule
6-1
6-2
Table 6-1 shows the anticipated schedule for implementation of the project.
Next fiscal year, on receiving the findings of the Study, the full-scale F/S will be implemented in
collaboration with the local partners. Moreover, based on the results of this Study, appeals to the
Indonesian government aimed at securing recognition as a PPP undertaking will be started; moreover,
in tandem with implementation of the full-scale F/S, the local governments will continue to be
encouraged to rank the order of priority for implementation of the project. In the case where the
project is deemed to be feasible based on the full-scale F/S, environmental impact assessment will be
implemented and discussions will be held with local residents with a view to forming consensus
within the municipalities and province where the project will be located. At the same time,
preparations and procedures for implementing tender will be conducted in the local municipalities
with a view to implementing the tender so that the successful bidder is decided by the end of fiscal
2013.
The operator that is selected in the tender will start the basic design from fiscal 2014 and complete
the design work including detailed design within the fiscal year. It will begin the civil and
construction works and equipment manufacture from the middle of the year and, following a year of
plant works, complete the works by the middle of fiscal 2016. After that, it will conduct trial
operation and training for local operators for six months and commence full-scale operation from
fiscal 2017.
The project implementation setup will be in accordance with the PPP scheme based on the BOT
system described in Chapter 5.
6-3
Table 6-1 Project Implementation Schedule
(Source : Created by the Research Group)
6-4
Chapter 7
Implementation Capacity of the Implementing
Agencies in Indonesia
7-1
7-2
7.1 Implementation Capacity of the Implementing Agencies in

Indonesia
7.1.1 Implementing Agencies in City and Regency Governments
In Article 14 of the Decentralization Law (Law No.32/2004) and Annex C-6 of Government
Ordinance 38 of 2008, it is stipulated that waste management services in municipalities and
regencies are the autonomous affairs of each city and regency. Accordingly, waste management in
Malang City, Batu City and Malang Regency is currently managed by the cleansing and parks
directorates and human settlement and spatial planning directorates in each city and regency.
(1) Malang City

1) Jurisdiction and Authority
In the Malang City Ordinance on Affairs of the Cleansing and Parks Directorate (No.48/2008),
Articles 1-20 prescribe the jurisdiction and authority of the Cleansing Services Department and
Cleansing Management Department as follows.
-
Cleansing Services Department
a) Collection and analysis of information based on the cleansing services plan

b) Equipment procurement and maintenance concerning cleansing services
c) Collection of fees related to cleansing services
d) Promotion of public participation in waste management
e) Guidance and improvement of cleansing services
f)
Technical examination concerning granting and cancellation of authorizations related to

cleansing services
g) Responding to complaints concerning cleansing, parks and cemetery management work

h) Securing the minimal service model (MSM) concerning cleansing services
i)
Evaluation and reporting on cleansing services
j)
Execution of other affairs instructed by the directorate director based on the jurisdiction
Cleansing Management Department
a) Collection and analysis of information based on the cleansing management plan

b) Cleansing of roads, public areas, residential areas, parks and cemeteries
c) Cleansing of drainage channels
d) Management of transfer station facilities (TPS) and disposal sites (TPA)
e) Monitoring and supervision of cleansing management
f)
Securing the minimal service model (MSM) concerning cleansing management
g) Evaluation and reporting on cleansing management

h) Execution of other affairs instructed by the directorate director based on the jurisdiction
7-3
2) Organization and Personnel

Figure 7-1 shows the organization chart of the Cleansing and Parks Directorate (Dinas Kebersihan
dan Pertamanan, DKP), which is the department in charge of waste management in Malang City.
The Cleansing Services Department and Cleansing Management Department, highlighted in yellow,
are the departments responsible for waste management.
Figure 7-1 Malang City Cleansing and Parks Directorate Organization Chart
Director General of Cleansing and Parks
Functional Support Unit
Secretariat
Planning
Section
Cleansing Services
Department
Cleansing Management
Department
Parks Management
Department
Facilities Management
Section
Roads, Parks &Cemeteries

Cleansing Section
Fee Collection
Section
Collection and Haulage

Section
Claim Response
Section
Transfer Stations (TPS) &

Disposal Sites (TPA)
Management Section
General Affairs
Section
Financial
Section
Cemeteries Management
Department
Parks Section
Registration Section
Greenification
Section
Facilities Management
Section
Streetlights
Section
Resident Liaison
Section
Regional Support Implementation Bureau (UPTD)
Source: Prepared from the Malang Regency homepage
Table 7-1 shows the number of employees of Malang City Cleansing and Parks Directorate as of
October 2011. The Cleansing Services Department and Cleansing Management Department, which
are involved with waste management, have a combined total of 976 employees.
Table 7-1 Malang City Cleansing and Parks Directorate Employees

Department
Number of
Employees
Cleansing and Parks Directorate
Secretariat
57
Cleansing Services Department
37
Facilities Management Section

Fees Collection Section
(8)
(24)
Complaint Handling Section
(5)
Cleansing Management Department
939
7-4
Roads,
Parks
and
Cleansing Section
Cemeteries
Note)
Collection and Haulage Section

Transfer Station Facilities and
Disposal Site Management Section
(853)
(48)
(38)
Parks Management Department
153
Cemeteries Management Department
50
Regional Technical Implementation
15
Directorate (in Charge of Parks)

Regional Technical Implementation
86
Directorate (in Charge of Sewerage)

Total
1,338
Note: This includes 781 collectors (Yellow Force).

Source: Hearing at Malang City Cleansing and Parks Directorate
3) Related Facilities and Owned Equipment

The waste-related facilities managed by Malang City as of October 2011 comprise 71 transfer station
facilities (TPS) and one disposal site (Supit Urang Disposal Site). Additionally, composting facilities
are combined with 11 transfer station facilities (TPS Manyar, TPS Malabar, TPS Menjing, TPS
Tlogomas, TPS Cakalang, TPS P3GT/Arjosari, TPS Pandanwangi, TPS Velodrome, TPS Narotama,
TPS Gadang, TPS Oro-Oro Dowo), and these separate the raw waste and garden waste, etc. from the
waste gathered at the transfer station facilities and convert them into compost.
Table 7-2 shows the waste-related equipment that is owned by Malang City.
Table 7-2 Waste Management Equipment in Malang City

Category
Type of Equipment
Quantity
Collection
Dump truck
16
vehicles
Arm roll truck
14
Pickup truck
Flat truck
Disposal site
Bulldozer
equipment
Back hoe
Source: Data of Malang City Cleansing and Parks Directorate
7-5
4) Budget and Revenue from Fees

The budget of Malang City Cleansing and Parks Directorate in 2010 was approximately 60 billion
Rp, of which the waste-related budget was approximately 12.5 billion IDR 1. Waste collection and
treatment charges in Malang City are levied based on Malang City Ordinance concerning Waste
Cleansing Services (No. 9/2009). Revenue from fees in 2010 amounted to approximately 5.1 billion
IDR 2 , accounting for roughly 40% of the waste-related budget of the Cleansing and Parks
Directorate.
Concerning business waste, business owners regularly pay fees to the Cleansing Directorate in return
for waste collection services conducted by the Directorates collection personnel. As for household
waste, employees recruited by the local communities (Rukun Tetangga, RT) collect the waste
discharged by each household and carry it to the transfer station facilities (TPS). The Cleansing
Directorate collection personnel then carry the waste from the transfer station facilities (TPS) to the
disposal site (TPA) for treatment. Each household pays a fixed fee to the local community, and the
local communities pay fees excluding the costs of collecting and hauling waste from households to
transfer station facilities (TPS) to the Cleansing Directorate 3.
(2) Batu City

In the Batu City Ordinance on Affairs of the Human Settlement and Spatial Planning Directorate (No.
60/2008), Articles 18~21 stipulate the following regarding the jurisdiction and authority of the
Cleansing Department.
a) Formulation of policies and plans on waste management
b) Supervision of technical services related to waste management
c) Implementation of work concerning collection, haulage, utilization and disposal of waste
d) Environmental and sanitary management in waste management and utilization
e) Planning, implementation and monitoring concerning disposal sites and other sanitary
facilities and associated infrastructure
f)
Promotion of public participation in environmental sanitation
g) Procurement and maintenance of sanitary facilities and associated infrastructure and

preparation of a ledger
h) Collection of waste collection and treatment fees
i)
1
2
3
Monitoring, assessment and reporting for the cleansing utility
Hearing at Malang City Cleansing and Parks Directorate

7-6
j)

Figure 7-2 shows the organization chart of the Human Settlement and Spatial Planning Directorate
(Dinas Cipta Karya dan Tata Ruang, DCKTR), which is the department in charge of waste
management in Batu City. The Cleansing Department, highlighted in yellow, is the department
responsible for waste management. The Cleansing Services Section is in charge of the collection and
haulage of waste, maintenance of vehicles and levying of collection and treatment fees, etc., while
the Cleansing Management Section is responsible for the operation and maintenance of transfer
station facilities (TPS) and disposal sites (TPA).
Figure 7-2
Organization Chart of Batu City Human Settlement and Spatial Planning Directorate
Director General of Human Settlement and Spatial Planning
Human Settlement
Department
Secretariat
Spatial Planning
Department
Settlement Planning
Section
Special Districts &

Areas Section
Urban Area Section
City Section
Personnel & General

Affairs Section
Finance Section
Cleansing
Department
Parks and Streetlights

Department
Planning and Assessment

Section
Cleansing Services
Section
Parks and Cemeteries

Section
Section
Greenification & Streetlights

Section
Living Environment &

Waterworks Section
Source: Data of Batu City
Table 7-3 shows the number of employees of Batu City Cleansing Department as of October 2011.
The Human Settlement and Spatial Planning Directorate has 232 employees 4 , of which
approximately 50% belong to the Cleansing Department.
Table 7-3 Batu City Cleansing Department Employees

Number of
Department
Employees
Cleansing Department
Cleansing Services Section

4
Hearing at Batu City Cleansing Department
7-7
111
Section manager
(1)
Clerical staff
(11)
Field staff
(99)
Cleansing Management Section
Section manager
(1)
Clerical staff
(4)
Total
117
Source: Data of Batu City Cleansing Department

The waste-related facilities managed by Batu City as of October 2011 comprise 27 transfer stations
(TPS) and one disposal site (Tlekung Disposal Site). Additionally, composting facilities are
combined with Tlekung Disposal Site.
Table 7-4 shows the waste-related equipment that is owned by Batu City.
Table 7-4
Waste Management Equipment in Batu City
Category
Collection
vehicles
Disposal site
equipment
Type of Equipment
Quantity
Dump truck
Arm roll truck
Flat truck
Wheel loader
Bulldozer
Back hoe
Source: Data of Batu City Cleansing Department

The budget of Batu City Cleansing Department in 2010 was approximately 3.8 billion IDR,
accounting for roughly 7% of the budget (approximately 56 billion IDR) allocated to the Human
Settlement and Spatial Planning Directorate 5.
Waste collection and treatment charges in Batu City are levied based on Batu City Ordinance
concerning Waste Cleansing Services (No.17/2010). Revenue from fees in 2010 amounted to
approximately 380 million IDR 6, accounting for roughly 10% of the annual budget of the Cleansing
5
6

7-8
Department. The methods used to collect waste and levy service fees are the same as in Malang City.
(3) Malang Regency

In the Malang Regency Ordinance on Affairs of the Human Settlement and Spatial Planning
Directorate (No.14/2008), Article 35 prescribes the jurisdiction and authority of the Cleansing and
Parks Department Cleansing Section as follows.
a) Formulation of waste management facilities construction and management plans
b) Formulation of waste management plans
c) Implementation of waste collection, haulage, utilization and disposal
d) Securing of funds for construction of waste management facilities
e) Technical support concerning waste management for districts, villages and communities
f)
Development of waste treatment technologies based on community strengthening
g) Planning and expansion of cleansing service areas

h) Management and supervision of the waste collection system
i)
Planning and construction of transfer station facilities (TPS)
j)
Planning and construction of environmentally harmonious integrated waste management

facilities (TPST)
k) Cleansing of roads, sidewalks, public areas and drainage channels

l)
Maintenance of waste management equipment and facilities and preparation of a ledger
m) Collection of waste collection and treatment fees

n) Promotion of public participation in waste management
o) Maintenance of disposal sites and supervision and management of environmental impacts
p) Coordination with related operators for maintenance and improvement of waste
management facilities
q) Research and development of efficient and effective waste management suited to local
characteristics
r)

(Dinas Cipta Karya dan Tata Ruang, DCKTR), which is the department in charge of waste
management in Malang Regency. The Cleansing and Parks Department Cleansing Section,
highlighted in yellow, is the department responsible for waste management.
7-9
Figure 7-3 Malang Regency Human Settlement and Spatial Planning Directorate Organization Chart
Director General of Human Settlement and Spatial Planning
Secretariat
Personnel & General

Affairs Section
Spatial Planning
Department
Finance Section
Human Settlement
Department
Building Planning
Department
Planning and Assessment

Section
Cleansing & Parks

Department
Spatial Planning
Section
Planning and Monitoring

Section
Planning & Monitoring

Section
Cleansing Section
Spatial Utilization
Section
Development Management
Section
Waterworks
Section
Parks Section
Spatial Management
Section
Structural Management
Section
Living Environment
Section
Cemeteries Section
Source: Prepared from the Malang Regency homepage (http://ciptakarya.malangkab.go.id/index.php?kode=28)
Table 7-5 shows the number of employees of Malang Regency Cleansing and Parks Department as
of October 2011. The Human Settlement and Spatial Planning Directorate has approximately 360
employees 7, of whom roughly 60% belong to the Cleansing and Parks Department.
Table 7-5 Malang Regency Cleansing and Parks Department Employees

Number of
Department
Employees
Cleansing and Parks Department
5
196
Clerical staff
(14)
Collection staff
(169)
Disposal site staff
(13)
Parks Section
11
Cemeteries Section
3
Total
215
Source: Hearing at Malang Regency Cleansing and Parks Department

The waste-related facilities managed by Malang Regency as of October 2011 comprise 64 transfer
stations (TPS) and five open dumping disposal sites. Additionally, there are three integrated waste
7
Hearing at Malang Regency Cleansing and Parks Department
7-10
management facilities (TPST) that sort metals, plastics and bottles, etc. from the waste discharged
from households on the village level and implement the composting of raw waste.
Table 7-6 shows the waste-related equipment that is owned by Malang Regency.
Table 7-6 Waste Management Equipment in Malang Regency

Category
Type of Equipment
Quantity
Collection
Dump truck
vehicles
Arm roll truck
Disposal site
Bulldozer
equipment
Wheel loader
Back hoe
18
Source: Hearing at Malang Regency Cleansing and Parks Department

Table 7-7 shows the budget of Malang Regency Cleansing and Parks Department for 2011. Out of
the budget (approximately 2.7 billion IDR.), approximately 90% (2.5 billion IDR.) is allocated to the
Cleansing Section. Incidentally, out of the Human Settlement and Spatial Planning Directorate
budget of approximately 37 billion yen in 2011 8, approximately 7% is allocated to the Cleansing and
Parks Department.
Table 7-7 Malang Regency Cleansing and Parks Department 2011 Budget
Department
Budget (100 million IDR.)
Cleansing Section
25.23
Parks Section
1.65
Cemeteries Section
0.46
Total
27.34
Source: Data of Malang Regency Cleansing and Parks Department
Waste collection and treatment charges in Malang Regency are levied based on the Malang Regency
Ordinance concerning Waste Collection Services (No. 69/2003). The revenue from fees in 2010 was
approximately 300 million IDR, 9 accounting for roughly 12% of the annual budget of the Cleansing
Section. The methods used to collect waste and levy service fees are the same as in Malang City.
8
9
Data of Malang Regency Cleansing and Parks Department

Data of Malang Regency Cleansing and Parks Department
7-11
7.1.2 Implementing Agencies in the Provincial Government

Article 13 of the Decentralization Law (Law No.32/2004) stipulates that Administrative services
crossing over municipalities and regencies are under the authority of provincial governments; and
Annex C-6 of the supplementary Government Ordinance 38 of 2008 prescribes that provincial
governments should take the initiative concerning rules, organization, authorizations, planning,
implementation and financial support of waste management services crossing over municipalities
and regencies based on the policies of central government.
Accordingly, the body responsible (with initiative for) implementing the wide area waste to energy
business in Greater Malang is the East Java Province Human Settlement and Spatial Planning
Directorate.
(1) Jurisdiction and Authority

In the East Java Provincial Ordinance concerning Affairs of the Human Settlement and Spatial
Planning Directorate (No. 90/2008), Articles 14-20 prescribe the jurisdiction of the Division of
Water Supply & Environmental Sanitation as follows.
a) Collection and analysis of information for planning and development of the public water
supply and environmental sanitation sector crossing over municipalities and regencies
b) Facilities construction and maintenance and technical support to promote participation
by stakeholders for development of the public water supply and environmental sanitation
sector crossing over municipalities and regencies
c) Execution of other affairs instructed by the directorate director based on the jurisdiction
(2) Organization and Personnel

(Dinas Cipta Karya dan Tata Ruang, DCKTR), which is the supervisory department in charge of
waste management in East Java Province. The Division of Water Supply & Environmental Sanitation,
highlighted in yellow, is the department responsible for waste management.
As of October 2011, the Human Settlement and Spatial Planning Directorate has approximately 350
employees, of whom 41 (1 division manager, 3 section managers, 37 employees) belong to the
Division of Water Supply & Environmental Sanitation 10.
10 Hearing at East Java Division of Water Supply & Environmental Sanitation
7-12
Figure 7-4 East Java Human Settlement and Spatial Planning Directorate Organization Chart
Director of Human
Settlement & Spatial Planning
Secretariat
Program Preparation Section
Financial Section
G. Aff. Section
Division of
Building Planning
Division of
Spatial Planning
Division of Water Supply &

Environmental Sanitation (WSES)
Division of
Housing
Division of
Information & Technology
Section of
Building Guideline
Section of
Urban Spatial Planning
Section of
WSES Planning
Section of
Housing Planning
Section of
Material Testing
Section of
Building Planning
Section of
Rural Spatial Planning
Section of
Urban WSES Planning
Section of
Urban Housing Planning
Section of Information
Service Development
Section of
Building Management
Section of Control &

Evaluation of Spatial Planning
Section of
Rural WSES Planning
Section of
Rural Housing Planning
Section of
Administration
Section of
Document
(Source: East Java Human Settlement and Spatial Planning Directorate)
(3) Budget and Subsidies

The budget of the East Java Human Settlement and Spatial Planning Directorate in 2011 was
approximately 216 billion IDR, of which approximately 28.5 billion IDR was allocated to the
Division of Water Supply & Environmental Sanitation. Of this, approximately 650 million IDR was
devoted to waste management and was used in conducting F/S studies and EIA studies, etc. on
disposal site construction projects in the Greater Malang area 11.
Autonomous waste treatment projects in municipalities and regencies are the unique affairs of the
municipalities and regencies concerned, and the provincial government offers no subsidies for the
construction of facilities and procurement of associated equipment, etc. In wide area waste treatment
projects, as the provincial government takes the initiative, it bears the costs of planning, survey and
land acquisition. However, even in wide area treatment, the provincial government believes that the
municipalities and regencies should bear a certain level of cost for procuring collection vehicles and
so on, and it hopes to receive central government subsidies and investment from private corporations
regarding construction of facilities 12.

7-13
7.1.3 Related Agencies in the Central Government

The main agencies with jurisdiction over waste management within the Government of Indonesia are
the Ministry of Public Works and Ministry of Environment. The Ministry of Public Works mainly
has jurisdiction over the practical management of general waste collection, haulage and disposal, etc.,
while the Ministry of Environment is mainly responsible for institutional design including
preparation of waste-related legislation and formulation of 3R and EPR policies, etc. Also, the
Ministry of Energy and Mineral Resources is involved in the preparation of legislation and
formulation of policy concerning the dissemination and promotion of new and renewable energies
including waste to energy.
Additionally, the main agencies concerned with construction of waste treatment facilities based on
public-private partnership (PPP) are the Ministry of Finance, the National Development Planning
Agency and the Investment Coordination Agency.
(1) Ministry of Public Works

The Ministry of Public Works (Kementerian Pekerjaan Umum, KPU) comprises the Directorate
General of Spatial Planning, the Directorate General of Highways, the Directorate General of Water
Resources, and the Directorate General of Human Settlement (Direktorat Jenderal Cipta Karya),
which has jurisdiction over living environment, water supply and sanitation and waste management,
etc.
In the Ministerial Ordinance concerning Organization and Jurisdiction of the Ministry of Public
Works (No.8/PRT/M/2010), Articles 656-657 prescribe that the Directorate of Environmental
Sanitation Development in the Directorate General of Human Settlement is responsible for the
formulation of policies and strategy, technical support, investment guidance and compilation of
technical standards concerning wastewater and waste management, while Articles 671~672 prescribe
that the Subdit of Solid Waste in the Directorate of Environmental Sanitation Development is
responsible for providing technical support and operational support concerning waste management.

Figure 7-5 shows the organization chart of the Directorate General of Human Settlement. The Subdit
of Solid Waste in the Directorate of Environmental Sanitation Development, highlighted in yellow, is
the department responsible for waste management. However, the Subdit of Technical Planning
conducts planning and budget formulation, while the Subdit of Regulational and Institutional
Development coordinates the formulation of ministerial ordinances.
7-14
As of October 2011, the Directorate of Environmental Sanitation Development has approximately

130 employees, and the Subdit of Solid Waste has 25 employees (1 subdit manager, 3 section
managers, 23 employees) 13.
Figure 7-5
Organization Chart of the Ministry of Public Works, Directorate General of Human

Settlement
Director General of
Human Settlement
Secretariat of
Directorate General
Personnel and
Organization Section
Financial
Section
Legal &
Legislation Section
G.Aff.&State Owned
Mngt Section
Directorate of
Programming
Directorate of
Settlement Development
Directorate of Buildings and

Environmental Management
Directorate of
Water Supply Development
Directorate of Environmental
Sanitation Development
Subdit. of
Policy and Strategy
Subdit. of
Technical Planning
Subdit. of
Technical Planning
Subdit. of
Technical Planning
Subdit. of
Technical Planning
Subdit. of
Program and Budgeting
Subdit. of
New Settlement Development
Subdit. of Buildings
Mngt and State Residences
Subdit. of
Region-I
Subdit. of
Sewerage
Subdit. of
Foreign Cooperation
Subdit. of Settlement
Improvement of Region-I
Subdit. of
Region I
Subdit. of
Region-II
Subdit. of
Drainage
Subdit. of
Performance Evaluation
Subdit. of Settlement
Improvement of Region-II
Subdit. of
Region-II
Subdit. of
Investment
Subdit. of
Solid Waste
Subdit. of
Data and Information
Subdit. Of Arrangements
and Institutional Guidance
Subdit. Of Arrangements
Subdit. of Arrangements
Subdit. of Regulational
and Institutional Development
Source: Ministry of Public Works
3) Budget and Subsidies

The 2011 budget of the Directorate of Environmental Sanitation Development was approximately 3
trillion IDR, of which approximately 700 billion IDR was allocated to waste-related affairs 14.
No clear provision have been confirmed concerning subsidization of local governments in the waste
treatment utility, however, the Ministry of Public Works is able to allocate facilities construction
funds, etc. from the above waste affairs budget to provinces, municipalities and regencies that
indicate a desire to conduct waste management according to the national strategy (KSNP-SPP
(No.21/PRT/M/2006) 15 . For example, in cases where provinces, municipalities and regencies
compile wide area waste treatment plans and take budgetary steps for land acquisition, collection
13
Hearing at the Subdit of Solid Waste, Directorate of Environmental Sanitation Development

14 Hearing at the Subdit of Solid Waste, Directorate of Environmental Sanitation Development
15 According to the responsible official at the Subdit of Solid Waste, Directorate of Environmental Sanitation
Development, this budget measure is called the stimulation budget geared to inducing local governments to comply
with national policy.
7-15
truck procurement and access road construction, etc., the Ministry of Public Works has previously
subsidized the entire cost of facilities construction. In reality, the Ministry of Public Works,
provinces, municipalities and regencies decide the method of bearing costs in each project case.
(2) Ministry of Environment

The Ministry of Environment (Kementerian Lingkungan Hidup, KLH) is composed of the
Environmental
Degradation
Planning
and
Department,
Climate
Change
Pollution
Department,
Management
Department,
Environmental
Legislation
Environmental
Department,
Environmental Communication Department, Environmental Technology and Capacity Building

Department and the Department of Hazardous and Toxic Substance, Hazardous and Toxic Waste and
Solid Waste Management (Deputi Bidang Pengelolaan Bahan Berbahaya dan Beracun, Limbah
Bahan Berbahaya dan Beracun dan Sampah), which has jurisdiction over hazardous waste
management and waste-related legal systems and recycling.
In the Ministerial Ordinance concerning Organization and Jurisdiction of the Ministry of

Environment (No.16/2011), Articles 323~324 prescribe that the Department of Hazardous and Toxic
Substance, Hazardous and Toxic Waste and Solid Waste Management has responsibility for
formulating policies on restrictions on waste and urban environmental management and reuse and
recycling of waste, and conducting coordination, technical support, monitoring, analysis, assessment
and reporting for policy implementation.

Figure 7-6 shows the organization chart of the Department of Hazardous and Toxic Substance,
Hazardous and Toxic Waste and Solid Waste Management. The Assistant Deputy of Solid Waste
Management, highlighted in yellow, is the department with jurisdiction over waste-related legal
systems and 3R policies.
As of October 2011, the Department of Hazardous and Toxic Substance, Hazardous and Toxic Waste
and Solid Waste Management has approximately 100 employees, of whom approximately 20 (1
manager, 2 section managers, 17 employees) belong to the Assistant Deputy of Solid Waste
Management 16.
16
Hearing at the Assistant Deputy of Solid Waste Management in the Department of Hazardous and Toxic Substance,
Hazardous and Toxic Waste and Solid Waste Management
7-16
Figure 7-6 Ministry of Environment Department of Hazardous and Toxic Substance, Hazardous and
Toxic Waste and Solid Waste Management Organization Chart
Deputy Minister of
Hazardous and Toxic Substance, Hazardous
and Toxic Waste and Solid Waste Management
Assistant Deputy of
Hazardous & Toxic
Substance Management
Assistant Deputy of
Verification of Hazardous & Toxic
Substance and Waste Management
Assistant Deputy of
Management and Contarmination
Recovery of B3 Waste
Assistant Deputy of
Division for
Registration and Notification
Division for
Collection and Notification
Division for
Energy, Mining and Oil & Gas
Division for
Solid Waste Restrictions
Division for
Monitoring
Division for
Transportation and Processing
Division for
Manufacture
Division for
Recycling and Solid Waste Utilization
Division for
Evaluation and Follow-up
Division for
Stockpilling and Dumping
Division for
Agro Industry
Division for
Notification and Transboundary Waste
Recommendation
Division for
Infrastructure Services
and Non Institution
Solid Waste Management
Source: Ministry of Environment
3) Budget and Subsidies

The 2011 budget of the Department of Hazardous and Toxic Substance, Hazardous and Toxic Waste
and Solid Waste Management was approximately 60 billion IDR, of which approximately 12 billion
IDR was allocated to the Assistant Deputy of Solid Waste Management 17.
Since the Assistant Deputy of Solid Waste Management is responsible for institutional design, it does
not have any budget for directly providing subsidies to provincial, municipal or regency
governments.
(3) Ministry of Energy and Mineral Resources

The Ministry of Energy and Mineral Resources (Kementerian Energi dan Sumber Daya Mineral,
KESDM) is composed of the Directorate General of Petroleum and Natural Gas, the Directorate
General of Minerals and Coal, the Directorate General of Electric Power, and the Directorate
General of New and Renewable Energy and Energy Conservation (Direktur Jenderal Energi Baru
Terbarukan dan Konservasi Energi), which has jurisdiction over energy conservation and renewable
energies such as bio energy and geothermal energy, etc.
17
Hearing at the Assistant Deputy of Solid Waste Management in the in the Department of Hazardous and Toxic
Substance, Hazardous and Toxic Waste and Solid Waste Management
7-17
In the Ministerial Ordinance concerning Organization and Jurisdiction of the Ministry of Energy and
Mineral Resources (No.18/2010), Articles 480-481 prescribe that the Directorate of Bio Energy of
the Directorate General of Electric Power, and the Directorate General of New and Renewable
Energy and Energy Conservation has responsibility for formulating policies, preparing standards and
procedures and conducting technical support and technical assessment with respect to bio energy.
Moreover, since energy from waste is regarded as a type of bio energy, it also comes under the
jurisdiction of the Directorate of Bio Energy 18.

Figure 7-7 shows the organization chart of the Directorate General of New and Renewable Energy
and Energy Conservation. The Directorate of Bio Energy, highlighted in yellow, is the department
with jurisdiction waste to energy projects.
As of October 2011, the Directorate General of New and Renewable Energy and Energy
Conservation has approximately 150 employees, of whom 25 (1 director general, 4 department
managers, 20 employees) belong to the Directorate of Bio Energy 19.
Figure 7-7 Ministry of Energy and Mineral Resources, Directorate General of New and Renewable
Energy and Energy Conservation Organization Chart
Director General of
New and Renewable Energy and
Energy Concervation
Secretariat of
Directorate General
Plan and Reporting

Section
Financial
Section
Legal & Legislation

Section
Directorate of
Concervation
Directorate of
Bio Energy
Directorate of
Geothermal
Directorate of
Various New and Renewable Energy
Subdit. of
Energy Utilization Program
Subdit. of
Bio Energy Program
Subdit. of
Geothermal Program
Subdit. of New & Renewable

(N&R) Energy Program
Subdit. of
Energy Efficiency Control
Subdit. of Service and

Supervision of Bio Energy Business
Subdit. of Supervision of Geothermal

Exploration and Exploitation
Subdit. of Service and Supervision of

N&R Energy Business
Subdit. of
Technology Energy Economics
Subdit. of Investment and

Cooperation of Bio Energy
Subdit. of Service and

Guidance of Geothermal Business
Subdit. of Investment
and Cooperation of N&R Energy
Subdit. of Clean Energy

Technology and Efficiency
Subdit. of Engineering and

Environment of Bio Energy
Subdit. of Investment
and Cooperation of Geothermal
Subdit. of Engineering and

Environment of N&R Energy
Subdit. of Technical
Assistance and Cooperation
Source: Ministry of Energy and Mineral Resources

18
19
G.Aff.&Personnel Section
Hearing at the Directorate of Bio Energy

7-18
3) Budget and Power Sale Prices

The 2011 budget of the Directorate General of New and Renewable Energy and Energy
Conservation was approximately 15 trillion IDR, of which approximately 40 billion IDR was
allocated to the Directorate of Bio Energy 20.
In the Ministerial Ordinance concerning Purchase Prices by the State-owned Power Company of
Power or Excess Power Derived from Small and Medium Scale Renewable Energy (No.31/2009),
the Ministry of Energy and Mineral Resources requires the state-owned power company (PT PLN
(persero)) to purchase power or excess power of 10 MW or less derived from renewable energy at
the prices indicated in Table 7-8 (Articles 1-2). Furthermore, in cases where permission is obtained
from the Ministry of Energy and Mineral Resources, based on the estimated prices of the
state-owned power company, power can sometimes be purchased at prices higher than those
indicated in Table 7-8 (Article 4).
According to the Ministry of Energy and Mineral Resources, the provisions of this ordinance are
also applicable to energy from waste projects.
Table 7-8 Purchase Prices of Power or Excess Power Derived from Renewable Energy (Java)
Purchase Price
Classification
(IDR./kWh)
Medium voltage
656
Low voltage
1,004
Source: Ministry of Energy and Mineral Resources Ordinance No.31/2009
Moreover, the Ministry of Energy and Mineral Resources is advancing procedure for revision of this
ordinance. As is shown in Table 7-9, it intends to raise purchase prices of power derived from
biomass, bio gas, wastes and landfill energy.
20

7-19
Table 7-9 Intended Revision of Purchase Prices of Power or Excess Power Derived from Renewable
Energy (Java)
Category
Classification
Energy derived from biomass or bio gas
Energy from waste
Waste landfill energy
Purchase Price
(IDR./kWh)
Medium voltage
975
Low voltage
1,325
Medium voltage
1,050
Low voltage
1,398
Medium voltage
850
Low voltage
1,198
Source: Hearing at the Ministry of Energy and Mineral Resources
(4) Main Related Agencies concerned with the PPP System

The public-private partnership (PPP) system concerning infrastructure development in Indonesia is
prescribed under the Presidential Decree concerning PPP for Infrastructure Development
(No.67/2005) and Revision Decree (No.13/2010). These presidential decrees prescribe the basic
items concerning PPP project formation, service fee setting, government support and government
guarantee, etc. for promotion of infrastructure development utilizing private sector funds. Table 7-10
shows the main related agencies concerned with the PPP system.
Table 7-10 Roles of PPP Main Related Agencies

Main Related
Roles concerned with the PPP System
Agencies
Ministry of
Promotion of government support and government guarantees for projects
Compilation of PPP plans and issue of the PPP Book (disclosure of
Finance
National
candidate projects)
Development
Planning Agency
Integration of PPP plans and national development plans
(BAPPENAS)
Capacity building of related entities
Investment
Information provision to investable (ready-to-offer) projects
Coordination
Formation of attractive market programs
Agency (BKPM)
Issue of authorizations required for PPP project implementation
Establishment of PPP implementing companies based on one-stop services
Source: Memorandum on Collaboration Strengthening between the Ministry of Finance, National Development
Planning Agency (BAPPENAS) and Investment Coordination Agency (BKPM)
http://www.bappenas.go.id/print/2727/mou-menteri-ppnkepala-bappenas-menteri-keuangan-dan-kepala-bkpm-/
7-20
7.2 Proposal from the City of Osaka to the Implementing

Agencies on the Indonesian Side
7.2.1 Conditions in the City of Osaka
(1) History of Waste Treatment, etc. in Japan
Waste treatment in Japan is based on the concept of public sanitation. Infectious diseases such as
cholera, pestilence and diphtheria became widespread towards the end of the 1870s, and the Sewage
Cleansing Law targeting kitchen waste, sanitary sewage, night soil and other unclean substances was
established in 1900 in order to prevent such infections. Further, the Cleansing Law, in which
incineration treatment was prescribed as a challenge target, was promulgated in 1954.
During the period of rapid economic growth from 1960 to the 1970s, pollution emerged as a new
social issue. The Basic Law on Pollution Countermeasures (the present Basic Environment Law)
was established in 1967, thereby establishing the basic legislation for adopting a comprehensive
stance towards pollution issues. Related legislation such as the Air Pollution Prevention Law and
Water Pollution Prevention Law was subsequently established, and the Law concerning Treatment
and Cleansing of Waste (hereafter referred to as the Waste Treatment Law) was enacted and
promulgated in 1970 with the goal of building a system to promote cleanliness and properly treat
solid wastes.
(2) History of Waste Administration in the City of Osaka

1) History of the Waste Treatment System
The City of Osaka established a cleansing office in 1900 with a view to taking direct control over the
hitherto outsourced collection of waste and set up an organized system for treating waste.
In 1903, waste was manually collected from waste containers in each household and hauled by barge
from waste collection points established alongside rivers to incineration plants (naturally ventilated
incinerators) or disposal sites for treatment. Incineration plants at this time were confronted with
numerous issues and the incinerated amount of waste accounted for only around 40% of the total
discharged amount.
With the promulgation of the Cleansing Law in 1954, the cleansing utility was clearly stipulated as a
compulsory activity of municipalities, and as sanitary thinking became more widespread among
citizens, strong calls were made for purification of the living environment.
Concerning waste collection in the City of Osaka, in response to calls to address waste flying off
7-21
hand-pulled and horse-pulled carts and so on, more and more small-scale automobiles came to be
introduced, these were modified to covered vehicles, and efforts were made to reduce unhygienic
transfer barge reloading stations, which were the target for strong criticism from citizens. Today, all
waste collection vehicles are compression-type loading vehicles and small vehicles, etc. conduct
regular (set day) collections in restricted access districts in an effort to improve household waste
collection services and improve collection efficiency.
Photograph 7-1
Waste collection by hand-pulled cart (past)
Photograph 7-2
Waste haulage by barge (past)
Photograph 7-3
Photograph 7-4
City of Osaka waste collection truck (present)
City of Osaka waste collection service (present)
(Hybrid vehicle)
2) Movements in the Amount of Waste

The total amount of waste discharged per year in the City of Osaka was approximately 230,000 tons
in 1950, five years after the end of WWII, and this subsequently jumped to approximately 440,000
tons in 1960 and 1,210,000 tons in 1970, before peaking at around 2,180,000 tons in 1991. Reasons
for this rapid growth were the emergence of the mass production, mass consumption, mass
7-22
disposal society during the era of rapid economic growth and the concentration of population into
major cities such as Tokyo and Osaka.
3) Construction of Incineration Plants

In response to the aforementioned increase in total waste discharge, the City of Osaka compiled the
Incineration Facilities Emergency Construction Plan aimed at strengthening the incineration setup
from the viewpoint of treating waste in a sanitary manner. Based on this, it conducted research and
development into incineration technology and completed Japans first mechanical incineration plant
in 1963. In this plant, where work that was previously dependent on manual labor was entirely
mechanized, state-of-the-art facilities were adopted in order to also address the issue of pollution.
Next, the City constructed a De Roll incineration facility based on Swiss technology. This was the
first facility to conduct power generation from excess heat in the Orient, and mechanical incineration
plants were subsequently adopted in the other major cities of Japan.
In order to construct one incineration plant, it took between four and seven years and a huge amount
of investment, however, additional plants complying with new pollution controls were subsequently
constructed and a system for incinerating 100% of combustible waste was established in 1980. Since
then, the City has maintained the total incineration system while promoting the rebuilding of
deteriorated plants.
Photograph 7-5
City of Osaka incineration plant (paste)
Photograph 7-6
Manual waste incineration (past)
7-23
Photograph 7-8
Work inside the waste incineration plant
(present)
(Waste crane)
Photograph 7-7
City of Osaka incineration plant (present)
(Higashi-Yodogawa Plant, completed in 2010)
4) Final Disposal Sites

Before the realization of total incineration, incombustible waste was directly hauled to disposal sites
for landfilling. From around 1948 to 1966, since the City depended on small-scale inland
landfill-sites utilizing marshland, ponds and farmland, etc. and there were no legal controls or
standards concerning entry into disposal sites, various types of collected wastes were carried into
sites without any pretreatment. Moreover, since landfill work was implemented without adopting
any preliminary plans, there were various forms of pollution and sanitary issues such as elution of
leachate from sites, outbreaks of harmful pests such as flies and rats, occurrence of disposal site fires
caused by methane gas and so on, and numerous complaints arose from local residents. In particular,
from 1960 onwards, the City was faced with an avalanche of complaints as the standard of living
improved and people became more aware of sanitary issues, and some disposal sites were forced to
close down before becoming full due to breakdown of talks with citizens. However, many other
disposal sites tried various methods to secure the understanding of local residents and succeeded in
putting such measures into effect. The methods that were used to address various issues at this time
are utilized as the basis for maintenance standards of todays waste final disposal sites.
The securing of landfill capacity was also a major issue and entailed a lot of hard work. A total of
223 disposal sites with total capacity of approximately 1.91 million square meters were secured up to
1965, however, many of the smaller sites fell into disuse in a short time.
Between 1966 and 1973, whereas a lot of landfill work was carried out on small inland disposal sites,
large-scale landfilling was implemented on low-lying marshland and coastal grassland. On a
relatively large disposal site (27 ha) that was landfilled in the 1970s (1969-1972), gas extraction
7-24
facilities (including combustion facilities) were installed and earth covering was conducted
(irregularly) in an effort to conduct sanitary landfill, albeit not perfectly.
Although large disposal sites were secured, service lives were limited by the dramatic growth of
waste volumes in line with economic growth and it became increasingly difficult to find new
disposal sites in onshore urban areas due to the rapid pace of urbanization. Therefore, the City
embarked on construction of a major ocean reclamation landfill site in Osaka Bay in 1971, and it
started landfilling on this site in 1973. After that, it started landfilling on its second major ocean
landfill disposal site from 1985. Upon adopting earth covering, gas countermeasures and leachate
countermeasures and so on, these ocean disposal sites were constructed in compliance with structural
standards and maintenance standards in line with the provisions of the current waste treatment law.
Through establishing the setup of total incineration of combustible waste in waste incineration plants
and constructing large-scale final disposal sites out at sea, the City of Osaka developed the
foundations of todays waste treatment.
Photograph 7-9
Open dumping (past)
Photograph 7-10
City of Osaka reclaimed land (around 1966)
South Port District
Photograph 7-11
Landfill of incineration ash (present)
Photograph 7-12
City of Osaka reclaimed land (present)
Yumesu District (North Port Disposal Site)
7-25
5) Final Disposal Sites after Use

As was described above, the City of Osaka has disposed of waste on numerous sites including
small-scale disposal sites, and it has experienced numerous environmental issues in site operation
such as complaints about odor, outbreaks of harmful pests and occurrence of fires and so on.
Even after disposal sites have been closed, it has had to suspend water sources due to pollution by
leachate, and it has spent huge amounts on borrowing alternative water sources, building temporary
levees and adopting other sanitary sewage countermeasures.
Concerning land use following closure of disposal sites, land owned by the City of Osaka has been
used for urban facilities such as parks that do not entail major excavation, however, in areas where
disposal sites were constructed on rented land, there have been cases where the land was sold and the
City of Osaka had to remove the waste when the new owners discovered it underground upon
conducting boring investigation with a view to constructing medium-rise buildings.
In this way, direct landfilling of waste and improper management of disposal sites created problems
in final land use and incurred massive costs later on.
(3) Waste Treatment Plan

When conducting treatment of general waste, which is the responsibility of local municipalities,
since it is prescribed that a general waste treatment basic plan be compiled and reviewed roughly
once every five years, all plans are compiled after each municipality accurately gauges the flow of
waste treatment in terms of weight.
The City of Osaka also compiles treatment plans and recycling plans based on the flow of waste
upon first gauging the quantity of discharged waste, quantity of intermediate treatment and quantity
of final disposal.
7-26
Figure7-8 City of Osaka General Waste Treatment Flow (FY 2008)
(Source: Environment in Osaka City 2009 (Osaka City Environmental Bereau))
Through promoting 3R (Reduction, Reuse and Recycling of waste) initiatives, the City of Osaka
succeeded in reducing the quantity of waste from approximately 2,180,000 tons in 1991 to 1,480,000
tons in 1997 and 1,180,000 tons in 2010. In its general waste treatment basic plan, it further aims to
reduce the quantity of waste treatment to 1,100,000 tons or less by fiscal 2015 through continuing
these 3R efforts.
In order to compile such a volume reduction plan, since it is necessary to accumulate reductions
projected as a result of volume reduction measures, it is essential to grasp the flow of waste
treatment in terms of weight.
Figure 7-9 City of Osaka General Waste Treatment Master Plan
(Source: Environmental Policies of Osaka City 2010 (Osaka City Environmental Bereau))
7-27
(4) Waste 3R Initiatives

In Japan, the 3R policy for waste is promoted with a view to effectively utilizing finite resources and
building a sustainable recycling-oriented society, however, the most important measure is the
education and enlightenment of citizens who discharge waste.
Thanks to the active transmission of environment-related information by the mass media, citizens in
Japan have a high level of interest in the environment. Concerning waste treatment too, citizens are
well aware of the separate discharge of waste and recycling activities based on recovery of valuable
resources have become systemized.
In the City of Osaka too, various methods such as staging of events, preparation and distribution of
pamphlets and communications with local citizens, etc. are adopted in order to educate and enlighten
residents.
In particular, concerning 3R initiatives, the City of Osaka is actively pursuing upstream measures
(close to generation sources) via the 2Rs of Reduce (limiting waste generation) and Reuse, and it
considers the education and enlightenment of citizens to be the most important factor in promoting
these measures.
Moreover, since the important thing in promoting the recycling of resources is separate discharge, it
is essential to secure the understanding and cooperation of residents for this too.
The Ministry of Education, Culture, Sports, Science and Technology raises the following goal for
third grade (nine years olds) and fourth grade (10 years old) in its elementary school curriculum
guidelines: To impart understanding of local industries and consumer lifestyles and various
activities for protecting the health and safety of people, and to give awareness as members of the
local community. Based on these curriculum guidelines, the City of Osaka has prepared a fourth
grade side reader entitled Reducing Waste and Protecting the Environment to aid learning about
waste treatment, and it also provides opportunities to visit incineration plants and think about waste
treatment. Concerning fifth graders (11 year olds), it has established the goal of To impart
understanding of the national land situation of Japan, deepen interest in the importance of
environmental conservation and foster love for the national land, and it has included pages for
learning about environmental issues in Reducing Waste and Protecting the Environment.
7-28
Figure 7-10 Enlightenment Pamphlets in the City of Osaka
Source: Environment in Osaka City 2009Osaka City Environmental Bureau
(5) Measures to Address Illegal Dumping of Waste

In Japan, due to past experience of large-scale illegal dumping arising throughout the country,
measures to address this problem have been advanced on a nationwide scale, and in 2004 the Illegal
Dumping Eradication Action Plan was compiled.
The highest priority measure against illegal dumping is prevention. In the Action Plan too,
prevention measures such as addressing littering through raising local awareness, securing
destinations for receiving waste, and strengthening waste treatment systems through enhancing
transparency and so on were included.
Behind prevention, other important countermeasures are early detection and early response geared to
preventing the large-scale expansion of illegal dumping. Accordingly, in addition to striving for early
discovery by local governments and community groups, it is important to discover and address
illegal dumping in the early stages.
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Concerning situations such as river dumping where measures that transcend municipal boundaries
need to be taken, measures are implemented in collaboration with prefectural governments that are
responsible for wide area administration.
(6) Intermediate Treatment of Waste

Amidst he restricted national land of Japan, due to the difficulty of securing final disposal sites as is
the case in Osaka and other urban centers, waste undergoes treatment based mainly on intermediate
treatment methods such as incineration. Moreover, thanks to Japans advanced technical
development and existence of various kinds of intermediate treatment technologies, it is possible to
select technologies according to the quality of waste and needs of each local public authority.
Moreover, as intermediate treatment facilities are regarded as necessary infrastructure for urban life,
the central government provides subsidies for their construction.
In the City of Osaka too, in order to extend the service life and ensure the effective use of limited
landfill disposal sites, the local government established a total incineration setup for combustible
wastes at an early stage by constructing incineration plants aimed at reducing waste to roughly a
twentieth in terms of volume and a fifth in terms of weight. Currently, the City has nine waste
incineration plants, and all of them utilize waste heat from incineration. Eight of these plants conduct
waste to energy generation.
7-30
Figure 7-11 City of Osaka Waste Incineration Plants
(Source: Environment in Osaka City 2009 (Osaka City Environmental Bereau))
7-31
In the area under the jurisdiction of Osaka Prefectural Government, under the Air Pollution
Prevention Law and prefectural ordinances, strict controls are adopted with respect to pollutant
substances included in exhaust gases. As a result, the waste incineration plants in the City of Osaka
adopt environmentally friendly high-performance pollution prevention technology and take every
possible measure to prevent pollution.
The basic treatment flow in waste incineration facilities is as follows.
Waste that is thrown into the incineration furnace by a crane undergoes high-temperature combustion,
which leads to the decomposition of odor and restricts the generation of dioxins. After that,
particulates contained in exhaust gases are removed in a filtration dust collector, the hydrogen
chloride and sulfur oxides contained in exhaust gases are neutralized and removed in exhaust gas
washing equipment, then the exhaust gas is reheated to the reaction temperature in the catalytic
reaction tower, where nitrogen oxide is decomposed and discharged from the stack. All these
facilities are installed indoors in modern incineration plants.
Figure 7-12 Equipment Flow in a City of Osaka Waste Incineration Plant
(Source: Osaka City Environmental Bereau, Higashiyodo-plant Brochure)
In municipalities that have smaller quantities of waste discharge, in order to utilize the merits of
scale of intermediate treatment facilities and conduct effective treatment in terms of dioxin
countermeasures and pollution prevention, wide area treatment, whereby multiple municipalities
jointly use intermediate treatment facilities, is implemented.
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(7) Final Disposal Sites

1) Final Disposal Sites in the City of Osaka
Waste final disposal sites in Japan currently implement sanitary landfill in accordance with the
Performance Guidelines for Waste Final Disposal Sites, etc. Until 1950, however, disposal sites
mainly conducted open dumping.
In the City of Osaka too, small-scale anaerobic landfilling was previously conducted on ponds,
marshland and idle farmland, etc. within the city, however, since 1973, large-scale landfilling on a
reclaimed site in Osaka Bay has been carried out. Over the course of such developments, various
problems such as elution of sanitary sewage around disposal sites, outbreaks of flies, mosquitoes,
rats and other pests and fires on disposal sites have been encountered, however, the know-how
acquired as a result of conducting various trial and error and efforts geared to finding solutions has
come to be utilized in the various disposal site management standards that are applied today.
In the City of Osaka, work was started on developing a large-scale land reclamation in Osaka Bay in
1971, and landfill work has been conducted in the North Port Disposal Site (Yumesu District 1) since
1977.
Furthermore, since 1992, six prefectures including the City of Osaka in the Kinki Region have
conducted landfill disposal on a wide area disposal site that is shared by numerous local
governments in a project that is known as the Osaka Bay Phoenix Plan.
North Port Disposal Site (Yumesu District 1) is the City of Osakas only autonomous final disposal
site, and the authorities are keeping track of the landfill history (landfill periods, landfill positions,
landfill quantities) with a view to utilizing the site (for green tracts, etc.) after it becomes full. It
thoroughly implements earth covering and has fully installed gas extraction facilities and leachate
treatment facilities, etc. to ensure that no impacts are imparted on the surrounding environment, and
manages the site while conducting periodic monitoring and confirming the results.
After North Port Disposal Site (Yumesu District 1) becomes full, the City plans to switch final
disposal activities to the wide area disposal site under the Osaka Bay Phoenix Plan.
Outline of North Port Disposal Site (Yumesu District 1)
Location:
Public water body at Yumesu Higashi 1, Konohana, Osaka
Landfill area:
731,000m2
Landfill capacity:
1,169,000m3
Reclamation cost:
105.8 billion yen
Landfill license period:
Fiscal 1985 to fiscal 2014
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Incoming waste:
Incineration residue, sewage incineration sludge
Pollution prevention measures

Sanitary sewage treatment: Primary treatment (aeration treatment by floating aerator)
Sanitary sewage treatment: Secondary treatment (chemical treatment in coagulator)
Generated gas countermeasures: Installation of gas removal units
Sanitary pest countermeasures: Prevention of fly and rat propagation through conducting thorough
earth cover
Earth cover is also effective for preventing the spread of fires.
Monitoring:
Water quality analysis (roughly 2 times per month)
Gas investigation (2 times per year)
Pest investigation (2 times per year)
2) Semi-aerobic Landfill
The City of Osaka has so far conducted the final disposal of waste on numerous inland final disposal
sites. Currently, as it is unable to secure land for disposal sites in inland areas, it has constructed
ocean reclaimed landfill sites in Osaka Bay and is conducting final disposal there. Concerning the
landfill structure, reclaimed parts out to sea are naturally anaerobic, however, the inland parts are
generally semi-aerobic as gas extraction facilities are installed to remove gas and deliver outside air,
although the structure is different from the general semi-aerobic landfill type.
Meanwhile, Malang City, in collaboration with JICA (Japan International Cooperation Agency),
invites trainees from developing countries and conducts training on subjects such as municipal waste,
conservation of air quality and sanitary sewage treatment, etc. In the municipal waste course, it
incorporates training at the University of Fukuoka and Fukuoka City, which jointly developed the
semi-aerobic landfill structure, and also conducts lectures on general sanitary landfill technology and
tours of actual disposal sites. The city authorities consider the semi-aerobic landfill structure to be
ideal for sanitary landfilling in developing countries that have a lot of inland disposal sites, and they
are striving to disseminate these with the help of related officials.
The Study Team believes that the semi-aerobic landfill structure (Fukuoka method) can prove useful
in construction of new disposal sites and improvement of existing disposal sites in the Greater
Malang area.
3) Mechanism of the Semi-aerobic Landfill Structure

In the semi-aerobic landfill structure, cobbles and leachate collection and drainage pipes comprising
perforated pipes (collection and drainage pipes) are placed at the bottom of the landfill in order to
rapidly drain leachate from the landfill site and prevent leachate from stagnating in the waste
materials layer. Moreover, because of the increase in temperature inside the landfill brought about by
the heat generated in the decomposition of waste, thermal convection is caused by the difference
7-34
between internal temperature and external temperature, thereby causing air (oxygen) to naturally
flow into the landfill in the opposite direction of the flow of water inside collection and drainage
pipes. Utilizing such characteristics, this structure prevents infiltration of leachate into the landfill
base ground, facilitates the natural flow of air into the landfill via collection and drainage pipes due
to the heat from fermentation inside the landfill, thereby accelerating the aerobic decomposition of
waste and purifying leachate as much as possible in the water collection stage.
Features (strong points)

(A) The Fukuoka method effectively utilizes natural purifying capacity to stabilize wastes.
Technical requirements in terms of machinery and equipment are small.
(B)
Decomposition of landfill wastes is accelerated and the quality of leachate is improved.
(C)
Generation of methane gas is restricted, thereby making a contribution to prevention of

global warming.
At the 62nd United Nations CDM Board Meeting held in Morocco on July 15, 2011, the
improvement of existing landfill sites based on the semi-aerobic landfill structure
(Fukuoka method) was recognized as a new technique for permitting carbon credits (proof
of reduction in tradable greenhouse gas emissions between advanced nations).
(D) Because stabilization is accelerated, it is possible to examine the early utilization of landfill
sites following use.
(E)
The Fukuoka method has high cost efficiency; the basic engineering component is simple;
and there is a high degree of freedom in selecting materials for use.
For example, bamboo poles can be used as the water collection and drainage pipes, and
waste drum cans can be used as gas extraction pipes and so on.
7-35
Figure 7-13 Conceptual Diagram of Semi-Aerobic Landfill Structure (Fukuoka Method)
(Source: Fukuoka City Environmental Bureau (Fukuoka Method Brochure))
(8) Environmental Management

In the City of Osaka, in order to address pollution issues caused by serious air pollution that arose in
line with the rapid industrial development of the city, the Nishiyodogawa Ward Air Pollution
Emergency Countermeasures, targeting the ward of Nishiyodogawa as a top priority district for air
pollution countermeasures, were formulated in 1970. In the same year, the Nishiyodogawa Pollution
Special Response Unit was established to conduct on-the-spot inspections of individual businesses
and the setup for pollution monitoring, guidance and control was reinforced. The special response
unit (1) gauged pollutant discharge conditions in each business, (2) conducted surveys of
meteorological data, and (3) implemented simulations of air dispersion based on these data.
Furthermore, it compiled concrete emissions reduction measures aiming to reduce emissions of
sulfur oxides by half and forcefully issued requests and guidance to businesses encouraging them to
switch to low-sulfur fuels and introduce exhaust gas treatment units and so on. As a result, thanks to
emergency countermeasures conducted over two years in 1970 and 1971, among other achievements,
the concentration of sulfur dioxide was reduced from 0.083 ppm in 1969 to 0.042 ppm in 1972, and
the environmental standard of a mean annual value of 0.05 ppm was realized in just two years.
After that, the telemeter system for constantly monitoring major air pollution sources such as
factories with large emissions of exhaust gases and so on was constructed, and the setup was
established whereby administrative authorities could constantly monitor emissions of waste gases
from fixed sources. Furthermore, in addition to introducing total controls over sulfur oxides and
nitrogen oxides, the city compiled its own unique guidelines stricter than the legal standards in an
7-36
effort to reduce discharge load from factories and so on.
In recent years, the city has introduced single unit controls with a view to strengthening exhaust gas
controls targeting automobiles, and it also promotes the diffusion of eco-cars and so on.
As a result of these efforts, concentrations of air pollutants have been improved, and in fiscal 2010,
Osaka achieved the environmental standards for air pollutants excluding photochemical oxidants at
all of the constant monitoring stations (currently 26 stations) in the city.
Photograph 7-13
City of Osaka when environmental conditions
were poor
Photograph 7-14
City of Osaka today
7-37
Figure 7-14 Changes over Time in Main Air Pollutant Concentrations
(Source: Osaka City Environmental Bureau,

http://www.city.osaka.lg.jp/contents/wdu020/kankyo/english/quality/quality01.html)
Furthermore, concerning measures to address dioxins, the Law concerning Special Measures against
Dioxins was enacted in 2000, resulting in the implementation of discharge controls in air and water.
In waste incineration facilities, emissions of dioxins have been greatly reduced as a result of the
adoption of appropriate incineration management, switching from intermittent operation to
continuous operation, introduction of bag filters and remodeling of other facilities, and as a result,
the general concentration of dioxins in the air environment is held far below the environmental
standard that was set from the viewpoint of protecting human health.
Concerning the conservation of water quality, the City of Osaka established a system for conducting
on-the-spot inspections of business establishments, constructed the municipal sewerage system and
implemented the sewage treatment of household wastewater and industrial wastewater. Moreover,
targeting plants and business establishments, it introduced wastewater concentration controls and
total volume controls based on the water pollution prevention law.
As a result, thanks to the construction of the sewerage system and improvement of discharge water
7-38
quality from factories and so on in recent years, Osaka achieved the environmental standard for
BOD (biological oxygen demand) at all measurement points on the citys rivers in 2010.
Figure 7-15 Changes over Time in Annual Average BOD in River Water Bodies in Osaka
(Source: Osaka City Environmental Bureau)
7-39
7.2.2 Current Conditions and Issues of Waste Treatment in Greater Malang

The Study target area of Greater Malang, located in East Java Province in the Republic of Indonesia,
is composed of Malang City, Malang Regency and Batu City.
Figure 7-16 Map of Indonesia, Java Island and Greater Malang
7-40
The Study Team conducted investigation of solid waste treatment and environmental controls in
Greater Malang from the viewpoint of solid waste administration and environmental administration.
The following paragraphs describe the conditions and issues that exist in Greater Malang today.
(1) Waste Collection and Haulage

1) Current Conditions
The following table shows the basic data in each area.
Table 7-11 Basic Data in Each Area

Item
Malang City
Malang Regency
Batu City
Urban area
110.06km
3,534.52km
202.80km2
Population
816,637 (2008)
2,487,537 (2009)
Approximately 170,000
Solid waste treatment system

Responsible
department
Cleansing and Parks

Directorate Cleansing
Services Department
and Cleansing
Management
Department
Human Settlement and
Human Settlement and
Spatial Planning
Spatial Planning
Directorate, Cleansing
Directorate, Cleansing
and Parks Department,
Department, Cleansing
Cleansing Section
Services Section and

Section
Employees
Related facilities
Owned equipment
Budget
976
(Including 781
sanitation workers)
Transfer stations: 71
Disposal site: 1
Collection vehicles: 33
Disposal site
equipment: 4
Disposal site: 5
Disposal site
equipment: 5
117
(Plus 43 TPS operators
(consigned)).
Disposal site: 1
Disposal site
equipment: 3
Budget: Approximately
12.5 billion IDR
Revenue from fees:
Approximately 40%
(2010)
2.5 billion IDR
Revenue from fees:
Approximately 12%
(2011)
3.8 billion IDR
Revenue from fees:
Approximately 10%
(2010)
196
Source: Created by research team)
Local community organizations in Greater Malang comprise Rukun Warga (RW, town associations)
and Rukun Tetangga (RT, neighborhood associations, considered to be similar to neighborhood
associations in Japan). The waste that is discharged from each household is collected and taken by
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hand-pulled carts (rear cars), etc. to the TPS (primary storage sites) by collectors who are employed
by each RW and RT (or by groups of RW and RT in some cases). Residents bear the costs incurred
from waste collection to haulage to the TPS.
There are 71 TPS in Malang City, 64 in Malang Regency and 27 in Batu City. The waste that is
gathered at the TPS is transported for treatment to the TPA (final disposal sites) by the public sector.
There are large numbers of waste pickers who collect valuable resources at the TPS and TPA. The
resources they target are plastics, paper, glass, bottles and metals.
Figure 7-17 Waste Collection and Transport Flow in Greater Malang (Summary)
Home
One
or Two RW/RT
12RWRT
request
private collection
agency
TPSTempat Pembuangan Sementara
Waste
Temporally Storage Site
waste
transport by public
TPATempat Pembuangan Akhir
Waste
Final Disposal Site
The waste in home is

collected by a two-wheeled
cart and carried into TPS.
A container is laid in TPS
and waste is thrown away
there.
When the container filled, it
is transported to TPA by arm
roller.
(Source: Created by research team
Photograph 7-15
Collection by hand-pulled cart (rear car) from
each household (Malang City)
Photograph 7-16
Container at a primary storage site (TPS)
(Malang Regency)
7-42
Photograph 7-18
Container transportation by arm roller
Photograph 7-17
Reloading of waste at a primary storage site
(TPS) (from hand-pulled carts to containers)
2) Issues
The most important thing is managing waste treatment is to compile a treatment plan (master plan)
and an action plan for executing it, however, for that purpose, it is necessary to first quantitatively
grasp the flow of waste from discharge to collection and final disposal.
In Greater Malang, the amount of waste is managed in terms of not only weight but also volume
(volume of containers x transported number of containers), however, because the compaction of
waste differs greatly according to the loaded state and contents of waste, there is a risk that disparity
will arise with the actual quantity.
Because the collection of waste from each household and haulage to TPS is carried out by the
private sector, it is difficult to grasp the quantity and quality of waste from each household.
Moreover, since the recovery of valuable resources is largely conducted by waste pickers, it is
difficult to adequately gauge quantities.
In view of these conditions, when it comes to compiling treatment plans in the future, it will be
difficult to determine which waste to target for recycling and which waste to place priority on when
conducting guidance for dischargers in future.
Moreover, although implementing waste collection and transportation under the initiative of
residents is ideal in terms of limiting the financial burden of the public sector and stimulating the
interest of residents regarding discharge, there is also a risk in that full control cannot be exercised
by the public sector with respect to low-income groups and this may lead to illegal dumping.
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(2) Recovery and Separate Discharge of Resources

Waste in Greater Malang is generally sorted into organic wastes and other wastes. Discharge sources
sometimes place waste receptacles for sorting organic wastes, however, there doesnt seem to be a
high degree of cooperation in the sorting of organic wastes. Moreover, waste that is discharged
separately sometimes becomes mixed up during collection by the private sector, indicating that
separate discharge is not necessarily linked to the recovery of valuable resources.
As was mentioned above, waste pickers recover valuable resources. In Malang City, progressive
approaches such as waste banks are carried out, however, the Study Team was unable to confirm
how far these are understood by citizens.
Photograph 7-19
Photograph 7-20
Household waste receptacles in Malang City
Waste picking at a TPS
Photograph 7-21
Photograph 7-22
Waste bank in Malang City
Recycled products at a waste bank
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Waste Bank System

-
Residents can exchange their recyclable wastes for daily necessities (salt and sugar, etc.)
Residents can create bank books and save money in the bank.
2) Issues
The recovery of recyclable wastes by waste pickers is an ideal situation in that recycling is
conducted under private sector initiative, however, in the event where the number of people willing
to become waste pickers declines in line with economic growth, it is possible that new problems will
arise in the promotion of recycling. Additionally, as this output is not the result of enlightenment
activities, it doesnt necessarily result in higher awareness among residents about separate discharge.
In order to efficiently recover recyclable wastes, it is essential for residents to conduct separate
discharge. For this reason, it is necessary to conduct education and enlightenment geared to securing
the understanding of residents concerning the need for recycling, and the issue to be tackled is how
to conduct such education and enlightenment activities.
(3) Waste Dumping in Rivers

Although waste dumping into rivers is prohibited by law in Indonesia, this takes place on a routine
basis. In the study, the Study Team heard dumping of waste by residents into rivers was a major
problem, however, no concrete data could be obtained.
Accordingly, issues and countermeasures are indicated in consideration of the illegal dumping
countermeasures that are adopted in Japan.
Photograph 7-23
Photograph 7-24
Waste dumped into a river
Waste dumped into a river

7-45
Photograph 7-25
Photograph 7-26
Waste dumped alongside a road
Dumped waste
2) Issues
Since waste dumping into rivers is not only an issue of waste treatment but also carries risk of
triggering environmental (water quality) pollution as well as direct health damage among people
who consume such water, it is necessary for the administrative side to take steps against such
dumping in rivers that provide living water.
Moreover, because waste thrown into rivers flows across administrative boundaries into other
districts, thus placing a treatment burden on the receiving side and leading to a lack of clarity
regarding treatment responsibility, the issue is made even more complicated.

<Composting and biogasification>
In Greater Malang, composting of organic wastes is carried out as a form of intermediate treatment.
Currently, the composting facilities possessed by each local government are small-scale facilities
that largely conduct manual work, and the produced compost is utilized in home gardens and public
land.
Moreover, in Malang City and Malang Regency, pilot projects and initiatives are being conducted
with a view to utilizing biogas from organic wastes and final disposal sites, so there is knowledge
and experience on how to effectively utilize biogas.
<Waste incineration treatment>

Currently in Greater Malang, incineration treatment of waste is not carried out.
7-46
Photograph 7-27
Photograph 7-28
Organic waste composting facility
Composting by manual work
Photograph 7-29
Compost gas pilot project
2) Issues
<Composting and biogasification>
Regarding composting and biogasification, these are advanced and practical initiatives, however,
assuming that efficiency is improved and scale becomes bigger in future, it will be essential to have
an economic basis for bearing the costs of construction and maintenance and to have technologies
for efficiently generating and utilizing compost and biogas. Concrete examination needs to be
carried out on such points.
<Issues in intermediate treatment>

In all the local governments of Malang City, Malang Regency and Batu City, judging from the
conditions that surround final disposal sites (problems in securing land for disposal sites and residual
landfill capacity), it will become necessary to introduce intermediate treatment sooner or later,
although early introduction will be more beneficial in terms of mitigating the load on final disposal
7-47
sites and environmental sanitation.
However, since intermediate treatment is costly, funding is an issue. Moreover, even if funds can be
secured to cover construction costs, it is necessary to secure funding and conduct technical support
for long-term maintenance.

Currently, Malang City has one final disposal site, Malang Regency has five and Batu City has one,
and open dumping is conducted at all these sites. Also, the frequency of earth covering is low.
Numerous waste pickers recover valuable resources on the final disposal sites.
Concerning treatment of leachate, following stabilization in storage tanks, it is released into rivers.
There are some disposal sites where monitoring and leachate treatment are not carried out.
On the other hand, there are sites that conduct initiatives geared to effectively utilizing biogases
generated on the site.
In future, there are plans to conduct disposal site expansion with a view to wide area treatment.
Photograph 7-30
Photograph 7-31
Supit Urang final disposal site (distant view)
Waste pickers on Supit Urang final disposal site
7-48
Photograph 7-32
Leachate pit at Supit Urang final disposal site
Photograph 7-33
Leachate treatment equipment at Batu City final
disposal site
2) Issues
Considering the odor, sanitary aspects (generation of pests) and environmental aspects (prevention of
fires) of open dumping, there is need to increase the frequency of earth covering, however, the sheer
numbers of waste pickers make it difficult to conduct sanitary earth covering.
Open dumping final disposal sites sometimes experience fires caused by heat from the fermentation
of landfilled waste, and the smoke and hazardous substances from such fires can cause major
damage to human health.
In such circumstances, in line with the prohibition of open dumping in 2013, since it will be
necessary for Greater Malang municipalities to adopt sanitary landfill methods such as earth
covering, they will need to compile final disposal site plans at an early stage.
Moreover, concerning treatment of leachate, primary storage is carried out in pits, however, it cannot
be said that these possess sufficient leachate treatment equipment. Accordingly, in cases where river
water or groundwater becomes polluted by leachate, water pollution will progress around disposal
sites if site improvements are delayed, and countermeasures to deal with this could become very
costly. Greater Malang could thus encounter the various problems that the City of Osaka experienced
in the past.
Wide area treatment is an effective means of reducing costs based on merits of scale in treatment
facilities, however, consolidating all waste from the entire area of Greater Malang into one final
disposal site would be difficult in view of the sheer size of the area concerned, the local road
conditions and the costs of transportation.
7-49

Environmental Management Systems
In Indonesia, the environmental management law was enacted in 1982 and underwent major revision
in 1999 and 2009. The current legal system is based on the environmental management law (Law No.
32, 2009). This law establishes controls pertaining to air pollution, water pollution and noise
pollution and requires implementation of environmental impact assessment in individual
development projects. As a framework, this legislation is equal to the legal systems that exist in
Japan, Europe and America.
Concerning environmental standards too, like Japan, Indonesia has environmental standards
pertaining to air and water. Concerning environmental standards linked to air pollution, similar
environmental items to those in Japan are adopted, albeit with some slight disparities in actual
figures.
Table 7-12 Air Environmental Standards (2009 East Java Province Rule No. 10)
PERATURAN GUBERNUR JAWA TIMUR NOMOR 10 TAHUN 2009
TENTANG BAKU MUTU UDARA AMBIEN DAN EMISI SUMBER TIDAK BERGERAK DI JAWA TIMUR
II. BAKU MUTU AMBIEN UNTUK INDUSTRI ATAU KEGIATAN USAHA LAINNYA
Item
Sulfur dioxide (SO2)
Carbon monoxide (CO)
East Java Province Environmental

Standard*
0.1ppm
Daily average
value
20ppm
8 hour value
Nitrogen oxide (NOX)
0.05ppm
Ozone (O3)
Suspended particulate
matter (SPM)
Lead (Pb)
0.10ppm
0.26 mg/m3N
Hydrogen sulfide (H2S)
0.03ppm
Ammonia (NH3)
2.00ppm
Carbon hydride
0.24ppm
0.06 mg/m3N
Daily average
value
1 hour value
Daily average
value
Daily average
value
30 minute
value
Daily average
value
3 hour value
Reference: Japanese Environmental

Standards
0.04ppm
Daily average
value
10ppm
Daily average
value
(0.040.06ppm)*
Daily average
value
0.06ppm
1 hour value
0.10 mg/m3N
Daily average
value
* Japanese environmental standards are prescribed for nitrogen dioxide (NO2).

Source: 2009 East Java Province Rule No. 10
Environmental standards concerning water quality are prescribed for typical living environmental
7-50
items and heavy metals, etc., although there are some differences in the items. In terms of the
standard values, values are the same level as in Japan for some items, whereas others are looser by
around two digits or so. Control values concerning air pollution and water pollution from plants and
business establishments are established according to each industrial sector.
Table 7-13 Environmental Standards concerning River Water Quality

(2008 East Java Province Rule No. 2)
PERATURAN DAERAH PROVINSI JAWA TIMUR NOMOR 2 TAHUN 2008
TENTANG PENGELOLAAN KUALITAS AIR DAN PENGENDALIAN PENCEMARAN AIR DI PROVINSI
JAWA TIMUR
Item
River Water
Quality
Standard*
Physical characteristics
Reference: Japanese
Environmental
Standard
Water
temperature
Zinc
River Water
Quality
Standard*
0.002
mg/liter
0.05 mg/liter
Residue on
evaporation
Suspended
solids
Inorganic elements
pH
6.09.0
BOD
6 mg/liter
Cyanide
0.02 mg/liter
Fluorine
1.5 mg/liter
Nitrite-nitrogen
Free chlorine
Hydrogen sulfides
0.06 mg/liter
0.03 mg/liter
0.002
mg/liter
COD
DO
50 mg/liter
3 mg/liter
(2-8 mg/liter)
2-7.5 mg/liter
Total
phosphorous
Total
nitrogen
Arsenic
Cobalt
1 mg/liter
1 mg/liter
0.2 mg/liter
(0.02-0.09
mg/liter)
(0.2-1.0
mg/liter)
0.01 mg/liter
Borium
1 mg/liter
1 mg/liter
Selenium
0.05
mg/liter
0.01
mg/liter
0.05
mg/liter
0.02
mg/liter
0.03
mg/liter
Cadmium
Hexavalent
chrome
Copper
Lead
Air
temperature
3
1,000
mg/liter
400 mg/liter
20 mg/liter
Item
Mercury
25
mg/liter
100
6.06.58.5
1-10 mg/liter
Microorganisms
Fecal coliform 2,000MPN/100mL
group
Coliform group 10,000MPN/100mL
Reference: Japanese
Environmental
Standard
0.0005 mg/liter
0.03 mg/liter**
Must
not
detected
0.8 mg/liter
10 mg/liter**
505,000MPN/100mL
Organic chemical substances

1,000g/liter
200g/liter
1g/liter
0.01 mg/liter
Oils
Surfactant
agent
Phenol
compounds
BHC
210g/liter
0.01 mg/liter
DDT
2g/liter
0.05 mg/liter
BHC: Benzene hexachloride

(hexachlorocyclohexane)
DDT: Dichloro-diphenyl-trichloro-ethane
0.01 mg/liter
7-51
be
* Standards applied to monitoring of rivers close to Supit Urang disposal site in Malang City
(III classification: water for farming freshwater fish, agricultural water supply, etc.)
According to data obtained when conducting a hearing with Malang Regency
** Standard values for nitrate-nitrogen and nitrite-nitrogen
Note Figures in parentheses are standards applied to lakes and marshes and ocean.
Japanese environmental standards include items that are not included in the above table. For example,
chlorinated organic compound
Source: (2008 East Java Province Rule No. 2)
<Environmental Impact Assessment>

The aforementioned environmental management law also prescribes an environmental impact
assessment system. As for projects on a scale that doesnt require environmental impact assessment,
it is compulsory to submit an environmental management plan and environmental monitoring plan
(UKL/UPL). Since these systems are integrated with project authorization, it is necessary to undergo
one of these procedures when conducting development projects, except for small-scale projects, in
Indonesia.
In the Indonesian environmental assessment system (AMDAL), it is necessary for projects to satisfy
control values concerning environmental elements such as air and water quality, but maybe more
than environment, greater importance is placed on assessment of impacts on society and economy.
Socioeconomic impacts refer to the effects that projects will have on local economy, employment
and residents lifestyles, and various requests are raised by local residents via the environmental
impact procedure.
Concerning progress of AMDAL procedures, it is commendable that appropriate information

disclosure and communication with local residents is secured through the placement of
announcements in newspapers and so on.
<Current conditions of business establishment monitoring>

In the case of Greater Malang, continuous monitoring of exhaust gases in individual factories is not
compulsory. Rather, environmental monitoring is carried out once every six months for exhaust
gases and once every three months for wastewater, and compliance with control standards is
reviewed each time.
Concerning administrative guidance, business owners are assembled once every three months to
undergo environmental education and enlightenment. Moreover, concerning businesses that fail to
comply with control standards as a result of environmental monitoring, submission of improvement
plans is demanded and guidance is conducted.
7-52
<General environmental monitoring>

Continuous monitoring of general environmental items such as air quality and water quality is not
carried out in built-up areas of Greater Malang. This means that field surveys have to be conducted
every time it is desired to investigate compliance with environmental standards.
Meanwhile, in Surabaya, continuous monitoring of air pollutants is carried out beside main roads
and electric signboards have been constructed to display current concentrations. Concentrations are
displayed in bar graphs, in which the environmental standard value is assumed to be 100, for each air
pollutant such as sulfur dioxide and particulate material. Displays are colored in green, yellow and
red as the concentration level rises so that drivers can immediately know the current state of air
pollution (See the photos on page 7-50).
Table 7.14 East Java Province, Air Environmental Standards and Fixed Source Air Control
Standards (Extract)
PERATURAN GUBERNUR JAWA TIMUR NOMOR 10 TAHUN 2009
TENTANG BAKU MUTU UDARA AMBIEN DAN EMISI SUMBER TIDAK BERGERAK DI
JAWA TIMUR
I. BAKU MUTU EMISI SUMBER TIDAK BERGERAK UNTUK INDUSTRI ATAU KEGIATAN
USAHA LAINNYA YANG SUDAH BEROPERASI
O Thermal boiler power plant using biomass other than waste bagasse and waste sugar cane
No.
Item
Control Standards
(mg/Nm3)
Non-metals
1
Particulate material
2
Sulfur dioxide
3
Nitrogen dioxide
4
Hydrogen chloride
5
Chlorine gas
6
Ammonia
7
Hydrogen fluoride
8
Opacity
9
Total hydrogen sulfide
Metals
1
Mercury
2
Arsenic
3
Antimony
4
Cadmium
5
Zinc
6
Lead
350
800
1000
5
10
0.5
10
30%
35
5
8
8
8
50
12
Note - Nitrogen dioxide is measured as N02.

- Gaseous volume in the standard state (1 atmosphere 25)
- Concentration of particulate material is corrected by 6% oxygen.
- Opacity is used as a practical monitoring indicator developed in order to acquire a correlation with observation of
overall particles.
7-53
X Other Industrial Activities
No.
Item
Control Standard
(mg/Nm3)
Non-metals
1
Ammonia
2
Chlorine gas
3
Hydrogen chloride
4
Hydrogen fluoride
5
Nitrogen dioxide
6
Opacity
7
Particulate material
8
Sulfur dioxide
9
Total hydrogen sulfide
Metals
1
Mercury
2
Arsenic
3
Antimony
4
Cadmium
5
Zinc
6
Lead
400
10
5
10
1000
35%
350
800
35
5
8
8
8
50
12
Source: East Java Province, Air Environmental Standards and Fixed Source Air Control Standards (Extract)
2) Issues
Air environmental standards, etc. are set for human health protection, however, in Greater Malang,
constant monitoring of general environment isnt implemented and there is not a sufficient grasp of
current conditions.
Also, although legislation concerning environmental controls exists on a par with advanced countries,
administrative coercion is extremely weak compared to Japan and there is little awareness of
compliance with environmental controls on the side of enterprises too. There is an urgent need for
the following: proficiency in environmental technology among administrative agencies,
enhancement of environmental awareness among citizens, and establishment of corporate
compliance.
7.2.3 Proposals Geared to Improvement in Malang

(1) Formulation of Waste Treatment Plan
In order to compile the treatment plan (master plan) and implementation plan (action plan), it is
necessary to grasp the overall flow of waste from generation to disposal (generated amount recycled amount - treated amount (compost, etc.) - disposed amount) in terms of waste weight.
7-54
A sure way of weighing waste is to install and use weighing machinery, however, considering the
equipment costs involved, a more realistic approach at the initial level is to manage amounts based
on visual inspection. For example, the following method is proposed.
<Grasping the generated amount and composition of waste>

-
In order to gauge the volume of waste that is carried from the TPS, rather than counting the
capacity of containers, attach calibrations to containers and visually gauge the exact volume of
waste in each one that is carried in (for example, TPS and TPA managers).
(Where possible) Sample waste according to each TPS and measure the composition (organic
waste, metals, plastics, paper, etc.) and bulk specific gravity (using basic scales) of the waste.
Based on the above results, arrive at a more realistic grasp of the amount of waste.
Also, judging from the number of households that discharge waste to the TPS, grasp the amount
of waste discharged by each household.
Concerning the amount of recyclable waste that is recovered by waste pickers, this can be gauged
because the waste is sold based on weight. It is necessary for the administrative side to collect
such data as much as possible.
In order to grasp the amount of waste generated by each household in areas where collections are not
carried out, it is desirable to conduct survey of discharge sources, and if that isnt feasible, the
generated amount of waste is estimated by using the unit of discharge deemed to be most appropriate
for the local area out of the abovementioned amount of waste per household.
In this way, the treatment plan and implementation plan are compiled upon grasping the flow of
waste in terms of weight. When compiling plans, it is appropriate to consider what kind of waste to
target for recycling upon referring to the composition of waste, and what kind of guidance to
conduct with a view to reducing illegal dumping upon gauging the amount of waste that is generated
in areas where no collections are carried out, and so on.
(2) Recovery and Separate Discharge of Resources

<Establishment of a stable resources collection system>
As was mentioned previously, an issue is that since the resource recovery system based on activities
by waste pickers has some unstable aspects when viewed in the long run, it is appropriate to for the
public sector to establish a more long-term stable recycling system through providing some backup
and exercising a certain degree of control.
However, in Greater Malang, since removing waste pickers would lead to social confusion, it is
7-55
conversely important to examine a recycling system that makes use of the waste pickers. For
example, through providing an area for recovering resources while giving consideration to the
working environment, it may be possible to carry out the efficient collection of resources.
In order to advance such examination that includes consideration for waste pickers, since the local
social environment including employment and education and so on is greatly involved, it is desirable
to advance broad examination that also includes employment measures, industrial promotion,
education agencies and other related departments.
<Enlightenment of residents>
In order to efficiently implement the collection of resources (metals, plastics, paper, etc.), as separate
discharge in the discharge stage is the most important issue, it is important to secure cooperation
upon conducting education and enlightenment with respect to citizens and securing understanding
that the 3Rs and separate waste discharge in consideration of recycling are necessary in order to
form a sustainable recycling-oriented society.
Since such education and enlightenment activities are implemented not only in the City of Osaka but
many other cities and countries, it is necessary to collect as much information as possible and select
enlightenment techniques according to the situation in the country concerned (education level, public
interest in environmental issues, information communication environment, etc.).
Furthermore, in view of Osakas success in using a side reader for elementary school children and
other materials to promote education and enlightenment, it is proposed that such materials be
referred to here.
(3) Measures to Address Illegal Dumping (River Dumping)

As a measure for addressing illegal waste dumping not just limited to river dumping, it is appropriate
to grasp the actual situation and its causes and examine effective countermeasures.
<Fact-finding concerning illegal dumping>

-
Identify the places where illegal dumping is occurring and investigate the amount and
composition of dumped waste.
Judging from the amount and composition of dumped waste, determine the general sources of
discharge. (Is the waste mainly coming from low income households or businesses?)
Examine countermeasures according to the sources of discharge (areas and contents of waste).
(For example, if waste mainly originates from low income households, establish a subsidy system,
7-56
and if such a system already exists, advertise it more and so on. If the waste comes from
businesses, bolster guidance and so on).
<Prevention and early addressing of illegal dumping>

-
Effective measures for dealing with illegal dumping are prevention and early addressing. If it is
possible to pinpoint the areas where illegal dumping frequently occurs, it is appropriate to carry
out periodic patrols with a view to preventing dumping before it can occur or recovering waste
quickly before it can accumulate.
In order to prevent illegal dumping before it occurs, it is desirable to conduct education and
enlightenment activities with respect to citizens and seek understanding that illegal dumping
pollutes the environment (water sources) and creates a health risk for people.
It is thus proposed that the abovementioned surveys and countermeasures be conducted in order to
address the issue of illegally dumped waste, however, concerning the waste dumped in rivers
especially, since rivers cross over multiple administrative areas, it is appropriate to take measures
based on cooperation between the municipalities concerned.
In addition, the municipalities concerned need to discuss and decide the implementing agencies and
cost burden, etc.

<Composting>
In the case where composting is implemented with the aim of reducing the amount of finally
disposed waste, it will be necessary to install large-size mechanical equipment and construct the
management setup including the method for inspecting the produced compost. In order to conduct
such measures, large costs will be incurred in installing and maintaining facilities, however, if the
produced compost cannot be retailed at a price, maintaining the facilities will no longer be feasible
and the initiative will not result in reducing the treated amount of waste.
Therefore, as a basic principle, it is appropriate to conduct composting only to the extent that the
produced compost can be utilized.
<Introduction of waste incineration>

In view of the large amounts of waste being carried into final disposal sites and the difficulty of
securing land for final disposal sites, it is necessary to introduce intermediate treatment to Greater
Malang, and the faster this can be achieved the more effective it will be in terms of mitigating the
7-57
load on sites and the sanitary environment.
In the project scheme, as the construction and operation of intermediate treatment facilities by a PPP
is being considered, it will be necessary to design facilities upon giving ample consideration to cost
effectiveness.
Concerning prevention of pollution, the equipment composition (closed system based on dry
treatment and so on) will be designed with a view to clearing the control standards required in
Greater Malang and upon considering the financial burden.
Simple and low cost facilities will be adopted upon removing sophisticated control systems.
Revenue from power generation will be actively sought through introducing high efficiency
generating facilities.
In order to construct facilities and maintain them over the long term, since it will also be
necessary for the administrative side to understand the need for incineration treatment and the
treatment technology concerned, it is desirable to implement the capacity development of
employees.
<Consideration for waste pickers>

As there are many waste pickers on final disposal sites in Greater Malang, introduction of
incineration facilities could impact their livelihoods, and it will be necessary to take them into
consideration when planning facilities. For example, it is desirable to provide areas such as
temporary storage yards (before waste is thrown into pits) so that the waste pickers have a chance to
recover valuable resources.

In Greater Malang, the direct landfilling of waste is carried out, however, as was mentioned above, it
is appropriate to take measures geared to realizing early improvements and thereby ensuring that
Malang doesnt confront the same kinds of problems that the City of Osaka experienced in the past.
In particular, it is urgently necessary for the final disposal sites to implement sanitary landfill based
on appropriate earth cover and the appropriate treatment of leachate.
<Introduction of sanitary landfill>

-
Concerning earth cover, since there is also the issue of waste pickers to consider, it is appropriate
to partition landfill sites into zones and increase the frequency of landfilling upon compiling
landfill management plans for phased landfilling (for example, changing the landfilling zone on a
7-58
weekly basis).
-
Concerning treatment of leachate, it is basically necessary to establish water quality management

standards and install leachate treatment equipment, however, if this is difficult to do in terms of
budget and so on, it is appropriate to take water quality improvement measures (for example,
aerobic treatment techniques such as reflux treatment and aeration treatment, etc.), implement
monitoring and periodically confirm the water quality.
<Introduction of semi-aerobic landfill>

-
On the final disposal sites that are planned for future expansion and the sites that cannot be used
for wide area treatment due to their remote location, it is appropriate to introduce landfill
methods geared to the early stabilization of sites (semi-aerobic landfill) in the interim period
before introduction of waste incineration (assuming that direct landfilling is conducted).
Concerning measures on existing disposal sites too, it is desirable to seek improvement to

appropriate landfill sites through securing semi-aerobic landfill sites on adjoining land, digging
up the buried waste and successively transferring it to the new sites.
<Compilation of landfill plans>

-
Since uses of final disposal sites after completion of landfilling are limited to green tracts and so
on, it is appropriate to compile landfill plans that consider how certain parts of sites are to be
used in future.
When conducting wide area treatment, considering the sheer size of Malang Regency, rather than
aiming to serve the entire area, it is appropriate to target areas over which collection and haulage
efficiency can be maintained.
It can thus be seen that various improvements need to be made on the final disposal sites in Greater
Malang, however, in order to do this upon considering local budget and technical factors, the issue of
waste pickers and the differing environment and restrictions with Japan and so on, it is urgently
necessary for the Greater Malang authorities to understand the techniques and effects of landfilling
and to change their perception from waste disposal sites to waste landfill and reclamation sites in
consideration of local environment. It will also be desirable for the local side to undergo capacity
building so that it is able to compile landfill plans, etc.

From the viewpoint of environmental management, the following proposals are made concerning the
introduction of incineration facilities to Malang.
7-59
<Appropriate implementation of environmental monitoring of air and water quality, etc.>

In order to appropriately implement environmental management, it is necessary to have a detailed
grasp of current conditions. Air quality and water quality that are directly linked to the health of
citizens are essential environmental elements.
In Japan, expensive 24-hour monitoring devices are installed and measure concentrations of air
pollutants, however, as it is first important to grasp the surrounding environmental conditions, it is
proposed that cheap and simple methods be adopted in order to investigate air and water quality over
a wide area.
Specifically, concerning air quality, the passive sampler method or gas detecting tube method in
which a filter is used to adsorb the target pollutants are cheap and effective, whereas concerning
water quality, basic water inspection kits are a cheap and simple means of grasping quality.
Implementing such environmental monitoring on an ongoing basis is important not only for grasping
environmental changes and compliance with environmental standards over time but also for
confirming the environmental improvement effects of the type of integrated waste to energy
initiative being proposed in the project.
Photograph 7-35
Example of a basic water quality
inspection kit
Photograph 7-34
Example of a passive sampler
<Air and water environmental improvement effects of introducing waste incineration treatment>
In Greater Malang, there are problems with the drainage and treatment of leachate from final
disposal sites, while dumping of waste into rivers is leading to water pollution. Moreover, on waste
final disposal sites, methane gas and the spontaneous combustion of combustible wastes are leading
to frequent air pollution including sooty smoke and harmful substances. Accordingly, there is urgent
need to conduct improvements from the viewpoint of health protection.
7-60
The City of Osaka has experience of greatly improving the local environment through introducing
incineration treatment, thereby reducing the volume of and stabilizing wastes, improving the quality
of leachate from disposal sites and preventing air pollution due to combustion on sites. The
integrated waste to energy system proposed here can contribute to the resolution of environmental
issues that are confronting the final disposal sites of Greater Malang.
Furthermore, through recovering thermal energy from incinerators and introducing a waste to energy
system, contribution can be made to utilizing local unused energy and controlling discharge of
greenhouse gases.
When introducing waste treatment facilities, it is necessary to consider the following kinds of items.
Introduction of sound exhaust gas treatment technology for dealing with particulates and dioxins,
etc.
In Japan, dioxin controls that meet international standards have already been established and
the technology for controlling emissions of dioxins has been established with successful results.
Through adopting such technology in the project incineration facilities, the utmost steps will be
taken in order to address particulates and dioxins in exhaust gases (removal of pollutant
substances through installation of bag filters and implementation of dry treatment).
Appropriate combustion management

Through constantly maintaining temperature inside incinerators at 800 or more, generation of
dioxins can be limited. However, even if generation of dioxins can be restricted by combustion
management, when the temperature of exhaust gases drops to 300 or so, because reaction of
organic substances and chlorine in gas causes dioxins to recompose, it is necessary to install a
temperature reduction tower, etc. and rapidly cool exhaust gases in the latter stage of the
incinerator in order to prevent this from happening.
<Environmental assessment: Environmental assessment and formation of consensus based on

appropriate disclosure of environmental information to citizens>
Based on the environmental management law (Law No. 32 of 2009), environmental impact
assessment is implemented and a system for appropriately forecasting and assessing environmental,
social and economic impacts of projects has been established. This system has already been applied
to numerous large-scale projects and environmental impact assessment has become institutionally
established. Meanwhile, the environmental assessment axis in environmental impact assessment is
limited to compliance with control standards, and considering future sustainability it will be
7-61
necessary for each individual project operator to autonomously implement feasible environmental
preservation measures and thereby strive to keep environmental impacts to a minimum going beyond
the bounds of controls.
Moreover, in order for citizens to have appropriate environmental information and greater interest in
environmental conservation, it is important to conduct projects upon appropriately disclosing
information on environmental impact assessment and environmental monitoring and securing
transparency. In the project, it will be appropriate to fully utilize the current AMDAL system, etc. in
giving consideration to the environment and building consensus with citizens.
As methods for disclosing environmental information, a very effective method is to implement

environmental monitoring in built-up areas and to constantly provide the monitoring information to
citizens via the aforementioned electric signboards, etc.
Photograph 7-36
Signboard indicating air pollution status on a
roadside in Surabaya
Photograph 7-37
Environmental data display panel at an
incineration plant (installed in a place that is
visible to citizens)
(7) Capacity Building for Waste Treatment and Environmental Management

Various proposals have so far been made ranging from the waste treatment plant to implementation
of environmental management, however, it will be very important to implement capacity building to
ensure that these proposals are executed.
The City of Osaka is prepared to cooperate through dispatching lecturers and so on in order to
7-62
conduct individual technology training or package training in the following matters discussed so far:
1) techniques for compiling waste treatment plans, 2) techniques for building the valuable resource
collection system, 3) techniques of environmental education and enlightenment, 4) intermediate
waste treatment technologies and operation methods, 5) final disposal site management methods, 6)
guidance on environmental conservation controls, 7) environmental monitoring technology, 8)
environmental assessment techniques (simulation technology, etc.), and 9) environmental
information disclosure method, etc. Moreover, it is proposed that contribution be made to
environmental improvement in Greater Malang in East Java Province, Indonesia via the integrated
waste to energy project.
7-63
7-64
Chapter 8
Technical Superiority, etc. of Japanese Enterprises
8-1
8-2
8.1 Projected Mode of Participation by Japanese Enterprises

(Funding, Equipment and Materials Supply, Facilities
Management, etc.)
8.1.1 Mode of Participation
Concerning the projected mode of participation, as was described in Chapter 5, since the local
authorities have no experience of constructing and operating waste to energy facilities and no
subsidy schemes for building such facilities as is the case on Japan, the most realistic approach is a
PPP scheme in which a private sector enterprise that possesses experience and know-how takes the
initiative in implementation.
Figure 8-1 Conceptual Diagram of Project Scheme
8.1.2 Project Profitability

The most important point in the PPP scheme is project profitability. Again, as was analyzed in
Chapter 5, project revenue is composed of waste treatment consignment fees (tipping fees) from the
public sector side and revenue from the sale of power generated using waste heat in the operating
stage to the power company. However, since tipping fees from public authorities in Indonesia are
cheaper than in Japan, it will be essential to secure the maximum possible cost reduction through
localized production and procurement when compiling the project plan. In the project, it is planned
8-3
to conduct local production and procurement as much as possible concerning not only the civil
engineering and installation works but also the operation of equipment and facilities, procurement of
utilities (required in large amounts) and recruitment of O/H and maintenance staff and plant
operators, etc. When conducting localized production and procurement, since there are hardly any
operators that have experienced construction of incineration facilities in Indonesia, it will be
necessary to collect information from Japanese enterprises that have located in Indonesia, investigate
previous plant projects and identify the operators that do have past experience.
8.2 Superiority (Technical and Economic) of Japanese Enterprises

in Project Implementation
8.2.1 Technical Superiority
(1) Superiority of incineration technology
The modernization of waste treatment in Japan began in 1963, when the government compiled the
first five-year plan for construction of living environment facilities and adopted the policy of
basically incinerating municipal waste and landfilling the residue. After that, incineration plants
came to be built in cities throughout the country. In the same year, Japans first totally continuous
mechanical incinerator went into operation in Osaka. Thanks to basically adopting incineration of
municipal waste, Japan realized the sanitary stabilization and volume reduction of waste.
After that, as various products came to be produced and consumed in line with technical innovation
during the era of economic growth, the composition of urban waste became more diverse and
concerns came to be raised over emissions of harmful substances such as hydrogen chloride and
dioxins from incineration. Dioxin countermeasures and environmental conservation measures, etc.
were subsequently incorporated into incineration facilities. Today, incineration accounts for roughly
80% of all waste treatment in Japan, and Japan boasts the largest number and most sophisticated
incineration facilities in the world.
Moreover, recycling systems have come to be established based on source countermeasures and
recycling legislation. Japan also has extensive experience of handling disputes between authorities
and residents over the construction of treatment facilities and taking steps to liaise with residents.
Japan thus has extensive experience and know-how of incineration facilities and is well capable of
constructing facilities in urban areas and sites adjoining residential land.
8-4
Figure 8-2 Waste Treatment in Japan (Ministry of Environment)
(2) Superiority and Record of Treatment Systems

Concerning Japanese incineration facility treatment systems, in terms of treatment capacity, the
stoker system (fire grate system) accounts for 77%. The merits of stoker incineration furnaces are
that combustion is gentle and stable. Also, it is possible to construct large-scale facilities, and
maintenance and operation control are easy. As this is the most widespread and mature technology in
Japan, the stoker system is adopted in the project too.
8-5
Table 8-1 Trends in the Number of Treatment Facilities and Treatment Capacity by Type of
Treatment
Stoker
Cate
gory
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
(Private
sector)
Number
of
Facilities
1,264
1,243
1,116
1,036
1,012
962
939
929
912
883
47
Fluidized Bed
Fixed Bed
Others
Total
Treatmen Number Treatmen Number Treatmen Number Treatmen Number Treatmen

of
t
t
t
of
t
of
t
of
Capacity Facilities Capacity Facilities Capacity Facilities Capacity Facilities Capacity
170,999
207 25,075
147
1,280
97
4,204
1,715 201,557
171,619
205 25,473
143
1,177
89
4,464
1,680 202,733
164,390
210 27,210
77
1,291
87
5,983
1,490 198,874
158,672
214 28,027
61
458
85
6,700
1,396 193,856
159,235
216 28,685
54
408
92
7,624
1,374 195,952
151,659
211 27,451
51
412
94
9,936
1,318 189,458
151,242
213 27,764
49
412
100 10,596
1,301 190,015
149,916
214 28,504
46
330
96 10,394
1,285 189,144
146,755
216 28,656
46
321
95 11,571
1,269 187,303
144,083
213 29,375
48
324
99 12,424
1,243 186,205
4,415
27
3,038
107
6,417
139
95,184
320 109,053
(3) Environmental Improvement Effects

Effects of conducting appropriate incineration treatment
The service life of disposal sites can be extended through greatly reducing the volume of waste via
appropriate incineration treatment. Also, harmful substances can be rendered harmless by heat
treatment, thereby preventing air pollution, water pollution and spread of communicable diseases,
etc.
Greenhouse gas emissions reduction effect
Reduction of methane gas emissions as a result of direct landfilling Reduction of CO2 emissions as a
result of power generated from waste
Appropriate treatment of wastewater from incineration facilities
Concerning wastewater from incineration facilities, it is discharged into rivers upon first undergoing
appropriate treatment.
Effects on local society
Conducting appropriate incineration treatment helps prevent expansion of treatment quantities and
illegal dumping.
8-6
(4) Record
The record of the main stoker incineration facilities currently operating in Japan is indicated below.
Tokyo 23 Wards Cleansing Association
Central Cleansing Plant
City of Osaka, Maisu Plant

900 t/day (450 t/day x 2)
600 t/day (300 t/day x 2)
Completed in 2001
Completed in 2001
Power generation: 32,000 kw
Fukuoka City
Tokyo 23 Wards Cleansing Association

Sumida Cleansing Plant
900 t/day (300 t/day x 3)
600 t/day (200 t/day x 3)
Completed in 2001
Completed in 1998
8-7
East Saitama Recycling Association,

Daiichi Plant
Chengdu (China)
1,200 t/day (400 t/day x 3)
800 t/day (200 t/day x 4)
Completed in 2008
Completed in 1995
Daechon-Dong, Bucheon (South Korea)
Taipei (Taiwan) Shiln Plant
300 t/day (300 t/day x 1)
1,800 t/day (450 t/day x 4)
Completed in 2000
Completed in 1998
Power generation: 2,600kw
Power generation: 48,000kw
8-8
8.3 Necessary Measures for Facilitating Orders with Japanese

Enterprises
8.3.1 Cost Reduction through Localized Production and Procurement
In order to win the project order, it is necessary to provide competitive cost estimation. Moreover,
since it is essential to realize project profitability, it is vital to realize low costs through pursuing
localized production and procurement as much as possible. For this purpose, it will be necessary to
implement thorough field investigation and uncover reliable partners and suppliers.
8.3.2 Advertisement of the Superiority of Japanese Technology

The Government of Indonesia and the local municipalities have little knowledge of waste
incineration facilities, or the knowledge they do possess tends to be erroneous. It will first be
necessary to correct any wrong understanding and impress on the local side the highly sophisticated,
safe and sanitary waste incineration technologies that Japan can offer. For this reason, it will be
important to conduct local PR activities such as presentations and seminars for local residents and
officials.
8.3.3 Development of Operation Management Engineers

In operating the waste incineration facilities, it is extremely important to develop local operation
managers from the viewpoints of reducing costs, ensuring fast responses and promoting local
employment. It is necessary for the operating side to implement technology transfer and training of
such operators from the trial operation stage.
8-9
Chapter 9
Prospects for Project Fundraising
9-1
9-2
9.1 Examination of Fund Sources and Fundraising Plan

(design-build-operate scheme) and PPP scheme (build-own-operate scheme or
build-operate-transfer scheme) are examined. In the Study, however, the PPP scheme is envisaged.
9.1.1 Fundraising for Initial Investment

Assuming that the tipping fees and revenue from power sales, which are the main sources of revenue
in the project, will be paid in the local currency IDR, fundraising in the local currency will be
examined with a view to averting the currency risk. From the hearing with local financial agencies, it
was pointed out that, since revenues are likely to arise in the local currency, it will be necessary to
increase the local procurement ratio in construction as well as localize operation affairs.
The immediate standard interest rate is 6%, so the Study interest will also be 6%. Regarding the
concrete spread that is demanded by financial agencies when they conduct actual fundraising, it will
be necessary to conduct investigation when it comes to actually conducting the project. Most
recently (November - December, 2011), the Central Bank of Republic of Indonesia has decided to
hold the policy rate (BI rate) at 6%, which is the lowest rate it has ever been. The Central Bank has
set the target rate of inflation for 2012-2013 at 4.5% 1% and prices are stable.
Based on hearings with local financial agencies, the fundraising plan has been compiled to ensure
that equity capital accounts for 30% or more of the initial investment.
Table 9-1 Composition of Fundraising

Use of Funds (million yen)
Fundraising (million yen)
Construction cost
9,770
Borrowing
7,382
Others
776
Equity capital (30%)
3,164
Total
10,546
Total
10,546
9-3
9.2 Fundraising Feasibility

9.2.1 Utilization of Government Infrastructure Funds
(1) Investment and Loan Agencies
In Indonesia, PT SARANA MULTI INFRASTRUKTUR (PT SMI), primarily funded by the Asia
Development Bank and International Finance Enterprise, was established as a finance agency with
the goal of promoting infrastructure development in Indonesia. It possesses advisory functions and
finance functions and can handle a wide variety of work including senior loans, mezzanine, equity
investment and operating fund lending, etc.
The sectors targeted by this organization are toll roads and bridges, rail transportation, oil and gas,
telecommunications, electric power, irrigation water supply, waterworks and sewerage, and waste
and recycling facilities. As the Project is a waste to energy project targeting municipal waste, it is
confirmed to be a target for loan.
At the same time, PT INDONESIA INFRASTRUCTURE FINANCE (PT IIF) has been established
under the auspices of the Ministry of Finance as a financing agency for infrastructure development,
and together with PT SMI it is starting to function as a catalyst for infrastructure development in
Indonesia.
(2) Guarantee Agency

Around the same time as PT SMI in 2010, PT INDONESIA INFRASTRUCTURE GUARANTEE
FUND (PT IIGF) was established under funding from the World Bank, etc. and under the auspices of
the Ministry of Finance. PT IIGF serves to guarantee PPP infrastructure projects in Indonesia, and it
also guarantees work execution by the public sector side with respect to central and local
governments and state-owned enterprises such as the power company and so on. The scheme is as
follows. It supports PPP projects in tandem with PT SMI and PT IIF (investment and loan agencies)
and promotes the construction of infrastructure in Indonesia.
9-4
Figure 9-1 PT IIGF Guarantee Scheme
In the Project scheme, the provincial and municipal governments that are the contract parties in the
PPP scheme pay the waste tipping fees, while the power company that purchases power is a
state-owned enterprise with execution of its obligations guaranteed by the PT IIGF.
9.2.2 Utilization of Japanese Financial Assistance

Utilization of the export financing functions of the Japan Bank of International Cooperation (JBIC)
will be examined. Utilization in the case where a private sector enterprise procures funds in the
Project PPP scheme will be predicated on export of plant equipment from Japan, and consideration
will be given to buyers credit lending, where the private sector enterprise receives a direct loan, or a
bank loan known as a two-step loan. In the case of bank loan, funds will be lent from JBIC to the
Indonesian financial agency, which will then make the loan.
9-5
Figure 9-2 Financing Functions of Japan Bank of International Cooperation (JBIC)
JBIC
Indonesian
Bank loan
financial agency
Buyers credit
Japanese
enterprise
Loan
Indonesian
Plant equipment export
Exporter
private sector
company
In the review of loan for the waste to energy project, careful investigation including environmental
assessment will be conducted on the adopted technology and operating aspects of environmental
conservation concerning the facilities targeted in the field investigation.
9.2.3 Appropriate Bearing of Risk with the Public Sector

When it comes to financing, the inherent risks in the Project will be assessed as they will influence
the financing conditions and chances of actual execution. In the waste to energy scheme planned in
the Project, the key to financing feasibility will depend on how the following risks are balanced with
the public sector side.
(1) Risks concerning surrounding infrastructure development and consent of residents

Risks concerning delays to the start of works, postponement of the project period and so on can be
mitigated if the public sector side takes the initiative in securing and leasing land and securing
consent from local residents for the facilities. Also, it is hoped that the public sector side can start the
construction of surrounding infrastructure before the start of work on the project facilities. Project
risks can be averted if the public sector side cooperates in implementing the environmental
assessment and procedures for acquiring permission from supervisory government agencies prior to
the start of works.
9-6
(2) Risk of fluctuations in waste volume, waste composition and prices

conclude a project agreement with the public side. Based on the agreement, it is presumed that the
public sector side carry in waste and that the private sector side is consigned to construct, operate
and maintain the waste treatment facilities. In order to secure project revenue, it is necessary for a
certain amount of waste to be constantly carried in throughout the project period. Project feasibility
is dependent on either carrying in a certain amount of waste or having the public sector side
guarantee the revenue from waste treatment. Even in the event where the incoming amount of waste
declines, it is necessary to have in place a payment mechanism that ensures fixed costs are covered.
Revenue of the operating company is composed of the tipping fees received from the public sector
side and payments for power generated from waste and supplied to the power company. So long as
power is supplied, it is important to adopt a contract that guarantees long-term purchase and the unit
price of purchase, as in the feed-in-tariff system and so on.
Moreover, unlike power generating activity that utilizes fossil fuels, the waste to energy activity
entails risk in that the generated amount of power is influenced by the properties of waste (heating
value of waste), which corresponds to fuel. Project continuity can be enhanced through incorporating
a mechanism for compensating any decreases in generated energy through a sliding increase in
tipping fees, thereby providing insurance against fluctuations in not only the quantity of waste but
also properties of waste.
Additionally, as the project is a long-term undertaking, implementation will be conditional on

tipping fees being revised according to inflation, increases in personnel expenses, rising fuel prices
and other price trends.
(3) Technical risks

In the waste to energy utility, project stability and certainty can be enhanced and technical risks can
be mitigated in long-term projects through constructing facilities with proven performance and
conducting daily and periodic maintenance. Concerning operation planning and setting of the annual
number of operating days too, it is desirable for enterprises with a proven record to be involved, for
the company that conducted design and construction to conduct repairs of core equipment, and to
implement the planned repair and renewal of equipment based on the track record. In this project too,
technical risks can be greatly reduced through utilizing the technically superior technologies
proposed by the Japanese company.
9-7
(4) Risk of force majeure and revisions to law

Considering the public nature and extended period of the project, it is essential for any risks
concerning force majeure and revisions to environmental law and other general legislation to be
transferred to the public sector side, even if the project is implemented as a PPP scheme.
9.3 Cash Flow Analysis

Assuming the project preconditions in the financial and economic analysis in Chapter 5 to be the
base case, cash flow analysis is carried out.
Figure 9-3 Cash Flow Analysis Method

Revised condition 1

-
Internal rate of
return constant
What is
tipping fee?

Revised condition 2
9-8
Revised condition 3
- Procurement interest rate: 8%
Table 9-2 Base Case

Base case
Accounting Year
P
r
o
f
i
t
a
n
d
l
o
s
s
S
h
e
e
t
-2
P
l
a
n
n
i
n
g
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
1,411
768
643
997
Unitmillion yen
Sum total of
operationg
i21,165
d
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
294
703
414
0
0
0
0
0
0
0
0
0
0
0
443
-443
-29
0
-29
413
-413
1
0
1
384
-384
30
0
30
354
-354
60
15
45
325
-325
89
22
67
295
-295
119
30
89
266
-266
148
37
111
236
-236
178
44
133
207
-207
207
52
155
177
-177
237
59
178
148
-148
266
67
200
118
-118
296
74
222
89
-89
325
81
244
59
-59
355
89
266
30
-30
384
96
288
Operating Revenue
Tipping Fee
Operating Cost
Depreciation charge
Payment interest6%
Profit of the term
before-tax
Tax rate25%
Corporate ta
Accounting Year
C
a
s
h
-1
-2
-1
10,546
Subsidy
Capital Needs
Invest
Construction Cost
Loan Redemption
10
11
10
12
11
13
12
14
13
15
14
16
15
17
16
18
17
19
18
20
19
20
Unitmillion yen
Sum total of
operationg
i23,120
d
0
703
0
703
704
1
703
733
30
703
748
45
703
770
67
703
792
89
703
814
111
703
836
133
703
858
155
703
881
178
703
903
200
703
925
222
703
947
244
703
969
266
703
991
288
703
521
29
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
182
492
211
492
241
492
256
492
278
492
300
492
322
492
344
492
366
492
388
492
411
492
433
492
455
492
477
492
499
3,164
7,382
10,546
9,770
776
0
Unitmillion yen
Accounting Year
-2
Ben
efit Total
-1
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
10
76
41
117
11
76
41
117
12
76
41
117
13
76
41
117
14
76
41
117
15
76
41
117
16
17
18
19
16
17
18
19
20
76
41
117
Unitmillion yen
Accounting Year
FINANCIAL CF
C
ECONOMIC CF
F EQUITY CF
Eva FIRR
luat EIRR
ion Equity IRR
-2
-1
-10,546
-10,546
-3,164
1,117
1,234
182
1,117
1,234
211
1,117
1,234
241
1,117
1,234
256
1,117
1,234
278
1,117
1,234
300
1,117
1,234
322
1,117
1,234
344
1,117
1,234
366
10
1,117
1,234
388
11
1,117
1,234
411
12
1,117
1,234
433
13
1,117
1,234
455
14
1,117
1,234
477
15
1,117
1,234
499
6.44%
8.03%
5.78%
B/C
Interest
B/C
NPV
1,164
1,098
1,036
977
922
870
821
774
730
689
650
6.00%
1.14
1,439
9-9
613
579
546
515
20
11,520
9,645
14,956
0
4,410
10,546
6,209
0
0
3,543
-3,543
2,666
666
1,999
2,028
10,546
3,164
0
7,382
17,957
29
0
9,770
776
7,382
5,163
Table 9-3 Revised Condition 1

Condition
Accounting Year
P
r
o
f
i
t
a
n
d
l
o
s
s
S
h
e
e
t
-2
-1
Operating Revenue
Tipping Fee
Operating Cost
-2
-1
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
1,246
603
643
821
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
294
527
425
0
443
-443
-18
0
-18
413
-413
12
0
12
384
-384
41
9
32
354
-354
71
18
53
325
-325
100
25
75
295
-295
130
32
97
266
-266
159
40
119
236
-236
189
47
142
207
-207
218
55
164
177
-177
248
62
186
148
-148
277
69
208
118
-118
307
77
230
89
-89
337
84
252
59
-59
366
92
275
30
-30
396
99
297
0
425
106
319
0
425
106
319
0
425
106
319
0
425
106
319
0
425
106
319

Depreciation charge
Payment interest6%
Profit of the term
before-tax
Tax rate25%
Corporate ta
Accounting Year

C
a
s
Subsidy
h
Capital Needs
P
l
Invest
a
Construction Cost
n
n
Loan Redemption
i
10,546
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg
527
0
527
539
12
527
560
32
527
580
53
527
603
75
527
625
97
527
647
119
527
669
142
527
691
164
527
713
186
527
735
208
527
758
230
527
780
252
527
802
275
527
824
297
527
846
319
527
846
319
527
846
319
527
846
319
527
846
319
527
510
18
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
0
0
0
0
0
0
0
0
0
0
492
17
492
47
492
68
492
88
492
110
492
133
492
155
492
177
492
199
492
221
492
243
492
265
492
288
492
310
492
332
846
846
846
846
846
3,164
7,382
10,546
9,770
776
0
Unitmillion yen
Accounting Year
-2
Ben
efit Total
-1
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
10
76
41
117
11
76
41
117
12
76
41
117
13
76
41
117
14
76
41
117
15
76
41
117
16
76
41
117
17
76
41
117
18
76
41
117
19
76
41
117
20
76
41
117
76
41
117
Unitmillion yen
Accounting Year
FINANCIAL CF
C
ECONOMIC CF
F EQUITY CF
Eva FIRR
luat EIRR
ion Equity IRR
-2
-1
-10,546
-10,546
-3,164
952
1,069
17
952
1,069
47
952
1,069
68
952
1,069
88
952
1,069
110
952
1,069
133
952
1,069
155
952
1,069
177
952
1,069
199
10
952
1,069
221
11
952
1,069
243
6.44%
7.94%
5.52%
6.00%
9-10
12
952
1,069
265
13
952
1,069
288
14
952
1,069
310
15
952
1,069
332
16
952
1,069
846
17
952
1,069
846
18
952
1,069
846
19
952
1,069
846
24,928
12,068
12,860
16,426
0
5,880
10,546
8,502
0
0
3,543
-3,543
4,958
1,240
3,719
20
952
1,069
846
24,829
3,737
10,546
3,164
0
7,382
17,946
18
0
9,770
776
7,382
6,883

Condition
Accounting Year
P
r
o
f
i
t
a
n
d
l
o
s
s
S
h
e
e
t
-2
P
l
a
n
n
i
n
g
Operating Revenue
Tipping Fee
Operating Cost
-2
-1
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
1,410
767
643
821
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
294
527
589
0
443
-443
146
36
109
413
-413
175
44
131
384
-384
205
51
154
354
-354
234
59
176
325
-325
264
66
198
295
-295
293
73
220
266
-266
323
81
242
236
-236
352
88
264
207
-207
382
96
287
177
-177
412
103
309
148
-148
441
110
331
118
-118
471
118
353
89
-89
500
125
375
59
-59
530
132
397
30
-30
559
140
419
0
589
147
442
0
589
147
442
0
589
147
442
0
589
147
442
0
589
147
442
10,546
Subsidy
Capital Needs
Invest
Construction Cost
Loan Redemption
1,410
767
643
821

Depreciation charge
Payment interest6%
Profit of the term
before-tax
Tax rate25%
Corporate ta
Accounting Year
C
a
s
h
-1
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg
637
109
527
659
131
527
681
154
527
703
176
527
725
198
527
747
220
527
770
242
527
792
264
527
814
287
527
836
309
527
858
331
527
880
353
527
902
375
527
925
397
527
947
419
527
969
442
527
969
442
527
969
442
527
969
442
527
969
442
527
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
0
0
0
0
0
0
0
0
0
0
492
144
492
167
492
189
492
211
492
233
492
255
492
277
492
300
492
322
492
344
492
366
492
388
492
410
492
432
492
455
969
969
969
969
969
3,164
7,382
10,546
9,770
776
0
Unitmillion yen
Accounting Year
-2
Ben
efit Total
-1
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
10
76
41
117
11
76
41
117
12
76
41
117
13
76
41
117
14
76
41
117
15
76
41
117
16
76
41
117
17
76
41
117
18
76
41
117
19
76
41
117
20
76
41
117
76
41
117
Unitmillion yen
Accounting Year
FINANCIAL CF
C
ECONOMIC CF
F EQUITY CF
Eva FIRR
luat EIRR
ion Equity IRR
-2
-1
-10,546
-10,546
-3,164
1,116
1,233
144
1,116
1,233
167
1,116
1,233
189
1,116
1,233
211
1,116
1,233
233
1,116
1,233
255
1,116
1,233
277
1,116
1,233
300
1,116
1,233
322
10
1,116
1,233
344
11
1,116
1,233
366
8.52%
9.93%
9.02%
6.00%
9-11
12
1,116
1,233
388
13
1,116
1,233
410
14
1,116
1,233
432
15
1,116
1,233
455
16
1,116
1,233
969
17
1,116
1,233
969
18
1,116
1,233
969
19
1,116
1,233
969
28,200
15,340
12,860
16,426
0
5,880
10,546
11,774
0
0
3,543
-3,543
8,231
2,058
6,173
20
1,116
1,233
969
27,265
6,173
10,546
3,164
0
7,382
17,928
0
0
9,770
776
7,382
9,337

Condition
Accounting Year
Operating Revenue
P
Tipping Fee
r
o
f
Operating Cost
i
t
a
n
d
l
o
s
s
S
h
e
e
t
-2
-1
-1
Accounting Year
-2
Ben
efit Total
-1
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg period
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
1,616
973
643
997
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
294
703
619
0
0
0
0
0
0
0
0
0
0
0
591
-591
28
7
21
551
-551
68
17
51
512
-512
107
27
80
472
-472
146
37
110
433
-433
186
46
139
394
-394
225
56
169
354
-354
264
66
198
315
-315
304
76
228
276
-276
343
86
257
236
-236
383
96
287
197
-197
422
105
316
157
-157
461
115
346
118
-118
501
125
375
79
-79
540
135
405
39
-39
579
145
435

Depreciation charge
Payment interest6%
Profit of the term
before-tax
Tax rate25%
Corporate ta
Accounting Year
-2

C
a
s
Subsidy
h
Capital Needs
P
l
Invest
a
Construction Cost
n
n
Loan Redemption
i
10,546
10
11
12
13
14
15
16
17
18
19
20
Unitmillion yen
Sum total of
operationg period
724
21
703
754
51
703
783
80
703
813
110
703
842
139
703
872
169
703
901
198
703
931
228
703
960
257
703
990
287
703
1,019
316
703
1,049
346
703
1,079
375
703
1,108
405
703
1,138
435
703
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
0
492
232
492
262
492
291
492
321
492
350
492
380
492
409
492
439
492
468
492
498
492
527
492
557
492
586
492
616
492
645
3,164
7,382
10,546
9,770
776
0
Unitmillion yen
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
76
41
117
10
76
41
117
11
76
41
117
12
76
41
117
13
76
41
117
14
76
41
117
15
76
41
117
16
17
18
19
16
17
18
19
20
76
41
117
Unitmillion yen
Accounting Year
FINANCIAL CF
C
ECONOMIC CF
F EQUITY CF
Eva FIRR
luat EIRR
ion Equity IRR
-2
-1
-10,546
-10,546
-3,164
B/C
NPV
1,322
1,439
232
1,322
1,439
262
1,322
1,439
291
1,322
1,439
321
1,322
1,439
350
1,322
1,439
380
1,322
1,439
409
1,322
1,439
439
1,322
1,439
468
10
1,322
1,439
498
11
1,322
1,439
527
12
1,322
1,439
557
13
1,322
1,439
586
14
1,322
1,439
616
15
1,322
1,439
645
9.17%
10.66%
9.00%
B/C
1,357
1,281
1,208
1,140
1,075
1,014
957
903
852
803
758
8.00%
1.33
3,428
9-12
715
675
636
600
20
24,237
14,592
9,645
14,956
0
4,410
10,546
9,281
0
0
4,725
-4,725
4,556
1,139
3,417
24,509
3,417
10,546
3,164
0
7,382
17,928
0
0
9,770
776
7,382
6,581
Chapter 10
Action Plan and Issues in Project Actualization
10-1
10-2
10.1 Status of Initiatives Geared to Project Actualization

Basically, it is planned to proceed on to the next steps and implement concrete initiatives based on
the results of this Study. The issues geared to project actualization are as indicated below, however,
the following initiatives have already been conducted for resolving issues in the study so far:
Establishment of the project actualization structure including selection of local partner
Further reduction of facilities construction costs geared to improvement of the project

profitability
Recognition of waste to energy generation as an appropriate treatment method
Early formulation of controls to deal with exhaust gases and wastewater arising from
incineration of wastes
Concerning selection of local partner(), contacts have been initiated with consulting enterprises
that show an interest in this sector, and it is planned to narrow down the engineering operators,
construction operators and investment firms, etc. that have been reached. Concerning , search has
been narrowed down to promising equipment operators, etc. and preparations are underway to
conduct more detailed examination.
Concerning and , concerning the Ministry of Public Works and Ministry of Environment to
which reports have been given at the start and mid points of the study, further reports will be given
following the report meeting in Indonesia, while it is planned to implement explanations to other
central government agencies, i.e. the Ministry of Energy and Mineral Resources, National
Development Planning Agency and Technology Assessment and Application Agency, etc. with a
view to deepening recognition of PPP implementation of the waste to energy system as appropriate
treatment, and to compile related controls and list them in the PPP Book. Compilation of related
controls is deemed to be a necessary measure for erasing the conventional negative image of
incineration treatment and preventing approaches by other countries armed with lower costs.
10.2 Initiatives by Indonesian Government Offices

Implementing Agencies Geared to Project Actualization
and
10.2.1 Ministry of Environment

The Ministry of Environment maintains that the Waste Management Department has implementing
responsibility for the project, however, the ministerial ordinance on the environmental management
law (Law No. 18, 2008) is still being formulated. Although the draft version has been completed, the
10-3
ordinance has not yet been issued.
Moreover, there are no emissions standards concerning incineration of waste. Particularly

concerning the controversial issue of dioxins, there are no standards regarding exhaust gases and
wastewater, although a draft version has been completed.
Moreover, the Ministry of Environment does not have a budget for directly providing subsidies to
provinces, cities and regencies for the purpose of promoting the appropriate treatment and effective
use of waste. Accordingly, it is hoped that Indonesia can adopt a system similar to the grants
(subsidies) that are provided by the Japanese Ministry of Environment for construction of waste
treatment facilities.
10.2.2 Ministry of Public Works

In the Ministry of Public Works, the Directorate of Environmental Sanitation Development in the
Directorate General of Human Settlement is in charge of solid waste management, and the Subdit of
Solid Waste has responsibility for implementing technical support and operational support for solid
waste management. Concerning subsidies from the Ministry of Public Works to local governments
for construction of facilities, the Study Team couldnt ascertain any clear provisions, however, costs
of constructing facilities can be borne for local governments that show intent to conduct waste
management according to the national policy.
Concerning waste to energy generation, officials believe that Indonesian wastes are not suitable due
to high water content, however, they are willing to disseminate the technology as a policy if it can be
compatible. Also, concerning the bearing of facilities construction costs by central government, the
same approach that applies to sanitary disposal sites is adopted, i.e. funds can be allocated in relation
to promotion measures if the municipalities or regencies concerned take budget steps.
10.3 Legal and Financial Constraints, etc. in Indonesia

The project is a public undertaking concerning waste treatment, and it is also a power generating
project. In Presidential Decree 36/2010 concerning project fields closed off from investment and
fields conditionally open to investment, the solid waste treatment sector is not mentioned among
public utilities. As similar projects, potable water projects and high-speed road projects are raised on
condition that foreign investment is limited to 95%.
Meanwhile, looking at the power generating utility, in cases where the scale of generation is 10 MW
10-4
or over, a limit of 95% is placed on the overseas capital share, whereas concerning small-scale
projects of less than 10 MW, participation is allowed if it is in partnership with an Indonesian small
enterprise.
Summing up, there are no particular constraints placed on implementation of the project.
10.4 Need for Additional Detailed Analysis

In order to resolve the issues summarized in section 10.1, it will be necessary to conduct additional
detailed analysis upon receiving the results of the study. In particular, it will be essential to conduct
more concrete and detailed analysis based on a framework that includes local partners, and it will be
important to examine ways to raise the local procurement rate of equipment and reduce costs.
Concerning composition of project finance too, it will be necessary to conduct more specific
examination.
10-5

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STUDY ON PRIVATE-INITIATIVE INFRASTRUCTURE PROJECTS

IN DEVELOPMNG COUNTRTIES IN FY2011

STUDY ON THE INTEGRATED WASTE TO ENERGY

(Source: Indonesia: United Nations Development Programme Indonesia 1

Reduce Reuse Recycle

Environment Impact Assessment

Association of South East Asian Nations

Bali Democracy Forum

Agency for. Assessment and Application of Technology

Clean Development Mechanism

Dinas Cipta Karya dan Tata Ruang

Direktur Jenderal Energi Baru Terbarukan dan Konservasi

Environment impact assessment

Gross domestic products

Green House Gas

Deutche Gesellschaft fur Technische Zusammenarbeit GmbH

Indonesia Economic Development Corridor

International Monetary Fund

Independent Power Producer

Japan Bank for International Cooperation

Japan External Trade Organization

Japan International Cooperation Agency

Kementerian Energi dan Sumber Daya Mineral

National Committee for the Acceleration of Infrastructure

Ministry of the Environment

Kementerian Pekerjaan Umum

Land Use Change and Forestry

Metropolitan Priority Area

Municipal solid waste

Operation and Maintenance

PT Penjaminan Infrastrukur Indonesia

Perusahaan Listrik Negara

Public private partnership

Departmen Pekerjaan Umum

Final Disposal Site

Refuse Derived Fuel

PT Sarana Multi Infrastruktur

Temporary Disposal Site

Integrated Waste Management Facilities

Environmental Management and Monitoring Plan

United Nations Development Programme

Unit Pelaksana Teknis Daerah

Overview of the Host Country and Sectors................................................................1-1

1.1 The Republic of Indonesia Country Overview ....................................................................... 1-3

Study Methodology ....................................................................................................2-1

2.1 Study Contents ........................................................................................................................ 2-3

2.2.1 Study Method ................................................................................................................... 2-6

Justification, Objectives and Technical Feasibility of the Project............................3-17

3.1 Background and Necessity ...................................................................................................... 3-3

Evaluation of Environmental and Social Impacts ......................................................4-1

4.1 Analysis of Current Environmental and Social Situation ....................................................... 4-3

Financial and Economic Feasibility ...........................................................................5-1

5.1 Calculation of project costs ..................................................................................................... 5-4

5.1.1 Basic Preconditions for the Project .................................................................................. 5-4

Project Implementation Schedule ..............................................................................6-1

Implementation Capacity of the Implementing Agencies in Indonesia .....................7-1

7.1 Implementation Capacity of the Implementing Agencies in Indonesia .................................. 7-3

Technical Superiority, etc. of Japanese Enterprises ...................................................8-1

Prospects for Project Fundraising ..............................................................................9-1

9.1 Examination of Fund Sources and Fundraising Plan .............................................................. 9-3

9.2 Fundraising Feasibility............................................................................................................ 9-4

Action Plan and Issues in Project Actualization.......................................................10-1