ANALYSIS OF THE FEASIBILITY STUDY OF WASTE TO ENERGY INVESTMENT IN DKI JAKARTA : A CASE STUDY AT PT EMAS HIJAU ENERGI

• Main Author: Faizin, Agus
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/65611
• Institution: Institut Teknologi Bandung

Waste management is still a problem that needs an immediate solution for DKI Jakarta. The Intermediate Treatment Facilities (ITF) is a concept of reducing and managing waste through a technology which is a renewable energy that can reduce the number of piles up from the source and reduce emissions, which in the processing process can be utilized into energy products (electricity). ITF is based on the waste to energy concept by heating the waste into a closed room called an incinerator. This project is touted as one of the largest waste processing sites in the world because it is able to process 2,000 tons/day of waste. The processing and utilization of waste in various areas is expected to be one solution to reduce the burden of waste in the Bantar Gebang Integrated Waste Processing Site (TPST). It is also as the action to following up the Presidential Decree 35/2018 concerning Acceleration of Construction of Waste Processing Installations into Electricity-Based Energy Based on Environmentally Friendly Technology and as a contributions to accelerate the collaboration of the city of Jakarta and its citizens in optimizing sustainable clean energy without relying on fossil fuels, in accordance with the 2015 Paris Agreement. West Service Area ITF is an Intermediate Waste Processing Facility in the city of Jakarta which will be built to serve the processing of waste sourced from waste dump point in the West Service area according to the Decree of the Head of the DKI Jakarta Environment Agency no. 489/2020 (as an amendment to SK DLH no. 453/2019) which refers to the assignment of the DKI Jakarta Provincial Government to Jakpro through Pergub 65/2019. PT Emas Hijau Energi was selected as the ITF project partner with PT Jakarta Propertindo (Perseroda). In this research, an assessment of the feasibility of a Waste to Energy project was conducted. Internal and external analysis such as: PESTLE, SWOT & Porter Five Forces analysis method, and also including 4P Marketing Strategy and Risk Analysis are carried out before developing a business model and calculating financial feasibility. In this research, to determine alternatives, assumptions and considerations were made based on literature studies, interviews with experts and interested parties. There are 4 variables that become criteria in alternative scenarios, namely the Availability Factor (AF) of power plant, electricity tariff, tipping fee and Fly Ash Bottom Ash (FABA) utilization. For the AF of power plant there are 3 alternatives, namely 95%, 85% and 75%. For the electricity tariff the alternatives are chosen USD 14.54 cent /kWh, USD 11.63 cent /kWh and USD 10.82 cent /kWh. For the tipping fee, the alternatives are chosen at Rp. 728,000 /ton, Rp. 650,000 /ton and Rp. 500,000 /ton. As for the utilization of FABA, the alternatives chosen were 30%, 10% and 0%. The optimistic scenario calculation shows the results of the project Internal Rate Return (IRR) of 11.56% and the Payback Period (PP) of 10 years and 3 months, and the results of the equity Internal Rate Return (IRR) of 6.01% and the Payback Period (PP) of 18 years and 10 months. Calculations for moderate scenarios show project IRR results of 9.99% and PP 14 years 9 months, and equity IRR of 2.48% and PP 25 years 4 months. Calculations for the pessimistic scenario produce an project IRR of 5.67% and a PP of 24 years 4 months and the results of the equity IRR of -0.77% and a PP more than 30 years. After calculating the financial feasibility study, the results show that West Jakarta ITF project is feasible and can be implemented for optimistic and moderate scenarios, and not feasible for pessimistic scenario. If a project is not feasible, actions can be taken to render the project feasible. Such actions might range from decreasing capital expenditure, increasing revenue, lowering operational expenditure, minimising the cost of capital, or even seeking a capital subsidy. In addition, the project implementation plan to generate electric power needs to accelerate the construction period from 2 years and 9 months to only 2 years. Currently, support from the government is only limited to subsidy policies through electricity tariffs and tipping fees. In the future, it is also hoped that through financial support for Private-Public Partnership (PPP) projects to assist a part of construction costs through Viability Gap Funding (VGF) for a project that is economically viable but not financially viable. It is intended to increase the profitability of the project and support the establishment of economically profitable projects with low profitability.