MANAGEMENT AND TREATMENT OF ORGANIC WASTE
Exchange trip to denmark 26.-30. November, 2018
An ESP3-supported activity in the SSC Forum for Separation, Collection and Treatment of Indonesian Organic Waste from Households and Markets
Strategic Sector Cooperation Denmark – Indonesia on Circular Economy and Solid Waste Management 12. December 2018
MANAGEMENT AND TREATMENT OF ORGANIC WASTE

Exchange trip to denmark 26.-30. November, 2018

CONTEXT


Indonesia and Denmark have entered into a Strategic Sector Cooperation (SSC) on Circular Economy and Solid Waste Management. The SSC is carried out between environmental authorities of the two countries. The SSC is covering a 4½-year period from July 2018 to December 2022. The overall objective of the cooperation is to reduce negative environmental impact to livelihoods, economy and health from waste through sound waste management and circular economy initiatives. The partners of the SSC comprise of the Indonesian Ministry of Environment and Forestry (KLHK) and the Danish Ministry of Environment and Food (MFVM). The SSC is hence a cooperation between environmental authorities working on a peer-to-peer basis in order to support conducive policies and regulatory frameworks. This will be done by exchanging knowledge, improving performance in the sector and creating better framework conditions for private sector investment. The SSC is an important tool for the Danish Ministry of Foreign Affairs in growth economies and a high priority area for the Danish Trade Council. Denmark has been providing support to improve environmental management in Indonesia since 2005 through the Environmental Support Programme (ESP), which is currently in its third and final phase (ESP3). While the ESP3’s bilateral development programme is being phased out, and the Danish-Indonesian collaboration in the environmental sector is transitioning towards the SSC on Solid Waste Management and Circular Economy. Parts of the SSC activities in 2018 are supported financially by the ESP3

BACKGROUND


KLHK has estimated that Indonesia produces more than 65 million tonnes of solid household waste annually increasing by 2-4% per year. About 45-50%, waste is currently collected and the majority of this is taken to landfills. Indonesian solid waste collected from households contains approximately 60% organic waste with low calorific value

Landfills in Indonesia are filled to near or beyond capacity. Large amounts of GHG are emitted from the landfills with only a limited amount of gas being currently collected. It is proving increasingly difficult for the government to find suitable areas for new landfills

In order to reduce waste quantities at landfills and to contribute to a more sustainable energy production, thermal incineration of solid waste is currently being promoted by the Indonesian authorities. Separation of the organic waste would increase calorific value of the residual waste, while separate treatment of the organic waste with production of biogas and nutrients for soil enrichment would promote a more circular use of resources

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MAIN OBJECTIVE


To develop the Indonesian waste sector [and providing commercial opportunities for Danish companies to contribute to the development] through proper management and treatment of the bulky organic waste fraction of Indonesian household and market waste. Moreover, to explore the Indonesian waste sector’s readiness to transform and improve environmental and waste handling practices and exchange knowledge with Danish peers in the sector

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EXPECTED OUTPUTS


  • To establish a forum in which to discuss relevant policies, regulation, enforcement and implementation of solid waste management;
  • To establish and maintain strong links between Danish and Indonesian stakeholders within separation, collection and treatment of organic waste;
  • To create a mode of cooperation which can support Indonesian-Danish sharing of system solutions, knowhow and available technologies for organic waste separation, collection and treatment;
  • To create a base for further development of activities in the SSC within organic waste management.
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EXCHANGE TRIP


This report only covers the Exchange Trip, being one of the activities under the Main Objective, covered financially by the ESP3 contribution to the SSC

Purpose: Introduction of Biowaste Forum members to the Danish waste model and to Danish technologies for recycling organic waste. Introduction of new Danish and Indonesian Forum members.

Product: Knowledge and cohesiveness built in a Forum of Danish and Indonesian stakeholders. A base for discussing the development in the waste sector in Indonesia and plan for future SSC activities

Place and timing: Denmark, 26. – 30. November 2018 excluding international travel days

Total cost: DKK350.000 (TBC). Funds were provided for food, accommodation, international and local transport and visa arrangements for 20 participants

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KEY POINTS FROM EACH SITE VISIT


State of Green

The visit and initial dialogue in the House of Green included presentations from State of Green, DAKOFA and Danish EPA. For some participants this was perceived as the initial “contact” with Danish policies on waste management and environment in general. Strong inquiries regarding industry involvement in the SWM implementation, historical background of Danish transition, and policy planning processes were raised by the participants here

Amager Bakke

Participants addressed strongly the incineration plant which is also meant to function as a public space versus the huge potential costs in CapEx and OpEx. Participants from SMI inquired in detail regarding the business case of Amager Bakke, where many of participants also asked deeper into the economic case during the visit

Vermlandsgade Genbrugsstation

Participants saw the operation that resembles the Indonesian version of waste banks. However, the visit was put in perspective by the participants and especially the informal sector in SWM was discussed. A similar system such as the Danish Genbrugsstation may give the informal sector a free ride. However, with adjustments various aspects of a Genbrugsstation can be used to consider upgrading waste banks. Especially the business case would need alteration

Dansk Retursystem A/S

The overall delegation took many lessons learned during this visit. KLHK briefly mentions the urgency of bringing the concept into implementation back home. Some areas that were raised surrounding the business modality that covers, inter alia, actors deciding the deposited goods, monitoring system, and economic mechanism. Additional note: Lombok is keen to invite DRS experts and/or investors to Lombok to introduce the modality and could be used as a potential pilot-island for KLHK

The City of Copenhagen

Participants from Indonesian municipalities raised issues such as national and local targets similar to the Indonesian process of JAKSTRANAS/-DAS, mismatched implementation of recycling targets versus the capacity of Amager Bakke, and the rationale of recycling diapers rather than to incinerate them. The whole concept of strong municipal strategizing and planning was emphasized and made relevant to an Indonesian contex

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KEY POINTS FROM EACH SITE VISIT


Technical University of Denmark

Participants learned that the disconnection between academics and policy-maker may have to involve more openness and a higher degree of trust between the actors and media. Some upcoming research topics and potential products on organic waste and Circular Economy were introduced by the scientists

Aikan A/S

Strong inquiries were raised regarding the economic case of the plant, including also the technical processing of the composting in the plant. The used area in the plant was also an advantage according to municipalities as they struggle to secure lands that can be used for similar plans in Indonesia. Aikan utilizes a simple and robust treatment method, which in many aspects would be easy in an Indonesian context

Bigadan Solrød Biogas

Bigadan’s model of treatment introduces a strong collaboration between industry and research world. Strong discussion on the economic model by delegates from SMI (e.g. pricing and gate fee information) and on the biological process by delegate from BPPT

AffaldPlus

Visit to AffaldPlus gives a perspective of a PPP in Denmark that is different than in Indonesia. Delegates also learned that Danish municipal-owned companies deploy very different business models than in Indonesia and may be interested to investigate further to adapt the modality. The concept of multiple municipalities as owners generated a good debate among participants

Gemidan Ecogi

Visit to Gemidan was predominantly to learn about the company’s model that also interests some participants due the small area needed and the intake of the feedstock that can be rather mixed with impurities other than organics

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KEY POINTS FROM EACH SITE VISIT


Advance NonWoven A/S / Convert A/S

Advance NonWoven plant introduced the possibility of recycled biomass (hempfibres, seaweed, etc.) into mats, insulation materials, various boards for building material and (design-)furniture. Participants are particularly interested in the possibility of turning Indonesia’s large-scale of palm oil residue into similar products. Initial investment and sustainability of the feedstock were part of the strong issues during the visit

Billund BioRefinery

Billund plant offers the more in-depth model of the Danish PPP in an even more unique model, consortium of 4 companies constituting wastewater, solid waste, bioenergy and drinking water, respectively. The plant offers also comprehensive management of both wastewater and solid waste in municipal level. Participants tried to absorb how the PPP model in Denmark could be adjusted into the Indonesian context. Additional note: Jambi city is highly interested in the treatment technology and model. The Krüger/Veolia technology in which wastewater and organic, municipal solid waste is mixed to have the most efficient energy potential was also briefly presented

Terminalen for affaldssug & Odense Waste Management

Unique and advanced management of SWM collection and transport through the suction method into the city centre. Strong points from the participants mainly revolve around how the politicians in Odense in particular and Denmark in general have been carefully driving the environmental trajectory that leads to many innovations such as this facility. Afterwards, Odense Waste Management presented their model to the participants

Discussion in the Indonesian-Danish Biowaste stakeholder Forum

Odense Waste Management kindly offered their facilities for the continued discussion in the Biowaste Forum. Forum discussion touched upon key opportunities and challenges for development of the Indonesian waste sector, participants asking themselves “why is not more organic waste treated in Indonesia?” This question was discussed form an institutional, financial and technological perspective.

All 18 Indonesian and 8 Danish discussants are interested in continuing to be members of the Forum, while 8 Indonesian and 3 Danish discussants have expressed interest to taking a secretarial role in the Forum.

Many of the Danish site visit hosts joined the Forum discussion and 4 of them had previously been to Indonesia for the Launch of the Forum on 26 October. Hence, many participants met each other again for the 2nd or 3rd time and have established stronger links to exchange knowledge and business models on management and treatment of organic waste.

Direct questions on prices and requirements for various technology options showed Indonesian interest in implementing Danish waste solutions in an Indonesian context. Separate minutes of the discussion forum is in the annex to this report.

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OUTCOMES AND WRAP-UP POINTS FROM INDONESIAN PARTICIPANTS


Indonesian participants have been asked to elaborate some learning points that could be strong cases to be discussed in Indonesian context. Several points that stand out, such as:

  • Danish regulation comprises not only national and municipal level, but also largely driven by the EU directives as a driver
  • Dialogue and openness including communication lines in Denmark are very open and progressive. It is one of the key roles to move forward
  • Specific interest was shown on the coordination between government and non-government partners. Especially on various PPP constellations and publicly owned/privately operated utilities. Different terms of PPP between Indonesia and Denmark, whereby Indonesian model of PPP has been strongly established to lure in private investments, making the private investments as the most relied source of funding for heavy infrastructure
  • Researchers in Denmark have started to view waste as a “2nd generation of products and raw materials”
  • Participants from Indonesian municipalities view that many of Danish solutions – both institutional and technological - can be applied in Indonesia. More investigation is needed to adjust the land needed and the operational mechanism in Indonesian context
  • Several times it was discussed to what extent Danish experiences within source separation of waste may be transferred or adjusted to an Indonesian context
  • Several meetings were held over the week between staff from Danish EPA and KLHK involved in the SSC partnership in order to plan for activities in 2019 and beyond

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OTHER RESULTS FROM THE WEEK


Exposing medium and high-level stakeholders from the Indonesian waste sector to various institutional, financial and technology models used in the Danish waste sector.

Indonesian Director General of Waste reported the Danish EPR system – Dansk Retursystem – to the Indonesian Minister of Environment and Forestry immediately after returning to Indonesia.

Indonesian Director General of Waste gave statements to articles in KOMPAS referring to inspiration from Denmark’s EPR system for plastic bottles and EPR in relation to the current Roadmap for EPR and subsequent regulation on EPR currently being developed in Indonesia.

Indonesian Director General tasked Deputy Director for Products and Packaging to seek inspiration from Denmark to the current drafting of EPR regulation.

Meetings with Deputy Director for Products and Packaging to plan 2019 activities in the Indonesian-Danish SSC partnership.

Rich sharing of opportunities among participants in the Exchange Trip on various issues of organic waste management.

New personal contacts in various Indonesian government offices: Coordinating Ministry of Economic Affairs, Fiscal Policy Agency, 4 different City Councils (Jakarta, Depok, Jambi and Banjarmasin), Lombok Investment Agency, Ministry of Energy and Mineral Resources, Pupuk Indonesia as well as in research institution of BPPT and commercial companies.

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