SHARIA SUPPLY-VALUE CHAIN MANAGEMENT
IN COMMUNITY BASED WASTE TO ENERGY FOR DISTRIBUTED POWER GENERATION
SHARIA SUPPLY-VALUE CHAIN MANAGEMENT
IN COMMUNITY BASED WASTE TO ENERGY FOR DISTRIBUTED POWER GENERATION


Comestoarra

INTRODUCTION


All stakeholders in Indonesia might highlight the current issues, such as the waste management problem, lack of ratio electrification in east Indonesia, and the target of 23% of Renewable Energy implementation by 2025. In July 2019, the president of Indonesia was disappointed with the lack of inter-ministry coordination to solve the waste management problems by installing the waste power plant (PLTSa) in 12 cities in Indonesia. The ratio electrification, especially in East Indonesia, has impacted energy availability, energy efficiency, energy security, and energy sustainability. Therefore, the Java-Bali centrist related to the development of electricity infrastructures has made the inequality in east Indonesia. On the other hand, even though the Indonesian government has taken steps to try to solve energy distribution problem by building power plants throughout the country with the total of 35.000 MW by 2019 and 80.000 MW by 2025, it is difficult to implement those kinds of high capacity of power plants in thousands rural and remote areas in Indonesia. The grid connections and the development of transmission lines are the main problems to transmit the electricity towards household and industry in the rural area and remote area, especially in East Indonesia. Moreover, the distribution of large volumes of fuel and logistics has related to the operational activities problem, which impacted the time delivery, fuel stock, and also cost. Considering that the electricity sector is fundamental in triggering economic growth, the government has started to change the paradigm to install the centralized and high capacity power plant to decentralized and small scale scattered power plant. Therefore the distributed power generation has to be the national program in order to achieve the ratio electrification target as well as the strategy to obtain the target of 100 per cent electrification ratio. For the purpose of reliability, cost-efficiency, sustainability, environmentally friendly, the government has the target of 23 per cent of Renewable Energy by 2025. Due to acquire those targets above, the government need to set up the community-based waste to energy by empowering the local community to produce waste pellets as the alternative energy to substitute fossil fuel consumption.

As the waste (domestic and biomass) is very potential in Indonesia, furthermore the community-based waste to energy can solve the waste management problems in the big cities, and the product of waste pellets can be utilized as the fuel for diesel engines and steam power plants, which are dominating in Indonesia energy and electricity industry. The waste pellet contains the calories of 3300 – 4500 kcal/kg. The waste pellets, therefore, can be converted to synthetic gas with the gasification process. The synthetic gas can be the substitution of solar fuel for diesel engine, which dominantly installed in remote and rural area of East Indonesia. Additionally, the waste pellets can be mixed up with the coal for steam power plant (co-firing). The community-based waste to energy has become the solution of the intermittency problems in photovoltaic and wind turbine as well as the high investment and its operational cost. Moreover, it can support the government to create the distributed power generation program. In terms of technical aspects, both community-based waste to energy and distributed power generation has already proven. It has become the program of the Ministry of Mineral and Energy Resources, Ministry of Environment and Forestry, and PT PLN (Persero) Group. This project may solve both waste (municipal, forestry, fishery, and farm industries) and energy (heat and electricity) problems in Indonesia. Recognizing that the government have to switch the paradigm of the centralized project into decentralization to solve both waste management and ration electrification ratio problems, creating the Supply-value chain management model is critically needed to ensure the quality, quantity, time delivery, and cost of waste pellets product and its continuity of supply. However, as an archipelago country, which has more than 15.000 islands with 70.000 villages/rural area, it is difficult to realize the program without empowering local community. The challenge needs to be faced is the lack of qualified human resources has become the main issue to maintain daily operational activity in the process of development. Installing the appropriate technology and continuously community development with the social-psychological-cultural approaches has become the solution to spread out the community-based waste to energy for distributed power generation program.

As the country with the highest Moslem community in the world, sharia business system and economic democracy should be implemented in Indonesia. The capitalism in the economy must be changed to the sharia economic system where the community has become the centre economy, and all trading activities must be based on the real transaction (not future and stock exchange). Many developed countries have succeeded to implement the sharia economic system and create a circular economy for their communities and positively impact their countries. It is relevant to Indonesia, and it can be implemented for all economic activities.

OBJECTIVES


Reflecting those situations mentioned above, the supply-value chain management model has to be in line with the sharia business and democratic economic system. The goal of implementing “sharia supply-value chain management” is creating the circular economy. It can be succeeded by empowering and developing local communities to be involved in the energy and electricity industry. Local communities can be a massive producer of waste pellets, provide simple technology, and communally has become the small independent power producer (IPP). In order to achieve those things, local community needs the assistance and guidance from the government and experts to develop the qualified local human resource to enhance the supply and value chain management to secure fuel supply, maintain power plant operations and maintenance, and continuously improving management aspects.

Following the description above, there are three main objectives that need to be stated:

  • Identifying the comprehensive concept of sharia supply-value chain management system from the academic and practical perspective;
  • Creating the model of sharia supply-value chain management system in relation to the community- based waste to energy for distributed power generation;
  • Examining the model of sharia supply-value chain management system in the scope of the pilot project in small villages
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RESEARCH METHODOLOGY


In order to identify and create the model of sharia supply-value chain management system in the community-based waste to energy for distributed power generation program, the qualitative methods using data-driven approach both investigative reporting to obtain the primary data and web scraping to gain the secondary data. The data-driven based with investigative reporting and web scraping will be the tool to capture the phenomena, potential material for waste to energy, the technologies, social-political perspectives, environmental, and economic will be gained for public participation. This tool can be used for social mapping and defined the acceptable technologies and how to develop human resources from the local community as the technician and to optimize the small-medium enterprises to produce several tools needed. In the end, to examine the model of sharia supply-value chain management system, the experimental method is chosen to generate the quantitative data. The expected outcome of the experimental method will assess the model of sharia supply-value chain management system developed, moreover ascertain the standard operational procedure for the commercialization purposes.

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THE JOURNEY OF KLISI IN BETWEEN 2015 - 2019


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WITHIN 4 YEARS, KLISI HAS SUCESSFUL CREATED THE POTENTIAL MARKET IN ELECTRICITY INDUSTRY, WASTE MANAGEMENT INDUSTRY, AND RENEWABLE ENERGY INDUSTRY


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Distributed Power Generation



COMMUTATIVE LAW OF LK: 1.000 X 1 = 1 X 1.000
BASIC PHILOSHOPHY:
Developing 1000 Megawatt of Power Plant in 1 Location = 1
Megawatt of power plant in 1000 locations

            

PROBLEMS IN INDONESIA ELECTRICITY INDUSTRY

As an archipelago country, it is difficult to implement high capacity of power plant, especially in rural area and small islands in East of Indonesia. It is including the huge investment & time consuming for transmission line construction (1); Several issues, which extremely difficult to be solved, such as: Land acquisition, carbon emission, small-medium enterprises involvemet and 100% electrification’s program (2); Indonesia is the 3 rd largest country which has waste management emergency (3); Indonesia has produced 65 million tons a day and only 45% can be properly managed. Meanwhile, the 60% of waste are organic that potential to be converted towards energy (4).

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THE METHODOLOGY OF COMMUNITY BASED WASTE TO ENERGY NAMELY TOSS


TOSS stands for Tempat Olah Sampah Setempat. It is a distributed waste management and waste to energy solution to improve the lack of reliability and maintain the continuity of supply of raw material. The basic concept of TOSS is fermenting all kind of waste on 2x1x1 meter bamboo box with an aerobic process, therefore has produced waste pellets as an energy source with the calory count of 3000 – 4000 kcal/kg. The pellets is equal with the middle-ranked coal, which can be gasified to produce the syntetic gas, which can be feed in into the diesel and gas engine (Bhavanam &Sastry, 2011) and the alternative energy for co-firing on Steam Power Plant (Spath & Mann, 2015).

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SUCCESSFUL PILOT PROJECT IN KLUNGKUNG DISTRICT, BALI
LET’S GO TO ANOTHER EAST INDONESIA REGIONS


VALUE CREATION (TANGIBLE BENEFIT) BY IMPLEMENTING TOSS IN KLUNGKUNG, BALI

LK-TOSS-KLISI has succeessfully implemented in 18 villages and produce the waste pellets with callories of 3300 – 4500 kcal/kg. This pellets therefore has been bought by PT Indonesia Power to substitute the 1-5 percent coal for the purpose of cofiring in steam power plant and to set up the firstly distributed power generation plant. In this case, STT PLN, PT Indonesia Power and the government of Klungkung got three national rewarded from the ministry of education and research, ministry beurocratic reformation, and ministry of environtment and forestry. This by consideration that those three parties has succeeded to develop society and empower community in implementing LK-TOSS-KLISI concept and run its supply and value chain model.

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KLISI


ADDITIONAL REVENUE OF KLISI COMES FROM:

Waste management tipping fee; Sell the economic and valuable non organic waste such as plastic bottle, can, paper, etc (1); Sell the 500 kg pallets/day with the calories of 3300 kcal/kg (2); Socialization, comparative study fee and training for villages (3); Creating waste management and waste to energy seminars (4); Sell Electricity to PLN or Private Sector (On Grid) (5); Training, Workshop, and Certification (6); Advertisment from community Social media (7).

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FUTURE’S TARGET AND HOW NTT COOPERATE WITH KLISI


NTT Communication will be able to develop the telecommunication and communication infrastructure, which can be beneficial for KLISI in the future. For the long-term, the whole concept of KLISI and its waste management & waste to energy process can be franchised as part of the national electricity program with the B2B, B2C, and G2G schemes. And in the future, KLISI can go global and can be implemented in other developing countries.

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PROJECT IN 2019: COFIRING 1-5% RDF WITH COAL ON STEAM POWER PLANT IN NUSA TENGGARA


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PILOT PROJECT IN 2019: REMOTE AREA DISTRIBUTED POWER GENERATION


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PROJECT EXPANSION IN 2020


By implementing the Supply and Value Chain model to solve the Waste management problems and produce the Waste pellets for Waste to energy purposes, therefore all stakeholders from municipalities and renewable power plant developer need to be supported the government program namely “Sumba Iconic Island”.

There are two main problems that could be solved by implementing LK-TOSS- KLISI method. Firstly the Waste management solution from municipalities in big cities and residents in East Java (Surabaya, Madura, Banyuwangi, Tegal, etc), Bali, Nusa Tenggara Barat (Lombok, Sumbawa), and Nusa Tenggara Timur (Flores, Kupang). Secondly, the electricity solution in East Indonesia, which focused on Sumba Island as the government’s pilot project.

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