PPP Final Project

1. The conditionof waste managementin some citiesin Indonesiaare quite concerning.Thiscondition
is worsened by the TPA’s inadequate infrastructures and facilities such as inadequate disposal
installation/gasventilation,flysprays,buffergardensand drainage.Hence,the TPA isprone tofire in
the dryseasonbutisfilledwithfliesintherainyseason. Some TPAisnot equippedwithgoodcondition
of excavator units or sometimes its lack of maintenance. As a solution, the Local Government can
offered waste management to investors through the Public Private Partnership (PPP) scheme.
Presidential Regulation (Perpres) No. 56/2011 and Perpres No. 13/2010 which amends Perpres No.
67/2005 emphasizes that Local Governments could establishcooperation with the private sector in
the Provision of Waste Facility.
Partnershipwiththe private sectorisa stepthat can be taken inorder to coverthe limitationsof the
regional/municipal government in providing public service in the waste management sector. Those
limitationsdonotonlycoverbudgetconstraints,butitalsoincludesmanpower,skill,experience,until
limitations in waste processing technologies.
All PPP activities should start from a pre-feasibility study with a purpose to assess the feasibilityof
projectswhichwill be executed,eitherthe feasibilityof investment,technologyorrelatedaspectsin
the future. The pre-feasibility study could be conducted by the local government or private sector.
The results of the pre-feasibility study will further be assessed by a team competent in the related
sector. Once completed, the project will be tendered.
There are two types of fees that must be prepared in terms of waste management. These include
investment costs (land, infrastructure) and maintenance costs (collection, transportation and
processing).Afterthefeasibilitystudyhasbeenevaluated,itcouldbedeterminedwhetherthe private
sector will implement both projects (investment and maintenance) or a part of the project will be
implementedbythe local government.Thiswill furtherbe preparedinthe analysisof the PPPproject
that will be implemented.
Bappenashasidentifiedseveral commonissuesinPPPinthe urbanwaste sector.Amongothersisthe
lack of certainand complete regulationsinsanitationandwaste management.Furthermore,thereis
lackof masterplanforurbanwaste management;lackof participationfromthe privatesectorandthe
widercommunity;andlackof implementationof 3R(reduce,reuse,recycle),andalsopoormanagerial
skills of the TPA manager in each region.
So, before we think about PPP for waste management, we have to solve those problems.