Two foreign investors postpone trash projects
Two foreign investors postpone trash projects
Ahmad Junaidi, The Jakarta Post, Jakarta
Fearing further terrorist attacks after the Bali bombing
tragedy, two foreign investors have recently postponed their
plans to build garbage processing plants here with a total
investment of US$378 million, an official said on Thursday.
"Yes, we received their letters this week, stating that they
had decided to postpone the projects due to the investment
situation here after Bali bombing. They will review the projects
next March," the city sanitation agency head Selamat Limbong told
reporters after a meeting with City Council Commission D for
development affairs.
However, Selamat said the companies, PT Putra Bakti Mahkota
with its American partner and PT Global Interindo with its
Canadian partner, are still committed to their plan to build the
plants.
Earlier this month, he revealed that PT Putra and PT Global
will start the construction of their plants in Marunda, North
Jakarta and in Tegal Alur, West Jakarta respectively next month.
PT Putra was to process 2,000 tons of garbage per day to make
ethyl alcohol in its 30-hectare plant with an investment of
US$360 million.
PT Global is expected to process 1,000 tons of garbage per day
to make liquid and solid fertilizer in its 4.5-hectare plant with
an investment of US$18 million.
Raw plastic will also be produced as a side product by both
companies. The construction of the plants was earlier planned to
be completed in eight months.
The operation of the two plants is expected to reduce the
city's difficulties in disposing the 6,000 tons of garbage it
produces daily.
The city administration signed a memorandum of understanding
with the two companies in March, this year.
The administration earlier planned to build joint venture
companies with the investors by contributing land, while the
investors would invest money and technology.
The garbage processing costs of the plants will reach Rp
53,000 per ton, compared to the processing costs of the city's
main garbage dump in Bantar Gebang, Bekasi which reaches Rp
60,000 per ton.
The postponement of the construction of the processing plants
might stir fears of another garbage crisis as the city is also
facing a problem with the Bantar Gebang garbage dump.
The Bekasi municipality earlier threatened to close the dump
due to continued environmental damage in the dump and surrounding
areas.
The Bekasi municipality unilaterally closed the dump for a
week in December, last year, causing a garbage crisis in which
tons of garbage could not be transported out of the city.
After promising to pay Rp 14 billion in compensation, the
municipality allowed the city to use the Bantar Gebang dump
again.
Selamat rejected on Thursday the possibility of another
garbage crisis due to the postponement of the construction of the
garbage processing plants.
He said the city would continue its cooperation with a private
company, PT Wira Golfindo, which owned a 25-hectare dump in
Bojong Gede, Bogor, West Jakarta.
The company uses a pressed ball system which processes 3,000
tons of garbage per day into compost fertilizer and it will start
its plant this year.
Selamat also denied a possible closure of the Bantar Gebang
dump, saying that a team which consists of experts from the
University of Indonesia and Empat Lima University (Unisma) Bekasi
is still evaluating the environment at the dump.
"We' re sure that we could still use the dump," he said.