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.