1. Startups

Waste4Change Signs a Waste Management Project Worth IDR 250 billion

Agreed with seven companies including Sinar Mas and Indocement; plans to enter into e-waste, biodiesel waste, and furniture

Startups waste management Waste4Change is intensifying investment cooperation with various parties to encourage technology-based waste management projects. Therefore, Waste4Change announced a waste management partnership with seven companies with an estimated project value of IDR 250 billion.

This collaboration was signed through the signing of an MoU with PT Samudera Indonesia Tbk, PT Alam Bersih Indonesia, PT Indocement Tunggal Prakarsa Tbk, Sinar Mas Land, Basra Corporation, rePurpose Global, and Freepoint Commodities.

"These funds will be used to improve the quality and quantity of waste management in various areas. My hope is that Waste4Change can continue to grow and become the right partner to develop green investment in the waste sector," said Founder and CEO of Waste4Change Mohamad Bijaksana Junerosano in the inauguration of RPM Waste4Change Bekasi 2.0, Wednesday (8/3).

Sano, Junerosano's nickname, said that handling the waste problem requires collaboration and contribution from all parties. Stakeholder those present here are part of the solution to work together to handle waste from upstream to downstream. Therefore, it is necessary to open up as much as possible to greener investment in order to reform the waste sector in Indonesia.

He said the company had made a ten-year plan to explore other potential options in the future. In its 8th year, Waste4Change will monitor the new wave e-waste, which comes from electric vehicle waste, such as batteries, the adoption of which is already starting to be felt.

"Every ten years, we differentiate options. Besides e-waste, we looked at specific waste management, for example furniture, which actually has regulations. We started researching biodiesel waste management together with SinarMas. "Now we are still processing household waste in this 8th year."

Ceremonial Inauguration of RPM Waste4Change Bekasi by Representatives of AC Ventures, Bekasi City Government, and Deputy of the Ministry of Investment / Waste4Change

Not announcing the MoU, on the same occasion, Waste4Change also inaugurated the Waste4Change 2.0 Material Recovery House (RPM) which is equipped with the latest technology: waste sorting machines and the integration of digital technology to monitor and record waste processing flows. Currently Waste4Change has five RPMs spread across Bogor, Bekasi, Sidoarjo, Bali and Bandung.

This innovation is one of the realizations after completing funding Series A from AC Ventures, PT Barito Mitra Investama, and a number of other investors at the end of last year. With new innovations, the RPM location is claimed to be able to reduce waste residue from 65% to 10%. Waste management capacity also increased from 18 tons to 22 tons per day.

The following is a list of Waste4Change's automatic waste sorting machines:

  1. Conveyor to move materials so they are easier to sort (inorganic and hard and fibrous residues)
  2. Gibrig to separate leaf plastic material and organic slurry (for BSF)
  3. Centris for leaf plastic from gibrig goes into centris. Functions as a dryer (dry and organic output that is still attached)
  4. Blower to suck up plastic material output from centrist to training
  5. Plastic shredding machine from training menjadi fluff

"We will continue to add locations and collaborate with various points, including Cilegon, Tangerang, and expand Sidoarjo. Even though these points are small, these points are in line with our Waste4Change target to process 5% of waste in Indonesia, or 10 thousand tons per day. "That figure is the same as the total waste in five big cities."

Green investment

Waste management is included in the green investment priority list set by the Ministry of Finance, with implementation targets blended finance targeting infrastructure development in sectors with numbers multiply effect biggest. It is hoped that this target will be able to improve the quality of life and the adoption of green technology.

Unfortunately, 40% -50% of TPST and TPS3R construction is not maintained and sanitary landfill has returned to being a rubbish dump due to unsustainable financing schemes. Therefore, reforms are needed in waste levies that enable sustainable capital investment and also regulations that ensure investment in waste management infrastructure is more optimal.

Director of Infrastructure Planning, Deputy for Investment Planning, Moris Nuaimi, said that the Ministry of Investment is still perfecting regulations regarding waste investment and this requires careful consideration. On the one hand, green investment opportunities and the readiness of recipient parties to carry out this trust have been well established. Independent initiatives and efforts from the private sector, one of which is Waste4Change, can strengthen funding sources from many streams.

"Moreover, if we know, regional governments and investors are willing to facilitate it. This is an example that can be imitated by other regional governments and other waste management service providers to move more nimbly in exploring more green investments to create a more sustainable Indonesian environment. ," he said.

Green investments in the waste sector can be made to help handle waste. This is done by improving infrastructure or facilities and shifting resources as well as realizing the implementation of a circular economy that is focused on reducing waste generation from the start.

The Global Sustainable Investment Alliance (GSIA) survey in 2021 stated that green investment assets in developing countries have growth potential of up to $30,7 trillion. It will take a total investment of $18 billion in technology, and $22 billion in services between 2017 to 2040 to overcome the challenges of changing practices business-as-usual towards a System Change Scenario for effective waste and recycling management based on the NPAP report.

This figure allows hope to be able to deal with the existing waste problem. The active role of investors and capital owners is very important in directing business people to be more responsive in seeing green business opportunities that are in harmony with nature, one of which is waste.

RPM 2.0 tour together with representatives of the Ministry of Investment / Waste4Change

In fact, according to Systemiq & Delterra data in 2022, 97% of waste funding in Indonesia still relies on door-to-door waste fees (ddoor-to-door fee collection). Meanwhile, more developed countries have abandoned this method and switched to waste fees as taxes and waste fees which are included in utility subscription fees.

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Several things related to waste management support certainly need to be improved, both from a technical and financing perspective. Reducing the activity of burning and burying waste, running TPS 3R and other waste management facilities carefully and sustainably, as well as increasing awareness of the importance of waste levies, are things that can be improved. In this case, equal distribution of facilities is no longer the main problem, but how to ensure that waste management facilities run optimally.

"The waste fee in residential areas is only possible comply The price is Rp. 60 thousand per month, but because the regulations are not met, it is usually offered up to Rp. 25 thousand. I think elite housing in South Jakarta is priced at IDR 3 billion, I think I can afford that kind of fee. But this was not included because it became difficult for us to improve the welfare of informal workers."

To balance the social side with the business side, Waste4Change is now implementing a strategy innovative waste credit and blended financing. Waste credits is an effort to support producers' efforts to recycle more waste in Indonesia. The concept is exactly the same as carbon credits, where carbon dioxide produced from an activity must be paid for by reabsorbing the carbon.

For waste, it can be processed into RDF which is useful as energy in cement manufacturing plants. One of the waste materials that is processed is multilayer plastic (MPL) packaging or often called sachets.

As for blended finance is the strategic use of development finance to mobilize additional finance for sustainable development in developing countries. Blended finance attracting commercial capital towards projects that contribute to sustainable development, while providing returns to investors.

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