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Jakarta guarantees deal with Finnish firm

Acting Jakarta governor Sumarsono has vowed that the Jakarta administration’s cooperation agreement with Finnish energy firm Fortum will remain intact despite a recent Supreme Court ruling revoking a relevant presidential regulation

Corry Elyda (The Jakarta Post)
Jakarta
Tue, January 24, 2017

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Jakarta guarantees deal with Finnish firm

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cting Jakarta governor Sumarsono has vowed that the Jakarta administration’s cooperation agreement with Finnish energy firm Fortum will remain intact despite a recent Supreme Court ruling revoking a relevant presidential regulation.

Sumarsono said the central government should be able to issue another regulation to serve as the legal basis for building waste disposal facilities that would use incinerators to be built and operated by Fortum.

“We have signed the agreement. Despite the regulation having been revoked, the President can issue a new regulation,” he said.

The city administration, through city-owned company, PT Jakarta Propertindo (Jakpro), signed a cooperation agreement with Fortum to build and operate the Intermediate Treatment Facility (ITF) project.

The Supreme Court revoked Presidential Regulation (Perpres) No. 18/2016 on the acceleration of the development of waste-fueled power plants or incinerators in a ruling dated Nov. 2 last year.

The ruling was demanded by several civic groups, including the Indonesian Forum for Environment (Walhi) and the Indonesian Center for Environmental Law (ICEL), on health and environmental concerns.

Experts have raised concerns that exhaust gases from the incinerators would contain hazardous substances, including dioxins and furans.

However, the city administration considers the ITF to be the best project to help ease the burden imposed on the Bantar Gebang landfill, which currently receives 7,000 tons of garbage from Jakarta per day.

The city also hopes the project decreases the Rp 400 billion (US$30 million) annual cost of handling the garbage at Bantar Gebang, where the waste is barely treated.

After being halted in 2011, Jakpro kicked off its ITF first project on a 3.2-hectare government-owned plot of land. The project is intended to burn 2,000 to 2,200 metric tons of garbage daily. Besides disposing of the waste, Jakpro claimed the project, estimated to cost Rp 3 trillion, would produce 40 megawatts of electricity per day.

Jakpro president director Satya Heragandhi said he was aware of the court’s decision but did not know of the details. He added that his company had not been summoned by the Supreme Court to give opinions on the matter.

“Generally, we will follow all the rules and regulations,” he said. “However, there will be no problem.”

He said the project would continue, as the invalidated Perpres was not its main legal basis. “We will proceed with our project based on Gubernatorial Regulation No. 50/2016 on ITF.”

Satya said despite the ruling, the garbage problem in Jakarta should be tackled. “I believe the central government will provide the best solution,” he said.

Regarding the environmental concerns, Satya said incinerators had been used in many countries with no issues.

“I’m wondering why it’s become an issue in Indonesia,” he said.

He said burning garbage without proper treatment would indeed be dangerous, but it would be safe if the company used advanced technology.

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