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Adaro Tirta allocates Rp 3t to expand water project
Adaro Energy’s subsidiary in the water sector PT Adaro Tirta Mandiri will allocate investments of up to Rp 3 trillion (US$213 million) to build drinking water treatment systems (SPAMs) in Indonesia as part of its expansion in the provision of clean water in the country
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span>Adaro Energy’s subsidiary in the water sector PT Adaro Tirta Mandiri will allocate investments of up to Rp 3 trillion (US$213 million) to build drinking water treatment systems (SPAMs) in Indonesia as part of its expansion in the provision of clean water in the country.
Adaro Tirta Mandiri president director Wito Krisnahadi said the company was interested in taking part in the development of drinking water treatment systems as it was in line with its philosophy of sustainable business operations.
“There may be other businesses out there that are more profitable. However, we are interested in sustainable projects such as water treatment because they will have a greater impact on the public,” Wito said on the sidelines of the 2019 West Java Investment Summit on Oct. 18 in Bandung, West Java.
He said the company planned to increase its clean water production capacity by 2,000 liters per second this year by building new water treatment plants in some parts of the country. “We hope within four to five years from now, we can increase the production capacity by 4,000 liters per second,” he added.
Wito said that at present Adaro Tirta Mandiri was developing a number of drinking water treatment plants in Dumai, Riau, East Waringin regency in Central Kalimantan and Gresik, East Java.
During the summit, the company signed a memorandum of understanding (MoU) on the development of the drinking water treatment system with its business partners including PT Tirta Gemah Ripah, state-owned construction company PT Adhi Karya, PT Manila Water Indonesia and publicly listed energy provider company PT Rukun Raharja.
“We’ve been successful in Vietnam and Thailand; now we hope we can do something for Indonesia. We’ve been [in the country] for almost four years, during which time we’ve been actively bidding for various water development projects,” said Manila Water Indonesia president director Antonio B. Capati
PT Tirta Gemah Ripah president director Asep Winara said under the MoU, his company, Adaro Tirta and other partners agreed not only on the development of a single water treatment plant but several others which would be built in the province.
The West Java administration has previously collaborated with the private sector to develop two water treatment plants: Jatigede SPAM in Sumedang regency and Bandung Raya SPAM.
The administration estimated that the investment in the two projects reached Rp 2.3 trillion. The projects were expected to help fulfill public need for drinking water in Cirebon, Majalengka, Sumedang and Indramayu regencies.
The administration also estimated that the price of the water from the two projects would range between Rp 2,100 and Rp 2,450 per cubic meter throughout the first year, with a total revenue of up to Rp 2.3 trillion in the first two years.
Wito said Adaro Tirta Mandiri was still in the middle of a negotiation with the West Java administration regarding the new Jatigede SPAM project.
“The technology is quite conventional. We have to pay extra attention to the project’s political will, assessing it from various standpoints, including the inherent risks considering the fact that the water sector has been decentralized, save for the government’s public private partnership [PPP] programs,” he said. (rfa)
