Modelling of operational costs (tipping fees) and incentives to improve solid waste management services in Indonesia

Solid waste management is needed by each region as a response to population growth. Nevertheless, there are still many areas that have not been able to provide ideal facilities for good solid waste management. One solution that can be done is to create a solid waste treatment model that is suitable to be applied in Indonesia. By benchmarking in other countries, doing mathematical calculations using life cycle cost analysis, and validating experts. The step resulted in a suitable model applied in Indonesia, namely Waste to Energy with a financing scheme of 60% for the government and 40% for the private sector, an internal rate of return (IRR) of 33.11% and an assumed repayment period of 5 years 122 days.


Introduction
According to Indonesian regulation on solid waste management, solid waste problems are a national problem that must be carried out thoroughly from the initial process to the final process that is influenced by various factors and the government has the task to ensure the implementation of good solid waste management with financing and incentives, whether originating from a state budget or a regional budget [1]. There are several factors that cause solid waste problems as national issues including an increase in uneven population growth, gross domestic product growth (GDP), and a population consumption pattern that causes Increased volume, diversity of types, and characteristics of solid waste itself [2]. The relevant ministry stated that the national solid waste amount reaches 175.000 tonnes per day and if calculated annually to 64 million tonnes per year with the presentation of and characteristics of solid waste of 50% organic, 15% plastic, 10% paper, and 25% other solid waste [3].
State leaders undertake an agreement to jointly address the world's problems relating to poverty, gaps, and the environment in order to ensure sustainable consumption and production patterns by reducing Waste production through prevention, reduction, reuse [4]. According to the relevant ministry, there are several provinces that have not done budget calculations relating to solid waste and the use of national budgets for solid waste issues of only 1.1%, so for facilities and infrastructures and management units has not been well facilitated [5]. Indonesia has a solid waste with a lot of amount and potential when managed properly [6]. Therefore, the government needs to do a scheme of cooperation with the private sector to tackle this national problem, so it does not impact the losses in the later days [7].
Identify of problems is there must be a reference to the cost of solid waste management in order to continue to serve the needs of the community broadly and thoroughly. In addition, community participation is needed in solid waste management efforts ranging from the selection of solid waste,

Research methodology
This research uses a benchmarking method that can be defined as a benchmark for measuring something, from a quality aspect or a value that is both of the same size [9]. As a follow up to the benchmarking activities, in this research conducted a mathematical calculation of Life Cycle Cost Analysis (LCCA) which is an economic assessment of an object, system or facility, considering all the significant cost of ownership of economic life, which is stated to be equal to the dollar/euro [10]. If you have done mathematical calculations on Life Cycle Cost Analysis (LCCA), then in the next process is done by using expert validation so as to produce a recommendation of solid waste management fee [11].

Results
This benchmarking activity is done in countries that are able to answer the problem of solid waste such as Sweden [12], Singapore [13], Austria [14], Japan [15], and South Korea [16]. These countries are chosen to see how solid waste is produced and how to process solid waste done, so it can be applied and implemented in Indonesia which in this case DKI Jakarta as a pilot project Model. Management of solid waste of the region independently prioritizes the principle that solid waste management must be managed in solid waste sources. The concept of solid waste management area offered is the integrated infrastructure concept that we named "JAWARA" (Jakarta Waste Management Area). In this area there is a waste separation system (including ecojos junior/tomra), plastic solid waste management (pyrolysis machine converting waste), paper solid waste management (paper recycle system), organic solid waste management (bio methanisation plan), solid waste combustion (incinirator), and recycle creative hub.        Because of the large amount of investment needed for this project, it is necessary to have a good cooperation scheme between the Government and the business entity. In the implementation of investment in this garbage processing system, it is advisable to apply the scheme of government cooperation and business entity (KPBU) or commonly known as the Public Private Partnership (PPP) scheme with the Build-Operate-Transfer (BOT) system. Based on the table above can be known that the financing scheme that is done will be better when using the share of government 60% and private share 40% then will get WACC 13.00%, IRR 33.11% with the estimated Payback Period in the 5th year More than 122 days and has an RPC (Repayment Capacity) of 423% assuming the loan can be paid to third parties with a ratio of 423%.

Conclusion
The modelling of operational costs and incentives to improve solid waste management in Indonesia is the benchmarking activity is done in countries that are able to answer the problem of solid waste such as Sweden, Singapore, Austria, Japan, and South Korea. These countries are chosen to see how solid waste is produced and how to process solid waste done, so it can be applied and implemented in Indonesia which in this case DKI Jakarta as a pilot project model. The benchmarking results obtained are a waste to energy system that is very likely to be applied in Indonesia with diverse solid waste characteristics. Investment feasibility modeling from operating costs (tipping fee) and incentives to improve solid waste management in Indonesia are based on the table above can be known that the financing scheme that is done will be better when using the share of government 60% and private share 40% then will get WACC 13.00%, IRR 33.11% with the estimated Payback Period in the 5 year more than 122 days and has an RPC (Repayment Capacity) of 423% assuming the loan can be paid to third parties with a ratio of 423%.
Collaboration between parties both government and private is a part that needs attention in this regard. how to seek change in the community as a source of solid waste will determine how solid waste treatment can take place as a whole. Socialization and education on the importance of treating solid waste from sources must continue to be pursued with a variety of media, so that it is well embedded that good management of solid waste starts from the source.