PT. Jakpro is Committed to Finish ITF Project

PT. Jakarta Propertindo (Jakpro) emphasized that Intermediate Treatment Facility (ITF) or Intermediate Waste Management Facility (FPSA) are not only investment, but also assignment from government.

ITF construction is not just an investment project, but assignment that must be fulfilled

Jakpro's Business Development Director, Arie Setianto mentioned, problem related to foreign power generation company withdrawal from strategic regional project will not change anything because Jakpro has committed to continue this project.

"ITF construction is not just an investment project, but assignment that must be fulfilled," he asserted, Wednesday (6/30).

Jakpro will Build New ITF to Treat Waste in West Jakarta

According to him, Jakpro's work is in line with Jakarta Government's work plans and wishes in building waste management sites in four locations. Two locations were assigned to PT. Jakpro, while the other two by Perumda Pembangunan Sarana Jaya.

He explained that two projects which carried out by PT. Jakpro are ITF Sunter that will be used to treat waste from North Jakarta, Central Jakarta, and East Jakarta. While FPSA will treat waste from West Jakarta.

The withdrawal of foreign company, Fortum Power Heat and Oy, couldn't stop ITF and FPSA projects because environmentally friendly waste treatment facilities are currently needed by Jakarta Province. 

Moreover, Bantar Gebang Integrated Waste Management Site (TPST) was designed to be used for only 30 years and its maximum use is in this one to two years.

"That's why it is necessary for Jakarta to have waste management system," he stated.

According to him, the Finnish power plant company withdrawal took into account the COVID-19 pandemic situation in early 2020, where all business entities, including Jakpro, reviewed existing work plans, including investment.

"Due to pandemic, our partner did review the project and came to conclusion that they would prioritize their investment. Unfortunately, investment in Indonesia is not their priority," he conveyed.

PT. Jakpro, he added, continued to advance by taking over the shares owned by Fortum in joint venture company of PT. Jakarta Solusi Lestari, and now still continuing the project construction until now. After taking Fortum shares, Jakpro continued to have intense discussion with Jakarta Government to obtain funding up to $340 million USD.

"The project continues to this day, although its physical form has not yet been seen, other aspects have been fulfilled. Together with Jakarta Government, we are focusing on financial institutions that have potential and are interested in funding Sunter ITF," he said.

He hopes PT. Japro will get commitment and Indicative Terms Sheet in these few months, since it can show estimated risk appetite from potential lenders in ITF project which later will be used for funding.

"If everything goes according to plan, we hope we can get financial closure at least in the fourth quarter of this year. Then in early 2022, we will be able to start the construction phase," he conveyed.

Situation regarding FPSA in the west is different from ITF project. Challenges in ITF project will improve processing FPSA project in the future. For example by increasing number of samples or studies related to waste and depth of study from technical, legal, and financial aspects.

"If it is according to plan, all studies can be completed in September 2021 or end of fourth quarter of 2021 and then enter the technical and funding stages.

"Hopefully in mid 2022, its technical aspect, design aspect, and funding schemes can be also completed. Thus we can immediately start the construction phase," he closed.