Minister of Environment Hanif Faisol Nurofiq said that TPA closure and the transformation towards an integrated waste management system not only provide environmental benefits but also offer significant economic opportunities.
"These opportunities include developing the material recycling industry, compost and organic fertilizer production, waste-based power plants, alternative fuel production, valuable material recovery systems, and waste management consulting and technology services," he conveyed in a statement on Sunday.
He informed the study conducted with the Ministry of Industry and the National Development Planning Agency (Bappenas) identified seven potential business sectors with a total economic value of Rp127.5 trillion per year with the development potentials through the transformation of the national waste management system.
Based on the results of the economic study, seven potential business sectors identified include the Material Recycling Industry with a potential economic value of Rp42.3 trillion (US$2,4 billion) per year including plastic, paper, metal, and glass recycling, and Compost and Organic Fertilizer Production with a potential economic value of Rp18.7 trillion (US$1 billion) per year.
There is also the potential from waste to energy with a potential economic value of Rp26.5 trillion (US$1,5 billion) per year, Refuse-Derived Fuel (RDF) Production with a potential economic value of Rp13.8 trillion (US$815 million) per year, and the Urban Mining System for the recovery of precious metals with a potential economic value of Rp9.7 trillion (US$572 million) per year.
Followed by the Sharing Economy and Digital Waste Application sectors with a potential economic value of Rp7.2 trillion (US$425 million) per year and Waste Management Consulting and Technology Services with a potential economic value of Rp9.3 trillion (US$549 million) per year.
According to Nurofiq, the study also identified 12 sustainable business models that can be developed by MSMEs, cooperatives, and startups with initial investment requirements ranging from Rp250 million (US$14 thousand) to Rp5 billion (US$295 thousand) and a projected Internal Rate of Return (IRR) ranging from 18-27 percent for a 5-year investment period.
"TPA closure offers opportunities for implementing a circular economy and creating jobs in the environmental sector (green jobs)," the minister remarked.
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Translator: Prisca Triferna, Resinta Sulistiyandari
Editor: Arie Novarina
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