Success Stories

Increased Profit through Energy Efficiency in Indonesian Textile Industry

 

A textile company in West Java, Indonesia; has significantly reduced its energy consumption and saved up to USD 170,000 annually in energy costs after having a waste heat recovery (WHR) technology installed. This technology installation is part of a development partnership program, or commonly known as DPP.

 

In Indonesia, the textile industry is one of prioritised industries that generates significant revenues, employs many people (labor intensive), and supplies a huge domestic demand for textile products. Textile industry is also known for its high energy use, in which energy is the main source for company’s expenditure. To maintain its competitiveness, Indonesian textile companies need to implement good energy management system to reduce energy consumption and increase energy efficiency which eventually leads to reduced energy cost. There are various opportunities to increase energy efficiency in textile plants, many of which are cost-effective. However, due to limited information on how to implement energy-efficiency measures, many companies are still not aware on how to increase their energy efficiency. To get such information or even learn about energy efficiency measures is still an issue for many textile companies, especially given the fact that majority of textile plants in Indonesia are small and medium companies (SMEs) and family-owned business. Therefore, it is important to prepare and disseminate the know-how on energy-efficiency technologies and practices to the textile plants.

 

Policy Advice for Environment and Climate Change Program (PAKLIM) in support to the Ministry of Industry has been working together with Brückner Textile Technologies Gmbh & Co. Kg and Thies Gmbh & Co. Kg in a project titled Development Partnership with Private Sector (DPP) since the signing of its cooperation in October 2013. The cooperation is also strongly supported by Indonesian Textile Association (API) and German Engineering Association (VDMA).

 

The project introduced the benefits of energy efficiency solutions particularly in waste – heat recovery (WHR) technologies through technology awareness and capacity building. The DPP supports the willingness and the preparedness of the industry actors to invest in and implement the required technological changes.

 

Through this project, a WHR technology has been installed as a pilot in the first half of 2014 at PT. Coats Rejo, Bogor, West Java. The first installation was directly assisted by Thies Gmbh. A workshop was conducted in November 2014 for capacity building supported by German experts and focused on WHR and micro turbine for the textile industry. Actively participated by Indonesian Government representatives, various textile companies, and API; an overview of energy management and green technology were elaborated, which should help them in selecting better alternatives for energy saving investments.

 

To share the results from the WHR pilot project and disseminate the lessons learned to other textile companies, PAKLIM together with MoI and API held a Dissemination Event on 11th March 2015 at Bandung.  More than 40 participants including representatives from 15 textile industries, Ministry of Industry, Ministry of Environment and Forestry, Ministry of Energy and Mineral Resources, API, and the textile research center (BBT) participated in this event. In this occasion, two private sector partners from Germany (Brückner Textile Technologies and Thies) shared not only the latest textile technology from their company, but also market expertise in energy efficiency solutions using WHR and micro turbine.


Thies GmbH & Co. KG
, whose Waste Heat Recovery technology was installed at PT Coats Rejo, presented the result of the commission. PT. Coats Rejo, which manufactures threads for domestic demand and export, was selected as the pilot installation, based on the company’s willingness and priority to invest in modernizing its equipment to cut energy costs and maintain its good environmental standards.  Its plant uses a combination of electricity and steam from natural gas for its energy sources. WHR enables the heat to be recovered from hot waste streams to pre-heat incoming fresh water for steam. The data produced from the operation of the WHR shows a significant result: energy saving of up to 1,091 kWh/h. By assuming that electrical energy costs US$ 0.10/hour and thermal energy costs in Indonesia is around US$ 0.008/hour, the monetary saving is around US$ 7.3/hour. Thus, PT. Coats Rejo is now able to save up to 172,265 USD/year from reduced energy costs with payback investment period of only 7 months.

 

 

Not only enabling PT. Coats Rejo to reduce its energy costs, WHR technology has also succeeded in cutting down the plant’s CO2 emission by 709 kg every hour. Additionally, it contributes in maintaining biodiversity by releasing much cooler waste water into the environment, thus less harm for the environment. The key component of a WHR system is the energy interchange that controls the effluent and fresh cold water. A simple concept with remarkable impact, which can reduce further damage on the environment, reduce energy cost, and at the same time improve the water management system. That is why WHR is also called as a “green technology”. This is the kind of investment that not only makes textile companies more competitive by reducing its energy costs, but also helps the Indonesian government fulfilling its goals in reducing  greenhouse gas (GHG) emission in 2020 by 26% compared to business as usual scenario independently or 41% with international support.

 

The DPP textile initiative is in line with the Indonesian government program launched in 2007 to revitalize the textile industry. The program aims to help the textile industry by giving incentives and financing mechanisms to qualified plants to replace the old machinery with modern, energy efficient and environmentally friendly machines and equipment. “In 2015, the Ministry of Industry hopes that the program could stimulate investment with a total of IDR 1 trillion in more energy-efficient types of machinery", said Ibu Elis Masitoh, the representative from Directorate Textile and Multifarious Industry at the Ministry of Industry, during her presentation in the Dissemination Event. “This year we are focusing on knit and weaving plants. We have streamlined our procedure, now it takes only one week to get investment reimbursed after application accepted”, she explained, which received enthusiastic responses from the participating industry. One such textile company that has successfully accessed the program was PT Trisulatex, which has replaced a host of its machineries under the program, i.e. : weaving machine, knitting machine, texturizing machine, and finishing machine.

 

The Dissemination Event achieved yet another objective by facilitating discussion forum and network meeting between the industry and government of Indonesia which is necessary for updating MoI’s technology database to ensure that they are in accordance with the industry and market demand. Updated MoI database on product specification and price also plays an important role in the success of revitalization program.

 

Although still in its early stage, it is evident that the DPP textile project is already delivering results. As emphasized by Dr. Markus Francke who acts as the Team Leader of PAKLIM Work Area Industry in his welcome remarks during the event: “Government needs to work together with the private sectors to achieve GHG emission target, while at the same time, when private sectors invest in energy-efficient technology, not only sustainability will be achieved, but also the financial profits gained.”

 

 

 

 

Portable Biodigester Turns Waste into Clean Fuel for Poor Neighborhood

A novel yet effective new approach on waste management for densely populated kampung (inner-city housings) was introduced in Yogyakarta through the application of portable biodigester. A biodigester or digester is an airtight chamber in which anaerobic digestion of manure, biosolids, food waste, other organic wastewater streams or a combination of these feedstocks occurs. This process produces commodities such as biogas (a blend of methane and carbon dioxide), animal bedding, and fertilizer. The produced biogas can be used as fuel for electricity generators.

Irfan Susilo, the head of Yogyakarta Environmental Agency (BLH), officially launched the operation of portable biodigester facilities among the residents of Kampung Gemblekan Atas Suryatmajan, Danurejan Sub-District, Yogyakarta on Monday, 23 March 2015. This portable biodigester facility for Kampung residents is a collaboration project between BLH Yogyakarta and Policy Advice for Environment and Climate Change (PAKLIM) Programme. This ceremony event was well-attended by local parliament representatives, Camat (head of sub-district), Lurah (head of village), Polsek and Koramil (sub-district police), and community leaders as well as women groups. The facility had been installed since February 2015 and already started to produce methane gas a week after. The collected produced gases were able to be used in the early March 2015. Portable Biodigester is anaerobic waste treatment facility that produced methane gases and liquid fertilizer. Besides aiming to reduce waste, the application of this facility is also to provide renewable and accessible energy source for poor household and support urban farming.

During his remarks, Irfan Susilo, Head of BLH Yogyakarta praised the potential of portable biodigester “This is a very appropriate technology for use in kampung area and is a good alternative for waste management in Yogyakarta which is dominated by dense populated kampung.” He added, “City waste management services does not have the capacity to cover all kampung area due to narrow alleys and limited space for waste facilities. This leads to disposal of waste into the river or surrounding area by the residents”.

“I have discussed this problem with Pak Willi to find some practical solution and this seemed like a promising technology. I will replicate the program in other kampung if the implementation in this kampung Gemblekan Atas is successful” he added. Hans-Willi Hennig, or familiarly called as pak Willi is a German development Advisor assigned by PAKLIM from April 2013 to February 2015 to support BLH Yogyakarta in river basin and waste water management. During the assignment, he assessed various wastewater technologies and their potential for implementation in Yogyakarta. BioMethaGreen, a community-based organic waste management concept first developed by DR. Muhammad Fatah Wiyatna from the University of Pajajaran in Bandung, was among his first priority leading to the implementation of portable biodigester in Yogya.

Similar encouraging statement was also offered by the Head of Commission C DPRD (local parliament) Yogyakarta, Christiana Agustiani, who further added that it is important for the community to manage and maintain the facility in good condition.

After the launching ceremony, the invited guests visited the facility where Moh. Nurhadi, PAKLIM Work Area 1 manager, explained in details about the facility’s components and functions. The facility has the capacity to treat 20 kgs organic waste per day and produce in average 80 litres of methane gases. The organic waste is collected and fed into the chambers installed at the facility. If necessary, some additional water can be added in to make the digestion process runs faster. The waste will then be digested by bacteria which produced methane gas to be collected in another chamber connected to the stove. Ibu Estu Handayani, a resident of the area, who has benefited from the portable facility confirmed that she can use the gas for cooking in average 2 hours a day. “After this facility was installed, our neighbourhood became cleaner and healthy for our children to play in. We also saved some money from cutting down gas (LPG) expenses, and we feel more secure as biogas is very safe”, she said with a big smile on her face.    

 

Corporate Social Responsibility as Bridge to Sustainable Business

Hundreds of national and multinational business representatives, government officials, academics and  donor organizations openly discussed the challenges and successes of the implementation of Corporate Social Responsibility (CSR) in a rare dialogue forum.

For the second time in successive years, the Indonesian Ministry of Environment and Forestry, Ministry of Industry, Indonesian Chamber of Commerce and Industry (KADIN Indonesia) and the Indonesia Business Council for Sustainable Development (IBCSD) in cooperation with GIZ Indonesia hosted “Sustainable Business Dialogue” on 19th November 2014 in Jakarta. This followed the successful first Sustainable Business Dialogue held in Jakarta on 2013 themed “Reconciling Corporate Success with the Responsibility for Future Generations”. More than  150 Indonesian and international business representatives participated in the one-day conference to discuss the advantages of sustainability practices within business operations as well as opportunities from Corporate Social Responsibility (CSR).

More often, CSR is not one of the top priorities of Indonesian business leaders. Yet, other business leaders who already implemented CSR feel that they need more governmental support, stronger media presence and higher acceptance not only by their peers, but also by the society at large. The 2nd SBD created a dialogue forum showcasing companies that have successfully invested in and implemented CSR activities. The forum aimed to strengthen the broad recent understanding of CSR and cover the multiple facets of this corporate obligation and strategy.

Despite the existing policy for mandatory CSR practices, the regulation is not always well understood and socialized nor enforced appropriately. For example, in 2012, the Ministry of Environment defined 7 CSR areas for environment: Cleaner Production, Conservation of Energy and Resources, Eco-Office, 3R, Renewable Energy, Climate Change Adaptation, and Environmental Education. Most companies are yet to implement these CSR areas due to lack of promotion and enforcement. This business forum addressed those concerns by creating a medium for Indonesian business leaders to discuss the issues while highlighting the successes of several top companies implementing their CSR focusing on preserving the environment while also gaining more profit through sustainable business.

“Through this event, IBCSD creates a room for dialogue between private sectors and policy makers. In order to sustain their businesses, private sector should develop CSR as part of the corporate strategy” Shinta W. Kamdani, President of IBCSD, said.

Ulrich Mohr, GIZ country director for Indonesia and Timor Leste, said, “Germany fully supports the initiative from Indonesian government and business sectors to utilize CSR as an important building block for sustainable corporate culture in Indonesia which also contributes to the Indonesian Government’s greenhouse gases emission reduction targets.”

The event gathered top Indonesian and international business representatives, high-ranking government officials, academics and representatives of civil society. The forum also included 4 (four) parallel break-out sessions with the themes of: CSR Internationally and Best Practices; Social Entrepreneurship; Doing Business in Our Changing Climate; and Connecting Community with Business. The results and recommendations of the whole dialogue will serve as valuable inputs for related policy making.

Increased Climate Change Awareness in Schools through eco-mapping Process

Students, teachers and the whole school community in 20 schools in Java have improved their awareness of climate change impacts by implementing the methodology of eco-mapping, which is a combined process of a visualized audit method and an integration of CC aspects into day-today school life. 

GIZ PAKLIM project supports the Ministry of Environment and Forestry and the Ministry of Culture and Elementary and Secondary Education in the implementation of climate change actions and learning in schools, by using the methodology of eco-mapping. This educational approach was first piloted in 2013 in 50 high schools across Java. Twenty have finalized the first cycle of the process in early 2015, and are now ready to move forward. The approach aims to raise students’ awareness of sustainable development issues through classroom study as well as school and community action.

Focus lies on preserving natural resources and reducing GHG emissions. The school ground is seen as an integral part of the pedagogical process. Greening the school grounds, reducing water and saving energy, working with the community and other groups and institutions of the society, developing new teaching and training methods that aim to more participation of all school members, especially the students – these are main pillars for our concepts. Starting with themes such as Water, Waste/Litter and Energy, students will go on to develop knowledge of other thematic areas, such as Nature and Biodiversity, School Grounds, Transport/Sustainable Mobility, Healthy Living, Noise, and Climate Change.

The eco-mapping process is designed around the Ecomapping© toolbox, based on the Curricula Mapping approach and supports teachers in facilitating a student centered experimental learning approach within a first cycle timeline of approximately 9 – 12 month. The eco-mapping process consists of five steps: Socialization – Initial Audit – Follow Up on Action Plan – Performance Check – Final Audit.

In the pilot schools during the initial audit, students used Ecomapping© toolbox to analyze school environment. Based on ten thematic categories, feeding data into the key themes Water and Waste Management, Energy efficiency and Sustainable Consumption, 40 students were divided in ten teams, each equipped with maps, tablets, cameras, ‘hands on’ guidance and templates to collect data related to the respective key themes. For example, Energy Data Hunter team located all energy consuming devices on the compound and clustered them by technology, use and location, collected electricity consumption data, collected data and information on other energy consumed by the school, analyzed the data, and identified target items and outlined strategies. In this way all results of the initial audit were utilized in the work process which led into a first action plan. The action plans showed the identified areas of action (waste, energy, water, sustainable consumption, etc.) and were broken down into simple milestones, and agreed activities to reach those. Always following the three areas of a) measurement and monitoring with own means, b) facilitating (effective teaching through hands on inquiry learning methods and units) as well as c) implementation of the actual Greenhouse Gases (GHG) reduction measures.

20 schools finalized the 1st cycle successfully and are ready to develop their next year’s action plan on the way to continuous improvement. It became very clear, that even though we are working with the whole-school approach, which means that tackling complex problems and driving them into changes, need to be backed by the whole-school community including parents and government officials, not only the teachers - main responsibilities lies with the teachers as the facilitator of action learning, meaning linking student centered class room teaching with real-life actions in and around the schools. Further, the eco-mapping process is an effort of the schools to help reach the Indonesians environmental and climate goals of reducing GHG emissions of 26% compared to the business as usual scenario up to 41% with international help, which might seems not so significant for each school, but could be huge considering the number of schools in Indonesia.

Over time and through commitment to the eco-mapping process, improvements are expected to be seen in the students’ learning outcomes, as well as in attitude and behavior of students and the local community and ultimately the local environment. 

 

Bright Lights for Brighter Future

Eight cities in Indonesia may make substantial savings in electricity bills up to 60% and thus help reducing Greenhouse Gases emissions when replacing conventional street lights with LED

As Indonesia’s economy continued to grow impressively in the past decade, so did the demand for energy and electricity to fuel and maintain such growth. Indonesian energy consumption rate is the highest in South-East Asia and the electricity demand due to rapid urbanization rose by 4.8% annually and is predicted to nearly triple by 2035. Unfortunately, as fossil fuels constitute almost all of Indonesia’s source of energy and electricity, it is inevitable that CO2 emissions, one of major component of greenhouse gases (GHG), will nearly double by 2035.

Clearly, both public and private sectors must implement measures to reduce electricity consumption if Indonesia wants to succeed in achieving its goal of reducing greenhouse gases. This creates an opportunity to substitute outdated technologies with more efficient ones. LEDs (light-emitting diodes) is one such efficient technology that can replace energy-hungry conventional street lights used in all Indonesian cities.  

With support of GIZ PAKLIM project, eight city governments in Java (Semarang, Pekalongan, Surakarta, Yogyakarta, Malang, Probolinggo, Pasuruan, Mojokerto) together with OSRAM, lamps producing company, initiated a program in 2012 that aimed to replace all current street lights with LED lights. “The first thing we did, “ says Mohammad Nurhadi, Component Manager for PAKLIM’s Climate Change in Cities and Urban Area programme, “was trainings for city government staff in charge of street lightings to collect data of electricity use for all types of street lights in their cities. After that we were able to conduct simulation on how much savings can be made by replacing all conventional street lights with LEDs. “ 

These cities are pioneers in introducing climate-friendly city infrastructure. What is more, the use of LED brings many additional benefits. Safety improvements through better lighting, reduced dazzling effect and creation of jobs in the operation of public infrastructure are some. Analysis of energy efficiency in the eight cities has revealed significant potential savings. It was showcased by retrofitting street lighting on a model street in Malang, East Java, with LED lamps that yielded energy savings of about 60 percent and triggered positive effects on citizens’ daily life in the neighborhood.

The success in the energy saving simulation and LED street-lighting retrofitting in Malang has led expansion of the Smart Street Lights program in 2014 to 22 cities, starting with Makassar and Surakarta. The program is led by the Ministry for Energy and Mineral Resources.

This public initiative in cooperation with OSRAM is a vivid example of a Development Partnership between Public and Private Sectors. PAKLIM’s advisory work on financing new technologies that goes along with this partnership assists City Governments in overcoming financial barriers and clears the way for adoption of further climate friendly infrastructure. It also shows that fossil fuel consumption and the resulting GHG emissions can be drastically reduced through energy efficient public infrastructure.

Reporting Mechanism for Better Climate Mitigation Actions

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The Indonesian Government is making great strides towards its goals of reducing greenhouse gases (GHG) emissions by completing guidelines and setting-up mechanism for monitoring the implementation of climate mitigation action plans in the provinces. 

Recognizing the importance of climate change mitigation and adaptation, Indonesia has taken an ambitious stand and has officially declared a national target to reduce GHG emissions by 26% by 2020 compared to a business-as-usual scenario, without international support -and up to 41% with international support. To that end, Indonesia has laid out strong major legal frameworks such as National Action Plan on GHG Emission Reduction (RAN-GRK) in 2011, Local Action Plan on GHG Emission Reduction (RAD-GRK) in 2012, and National Action Plan on Climate Change Adaption (RAN-API) in 2013. GIZ PAKLIM project supported the development of RAN-GRK as well as the establishment of the RAN-GRK Secretariat in the Planning Ministry (BAPPENAS). The establishment of these legal frameworks are necessary to identify and develop “nationally appropriate mitigation actions” (NAMAs), which is a key policy tool to reduce the emissions.  

An important element of NAMA, namely measurement, reporting and verification (MRV) is essential in the implementation of NAMA. Indonesia has recognised that a robust MRV System is a pre-requisite for additional international support and successful realisation of climate mitigation measures. To that end, in 2013 the Indonesian government, with full support of PAKLIM project, has developed the guidelines for monitoring the implementation of climate mitigation action plans in the Provinces. 

Following the completion of the guidelines, workshops on monitoring guidelines were conducted in all three regions (East, Central, West) of Indonesia, inviting all related provincial govenrment units as well as key ministries staff from five priority sectors: Ministry of Forestry, Ministry of Agriculture, Ministry of Energy and Natural Resources, Ministry of Transportation, Ministry of Public Works, and Ministry of Environment. According to the guidlines, the provincial governments are compiling the first progress reports with the second reports to be conducted in January 2015.  This reporting scheme builds, along with the GHG Inventory, a basis for the national MRV System for the Biennial Report to the UNFCCC. PAKLIM supports the Ministry of Environment in addressing the complex task of the MRV System’s institutional set-up.