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T-4009 COST-BENEFIT ANALYSIS OF PROPOSED CENTRAL TREATMENT OF HAZARDOUS WASTE IN JABOTABEK, INDONESIA by Masnellyarti Hilman ProQuest Number: 10783685 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a com plete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. uest ProQuest 10783685 Published by ProQuest LLC(2018). Copyright of the Dissertation is held by the Author. All rights reserved. This work is protected against unauthorized copying under Title 17, United States C ode Microform Edition © ProQuest LLC. ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106- 1346 T-4009 A thesis submitted to the Faculty and the Board of Trustees of the Colorado School of Mines in partial fulfillment of the requirements for the degree of Master of Science (Mineral Resource Ecology). Golden, Colorado Signed: Masnellyarti Hilman Approved: Dr. Ronald R. H. Cohen Thesis Advisor Golden, Colorado Date: Dr Ch Environmental Sciences and Engineering Department ii T —4009 ABSTRACT Options for hazardous waste management in JABOTABEK, Indonesia are the following: (1) building a central treatment, storage and disposal facility in JABOTABEK; (2) maintaining the status quo; and (3) providing for central hazardous wastes storage in Jakarta and Bogor. The third alternative is not evaluated in this study because it is only a short-term solution. This study analyzes the costs and benefits as sociated with each of the two alternatives. Benefits are based on health issues, the impact of drinking water con taminants on human health. Other issues analyzed are the treatment processes and maintenance and operational costs of the potable water treatment plant. Six rivers supply drinking water to the JABOTABEK region. This study is limited to the Cipinang and Sunter rivers, which are the Pulogadung potable water treatment plant water suppliers. These rivers receive discharges from 476 industries. It is reasonable to assume that their wastes contaminate the drinking water supply. By assessing the secondary data on the types of industries that discharge wastes into the river and based on the risk assessment study of contaminants in drinking iii T —4009 water and secondary data on the ten most common illnesses in Jakarta, it was decided to use diarrhea as the illness to value the health benefit. It is priced by using the average cost covered by a health hospitalization insurance policy. Costs of the treatment process for the central treatment plant are based on calculations by Dames and Moore (1989) in their feasibility study of this project. Operational and maintenance costs of the Pulogadung treat ment plant are obtained from the Provincial Drinking Water Company of Jakarta. Investment and maintenance costs for the project are from the feasibility study of P.T.Mirazh. By using an interest rate of 18%, and the time from to to tlO, the total NPV is $182.97 million. The alternative of having central treatment for hazardous wastes is the best choice. iv T-4009 TABLE OF CONTENTS Page List of Figures ................................. vi List of Tables .................................. vi Acknowledgements ................................ viii I. INTRODUCTION................. ............ 1 Hazardous Waste Management Options ...... 6 Industrial Wastes in JABOTABEK ........... 21 Scope of the Study ............................ 2 2 Hypothesis ..................................... 2 8 II. METHODOLOGY ................................ 32 Risk Assessment ............................... 3 2 Cost Benefit Analysis .................... 36 III. HAZARDOUS WASTES IN CIPINANG- SUNTER CATCHMENT AREA .................... 45 Wastes Discharged by Industry .................. 4 5 Quantity of Wastes Discharged ............ 50 IV. HEALTH EFFECTS AND RISK ASSESSMENT....... 55 Toxicological Effects .................... 55 Risk Assessment ........................... 64 V. COSTS AND BENEFIT ......................... 84 The Economic Value of the Environmental Impact ................................. 84 The Net Present Values (NPV) ............. 87 VI. CONCLUSIONS AND RECOMMENDATIONS .......... 92 REFERENCES ................................ 9 6 APPENDICES: A. WASTE GENERATION BY INDUSTRIAL SECTOR .. 102 B. TABLE OF ABBREVIATIONS ................. 106 v T —4 009 LIST OF FIGURES Page Figure 1. Map of JABOTABEK catchment area .......... 2 2. Map of the locations of Industry in the Cipinang-Sunter Catchment basin ..... 3 3. Remedial investigation and feasibility study flowchart ........................... 39 LIST OF TABLES Table 1. Industrial Effluents Above the Standards .. 5 2. Water Quality Data in the Rivers That Are Sources of Drinking Water in Pulogadung ................................. 10 3. Heavy Metals in Jakarta Bay Surface Water . 13 4. Heavy Metals in the Ocean Biota in Jakarta Bay ................................ 13 5. Comparison of Sectoral Capacity Data ...... 2 3 6. The Chemical and Physical Properties of Drinking Water Monitored from Pulogadung Water Treatment Facility .................. 27 7. List of Industries Operating Within the Cipinang-Sunter Catchment Area ........... 29 8. Waste Generation by Industrial Sector in the Cipinang-Sunter Catchment Area .... 54 9. Intake of mg/kg-day Drinking Water Contaminants ............................... 76 10. Hazard Index for Contaminants ............. 77 11. Comparison of Daily Oral Lead Intake with PbB Levels ............................ 78 vi T—4009 TABLE OF CONTENTS (continued) Page Table 12. Benefits Evaluation from to to tlO ........ 90 13. Net Present Value Calculation ............. 91 vii T-4009 ACKNOWLEDGEMENTS This study was performed with cooperation from numerous individuals and organizations. Specific thanks go to the following: Dr. Dick Maullineux and OTO-Bappenas for sponsoring the study? Dr. Christopher P. Weis. Mr. Charles Steven and the staff of EPA Region 8 i*n Denver, Colorado for guidance, support, advice, and the provision of references; to Mr. Nabiel Makarim, Ms. Baiah Soeprapto, and the staff of the State Ministry of Population and Environment in Jakarta; Ms. Lili Siregar and the staff of PPPPL-DKI? the staff of PAM-DKI for guidance, support, and the provision of data? to Ms. Barbara Sihombing for editing; Mrs. Jane Cohen for formatting? Ms. Masriani Dewi for posting the data? Mrs. R. Andang Bachtiar for making the map? Ms. Elvira Putri; Mr. Masnoverdi; to my adviser, Dr. Ronald Cohen, and to my thesis committee members, Dr. Wade Martin and Dr. Howard at Colorado School of Mines for their guidance, patience and interest in this project; and finally, to my husband Hilman Soekartadiredja, my children Tama and Arti, and my niece, Devi, for their tolerance and patience throughout this endeavour. I would also like to express my appreciation to my parents whose support and guidance throughout my life made this possible. viii T —4009 1 Chapter 1 INTRODUCTION The JABOTABEK planning region is the most densely populated region in the Republic of Indonesia and the nation's largest industrial area. The industries are dis tributed throughout the areas of: Jakarta Pusat (Central Jakarta), Jakarta Timur (East Jakarta), Jakarta Selatan (South Jakarta), Jakarta Barat (West Jakarta), Jakarta Utara (North Jakarta), Bogor, Tangerang, and Bekasi. The Pulo Gadung industrial estate in East Jakarta is the only industrial estate, but other indus tries are spreading throughout the JABOTABEK region and are mixed with residential areas (see figures 1 and 2). JABOTABEK contains the Daerah Khusus Ibukota (DKI, a special capital region) of Jakarta, the city of Bogor, and the kabupaten (districts) of Bogor, Bekasi, and Tangerang. The word JABOTABEK is an acronym formed from the names Jakarta, Bogor, Tangerang, and Bekasi. As of 1986 the region covered 6,418 square kilometers and contained a population of 12.8 million (source: BKSP-JABOTABEK). The region is dominated by Jakarta, the capital of the Republic with a population of 6.5 million. Environ mental problems are clearly visible in and around Jakarta. The city contains 19 significant watercourses, T-4009 2 J a k a Ba y Ta ng B • k a s i Bogor OKI bordar industrial ragton Figure 1. Map of JABOTABEK catchment area. T-4009 3 I m I cn 1 □ ] □ m □ 1 . I cn □ fill m TSrn~n o °I0 & CD Cipinang-Sunter Cipinang-Sunter Catchment Basin □ m Figure Figure 2. Map of the locations of Industry in the HTUKAMOAM □ wnrwo VNMRVJ1Q4 < b T —4009 4 of which six supply drinking water: the Cisadane River in Tangerang, the Ciliwung, Kalibaru, Cipinang River in Jakarta, and Sunter Rivers in Jakarta, and the Bekasi River in Bekasi. All of the rivers in JABOTABEK are con sidered to be polluted to some extent by municipal or industrial wastes. An example of the extent of municipal waste pollution Jakarta rivers that supply drinking water is the coliform count in the dry season which averages between 33,500 MPN coli/100 ml (in PAM Pejaten) to 93 million MPN Coli/100 ml (in the Cipinang River). The standard is 10,000 MPN coli/100 ml (PPPPL-DKI 1989). There are industrial activities along the rivers. OSMPE (Office of the State Minister for Population and Environment) in a 1986 survey, found that for a number of industries in the JABOTABEK region, the effluent was above standards (Table 1). Its hazardous wastes inventory of the JABOTABEK region in 198 3 and 1984 found approximately 400,000