In the picture above, manual waste disposal equipment around the Piyungan landfill is seen undergoing the incinerating process of organic waste on November 6, 2024, in Bantul Regency, Yogyakarta Province. Photo credit: ICLEI Indonesia

Yogyakarta City is facing a growing waste crisis, where a mismatch between its generated waste and available disposal capacity leads to as much as 140 tons of daily unmanaged waste, according to the city’s Environmental Agency. This situation has worsened with the closure of Piyungan, the largest landfill in the Yogyakarta province.

The situation at the Piyungan landfill (TPA), with buried waste after its permanent closure due to overcapacity, is seen from the top in Sitimulyo Village, Piyungan District, Bantul Regency, Yogyakarta Province, on Tuesday, March 5, 2024. Photo credit: Kompas.id

According to the region’s Provincial Government, the Piyungan landfill received waste from cities and regencies in the province, with Sleman Regency contributing 53,096 tons from January to June 2023. Yogyakarta City was the second-largest contributor with 43,932 tons. Bantul Regency added 30,828 tons in the same period. The closure of the landfill has further escalated the region’s waste management challenges, pointing to the need for sustainable solutions.

In response to these challenges, ICLEI Indonesia, in partnership with Perspectives Climate Research, recently hosted a two-day workshop on November 5-6, 2024, as part of its ongoing Urban Climate Action Pilot Project under Article 6 of the Paris Agreement. Held in Yogyakarta City, the workshop brought together over 30 key stakeholders—both in-person and online—from local government agencies, national ministries, and private sectors.

In the picture, Putut Purwandono, representing the Yogyakarta City government, is seen delivering welcoming remarks during Day 1 of the workshop on November 5, 2024.

Putut Purwandono, the Acting Head of the Economics and Cooperation Division of Yogyakarta City, reflected on the two years of collaboration since the initiative began. He emphasized the importance of exploring sustainable ways to tackle waste management issues, particularly through alternative climate financing.

“Moving forward, we hope to continue learning together, with a focus on the vital role of active contributions to emission reduction and unlocking more funding opportunities through carbon markets,” Purwandono said.

The workshop aimed to help local governments and stakeholders deepen their understanding of carbon trading mechanisms from greenhouse gas emission (GHG) reduction activities in alignment with the Indonesian regulatory framework.

In the picture, Erin Danford is seen presenting on international carbon markets under Article 6.

During the Q&A session, Erin Danford, Consultant at Perspectives Climate Group, acknowledged the perceived complexity of Article 6. However, she emphasized the significant interest from activity developers who have worked on similar projects and have a deep understanding of the process gained through successful implementations in other countries.

“The proposed project has been identified as a transformational one, with the potential to be upscaled across Yogyakarta and other cities in Indonesia,” she said. Erin also noted that while the process will take time, the initial verification phase—which can take up to 2.5 years—is relatively quicker compared to other investment projects, making it a promising opportunity for climate action in the region.

Key Actions for Sustainable Waste Management

In the picture, Andina Novita, a representative from the Waste Management Directorate at KLH, is presenting virtually during the workshop on November 5, 2024.

The Indonesian Ministry of Environment and Forestry (KLH) during the workshop highlighted that organic waste, particularly food and household waste, is one of the leading contributors to GHG emissions in the waste sector. Food waste accounts for 39.69% based on waste type, while household waste makes up 50.88% based on the source of waste. 

Andina Novita, representative from the directorate of Waste Management at KLH, emphasized that this presents opportunities for collaboration and financing in waste management to reduce emissions. She also explained the urgent need to shift from the traditional linear economy, where resources are used once and discarded, to a circular economy focused on reusing, recycling, and regenerating materials. 

“This shift not only reduces reliance on landfills (TPA) but also advances the Sustainable Development Goals (SDGs).” Novita said.

According to KLH, Indonesia has set a bold vision for Zero Waste, Zero Emissions by 2050, which requires significant transformations in waste management. 

Key actions include: (1) Shifting to sustainable, circular waste management practices; (2) Expanding waste-to-energy solutions, including technologies like Refuse Derived Fuel (RDF), Solid Recovered Fuel (SRF), and biodigesters; (3) Strengthening waste sorting and promoting circular economic principles at the community level; (4) Closing landfills by 2030 and focusing on landfill mining to recover valuable resources; and (5) Enforcing regulations to combat illegal burning of waste.

Facilitating waste-to-energy facilities through Article 6 financing

In the picture, Kelik from the Yogyakarta Trade Agency (Dinas Perdagangan) explains Giwangan Market’s organic waste issue to Arif Wibowo, Selamet Daroyni, and Femme Sihite from ICLEI Indonesia, along with Erin Danford from Climate Perspectives, during a site visit to Pasar Giwangan on 6 September 2024.

The proposed Article 6 mitigation project will implement biodigester technology to collect organic waste from traditional markets in Yogyakarta, Sleman, and Bantul (Kartamantul area) and build a biogas facility to process it into electricity. According to the National Waste Management Information System (SIPSN), in 2023, Yogyakarta City generated 27.35 tons of waste daily from its 29 traditional markets, while Sleman Regency produced 56.20 tons of waste from its markets. The facility seeks to reduce landfill overcapacity and improve regional waste management by diverting approximately 3,900 tons of organic waste annually, thereby preventing an estimated 82,700 tons of CO2e emissions from methane.

This project also aims to apply the Internationally Transferred Mitigation Outcomes (ITMO) mechanism to facilitate the exchange of carbon credits in support of global climate goals.

Participants are engaged in the Q&A session, discussing the gaps and opportunities in financing waste management issues in Yogyakarta and the surrounding region.

During the discussion, concerns were raised about the technical barriers of biodigester technology for managing organic waste. A key concern is the need for effective waste sorting, as biodigesters require organic waste to be separated from other materials like plastics and metals.

“In one of the waste-to-energy practices in Bantul, we faced difficulties in processing residual organic waste, which even led to river contamination,” Febri from the Economics and Cooperation Division of Yogyakarta City explained.

The sorting process is a significant challenge, as it requires both technical solutions and active public participation. Without a proper sorting mechanism, the efficiency of biodigesters can be undermined, limiting their potential to reduce emissions and promote a circular economy.

“We have experience in managing a wide range of organic waste. Efficient pretreatment is crucial to understanding the content of the waste, which will be important in determining the right method and technology for treatment,” said Claire, a waste management expert, in response.

The road ahead and key challenges for local governments to overcome

As local governments often face barriers due to limited budgets and difficulties in accessing  financial resources, their ability to fund critical environmental projects is hindered. Alternative financing mechanisms, like Article 6, present opportunities to address these challenges. However, a key issue with carbon market mechanisms in Indonesia is that roadmaps for carbon trading are still under development.

Joko Prihatno, Policy Analyst on Climate Change and Lead Negotiator for Article 6 at KLH, responds to feedback and questions regarding the regulatory framework on international carbon trading in Indonesia from participants during the workshop on November 5, 2024.

Local governments have voiced concerns about the complexities of the process and the challenges posed by limited capacity, especially since Article 6 is a relatively new concept in Indonesia. As one participating local official noted, “The complexity of this system could become a major obstacle—so, what can local staff do to navigate these challenges effectively?”

While third-party consultations can be expensive, Joko Prihatno, Policy Analyst on Climate Change and Lead Negotiator for Article 6 at KLH, advised, “The Article 6 instrument and preparing Project Design Documents (PDDs) may seem complex, but all the necessary tools are available, and local governments should take advantage of training programs to build expertise in these areas.”

In the picture, Day 1 in-person attendees include key stakeholders from Yogyakarta government agencies such as the Environment Agency (Dinas Lingkungan Hidup), Trade Agency (Dinas Perdagangan), the Indonesian Young Entrepreneurs Association (HIPMI), as well as consultants and NGOs.

As regions like Yogyakarta enter potential agreements with international investors facilitated by ICLEI and Perspectives, Prihatno underscored the need for capacity-building. He emphasized that local governments must submit initial reports to the Ministry of Environment and Forestry for authorization after signing agreements. “One of the challenges,” he said , “is ensuring that local governments have the necessary experience in preparing PDDs, which must align with established UNFCCC methodologies.”

“I also appreciate the training support provided by NGOs and institutions like ICLEI and Perspectives for local governments as part of the learning process,” he added.

Previously highlighted by KLH, one of the strategic elements of Indonesia’s Zero Waste, Zero Emissions by 2050 vision is integrating carbon pricing into waste management. Minister of Environment and Forestry Regulation No. 21 of 2022 enables the integration of carbon credits from GHG emission reduction activities, offering opportunities for the waste management sector to participate in carbon market mechanisms. For other alternative funding sources, KLH encourages local governments to propose pilot projects that focus on sustainable waste management and climate change mitigation, often in collaboration with the Indonesian Environment Fund (BPDLH).

However, KLH recognizes that, while the vision for waste management is clear, substantial progress is needed to ensure environmental integrity. Key regulatory developments, such as the Minister of Home Affairs Regulation (Permendagri), are necessary to clarify the roles and responsibilities of local governments in waste management. Additionally, the government is working on finalizing the Minister of Finance Regulations to address fiscal policies and carbon taxes.

In the picture, Arif Wibowo, is seen delivering closing remarks during Day 2 of the workshop on November 6, 2024.

As Yogyakarta Province strengthens its decentralization policy on waste management, each city and regency must manage its own waste, requiring local governments to develop sustainable solutions to address growing challenges. Arif Wibowo, the country manager of ICLEI Indonesia, emphasized in his closing remarks that this is an ongoing process. Cities must actively seize opportunities and assess suitable approaches for Indonesia as part of their continuous sustainability efforts.

“The key point is that the mandate for waste management currently lies with local governments. This creates opportunities for strengthened collaboration, improved institutional governance, and further decentralization, which are crucial steps toward more effective waste management in the future,” said Wibowo.