A Path to Viability: Improving Waste-to-RDF Management in Cimahi
Jakarta/Zoom Meeting (Hybrid), 23rd of September 2025
The issue of waste management is a complex challenge in urban areas across Indonesia. To address this, the Directorate of Housing and Settlements Infrastructure area at Bappenas, in close collaboration with UNDP through the Sustainable Infrastructure Program in Asia (SIPA) Indonesia, is conducting a study on the financial and operational viability of Refuse-Derived Fuel (RDF) facilities. As part of this effort, a recent meeting brought together Bappenas, UNDP, and the Cimahi City Environmental Agency to discuss the findings from a study of the RDF Viable Business Model.
Financial and Operational Challenges
The meeting opened with a presentation from the study's consultant team-PT Cagar Bentara Sakti (CBS), who highlighted significant financial and operational challenges at the RDF Cimahi facility. The financial analysis from 2024 revealed that the facility is operating at a deficit of approximately 4 billion IDR. While the total annual operating costs (OPEX) were around 5 billion IDR, revenue generated from RDF sales amounted to only about 1 billion IDR. The findings showed that to achieve a break-even point, a substantial government subsidy of 900,000 IDR per ton of waste would be required.
The study also compared Cimahi's operational costs to facilities in other regions. The gross average cost of waste management per ton in Cimahi was reported at 1 million IDR, which is notably higher than in Cilacap (800,000 IDR) and Banyumas (300,000 IDR). These financial challenges are compounded by a number of technical barriers, including inconsistent RDF quality, which is attributed to issues with the biodrying process and the need for new equipment. The facility also faces challenges related to its location and high operational costs.
Cimahi City's Strategic Response
In response to the study’s findings, the head of the Cimahi Environmental Agency shared an update on the local government's plans to address these issues. The city has developed a clear strategy for improvement, demonstrating a strong commitment to making the facility sustainable.
To address the location issues, the city has agreed to relocate a nearby school that was too close to the facility, with a technical plan (DED) already in place. The city is also working to expand the facility's area by 1,000 square meters, with a 4 billion IDR budget allocated for this year.
A major goal is to boost the facility’s processing capacity from the current 50 tons per day to 100 tons per day. To achieve this, Cimahi plans to invest approximately 20 billion IDR for equipment improvement and 3 billion IDR for services, totaling more than 20 billion IDR for upgrades.
Strategically, Cimahi is strengthening the management of its RDF Facility by transitioning it into a Public Service Agency (BLUD). This shift will provide greater flexibility in managing budgets and collaborating with third parties. The city plans to improve waste collection services to increase revenue from retribution, with a goal of achieving at least an 80% collection rate to help cover operational costs.
Collaborative Path Forward
The meeting underscored the importance of a collaborative approach involving national and local governments, as well as development partners. The new data and strategic plans provided by the Cimahi city government are crucial inputs for the study. The consultant team will now use this updated information to model improved scenarios, incorporating the planned capacity increase, new investments, and a viable operational model.
This collaborative effort aims to provide robust recommendations that can serve as a reference for both the national government and local authorities, ultimately contributing to a more sustainable and effective waste management system in Indonesia.
