The government’s patience with the management or some might even argue “mismanagement,” of the Coordinated Waste Disposal Plants (TPST) by PT Bali Citra Metro Plasma Power (Bali CMPP) has come to an end.
Because of Bali CMPP’s repeated failure to successfully bring online three newly constructed TPST facilities in Kesiman Kertalanggu, Padangsambian Kaja, and Tahura will compel the municipal government of Denpasar to impose a schedule of daily fines.
Such is the aggravation of municipal authorities that Bali CMPP is now facing daily fines for each day the plants cannot process waste at the targeted levels in plants operating at full capacity.
The fines and penalties are in accordance with the original work contract between the City of Denpasar and Bali CMPP. The PT Bali CMPP contract stipulated that the three TPST plants would begin full operations on 25 July 2023 and become capable of operating at a minimum 60% capacity by 31 October 2023.
PT Bali CMPP has yet to achieve these targets.
The contract between PT Bali CMPP and the City of Denpasar stipulated a 70% capacity achievement by 31 November 2023, 80% in December 2023, and 100% by 01 January 2024
Sadly, Bali CMPP has yet to meet any of its contracted levels of operational proficiency. As a result, the Denpasar Municipal Administration is now applying penalties for failing to meet their obligations to operate the three TPST at the agreed levels.
Quoted by NusaBali.com, the Deputy Mayor of Denpasar, I Kadek Agus Arya Wibawa, said on Thursday, 07 December 2023: “The agreement is clear. If, after the fourth failure to meet their obligations and agreed commitments, we will impose the stipulated daily fines.”
Wibawa disparaged the daily fines imposed against Bali CMPP as too small compared to the damage caused by the failure to meet their contractual obligations. Adding: “If the fine is too small compared to the risk endured by the Denpasar Municipality. If, on 01 January 2024, this problem has not been resolved, I will discuss the next steps to be taken directly with the Mayor.”
Wibawa pledges future steps against PT Bali CMPP. If they fail to operate the TPSTs fully, the next steps against them will be substantial.
Penalties for TPST Tahura and TPST Kesiman Kertalanggu
The government has set penalty rates for Bali CMPP’s failure to meet stipulated quotas of processed waste at TPST Tahura and TSPT Kesiman Kertalangu.
TPST Tahura is penalized Rp. 26,703 per ton of rubbish short of the set target. Meanwhile, the penalty rate for TPST Kesiman Kertalangu is Rp. 34.165 per ton of unachieved targeted waste processing.
In the case of TPST Kesiman Kertalangu, it has a rated capacity of 450 tons per day. TPST Kertalanggu is currently processing 60 tons of rubbish daily from a targeted 270 tons
Extrapolated, TPST Kesiman Kertalangu is currently incurring a daily fine of Rp. 7,174,650.
TPST Tahura’s fine for failing to operate at promised levels amounts to 7,209,810. On a daily combined basis, PT Bali CMPP is potentially fined Rp.14,384,460.
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