Adaro Water

Through PT Adaro Tirta Mandiri (ATM), its subsidiary company which was founded in 2012 and started its operations in 2016, the Company runs businesses consisting of the following 3 (three) segments: 

• Drinking Water Supply System, including the system development, operational, and maintenance activities;
• Mine Water Pumping and Processing Services, including mine water pumping (dewatering) and slurry pumping and mine water treatment at subsidiaries operating in the mining segment; and
• Water Solution Services, which are activities to reduce the level of water loss (non-revenue water).

  

Drinking Water Supply System (SPAM)

In order to support the government's efforts to increase community access to clean water, through its subsidiary companies, ATM collaborates with business entities owned by city/regional governments to build, operate and maintain SPAM. ATM subsidiary companies take surface water to be processed at water treatment plants, then distribute it to the community through business entities owned by the city/regional government.

Flow Chart 1. Clean Water Treatment Process

1. Raw Water Unit
   Raw water is taken using a pump and flows through a raw water distribution pipe from the surface water location to the water treatment plant. This operation is carried out under Water Resources Extraction Permit.
2. Processing Unit
   The process of processing raw water into clean water is carried out in accordance with the Minister of Health Regulation Number 2 of 2023 concerning Implementing Regulation of Government Regulation Number 66 of 2014 concerning Environmental Health.
3. Unit Distribusi
   City/region owned enterprises distribute clean water from water treatment plants to the community through piping.
4. Service Unit
   Service Unit handles beneficiary services to the user's destination point, for example households, industry or other service areas.

Since the start of the operations, overall ATM’s subsidiaries have signed 7 (seven) cooperation agreements with city/region owned enterprises and 1 (one) cooperation agreement with a private enterprise. 

The following are the operational businesses in drinking water supply system:

Subsidiary	ATM’s Effective Ownership	Offtaker	Cooperation Expiration Period	Total Production Capacity  (liter per second)
PT Adaro Tirta Gresik	99,99%	Perumdam Giri Tirta Kabupaten Gresik	2037	400
PT Drupadi Tirta Intan	99,99%	PT Air Minum Intan Banjar	2039	500
PT Adaro Tirta Mentaya	90,00%	Perumda Kota Waringin Timur	2043	320
PT Dumai Tirta Persada *	49,00%	Perumdam Tirta Dumai Bersemai	2045	250**

 

Water treatment projects in construction:

Subsidiary	ATM’s Effective Ownership	Offtaker	Cooperation Expiration Period	Total Production Capacity  (liter per second)
PT Grenex Tirta Mandiri	65,88%	Perumdam Tirta Bhagasasi	2040	200
PT Adaro Tirta Brayan	100%	Perumdam Tirtanadi	2048	500
PT Adaro Tirta Sarana	99,99%	KIPI	2045	200***

*JV Company

** Phase II will be constructed with the capacity of 200 liters per second to total 450 liters per second

*** Will be constructed in 2 (two) phases, 2x100 liters per second

 

In 2023, ATM’s subsidiaries distributed 31,811,606 m³ of clean water to city/region owned enterprises or an average of 2,650,967 m³ per month. Home Connections (SR) served totaled around 147,000 SR with the assumption that consumption per SR/month is 18 m³. As at June 30^th, 2024, Adaro Water had continued its positive trend. Distribution of clean water to government-owned companies totaled 17,710,768 m³ or an average of 2,951,794 m³ per month. The number of SRs made increased in the second quarter, reaching around 164,000 SRs, assuming a consumption of 18 m³ per SR per month.

 

Mine Water Pumping and Treatment Services  

To support the Group's mining segment, Adaro Water carries out mud pumping activities through PT Adaro Wamco Prima (“AWP”), which is owned by ATM with 60% effective ownership, as well as handling mine water pumping and management through PT Adaro Tirta Sarana (“ATS”), owned by ATM with effective ownership of 99.99%.

For mining slurry pumping, AWP owns and operates 25 mud pumps consisting of 11 main mud pumps and 14 mud booster pumps. As at June 30^th, 2024, AWP had pumped 2,986,381 m³ at AI’s mining site.

For its mine water pumping business activities, ATS owns and operates 33 dewatering pumps consisting of 11 dewatering pumps with diesel engines and 22 dewatering pumps with electric motors. ATS business activities are carried out at AI, BCC and PT Maruwai Coal mining locations. ATS plans to increase the number of dewatering pumps with electric motors by 7 (seven) units by the end of 2024, which will be used and operated in AI’s mining area.

Flow Chart 2. Slurry Management and Mine Water Dewatering

 

1. Customer Request Based on customer requests, ATS arranges the schedule and volume of mud or mine water to be pumped.
2. Slurry Pumping / Dewatering Process Mud pumping is carried out with a Specific Gravity (SG) above 1.2 and mine water pumping is carried out with an SG from 1.0 to 1.05.
3. Disposal Point The disposal point for mud which has been pumped is the drying pond and the disposal point for mine water pumping is the settling pond managed by the associated mining companies.

Besides operating the dewatering pump, ATS also processes mine water using chemicals so that the mine water produced by AI’s mining activities meets quality standard requirements according to the parameters set out in Minister of Environment and Forestry Regulation Number 113 of 2003, South Kalimantan Governor Regulation Number 36 of 2008, and Technical Approval.

Flow Chart 3. Proses Pengelolaan Air Tambang

 

1. Safety pond - the place to keep the mine water produced by mining activities and rain water catchment
2. Treatment facility - facility for treating mine water and adding chemicals using dosing pumps. Chemicals are added automatically with the dosage that changes automatically based on the quality of the water flowing into the treatment facility
3. Mud pond - facility for settling the mud contained in the water. In this facility, water quality is rechecked before the water is flowed to the point of compliance.
4. Point of compliance (POC) - specific point or location to measure dan evaluate the fulfillment of environmental standards or requirements. POC is normally used in the environmental regulatory context to ensure that certain operation or activity has met the limit or parameter imposed by the authority.

 

Jasa Solusi Air Bersih 

One of the biggest problems in the Drinking Water Supply System faced by city/regional government-owned enterprises in Indonesia is the high level of water loss. Based on data from the Ministry of Public Works and Public Housing, the national water loss rate in 2023 was 33.7% or above the tolerance limit of 20%.

Through its subsidiary company PT Adaro Tirta Wening (“ATW”), ATM is collaborating with the regional government-owned enterprise Perumda Tirta Wening to reduce the level of water loss in the North Bandung City service area. Based on measurement results, the level of water loss in the Perumda Tirta Wening area was 44.98%. ATW targets to reduce water loss levels by up to 17%.

ATW has worked to determine District Meter Zones and District Meter Areas, rehabilitate pipe networks, and replace customer water meters in the North Service area. ATW has also made innovation by developing smart water meters, i.e. equipment designed to transform meter readings from analog to electronic so that reading results can be sent in real time. This tool will reduce errors in recording water meters, provide information on water usage by customers in real time and work as an indicator if there are anomalies in water usage by customers. Apart from that, ATW also developed software called Adaro Water Solution, which is software for monitoring and analyzing data, as well as a tool of early leak detector, reminder system, and report submission for preventive measures and repair works.

Flow Chart 4. Proses Pengelolaan Air Tak Berekening

 

The cooperation of ATW and Perumda Tirta Wening of Bandung City to reduce water loss is the first and only performance-based water loss cooperation in Indonesia. Based on this cooperation, the performance-based reward for ATW is calculated as follows:

• Performance-based reward from mapping DMA, i.e. performance-based reward after completing the mapping of DMA.
• Performance-based reward from reduction of non revenue water, i.e. performance-based reward by comparing the water loss level before the service is rendered (baseline) with the water loss level in the months after the service is rendered by ATW.