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The skills and experience treating mine water into clean water at the operational locations and the government’s program to improve clean water access in the national scale have offered opportunities to AEI to invest in water treatment business, mine mud and mine water treatment, and non-revenue water reduction. AEI has a number of subsidiaries operating in these segments, with PT Adaro Tirta Mandiri (ATM) established in 2012 as the parent company.

 

Clean water treatment

AEI’s subsidiaries in water treatment business collaborate with several regional drinking water public enterprises (perumda) to obtain the concessions to build, operate and transfer water treatment facilities with a period of 17-25 years. Revenues are calculated based on the minimum clean water volume taken by the water perumda multiplied by the contractual rate.

 

Non-revenue water management 

In 2022, PT Adaro Tirta Wening (ATW) was established to handle non-revenue water (NRW) reduction project in Bandung city – northern area, with total capacity to save of 219 liters per second. For the purpose of this project, ATM is developing an innovation called Smart Water Meter and Adaro Water Solution – a set of device and technology to reduce non-revenue water. Smart Water Meter is a device designed to reduce leakage in clean water distribution, reduce errors in water meter recording, and improve water meter accuracy. Adaro Water Solution is a software developed to monitor and analyze data, and functions as early detector of leakage, reminder system, and reporting system for preventive actions and repair works. Adaro Water Solution is being integrated into the non-revenue water project of Bandung city.

In the same year, ATW and the perumda of this project is finalizing the target area mapping for reducing clean water distribution leakage. The mapping will be used as the basis of calculating revenues. This cooperation is the first non-revenue water business concept in Indonesia and expected to make significant contribution to reduce clean water distribution leakage and become a reference for other clean water perumda in Indonesia.

 

Business outlooks

AEI will continue to increase clean water treatment capacity through acquisitions, public private partnerships, B-to-B partnerships and tender processes selected carefully. In 2023, the company will also expand mine mud and mine water treatment operations, with the focus to support the Adaro Group’s growth, among others through mine mud, chemical, and wastewater treatment within the Adaro Group’s mines. Furthermore, through subsidiaries, ATM will also participate in the Adaro Group’s projects in the green industrial park in North Kalimantan by providing clean water supply up to 5,000 liters per second.

Last modified on February 28, 2024, 9:44 am | 68111