The ITS student team consists of (from left) Rizki Amrizal, Muhammad Revanza Maulana, and Reyhan Hamdan Ibda’u Atma who succeeded in initiating the Social Empowerment application for PLTSa

Campus ITS, ITS News – Institut Teknologi Sepuluh Nopember (ITS) students again demonstrated their skills in solving business cases with various problems. This time, the ITS student team initiated a solution to achieve financial feasibility in the construction of a Waste Power Plant (PLTSa) to attract investors. This solution is accompanied by community empowerment through the Social Empowerment application.

Team leader Rizki Amrizal explained that in this case, his team received information that there was a production of 12 tons of waste per day in Makassar. However, there are some doubts from investors for the PLTSa there regarding the financial viability of the power plant. “So here we are trying to convince them (investors, ed) that investing here is profitable,” he explained.

The student from Bojonegoro said that from the results of the financial feasibility analysis with his team, it was found that the internal rate of return (IRR), which is the level of profit that will be obtained from investment, was at 19.9 percent. This value is quite high when compared to the minimum attractive rate of return (MARR) which is at 6 percent. “The IRR indicator obtained is much higher, up to three times. In terms of profit, it can convince investors,” he said.

Display of the Social Empowerment application which is a solution in the construction of PLTSa to empower the community

In achieving this goal, the student who is familiarly called Amrizal, and his team proposed several solutions. The first solution is to switch the process at the power plant from the combustion process to gasification. This switch, despite being more expensive, will reduce emissions significantly. “If the combustion engine produces high carbon monoxide if the gasification can be reduced drastically,” he said.

The second solution is to provide a tipping fee for each PLTSa to be built in Makassar. The tipping fee offered by the team, named Bilos, is IDR 160 thousand. Then, the third solution, this team combines the electricity supply chain with the green business supply chain. In this way, the power plant will get a supply of waste to continue to operate, while also providing a green effect on the environment by reusing existing waste.

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Trash tracking provided by the community through the Social Empowerment application, designed by the ITS student team

The fourth solution given is the creation of an integrated application called Social Empowerment. This application has various benefits that can improve the welfare of local communities. The three main features in this application are PLTSa information transparency, reward programs, and job vacancies. “The prizes can be like points that are earned every time a user gives garbage to PLTSa,” said Amrizal.

The 2019 student continued, Social Empowerment was proposed to reduce the possibility of various problems involving the community around the PLTSa. With the application that contains various crucial information, it is hoped that the surrounding community will be helped by the existence of the power plant.

Display of the Social Empowerment application, designed by the ITS student team, regarding the available job opportunities for the community around PLTSa

The idea that was compiled within three weeks was outlined in a paper entitled Optimizing the Feasibility of Makassar PLTSa Using Electricity Supply Chain Management with the Assistance of Social Empowerment Applications for Community Empowerment. This paper was also worked on by Amrizal together with two members of his team, namely Reyhan Hamdan Ibda’u Atma and Muhammad Revanza Maulana.

Not in vain, with the guidance of Dr. Adithya Sudiarno ST MT IPM ASEAN Eng, this team has won 2nd place in the Business Case Competition Constraint 2022 held by Hasanuddin University, last January. Namely by setting aside 10 other teams in the competition. (ITS Public Relation)

Reporter: Muhammad Miftah Fakhrizal