JCM_ID_F_Vrf_Rep_ver01.1

JCM Verification Report Form
A. Summary of verification
A.1. General Information
Title of the project

Reduction of Energy Consumption by
Introducing an Energy-Efficient Waste Paper
Processing System into a Packaging Paper
Factory in Bekasi, West Java.

Reference number

ID011

Monitoring period

01/07/2017- 31/08/2018

Date of completion of the monitoring report

21/12/2018

Third-party entity (TPE)

Japan Quality Assurance Organization (JQA)(TPE-ID-003)

Project participant contracting the TPE

Kanematsu Corporation

Date of completion of this report

24/01/2019

A.2 Conclusion of verification and level of assurance
Overall verification opinion

Positive
Negative

Unqualified opinion

Based on the process and procedure conducted, JQA
provides reasonable assurance that the emission reductions
for Reduction of Energy Consumption by Introducing an
Energy-Efficient Waste Paper Processing System into a
Packaging Paper Factory in Bekasi, West Java.
Are free of material errors and are a fair representationof the GHG data and information, and

Are prepared in line with the related JCM rules,
procedure, guidelines, forms and other relevant
documents(If overall verification opinion is <State the reasons>negative, please check below andstate its reasons.)
Qualified Opinion
Adverse opinion
Disclaimer

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B. Verification team and other experts

Name

Company

Function*

Schemecompetence*

Mr.
Tadashi
Team
JQA
Ms.
YoshidaleaderMr.
HiroshiInternal
JQA
Ms.
Motokawa
reviewer
Please specify the following for each item.

Technical
competence*

Onsitevisit

Authorized
Authorized* Function: Indicate the role of the personnel in the validation activity such as team leader, teammember, technical expert, or internal reviewer.
* Scheme competence: Check the boxes if the personnel have sufficient knowledge on the JCM.
* Technical competence: Indicate if the personnel have sufficient technical competence related
to the project under validation.

C. Means of verification, findings and conclusions based on reporting requirements
C.1. Compliance of the project implementation and operation with the eligibility criteria of theapplied methodology<Means of verification>
The project was registered as a JCM project on 22/12/2017, which applied JCM approved
methodology ID_AM012_ver01.0 "Reduction of Energy Consumption by Introducing an
Energy-Efficient Old Corrugated Carton Processing System into a Cardboard Factory" under
the scheme of Joint Crediting Mechanism between Republic of Indonesia and Japan.
The purpose of the project is to reduce CO2 emissions from electricity consumption in thecorrugated carton process of the packaging paper factory.

The cardboard making process

consists of mainly corrugated carton process (OCC line) and sheet forming process (PM line).
In order to achieve the reduction of electricity consumption in the OCC process per unit ofpaper production, PT. Fajar Surya Wisesa Tbk. has introduced higher energy-efficienttechnology from Aikawa Iron Works Co., Ltd. into an OCC line (Line 8) newly installed as a
JCM project. The new technology provides less electricity consumption in the operation of
the OCC line (Line 8) compared to the existing OCC line (Line 5) while the new OCC line
has produced 281,867 ton of the paper during the monitoring period.
The JCM website indicates that the starting date of the project operation is 01/04/2017
and this monitoring period is from 01/07/2017 to 31/08/2018. It is confirmed through thereview of relevant documents, on-site assessment and the interview with the PPs that themonitoring actually started on 01/07/2017.
JQA has assessed whether the project implementation and operation during the monitoring3

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period complies with the eligibility criteria of the applied methodology.

After desk review,

an on-site assessment was conducted on 21/12/2018. JQA conducted a physical inspection
and interviewed with the PPs listed in Section F of this verification report.
The assessment results regarding the eligibility criteria are summarized as below:
Criterion 1
The specific energy consumption of the project OCC line guaranteed by the manufacture
is, at the minimum, less than the reference specific energy consumption set for the project
factory.
Through the review of the monitored data and the interview with the PPs during on-site
assessment, the project information of Criterion 1 in the PDD is confirmed as follows:-

Project specific energy consumption of Line 8 during the monitoring period was
0.1085 MWh/ton in 2017 and 0.0975 MWh/ton in 2018, which are much less than thereference specific energy consumption (SECRE) of 0.188 MWh/ton.

Hence, it is concluded that the project meets Criterion 1 with a satisfactory result during
the monitoring period.
Criterion 2
The paper yield of the project OCC line(s) guaranteed by the manufacture is equal to or
more than 90% at the range of designed production capacity.
Through the review of the monitored data and the interview with the PPs during on-site
assessment, the project information of Criterion 2 in the PDD is confirmed as follows:-

The paper yield during the monitoring period was in a range of 97.1 – 99.5 %, whichshows more than 90% at the range of designed production capacity.

Hence, it is concluded that the project meets Criterion 2 with a satisfactory result during
the monitoring period.
Criterion 3
Production capacity of the project OCC line is no more than the twice as large as thecapacity of the existing OCC line.
Through the review of the monitored data and the interview with the PPs during on-site
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assessment, the project information of Criterion 3 in the PDD is confirmed as follows:-

The amount of paper production by the OCC Line 8 during the monitoring period was
596.6 t/d in 2017 and 708.2 t/d in 2018, which are much less than the twice as large as
1,150 t/d which is the maximum capacity of the existing OCC Line 5.

Hence, it is concluded that the project meets Criterion 3 with a satisfactory result during
the monitoring period.
Criterion 4
Plan for regular adjustment, replacement, and improvement of project OCC line(s) areprepared (at least once every six months).
Through the review of the maintenance records and the interview with the PPs during onsite assessment, the project information of Criterion 4 in the PDD is confirmed as follows:-

The maintenance records on the stable operation of the OCC Line 8 during themonitoring period was provided by the PPs. It is confirmed that PT. Fajar Surya
Wisesa Tbk. was advised by Aikawa Iron Works several times during the monitoring
period for the adjustment, replacement and improvement of the project OCC line, in
accordance with the Agreement signed on 28/08/2015.

Hence, it is concluded that the project meets Criterion 4 with a satisfactory result during
the monitoring period.
Regarding Criterion 4, JQA raised CL 03 and this issue was resolved as explained in “Findings”.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
< CL 03 >Regarding the Criterion 4 , the PP is requested to provide the records on the advice andmaintenance/replacement for the stable operation of the OCC Line 8 during the monitoring
period,< Resolution of CL 03 by the PPs >Following information is provided by the PPs:
The Aikawa Iron Works’ staff members have visited several times to check and to recommend
possible improvement and replacement, if any, of the machine operation.

No specificrecommendations was made which requires improvement and replacement of the OCC Line 8.
It is confirmed through the review of the maintenance records and the interview with the PPs
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that the OCC Line 8 has been appropriately operated and maintained during the monitoring
period under Aikawa’s advice and support. Thus, CL 03 is closed.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the implementation and the operation of the proposed project are incompliance with four eligibility criteria of the applied methodology ID_AM012 during thismonitoring period.

C.2. Assessment of the project implementation against the registered PDD or any approved
revised PDD<Means of verification>
JQA has assessed the status of the actual project and its operation with the registered PDD
through the review of the relevant documents, on-site inspection and interviews with the PPs.
The project is implemented by the project participants of PT. Fajar Surya Wisesa Tbk. from
Republic of Indonesia and Kanematsu Corporation from Japan.
The assessment results are summarized as follows;[Physical features of the project]
PT. Fajar Surya Wisesa Tbk., who is one of the leading companies of corrugated carton
production in Indonesia, has introduced higher energy-efficient paper recycle technology from
Aikawa Iron Works Co., Ltd. into an OCC line (Line 8) newly installed as a JCM project inorder to reduce electricity consumption in the OCC process.

The new technology provides

less electricity consumption in the operation of the OCC line (Line 8) compared to the existing
OCC line (Line 5).
19/12/2017.

The commissioning of the project equipment was completed on

The installation of these equipment complies with the description of theregistered PDD.
JQA confirms through the on-site inspection for the first verification that the physicalfeatures of the project are in place and the PPs have implemented the project as per theregistered PDD.
[Monitoring points]
Two monitoring parameters described below are measured by weight bridge and electricity
meter, respectively, in accordance with the monitoring plan.

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1.

PPj,p : Paper production measured at the PM line j during the period p [ton/p]2.

ECPJ,j,p : Electricity consumption by the project OCC line j during the period p [MWh/p]
It is confirmed through the on-site inspection and interview with the PPs that the weight

bridge has been installed at the end of the PM line to measure paper production weight andelectricity meter has been installed to measure electricity consumption from pulper andcoarse/fine screens in the OCC line 8. These two measuring equipment are located at the rightposition, respectively.
The paper production weight and electricity consumption are monitored hourly andrecorded monthly for aggregation. Measured data is automatically transmitted to the serverand double-checked by a responsible staff on a monthly basis to prevent the missing of data.
Detailed information on the monitoring data of these parameters is described in Section C.4.
[Monitoring structure]
The monitoring structure has been established and the roles and responsibilities of thepersonnel are consistent with the description in Monitoring Structure Sheet.

The staff training

for operation, monitoring and maintenance of the system was conducted intermittently during
the period of March - August 2017.
It is confirmed through the review of relevant documents and the interview with the PPsthat the monitoring activity has been appropriately implemented during the monitoring period,in line with the monitoring plan of the registered PDD.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was identified.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the project has been implemented in accordance with the registered
PDD during the monitoring period, and no changes are found from the description of theregistered PDD.

C.3. Compliance of calibration frequency and correction of measured values with related
requirements<Means of verification>
The measuring equipment used in the project activity is weight bridge (Toledo Model7

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IND331 Digital Indicator) made by Mettler and electricity meter (PowerLogicTM PM5300)
made by Schneider Electric.
The weight bridge is calibrated yearly by Government of Karawang, Industrial and Trade
Service, Regional Technical Implementation Unit for Metrology Legal, in compliance withinternational recommendation OIML R 76-1:2002. The additional calibration of electricity
meter is not required according to the manufacturer's specification, as described in the MPS.
It is confirmed through the review of calibration certificates that the weight bridge has beencalibrated annually during the monitoring period, in accordance with the international
recommendation.

Electricity meter does not require additional calibration after installation as

specified by the manufacturer’s specification.
Regarding the calibration of weight bridge, JQA raised CL 04 and this issue was resolved
as explained in “Findings”.

<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
< CL 04 >The PP is requested to provide the calibration certificate of weight bridge during themonitoring period.
< Resolution of CL 04 by the PPs >The calibration certificates of the weight bridge on 22/08/2017, 04/11/2017 and27/11/2018 were provided by the PPs.

It is confirmed through the review of the calibration

certificates that the first calibration of the weight bridge was delayed and conducted by
UPTD Metrologi Legal under Industry, Trade, Mining and Energy Agency of Karawang
District Government on 22/08/2017 after the operation of OCC Line 8 since 01/07/ 2017.
As the error of the weight bridge stayed within ±5% in the result of the first calibration, themeasured values of the paper production weight during the period of 01/07/2017 21/08/2017 were applied without correction in the calculation of emission reductions,according to the paragraph 40 (a) of JCM Guidelines for Developing Project Design
Document and Monitoring Report (JCM_ID_GL_PDD_MR_ver03.0). Thus, CL 04 is
closed.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the weight bridge has been calibrated annually after the firstcalibration by a qualified entity and its calibration frequency is in compliance with the8JCM_ID_F_Vrf_Rep_ver01.1

international recommendation OIML R 76-1:2002. No correction of the measured values
during the period of 01/07/2017 – 21/08/2017 is required for the delayed calibration.

C.4. Assessment of data and calculation of GHG emission reductions<Means of verification>
JQA has assessed the data and calculation of GHG emission reductions achieved by the
project activity as follows:(a) The corresponding Monitoring Report Sheet of the applied methodology has been used;
Through the review of the monitoring report for the project which is titled as JCM_
ID011_MP-rev4 211218.xlsx, it is confirmed that the Monitoring Report Sheets (MRS(input)
2017(7-12), MRS(calc_process) 2017(7-12), MRS(input) 2018(1-8) and MRS(calc_process)2018(1-8)) of applied methodology ID_AM012 are appropriately used.
(b) A complete set of data for the monitoring period for all parameters monitored ex post wasprovided to the verification team in the form of several kinds of files.
Monitoring Report Sheet (MRS) provided by the PPs contains a complete set of themonitored data on paper production weight and electricity consumption during themonitoring period of 01/07/2017 - 31/08/2018. These data are separately provided for eachyear of 2017 and 2018. It is confirmed through the review of these monitored data that the
paper production weight and electricity consumption are fully provided for the monitoring
period.
(c) Information provided in the monitoring report has been checked with sources such as plant
logbooks, inventories, purchase records, laboratory analysis;
JQA has reviewed the correctness of monitored data given in the MRS for paper production
weight and electricity consumption through cross-checking them with the monthly data
provided by the PPs.
Parameters
PPj,pMonitored values

Method to check values in the monitoring report with

109,777.0 (2017)sources
The value of paper production weight in the MRS iscross-checked with monthly data which aggregates thedaily data downloaded from the server.

172,090.0 (2018)
ECPJ,j,p11,914.2 (2017)

The value of electricity consumption in the MRS iscross-checked with monthly data downloaded from the9

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16,775.8 (2018)server.

It is confirmed through the cross-check of the monitored data in the MRS with the monthly
data that the values of paper production weight and electricity consumption in the MRS are
fully consistent with the sum of their monthly data, and reference emissions (REj,p), projectemissions (PEj,p) and emission reductions (ERj,p) in the MRS are correctly calculated.
(d) Any assumptions used in emission calculations have been justified;Through the review of the MRS and the interview with the PPs, it is confirmed that noassumption has been used in the calculations of emission reductions and hence no justificationis required.
(e) Appropriate emission factors, default values, and other reference values have been correctly
applied.
Through the review of the MRS and the interview with the PPs, it is confirmed that CO2
emission factor for consumed electricity (EFelec) and reference specific electricity consumptionof the OCC line (SECRE), which were determined at the time of validation and provided in the
MPS, have been correctly applied in the calculation of reference emissions.
The data monitored and required for verification and issuance is to be kept and archived
electronically for two years after the final issuance of credits.
Regarding the description in Table 1 of MRS and the difference in the emission reductions
between the ex-ante and ex-post values, JQA raised CL 01 and CL 02 and these issues wereresolved as explained in “Findings”.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
< CL 01 >Following description in Table 1 of MRS is not appropriate:
1) "The estimated value below is annual one" in (i) Monitoring frequency of Table 1 for PPj,pand ECPJ,j,p,2)"In case a calibration certificate issued by an entity accredited under national/

international standards is not provided, such measuring equipment is required to be calibrated"in (h) Measurement methods and procedures of Table 1 for ECPJ,j,p, because electricity meter
does not require additional calibration as specified in the specs in “(j) Other comments”.

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JCM_ID_F_Vrf_Rep_ver01.1< Resolution of CL 01 by the PPs >The PPs has submitted the revised MRS so as to keep consistency.

It is confirmed throughthe review of the revised MRS that the MRS is appropriately revised. Thus, CL 01 is closed.
< CL 02 >The PP is requested to explain the difference in the emission reductions between the exante and ex-post values.
< Resolution of CL 02 by the PPs >Following information is provided by the PPs:
The difference between real/dynamic market and expectation at the time of PDD development
caused the difference of the ex-ante and ex-post values. The largest contribution comes fromthe shift to the production of lighter papers driven by Chinese market.

It is confirmed throughthe relevant document and the interview with the PPs that PT. Fajar Surya Wisesa Tbk.
produces three kinds of corrugating medium paper and the higher density paper with a basic
weight of 123-127 g/m2 is made by the OCC Line 5 which was used for the calculation of thereference specific electricity consumption of the OCC Line 5 (SECRE) at the time of thevalidation.

Due to the recent change of market circumstances, mainly driven by Chinese

market, the demand on the lighter papers with a basic weight of 93-97 g/m2 is increased. Thischange led to the reduction of paper production weight and electricity consumption comparedto their ex- ante estimates and accordingly caused the lower emission reductions by about 20%
than the ex-ante value. Thus, CL 02 is closed.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the monitored data and the project-specific parameters fixed ex-ante
are appropriately and correctly applied in the calculation of GHG emission reductions achievedby the project activity, in accordance with the applied methodology ID_AM012 and themonitoring plan of the registered PDD.

C.5. Assessment of avoidance of double registration<Means of verification>
It is confirmed that a written confirmation from the PPs regarding no registration under otherinternational climate mitigation mechanisms was provided at the time of validation and thedeclaration letter signed by the PP’s representative in the MoC was submitted to the Joint
Committee.

In addition, it is re-confirmed through the check of the relevant website and the11

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interview with PPs that the project has not been registered under any other mechanisms at thetime of verification.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issues was identified.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the project has not been registered under other international climate
mitigation mechanisms.

C.6. Post registration changes<Means of verification>
It is confirmed through the review of documents and the on-site assessment that the project
has not been changed from the registered PDD and/or methodology.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was identified.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the project has not been changed from the registered PDD and/or
methodology.

D. Assessment of response to remaining issues
An assessment of response to the remaining issues including FARs from the validation and/or
previous verification period, if appropriate
No issues including FAR from the validation are remained. As this is the first verification,
no issues from the previous verification are also remained.

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E. Verified amount of emission reductions achieved
Year
2013

Verified
Reference Verified Project Emissions Verified
Emission
Emissions (tCO2e)(tCO2e)Reductions (tCO2e)
-

2014

-

-

-

2015

-

-

-

2016

-

-

-

2017

13,742.5

7,934.8

5,807

2018

21,543.2

11,172.7

10,370

2019

-

-

-

2020

-

-

-

Total (tCO2e)
Note:

16,177The verified emission reductions in each year are rounded down after the decimal point.

F. List of interviewees and documents received
F.1. List of interviewees- Mr. Wimba Wibawa Wanadiardja

Director, PT. Fajar Surya Wisesa Tbk.

- Mr. Marco Hardy

Finance Manager, PT. Fajar Surya Wisesa Tbk.

- Mr. Shandy Koeswanto

Corporate Finance, PT. Fajar Surya Wisesa Tbk.

- Ms. Marsha

Finance, PT. Fajar Surya Wisesa Tbk.

- Mr. Muhammad Taufiq

Head, Electrical & Instrument Department, PT. Fajar Surya
Wisesa Tbk.

- Mr. Naoki Matsuo

Senior Fellow, Institute for Global Environmental Strategies(IGES)

F.2. List of documents received
1. JCM Project Design Document (ID011) _ver1.2, 27/11/2017
2. JCM Validation Report (ID011), 29/11/2017
3.

Monitoring Spreadsheet: JCM_ID011_MP-rev4 211218.xlsx (Monitoring period:
01/07/2017 - 31/08/2018)

4. JCM Modalities of Communication Statement Form (ID011) (JCM_ID_F_MoC_
ver01.0)
5. JCM Approved Methodology JCM_ID_AM012_ver1.0
6. JCM Glossary of Terms (JCM_ID_Glossary_ver02.0)
7. JCM Project Cycle Procedure (JCM_ID_PCP_ver05.0)
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8. JCM Guidelines for Developing Project Design Document and Monitoring Report(JCM_ID_GL_PDD_MR_ver03.0)
9. JCM Guidelines for Validation and Verification (JCM_ID_GL_VV_ver01.0)
10. JCM Verification Report Form (JCM_ID_F_Vrf_Rep_ver01.1)
11. Monthly data report of electricity consumption for OCC Line 8 during the monitoring
period (01/07/2017 - 31/08/2018)12. Monthly data report of paper production weight by PM Line during the monitoring
period (01/07/2017 - 31/08/2018)13. Daily data of paper production weight during the monitoring period
14. Project specific energy consumption of OCC Line 8 during the monitoring period(Criterion 1)
15. Paper yield of the project OCC Line 8 during the monitoring period (Criterion 2)
16. Project production capacity of the OCC Line 8 during the monitoring period(Criterion 3)
17-1. Maintenance records of the OCC Line 8 (Criterion 4)
17-2. Workflow Procedure for Preventive Maintenance
18. Checklist for inspection and maintenance of OCC Line 8
19. Records and materials of operational staff training including attendee list
20. Schematic diagram of monitoring structure including information/ data flow for project
activity
21. Specification of electricity meter installed at the monitoring point 2
22. Specification of weight bridge installed at the monitoring point 1
23. International Recommendation OIML R 76-1:2006, Part 1- Metrological and technicalrequirements – Tests
24. Calibration certificate of weight bridge dated 22/08/2017, 04/11/2017 and 27/11/2018
25. Specification of corrugating medium paper produced by PT. Fajar Surya Wisesa Tbk.

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Annex Certificates or curricula vitae of TPE’s verification team members, technicalexperts and internal technical reviewers
Please attach certificates or curricula vitae of TPE’s validation team members, technical experts
and internal technical reviewers.
Statement of competence
Name:

Dr. Tadashi Yoshida

Qualified and authorized by Japan Quality Assurance Organization.

Function
Date of qualification
Validator

2014/12/22

Verifier

2014/12/22

Team leader

2014/12/22

Technical area within sectoral scopes
Date of qualification
TA 1.1. Thermal energy generation

2014/12/22

TA 1.2. Renewables

2014/12/22

TA 3.1. Energy demand

2014/12/22

TA 4.1. Cement and lime production

2015/11/12

TA 4.6. Other manufacturing industries

2014/12/22

TA 5.1. Chemical industry

2014/12/22

TA 10.1. Fugitive emissions from oil and gas

2014/12/22

TA 13.1. Solid waste and wastewater

2014/12/22

TA 14.1. Afforestation and reforestation-

Statement of competence
Name:

Mr. Hiroshi Motokawa

Qualified and authorized by Japan Quality Assurance Organization.

Function
Date of qualification
Validator

2014/12/22

Verifier

2014/12/22

Team leader

2014/12/22

Technical area within sectoral scopes
Date of qualification
TA 1.1. Thermal energy generation

2014/12/22

TA 1.2. Renewables

2014/12/22

TA 3.1. Energy demand

2014/12/22

TA 4.1. Cement and lime production

2014/12/22

TA 4.6. Other manufacturing industries

2014/12/22

TA 5.1. Chemical industry
TA 10.1. Fugitive emissions from oil and gas
TA 13.1. Solid waste and wastewater
TA 14.1. Afforestation and reforestation

2014/12/22-

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