JCM_ID_F_Val_Rep_ver01.0

JCM Validation Report Form
A. Summary of validation
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

ID 011

Third-party entity (TPE)

Japan Quality Assurance Organization (JQA)

Project participant contracting the TPE

KANEMATSU CORPORATION

Date of completion of this report

29/11/2017

A.2 Conclusion of validation
Overall validation opinion

Positive
Negative

A.3. Overview of final validation conclusion
Only when all of the checkboxes are checked, overall validation opinion is positive.
Item
Validation requirements
No CAR or CL
remaining
Project design The TPE determines whether the PDD was completed using
document form
the latest version of the PDD forms appropriate to the typeof project and drafted in line with the Guidelines forDeveloping the Joint Crediting Mechanism (JCM) Project
Design Document, Monitoring Plan and Monitoring Report.
Project
The description of the proposed JCM project in the PDD is
description
accurate, complete, and provides comprehension of the
proposed JCM project.
Application of The project is eligible for applying applied methodology andapproved JCM that the applied version is valid at the time of submission of
methodology
the proposed JCM project for validation.
(ies)
Emission
All relevant GHG emission sources covered in thesourcesand methodology are addressed for the purpose of calculating
calculationof project emissions and reference emissions for the proposedemission
JCM project.
reductions
The values for project specific parameters to be fixed ex ante
listed in the Monitoring Plan Sheet are appropriate, if
applicable.
Environmental
The project participants conducted an environmental impact
impactassessment, if required by the Republic of Indonesia, in line
assessmentwith Indonesia’s procedures.
Local
The project participants have completed a local stakeholder
stakeholder
consultation process and that due steps were taken to engage
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B. Validation team and other experts

Name

Company

Function*

Mr.
Tadashi
JQA
Team leader
Ms.
YoshidaMr.
Koichiro
Technical
JQA
Ms.
Tanabe
Reviewer
Mr.
Ms.
Mr.
Ms.
Please specify the following for each item.

Schemecompetence*

Technical
competence*On-sitevisit

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 validation, findings, and conclusion based on reporting requirements
C.1. Project design document form
<Means of validation>
The PDD form was checked and confirmed as complete in accordance with the JCM
Guidelines for Developing Project Design Document and Monitoring Report (JCM_ID_GL_
PDD_MR_ver02.1).

A valid form of the JCM PDD form (JCM_ID_F_PDD_ver01.1) is used

for the PDD of the proposed project (Version 0.1 dated 13/02/2017 for Initial draft and Version
1.2 dated 27/11/2017 for the final PDD). The validation was conducted on the initial draft of
the PDD.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issues were identified to the requirement.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the PDD is completed using the latest version of the PDD form anddrafted in line with the JCM Guidelines for Developing the JCM Project Design Document,
Monitoring Plan and Monitoring Report.

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C.2. Project description<Means of validation>
The purpose of the proposed project is to reduce CO2 emissions from electricity
consumption in the corrugated carton process of the packaging paper factory.

The cardboad

making process consists of mainly corrugated carton process (OCC process) and sheet forming
process (PM process).

In the proposed project, to achieve the reduction of electricity

consumption in the OCC process per unit of paper production, PT Fajar Surya Wisesa Tbk,
which is located in Cikarang Bar, Indonesia and is one of the leading companies of corrugatedcarton production in Indonesia, has decided to introduce higher energy-efficient technology
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
compared to the existing OCC line (Line 5) which is similar to Line 8 in the product.
In the OCC process consisting of four main components, the recycled waste paper is firstliquefied with water by the use of pulper where the foreign substances such as plastics andothers are removed, and then followed by the coarse/fine screen processes to remove small
amounts of impurities from the material of paper sheet supplied to the next PM process.

Thus,

the installation of new pulper and coarse/fine screens with higher efficiency contributes to thegreat reduction of electricity consumption in the OCC line and the annual emission reductionsof 19,011 tCO2/yr would be achieved by the proposed JCM project.
The project is implemented by PT Fajar Surya Wisesa Tbk. from the Republic of Indonesia
and Kanematsu Corporation from Japan.

The commissioning date of project facilities was

19/12/2016, which is supported by Start-Up Certificate signed by PT Fajar Surya Wisesa Tbk.
and Kanematsu Corporation, and the starting date of the project monitoring activity was
01/04/2017, which is confirmed by the monitoring data collected from this date.

The

expected operational lifetime of the project is 12 years which is based on the legal durable years
list issued by Ministry of Finance, Japan.
The project is partially supported by the Ministry of the Environment, Japan (MOEJ)
through the Financing programme for JCM Model projects, which provided financial supportof less than half of the initial investment for the projects in order to acquire JCM credits.

Asfor technology transfer, Aikawa Iron Works Co., Ltd. has conducted OJT training on theoperation and maintenance of newly installed equipments at the project site.

The maintenanceservice after project operation start will be provided by Aikawa Iron Works Co., Ltd.

It also

contributes to technical transfer to the staff of PT Fajar Surya Wisesa Tbk. through maintenanceexperiences.
JQA has assessed the revised PDD and the supporting documents and conducted an on-site
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inspection to validate the requirements about accuracy and completeness of the projectdescription.

The details of the persons interviewed and documents reviewed are provided in

Section E of this report.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was raised to the requirement.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the description of the proposed JCM project in the revised PDD
complies with the supporting documents and information obtained through the on-site visit andthe interview with the PPs, and the description contained in the PDD is accurate, complete, andprovides comprehension of the proposed JCM project.

C.3. Application of approved methodology(ies)<Means of validation>
The approved methodology JCM_ID_AM012_ver01.0 "Reduction of Energy Consumption
by Introducing an Energy-Efficient Old Corrugated Carton Processing System into a Cardboard
Factory, Version 1.0" is applied to the proposed project.

The methodology is approved by the

JC on 20/02/2017 (JC6, Annex 5) and valid at the time of the validation.
JQA assessed whether the selected methodology was applicable to the proposed project.
The project applicability was checked against four eligibility criteria contained in the approved
methodology.

The steps taken to validate each eligibility criterion and the conclusion about

its applicability to the proposed project are summarized as follows:
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.
Justification in the PDD : Project specific energy consumption of Line 8 (0.120 MWh/ton for
1,400 ton/day) expected by Aikawa Iron Works is less than historical performance of Line 5(0.188 MWh/ton) which produces equivalent product.

[Note: ton implies BDt (Bone dry ton)]

Assessment and conclusion : It is confirmed through the review of the relevant documents
provided by Aikawa Iron Works and the on-site inspection that the sum of the rated electricity
consumption of equipments newly installed for the OCC Line 8 is 6,992.8 kW (6.993 MW)
and the yield of daily paper production of Line 8 is 1,400 ton/day.
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Hence, the project specificJCM_ID_F_Val_Rep_ver01.0

energy consumption of Line 8 gives 0.120 kWh/ton- paper production (= 6.993 MW x 24
hr/1,400 ton).

This value is less than 0.188 MWh/ton of the reference OCC Line 5 which

produces the similar paper product with Line 8.
Regarding the energy saving effect of Line 8 and the determination of reference specificelectricity consumption, JQA raised CL 01 and CL 02 and these issues were resolved as
explained in "Findings".
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.
Justification in the PDD : The guaranteed paper yield is 92% in the project OCC Line 8 asshown in "6.4.4.2. Fiber Loss Amount" of the "Technical guarantees" provided by Aikawa Iron
Works.
Assessment and conclusion : It is confirmed through the review of the technical specification
provided by Aikawa Iron Works, on-site inspection and the interview with the PPs that Line 8
guarantees the paper yield of more than 92% from the waste paper feedstock except the foreign
substanstances such as plastics. Therefore, JQA concludes that the Criterion 2 is satisfied.
Criterion 3 : Production capacity of the project OCC line is no more than the twice as large
as the capacity of the existing OCC line.
Justification in the PDD : Project capacity of the OCC line (1,400 ton/day) is less than thetwice as large as 1,150 ton/day, which is the maximum capacity of existing OCC Line 5 which
produces equivalent product.
Assessment and conclusion : It is confirmed through the review of technical specification
provided by Aikawa Iron Works, on-site inspection and the interview with the PPs that the
paper production capacity of Line 8 is 1,400 ton/day and the maximum capacity of the existing
OCC Line 5 is 1,150 ton/day.
the capacity of Line 5.
Criterion 4 :Thus, the capacity of Line 8 is less than the twice as large as

Therefore, JQA concludes that the Criterion 3 is satisfied.

Plan for regular adjustment, replacement, and improvement of project OCCline(s) are prepared (at least once every six months).
Justification in the PDD :Aikawa Iron Works agreed with Fajar to give the appropriate

advices for the stable operation of the Line 8 every 3 months with the visit at least every 6months (Agreement signed on August 28, 2015).
Assessment and conclusion : Under the contract (Contract No. 3200003832 dated 28/08/2015)
between PT Fajar Surya Wisesa Tbk and Kanematsu Corporation for Line 8, Aikawa Iron
Works Co., Ltd. and PT Fajar Surya Wisesa Tbk made agreement on 28/08/2015 that Aikawa
Iron Works Co., Ltd. visits PT Fajar Surya Wisesa Tbk with a target frequency of once per 3
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months to give the appropriate advices for the stable operational performance and parts
replacement based on the equipment's inspections of Line 8.

The frequency of the visit could

be as many as at least once per six months and this Agreement is effective for the period of 12
years from the date indicated on the Start-up Certificate of Line 8 (i.e., 19/12/2016).

It isconfirmed through the review of these documents and the interview with the PPs that the plan
for regular adjustment, replacement and improvement of Line 8 is prepared.
Regarding the service plan for the project OCC line, JQA raised CL 03 and this issue wasresolved as explained in "Findings".
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
CL 01
As for Criterion 1, project specific energy consumption of Line 8 gives energy saving of
36% (= (0.188-0.120)/ 0.188 x 100), which is much larger than the target value of 10%.

This

inconsistency is to be clarified.
Resolution of CL 01 by the PPs :The description in A.2 of the PDD is clarified to avoid confusion due to the different
definition of "reductions".

It is confirmed through the review of the relevant documents andthe interview with the PPs that the project specific electricity consumption of Line 8 (0.120
MWh/ton) for a capacity of 1,400 ton/day is guaranteed by Aikawa Iron Works Co., Ltd. andthis value is apparently less than the historical performance of Line 5 (0.188 MWh/ton) which
produces the equivalent product with Line 8.

The operation of the highly efficient OCC line

would contribute to the large reductions in the emission reductions.

Thus, CL 01 is closed.

CL 02
As for Criterion 1, the reference specific electricity consumption based on data of Line 5(SEC_RE) is calculated using the data of electricity consumption and paper production in 20132014. The PPs are requested to justify the use of 2013-2014 data of Line 5 in accordance withthe requiement in the methodology ID_AM012_ver01.0.
Resolution of CL 02 by the PPs :The calculation of SEC_RE is revised based on the data of 2016. The result is almost thesame as that of 2013-2014.

It is confirmed through the review of the 2016 data from Line 5,in accordance with the requirement of the methodology ID_AM012_ver01.0, that the recalculated reference specific electricity consumption of the OCC Line 5 is 0.188 MWh/ton.
Thus, CL 02 is closed.
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CL 03
As for Criterion 4, the PPs are requested to provide the plan for regular adjustment,
replacement, and improvements of the project OCC line(s).
Resolution of CL 03 by the PPs:
Aikawa Iron Works Co., Ltd. agreed with PT Fajar Surya Wisesa Tbk to give theappropriate advices for the stable operation of Line 8 every three months with the visit at least
every six months (Agreement signed on 28/08/2015).

It is confirmed through the review of

the Agreement (Contract No. 3200003882 B) and the interview with the PPs that the plan forregular adjustment, replacement and improvements of the project OCC Line 8 was preparedthrough the agreement between Aikawa Iron Works Co., Ltd. and PT Fajar Surya Wisesa Tbk
on 28/08/2015. Thus, CL 03 is closed.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the proposed project is eligible for applying the valid version of theapproved methodology ID_AM012_ver01.0 and all eligibility criteria have been met by the
proposed JCM project.

C.4. Emission sources and calculation of emission reductions<Means of validation>
The proposed project aims to reduce the electricity consumption from the OCC line in thecorrugated carton production process by introducing higher energy efficient technologies.
The sources of GHG emissions are electricity consumption by the reference OCC line and the
project OCC line.

The annual electricity consumption by the project OCC line (Line 8) is

estimated to be 50,400 MWh for the paper production of 420,000 ton/yr.

There is captive

power generators using natural gas on-site to supply electricity continuously to a packaging
paper factory of PT Fajar Surya Wisesa Tbk. The gross heat rate of the generator is 11,660
kJ/kWh which is sourced from the manufacturer's specification.

The proposed project

consumes electricity from both the captive power plant and the grid (JAMALI grid system),and the ratio of electricity consumption from the captive power plant and the grid is 87.5% and12.5%, respectively, based on the data in 2014.
The CO2 emission factor of the grid electricity is determined as 0.903 tCO2/MWh (expost) based on the latest data (2015), sourced from "Emission Factors of Electricity
Interconnection Systems" published by National Committee on CDM Indonesian Designated8

JCM_ID_F_Val_Rep_ver01.0

National Authority (DNA), based on data obtained by Directorate General of Electricity,
Ministry of Energy and Mineral Resources, Indonesia.

The CO2 emission factor of thecaptive power plant using natural gas is determined as 0.633 tCO2/MWh (= 11,660 kJ/kWh x
54.3 tCO2/TJ x 10^-6), based on the manufacturer's specification and the 2006 IPCC lower
value for emission factor of natural gas. Therefore, the combined CO2 emission factor ofelectricity consumed by the proposed project is determined to be 0.666 tCO2/MWh (= (0.903
x 0.125) + (0.633 x 0.875)).
The reference specific electricity consumption of the OCC line (SEC_RE) which is
calculated ex-ante by using the historical data (more than 300 data sets) of the existing OCC
Line 5 in 2016 is correctly determined to be 0.188 MWh/ton in accordance with therequirements of the approved methodology.
The GHG emission reductions during the period p are calculated by the following
equations, in line with the approved methodology:
ERp = REp - PEp= ∑( EC_RE,j,p x EF_elec } - Σ( EC_PJ,j,p x EF_elec )= ∑( SEC_RE x PP_j,p x EF_elec ) - ∑(EC_PJ,j,p x EF_elec)
The annual GHG emission reductions are calculated from the reference specific electricity
consumption (SEC_RE) of the existing OCC Line 5, weight of paper production (PP_j,p),electricity consumption of the new OCC Line 8 (EC_PJ,j,p) and combined CO2 emission factorof electricity consumed (EF_elec).

The annual emission reductions are calculated as follows:

ERp = (0.188 MWh/ton x 420,000 ton/yr x 0.666 tCO2/MWh) - (50,400 MWh/yr x 0.666
tCO2/MWh)= 52,578.0 - 33,566.4= 19011.6 tCO2/yr
The proposed project was commissioned on 19/12/2016 and started monitoring activity on
01/04/2017 after test operation.

The GHG emission reductions in 2017 are estimated to be

14,258 tCO2 and the sum of the emission reductions up to 2020 is estimated to be 71,291 tCO2.
It is confirmed through the review of relevant documents and on-site inspection that all
GHG emission sources specified by the applied methodology are identified, and the reference
emissions, project emissions and emission reductions in the PDD_(ver.1.2) and Monitoring
Plan Sheet are correctly calculated, in accordance with the methodology ID_AM012.ver01.0.
Regarding the parameters to be provided in MPS, JQA raised CAR 04 and this issue wasresolved as explained in "Findings".
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
CAR 049

JCM_ID_F_Val_Rep_ver01.0

The parameters necessary to calculate the reference and project emissions such as SEC_RE,
PP_j,p, EF_elec, EC_PJ.j.p, are not provided in the cell of MPS (calc_process) sheet.
Resolution of CAR 04 by the PPs :The sheet of MPS (calc_process) is protected and does not allow the users to edit them, justreferring the results from the previous sheet.

It is confirmed through the review of the MPS

approved by the Joint Committee that the sheet is protected not to edit by the users.

Thus,

CAR 04 is closed.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that all relevant GHG emission sources covered in the approved
methodology are addressed for the purpose of calculating project emissions, reference
emissions and emission reductions for the proposed JCM project and the values for the project
specific parameters to be fixed ex-ante listed in the Monitoring Plan Sheet are correctly
determined.

C.5. Environmental impact assessment<Means of validation>
The proposed project introduces an energy-efficient waste paper processing system into a
packaging paper factory to reduce electricity consumption by the OCC line in a corrugatedcarton production process.

The PDD states that an environmental impact assessment isrequired by laws of the host country.

According to Environmental Protection andManagement Act (EPMA) No.32/2009, there are three categories of environmental
management and reporting, depending on the significance of the environmental impacts ofproject activity, i.e. AMDAL (Environmental Impact Assessment), UKL/UPL (Environmental
Management and Monitoring) and SPPL (Statement and Management Capability).
The proposed project is classified into UKL/UPL because of no significant impacts on theenvironment.

The UKL/UPL report was submitted to Environmental Management Bureau ofBekasi local government by PT Fajar Surya Wisesa Tbk on 29/01/2015 and approved
with approval letter (660.2.1./084/TL&ADL/BPLH) on 01/04/2015.

In addition , the PPs got

Environmental Permit (503.9.a/Kep 127/BPMPPT/V/2015) from Investment Board andIntegrated Licensing Services of Government of Bekasi Regency on 06/05/2015, under theGovernment regulation of No. 27/2012.
It is confirmed through the review of the relevant documents and the interview with thePPs that the proposed project has no significant impacts on the environment and therefore
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JCM_ID_F_Val_Rep_ver01.0

UKL/UPL report was successfully approved by the local government.
Regarding the conclusion of environmental assessment, Jqa raised CAR 01 and this issue
was resolved as explained in "Findings".
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
CAR 01
The conclusion of environmental assessment shall be attached in case the PPs selected"Yes", in accordance with the Guideline of the PDD.
Resolution of CAR 01 by the PPs:
In addition to the EIA (UKL-UPL) obtained in 2015 (660.2.1/084/TL&ADL/BPLH), Fajar
owns the Environmental Permit (Nomor: 503.9.a/Kep 127/ BPMPPT/V/2015).

EIA (UKL-

UPL) is governed by the Indonesian Law Number 32 (2009).

While the Environmental

Permit is governed by Government Regulation Number 27 (2012).

Both the Permit and EIA

complement each other.

It is confirmed through the review of the relevant documents andthe interview with the PPs that the proposed project has no significant impacts on theenvironment and therefore the UKL/UPL report was approved by the local government on
01/04/2015.

In addition to this, Environmental Permit was issued by the local authority on

06/05/2015.

Thus, CAR 01 is closed.

<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the PPs have conducted an environmental impact assessment(UKL/UPL) and got the approval and permit from the local authorities, in line with proceduresas required by the Republic of Indonesia.

C.6. Local stakeholder consultation<Means of validation>
The PPs conducted a local stakeholder consultation under an environmental impact
assessment at the mill site of PT Fajar Surya Wisesa Tbk on 20/12/2016.

Prior to the meeting,the opening notice of the local stakeholder consultation was distributed to the stakeholders.
The name of the organization participated in the consultation are as follows:- JCM Secretariat of Indonesia- Coordinating Ministry of Economic Affairs- Ministry of Industry11

JCM_ID_F_Val_Rep_ver01.0- Indonesian Pulp and Paper Association- PT Fajar Surya Wisesa Tbk- Kanematsu Corporation- AAikawa Iron Works Co., Ltd.
- Nomura Research Institute- SUNCOSMOAs there is no residence near the area where any environmental impact could be caused by
the proposed project, the representative of the residents is not included in the participants.
The local stakeholders provided positive comments for the proposed project.

No negative

issues that require actions to be taken by the PPs were raised through the consultation.

It isconfirmed through the review of the relevant documents and the interview with the PPs thatthe stakeholder consultation process was appropriately conducted to collect stakeholders’opinions about the project.

The summary of the comments received in the consultation anddue account of all comments taken by the PPs are fully described in the PDD.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was identified to the requirement.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the PPs have completed a local stakeholder consultation process under
an environmental impact assessment and invited comments on the proposed project from thelocal stakeholders.

The summary of the comments received is provided in the PDD in acomplete manner and the PPs have taken due account of all the comments received anddescribed this process in the PDD.

C.7. Monitoring<Means of validation>
The description of the monitoring plan (Monitoring Plan Sheet and Monitoring Structure
Sheet) is based on the approved methodology ID_AM012_ver01.0.

Two monitoring

parameters, i.e., paper production weight measured at the PM line connected to the project
OCC line j during the period p (PP_j,p) and electricity consumption by the project OCC line jduring the period p (EC_PJ,j,p), are measured by the weight bridge and electricity meter,
respectively, and the measured data is automatically transmitted to the remote server/PC forrecording.

The monitoring point is located at the end of the PM line for paper production
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weight and at the end of the OCC line for electricity consumption of pulper, coarse/fine screen
processes, respectively.
The paper production weight and electricity consumption are monitored hourly andrecorded monthly for aggregation and the data recorded is double-checked by a responsible
staff on a monthly basis to prevent the missing of data. The weight bridge is calibrated by aqualified entity (Government of Karawang, Industrial and Trade Service, Regional Technical
Implementation Unit for Metrology Legal) every year in compliance with international
recommendation OIML R 76-1:2002.

In case a calibration certificate issued by an entity

accredited under national/ international standards is not provided at the time of verification, theweight bridge is required to be calibrated.

The periodic calibration of electricity meter,

except a test for shipping, is not required according to the manufacturer's specification.
The data monitored and required for verification and issuance is kept and archived
electronically for two years after the final issuance of credits.
The roles and responsibilities of the personnels are described in Monitoring Structure Sheetin accordance with the requirements of the applied methodology.

The monitoring structure

consists of Project Director, Project Leader, Project Manager and Monitoring Manager.
Monitoring Manager is responsible for monitoring, collecting and archiving of data as well as
the calibration of the measuring equipment.

He reports the data to the Project Leader.

Project Leader is reported the monitored data from Monitoring Manager and is responsible forthe checking of the data. Project Manager is a point of contact related to all JCM inquiries,
including JCM Secretariat Indonesia.

He prepares the monitoring report.

It is confirmed through the review of the relevant documents and the interview with thePPs that the monitoring plan complies with the requirements of the approved methodology and
the PPs will be able to implement the monitoring activity appropriately according to themonitoring plan.
Regarding the calibration information of measuring equipment and the archiving procedureof data, JQA raised CAR 02 and CAR 03 and these issues were resolved as explained in"Findings".
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
CAR 02
Following issues are raised:
1) The PPs are requested to provide information on calibration frequency of electricity meter
and weight bridge in MPS, in accordance with the Guideline of the PDD (para. 31),
2) The PPs are requested to provide calibration certificate in case the electricity meter andweight bridge are already calibrated.
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Resolution of CAR 02 by the PPs :1) Weight bridge is to be calibrated annually in accordance with the international
recommendation OIML R 76-1:2006.

The electricity meter does not require additional

calibration as specified in the manufacturer's specification.
2) The calibration certificate of weight bridge in 2016 is provided.
It is confirmed through the review of the relevant documents and the interview with thePPs that the calibration of measuring equipment is conducted at the frequency specified in the
manufacturer's specification or international recommendation.

Thus, CAR 02 is closed.

CAR 03
The PPs are requested to describe archiving procedures of data in MPS in accordance with the
Guideline of the PDD (para. 28).
Resolution of CAR 03 by the PPs: It is mentioned in the MPS that "Compiled data is to be
stored electronically for 2 years after the end of the JCM project." It is confirmed through thereview of the MPS that the description on the archiving procedures is added in MPS, in
accordance with the PDD Guideline (para. 28). Thus, CAR 03 is closed.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the description of Monitoring Plan is based on the approved
methodology and Guidelines for Developing the JCM project design document (PDD) andMonitoring Plan, and the monitoring points as well as monitoring equipment for measurement
are also appropriate.

Thus, the PPs have demonstrated feasibility of the monitoring structure

and their abilities to implement the monitoring activity appropriately.

C.8. Modalities of Communication<Means of validation>
JQA obtained the MoC from the PPs on 16/08/2017 for review in which Kanematsu
Corporation is nominated as the focal point entity.

The form used is the latest version(JCM_ID_F_MoC_ver01.0) at the time of validation.

The MoC is signed by the authorized

representatives of all the PPs with the contact details on 23/06/2017.
JQA has checked the personal identities including specimen signatures and employment
status of the authorized signatories directly through the interview with the PPs during the sitevisit.

Primary authorized signaory of Kanematsu Corporation is Mr. Makoto Yokoshi,
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Manager of Industrial Machinery & Plant Section, Plant & Ships Department and Alternate
authorized signatory is Mr. Norio Asami, Assistant manager of the same department.

Primaryauthorized signatory of PT Fajar Surya Wisesa Tbk is Mr. Roy Teguh, Director and Alternate
authorized signatory is Mr. Marco Hardy, Finance manager.

It is confirmed that all corporate

and personal details including specimen signatures and the information contained in the MoC
are valid and accurate as requested in the JCM Guidelines for Validation and Verification.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was raised to the requirement.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the MoC is completed using the latest version of the form and theinformation and the specimen signature of the PPs contained in the MoC are correct andsufficient, in compliance with the requirements of the JCM Guidelines.

It is demonstrated

that the MoC has been correctly completed and dully authorized.

C.9. Avoidance of double registration<Means of validation>
The representative of focal point entity, Mr. Makoto Yokoshi, Manager of Industrial
Machinery & Plant Section, Plant & Ships Department of Kanematsu Corporation, declares in
the MoC that the proposed project is not registered under any other international climate
mitigation mechanism other than the JCM.

It is confirmed through the check of publicly

available information of Clean Development Mechanism (CDM), Verified Carbon Standard(VCS), etc. that the proposed project is not registered under any other international climate
mitigation mechanisms in terms of the name of entity, applied technology, scale and thelocation.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was raised to the requirement.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the proposed project is not registered under any other international15

JCM_ID_F_Val_Rep_ver01.0

climate mitigation mechanisms and hence will not result in double counting of GHG emission
reductions.

C.10. Start of operation<Means of validation>
For the proposed project, the machine commissioning was completed on 19/12/2016 asagreed between Kanematsu Corporation and PT Fajar Surya Wisesa Tbk in Start-Up
Certificate.

After completing the Accceptance Test, the proposed project started monitoring

activity on 01/04/2017.

Furthermore, the staff training for operation, monitoring andmaintenance of the system was conducted in June and August 2017. It is confirmed throughthe review of relevant documents, on-site inspection and the interview with the PPs that thestarting date of the proposed project given in the PDD, 01/04/2017, is correct and the staff
training for PT Fajar Surya Wisesa Tbk was appropriately implemented.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
No issue was raised to the requirement.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
JQA concludes that the starting date of project operation is 01/04/2017 and does not predate
01/01/2013 as required by the Guideline of the JCM project.

C.11. Other issues<Means of validation>
There is no issue.
<Findings>
Please state if CARs, CLs, or FARs are raised, and how they are resolved.
Not applicable.
<Conclusion based on reporting requirements>
Please state conclusion based on reporting requirements.
Not applicable.
16

JCM_ID_F_Val_Rep_ver01.0

D. Information on public inputs
D.1. Summary of public inputs
In line with the JCM Project Cycle Procedure, the PDD was made publicly available for 30days from 22/07/2017 to 20/08/2017 to invite public comments on the JCM website.
https://www.jcm.go.jp/id-jp/information/70
No public comments were received.

D.2. Summary of how inputs received have been taken into account by the project participants
Not applicable

E. List of interviewees and documents received
E.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

Mr. Sarwi

Health Safety & Environment Division, PT Fajar Surya
Wisesa Tbk

Mr. Naoki Matsuo

Senior Research Fellow, Climate Experts Ltd.

E.2. List of documents received- PDD, version 0.1 13/02/2017, version 1.0 18/09/2017, version 1.2 27/11/2017.
- MPS and MSS, version 0.1 13/02/2017, version 1.0 18/09/2017, version 1.2 27/11/2017- Methodology ID_AM012_ver01.0 approved on 10/02/2017 (JC6, Annex 5)- Modalities of Communication, 30/06/2017- Historical data of electricity consumption and paper production weight of Line 5 in 2016
- Process flow diagram of packaging paper factory including corrugated carton production
process17

JCM_ID_F_Val_Rep_ver01.0- Flow diagram overview of the OCC process- Plant layout of Fajar Paper PM8- Feasibility Study Report on the proposed project (JCM FS Final Report), 2014:"Introduction of Energy-Efficient Old Corrugated Cartons Process at a Paper Factory".
- Fajar Paper 2016 Annual Report, including company's profile.
http://www.fajarpaper.com/products/our-products- Kanematsu Corporate Profile 2017

http://www.kanematsu.co.jp/en/- Profile of Aikawa Iron Works Co., Ltd.

http://www.kanematsu.co.jp/en/- Commissioning of stock preparation system for PM8 (Line 8), Start-up Certificate dated
19/12/2016- Monitoring data of electricity consumption and paper production of Line 8 in April 2017 forstarting date of project operation- Legal durable years list issued by Ministry of Finance, Japan, for operational lifetime of the
project- List of equipment installed in Line 8 and the sum of electricity consumption- Aikawa newest OCC treating system for corrugate medium in 2014
- Technical guarantees of Line 8 prepared by Aikawa Iron Works Co., Ltd.
- Supply contract (No. 3200003882-1) between PT Fajar Surya Wisesa Tbk and Kanematsu
Corporation- Maintenance plan agreed by Aikawa Iron Works Co., Ltd and PT Fajar Surya Wisesa Tbk
dated 28/08/2015 (No. 3200003882 B)- UKL/UPL (Environmental Management and Monitoring) of the proposed project submitted
to Environmental Management Bureau of Bekasi local government on 29/01/2015- Approval letter of UKL/UPL (660.2.1./084/TL&ADL/BPLH) on 01/04/2015.
- Environmental Permit (503.9.a/Kep 127/BPMPPT/V/2015) of the proposed project from
Investment Board and Integrated Licensing Services of Government of Bekasi Regency on
06/05/2015- Minutes of local stakeholder consultation held on 19/12/2016- Presentation material for the local stakeholder consultation- Schematic diagram of monitoring structure for the proposed project- User guide - Power Logic TM PM5300 Series Power and Energy Meter issued by Schneider
Electric- Mettler Toledo - Terminals PLC Interface Manual IND131/IND331- Calibration certificate of weight bridge issued by Government of Karawang, Industrial andTrade Service, Regional Technical Implementation Unit for Metrology Legal in 2016
- International Recommendation OIML R 76-1: 2006, Part 1- Metrological and technicalrequirements-Tests
18

JCM_ID_F_Val_Rep_ver01.0- Training text - ABB DCS 800xA Industrial I- Attendee list of training conducted in June and August 201719

JCM_ID_F_Val_Rep_ver01.0

Annex Certificates or curricula vitae of TPE’s validation 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.

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