Indonesia is intensifying efforts to improve national waste management, including through the development of waste-to-energy infrastructure.
The use of modern waste-to-energy technology is expected to help address the waste crisis in large and metropolitan areas such as Jakarta, which produces around 8,000 tons of waste per day.
According to data from the National Waste Management Information System, Indonesia generated 34.6 million tons of waste in 2024, based on reports from 319 districts and cities. Of that amount, 20.7 million tons remained unmanaged.
During a cabinet meeting last August, President Prabowo Subianto instructed his ministers to complete the waste-to-energy program within 18 months as part of efforts to strengthen the country’s waste management system.
Initially, the project design involved many stakeholders, including district heads, governors, ministries, local representative councils, and state-run electricity company PLN.
To accelerate completion, however, the mechanism has been streamlined: the national investment management authority Danantara Indonesia will coordinate directly with PLN, while project permits will be issued by the Ministry of Energy and Mineral Resources.
The government has identified 10 regions as top priorities in the initial phase of developing waste-to-energy facilities, based on a comprehensive assessment and verification process conducted by the Ministry of Environment.
The assessment criteria include regions that generate over 1,000 tons of waste per day, have available land for waste-to-energy development, and demonstrate a clear commitment from local governments to manage waste transportation, according to Coordinating Minister for Food Affairs and Chair of the National Acceleration Team for Food, Energy and Water Self-Sufficiency.
The 10 designated regions are DKI Jakarta (with four sites), Bali, Yogyakarta, Bekasi City, Bekasi District, Greater Bogor, Tangerang, Semarang, Medan, and West Java – covering Bandung City, Cimahi City, West Bandung District, Sumedang District, and Garut District.
An additional 14 regions are currently under review, including Serang, South Sulawesi, Depok, Pekanbaru, Lampung, Malang, Padang, Samarinda, Balikpapan, Pontianak, Banjarmasin, Jambi, Makassar City and South Tangerang City.
The Ministry of Environment emphasized that local governments must submit a formal declaration of readiness to the minister, accompanied by several key requirements.
These include providing at least 5 hectares of land that complies with spatial planning regulations, is flood-free, located away from airports and has sufficient road access and water infrastructure.
To ensure logistical efficiency, waste-to-energy facilities must be situated within 50 kilometers of the waste source.
Major funding
In a major financial boost to the initiative, Indonesia’s sovereign wealth fund Danantara announced that its Rp50 trillion (approximately US$3.2 billion) “patriot bonds” have been fully subscribed through a private placement scheme.
Danantara CEO stated that the funds will support new and renewable energy projects as well as waste-to-energy projects in 33 locations across the country.
Danantara estimates that converting 1,000 tons of waste will require an investment of Rp2 trillion to Rp3 trillion or US$127 million to US$190 million.
With each plant producing up to 15 megawatts of electricity – enough to power roughly 20,000 households – the waste-to-energy program is estimated to reduce 80 percent of national greenhouse gases and save 90 percent of land use.
Danantara plans to launch the waste-to-energy projects by the end of October, which involve the development of eight out of a total of 33 waste processing plants across Indonesia.
The agency will select the most appropriate technology and partners to ensure optimal results, with the goal not just profit but also environmental inspection and reducing the waste crisis, according to Danantara’s Managing Director for Investment.
He added that the projects could create jobs and trigger a multiplier effect for local economies.
Construction of each facility is expected to take 18 to 24 months. People will be hired to operate and manage the plants, creating multiplier effects several times over, he noted.
Electricity generated from the waste processing plants will be purchased by state utility PLN, he added.
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