Indonesia generates 35 million metric tons of waste annually, with 61% of it poorly managed, leading to widespread air, water, and land pollution. To address this growing environmental challenge, Danantara Indonesia, the country’s sovereign wealth fund, announced plans to launch at least eight waste-to-power projects by the end of October 2025.

Scope and Locations of the Waste-to-Power Program

Danantara’s waste-to-energy initiative will be implemented in 33 cities, prioritizing Jakarta, where four to five project locations will be established. Other cities across Java and Bali are also included in the program. The projects aim to convert waste into electricity, contributing to Indonesia’s renewable energy targets.

Partnerships and Power Generation Capacity

The sovereign fund will partner with technology providers to invest in the waste-to-power plants, while Indonesia’s state utility Perusahaan Listrik Negara (PLN) will purchase the electricity produced. Every 1,000 tons of waste processed is expected to generate around 15 megawatts (MW) of power.

Financial Investment and Government Targets

According to Managing Director Stefanus Ade Hadiwidjaja, the investment required for power plants with 1,000-ton processing capacity typically ranges between 2 trillion and 3 trillion rupiah (approximately $179.75 million). The government’s 2025-2034 electricity supply plan includes a target to build 453 MW of waste power plants, with an estimated total investment of $2.72 billion.

Government Support and Regional Involvement

To promote regional participation, the government has removed tipping fees that were previously charged to local authorities. Danantara will finance the technical and feasibility studies to further reduce project costs. Participating regional governments will need to allocate up to 5 hectares of land for each power plant.

PHOTO: BISNIS/ABDURACHMAN

This article was created with AI assistance.