Indonesia Accelerates Waste-to-Energy Development to Achieve 100 Percent Waste Management Target by 2029
The Indonesian government is accelerating the development of Waste-to-Energy (WtE) facilities as one of the key instruments for achieving its waste management target of 63.41% by 2026 and 100% by 2029, particularly in metropolitan and major cities facing high levels of waste generation, limited land availability, overcapacity at final disposal sites (TPA), and continued open-dumping practices. Under Presidential Regulation No. 109 of 2025, WtE facilities may be developed in regions that meet the required criteria. Several projects are being accelerated, including the Palembang WtE facility, with a processing capacity of 1,000 tons of waste per day and a power generation capacity of 20 MW, as well as projects in Denpasar Raya (1,200 tons/day), Bekasi City (1,400 tons/day), and Bogor Raya (1,500 tons/day), which are targeted to begin operations around mid-2028. The next phase also includes eight projects covering Yogyakarta Raya, Lampung Raya, Bekasi Regency, Medan Raya, Semarang Raya), Surabaya Raya, Serang Raya, as well as Bogor City and Depok City.
However, the accelerated development of WtE facilities continues to face several challenges, particularly regarding local governments fiscal capacity and commitment, land availability, waste transportation costs, certainty of waste supply, and tipping fee mechanisms. Limited local government financial capacity may affect the economic sustainability of these projects, as demonstrated by several earlier-generation facilities that encountered difficulties related to electricity generation and the payment of tipping fees. The government and the House of Representatives (DPR) have also highlighted the need to evaluate existing WtE business models, including the development of a new-generation scheme that integrates waste management costs into the electricity selling price to PLN. Therefore, achieving the 100% waste management target by 2029 will depend not only on the deployment of WtE technologies, but also on regulatory and financial readliness, local government capacity, adequate waste management infrastructure, and sustainable business models.
Source:
