Indonesia Advances Waste-to-Energy Initiatives to Strengthen Circular Economy and Net-Zero Goals
- STIC CEGIR
- Nov 5
- 2 min read
The Indonesia government continues to strengthen its integrated waste management efforts through the Waste-to-Energy (WtE) approach using incinerator technology, as a dual situation to tackle the urban waste crisis while generating renewable electricity. Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung explained that this technology has proven effective in several countries such as Singapore and is now being implemented in Indonesia, including in Surabaya. Through this system, 1,000 tons of waste per day can generate around 20 megawatts (MW) of electricity, with capacity increasing proportionally to the volume of waste processed. The process includes stages such as waste reception and shredding, high-temperature combustion, and the use of generated steam to power turbines, while exhaust gases are filtered to meet environmental standards. This makes the method an efficient and eco-friendly solution for waste management.
As part of this acceleration, PT Danantara Investment Management will launch its Waste-to-Energy (PSEL) project by the end of October. During the National Coordination Meeting on Waste-to-Energy Management held at Wisma Danantara, Jakarta, Danantara CEO Rosan Roeslani stated that Indonesia produces around 35 million tons of waste per year, contributing 2-3% of national greenhouse gas emissions. The project targets the implementation of WtE systems in 33 cities across Indonesia, beginning with Jakarta, Surabaya, and Surakarta. Rosan highlighted five key benefits of this initiative: up to 90% reduction in emissions, 90% land-use efficiency, renewable power supply for 20,000 households, and improved environmental quality and tourism potential. To finance the initiative, Danantara has launched Patriot Bonds worth US$3.1 billion (approximately Rp50 trillion), allocated for strategic national projects, including waste management and clean energy development. The government is also preparing a new Presidential Regulation (Perpres) to replace three existing regulations, simplifying bureaucracy and expenditing investment in the WtE sector.
Meanwhile, the government, through the Ministry of Environment and Forestry (KLHK), targets the construction of WtE facilities in 33 regions across the country. The initial phase will focus on six priority areas—Jakarta, Bogor, Tangerang, Bekasi, Yogyakarta, and Bali—deemed most prepared in terms of infrastructure. Deputy Minister of Environment and Forestry Diaz Hendropriyono emphasized that local governments must provide at least five hectares of land with adequate access to water, electricity, and major roads, and ensure a minimum waste supply of 1,000 tons per day to support efficient operations. Minister of Home Affairs Tito Karnavian added that the ministry will assist local governments in meeting technical and administrative requirements through the Directorate General of Regional
Administration and the Directorate General of Regional Development.
Under the new scheme, the government has eliminated the tipping fee mechanism, previously funded through local budgets (APBD). All operational cost will now be covered by Danantara and PLN, allowing local governments to focus on land preparation, waste collection, and inter-agency coordination. This policy is expected to accelerate the development of national WtE facilities, reduce regional fiscal burdens, and drive Indonesia’s transition toward a green and sustainable economy.
Source:
https://katadata.co.id/ekonomi-hijau/ekonomi-sirkular/68db8a4848995/pengolahan-sampah-jadi-energi-bakal-hadir-di-jabotabek-daerah-lain-menyusul
https://katadata.co.id/ekonomi-hijau/ekonomi-sirkular/68db9c2a0336e/pemerintah-andalkan-insinerator-untuk-ubah-sampah-jadi-energi-listrik
