Indonesia’s Ministry of Environment Promotes Waste-to-Energy Utilization Through Collaboration with Major Industries
Indonesia’s Ministry of Environment (KLH) plans to connect waste-derived energy producers across various regions with large-scale industries to expand the market for alternative fuels while supporting sustainable waste management. This initiative was highlighted by Minister of Environment Moh Jumhur Hidayat during his visit to the TOSS Center Gema Santi in Klungkung Regency, Bali, on October 3, 2026. The facility utilizes pyrolysis technology, a thermal decomposition process conducted in the absence of oxygen, to convert waste into alternative fuels that can replace diesel. In addition, compacted organic waste can be used as an alternative fuel to substitute for coal. KLH acknowledged the collaboration between local governments and the private sector in implementing circular economy practices and expressed its commitment to connecting waste management operators with industries seeking alternative energy sources. The utilization of waste-derived fuels is considered to have the potential to reduce industrial dependence on fossil fuels, lower carbon emissions, and support the achievement of Net Zero Emissions (NZE) targets.
However, the development of waste-to-energy solutions continues to face several challenges, particularly regarding market demand certainty, production costs, processing capacity, and transportation distances between waste treatment facilities in Bali and major industrial centers on Java Island. To improve efficiency and competitiveness, KLH encourages the consolidation of waste supplies from several regencies to increase feedstock availability and production volumes, thereby reducing processing costs per unit. Sufficient production capacity and competitive pricing are essential factors in attracting industrial buyers of alternative fuels. Through stronger collaboration among local governments, waste management operators, and industrial stakeholders, KLH aims to ensure that waste-to-energy initiatives not only reduce waste generation and accumulation but also create economic value and accelerate the transition toward a circular economy. The waste management model implemented in Klungkung Regency is expected to serve as a reference for other regions in Indonesia seeking to develop more efficient, economically viable, and sustainable waste management solutions.
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