National Collaboration on Waste-to-Energy (PLTSa) Project to Support Green Energy Transition
- STIC CEGIR
- Nov 5
- 2 min read
The Indonesian government continues to accelerate the implementation of the Waste-to-Energy (PLTSa) project as an integrated solution to address the national waste crisis while expanding the use of renewable energy. This initiative involves cross-ministerial and institutional collaboration among the Ministry of Environment (KLH), the Ministry of Energy and Mineral Resources (ESDM), the State Electricity Company (PLN), and PT Danantara Investment Management as the main investment partner. According to the Director General of New, Renewable Energy, and Energy Conservation at ESDM, Eniya Listiani Dewi, the project locations are determined by the KLH, with ten priority sites selected in the first phase. The list is then submitted to Danantara to identify project partners before registration with ESDM for licensing and tariff approval at US$0.20 per kWh, including waste management costs (tipping fee). Once the permit is issued, the project will be directly assigned to PLN without the usual power purchase agreement process, thus expediting project execution.
PLN serves as the main electricity offtaker for the energy produces by the incinerator-based PLTSa facilities. This technology has been proven effective in neighboring countries such as Singapore and is expected to be widely implemented in Indonesia. Local governments also play a key role in providing land, waste transportation, and raw material supply that meets quality standards. If the waste supply fails to meet requirements, the local governments must provide compensation. Under this scheme, the tipping fee is eliminated, and all project financing is covered by Danantara and PLN, reducing the fiscal burden on regional budgets (APBD) and allowing local governments to focus on operational support and inter-agency coordination.
Danantara’s Managing Director of Investment, Stefanus Ade Hadiwidjaja, emphasized that the PLTSa project is not merely a commercial initiative but a national commitment to environmental restoration and green energy transition. Danantara has identified 33 potential sites across Indonesia, with investments ranging from Rp2-3 trillion per site, including supporting infrastructure. The project will involve open tenders to attract participation from private investors, state-owned enterprises (BUMN), regional-owned enterprises (BUMD), and foreign partners, ensuring the best technology and collaboration each selected. The joint efforts of KLH, ESDM, PLN, Danantara, and local governments are expected to accelerate national PLTSa development, reduce carbon emissions by up to 80%, and minimize landfill needs by up to 90%, positioning Indonesia as a regional leader in sustainable waste management and renewable energy innovation in Southeast Asia.
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