Indonesia's BPI Danantara Investment Authority stated that waste-to-energy businesses can break even and become profitable within 5-6 years. Although no investors have entered yet, the sector has attracted attention from Singapore, South Korea, Japan, China, and Europe.The agency's Chief Investment Officer said this business requires not only capital but also advanced technology, expecting investors to have global urban waste management experience. Indonesia's Coordinating Minister for Food Affairs also believes the business has huge potential, with many interested investors currently, but complex regulations hinder investment progress. He added that Danantara could participate in this industry. To promote waste-to-energy development, the Indonesian government is consolidating three presidential regulations, planning to set the electricity price for waste-to-energy plants at IDR 18-20 per kWh, higher than the IDR 13.5 set by state electricity company PLN, to attract investment. Shanghai SUS Environment Co., Ltd. signed a concession agreement with the Makassar city government for a municipal solid waste incineration power generation project, expected to start construction in 2024 and begin operations by the end of 2026, with a total investment of approximately USD 200 million. This will effectively alleviate local waste management issues and drive industry development. Indonesia is also strengthening waste management through initiatives like "Waste Banks" and the "Clean Indonesia" program, promoting a circular economy, with a target to properly manage 70% of waste by 2025 and reduce ocean-bound waste.
Indonesia's BPI Danantara Investment Authority stated that waste-to-energy businesses can break even and become profitable within 5-6 years. Although no investors have entered yet, the sector has attracted attention from Singapore, South Korea, Japan, China, and Europe.The agency's Chief Investment Officer said this business requires not only capital but also advanced technology, expecting investors to have global urban waste management experience. Indonesia's Coordinating Minister for Food Affairs also believes the business has huge potential, with many interested investors currently, but complex regulations hinder investment progress. He added that Danantara could participate in this industry. To promote waste-to-energy development, the Indonesian government is consolidating three presidential regulations, planning to set the electricity price for waste-to-energy plants at IDR 18-20 per kWh, higher than the IDR 13.5 set by state electricity company PLN, to attract investment. Shanghai SUS Environment Co., Ltd. signed a concession agreement with the Makassar city government for a municipal solid waste incineration power generation project, expected to start construction in 2024 and begin operations by the end of 2026, with a total investment of approximately USD 200 million. This will effectively alleviate local waste management issues and drive industry development. Indonesia is also strengthening waste management through initiatives like "Waste Banks" and the "Clean Indonesia" program, promoting a circular economy, with a target to properly manage 70% of waste by 2025 and reduce ocean-bound waste.