The Indonesian government plans to build waste-to-energy (WtE) plants in 33 provinces nationwide to address urban waste issues and increase green energy supply. The total investment for this project is estimated at 300 trillion rupiah, with funding primarily coming from the state investment management agency (Danantara). The Coordinating Minister for Economic Affairs confirmed the project will be fully funded by Danantara, though the Finance Minister previously stated it might use the state budget (APBN).
Additionally, local governments must provide land and ensure a 20-year waste supply. The current waste treatment rate is only 60%, with 40% still being discarded indiscriminately; 70% of Indonesia's waste is high-moisture organic waste requiring pretreatment, increasing costs; meanwhile, waste-to-energy generation costs (5–13 million USD per plant) are higher than solar/hydroelectric power.
UGM scholars point out that if waste management responsibility is shifted to developers, it will become economically unfeasible; IESR emphasizes that dozens of facilities must be built simultaneously to achieve the 2029 'zero waste' target; Celios notes that waste sorting and transportation costs may drive up electricity prices.
The government is currently revising presidential regulations, aiming to abolish waste processing fees paid by local governments and have developers assume the risk instead. Analysts believe that if poorly planned, this project could become a new financial burden on the state.
The Indonesian government plans to build waste-to-energy (WtE) plants in 33 provinces nationwide to address urban waste issues and increase green energy supply. The total investment for this project is estimated at 300 trillion rupiah, with funding primarily coming from the state investment management agency (Danantara). The Coordinating Minister for Economic Affairs confirmed the project will be fully funded by Danantara, though the Finance Minister previously stated it might use the state budget (APBN).
Additionally, local governments must provide land and ensure a 20-year waste supply. The current waste treatment rate is only 60%, with 40% still being discarded indiscriminately; 70% of Indonesia's waste is high-moisture organic waste requiring pretreatment, increasing costs; meanwhile, waste-to-energy generation costs (5–13 million USD per plant) are higher than solar/hydroelectric power.
UGM scholars point out that if waste management responsibility is shifted to developers, it will become economically unfeasible; IESR emphasizes that dozens of facilities must be built simultaneously to achieve the 2029 'zero waste' target; Celios notes that waste sorting and transportation costs may drive up electricity prices.
The government is currently revising presidential regulations, aiming to abolish waste processing fees paid by local governments and have developers assume the risk instead. Analysts believe that if poorly planned, this project could become a new financial burden on the state.