Danantara and PLN Join Forces: Building a National Energy System Powered by Urban Waste
Jakarta — In a strategic step toward creating a cleaner and more sustainable national energy system, Danantara Indonesia and PT PLN (Persero) have officially strengthened their collaboration in developing waste-based energy infrastructure through Waste-to-Energy (WtE) power plant projects (PLTSa). These projects are positioned as a dual solution to urban waste challenges and as a backbone of Indonesia’s national energy transition.
This commitment became increasingly evident in a national forum following the issuance of supportive regulations and strong statements from policymakers. The launch of these waste-to-energy initiatives is seen as a major milestone within the current administration’s energy and environmental agenda.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, affirmed that through Danantara, Indonesia has committed to building PLTSa facilities starting in 2026.
“Through Danantara, Indonesia has committed to constructing PLTSa facilities, with seven projects planned for development in 2026,” he stated.
Airlangga added that the development of waste-based power plants is crucial to supporting national tourism: clean, waste-free cities will be more attractive to visitors and help restore urban environmental ecosystems. He also noted that the national target is to build 33 PLTSa units by 2029 across all provinces, especially in regions facing severe waste problems.
From Danantara’s side, Managing Director of Investment, Stefanus Ade Hadiwidjaja, expressed confidence that waste-to-energy projects represent more than an energy solution—they offer a major opportunity to address environmental problems while supplying clean and sustainable energy.
“Indonesia has an opportunity to protect life through waste-to-energy. But no one can do it alone. This project is only possible through collaboration between the central government, regional governments, businesses, and the community,” he said.
Stefanus explained that within the PLTSa ecosystem, Danantara assigns PLN as the offtaker for the electricity generated, while Danantara acts as the orchestrator to ensure coordinated project execution.
“Without systemic, collaborative, and measurable solutions, there will be no sustainable economic future,” he added.
Meanwhile, PLN President Director, Darmawan Prasodjo, stated that PLN is fully prepared to shoulder the responsibility of offtake and ensure seamless integration of each PLTSa facility into the national power system.
“PLN fully supports the government’s policy to accelerate PLTSa development. Our role is to ensure grid readiness, provide offtake certainty, and open collaboration opportunities for developers,” he said.
Darmawan emphasized that beyond electricity offtake, PLN will also prepare reliable transmission and distribution infrastructure to ensure that electricity generated from waste can be delivered across regions.
“This integration is essential to maintain electricity supply stability and ensure optimal utilization of waste-derived energy,” he noted.
Each planned PLTSa facility is expected to process up to 1,000 tons of waste per day and generate electricity for tens of thousands of households. Individual projects are estimated to require investments ranging from Rp 2 trillion to Rp 3 trillion.
This initiative has also attracted strong interest from both domestic and international investors. Hundreds of companies have expressed interest in participating in the waste-to-energy projects, indicating that the initiative is not only environmentally relevant but also a significant economic opportunity that supports energy resilience and improves people’s quality of life.
With strong government backing, Danantara as the orchestrator, and PLN as the offtake backbone and system integrator, the PLTSa initiative is expected to become a central pillar of Indonesia’s future national energy system. The transformation of urban waste into electricity is no longer an aspiration—it is a concrete mission ready for implementation.*