Danantara Accelerates Clean Energy Transition, Turning Waste and Sewage into New Resources for the People
By: Nadia Dewi Lubis )*
The clean energy transformation in Indonesia has entered a new phase with the enactment of government policy through Presidential Regulation (Perpres) Number 109 of 2025 concerning Urban Waste Management Through Processing Waste into Renewable Energy Based on Environmentally Friendly Technology. This policy marks a new era in national waste management, no longer solely focused on disposal but on utilization. Through a waste-to-energy approach, the government aims to transform waste piles from a problem to a new energy resource that provides economic, social, and environmental benefits to the community. In this context, Danantara has been entrusted with the role of the primary manager, integrating technology, investment, and innovation to accelerate the transition to national green energy.
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, emphasized that the implementation of waste to energy is now a national priority, which will be managed directly by Danantara. The implementation of Perpres 109/2025 is a concrete effort by the government to realize a sustainable green economy. Through waste-to-energy, the government can convert waste into clean energy that benefits the people. This step will have a dual impact: reducing the volume of waste in urban areas while increasing the national supply of renewable energy. With environmentally friendly technology-based management, Danantara is expected to provide efficient, transparent, and sustainability-oriented solutions.
Meanwhile, Minister of Environment Hanif Faisol Nurofiq stated that this policy is a significant milestone in the national waste management system. Waste management in many regions still faces significant challenges, ranging from limited landfill space to greenhouse gas emissions. With a waste-to-energy approach, the waste management system is now moving toward a structural transformation that prioritizes environmentally friendly technology. The government is currently in a transition phase toward a more efficient and productive system. Every ton of waste, previously a burden, can now become a source of energy that powers people’s homes. This also demonstrates that environmental policy is no longer a standalone policy but an integral part of national energy policy.
The waste-to-energy program demonstrates the government’s commitment to addressing two strategic issues simultaneously: waste and national energy security. Waste-to-energy processing is not only a solution to the environmental crisis but also a direct contribution to strengthening Indonesia’s energy independence. With waste-to-energy technology, the government can convert waste into electricity or alternative fuels. This means the government can conserve fossil fuels and expand access to clean energy for the public. This project will also create new jobs and create new economic value chains in the energy and environmental management sectors. Thus, waste-to-energy is not only a technological solution but also a socio-economic strategy that supports sustainable development.
The synergy between the government and Danantara is key to the success of this program. As the company entrusted to lead national clean energy projects, Danantara has the capacity, network, and experience to integrate green investment with government energy policies. Danantara Indonesia’s Chief Executive Officer (CEO), Rosan Roeslani, explained that his company will work closely with the Ministry of Energy and Mineral Resources to ensure the effective and targeted implementation of the waste-to-energy program. According to him, Danantara will play a direct role as a shareholder in the Waste-to-Electricity (PSEL) project and wants to ensure the program is on target, efficient, and sustainable.
Waste-to-energy is part of Danantara’s commitment to realizing a circular economy and green energy transition in Indonesia. By integrating circular economy principles, Danantara focuses not only on energy production but also on waste reduction, recycling, and resource optimization. This aligns with the government’s vision to make clean energy the backbone of national economic development.
The implementation of the waste-to-energy policy also opens up significant opportunities for local governments and the private sector to collaborate in building a renewable energy ecosystem. With a transparent partnership model based on long-term benefits, Danantara can be a catalyst for the birth of green energy projects in various regions. Furthermore, the presence of PSEL projects in major cities such as Jakarta, Surabaya, Medan, and Makassar will have a significant impact on the fulfillment of Reduce carbon emissions and create a healthier environment. Waste-to-energy technology also enables efficient land use, reduces reliance on conventional landfills, and reduces the potential for water and air pollution.
Through Danantara, the government is committed to ensuring that the clean energy transition is not just talk, but a reality that directly impacts the people. From organic waste management in markets to large-scale municipal waste, every step toward waste-to-energy is part of a national energy revolution that prioritizes human well-being and environmental sustainability. The success of this program will mark a milestone in Indonesia’s journey toward energy independence based on innovation, technology, and environmental awareness.
)* The author is an Industrial Energy and Public Policy Economist.
