Government Accelerates Waste-to-Energy Development via Danantara, Targets 33 Projects by 2029
Jakarta — The Daya Anagata Nusantara Investment Management Agency (BPI Danantara) is pushing the development of waste-to-energy programs as a strategic solution to Indonesia’s national waste emergency.
Indonesia currently generates around 56 million tons of waste annually, yet only about 40 percent is successfully recycled, highlighting the need for a more integrated and sustainable approach.
Deputy Speaker of the People’s Consultative Assembly (MPR RI), Eddy Soeparno, views Danantara’s involvement in the waste-to-energy program as a timely move, as it refers to best practices implemented in several Asian countries.
He explained that similar programs have actually been running for more than a decade in regions such as Surabaya and Solo, but have not developed optimally.
“Previously, waste-to-energy programs had been running for 12 years in project areas such as Surabaya and Solo, but they struggled to grow due to two factors: complex processes and challenging economic feasibility,” Eddy said.
According to Eddy, Danantara’s approach opens wider opportunities for collaboration while improving the economic viability of the projects.
He noted that Danantara’s dual role as both partner selector and investor is a key differentiating factor.
“As an investor, BPI Danantara has funds to manage waste-to-energy projects and these projects are calculated to generate returns, as the benefits flow back to the state. This provides long-term capital, so funding is not an issue,” he explained.
He also highlighted the electricity tariff scheme of 20 US cents per kWh, which is considered capable of making waste-to-energy projects more feasible without burdening the state budget (APBN).
Support for waste-to-energy development has also come from PT PLN (Persero), which has expressed readiness to serve as the electricity offtaker from Waste-to-Energy Power Plant (PLTSa) projects.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government has committed to developing PLTSa through Danantara.
“Through Danantara, Indonesia has committed to building PLTSa, with seven projects planned to be constructed in 2026,” he said.
He added that PLTSa development is important to support the tourism sector and aligns with President Prabowo Subianto’s target of having 33 PLTSa projects built across various provinces by 2029.
Meanwhile, Managing Director of Investment at Danantara Indonesia, Stefanus Ade Hadiwidjaja, emphasized that waste-to-energy projects present a major opportunity to address environmental challenges while providing clean energy.
“Indonesia has the opportunity to safeguard life through waste-to-energy. However, no one can do it alone,” he said. **
