Jakarta – The green investment trend in Indonesia continues to show significant growth in line with the government’s push to accelerate the transition to clean and sustainable energy. Danantara Indonesia reported that the waste-to-energy power plant (PSEL) project is attracting widespread interest from the private sector.
Around 200 companies, both domestic and international, have expressed interest in participating in the project.
The project is designed as part of a national strategy to utilize urban waste as a clean energy source. This initiative also serves as a step to reduce waste in large cities and support the energy transition.
In the plan, Danantara is targeting the development of 33 PSEL projects with significant investment values.
Some of the initial target cities include Tangerang, Bekasi, Jakarta, Bandung, Yogyakarta, Semarang, Surabaya, Medan, Bali, and Makassar.
Danantara CEO, Rosan Roeslani, stated that although many companies have already registered, the selection process will be open to ensure the best partners are selected.
“Even if an ideal investor cannot be found, the project will proceed because the government has already committed,” said Rosan.
The waste-to-energy sector is considered crucial because Indonesia faces significant challenges related to the volume of urban waste and the need for additional power plants.
By processing waste into electricity, two issues—environmental and energy—can be addressed simultaneously. The investment value of each project is estimated at US$150–200 million, or approximately Rp2.5–3.3 trillion per project location. This cost includes technology procurement, facility construction, operations, and integration into the electricity grid.
Regulatory-wise, the project is supported by government policies such as the elimination of waste disposal fees (tipping fees) at several locations to encourage investor interest.
This step makes the project more attractive from a business perspective and also environmentally beneficial.
For the government, the success of this project serves as concrete evidence that green infrastructure development can be implemented through a public-private partnership scheme and not solely relying on state funds. It could also serve as a model for other clean energy projects in the future.
From a societal perspective, the project is expected to bring tangible benefits: a cleaner city, electricity from a new source, and an improved quality of life, if all goes according to plan. However, clarity on the implementation timeline, project location, and local community involvement remain crucial.
Overall, Danantara’s statement that around 200 companies are interested demonstrates that the clean energy and waste management sectors are increasingly attracting business attention. But the journey from interest to realization is a real challenge, not just registration numbers.
