Danantara plans 33 waste-to-energy projects, awaits regulatory revision

Indonesia’s sovereign wealth fund, BPI Danantara, plans to develop 33 waste-to-energy (WTE) power projects nationwide, pending finalisation of a regulatory revision aimed at boosting private sector participation.

CEO Rosan Perkasa Roeslani said the agency is awaiting changes to Presidential Regulation No. 35/2018, which governs the development of environmentally friendly waste-to-energy plants. A key amendment includes the removal of tipping fees — payments made by local governments to waste management operators for processing municipal solid waste.

Eliminating tipping fees is expected to serve as an investment incentive. “Once the regulation is finalised, we can start immediately. We have 33 sites ready, including four in Jakarta,” Rosan told reporters on Thursday.

Other priority locations include Bandung, Semarang, Surabaya, Bali, and Makassar, with additional regions under consideration. Danantara will select independent power producers (IPPs) through open and transparent tenders, Rosan said, adding that investors must meet technical and environmental standards, including waste processing technology and tariff agreements.

Read also: Prabowo set to sign new presidential regulation on waste-to-energy power plants

Coordinating Minister for Food Affairs Zulkifli Hasan said the government has agreed to a fixed electricity tariff of US$0.20 per kilowatt hour (kWh) for WTE projects. Once the revised regulation is issued, the permitting process is expected to take three to six months, with construction estimated at 12 to 18 months.

“Within two years, the projects can be operational,” Zulkifli said.

The Indonesian Independent Power Producers Association (APLSI) welcomed the plan but highlighted several challenges. APLSI Chairman Eka Satria cited urban land constraints, the need for consistent waste supply, water access, emissions controls, and hazardous residue management as key issues.

Editing by Reiner Simanjuntak