Prabowo to launch waste-to-energy, downstream projects in January
Wednesday, January 7 2026 - 09:22 AM WIB
President Prabowo Subianto is scheduled to launch the groundbreaking of several strategic downstream projects, including a waste-to-energy (WTE) facility, beginning in January 2026, as part of the government’s push to accelerate industrial downstreaming and energy transformation.
Minister of State Secretary Prasetyo Hadi said the president will officiate the groundbreaking of six downstream projects in January, with further projects planned for February and March. In total, around 18 downstream projects are targeted to begin construction in the first quarter of 2026.
One of the projects slated for January is a waste-to-energy power plant, known locally as Pembangkit Listrik Tenaga Sampah (PLTSa). Additional WTE projects are expected to follow in the subsequent months as part of a broader rollout covering 34 cities and regencies nationwide, particularly in areas where daily waste generation exceeds 1,000 tonnes.
“Waste-to-energy facilities will be built in 34 regencies and cities where daily waste volumes have already exceeded 1,000 tonnes. This needs to be addressed immediately so waste does not pile up and create environmental and health problems,” Prasetyo told reporters on the sidelines of the Red and White Cabinet retreat in Hambalang, Bogor, on Tuesday.
The PLTSa facilities are designed to process non-recyclable waste into electricity and other forms of energy, helping reduce landfill volumes while supporting national energy resilience and lowering reliance on conventional fuels such as coal.
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Prasetyo said the waste-to-energy initiative forms part of 18 strategic downstream projects that have completed the pre-feasibility study stage, with total estimated investment value reaching around Rp600 trillion ($38.6 billion). Implementation of the downstream investment programme will be coordinated by Indonesia’s sovereign wealth fund, Danantara.
In addition to waste processing, the government is also preparing to restart coal gasification projects to produce dimethyl ether (DME), a coal-based alternative to liquefied petroleum gas (LPG). The DME projects aim to convert low-calorie coal into cleaner-burning gas and reduce Indonesia’s dependence on imported LPG.
Coal gasification projects have previously faced delays after investors from the United States withdrew from projects in South Sumatra and East Kalimantan in 2023, while plans involving Chinese investors have yet to materialise. Despite these setbacks, the government has reaffirmed DME as a priority downstream initiative.
Beyond the energy sector, Prasetyo said downstream projects will also target agriculture and fisheries, including the development of fishing villages and fishing vessel construction, as well as processing projects for high-value commodities such as coffee and cocoa.
“These are labour-intensive programmes, but they also carry significant investment value, given Indonesia’s abundant natural resources and high-value commodities,” he said.
The government views the downstream programme as a key pillar of President Prabowo’s economic agenda, aimed at boosting domestic value creation, improving environmental management, and strengthening energy and food security.
Editing by Reiner Simanjuntak