Danantara Plans 33-City Waste-to-Energy Rollout to Cut Indonesia Emissions

Indonesia's sovereign wealth fund, Danantara, is rapidly advancing a waste-to-energy (WtE) initiative to address the country's significant waste management challenges by constructing 33 plants nationwide, with at least eight projects set to begin by the end of October. Each facility, requiring an investment between $120 million to $180 million, is designed to process 1,000 tons of waste daily, generating approximately 15 to 20 megawatts of electricity, sufficient to power around 20,000 households per plant. The program aims to reduce greenhouse gas emissions by up to 80% and decrease landfill use by up to 90%, while also alleviating financial burdens on local governments through the elimination of tipping fees. Danantara is collaborating with key ministries, local governments, the state utility PLN—which will purchase the generated electricity—and private and foreign investors to ensure optimal technology and partnership choices. Jakarta is prioritized as the initial location with four to five plants, followed by other major cities including Bandung, Semarang, Surabaya, Yogyakarta, and Bali. The initiative also promises to create substantial employment opportunities and stimulate local economies during construction and operational phases.