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Danantara to Oversee Seven Waste-to-Energy Projects Backed by 200 Investors

Muhammad Farhan, Wawan Kurniawan
October 25, 2025 | 1:56 pm
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Airplane seen near Rawa Kucing landfill in Tangerang, Banten, on Monday (14/10/2019). (JG Photo/Yudha Baskoro)
Airplane seen near Rawa Kucing landfill in Tangerang, Banten, on Monday (14/10/2019). (JG Photo/Yudha Baskoro)

Jakarta. Indonesia will begin construction of waste-to-energy (WtE) plants in seven regions starting March 2026, as the government accelerates efforts to convert urban waste into renewable electricity under President Prabowo Subianto’s green energy agenda.

Chief Food Affairs Zulkifli Hasan said Friday that the government has finalized the plan to build the facilities, known locally as PSEL, using incinerators. 

The seven pilot regions are Bali, Yogyakarta, Semarang in Central Java, Medan in North Sumatra as well as Bogor, Tangerang, and Bekasi in Greater Jakarta, according to Zulkifli. 

Funding and project management will be handled by sovereign wealth fund Danantara, which has opened tenders for developers. CEO Rosan Roeslani said 204 companies, 66 from overseas, have registered interest. Each WtE facility processing 1,000 tons of waste daily could generate between 15 and 25 megawatts of electricity, depending on waste composition.

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“We’ve projected a two-year construction timeline, assuming all land and regulatory requirements are cleared,” Rosan said. “This project will not only support energy diversification but also modernize waste management in major cities.”

Environment Minister Hanif Faisol Nurofiq said the government is prioritizing regions with available land and infrastructure. Proposed sites in Jakarta and Bandung were excluded due to land and water constraints, though both remain long-term targets.

The first groundbreaking is expected no later than January 2026, following President Prabowo’s directive to fast-track the process. Hanif said the Tangerang cluster, which includes the Jatiwaringin landfill in Banten, will serve as a model for sustainable waste management across urban agglomerations.

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