PT Danantara Investment Management has partnered with State power utility PT PLN to develop a waste-to-energy (WtE) project, converting household waste into renewable electricity through incinerator technology, with PLN going to serve as the primary buyer of the electricity generated from the facilities.

Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung said the initiative is a dual solution − addressing Indonesia’s waste emergency while also producing clean power.

Household waste will be collected by local governments and delivered to designated landfills, where incinerator facilities will process at least 1,000 tons of waste per day. The incineration generates heat, which is then converted into electricity.

“The technology has been widely used in neighboring countries. For example, Singapore operates five incinerators,” Yuliot said after the National Coordination Meeting on Waste-to-Energy Management in Jakarta on Tuesday, September 30, 2025.

According to him, processing 1,000 tons of waste can generate around 20 megawatts (MW) of electricity − enough to power more than 20,000 households. Larger capacities could produce 30 MW or more, depending on the scale of technology deployed. He added that another key benefit of the project is the elimination of tipping fees for regional governments, since project financing is fully covered by Danantara and PLN. This allows local budgets to be saved while still resolving the waste problem.

The project is also expected to reduce greenhouse gas emissions by up to 80 percent and cut landfill needs by as much as 90 percent.

Danantara’s Managing Director of Investment, Stefanus Ade Hadiwidjaja, highlighted that the initiative involves collaboration between Danantara, local governments, the Ministry of Environment and Forestry (KLHK), and the ESDM Ministry.

“One of Danantara’s roles is to select the right partners and technology, then co-invest in building these WtE plants,” Stefanus said. Over the past few months, the company has conducted benchmarking studies of waste-to-energy technologies used internationally.

Danantara has identified 33 potential sites across Indonesia for WtE development, with each location requiring Rp2–3 trillion in investment, including supporting infrastructure. The financing will not come solely from Danantara; the state-owned holding will also open a tender process to involve private firms, foreign investors, local governments, and region-owned enterprises (ROEs).

“In the end, we will select the most suitable partners and technologies. The aim is not just profit, but to clean the environment and tackle the urgent waste crisis,” Stefanus said.