Indonesia plans to start construction in 2026 of seven waste - to energy (WtE) green power plants as the first phase of a larger national programme to establish 33 such facilities by 2029, an initiative that is backed by a decree by Indonesian President Prabowo Dubianto, part of an ambitious plan which aims to process significant amounts of municipal solid waste, generate renewable electricity and improve urban environments in seven regions especially in tourist areas like Denpasar, Medan, and Semarang.
The development funds will be through the state - owned Danantara (BPI), formally the Daya Anagata Nusantara Investment Management Agency, Indonesoia’s second sovereign wealth fund (SWF) established to manage and optimize state - owned enterprises and attract domestic and foreign investment to drive national economic growth.
These seven centres will be able to process up to 12.000 tons of raw material per day and generate approximately 197.4 megawatts of electricity, according to Vietnam News Agency (VNA).
Programme Key Details:
· Project Goal: Tackle urban waste and produce clear energy.
· Scope: Seven plants in the initial phase, part of a national plan for 33 by 2029.
· Capacity: Handle about 12.000 tonnes of waste daily, generating roughly 197.4 MW of electricity.
· Location: Initial sites include Greater Denpasar, Greate Medan, Greater Semarang, Greater Yogyakarta, Greater Bogor, Greater Tangerang, and Greater Bekasi.
· Funding: State investment fund from Danantara (BPI), Indonesia’s sovereign wealth fund.
· Timeline: Tenders for the first batch began in late 2025, with construction expected to start in early 2026.
Significance:
· Reduces landfill waste and improve sanitation.
· Tourism: A cleaner environment supports tourism development/
· Energy Security: Contributes to Indonesia’s renewable energy goals.
The Coordinating Minister of Economic Affairs, Airlangga Hartarto, stressed that the project not only seeks to generate energy, but also to improve the environmental situation in tourist centres.
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