Danantara's Role in Indonesia's Waste-to-Energy Power Plant Project

3 days ago 11

September 2, 2025 | 06:33 am

TEMPO.COJakarta - Indonesia's Ministry of Energy and Mineral Resources (ESDM) has stated that Danantara, a sovereign wealth fund established to manage the country's strategic state-owned assets, will be involved in the selection of proposals for the construction of a waste-to-energy power plant project (PLTSa). Eniya Listiani Dewi, the Director General of New, Renewable, and Energy Conservation at the Ministry of ESDM, said, "All proposals will first go through Danantara," at Graha Mandiri on Monday, September 1, 2025.

Eniya mentioned that Danantara, the investment management body, will determine whether the project will be carried out by private companies or Danantara. Additionally, she explained that Danantara's involvement in the project could be in the form of financial support or a joint venture mechanism. "Financial support is possible, joint venture is possible. It's up to Danantara," she said.

The Ministry of ESDM also provides an opportunity for Danantara to manage the waste-to-energy power plant project. Eniya projected that Danantara could generate up to 20 megawatts of electricity from processing a minimum of one thousand tons of waste per day.

Eniya stated that the construction will also take into account the list prepared by the Ministry of Environment regarding the waste-to-energy power plant that needs to be built urgently. "Those that are urgent and within the capacity of over a thousand tons will be handled by Danantara," she added.

She emphasized that the project's acceleration also depends on the communication between the regional government and Danantara. "If the regional government directly communicates with Danantara, then it becomes their priority," said Eniya.

The waste-to-energy power plant construction project is still awaiting the approval of the revision of Presidential Regulation (Perpres) Number 35 of 2018 concerning the Acceleration of Waste Processing Installations into Environmentally Friendly Technology-Based Electricity.

Deputy Minister of ESDM Yuliot Tanjung stated that the government has completed the harmonization process for the revision of the regulation. He mentioned that the regulation is almost finished.

Regarding the revision, Eniya stated that the government will exempt the fees paid by regional governments for waste processing or tipping fees. However, she mentioned that waste disposal site operators who have already signed contracts will still have to pay tipping fees.

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