“We announced the project two weeks ago, and around 120 companies have submitted their bids. The criteria for selecting the tender winner are simple: the company that offers the best technology with minimal environmental impact,” Danantara Chief Investment Officer Pandu Patria Sjahrir said in Jakarta on Wednesday.
The waste-to-energy project is part of the government’s broader strategy to tackle the country’s waste crisis, as the total volume of waste generated nationwide “could cover the entire Jakarta province with 30 centimeters of waste,” he explained.
To attract greater participation, Sjahrir noted that the government decided to waive the tipping fee — a move he described as the first of its kind globally.
“We have also set the electricity price at Rp20 per kilowatt hour (kWh), which I believe is attractive,” he added.
Sjahrir explained that the first phase of the project involves developing 10 waste-to-energy processing plants in five major Indonesian cities, with construction targeted to begin by the end of this year.
In total, the government aims to develop 33 such facilities nationwide, with a total investment value estimated at between US$150 million and US$200 million, he said.
“It will be the largest cumulative waste-to-energy project in the world,” Sjahrir stated.
The project will be partly funded through the Patriot Bond, which has raised Rp50 trillion (approximately US$3.02 billion), according to Danantara Chief Executive Officer Rosan Roeslani.
Roeslani previously stated on October 1 that the Rp50 trillion will also finance renewable energy development projects across the country.
Related news: RI Govt issues regulation promoting waste-to-energy for cities
Related news: Jakarta, Danantara seal technical deal on waste-to-energy plant
Related news: Jakarta enter waste emergency as government pushes green solutions
Translator: Uyu Liman, Nabil Ihsan
Editor: M Razi Rahman
Copyright © ANTARA 2025
