The Indonesian government aims to improve waste management and expand renewable energy. (Photo: iStock)
Nearly 60% of waste in Indonesia is not properly managed, with much of it either being incinerated or landfilled, which causes severe environmental pollution. In response, the Prabowo government plans to build waste-to-energy (WTE) plants in 30 cities across the country. These plants aim to manage and reduce waste while providing renewable energy, contributing to the development of the circular economy.
Indonesia's waste management struggles
According to data from Indonesia's Ministry of Environment, the country produced a total of 69.9 million tons of waste in 2023, with food waste accounting for the largest share at 41.6%, followed by plastic, wood, paper, and metal. Methane emissions from food waste account for 77% of the greenhouse gas emissions from Indonesia’s food supply chain. Scientists generally agree that methane has a greater impact on global warming than carbon dioxide.
Currently, untreated waste is sent directly to incinerators or landfills in 538 regions or cities across Indonesia, highlighting ineffective waste management practices. In 2017, the government issued a mandate to reduce waste by 30% through recycling, with another 70% to be sorted and processed into raw materials or energy. However, these targets have not yet been met.
On March 12, Yuliot Tanjung, Deputy Minister of the Ministry of Energy and Mineral Resources (ESDM), stated that the government is drafting a new presidential regulation (Perpres) to provide clearer definitions for waste-to-energy technologies. The plan is to implement WTE plants in 30 major cities in Indonesia, adding 20 MW of power to each city starting in 2029.
Government plans to tax waste-to-energy developers
Yuliot explained that there will be two types of WTE plants: one that uses pyrolysis technology to convert plastic waste into fuel oil, and another that uses organic waste to generate biogas or biomass energy.
The Prabowo government expects new laws to boost the development of the WTE industry and plans to tax waste-to-energy developers. The Ministry of Energy and Mineral Resources (ESDM) has already started reviewing the tax regulations, with a possible threshold for taxation set at 1,000 tons of waste processed per day.
In addition to the Ministry of Energy, the Ministry of Public Works has also committed to attracting more private investment into waste management by simplifying regulations and adjusting electricity tariffs for waste-to-energy plants. Future projects will be developed through Public-Private Partnerships (PPP) to alleviate the financial burden on the government.
Source: Jakarta Post(1), (2), (3), Antara
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