Indonesia bets big on waste to energy as Chinese firms dominate early bids

Severe waste management problems are plaguing major Indonesian cities, prompting the government to roll out waste-to-energy initiatives as a response. (Photo: iStock)

Is there a solution to Jakarta’s mounting garbage crisis? Backed by a presidential directive and support from the sovereign wealth fund Danatara, Indonesia is accelerating the development of waste-to-energy power plants at an unprecedented pace, with plans to gradually expand the program to 33 cities nationwide. 

At the same time, the country has entered a national waste emergency, as garbage collection in major urban centers falls far behind the rapidly growing volume of waste generated each day. Experts caution that for Indonesia’s waste-to-energy strategy to be effective, policymakers must address structural challenges, including the pricing mechanism for electricity procurement.