Indonesian President Prabowo Subianto met with Australian Prime Minister Anthony Albanese on February 6 to strengthen bilateral ties. (Photo: Anthony Albanese's facebook)
Indonesia is stepping up efforts to attract foreign investment into its waste-to-energy (WtE) programme, with Danantara, the country’s sovereign wealth fund overseeing the initiative, recently pitching the plan to Australian companies during a high-level business visit.
Danantara used the opportunity to brief Australian delegates on Indonesia’s WtE roadmap, aiming to expand cross-border cooperation in waste incineration power projects. The fund also moved to clarify recent remarks by President Prabowo Subianto, who had understated the programme’s projected investment needs, stressing that total funding requirements remain unchanged at around USD 5 billion.
Australian business delegation engages Indonesia on WtE opportunities
Jakarta hosted the two-day 2026 Indonesia Economic Summit starting on Feb. 3, attended by a delegation representing 19 Australian business groups and investors. The group was led by Australia’s Southeast Asia envoy Nicholas Moore and Australia’s business champion to Indonesia, Jennifer Westacott.
During the visit, the delegation met with Indonesian government agencies, major corporations and Danantara’s management. Westacott said Danantara’s presentation of the WtE programme underscored the Indonesian government’s ambition and the strategic importance it places on the initiative.
“Australia has a lot of capability in the waste-to-energy space,” she said, adding that discussions quickly focused on potential collaboration, including whether Australian firms could participate as suppliers or project partners.
Danantara is expected to announce the tender results for its pilot WtE projects in February, with construction slated to begin in the first half of this year. A shortlist released at the end of 2025 included 24 potential suppliers—20 from China, three from Japan and one from France—but no Australian companies.
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Danantara briefed Australian counterparts on Indonesia’s WtE plans, seeking opportunities for cross-border investment. (Source: Wikimedia Commons)
Trade ties strengthen as Indonesia seeks long-term Australian investment
Indonesia and Australia have seen relations warm significantly, with Australian Prime Minister Anthony Albanese also visiting Indonesia on Feb. 6 to meet President Prabowo. Bilateral trade has expanded sharply in recent years, tripling over the past five years under the Indonesia–Australia Comprehensive Economic Partnership Agreement (IA-CEPA).
Westacott noted that Australian companies are increasingly looking at long-term investments in Indonesia, particularly in education, healthcare, clean energy, waste-to-energy, infrastructure and digital technology.
Australia’s first waste-to-energy plant began commercial operations in late 2025. Developed and operated by Spanish firm Acciona, the Kwinana Energy Recovery Facility processes 460,000 tonnes of non-recyclable waste annually, generating 38 MW of baseload renewable electricity—enough to power around 55,000 households. The plant also recovers more than 10,000 tonnes of metals each year from bottom ash, supporting material recycling and reuse.
Indonesia hopes to leverage Australia’s experience to accelerate its own WtE rollout. The government plans to build 34 WtE facilities, with some plants potentially coming online within two years. While Prabowo recently suggested the programme would require around US$3.5 billion in investment, Danantara’s managing director for investment, Stefanus Ade Hadiwidjaja, reaffirmed that total funding needs remain at USD 5 billion.
Source: Jakarta Globe, Antara
