Indonesia's Ambitious Waste-to-Energy Plan Aims for 453 MW by 2034
Indonesia is advancing with ambitious waste-to-energy plans. The government aims to generate 453 MW of power from waste by 2034, investing $2.7 billion. This strategy tackles the country's massive waste problem and reduces methane emissions, contributing to its 2030 emission reduction targets.
Indonesia produces 35 million metric tons of waste annually, with 61% improperly managed. To address this, the government is promoting waste-to-energy projects. Each 1,000 tons of waste processed daily yields about 15 megawatts of capacity. Danantara Indonesia is at the forefront, planning eight waste-to-power projects by October 2023.
The waste-to-energy strategy offers dual benefits: it reduces methane emissions from landfills and provides new power capacity. The government's 2025-2034 electricity supply plan includes 453 MW of waste-to-power capacity. Indonesia aims to cut emissions 31.9% below business-as-usual levels by 2030 through these projects.
However, financing remains a challenge. Plant development requires 2 trillion to 3 trillion rupiah ($120 million-$180 million) for every 1,000-ton processing capacity, which is higher than solar or wind projects.
The government is committed to this waste-to-energy initiative, eliminating tipping fees for municipalities to access waste-to-energy facilities. Despite higher costs, these projects are crucial for Indonesia's waste management and emission reduction goals. The success of Danantara Indonesia's eight planned projects will be a significant indicator of the country's progress in this area.
