Danantara and Regional Governments Sign MoU for Waste-to-Electricity Processing

The government is accelerating the handling of the national waste emergency through collaboration on waste-to-electricity processing (PSEL). This step involves the signing of a memorandum of understanding between Danantara and several regional governments, targeted for completion before 2029. Coordinating Minister for Food Affairs Zulkifli Hasan witnessed the signing of the MoU for waste-to-electricity processing between Danantara and regional governments in Jakarta on Monday (11/5/2026). The agreement covers six prospective PSEL locations in Greater Lampung, Greater Serang, Greater Medan, Greater Semarang, Bekasi Regency, and Greater Bogor II, following previous cooperation with DKI Jakarta. “This is to accelerate the President’s directive; he said it is impossible for us to become an advanced nation if we do not resolve our waste problem, which causes pollution of soil, water, and air, threatening public health and safety,” Zulhas stated during a press conference on Monday (11/5/2026). Zulhas said the waste issue has become a serious national problem that has even claimed lives. The government has issued Presidential Regulation No. 109 to accelerate waste emergency handling in various regions. “In the next three years, we must resolve 25 locations covering 62 districts and cities with emergencies exceeding 1,000 tonnes that continue to accumulate; that amounts to 22.5 percent,” Zulhas said. The government targets the PSEL projects to be completed by May 2028, consisting of six months for administrative completion and about two years for construction. “There is still 77.5 percent, some with 500-700 tonnes, which we are finalising the regulations for, so we can resolve them quickly. The government is also encouraging the use of technology; earlier, domestic ones like RDF and TPST according to each region’s capacity and needs,” Zulhas continued. Zulhas hopes the national waste issue can be resolved before the end of President Prabowo Subianto’s term in 2029. According to him, regional heads are a key factor in the success of implementing the waste processing projects. “By 2029, we hope that in all provinces, districts, and cities, the manageable waste can be resolved,” Zulhas said. Danantara Indonesia’s Chief Investment Officer Pandu Sjahrir stated that Danantara Investment Manager’s subsidiary, PT Daya Energi Bersih Nusantara, will hold shares in every PSEL project. Pandu estimated the total investment for 33 PSEL projects at five billion US dollars. “Per project, it’s approximately 150 million US dollars. There are other investors joining. So we select according to the best technology for all. We will seek the best partners; there are already nearly 100 registered,” Pandu said.