Danantara: Rp 86.5 Trillion Needed for 33 Waste-to-Energy Projects

Chief Investment Officer (CIO) of the Danantara Investment Management Agency, Pandu Sjahrir, stated that waste-to-energy projects, or Waste to Electricity Management (PSEL), in Indonesia require an investment of US5billionorRp86.5trillion(assuminganexchangerateofRp17, 300perUS). This amount is needed for a total of 33 projects to be developed by the government and Danantara. Pandu made the statement after attending the signing of memoranda of understanding (MoUs) for PSEL in six districts and cities. “So the total for all projects is US$5 billion. Each project requires approximately US$150 million or nearly Rp 2.7 trillion,” Pandu said after the MoU approval at Graha Mandiri on Monday, 11 May 2026. The six districts and cities selected as locations for accelerating PSEL include Lampung, Serang, Medan, Semarang, Bogor, and Bekasi Regency. Pandu explained that the funding comes from collaboration between Danantara and several investors. To support these projects, Danantara held an initial auction for PSEL last November. The next auction phase will open shortly. “We will seek the best partners. Almost 100 have already registered,” he said. In the signing of the PSEL MoU with six local governments, Coordinating Minister for Food Zulkifli Hasan stated that the government targets the construction of PSEL in 25 locations, covering 62 districts/cities. The initial locations were chosen based on emergency waste management needs or over 1,000 tonnes. Zulhas explained that this step is a collaboration between the central government, local governments, and Danantara to resolve urban waste issues more quickly. In addition to reducing landfill problems, waste will also be utilised to produce clean energy. “It must be accelerated into clean energy, electricity. Without smell and toxins,” he said on Monday, 11 May 2026.