Indonesia to Convert Waste into Electricity: Estimated Investment Figures Revealed
Jakarta, CNBC Indonesia - The Nusantara Future Investment Management Agency (BPI Danantara) has affirmed its commitment to expediting Waste-to-Energy (WTE) projects across various regions. In the initial phase, the winners of the tenders for two cities, namely Denpasar (Bali) and Bekasi, will be announced shortly.
Fadli Rahman, Director of Investments at Danantara Investment Management (DIM), revealed that the investment required for the WTE projects in the first phase averages between US$150-170 million per location. The initial development phase encompasses four cities: Bekasi, Denpasar, Yogyakarta, and Bogor.
“The total investment for the first batch averages US$150-170 million per location. Let’s say US$150 million for simplicity; the total investment for the first four regions will be US$600 million,” Fadli stated during a meeting at Wisma Danantara on Thursday (February 26, 2026).
According to Fadli, from a funding perspective, Danantara has established a financing scheme with a composition of 70% debt and 30% equity. Furthermore, the partnership structure allows foreign partners to hold a majority stake.
“Danantara will hold 30%, while the foreign partner will hold 70%. Therefore, the funding will come entirely from abroad. This is a Foreign Direct Investment (FDI),” he added.
As is well known, the government has officially implemented a large-scale transformation in national waste management. Under the direction of President Prabowo Subianto, waste, which has long been a source of environmental problems, is being transformed into a source of electrical energy in various major cities.
This strategic step is marked by the issuance of Presidential Regulation No. 109 of 2025 concerning the Management of Urban Waste through the Processing of Waste into Renewable Energy based on Environmentally Friendly Technology. This regulation serves as a new legal basis for accelerating WTE projects in Indonesia.
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, affirmed that the issuance of the Presidential Regulation was a directive from President Prabowo. In this scheme, WTE projects are prioritized to be managed by the Nusantara Future Investment Management Agency (Danantara).
“Waste Energy, the Presidential Regulation has been issued, and we are ready to proceed with the next steps. This will be prioritized for management by Danantara,” Bahlil said during the HIPMI-Danantara Business Forum 2025 in Jakarta on Sunday (December 28, 2025).