Jakarta, INTI - Danantara, together with six regional governments, signed a cooperation agreement to accelerate the development of Waste-to-Energy (PSEL) facilities at the Coordinating Ministry for Food Affairs building in Central Jakarta on Monday, May 11, 2026.
The six regions involved include Greater Lampung, Greater Serang, Greater Semarang, Greater Medan, Greater Bogor 2, and Bekasi Regency, which is categorized as a combined agglomeration area.
The collaboration follows Presidential Regulation No. 109 of 2025 concerning Urban Waste Management Through Technology-Based Waste-to-Energy Processing.
Coordinating Minister for Food Affairs Zulkifli Hasan stated that PSEL development is prioritized for regions generating more than 1,000 tons of waste per day or areas already classified as being in a waste emergency condition.
“The emergency areas are those exceeding 1,000 tons of waste daily, such as Bantargebang and other locations where the waste piles are already reaching the height of 15- to 16-story buildings. These must be accelerated into clean energy and electricity generation,” he told reporters.
He explained that waste-to-energy technology has been proven effective and is considered environmentally safe, as it does not produce unpleasant odors or toxic substances.
The government is targeting the construction of PSEL facilities at 25 locations covering 62 cities and regencies as part of a broader effort to address waste management issues nationwide.
Meanwhile, regions producing less than 1,000 tons of waste per day will be regulated under separate policies.
“The goal is to create a cleaner and greener Indonesia, safe, healthy, clean, and beautiful, especially in urban areas within the next three years. Half of the projects are expected to be completed by 2027, while the remainder will be finalized by May 2028,” he said.
US$5 Billion Investment Targets National Waste Crisis
During the same event, Chief Investment Officer (CIO) of Danantara Investment Management Agency, Pandu Sjahrir, said the initiative represents one of the country’s major infrastructure projects, particularly in terms of financing.
He revealed that the fundraising target for the project has reached US$5 billion, reflecting the significant scale of investment required.
“In terms of fundraising alone, the value has reached US$5 billion. This is not a small project. We need support from all parties, including the public, because this is a waste crisis,” he stated.
Previously, the DKI Jakarta Provincial Government had already signed a separate agreement with Danantara on Monday, May 4, 2026, for the development of a similar Waste-to-Energy project in Jakarta.
Conclusion
The collaboration between Danantara and regional governments marks a major step toward accelerating Indonesia’s waste-to-energy transformation, combining large-scale investment with sustainable urban waste management to support cleaner cities and long-term environmental resilience.
Read more: Zulhas: The Government is Targeting Completion of 25 PSEL Locations by 2028