Danantara Breaks Ground on $188 Million Waste-to-Energy Mega-Plant to Power Grid and Slash Urban Landfill Crisis

JAKARTA, Investortrust.id — Danantara Indonesia, the nation’s sovereign investment superholding, broke ground Wednesday on a Rp 3 trillion ($188.68 million) waste-to-energy facility in West Java to tackle mounting urban landfill saturation and supply clean baseload power.

The project is being developed through Danantara's clean energy investment arms, PT Danantara Investment Management (DIM) and PT Daya Energi Bersih Nusantara (Denera), at Ciketing Udik in Bantar Gebang, home to the capital region's primary municipal waste hub.

The mega-infrastructure push marks a pivotal commercial proof-point for municipal waste monetization in emerging Asia, converting high-volume urban trash into reliable base electricity.

Securing a guaranteed $0.20 per kWh off-take tariff from state-run utility PT Perusahaan Listrik Negara (PLN) de-risks cash flows for institutional capital, establishing a scalable commercial blueprint for circular infrastructure across Indonesia's rapidly urbanizing metros.

Converting 1,500 Tons of Daily Waste into Clean Baseload

Danantara Indonesia Chief Investment Officer Pandu Sjahrir emphasized the urgency of deploying institutional capital toward structural environmental bottlenecks during the project's launch broadcast in Bekasi on Wednesday, Aug. 26, 2026.

"This initiative proves that synergy between the central government, regional administrations, Danantara Indonesia, and diverse stakeholders can deliver concrete solutions to critical urban waste emergencies," Sjahrir stated during the groundbreaking ceremony.

The plant is engineered to process 1,500 metric tons (1,653 US tons) of municipal waste daily, utilizing moving grate incinerator technology equipped with advanced air pollution control systems built to European Union Industrial Emissions Directive (EU IED) standards.

Beyond diverting massive waste inflows from overcapacity open landfills, the installation will generate up to 1,000 local green jobs and distribute clean power to tens of thousands of households across West Java's industrial belt.

Solid Off-Take Backing and Cross-Agency Execution

The waste-to-energy complex holds National Strategic Project (PSN) status under Presidential Regulation (Perpres) No. 109/2025, operating under project company PT Bekasi Environment Nusantara as the official developer and asset operator.

Commercial viability was locked in following the execution of a binding Power Purchase Agreement (PPA) with state electricity company PLN alongside official environmental impact analysis (AMDAL) clearance issued by the Ministry of Environment on Aug. 24.

Coordinating Minister for Food Affairs Zulkifli Hasan welcomed the multi-agency mobilization on Wednesday, noting that private-public alignment will significantly accelerate regional waste processing backlogs.

Indonesian Army Chief of Staff General Maruli Simanjuntak added that the facility will also interface with military-developed pyrolysis processing units to refine accumulated waste into alternative fuels ahead of the plant's full commercial launch in mid-2028.