Danantara Takes Over Waste-to-Energy Project, Completion Target Set for 18 Months
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JAKARTA, Investortrust.id — Coordinating Minister for Food Affairs Zulkifli Hasan said on Monday, Aug 25, 2025, that President Prabowo Subianto has instructed his cabinet to accelerate the long-delayed waste-to-energy project, setting a strict deadline for completion within 18 months.
The project, designed to convert municipal waste into electricity, had stalled for a decade due to bureaucratic bottlenecks and regulatory hurdles.
Zulkifli, widely known as Zulhas, noted that the president gave a direct warning to ensure delivery. “President reminded us that this can be finished in 18 months. We will push to achieve that,” he said after attending a limited cabinet meeting on economic policy at the Presidential Palace complex in Jakarta.
The minister explained that project contracts have already been signed and are now awaiting a presidential regulation, which he said would be issued within one or two days. The administrative process is expected to take six months, followed by an 18-month construction phase. However, Prabowo has demanded that completion be accelerated ahead of the initial two-year target.
To streamline execution, the government has appointed Indonesia’s sovereign wealth fund Danantara to take control of the project. Zulkifli said the new scheme eliminates unnecessary bureaucracy by involving only three entities: Danantara, state electricity company PLN, and the Ministry of Energy and Mineral Resources (ESDM).
“In the past, there was a tipping fee mechanism that required involvement from regents, governors, local legislatures, the Ministry of Finance, the Ministry of Environment, the Ministry of Energy, and then PLN. That will no longer be the case. Now, Danantara signs the contract with PLN, ESDM provides the permit, and the project is executed,” Zulkifli said.
At a previous cabinet session in June, Prabowo instructed his ministers to accelerate waste management efforts at both upstream and downstream levels.
These included expanding waste treatment facilities based on reduce, reuse, recycle (3R) principles, developing integrated waste management centers, and advancing downstream solutions such as waste-to-energy (WTE) plants and refuse-derived fuel (RDF) facilities.
The president emphasized that local governments remain responsible under the Waste Management Law No. 18/2008 but called for central government intervention to resolve persistent bottlenecks.
The initiative represents a significant shift in Indonesia’s waste policy, with Danantara playing a central role in consolidating financing and execution. It is also part of Prabowo’s broader agenda to improve urban infrastructure and promote renewable energy as the country faces mounting environmental challenges.
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