Indonesia produces over 18 million tons of waste annually, with most of it ending up in overcrowded landfills. In cities like Jakarta, landfills such as Bantar Gebang are nearing capacity—raising concerns about environmental degradation, methane emissions, and long-term public health.
Previous WTE projects were stalled by regulatory uncertainty, land acquisition problems, and unclear revenue structures. Now, with Danantara at the helm, the government is streamlining policy and investment to attract global participation.
“We are designing Danantara to solve institutional and financial bottlenecks that have hindered this sector for too long,”
— Febrio Kacaribu, Head of the Fiscal Policy Agency (FPA), via The Jakarta Post, 2025
Why This Matters for Expats and Property Investors
For expatriates living in Jakarta and other major urban areas, waste management is often an under-discussed but critical factor in overall urban livability. Flooding, odor, sanitation, and visual pollution from unmanaged landfills all impact quality of life and property values.
With this renewed WTE push, the government is signaling a serious commitment to sustainability, which could lead to:
- Cleaner urban environments
- Better public infrastructure near residential zones
- Improved flood management through waste diversion
- Enhanced appeal for eco-conscious residential developments
Real estate developments aligned with green infrastructure—such as those using renewable energy, smart water systems, or waste management protocols—may find growing demand from both locals and expat tenants.
Strategic Role of Danantara Energi
Danantara is designed to act as a special mission vehicle (SMV). It will be responsible for:
- Project acceleration in seven targeted cities
- Facilitating public-private partnerships (PPPs)
- Securing foreign technology and capital for waste-to-energy conversion
- Supporting local governments in regulatory harmonization
The seven priority cities for Danantara’s early-stage rollout include Jakarta, Surabaya, Tangerang, Bekasi, Makassar, Denpasar, and Semarang—all of which face high waste production and urgent landfill pressure.
The Investment Case: Waste as Opportunity
Indonesia’s turn toward WTE is also seen as a green investment opportunity. The Finance Ministry is reportedly looking to offer blended finance options, concessional loans, and guarantees to attract both domestic and international capital.
The Indonesian government has also committed to:
- Reducing waste sent to landfills by 70% by 2025
- Increasing the share of renewable energy in the national energy mix
- Developing circular economy models that integrate waste, energy, and economic output
With Indonesia’s renewable energy roadmap maturing and ESG concerns growing globally, the country’s WTE sector may become a new frontier for impact investment in Southeast Asia.
A Cleaner Future for Jakarta and Beyond
As Jakarta develops into a global-facing city—through new public transportation, international partnerships, and infrastructure upgrades—urban waste remains one of its most complex challenges. If Danantara delivers, the capital could soon see:
- Landfill reductions in areas like East Jakarta
- Cleaner air quality in residential districts
- Modernized waste processing zones that support smart city development
For expats and investors, these changes can enhance confidence in the long-term livability and environmental health of Jakarta and other urban centers.
Source:
The Jakarta Post. (2025). Indonesia Banks on Danantara to Reignite Stalled Waste-to-Energy Projects. https://www.thejakartapost.com/business/2025/06/17/indonesia-banks-on-danantara-to-reignite-stalled-waste-to-energy-projects.html
