Jakarta (ANTARA) – Indonesia is accelerating Waste-to-Energy (WtE) development under a new presidential regulation, aiming to turn waste into renewable power while creating economic value and strengthening long-term waste management.For decades, Indonesia's waste management has relied largely on a collect-transport-dispose model. While the approach has helped maintain sanitation services, it has become increasingly inadequate as waste generation rises, landfill capacity shrinks, and environmental pressures intensify.The policy reflects a broader shift in perspective, recognizing waste not simply as a disposal problem but as a resource capable of generating electricity, reducing emissions, and supporting a more circular economy.Presidential Regulation No.109 of 2025 on Municipal Waste Management through Environmentally Friendly Renewable Energy-Based Waste-to-Energy provides the legal foundation for that transition by strengthening institutional coordination, financing mechanisms, and investment certainty.The reform comes as Indonesia generates around 141,926 metric tons of waste each day, with only about 26 percent properly managed. The remainder continues to strain local governments, burden landfill capacity, and underscore the need for more integrated solutions.Open dumping also remains a challenge in many areas, contaminating soil, water, and air while releasing methane, one of the world's most potent greenhouse gases.Transforming waste governanceWithin this framework, WtE is designed to complement existing waste management practices rather than replace them. Waste reduction at the source, recycling, organic waste treatment, and residual waste management remain essential, while WtE provides an additional solution for metropolitan areas and urban agglomerations that generate large volumes of waste.The transition is beginning to take shape through projects such as the Keramasan WtE plant in Palembang, South Sumatra.During a visit to the site in mid-July, Vice President Gibran Rakabuming Raka said construction was progressing on schedule, describing the project as part of the government's effort to improve waste management while expanding renewable energy infrastructure.The facility is designed to process up to 1,000 metric tons of waste per day using two moving-grate incinerators, each capable of handling 500 tons daily.Keramasan WtE Operations Manager Satriawan Kirana said the plant is expected to generate around 17.7 megawatts of electricity for Palembang's main power grid.Residue that meets technical standards can also be reused as construction material, extending the project's value beyond electricity generation.Building a sustainable systemBuilding new facilities marks only the beginning. The greater challenge lies in ensuring WtE plants remain financially and operationally sustainable over the long term.Presidential Regulation No. 109 of 2025 strengthens the investment framework by clarifying institutional responsibilities, financing arrangements, and electricity procurement mechanisms.To support implementation, the government has appointed the Daya Anagata Nusantara Investment Management Agency (Danantara) together with PT Daya Energi Bersih Nusantara (Denera) to coordinate investment and oversee developer selection, while state-owned utility PLN guarantees electricity purchases to provide greater long-term certainty for investors.PLN Director of Project Management and New and Renewable Energy Suroso Isnandar said PLN would purchase electricity generated by WtE facilities for 30 years at a tariff of 20 U.S. cents per kilowatt-hour under Presidential Regulation No. 109 of 2025.The guaranteed tariff is expected to improve project bankability, given the substantial upfront investment and relatively long payback period associated with WtE infrastructure.Unlike conventional power plants, WtE facilities also depend on a continuous supply of waste, efficient municipal collection systems, and predictable revenue throughout their operating life. Without those elements, even modern facilities could struggle to perform at full capacity.From policy to implementationImplementation is now entering a critical phase. PT Danantara Investment Management (DIM) and Denera have selected eight development partners for eight WtE project sites serving 20 districts and cities across Indonesia.DIM Chief Executive Officer Pandu Sjahrir said the next stage includes completing power purchase agreements (PPAs), reaching financial close, establishing joint ventures, and beginning construction by late third quarter or early fourth quarter of 2026.Implementation, however, will vary across regions because waste generation, fiscal capacity, institutional readiness, and municipal services differ widely among local governments.Environment Minister Mohammad Jumhur Hidayat said WtE facilities are expected to process around 22.5 percent of Indonesia's waste under the national roadmap to achieve 100 percent managed waste by 2029, primarily in metropolitan areas and urban agglomerations with high waste volumes.Their success will therefore depend on integration with other waste management approaches. Waste reduction at the source, recycling, TPS3R facilities, waste banks, organic waste treatment, and refuse-derived fuel (RDF) technology will remain integral to Indonesia's broader waste management strategy.WtE also promises benefits beyond electricity generation.PT Pertamina Director of Business Transformation and Sustainability Agung Wicaksono said the Kartamantul WtE project would involve international partners through technology transfer programs aimed at strengthening Indonesia's skilled workforce.Serving Yogyakarta City together with Sleman and Bantul districts, the facility is expected to process at least 1,000 metric tons of waste daily while generating around 30 megawatts of electricity.Ultimately, Indonesia's waste management transformation extends beyond improving environmental quality. Its success will depend on building an integrated system in which national policy, local implementation, investment, and technology reinforce one another.When that happens, waste will no longer represent the end of the consumption cycle but a resource capable of generating cleaner energy, greater economic value, and more sustainable growth.