Yogyakarta (ANTARA) – Indonesia’s sovereign wealth fund Danantara plans to break ground on a waste-to-energy plant in Yogyakarta in December 2026, with construction expected to start in January 2027, an investment director said.Danantara Investment Management, a subsidiary of the fund, signed an agreement with Yogyakarta Province and the governments of Yogyakarta City, Bantul and Sleman Districts.Fadli Rahman, DIM’s investment director, said Tuesday that land preparation and grading will take place in the third and fourth quarters of 2026 ahead of the groundbreaking.“The development process is currently in the preparation phase. Construction will begin in January 2027 and run until the end of 2028,” he said in Yogyakarta on Tuesday.The project is estimated to cost Rp2.5 trillion to Rp3 trillion, or about $140.49 million to $168.59 million, depending on the final design, Rahman said.The facility will be built on about 5.7 hectares next to the former Piyungan Integrated Waste Management Site in Bantul, he said.Yogyakarta Governor Sri Sultan Hamengku Buwono X said electricity generated by the facility will be managed in cooperation with state-owned utility PT PLN.The heads of Sleman, and Bantul Districts and mayor of Yogyakarta City signed the agreement, while Gunungkidul and Kulon Progo can still manage their waste independently, the governor said.“Therefore, these three regions are the ones requiring third-party participation,” he said.