Indonesia's waste-to-energy project has huge potential

Indonesia's BPI Danantara Investment Authority pointed out that the waste-to-energy business, which can return to profitability in 5-6 years, has received attention from Singapore, South Korea, Japan, China, and Europe, although no investors have entered yet.The agency's chief investment officer said the business requires not only capital investment but also advanced technology, and expects the investor to have global experience in municipal waste management. Indonesia's Minister of Coordination for Food Affairs also sees great potential in the business, and while there are many potential investors, cumbersome rules have made it difficult to move forward, he said, adding that Danantara could be involved in the business. In order to promote the development of waste-to-energy, the Indonesian government is integrating three presidential regulations and plans to set the electricity price of waste-to-energy power plants at 18-20 rupiah per kilowatt hour, higher than the 13.5 rupiah set by Pertamina, so as to attract investment. Shanghai Kangheng Environment Co., Ltd. and Wanggazi Municipal Government signed a franchise agreement of domestic waste incineration power generation project, the project is expected to start construction in 2024 and put into operation at the end of 2026, with a total investment of about 200 million dollars, which can effectively alleviate the problem of local garbage disposal and promote the development of the industry. In addition, Indonesia also through the "garbage bank", "Clean Indonesia" project and other initiatives to strengthen waste management, promote the development of circular economy, the goal is to properly dispose of 70% of garbage by 2025, reducing the flow of garbage into the sea.