PT Danantara Investment Management held its National Coordination Meeting on Waste-to-Energy (PSEL) at Wisma Danantara, Jakarta, on Tuesday, September 30. The project is projected to launch at the end of October. 

The event was attended by Danantara CEO Rosan Roeslani, Danantara Chief Investment Officer Pandu Sjahrir, and Minister of Home Affairs Muhammad Tito Karnavian. Also present were Danantara Advisory Board member Ray Dalio, Deputy Minister of Environment Diaz Hendropriyono, Deputy Minister of Energy and Mineral Resources Yuliot, as well as mayors from across Indonesia. 

Rosan stated that 35 million tons of waste accumulate in Indonesia each year. If left unaddressed, it will have negative impacts on health, society, and the environment. Waste also contributes around 2–3% of national greenhouse gas emissions. 

“Together, we are promoting waste-to-energy processing as an innovative solution to the waste crisis while presenting a clean, healthy, and sustainable environment for future generations,” Rosan said during the meeting. 

He explained five main advantages of the PSEL project compared to conventional landfills (TPA): First, Greenhouse gas emissions generated are 50–90% lower than TPAs, secondly it reduces foul odors and water pollution caused by leachate. Third, Each PSEL can supply renewable energy to around 20,000 households. Fourth, Saves about 90% of land space, allowing it to be used for economic activity and increasing land value.Fifth, land cleanliness improved, boosting tourism appeal. 

“Poor sanitation harms national tourism,” Rosan added. 

The PSEL program will begin in 4–5 areas in Jakarta by the end of October, followed by Surabaya and Surakarta. In total, the program will target 33 cities across Indonesia. 

Danantara Focuses on Waste-to-Energy Investment 

Danantara previously announced that the Presidential Regulation (Perpres) concerning waste-to-energy management has been finalized. The regulation was issued alongside the launch of Danantara’s Patriot Bonds. 

This investment initiative will be allocated to several strategic projects, including national waste management. Through the Patriot Bonds, Danantara aims to raise up to USD 3.1 billion (around IDR 50 trillion). 

At the time, Rosan said that tender processes would soon be carried out in several ready regions, including Jakarta, Bandung, Bali, Semarang, Surabaya, and Makassar. 

“And in other priority regions that are ready, we will hold an open and transparent tender process,” Rosan told reporters at the Parliament Complex, Senayan, Jakarta, Thursday, September 4. 

Furthermore, the government will issue a new Presidential Regulation to replace three older regulations on waste management. The move is intended to simplify bureaucracy and improve the business process, which is currently seen as complicated and less attractive to developers. 

The three existing regulations are Presidential Regulation No. 83/2018 on Marine Waste Management, Presidential Regulation No. 35/2018 on Accelerating the Development of Environmentally Friendly Waste-to-Energy Power Plants, and Presidential Regulation No. 97/2017 on National Policy and Strategy for Household Waste Management.

The new regulation will cover several aspects, including the closure of open-dumping landfills (TPA) and the development of waste-to-energy (WtE) technology. 

This article is published in partnership with Katadata 

Original article here