Indonesia Attracts Global Investment in Waste-to-Energy and Geothermal Projects

JAKARTA, RAKYAT NEWS – During the “Green Initiative Conference 2024” held in Jakarta, Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized the growing global interest in Indonesia’s waste-to-energy (PLTSa) and geothermal energy projects.

He outlined how numerous international organizations are increasingly looking to invest in sustainable financing, showcasing initiatives from countries like the United States and Japan’s Just Energy Transition Partnership (JETP).

Airlangga pointed to Indonesia’s first operational PLTSa project in Solo, Central Java, which generates 8 megawatts of electricity by processing 545 tons of waste daily. This project is part of Indonesia’s strategic national program aimed at enhancing energy production from renewable sources.

He highlighted that this initiative not only contributes to energy needs but also addresses waste management issues.

The minister indicated that several international funding institutions are eager to invest in Indonesia’s green projects. He noted that the focus is primarily on geothermal energy and PLTSa. These sectors are viewed as having significant potential for growth, aligning with global trends toward cleaner energy solutions.

Despite the promising outlook, Airlangga acknowledged the challenges facing the expansion of PLTSa projects in Indonesia. One major issue is the high cost associated with waste management, which presents a hurdle for local governments and project developers alike. The “tipping fee,” which local authorities are responsible for, has become a critical point of contention.

He mentioned difficulties in reaching price agreements between electricity producers and PT PLN, the state electricity company. Often, the costs associated with renewable energy projects can exceed those of traditional energy sources, complicating negotiations and contract arrangements.