By Stefanno Sulaiman
JAKARTA (Reuters) -Sovereign wealth fund Danantara Indonesia plans to launch at least eight waste-to-power projects by the end of October to manage waste and increase renewable energy production, executives said on Tuesday.
The programme is aimed at addressing the waste crisis faced in several parts of the country, which accumulates 35 million metric tons of waste nationally per year, Danantara Indonesia Chief Executive Rosan Roeslani said.
Of the total waste accumulation, 61% is not properly managed, causing air, water and land pollution, he said.
“This waste-to-energy programme will be conducted in 33 cities, but the priority is in Jakarta, where there will be four to five locations,” Rosan said, adding that other cities in Java and Bali would follow.
Partnering with technology providers, Danantara will invest in the projects, while state utility Perusahaan Listrik Negara will take on the electricity generated.
Every 1,000 tons of waste is expected to generate about 15 megawatts (MW) of generation capacity, Rosan said.
Danantara is currently reviewing the investment needed for the projects, but power plants typically requires 2 trillion to 3 trillion rupiah ($179.75 million) for every 1,000-ton processing capacity, Managing Director Stefanus Ade Hadiwidjaja said.
Under Indonesia’s 2025-2034 electricity supply plan, the government aims to build 453 MW of waste power plants, with an estimated $2.72 billion investment.
The government has removed the tipping fee charged to regional governments, and Danantara will finance the technical and feasibility studies to reduce costs and encourage participation.
Participating regional government will be required to provide up to 5 hectares (12.36 acres) of land for each power plant.
($1 = 16,690.0000 rupiah)
(Reporting by Stefanno Sulaiman; Writing by Fransiska Nangoy; Editing by David Stanway and Subhranshu Sahu)
