Indonesia is pinning high hopes on converting waste into electricity. State asset fund Danantara has begun construction of the country's first waste-to-energy plant in Denpasar, Bali, and a second broke ground in Bekasi, West Java, just last month. Plans call for approximately 30 similar facilities nationwide. It is a bold move in response to a genuine emergency, and implementation has moved quickly.However, this major initiative in the downstream sector will only yield results if matched by similar efforts upstream. The Environment Ministry has acknowledged that these facilities will address only about 13 percent of the waste produced. The reality is that we are striving to build modern, 21st-century cities while still managing waste much as we did a century ago, and no matter how sophisticated downstream technology, it cannot make up for failures in upstream management.
When waste is properly sorted at the household level, new waste-to-energy facilities receive the higher-quality input needed for efficient operation, while recyclable and organic materials can be repurposed rather than left to rot. This is the foundation of a circular economy, a significant economic opportunity for Indonesia. It could also pave the way to formal employment for millions of people who currently sort and collect waste informally.
