Palembang: Indonesia is grappling with a significant waste management crisis, producing over 65 million tons of waste annually. Chinese waste-to-energy company Zhejiang Jinneng Electric Power Technology Co., Ltd. aims to address this issue by establishing a waste-to-energy (WTE) plant in Palembang, Sumatra. The facility’s groundbreaking ceremony occurred in September 2024, marking the company’s first overseas WTE venture.
According to Global Voices, the Chinese company signed a power purchase agreement with Indonesia’s state-owned electricity company, Perusahaan Listrik Negara (PT PLN), to develop a system of incinerators and turbines in Palembang. This system is designed to process 1,000 tons of solid waste per day, capturing heat from incinerated waste to generate electricity. The energy produced will be purchased by PLN, as outlined in the agreement.
China has rapidly developed its waste-to-energy sector over the past two decades, with the number of waste incineration plants increasing from 67 in 2005 to 1,010 in 2023. Despite becoming a leader in waste-to-energy technology, China faces an overcapacity issue, leading companies like Jinneng to explore overseas markets. Southeast Asia, with its growing demand for waste-to-energy incineration projects, has become a key focus for Chinese companies.
Indonesia, the world’s third-largest trash importer by 2022, has banned plastic waste imports starting January 2025. The country struggles with inadequate waste management systems, with only 10 percent of waste being managed in some regions. This situation has led to significant environmental pollution, as Deputy Environment Minister Diaz Hendropriyono noted in an interview with Antaranews.
The potential for waste-to-energy processing in Indonesia is substantial, with the government aiming to increase the number of WTE facilities from two to 30 by 2029. The sector has attracted foreign investors from China, Singapore, Japan, and Europe. Coordinating Minister for Food Affairs Zulkifli Hasan stated that the government is working to streamline regulations to attract more investors.
Despite the potential benefits of waste-to-energy technology, challenges remain. Researchers have found that electricity feed-in tariffs and tipping fees are insufficient to make WTE facilities commercially viable in Indonesia. The country’s waste tends to have high moisture content, requiring costly pre-processing. Priyanto Rohmatullah from the Ministry of National Development Planning highlighted these challenges at an environmental symposium.
Environmental NGO Indonesian Forum for the Environment (Wahana Lingkungan Hidup, WALHI) has expressed concerns about the importance of proper upstream waste management. Yuliusman, Executive Director of WALHI South Sumatra, emphasized the need for infrastructure and facilities for household waste collection to support WTE operations effectively.
Globally, WTE plants have faced controversy due to concerns about environmental and health impacts. Though social opposition is currently limited in Indonesia, it may grow as the industry expands. Transparency of environmental and health data will be crucial in addressing public concerns. Sophisticated and advanced WTE facilities can offer a viable and environmentally friendly option for generating electricity, provided that these challenges are adequately addressed.