Hitting Three Birds with One Stone: Waste-to-Energy, the Circular Economy Test, and PT DENERA

Authors : Toto Pranoto, Adam Faiana Amru, LM FEB UI,

Topic : Waste-to-Energy, Circular Economy, PT DENERA, Renewable Energy, Public Policy, State-Owned Enterprises

The BUMN Research Group (BRG) Lembaga Management FEB UI recently published a new perspective on May 18, 2026, authored by Toto Pranoto, Adam F. Amru, and the BRG Team. The document evaluates Indonesia's waste management and energy transition strategies.

PT Daya Energi Bersih Nusantara (PT Denera), a waste-to-energy holding entity formed by Danantara Investment Management on April 1, 2026, was not established merely to add megawatts to the grid. It sits at the convergence of three structural pressures in Indonesia: the urban waste management crisis, energy security vulnerabilities, and the urgent push for a circular economy.

Key Insights from the Publication:

• In 2025, based on SIPSN data from 244 reporting regencies/cities, only 34.5% of waste was managed.
• Simultaneously, 85% of the national power generation capacity remains fossil-based.
• Furthermore, food loss and waste result in economic losses of up to Rp551 trillion per year.
• The enactment of Presidential Regulation (Perpres) 109/2025 replaces Perpres 35/2018, broadening the mandate from merely waste-to-electricity (PLTSa) to a spectrum that includes electricity.
• This new spectrum also encompasses bioenergy, renewable fuels, and other by-products.

Strategic Recommendations:

• Waste-to-Energy (WtE) must be positioned strictly as a residue processor, rather than a vehicle for burning mixed waste.
• Projects should build multi-stream revenue architectures, including tipping fees, integrated waste management services, by-products, and emission reduction values, rather than relying solely on the USD 0.20/kWh electricity tariff.
• It is critical to prioritize proven operational technologies.
• The costly failure of the Tees Valley project must not be repeated.
• A continuous emission monitoring system that is transparent and open to the public must be established from the first day of operations.

To explore the complete benchmarking analysis and operational recommendations for Indonesia's waste-to-energy sector, download the full document below.