Indonesia Waste to Energy Market

Indonesia Waste to Energy Market Overview

Indonesia waste to energy industry is growing owing to the rapid development and increased waste challenge in the country. Economic growth with the increasing living standards of the people are propelling the municipal solid waste volumes and energy demand. Indonesia favourable policies is further promoting the efficient waste disposal while using modern technologies to eliminate waste across the country.

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Major Indonesia Waste to Energy Market Drivers

The key factors supporting the growth of the Indonesia waste-to-energy market includes rapid urbanization and industrialization, rising population growth and increasing demand for better waste management in the country. Increasing need for sustainable solution for waste management and rising technological advancement of alternative energy source such as waste to energy technology is expected to support the Indonesia waste-to-energy sector. Due to change in the lifestyle, consumer are inclined towards easy and efficient waste to energy techniques such as thermal, physical and biological treatment to alter waste management across industries. Rapid development of Waste-to-energy sector is the top most priority for the government for the sustainable progress and for the development of renewable energy in Indonesia. Rising government spending for solid waste management and increasing awareness about the waste to energy plants in Indonesia. Indonesian government planned to increase its renewable energy distribution to 23% by 2025. For instance, government invested on 3 renewable projects i.e., Bantar Gebang Refuse-Derived Fuel Plant, Banyumas Minihydro Power Plant and Semarang Waste to Energy project.

Waste to energy in Indonesia is driven by the rising concern regarding the waste management, increasing waste generation and growing focus on non- fuel sources of energy. Growing energy demand from various end use industries along with the increasing energy production is boosting the market growth. Indonesian government has introduced waste-to-energy under national strategic program in 2017 to rapidly deploy WtE facilities in 12 areas in Indonesia. In 2023, government has launched eco-friendly power generation programme with PT Perusahaan Listrik Negara, to generate electricity from processing waste in Jakarta. This is further predicted to lower burden on landfills and approx. 3,000 tonnes waste can be processed as a fuel for power plants. Moreover, this partnership will also help to address the waste issue in Jakarta, which produces more than 7,500 tonnes every day.

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Increasing environmental concerns about the harmful carbon emissions due to the use of conventional fuels across various end-use industries is paving way for clean and effective solution. WTE is considered as a reliable waste management solution as it helps to reduce harmful emissions and improves the efficiency of waste in energy recovery. Even, industries are shifting towards WTE to overcome shrinking landfilling area. Moreover, rising investment on R&D activities to reduce the environmental effects will further create numerous opportunities for waste-to-energy plants in neat future.

Thermal technology is expected to hold largest market share.

Thermal technology is considered as an environment friendly waste solution for urban areas which allows complete incineration of gases released from the waste. Increasing adoption of incineration thermal technology because to its benefits like waste volume reduction, lower greenhouse gas emissions and saving energy is driving the thermal technology segment. Economic growth along with the rise in population has increased the municipal solid waste which is expected to boost the wte Indonesia growth.

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Key development:

• • In 2023, Makassar waste to energy plant is planned to start from 2024. The capacity will be 20MW bio-power project in South Sulawesi, Indonesia.
  • In 2023, Keppel Corporation planned to import 300 MW of low-carbon electricity from Indonesia to Singapore. Energy Market Authority of Singapore planned to import 4 GW by 2035.
  • In 2023, Veolia PET recycling plant has introduced PlastiLoop in Pasuruan. The company will help the industries to cut down harmful environmental effect without compromising the quality of products.
  • In 2022, Jakpro planned to start construction of waste-to-energy incinerator in North Jakarta.
  • In 2020, Mitsubishi Heavy Industries Ltd. opened its subsidiary named as PT. MITSUBISHI HEAVY INDUSTRIES INDONESIA in Jakarta. The company planned to strengthen its position in Indonesia.

Segments covered in the Report:

The Indonesia Waste to Energy Market has been segmented on the basis of Technology. Based on the Technology, the market is segmented into Physical, Thermal and Biological. The Thermal segment is further segmented into Incineration, Gasification, Pyrolysis.

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Market Segmentation

Indonesia Waste to Energy Market by Technology

• • Physical
  • Thermal
    • Incineration
    • Gasification
    • Pyrolysis
  • Biological