Indonesia’s sovereign wealth fund, PT Danantara Investment Management, announced on Tuesday that it plans to raise up to 50 trillion rupiah ($3.1 billion) through Patriot Bonds to support waste-to-energy projects nationwide.
Funds from the Patriot Bonds are earmarked for strategic national projects, particularly in renewable energy, waste-to-energy and infrastructure that is critical for Indonesia’s energy transition and waste management crisis.
The bonds carry a very low fixed coupon of just 2 percent, significantly below Indonesia’s prevailing government bond yields of over 6 percent and also below the central bank’s benchmark interest rate.
The bonds are issued in series with maturities of five, seven and ten years.
The announcement came during the firm’s National Coordination Meeting on Waste-to-Energy in Jakarta, attended by Danantara Chief Executive Rosan Roeslani, Chief Investment Officer Pandu Sjahrir, Home Affairs Minister Muhammad Tito Karnavian and global investor Ray Dalio.
Tackling Waste and Emissions
Rosan said Indonesia generates about 35 million tons of waste each year, which contributes around 2 to 3 percent of national greenhouse gas emissions.
“Together, we are promoting waste-to-energy processing as an innovative solution to the waste crisis while presenting a clean, healthy, and sustainable environment for future generations,” Rosan said.
Danantara said the project offers advantages over conventional landfills, including 50 to 90 percent lower emissions, reduced foul odors and leachate pollution and land savings of about 90 percent. Each facility could supply renewable power to about 20,000 households, Rosan added.
Rollout Across Cities
The first phase of the PSEL program will begin in four to five areas in Jakarta at the end of October, followed by Surabaya and Surakarta. In total, the initiative will target 33 cities.
Rosan said that cleaner and healthier urban environments could also enhance tourism, which has been negatively impacted by poor sanitation.
The government plans to issue a new presidential regulation to simplify waste management rules by replacing three existing decrees, including those on marine waste, waste-to-energy plants, and household waste management. Officials say the new regulation will accelerate project development and make investment more attractive.
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