Danantara-backed Piyungan facility will convert 1,000 tonnes of waste daily into electricity.
Yogyakarta, Indonesia, is set to advance a major waste-to-energy (WtE) project, with groundbreaking for a new facility in Piyungan, Bantul, targeted for December 2026. Construction is scheduled to begin in January 2027, with operations expected in the third or fourth quarter of 2028.
Developed by Indonesia’s Danantara Investment Management (DIM) through its subsidiary PT Daya Energi Bersih Nusantara (Denera), the facility is intended to address Yogyakarta’s waste management needs while generating electricity. It will occupy 5.7 hectares of provincial government land in Sitimulyo, Piyungan, adjacent to the former Piyungan waste processing area but on a separate site.
The project is expected to attract Rp2.5 trillion to Rp3 trillion in investment, depending on the final design. At full capacity, it is projected to process around 1,000 tonnes of waste per day and generate approximately 18–20 megawatts of electricity, potentially supplying around 15,000 households. The electricity will be developed in cooperation with Indonesia’s state-owned electricity utility, PLN.
The project is currently in its preparation phase. Mr. Fadli Rahman, Investment Director at Danantara Investment Management and CEO of Denera, said environmental studies, engineering design and land preparation are underway. These preparations are expected to lead into physical construction in January 2027, with completion targeted for the end of 2028.
Meeting the facility’s processing capacity will depend on a reliable supply of waste. Yogyakarta City and the regencies of Sleman and Bantul have therefore signed an agreement with the Yogyakarta provincial government and DIM covering waste supply and land provision. Together, the three areas are projected to supply around 1,099 tonnes of waste per day, while Kulon Progo and Gunungkidul could participate if additional capacity is required.
To support construction and future operations, the Yogyakarta provincial government will prepare the site and supporting infrastructure, including access roads and water supply. It will also coordinate permitting and community engagement, while the project is not expected to require resident relocation.
The facility is expected to deliver economic benefits alongside its waste and energy functions. Construction could create 500–1,000 jobs, while operations are expected to require 100–150 workers, with local employment prioritised.
At the same time, the facility will complement existing waste reduction, sorting and recycling programmes rather than replace them. Yogyakarta Mayor Mr. Hasto Wardoyo has also called for existing waste transport workers to remain part of the system once the facility becomes operational.
The Piyungan facility is part of Danantara’s broader national WtE programme, which is being developed with partners covering project development, engineering, procurement and construction, technology, operations and maintenance, financing and related infrastructure.
With land and waste supply commitments in place and construction preparations underway, the Piyungan project could become an important milestone in Indonesia’s efforts to develop more sustainable waste management. By converting waste into electricity while creating jobs and supporting local infrastructure, it could help Yogyakarta turn a persistent environmental challenge into a source of energy and economic value.
Source: Indoconnect Desk
