China-Indonesia waste-to-power pact neither clean nor green

Indonesia’s growing waste problem has long been viewed as a burden — a mounting strain on landfills, public health and municipal budgets.

The waste-to-energy (WtE) initiative led by Danantara Indonesia, now entering its first phase in Bali, Bogor, Bekasi and Yogyakarta, promises a new approach: transforming municipal waste into electricity while deepening green cooperation with China.

The companies involved — Chongqing Sanfeng Environment Group Co. Ltd., Wangneng Environment Co. Ltd., Zhejiang Weiming Environment Protection Co. Ltd., SUS Indonesia Holding Ltd., and PT Jinjiang Environment Indonesia — bring extensive experience operating WtE facilities.

Their expertise spans large-scale operations, long-term concessions and integrated project management models that combine engineering, financing and operations.

Yet the touted benefits of waste-to-energy warrant a closer look. Transforming trash into electricity does not eliminate environmental harm — it shifts it into a different form.

Incineration emits a range of hazardous substances, from dioxins and heavy metals to fine particulate matter, all of which can endanger nearby residents. What remains after burning — ash — is often toxic and must be managed with extreme care, leaving a lasting ecological footprint.

WtE also poses a structural challenge to waste reduction. To remain financially viable, facilities require a steady supply of garbage over decades. That demand can create perverse incentives to maintain — or even increase — waste generation, encouraging practices that prioritize appearances over genuine environmental gains.

In some cases, this dynamic can amount to greenwashing, overshadowing the goal of truly clean energy. Recycling, composting and other circular economy initiatives risk being sidelined. Despite being labeled “renewable,” WtE carries environmental costs that make it far from a truly clean energy solution.

This is not to dismiss the value of collaboration. China has become a global leader in clean energy technologies, from solar panels and wind turbines to battery storage and smart grid systems.

Its domestic push to decarbonize cities and modernize energy infrastructure has produced companies with world-class expertise that Indonesia can leverage.

If properly structured, partnerships with Chinese firms could accelerate the deployment of solar, wind, hydroelectric and energy storage projects, delivering greater environmental benefits than WtE alone.

For Indonesia, WtE projects should not be treated as a model for green energy but as a reminder that future collaboration must prioritize genuinely clean solutions.

Danantara’s requirement that foreign companies form consortia with local partners is a positive step: Indonesian engineers, technicians and administrators gain exposure to international project standards, operational oversight and management frameworks.

That knowledge would have the greatest impact if directed toward truly clean energy sectors rather than primarily waste incineration.

Strategically, expanding cooperation into solar, wind, hydro and battery storage could position Indonesia as a regional hub for renewable energy innovation.

China’s advanced manufacturing and deployment capabilities could be paired with Indonesia’s abundant natural resources and growing domestic energy market to develop scalable, sustainable infrastructure.

Such partnerships could attract long-term investment, build local capacity and strengthen Indonesia’s credibility in the global energy transition.

The challenge, therefore, is twofold. First, Indonesia must recognize the limitations of WtE as a “green” solution and ensure these projects do not lock the country into decades of polluting infrastructure. Second, it should pivot its cooperation with China toward sectors that deliver clean, scalable and sustainable power.

Solar farms, wind corridors, hydropower and energy storage offer not only environmental benefits but also the opportunity to expand local expertise, create jobs and strengthen energy independence.

Ultimately, success will not be measured by how many tons of waste are incinerated or the megawatts generated by burning garbage. It will be judged by whether these partnerships catalyze a broader clean energy ecosystem — one in which Indonesia’s collaboration with China accelerates the adoption of sustainable technologies.

By reassessing WtE and redirecting focus toward clean energy sectors, Indonesia has the opportunity to transform its urban waste challenge into a stepping stone toward a low-carbon future.

Yeta Purnama is researcher at the Center of Economic and Law Studies (CELIOS), a Jakarta-based think tank