PT SMI dan TNI Gerakan 1000 Personil Bersihkan Kalimalang
The Ministry of Environment and Forestry is collaborating with PT Sarana Multi Infrastruktur (PT SMI) to optimise the utilization of Refuse-Derived Fuel (RDF) across various industries nationwide. PT Sarana Multi Infrastruktur (Persero) (PT SMI), under the Support for Infrastructure Investments in Indonesia (S4I) programme—a collaborative initiative funded by the European Union (EU) as part of its Global Gateway initiative and implemented by KfW Development Bank, with Dornier Group as the Implementation Consultant—has undertaken a study on RDF off-takers.
This study is part of efforts to promote sustainable urban infrastructure and renewable energy projects across Indonesia. RDF stands as a vital component in achieving the United Nations Sustainable Development Goals, particularly those related to affordable and clean energy, sustainable cities, and climate action. By converting waste into energy, RDF not only reduces the environmental impact of landfills but also supports global efforts towards net-zero emissions—a key target set by the Paris Agreement and reinforced by various national and regional initiatives.
MoEF and PT SMI, within their respective mandates, are encouraging local governments in Indonesia to adopt RDF technology and engage with stakeholders, including RDF off-takers, to support government programmes. The EU-funded S4I programme is supporting this cooperation by preparing a comprehensive nationwide study on RDF off-takers for 2023-2024. Additionally, supporting this cooperation, the EU-funded S4I programme will continue to provide technical support for infrastructure project pipeline development at PT SMI, including RDF facilities, which contribute to reducing coal consumption.
The EU recognises Indonesia’s ambitions in addressing ongoing solid waste management issues by incorporating a circular economy approach into its national development strategy. This strategy aims to manage waste comprehensively, from upstream to downstream, moving beyond outdated end-of-pipe solutions. RDF plays a key role in this circular economy model by transforming solid waste into energy, thereby alleviating landfill pressure and reducing carbon emissions through the provision of an alternative to fossil fuels.
However, further collaboration among the government, industry, and financial institutions is essential. Through KfW-Implemented S4I Programme, the EU also supports PT SMI in building the necessary capacity to mobilise financing for Indonesia’s sustainable development and establish infrastructure project pipelines leading to Net Zero strategy.
The study’s findings were presented at a dissemination event on October 1, 2024, with approximately 100 stakeholders invited, including representatives from regional governments, potential RDF off-taking industries, and other stakeholders active in sustainable solid waste. The study aims to provide a comprehensive analysis of Indonesia’s RDF sector by evaluating the readiness of selected industries for RDF off-take and outlining the potential for future investments. This analysis is divided into two phases.
The first phase involves a Status Quo Analysis of RDF technology implementation, accompanied by strategic recommendations. The second phase involves a Screening process through multi-criteria analysis, assessing potential RDF demand and supply clusters to prioritise key areas. Additionally, the study critically evaluates the role of financing and incentive mechanisms within the sector, advocating for their further development to support ongoing and future RDF activities, ensuring sustainability and adaptability to changing conditions. The outputs presented during dissemination event include RDF supply and demand mapping, covering potential landfills and off-taking industries (Cement, Fertilizer, Metal, Pulp & Paper). The study concludes with a set of recommendations and an outlook on the next steps, providing guidance for future initiatives and investments in Indonesia’s RDF sector.
The study identified priority regions with high potential for RDF offtake, as well as optimisation strategies for RDF facility establishment in order to accelerate RDF adoption. It appeals to cooperation between stakeholders and foster infrastructure project ideas leading to reduce landfill usage and support industrial decarbonization. These actions are complementary to enhancing waste reduction and sorting practices, investing in advanced infrastructure and technology, further developing clear RDF standards, and fostering collaboration between government and industry stakeholders. By implementing these measures, Indonesia is advancing towards a more sustainable waste management system and reducing its reliance on coal.
The Ministry of Environment and Forestry of Indonesia plays a key role in advancing Refuse-Derived Fuel (RDF) adoption. As the main body for environmental regulation, it promotes RDF use to reduce waste and landfill impact. By encouraging local governments and partnering with the private sector, the Ministry integrates RDF into industries like power plants and cement production. It also collaborates with agencies and international partners to set RDF standards, supporting decarbonization and promoting a circular economy.
PT Sarana Multi Infrastruktur (Persero) (PT SMI) was established in 2009 as an Indonesian state-owned enterpris and aims to serve as a catalyst for accelerating national infrastructure development in Indonesia. PT SMI supports the fulfilment of its government’s infrastructure development objectives. PT SMI has extensive experience and a proven track record in financing infrastructure project investments across the country, and effectively acts as the infrastructure finance and development arm of the Ministry of Finance. PT Sarana Multi Infrastruktur (Persero) (PT SMI) and the European Union (EU), together with German KfW Development Bank (KfW) and Agence Française de Développement (AFD) in a Team Europe approach are taking concrete steps to work together in achieving sustainable development in Indonesia under the SDG Indonesia One Platform.
S4I - PT SMI and KfW signed a grant facility agreement amounting to EUR 16 million under the Support for Infrastructure Investments in Indonesia (S4I) programme, funded by the EU as part of its Global Gateway strategy. S4I aims to promote sustainable investment in municipal infrastructure and renewable energy. This agreement allows PT SMI to assist municipal governments and renewable energy sponsors in project preparation and environmental and social safeguards aspects. KfW is also providing support to PT SMI in the process of becoming Indonesia’s Development Bank.
Global Gateway is a European strategy to boost smart, clean and secure links in digital, energy and transport sectors and to strengthen health, education and research systems across the world, aiming for a transformational impact in these areas. Global Gateway aims to mobilise up to €300 billion in investments through a Team Europe approach, bringing together the EU, its Member States and their financial and development institutions. The focus is on smart investments in quality infrastructure, respecting the highest social and environmental standards, in line with the EU’s interests and values: rule of law, human rights and international norms and standards.
The EU is not responsible for the contents of communication materials related to EU-funded or co-funded actions prepared by implementing partners. Its contents are the sole responsibility of PT SMI and S4I Implementation Consultant and do not necessarily reflect the views of the European Union.