PT Indonesia Infrastructure Guarantee Fund (Persero) (PT PII), a Special Mission Vehicle (SMV) under the Ministry of Finance of the Republic of Indonesia, has once again demonstrated its commitment to supporting sustainable infrastructure development through its guarantee for a Public-Private Partnership (PPP) project. This time, the support is directed toward the waste management sector through the Legok Nangka Regional Waste Processing and Final Disposal Facility (TPPASR) Project in West Java Province.

This commitment was marked by the signing of the PPP Cooperation Agreement between the West Java Provincial Government and PT Jabar Environmental Solution (JES), alongside the signing of the Guarantee Agreement between PT PII and PT JES as the Project Company. The event was further followed by the handover of the Regress Agreement from the West Java Provincial Government to PT PII. The signing ceremony took place in Indramayu Regency, West Java, on Friday (June 5).

Acting President Director of PT PII, Andre Permana, stated that the waste management project, which will serve the areas of Bandung City, Bandung Regency, Cimahi City, West Bandung Regency, Garut Regency, and Sumedang Regency, with a processing capacity of up to 2,131 tons per day, represents the first waste management PPP project guaranteed by PT PII. It also forms part of the national effort to address Indonesia’s long-standing and multidimensional waste management challenges.

“The guarantee provided by PT PII is a strategic measure to enhance investment certainty and strengthen the project’s bankability, thereby attracting private sector participation in the development of sustainable waste management infrastructure, particularly involving investors and potential international lenders. PT PII’s support, as a Special Mission Vehicle of the Ministry of Finance, reflects our commitment to supporting National Strategic Projects while expanding support to infrastructure sectors that deliver direct benefits to the public,” said Andre.

Andre further emphasized that the Legok Nangka Regional Waste Processing and Final Disposal Facility represents a significant milestone for PT PII.

“In addition to being the first PPP project guaranteed by PT PII in 2026, it is also the first waste management project in PT PII’s guarantee portfolio. The project is expected to generate substantial benefits for the environment, communities, and the regional economy through waste volume reduction, improved waste management services, and value creation from converting waste into energy,” he added.

Andre also expressed hope that the project would serve as a model for sustainable waste management infrastructure development in Indonesia. Furthermore, PT PII’s guarantee support is expected to enhance investor confidence in environmental infrastructure projects, which have traditionally been perceived as highly complex from both technical and financing perspectives. The project also demonstrates how the PPP scheme can serve as an effective solution for delivering high-quality public services.

“Our support for this project reflects our commitment to sustainability. Waste-to-Energy (WtE) is a key pillar of sustainable development, embodying circular economy principles. This technology transforms municipal and industrial waste into valuable resources in the form of electricity and heat, while reducing the volume of waste sent to landfills by up to 85%,” Andre explained.

The Government’s support through the Viability Gap Fund (VGF) facility for the Legok Nangka Regional Waste Management PPP Project reflects the Ministry of Finance’s commitment to promoting innovative, effective, and sustainable infrastructure financing.

In addition to the VGF facility, the project also received support through the Project Development Facility (PDF) provided by the Ministry of Finance during the project preparation and transaction advisory stages, ensuring that the project is bankable and attractive to investors.

Through the PPP scheme, the Government seeks to strengthen collaboration with regional governments and private sector entities to deliver better public services while supporting sustainable environmental management for communities.

On the same occasion, West Java Governor Dedi Mulyadi stated that the Legok Nangka facility is expected to provide a long-term solution for regional waste management while reducing dependence on existing landfill facilities that have reached their capacity limits.

“I appreciate PT PII’s role in providing the government guarantee for this project, as it serves as a strong foundation to ensure the project is implemented in accordance with its commitments,” said Dedi.

Equipped with waste-to-energy technology capable of reducing waste volume by up to 85% and generating up to 40.79 MW of electricity, the Legok Nangka facility is expected to become a milestone in transforming waste management in West Java into a modern, sustainable, and equitable system for the Greater Bandung area and surrounding regions.

As urban and regional waste volumes continue to increase while existing final disposal facilities face capacity constraints, the project’s implementation is becoming increasingly important. Through modern waste processing technology, the project will not only contribute to reducing the volume of waste sent to landfills but will also support efforts to reduce greenhouse gas emissions and improve environmental quality.

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