News - IDR 7.2 Trillion Investment Enters West Java; Legok Nangka Waste-to-Energy Plant Project Officially Kicks Off

IDR 7.2 Trillion Investment Enters West Java; Legok Nangka Waste-to-Energy Plant Project Officially Kicks Off

Jul, 30 2026

Bloomberg Technoz, Jakarta – The government, through the Ministry of Energy and Mineral Resources (ESDM), officially held the groundbreaking ceremony for the construction of the Legok Nangka Waste-to-Energy (PLTSa / PSEL) National Strategic Project (PSN) in Bandung Regency on Wednesday (July 29, 2026).

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung stated that the project's investment value reaches $400 million, or approximately IDR 7.2 trillion, with a total power generation capacity of 40.79 megawatts (MW).

"PSEL Legok Nangka is designed with a generating capacity of 40.79 MW and an investment value of $400 million or around IDR 7.2 trillion," said Yuliot during the waste-to-energy groundbreaking event in Bandung Regency, quoted from the ESDM Ministry's official YouTube channel on Wednesday (July 29, 2026).

This project represents the first Waste-to-Energy (PSEL) initiative utilizing a Public-Private Partnership (PPP / KPBU) scheme alongside PT Jabar Environmental Solutions (PT JES), backed by a Viability Gap Fund (VGF) facility of IDR 1.34 trillion from the Ministry of Finance.

Additionally, funding is structured through a Joint Crediting Mechanism (JCM) scheme worth $46 million and an international investment of €35 million. This investment is also intended to support the local government in upstream waste management and further waste management training.

"By saying bismillahirrahmanirrahim, we officially commence the construction of the Legok Nangka Waste-to-Energy Project," Yuliot stated.

Yuliot expressed his appreciation to the West Java Provincial Government for supporting the accelerated development of the plant, as well as to the Japanese companies investing in the waste-to-energy sector, Sumitomo Corporation and Hitachi Zosen Corporation who have partnered with national firm PT Energia Prima Nusantara.

"Thank you to the West Java Provincial Government for their support, and to the joint venture companies in this project: Sumitomo Corporation, Hitachi Zosen Corporation, KAISU Electric, partnering with our national enterprise, PT Energia Prima Nusantara," he explained.

The Legok Nangka Waste-to-Energy plant is targeted to process approximately 1,853 to 2,131 tons of waste per day, supplied from Bandung City, Cimahi City, Bandung Regency, West Bandung Regency, Sumedang Regency, and Garut Regency.

Meanwhile, expected revenue streams include a tipping fee set at IDR 386,000 per ton of waste. The electricity tariff is set at $0.0692 per kWh for Years 1–2 based on a business-to-business (B2B) agreement with state utility PT PLN, increasing to $0.1144 per kWh for Years 3–20 under Presidential Regulation No. 35 of 2018.

For context, updates on Japan's funding commitment for the Legok Nangka plant emerged during the 9th Asia Zero Emission Community-Expert Group Meeting (AZEC-EGM) on Monday (January 26, 2026).

The meeting focused on continuing efforts to resolve technical and/or business bottlenecks across various projects within the AZEC framework.

Discussions at the 9th AZEC-EGM were divided into two main sessions. The first session addressed the power sector, focusing on the expansion of the Sarulla Geothermal Power Plant (PLTP), Hululais PLTP, the Java–Sumatra power transmission project, and the Legok Nangka Waste-to-Energy plant.

The second session covered the sustainable fuels sector and other industries, detailing green ammonia initiatives in Aceh and Indonesia's proposal regarding a joint study template for Power Purchase Agreements (PPA).

The Legok Nangka project has undergone an extensive process of technical coordination, financing, and sustainable development planning.

During the meeting, Ueno Asako, Deputy Commissioner for International Affairs at Japan's Ministry of Economy, Trade and Industry (METI), expressed hopes that all six priority AZEC projects would demonstrate significant progress in the near future, particularly before the end of Japan's fiscal year in March 2026.

Previously, the government issued Presidential Regulation (Perpres) No. 109/2025 on Urban Waste Management Through Eco-Friendly Waste-to-Energy Technology.

Under this regulation, the government set the electricity tariff that PT Perusahaan Listrik Negara (Persero) / PLN must purchase from private Independent Power Producers (IPPs) at $0.20 per kilowatt-hour (kWh).

This tariff marks a 48.15% increase from the previous maximum price cap of $0.135 per kWh set in earlier regulations.

Furthermore, PLN is required to prioritize power dispatch from waste-to-energy plants into the grid ("must-dispatched") in accordance with the annual contracted energy amounts agreed upon.

[Source]

West Java Investment Realization in 2024 Reaches 251 Trillion, Highest in Indonesia

BANDUNG, iNewsBandungRaya.id - The West Java Provincial Government (Pemprov) ranks highest in investment in Indonesia with an investment value of IDR 251 trillion in 2024. Regarding this achievement, the Acting Governor of West Java, Bey Machmudin said that the investment value increased by 19.24 percent from 2023. "We are grateful because West Java in 2024 ranked highest in investment with a value of IDR 251.14 trillion for PMA and PMDN," said Bey at the BEJA (Bewara Jawa Barat) Vol. 15 event, at the East Hall of Gedung Sate, Bandung City, Tuesday (11/2/2025). "This number has increased by 19.24 percent from the previous year," he said. In addition to being good news to be grateful for, said Bey, this is also a challenge for the West Java Provincial Government in the future. "We should not be satisfied with the highest ranking in investment, while other aspects are still lagging behind. For example, our human resources must also be in the highest position," he said. Because according to him, West Java is one of the provinces in Indonesia that has a row of the best universities that are the largest in several regions. "West Java has many of the best universities, both in Bandung and Depok which are also part of West Java. So, there is no reason for the people of West Java not to be able to enjoy the results of this investment," he said. Therefore, Bey also asked all parties to play an active role in increasing investment value in their respective fields. "For example, investment in agriculture, such as potato production, must also prioritize products from West Java. We have all that potential," he added. In addition, Bey also asked the West Java Chamber of Commerce and Industry (Kadin) and the Indonesian Young Entrepreneurs Association (Hipmi) to take part in this effort. "I also hope that friends from Kadin and Hipmi can help in this effort. The only way to increase employment and economic growth is by attracting investment," he said. "I think our achievements so far have been very good, and I thank Bank Indonesia for their support," he continued. Meanwhile, the Head of the West Java Bank Indonesia (BI) Representative Office, Muhamad Nur, said that his party was very grateful and proud of the achievements of the West Java Provincial Government. "As a partner of the West Java Provincial Government, we give our highest appreciation to the West Java Provincial Government, as well as our colleagues from DMP PSB," said Nur. "In 2014, Alhamdulillah, West Java was ranked the best. This is certainly all the result of hard work led by Mr. Bey. Although towards the end we were in second place, West Java's talent is indeed a champion who remains a champion in the end," he added. Nur views that the challenges of the West Java Provincial Government in 2025 are very difficult. "Entering 2025, we see that the global, national, and regional economic conditions face many challenges. What we face in 2024 turns out to be not getting lighter in 2025, but instead the challenges are increasing," he explained. In the context of regional development in West Java, said Nur, investment is the main factor in economic growth. In economics, the basic formula is that growth must be driven by investment. "So, without investment, we cannot grow and develop," he said. Therefore, his party will also discuss a lot about what needs to be done, collaborate, and coordinate in order to attract greater investment to support economic growth in West Java and Indonesia. "These are the challenges that we need to understand together. God willing, we from Bank Indonesia will provide an explanation regarding the evaluation of 2024 and the opportunities and challenges in 2025 as a whole," he said. "Hopefully, from there we can formulate strategic steps so that West Java and Indonesia continue to grow and develop. All of this is certainly part of our shared commitment," he said. (SOURCE)

Mar, 17 2025

Bank Indonesia Reminds West Java Economic Challenges Impacted by Global Geopolitics

AYOBANDUNG.COM - Bank Indonesia is optimistic that the West Java economy will grow, despite several challenges related to global geopolitics which are expected to affect the national and West Java economies. According to the Head of Bank Indonesia (BI) West Java, Muhamad Nur, there are several factors supporting West Java's economic growth. Among them are improvements in domestic demand, where the increase in the West Java Provincial Minimum Wage (UMP) and the 13th salary payment incentive are expected to boost domestic demand. "Elections and regional elections in 2024, intense political activities can provide a boost to the local economy. Then the growing trend of digitalization in West Java opens up new opportunities for various industrial sectors," he explained. In addition, the investment climate is maintained. Where the increased optimism of business people after the one-round election provides a positive signal for the investment climate. Horticultural deflation in the second quarter of 2024 indicates an improvement in horticultural productivity in West Java. "Infrastructure development such as the Bocimi and Getaci toll roads is improving connectivity between the North and South West Java regions," he explained. Nevertheless, West Java is also faced with several serious challenges, including the uncertainty of the Fed Funds Rate (FFR) decline. In line with the increasing unemployment rate in the United States. Then central bank policy divergence. Various policies taken by the Central Banks of world countries on the dynamics of the global economy add to the uncertainty. "The conflict in the Middle East that escalated after the death of the Hamas leader added pressure to global stability," said M Nur. In terms of the industrial sector, the performance of exports and the processing industry is restrained due to conditions of global economic uncertainty. Then it is necessary to watch out for potential crop failures. Seasonal shifts have the potential to cause the failure of the gadu rice harvest. Scarring Effect of El Nino: The ongoing El Nino condition has resulted in a non-optimal rice harvest. SOURCE

Aug, 08 2024

KemenKopUKM Encourages Expansion of Access to Capital for Producer Cooperatives

The Ministry of Cooperatives and SMEs encourages the expansion of access to capital for producer cooperatives, including the Gunung Luhur Berkah (GLB) Producer Cooperative in Subang, West Java, which manages the coffee business. Secretary of the Ministry of Cooperatives and SMEs, Arif Rahman, during a visit to GLB Producer Cooperative in Cisalak Village, Subang Regency, West Java, Sunday (4/8/2024), said that producer cooperatives are very important to get expanded access to capital in order to increase their business scale. Moreover, cooperatives that manage coffee commodities, Arif said, have tremendous potential to continue to be developed because they have guaranteed market certainty at home and abroad. Therefore, partnering with GLB Producer Cooperatives is a symbiotic mutualism. GLB Producer Cooperative is a national primary cooperative that focuses on Arabica and Robusta coffee cultivation, which has successfully exported coffee directly to several countries (without intermediaries) such as Saudi Arabia, Egypt, Lebanon and the United States. The cooperative was established in 2016 and has around 800 members with a total of 1200 hectares of coffee land and 300 hectares of rice fields. Unfortunately, the cooperative has experienced capital constraints. "This is a very potential cooperative, which even has a warehouse managed by warehouse receipt, but there are obstacles to capital even though the market demand is large," Arif said in his official statement, Sunday (4/8/2024). Arif explained that the GLB Producer Cooperative currently not only manages its own plantations from its members but also as an aggregator in plantations in West Java which have an area of around 200 hectares. "In the future, we will add another 50 hectares, so today we invite investors to be involved in building partnerships with the GLB Producer Cooperative," Arif said. Arif said that everyone has the opportunity to partner with the GLB Producer Cooperative. "Everyone can be an investor," he said. On the same occasion, Chairman of the Dharma Bhakti Astra Foundation (YDBA), Rahmat Samulo welcomed the initiative of the Ministry of Cooperatives and SMEs (KemenKopUKM). "I personally see this as very prospective for investment and also empowering the community here to be more advanced because the commodities exist, the market also exists," Rahmat said. In the same place, Chairman of the GLB Producer Cooperative Miftahudin Shaf appreciated the various policies and support from KemenKopUKM for the development of cooperatives in running businesses, especially for the Gunung Luhur Berkah Producer Cooperative. "Alhamdulillah, this is very good for the prospects of our members, especially to overcome our current obstacles related to capital for additional plantations in order to achieve the target of one person (farmer) controlling at least 3 hectares so that it enters the economic scale," said Miftah. The calculation, with an investment of Rp65 million per hectare, includes the cost of seeds, planting, maintenance, and harvesting. "It will produce when it enters the age of 2 years, and in the third year the capital can be returned," said Miftahudin. Entering the third year, said Miftahudin, it will have entered the profit revenue sharing stage of 30:70 for investors. "Every year, the price of coffee always increases, never decreases," said Miftahudin. Moreover, said Miftahudin, the GLB Producer Cooperative already has offtaker partners in Egypt (Alpostan Company), Saudi Arabia (Al-Sahabh Trading Company and Abdul Wahid Trading Co), Lebanon (Arc Build/Ghaleb K Faour), and Indonesia (PT Perusahaan Perdagangan Indonesia, PT Sulotco Jaya Abadi, and Mayora). SOURCE

Aug, 05 2024

West Java Financial Services Sector Stability Remains Maintained

TIMESINDONESIA, BANDUNG – Realization of Receivables from the Financing Institution sector in West Java province on August 31 2024 reached IDR 79.78 trillion or positive growth of 10.63 percent (yoy), with the Non-Performing Financing (NPF) ratio still maintained at level 3.06 percent. Based on type of use, financing receivables are dominated by Multipurpose financing at 62.45 percent, followed by Investment financing at 22.81 percent and Working Capital financing at 8.77 percent. Meanwhile, from the Pension Fund sector, as of July 2024, the investment value of pension funds in West Java Province was IDR 25.42 trillion, a decrease of IDR 1.17 trillion (-4.52 percent yoy) compared to July 2023 of IDR 25.83 trillion. When compared with December 2023, the realized investment value also decreased by IDR 0.95 trillion (-3.71 percent ytd). The same thing also happened to the value of Pension Fund Company Assets in West Java Province as of July 2024, where Pension Fund Company Assets reached IDR 25.52 trillion, a decrease of IDR 1.29 trillion (-4.84 percent yoy). "In the Fintech peer-to-peer lending (P2P) sector, as of July 2024, outstanding P2P company loans in West Java Province amounted to IDR 18 trillion, an increase of IDR 2.76 trillion (18.08 percent yoy) compared to July 2023 of IDR 15, 24 trillion. When compared to December 2023, outstanding P2P loans increased by IDR 1.41 trillion (8.51 percent ytd). The quality of P2P loans in West Java Province is reflected in the 90-day Default Rate ratio (TWP90) from 4.14 percent in "In July 2023 it will be 3.09 percent in July 2024. However, the TWP90 ratio is worse compared to the national level of 2.54 percent," said Imansyah, Head of the West Java OJK, Thursday (10/10/2024). Financial Literacy and Inclusion and Consumer Protection Program According to Imansyah, until September 30 2024, the West Java Province OJK Office has held a series of financial education activities in an effort to increase public financial literacy. There were 347 activities with a total number of educational participants of 102,642 people consisting of various segments including pupils, university students, Islamic boarding school students, employees and ASN, farmers, MSMEs and people with Social Welfare Problems (PMKS), namely the Street Artists Community, as well as special segments including others. People with Disabilities, the ojol community and the general public. He also explained that one form of service from the West Java Province OJK Office to consumers and the public is through the Financial Information Service System (SLIK) information service. As of September 30 2024, a total of 33,554 SLIK services have been provided to consumers and the public in the West Java region, consisting of 22,963 SLIK requests directly (walk-in) and 10,591 online SLIK requests. Imansyah provided information that in an effort to eradicate illegal financial activities, from January 1 to September 24 2024, OJK had received 12,733 complaints regarding illegal entities. Of this total, 12,021 complaints were regarding illegal online loans and 712 complaints were related to illegal investments. The number of illegal entities that have been stopped/blocked is 1,459 (Illegal Investments) from 2017 to September 2024. Next are Illegal Loans at 9,180 in the same year span, then illegal mortgages at 251. And the total that has been stopped is 10,890 from 2017 to September 2024. According to the Head of the West Java OJK, in order to enforce consumer protection provisions, the OJK has imposed sanctions through the Task Force for Eradicating Illegal Financial Activities (Satgas PASTI) in the period January to 23 September 2024 to find and stop 2,500 illegal online loan entities and 241 illegal investment offers in a number of sites and applications that have the potential to harm society. Furthermore, the PASTI Task Force has received information regarding 228 bank accounts or virtual accounts that were reported to be related to illegal financial activities. He also explained that in connection with this matter, the PASTI Task Force submitted a blocking request to the bank supervisory work unit at the OJK and then immediately ordered the relevant banks to carry out the blocking. Imansyah informed that apart from blocking bank accounts or virtual accounts, the PASTI Task Force also found contact numbers for debt collectors related to illegal online loans who were reported to have carried out threats, intimidation or other actions that were contrary to the provisions. Apart from that, due to these conditions, the PASTI Task Force has proposed blocking 995 contact numbers to the Ministry of Communication and Information of the Republic of Indonesia. "In terms of monitoring PUJK behavior (market conduct), the West Java Provincial OJK Office has enforced the provisions as regulated in POJK Number 22 of 2023 concerning Consumer and Public Protection in the Financial Services Sector, including by giving administrative sanctions to 25 (twenty five) PUJK, namely the existence of administrative sanctions in the form of fines and written warnings for late reporting; and administrative sanctions in the form of written orders regarding the results of direct/indirect supervision related to violations of consumer protection provisions, especially regarding the provision of information in advertising and product/service marketing procedures," said Imansyah. "The administration of administrative sanctions is carried out in the context of guidance so that PUJK always complies with provisions related to consumer and community protection. In the future, the West Java Provincial OJK Office will continue to pay close attention to the dynamics of the developing economy and improve its supervisory function for financial service institutions, as well as protection for consumers and community to ensure that the financial services sector's contribution to economic growth in West Java Province can continue to be maintained," concluded Imansyah closing the conversation. (SOURCE)

Oct, 11 2024

BYD Accelerates Construction of Factory in Subang, Ensures Completion by End of 2025

Bisnis.com, JAKARTA - Chinese automotive manufacturer, PT BYD Motor Indonesia continues to pursue the completion of the construction of the company's factory located in the Subang Smartpolitan Industrial Area, West Java. Head of Marketing, PR & Government BYD Indonesia Luther T. Panjaitan said that until now, the construction of the factory is still ongoing and is certain to be completed by the end of this year. "Of course, that is BYD's commitment to the government to complete our factory by the end of 2025," Luther told Bisnis, quoted Friday (10/1/2025). Furthermore, he said, at the end of last year, the Ministry of Investment and Downstream/BKPM also visited the BYD factory and saw firsthand the construction process of the electric car factory from the Bamboo Curtain Country. "Based on their [BKPM] inspection and visit, they saw that BYD was in accordance or on-track with the investment progress commitment that we conveyed at the beginning of the initial investment submission. So, so far everything is running smoothly," he explained. Moreover, the BYD factory located in the Subang Smartpolitan Industrial Area is close to Patimban Port. This will make it easier for BYD to export its vehicles to various countries. In addition, the strategic location will also reduce logistics costs. "I also think that the factory area that we chose is a revolution in the industrial side, because so far many motor vehicle industries in particular, so far all seem to be centered on certain areas such as Karawang and Cikarang," he said. So far, the company's main plan is to produce vehicles. However, it is possible for the company to produce other electric vehicle components, including batteries. BYD's manufacturing facility is capable of producing 150,000 electric cars per year. Meanwhile, Subang Smartpolitan is an industrial area managed by PT Suryacipta Swadaya (SCS), an entity of PT Surya Semesta Internusa Tbk (SSIA). The construction of the BYD factory is said to provide an opportunity for local industries to bring the country as a global supplier of electric cars. BYD's total investment in Indonesia is targeting more than US$1 billion or around Rp16 trillion (assuming an exchange rate of Rp16,000 per US dollar). Meanwhile, there are currently four BYD car models available in Indonesia, namely the BYD M6 in the MPV segment, the BYD Atto 3 in the SUV segment, then the BYD Dolphin Hatchback, and the BYD Seal sedan. In the latest developments, the Chinese electric car manufacturer, BYD, has also confirmed that it will bring the premium segment electric car, namely Denza, to Indonesia in the first quarter of 2025. (SOURCE)

Mar, 14 2025

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