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SIPA Indonesia docs
30 July 2025

Turning Waste into Opportunity: Lessons from Banyumas and Cilacap’s RDF Journey

In late July 2025, the Sustainable Infrastructure Programme in Asia (SIPA), supported by UNDP and BAPPENAS, brought together government officials, community leaders, private companies, and development partners for a site visit and stakeholder dialogue on Refuse-Derived Fuel (RDF). The four-day event in Banyumas and Cilacap was more than just a technical visit—it was a chance to see how local innovation and collaboration are reshaping waste management in Indonesia.

Two Regions, Two Approaches
In Banyumas, the story starts with the community. Local self-help groups (KSM) lead the way, sorting waste, processing it, and turning what was once seen as a problem into valuable resources like RDF, compost, and even maggot-based protein feed. Their model is rooted in participation, proving that when citizens are empowered, they can become the driving force of a circular economy.
A few hours away in Cilacap, the approach looks different but equally inspiring. Here, the local government works hand in hand with the private sector, including cement companies such as PT Solusi Bangun Indonesia and PLN’s power plants. Together, they have built a reliable RDF supply chain that not only manages waste but also fuels industry with a greener alternative to coal. This model demonstrates how structured public–private partnerships can attract investment and deliver long-term impact.

Why It Matters

Waste management has long been one of Indonesia’s toughest challenges. Both Banyumas and Cilacap show that there is no “one-size-fits-all” solution—but there are practical, scalable models that can be adapted across regions. From community-driven initiatives to industry-backed partnerships, these approaches highlight the potential of RDF to cut landfill waste, reduce carbon emissions, and create new economic

Looking Ahead

The insights gained from the visit will directly shape Indonesia’s RDF business model and national roadmap, helping policymakers and practitioners chart a path forward. The hope is that what is working in Banyumas and Cilacap can be replicated and expanded, accelerating the country’s transition towards a circular economy and a cleaner energy future.

As one participant put it during the dialogue, “This is not just about managing waste—it’s about changing the way we see waste, from a burden into a resource.”

With collaboration at every level—from the grassroots to government and industry—Indonesia is taking big steps toward turning its waste challenges into green opportunities.



SIPA-UNDPIndonesia.2025