Jakarta. Municipally-owned construction firm Jakarta Propertindo (Jakpro) has teamed up with a consortium to build a facility that will convert the city’s waste to electricity in East Jakarta.

The agreement to jointly build the plant was reached earlier this week between Jakpro and a consortium comprising state-owned construction firm Wijaya Karya (Wika) and waste management company Indoplas Group.

To be built in an area encompassing Cakung and Cilincing subdistricts, the facility is estimated to cost between $350 million and $400 million, the consortium said in a statement reaching Jakarta Globe on Tuesday.

Construction works will take two to three years until completion, starting in the first half of next year.

Despite being located in East Jakarta, the facility will process solid waste taken from West Jakarta, according to Jakpro President Director Dwi Wahyu Daryoto.

It will have a capacity of up to 2,300 tons of waste per day to generate up to 40,000 megawatts of electrical energy, Dwi said.

The city plans to apply for the inclusion of the waste-to-energy plant to the list of central government’s strategic projects, which could result in tax incentives and other benefits.

Indoplas Group President Director Bobby Gafur Umar said the project will be privately funded and will take technological support from a German partner.

“The funding will come in one package with technological support from Germany using machinery in compliance to the Euro 5 emission standards,” Bobby said.

“Hopefully we can commence the project in mid-2021 and enter trial in 2024, so that Jakarta can better manage its waste that has become a long-standing problem in the city,” he added.

After the agreement was reached, Jakpro will set up a team to negotiate with the city government over the waste processing fee and other details.

The next step is to negotiate power supply agreement with state-run electricity company PLN.