Washington, DC, December 18, 2025. The World Bank today approved a new project through which more than 15 million Indonesians will gain cleaner, healthier environments, and 10 million will be better protected from climate risks. The US$350 million Local Service Delivery Improvement Project (LSDP) will strengthen solid waste services and infrastructure with the potential to create stable green jobs, cut methane emissions, and advance a circular economy future for Indonesia.
"The national government is currently working closely with local governments to address waste problems by 2029 through a strategic mix of approaches," said Tito Karnavian, Minister of Home Affairs of the Republic of Indonesia. "With this support from the World Bank and innovative solutions, we aim to achieve our national vision of zero waste by 2050-2060."
"Indonesia Bersih (Clean Indonesia)" program has advanced policy reforms, infrastructure investments, and circular economy measures (reduce, reuse, recycle). However, sustained efforts are still needed to overcome capacity, funding, and operational constraints in solid waste management, especially as most cities are projected to reach 2-5 million residents by 2030, driving higher waste volumes. The LSDP was developed to strengthen local capacity starting with 30 local governments across Indonesia and support national targets for waste reduction and sustainable urban development.
"The World Bank is excited to support the Indonesian government's vision to achieve zero waste that can bring significant benefits to millions of people," said Carolyn Turk, World Bank Division Director for Indonesia and Timor-Leste. "Through a strong partnership with both Ministry of Home Affairs and Ministry of Public Works, this project will promote environmental resilience and build sustainable cities that can bring jobs and economic opportunities to communities across Indonesia."
The LSDP supports the government's efforts on waste management through three pillars at the national and local levels. National reforms aim to improve sector performance, including source segregation, waste minimization and diversion, professionalized service providers with budget autonomy, cost recovery and financial sustainability. The introduction of performance-based grants, for the first time at scale in Indonesia's solid waste management sector, is expected to incentivize local governments to deliver better services and fund priorities from their solid waste plans, aligned with national reforms. For local capacity building, the objective is to strengthen institutional and financial capacity through training, implementation support, and knowledge sharing, with decentralized project management.
Together, these pillars aim to drive systemic and behavioral changes, create stable green jobs, cut methane emissions, and advance a circular economy future for Indonesia.
