Sustainable Infrastructure Programme in Asia (SIPA) Indonesia

The Sustainable Infrastructure Programme in Asia (SIPA) is a flagship global initiative led by the Organization for Economic Co-operation and Development (OECD), designed to support countries in Southeast and Central Asia in accelerating their transition toward sustainable, low-carbon, and climate-resilient infrastructure systems.

SIPA operates through a strong partnership with four international implementing organizations:

• International Institute for Sustainable Development (IISD)
• International Transport Forum (ITF)
• United Nations Development Programme (UNDP)
• World Wide Fund for Nature (WWF)

In Indonesia, SIPA is fully aligned with national development priorities and implemented in close collaboration with the Ministry of National Development Planning (Bappenas) and other line ministries. The program provides integrated support—ranging from high-level policy inputs to project-level technical assistance—ensuring that infrastructure development across sectors is sustainable, inclusive, and aligned with Indonesia’s climate commitments under the Paris Agreement and its sustainable development targets.

SIPA’s Vision in Indonesia

Indonesia stands at a critical juncture in its development journey. With rapid urbanization, industrial growth, and increasing demand for public services, there is a growing need to ensure that infrastructure investments are not only economically viable, but also socially inclusive and environmentally sound.

SIPA Indonesia addresses these challenges by focusing on two key pillars:

1. Pillar 1: Supporting National Infrastructure and Development Planning

Through this pillar, SIPA provides policy advisory and technical support to Bappenas in the formulation of Indonesia’s key national development plans:

• RPJMN 2025–2029 (Rencana Pembangunan Jangka Menengah Nasional)-National Medium-Term Development Plan 2025-2029
• RPJPN 2025–2045 (Rencana Pembangunan Jangka Panjang Nasional)-National Long-Term Development Plan 2025-2045.

This includes supporting the mainstreaming of climate resilience, circular economy principles, and low-carbon infrastructure into national development strategies.

Key contributions under Pillar 1 include:

• Developing frameworks for sustainable infrastructure planning
• Supporting multi-dimensional project evaluations
• Promoting green financing and responsible business conduct
• Facilitating regional knowledge exchange and peer learning

By embedding sustainability into long-term infrastructure strategies, SIPA helps ensure that Indonesia’s development trajectory remains inclusive and aligned with global climate and sustainability goals.

2. Pillar 2: Advancing Waste-to-Energy through Refuse-Derived Fuel (RDF)

One of SIPA Indonesia’s core areas of focus is improving the sustainability of the waste management sector through the promotion of Refuse-Derived Fuel (RDF) as a Waste-to-Energy (WtE) solution.

Indonesia faces significant challenges in waste management, including rising volumes of municipal solid waste, limited landfill capacity, and the need to reduce greenhouse gas emissions. RDF offers a promising pathway by transforming non-recyclable waste into a fuel substitute that can be used by energy-intensive industries—such as cement, steel, and power generation.

Led by UNDP, SIPA’s work on RDF focuses on building a solid foundation for a viable, inclusive, and scalable RDF ecosystem. Activities include:

• Policy Review and Roadmap Development:
  Reviewing national policies and proposing a strategic roadmap for expanding RDF implementation from 2026 to 2045.
• Business Models and Best Practices:
  Analyzing successful RDF projects and identifying replicable and scalable models suitable for Indonesia’s local contexts.
• Feasibility Study (FS) Support:
  Reviewing FS documents for RDF facilities in selected locations and developing guidelines for more robust FS preparation and evaluation.
• Technology Assessment:
  Comparing RDF and non-RDF waste treatment technologies to ensure solutions are tailored to Indonesia’s diverse needs and capacities.
• Knowledge Sharing and Stakeholder Engagement:
  Engaging with local governments, the private sector, and civil society to build awareness, foster buy-in, and strengthen implementation capacity.

This pillar emphasizes that RDF is not the only solution—but a strategic component within a holistic waste management system. By enhancing the entire RDF value chain—from upstream waste collection to downstream industrial utilization—SIPA contributes to Indonesia’s circular economy and energy transition goals.

A Collaborative Approach to Sustainable Development

SIPA Indonesia is built on the principle of multi-stakeholder collaboration. The programme brings together government institutions, local authorities, private sector players, academia, and international partners to co-create and implement solutions that are context-specific, impactful, and future-proof.

Key areas of collaboration include:

• Regulatory reform and policy integration
• Sustainable financing mechanisms
• Capacity development and technical training
• Infrastructure project preparation and risk de-risking

By working together, we aim to build a cleaner, more resilient, and more inclusive Indonesia—one infrastructure project at a time.

Why It Matters

SIPA is not just about infrastructure—it’s about transforming the way we plan, build, and govern the systems that shape our economy and daily lives. Whether through low-carbon transport, climate-proof infrastructure, or sustainable waste-to-energy solutions like RDF, SIPA provides the tools and partnerships necessary to future-proof Indonesia’s development.

As the country continues to rise as a regional economic leader, SIPA Indonesia helps ensure that growth is powered by sustainability, equity, and long-term resilience.

Looking Ahead: Shaping Tomorrow’s Infrastructure Today

The challenges of climate change, urbanization, and resource scarcity demand bold and integrated solutions. Through the SIPA Programme, Indonesia is not only responding to today’s infrastructure needs—but also laying the foundation for a future that is cleaner, smarter, and more resilient.

As we look toward 2045—Indonesia’s centennial year—SIPA is proud to be part of the country’s journey in reimagining infrastructure that serves people and the planet. With continued collaboration, innovation, and commitment, we believe Indonesia can lead the way in transforming waste into value, aligning growth with sustainability, and turning national development plans into measurable impact.

Together, let’s build the infrastructure of tomorrow—starting today.