The World Bank has approved a US$350 million Local Service Delivery Improvement Project (LSDP) in Indonesia, aiming to provide cleaner and healthier environments for over 15 million people while better protecting 10 million from climate risks. The project will enhance solid waste services and infrastructure, create stable green jobs, reduce methane emissions, and promote a circular economy across the country.
Indonesia’s national government, in collaboration with local authorities, is working to address waste challenges with a strategic approach targeting zero waste by 2050–2060. The “Indonesia Bersih (Clean Indonesia)” program has advanced policy reforms, infrastructure investments, and circular economy measures, but capacity, funding, and operational gaps remain, especially as many cities are projected to reach 2–5 million residents by 2030, increasing waste generation.
The LSDP will initially support 30 local governments, strengthening local capacities to implement sustainable waste management practices while aligning with national targets. The project promotes environmental resilience, sustainable urban development, and economic opportunities through green job creation.
The initiative focuses on three key pillars. At the national level, reforms aim to improve sector performance through source segregation, waste minimization, professionalized service providers, cost recovery, and financial sustainability. Performance-based grants will incentivize local governments to enhance services and implement priorities from solid waste plans. At the local level, the project strengthens institutional and financial capacity through training, implementation support, and knowledge sharing, fostering decentralized project management.
Overall, the LSDP seeks to drive systemic and behavioral changes in waste management, advancing Indonesia toward a circular economy while delivering social, environmental, and economic benefits.
