All stakeholders in Indonesia might highlight the current issues, such as the waste management problem, lack of ratio electrification in east Indonesia, and the target of 23% of Renewable Energy implementation by 2025. In July 2019, the president of Indonesia was disappointed with the lack of inter-ministry coordination to solve the waste management problems by installing the waste power plant (PLTSa) in 12 cities in Indonesia. The ratio electrification, especially in East Indonesia, has impacted energy availability, energy efficiency, energy security, and energy sustainability. Therefore, the Java-Bali centrist related to the development of electricity infrastructures has made the inequality in east Indonesia. On the other hand, even though the Indonesian government has taken steps to try to solve energy distribution problem by building power plants throughout the country with the total of 35.000 MW by 2019 and 80.000 MW by 2025, it is difficult to implement those kinds of high capacity of power plants in thousands rural and remote areas in Indonesia. The grid connections and the development of transmission lines are the main problems to transmit the electricity towards household and industry in the rural area and remote area, especially in East Indonesia. Moreover, the distribution of large volumes of fuel and logistics has related to the operational activities problem, which impacted the time delivery, fuel stock, and also cost. Considering that the electricity sector is fundamental in triggering economic growth, the government has started to change the paradigm to install the centralized and high capacity power plant to decentralized and small scale scattered power plant. Therefore the distributed power generation has to be the national program in order to achieve the ratio electrification target as well as the strategy to obtain the target of 100 per cent electrification ratio. For the purpose of reliability, cost-efficiency, sustainability, environmentally friendly, the government has the target of 23 per cent of Renewable Energy by 2025. Due to acquire those targets above, the government need to set up the community-based waste to energy by empowering the local community to produce waste pellets as the alternative energy to substitute fossil fuel consumption.
As the waste (domestic and biomass) is very potential in Indonesia, furthermore the community-based waste to energy can solve the waste management problems in the big cities, and the product of waste pellets can be utilized as the fuel for diesel engines and steam power plants, which are dominating in Indonesia energy and electricity industry. The waste pellet contains the calories of 3300 – 4500 kcal/kg. The waste pellets, therefore, can be converted to synthetic gas with the gasification process. The synthetic gas can be the substitution of solar fuel for diesel engine, which dominantly installed in remote and rural area of East Indonesia. Additionally, the waste pellets can be mixed up with the coal for steam power plant (co-firing). The community-based waste to energy has become the solution of the intermittency problems in photovoltaic and wind turbine as well as the high investment and its operational cost. Moreover, it can support the government to create the distributed power generation program. In terms of technical aspects, both community-based waste to energy and distributed power generation has already proven. It has become the program of the Ministry of Mineral and Energy Resources, Ministry of Environment and Forestry, and PT PLN (Persero) Group. This project may solve both waste (municipal, forestry, fishery, and farm industries) and energy (heat and electricity) problems in Indonesia. Recognizing that the government have to switch the paradigm of the centralized project into decentralization to solve both waste management and ration electrification ratio problems, creating the Supply-value chain management model is critically needed to ensure the quality, quantity, time delivery, and cost of waste pellets product and its continuity of supply. However, as an archipelago country, which has more than 15.000 islands with 70.000 villages/rural area, it is difficult to realize the program without empowering local community. The challenge needs to be faced is the lack of qualified human resources has become the main issue to maintain daily operational activity in the process of development. Installing the appropriate technology and continuously community development with the social-psychological-cultural approaches has become the solution to spread out the community-based waste to energy for distributed power generation program.
As the country with the highest Moslem community in the world, sharia business system and economic democracy should be implemented in Indonesia. The capitalism in the economy must be changed to the sharia economic system where the community has become the centre economy, and all trading activities must be based on the real transaction (not future and stock exchange). Many developed countries have succeeded to implement the sharia economic system and create a circular economy for their communities and positively impact their countries. It is relevant to Indonesia, and it can be implemented for all economic activities.