<![CDATA[Indonesia faces increasing pressure on its waste management system due to population growth, urbanization, rising waste generation, and limited landfill capacity. Waste-to-energy and recycling infrastructure can reduce landfill dependence and support the transition toward a circular economy. However, such projects require substantial upfront investment and face risks related to financing, revenue certainty, regulatory changes, and limited local fiscal capacity, reducing their attractiveness to private investors. This study aims to examine how fiscal incentives can reduce investment barriers and improve the financial viability of waste management projects in Indonesia by drawing lessons from Japan’s Eco-Town Programme. A qualitative comparative case study approach is employed, comparing the Sunter Intermediate Treatment Facility (ITF) in Jakarta with Japan’s Eco-Town Programme. The study analyzes secondary data from policy documents, government reports, institutional publications, and academic literature, focusing on fiscal incentives, investment risks, financing mechanisms, regulatory certainty, and government–private sector cooperation. The findings indicate that the initial tipping fee mechanism for ITF Sunter provided revenue support but created potential long-term fiscal pressure and was insufficient to address broader investment risks. The subsequent feed-in tariff mechanism under Presidential Regulation No. 109 of 2025 seeks to improve revenue certainty and reduce dependence on local government financing. Lessons from Japan demonstrate that effective investment de-risking requires an integrated ecosystem combining fiscal support, regulatory stability, co-financing, recycling industry development, and risk-sharing. The study recommends an integrated fiscal incentive framework linking waste-to-energy incentives with upstream recycling support and long-term regulatory certainty to strengthen investment viability and fiscal sustainability.]]>
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