Press Release
No.102/RELEASE/PLNIP/2025
Indonesia Power Promotes Community-Based Economy Through Utilization of FABA at Labuan Power Plant
Banten, December 15, 2025 – Coal combustion residue FABA (Fly Ash Bottom Ash), long considered to have no value, has now transformed into a new source of livelihood for the community. PT PLN Indonesia Power (PLN IP) has introduced an innovation in utilizing FABA from the Banten 2 Labuan Power Plant for the production of paving blocks, managed by the Joint Village-Owned Enterprise (BUMDESMA) Menes. This initiative not only reduces environmental impact but also opens the door to a more inclusive community-based economy.
The program is part of Desa Siapsiaga, a synergy between the National Counterterrorism Agency (BNPT), the Ministry of Villages, Development of Disadvantaged Regions (Kemendes PDT), and PLN IP. Desa Siapsiaga is designed to strengthen community resilience against radicalism by reinforcing local economic capacity. The inauguration of the paving block workshop took place in Muruy Village, Menes District, Pandeglang, on Monday (December 15, 2025), marking a tangible step in transforming waste into blessings.
Bernadus Sudarmanta, President Director of PLN IP, emphasized that the utilization of FABA aligns with ESG (Environmental, Social, Governance) principles and can generate a multiplier effect for communities.
"We are grateful that FABA has economic value that can be harnessed to strengthen the economy of communities around the power plant. Ultimately, this will build social resilience and stability in the region," he said.
Bernadus explained that currently only one production module is operating, utilizing about 1% of the total FABA waste. One module can employ six workers and produce 5,000 paving blocks per day, generating revenue of approximately IDR 10 million. If expanded to 100 modules, the potential employment absorption could reach 600 people.
"We hope that collaboration with the Ministry of Villages, the Ministry of Public Works and Housing (PUPR), cooperatives, and communities can establish a sustainable economic ecosystem," he added.
Pandeglang Regent, Dewi Setiani, expressed appreciation for selecting Pandeglang as the location for the Desa Siapsiaga program. She noted that strengthening the community’s economy is a strategic step to prevent the spread of radical ideologies.
"A strong economy makes communities more resilient against negative influences. We hope this support will be maintained to ensure sustainability and improve welfare," said Dewi.
In addition to the paving block workshop, the program will be expanded with the provision of plant seeds, broiler chickens, and laying hens to support food security in line with government directives.
The FABA utilization program is not merely a pilot project but a new hope for residents around the Labuan Power Plant. What was once seen as piles of ash is now viewed as a source of livelihood. The paving block workshop provides access to decent employment, reduces unemployment, and fosters community confidence. Each production module absorbs six local workers, and with expansion, hundreds of people will benefit. Daily revenue of IDR 10 million is not just a figure but a symbol of the increasingly dynamic village economy.
Moreover, improved welfare makes communities more resilient against negative influences, including radicalism. With additional support in the form of plant seeds and livestock, the village economic ecosystem will grow stronger, making Pandeglang an example of how industrial waste management can transform lives and build social resilience from the grassroots.
For more information about PLN Indonesia Power’s programs, please visit the official portal: www.plnindonesiapower.co.id
Contact:
Agung Siswanto
Corporate Secretary, PLN Indonesia Power
Tel. (021) 5267666
About PLN Indonesia Power
PLN Indonesia Power is the largest Generation Company in Southeast Asia and a subholding of PT PLN (Persero). The company focuses on technological innovation, operational efficiency, and energy sustainability to support the national agenda toward Net Zero Emissions.
