Like many countries, Indonesia generates large quantities of food waste. Food waste is poorly managed due to inadequate treatment practices, which has a harmful impact on the environment. This paper demonstrates the high potential for food waste valorization in Indonesia and outlines the optimal valorization pathways to inform future decision-making surrounding the management of this waste. This paper also compares various conversion technologies for transforming food waste into liquid, solid, and gaseous biofuels. The challenges and opportunities for wider implementation are also considered, including the integration of supply chains and the logistics of food waste management, the technological feasibility, and the persistent behaviors surrounding food waste and energy in Indonesia. The economic and environmental benefits, the perspectives of improved food waste management practices and sustainable fuels, as well as the policy landscape surrounding waste and sustainable energy are also explored. The challenges of scalability and commercialization are also highlighted in this paper. This review demonstrates the best pathways from food waste valorization to bioenergy, including biogas or biodiesel integrated with a black soldier fly larvae (BSFL) composting system. Despite the scale of resources in Indonesia, the pathways and technologies for processing food waste are lacking. Further in-depth studies are required to demonstrate the sustainability and feasibility of food waste transformation into bioenergy to realize its high value.