Bogor Waste-to-Electricity Project Commences, Electricity Tariffs Revealed

Danantara Indonesia, through PT Danantara Investment Management (DIM) and PT Daya Energi Bersih Nusantara (Denera), inaugurated the construction of the Bogor Raya 1 Waste-to-Electricity (PSEL) facility in Galuga Village, Cibungbulang District, Bogor Regency, on Thursday (17/09/2026).

The project is targeted to manage over 500,000 tonnes of waste per year, reducing emissions from landfills by up to 80% and cutting carbon emissions by approximately 640,000 tonnes of CO2 equivalent per year.

The PSEL facility has also signed a Power Purchase Agreement (PPA) with PT PLN (Persero). In accordance with Presidential Regulation Number 109 of 2025, the PPA will be executed between PLN and each Waste-to-Energy Developer and Manager (BUPP), with an electricity purchase tariff set at US$ 0.20 per kWh for the total capacity generated.

As previously noted, Bogor Raya 1 is the third PSEL facility to enter the construction phase, following the Denpasar Raya (Bali) and Bekasi City PSEL projects. Covering the Bogor Regency and Bogor City agglomeration areas, this facility is part of Danantara Indonesia’s efforts to accelerate the development of sustainable, technology-based urban waste management solutions, as mandated by Presidential Regulation Number 109 of 2025.

Pandu Sjahrir, Chief Investment Officer of Danantara Indonesia, stated that the Bogor Raya 1 PSEL project is designed to deliver a tangible impact on waste management, green energy development, and local economic empowerment.

Zulkifli Hasan, the Coordinating Minister for Food Affairs of the Republic of Indonesia, emphasised that the waste issue is an emergency that must be resolved. “Previously, there were around 160 regulations that complicated the process; we have now streamlined them to just three. Consequently, waste-to-electricity projects can proceed more rapidly and provide benefits to the community,” said Zulkifli.

Bogor Raya 1 PSEL does not only provide an environmental solution but also creates sustainable economic value and opens new economic opportunities for the community, including the creation of approximately 1,200 green jobs. The development of the PSEL is designed to act as a catalyst for a sustainable waste management ecosystem and to encourage the realisation of a circular economy.