Coordinating Ministry for Food Reveals 3 Challenges in Waste-to-Electricity Project

Coordinating Minister for Food Zulkifli Hasan has outlined several strategies to advance the PSEL (Waste-to-Energy Processing) project, which aims to convert waste into a source of green electricity. One key measure involves cutting through regulatory barriers that have stalled progress for 11 years, with the goal of having PSEL facilities operational in 72 locations by 2027-2028.

Echoing the Coordinating Minister, Deputy for Food Affordability and Security Coordination at the Coordinating Ministry for Food, Nani Hendiarti, noted that the regulatory obstacles relate to three main issues: lengthy licensing processes, insufficient investment appeal, and the implementation’s heavy dependence on local governments.

To address these problems, the government has introduced a series of breakthroughs through Presidential Regulation 109 of 2025. These include tackling the waste emergency using environmentally friendly technology, involving the Danantara sovereign wealth fund in partner selection and investment, streamlining administrative procedures at the local government level without a tipping fee, and providing a competitive electricity selling price of USD 0.20 per kWh for all PSEL capacities over a 30-year period.

The development of PSEL is not the sole technology being pursued to solve the waste problem, as it can only address approximately 22% of total waste, necessitating the development of other technologies.

The government is currently pushing for the construction of PSEL facilities in three locations: Greater Denpasar, Bekasi City, and (Greater) Bogor 1. Land preparation for these projects has progressed beyond 70%, making them ready for construction. Furthermore, the central government has designated these three PSEL projects as National Strategic Projects (PSN) to expedite the building process.