Danantara to Auction 6 Waste-to-Electricity Projects, Here is the List
Danantara is set to auction six Waste-to-Energy Electricity Processing (PSEL) projects in the middle of this year. The government is also guaranteeing the purchase price of electricity and preparing incentives for business entities wishing to participate in these projects.
Presidential Chief of Staff Muhammad Qodari explained that six out of 12 PSEL projects will be initiated by Danantara in the first semester of 2026.
“This programme has been designated as a National Strategic Project focused on handling waste in urban areas with large generation of approximately 1,000 tonnes per day,” said Qodari, quoted from an official statement on Thursday (23/4/2026).
He detailed the six projects as follows:
PSEL Lampung Raya with a capacity of 1,167 tonnes per day, which will serve the City of Bandar Lampung, South Lampung Regency, and East Lampung Regency.
PSEL Bekasi Regency located at the Burangkeng Final Disposal Site (TPA), with a capacity of 1,500 tonnes per day.
PSEL Medan Raya with a capacity of 1,700 tonnes per day, planned to be built at the Terjun TPA.
PSEL Semarang Raya at TPA Jatibarang with 1,100 tonnes per day.
PSEL Surabaya Raya with a capacity of 1,100 tonnes per day.
PSEL Serang Raya at TPA Cilowong with a capacity of 1,161 tonnes per day.
In addition, Danantara will also auction PSEL projects in Tangerang City, Tangerang Regency, Palembang City, Makassar City, and South Tangerang City.
Qodari stated that if successfully auctioned and realised, these projects are expected to support the target of developing PSEL in 30 locations or agglomerations across 61 regencies/cities throughout Indonesia by 2029.
Electricity Selling Price
On that occasion, the electricity selling price was also explained, providing economic guarantees for investors. This is stipulated in Presidential Regulation Number 109 of 2025 on Urban Waste Management through Waste Processing into Renewable Energy Based on Environmentally Friendly Technology.
The electricity purchase price is based on a long-term contract and the obligation for PT PLN (Persero) to purchase the electricity generated by PSEL facilities.
“The fixed electricity tariff, namely the purchase price of electricity from PSEL is set at US$0.20 per kWh. Long-term contract period, with the tariff being final and applicable for 30 years without renegotiation or price escalation. PT PLN (Persero) is obligated to purchase all electricity generated by PSEL facilities,” said Qodari.
In addition, to attract business entities to develop PSEL, the government is offering various fiscal stimuli. Such as VAT exemptions for domestically produced environmentally friendly waste technology, income tax (PPh) reductions for project developers, and investment support through the involvement of investment management institutions like Danantara.
Furthermore, this Perpres 109/2025 also covers bioenergy, up to renewable fuels such as refuse-derived fuel or renewable BBM.
Qodari also explained that the government is centralising authority to accelerate on-site execution. Thus, the environmental permitting process, which previously took 12-24 months, is targeted to be completed in just 2 months. Local governments are also required to prepare land for PSEL facilities without cost to the developers.