Finance Minister Purbaya mediates obstacles in Makassar PSEL project
Jakarta (ANTARA) - Finance Minister (Menkeu) Purbaya Yudhi Sadewa held a debottlenecking hearing to address land and regulatory problems impeding the Pengolahan Sampah Energi Listrik (PSEL) project in Makassar City.
The complaint was submitted by PT Sarana Utama Synergy (PT SUS), the company leading the consortium for the PSEL or Pembangkit Listrik Tenaga Sampah (PLTSa) Makassar project.
PT SUS reported that the new Makassar city administration is not fulfilling the previously agreed PLTSa cooperation agreement. The project has faced obstacles since 2022.
“This project must continue to use the existing land that we have already acquired and prepared for construction. Ensuring PT SUS as the legitimate project developer, confirming that all preliminary work we have carried out is based on the signed cooperation agreement and related investments,” said PT Sarana Utama Synergy’s President Director Stephen Yee at the Ministry of Finance office in Jakarta on Thursday.
PT SUS stated that its position remains based on Presidential Regulation No. 35 of 2018. The reason is that all signed Cooperation Agreements and investment commitments poured in are based on that old regulation.
On the other hand, the Makassar City Government wants the project to be shifted to the regulation of Presidential Regulation No. 109 of 2025. PT SUS considers this demand unilateral because it was never included in the initial agreement and could not be predicted when the first contract was agreed.
PT SUS emphasised that the transition to Presidential Regulation No. 109 of 2025 is not merely an administrative matter, but has material impacts on the company’s obligations and investment value.
Nevertheless, PT SUS does not rule out the possibility of following Presidential Regulation No. 109 of 2025, provided that the regulatory changes are resolved through proper renegotiation so that investments and obligations in the old contract do not suffer material losses.
In addition, the developer requests that the project continue to use the previously acquired land and receive guarantees as the legitimate developer.
Through the debottlenecking session, Finance Minister Purbaya offered a middle-ground solution to enable negotiation between the involved parties.
Purbaya assessed that the implementation of the PSEL project needs to be accelerated, considering that the need for a clean environment is an investment in creating a better urban order.
“(Waste) management on the road, already done. Then use the new scheme. The payment becomes without tipping fees anymore. (Makassar City) doesn’t need to spend (budget), because the new one is like that too. Danantara also asks the government to pay, paid in the electricity price later. So no problem. It’s the same,” he said.