Food Coordinating Minister: Regulatory Simplification to Accelerate PSEL Projects

Coordinating Minister for Food Zulkifli Hasan has announced that the government is simplifying regulations for the construction of Waste-to-Energy (PSEL) projects to accelerate the handling of urban waste problems. “My task is only one: to fix the regulations. From hundreds, now only three rules remain,” Zulhas said at the Waste to Energy Talks: Reducing Waste, Powering the Future event in Jakarta on Thursday. According to him, the construction of waste-to-energy facilities previously proceeded slowly because developers had to go through various stages of approval, licensing, and inter-agency coordination. He cited the example that developers had to coordinate with regional governments, Regional People’s Representative Councils (DPRD), provincial governments, the Ministry of Finance, the Ministry of Energy and Mineral Resources, the Ministry of Environment, and PT PLN (Persero) before a project could be realised. “I give an example: if I were a businessperson wanting to convert waste into electricity, I would have to contact the district DPRD, the regent, and if it involves two districts, the approval of the governor and the provincial DPRD,” he said. After the regional stages, he continued, developers still had to resolve funding issues, energy sector permits, environmental impact analyses, and power purchase agreements with PLN. Zulhas said President Prabowo Subianto subsequently formed a waste management task force and assigned him to oversee regulatory simplification and the resolution of cross-ministerial and institutional obstacles. “If there are obstacles, I just call a meeting. If I still cannot resolve them, I report. The President will lead,” he said. The simplification is reinforced through Presidential Regulation Number 109 of 2025 concerning Urban Waste Management through the Processing of Waste into Renewable Energy Based on Environmentally Friendly Technology. This regulation replaces Presidential Regulation Number 35 of 2018, which previously governed the acceleration of waste-to-energy plant construction. The move comes amid the nation’s massive waste problem. Based on government data, Indonesia’s waste generation reaches approximately 141,926 tonnes per day. Under the new scheme, the government is directing the partner selection process and investment development through the Daya Anagata Nusantara (Danantara) Investment Authority, while PT PLN (Persero) acts as the buyer of electricity produced by the PSEL facilities. Zulhas said the government is prioritising resolving waste problems in urban areas with emergency status by 2027–2028. “The emergency ones must be completed by 2027, 2028. The others by 2029,” he stated. He added that PSEL projects are directed towards urban clusters with waste generation of at least 1,000 tonnes per day to meet economic scale requirements. The government has identified 24 PSEL clusters that can cover two to three districts or cities in one service area. According to Zulhas, the acceleration of these projects must be accompanied by the readiness of regional governments to ensure sustainable waste collection, transportation, and availability. The government is targeting the completion of waste-to-energy facilities in priority areas in stages by early 2028.