Government Issues Perpres 109/2025 to Accelerate Waste-to-Energy Plant Development
Jakarta (ANTARA) - The government has issued Presidential Regulation (Perpres) No. 109 of 2025 to accelerate the development of Waste-to-Energy (PSEL) facilities in various regions of Indonesia.
Presidential Chief of Staff Muhammad Qodari stated in Jakarta on Wednesday that the new regulation provides stronger economic guarantees for investors involved in PSEL projects.
“A fixed electricity tariff, meaning the purchase price of electricity from PSEL is set at USD 0.2 per kWh. A long contract period, with the tariff being final and applicable for 30 years without renegotiation or price escalation,” said Qodari.
He added that PT PLN (Persero) is now required to purchase all electricity generated by the waste processing facilities to ensure the operational sustainability of the business entities.
In addition to electricity purchase guarantees, the government offers various fiscal stimuli to attract developers, ranging from VAT exemptions for domestically produced technology to reductions in Income Tax (PPh). Investment support will also involve the Danantara investment management agency.
Regarding bureaucratic aspects, the government is centralising authority at the central level to cut lengthy processes, including accelerating environmental permit processing from the previous 12-24 months to just two months.
“Local governments are also required to prepare land for PSEL facilities at no cost to developers,” Qodari explained regarding the land provision policy.
Unlike previous regulations that targeted only 12 cities, the new regulation opens opportunities for all regions with waste generation exceeding 1,000 tons per day to build PSEL facilities.
The facilities are planned to be built in 30 locations or agglomerations covering 61 districts/cities, with a projected national waste processing capacity of 33,000 tons per day.
The government targets the groundbreaking for the initial phase to begin in June 2026 at five locations, namely Bekasi City, Yogyakarta City, Greater Bogor, Greater Denpasar, and Greater Bandung.