Government to Auction Six Waste-to-Energy Projects in First Half of 2026

Jakarta (ANTARA) - The government will auction six Waste-to-Energy (PSEL) development projects in the first semester of 2026 to accelerate national urban waste management. The Head of the Presidential Staff Office, Muhammad Qodari, stated in Jakarta on Wednesday that these power plants are estimated to process around 7,000 tonnes of waste per day from six priority locations that will soon be tendered. “This programme has been designated as a National Strategic Project (PSN) focused on waste management in urban areas with significant generation of approximately 1,000 tonnes per day,” Qodari said. He explained that this step is part of the national strategy to reduce waste generation while producing new renewable energy. The first location to be auctioned is PSEL Lampung Raya with a capacity of 1,167 tonnes per day to serve Bandar Lampung City, South Lampung Regency, and East Lampung Regency. The next projects include PSEL Bekasi Regency at Burangkeng Landfill with a capacity of 1,500 tonnes per day, as well as PSEL Medan Raya at Terjun Landfill with a capacity of 1,700 tonnes per day. In addition, the government is including PSEL Semarang Raya at Jatibarang Landfill and PSEL Surabaya Raya, each with a capacity of 1,100 tonnes per day. The sixth location on the list is PSEL Serang Raya at Cilowong Landfill with a capacity of up to 1,161 tonnes per day. “These six locations are ready to be processed for auction by Danantara,” Qodari said. The realisation of these projects is expected to support the target of developing PSEL in 30 locations or agglomerations spread across 61 regencies/cities throughout Indonesia by 2029. Cumulatively, these facilities are targeted to process 33,000 tonnes of waste per day, equivalent to 23% of the total national waste generation. The government is also providing several attractive incentives for investors, such as setting the electricity purchase price at USD 0.20 per kWh for 30 years. Additionally, there is a reduction in environmental permitting from the previous 24 months to just two months, as well as VAT exemptions for domestically produced environmentally friendly technology. “Presidential Regulation No. 109 of 2025 introduces several significant breakthroughs to address regulatory bottlenecks and accelerate the implementation of the PSEL programme in Indonesia,” Qodari said.