Home Affairs Ministry Encourages Regions with Sufficient Waste Supply and Financial Capacity to Implement Waste-to-Energy Plants

The Directorate General of Regional Administration Development at the Ministry of Home Affairs, through its Directorate of Regional, Urban and State Border Affairs, held a talk show on Waste-to-Energy (PSEL) processing as a strategy for handling the national waste emergency. The event aimed to socialise the policy for accelerating PSEL development following the implementation of Presidential Regulation No. 109 of 2025. The discussion forum involved representatives from ministries and agencies, regional environmental offices, academics, businesses, media and other stakeholders in waste management, and was held at the Hermina Grand Ballroom, ASTON Hotel Kemayoran, Central Jakarta, on Tuesday, 18 August 2026.

PSEL is a waste processing system based on environmentally friendly technology capable of significantly reducing waste volume while generating electricity. The technology is designed to process large-scale waste of up to 1,000 tonnes per day, produces no odour, and utilises its residue to promote a circular economy. Several PSEL projects in Bekasi, Bogor Raya and Denpasar Raya have been designated as National Strategic Projects as part of accelerating the policy’s implementation.

Indonesia’s waste burden is substantial. The country generates approximately 141,926 tonnes of waste daily, equivalent to 51.8 million tonnes per year. However, as of August 2026, only about 25 percent of waste has been successfully managed, while the remaining 75 percent remains inadequately handled. This situation has caused waste accumulation in various regions, increasing the risk of environmental pollution, public health problems and growing pressure on landfill capacity. More advanced waste management is therefore needed, including PSEL.

Amran, Director of Regional, Urban and State Border Affairs at the Ministry of Home Affairs, said that local governments have shown enthusiasm for implementing PSEL. However, not all regions have a minimum waste generation of 1,000 tonnes per day as required by Presidential Regulation No. 109 of 2025. He said an inter-regional cooperation or agglomeration approach is needed to meet this capacity.

Furthermore, local government readiness involves not only land provision but also the availability and readiness of locations, water sources, waste transportation systems, certainty of waste supply, budgetary support, inter-regional cooperation and community readiness around development sites. “The Ministry of Home Affairs will encourage local governments to prepare comprehensively and not only focus on land provision,” Amran said.

The Ministry of Home Affairs will continue to monitor and encourage regions that have the capability and feasibility for the PSEL programme, involving the Coordinating Ministry for Food Affairs, the Ministry of Environment, the Ministry of Energy and Mineral Resources, Danantara and the State Electricity Company (PLN). This is to continue expanding PSEL across Indonesia. Currently, 31 agglomerations have applied for PSEL. “We are confident that once PSEL operates in dozens of regions, it will become an attraction for other regions,” said Safrizal Zakaria Ali, Director General of Regional Administration Development at the Ministry of Home Affairs.

Rofi Alhanif, Assistant Deputy for Circular Economy and Environmental Impact, said that accelerating PSEL requires cross-ministerial and agency coordination because its implementation involves not only waste aspects but also environmental, energy, investment and circular economy aspects. One step is forming a coordination and verification team so that if a region proposes PSEL development, it can be processed immediately. “The central government needs to coordinate to ensure that mandates and authorities among ministries and agencies can run in harmony, directed towards supporting the regional verification process for PSEL development,” he said.

Dimas Adi Wibowo, Director of Project and Operations at PT Daya Energi Bersih Nusantara (DENERA), agreed on the involvement of all parties, including the government, local governments, business entities, investors, technology providers and financing institutions. This is important in ensuring technological, financing, business model and governance aspects. The role of business entities is directed towards supporting project development, governance, coordination with PLN and the development of financing schemes. “Project readiness must be built from the outset so that the construction process can proceed more quickly once all requirements are met. The discussion mentioned a target for completing facility construction within approximately 24 months after requirements and project readiness are fulfilled,” he said.

From the financing and economic perspective, the discussion emphasised that PSEL should not be viewed solely from the value of electricity generated, but also from the benefits of waste reduction, reduced transportation and landfill management burdens, as well as environmental and public health benefits. “Therefore, an economic calculation is needed that considers overall waste management costs, including government support for electricity prices and waste management service fees,” he said.

Regarding PSEL development, Hanifah Dwi Nirwana, Expert Staff to the Minister for Central and Regional Institutional Relations at the Ministry of Environment, said that PSEL needs to be positioned as part of an integrated national waste management system and not as the sole solution. Waste management efforts must still be carried out upstream through waste reduction, sorting at source, strengthening the circular economy, utilising refuse-derived fuel (RDF) and optimising processing facilities.