PLN Prepares Long-Term Contracts to Accelerate PSEL Projects
The Waste-to-Energy (PSEL) project is increasingly attracting interest from multinational investors. This green investment is considered highly promising for the private market due to the certainty of a 30-year Power Purchase Agreement (PPA) scheme with PT PLN (Persero).
Coordinating Minister for Food, Zulkifli Hasan, emphasised that the government has moved swiftly by simplifying regulations for the construction of PSEL projects to accelerate the handling of urban waste problems, while also providing a conducive business environment for investors. “My task is just one, regulations are improved. From hundreds, now only three rules remain. If there are obstacles, I just call a meeting. If I still cannot overcome them, I report it. The President leads the way,” Zulkifli stated on Tuesday (21/7/2026).
Meanwhile, Minister of Environment, Jumhur Hidayat, explained that emission reductions from waste management not only solve environmental problems but also open new economic opportunities through the national carbon trading market. Jumhur elaborated that the success of regions in reducing greenhouse gas emissions from the waste sector will be converted into high-value commodities legally recognised by the state. “If you reduce emissions by 20 million tonnes, you could potentially earn Rp100 billion to Rp150 billion by selling it on the carbon market. Once I have successfully reduced a certain amount of CO2 equivalent, it is sold on the carbon market. Later, you will receive a Certificate of Emission Reduction from the Ministry of Environment and Forestry and sell it on the carbon market,” Jumhur said.
On the same occasion, BPI Danantara’s Chief Investment Officer, Pandu Sjahrir, revealed the market’s high enthusiasm for this project. As the world’s largest waste-to-energy project, PSEL is said to be attracting interest from various financial institutions and global investors competing to invest capital. “Alhamdulillah, there is a lot of interest from both abroad and domestically, and many non-Himbara banks also want to participate. This means all participants are eager to enter this project. So, cumulatively, this is the world’s largest waste-to-energy project, which is why everyone involved in investment is competing to be here. So, yes, alhamdulillah, the enthusiasm is very high,” Pandu stated.
PLN’s Director of Project Management and New Renewable Energy, Suroso Isnandar, assessed that the programme, supported by Presidential Regulation Number 109 of 2025, is a breath of fresh air for the electricity and environmental management ecosystem in the country. Suroso said that PLN is ready to absorb the electricity produced by partners to strengthen the primary energy source portfolio optimally. “We guarantee our partners that the electricity generated will be purchased by PLN as the offtaker. Partners do not need to worry. PLN’s long-term commitment has been proven in various other power generation sectors that even have Power Purchase Agreements (PPA) of more than 30 years. This guarantee will be well maintained,” Suroso asserted.
Going forward, the PSEL project is expected not only to be a solution in addressing the waste emergency status in various regions, but also a tactical step in accelerating PLN’s new renewable energy transition to achieve the Net Zero Emissions (NZE) target by 2060. “In the context of the energy transition from thermal-based to new renewable energy, PSEL adds to our energy portfolio while addressing the waste emergency. Therefore, if possible, this programme should be implemented in all cities in Indonesia. PLN is fully ready,” Suroso concluded.