PLN Prepares Long-Term Power Contracts to Boost PSEL Investment Appeal
State electricity company PT PLN (Persero) is preparing a power purchase agreement (PPA) scheme with a duration of up to 30 years to attract investment in Waste-to-Energy (PSEL) projects. The certainty of this long-term contract is expected to provide a guarantee for investors to develop waste-to-energy projects in various regions.
PLN’s Director of Project Management and Renewable Energy, Suroso Isnandar, stated that PLN is ready to become the offtaker for all electricity produced by PSEL development partners. He said this commitment is a form of business certainty for investors looking to enter the waste-to-energy sector.
“We provide a guarantee to our partners that the electricity generated will be purchased by PLN as the offtaker. Our partners need not worry. PLN’s long-term commitment has been proven in various other generation sectors, which even have Power Purchase Agreements (PPA) exceeding 30 years. This guarantee will be well maintained,” Suroso said at the Waste to Energy Talks 2026 event in Jakarta.
Suroso added that the PSEL projects, supported by Presidential Regulation Number 109 of 2025, represent a significant momentum to strengthen the electricity ecosystem while addressing environmental management. The presence of waste-based power plants will also increase PLN’s renewable energy portfolio.
The high level of contract certainty has received a positive response from the market. Chief Investment Officer of BPI Danantara, Pandu Sjahrir, noted that investor interest in PSEL projects is very high, both from domestic and international sources. Various financial institutions beyond the state-owned banks association (Himbara) have also expressed interest in participating.
According to Pandu, cumulatively, Indonesia’s PSEL projects represent the largest waste-to-energy initiative in the world, thus attracting global investor attention. This enthusiasm reflects strong market confidence in the prospects of green investment within the waste management sector.
The government is also accelerating project realisation through regulatory simplification. Coordinating Minister for Food, Zulkifli Hasan, mentioned that the government has cut various regulations to ensure PSEL construction proceeds more quickly and provides certainty for the business community.