Waste-to-Electricity Projects Designated as National Strategic Projects, When Can Operations Begin?

Jakarta, CNBC Indonesia - Coordinating Minister for Food Affairs, Zulkifli Hasan, has outlined several strategies to advance the PSEL (Waste-to-Energy Processing) projects, which aim to convert waste into a source of green electricity. One key measure involves cutting through regulatory obstacles that have caused an 11-year deadlock, with the goal of having PSEL facilities operational in 72 locations by 2027-2028.

Echoing the Coordinating Minister, Deputy for Food Affordability and Security Coordination at Indonesia’s Coordinating Ministry for Food Affairs, Nani Hendiarti, noted that the regulatory hurdles relate to three main issues: lengthy licensing processes, insufficient investment appeal, and operational dependency on local governments.

To address these problems, the government is implementing several breakthroughs through Presidential Regulation 109/2025. These include tackling the waste emergency using environmentally friendly technology, involving Danantara in partner selection and investment, easing administrative process flows at the local government level without a tipping fee, and providing a competitive electricity selling price of USD 0.20 per kWh for all PSEL capacities over a 30-year period.

The development of PSEL is not the sole technology for addressing the waste problem, as it can only handle approximately 22% of total waste, necessitating the development of other technologies.

Currently, the government is pursuing the construction of PSEL facilities in three locations: Greater Denpasar, Bekasi City, and Bogor Raya 1. The development of these PSEL projects is progressing with land preparation already exceeding 70%, making them ready for construction to begin.

Furthermore, the central government has included these three PSEL projects in the National Strategic Projects (PSN) programme, allowing the construction process to be accelerated.