“The presidential decree has been issued, and we are ready to move to the next stage. This will be prioritized for management by Danantara,” Lahadalia said in Jakarta on Monday.
He emphasized that Danantara, Indonesia’s sovereign wealth fund, will take the lead in managing waste-to-energy projects.
“All permits, including ministerial decisions on pricing, will be handled by the ESDM Ministry. But the management will be prioritized for Danantara,” he added.
Environment and Forestry Minister Hanif Faisol Nurofiq said the new regulation marks a major step in modernizing Indonesia’s waste management system.
Signed by President Prabowo Subianto on October 10, 2025, the regulation aims to transform national environmental and energy policy toward a modern, efficient, and sustainable waste management framework.
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Nurofiq said the decree responds to the country’s “waste emergency,” which has long contributed to pollution, environmental degradation, and public health risks.
Under the regulation, waste is recognized as a renewable energy resource that can be converted into electricity, biogas, biofuel, renewable fuel oil, and other derivative products using clean technology.
The regulation confirms Danantara’s role in developing Waste-to-Electric Energy Processors (PSEL), including investment facilitation and the selection of PSEL developer and management entities.
It also introduces streamlined licensing and funding procedures to accelerate project execution and ensure long-term efficiency and sustainability.
To attract investors and guarantee project viability, the government has set a fixed electricity tariff of US$0.20 per kWh for 30 years and requires state utility PLN to purchase electricity generated from processed waste.
The scheme, Nurofiq said, is designed to strengthen investor confidence, secure project financing, and position PSEL facilities as a key part of Indonesia’s clean energy transition.
He added that local governments are responsible for preparing land and ensuring a steady supply and transport of waste to PSEL sites.
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Translator: Aji Cakti, Cindy Frishanti Octavia
Editor: Rahmad Nasution
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