Jakarta, INTI - Danantara will tender six Waste-to-Electricity (PSEL) projects in the middle of this year. The government will also guarantee the electricity purchase price and provide incentives for businesses interested in participating in these projects.
Presidential Chief of Staff, Muhammad Qodari, explained that six of the twelve PSEL projects will be initiated by Danantara in the first semester of 2026.
"This program has been designated a National Strategic Project focused on waste management in urban areas with a large generation of approximately 1,000 tons per day," said Qodari.
The six projects are as follows:
- PSEL Lampung Raya (capacity of 1,167 tons per day), which will serve Bandar Lampung City, South Lampung Regency, and East Lampung Regency
- PSEL Kabupaten Bekasi, located at the Burangkeng Landfill (capacity of 1,500 tons per day)
- PSEL Medan Raya (capacity of 1,700 tons per day), planned to be built at the Terjun Landfill
- PSEL Semarang Raya at the Jatibarang Landfill (capacity of 1,100 tons per day)
- PSEL Surabaya Raya (capacity of 1,100 tons per day)
- PSEL Serang Raya at the Cilowong Landfill (capacity of 1,161 tons per day)
Danantara will also auction PSEL projects in Tangerang City, Tangerang Regency, Palembang City, Makassar City, and South Tangerang City.
If successfully auctioned and realized, these projects are expected to support the target of developing PSEL in 30 locations or agglomerations in 61 regencies/cities across Indonesia by 2029.
Electricity Selling Price
The electricity selling price, which provides economic security for investors, was also explained. This is stipulated in Presidential Regulation Number 109 of 2025 concerning Urban Waste Management through Processing Waste into Renewable Energy Based on Environmentally Friendly Technology.
The electricity purchase price is based on a long-term contract period, and PT PLN (Persero) is obligated to purchase electricity generated by the PSEL facilities.
"The electricity tariff is fixed, meaning the purchase price for electricity from the PSEL is set at US$0.2 per kWh. The contract period is long, with the tariff final and valid for 30 years without renegotiation or price escalation. PT PLN (Persero) is required to purchase all electricity generated by the PSEL facility," said Qodari.
Furthermore, to attract business interest in developing PSEL, the government is also offering various fiscal incentives, including PPN (Value Added Tax) exemptions for domestically produced environmentally friendly waste technology, income tax (PPh) reductions for project developers, and investment support through the involvement of investment management institutions such as Danantara.
Furthermore, Presidential Regulation 109/2025 also covers bioenergy and renewable fuels like refuse-derived fuel.
Qodari also explained that the government is centralizing authority to expedite implementation on the ground. Consequently, the environmental permit process, which previously required 12-24 months, is now targeted to be completed in just two months. Regional governments are also required to prepare land for PSEL facilities at no cost to developers.
Conclusion
Danantara will auction six waste to electricity (PSEL) projects in the first half of 2026 in six regions: Lampung, Bekasi, Medan, Semarang, Surabaya, and Serang. This project is part of the PSEL development target in 30 locations by 2029 to address urban waste and generate renewable energy. The government guarantees the project's economic viability through a fixed electricity tariff of US$0.2 per kWh for 30 years, with PLN obligated to purchase all generated electricity. In addition, the government is also preparing fiscal incentives, such as tax reductions and investment support.
Read more: Pertamina and LanzaTech Signed MoU to Develop Waste-to-Fuel Tech and Low-Carbon Energy Solutions