Jakarta, INTI - PT PLN (Persero) has confirmed it will absorb 40.79 megawatts (MW) of electricity from the Legok Nangka Waste-to-Energy (PSEL) facility in Bandung Regency, West Java.
"We will absorb the electricity generated from this waste processing and distribute it to the public. Through a 20-year Power Purchase Agreement, we are ensuring the sustainability of this project," said Suroso Isnandar, Director of Project Management and New & Renewable Energy at PLN.
Target Operational in 2029
The PSEL project, which is currently in the construction phase, is targeted to be operational in 2029 and can process up to 2,131 tons of waste per day and generate 40.79 MW of electricity, or 310 gigawatt-hours (GWh) per year.
"Through this agreement, PLN provides certainty regarding the purchase of the electricity generated, thus supporting the sustainable development of waste-to-energy projects," he added.
Suroso said that in addition to strengthening the clean energy mix, the development of the Legok Nangka PSEL facility also demonstrates the electricity sector's potential to contribute to solving environmental issues by utilizing waste for energy.
"This is a renewable energy system that continuously cycles as long as there is waste; it will generate usable electricity," he said.
In March 2026, PLN signed a Power Purchase Agreement with PT Jabar Environmental Solutions, the project implementing entity appointed by the West Java Provincial Government.
Through this agreement, the electricity generated by the Legok Nangka PSEL facility will be distributed to the PLN electricity system for the community.
Investment Value Reached USD 400 Million
Previously, the government, through the Ministry of Energy and Mineral Resources (ESDM), officially held the groundbreaking ceremony for the Legok Nangka PSEL facility in Bandung on Wednesday, July 29.
Deputy Minister of ESDM, Yuliot Tanjung, stated that the project's investment value reached USD 400 million, or approximately Rp7.2 trillion.
"The Legok Nangka PSEL is designed with a generating capacity of 40.79 MW with an investment value of USD 400 million, or approximately Rp7.2 trillion," said Yuliot at the groundbreaking ceremony.
This project is the first PSEL to utilize a Public-Private Partnership (Kerja Sama Pemerintah dan Badan Usaha/KPBU) scheme with PT Jabar Environmental Solutions, with a VGF facility of Rp1.34 trillion from the Ministry of Finance.
In addition, funding is provided through a Joint Crediting Mechanism (JCM) scheme worth USD 46 million and international investment of EUR 35 million. This investment also supports the local government in upstream waste management and further waste management training.
Meanwhile, the planned revenue source for the waste-to-energy facility will come from a tipping fee of Rp386,000 per ton of waste.
The electricity price is set at USD 6.92 cents/kWh for years 1-2 based on a business-to-business (B2B) agreement with PT PLN. Then USD 11.44 cents/kWh for years 3-20 based on Presidential Regulation No. 35 of 2018.
Conclusion
PT PLN (Persero) confirmed that it will absorb 40.79 MW of electricity generated by the Legok Nangka PSEL facility through a 20-year Power Purchase Agreement. The project, which is targeted to operate in 2029, is capable of processing 2,131 tons of waste per day and producing around 310 GWh of electricity per year.
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