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Saturday, 24 January 2026
Environment News

Indonesia Accelerates Waste-to-Energy Program, Opens Green Investment Pathways

Enviro News Asia, Jakarta — The Government of Indonesia is accelerating a national transformation in waste management by converting municipal waste into electricity as part of its renewable energy agenda. The initiative aims to improve cross-regional efficiency in waste handling, strengthen energy security, and support the national target of achieving fully managed waste by 2029.

The Ministry of Environment and the Environmental Control Agency (KLH/BPLH), in coordination with the Coordinating Ministry for Food Affairs, initiated the Waste-to-Energy Power Plant (PSEL) program to address escalating waste volumes while promoting green investment. The policy derives from a direct mandate of President Prabowo Subianto under Presidential Regulation No. 109 of 2025, which instructs ministries to adopt integrated, region-based waste solutions.

The government designated ten strategic agglomeration areas as priority development zones for PSEL facilities. These areas function as centralized hubs where waste from multiple neighboring regions will be processed to achieve economic scale and operational efficiency.

The decision emerged from a limited coordination meeting held in Jakarta on December 17, 2025. The meeting involved Zulkifli Hasan, Hanif Faisol Nurofiq, Todotua Pasaribu, and Pandu Patria Sjahrir. During the meeting, participants approved the expansion of PSEL development into a second implementation phase.

The first development phase covers Bogor Raya, Denpasar Raya, and Tangerang Raya. The second phase adds Surabaya Raya—comprising Surabaya, Gresik, Sidoarjo, and Lamongan—along with Lampung Raya and Serang Raya. The government selected these locations based on waste generation levels, infrastructure readiness, and interregional cooperation capacity.

Hanif Faisol Nurofiq stated that the agglomeration model ensures project viability by meeting the minimum requirement of 1,000 tons of waste per day. He confirmed that Lampung will implement the scheme on a 20-hectare site in Kota Baru Purwotani, designed to accommodate large-scale operations.

To support investment certainty, the government integrated a one-stop licensing system with the Ministry of Investment and the Investment Coordinating Board. The framework streamlines permits, ensures transparent asset management, and allows controlled importation of advanced waste-processing technology to maintain uninterrupted operations.

Pandu Patria Sjahrir emphasized that the PSEL program has gained strong international attention. He reported that the initiative has attracted interest from 45 governments in the Middle East, as well as positive responses from China, Japan, and 34 other countries that have passed the first qualification stage.

The government projects PSEL facilities to serve as the backbone of Indonesia’s future waste management system. The facilities will operate alongside TPS 3R and TPST RDF infrastructure, with a combined processing capacity of up to 14,000 tons of waste per day, equivalent to nearly 10 percent of national waste generation by 2029.

Through cross-regional collaboration and green infrastructure development, KLH/BPLH expects the program to stimulate the circular economy, generate thousands of new jobs, and limit landfill disposal to residual waste with no remaining economic value. (*)