Indonesia Accelerates Waste-to-Energy Development

Researched by Industrial Info Resources (Sugar Land, Texas)--The Indonesian government has enacted Presidential Regulation No. 109 of 2025 to accelerate the rollout of waste-to-energy projects across 33 cities. The policy merges and replaces three previous decrees in order to simplify permitting, improve coordination and attract stronger private investment into the country's waste-to-power sector.

Under the new framework, the Ministry of Energy and Mineral Resources (ESDM) will oversee policy implementation, while PT PLN (Persero) (Jakarta) acts as the power off-taker and Danantara Indonesia, the state investment arm, manages financing and project execution. The government has also introduced a more attractive tariff of up to US$0.22 per kilowatt-hour (kWh), replacing the old tipping-fee model that often hindered previous initiatives.

The regulation targets 452 megawatts (MW) of installed capacity by 2034, requiring an estimated rupiah (Rp) 91 trillion (US$ 5.5 billion) in total investment. Priority locations include major urban centers such as Jakarta, Bandung, Semarang, Medan, Denpasar and Samarinda, with projects implemented in multiple phases under the new RUPTL 2025-2034 roadmap.

According to the Ministry of Energy and Mineral Resources (ESDM), the new scheme reframes waste as a renewable energy resource, promoting technologies such as incineration, gasification and pyrolysis while mandating strict environmental safeguards through AMDAL compliance and modern emission-control systems. The policy is expected to strengthen investor confidence and accelerate Indonesia's transition toward sustainable urban waste management.

Industrial Info is tracking more than 30 of these projects with estimated investment value of US$1.76 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more about these developments--including capacities, investment values and necessary equipment, from a list of detailed project reports.

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