Mountains of waste are no longer just an environmental issue. They have become a question of energy, public health, and even economic development. The government is once again accelerating the development of waste-to-energy processing facilities, known as PSEL, and placing the initiative under the National Strategic Project (PSN) framework.
Indonesia is now moving faster to tackle a problem that has continued to grow for years by transforming waste into something with direct value. Instead of ending up in overloaded landfills, waste is being positioned as a future energy source.
The push comes with two major goals at once. The first is solving the country’s growing waste crisis. The second is strengthening Indonesia’s domestic energy supply through renewable sources.
State electricity company PLN has confirmed its support for the program as the government steps up implementation efforts across multiple regions.
The initial focus is aimed at areas considered to be under waste emergency conditions. A total of 25 PSEL projects have now been prioritized. These locations were selected because of the severity of their waste problems and the urgent need for solutions.
The government plans to complete administrative processes within six months before moving into physical construction, which is expected to take around two years. Based on that timeline, several projects could begin operating in 2027, while all priority areas are targeted for completion by May 2028.
Under the latest mechanism, electricity generated by waste-to-energy facilities will later be purchased by PLN at a benchmark tariff of approximately US$0.20 per kWh.
The number stands noticeably higher compared with electricity costs from many other renewable energy sources that have recently become more affordable. According to the latest report from the International Renewable Energy Agency (IRENA), combined solar and battery systems currently produce electricity at costs between US$54 and US$82 per megawatt-hour.
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Despite the cost differences, PLN sees broader value in the initiative.
PLN Executive Vice President for Corporate Communication and Social Responsibility, Gregorius Adi Trianto, said the company fully supports the government’s acceleration efforts.
“As an extension of the government, PLN supports government policies in accelerating the development of PSEL facilities as National Strategic Projects,” he said.
Gregorius explained that PSEL is designed not only as a power generation project but also as a modern urban waste management solution. The system aims to solve waste problems while simultaneously creating additional value through electricity production.
From an investment perspective, he said the government has already established a mechanism to provide greater certainty for investors. Through Presidential Regulation No. 109/2025 regarding urban waste management through environmentally friendly renewable energy-based processing, the government introduced a feed-in tariff scheme.
The policy is expected to improve investment confidence because waste-to-energy projects generally require large upfront capital and serve two important functions at once. They operate as waste treatment facilities while also generating electricity.
“From PLN’s perspective, the development of PSEL can certainly provide positive impacts through additional electricity supply and increased national renewable energy mix,” Gregorius added.
However, Gregorius stressed that successful implementation will require cooperation beyond a single institution. The development process will depend heavily on coordination among various stakeholders to ensure technical readiness, economic viability, and the long-term sustainability of the national electricity system.
“PLN will continue coordinating with the government and stakeholders so that the PSEL development process can be carried out optimally from technical, economic, and national electricity sustainability aspects,” he said.
The urgency behind the project has also been highlighted by Coordinating Minister for Food Affairs Zulkifli Hasan. He believes waste can no longer be treated as a side issue because its impact reaches far beyond landfills.
Waste directly affects soil quality, water systems, air pollution, and public safety. According to him, solving the issue has become a fundamental requirement for future development.
“It is impossible for us to become a developed country if we do not solve our waste problems,” Zulkifli said during the signing of a cooperation agreement involving regional governments and Danantara for PSEL development projects in Jakarta on May 11, 2026.
The government’s first phase of implementation will focus specifically on emergency locations, particularly landfills that still rely on open dumping systems and produce more than 1,000 tons of waste each day.
According to Zulkifli, there are currently 25 priority locations covering 62 regencies and cities classified under severe and emergency categories. Together, these areas account for roughly 22.5 percent of Indonesia’s most urgent waste problem.
The remaining challenge is even larger. After emergency locations are addressed, the government plans to handle the other 77.5 percent of national waste problems. These areas include regions generating between 500 and 700 tons of waste daily and are expected to be completed by 2029.
For the government, the objective goes beyond removing waste from landfills. It is about changing the role of waste itself.
“The emergency cases must be resolved. We need to turn something harmful into something useful,” he said.
