Indonesia’s growing population and rapid urbanization have intensified the country’s waste management crisis. As the world’s largest archipelagic nation, handling the massive amount of waste generated daily has become a critical challenge. In response, the government is drafting a Presidential Regulation (Perpres) that will transform waste into an energy source. The electricity produced from waste-to-energy plants (PLTSa) will be distributed through state-owned electricity company PT PLN (Persero).
Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung highlighted the high cost of electricity production in certain regions, particularly where diesel-powered plants operate.
“The production cost in some areas remains high, exceeding 30 US cents per kWh,” he said. However, with the implementation of the new regulation, electricity from PLTSa is expected to cost around 13 US cents per kWh.
“This initiative aligns with the new draft Perpres and is also consistent with Perpres 35 of 2018. The estimated price for electricity from waste-to-energy plants will be around 13 US cents per kWh,” Yuliot explained at the Ministry of Energy and Mineral Resources, as quoted on Thursday (March 15, 2025).
The government has already mapped out potential locations for waste-to-energy projects, with a primary focus on major urban centers. At least 30 large cities have been identified as priorities, each expected to generate around 20 MW of electricity.
“We are focusing on major cities first. The target is 30 large cities, each capable of producing about 20 MW. That adds up to an estimated total capacity of around 1 GW,” Yuliot added.
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Meanwhile, Indonesia’s waste problem continues to escalate. Without immediate intervention, the situation could become even more severe. The issue is further compounded by economic growth and shifting consumption patterns, which contribute to rising waste production.
Recent data from the Ministry of Environment and Forestry (KLHK) reveals that Indonesia produced 69.7 million tons of waste in 2023. This staggering figure reflects not only the sheer volume of waste but also the growing complexity of the country’s waste management challenges.
Even more concerning is the fact that around 33% of this waste remains unmanaged. This means that a significant portion of the country’s garbage is improperly disposed of, often ending up in rivers, oceans, or illegal dumpsites.
Beyond being an eyesore, poor waste management poses serious threats to public health and the environment. Pollution from unmanaged waste endangers Indonesia’s rich biodiversity, damages ecosystems, and could have lasting consequences for the nation’s natural resources, tourism industry, and even food security.
 will be distributed through state-owned electricity company PT PLN (Persero).){kind=link}