Indonesia Moves to Convert 33.8 Million Tons of Waste into Energy
Main Takeaways
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JAKARTA, Investortrust.id – Vice Minister of Energy and Mineral Resources Yuliot Tanjung said the government would accelerate its waste-to-energy program to tackle the nation’s mounting refuse and bolster energy security.
He revealed that Indonesia generated about 33.8 million tons of municipal solid waste in 2024—creating literal “mountains of garbage” in regions from Bantargebang to Bali—and saw an opportunity to turn this environmental threat into an energy asset.
In place of Presidential Regulation No. 35 of 2018, which required lengthy tender processes for waste-to-energy power plants (PLTSa), the administration is drafting a new Presidential regulation to remove auction delays and simplify power purchase agreements with the state utility, PLN.
Streamlining Regulations to Accelerate Projects
Under the existing regulation, local governments such as Surabaya waited up to nine years to finalize power-purchase deals after competitive bidding, Yuliot explained. By eliminating the tender requirement, the new regulation aims to fast-track construction of PLTSa facilities across Indonesia.
Beyond electricity, the Ministry of Energy and Mineral Resources is promoting pyrolysis technology to convert one ton of waste into roughly 400 liters of renewable fuel. This biofuel can supply industrial users or households, while electricity output will be sold directly to PLN under streamlined agreements.
Officials believe the combined benefits will fortify President Prabowo Subianto’s energy resilience agenda, reduce landfill volumes, and improve public health by cutting open-burning of refuse. Stakeholders for off-take include PLN for power, manufacturers or consumers for bioenergy, and industries for fuel substitution.
The ministry plans to finalize the draft regulation by the end of the year, then roll out pilot projects in several cities in 2026. Private investors and technology providers are expected to participate through public-private partnerships.