Construction of Waste to Energy Plant in Bandung Starts

BANDUNG - The government officially started the construction of the Waste to Energy (PSEL) Project Legok Nangka which is located in West Bandung Regency today, Wednesday, July 29.

For information, the PSEL net project plan of 40.79 MW with 48.8 MW Installed Capacity at the Final Waste Processing and Processing (TPPAS) Legok Nangka, West Java Province, is part of the National Strategic Project (PSN) which has been included in the RUPTL 2025 - 2034, namely with a quota capacity for West Java Province of 90 MW.

"This PSEL is an important milestone in the effort to manage waste in urban areas to overcome the crisis of daily waste accumulation and to present a cleaner and healthier environment and realize energy transformation as a new and renewable energy from waste processing," said Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung in his remarks, Wednesday, July 29.

For information, the PSEL Legok Nangka project is the first PSEL project that uses the Government and Business Entity Cooperation (KPBU) scheme with a feasibility support facility or Viability Gap Fund (VGF) of IDR 1.34 trillion from the Ministry of Finance.

Yuliot added that the PSEL Legok Nangka was designed with a generating capacity of 40.79 megawatts and an investment value of 400 million US dollars or around Rp7.2 trillion.

During the construction period, this project is estimated to be able to absorb around 1,565 workers.

In addition to being a solution to the problem of urban waste and generating clean energy, this project is also projected to reduce greenhouse gas emissions by 311,874 tons of CO₂ equivalent.

Later, he continued, the construction period will last for approximately 41 months or Commercial Operation Date (COD) in 2029.

"We hope that the construction can be accelerated so that the Legok Nangka PSEL can operate earlier. For this reason, support and commitment from all stakeholders, both central government, local government, PT PLN (Persero), developers, financing institutions, and from the community are needed," he said.

Based on data from the Ministry of Energy and Mineral Resources, in connection with the VGF facility, the Ministry of Finance requires that the COD provision can be implemented after PSEL operates for 2 years, where the Ministry of Finance anticipates the potential for additional expenditure from the State Budget to compensate PLN in terms of the local BPP difference with the PSEL FIT of 11.44 cents per kWh.