JAKARTA - The DKI Jakarta Provincial Government has resumed plans to build a waste processing facility into electricity or waste to energy (WtE). One of the projects prepared is in the Sunter area, North Jakarta.
Head of the DKI Jakarta Environment Service Asep Kuswanto said the project in Sunter was a continuation of the plan to build an Intermediate Treatment Facility (ITF) which had previously been delayed.
"Yes, so Sunter will continue ITF. Then we will add one more in Bantargebang, and one more, Mr. Minister, in Tanjungan," Asep told reporters, Thursday, March 19.
According to Asep, the ITF Sunter project is now using a new policy scheme that is different from the previous plan. In this scheme, the local government no longer bears the cost of tipping fees.
"Yes, now there is no tipping fee," said Asep.
Tipping fee is a fee that is usually paid by the local government to the waste treatment facility manager for every ton of waste processed. This scheme has previously often been a challenge in the development of waste treatment projects into energy because it has the potential to burden the regional budget.
Asep explained that the change in the scheme followed the new rules contained in Presidential Regulation Number 109 of 2025 which replaced the previous regulation, namely Presidential Regulation Number 35 of 2018.
"Yes, so because this project is different from the previous Presidential Decree 35 2018 (2018), it uses the new Presidential Decree 109 2025 (2025). There is no longer a tipping fee by the local government," he said.
In the new policy, the eligibility of the project is supported by an increase in the purchase price of electricity by the State Electricity Company from waste to energy facilities.
"So the price of electricity, the price of electricity purchased by PLN has been raised to 20 cents per kWh. So it does eliminate the tipping fee by the local government," he explained.
With this scheme, the waste processing project into energy is no longer dependent on the payment of tipping fees from local governments. Project funding is also planned to involve state investment institutions.
"Everything will be done by Danantara," said Asep when explaining the source of funding for the project to reporters.
Previously, the Sunter ITF project had been planned to work with the Finnish company Fortum Power Heat and Oy. However, the plan did not go ahead after the investor decided to withdraw from the project.
To continue the construction, the local government opened the possibility of conducting a re-auction process to find new investors.
Asep added that the management of the ITF Sunter project has the opportunity to involve the DKI Provincial Government's BUMD, namely PT Jakarta Propertindo or Jakpro.
"If for Sunter, we will still use it by Jakpro. Yes, maybe later we will try to discuss again between Jakpro and Danantara," he said.
In the initial development plan, the investment value of the Sunter ITF project is estimated to reach around IDR 5.2 trillion. This value is still potentially subject to change as the discussion continues regarding the financing scheme and project development.
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