Government Auction 6 PSEL Projects This Year

Presidential Chief of Staff (KSP) Muhammad Qodari/ANTARA FOTO/Bayu Pratama S./kye

JAKARTA - The government will auction six waste-to-energy (PSEL) development projects in the first semester of 2026 to accelerate the handling of urban waste nationally.

Presidential Chief of Staff Muhammad Qodari said the plants are expected to be able to process around 7,000 tons of waste per day from six priority locations that will be auctioned immediately.

"This program is designated as a National Strategic Project (PSN) which focuses on waste management in urban areas with a large amount of approximately 1,000 tons per day," said Qodari as reported by ANTARA, Wednesday, April 22.

He explained that this step is part of a national strategy to reduce waste generation while generating new renewable energy.

The first location to be auctioned is PSEL Lampung Raya with a capacity of 1,167 tons per day to serve Bandar Lampung City, South Lampung Regency, and East Lampung Regency.

The next project includes the PSEL Bekasi Regency at the Burangkeng Landfill with a capacity of 1,500 tons per day, as well as the PSEL Medan Raya at the Terjun Landfill with a capacity of 1,700 tons per day. In addition, the government also includes the PSEL Semarang Raya at the Jatibarang Landfill and the PSEL Surabaya Raya, each with a capacity of 1,100 tons per day.

The sixth location on the list is the PSEL Serang Raya at the Cilowong landfill with a capacity of 1,161 tons per day. "These six locations are ready to be processed for auction by Danantara," said Qodari.

According to him, the six projects are part of 12 PSEL projects whose auction process will be initiated by Danantara in the first semester of this year. Other locations include Tangerang City, Tangerang Regency, Palembang City, Makassar City, and South Tangerang City.

The realization of these projects is expected to support the PSEL development target in 30 locations or agglomerations spread across 61 regencies/cities throughout Indonesia by 2029. Cumulatively, these facilities are targeted to be able to process 33,000 tons of waste per day or equivalent to 23 percent of the total national waste generation.

The government also provides a number of attractive incentives for investors, such as setting the purchase price of electricity at USD 0.20 per kWh for 30 years. In addition, there is a reduction in environmental permits from the previous 24 months to only two months and the exemption of VAT for environmentally friendly technologies for domestic production.

"Perpres Number 109 of 2025 presents a number of significant breakthroughs to overcome regulatory deadlock and accelerate the implementation of the PSEL program in Indonesia," said Qodari.