Indonesia's waste-to-energy tariff at $0.2/kWh

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The Indonesian government has announced a uniform price of $0.2/kWh (about 3,000 rupiah) for the sale of electricity from waste-to-energy projects, with no bargaining by investors.The policy, which was announced by the Minister of Economic Coordination at the Presidential Palace recently, aims to accelerate the solution to the problem of waste disposal in the country's 33 provinces.

The project is under the responsibility of Danantara, the national investment management agency, and is scheduled to be completed within 1-1.5 years.Coverage includes 33 locations in Jakarta, Bandung, Bali, etc., processing 1,000-2,500 tons of waste per day. The government will conduct open and transparent bidding, and the technical solutions need to comply with the unified specifications.Danantara CEO emphasized that the tariffs and technical standards have been fixed, and investors need to participate in the bidding accordingly.

The project is expected to start at the end of 2025, with the goal of basically solving the nation's garbage problem within 2 years.The program is an important initiative to promote renewable energy and waste management in Indonesia.However, the fixed tariff mechanism may affect the willingness of some investors to participate. The government has indicated that it will improve the supporting regulations as soon as possible to ensure that the project comes to fruition.

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