Indonesia launches tender for waste-to-energy projects

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State investment management agency (BPI) Danantara will launch public bidding for power from waste (PLTSa) projects in early November 2025, with its CEO promising to ensure transparency in the process.The project aims to address the problem of waste accumulation in large cities and promote energy transition, with a target of commercial operation by 2028.

The Government will amendPresidential Regulation No. 35 of 2018In addition to the proposed tariff of 20 cents per kilowatt hour (the original proposal was 22 cents), the local government tipping fee will be abolished, and it will be borne by the national electric power company (PLN); and the "take and pay" contract model will be introduced to guarantee the return of the investor.

Currently Indonesia has only2 waste-to-energy plants operational(Solo 5MW, Surabaya 9MW) PLN plans to participate in the development of.11 projects have been plannedAnother 24 potential projectsSigned in the first half of 20254 power purchase agreements(Giant Harbor, Sunter, Surabaya, Solo).

The project marks Indonesia'sAccelerating the energy transitionIn addition, it is important to attract private investment through fixed tariffs and simplified regulations, while reducing the financial burden on local governments.

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