Irsyan Hasyim, Jakarta – Ali Ahmudi Achyak, an energy security observer from the University of Indonesia (Universitas Indonesia, UI), is pessimistic about how the new waste-to-energy technology (PSEL) regulation addresses waste issues in various regencies and cities. He attributes these issues to problematic provisions and a lack of transparency.
According to Ali, the Executive Director of the Center for Energy Security Studies for Sustainable Development (PUSKEP) at UI, the problematic provisions in the draft revision of Presidential Regulation Number 35 of 2018 concerning the Acceleration of the Development of Environmentally Friendly PSEL Installations, to be signed by President Prabowo Subianto, include the introduction of three new structures in PSEL.
They are Danantara as the capital owner/investor, a business entity that will operate the PSEL, and the business entity as the PSEL developer.
Ali said the draft revision did not clearly define the criteria for the PSEL management business entity, whether it is Danantara itself or a local company established by Danantara along with its investment partners.
Furthermore, he mentioned that the criteria for the PSEL developers that will be selected by the PSEL operator are still unclear. In a written statement on Friday, October 3, 2025, Ali asked, "Will a foreign tech company be able to directly become the PSEL developer, or will it be with a local partner? The draft regulation is unclear."
Ali also questions the high prices in the Power Purchase Agreement (PPA). The set purchase price of electricity surged from US 12 cents to 20 cents per kWh. Ali believes the 66.7 percent hike will burden PLN's finances.
The new price point will indeed bolster PSEL's investment attractiveness. But even the previous price of 12 cents are deemed too expensive by PLN. "Will the implementation be effective if it is raised to 20 cents?" Ali questioned.
Moreover, Ali added that this significant price hike will hinders PSEL's sustainability in the long run. "This could disrupt PLN's finances," he said, adding that the program could be stopped anytime due to the price.
In Article 14 of the PSEL draft revision, the price point covers the cost of PSEL construction, waste management facility, network procurement, and a subsidy for the purchase. According to him, this provision lacks transparency.
Coordinating Minister for Food Affairs Food Zulkifli Hasan previously mentioned Danantara's involvement in the waste-to-energy installation project. The sovereign wealth fund will partner with investors, such as waste management businesses, which he claims are emerging in various countries, including Singapore, Japan, South Korea, and China.
The ratification of the revision was scheduled for September, but until early October, Prabowo has yet to sign on the bill. The draft revision is intended to streamline waste-to-energy process, from licensing, management, and payment mechanisms.
Local governments are responsible to ready 1,000 tons of waste per day and integrated waste management sites for the PSEL program. According to the draft revision, the PSEL will be built in 33 regencies/cities, an increase from the previous 12 regencies/cities. Most of them are large regencies and cities with a significant waste volume of more than 1,000 tons per day.