The Coordinating Ministry for Food Affairs has considered combining three Presidential Regulations (Perpres) and simplifying their procedures in an effort to attract investment and finance the construction of waste-to-energy power plants (PLTSa) in Indonesia.

The three regulations are Presidential Decree No. 97/2017 on National policies and strategies for managing household waste and household-like waste; Presidential Decree No. 35/2018 on the Acceleration of the development of waste processing installations into electrical energy based on environmentally friendly technology; and Presidential Decree No. 83/2018 on Waste management at sea.

Coordinating Minister for Food Affairs, Zulkifli Hasan, said the combined regulation would simplify the bureaucracy as entrepreneurs will not need to deal with local governments, the Provincial/Regency Legislative Council (DPRD) and the Ministry of Finance. Entrepreneurs can directly take care of permits to the Ministry of Energy and Mineral Resources (ESDM) and then make a direct contract with the State electricity company PT PLN.

This measure is taken to encourage PLTSa development in Indonesia. Based on Presidential Regulation No. 35/2018, the planned construction of PLTSa in 12 cities is only able to create two operating power plants.

Zulkifli said the regulation also regulates the price of electricity generated by PLTSa, citing that the price of electricity sourced from new and renewable energy (EBT) is not the same as  electricity generated from fossil fuels.

"Electricity generated from fossil fuels is bought at 8.5 or 13.5 US cents per kilowatt hour (kWh). While for electricity sourced from new and renewable energy is approximately at 18 to 20 US cents per kWh," Zulkifli said, on Wednesday, March 19, 2025.

Previously, Zulkifli said that the regulation would also set the electricity cost from waste-to-energy plants (PLTSa) at 19.20 cents per kWh as it is done to cover the cost of effective waste processing.

Until now, the electricity tariff from PLTSa that has been set by PLN at 13.5 cents per kWh is considered insufficient to finance effective waste processing in Indonesia. The government plans to adjust the tariff through a subsidy scheme that will be provided through the Ministry of Finance.

"From 13.35 cents to between 19 and 20 cents. So one door. Later the difference will certainly be a subsidy billed to the Ministry of Finance. That way the complicated procedure is shortened," he said.