The Coordinating Ministry for Food Affairs is considering merging three Presidential Regulations to streamline bureaucracy and attract investment in waste-to-energy power plants (PLTSa) in Indonesia. The regulations include those on waste management policies, accelerating waste-to-energy projects, and addressing marine waste. By combining these regulations, entrepreneurs would bypass local government and legislative council approvals, dealing directly with the Ministry of Energy and Mineral Resources (ESDM) and the state electricity company PT PLN, thereby expediting the permitting process. Currently, the development of PLTSa in Indonesia has been slow, with only two of the planned twelve plants operational due to regulatory and financial constraints. A key issue is the pricing of electricity from renewable sources, which is significantly higher than fossil fuel-generated electricity. While fossil fuel-based electricity is purchased at 8.5 to 13.5 cents per kilowatt-hour (kWh), renewable energy, including PLTSa, costs around 18 to 20 cents per kWh. The government acknowledges this pricing disparity and aims to ensure that waste-to-energy projects remain financially viable. To address the financial gap, the government plans to adjust the PLTSa electricity tariff from the current 13.5 cents per kWh to approximately 19 to 20 cents per kWh, covering the costs of waste processing. This increase will be offset through a subsidy provided by the Ministry of Finance. By implementing these changes, the government hopes to simplify investment procedures, enhance waste management efficiency, and accelerate the expansion of PLTSa projects across the country.Source: https://indonesiabusinesspost.com/3965/investment-and-risk/indonesia-simplifies-permits-to-boost-waste-to-energy-investment (ICE GIACARTA)

Fonte notizia: Indonesia Business Post, 20 March 2025