Jakarta (ANTARA) - Waste-to-energy (WtE) processing businesses in Indonesia are attracting strong interest from foreign investors, particularly from Singapore, Japan, China, and several European countries, according to Coordinating Minister for Food Affairs Zulkifli Hasan.In response to this growing demand, the Indonesian government is working to simplify regulations and promote ease of doing business—especially in areas involving capital and technology.
Waste-to-energy businesses
"Many investors are interested in investing, but the regulations are so complicated that no one dares to proceed. They simply can't handle it," Hasan said on Friday.
Alongside foreign investment, Indonesia’s sovereign wealth fund, Danantara, is also expected to play a key role in supporting the development of WtE projects, given their financial viability.
"This is a business that many find attractive because it is both feasible and profitable," he added.
To accelerate WtE development, the government plans to streamline the licensing process for converting waste into electricity, addressing a major hurdle for potential investors.
Baca juga: Indonesia sees opportunity to market carbon storage services
Currently, according to Hasan, permits for waste processing must pass through multiple ministries, state agencies, and local governments, making the process burdensome and time-consuming.
"We aim to resolve this quickly by shortening the licensing chain, which is currently far too long," he stated.
Baca juga: Indonesia and Japan expand cooperation in startups, green industry
As part of these reforms, the government is working to merge three existing presidential regulations (Perpres) into a unified policy that supports WtE development using environmentally friendly technologies. The regulations under review include:
- Perpres No. 97 of 2017, concerning national policies and strategies for managing household and household-like waste;
- Perpres No. 35 of 2018, on accelerating the development of waste processing installations for electricity generation;
- Perpres No. 83 of 2018, concerning marine waste management.
Under the revised scheme, the electricity price for power generated from WtE plants (PLTSa) will be set at 18–20 cents per kilowatt hour (kWh)—higher than the current tariff of 13.5 cents/kWh set by state utility PT PLN for such projects.
