Indonesia’s government has slashed regulatory requirements for waste-to-energy projects to just three rules, aiming to accelerate investment under a framework where sovereign wealth fund Danantara handles project development and state utility PLN commits to purchasing the electricity generated. The announcement, made July 16, 2026, follows Danantara’s inauguration of a waste-to-energy plant in Bali earlier this month under a signed power purchase agreement with PLN.
Key Facts At A Glance
- Coordinating Minister for Food Affairs Zulkifli Hasan announced the regulatory overhaul on July 16, 2026
- Requirements for waste-to-energy (WTE) project development have been cut to three rules
- Sovereign wealth fund Danantara will facilitate investor selection and project development
- State electricity company PT PLN (Persero) will purchase electricity generated by WTE facilities
- The announcement was made at the “Waste to Energy Talks: Reducing Waste, Powering the Future” forum in Jakarta
- Indonesia generates more than 140,000 tons of waste daily, according to the report
- The move follows Danantara’s July 10 inauguration of a waste-to-energy plant in Bali, developed through PT Danantara Investment Management and PT Daya Energi Bersih Nusantara
Indonesia has streamlined regulations governing waste-to-energy development, cutting what officials described as hundreds of prior requirements down to three rules, Coordinating Minister for Food Affairs Zulkifli Hasan said at a forum in Jakarta on July 16, 2026. The overhaul is intended to remove bureaucratic delays that have slowed WTE investment while helping the government manage rising volumes of urban waste and expand renewable generation capacity.
Under the revised framework, sovereign wealth fund Daya Anagata Nusantara, known as Danantara, will lead investor selection and project development, while state utility PT PLN (Persero) will serve as the offtaker, purchasing electricity generated by WTE facilities. Indonesia produces more than 140,000 tons of waste per day, a volume officials described as a challenge spanning environmental, public health, and economic concerns.
The regulatory change builds on a project already underway. On July 10, 2026, Danantara inaugurated a waste-to-energy plant in Pedungan Village, South Denpasar, Bali, developed through PT Danantara Investment Management and PT Daya Energi Bersih Nusantara. A power purchase agreement was signed with PLN as part of that inauguration ceremony, establishing the commercial framework for the facility’s electricity offtake into PLN’s grid. The Bali project followed the issuance of Presidential Regulation No. 109 of 2025, after which Danantara and its partner completed technology partner selection, established project development entities for the first three planned sites, and began site preparation.
Officials have not yet detailed the specific three rules replacing the prior regulatory framework, nor disclosed a timeline for when the streamlined process will apply to future WTE project approvals beyond the Bali facility.