Danantara and PLN to Manage Waste for Energy

The government has drafted a Regulation of the President on the Acceleration of Waste Handling in Urban Areas through Waste Management as an Energy Source.

The Ministry of Environment is the initiator of the formulation of the regulation. Meanwhile, Danantara and PT PLN (Persero) will be assigned to the new project     .

"The handling of waste as an energy source will be assigned to Danantara and PLN. The regional governments are obliged to provide a management location and prepare raw materials," said Minister of Environment Hanif Faisol Nurofiq to Hukumonline.

Within the regulatory framework, PLN is obliged to purchase electricity generated from the management of waste, sewage, and Hazardous and Toxic Materials (PSLB3) on the orders of the Ministry of Energy and Mineral Resources. The electricity is an on-grid supply that is included in the PLN network. Meanwhile, Danantara is the investment manager.

To support its implementation, the President supports the provision of subsidies in the form of electricity purchases. The government is targeting the draft regulation to be completed this year.