Draft Regulation of the President to Regulate RDF Incentives

The government is drafting Regulation of the President (“Perpres”) specifically to regulate the implementation of Refuse-Derived Fuel (“RDF”) technology as an alternative to coal. The drafting of the RDF Perpres was announced by Minister of Environment Hanif Faisol Nurofiq as a legal instrument to optimize national waste management.

“We are currently seeking support to roll out this draft regulation of the president on RDF to accelerate national waste management,” said Hanif.

Hanif explained that this Perpres is needed to regulate funding assistance for RDF projects. During the initial operational phase, funding support in the form of tipping fees from both the central and regional governments is still required. These funds serve to bridge the gap between the relatively high production costs of RDF and its market selling price.

The implementation of RDF technology, supported by this Perpres, is projected to reduce waste generation by up to 62,000 tons per day. The Perpres will help accelerate the construction of RDF production facilities identified by the government in 133 regencies/cities located near 23 cement plants across Indonesia.