Permit for the PSEL Location to the Ministry of Environment

The Ministry of Environment/Environmental Control Agency (“KLH/BPLH”) is currently preparing a draft ministerial regulation related to the authority for the granting of location permits for Environmentally Friendly Technology-Based Waste Processing into Electrical Energy (“PSEL”). This draft ministerial regulation will become a derivative regulation of Regulation of the Government No. 28 of 2025 (“PP 28/2025”) on the Organization of Risk-Based Business Licensing (“PBBR”).

“So, the authority over PSEL lies with the central government, specifically with the Minister of Environment. The environmental approval also lies with the Minister,” said Nety Widayati, the Director of Prevention of the Impact of the Business Environment and Activities.

She explained that under PP 28/2025, the business license related to PSEL falls under the authority of the Ministry of Energy and Mineral Resources (“ESDM”). Meanwhile, the permit related to environmental impacts is delegated to the location where the PSEL activity is carried out.

Nety stated that the draft regulation was prepared based on discussions with stakeholders, including the BKPN, particularly to address potential bottlenecks at the regional level. According to Nety, the draft ministerial regulation has completed the harmonization process and is targeted to be issued by the end of October 2025.