Perpres on Waste-to-Energy Almost Complete: Key Provisions Outlined

The amendment to Regulation of the President No. 35 of 2018 on Accelerated Construction of Waste-Processing Electrical-Energy Installations based on Environmentally Friendly Technologies (“ Perpres 35/2018 ”) is nearing completion.

The Director General (“ Dirjen ”) of New, Renewable Energy and Energy Conservation (Energi Baru, Terbarukan dan Konservasi Energi– “ EBTKE ”), Eniya Listiani Dewi, stated that electricity pricing will be determined after developers submit a license application to the Ministry of Energy and Mineral Resources (“ ESDM ”). The subsequent verification process will determine the electricity tariff based on the applicable economic feasibility criteria.

“There will be a direct assignment from the Ministry of ESDM along with the determination of pricing,” said Eniya.

The regulatory revision will also mandate the pricing framework for energy produced from waste processing into bioenergy and waste conversion into pyrolysis oil through Decree of the Minister (“ Kepmen ”) of ESDM.

“The Decree of the Minister covers both pyrolysis and bioenergy,” Eniya explained.

The concept regulated by this regulation shall include the utilization of thermal technology to generate electricity from waste, fermentation technology, and other methods to produce bioenergy such as biogas, Refuse Derived Fuel (“ RDF ”), and biomass. It also covers the use of pyrolysis technology to produce renewable fuel oil, as well as the development of various other technologies capable of generating valuable derivative products from waste.