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Government to Subsidize Danantara’s Waste-to-Energy Projects

Published on October 2, 2025, by Tirto.id

The compensation scheme will be determined later, taking into account the specific factors of each project.

 

By Qonita Azzahra

 

tirto.id – Finance Ministry is set to subsidy  electricity tariffs for the Waste-to-Energy Power Plant (PLTSa) project initiated by Danantara.

 

Director General of Economic and Fiscal Strategy Febrio Nathan Kacaribu said the purchase price for electricity from the waste to energy (WtE) project will be set at 20 cents per kilowatt hour (kWh) to PT Perusahaan Listrik Negara (Persero).

 

The method for calculating the amount of compensation funded by the state budget (APBN) will be determined later, taking into account the specific factors of each project.

 

“The budget will be included once the project is built. But the bill will then be submitted to … PLN, which is the electricity buyer. The electricity buyer already charges 20 cents per kWh, so it has been included in the budget,” he said after the PSEL Implementation Preparation Coordination Meeting at the Coordinating Ministry for Food Affairs in Central Jakarta on Thursday (2/10).

 

“Then the PLN will bill it to the state budget, following the scheme provided by the existing regulation,” Febrio said.

 

Still, Febrio said the funding for PLTSa projects will be fully covered by Danantara through the Patriot Bond.

 

“This is fully Danantara because this is its project. PLN is under Danantara, so the agency will work on the priority projects to expedite the process,” Febrio said.

 

Previously, PLN President Director Darmawan Prasodjo explained that the tariff of 20 US cents per kWh was mandated by the government to the state-owned electricity company to implement WtE projects in several regions.

 

This electricity tariff is lower than PLN’s previous proposal in the revision of Presidential Regulation (Perpres) Number 35 of 2018 concerning the Acceleration of the Development of Waste-to-Electricity (PSEL) Installations, which was 22 US cents per kWh.

 

“We will ensure that the price is in accordance with the Presidential Regulation’s directives; there are indications that it will be 20 US cents per kWh,” Darmawan told the media in Jakarta on Tuesday (30/9).

 

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