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View all search resultsGovt bets on Patriot bonds, drops tipping fees to power waste-to-energy
The recently completed draft regulation on waste, which eliminates tipping fees, has been hailed as a means of reviving long-delayed WtE projects, but issues like land availability and unfairly burdening private developers remain.
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Women sort plastic waste on Aug. 8, 2025, at a Petasol production facility in Pekanbaru, Riau. It is one of more than 50 such facilities deployed nationwide to produce Petasol, a diesel-equivalent fuel developed by the National Research and Innovation Agency (BRIN) to support the government’s sustainable energy and plastic waste management agenda. (AFP/Wahyudi)
T
he government is strengthening its waste-to-energy (WtE) agenda by mandating state asset fund Danantara to issue a dedicated bond and preparing a new regulation to improve the sector’s viability.
A key change in the draft policy is the removal of tipping fees, the main revenue source for WtE plants, which are to be replaced by state funding.
Officials have hailed the measure as a way to accelerate long-delayed projects, though analysts caution the change might also increase the costs and risks borne by private WtE operators.
“The amendment to the presidential regulation [No. 35/2018] on waste is completed. It is only waiting for approval [from President Prabowo Subianto],” Coordinating Food Minister Zulkifli Hasan told a press conference on Sept. 1, as quoted by Antara.
He added that the regulation’s implementing rules would follow in three to six months, and that new WtE plants were expected to begin delivering electricity in 12 to 18 months.
Tipping fees are typically paid by local administration per tonne of waste processed by private operators. They have long been disputed by both sides and blamed for stalling WtE plant projects, which remained costly and economically unviable without subsidies.
Eniya Listiani Dewi, new and renewable energy director general at the Energy and Mineral Resources Ministry, said at the same press conference that tipping fees would only apply to existing or contracted projects.
