Who gains from saving nature
Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)
Cases / Waste management · Indonesia · 2024–2026

Indonesia waste-to-energy (PSEL) tariff and Danantara

Nature's voice · report
No measurement of the harm done to me here is on record.
Did nature suffer? Not measured. Disputed
Not on record
  • The record does not name which of my species, waters, soils or forests were harmed.
What the record lacks: 3 none on record · 3 insufficient · 1 not measured · 1 disputed See the gaps
Accounts of the harm differ
Does the tariff create an incentive to keep waste generation high?
  • Communities and civil society WALHI: Waste-to-energy projects are a policy failure and the arrangement creates an incentive to keep waste generation high. Indonesia Business Post
  • Government and regulators Government of Indonesia: Set a 30-year tariff of 20 US cents per kWh under Perpres 109 and removed the tipping fee. Kontan

In 2025 Indonesia replaced the fee municipalities paid waste-to-energy plants with a 30-year electricity tariff of 20 US cents per kWh. In 2026 the Danantara investment fund selected operators, and the environmental group WALHI objected.

20 US cents per kWhWaste-to-energy electricity tariff, 30 years
Tipping fee removed in 2025; the earlier tariff is listed at about 13 US cents.

Status As of July 2026: eight PSEL tender winners announced by Danantara; WALHI had objected to the tariff arrangement; no court case is on record.

What?
Indonesia removed the tipping fee for waste-to-energy plants and set a 30-year tariff of 20 US cents per kWh; Danantara then selected operators for the programme. Kontan
Where?
Indonesia; plants include Serang, Yogyakarta and Surabaya. Kabar Bursa
When?
2024 to July 2026.
Who?
Gained
  • Winning operators including PT Chandra Waste Energy, Pertamina Power Indonesia, Bakrie Power, China Everbright, Veolia and Suez — Selected in the PSEL tender announced on 14 July 2026 Kabar Bursa
Lost
  • PLN and the state budget — Carry the cost of the 20-US-cent tariff, according to Kontan Kontan
Harmed
None on record
Why?
Projects had stalled because municipalities had not allocated budgets for the tipping fee, according to the sources reviewed.
How?
A presidential regulation set the tariff; Danantara ran the tender. Kontan
6 of 6 questions answered from the record

What happened

The record, in order.

Indonesia's waste-to-energy programme (PSEL) is built around plants that burn municipal waste to generate electricity. In 2024 data from GoodStats recorded that 39.4% of Indonesia's waste was food and that 54.44% of landfills used open dumping.

In 2025 the government removed the tipping fee, which municipalities paid to plants, and set a tariff of 20 US cents per kWh for 30 years under Presidential Regulation 109 (Perpres 109). Kontan reported that the burden shifted to the state electricity company PLN and the state budget. The earlier tariff is listed at about 13 US cents. The sources reviewed state that projects had stalled because municipalities had not allocated budgets for the fee.

In January 2026, the investment fund Danantara selected Chinese operators, and the environmental group WALHI said the arrangement created an incentive to keep waste generation high (Indonesia Business Post).

On 14 July 2026 Danantara announced eight winners of the PSEL tender. They include PT Chandra Waste Energy, a subsidiary of the petrochemical company Chandra Asri (Serang, 1,161 tonnes a day), Pertamina Power Indonesia (Yogyakarta, with China's Tianjin TEDA), Bakrie Power (Surabaya), China Everbright, Veolia and Suez (Kabar Bursa).

The Paper reported in July 2025 that Chinese incineration plants ran at about 60% of capacity, and the China Environmental Protection Federation counted 79 Chinese incineration projects abroad as of May 2025.

  1. 2024GoodStats: 39.4% of waste is food; 54.44% of landfills use open dumping
  2. 2025Tipping fee removed; tariff of 20 US cents per kWh for 30 years (Perpres 109)
  3. 2026January: Danantara selects Chinese operators; WALHI objects. 14 July: eight tender winners announced

What was said

Claims, in the words of those who made them.

Where accounts differ

Each party's account, side by side, with its source. The record does not settle these points; it shows them.

Does the tariff create an incentive to keep waste generation high?
Communities and civil society
WALHI

Waste-to-energy projects are a policy failure and the arrangement creates an incentive to keep waste generation high.

Indonesia Business Post
Government and regulators
Government of Indonesia

Set a 30-year tariff of 20 US cents per kWh under Perpres 109 and removed the tipping fee.

Kontan

How it looked

What was shown, beside what was recorded.

Shown

  • Electricity from waste, with a 30-year tariff of 20 US cents per kWh
    Government of Indonesia · Kontan

Recorded

  • 39.4% of Indonesia's waste is food; 54.44% of landfills use open dumping (2024).
  • The tipping fee was removed in 2025; tariff of 20 US cents per kWh for 30 years; burden shifted to PLN and the state budget.
  • Danantara announced eight PSEL tender winners on 14 July 2026.
  • Chinese incineration plants ran at about 60% of capacity (The Paper, July 2025).

Who gained

Money that reached nature, beside money that stayed elsewhere.

Reached nature or the ground

Not published
No figure published.

Gained elsewhere

Not totalled
Currency: USD · Window: . All figures cover the same period. * Estimate built from cited figures.

Responses on record

  • walhi (January 2026): Said the arrangement creates an incentive to keep waste generation high. · Indonesia Business Post

In court and with insurers

Every proceeding and every insurer decision on record.

Lawsuits and rulings

No court case on record. No court has ruled on this case.

Insurers

No insurer decision on record.

What nature saw

Outcomes measured on the ground, and nature's note.

Nature's report opens this page. Below: further outcomes measured on the ground.

Share of waste that is food
39.4%
2024, GoodStats
Landfills using open dumping
54.44%
2024, GoodStats
Tariff
20 US cents per kWh
30 years, from 2025

What we don't know

Undisclosed, unproven, untried: recorded as data.

Nature

  • Not measured Harm to nature: The record holds no measurement of harm to nature.
  • Disputed Does the tariff create an incentive to keep waste generation high?

Court

Figures

  • Insufficient Programme investment: Reported investment across 33 regions; summary only, not verified.

Record

  • None on record The size of the state's 20-year to 30-year payment obligation under the programme is not established in the sources reviewed.
  • None on record The sources reviewed do not state how the January 2026 selection of Chinese operators relates to the eight winners announced on 14 July 2026, which include Indonesian companies.
  • Insufficient Reported but not independently verified: that the programme foresees about 91 trillion rupiah of investment across 33 regions (BCA Sekuritas, summary only).
  • Insufficient Reported but not independently verified: that Zhejiang Weiming and Wangneng, Chinese operators, won Indonesian tenders.

Did the harm stop?

Not applicable: the programme was still being implemented in July 2026.

Who paid?

PLN and the state budget, according to Kontan's report on the tariff.

Sources

Voices on record: — Company or project— Government and regulators— Courts✓ Press and investigations— Communities and civil society— Researchers

Connected cases

Related matters, and cases linked to this one through the same organisations, with the role each played in both.