President Joko Widodo recently signed the long awaited presidential regulation on the acceleration of development of waste to energy projects. Presidential Regulation No. 35 of 2018 ("Regulation 35") replaces Presidential Regulation No. 18 of 2016 ("Regulation 18"). Early last year, the Supreme Court decided that Regulation 18 contradicted the Environmental Law by allowing developers to start the construction of waste to energy facilities before the environmental license and building construction permit (IMB) had been obtained.
Regulation 35 rectifies this contradiction, and provides a more comprehensive legal framework for the development of waste to energy projects in some major cities in Indonesia. It also provides a wider city coverage than Regulation 18, covering twelve major cities in Java, Bali, Sumatra and Sulawesi, including DKI Jakarta.
Other key features of Regulation 35 are the introduction of a new single feed-in tariff and a specific subsidy from the state budget (APBN) for the payment of the waste management fee (commonly referred to as the "tipping fee").