Jakarta. The Energy and Mineral Resources Ministry is preparing regulations to allow renewable fuel (BBMT) derived from plastic waste to be commercially marketed, as part of its broader waste-to-energy push.

The fuel is produced through a pyrolysis process that converts plastic waste into diesel-equivalent fuel. A pilot project at the Benowo Landfill is currently capable of producing around 60–70 kiloliters of BBMT per day.

The plastic is processed using pyrolysis machines with a flue gas treatment system to ensure emissions comply with environmental standards set by the government.

Director of New Energy at the ministry, Senda Hurmuzan Kanam, said BBMT will be marketed gradually through business-to-business schemes, with quality assurance in place. In parallel, the government is preparing a registration platform in collaboration with the Investment and Downstreaming Ministry/Investment Coordinating Board (BKPM).

“We are currently testing the BBMT product, and several partners have shown results approaching CN48 and CN52 in line with the oil and gas directorate general’s regulations,” Senda said in Jakarta on Thursday.

He explained that laboratory tests show varying sulfur content depending on the type of plastic used in the pyrolysis process. However, he stressed that sulfur levels must comply with existing standards. Diesel with a cetane number (CN) of 48 allows a maximum sulfur content of 2,500 ppm, while CN52 requires sulfur levels below 300 ppm.

Senda did not disclose the economic price of BBMT, noting that commercial viability is determined by business players. The government’s role, he said, is to ensure the fuel meets regulatory standards and is safe for vehicle engines.

“The economic value depends on the producers. To be sold to the public, it must be guaranteed and supervised so consumers are protected,” he said.

Separately, Executive Director of the Committee for Leaded Gasoline Phase-Out, Ahmad Safrudin, said the characteristics of BBMT from plastic pyrolysis are similar to conventional diesel, as both originate from petroleum-based feedstock. However, he noted that no country has widely commercialized such fuel due to economic constraints.

“Because the production cost is too high, it is not economical. If any country uses it, it is still limited to pilot projects,” he said.

Ali Ahmudi, Executive Director of the Center for Energy Security Studies for Sustainable Development at the University of Indonesia echoed the same view. He said plastic pyrolysis technology is no longer theoretical and has been tested in several countries, though still on a limited scale.

In Mexico, startup Petgas has successfully converted plastic waste into fuel for local use. In the United States and Europe, energy companies use pyrolysis outputs as industrial fuel or feedstock for further chemical processing. In the United Kingdom, similar technology is being developed to produce hydrocarbons that can be reused as fuel or raw material for new plastics.

Ali highlighted key challenges, including fuel quality that still requires further refining, relatively high production costs, and environmental concerns due to carbon emissions. As a result, the technology is currently seen more as a waste management and energy recovery solution rather than a large-scale replacement for fossil fuels.

“As a conclusion, fuel from plastic pyrolysis has been used in several countries, but it remains in the development stage and has not become a large-scale energy solution,” he said.

Deputy Energy Minister Yuliot said the government has issued Presidential Regulation No. 109/2025 to accelerate urban waste management through environmentally friendly waste-to-energy technologies.

“Urban waste management is a priority activity under the direct supervision of President Prabowo. Therefore, serious and systematic efforts are needed so that urban waste is no longer a source of problems, but instead provides benefits,” he said.

At the Benowo landfill, a waste-to-fuel facility is currently being developed by Prakarsa Energi Sejahtera. Once operational, the plant is expected to process municipal waste into BBMT, with output capacity aligned with the city’s waste volume. Based on the existing pilot project, production is estimated at 60–70 kiloliters per day.