ASIATODAY.ID, DENPASAR — Indonesia has launched a landmark waste-to-energy initiative as Danantara Indonesia begins construction of the country’s first large-scale Waste-to-Energy (PSEL) facility in Bali, marking a new phase in the nation’s efforts to tackle waste challenges, expand clean energy capacity, and accelerate green infrastructure development.
The groundbreaking ceremony in Denpasar on July 8, 2026, marks the first implementation of Indonesia’s national waste-to-energy program under Presidential Regulation No. 109 of 2025, positioning the project as a strategic milestone in the country’s environmental and energy transition agenda.
Led by PT Danantara Investment Management (DIM) and PT Daya Energi Bersih Nusantara (Denera), the Bali project is designed to transform municipal waste into electricity while introducing a modern waste management system aligned with international environmental standards.
Danantara Indonesia CEO Rosan Roeslani said the project represents a major step in addressing Indonesia’s growing waste challenge through technology, investment, and strong governance.
“Indonesia’s waste problem requires immediate and sustainable solutions. Through PSEL, we are developing a system that protects the environment, improves public health, and creates economic value for future generations,” Rosan said.
Tackling Indonesia’s Growing Waste Challenge
Indonesia produces more than 140,000 tons of waste every day, creating significant challenges for cities, ecosystems, and climate resilience.
For Bali, one of Indonesia’s most important tourism destinations, sustainable waste management is closely linked to economic competitiveness, environmental protection, and long-term development.
The new facility is expected to become a model for Indonesia’s future waste management transformation by combining waste reduction, renewable electricity generation, and green job creation.
US$184 Million Strategic Green Investment
The Bali Waste-to-Energy facility represents an investment of approximately Rp3 trillion (around US$184 million) and has been designated as a National Strategic Project (PSN) by the Indonesian government.
The plant will have the capacity to process 1,500 tons of municipal waste per day and is targeted to begin operations in the first half of 2028.
A Power Purchase Agreement (PPA) signed with state electricity company PLN provides long-term certainty for electricity absorption, ensuring the sustainability of the project and its contribution to Indonesia’s clean energy transition.
Global Technology with International Environmental Standards
The facility will use moving grate incinerator technology, one of the world’s most widely adopted waste-to-energy systems, supported by a multi-stage Air Pollution Control System (APCS).
Danantara said the plant is designed to follow the European Industrial Emissions Directive (EU IED) standards, ensuring strict control of emissions and environmental impacts.
The project is projected to reduce greenhouse gas emissions by up to 80 percent per ton of waste compared with conventional open landfill disposal and create up to 1,200 green jobs during construction and operations.
Danantara Accelerates National Waste-to-Energy Expansion
The Bali project represents the first milestone in Danantara’s broader plan to accelerate waste-to-energy development across Indonesia.
Through DIM and Denera, Danantara has carried out partner selection, regulatory preparation, and project development processes to establish a new generation of waste management infrastructure.
The initiative supports Indonesia’s wider priorities in industrial transformation, energy security, environmental protection, and sustainable economic growth.
A Sustainable Facility Inspired by Bali’s Heritage
Beyond its role as an industrial facility, the Bali Waste-to-Energy plant has been designed to reflect local cultural values.
The project incorporates the Balinese philosophy of Tri Hita Karana, emphasizing harmony between people, nature, and spirituality. The design will feature elements inspired by traditional Balinese architecture, local materials, and educational facilities for communities, students, and researchers.
As Indonesia moves toward a greener economy, the Bali Waste-to-Energy project is expected to become a benchmark for future sustainable infrastructure development—showing how environmental solutions can create new opportunities for energy, investment, and economic growth. (Midwan)
Follow Us at Google News, WA Channel, and LinkedIn