State investor Danantara Indonesia has chosen Bali as the first site for its Waste-to-Energy Plant (PSEL) development, as the state investment agency expands its focus on sustainable infrastructure and clean energy projects.
The firm said in a statement on Wednesday that the inauguration was held by Danantara Indonesia, through PT Danantara Investment Management (DIM) and PT Daya Energi Bersih Nusantara (Denera), in Pedungan Village, South Denpasar, marking a new chapter in national waste management that is more modern, integrated, and sustainable.
With Indonesia generating more than 140,000 tons of waste every day, PSEL is presented as a solution to a challenge that affects the environment, public health, climate, and economic productivity.
For Bali, sustainable waste management is critical to maintaining regional competitiveness by protecting the island’s ecosystems, improving quality of life and supporting the long-term sustainability of tourism, a key pillar of its economy.
“As directed by President Prabowo Subianto, waste management is a shared challenge that we must address as quickly as possible, so that it does not burden our future generations. PSEL facilities are designed to mitigate the environmental, health, and safety impacts of waste through the use of proven technology,
“As Danantara Indonesia advances these projects, we are committed not only to delivering them swiftly, but also with the utmost prudence and the highest standards of governance,” said Rosan Roeslani, Danantara Indonesia Chief Executive Officer.
It is noted that PSEL Bali is designed to use moving grate incinerator technology, which is used by the majority of PSEL facilities operating worldwide.
This technology was selected for its proven operational reliability and its suitability for the characteristics of municipal waste in Indonesia.
The PSEL Bali facility is designed to follow European environmental standards, namely the European Industrial Emissions Directive (EU IED), as a reference for strict emissions control.
Flue gas from the complete combustion process will pass through a layered Air Pollution Control System (APCS) before being released into the air.
PSEL Bali is projected to reduce emissions by up to 80% per ton of waste compared with open dumping at landfills, while creating up to 1,200 green jobs during construction and operations.
As part of the inauguration ceremony, the Power Purchase Agreement (PPA) was also signed with PT PLN (Persero).
This agreement serves as the commercial framework for the offtake of electricity generated by the PSEL Bali facility into PLN’s grid, thereby providing offtake certainty and supporting the project’s long-term operational sustainability.
Following the issuance of Presidential Regulation No. 109 of 2025, DIM and Denera accelerated project implementation while upholding the highest standards of prudence, transparency, and good governance.
Within a relatively short period, DIM and Denera completed a rigorous partner selection process for advanced technology, which then led to the establishment of Project Development and Operating Companies (BUPP) for the first three locations, initiated agreements with local governments, advanced the permitting process, and commenced site preparation.
The first batch of Waste-to-Energy projects has also been designated as National Strategic Projects (PSN), reaffirming their role as part of the national development priority agenda.
“This program can move forward because regulatory barriers that for years had slowed efforts to address waste management are now being simplified through deregulation,
“With clearer rules, strong collaboration, and good governance, I am confident that waste management can be accelerated to deliver real benefits for the community and the environment,” said Zulkifli Hasan, Coordinating Minister for Food Affairs of the Republic of Indonesia.
The Bali PSEL facility is the result of close collaboration led by the Coordinating Ministry for Food Affairs, bringing together the Ministry of Environment, the Ministry of Home Affairs, the Ministry of Energy and Mineral Resources, other relevant ministries and agencies, local governments, Danantara Indonesia, and the established BUPP.
Policy support, accountable governance, and active public participation in waste management solutions will be key determinants of the system’s overall success, said the statement.