Bali Governor confident PSEL will enhance tourism image
“Once this is completed, not only will the environmental ecosystem be good and healthy for people’s lives, but Bali’s tourism image will also improve,” he said at the PSEL Bali groundbreaking ceremony in Denpasar on Wednesday.
The PSEL plant, initiated by Danantara Indonesia and launched by the Coordinating Minister for Food, will ultimately solve Bali’s waste problem by converting it into electrical energy.
Koster said Bali has long been beset by various issues such as congestion, water, electricity, and waste, yet tourists continue to visit, so he is confident that resolving the waste problem will further increase tourist arrivals.
“Tourism in Bali is very resilient; despite congestion issues, the world still loves Bali. In 2025, foreign tourist arrivals to Bali reached 7,050,000 in a single year, an increase of 750,000 from 2024, while domestic tourists reached 9.3 million,” he said.
Total tourist visits throughout 2025 reached 16 million, contributing substantially to the local economy and generating around Rp176 trillion in foreign exchange for the state.
Bali’s tourism sector contributes more than 65 per cent to the island’s economy, sustaining hotels, restaurants, transport services, and MSMEs, so that Bali’s economic growth in 2025 reached 5.82 per cent, the fifth highest among provinces with natural resources.
“That is why tourism in Bali must be well maintained, and of course this waste problem must be resolved so that Bali’s tourism image can be even better going forward — high quality and competitive,” Governor Koster said.
To ensure the success of the first PSEL plant in Indonesia, the Bali Provincial Government is ensuring it plays its part, from providing six hectares of land in Pedungan, Denpasar, to land preparation together with Denpasar City and Badung as one agglomeration.
“For the land preparation, filling in the swampy hollows — we carried this out with a ritual ceremony, it could not be done abruptly. We conducted this process properly, asking nature for its blessing, and it was finally completed on target before 30 June,” Koster said.
As for the Bali Provincial Government’s responsibilities, the entire process has proceeded smoothly, allowing the construction launch of the PSEL to take place today.
Danantara’s partner in the project, valued at Rp3 trillion in investment, has pledged that the PSEL will be completed by the end of 2027 and operational in the first half of 2028.
However, the Bali Governor hopes construction can be finished within 15 months, or by October 2027, so that operations can begin even sooner.
“I ask for continued support so this can be completed on time. If it is finished at the end of 2027 and can operate in December, for instance, then Bali’s waste problem, which is a challenge for its tourism industry, can be fully resolved under President Prabowo Subianto,” Koster said.