Bali PSEL Project Marks Start of Modern Waste Processing Implementation

The construction of a Waste-to-Energy (WtE) or Pengolahan Sampah menjadi Energi Listrik (PSEL) facility in Bali marks the start of the implementation phase for a modern waste processing system in Indonesia, following various technical, investment, and technology selection stages. Chief Executive Officer of PT Daya Energi Bersih Nusantara (Danera), Fadli Rahman, stated that the PSEL development focuses not only on power generation but also on building an integrated waste management system from upstream to downstream. “We want to ensure that residual waste, which has been an environmental burden, can be processed responsibly and provide tangible benefits through the provision of cleaner and more sustainable energy,” Fadli said in Jakarta on Friday. The WtE facility will be built in the Pedungan area, South Denpasar, with a processing capacity of 1,500 tonnes of waste per day, equivalent to around 500 waste trucks daily. The facility is targeted for completion and phased operational commencement by the first half of 2028. The project development process began following the issuance of Presidential Regulation Number 109 of 2025 in October 2025. Fadli explained that the Bali PSEL uses moving grate incinerator technology, which has been applied in approximately 75 to 80 percent of WtE facilities worldwide. This technology adheres to the European Industrial Emissions Directive emission standards, which are stricter than older generation incinerators. In the process, mixed waste will be dried for five to seven days to reduce moisture content, then burned at temperatures above 850 degrees Celsius to decompose hazardous compounds. The combustion heat produces high-pressure steam that drives a turbine to generate electricity, which is then supplied to the PLN grid. Residues from the process are also reused. Leachate is treated into clean water, while bottom ash is utilised as raw material for bricks and construction materials. With this technology, emissions per tonne of waste are claimed to be reduced by up to 80 percent compared to waste piled in final processing sites. Beyond reducing environmental burdens, the Bali PSEL is projected to process approximately 44 percent of the total waste generation on Bali Island and reduce public health risks for communities living near landfills. The project is also estimated to create up to 1,200 green jobs, prioritising local workers. From an energy perspective, the facility is targeted to generate electricity equivalent to the needs of around 100,000 households annually. The electricity produced will be purchased by PLN through a long-term Power Purchase Agreement with a tariff referring to Presidential Regulation Number 109 of 2025, set at 0.20 US dollars per kilowatt-hour. The scheme is expected to improve the project’s financing feasibility, making it more attractive to investors. Furthermore, the PSEL construction involves international technology partners selected through a technology selection process. It was previously reported that the government inaugurated the first phase of the WtE facility construction in Bali earlier this week. The inauguration also marked the commencement of PSEL project development in three regions: Greater Denpasar, Bekasi City, and Bogor City. These three projects are part of the National Strategic Projects under Presidential Regulation Number 109 of 2025 and are coordinated by PT Daya Energi Bersih Nusantara, established by Danantara Indonesia. Bali was chosen as the first location to begin physical construction, with an investment value of approximately Rp3 trillion, equivalent to 170.4 million US dollars. The island was selected because it faces increasingly urgent waste problems due to the limited capacity of its final processing sites.