Bali Waste-to-Energy Project to Process Over 500,000 Tonnes of Rubbish Annually

The Denpasar Raya Waste-to-Energy (PSEL) project has officially entered the construction phase. The facility is targeted to process more than 500,000 tonnes of waste per year, representing over 40% of Bali’s total waste generation. Danantara Indonesia Chief Investment Officer Pandu Sjahrir stated that the project’s construction launch coincided with the signing of a Power Purchase Agreement (PPA). The Rp3 trillion project is expected to manage more than 500,000 tonnes of waste annually. From an environmental perspective, the project is projected to reduce emissions from final processing sites by up to 80% and cut carbon emissions by approximately 640,000 tonnes of CO2 per year. In terms of energy, the initiative will generate green energy capable of supplying the needs of around 100,000 households in Bali. It is also estimated to create 1,200 green jobs and reduce the need for landfill space by about 80%. According to Pandu, the development of the Denpasar Raya PSEL is a follow-up to the issuance of Presidential Regulation Number 109 of 2025. Danantara Indonesia moved quickly to advance the structured and professional development of the waste-to-energy project. The partner selection process involved rigorous stages, with proposal evaluations taking place from 2 to 30 January 2026, followed by negotiations from 31 January to 23 February 2026, and concluding with the signing of a Joint Venture Agreement on 2 March 2026. Out of six consortia that submitted proposals, two successfully passed the evaluation and proceeded to the negotiation phase, demonstrating an effective screening process that emphasised the principle of prudence.