Danantara Commences Construction of First National PSEL Project in Bali
Indonesia has commenced the construction of its first national Waste-to-Energy (PSEL) project in Bali. The project, developed by Danantara Indonesia through PT Danantara Investment Management (DIM) and PT Daya Energi Bersih Nusantara (Denera), is expected to become a model for energy-based waste management in various regions.
Danantara Indonesia CEO Rosan Roeslani stated that the waste problem needs to be addressed immediately so it does not become an environmental and social burden in the future. According to him, the construction of the PSEL prioritises governance aspects and the application of proven technology.
“PSEL is here to address the impact of waste on the environment, health, and safety by using proven technology. The implementation of PSEL by Danantara Indonesia is carried out not only quickly, but also with full prudence and the highest governance standards,” Rosan said in a written statement on Wednesday (8/7/2026).
Coordinating Minister for Food Zulkifli Hasan said the project could proceed after the government simplified regulations that had previously hindered PSEL development. “With clearer rules, strong cooperation, and good governance, I am confident we can accelerate waste management to provide real benefits for the community and the environment,” Zulkifli stated.
Danantara noted that Indonesia produces around 140,000 tonnes of waste daily. PSEL is expected to be one of the solutions to reduce the environmental impact of waste while generating electrical energy.
The Bali PSEL facility uses moving grate incinerator technology, which is widely applied in waste processing facilities in various countries. The system is designed to follow European emission standards (European Industrial Emissions Directive/EU IED) with the support of an Air Pollution Control System (APCS) to control exhaust gas emissions.
According to Danantara, the facility is projected to reduce emissions by up to 80 per cent per tonne of waste compared to open dumping methods at final processing sites (TPA). The project is also estimated to create around 1,200 jobs during the construction and operational phases.
On the same occasion, a Power Purchase Agreement (PPA) was signed with PT PLN (Persero). The agreement serves as the basis for distributing the electricity generated by the PSEL to the PLN grid.
Danantara conveyed that since the issuance of Presidential Regulation Number 109 of 2025, DIM and Denera have accelerated the development of PSEL in several regions. Three first-phase projects have been designated as National Strategic Projects (PSN) and are currently entering the stages of business entity formation, preparation of cooperation agreements with local governments, licensing, and land maturation.
The Bali PSEL will also be equipped with an education centre and visitor routes for students, university students, researchers, and the public to support learning about waste management and energy.