Indonesian Political, Business & Finance News

Danantara Launches Prabowo's Flagship Waste-to-Energy Project with Rp 3 Trillion Investment

| Source: CNBC Translated from Indonesian | Infrastructure
Danantara Launches Prabowo's Flagship Waste-to-Energy Project with Rp 3 Trillion Investment
Image: CNBC

The Daya Anagata Nusantara Investment Management Agency (BPI Danantara) has inaugurated the Waste-to-Energy Processing (PSEL) development located in Denpasar, Bali Province. The flagship National Strategic Programme (PSN) project of Prabowo Subianto has an investment value of Rp 3 trillion.

BPI Danantara Chief Executive Officer Rosan Roeslani stated that the waste problem is a societal issue that must be resolved swiftly as it will become a future burden. According to him, this project is not solely about generating electricity, but also has a positive impact on environmental, health, safety, and good governance aspects.

“Because without collaboration, without synergy from all of us—the central government, regional government, and also Danantara, and others—this very positive initiative would not be able to run or be implemented well and quickly,” he said, quoting the Danantara YouTube channel on Wednesday (8/7/2026).

Rosan revealed that the technology to be used has proven capabilities in 50 countries. The technology can process all types of waste. “And this is a technology that can take all existing waste. Whether it is new waste or old waste, it can be absorbed, it can be taken,” he stated.

The hope is that through this project, Indonesia’s environmental cleanliness can resemble that of developed countries like China and Japan. “With this programme, the site I visited is very clean, and in China, it is in the middle of an elite residential area, like Pondok Indah. Right in the middle there is a PSEL because it is clean and has no smell at all; in fact, behind it they built a reading park and recreation area for children,” he explained.

He is targeting the PSEL to be operational sooner than the target of the first half of 2028. On the same occasion, Chief Investment Officer Pandu Sjahrir said the project’s implementation was carried out in a structured and professional manner, starting with a rigorous partner selection process.

“From evaluation on 2 to 30 January 2026, negotiations from 31 January to 23 February 2026, to the signing of the joint venture agreement on 2 March 2026,” he disclosed.

Pandu further explained that out of six consortia that submitted proposals, two passed the evaluation and proceeded to the negotiation process, demonstrating a selective screening process that emphasises the precautionary principle. He noted that Danantara involved more than 60 experts and professionals from various backgrounds to support a comprehensive and credible selection process.

“The team involved has experience in various international PSEL projects, including in Thailand, Australia, Malaysia, Kuwait, China, Ireland, and Germany. The involvement of the Danantara team and independent experts shows that this partner selection process is verified and carried out professionally, supported by technical, operational, legal, financial, and environmental expertise,” he explained.

Pandu outlined that the project is targeted to manage more than 500,000 tonnes of waste per year, or over 40% of Bali’s waste generation. From an environmental perspective, the Bali PSEL is also projected to reduce landfill emissions by up to 80% and cut carbon emissions by 640,000 tonnes of CO2 per year.

Furthermore, the positive energy impact will produce green energy capable of supplying the needs of approximately 100,000 households in Bali. The Rp 3 trillion investment project is also estimated to create 1,200 green jobs and reduce landfill space requirements by around 80%.

“Let us together realise a clean, safe, healthy, pristine, and beautiful Indonesia, starting from Bali,” he concluded.

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