First Under Prabowo Era: Indonesia Begins Construction of Waste-to-Energy Project

The Danantara Indonesia Investment Authority (BPI Danantara) has officially commenced the construction of a Waste-to-Energy (PSEL) facility in Greater Denpasar, Bali, marked by the signing of a Power Purchase Agreement (PPA) on Wednesday (8/7/2026).

Danantara Indonesia Chief Investment Officer Pandu Sjahrir stated that the development of the Greater Denpasar PSEL is a follow-up to the issuance of Presidential Regulation Number 109 of 2025. “Since the issuance of Perpres number 109 of 2025, Danantara Indonesia has moved swiftly to follow up on the development of waste processing into electrical energy in Greater Denpasar in a structured and professional manner,” Pandu said at the inauguration of the PSEL Bali facility construction.

Pandu explained that the partner selection process involved several rigorous stages. The proposal evaluation took place from 2 to 30 January 2026, followed by negotiations from 31 January to 23 February 2026, and concluded with the signing of a Joint Venture Agreement on 2 March 2026. He noted that out of six consortia that submitted proposals, two passed the evaluation and proceeded to the negotiation phase, demonstrating an effective screening process that emphasised the principle of prudence.

Furthermore, Danantara has achieved several key milestones, including the signing of a cooperation agreement with the Bali Regional Government on 21 April 2026 and the project’s designation as a National Strategic Project (PSN) on 22 May 2026. “Today, 8 July 2026, the Greater Denpasar PSEL has entered a crucial phase through the signing of the Power Purchase Agreement and the inauguration of the PSEL construction. This marks the readiness to drive the realisation of an integrated waste management solution in Indonesia, starting in Greater Denpasar,” he said.

Pandu stated that the facility is targeted to process more than 500,000 tonnes of waste per year, or over 40% of the waste generated in Bali. The project is also projected to reduce emissions from final disposal sites by up to 80% and cut carbon emissions by approximately 640,000 tonnes of CO2 per year. “From an energy perspective, this initiative will produce green energy that can supply the needs of around 100,000 households in Bali. This initiative is valued at IDR 3 trillion, is estimated to create 1,200 green jobs, and reduce the need for landfill space by about 80%,” he concluded.