Indonesia Launches Waste-to-Energy Project Using Technology Proven in 50 Countries

Jakarta, CNBC Indonesia - Minister of Investment and Downstreaming/Head of BKPM and Chief Executive Officer of Danantara Indonesia, Rosan Perkasa Roeslani, has stated that the Denpasar Raya Waste-to-Energy (PSEL) project in Bali will use technology that has been proven successful in various countries. He claimed the technology has been used in around 50 countries and is capable of processing all types of waste, both new and old. “The technology we are using is proven technology, already proven in 50 countries. This technology can take all the waste that exists. Whether it’s new waste or old waste, it can be absorbed, it can be taken,” he said at the inauguration of the PSEL facility construction in Bali on Wednesday (8/7/2026). Rosan noted that he had personally inspected several waste-to-energy facilities in countries such as China and Japan. From these visits, he observed that the PSEL facilities operated in clean conditions and did not produce unpleasant odours. “In China, it’s in the middle of an elite residential area, like Pondok Indah. Right in the middle, there is a PSEL, because it’s clean, there’s no smell at all, and behind it, they even built a reading park and recreation area for children,” he said. He therefore expressed hope that the project in Indonesia would change public perception of waste management facilities, which are often seen as dirty, smelly, and undesirable. “Once this is completed, it will change our perspective, our way of viewing waste management. Because I am sure it will be clean, odourless. In fact, it will become a place to learn, to visit, and could also become a useful space like a reading park or recreation area,” he added. The construction of the PSEL in Denpasar Raya was officially marked by a Power Purchase Agreement (PPA) signing and a groundbreaking ceremony. The project follows the issuance of Presidential Regulation Number 109 of 2025 concerning Urban Waste Management through Environmentally Friendly Technology-Based Waste-to-Renewable Energy Processing. The facility is targeted to process more than 500,000 tonnes of waste per year, representing over 40% of Bali’s total waste generation. It is also projected to reduce landfill emissions by up to 80% and cut carbon emissions by approximately 640,000 tonnes of CO2 per year. Danantara Indonesia’s Chief Investment Officer, Pandu Sjahrir, explained that the initiative would generate green energy to supply around 100,000 households in Bali. The project, valued at IDR 3 trillion, is expected to create 1,200 green jobs and reduce landfill space requirements by about 80%.