Indonesia's First Waste-to-Energy Plant Breaks Ground in Bali, Targets 140,000 Tonnes of Rubbish

The central government, through Danantara Indonesia, officially commenced construction of a Waste-to-Energy (PSEL) plant in Pesanggaran, Denpasar, Bali, on Wednesday (8/7/2026). This PSEL is the first to be built in Indonesia. The groundbreaking ceremony was led by Coordinating Minister for Food Zulkifli Hasan, accompanied by Minister of Environment Jumhur Hidayat, Minister of Investment and Downstreaming/Head of BKPM and CEO of Danantara Indonesia Rosan Roeslani, CEO of Danantara Investment Management Pandu Patria Sjahrir, and Bali Governor Wayan Koster. Rosan stated the PSEL is being built to tackle the waste problem, which impacts the environment, health, and safety. “In accordance with the directive of President Prabowo Subianto, the waste problem is our shared challenge that must be resolved as quickly as possible so it does not become a burden for future generations,” Rosan said in his presentation. Rosan assured that the PSEL construction will not only be carried out swiftly but will also prioritise prudence with high governance standards. According to him, PSEL facilities are also planned for construction in various regions of Indonesia as a solution to the waste handling challenge, which reaches approximately 140,000 tonnes daily. Meanwhile, CEO of Danantara Investment Management Pandu Patria Sjahrir stated that the PSEL facility in Bali is designed to follow European standards as a benchmark for emission control. Exhaust gases from the combustion process will pass through a multi-layered air pollution control system before being released into the atmosphere. Additionally, the PSEL is designed using moving grate incinerator technology, which is the technology used by the majority of operational PSEL facilities in various countries. “The team involved has experience in various international PSEL projects, including in Thailand, Australia, Malaysia, Kuwait, China, Ireland, and Germany. The involvement of an independent expert team demonstrates that the partner selection process is verified and conducted professionally, supported by technical, operational, legal, financial, and environmental expertise,” he explained. Coordinating Minister for Food Zulkifli Hasan stated that the programme could finally proceed after previously facing various regulatory hurdles. “With clearer regulations, strong cooperation, and good governance, I am confident we can accelerate waste management to provide real benefits for the community and the environment,” Zulhas explained. Rosan also assured that the PSEL construction project which broke ground today will not end up abandoned. He alluded to many infrastructure projects in Bali that did not continue after their groundbreaking, such as the Gilimanuk-Mengwi Toll Road in Jembrana and the high-speed train or light rapid transit project in Kuta. Rosan gave a guarantee to the people of Bali not to worry that the PSEL project will suffer a similar fate. According to him, Danantara together with investors will complete the project quickly and on time. “The guarantee is because Danantara is the one executing it, and we have never abandoned a project,” he said. Rosan explained that Danantara’s involvement in the PSEL construction aims to ensure the entire process proceeds according to plan, both from an operational and implementation schedule perspective. “So that it has a good and positive impact on Bali. Because Bali is our main tourism gateway, the hope is that it will also have a significant impact on tourism across Indonesia,” he stated.