PSEL Should Not Be the Sole Solution for Waste Management
The 1,500-ton-per-day Waste-to-Energy Plant (PSEL) in Bali is considered a step towards reducing waste on the Island of the Gods. However, the facility cannot be the sole solution, as waste management must still prioritise reduction at source, sorting, and recycling.
Jalal, Chair of the Expert Council of the Indonesia ESG Professional Association (IEPA), stated that an ESG-based approach requires the PSEL to be positioned as one component within an integrated waste management system, not as the primary solution. He noted that the plant’s processing capacity of 1,500 tons per day, reportedly equivalent to about 44 per cent of Bali’s waste generation, must be understood proportionally. Based on data from the National Waste Management Information System (SIPSN), waste generation in Bali reaches approximately 3,400 to 3,800 tons per day. “This means that even when operating at full capacity, the PSEL only handles less than half of Bali’s waste problem,” Jalal said on Monday (27/7/2026).
Jalal, who is also a member of the Expert Council of the Indonesian Renewable Energy Society (METI), added that the assumption the facility can operate year-round without disruption is unrealistic, as incinerators require periodic shutdowns for maintenance, typically lasting around 30 to 45 days annually. He explained that national regulations have placed reduction, reuse, and recycling as the top priorities before energy recovery through incineration. This hierarchy is stipulated in Law Number 18 of 2008 on Waste Management and reinforced by Presidential Regulation Number 97 of 2017 on the National Policy and Strategy for Household Waste Management. Therefore, he argued, the PSEL should only process residue that can no longer be recycled or composted.
If organic waste or plastics that still have economic value are burned, the environmental benefits are diminished. Jalal cited studies by the Ellen MacArthur Foundation and the IPCC AR6 Working Group III report, which show that incineration produces around 0.7 to 1.2 tons of carbon dioxide equivalent (CO2e) per ton of waste, whereas recycling plastic can save around 1.5 to 3 tons of CO2e per ton of material. Beyond environmental aspects, Jalal highlighted the risk of dependence on a single large-scale facility. Should the PSEL experience technical issues, nearly half of Bali’s waste could potentially go unmanaged in a short time. The experience of the Suwung landfill, which has repeatedly suffered fires and public rejection, shows that overly centralised systems have a high level of vulnerability.
From a governance perspective, Jalal assessed that the PSEL contract scheme, which typically lasts 20 to 25 years with a take-or-pay mechanism, could create incentives that conflict with waste reduction targets. Under such a scheme, the local government must provide a minimum volume of waste to keep the project economically viable. He argued that the PSEL is only aligned with ESG principles if it is placed as a last resort after all waste reduction efforts have been made, including Extended Producer Responsibility (EPR) policies, the construction of TPS3R facilities and waste banks, and the development of composting or anaerobic digestion for organic waste. “Without this ecosystem, the 1,500-ton-per-day PSEL risks locking Bali into an end-of-pipe paradigm for the next two decades,” he said.
Jalal also responded to the developer’s claim that the Moving Grate Incinerator (MGI) technology meets European Union emission standards and can reduce emissions by up to 80 per cent compared to landfilling. He noted that the technology can indeed comply with the Industrial Emissions Directive (IED) 2010/75/EU if supported by adequate flue gas treatment systems. However, its application in Indonesia faces challenges because domestic waste has a higher moisture content and lower calorific value compared to waste in Europe. These conditions, he said, can make the combustion process unstable and increase the risk of dioxin and furan formation if the temperature is not maintained above 850 degrees Celsius for at least two seconds, as per European standards.
He also asked the developer to clarify the basis for the 80 per cent emission reduction claim. If it refers to the reduction of methane emissions from waste decomposition in landfills, the claim is understandable. However, if it refers to total greenhouse gas emissions, including carbon dioxide from combustion, the magnitude of the reduction needs to be proven through a transparent study. To ensure environmental benefits are genuinely achieved, Jalal urged the implementation of a strict monitoring system, including the installation of a Continuous Emission Monitoring System (CEMS) with publicly accessible real-time data, periodic measurements of dioxins, furans, and heavy metals by accredited laboratories, ambient air quality monitoring, independent mass and energy balance audits, leachate and wastewater monitoring, and greenhouse gas emissions reporting in accordance with IPCC methodology.