Three Indonesian Waste-to-Energy Projects Under Construction: Latest Progress

PT Daya Energi Bersih Nusantara (Denera) has reported the latest progress on three Phase I waste-to-energy (PSEL) projects, construction of which began several months ago.

The three projects whose construction has officially begun are PSEL Denpasar Raya in Bali, PSEL Kota Bekasi and PSEL Bogor Raya 1. All three have entered the construction phase.

Construction of the waste-processing infrastructure began one year after Presidential Regulation No. 109 of 2025 on PSEL was issued in October 2025.

Denera Chief Operating Officer Dimas Adi Wibowo said that piling work at the Denpasar and Kota Bekasi facilities had reached 500 to 600 points out of a planned total of 1,100. At PSEL Bogor Raya, preparations for pre-piling and the provision of a batching plant are under way.

“Piling, which is one of the initial stages of construction, is progressing well. Of the approximately 1,100 piling points planned, nearly 500 to 600 have been completed. We are targeting completion around early to mid-November, after which other construction stages, such as foundations and steel structures, can proceed,” Dimas said in Jakarta on Monday (19 October 2026).

The three Phase I PSEL facilities are expected to process more than 1,500 tonnes of waste per day. They will generate between 31 and 36 megawatts of electricity, all of which will be purchased by state-owned electricity company PT PLN (Persero) under a power purchase agreement (PPA).

“Waste managed from municipal and other sources will generate around 31 to 36 megawatts of electricity, which PLN will purchase under the agreed PPA. Construction remains on track,” he said.

Denera Chief Executive Officer Fadli Rahman said the accelerated Phase I projects are targeted to begin commercial operations in the first half of 2028.

He said sites that had previously comprised swamp and lake areas had now been prepared as construction-ready land.

“If we look back, the Presidential Regulation was only issued on 19 October 2025, and today marks exactly one year. After one year, construction is under way at all three sites and piling has already started. Hopefully, by the end of next year we will have waste-processing facilities in operation,” he said.

Progress at the three initial PSEL sites is expected to act as a catalyst for more integrated national waste management, from collection through processing. The projects are supported by a one-stop service scheme involving Danantara and Denera, which is intended to reduce risks related to permits, land provision and electricity purchase agreements for investors.

The three PSEL projects whose construction has officially begun are Denpasar Raya, Kota Bekasi and Bogor Raya 1. Details follow.

1. PSEL Denpasar Raya

Danantara Indonesia’s Investment Management Agency officially began construction of the Denpasar Raya PSEL project in Bali on 8 July 2026. The facility is designed to meet European environmental standards.

Danantara Indonesia Chief Investment Officer Pandu Sjahrir said the construction launch took place alongside the signing of a power purchase agreement.

“Today, Wednesday 8 July 2026, PSEL Denpasar Raya has reached an important milestone with the signing of the Power Purchase Agreement and the official launch of construction. This marks the project’s readiness to advance an integrated waste-management solution in Indonesia, beginning in Denpasar Raya,” Pandu said at the launch ceremony on Wednesday (8 July 2026).

He said the Bali facility was designed with reference to the European Industrial Emissions Directive (EU IED), a standard intended to ensure that waste processing is environmentally friendly.

“This Bali PSEL is designed to deliver a tangible impact on waste management, green energy and the local economy, while advancing the standards of the European Industrial Emissions Directive, or EU IED,” he said.

Pandu said the facility is expected to process more than 500,000 tonnes of waste a year, or over 40 per cent of Bali’s waste generation. The project is also forecast to cut emissions from the landfill by up to 80 per cent and reduce carbon emissions by about 640,000 tonnes of CO2 a year.

“On the energy side, this initiative will generate green energy to supply around 100,000 homes in Bali. The project is worth Rp3 trillion, is expected to create 1,200 green jobs and will reduce the land required for landfill by around 80 per cent,” he said.

2. PSEL Kota Bekasi

Danantara Indonesia officially launched construction of a waste-to-energy facility in Ciketing Udik, Bantar Gebang, Bekasi, West Java, on Wednesday 26 August 2026.

The facility is expected to process 500,000 tonnes of waste a year, or around 1,500 tonnes a day. The electricity generated is expected to supply 100,000 homes, while the project is forecast to create more than 1,000 jobs.

The PSEL project, with an investment value of Rp3 trillion, is designed to process 70 per cent of the area’s total waste generation.

Danantara Chief Investment Officer Pandu Sjahrir said the facility would reduce the land needed for landfill by up to 90 per cent and create 1,000 new jobs.

He said the project had undergone an evaluation process since January 2026, beginning with six consortia and resulting in two selected partners.

“The project is expected to manage more than 500,000 tonnes of waste a year, or around 70 per cent of the waste generated in Bekasi City. Environmentally, PSEL Kota Bekasi is also projected to cut landfill-related waste emissions by up to 80 per cent and reduce carbon emissions by 640,000 tonnes of CO2 equivalent a year,” he said at the groundbreaking ceremony in Ciketing Udik, Bantar Gebang, Bekasi, on Wednesday (26 August 2026).

The infrastructure is designed to supply electricity to 55,000 households in Bekasi. In addition to reducing carbon emissions by 640,000 tonnes a year, the project will adopt the European Industrial Emissions Directive (EU IED) environmental standards in its operations.

“On the energy side, this initiative will generate green energy to supply 55,000 homes in Bekasi City. The project, valued at Rp3 trillion, is expected to create around 1,000 green jobs and reduce the land needed for landfill by around 90 per cent,” he said.

3. PSEL Bogor Raya

Danantara Indonesia, through PT Danantara Investment Management (DIM) and PT Daya Energi Bersih Nusantara (Denera), officially began construction of the PSEL Bogor Raya 1 facility in Galuga Village, Cibungbulang district, Bogor regency, on Thursday 17 September 2026.

PSEL Bogor Raya 1 is the third waste-to-energy facility to enter construction, following the Denpasar Raya and Kota Bekasi projects. Serving the Bogor regency and Bogor city agglomeration, it forms part of Danantara Indonesia’s effort to accelerate sustainable, technology-based urban waste-management solutions in line with Presidential Regulation No. 109 of 2025.

Pandu Sjahrir, Danantara Indonesia’s chief investment officer, said PSEL Bogor Raya 1 was designed to have a tangible impact on waste management, green energy development and local economic empowerment.

“The project is expected to manage more than 500,000 tonnes of waste a year, reduce emissions from landfill by up to 80 per cent and cut carbon emissions by around 640,000 tonnes of CO2 equivalent a year,” Pandu said on Thursday (17 September 2026).

Zulkifli Hasan, Indonesia’s Coordinating Minister for Food Affairs, said the waste problem was an emergency that needed to be addressed. “There used to be around 160 regulations that made the process complicated; now we have cut them down to just three. This will allow waste-to-energy projects to proceed more quickly and benefit the public,” he said.

PSEL Bogor Raya 1 is intended not only to provide an environmental solution but also to create sustainable economic value and new opportunities for local communities, including around 1,200 green jobs. The project is designed to catalyse a sustainable waste-management ecosystem and support the development of a circular economy.