Waste-to-Energy Project Could Solve Waste Issues in 70 Indonesian Regencies

Minister of Environment Moh Jumhur Hidayat has stated that the development of waste-to-energy (PSEL) projects has the potential to solve waste management issues in approximately 70 regencies and cities across Indonesia. He made the remarks during the inauguration of the Denpasar Raya PSEL project in Bali on Wednesday (8/7/2026).

According to Jumhur, data from the Ministry of Environment indicates that 34 PSEL agglomeration areas will be developed in the future, covering around 60 to 70 regencies and cities. “Alhamdulillah, with this PSEL, it will at least help 70 regencies/cities solve their problems,” he said at the event.

However, he reminded that there are still around 480 other regencies and cities that must also address their waste issues, making it a shared responsibility between regional governments and the central government through the Ministry of Environment. “So I thank you, from an environmental perspective, for helping us with waste management in at least 70 to 80 cities in Indonesia. Thank you,” he added.

Jumhur further explained that the waste-to-energy concept does not always have to produce electricity. In some regions, waste processing can be developed into alternative fuels such as refuse-derived fuel (RDF) or pelletizing, which may have a higher calorific value than coal. He noted that this could be part of a collaboration with Danantara and other parties interested in the circular economy.

The Denpasar Raya PSEL project was officially launched by the Danantara Indonesia Investment Authority, marked by the signing of a Power Purchase Agreement (PPA). The project is a follow-up to Presidential Regulation Number 109 of 2025 on urban waste management through environmentally friendly technology-based waste-to-renewable energy processing.

The Bali project is targeted to process more than 500,000 tonnes of waste per year, accounting for over 40% of the island’s total waste generation. It is projected to reduce landfill emissions by up to 80% and cut carbon emissions by approximately 640,000 tonnes of CO2 per year. Danantara’s Chief Investment Officer, Pandu Sjahrir, stated that the initiative will generate green energy to supply the needs of around 100,000 households in Bali, is valued at IDR 3 trillion, and is expected to create 1,200 green jobs while reducing landfill land requirements by around 80%.