Bali Begins Construction on Waste-to-Energy Plant

Construction has commenced on a significant Waste-to-Energy Power Plant (PSEL) in Denpasar, Bali, marking a crucial step towards addressing the island's persistent waste management challenges. The groundbreaking ceremony, held on Wednesday, July 8, 2026, signals the start of a project that Danantara Investment Management (DIM) is spearheading, with an ambitious target for completion by the end of 2027.

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The technology used has been implemented in more than 50 countries and is capable of processing various types of waste, both new and old waste accumulations.

Rosan Roeslani, Minister of Investment and Head of the Investment Coordinating Board (BKPM) and CEO of DIM, expressed strong confidence in the project's timely completion. He highlighted the partner's proven track record and the advanced, tested technology, which has been successfully deployed in over 50 countries. This technology is capable of handling diverse waste types, including accumulated waste, and has been observed in facilities in China and Japan to operate without causing odor or disrupting nearby communities.

The PSEL project, valued at Rp3 trillion, is poised to be a game-changer for Bali. DIM CEO Pandu Sjahrir projects that the facility will create approximately 1,200 green jobs and significantly reduce the reliance on landfills, diverting an estimated 80 percent of waste. Furthermore, the plant is designed to meet stringent European Industrial Emissions Directive (EU IED) environmental standards. It is expected to cut emissions from final disposal sites by up to 80 percent and reduce overall carbon emissions by around 640,000 tons of CO2 annually.

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It is projected to reduce emissions from final processing sites (TPA) by up to 80 percent and reduce carbon emissions by approximately 640,000 tons of CO2 per year.

Beyond waste management, the plant will contribute to Bali's energy needs, generating enough clean electricity to power roughly 100,000 households. With a processing capacity exceeding 500,000 tons per year, it will handle over 40 percent of Bali's total waste. Bali Governor Wayan Koster conveyed his hope for an even earlier operational start, ideally by December 2027, and expressed confidence that the waste issue, a long-standing challenge for Balinese tourism, could be fully resolved under the current administration. Preparations for the construction, including land acquisition and site preparation funded by local governments, have progressed smoothly.

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The developer had promised that the project could be completed earlier, within 15 months. I hope it can be operational in December.