Bali's Waste-to-Energy Plant Officially Begins Construction: A Solution to the Waste Crisis or a Challenge for the Circular Economy?

Indonesia has initiated the construction of its first national waste-to-energy (WtE) facility in Bali, a move intended to accelerate the handling of the island's waste crisis and produce energy. This project is part of a larger national strategic initiative, with similar facilities planned for Bekasi and Bogor. The Bali facility, located in Pedungan, Denpasar Selatan, is the first of three WtE projects to commence construction.

PT Daya Energi Bersih Nusantara (Denera), the company overseeing the project, stated that the Bali facility marks the implementation of a modern waste management system. CEO Fadli Rahman emphasized that the project is more than just a power plant; it's an integrated system designed to responsibly process residual waste, turning environmental burdens into benefits through cleaner energy production. The facility, with an investment of approximately Rp 3 trillion, is designed to process 1,500 tons of waste daily and is expected to begin partial operations in the first half of 2028.

Bali was chosen as the initial location due to severe waste management pressures and limited landfill capacity. Denera estimates the facility will handle about 44% of Bali's total waste. It will employ moving grate incinerator technology, meeting European emission standards, with the heat used to generate electricity and bottom ash potentially repurposed for building materials. The project is projected to produce enough electricity for about 100,000 households annually and create up to 1,200 green jobs.

However, the project has drawn criticism from the Indonesian Zero Waste Alliance (AZWI). The coalition of civil society organizations argues that the WtE facility may contradict the spirit of Indonesia's Law No. 18 of 2008 on Waste Management, which prioritizes waste reduction at the source. AZWI expresses concern that the focus on incineration could shift national policy away from reduction efforts and towards burning waste, potentially creating new environmental challenges.