Indonesia Begins National Waste Management Transformation through the Inauguration of PSEL Bali
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Denpasar, Bali, 8 July 2026 – Bali became the first location for the development of Danantara Indonesia's Waste-to-Energy Plant (PSEL). The inauguration was held today by Danantara Indonesia, through PT Danantara Investment Management (DIM) and PT Daya Energi Bersih Nusantara (Denera), in Pedungan Village, South Denpasar, marking a new chapter in national waste management that is more modern, integrated, and sustainable.
With Indonesia generating more than 140,000 tons of waste every day, PSEL is presented as a solution to a challenge that affects the environment, public health, climate, and economic productivity. For Bali, sustainable waste management is a foundation for regional competitiveness: protecting ecosystems, people's quality of life, and the continuity of tourism as the backbone of the Island of the Gods' economy.
Rosan Roeslani, Danantara Indonesia CEO, said, "As directed by President Prabowo Subianto, waste management is a shared challenge that we must address as quickly as possible, so that it does not burden our future generations. PSEL facilities are designed to mitigate the environmental, health, and safety impacts of waste through the use of proven technology. As Danantara Indonesia advances these projects, we are committed not only to delivering them swiftly, but also with the utmost prudence and the highest standards of governance."
Proven Technology with World-Class Environmental Standards
PSEL Bali is designed to use moving grate incinerator technology, which is used by the majority of PSEL facilities operating worldwide. This technology was selected for its proven operational reliability and its suitability for the characteristics of municipal waste in Indonesia.
The PSEL Bali facility is designed to follow European environmental standards, namely the European Industrial Emissions Directive (EU IED), as a reference for strict emissions control. Flue gas from the complete combustion process will pass through a layered Air Pollution Control System (APCS) before being released into the air. PSEL Bali is projected to reduce emissions by up to 80% per ton of waste compared with open dumping at landfills, while creating up to 1,200 green jobs during construction and operations.
Strengthening Investment Certainty Through the Signing of the PPA
As part of the inauguration ceremony, the Power Purchase Agreement (PPA) was also signed with PT PLN (Persero). This agreement serves as the commercial framework for the offtake of electricity generated by the PSEL Bali facility into PLN's grid, thereby providing offtake certainty and supporting the project's long-term operational sustainability.
Part of Indonesia's National Transformation under Presidential Regulation No. 109 of 2025
Following the issuance of Presidential Regulation No. 109 of 2025, DIM and Denera accelerated project implementation while upholding the highest standards of prudence, transparency, and good governance. Within a relatively short period, DIM and Denera completed a rigorous partner selection process for advanced technology, which then led to the establishment of Project Development and Operating Companies (BUPP) for the first three locations, initiated agreements with local governments, advanced the permitting process, and commenced site preparation. The first batch of Waste-to-Energy projects has also been designated as National Strategic Projects (PSN), reaffirming their role as part of the national development priority agenda.
Zulkifli Hasan, Coordinating Minister for Food Affairs of the Republic of Indonesia, said, "I would like to express my appreciation to Danantara Indonesia, local governments, PLN, and all parties who have worked together to realize the start of PSEL Bali's development. This program can move forward because regulatory barriers that for years had slowed efforts to address waste management are now being simplified through deregulation. With clearer rules, strong collaboration, and good governance, I am confident that waste management can be accelerated to deliver real benefits for the community and the environment."
The Bali PSEL facility is the result of close collaboration led by the Coordinating Ministry for Food Affairs, bringing together the Ministry of Environment, the Ministry of Home Affairs, the Ministry of Energy and Mineral Resources, other relevant ministries and agencies, local governments, Danantara Indonesia, and the established BUPP. Policy support, accountable governance, and active public participation in waste management solutions will be key determinants of the system's overall success.
PSEL Designed to Blend with Bali
More than an industrial facility, PSEL Bali is designed to support Bali's new face: clean, open, and sustainable. The entire design approach is rooted in the philosophy of Tri Hita Karana, namely harmony between humans, nature, and God. This will be reflected in an iconic tower inspired by the Meru Tower, a façade featuring traditional Balinese woven patterns and carvings, as well as the use of local materials. The facility will also be equipped with a Visitor Center and guided educational routes for schools, university students, researchers, and the general public.
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Fact Sheet on the PSEL Bali Project
General Information
Location: Pedungan Village, South Denpasar District, Bali
Project Development and Operating Company (BUPP): Nusantara Bali New Energy
Pursuant to the mandate of Presidential Regulation No. 109 of 2025
Status: National Strategic Project (PSN)
Project Specifications
Processing Capacity: 1,500 tons of waste/day
Technology: Moving grate incinerator with a layered Air Pollution Control System (APCS)
Environmental Standards: Refers to international emission standards (EU IED)
Total investment: IDR 3 trillion
Estimated job creation: up to 1,200
Timeline
Inauguration Ceremony: 8 July 2026
Target Commercial Operation Date: First Half 2028
About Danantara Indonesia
Danantara Indonesia, officially known as Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), is a strategic investment management institution established under Law No. 1 of 2025. As an independent entity under the President, Danantara Indonesia's mandate is to manage and optimize government investments and assets from State-Owned Enterprises (SOEs) in order to support the achievement of the Asta Cita vision, strategic national plans, as well as government programs to accelerate industrialization and economic growth. With a professional, transparent, and accountable approach, Danantara Indonesia aims to strengthen the governance of state assets, create added value for the economy, while increasing Indonesia's competitiveness in the global market.
More on Danantara Indonesia: https://www.danantaraindonesia.co.id
For more information, please contact:
Communications Team
Danantara Indonesia
media@danantaraindonesia.com