Construction of PSEL Bogor Raya 1 Begins, Marking an Initial Step Toward an Integrated Waste Management Innovation Center
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Bogor, September 17, 2026 – Danantara Indonesia, through PT Danantara Investment Management (DIM) and PT Daya Energi Bersih Nusantara (Denera), inaugurated the construction of the Bogor Raya 1 Waste-to-Energy (WtE) facility or Pengolahan Sampah menjadi Energi Listrik (PSEL), in Galuga Village, Cibungbulang, Bogor Regency, on Thursday, September 17, 2026.
PSEL Bogor Raya 1 is the third PSEL facility to enter the construction phase, following PSEL Denpasar Raya in Bali and PSEL Bekasi City. The Greater Bogor area comprises Bogor Regency and Bogor City. The facility forms part of Danantara Indonesia's efforts to carry out its mandate for urban waste management through environmentally friendly technology, as stipulated in Presidential Regulation No. 109 of 2025.
Pandu Sjahrir, Chief Investment Officer of Danantara Indonesia, said, "The waste challenge affects not only our lives today, but also the future of our children. PSEL Bogor Raya 1 is designed to deliver tangible benefits in waste management, green energy generation, and local economic empowerment. The project is expected to process more than 500,000 tons of waste annually, reduce landfill emissions by up to 80 percent, and cut carbon emissions by approximately 640,000 tons of CO2 equivalent per year."
Zulkifli Hasan, Coordinating Minister for Food Affairs of the Republic of Indonesia, emphasized, "The waste issue is an emergency we must address. In the past, around 160 regulations made the process unnecessarily complex. Today, that framework has been streamlined to just three key regulations. As a result, waste-to-energy projects can move forward more quickly and deliver benefits to communities."
PSEL Bogor Raya 1 will not only provide an environmental solution but also generate sustainable economic value and create new economic opportunities for local communities, including the creation of up to 1,200 green jobs. The development of the PSEL is designed to serve as a catalyst for establishing a sustainable waste management ecosystem and advancing the transition toward a circular economy.
Strengthening Investment Certainty Through the Signing of the PPA
In conjunction with the construction inauguration of PSEL Bogor Raya 1, a Power Purchase Agreement (PPA) or Perjanjian Jual Beli Tenaga Listrik (PJBL) was also signed with PT PLN (Persero) ("PLN"). This agreement serves as the commercial framework for the offtake of electricity generated by the PSEL Bogor Raya 1 facility into PLN's grid, thereby providing offtake certainty and supporting the project's long-term operational sustainability.
This strategic milestone reflects the shared commitment to accelerate the clean energy transition and sustainable waste management in Bogor and surrounding areas. Pursuant to Presidential Regulation No. 109 of 2025, a PPA will be established between PLN and each Project Development and Operating Company (BUPP) across all PSEL facilities, at a purchase price of USD 0.20 per kWh for all capacities.
PSEL Bogor Raya 1 Targeted to Commence Operations in Mid-2028
PSEL Bogor Raya 1 is targeted to commence operations in mid-2028 and will be developed and operated by BUPP Nusantara Bogor New Energy. The facility will process up to 1,500 tons of waste per day, converting it into clean electrical energy. The Indonesian Army (TNI AD), as the landowner, has signed a Cooperation Agreement with the Bogor Regency Government regarding the use of the site for the development of a PSEL facility. Going forward, the land grant process will be carried out to ensure legal ownership of the land is transferred to the relevant local government entities within the Bogor Raya 1 PSEL agglomeration.
PSEL projects managed by Denera will utilize moving grate incinerator technology equipped with a multi-layered Air Pollution Control System (APCS), an environmentally friendly, low-emission incinerator. The technology was selected in accordance with the characteristics of waste in Indonesia and is capable of reducing waste volume significantly within a short period. The technology is designed to comply with the European Union Industrial Emissions Directive (EU IED) standards, which represent one of the world's most stringent environmental standards.
Beyond the PSEL Bogor Raya 1 facility, DIM and Denera are concurrently preparing the PSEL Bogor Raya 2 project, located in the Kayumanis area of Bogor City. The facility will process waste from Bogor City and Depok City. In total, PSEL projects are planned for development across 17 sites covering 33 regencies/cities in Indonesia as part of efforts to address the national waste emergency.
Becoming a Research Center for Waste Management Innovation
The PSEL Bogor Raya 1 site is also envisioned to become a center for research, technology, and innovation in integrated waste management. In addition to the PSEL facility, the site is planned to host a center for the study of modern waste management technologies. This initiative is expected to serve as a platform for technology transfer while supporting the development of a modern waste management ecosystem in Indonesia.
During the implementation phase, the initiative is expected to create opportunities for collaboration with various stakeholders - including higher education institutions - to build a research and innovation ecosystem focused on environmentally sustainable waste management solutions.
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PSEL Bogor Raya 1 Project Facts
General Information
Location: Galuga Village, Cibungbulang, Bogor Regency
Project Development and Operating Company (BUPP): Nusantara Bogor New Energy
Technology Partner: Zhejiang Weiming Environment Co., Ltd.
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 multi-layered Air Pollution Control System (APCS)
Environmental Standards: Compliant with international emission standards (EU IED)
Total Investment: IDR 2.8 trillion
Estimated Job Creation: up to 1,200 jobs
Project Timeline
Inauguration of Construction: September 17, 2026
Operations Target: Mid-2028
About PT Daya Energi Bersih Nusantara (Denera)
PT Daya Energi Bersih Nusantara (Denera) is a company focused on developing Waste-to-Energy (WtE) infrastructure and was established under PT Danantara Investment Management (DIM) to implement the duties tasked by Presidential Regulation No. 109 of 2025. Denera serves as the entity responsible for coordinating and accelerating the development of Waste-to-Energy projects across Indonesia, by integrating investment governance, technology partners, and project developers within an integrated ecosystem.
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
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