TEMPO.CO, Jakarta - Danantara Investment Management (DIM) has begun construction on the Waste-to-Energy Power Plant (PSEL) project in Denpasar, Bali. The groundbreaking of this project took place on Wednesday, July 8, 2026.
The Minister of Investment and Head of the Investment Coordinating Board (BKPM) as well as CEO of the Danantara Investment Management Agency, Rosan Roeslani, is optimistic that the project will be completed by the end of 2027. This is because the chosen partner has a proven track record and tested technology.
He stated, "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 said that he has inspected several similar waste processing facilities in China, Japan, and other countries. He observed that the constructed facilities can operate without causing odor or disturbance to the surrounding communities.
The presence of PSEL in Denpasar is expected to provide a solution to the long-standing waste problem burdening Bali. It is also aimed at improving environmental, health, safety, and waste management governance aspects.
The Chief Executive Officer of DIM, Pandu Sjahrir, mentioned that this project, worth Rp3 trillion, is expected to create 1,200 green jobs and reduce the need for landfill sites by around 80 percent.
The facility is built in accordance with the European Industrial Emissions Directive (EU IED) environmental standards. In addition to addressing waste issues, the project can also generate clean energy.
"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," said Pandu.
The electricity generated is sufficient to meet the needs of around 100,000 households in Bali. The waste processing capacity exceeds 500,000 tons per year, which is over 40 percent of Bali's total waste accumulation.
Bali Governor Wayan Koster hopes that the project will be completed by October 2027. "The developer had promised that the project could be completed earlier, within 15 months. I hope it can be operational in December," he said.
If this can be achieved, then the waste problem in Bali, which has been a challenge for Balinese tourism, can be completely resolved under the leadership of President Prabowo Subianto.
Koster revealed that the preparations for construction, up to the groundbreaking stage on the land previously owned by PT Pelindo, have progressed well. The land provision was carried out by the Denpasar City Government, while the land preparation process was funded by the Badung Regency Government, costing Rp35 billion.
The land preparation process was completed earlier than the target date of June 30, 2026. Several traditional rituals were performed to facilitate the construction of PSEL in Badung Regency.
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