Bali breaks ground on waste-to-energy plant to tackle mounting garbage

By Lucky Ginting

Indonesia on Wednesday launched construction of a waste-to-energy plant in Bali that the government says will process more than 500,000 tonnes of waste annually, marking the first project under a national program to accelerate the development of such facilities.

The Denpasar plant, with an investment of about Rp 3 trillion ($184 million), is expected to process more than 40% of Bali's municipal waste, reduce landfill emissions by up to 80%, cut carbon emissions by around 640,000 tonnes a year and generate enough electricity to supply about 100,000 households, officials said.

The project is being developed under the government's sovereign investment fund Danantara through its unit PT Daya Energi Bersih Nusantara, in partnership with China's Weiming Group, with state utility PT PLN signing a power purchase agreement during the groundbreaking ceremony.

Chief Executive Officer of Danantara Investment Management Pandu Sjahrir said the project followed a competitive selection process that began after the issuance of Presidential Regulation No. 109 of 2025. He said six consortiums initially submitted proposals before the field was narrowed to two finalists, with key milestones including a joint venture agreement in March, a cooperation agreement with the Bali provincial government in April and designation as a National Strategic Project in May.

Bali Governor Wayan Koster said the provincial government had prepared a six-hectare site and completed land preparation through cooperation with Denpasar city and Badung regency. He said construction is expected to take between 15 and 18 months, allowing the facility to begin operations by late 2027 if work proceeds on schedule.

Investment and Downstreaming Minister Rosan Roeslani said the Bali project was the first groundbreaking under Danantara's waste-to-energy program, adding the technology has been deployed in dozens of countries and is capable of processing both newly generated and legacy waste. He said the government hopes the project can be completed by the end of 2027, ahead of its original schedule.

Environment Minister Mohamad Jumhur Hidayat said the government plans to roll out similar facilities across 34 metropolitan areas covering around 60 to 70 cities and regencies, while acknowledging that other waste treatment technologies such as refuse-derived fuel would remain necessary for areas where power generation is less suitable.

Coordinating Minister for Food Affairs Zulkifli Hasan said the government had streamlined regulations through Presidential Regulation No. 109 of 2025 to accelerate waste-to-energy projects, arguing that previous permitting requirements had delayed development for years.

Editing by Reiner Simanjuntak