Indonesia’s sovereign wealth fund Danantara broke ground on a 3 trillion rupiah ($166.6 million) waste-to-energy (WtE) plant in Bali, marking the first project under the government’s accelerated national waste management programme.
The facility, located in Pedungan, South Denpasar, will be developed by PT Danantara Investment Management (DIM) and PT Daya Energi Bersih Nusantara (Denera), a holding company that will oversee the development and operation of waste-to-energy projects across Indonesia.
It is the first waste-to-energy project to move forward under Presidential Regulation No. 109/2025, which aims to speed up the development of such facilities nationwide.
In March, Danantara appointed China’s Wangneng Environment Co. Ltd. and Zhejiang Weiming Environment Protection Co. Ltd. as technology and operating partners for its initial projects in Bekasi and Denpasar. Both companies are required to form consortia with Indonesian partners under the government’s technology transfer and local industry development policy.
The project, to be developed by project company Nusantara Bali New Energy, will be capable of processing up to 1,500 tonnes of municipal waste per day using moving-grate incinerator technology and is targeted to begin operations in the first half of 2028. The project has also been designated a National Strategic Project (PSN).
During the groundbreaking ceremony, the project company also signed a power purchase agreement (PPA) with the state utility PLN, establishing a commercial framework for the facility’s electricity to be supplied to the national grid.
In a statement, chief executive Rosan Roeslani said the project is part of the government’s effort to tackle Indonesia’s mounting waste problem while maintaining governance standards.
“In line with President Prabowo Subianto’s directive, waste management is a challenge that must be addressed as quickly as possible so it does not become a burden for future generations,” Roeslani said. “Danantara will execute these projects not only swiftly, but also with prudence and the highest standards of governance.”
Indonesia generates more than 140,000 tonnes of waste every day. The Bali facility is expected to reduce emissions by up to 80% per tonne of waste compared with open dumping at landfills and create up to 1,200 jobs during construction and operations. The plant will adopt European Industrial Emissions Directive (EU IED) standards and use a layered air pollution control system.
The Bali facility is among the first batch of waste-to-energy projects being accelerated under the regulation. Danantara said it has completed partner selection, established project companies for the first three sites, initiated cooperation agreements with local governments, and advanced permitting and site preparation.
Coordinating Minister for Food Affairs Zulkifli Hasan said the programme became possible after the government streamlined regulations that had delayed waste management projects for years.
“This programme can move forward because regulatory barriers that have long slowed efforts to address waste have begun to be simplified through deregulation,” Zulkifli said. “With clearer rules, strong collaboration and good governance, I believe waste management can be accelerated to deliver tangible benefits for communities and the environment.”
