Denpasar, Bali. Sovereign wealth fund, Danantara Indonesia, on Wednesday breaks ground on a Rp 3 trillion ($166 million) waste-to-energy plant in Bali, marking the launch of its nationwide waste management program aimed at tackling the country's growing waste problem.

Located in Pedungan Village, Denpasar, the facility will process up to 1,500 tons of waste per day, serving the Denpasar and Badung areas. The plant is expected to begin operations in the first half of 2028 and will handle more than 500,000 tons of waste annually, equivalent to over 40% of Bali's total waste generation.

The project follows a directive from President Prabowo Subianto to accelerate solutions to Indonesia's waste crisis while minimizing environmental impacts.

Danantara said the facility will use internationally proven waste-processing technology already deployed in dozens of countries. The plant is designed to process both newly collected waste and legacy landfill waste while meeting the European Union's Industrial Emissions Directive (EU IED) standards.

"This is a historic day as we launch the first groundbreaking under the Danantara Waste-to-Energy program here in Bali," Danantara CEO Rosan Roeslani said during the ceremony.

Rosan said he had visited similar facilities in China and Japan, describing them as clean, odor-free, and compatible with residential neighborhoods.

According to Danantara's Chief Investment Officer CEO Pandu Patria Sjahrir, the project is expected to reduce landfill emissions by up to 80%, cut carbon emissions by around 640,000 tons of CO2 annually, and reduce landfill land requirements by 80%.

The plant will also generate renewable electricity capable of supplying around 100,000 households and is expected to create about 1,200 green jobs.

Environment Minister M. Jumhur Hidayat said the Bali project is the first of a national initiative. The government plans to develop waste-to-energy facilities across 34 urban agglomerations covering 60 to 70 cities and regencies nationwide.

He added that not every project would generate electricity. Depending on local needs, waste could instead be converted into alternative fuels such as refuse-derived fuel (RDF) or pellets as part of Indonesia's circular economy strategy.

Rosan said construction on eight additional waste-to-energy projects is expected to begin soon, adding that the broader program is intended not only to generate clean energy but also to significantly improve environmental quality, public health, and waste management across Indonesia.