The Denpasar Raya waste-to-energy project is expected to become a key part of Indonesia's strategy to address growing waste challenges on Bali, where rapid tourism growth, urbanization and a rising population have led to increasing volumes of municipal waste.

The resort island was named the world's best destination this year as part of Tripadvisor's 2026 Travelers' Choice Awards: Best of the Best Destinations.

An aerial view show municipality workers collecting garbage, most of which is plastic and domestic waste, along the shore of Jakarta, Indonesia, June 2023. Photo by Reuters

Designed to process more than 500,000 tonnes of household waste annually, the plant will generate enough electricity to supply around 100,000 households across the island.

Speaking at the groundbreaking ceremony, Pandu Sjahrir, Chief Investment Officer of Indonesia's sovereign wealth fund Danantara Indonesia, said the facility is expected to reduce landfill waste by up to 80%, cut carbon dioxide emissions by around 640,000 tonnes each year, and create approximately 1,200 green jobs in construction, operations and related waste management and energy services.