The Indonesian state asset fund Danantara has selected eight consortia to lead the second phase of the country’s waste-to-energy (WtE) program. This expansion targets 20 cities and regencies, aiming to integrate international technology and capital into Indonesia’s waste management sector. According to Danantara, the developers have received conditional letters of award, contingent upon meeting technical, financial, and procurement requirements.
Project Scope and International Participation
The second batch of projects spans diverse locations, including Medan, Bekasi, Serang, Semarang, Surabaya, Bogor, Lampung, and Yogyakarta. Oversight for these developments falls under PT Daya Energi Bersih Nusantara (Denera), the WtE unit of Danantara. Denera CEO Fadli Rahman stated that the selection process followed international best practices, with bids evaluated on criteria such as track records, financial capability, and risk management.
International involvement is significant in this phase, with French and Chinese firms playing major roles. France’s Suez is set to develop the Medan project, while Veolia Environmental Services Asia has been selected for the Semarang site. Chinese companies are participating in at least four projects, including Everbright, which will lead the development in Bekasi regency, and Beijing GeoEnviron Engineering and Tech Inc., which is partnering on the Greater Serang project.
Did You Know? The Greater Serang project is designed to process up to 1,160 tonnes of waste per day, while the Surabaya facility is expected to handle approximately 1,100 tonnes of municipal waste daily.
Regulatory Context and Future Milestones
These projects are part of a broader national mandate under Presidential Regulation No. 109/2025, which seeks to convert municipal waste into electricity. The initiative is a component of a larger plan to construct 33 plants nationwide with a total valuation of US$5.6 billion. These facilities are officially classified as renewable energy sources within the long-term procurement plan of state utility PLN.
The path forward for the selected consortia involves several administrative and financial hurdles. Each developer must finalize project structures and secure commercial agreements to move from a conditional status to a full award. Danantara has prepared for potential setbacks by assigning a reserve bidder to each of the eight sites should a selected consortium fail to meet the necessary conditions.
Frequently Asked Questions
What criteria were used to select the project developers?
According to Denera, bids were assessed based on project track records, financial capability, commercial readiness, risk management, and long-term commitment to execution in Indonesia.
What is the status of these project awards?
The awards are currently conditional. Developers must complete feasibility studies, establish joint ventures, secure commercial agreements, and obtain financing approval before receiving final awards.
How many waste-to-energy plants are planned for Indonesia in total?
The current projects are part of a larger, long-term national plan to build 33 waste-to-energy plants across the country.
Do you believe that integrating international technology will successfully solve the waste disposal challenges currently facing these 20 cities and regencies?
