JAKARTA: State asset fund Danantara selects eight consortia to develop a second batch of waste-to-energy (WtE) projects, bringing in French, Chinese and domestic companies, as it seeks to attract foreign capital and technology into the country’s waste management industry.
The second phase covers eight WtE projects across 20 cities and regencies, with the selected developers receiving conditional letters of award before progressing to full project awards, subject to meeting procurement, technical and financing requirements, Danantara said in a statement.
The projects are located in Medan in North Sumatra, Bekasi regency in West Java, Serang in Banten, Semarang in Central Java, Surabaya in East Java, Bogor in West Java, Lampung, and Yogyakarta.
Development is being overseen by PT Daya Energi Bersih Nusantara (Denera), Danantara’s WtE unit.
“The selection process was conducted in accordance with international best practices,” Denera chief executive officer Fadli Rahman said in a statement.
“We assessed bids based on project track records, financial capability, implementation and commercial readiness, risk management, long-term commitment and execution experience in Indonesia.”
French companies are leading two of the eight selected consortia, while Chinese firms will participate in at least four projects, including two as consortium leader. Among the selected developers are France’s Suez, which will develop the Medan project through the SUEZ-IAN Consortium and France’s Veolia Environmental Services Asia for the Semarang project.
China’s Everbright will lead the Bekasi regency project, while China’s Tianjin CITICC will partner with state-owned PT Pertamina New & Renewable Energy on the Yogyakarta project.
The Greater Serang project was awarded to Masa Depan Energi Indonesia, a consortium between PT Chandra Waste Energy, an affiliate of petrochemical producer PT Chandra Asri Pacific, and China’s Beijing GeoEnviron Engineering and Tech Inc.
The plant is designed to process up to 1,160 tonnes of waste per day.
The Surabaya project, meanwhile, went to the Mentari Citra Lestari Consortium, comprising PT Bakrie Power, PT Acritas Karya Persada and China’s SUS Indonesia Holding Ltd.
The facility is expected to handle around 1,100 tonnes of municipal waste daily.
The awards remain conditional, with each consortium required to complete feasibility studies, finalise project structures, establish joint ventures, secure commercial agreements and obtain financing approval before receiving final awards, according to the statement.
Danantara said 68 applications from 85 pre-qualified providers had been received for the eight project locations, with each site also assigned a reserve bidder should the selected consortium fail to meet the conditions attached to the award.
The projects form part of the country’s national WtE programme under Presidential Regulation No. 109/2025, which seeks to expand electricity generation from municipal waste while addressing mounting waste disposal challenges. Construction of the first batch began on July 8 with a three trillion rupiah plant in South Denpasar, Bali, while projects in Bekasi and Bogor are expected to break ground soon.
The projects, part of a broader plan to build 33 plants nationwide worth a combined US$5.6bil, are included in state utility PLN’s long-term electricity procurement plan as renewables. — The Jakarta Post/ANN