Danantara Forms Denera to Manage WTE Projects, Ready to Inject Investment
Danantara Investment Management is preparing substantial investments for waste-to-energy (WTE) projects in several cities across Indonesia as part of efforts to accelerate the handling of the national waste crisis. Lead of waste-to-energy and Director of Investment at the company, Fadli Rahman, stated that the investment value for one WTE project ranges from Rp 2.5 trillion to Rp 2.8 trillion, depending on the capacity of the facility being built.
“The investment ranges from Rp 2.5 to Rp 2.8 trillion. Because the capacity is quite large in several locations, the investment can reach Rp 2.8 trillion,” Fadli said during a coffee session with the media on Thursday (6/4/2026).
He explained that the project ownership structure will consist of 70% from partners and 30% from Danantara. This collaboration is being carried out with a new entity named Daya Energi Bersih Nusantara, which was established on 1 April 2026 to manage all WTE projects under Danantara.
In its implementation, each project will have one special purpose vehicle (SPV) or implementing business entity (BUP). Several locations being prepared include Denpasar or Badung in Bali, as well as Bogor and Bekasi in West Java.
Additionally, the project in Yogyakarta is still in the partner selection stage for the next development phase.
The project’s funding relies on a blended finance scheme, with debt comprising around 70%. Fadli emphasised that this investment falls under the category of foreign direct investment (FDI), which is expected to provide positive contributions to Indonesia’s investment climate.
“It falls under foreign investment in Indonesia, which is good for the investment climate in Indonesia,” he said.
He added that the partner selection process, particularly for the Yogyakarta project, heavily considers the speed of construction. This is due to the urgency of the waste problem that must be addressed immediately.
“The most important aspect is the timeline. Because of the urgency of the waste issue in Yogyakarta, we do not want to choose partners whose construction process is very lengthy,” he stated.
In addition to building facilities, Danantara will also encourage improvements in waste collection rates (collection rate) in the investment location areas. However, Fadli stressed that investments can only be made in regions with a minimum waste capacity of 1,000 tonnes per day, in accordance with applicable regulations.
“For regions where waste collection is not above 1,000 tonnes, we are not permitted to make such investments. So, the regional government must commit and be ready,” he said.
He affirmed that all projects must meet aspects of commercial, technical, financial feasibility, as well as risk management before they can be executed. This is the primary prerequisite in investment decision-making.
Fadli also explained that the number of project locations continues to grow along with increasing readiness from local governments. According to him, since the President declared a national waste emergency, more regions have expressed interest in joining the integrated waste management programme.
Although groundbreaking was once targeted for March, Danantara chose not to focus too much on ceremonies and prioritised accelerating project implementation.
“We want to skip that ceremony and ensure the programme continues to run. We want to focus on working together,” he said.