Danantara Investment Accelerates Clean Energy Drive: Forms Subsidiary to Develop Waste-to-Energy (WtE) Projects in Four Cities
Jakarta – Danantara Investment Management, a company focused on sustainable infrastructure development, plans to strengthen its commitment to supporting Indonesia’s clean energy transition. This strategic step will be realised through the establishment of a dedicated subsidiary that will focus on developing Waste to Energy (WtE) or Pengolahan Sampah Menjadi Energi Listrik (PSEL). The establishment of this subsidiary is expected to accelerate realisation of Danantara’s planned PSEL projects across the regions.
Director of Investments at Danantara Investment Management, Fadli Rahman, disclosed the plan to form the subsidiary when interviewed at Graha Mandiri, Jakarta. ‘So Danantara Investment will have one subsidiary which, God willing, will be formed in the near future,’ he said, on Friday (6 March 2026).
This step signals Danantara’s seriousness in tapping the significant potential contained in the PSEL sector. By forming a dedicated business entity, Danantara can be more focused on developing expertise, forging strategic partnerships, and managing the risks associated with PSEL projects.
According to Fadli, the subsidiary will hold a 30% stake in the PSEL projects it develops, while the remaining 70% will be owned by the facility operator. The involvement of local governments (Pemda) and PT PLN (Persero) will also be integral to the project ownership structure.
‘This subsidiary will own 30% of the project along with the Local Government and PLN. Meanwhile, 70% of the shares will be owned by the facility operator,’ Fadli explained.
The presence of the subsidiary is not only as a shareholder but also as a direct monitor of project performance. Danantara will appoint representatives in each project company to ensure the project proceeds according to plan and meets the targets set.
‘This subsidiary will directly oversee project performance through representatives placed in each project company,’ Fadli asserted.
Strategic Partnerships with Chinese Companies
To realise its ambitions in the PSEL sector, Danantara has entered into strategic partnerships with two Chinese firms with a global reputation in waste-to-energy technology: Wangneng Environment Co. Ltd. and Zhejiang Weiming Environment Protection Co. Ltd. These firms will be partners in developing PSEL projects in Bekasi and Denpasar.
‘The Partners will form with us a SPV subsidiary in which they hold 70% and we hold 30%. The company will then work with Pemda under a cooperation agreement,’ Fadli explained.
Partnership with Wangneng and Weiming gives Danantara access to cutting-edge technology, operational expertise, and extensive experience in developing large-scale PSEL projects. This will greatly assist in ensuring the success of the PSEL projects to be developed in Indonesia.
Ambitious Target: Four PSEL Projects Completed by July 2026
Danantara has set an ambitious target to develop four PSEL projects in various Indonesian cities: Bekasi, Denpasar, Yogyakarta, and Bogor. The company aims for all four projects to commence construction no later than July 2026.
‘Danantara targets building four Waste to Energy (WtE) or Pengolahan Sampah Menjadi Energi Listrik (PSEL) projects no later than July 2026. The latest is July 2026; construction could start in June or July 2026. The four projects will be in Bekasi, Denpasar, Yogyakarta, and Bogor,’ Fadli stated.
To realise this target, Danantara has prepared various steps, including project site selection, feasibility studies, permits, and negotiations with strategic partners. The company is also working with local governments to ensure full support for these PSEL projects.
‘Groundbreaking can take place at any time from April to June. What matters more is when construction starts. Our target is to start construction by late June, at the latest early July,’ Fadli explained.
These PSEL projects are expected to deliver significant positive environmental and social impacts. In addition to reducing the volume of waste sent to landfills, these projects will also generate environmentally friendly electricity, reducing dependence on fossil fuels, and creating new jobs.
Accelerated Project Construction: Bekasi and Denpasar Ready to Operate Earlier
Fadli explained that the construction process for PSEL projects typically takes up to two years. However, for the first two projects in Bekasi and Denpasar, which already have strategic partners, the company targets faster completion.
‘Fadli said the process of building this waste-to-electricity project typically takes about two years. But for the first two projects, Bekasi and Denpasar which already have those partners, they have agreed to accelerate construction,’ he clarified.
Wangneng and Weiming, as Danantara’s strategic partners, commit to expediting the construction of the PSEL projects in Bekasi and Denpasar. These firms have experience building similar PSEL projects in China and other countries, enabling them to apply best practices and cutting-edge technology to accelerate the process.
‘Coincidentally, their commitments are quicker. The promise is that by the end of 2027 the plants will be built and COD achieved. For Bekasi, COD is expected in early 2028,’ Fadli disclosed. COD or Commercial Operation Date is the date on which the PSEL facility begins commercial operation and can sell electricity to PLN.
With the accelerated construction of PSEL projects in Bekasi and Denpasar, Danantara hopes to make a substantial contribution to the environment and the local economy.