Danantara Investment Forms Special Purpose Vehicle to Develop Renewable Energy Projects From ...
Jakarta – In order to accelerate the realisation of national strategic projects related to renewable energy, Danantara Investment Management has taken a proactive step by forming a dedicated subsidiary focused on developing and managing Waste to Energy (WtE) or Pengolahan Sampah menjadi Energi Listrik (PSEL). This move marks Danantara’s serious commitment to supporting the government programme to tackle urban waste problems while producing clean, sustainable energy.
Director of Investments at Danantara Investment Management, Fadli Rahman, revealed that the establishment of the subsidiary is expected to materialise in the near term. ‘Danantara Investment will own one subsidiary that we hope will be formed in the near future,’ he said during an interview at Graha Mandiri, Jakarta, on Friday (6/3/2026). The formation of the subsidiary is crucial to ensure effective and efficient management of the WtE projects and to attract further investment.
The subsidiary will hold a 30% stake in the WtE projects developed, in cooperation with regional governments (Pemda) and PLN. Meanwhile, the remaining 70% will be owned by the WtE facility operator selected. This equity structure is designed to create synergies among the parties involved, ensuring project sustainability and maximising benefits for the community.
Fadli added that the subsidiary will play an active role in directly monitoring project performance through a representative placed in each company. This aims to ensure that projects proceed as planned, meet the quality standards set, and deliver positive environmental and community impacts. With tight oversight, the WtE projects are expected to operate optimally and contribute significantly to the provision of clean energy.
As part of its strategy for developing WtE projects, Danantara has chosen two Chinese companies, Wangneng Environment Co. Ltd. and Zhejiang Weiming Environment Protection Co. Ltd., as strategic partners for the PSEL projects in Bekasi and Denpasar. The selection is based on their experience and expertise in waste-to-energy technology and their commitment to environmental sustainability.
‘The partners will jointly form with us an SPV (Special Purpose Vehicle), a subsidiary in which they hold 70% and we hold 30%. This company will then cooperate with the Pemda through a cooperation agreement,’ Fadli explained. The scheme is designed to ensure all parties have a stake in the project’s success and that the project delivers maximum benefits to the local community.
Danantara targets the construction of four WtE or PSEL projects no later than July 2026. The four projects will be located in Bekasi, Denpasar, Yogyakarta and Bogor, cities facing significant challenges in urban waste management. With these WtE projects, it is expected that the volume of waste sent to the final disposal site (TPA) will be significantly reduced, diminishing negative impacts on the environment and public health.
‘Groundbreaking could take place at any time from April to June. What matters more is when construction starts. Our target is to begin construction by the end of June, or early July at the latest,’ Fadli said. The clear timeline demonstrates Danantara’s seriousness in accelerating the realisation of WtE projects and ensuring they begin benefiting the public as soon as possible.
The construction of WtE projects is expected to take up to two years. However, for the first two projects in Bekasi and Denpasar, which already have partners, construction is expected to be completed more quickly. This shows the partners’ commitment to accelerate realisation and provide concrete solutions to urban waste problems.
‘Interestingly, both partners have faster commitments. Their commitments are to be COD by the end of 2027. For Bekasi, by early 2028,’ Fadli explained. With the operation of these WtE projects, electricity supply in the areas will increase, reducing reliance on fossil fuel sources and supporting sustainable economic development.
Danantara Investment’s initiative to develop WtE projects is a strategic move aligned with the government’s efforts to reach renewable energy targets and reduce greenhouse gas emissions. In addition, the projects will bring significant economic benefits, such as job creation, increased regional revenue, and reduced waste management costs.
With support from the government, strategic partners, and the community, Danantara Investment is optimistic that these WtE projects will succeed and contribute positively to Indonesia’s sustainable development. The projects are hoped to become a successful example for expanding renewable energy in other parts of Indonesia and to encourage further investment in the sector.
The success of these WtE projects will also positively impact Indonesia’s image on the world stage, as a country committed to environmental protection and clean energy development. This will enhance Indonesia’s competitiveness in the global market and attract sustainable foreign investment.
Thus, Danantara Investment’s initiative to develop WtE projects is a timely and strategic move that will bring broad benefits to society, the environment, and Indonesia’s economy. The projects are expected to act as a driver for sustainable economic growth.