Danantara to Announce Waste-to-Energy Project Tender Winners—Green Economy Initiative
The Investment Management Body (BPI) Danantara will soon announce the winning companies for the tender of the Waste Processing into Electrical Energy (PSEL) or Waste to Energy (WtE) project in the first phase across four cities: Denpasar, Bekasi, Bogor, and Yogyakarta.
“The winner is [determined by criteria] in accordance with the Presidential Regulation of the Republic of Indonesia Number 109 of 2025, which must possess very strong technical capability, very strong financial and economic capability, and risks that can be well managed,” said Fadli Rahman, Investment Director of PT Danantara Investment Management, in Jakarta on Thursday 26 February 2026, as cited by Antara.
Fadli stated that Rosan Roeslani, CEO of BPI Danantara, will announce the WtE project winners across the four cities in March 2026.
WtE is a national programme designed to process urban waste into electrical energy. The project aims to address waste emergencies whilst supporting national energy security.
“A total of 24 international companies from China, France, and Japan have participated in the selection and WtE project tender. These international companies comprise 20 companies from China, 3 from Japan, and one from France,” he said.
At each WtE location, one company will be selected. That company will form a consortium with domestic companies and will also engage local partners to develop the WtE project.
Several criteria for companies to win the tender include company background, technical capability, proposal aspects such as equipment, operations, design quality, construction quality, environmental impact assessment, social impact, economic impact, financial capability, and local partners.
The criterion with the highest weighting in the evaluation is WtE technology, from both design and technological execution perspectives. This is because Indonesia does not yet possess waste-to-energy processing technology, Fadli explained.
For this reason, Fadli said, winning tender companies are required to undertake technology transfer to Indonesia, including through local workforce training programmes.
“Workers who are trained will also be sent to study in the company’s country of origin,” he noted.
Furthermore, Danantara also evaluates risks arising from proposals submitted by WtE project tender participants, whether at corporate, technical, financial, economic, social, or environmental levels.
For this first phase, Fadli said the investment requirement reaches US$150 million to US$170 million at each location for WtE project development, with a financing scheme of 70% from external sources in the form of foreign direct investment (FDI) and 30% from Danantara equity. Thus, the total investment requirement across the four cities reaches at least US$600 million.
Overall, Danantara targets development of WtE projects at 33 locations throughout Indonesia. Following the first four locations, Danantara will hold a tender for WtE projects in 9 cities in April 2025 or after Eid 2026.
The Environment Minister Hanif Faisol Nurofiq previously stated that the Environment Ministry has completed the administrative verification process for PSEL development, which is scheduled to commence in March 2026.
“Afterwards, it becomes Danantara’s responsibility to develop it. Once developed, it returns to us,” said Hanif on Wednesday 25 February 2026.