DIM Selects Preferred Partners for Second Phase PSEL in 8 Locations - Danantara
PT Danantara Investment Management (DIM), together with PT Daya Energi Bersih Nusantara (Denera), has designated the Preferred Partners in the business partner selection process for the development and management of the second phase of the Waste-to-Energy Processing (PSEL) programme. This selection covers eight development locations encompassing 20 regencies and cities. The designation of the Preferred Partner in each location remains conditional and is subject to the fulfilment of all applicable procurement requirements.
The selection of partners for the second phase of PSEL demonstrates Indonesia’s strong appeal as a destination for environmental infrastructure investment. Several companies that have been global leaders in the waste management and Waste-to-Energy industry for decades participated in the selection process, reflecting high confidence in the prospects for PSEL development in Indonesia.
From 85 Selected Provider Lists (DPT), there were 68 applications for the eight project locations. Based on the evaluation results, each location now has a Preferred Partner and a Reserve Partner, whereby the Preferred Partner will receive a Conditional Letter of Award (CLoA). The CLoA is a conditional designation as a business partner for the PSEL developer and operator, and the Preferred Partner will be formally appointed once all conditions in the CLoA are fully met. The Reserve Partner is designated as an alternative mechanism should the Preferred Partner fail to satisfy the stipulated requirements.
Pandu Sjahrir, Chief Executive Officer of DIM, stated, “The involvement of the world’s leading Waste-to-Energy companies shows that Indonesia is increasingly trusted as an investment destination. We see this as an opportunity to accelerate technology transfer, build national capacity, and strengthen the waste management industrial ecosystem in Indonesia.”
Amidst competition from these global companies, national business players demonstrated an increasingly strong role. Four of the eight Preferred Partners are consortia led by Indonesian companies, whilst two consortia are led by French companies and two by Chinese companies; Indonesia is the largest consortium lead in this phase’s selection results. All consortia are partnering with international technology partners to accelerate project implementation whilst promoting technology transfer and strengthening the national industry.
Fadli Rahman, Director of Investment at DIM and Chief Executive Officer of Denera, affirmed, “All stages of the selection were carried out objectively, based on good governance principles and with reference to international best practices. The assessment covered credential aspects of PSEL projects, financial capability, implementation and commercial speed, strategic aspects, and risk management, as well as long-term commitment and execution experience in Indonesia. To ensure the independence and quality of the process, we appointed independent technical, legal, and commercial advisors who accompanied the entire evaluation stage.”
Following the issuance of the CLoA, each Preferred Partner is required to fulfil the requirements towards a Final Letter of Award, including the preparation of a Feasibility Study acceptable to both parties, finalisation of the project structure, establishment of a Joint Venture Company, completion of commercial documents, and obtaining financing approval.
The second phase PSEL partner selection is part of a national programme for the phased development of PSEL. Previously, construction of the first phase projects commenced with the Inauguration of the Denpasar Bali PSEL Development on 8 July 2026, following a partner selection process alongside the Bekasi City and Bogor Raya projects. Meanwhile, the construction of the Bekasi City and Bogor Raya PSEL projects will be inaugurated shortly.
All projects entering the implementation stage will subsequently be developed and operated by Denera, the integrated PSEL development and waste management platform under DIM, together with the designated PSEL developer and operator business partners in accordance with the applicable procurement stages. This programme is expected not only to accelerate the resolution of the waste handling crisis but also to deliver economic and environmental benefits through increased investment, the creation of green jobs, reduction of greenhouse gas emissions, and strengthening of the national waste management industrial ecosystem.