Indonesia Picks China as Its Waste-to-Energy Partner

Indonesia Picks China as Its Waste-to-Energy Partner

Jakarta. Indonesian sovereign wealth fund Danantara has picked Chinese partners to set up waste-to-energy facilities in the trash-infested Bekasi and Denpasar.

Over the past few months, Indonesia has been running a China-dominated tender to kick-start its multibillion-dollar waste-to-energy rollout. Danantara finally unveiled the first wave of winners on Friday. Huzhou-based Wangneng Environment — which claims to generate 3.04 billion kilowatt-hour (kWh) of clean energy annually — will help Bekasi turn its mounting waste into watts. Zhejiang Weiming Environment Protection sealed the deal to operate the facility in Bali’s Denpasar. Weiming had reportedly pitched a $225 million investment with the Balinese government in 2024. As of 2023, the company’s portfolio boasts 49 waste incineration power projects, including one in trial operation.

“The selected partners will be expected to deliver consistent operational performance, maintain compliance with all applicable requirements, and support sustained engagement with surrounding communities,” Danantara Chief Investment Officer Pandu Sjahrir was quoted as saying in a press statement.

Danantara requires Wangneng and Weiming to form a consortium with local firms to ensure technology transfer. Their Indonesian partners remain undisclosed. The fund is expected to announce the companies that win the bids for the Yogyakarta and Bogor projects soon.

Indonesia plans to set up waste-to-energy incineration projects in 33 cities across the archipelago — a move that comes with a price tag of Rp 84 trillion ($5 billion). The first batch of the construction will begin in the third quarter of 2026. Construction is expected to finish by Q4 2027. Danantara estimates the project can create 3,500 direct and indirect jobs, while creating a tenfold multiplier effect on the economy.

Danantara had shortlisted 24 companies to take part in the waste-to-energy tender; over half of the participants had come from China. The Asian economic superpower has been largely driving Indonesia’s investment inflows. In 2025, Indonesia saw $10.6 billion in realized investments from Hong Kong, and another $7.5 billion from mainland China, according to government data.

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