Indonesian-Chinese Consortiums Appointed as Partners for Second Phase of Waste-to-Energy Projects
Jakarta - Several consortiums of Indonesian and Chinese companies have been appointed as partners for the development and management of the second phase of Waste-to-Energy (PSEL) facilities covering eight agglomeration areas, according to a recent announcement by the Danantara Indonesia Investment Management Agency (BPI) on Monday (13/7).
Among the appointed consortiums is a partnership between China Everbright Environment Group Ltd., PT Harmoni Development Indonesia, and PT Bioregen Enviro Tech for the Bekasi Regency PSEL project. Additionally, a consortium between PT Chandra Waste Energy and Beijing GeoEnviron Engineering and Tech Inc has been appointed to work on the Serang Raya PSEL facility.
‘The involvement of the world’s leading waste-to-energy (WtE) processing 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,’ said Pandu Sjahrir, CEO of PT Danantara Investment Management (DIM), in a statement.
Of the total eight PSEL projects announced in this second phase, at least six involve Chinese companies either as technology partners or consortium leaders. Another Chinese company, Tianjin Teda Environmental Protection Co., Ltd., will partner with PT Pertamina Power Indonesia and CITICC International Investment Limited at the Yogyakarta Raya PSEL facility. Meanwhile, the Bogor Raya 2 PSEL will be worked on by PT Mega Power Mandiri and Cevia Enviro Inc, a WtE company from Henan Province, China.
Shanghai SUS Environment Co., Ltd., through its subsidiary SUS Indonesia Holding Limited, will be involved in two PSEL projects, namely in Lampung Raya and Surabaya Raya, through partnerships with three local companies. SUS is not a new name in Indonesia’s WtE industry as the company is also currently working on the Makassar City PSEL project.
In addition to these Chinese WtE companies, two other firms were previously appointed in the first phase of selection: Zhejiang Weiming Environment Protection Co., Ltd. for the Denpasar Bali and Bogor Raya 1 PSEL facilities, and Wangneng Environment Co., Ltd. for the Bekasi City PSEL.
Fadli Rahman, Investment Director of DIM and CEO of PT Daya Energi Bersih Nusantara (Danera), said the entire selection process for PSEL operator partners was conducted objectively through assessments covering PSEL project credentials, financial capability, long-term commitment, and execution experience in Indonesia. Danera is a part of Danantara focused on PSEL development.
Going forward, each selected partner must fulfil requirements to obtain the Final Letter of Award, including the preparation of feasibility studies, finalisation of project structures, establishment of joint ventures, completion of commercial documents, and securing financing commitments.