SOFA to Develop Waste-to-Energy Projects with Chinese Firm Under 30-Year Danantara Contract
KONTAN.CO.ID - JAKARTA. PT Solusi Environment Asia Tbk (SOFA) has finally secured a contract to convert waste into electricity. The company, formerly known as PT Boston Furniture Indonesia Tbk, announced it will develop two waste-to-energy (WTE) projects.
In a disclosure to the Indonesia Stock Exchange (BEI) on Monday (25 May 2026), SOFA’s President Director Denny Rizal explained that the WTE projects will be executed by its subsidiary, PT Ananta Energi Asia (AEA), in partnership with Zhejiang Weiming Environment Protection Co., Ltd. ‘Two national project locations have been designated for us by Danantara: Denpasar Metropolitan Area and Bogor Metropolitan Area,’ he stated.
Zhejiang Weiming is one of the world’s largest and most experienced WTE operators, with a portfolio of dozens of operational facilities in China. In 2025, the company’s total electricity production from waste processing reached 4.62 billion kWh, equivalent to the annual electricity consumption of a mid-sized Indonesian province.
The company has been designated by Danantara as a partner for two of the four first-phase WTE project locations, Denpasar and Bogor metropolitan areas, making it one of the largest winners in the national first-phase WTE tender.
Meanwhile, SOFA, through AEA, acts as the official local partner in the consortium with Zhejiang Weiming, responsible for permitting coordination, local government relations, and technology transfer to domestic industry capacity, in line with Danantara’s requirements.
AEA was established on 5 February 2026 in partnership with PT Asia Investment Capital (AIC) as the controlling shareholder, with shareholdings of 99% and 1% respectively.
For the company, which previously operated in wooden furniture and wood product processing, the WTE project secured by AEA marks a significant achievement. In the long term, Denny expects positive cash flow. ‘Long-term cash flow potential stems from a 30-year power purchase agreement with PLN at a fixed tariff of $0.2 per kWh,’ he explained.
SOFA’s shares rose 9.47% to Rp370 per share on Monday (25 May 2026), but have fallen 18.86% over the past month.