33 POTENTIAL Waste-to-Energy (WtE/PSEL) Plant Projects
A total of 85 companies have qualified for the Pre-Qualified Bidder List (Daftar Penyedia Terseleksi/DPT) for the phase two waste-to-energy (WtE/PSEL) project. This is the initial stage to participate in the tender process. The number of participants increased nearly fourfold from phase one, which only had 24 companies. This increase reflects the massive potential of the WtE business, which also signals significant investment inflow opportunities for Indonesia.
Every DPT
company must form a consortium with local partners—whether private companies,
State-Owned Enterprises (BUMN), or Regional Government-Owned Enterprises
(BUMD)—to drive technology transfer and strengthen national capacity in waste
management. The tender process runs simultaneously across seven cities, while
the opening of the next DPT batch is planned to expand the participation of
investors and technology providers. This initiative marks a crucial milestone
in Indonesia's clean energy transition, while demonstrating the high potential of
the waste-to-energy sector in attracting international investment and
technological collaboration.
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WtE projects serve not only as a solution to overcome the chronic urban waste accumulation crisis but also present a major opportunity for new and renewable energy (EBT) development that attracts foreign investment interest.
The appeal
of these projects will further strengthen if executed with good governance.
“The Indonesian government remains fully committed to ensuring that the entire
selection process for WtE partners is conducted transparently and
competitively,”.
The
companies listed in the DPT come from both domestic and international origins.
There are firms from South Korea and Japan with extensive experience in
converting waste into energy. Both nations are renowned for developing modern
incineration technology with strict emission standards. In addition, there are
companies from China, Europe, India, and Singapore.
Despite
being crowded with foreign entities, the Indonesian government requests that
the processing technology used must be relevant to local Indonesian conditions.
Therefore, the selection will rely on technical experience and the company's
track record in waste management, rather than its country of origin. The
approach to this project must be placed within the context of resolving the
national waste emergency. Indeed, the primary function of WtE is as an
environmental rescue instrument, while the generated electricity is a side
benefit of the process. The success of WtE projects will be heavily determined
by governance transparency, regulatory certainty, and sustainable green
financing. “Projects like Waste-to-Energy require a mature combination of
technology, financing, and governance,”.
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Three First-Wave WtE Locations Designated as National Strategic Projects
PT
Danantara Investment Management (DIM) and PT Daya Energi Bersih Nusantara
(Denera), a subsidiary of DIM focusing on Waste-to-Energy (PSEL) infrastructure
development, support the designation of three PSEL facility projects as
National Strategic Projects (PSN) by the Government of the Republic of
Indonesia. The three projects include PSEL facilities in Bekasi, Greater Bogor,
and Greater Denpasar, which are also part of the first wave of PSEL project
implementation.
This
designation refers to the Minister for Economic Affairs Regulation Number 16 of
2025, which includes the Integrated Waste Management Program in the National
Strategic Project List, as well as Presidential Regulation Number 35 of 2018
and Presidential Regulation Number 109 of 2025 regarding the acceleration of
eco-friendly technology-based waste-to-energy facility construction.
The PSN
status confirms that the development of waste-to-energy facilities is now part
of the national priority agenda. Besides contributing to the resolution of
urban waste issues, these projects are also expected to support the expansion
of the renewable energy mix, emission reduction, and more sustainable urban
infrastructure development. The PSN designation for these three projects also
provides key momentum in building the foundation of Indonesia's PSEL industry.
As a company
formed to develop the national PSEL platform, Denera is tasked with developing
waste-to-energy projects through strategic investment, technology selection,
and cross-sector partnerships.
The PSN designation across these three first-wave locations demonstrates the Government's commitment to presenting integrated solutions to overcome the waste crisis. This initiative includes improving waste management systems, reducing dependence on landfills (TPA), and optimizing waste utilization into energy.
The PSN designation
was issued through a National Strategic Project Certificate by the Committee
for Acceleration of Priority Infrastructure Delivery (KPPIP), Coordinating
Ministry for Economic Affairs of the Republic of Indonesia, to each Project
Development and Management Enterprise (BUPP) in the three locations.
The three
BUPPs that have obtained PSN status are:
- PSEL Bekasi City (West Java Province), executed by Bekasi Environment Nusantara;
- PSEL Greater Bogor (West Java Province), executed by Nusantara Bogor New Energy
- PSEL Greater Denpasar (Bali Province), executed by Nusantara Bali New Energy.
These three
BUPPs were formed based on the selection of PSEL partners by DIM, where the
BUPP will be responsible for the development and execution of the project in
their respective locations in accordance with the plans and governance agreed
upon with the government.
With PSN
status, these projects will receive implementation support through strengthened
coordination across ministries and agencies, facilitation in resolving project
bottlenecks, and various instruments required to ensure development runs
efficiently and on target.
This PSN
designation shows that waste management through PSEL is no longer just a
regional necessity but a part of national strategic interests. This status not
only accelerates realization in the three initial locations but also serves as
an important stepping stone for PSEL facility development in subsequent
locations.
Through
collaboration with the government, local governments, technology partners, and
various stakeholders, it is expected to deliver solutions that not only answer
urban waste challenges but also create sustainable environmental, social, and
economic value for the public.
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On July 13, 2026, Danantara Investment Management
(DIM) and PT Daya Energi Bersih Nusantara
(Denera) announced 8 winning consortiums and companies for Phase 2
of Indonesia’s Waste-to-Energy (PSEL) program, The area and company is detailed below :
- Medan
Raya:
SUEZ-IAN Consortium
- Kabupaten
Bekasi:
Consortium Everbright Cemerlang Energy
- Lampung
Raya:
Bumi Biru Indonesia
- Serang
Raya:
Masa Depan Energi Indonesia (affiliated with Chandra Asri Pacific)
- Semarang
Raya:
Veolia Environmental Services Asia Pte. Ltd
- Surabaya
Raya:
Consortium Mentari Citra Lestari (affiliated with Bakrie & Brothers)
- Bogor
Raya 2:
MPM-CEVIA Consortium
- Yogyakarta
Raya:
Cakra Energi Lestari Consortium
About PT Daya Energi Bersih Nusantara (Denera) and Danantara indonesia
PT Daya Energi Bersih Nusantara is a company focusing on the
infrastructure development of Waste-to-Energy (PSEL) established under PT
Danantara Investment Management (DIM) to implement PSEL development as mandated
in Presidential Regulation Number 109 of 2025. Denera operates as an entity
that coordinates and accelerates the development of PSEL projects in Indonesia
by merging investment governance, technology partners, and project executors
within an integrated ecosystem.
Danantara Indonesia, known as the Daya Anagata Nusantara Investment Management Agency (BPI Danantara), is a strategic investment management agency established under Law Number 1 of 2025. As an independent institution directly under the President, Danantara Indonesia holds the mandate to manage and optimize government investments and State-Owned Enterprise (BUMN) assets to support the achievement of the Asta Cita mission, the national strategic plan, and government programs in accelerating industrialization and economic growth. Utilizing a professional, transparent, and accountable approach, Danantara Indonesia aims to strengthen the governance of state assets, create added value for the economy, and enhance Indonesia's competitiveness in the global market.
"Does The Indonesian Waste-To-Energy Program
Pose An Environmental Threat?"
The Waste-to-Energy (PSEL) program in Indonesia has
sparked debate. On one hand, this project is claimed to be environmentally
friendly as it reduces mounting waste. On the other hand, several
organizations, such as Walhi, argue that PSEL has the potential to damage the
environment if oversight is weak.
Potential Adverse Environmental Impacts
·
Emissions and Air Pollution: The waste incineration process risks releasing
toxic gases, dioxins, and furans if chimney filters do not meet high standards.
·
Not a Purely Renewable Energy: Waste raw materials mixed with plastics generate
carbon emissions, leading some parties to argue that PSEL is not entirely eco-friendly.
·
Water and Odor Threats: Piles of waste prior to incineration have the
potential to produce leachate (waste liquid) that contaminates surrounding soil
and water if not properly isolated.
·
Shifting Recycling Priorities: There are concerns that accelerating PSEL projects
may lead to neglecting the habit of sorting waste at its source. [1]
Government Claims on the Positive Aspects
·
Reducing Landfill Volume: Altering the trajectory of accumulating waste
mountains across various cities.
·
Energy Utilization: Generating alternative electricity while addressing the national waste
emergency.
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