The second wave of selections for Indonesia’s Waste-to-Energy (WtE) Program, also known as Program Pengolahan Sampah menjadi Energi Listrik (PSEL), has seen a remarkable surge in participants from both domestic and international entities. Danantara Investment Management (DIM) views this significant increase as a clear indicator of the immense potential for WtE project development across 33 cities in Indonesia.
According to Fadli Rahman, Investment Director at DIM and CEO of PT Daya Energi Bersih Nusantara (Denera), the strong participation from both local and global companies underscores the program’s substantial investment appeal. This appeal, he notes, is particularly potent when the program is executed with robust and trustworthy governance.
“To that end, we remain fully committed to ensuring that the entire selection process for WtE partners is conducted with utmost transparency and competitiveness,” Fadli stated in a written release received in Jakarta on Wednesday, May 27.
During this second wave of the Danantara PSEL WtE program’s Selected Provider List (DPT) selection, a total of 85 entities successfully qualified. This figure represents an impressive increase of more than 254 percent compared to the first wave, which only saw 24 participants.
Fadli elaborated that the PSEL projects are currently in their initial stages. The DPT itself serves as a pre-qualification phase, meaning that the successful companies must still undergo various rigorous follow-up processes before securing a project. These subsequent stages include comprehensive technical evaluations, assessment of funding readiness, suitability of technology, and evaluation of operational capacity in the field.
The second wave of DPT participants hails from a diverse range of countries, including Japan, South Korea, France, India, Singapore, China, and numerous other companies across Asia. Fadli emphasized that this international interest highlights how waste management challenges in Indonesia are now commanding significant attention from global energy and environmental industry players.
He further added that the substantial jump in participants for the second DPT wave signifies that Indonesia’s PSEL projects are increasingly being recognized as a highly potential and serious market. The complete list of the 85 qualified entities is accessible through Danantara Indonesia’s official website.
A significant portion of the companies making it into the second DPT wave originate from nations with extensive experience in energy-based waste management. This includes powerhouses like Japan and South Korea, renowned for their modern incineration technologies and stringent emission standards. The inclusion of companies from Europe and China further broadens the spectrum of technological capabilities and expertise, particularly in environmental management and urban energy efficiency.
Denera operates as a subsidiary of DIM. Previously, Danantara’s Chief Investment Officer (CIO), Pandu Sjahrir, projected that Denera could be listed on the Indonesia Stock Exchange (BEI) by the end of 2028. Danantara aims for the PSEL program to encompass 33 projects across various regions of Indonesia, with a projected total investment approaching nearly US$ 5 billion, equivalent to approximately IDR 85 trillion to IDR 90 trillion.
Summary
Indonesia’s Waste-to-Energy (WtE) program, also known as PSEL, is experiencing a significant surge in interest, with Danantara Investment Management (DIM) noting the immense potential for WtE project development across 33 cities. The second selection wave saw a substantial increase in participation, with 85 entities qualifying, a more than 254% rise from the initial 24 participants. This robust participation underscores the program’s investment appeal, especially when executed with strong governance, a commitment to transparency, and competitiveness in the selection process.
The diverse international interest, with participants from Japan, South Korea, France, India, Singapore, and China, highlights how Indonesia’s waste management challenges are capturing the attention of global energy and environmental players. While the current phase is a pre-qualification stage, successful companies must undergo further rigorous evaluations, including technical assessments, funding readiness, and operational capacity. This program aims to encompass 33 projects with a projected investment approaching US$5 billion (IDR 85-90 trillion).