Indonesia’s sovereign wealth agency, BPI Danantara, has estimated that each waste-to-energy (WtE) project will require an investment of Rp2.5 trillion to Rp3.2 trillion (US$150-192 million) with a processing capacity of around 1,000 tons of waste per day.

Danantara’s Chief Investment Officer Pandu Patria Sjahrir said each project is expected to generate 2,000–3,000 jobs during the construction phase, both directly and indirectly. Of that number, about 400–500 workers will be employed on-site, while the rest will come from supporting industries such as materials supply and construction services.

According to Pandu, the WtE projects will be financed through equity, using funds raised from the Patriot Bond − a sovereign debt instrument issued to Indonesian conglomerates and domestic investors. So far, the bond has raised over Rp50 trillion in fresh funds.

“Danantara will acquire equity stakes in the joint venture companies operating the WtE facilities to finance the projects,” Pandu said on Monday, November 3, 2025.

He added that Danantara’s ownership stake in each WtE project will reach at least 30 percent, while the remaining 70 percent of funding will come from bank loans, both domestic and international. However, Pandu emphasized that on-time project completion remains the top priority rather than ownership levels.

“Many private, foreign, and state-owned banks have shown interest, given the strong commercial return on investment. This will serve as an example of a successful crowding-in financing model,” he said.

Pandu further revealed that 24 foreign companies have passed the initial selection and are eligible to participate in the tender for seven WtE projects to be held on Thursday, November 6, 2025. Each foreign bidder must form a consortium with a local company as a prerequisite for joining the tender.

The seven project sites included in the first phase are Denpasar, Yogyakarta, Semarang, Greater Bogor, Greater Tangerang, Greater Bekasi, and Greater Medan. Each location meets the technical criteria, including at least 5 hectares of land, over 1,000 tons of daily waste, and logistics capacity to handle up to 300 trucks per day.

Danantara aims to bring all WtE projects into the construction phase by early 2026, with commercial operations targeted no later than April 2026.