JAKARTA, 9 March 2026 – Indonesia’s sovereign wealth fund, Danantara, has officially selected Zhejiang Weiming Environment Protection to develop Bali’s first Waste-to-Energy (WtE) facility. To comply with local participation requirements, the Chinese giant is partnering with PT Perkasa Eka Cipta Investama, a wholly owned subsidiary of the listed PT Daaz Bara Lestari Tbk ($DAAZ).
National Investment Scope
The Bali project is the opening act of a massive national environmental overhaul. Danantara has allocated a total of Rp91 trillion (approximately $5.5 billion) to fund WtE facilities across 33 cities by 2029.
This capital is being raised through innovative financing, including Danantara’s Patriot Bonds, which have already seen subscriptions reaching Rp50 trillion. The goal is to build a bankable, self-sustaining green energy network that does not rely on the state budget.
Bali Project Details
The facility in Bali serves as a pilot for this national rollout:
- Investment: Estimated at Rp2.5 trillion to Rp3 trillion ($160M–$190M).
- Capacity: Designed to process 1,500 tons of waste daily, generating 15–25 MW of renewable power.
- Revenue Stream: A 30-year Power Purchase Agreement (PPA) with state utility PLN at US$0.20 per kWh.
- Strategic Partnership: By partnering with $DAAZ, the project leverages local logistics and mining expertise to manage the “waste-to-fuel” supply chain effectively.
Timeline & Impact
Groundbreaking is targeted for early 2026 (March or April), with construction expected to take 18 to 24 months. By diverting up to 70% of waste from landfills, the project is a critical step in preserving Bali’s tourism ecosystem and meeting Indonesia’s renewable energy targets.
“This is a humanitarian and environmental necessity,” said Fadli Rahman, WtE Lead at Danantara. “We are ensuring these projects are bankable while solving the emergency waste levels in our most vital tourism hubs.”
