Jakarta (ANTARA) - Indonesia’s sovereign wealth fund Danantara Indonesia has set up a new state-owned vehicle to accelerate waste-to-energy investments, aiming to scale projects nationwide as demand for sustainable waste solutions rises.

“Daya Energi Bersih Nusantara is a new company founded by Danantara Investment Management on April 1, 2026, to focus on waste-to-energy programs,” said Fadli Rahman, investment director at Danantara Investment Management (DIM), at a press conference on Thursday.

Rahman, who oversees waste-to-energy initiatives, said the entity—known as PT Daya Energi Bersih Nusantara (Denera)—will take equity stakes in projects developed through joint ventures.

Under the structure, private developers will hold 70 percent of each project, while Denera will own the remaining 30 percent, he said.

Denera, a subsidiary of DIM, will also take responsibility for operating the projects, Rahman added.

Each waste-to-energy facility is expected to require investment of around Rp2.5 trillion to Rp2.8 trillion, reflecting the capital-intensive nature of the sector.

Rahman said such projects will be central to building Indonesia’s integrated waste management ecosystem while encouraging improvements in public waste handling practices.

“Denera will become a fully integrated waste management company,” he said, noting it is expected to handle both household and industrial waste streams.

He added that the ecosystem would extend beyond power generation to include landfill management, waste processing, and recycling operations.

The initiative comes as Indonesia seeks to address mounting waste volumes while expanding renewable energy capacity.

Separately, Danantara Indonesia Managing Director for Stakeholder Management and Communications Rohan Hafas said the fund plans to launch a new tender for waste-to-energy projects later this month.

The tender will cover development across 25 cities, he said.

“This means that nearly all provincial capitals will receive a new waste management facility,” Hafas added.