24 October 2026 | Sector: Power, Waste Infrastructure | Country: Indonesia
Key points
- Indicative debt interest in Danantara’s waste-to-energy program exceeds three times estimated requirements, supported by contractual protections in Presidential Regulation (Perpres) 109/2025.
- Price, offtake, land and permitting risks sit with PLN, the state budget and regional governments. Lenders retain mainly construction and technology risk.
- The USD0.20/kWh tariff is about twice Vietnam’s waste-to-energy tariff and roughly 2.8 times the last published national generation cost in Indonesia.
- Estimated annual cost above PLN’s generation cost is Rp3.2 to 5.6 trillion across 17 sites, depending on plant output and cost assumptions.
- PLN is rated BBB/Negative by Fitch, equalised with the sovereign. Credit quality of the program is effectively a function of sovereign support and timely compensation payments.