Jakarta. Sovereign wealth fund Danantara Indonesia is weighing a potential initial public offering for its clean energy unit Daya Energi Bersih Nusantara (Denera) as early as 2028, banking on a multibillion-dollar waste-to-energy rollout to generate stable cash flow and attract investors.

Denera is being developed into one of the world’s largest waste-to-energy operators through the consolidation of 33 waste-processing power projects across Indonesia.

“We want to finish all 33 projects. If we can complete them, God willing, by the end of 2028 we can take this public,” Danantara Chief Investment Officer Pandu Sjahrir said Monday at the Indonesia Stock Exchange in Jakarta.

Pandu said the projects are expected to begin generating cash flow in 2028, creating the conditions for a stock market listing.

“I think this could become a strong catalyst if we eventually list on the Indonesia Stock Exchange,” he said. “The target is 2028 because by then cash flow will have started to form.”

Danantara estimates the combined value of the projects could reach nearly $5 billion, or around Rp 87 trillion.

The sovereign wealth fund established Denera on April 1, 2026, as a holding company for waste-to-energy projects managed by Danantara Investment Management. The move follows Presidential Regulation No. 109/2025, which provides the legal framework for converting waste into renewable energy using environmentally friendly technology.

Indonesia plans to build waste-to-energy facilities across 33 cities to address mounting waste problems and rising energy demand in urban areas. The government sees the program as central to its push for cleaner, more resilient and sustainable cities.

Danantara said the nationwide rollout could generate a tenfold multiplier effect for the economy while creating around 3,500 direct and indirect jobs. Construction on the first batch of projects is scheduled to begin in the third quarter of this year, with the overall rollout targeted for completion by the fourth quarter of 2027.

Chinese companies are emerging as dominant players in the initiative. Danantara recently selected Zhejiang Weiming Environment Protection as the operating partner for the Bogor Raya waste-to-energy project, after appointing the same company for a similar facility in Denpasar last week.

The fund has shortlisted 24 foreign investors to participate in tenders for the first batch of projects, though the first three awards have all gone to Chinese firms.

Under Danantara’s structure, all project developers and operators involved in the waste-to-energy program will fall under Denera’s control. The centralized model is designed to improve efficiency, accelerate technology transfer and increase participation from both domestic and international investors.