Danantara Will Pocket Minimum 30 Percent Shares In The PSEL Project
JAKARTA - The Danantara Investment Management Agency (BPI) will pocket a minimum of 30 percent of shares in each Waste to Energy (WTE) project or Waste Into Electric Energy (PSEL).
Danantara's Chief Investment Officer (CIO), Pandu Patria Sjahrir said that although it had canceled at least, Danantara remained open to various ownership schemes. Including, he continued, taking over the majority of shares by strategic partners,
"We are open, for example, later on technical partners want to have more shares, we say if we can get at least 30 percent. But we are happy to take 51 percent or above," Pandu said in a media briefing in Jakarta, Monday, November 3.
Pandu said the flexibility in the ownership structure aims to encourage private participation. He said, the most important thing is that the project can be completed on time and according to the budget.
"We want the private sector to help get in there. For certain projects we can majority, for certain others, it could be the private sector majority, it's okay," he said.
Regarding incentives, Pandu said that it lies in this certainty regarding the controlled time and costs, the project's Internal Economic Rate of Return (EIRR) can be maintained.
They are encouraged to complete the project on time, at the right cost. EIRR would definitely be better if it could be on time and the cost was also within the range," he explained.
Meanwhile, Managing Director Investment in Danantara Indonesia, Stefanus Ade Hadiwidjaja revealed that the PSEL project is targeted to be built in 33 provinces throughout Indonesia.
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Stefanus said that at the initial stage it would be built in 7 cities that were ready on land, with a total of 1,000 tons of waste per day, and other administrative provisions.
Furthermore, Stefanus said the budget needed to build each PSEL with a capacity of 1,000 tons of waste per day ranged from Rp2.5 to 3.2 trillion.
"Investment of one PSEL can range from IDR 2.5 trillion to IDR 3.2 trillion for a capacity of 1,000 tons. That's one (PSEL)," he said.