Danantara Reveals the Reason for Chinese Companies Dominating Waste Processing Projects in Indonesia

Managing Director of Stakeholders Management & Communications Danantara Indonesia Rohan Hafas (center). (Photo: Mery Handayani/VOI)

JAKARTA - Danantara Indonesia revealed the reason for the dominance of Chinese companies in the Waste-to-Energy (PSEL) or Waste-to-Energy (WtE) project in Indonesia.

Of the eight companies that won the tender, six of them are from China.

Managing Director of Stakeholders Management & Communications Danantara Indonesia Rohan Hafas said one of the main factors was the similarity of waste characteristics between Indonesia and China, which are generally still mixed and not sorted.

"So they are good because the garbage is similar to ours. There are many, there are pillows-grolls in it, more or less like that," Rohan said at a press conference in Jakarta, Thursday, April 9.

According to Rohan, the technology owned by the Chinese company is able to process various types of waste directly without requiring a sorting process first.

"So the factory is designed to swallow everything. With so much heat energy, all that garbage will melt, and the waste will dry immediately," he said.

Not only that, the aspect of efficiency is also an important consideration in determining the winner of the tender.

Rohan assessed that the technology from Chinese companies has an optimal ratio between the waste burning process and the resulting electrical energy.

"Technically, they also have a good ratio between the same fuel and energy," he said.

In addition, the advantage is also seen from the processing results which are considered cleaner.

Director of Investments Danantara Investment Management Fadli Rahman explained that the incinerator technology used is able to filter emissions in layers.

"After the burning, there are also vapors, there is ash, ash from the base ash and flying ash. It will be captured and the residue of the ash will be filtered many times, so that the air that comes out will actually be cleaner than sorry, from the air in some of our locations," said Fadli.

For information, the six companies from China who won the tender are Chongqing Sanfeng Environment Group Corp., Ltd, Wangneng Environment Co., Ltd, and Zhejiang Weiming Environment Protection Co Ltd. Then, SUS Indonesia Holding Limited, China Conch Venture Holding Limited, and PT Jinjiang Environment Indonesia.

Meanwhile, the other two companies are French companies, namely Veolia Environmental Services Asia Pte Ltd, and Japanese companies, namely Mitsubishi Heavy Industries Environmental and Chemical Engineering.