Bakrie & Brothers and Chandra Asri Surged After Conditional Waste-to-Energy Deals

JAKARTA, Investortrust.id — Shares of major Indonesian conglomerates PT Bakrie & Brothers Tbk (BNBR) and PT Chandra Asri Pacific Tbk (TPIA) surged on Monday following news that their energy units were selected by sovereign fund Danantara Indonesia for multi-million dollar waste-to-energy (PSEL) projects.

The market’s enthusiastic reaction underscores global investor appetite for Southeast Asia's accelerated energy transition and circular economy assets. As Indonesia pushes to modernize municipal waste management into renewable power, major conglomerates are jostling to secure early mover advantages. However, the stock price spikes highlight a sharp divergence between speculative market excitement and the early-stage operational reality of these infrastructure deals.

Bakrie Power Navigates Conditional Award

Bakrie Power, operating within the Mentari Citra Lestari Consortium alongside PT Acritas Karya Persada and international technology partner SUS Indonesia Holding Limited, was named a selected partner for the Greater Surabaya PSEL project. Yet, parent company BNBR moved quickly to clarify that the deal remains non-binding.

"PT Bakrie Power as a selected partner will be established as a business partner for the development and management of the PSEL project only after all conditions in the conditional letter of award are fully met," said BNBR Corporate Secretary Christofer Alexander Uktolseja in a disclosure on Monday, July 20, 2026.

Uktolseja noted that if those conditions are not fulfilled, Danantara maintains replacement mechanisms with backup partners. Because the consortium is currently executing technical, commercial, and financial feasibility studies, total investment figures and profit-sharing terms remain under negotiation. Despite the legal caveats, BNBR shares spiked 23.53% to close at Rp 105 ($0.0066) on Monday, capping a 12.9% gain over the past week.

Chandra Asri Joins Feasibility Stage

Simultaneously, petrochemical behemoth Chandra Asri Pacific confirmed that its subsidiary, PT Chandra Waste Energy (CWE)—operating under infrastructure arm PT Chandra Daya Investasi Tbk (CDIAG)—was chosen by Danantara as a Batch 2 PSEL partner.

"The current process remains at an early stage of feasibility study and evaluation," explained General Manager of Legal & Corporate Secretary at TPIA, Erri Dewi Riani, in an official exchange statement on Monday, July 20, 2026. "The continuation of the PSEL project will depend, among other things, on the results of the feasibility study, after which a Final Letter of Award will be issued."

Erri stressed that the company cannot yet commit to final capital expenditure figures or predict whether the capital commitment will cross the 20% equity materiality threshold. Shares of TPIA reacted positively to the disclosure, climbing 9% to Rp 2,120 ($0.133) on Monday.