Danantara Indonesia strikes $10bn clean energy deal with Saudi firm ACWA Power
Indonesia has secured a major boost to its renewable energy ambitions after signing agreements worth up to $10 billion with Saudi Arabia's ACWA Power, the world's largest private water desalination company.
The partnership, announced in Jeddah on Thursday, involves two separate Memorandums of Understanding that will see ACWA Power collaborate with Indonesian state entities on renewable energy generation, green hydrogen projects, and water desalination facilities.
Danantara Indonesia, the country's sovereign investment body, signed the first agreement with ACWA Power to explore investments in renewable energy generation, combined cycle gas turbines, green hydrogen, and water desalination projects across the archipelago.
The second deal sees state oil giant PT Pertamina partner with ACWA Power on clean energy initiatives, including 500MW of renewable energy and gas-to-power projects, alongside green hydrogen development and operation and maintenance services.
The substantial investment is expected to help Indonesia achieve its ambitious target of sourcing 34 per cent of its energy from renewables by 2034, rising to 87 per cent by 2060.
"ACWA Power is proud to deepen our presence in Indonesia's power and water sector through these agreements," said Raad Al-Saady, the company's Vice-Chairman and Managing Director. "These partnerships represent our commitment to support Indonesia in achieving its long-term energy and water security goals."
Rosan Perkasa Roeslani, Chief Executive Officer of Danantara, described the collaboration as "a significant step in positioning Indonesia as a key player in the global energy transition."
Simon Aloysius Mantiri, Chief Executive Officer of PT Pertamina, said the partnership was "a strategic step toward realising this vision" of ensuring energy security whilst accelerating the energy transition.
The partnership reflects Indonesia's broader strategy to attract foreign investment in clean energy infrastructure as the Southeast Asian nation seeks to reduce its reliance on fossil fuels whilst maintaining energy security.
ACWA Power, established in 2004 and listed on the Saudi stock exchange, operates 101 projects across 14 countries with a combined investment value of $107.5 billion. The company has positioned itself as a leader in the global energy transition and green hydrogen development.
