By Abbas Nazil
Indonesia has signed a landmark clean energy deal worth up to $10 billion with Saudi Arabia’s ACWA Power, marking a major milestone in the Southeast Asian nation’s efforts to transition toward renewable energy and enhance energy security.
The agreements, unveiled in Jeddah on Thursday, aim to accelerate the development of renewable power, green hydrogen, and water desalination infrastructure across Indonesia.
The deal comprises two Memorandums of Understanding (MoUs). The first was signed between ACWA Power and Danantara Indonesia, the country’s sovereign investment body, to explore investments in a range of energy infrastructure projects.
These include renewable power generation, combined cycle gas turbines, green hydrogen development, and desalination facilities spread across Indonesia’s vast archipelago.
The second agreement involves Indonesia’s state oil giant, PT Pertamina, which will partner with ACWA Power on various clean energy initiatives.
These include the development of 500 megawatts of renewable and gas-to-power projects, in addition to ventures in green hydrogen production and operational support services.
The partnership aims to boost energy supply while aligning with Indonesia’s climate and sustainability goals.
The agreements are expected to significantly support Indonesia’s national energy targets, which include generating 34 percent of its energy mix from renewable sources by 2034 and increasing that share to 87 percent by 2060.
By tapping into international expertise and investment, Indonesia hopes to reduce its dependence on fossil fuels while maintaining reliable energy access for its growing population.
ACWA Power’s Vice-Chairman and Managing Director, Raad Al-Saady, expressed enthusiasm about deepening the company’s presence in Indonesia.
He described the agreements as a testament to ACWA Power’s long-term commitment to support Indonesia in meeting its dual goals of energy transition and water security.
Al-Saady emphasized that the collaboration reflects the company’s global strategy of expanding its clean energy portfolio in emerging markets.
Rosan Perkasa Roeslani, Chief Executive Officer of Danantara, said the deal positions Indonesia as a rising player in the global energy transition, highlighting the importance of public-private partnerships in driving sustainable development.
Simon Aloysius Mantiri, CEO of PT Pertamina, described the collaboration with ACWA Power as a strategic move to reinforce national energy security while accelerating the shift to greener solutions.
The agreements are part of a broader Indonesian strategy to attract foreign capital and technical expertise to modernize its energy infrastructure.
As the largest private water desalination company globally, ACWA Power operates more than 100 projects in 14 countries with a combined value exceeding $107 billion, placing it at the forefront of clean energy innovation and green hydrogen development.
