Jeddah, Saudi Arabia — Danantara Indonesia has signed a strategic partnership with Saudi Arabia’s ACWA Power to accelerate Indonesia’s energy transition. The Danantara ACWA Power Indonesia partnership focuses on renewable energy, green hydrogen, and water desalination. Planned investments could reach USD 10 billion.
The first Memorandum of Understanding (MoU) outlines ACWA Power’s commitment to Indonesia’s energy sector. The projects will target solar power, combined cycle gas turbines, hydrogen, and water desalination.
Meanwhile, ACWA Power also signed an agreement with PT Pertamina, Indonesia’s state-owned energy company. The deal encompasses 500 megawatts of renewable and gas-to-power projects, as well as green hydrogen initiatives and water-energy systems.
Saudi-Indonesia Energy Collaboration Supports Regional Growth
Indonesia’s Energy Ministry stated the partnership will help the country meet its renewable energy targets. The nation plans for renewables to account for 34% of its energy mix by 2034 and 87% by 2060. Consequently, this agreement strengthens the energy ties between Saudi Arabia and Indonesia.
Raad Al Saady, Vice Chairman and Managing Director of ACWA Power, emphasized the partnership’s role in supporting Indonesia’s energy and water security.
Rosan Perkasa Roeslani, CEO of Danantara, said the collaboration brings critical expertise and capital to Indonesia’s energy sector. He noted that international partnerships will accelerate the development of solar, hydrogen, and integrated water solutions.
Simon Aloysius Mantiri, CEO of PT Pertamina, added that the alliance supports national energy security. At the same time, it advances Indonesia’s clean energy ambitions.
The Saudi Standard’s View: A Gulf-ASEAN Energy Bridge in Action
The Danantara ACWA Power Indonesia partnership reflects growing alignment between Gulf investors and Southeast Asia’s green energy priorities. By committing up to USD 10 billion, ACWA Power strengthens its global leadership in renewable energy, green hydrogen, and water security.
Moreover, this partnership reflects Saudi Arabia’s broader strategy to invest in emerging markets. These projects accelerate energy diversification and attract vital foreign investment to Indonesia.
As energy diplomacy between Saudi Arabia and Southeast Asia expands, deals like this will shape regional energy resilience. They will also support global efforts to reduce emissions and meet climate goals.
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