ACWA Power, Danantara ink $10bn Indonesian green energy landmark pact

• Saudi utility ACWA Power and Indonesia’s Danantara sign MoUs worth up to USD 10 billion for renewables, green hydrogen, and desalination, including 500 MW of clean-power projects with Pertamina.

Saudi Arabia’s ACWA Power has agreed a pair of memorandums of understanding in Jakarta that could channel as much as USD 10 billion into Indonesia’s low-carbon economy over the next decade. The headline deal, struck with newly formed sovereign wealth fund Badan Pengelola Investasi Daya Anagata Nusantara (Danantara Indonesia), sets out a broad framework for joint investment in solar and wind generation, combined-cycle gas turbines, green-hydrogen production and large-scale water-desalination plants. 

A second MoU teams ACWA Power with state-energy major PT Pertamina to co-develop up to 500 MW of renewable and gas-to-power facilities, bid for upcoming electricity tenders and collaborate on hydrogen projects and long-term operations-and-maintenance services. Together, the agreements deepen ACWA Power’s presence in Southeast Asia and mark Danantara’s first marquee partnership since the fund was launched earlier this year to accelerate strategic infrastructure investment.

“These partnerships demonstrate our commitment to Indonesia’s energy and water security goals,” said ACWA Power vice-chairman Raad Al Saady, adding that the company would leverage its global project-finance muscle and desalination expertise to fast-track delivery. Danantara chief executive Rosan Perkasa Roeslani called the alliance “a significant step in positioning Indonesia as a key player in the global energy transition,” noting the influx of foreign capital and technology it will unlock.

For Jakarta, the accords arrive at a pivotal moment. The government wants renewables to supply 34 % of the national power mix by 2034 and 87 % by 2060—targets that require tens of billions of dollars and substantial grid upgrades across the archipelago. The prospective ACWA Power pipeline could deliver a sizeable slice of the needed capacity while adding flexible hydrogen and desalination assets that bolster water and energy resilience. 

ACWA Power already operates or is building projects in 16 countries, from Morocco’s Noor CSP complex to giga-scale hydrogen in Saudi Arabia’s Neom. The Indonesian push follows similar USD 10 billion frameworks the company signed this year in Malaysia and Vietnam, underscoring its strategy of pairing large-renewable portfolios with hydrogen and water infrastructure in high-growth markets.