State investment management agency (BPI Danantara) has joined a US$10 billion (Rp162.15 trillion) project spearheaded by Saudi-based ACWA Power Co. and State energy giant PT Pertamina in a combined green hydrogen production and large-scale water desalination project, which represents one of the most ambitious sustainable energy collaborations in Southeast Asia.

Rosan Perkasa Roeslani, CEO of Danantara, emphasized that partnering with ACWA Power − the world’s largest desalination firm − brings in both capital and global expertise to accelerate Indonesia’s push for integrated solar, hydrogen, and water solutions.

“By channeling our national resources into a venture with a proven global player, we aim to catalyze sustainable growth, enhance energy resilience, and attract long-term foreign direct investment,” Rosan said on Thursday, July 3, 2025.

The memorandum of understanding (MoU) between Danantara and ACWA Power focuses on several fronts: renewable power generation, combined-cycle gas turbines, green hydrogen development, and water desalination infrastructure. The project scope includes a 500 MW portfolio spanning solar and gas-to-power technologies, new power tenders, green hydrogen projects, and operations and maintenance (O&M) services.

With an estimated total investment of US$10 billion, the partnership is expected to support Indonesia’s national energy transition targets − 34 percent renewable energy share by 2034 and 87 percent by 2060 − as outlined in its long-term energy roadmap.

Pertamina President Director Simon Aloysius Mantiri confirmed the company’s active role, aligning with its twin growth strategies of ensuring national energy security while accelerating the shift toward cleaner energy.

“By combining forces in renewable energy, green hydrogen, and sustainable infrastructure, we aim to create real value for both nations and lead the region’s shift to a low-carbon economy,” Simon said.

This venture in Indonesia follows ACWA Power’s recent expansion in Malaysia, where it entered into similar partnerships targeting 13 GW of clean energy capacity by 2040. The Malaysian project involves collaboration with government entities such as the Malaysian Investment Development Authority and the national utility Tenaga Nasional Berhad, exploring floating solar power plants and large-scale desalination solutions.

Malaysia’s broader aim is to phase out coal entirely by 2044 and reach net-zero emissions by 2050, making ACWA Power’s involvement key to both nations’ decarbonization agendas.

As Indonesia ramps up its energy diversification efforts, this landmark collaboration could serve as a blueprint for future green mega-projects in the region, combining local resources with international innovation.