Abu Dhabi-based clean energy company Masdar is currently exploring a renewable energy project in Nusantara capital city (IKN). The company has made it clear by sending a team to IKN.
Masdar representatives and several other business people from the United Arab Emirates visited IKN on Wednesday (14/6). IKN Authority, Foreign Ministry, and Investment Ministry officials welcomed them.
“Masdar is interested in contributing to the development of clean energy in IKN in a mutually beneficial business scheme for both parties,” Masdar Director of Development Dony Suryaman said.
For the record, Masdar is a subsidiary of the UAE state-owned enterprise Mubadala Investment Company with investment portfolios in nearly 40 countries. It focuses on the development, investment, and operation of renewable energy projects, such as solar, wind, hydro, and waste-to-energy power plants.
Masdar to develop a hydro power plant (PLTA)
During their visit on Wednesday (14/6), Masdar representatives assessed the construction site of the Sepaku Semoi Dam at IKN, where the company is expected to construct a hydropower plant (PLTA).
This dam will support raw water needs and flood control in IKN. Currently, the dam construction is 91 percent complete, and once finished, it will serve as essential infrastructure to provide a steady supply of 2,500 litres per second for PLTA.
The project aligns with the Indonesian government’s vision to make IKN a sustainable city. Furthermore, IKN Authority funding director Insyafiah confirmed that they have already received a letter of intent from Masdar concerning the proposed plan.
Masdar’s renewable energy expansion in Indonesia
In Indonesia, Masdar is planning to develop 100 gigawatts of renewable energy projects. Regarding this, the company has been involved in major renewable projects and is aggressively expanding its business in Indonesia.
In 2020, Masdar made its initial entry into Indonesia by undertaking the development of a floating solar power plant (PLTS) with a capacity of 145 megawatts on the Cirata Reservoir, valued at US$129 million.
Additionally, Masdar actively participates in renewable energy projects targeting the commercial and industrial (C&I) market segment through a joint venture called Masdar Mitra Solar Radiance. This venture, formed in collaboration with energy provider PT Mitrabara Adiperdana Tbk (MBAP), operates under the brand name Solar Radiance.
Furthermore, in early 2023, Masdar reached an agreement with the Indonesia Investment Authority (INA) to invest US$450 million in acquiring a portion of PT Pertamina Geothermal Energy Tbk’s (PGEO) IPO shares. As part of this investment, the sovereign wealth fund (SWF) INA acquired a five percent stake, while Masdar secured a 15 percent stake.
