Indonesia has unveiled plans for a US$10 billion green hydrogen and desalination mega-project—its largest sustainable infrastructure collaboration to date—through a partnership involving Saudi-based ACWA Power, state energy firm PT Pertamina, and state investment agency BPI Danantara.
The initiative marks a strategic alignment of national ambitions with global expertise, as Indonesia accelerates toward a low-carbon energy system while simultaneously addressing mounting water security challenges. Central to the agreement is a memorandum of understanding (MoU) signed between Danantara and ACWA Power, which outlines a multi-faceted development agenda covering renewable power, gas-to-power technologies, green hydrogen production, and large-scale water desalination.
Danantara CEO Rosan Perkasa Roeslani emphasized the significance of working with ACWA Power—recognized as the world’s largest desalination company—highlighting the intent to unlock long-term investment and integrate global know-how into Indonesia’s domestic energy transition.
The project portfolio will encompass a combined 500 MW of installed capacity across solar and combined-cycle gas turbines, alongside green hydrogen development and O&M services. These energy streams are expected to underpin downstream hydrogen and desalinated water infrastructure to meet both industrial and public demands.
The government views this project as pivotal to achieving its 2034 target of 34% renewable energy in the national mix, and 87% by 2060—ambitious goals that currently stand in sharp contrast to the nation’s heavy reliance on coal and diesel-based generation.
This isn’t ACWA Power’s first foray into Southeast Asia. The Saudi utility has recently expanded into Malaysia, aiming to develop 13 GW of clean energy capacity by 2040. The Malaysian initiative also involves floating solar arrays and desalination, in coordination with the Malaysian Investment Development Authority and Tenaga Nasional Berhad. Malaysia, which is targeting a full coal phase-out by 2044 and net-zero emissions by 2050, views these partnerships as key enablers.
Indonesia’s collaboration with ACWA Power and Pertamina mirrors this regional momentum. What sets it apart is the simultaneous focus on hydrogen and water—a pairing that reflects Indonesia’s vulnerability to both energy supply volatility and water scarcity. By coupling electrolysis-based hydrogen production with desalination, the project not only produces a clean energy vector but also mitigates pressure on freshwater systems, particularly in urban and industrial zones.
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