Indonesia’s newly established sovereign wealth fund Danantara on Thursday announced a $10-billion partnership with Riyadh-headquartered ACWA Power to explore investments in Indonesia’s power and water sectors.
The multi-billion-dollar initiative aims to accelerate Indonesia’s energy transition by focusing on renewable power generation, combined cycle gas turbines, green hydrogen, and water desalination. These projects are critical for the country’s plan to reach a 34% renewable energy mix by 2034 and 87% by 2060.
In a parallel move, ACWA Power, a global leader in renewable energy and green hydrogen development and the world’s largest private water desalination company, also signed a strategic partnership with PT Pertamina, Indonesia’s state-owned oil and gas enterprise, to jointly develop large-scale renewable energy and water desalination projects across the country.
The agreement will support the development of 500MW in renewable and gas-to-power projects, green hydrogen production, and operations and maintenance services. It also opens the door to new electricity tenders and advanced energy technologies.
“ACWA Power is proud to deepen our presence in Indonesia’s power and water sector through these agreements,” said Raad Al-Saady, Vice-Chairman and Managing Director of ACWA Power. “These partnerships represent our commitment to support Indonesia in achieving its long-term energy and water security goals, contributing to the development of a sustainable and greener future.”
Rosan Perkasa Roeslani, CEO of Danantara, said that the collaboration with ACWA Power represents a significant step in positioning Indonesia as a key player in the global energy transition. “This partnership brings both capital and expertise to accelerate high-impact projects in solar, hydrogen, and integrated water-energy solutions,” he said.
“By channeling state-owned resources into ventures with proven global players, we aim to catalyse sustainable growth, enhance energy resilience, and attract continued foreign direct investment. This is how we move toward a greener and more prosperous future—together,” he explained.
Danantara recently announced plans to seek a multicurrency loan of up to $10 billion—potentially the largest syndicated loan in Southeast Asia—to be used for general corporate purposes, including funding strategic investments and strengthening the fund’s financial position.
Simon Aloysius Mantiri, CEO of Pertamina, added that the collaboration with ACWA Power is a strategic step towards realising this vision. “By joining forces on renewable energy, green hydrogen, and sustainable infrastructure, we aim to create tangible value for both nations and lead the region’s transformation towards a low-carbon economy,” he said.
The deal signals Indonesia’s growing ambition to lead in clean energy and sustainable infrastructure, with Danantara emerging as a key vehicle to mobilise state capital and international partnerships towards that goal.
