Indonesia's sovereign wealth fund Danantara signed a historic US$10 billion memorandum of understanding with Saudi Arabia's ACWA Power during Indonesian President Prabowo Subianto's state visit to Jeddah on July 2, 2025, marking one of the largest green energy partnerships in Southeast Asia.
The comprehensive deal involves ACWA Power exploring investments across multiple sectors including renewable energy generation, combined cycle gas turbines, green hydrogen production, and water desalination projects, with ACWA Power being recognized as the world's largest private water desalination company.
Danantara CEO Rosan Roeslani emphasized that this strategic partnership will position Indonesia as a "key player in the global energy transition," bringing both capital and expertise to accelerate high-impact solar, hydrogen, and integrated water-energy solutions across the archipelago.
The partnership includes a separate agreement between ACWA Power and state energy giant Pertamina to jointly develop 500 megawatts of renewable energy and gas-to-power projects, alongside new electricity tenders and operation and maintenance business lines.
According to officials, the massive investment is designed to help Indonesia achieve its ambitious renewable energy targets of 34 percent renewables in the energy mix by 2034 and 87 percent by 2060, while also addressing the country's water security challenges through large-scale desalination infrastructure.
