Jakarta. Indonesia's sovereign fund Danantara announced Thursday that it had secured a multibillion-dollar partnership with Saudi energy firm ACWA Power, an investment that could supercharge Jakarta’s shift to a greener future.

The signed memorandum of understanding (MoU) became one of the major outcomes of President Prabowo Subianto's first-ever state trip to Saudi Arabia.

Danantara revealed that ACWA Power would explore investments in Indonesia's renewable energy generation, combined cycle gas turbines, green hydrogen, and water desalination. This is the process of removing salt from seawater, possibly making it safe for human consumption, irrigation, or industrial purposes.

The Riyadh-based company also inked another agreement that day with the state-run energy firm Pertamina. The latter is now under Danantara's wings. ACWA Power and Pertamina will jointly develop clean energy projects in the Southeast Asian country, which includes the development of a cumulative 500 megawatt of renewables and gas-to-power projects. Both sides will also partner on new electricity tenders, green hydrogen projects, as well as operation and maintenance (O&M) business lines.

Danantara reported that the project funding would total up to $10 billion. Indonesia is also hoping that the partnership could help the country achieve 34 percent of renewables in its energy mix by 2034.

Danantara’s boss Rosan Roeslani said he was confident that the freshly unveiled partnership with ACWA Power could position 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. It reflects our broader commitment at Danantara Indonesia to foster credible, long-term partnerships that support national priorities while delivering commercial value,” Rosan was quoted as saying in a press statement.

ACWA Power’s vice chairman and managing director, Raad Al-Saady, said that the partnerships represent the company’s commitment to back Indonesia’s long-term energy and water security goals.

“... [while also] contributing to the development of a sustainable and greener future,” Al-Saady said.

Danantara introduced ACWA Power as the world’s largest private water desalination firm. ACWA Power’s official website shows that the firm boasts a portfolio worth $107.5 billion and a gross power generation capacity of up to 78.9 gigawatts. Its projects can also produce 9.5 million cubic meters of desalinated water per day.

The aforementioned agreements were only some of the agreements that Indonesia had struck during Prabowo’s visit. The Indonesian leader is set to bring home business deals worth totaling $27 billion from his Saudi Arabia trip alone. 

Danantara’s chief Rosan, more often than not, accompanies Prabowo on his international trips as the investment agency searches for foreign partners.

A few weeks ago, Danantara announced that it would set up a joint investment platform worth nearly $2.4 billion with its Russian counterpart RDIF.