Denpasar. Mubadala Energy, the Abu Dhabi–based international energy company, and PT PLN Energi Primer Indonesia (PLN EPI), a sub-holding of state utility PLN responsible for primary energy supply, have signed a landmark Heads of Agreement (HoA) for gas sales from the Andaman Sea on Friday. The agreement marks a significant milestone in Indonesia’s pursuit of a more resilient, sustainable energy future.

Under this strategic collaboration, Mubadala Energy and PLN EPI will work together to bolster Indonesia’s energy security by optimizing cleaner, domestically sourced natural gas to ensure a reliable power supply and support the nation’s energy transition. The HoA prioritizes gas supply for North Sumatra and Aceh, including plans to harness the potential of the Tangkulo gas field, located 65 kilometers off the northern coast of Sumatra, which holds more than 2 trillion cubic feet (TCF) of reserves.

Abdulla Bu Ali, President Director of Mubadala Energy Indonesia, said the agreement reflects the company’s unwavering commitment to Indonesia’s energy future.

“By partnering with PLN EPI, we aim to deliver reliable and sustainable energy solutions that meet domestic demand and strengthen national energy security,” he said. “This is also an important step in the development plan for the Tangkulo gas project in the South Andaman Block.”

Indonesia’s power sector is projected to grow by an average of 5.3 percent annually through 2034, driving the need for expanded infrastructure and diversified supply sources. By combining Mubadala Energy’s global expertise and operational excellence with PLN EPI’s domestic capabilities and growth strategy, the collaboration aims to provide energy solutions that are both dependable and sustainable for millions of Indonesians. This commitment aligns with the government’s broader vision of enhancing energy security, maximizing domestic resources, and building a resilient, cleaner energy ecosystem.

Rakhmad Dewanto, President Director of PLN Energi Primer Indonesia, welcomed the cooperation and reaffirmed PLN EPI’s support for new gas field developments across the country.

“This collaboration strengthens our gas supply portfolio for electricity generation, supporting Indonesia’s long-term energy security and the national transition to cleaner energy,” he said.

The signing was witnessed by Djoko Siswanto, Head of SKK Migas, who underscored the government’s commitment to fostering industry collaboration to meet domestic energy needs.

“With this HoA signed, Mubadala will soon submit the Plan of Development for the Tangkulo Gas Field in the Andaman Block. SKK Migas is committed to completing the POD process within one month. Once finalized, this will also ensure that SKK Migas achieves its 2025 Reserve Replacement Ratio target of over 100 percent,” he noted.

The HoA sets the stage for further discussion on technical and commercial frameworks. Mubadala Energy’s dedication to supporting Indonesia’s domestic energy needs reinforces its role as a trusted long-term partner, while PLN EPI continues to lead efforts to secure reliable, sustainable energy for the nation.

This partnership not only strengthens Indonesia’s energy landscape but also paves the way for long-term, cleaner energy growth, supporting national priorities and delivering real value to communities across the archipelago.