Abu Dhabi Future Energy Company PJSC (Masdar) and Indonesia’s state-owned utility PT PLN (Persero) have signed two agreements aimed at expanding floating solar energy capacity in Southeast Asia’s largest power market.
The companies formalized plans for a new floating solar power plant at the Jatigede Dam in West Java through a Memorandum of Understanding (MoU). The project, set to begin development this year, follows Masdar’s successful bid under Indonesia’s Hijaunesia 2023 renewable energy program, where it submitted the lowest tariff. Completion is targeted for 2027.
A separate agreement, signed as a ‘Principles of Agreement’, outlines plans to explore expanding the capacity of the 145 megawatt (MWac) Cirata Floating Photovoltaic Power Plant, which began operations in November 2023. Cirata currently produces enough energy to power 50,000 homes and offsets approximately 214,000 tonnes of carbon emissions annually.
Both agreements were signed during the state visit of Indonesian President Prabowo Subianto to the United Arab Emirates. Masdar CEO Mohamed Jameel Al Ramahi and PLN President Director Darmawan Prasodjo represented their respective companies at the signing.
“The Jatigede project will be a strong addition to our collaboration with PLN,” said Al Ramahi. “These agreements also demonstrate our continuing commitment to supporting Indonesia’s ambitious renewable energy objectives.”
Indonesia aims to reach net-zero emissions by 2050 and add over 75 gigawatts (GW) of renewable energy capacity in the next 15 years. In support of this, the government recently launched Danantara Indonesia, a state investment agency intended to strengthen global competitiveness across key sectors, including energy.
Prasodjo described the collaboration as part of a broader strategy to enhance energy sustainability. “These collaborations are a testament to the shared global effort needed to address the climate crisis,” he said.
Indonesia’s geographical features — comprising more than 17,000 islands and over 600 lakes and reservoirs — offer significant potential for the deployment of floating solar technologies.
Masdar, which entered the Indonesian geothermal sector in 2023, opened a Jakarta office in 2021 to bolster its regional presence. The company has increased its global renewable energy capacity to 51GW as of the end of 2024 and aims to reach 100GW by 2030, with plans to become a major green hydrogen producer.
The UAE and Indonesia have deepened cooperation across several strategic sectors, with clean energy emerging as a central pillar in bilateral relations.
