The project aims to bolster Indonesia's renewable energy sector, according to the PLN president director Edwin Nugraha Putra.
"PT Indo ACWA Tenaga Saguling, a joint venture between PLN Indonesia Power and ACWA Power, will oversee the construction of the floating power plant," Putra stated in a Sunday press release.
The venture was formalized with the signing of a power purchase agreement (PPA) by PLN (Persero) President Director Darmawan Prasodjo and PT Indo ACWA Tenaga Saguling President Director Rudolf Rinaldo Aritonang.
"This PPA underscores PLN Indonesia Power's commitment to the country's energy transition," Putra added.
The project is expected to commence with funding acquisition, followed by construction, with commercial operations targeted for June 2026.
The Saguling floating power plant aligns with PLN Indonesia Power's efforts to accelerate the energy transition and support the government's net-zero emissions goal by 2060, Putra said.
This corporate action is one of the many efforts made by PLN Indonesia Power to minimize the effect of climate change as well as reduce greenhouse gas emissions.
The initiative contributes to mitigating climate change and reducing greenhouse gas emissions, a global challenge requiring international cooperation, Putra said.
Putra emphasized the project's potential to foster investment and strengthen Indonesia-Saudi Arabia relations.
ACWA Power's EVP for South and Southeast Asia, Salman M Baray, expressed appreciation for PLN Indonesia Power's commitment to renewable energy and the company's transparent collaboration.
"I would like to give my appreciation to PLN Indonesia Power for opening up this cooperation opportunity very professionally and transparently," he said.
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Translator: Kelik Dewanto, Yashinta Difa
Editor: Aditya Eko Sigit Wicaksono
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