Jakarta (Indonesia Window) – The state-owned energy company, Pertamina Power Indonesia, as a sub holding of power, new & renewable energy (Pertamina NRE) and the United Arab Emirates’ Masdar have signed a memorandum of understanding for the development of floating and ground solar power plants, and clean energy in Indonesia.

The MoU was signed at the UAE presidential palace in Abu Dhabi on Thursday (Nov. 4), witnessed by Abu Dhabi Crown Prince Mohamed bin Zayed Al Nahyan and Indonesian President Joko Widodo.

"This strategic collaboration between Pertamina NRE and Masdar will accelerate the energy transition," said Pertamina’s President Director Nicke Widyawati in a statement received here on Friday.

Nicke said that the Indonesian government has an energy transition roadmap contained in the National Energy Strategy. The renewable energy mix is ​​targeted to reach 23 percent in 2025 and increase to 31 percent in 2050.

Several renewable energy development initiatives by Pertamina, including increasing the installed capacity of self-operated geothermal to 1,128 megawatts by 2026, developing solar and wind power plants, as well as green and blue hydrogen.

"With this roadmap, we believe that the energy sector would reduce emissions by 314 million tons of carbon dioxide," said Nicke.

Meanwhile, Masdar’s CEO Mohamed Jameel Al Rahami said that this agreement shows the deep commitment of his company to support Indonesia's energy transition and achieve carbon neutral targets.

According to him, Indonesia will gain economic and social benefits and create a sustainable future for its people and the planet by committing to climate actions.

Masdar is an Abu Dhabi-based company and a subsidiary of Mubadala Investment Company, which is Abu Dhabi's national company focused on renewable energy.

Currently Masdar is actively operating in 30 countries, including the UAE, the United States, Australia, India and Indonesia.

Reporting by Indonesia Window