UAE Clean Energy Giant Masdar Picks Indonesia as Its Renewable Energy Hub In SE Asia
ABU DHABI, investortrust.id – Masdar, Abu Dhabi’s clean energy giant, has designated Jakarta as its regional hub for renewable energy (RE) operations in Southeast Asia, signaling Indonesia's pivotal role in the company's growth strategy for the region.
“Jakarta is our hub for Southeast Asia. We have decided to establish an office in Jakarta,” Masdar’s Chief Operating Officer Abdulaziz Alobaidli said in an interview with Antara in Abu Dhabi on Tuesday, January 14, 2025.
While Masdar plans to expand its renewable energy investments to other countries in the region, Alobaidli emphasized that Indonesia remains the focal point. “We are also targeting Malaysia and exploring energy exports to Singapore, the Philippines, and other markets. However, we started in Indonesia, and Jakarta is our regional hub,” he added.
Masdar is involved in several high-profile renewable energy initiatives in Indonesia, including the Cirata Floating Solar Power Plant in West Java, one of the largest of its kind in the region.
Additionally, the company has received a Letter to Proceed (LtP) for a public-private partnership (PPP) investment in renewable energy projects in Nusantara, East Kalimantan, from the Nusantara Capital Authority (OIKN). Masdar also holds a 15% stake in PT Pertamina Geothermal Energy Tbk (PGE), further solidifying its footprint in Indonesia’s renewable energy sector.
Masdar is actively conducting feasibility studies for wind power projects and hydropower plants using pumped storage technology in Indonesia. The latter involves using surplus electricity to pump water to a higher reservoir for energy storage and later generation.
“Developing wind power is quite challenging in Indonesia due to its complex topography, which renders some projects unfeasible. However, we are still exploring opportunities. For pumped storage, the feasibility study is ongoing,” Alobaidli noted.
Masdar’s regional ambitions align with Indonesia’s push to transition to renewable energy and position itself as a leader in the sector. With Jakarta as its operational hub, Masdar aims to strengthen partnerships and tap into the vast potential of Southeast Asia’s renewable energy market.
The company’s projects in Indonesia, combined with potential expansions into neighboring countries, underline its strategic commitment to driving sustainable energy solutions across the region.