Indonesia seeks to boost clean energy sector with Saudi collaboration

Indonesia Power, a subsidiary of state power firm Perusahaan Listrik Negara, signed a power purchase agreement with ACWA Power on Aug. 13, 2024 in Jakarta. (PLN)
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Updated 15 August 2024
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Indonesia seeks to boost clean energy sector with Saudi collaboration

  • Latest deal is the ‘start of many more renewable energy investments’ in Indonesia, Saudi envoy says
  • ACWA Power also plans to develop another floating solar photovoltaic project in West Sumatra

JAKARTA: Indonesia is seeking to boost its clean energy sector through closer cooperation with Saudi Arabia, its state power firm said on Thursday after signing a deal with the Kingdom’s energy giant, ACWA Power.

Indonesia’s Perusahaan Listrik Negara signed a power purchase agreement with ACWA Power on Tuesday to develop the Saguling Floating Solar Photovoltaic Project in West Java province.

This project will have with a 92 megawatt peak capacity, marking the Saudi Arabia company’s first such venture in Southeast Asia’s biggest economy.

PLN’s subsidiary Indonesia Power will hold a 51 percent equity stake in the project, while the remainder will be owned by ACWA Power, PLN said in a statement on Thursday, adding that the collaboration will help expand Indonesia’s clean energy reach.

“Global warming is a huge challenge, but it also offers us extraordinary opportunities for development and collaboration, whether through strategies, technology innovation, or investments.

“We want to make sure that the future generation will have a better future than our own, and everything begins with this extraordinary collaboration,” PLN President Director Darmawan Prasodjo said.

“We truly appreciate ACWA Power for the signing of this PPA agreement. This is just the beginning and it is symbolic of even bigger opportunities for cooperation between Saudi Arabia and Indonesia.”

Renewables accounted for around 13 percent of Indonesia’s energy mix last year, with the majority of its power needs met by coal and oil.

One of the world’s biggest greenhouse gas emitters, the country of 270 million people has pledged to achieve a 23 percent share of renewable power in its energy mix by 2025.

That target will get a boost through another planned cooperation with ACWA Power to develop a 77 megawatt peak floating solar photovoltaic project in Singkarak, West Sumatra province. Combined, both projects are worth around $105 million.

“This is the start of many more renewable energy investments from the Kingdom of Saudi Arabia in Indonesia,” Saudi Ambassador to Indonesia Faisal Abdullah Amodi told Arab News.

“ACWA Power is committed to do mega-sized projects in Indonesia, especially a big green hydrogen project with the expertise that ACWA Power already has from the NEOM Project.”

Last year, ACWA Power announced it was collaborating with PLN and Indonesian chemicals company Pupuk Indonesia to develop a green hydrogen project that would produce 150,000 tonnes of green ammonia annually, with plans for commercial operations to start in 2026.

ACWA’s projects in Indonesia would not only bring investments into the country, but also create jobs and reduce carbon emissions, Amodi said.

“This will strengthen the relationship between KSA and Indonesia because energy is a very important sector for any nation.”


Somalia denounces Israeli recognition of Somaliland

A man holds a flag of Somaliland in front of the Hargeisa War Memorial monument in Hargeisa on November 7, 2024. (AFP)
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Somalia denounces Israeli recognition of Somaliland

  • Israel repeatedly hit targets in Yemen after the Gaza war broke out in October 2023, in response to Houthi attacks on Israel that the rebels said were in solidarity with Palestinians in the Gaza Strip
  • Egypt’s foreign ministry said its top diplomat had spoken with his counterparts from Turkiye, Somalia and Djibouti, who together condemned the move and emphasized “their full support for the unity, sovereignty and territorial integrity of Somalia”

MOGADISHU: Somalia reacted angrily Friday after Israel formally recognized its northern region of Somaliland as an “independent and sovereign state” — the first country country to do so.
Somaliland, which declared independence from Somalia in 1991, has for decades pushed for international recognition, which has been the key priority for president Abdirahman Mohamed Abdullahi since he took office last year.
But a Somali foreign ministry statement warned that the decision was “deliberate attack” on its sovereignty that would undermine peace in the region. Several other countries also condemned Israel’s decision.
Israeli Prime Minister Benjamin Netanyahu’s office said he announced “the official recognition of the Republic of Somaliland as an independent and sovereign state,” making Israel the first country to do so.
“The declaration is in the spirit of the Abraham Accords,” Netanyahu’s office said, referring to several agreements between Israel and Arab countries brokered by US President Donald Trump during his first presidency to normalize ties with Israel.
It said Netanyahu had invited Abdullahi to visit.
Hailing Israel’s decision, Abdullahi said in a post on X that it marked the beginning of a “strategic partnership.”
“This is a historic moment as we warmly welcome” he said, affirming “Somaliland’s readiness to join the Abraham Accords,” he added.
In Hargeisa, the capital of Somaliland, crowds of people took to the streets to celebrate, many carrying the flag of the breakaway state, said sources.

- ‘Illegitimate actions’ -

Somalia’s foreign ministry said: “Illegitimate actions of this nature seriously undermine regional peace and stability, exacerbate political and security tensions, in the Horn of Africa, the Red Sea and Gulf of Aden, the Middle East and the wider region.”
Turkiye, a close ally of Somalia, also condemned the move.
“This initiative by Israel, which aligns with its expansionist policy... constitutes overt interference in Somalia’s domestic affairs,” it said in a foreign ministry statement.
Egypt’s foreign ministry said its top diplomat had spoken with his counterparts from Turkiye, Somalia and Djibouti, who together condemned the move and emphasized “their full support for the unity, sovereignty and territorial integrity of Somalia.”
In video showing Netanyahu speaking to Abdullahi by telephone, the Israeli leader said: “I want you to know that I am signing now as we speak Israel’s official recognition of the Somaliland,” adding that the new relationship would offer economic opportunities.
“I am very, very happy and I am very proud of this day and I want to wish you and the people of Somaliland the very, very best,” he said.
Netanyahu also said that he would communicate to Trump Abdullahi’s “willingness and desire to join the Abraham accords.”
A self-proclaimed republic, Somaliland enjoys a strategic position on the Gulf of Aden, has its own money, passports and army. But since its unilateral declaration of independence in 1991, it has grappled with decades of isolation.

- Strategic -

Analysts say matters of strategy were behind Israel’s drive to recognize Somaliland.
“Israel requires allies in the Red Sea region for many strategic reasons, among them the possibility of a future campaign against the Houthis,” said the Institute for National Security Studies in a paper last month, referring to Yemen’s Iran-backed rebels.
“Somaliland is an ideal candidate for such cooperation as it could offer Israel potential access to an operational area close to the conflict zone,” it said, adding there were also economic motives.
Israel repeatedly hit targets in Yemen after the Gaza war broke out in October 2023, in response to Houthi attacks on Israel that the rebels said were in solidarity with Palestinians in the Gaza Strip.
The Houthis have halted their attacks since a fragile truce began in Gaza in October.
Somaliland’s lack of international recognition has hampered access to foreign loans, aid and investment, and the territory remains deeply impoverished.
A deal between landlocked Ethiopia and Somaliland last year to lease a stretch of coastline for a port and military base enraged Somalia.
Israel has been trying to bolster relations with countries in the Middle East and Africa.
Historic agreements struck late in Trump’s first term in 2020 saw several countries including Muslim-majority United Arab Emirates and Morocco normalize relations with Israel, but wars that have stoked Arab anger, particularly in Gaza, have hampered recent efforts.