The venture will lead to the development of the first floating solar plant in Indonesia and one of the biggest in the world.
The Indonesian government is expectant of the project, which was assigned as a National Strategic Project, to bring social and economical benefits to the country.
In a statement, CEO of Masdar Mohammed Al Ramahi said that the creation of the joint venture company will help them continue with the progress made on the Cirata Floating Photovoltaic Power Plant with PT PJBI.
The project will be located in West Java at the Cirata reservoir and construction will begin early next year. Further, the government has planned to develop 60 new floating solar plants.
With the capacity of providing clean power to over 50,000 homes, the plant can offset 214,000 tonnes of CO2 emissions and expected to generate over 800 jobs.
Under its Electricity Infrastructure Acceleration Program, the Indonesian government aims at generating 23% of its total electricity from renewables by the next 5 years.