Saudi developer Acwa has joined forces with Indonesian state enterprise PT GARAM to construct the country’s first large-scale combined seawater desalination and industrial salt complex.

The Joint Development Agreement was signed at Danantara’s offices in Jakarta by Tim Anderson, Chief Executive Officer of PT Acwa Power Indonesia, and Abraham Mose, President Director of PT GARAM. H.E. Rosan Roeslani, Chief Executive Officer of Danantara and Indonesia’s Minister of Investment, attended the event.

Located at Manyar in Gresik, East Java, the project carries an estimated investment value of USD 400 million. The site will pair a seawater reverse-osmosis (SWRO) facility with an industrial salt processing line. Once operational, the complex is set to deliver roughly 62,500 cubic metres of desalinated water daily alongside 500,000 tons of high-purity industrial salt every year.

Indonesia relies heavily on foreign supply, importing more than 4 million tons of industrial salt annually. National demand is expected to climb beyond 7.7 million tons by 2028. By harvesting high-purity salt from the desalination brine stream, the plant directly addresses local supply shortages while supplying water for industrial users. The site may also extract additional marine minerals if future feasibility studies allow.

The development will follow a Build-Own-Operate model managed by a dedicated local project firm, using limited or non-recourse project financing secured against future cash flows.

Under the agreement, Acwa will handle engineering design, technology selection, project financing, construction, and long-term maintenance. The firm will also run knowledge-transfer programmes and share operational frameworks with local teams. PT GARAM is tasked with securing permits, preparing the site, coordinating local stakeholders, and developing commercial distribution routes.

Dr. Samir J. Serhan, Chief Executive Officer of Acwa, said: “Indonesia is an important growth market for Acwa, and this agreement represents another step in our commitment to supporting the country’s long-term water and industrial needs. By combining our expertise in large-scale seawater desalination with the production of high-purity industrial salt, we have an opportunity to deliver an integrated solution that strengthens water security while supporting Indonesia’s ambition to increase domestic salt production. We look forward to working closely with PT GARAM and Danantara to advance this important project.”

Abraham Mose, President Director of PT GARAM, said: “The signing of this Joint Development Agreement marks a significant milestone for PT GARAM in building a salt industry that is more modern, efficient, and competitive. This enables Indonesia to increase salt capacity while also building an industrial ecosystem that integrates desalination technology, industrial salt production, energy efficiency, and the potential for developing other marine minerals. Technology and knowledge transfer are central to this collaboration, and our aim is to ensure that Indonesia has world-scale production facilities alongside the workforce capable of operating and developing them sustainably.”

Tim Anderson, Chief Executive Officer of PT Acwa Power Indonesia, said: “This is a strong foundation for developing an integrated solution tailored to Indonesia’s needs. Combining desalinated water and high-purity industrial salt production within a single facility creates the potential to address two important national priorities at once. Our focus will now be on working closely with PT GARAM to progress the project responsibly and establish the foundations for its successful long-term development.”