PT Garam and ACWA Power Collaborate on Integrated Project in Gresik
PT Garam and PT ACWA Power Indonesia have signed a Joint Development Agreement (JDA) as the foundation for developing an integrated Seawater Desalination and Salt Production Project planned for Gresik, East Java. The signing ceremony took place at Danantara Indonesia and was attended by the Head of the Danantara Investment Management Agency, Rosan Roeslani. The JDA was signed by PT Garam President Director Abraham Mose and PT ACWA Power Indonesia CEO Tim Anderson, and witnessed by Saudi Ambassador to Indonesia Faisal Abdullah Amodi and ACWA Group CEO Samir Serhan.
This collaboration represents a strategic move by PT Garam to drive the transformation of the national salt industry through the use of modern technology, increased industrial salt production capacity, and integrated optimisation of seawater resource potential. Under the JDA, the project plans to develop a Sea Water Reverse Osmosis (SWRO) facility with a capacity of approximately 62,500 cubic metres per day, integrated with a salt production facility capable of producing around 500,000 tonnes per year. The development also opens opportunities to utilise other minerals contained in seawater if deemed technically and economically viable.
The project is designed under a Build-Own-Operate (BOO) concept and will be developed through a project company established in Indonesia. The parties will also develop a bankable financing structure using a limited or non-recourse project financing approach, meaning project funding will be based on the project’s feasibility and cash flow.
ACWA Power will contribute its experience and capabilities in desalination project development, technology selection and configuration, technical requirements preparation, financing scheme development, and support for EPC, operation, and maintenance arrangements. The cooperation also includes the transfer of knowledge, know-how, training, and understanding of operation and maintenance protocols to personnel from both parties and the project company, aiming to strengthen national competence in operating industrial-scale desalination and salt processing technology.
PT Garam will play a strategic role in supporting site readiness and access, managing licensing processes and stakeholder coordination in Indonesia, and developing markets and commercial channels for the project’s products. President Director Abraham Mose stated that the JDA signing is an important milestone in building a more modern, efficient, and competitive salt industry, integrating seawater desalination technology, industrial salt production, energy efficiency, and potential development of other marine minerals. He emphasised that technology transfer and knowledge transfer are crucial parts of the collaboration to ensure long-term benefits for Indonesia, enabling the country not only to possess high-tech production facilities but also to have human resources capable of mastering, operating, and sustainably developing the technology.
The project development is directed not only at increasing salt production capacity but also at creating a seawater resource-based industrial ecosystem. Desalinated water can be developed to meet industrial needs, while the salt produced is aimed at supporting the industrial market. In subsequent development stages, the project may explore the utilisation of other marine minerals, subject to technical, economic, and commercial feasibility. Following the JDA, both parties will proceed with project development stages including refining technical and commercial studies, technology selection, financing structure preparation, transaction document preparation, EPC and O&M arrangements, project company establishment, and drafting of the Shareholders’ Agreement and related documents towards Financial Close. PT Garam views this collaboration as a significant step in its transformation from a salt producer to a company increasingly integrated into the salt industry ecosystem, seawater processing, and derivative product development.