Under the terms of the MoU, Enel will work with PLN to assess potential opportunities in renewables, conventional technologies and mini-grids.
Additionally, Enel will share useful information and experience with PLN in renewables and conventional generation.
The partnership will also evaluate potential opportunities with focus on geothermal, hydropower, wind, solar photovoltaic for renewable energy and combined cycle gas turbines (CCGT) on the conventional front.
Enel Group Sub-Saharan and Asia Region head Francesco Venturini said: "Today’s agreement marks the beginning of an important partnership that recognises Enel’s commitment to develop an operational presence in Indonesia, the largest economy of South-East Asia.
"Together with PLN we are exploring opportunities in Indonesia across the range of power generation technologies.
"We are looking forward to start cooperating with this major player in a country with such an interesting outlook when it comes to its growing energy demand and abundant resources."
Enel will also cooperate with PLN to evaluate opportunities in mini-grid technologies for the energy supply to remote areas and islands.
Indonesian government-owned utility PLN has over 46,100MW of power generation capacity in the country.
