Iranian Energy Minister Hamid Chitchian and Indonesian Economics Affairs Coordinating Minister Sofyan Djalil have signed the deal.
Chitchian told MEHR News Agency: "Iranian power plant companies, whose technical capabilities are internationally competitive, could help Indonesia in building power plants; currently, 11,700MW of hydroelectricity is distributed in national grid, which indicate the capabilities necessary for cooperation with Indonesian government to that end."
Indonesia intends to build small-sized hydroelectric power plants ranging between 1MW and 10MWin the next five years.
Djalil said: "Indonesia plans to commission and build 48 power plants in line with climatic changes in the country; similarly, the country would commission small-scale hydroelectric power plants with 1-10MW capacity range; Iranian contractors would be of great help in Indonesian electricity market in this specific activity."
Earlier this year, the countries agreed to construct a $3bn refinery in Indonesia to process 300,000 barrels per day of crude oil.
