ASIATODAY.ID, JAKARTA – Indonesia and Singapore have officially launched a strategic partnership in the green energy sector, with a total investment exceeding USD10 billion. The ambitious investment will fund the development of a solar panel supply chain, advance Carbon Capture and Storage (CCS) technology, and establish a Sustainable Industrial Zone (SIZ) in Batam, Bintan, and Karimun (BBK), Riau Islands Province.
The agreement was formalized through the signing of three Memorandums of Understanding (MoUs) by Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, and Singapore’s Minister for Energy and Science & Technology, Tan See Leng, on Friday, June 13, 2025 at the Ministry of Energy and Mineral Resources in Jakarta.
“These MoUs will bring significant benefits to both countries. The total investment committed exceeds USD10 billion and underscores our shared commitment to the future of green energy in the region,” Bahlil stated.
The Indonesia–Singapore green energy investment focuses on three key initiatives:
- Large-scale solar panel infrastructure to boost renewable electricity generation capacity.
- Development of CCS facilities as a regional solution for carbon emission reduction, positioning both nations as pioneers in Southeast Asia.
- Establishment of a Sustainable Industrial Zone (SIZ) in Riau Islands as a hub for low-carbon industries, battery manufacturing, and green logistics.
Minister Bahlil emphasized that this joint initiative is expected to create a new economic ecosystem, generating tens of thousands of jobs across the solar panel and Battery Energy Storage System (BESS) manufacturing chain, as well as in operations and maintenance.
From a macroeconomic perspective, the government projects up to USD6 billion in annual foreign exchange earnings, along with hundreds of millions of dollars in tax revenues.
To ensure the effective implementation of these initiatives, both nations will form a Cross-Border Renewable Energy Task Force, jointly chaired by the Indonesian Minister of Energy and Mineral Resources and Singapore’s Minister of Trade and Industry. The task force will coordinate detailed technical planning, financing schemes, and sustainable governance of the industrial zones.
Three MoUs Advancing Green Collaboration
The three signed MoUs include:
- Sustainable Industrial Zone (SIZ): Aimed at attracting green investments and developing a low-carbon industrial cluster in BBK.
- Cross-Border Power Interconnection and Trade: Enabling clean electricity exports from Indonesia to Singapore using low-emission, high-efficiency technologies.
- Cross-Border Carbon Capture and Storage (CCS): Establishing a legal and technical framework for capturing, transporting, and storing CO₂ across borders, utilizing Indonesia’s depleted geological formations and addressing Singapore’s geographical constraints.
The agreements also encompass streamlined licensing procedures, infrastructure development, cross-sector support, and secure cross-border data flows to ensure a conducive investment climate.
Bahlil reaffirmed that the collaboration is not only intended to meet national energy and climate goals, but also to position Indonesia and Singapore as key drivers of Southeast Asia’s energy transition.
“This is a win-win partnership. While we export renewable electricity to Singapore, we’re also building a robust downstream green industry here in Indonesia. It’s about progressing together in a sustainable way,” Bahlil explained.
Through this landmark green investment, both countries are setting a powerful example of international cooperation in building a low-carbon, sustainable economy for the future of the region. (AT Network)
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