Indonesia and Singapore have agreed to cooperate in at least three sectors. This is stated in a memorandum of understanding (MoU) between the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, and the Minister of Trade and Industry of Singapore Tan See Leng. The details of the agreement signed are as follows:
1. Memorandum of Understanding (MoU) on Sustainable Industrial Zones; 2. Memorandum of Understanding (MoU) on Cross-Border Electricity Interconnection and Trading, Renewable and Low Carbon Energy Technologies, and Energy Efficiency and Conservation; 3. Memorandum of Understanding (MoU) on Cooperation in Cross-Border Carbon Capture and Storage.
Bahlil said that the three bilateral cooperations carried out were a commitment between the Singapore and Indonesian governments in developing green energy.
“Specifically, there are three points, namely clean energy electricity trade, then CCS, and the third is that we are building a joint green industrial area in the Riau Islands,” he explained at the signing of the Indonesia-Singapore MoU, at the ESDM Ministry Office, Jakarta, Friday (13/6/2025).
Furthermore, his party has had long discussions on the three agreements with Singapore. He emphasized that the cooperation must be mutually beneficial to both countries.
“I said that we must carry out the cooperation relationship, but win-win. We send electricity to our brothers in Singapore, now in the results of the negotiations, later the Singapore government together with Indonesia will build a joint industrial area,” he added.
On the other hand, Singapore’s Minister of Trade and Industry Tan See Leng said that the cooperation was an opportunity that was mutually beneficial to both countries, sustainable decarbonization of the economies of both countries, spurring innovation, and opening up new areas of growth.
“And moreover, we must take advantage of this opportunity now, when ASEAN, all of ASEAN, is a very stable fortress that offers a good shelter for growth and opportunities. This is a concrete step to anchor long-term cooperation,” he said on the same occasion.
He even mentioned that Southeast Asia itself has the potential to permanently lock 133 Giga Tons of carbon dioxide or CO2. He said the Singapore project of only 2 million tons could be a pioneering project for a country like Indonesia that has the ambition to lead the entire region as a CCS center.
In detail, in the plan for cross-border renewable energy (EBT) electricity trade until 2035 of 3.4 Giga Watts (GW) with a potential investment of US$ 30-50 billion for solar panel generators and US$ 2.7 billion for solar panel manufacturing and BESS. Meanwhile, the potential for additional foreign exchange per year is US$ 4-6 billion and the potential for additional new jobs of 418 thousand people.
June 13, 2025, CNBC Indonesia(https://www.cnbcindonesia.com/news/20250613121521-4-640753/ri-singapura-teken-3-kerja-sama-baru-termasuk-jual-beli-listrik)